in washington you have the house and the senate that want to go different directions. people will talk about the good old days of bipartisan compromise, by telling you how old they are. because it is true that 30 or 40 years ago the republicans would get together with the democrats and they would argue about today's topics. all fights in washington dc work bipartisan. going up to nixon. lifetimeagan's nice -- the two-party sorted themselves out. lon wants a more constrained view of the government, one wants a expanded view, and they are heading different directions. one wants to go east and one was to go west. what would compromise look like? government, bigger and we have revised between bigger and much bigger credit each guy would go back to his corner and say you know, i got is a really good to have more than they wanted or less than they wanted. we were always compromising for bigger government. which was not the direction that we want to go. now we have one party that wants to go to less government, once that wants to go to bigger government, and they're not going to agree. each one can say no to the other. to give you some idea of you could quantify this. funds that invest when congress is out of session and goes into cash when they are in session. is thaton they do this for 30 years, when congress was in session, the stock market was up about 1.6%. when they are out of session it goes up 17%. 17 bytes better when congress is not sitting because you could wake up in the morning and something bad had happened. longer has the advantage because for the last couple of years at, at least since 2000 little when the republicans actually held against the push for a tax increase, and the markets were convinced that nothing bad was going to pass legislatively, there is no discernible difference between when congress is in session and out of session on how the stock market moves. that give you some sense of the advantage of gridlock. the markets are not paralyzed whenever congress goes into meet level, we havete the opposite of gridlock. 24 states have republican governors and republican house and senate things to the redistricting. republicans have held those legislatures for a decade. the democrats were asked, would -- like one land letter to one landslide or two, and they said two. they reduced to did for 10 years, and so they got to landslides that lasted for four years, and one landslide that asked for 10 years. we just in washington where tend to focus on congressional redistricting, but for state legislatures is probably even more true. the democrats redistricting did make illinois at bill -- california and bulletproof are democrats, and the 13 days that have both legislature and governor. the republicans have 24 states. republicans have half the population live in another state. the democrats have a quarter of the population living in their states, at a quarter of a places like becky and i over the legislature is divided. 13 states, democrat-controlled state going as quickly as they want. 24 states becoming texas or hong kong. they are moving in very different, some more rapidly than others. statesingle democrat raises taxes, and all the republican state's top cut taxes unless several years. you see several differences on how they treat public-sector unionism. spending,taxes and markets for tax reform, by 2050, to get all 50 state to abolish the state income taxes. nine have no income tax now. north carolina and kansas, republican governors, both houses, have announced that we are going to zero. they got about a quarter of the way there so far. watch aerosonic of what oklahoma got weird word to see more movement more quickly. and then we can judge. if you think that more government spending and higher wages make people healthier, wealthier, and were successful, and the economy will be better cover than he can do it all loads loads of good enough to will behington -- better. they can do that. you do not have to wait to washington. filibuster proof majority have they want to reform the corporate tax code they want to fix obamacare. they seem to be troubled by the same gridlock that troubles the administration. to worrying about the changes that you want me to the way that the national government treats the national economy? >> we have a senate and house race in november. it looks very good for the republicans, with the number of senate the that are held why democrats that are engaging. -- are indeed your. danger. 2016, there are a number of seats that you worry but in illinois, perhaps, which is one intent but it which is not only republican territory. 51 is not what you're looking for, 54, 55 is what you're looking for. the house will strengthen going forward. the replica guns have repetitive it is for -- the republicans have better candidates than the 10,012ts, much more than -- 2012 and we were sloppy about running for senate. not being disrespectful to anybody's arsenal -- personal to go withuld refer the scaling or something. [laughter] >> you said greater than 50%. what percentage would you give? what fact are -- what factors do you think are behind the republican wave that is coming in november? >> the democrats who are sitting in republican states. west virginia is technically a blue state, democrat of hundred, democratic house, democrat excitement. democratic governor, democratic house, democratic senate. 50-50, the west virginia senate, we will take that senate the force or -- for sure. in montana, the cumbersome and has been running for that seat, and that will be a republican pickup. arkansas will go republican. so will espn a, so we'll north carolina -- so will louisiana, so we'll north carolina. i just left one of the seven out -- alaska. the republicans just to make sure that they take one and not have a third-party, and then they get to win. those of the 70 need to get across the finish line. but now the republicans are pulling ahead in michigan, so that in that race, you have a serious candidate in new hampshire, in colorado, both in play. one out of three shot in those. you add those together and you start to worry. you worry about georgia, if they a warlock. could you define this for the audience? >> one of the candidates had decided she was a which -- witch, and she was good enough to defeat the sitting republican. but she was not good enough to get across the finish line in the general election in delaware. woman, probably not a witch, she was probably making that up. [laughter] optimistic as republicans are but 2014, changes a little bit because especially on the left there is a lot of days in the clinton machine if she does announce the extremely formidable race. take us through the top candidates for the republican party party for 2016 and the strengths are? >> this field is so much superior to 2008 and 2012. you really had one of two people who are running for president of the others were running to be a radio talkshow host or marriage counseling. or to sell books. but they were not actually running for president with a -- but they were buying a lottery ticket because maybe they would primary, and then the press would come and they would get attention. money,n they would raise and then they would get a campaign together, and they would get a campaign manager and all the things that should have happened two years earlier for a grown-up campaign. this time away aren't we have six people who are either standing on the stage already, or good step up on the stage and no one would laugh them off of it and ask what you are doing. five governors, one senator. start with chris christie, he has had some challenges, and maybe he does not make it, but he writes himself, he will be a serious person and a good raise the money, he has the capacity and the name to both raise money and run, and a narrative of successes in terms of reforming a deep blue state. a constantr was attorney blue state red. reformed the pension rules there, they report that union rules. every year they have to have an election if the unit was to keep going. -- if the union wants to keep going. your money oute of your paycheck, they have to come and ask you for it. teachers are making $50,000 in cap and that was taken out of your paycheck by the city or the school board, and given to the union, and he never sought. not since you and your pocket until the union guys come and say can i have $1000, and you're allowed to say no. oddly enough, several do. he has dramatically changed the saint -- the state. every republican has made a contribution to him when the unions tried to recall him. he is the only governor that defeated a recall and got reelected. down to rick perry, he faltered last time because he should not have taken pain medicine before debates. that said, he spoke with the conservative legal action conference, and the establishment press for saying he is agreeably articulate. he is when he is not taking pain medicine. he is a very successful governor for 14 years. there is a real narrative there, good ra -- it could raise a bunch of money. the governor of louisiana got an ethics law that minnesota would have been pleased with past and louisiana. school toys for 380,000 kids -- school choice for those kids. schools are available for a buddy who wants to take him up on that. he may well run. jeff bush was governor for eight years, perfectly competent regular republican governor. he would be a candidate who could step up to someone would have to fall over for him to step up, but he could do that. and then rand paul, who starts with 15% or 20%-based both and all 57 states. there you have a real opportunity as a senator. it other senator, it is very different -- very difficult to pass this bill. it is increasingly that they don't pass bills. [laughter] speeches, but if you can compete with the guy who could wake up tomorrow morning who could do something edges on the front page of a major newspaper and the sugar is awfully difficult to compete with that. >> you said christine, walkabout. , bush, paul. is there a top three? >> no, i think the good news is that all of those guys are being tested on whether they have glass jaws or not, and most of them have done quite well. kristi is being run through the ringer again. and he makes you will be tough as nails, if he does not make it, that will be fine. i think he has covered well in a difficult state. unfunded liabilities, and done that with a democratic house and a democratic senate in new jersey. real progress there. brownback ofked kansas. he could have an exciting legislative term just as scott walker did. back in 2011. that could put him up front. other than that, i do not see a governor that would work within that would do the kind of a mage and back you say i know the six guys a really just think of a but look at the new kit and -- new kid. >> there was a poll that came out at the end of last week that looked at some trends among millennial's. it found a couple of things that i think pertains to this conversation. not, like tohey do identify with labels over the independent, most of them voted for obama. the ba percent of nonwhite millennial said of the it'snment that it is responsibility to provide health care. 71% said they want a bigger government with more services. these are slight majorities, filibuster proof majorities. does the republican party have a serious demographic disadvantage moving forward in the next 20 years? what is the best way to think about this? >> you need to look at demographics in two different ways. democrats look at graphics like race, ethnicity, and gender because that is what they think of. there are ways to look at it, self-employed people, the number of covered workers versus rented sector workers to people who ow n 15% of stock. health savings accounts, individual retirement accounts, eating more people into the stock market. answer everything with cops, teachers, and underment -- those government employment. it makes you lower likely to be a democrat or republican. you can add into that the other things you can change. states 45t the united years ago, 25 years ago homeschooling was a legal in just about every state, maybe to had it legal. today is pretty much legal in all 50 states. 2 million people homeschool, and they know perfectly well that the modern democratic party wants to take that away from them. add to that the 380,000 parents $500,000 voucher and louisiana, $2000 voucher in louisiana -- in arizona. we are building out schools and structures that allow the letter, but they can go to a different public school, or the one that they go to might be nicer to them when they walk in and say i have $5,000, and i want to know how you're going to treat my kid this year versus last year. they will treat you with respect, which they will not do w, think about how you're cheated when you go into law -- go in to buy a car versus the department of motor vehicles. i do not think they will ever come back in the state for school choice has been one. just as labor did not come back in great britain until they fundamentally changed their view about allowed people to buy the console housing over the public owns. and people did. the bolsheviks ran against them, and they said they will steal everybody's houses, and this will be great, and they got wiped out. people who where were labor voters wiped them out when they threaten their kids and education. 30 years ago there was very little concealed carry issue. able tollowed being carry a gun on them in their purse. have concealed carry permits. who has made that decision is a different human being than the one who says that we have a government, and if something goes wrong they will draw a circle around me and this will be helpful. in person says i will be charge of myself. try to take that away from people, try to take that away from people. that's what the democrats always get in trouble when they talk about gun control because they do not understand their threatening something that you will consider important. we can, by expanding liberty, and that is where half the country that lives in red states are doing all of these expansions of freedom, and the immigrants are voting against that, and we would not want you to have that, and if we ever get active power wisconsin and we will take your dues out and you will never see it, and you do not produce a no, and we will go back to the way it was. tot is not a real self but -- sales pitch to go to people. once you give people more liturgy, the dates of major who they are -- liberty you changed the nature of who they are. i am not sure that the challenges that you mentioned continue out. at 40 not the same person as we were at 20. that said, i think a lot of needs to bearty much more aggressive in being pro-immigration and we need to be taking all the smart people from around the world and when they come here to get a phd, i'm not in favor of not letting them leave, but i'm in favor of encouraging them to stay, and stealing their airplane ticket home. we want all this talent. there's a lot of people in a lot of jobs that we need more people. the reason that we are the future and china is not because we are allowed to have kids and a lot of immigration. >> we have one more question. make it great. >> chairman cummings. you just promoted liberty and individual responsibility. how do you feel about corporate responsibility? companies, who through negligence or error do not -- dump chemicals into a westward bend to river and declare bankruptcy? how can our economy deal with situations like that that does not just fall on the government to bail them out? reasonable to have loss so that people who pollute the neighbors property paid for damage they do, just as they were in a vehicle. real damage can be done. i think it is very important that we ask individuals and businesses to be responsible for real things they do. reform, whereort the trial lawyers have been getting rich going after people force the that the guy who owned the house before them did the some of the stop where you the guy with the deep rockets, again texas has passed a great number of reforms in terms of that reform that have dropped the cost of notable care in the state, more doctors are moving into texas as a result. louisiana is about to pass the same collection of rules. sohink getting those reforms that the billionaire tile reforms -- trial lawyers who save been abusing the system is the thing we need to tap down. it is killing the sector, being very and helpful. very unhelpful. let's reform those so that we realocus on cases of criminal activity. by individuals, or people can collectively in some company. >> we have one time -- one more question. the guy with the beard? >> guys with beards get to go first. [laughter] you have taken it to an extreme. [applause] [laughter] sunshine press. i'm wondering if he could set would make anrics economy better that is -- what is the purpose of all of these policies? how would you measure that the economy is better here than there? states whereo some the democrats are predominant. do you look at life expectancy? education levels? how can you tell if the economy or economic policy is better or worse? want to have metrics, if you do not have metrics, you end up with all sorts of problems. i talked to the budget guy when bush came into office. i asked what metrics are you going to use? percentage of gdp? total number of full-time employees of the federal government? what is the metric you're going to have to maintain the cost of government. and he said we should do something like that, and they never did. it wasn't on the list of things to do to measure the size of government. what are you trying to get to? is one capita gdp measure. people decide to be monks or warlocks or something, and they do not care about that. some people will be rather them to have more than last -- some people would rather have more than less. few people are quitting jobs and few people are moving. in a vibrant, dynamic economy, where people are leaving their jobs because they're someplace else to go to, they move because there is something to move towards. when you look at all the bad numbers not the employment levers, the number of people force, we are, -- not moving as much as we used to , we not eating jobs as easily as we used to. it was not what people can come to a job -- moving jobs as easily as we used to. you do not want people handcuffed to a job. generally, there are measures, and that is useful. we have done some fine work on earned success by what translates into happiness. winning a million dollars does not, surprising, make you happy. people will make a lot of money, but because of lack of the draw they do not get to be happy because they're not sure they are earned it -- have earned it. happiness through money is probably easier, when you have money as the metric. >> thank you very much. [applause] a big thank you to grover norquist. what is our funniest guy? >> washington, d.c.'s funniest celebrity. >> he competes every year, and he wins most years. he has drafted me in from august through september. i've gone back to watch who has one in many of these cases. one was john lovett, present obamas funniest speechwriter, and he impersonated arianna huffington. grover won last year for impersonating dick cheney. and my strategy this year will be to impersonate grover norquist. we look forward to seeing you all there. -- thank you very much. [applause] the food is coming out of and i want to say a special shout out to my friend that c-span. , theyere really hard are about to depart. i want to get these guys food because they are leaving in 15 minutes, and another five people are coming in. these guys back here on the podium, i want to make sure that they are fed. here,'re sitting over you're ugly get festivus of idriss opentable. -- you are not going to get fed, -- annd in opentable 0 open table. they need about the connection between at innovation, economy, and the state. andis on a plane right now, the entrepreneurial state were so good to you would be able to connect by sky from the plane. haveng in the audience, i found a good friend from denver who happens to be a fortune 500 eeo. into safety come president obama -- site seem president obama? ladies and gentlemen, the chairman, and immediate that ceo . lee mcintyre [applause] we're going to have a discussion about the state, and infrastructure. placement. coca-cola, thank you. i want to thank rolled gold tidy twist pretzels. this is part of your lunch. >> thank you. [laughter] i want to make sure lee is well fed. not pay us, in case anyone is tweeting that, it was just a joke. lee, i thought we might start off with a serious question. you are chairman and immediate past ceo of ch2m hill. why is it not -- >> there were two h's and a c and a m. they were cleaning up the environment and hill did not want to be h3. just a bunch of names. the founders had a sense of humor. i have been living with it ever since. kepten i first met lee, i calling it incorrectly. i was pulled aside and said, we need to go through a course correction. for those who do not know, ch2m hill is one of the largest infrastructure, broad infrastructure companies in the world. lee help to grow to a gargantuan size. i thought it would be interesting in terms of talking about the economy domestically and globally, what you see as both the opportunities, but also black swan issues out there from your perspective. >> first of all, i really like being in d.c. the reason i like it here so much is because everyone is so friendly. everyone is so happy. they always greet me with eye contact and a smile. i realize after a while, everyone here thinks you might be someone. [laughter] they're really nice to you for a while. i just took a trip where i went to panama canal where we are building a new lane. it is a pretty interesting project. we have the locks done by a spanish italian joint venture. what could go wrong with that? [laughter] the north america are in the north dakota. andhen i went to miramar the north dakota. there's a real obvious connection between the three. that was a joke. that was a joke. that was a joke. the other thing i like about d.c. is ask questions when i'm here. there's a little the provincial, a little -- the same questions i got here in the last few days were the same ones that were asked by my mother's friends in the adult community she lives him go, which is in pandemonium and i always wanted to be in panama. they're building a new canal? miramar, is it safe? in north dakota, isn't it cold there? it was the same questions in both places. the town is gotten a little insular in d.c. the other reason they are fridley is because they bring them news from the outside when i come to d.c. i tell them about stuff. they are fascinated. [laughter] so, anyway. >> got it. we're going to enter you into that comedian contest. we've beenthings talking about in terms of what a healthy economy looks like, many people have been talking about infrastructure. some of you were there last night and some not. we had a very interesting dinner last evening where a lot of people talked about infrastructure. we had someone talking about the importance of and for structure investment in the u.s. from the afl-cio, those from the chamber of commerce who agreed with that. when you have afl-cio and the u.s. chamber of commerce on the same side at a time the business roundtable i think was chaired by john engler, and when he was on that side, how can such a powerful coalition making such a sensible suggestion lose? why are you so lousy at getting the kind of infrastructure investment you think is important the country? >> i totally agree. if you look at the world economy, too, i think it is now $70 trillion and where 25% of that. i think in 20 years, at 3.5% growth, the world economy will be $140 chilean. for young folks, you'll be working -- not too long, double the size of the economy right now. this is kind of an optimistic thing. but it will only happen if there is infrastructure growth that is proportional. as every study shows, economic development -- >> [inaudible] >> no, there are problems everywhere. the u.s. has advocated structure growth. they blamed it on the gasoline tax earlier, which is part of the infrastructures transportation. that is true, they don't want to raise that amount anymore. so that is the fun for transportation. there is a movement to maybe use mileage usage to fund transportation. the structure is more than that. it is water and sewer and electrical power, data, communications. all of those things. it is pretty clear without infrastructure growth, you will not see that $140 chilean economy. the infrastructure has to be improved or you will not get that $140 trillion. are we have to get with it whether it is india or china or with thatybody investment is not happening. the reason you have that coalition of strange bedfellows agreeing on infrastructure is so obvious in the united states. the stimulus package back in 2009 did not do a whole lot. .bout $100 billion of stimulus >> did you tell that to president obama? >> multiple times, and he looks at me like, that is not what my guys are telling me. he calls it the three-inch deep stimulus because it was three inches of asphalt spread all around the country, but zero for my estimation, that was -- >> want to do that again? >> just to make a point here. >> you operate, usually when i run into lee mcintire by accident but usually in foreign governments or rooms in airports around the world, does you do a lot of international work, the one of the interesting things about your tenure there is that you have pulled out of a lot of places in which your operating around the world. so rather than expanding indefinitely, i think you told me were once operating at 120 different countries and now brought it down to like 60 or something. is that right? >> that is roughly right. the reason we did is because some countries will have a hard time advancing almost every country in the world has some similar issues. so then you have to judge whether it you're able to pull it off. >> corruption? >> corruption and bureaucracy are usually in her tangled. to get things done in certain countries, the brick countries, for example, in other places, there are usually 20 signatures from 20 different government officials you need to have for you can progress, and then you might have a little intertwining of corruption and those 20 signatures. it can be taxation, promises made to people, just not getting things done. so the projects really don't go. we decided to get out of some of the countries were just looks too hard, and focus on the ones where you can actually -- >> > [inaudible] >> north america still the greatest economy on the planet when you could mexico. >> the last time i asked, you said it was the u.k. >> it is really greater privatization. and getting big infrastructure things approved. i do admire the u.k.. they fiddle around and study things for a while, but when they make a move, they make a move. they're building high-speed re d rail, an underground train, not a subway. they are building a whole new sewer line for london. they get out and move. i'm pretty impressed by how they do it. >> with a working summit this morning before today's conference. atlantic's like that meeting after meeting. we had a guy from general electric, very senior official of ge, telling us they wanted -- one of the surprising things they're looking at on the infrastructure side is egypt is booming for them. people think egypt is a volatile lace. it has all sorts of instability. but other because so much has been held back and there is new demand, or because something else is going on that these volatile places where there are uprisings, part of what the governments are doing is investing in deeper infrastructure. is the answer to your success more and more revolution? [laughter] >> change is another way to put that. a good example. it is one of the poorest countries in the world. it is been repressed and held back for 60 years. a very interesting place, by the way. i recommend it. it has 135 ethnic groups. you have some religious fundamentalism there. even with buddhists, which is just shocking that the buddhists even have fanatics who are oppressing the muslims. it is a fascinating place. it has all kinds of resources -- oil, gas. you see a lot of the old gas folks moving into the area. it is also a political pond between india and china. the u.s. is interested in kind of intervening in that political pond situation. so it is a very fascinating place. there is a place of change. it might be a good place to do infrastructure. >> the other thing that occurs to me in terms of thinking about another contradicted on issues often left out our gender issues. i'm sure someone has tweeted that steve clemons is interviewing another white rich men from the midwest or something. we met in aspen at the idea festival several years ago at a roundtable i had the privilege to moderate along with beth broke. ernst & young had just done a study about the impact of women or the absence of women on corporate boards, but a much more drill down study in looking at the economic benefits that came from women. opportunistic that said they needed to broaden. there were some crusty folks who are resistant to the idea. anyone who tweeted i'm talking to another white guy, you're not a ceo anymore and just given the jackie hinman, the new ceo. first time ever at a large-scale engineering firm -- >> construction firm. 24thrst woman ceo and the in the fortune 500. did that lunch push you over? is that why you went that way? i just want to take credit where i can. >> you made a big difference. i was going to give it to a white male, but decided to give it to her over dessert. company, a while ago, we decided to push women in our industry. i would say we treat women as poorly as we treat the men and our company. and that is why they do so well, because they toughen up and do quite well. we won the catalyst award. i think we're the only engineering construction firm to win that award for developing woman in business. the more we promoted women, the more profitable we became. i always tease the women in the group and say it is coincidental that we have become more profitable just because they're running the company, but i think there might be a connection. it is a very bright pool. you just don't want to be without it. jackie joins the group -- is appointing it is only 24 women ceos in the fortune 500, but that is double from a couple of years ago. the trajectory is right, but we have a long way to go. >> i was sort of joking, but i think your conservative who is very progressive, which is complicated and may be an oxymoron. very progressive in terms of those kinds of things and, at least in your sector of the fortune 500 firms, a demonstrable leader on the source of leadership issues and inclusion of women. at the atlantic with had a lot of debate about why women still cannot have it all. we have hosted others that are raising these important questions. when it comes to economic inclusion and balance, how backward is the rest of your industry on these issues? >> we move reduce low. it is a complex subject. trys not just white males to suppress women in the business. i've never been to a meeting in our industry and it was several comedies were guys are sitting around cigars and, how can we hold down women? i just haven't been invited to that meeting. they may be going on somewhere in the building, but i don't get invited. subjectcomplex low -- of women giving themselves the power to succeed, women deciding -- yes, i think i could be the ceo and will run for it. those kinds of things inter-into the equation. >> they're trying to give me the hook. if there are questions, i would like to grab one of these from the audience before we move to the next session. this lady right here in the middle. i don't see who it is. we have bright lights glaring. >> thank you. cheney with vitamins americans. thank you for discussing the women as the ceo. i have a question for you ever the gentleman in the room. woman feel threatened by who is too smart, too beautiful, and to feminine, and what do you think about the fact that seeybody seems to love to hillary running, for president, i mean, madam clinton, to run for presidency in 2016. in the first creek going from the conservative side -- critic coming from the conservative side was how mr. clinton handled his own affair and not on her own credits. >> we have an economic question for you. what you think about hillary clinton running in the first guys out of the box go after president -- just give us a quick survey on sex and politics, lee. [laughter] well, i don't know very much about politics, so -- [laughter] a-political and getting more a-clinical all the time and the independence at some point, have to start speaking up in the political system. we do have a very strong wife or kid two-party system right now. kind of gerrymandered. i'm not happy with it. independents will start speaking their displeasure. >> we are at the end of our time before i invite richard vague to join us. i feel like i should be ellen. it is a really good turkey sandwich. tiny twists are very good. the one thing, now that you're not ceo and when ceos like yourself at the business roundtable spent time with the president of the united states, we often don't get a lives at those meetings. you're talking about jobs and economy and the kind of choices they're making, most ceos won't reveal what they've said or cicely to the president. although steve jobs did. and steve jobs is very hard-hitting. in a way he was counterintuitive because he wasn't really trying to get obamas blessing when he talked about why the iphone would never be built again and the united states, why so much of that -- i'm interested in whether you would share with us maybe the hardest hitting comment you have shared with the president of the united states will stop just give us in a glimpse of these meetings and whether they're worthwhile between the business community and the president. >> i think the president has reached out, particularly, i think his work pretty well with the business roundtable. forants a vehicle, a voice the business community, and has done a nice job. probably the first above ever heard anyone say the president has done well in the business community. >> he would like to have work medication with the business community and has been improving in that area. himconversation i had with once, just to show you how inept i am politically, it was on the debt ceiling. it was just before we were looking like we're going to have another debt ceiling crash. i told him i thought he should trade keystone pipeline for a vote on the debt ceiling. just go ahead and give that to tea tea party years -- partiers. it seems like it is politically tangled around her ankles. it was just a blank stare. politically, i am not the world's most finessefull. >> one less item, bill gates -- we all know from microsoft and the gates foundation, spoke at the atlantic last week. he came in and did a form we organized and he made the emphatic point that innovation and economic growth in the future essentially did not depend on washington and could bypass washington. very interesting, provocative comment. looking at the government as the fundamental core building block of wood so much other innovation was built, would -- that would have been -- i would have started with her. does innovation and growth in america, to bypass washington? dysfunctionington's is that something that will keep the economy -- >> i think bill gates is right on the mark. washington, d.c. is at great risk of becoming somewhat irrelevant. the panel you have before with grover, by the way, that was my dream to be between grover norquist and lunch. selfie of myself between those two. but the panel before, that is what it was all about, wasn't it? that sort of theme of d.c. -- ig great potential think he is right on. that is been predicted for 20 years. big governments would be less important than the corporations and ngos. fulfillit starting to itself. other than on foreign policy. other than foreign policy, d.c. has to watch out. >> ladies and gentlemen, lee mcintire. thank you so much for joining us. [applause] go enjoy your lunch. here's the mustard. i will hand your diet coke. coca-cola. i'm just joking. i love pepsi, too. pepsi got really upset once when we had too many cokes around. we love pepsi-cola. now, i'm going to reproduce myself. i am steve clemons of the atlantic. person who ise a been supportive of various things you listed as try to do on the economy front but also my previous with the american foundation, explain a little bit about richard vague was a venture capitalist, businessman. he has been thinking a lot about that. not government debt, but private sector debt. he and i have been sort of plodding along to say, is washington, d.c. and our capitals around much of the world focused on the wrong part of the debt equation and what can be done about it? richard vague, more than anyone else i know, is the world leading expert on debt because he was the guy who helped create so much of it. in the sense that -- i'm not joking. you think i'm joking. richard vague was the founding chairman and ceo of a prominent bank called first usa bag. if any of you remember the old credit cards they started there. if any of you have airline mile credit cards, university credit cards, things that give you mileage points, prizes, richard vague basically became the king of the infiniti credit card business which he later sold to chase. he has been in energy entrepreneur and out there, but he is most known particularly by those delaware companies as somebody who really created the modern credit card business. be testifyinguld before congress about that regulate our industry, it is very interesting that he has come in to look at ways to look at the ball and chain of private sector debt around americans today. this is somewhat of a unique learning moment, to look at someone who knows that world so well but also now realizes that one of the real hindrances on growth, not only here in the u.s., but as you look at economies around the world, is debt. richard will come make a comment and i will harass them from the side. i promise not to do so for the first five minutes. ladies and gentlemen, richard vague, chairman of the governor's woods foundation. [applause] did i say anything unfair? >> it's all a lie. don't leave anything. thank you very much. i'm grateful for the opportunity to present today. a lot of the current economic debate centers around stimulus versus austerity. as steve mentioned and is abundantly evident from today's conference. is the much bigger issue private debt. the u.s. crisis of 2007, 2008, was caused by rapid increase in private debt. mortgage debt, which have been growing gdp at about 17% per decade group 46% in the six 2001-2 thousand seven, and wasn't just mortgage debt. all forms of private debt in the united states were growing rapidly. become -- anytime you have 20% growth to gdp in private debt, and you also have absolute levels of private debt gdp, you're probably going to have a crisis. now, after the crisis, that private debt will flatten or decline. let's look at the united states in 1929. in 1997.1991, asia let's look at europe in the same 2007, 2008 timeframe. stock market crash and i to 29, yet almost 20% growth in private that. any reached really for the first time in peacetime, this 150 plus percent absolute level. in japan, the growth rate was 20% in those five years. debt grew more -- to be more than 200% of gdp. in this chart, the red bars are the private debt and the blue bars are the public debt. in asia, in the five years leading up to the 1997 crisis, you had a 29% growth in debt in korea, for example, up 43% growth in private debt in indonesia. forpain, and 2008, in spain much of the major eurozone countries, the most egregious in 49% regard, but spain grew gdp anddebt to to five years to exceed 200% in gdp and still remains at about that level. in europe, the obstacle to recovery is high-level of private debt. done over this past year is we have examined this comp reasonably from major economies that 22 economies in the world that have more than half trillion in gdp and constitute over 80% of world gdp. this threshold of 20% growth in five years and 150% overall level that holds true. there were six such occurrences prior to 2000, and all resulted in banking crisis or gdp and traction. you're no crisis otherwise. there have been nine occurrences from 2004. seven of those resulted in crisis or gdp contraction, and there's only one crisis otherwise. that was switzerland in 2008, which of course, was because they were intertwined with crisis countries. there is one instance that is still in process, and we will examine it in a moment. and that is china. where you have 56% growth in private debt in a five-year period. the next tier down, countries 150% private gdp, it is almost as bad. there have been 13 such instances and 9 of those resulted in a crisis where gdp contractions. now, it is not just mortgage debt. there has been this kind of obsessive focus on mortgage debt in the u.s. because that was what precipitated our 2007-2008 crisis. there've been many crisis or precipitated by an increase in business debt. it is also somewhat independent of the instrument involved. there's been a lot of focus on securitizations, but a default swaps and the like, but there have been plenty of crisis that did not involve securitizations for things like that. the key is to track the aggregates. whatever form they might take. now, why does runaway private lending cause crisis? because when you're lending that much money, you have built too much of something and you have bad debtloans and have associated with that. and once too much of something has been built and too many bad loans had been made, monetary and fiscal policy cannot solve the problem. they can soften the blow, but can't solve the problem. you have to write off those bad loans, recapitalize those institutions, and time alone has to pass before you can absorb the overcapacity that you have created. triggering events often get mistaken to be causes of crisis. in 1929, the stock market crashed and was mistakenly assumed to be a caused by many. the lehman brothers crash was mistaken to be the cause by many. the cat was already out of the barn for the time those events happened. all whole lot debt had been created. sitewhat other factors the private debt growth are predictive of crisis? we have looked at these 22 countries as far back in time as data is available, and look at 20 different factors. how long does the data go back? well, there is not as much data as you would want. in some cases, noah goes back to 1990. in some cases, 1970. the usa has a back to 1960 in very good form. it is kind of frustrating that this has been so out of the spotlight that countries don't do a good job of keeping this data. the speaker pro tempore: the house will be in order. the chair lays before the house a communication from the speaker. the clerk: the speaker's room, washington, d.c., march 18, 2014. i hereby appoint the honorable thomas e. petri to act as speaker pro tempore on this day. signed, john a. boehner, speaker of the house of representatives. the speaker pro tempore: the prayer will be offered by our chaplain, father conroy. haplain conroy: let us pray. gracious god, we give you thanks for giving us another day. you have blessed us with all good gifts and with thankful hearts we express our gratitude. you have created us with opportunities to serve other people and their need and to share together respect and affection and to be faithful in the responsibilities we have been given. in this moment of prayer, please grant to the members of this people's house as they meet with their respective constituents the gifts of wisdom and discernment that in their words and actions they will do justice, love with mercy and walk humbly with you. may all that is done this day be for your greater honor and glory, amen. the speaker pro tempore: pursuant to section 3-a of house resolution 515, the journal of the last day's proceedings is approved. the chair will lead the house in the pledge of allegiance. i pledge allegiance to the flag of the united states of america and to the republic for which it stands, one nation under god, indivisible, with liberty and justice for all. pursuant to clause 4 of rule 1, the following enrolled bills were signed by the speaker on february 14, 2014. the clerk: h.r. 2650, to allow the fond lack band of lake superior chippewa to transfer certain land. to delay the implementation of certain reforms of the biggert-waters reform act. h.r. 4076, to address shortages and interruptions in the availability of propane and other home heating fuels in the united states and for other purposes. the speaker pro tempore: pursuant to section 3-b of house resolution 515, the house stands adjourned until 10:00 a.m. on friday, march 21, 2014. growth. you can pry to inflate your -- you can try to inflate your way out of it but it will take a generation or two. the only realistic short-term way or near-term way to help with debt is through restructure. we think the underwater mortgages are a candidate of this. we think second rate mortgages are a candidate of this. restructuring -- and i think frankly one of the ways to do is not to have the federal government step in and fund it, but just allow the bunks to spread this over an extended period of time, 10 or 20 or 30 years. why can't they do that today? what prevents the -- why doesn't water run downhill? it makes so much sense to restructure all this bad debt in the economy, give the economy to have a balance again, what are the -- what are the things that need to be done to incentivize that kind of restructuring? well, the objection of course is primarily moral hazard and unfairness. he just loves to charge the credit card. >> i'm picking on him and he really doesn't but what you're worried about -- the moral hazard is if he gets a break on his credit card and debt forgiveness he's going to take advantage of this. absolutely. anytime you mention this, the moral hazard comes up immediately and frankly it's a complicated question and difficult to deal with it. however, those same questions would have been associated with the rest of the banks that occurred in 2007 and 2008. they are not different questions. the one thing we do know is high level of private debt impede economic growth and so you're going to have to come to grips with that in one form or fashion. so let's talk about the current situation in china. we're getting there. one more -- there we go. china, as we mentioned a moment ago, if our threshold is 20% growth in five years and 150% absolute level of growth, china is well beyond those hurdles. they've seen 56% growth in private debt over the past five years. their current levels of private debt to g.d.p. are at least 180%. now, if you spend time with china numbers you know there's a lot of different numbers flown out there. it could be as high as 200%. they have created significant overcapacity and bad debt levels. you hear about ghost cities. you hear about ships that have been built that are unsold. everywhere you look you see significant overcapacity in china. we think it's realistic -- if i can get to my last slide here -- we think it's realistic to think that china could be facing a crisis in the next two to three years. when you see in all the crisis we've studied, when you see this 20% threshold it can actually keep going for a number of years. we think the average number of years that this 20%-plus threshold exceeded was about five or six years. so you can see once the party gets started, it can keep going. and that's where we think china is. it could be a slow-motion crisis. you know, the mitigating factor here, as a couple folks mentioned here, china is carrying a lot of monetary assets. its central bank borrowing rate is relatively low. it's only 30% of g.d.p. whereas the u.s. is about 100%. japan is 220%. china has the capacity to move concurrently or even preemptively to recapitalize businesses, recapitalize banks, expand the safety net and either preempt or cushion any type of crisis. but they could easily mishandle it. it could be a full-fledged unraveling of the financial system there. we recommend, frankly, that china, to the extent it isn't already in its murky and hard to tell act preemptive to recapitalize businesses and financial institutions on a massive scale. the amount we're talking about could be 25% to 50% of g.d.p. so those are our thoughts. i think our general thesis is we're not paying as much attention to private debt as we should. that's what drives the economy. that's where we're going to find answers. in the u.s. to a certain extent, in europe in a big way, the way to increase demand, have strong g.d.p. growth is to deal with this private debt issue. >> so richard, thank you. we're short on time. michael free throwman, i ssadorfroman is here and don't want to step on his time. i've been interested in this. richard, i think one of the things that we've found is we've gone out and to talked to some of the world's economists and commentators who tend to focus on government debt and we raise this issue. much of the data on private debt wasn't available. so richard has spent a lot of his resources going out and amassing the data. it's available at debt-economics.org so people can kick around this data. but the other interesting piece of it is, despite you having private sector events out there that precipitated government action and thus government spending and rising government debt levels that began to then animate the civilian space and taxpayers with how outrageous that was, the level of attention to the private sector debt question has been, if you are to do is on a 100% basis, it's 99% of the world has been focused on government debt all around the world and maybe 1% of the coverage in the world has been on the private sector side of it. so i'm just interested in whether it's the politics of that or, you know, the societyiological dimensions of why this has been ignored and what your research has shown. >> well, i think we more naturally think public debt as collective responsibility. it's we, the people responsible for our federal debt. we think private debt as hands off. es that laissez faire. we don't want to -- that's laissez faire. we don't want to intrude. all of our crisis has been caused by runaway lending, i think that brings it back into as it ic sphere, and relates to capital at financial institutions, which is the most breaking element that you have. it's not a natural thing for folks to think they have responsibility. any article you read talks about rolling over public debt, refinancing public debt, rates on public debt. the issue in spain, in france, in italy, in portugal, in greece, in ireland, in the u.k. is public debt levels. you do restructuring in a big way in spain, things turn around. and very -- >> and very finally, richard, you are one of the titans of the financial industry. you saw the foreshocks of the 2008, 2009 financial crisis and tried to advise bark klays and others about that and didn't get very far. why do you think your own industry is so blind to the sort of proposals and prescriptions you're suggesting? >> you know, lending boom, everybody's making a lot of money. institutions are making money, individuals are making money, governments are doing well. it's hard to step back and look at this. but let me give you a little tidbit here. in the 10 years leading up to the 2007 crisis, net new private loans totaled $15 trillion in 10 years. government debt increased $3 trillion. look at the order of magnitude difference. and by the way, lending is the principal means by which money is created in our economy. so $15 trillion more in new loans, in essence mean we were awash in $15 trillion of new money in a decade period. and by the way, we went from $10 trillion to $25 trillion. 2 1/2 times the level of private debt that existed in 1997. >> ladies and gentlemen, richard vague. [applause] richard, again, is chairman of the governors woods foundation. now i have the distinct pleasure to introduce someone that's been a friend and colleague of mine since i've really been in washington early in my career. we've both aged well, i think. at least i have. [laughter] working on the funniest guy in d.c. contest. again, it's not working. i think when we think about the economy, when i worked the economic strategy, worked in the designate, trade was a huge deal. one of the reasons i'm so because to mike is they know him. they knew people like nicky cantor. of course, there were other distinguished trade representatives that came after them but nobody remembers who they are. so trade fell out. if you weren't a former citi bank guy, goldman guy, you weren't remembered much. mike doesn't like this at all. mike has brought celebrity back to trade in my view. at least he's helping. and penny prisker is bringing celebrity back to commerce. but mike is going to join us today and talk about moving the needle on the trade front on a variety of issues he's working from and engaging in conversation with him and then with all of you as the chief u.s. commentator of the financial times. i am going to give you guys a break from me. the ongoing emcee the next hour will be scott, whom you met this morning from the atlantic. mike welcome ambassador froman and welcome mike. >> welcome, ambassador froman. 'm going to get into t.p.a., loads of things starting with t. i want to talk about the world of -- state of globalization. we've seen in the last couple years, the first time ever, at least for the first time since the second worrell war, trade global ing lower than growth. and whether we're moving into globalization or at least fragmentization, deglobalizing trend, do you worry about that? this is a 30,000-foot issue. but do you worry that we might be deglobalizing? >> i think it depends a bit on what's driving it and what deglobalization means. i do worry about new forms of protectionism. i think we were quite fortunate and i give credit to the g-20, as one mechanism in this effort that in the midst of the worst financial crisis in 80 years the major economies actually did resist putting in place a lot of protectionist measures. no country was perfect. every country put some in place. but the percentage of world trade that was affected by traditional protectionism was quite small. what we see now is the rise of new forms of protectionism. localization barriers. and other new forms of forced technology transfer, indigenous innovation. i think that can all lead to some deglobalization in the negative sense. i think deglobalization means companies looking at their extended value change, supply change and deciding whether it's because of changing economics or operational risks, that they want to move some of that production back to their home country. that's not necessarily a bad thing. we want to drive more manufacturing to the united states. but if it's because of these new forms of protectionism i think it can be quite pernicious. >> clearly america has been the oulder behind the wheel of global trade globalization since day one, since the second world war, and you've always had the support of capitol hill. you wouldn't be able to do deals without fast track authority. with fast come up track authority. this occasion -- harry reid has deprived you of trade promotion authority. was that a shock to you? was that a surprise to you? how big a problem is that in terms of the trade negotiations you're in? >> well, look, i think taking a step back, i think there is a healthy debate going on right now across the country about globalization, about trade, about inequality how they -- how factors affect inequality. it's technology, how that's had an impact on our manufacturing sector or about different tax policies and different ways in which people earn money, whether that has an impact on inequality, so i think there's a robust debate going on. it's a serious debate. we need to be very much involved in that and we need to be able to convince the american public why these trade agreements are good for driving growth, creating jobs and creating good high-paying jobs. we know export-related jobs pay up to 18% more than nonexport-related jobs. so it helps for inequality. at the same time be sensitive to the various other issues being raised so that we're pursuing trade agreements that reflect both our interest and our values. raising labor standards around the world, environmental standards, taking on new issues in the global economy like the digital economy, taking on new challenges to globalization, such as the state on enterprises and the role they play in competing with our private firms. so we need to demonstrate we're doing all these things to our trade policy. globalization itself, it's here. we're not going to be able to roll back the tide of globalization. the only question is whether through our trade agreements are we shaped by it and does it reflect our interest and our values, our roles or the interest, values and roles of others. >> one of the critiques of the obama administration is it supports lots of good things, depending what your point of view is, but it supports things like immigration reform, gun control. and big trade agreements like the pacific and atlantic ones that you are in the midst of. but it doesn't do that much to make the case for them aggressively with the american public. do you think the time to twist harry reid's arm and others who are skeptical of big trade deals is upon us yet? would you agree with that critique of the obama administration? >> i am ale not sure i would agree with the critique. the president talked about trade in the state of the union. he talked about it in many of his public speeches. talked about it in private meetings with members of his own party and leaders from the other party as well. we have the whole cabinet fanned out. i'm spending a lot of my time on capitol hill and around the country, but so is secretary prisker and secretary lew and secretary vilsack, secretary kerry. secretary hagel has been riding importance of it on asia. we are out there engaged and this is a long game and we need to continue to make the case and ensure that we're making it real for the american public and for their representatives in congress. so not just statistics about how much growth it will create or even how many jobs it will create but what it means for businesses in their district. putting on another shift. hiring another 50 people. sending product to another market that's opened for the first time, we are going to need to do all that work. we're engaged in that now, and we'll continue doing that forward. >> so realistically, what is the chances of getting t.p.a. before mid term elections? >> there's a process under way on capitol hill. as you know a bill was introduced in january. there is a transition at the finance committee. chairman wyden stepped in that position and he wants to take the time necessary to confer with the democrats as well as the republicans on that committee, as well as his colleagues in the house to try and build support for broad as possible support for t.p.a. going forward. we're very much engaged with the hill on that process, and we're engaged -- personally -- i'm personally engaged on the hill mostly walking through what it is we are doing in t.p.a. so people understand what the value of these trade agreements are, what's at stake in these negotiations in the hopes it helps people get comfortable with that agenda and as a result support what's necessary to move the agenda forward. >> the mid term elections, whether democrats can hold onto the senate, but from the point of view of you -- of the ustr, the senate going republican is not necessarily bad news because you'd have a probability of getting it moved through it? >> as a member of this administration, i'm very much in favor of the democrats retaining control of the senate. in case -- absence of doubt, let me restate that. look, this is an issue where there is support and -- on both sides of the aisle and we're going to want broad bipartisan support for what we do on the trade agenda. >> the president visits asia next month, and it's been assumed that what has been signaled that's the deadline of getting serious t.p.p. progress on the board and it boils down to the u.s.-japan talks going on right now, the breakthrough won't go through with bilateral talks about vietnam. i've been hearing some very sobering reports of how much the japanese prepare to concede on the traditional agricultural blocks, dairy, pork, rice, etc. and i guess my question to you is, are you going to have something that president obama can show to the world when he visits japan next month and when he visits korea? >> well, we're very much focused on the substance of negotiations. we're not setting any deadlines. the substance of the negotiations to determine the timetable. on your point, when gentlewoman ined t.p.p., they agree to ambitious, comprehensive, high standard aspirations for this agreement, and that meant putting everything on the table and achieving market access through these negotiations. looking at the prime minister of his comments and comments of his own government, they viewed t as one critical part and the so-called third arrow ever structural reform in japan. as we look what's going on in japan, t.p.p. remains very important. potentially to achieving the objectives they set out for themselves in their economy, and we're very much engaged with japan on ensuring that they meet the standards of t.p.p. by the way, it's not just a u.s.-japan issue. it was absolutely clear from our last several rounds of negotiations is that all the other countries in t.p.p. are also looking to japan to open its market and view that as a critical part of moving forward. and so we have trade ongoing engagement with them. we made some limited progress. the gaps still remain and we continue to be engaged with an effort to bridge those gaps. what will be important at the end of the day is t.p.p. be a comprehensive, ambitious, high standard agreement where every country plays its appropriate role in that regard. >> as a negotiator with japan and others, how much does not having fast track authority in your pocket inhibit your ability to do the kinds of things that make trade deals? >> it is certainly an issue that is on the minds of all of our trade partners. when i -- when we last had a t.p.p. minute steerial in -- ministerial in singapore last month, i laid out in great deal exactly what was happening in washington, what the issue was with t.p.a., what the process was and what our view and approach is. from our perspective, we're going to continue to work with congress on building broad bipartisan support for a trade promotion authority bill. at the same time we're going to work to conclude the t.p.p. negotiations. made progress on the tpip process. as we show to congress and the american people the benefits of these trade agreements, it should move the whole agenda forward. >> would it presume to say your prognosis when you will get t.p.a., will you say by the lame-duck session at the latest? >> this is the process that we need to work with congress on. as we mentioned, we have a new chairman of the finance committee. they'll go through the legislative process. the house as well. and we're going to work with them to determine what the most appropriate timing is for moving forward. >> europeans have had their own difficulties with coming together and you've had your own problems in getting rapid pip talk.with the t is vladimir putin helping with this? >> i'm not sure that's a justification. i think that may be an issue in the background of this, but fundamentally the ttip negotiations are driven and have to be driven about by the economic stakes in bringing these two great markets closer together, eliminating -- eliminating tariffs, eliminating nontariff barriers, bringing the regimes closer together in a way that does not reduce the level of health, safety and environmental protection and that's the primary focus of the negotiations. we want ttip to be -- to help build an economic relationship and a trade relationship that is as strong as the strongest military alliance in the world but fundamentally it's got to be driven by the underlying economics. >> but it is a -- it is something that's also very strategically very important for you and for europe, right? and the energy component, i presume, has risen in urgency in the last three weeks of your negotiations. >> i think it's important to look at these trade agreements really in three ways. one, the economics. what i call the geoeconomics and then the strategic. the economics is the highest priority and that is, how many jobs will it create here? how much growth will it create here? why is it good for american manufacturing and agriculture and services? that has to be the primary driver of our trade policy. the geeoeconomics is really how do -- geoeconomics is really how do -- who will set the rules of the game and what are those rules going to be going forward for the economic system, for the international trading system? and that's where working with our t.p.p. partners and the ttip partners, our goals is to ensure that we raise standards. it's not a race to the bottom. we deal with the issues affecting the global economy effectively. and then the third issue is the strategic, the geopolitical part. t.t.p. is rebalancing towards asia. ttip is key part of building an economic relationship to go along with our very strong partnership and military alliances there. but fundamentally it has to be driven by economics. economics and then strategic. >> if you look at the roadblocks that you're facing in asia, in the pacific and then with europe, dairy, pork, rice and in europe, beef, that kind of stuff, it doesn't look like the u.s. agriculture sector is going to get a lot out of these talks just to judge by the progress of the talks, rather the deals, whatever deals are coming. do you think is there some kind of a hail mary, is there some kind of game changer that you got in your pocket as a negotiator that you can -- doesn't look empty from here but you can -- that you can change the nature of the talks in agriculture access or market access? . >> agricultural access will be a part of any market we reach. we've expert over $145 billion. our farmers, our ranchers are globally competitive. see the opportunity to grow incomes in this country very much tied to opening markets and increasing exports around the world. this is a high priority interest of ours. to go back to one of your previous questions, the fact that we don't have an agreement right now is in fact tied to the fact that we are insisting on agricultural access both to japan and for canada, wrote of which we have not had a chance for negotiations. this is an agreement that we feel comfortable selling to the american people. to questions in a minute but i have to ask you about the political mood in germany. edward snowden might look a little bit different posted the crime year-end crisis. imea crisis. there is a political fallout in germany. how much of a problem has that been in sustaining this? >> he european leaders and the trade negotiators have worked to separate the trade negotiations concerns about disclosure. there is ongoing dialogue among the appropriate officials around disclosures and those issues in the trade negotiations have continued along in parallel notwithstanding the disclosures. i think that is the way we are likely to continue. we want to make sure at the end of the day, we talk about data and the free flow of data. we want to take into account issues of privacy is appropriate. as of this moment, european leaders and the trade negotiators have kept separate. >> when you're in the room with your counterpart, do they threaten things like the european playoffs? we hear about the balkanization of the internet as a threat. ?o you get that pitch to to you >> we are talking through those issues probably earlier in the negotiations than in other areas but right now we are working through the issues to see how best we can ensure that we are not putting up unnecessary barriers to trade and immigration, including small and medium-size businesses. at the same time, we can address legitimate privacy concerns. many we havere how time for him a two or three questions. we have the lady here near the front, there is another near the front. >> thank you, paula stern. mr. ambassador, russia became a member of the world trade organization only in the last couple of years. there is discussions about various forms of sanctions on russia including not allowing them to become a member of the oecd, for example. could you let us in on what the ofcussions were in terms their membership in the wto and the geostrategic or economic considering they are such a small economic trading partner , i guess on the level of the netherlands or something like that. now that we have got sanctions topmost on our minds, i would our thinkingwhat was when we finally signed off on their becoming a member of the world trade organization? have you here.to as we know, russia has worked to join the wto for i think 16 years. the theory behind russia joining the wto was that when it came to trade issues and trade policy, being part of the rules-based system and subject to binding dispute settlement isn't necessary to enforce those rules and this would help to address what we knew would be difficult issues as they integrate themselves into the global economy. the process, that was a useful process for talking about a number of policies that they needed to reform to join the wto. has beened and the wto a worthwhile mechanism for getting out those issues and using that as a potential mechanism for addressing them. that does not mean that there will not be differences in our trade relations. this is a mechanism for ensuring there is a process for dealing with that when it arrives. >> we have a question back here. >> thank you. ambassador, good to see you. your comments were well received. can develop if you more on the markets that you did not mention, particularly latin america. given your background in finance, that would be interesting. >> africa is an area of great focus for us, as you may know. the african growth and opportunity act comes up for renewal by december 2015. we launched a review of our experience. we have been consulting with our we want to sees, what has changed in africa. we are working through that process to see what we can do as we renew this to make sure that we're doing everything possible. this is to expand the exports for regional integration and for value added in production as we keep part of the overall development strategy. last summer when the president was in africa he announced our trade africa initiative was a is about supporting regional integration but also trade facilitation. looking at borders that are very will's up totruck customs, waits for long time, goes through customs again. in terms of the engagement. to try anding to reduce those barriers. this is consistent with the wto agreement which made out a whole series of trade facilitation obligations. >> i am a recovering politician, thank you for your noble service. if congress does not do the wise modernizedass haps a tpa and we don't conclude these trade agreements, will america be left behind? >> the short answer is yes. the longer answer is absolutely. we are not the only countries out there. there is a lot of activity going on around the asia-pacific. there i battle idle agreements being signed. bilateralre agreements being signed. they don't focus on labor and environment and intellectual property rights, enterprises, and the free internet. they don't try to raise the bar in a way that levels the playing field for our workers and our firms and creates an opportunity for us to compete in what is the fastest-growing region of the world. an estimatehere is of hundred million middle-class consumers in the asia-pacific. that is expected to balloon to two point 7 billion. us who will serve that market? will it be us or somebody else? our valuesan affect and our interests or someone else's. this is not a static game and we are going to do our best to get the best deal we possibly can but one should always look at what happened if these trade agreements failed because that cannot possibly be in the interest of american workers and american firms. >> one final quick question. >> there is a formula that economists look for gdp growth and when that exports are gdptive, they contribute to growth and when they are negative, they detract. i think we have gotten about $9 trillion of negative exports over the last 20 years so many americans think that our trade policies have detracted from gdp growth and i think that is part of the problem in the trade debate going on right now. the administration set a goal of doubling exports and i think that is positive. imports are increasing faster than exports so the net figure is even more negative. ?hould we set a national goal the former chief economist to the vice president said us that we are focused on the wrong deficit, we should focus on the trade deficit and set a national goal of balance trade. why do we do that and why doesn't the administration put forth as a way to help people become more pro-trade? >> it is a good and complicated question. my understanding is our trade deficit is down about 12% in 2013 vis-à-vis 2012. our trade deficit has been declining. we also need to look at the components of the trade deficit. everybody agrees that exports are good. us on the import side, it is a much more mixed story because a lot of our imports are intermediate products, our imports into things that we manufacture either for our own market or for exports and allows our manufacturing to remain competitive. some imports do displace domestic production and some are critical to american production and help us remain competitive in the global marketplace. when you look at trade liberalization since the postwar , there have been studies done that it has country to did it $9,000 per economic family. a significant portion of that is on reducing costs for the consumer and expanding choice. we need to look at all of these issues. we need to make sure that there are not unfair imports. you have been a big part of that debate, that we're dealing through this with our trade laws or otherwise to make sure that there are things that have not put our imports at a competitive advantage. winning to make sure we're doing everything we can to expand our exports because we know that with every billion dollars of exports, somewhere between 5400 and 5900 jobs in the u.s.. we have more than 13 million people whose jobs are tied to exports and that has gone up 1.6 million in the last five years. our markets are already open. we have a 1.3% tariff. use nontariff barriers as a disguise or a barrier to trade. this our market is open. disproportionally open other markets and we can increase our exports. you look at the history of trade agreements, may be separate from the impact of liberalization generally, we will see a positive story there. want to thank you very much, ambassador. it's >> thank you, and lassiter. next up, we have the former director of the congressional budget office, the former vice .hairman of the federal reserve the former director of the omb and former senior fellow at the brookings institution. derek thompson will be interviewing her today. ambassadorly, the du is very ill and really wanted to be here but cannot make it so we will continue on with senator gregg after this. thank you. >> hi, thanks, everybody. janet yellen first fomc meeting is today. one issue she will have to raise this the so-called evidence rule that says that unemployment rate falling below 1.6% it acts as a rush holt. made before we realize how quickly it is falling. this is falling because the denominator is changing. people leaving the workforce. the recovery is at a state where we want to be dramatically raising rates. if you aren't you're in that you, and a voice, how do shape yellen's understanding of the issue and how do you think she will try to sway this group to think differently about unemployment and raising rates? >> janet yellen doesn't need me to help her understand the labor markets, she understands it for a well. she and her colleagues have been making some of these same points in speeches and even in the fed while.ls for quite a the labor market is complicated, it is right now. the unemployment rate has fallen quite respectably but that is not a good indicator of what good shape we are in in labor markets. we know that a lot of people or have givenut up looking for work. this is a deep and long recession. the particular manifestation has been many more people who have been unemployed for a very long time and some of those people have given up. we have people who are working part-time who would like to work full-time. these are often true in a recession but this is a bad recession and it is been overtaken by the demographics. we have had people taking early retirement or dropping out because there were a lot of people in that age group. generation baby boom reaching retirement. it is complicated. i would expect that the discussion in the fomc today would say a lot of those things and they may even change the statement that they make at the end to put less emphasis on the unemployment rate and more on the other factors. is a huge debate within washington which is the fact that the labor force for dissipation rate them of that season people are working or interested in working are actually working and it has fallen to its lowest rate since the early 1970's. demographics have to play a part. what else is playing a part? >> demographics played a big part but the depth and length of this recession has played a big part with a lot of long-term unemployed. it is overtaken by some structural factors. you always have structural not a shifth is from different injury -- industries. that not a surprising fact we are having fewer people in the labor force. >> one thing you do a lot of work on right now is health care research. the rollout of the affordable somewhathas been disastrous from a pr standpoint. if you look at the democrats antunes in november, this is enormous albatross around their neck. what did the metrics that you are looking at in the next few months to determine whether or not obama care is succeeding or failing on its own merits, not just on the politics of the law? >> well, the technical glitches were extremely unfortunate. thatshocked and saddened this happened although it should not surprise anybody. anybody who has dealt with putting a big new system in no said it is really hard it does not work the first time. you need to test it a lot, they did not do that. i did not know why. has the question is website recovered? the answer to that is yes. the numbers are up, 5 million people enrolled. what we will watch over is how fast months do those numbers go up, particularly in the next couple of weeks. what happens after that. theeople actually get insurance that they thought they bought or will there be more glitches? we are doing a complicated thing and we are doing it intentionally. a lot of people said, we should have blown up the whole system, started over. this we didn't. we have a very complicated ,ystem of medicare, medicaid and employer insurance and we were filling in the last cap. it is much harder to patch a system than to start over. that is what we are doing. thene of the findings of cbo report on obamacare was that it would reduce the amount of work done in the u.s. economy. this was misinterpreted by some people as saying that it would kill all of these jobs. that had jobs would work less or choose to give up their work because their health care would no longer be tied to the employer. this is a good thing or a bad thing? >> many of us over the years pointed out as a reason for having a different kind of health care that would cover the uninsured that there were significant number of people that were stuck in jobs because they needed the health care and they might have a spouse or a child that had high health care costs and they could not leave their jobs because they would lose their health care and they could not get more because there was a pre-existing condition. the affordable care act has changed that. no more concerned about pre-existing conditions and you can go to the exchange and find iflth care and get a subsidy you have low income, so it is not surprising that some of give up thoseill jobs. >> on the one hand, the long-term demographics and recession driven decline has forced the precipitation rate -- participation rate. the number of hours less work because of obamacare, do you have a worry that when you add these things together that there are not enough americans working to pay for the entitlements we promised ourselves? >> not because of obamacare but what we are seeing is what we knew what was coming, the baby boom generation is retiring. known about have these people since 1946. 's so, we should not be surprised that we have a large generation of retirees and the people of living longer. this is putting upward pressure on social security and on medicare and we know that. we got to see what we want to do about it. crisis not a terrible but it is a long-run problem that we have to face. the easy part is fixing social security. that should be done quickly because the longer you wait, the harder it is. we should have a bipartisan group. they would have to compromise. compromise is not a dirty word. we now think of it as something terrible. it means you don't have principles if you compromise. that is nonsense. we all have to have principles and we have to think how do we solve problems and get something done? social security is a good example of that. nobody serious wants to kill it. it is a very good program that has served a lot of people well. fixing it is not very hard. >> this touches more than social security, we talked a little bit immigration. why are you more optimistic about this impossible government coming to a solution on this? this was an example of something that we were not fixing because we are so polarized and everyone agrees that we ought to. some years ago, people with very good intentions decided that we needed a formula for changing position payments under medicare it they devised one and tied to the growth of gdp. then when gdp did not grow as fast as they thought it would, it meant that the doctors would be getting less and so they said, we don't want to do that. so, they postponed it and they kept postponing it and they kept postponing it. the way the law was written is that it is humility. right now if we did what the law law. current -- the way that the law is written is cumulative. this is not going to happen, it should not happen. the fees are not that high anyway. bipartisan compromise. they work hard, they can compromise this together to make a permanent fix to this. it is quite sensible. this has gotten caught in the polarized politics. a certain party says that we will not consider this unless you postpone obamacare. >> you're not talking about the democrats. it does not matter. there is intransigence on both sides. this is an example of something that reasonable people want to do and cannot do it because we are in this politics. >> there are two solutions to that have been rolled out. the other is the earned income tax credit. which of these are the better policy and why? >> i would do both. we have not raised the minimum wage in a long time and raising the minimum wage would help that a lot of people. i'm stuck with that. thinkists like to efficient ways of doing things. the earned income tax credit which is basically a wage supplement for people who are working at particular wages. is a more efficient way to do it. so, i would do both. would increase the earned income tax credit and it discriminates against people that don't have children. it is nice to have children but it is not clear why this -- >> this would raise the earned income tax credit for people without children. >> that is why it is a more targeted thing to do than a minimum wage. alexis was founded in a republican administration and has been raised by both democrats and republicans. what are the odds? >> a don't know exactly but it is another example of my theme which is if you have bipartisan support for something, do it and stop worrying about where the blame falls. hereover norquist was up and he has a theory. we used have people that want to expand government a little bit and they compromise with people that wanted to do this by a lot. it doesn't have to be similar. weyou have a theory for why are in such a terrible moment of polarization in washington today ? >> i don't have a theory, i think a lot of things have happened. part of it is our primary system .hich pulls people to the right that is exacerbated by the way congressional districts are drawn. that is not the whole story. the senate is polarized. is for the districts. our political leadership has gotten out of touch. if you get a group of average citizens, a representative group of citizens around the table and give them a problem, whatever it is, what should we do about the deficit, what should we do about immigration, they will sit there and talk about it and then they will cut deals. if they know they have to have a solution, they can find one. i just wish that our congress was behaving that way but it is not. nown the dead, right because of deficit fell so quickly between 2010 and 2013 and it is still falling, the debt as a long-term issue has stopped casting such a long shadow on these politics. do you think that we should be thinking more right now about our long-term debt or are the problems that we are facing in the labor market, the upfront problems important enough that they should be on the front burner and we should deal with this after? >> is not a choice. we have lots of burners. i like to think of the budget situation in comparison to what it look like in 2010. with on some symbols along judd gregg. time, remember, the recovery was just beginning. we weren't sure it was going to take hold strongly. the deficit was very high. the stimulus was spending out. it has come down very rapidly. but we also lo a
>> we got a check of the big board but there is not much going on. pretty much the same story with the s&p 500 this friday morning, $18 and scsi $0.09 is where we are, not long ago we ran 1900. billionaires' buying and selling. star with berkshire hathaway buying the stake in verizon, a levon million shares. let's put verizon up 2-1/2%. david tepper bais facebook, price line and expedia and more google. not much impact and just release the government is going to find general motors $35 million over the ignition recall. gm admits it did not notify the fed's of safety problems quickly enough. look at the stock, it is going. david einhorn and leon cooperman, they have gotten out of their gm holdings. look at charles's pick, charles payne's pick. j.c. penney not bad, a 15% gain reported strong sales. it is brimming over with this and he is here. you got on the set earlier today because of this. you are vindicated. charles: i'm in the process of being vindicated. i think people should hold on. it is a 30% short position. they are pounding this thing, over $10 in the after market. jpmorgan says we have a target of 5 and we go to 9. the target is a-5 and. a bang goes to 10 for 6. and anything halfway nice was oppenheimer. they made a bet on this company going out of business and sticking to it but i think they're turning around. by the way dillard and nordstrom also a big today. stuart: we are going to do that right now. don't interrupt the flow. profits are indeed up nicely at nordstrom, lauren at the exchange, are you going to tell me how big the stock is? >> reporter: say off my stock. is up big time, almost 11%. it took out a new high, that level is $69.10. the earnings report was really good, same-store sales, of the -- at nordstrom, discount line at nordstrom, also have solid sales from the online department, but so many retailers blame the weather. and this is the winner today. stuart: thanks very much, we will be back to you quickly. look at the dow, this is pretty much flat. so much for our use of the new $17,000 graphic on the dow. let me make certain. charles, come back in again. another big kahuna nervous about the stock market, ralph is not a big investor but one of the big gurus of this world. if i'm not mistaken didn't he said the nasdaq is going to go down 25% this year? charles: he said it was a lot, 15%, 15% to 25%. this is the easiest call in the world. i got in an elevator and someone asked when is the class coming? we should be hearing any minute now if you want to be a do and be registered as a great guru jump on this down wagon. is bound to happen. it is and five years. listen. like i always say crashes come periodically but looking longer-term if it does happen today, if it happens tomorrow, you have to be an investor in the stock market and unfortunately what i feel like is millions of people missed the rally because of this. that is what bothers me the most. of the stock when 20 to 30 and goes down to 20 to 40 and goes up 5 points or whatever, in other words if you were in it the old time taking the hiccup in here and there wouldn't be bad. stuart: that wrapped up stock market coverage for the first five minutes of the show. we have a new survey of millennial voters, 20 somethings. this shows only 30% of those who voted for obama in 2012 plan to vote for democrats this year. only 30%. what turned them off? that is a huge shift. that is the question. what turned them off? >> it is huge and obviously the nsa scandal is where we saw a marked downturn in the president's polls and trust in the president we saw in the harvard poll has gone down 7% in one year. that is huge, 32% trust the president. that is a huge cataclysmic shift inside, we believe it is the nsa scandal that was the linchpin turning moment coupled with the obamacare website failure, the irs scandal, you name it. stuart: however millennials i did say young people in general, in midterm elections don't turn out in droves. odds are also the president's party lost that constituency as a big boost, it is not such a big boost for republicans. that is how i am reading it. >> exactly right. millennials will stay at home now but what is interesting is democrats will tell you the reason turnout is solo is this is a traditional midterm low turnout but it is a lot more than that because really revealing poll came out of the weekly standard, leaning democratic, used to be 62% of millennials leaning democratic at the beginning of 2013, now that is 54% leaning democratic so that is a point drop in the year so i think this is more than midterm turn out. is a shift away from democrats. stuart: you are not one of those millennials that wants to legalize marijuana and stop the nsa jeting people out if they might be terrorists. you are not on that side of the millennial fence. >> i am not but i am in the minority. i recognize that and many millennials nsa is a huge but i don't think by the way marijuana is a turning point for millennials, but nsa is but i'm in the minority is to point out. stuart: what about social issues to the war on women? whatever you want to make of that, game marriage, abortion, that kind of thing. how does that feature this time around? >> republicans would be wise to back away from those issues. is something we obscene rand paul inch away from. he is not talking about abortion and gay marriage. those are now winning front-line issues for millennials however on the issue of abortion millennial farm more pro-life than the prior generations so that may be room for the republican party to come in and launch that issue. stuart: who is the millennial's pick for republican candidate? des cross-section of millennials, got to be rand paul. >> certainly rand paul. rand paul is the one making an effort and you and i talked about this, up to republicans to court millennials, rand paul has done that in due will be fruitful for him. stuart: we love having you on the show. you are our millenial barometer if you like and we want to see a lot of you before november. are you coming to new york soon? >> i will be very weak. stuart: you are on. you will be right here, thanks, see you soon. take that, socialism. india's election commission is projecting a huge victory for the pro-business candidate and his party. this was the biggest free election ever held and the party of private enterprise was elected to get the economy going again. i don't care where this happened, the fact that such a refuge countries taking the shift towards market-oriented policies, private enterprise to me is used. before i love it. i have been writing about this. i have a piece on my homepage i want people to read it. i have been talking about this for a long time. are recommended the big debate in september on the show up 63%. this guy is no joke. here's what critics are calling it. hindu chauvinism, they are saying it is all for a patriotism, the kind of thing that creates nazism and that kind of stuff but here is a guy saying i believe in free markets, we are going to get rid of this cronyism, you had the same family ruled this country for 40 years and handful of people were billionaires', talk about income inequality, there's one guy with a house that is 60 stories tall, his private residence 60 stories tall casting a shadow on shanties with ten recently completed on income inequality. stuart: he will introduce private companies into the oil and gas business within india. the old line gundy group the congress party, socialist gone. defeated. he has won such a big majority he does not need a coalition. charles: a couple years ago they went on to big boxmakers, the same complaints you here at walmart, putting small people out of business. what happened this food inflation through the roof, and in price in india went through the roof because you don't have a supply chain. great to help but when you pay twice as much for an onion than you normally would, no more statements, we will cut that down. no more subsidies for fuel, we are going to create jobs and make it work. we will do the infrastructure thing but the bottom line is free market and that one of the five people making all the money. i love this guy and not just india, indonesia, and i love him, check that out, and people just talk about japan as printing money, he is a lot more than that and we are venturing towards nationalism that scares people and an internal strip. we need that in america. stuart: see what we bring you friday morning? charles payne fired up about private enterprise. stuart: the tea party won this week. charles: this was the biggest win for the tea party. wasn't in this country. stuart: you saved the best line till last. almost out of time that 30 seconds, the other headlines get them to you. technology first, comcast may impose data limits on its internet customers. if you stream netflix all day long you could end up paying even more on top of your standard subscription fee. next item take two interactive grand theft auto video game franchise wildly successful. now the game is available on amazon's tv streaming device for $5 a pop. speaking of gamers, sony's play station 4 the top-selling consul, sold 7 million units since its launch in november. guber valued at $10 billion, the online bulletin board website i pinterest in concentrating wealth, doesn't employ many people we discuss it and those trade evaluations next. really... so our business can be on at&t's network for $175 dollars a month? yup. all five of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? 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[ male announcer ] see if your business qualifies. stuart: three points higher and i called this dead flat. look at true car, brand new idea allowed just open the couple minutes ago, online resources you want to buy a car, get pricing information, by a car through a dealer affiliated with this website. they price it kind of low because it is up 13% in the first few minutes of business. the ceo coming on fox business and 4:00 p.m. this afternoon. the price of gold hardly changed, where is the price of oil this friday morning, $102 a barrel. charles has a new different companies says, get into a and you will make some money. kansas city. charles: i haven't done it. stuart: it is a railroad. charles: our railroad that has been hit, they were brilliant. i love the stock for 20 years, i own a big railroad in panama, the new canal will be built, an amazing thing and the mexican election, and the new president says there is a monopoly and there is a monopoly. stuart: what do you mean the new canal? there's a new canal? charles: is going to be revolutionary. it is amazing. stuart: i didn't know that. charles: is going to be amazing. the amount of commerce that will flow through their these guys are perfectly positioned for that. stuart: for a guy in the news business got to be high end. did you know that? did you know there is a new panama canal being built? charles: is going to be amazing. it should be done next year. absolutely amazing. google the skyline of panama city. will blow you away. i would be nervous buying property in miami. a lot of that money will start sobbing in panama. i don't think the mexican government will hurt this that much. and everything, grains, boxes, $200. stuart: new panama canal. kansas city had does it well. let's move on. two companies we talk about with multibillion-dollar evaluation. let's start with the taxi apps, money raising operation, $10 billion. then we describe this as an online bulletin board. weird doing down with that but it is $5 billion. this ceo ted murphy, things like theinterests. i want to show our viewers something. this was posted by our producer's wife on pinterest. it is cupcakes. >> everybody loves cupcakes. stuart: and posted with it was a link to those cupcakes. that web site is worth $5 billion. are you kidding me? >> this evaluation really demonstrates how web is progressing. sink to the early days of google everything was text based. if you think of all the big valuations now it is heavily weighted on the visual web. and people are taking photos and you are able to discover things and it is all about short form content. whether it is short videos online and short videos on instagram people's attention span does not allow them to consume that content any more. stuart: i can see the finished product and make an instant judgments. i don't have to read through paragraphs of text or commercials. i like the look of those things. click on the link and i am done. >> i don't think of this as a message board. think of it as a visual search engine. if i take in cupcakes hopefully what bubbles to the top is the best possible recipe, the best photography and that will all be determined by the crowd. they will say that is great. i will share this. i will pin this and that is what bubbles to the top. stuart: that is worth $5 billion. >> it is very early. they started allowing advertising three days ago. these guys raised a ton of money getting to this point. they just now started introducing modernization whether it is $5 billion, we need to wait a couple of years. stuart: a taxi apps, call up a bunch of independent taxi drivers and they bid on the best price. >> the u.s. taxing market is $6 billion for the entire industry. $9 billion in europe. what is important to understand is it is not just about taxes. i believe taxis and limousines what they are doing is the gateway to the future. in the future, i include things like delivery services, if they could compete with air b&b they have people who love that platform and have credit card information that is easy to use so you will see it for sourcing all sorts of things. charles: what is amazing with both these companies, government intervention and disruptive technology to protect the status quo, is really scary stuff. guber is preventing cities from going business, tesla, the division thing, air b&b, attorney general of new york, this is disruptive technology thattimately lessen the power of hotels. i know some cabbies to spend a lot of money on their medallions that this is the way it is going. stuart: with $5 billion, $10 billion, that tells you that the government is not going to be able to. >> this is all so -- part of it is creating a war chest. they have to fight these battles. it will take some time to see the success and scale and got to have the money to persevere. stuart: you are the ceo and you work in this arena. >> social media all day long. stuart: what is the evaluation of isea. >> it is publicly traded. i have a nice little piece. stuart: i won't ask the question. said murphy, it is a pleasure. costs of a wedding straight through the roof. $29,000 on average across the country. more than $80,000 on average in new york city. that caused a stir on our face book and twitter pages. we will bring you that stir after this. america's newest real estate brand is all ready the brand of the year. berkshire hathaway home services. good to know. when folks think about wthey think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we wi up it yet again. stuart: they have to pay. that was john stossel on the cost of a wedding these days. $29,000 nationally. we asked you what you thought about paying that kind of money. i think it is a personal choice. katie adds, if the bride wants to be a fairytale princess, it is on them. i get that. james adds, shunted the man get an expensive engagement ring also? why is it the man the only one to fork out the dough? personally, i have no problem with the romance and tradition. thank you for all of your comments. wwe wrestling stays on nbc's for the foreseeable future. one firm does not think that is a good idea. wwe down 42%. darden is selling the red lobster chain. they are paying more than $2 billion in cash. darden is down 3%. the wildfires in southern california, they are still there. firefighters still there trying to stop it from spreading. of course $20 million worth of damage thus far. they have arrested two teenagers after they allegedly tried to start to brush fires. the drought in california has led to the speed at which these fires spread. a report shows that california is suffering a moderate drought. order a computer online. the nsa intersects it before it is delivered. there is a tracking device on it. there is no knowledge that it has been tampered with. we will bring you the full story on this in just a moment. ♪ every breath you take local every movement you make a local every step you take local i will be watching you both go. ♪ ♪ [ male announcer ] since we began, mercedes-benz has pioneered many breakthroughs. ♪ breakthroughs in design... breakthroughs in safety... in engineering... and technology. and now our latest crtion breaks one more barrier. presenting the cla. starting at $29,900. ♪ so ally bank has a,900. that wothat's correct.a rate. cause i'm really nervous about getting trapped. why's that? uh, mark? go get help! i have my reasons. look, you don't have to feel trapped with our raise your rate cd. if our rate on this cd goes up, yours can too. oh that sounds nice. don't feel trapped with the ally raise your rate cd. ally bank. your money needs an ally. ♪ stuart: i confidently predict that we will not hit 17,000 on the dow today. thus far this friday morning, we are pretty much flat. jcpenney up very nicely. reported much much better. they have rack space. i think this is one of those companies that stores stuff for you up there in the cloud. i think it is up again. >> it is a cloud company. up to date more than 20%. they have hired morgan stanley to evaluate options which include the sale of the company. rack space is facing competition from the smaller companies. also ibm and microsoft. if you look at them on a 52 week basis, they are down again. stocks overall are struggling. stuart: the cloud idea is catching them big. the nsa reportedly intercepts packages to plant bugs. joining us now from washington is not kirby. >> i am a libertarian. i believe in individual freedom. stuart: i want to find out what is going on with this interception. >> it is an expansion of what they have already done with our phones. they are collecting all of our phone data. the pfizer courts do not let their decisions be available to the public. stuart: a security court. are they intercepted with the full knowledge of the shipper? >> that is another question we do not know the answer to. this has been the problem all along. it is not at all clear who is in charge of this. i do not think it is constitutional at all. you oppose it, obviously. stuart: the counter argument, if you want to get all the terrorist before they terrorize us all, this kind of thing is okay. what is your argument? >> this kind of behavior is not authorized by the patriot act. if they want to target people that are suspected of wrongdoing, they should get a warrant. there should not be a general warrant. that is precisely what the american revolution was about. you have to control your property and your privacy. this is what they are violating today. stuart: would you be happy if there was a specific warrant, even if it was issued secretly. >> i think justin mosh, the congressman from michigan, more affability and advocate in these secret courts that we speak of for the individual, not just the government. we do not need to target people before they had even been suspected of committing a crime. stuart: if there is suspicion of some sort and presumably the court would listen to that suspicion and to say, okay, you can intercept this computer and you can plant your bug -- what i am trying to get at is, surely, there is a legitimate framework that would allow our intelligent services to keep tallies on people who very well may be a serious threat to america. >> i think so. this blanket in discriminative targeting of everybody undermines the real cause of catching really bad act theirs. it is very dangerous to give a secret court and faceless bureaucrats within the nsa this broad, discretionary authority to go after who they want. they do abuse power. people abuse power when they get a blank check. stuart: president obama was opposed to this before he was elected. now he is in power and i think he wants to keep it. >> he does not seem terribly concerned. they just filed a motion to dismiss our fourth amendment to the challenge and nsa. it says that you have to have a warrant. you have to have probable cause. they do not seem worried about that. if i believe in big government, i would want to hold it more accountable. that trust is so essential. stuart: very important stuff. we appreciate you bringing it to us today. thank you very much, indeed. regulators opened up open up the door to controlling the internet. big companies like netflix. they may have to pay more to stream content through your tv. online videos. >> what do you think will happen? will it go down bush remarks will they go up? double. >> i have no idea. ♪ [ tis screech ] chewley's finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market befo you get sck. get the most extensive charting wherever you are with the mobile trader app from td ameritrade. wherever you are with the mobile trader app if ...hey breathing's hard... knowhe feeling? copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. does breathing with copd weigh you down? don't wait to ask your doctor about spiriva. stuart: started restaurants have agreed to sell its red lobster chain. guess what, they are paying $2.1 billion in cash after transaction and cash fees. darden stock is down. look at that. darden also runs all of garden, longhorn steakhouse. a holding company for approximately $2.9 billion. i don't have a clue what that means. somebody tell me, please. apple will also conduct -- do not worry, folks.e it is friday. ♪ along with support, chantix (varenicline) is proven to help people quit smoking. chantix reduced the urge for me to smoke. it actually caught me by surprise. some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. if you notice any of these, stop chantix and call your doctor right away. tell your doctor about any history of mental health problems, which could get worse while taking chantix. don't take chantix if you've had a serious allergic or skin reaction to it. if you develop these, stop chantix and see your doctor right away as some could be life threatening. tell your doctor if you have a history of heart or blood vessel problems, or if you develop new worse symptoms. get medical help right away if you have symptoms of a heart attack or stroke. use caution when driving or operating machinery. common side effects include nausea, trouble sleeping and unusual dreams. i did not know what it was like to be a non-smoker. but i do now. ask your doctor if chantix is right forou. how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going havto rethink this thing. it's hard to imagin how much we'll need for a retirement that could last 3years or mor so maybe we need to approach things dferently, if we want to be ready for a longer retirement. ♪ ♪ stuart: look at this. double digit gains for home construction. that is fantastic news. cheryl casone, why do you have a rather sour look on your face? cheryl: i am trying to smile through what i think is a bad part of this story. rental units, people are not buying. they are renting. they got hammered after the building center that yesterday that was so negative. it is a little bit of a hangover from the winter. we actually had a horrible winter. when you start the excavation of the land. when the ground is broken. you cannot do that when it is 5 degrees outside and there are inches of snow that you cannot get your construction equipment through. stuart: a tiny bit of a rebound. cheryl: multi family. investors are smart. they are building apartment buildings. nobody wants to buy. they want to rent. stuart: thank you, cheryl. the sec is moving to control the internet. it could mean that companies like netflix would have to pay more to stream stuff to you quickly. what happened to the little guys that do not have that kind of money? do i have the pronunciation right? >> it is based on truth. stuart: pronunciation is very important. you make videos. you put them on youtube. that is how you make money. if netflix has the money to buy faster speed delivery, does that hurt you and your line of business on youtube? >> i think that it may hurt me. what is more likely is youtube will have to pay as well. the bigger potential loser here is the new start ups in the technology industry that just wants to reach customers and not the highest speed available. stuart: you will not have a problem, will you? do you have a problem with speed? >> i do not expect that to be a problem. i do not think i will have a problem. i think the people that will have a problem are the people trying to break into the internet industry. the system is a total level playing field. any data on the internet has been treated like any other. trying to force the big companies to pay more to get the customers in an efficient way. stuart: you put out short videos. are they demonstration products, how to products? >> i do a lot of different things. demonstrations, interviews with people on the street, interviews with nobel prize winners, etc. stuart: you get paid per view? >> that is exactly what happens. you can split the ad revenue between them and your self. you know those annoying apps that were here before the youtube videos. that is how i make a living. it does help me create more content. stuart: could i do this? could i go out there and make a video, how to invest in the stock market, sell it to youtube and the viewer? >> you could. you do not actually have to sell it to you. you are not actually giving up any rights. you are using youtube as your distribution platform and they are paying money because it is popular. i have accumulated about 78 million views now. stuart: how many videos have you put out in three and a half years? >> a bit over 180. stuart: what is your best seller? >> a video about the roundest object in the world. the most perfect sphere. it is made out of a particular kind of add-on. it is to re-create a kilogram. stuart: that was your best seller. could you tell me how much money you made on the perfect circle? >> on the perfect sphere? stuart: yes. >> between 10 and $20,000. >> that one was a particularly big winner. you do not make that on most of your videos. stuart: in three and a half -- >> your biggest videos span 100 times better than your worst videos. on average, you may get a few hundred dollars. stuart: very good. i am tempted to dip my toe in the water. it was a pleasure. come and see us again. we want to hear more about this. thank you. >> absolutely. thank you. stuart: the market is dead flat. i will call out that. we have "new york times" executive candidate fired. was her ousting really about politics or demeanor? ♪ memorial day weekend? looks like fun. but what about this? if you're looking to buy a car, now is the time and truecar is the way. just go to truecar.com to lock in guaranteed savings... without negotiation. thank you! hay memorial day weekend! the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional developmt strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. is all ready the brand ofstate to disthe year.dnew new york. berkshire hathaway home services. good to know. stuart: the executive editor for the "new york times" was fired this week. she was kind of difficult to work and the newsroom with. after the firing, we hear, that she was upset also about her pay. she says it was less than that of her predecessor. tom sullivan is here. he says that there is another reason why she was fired in the first place. >> we talk about benghazi, the scandal there. we still talk about the irs scandal. the scandal we forget about is the obama administration going after the media, going after our colleague james rosen. that thing has been swept under the rug. nobody is talking about that scandal anymore. the media is not talking about the scandal anymore. she said the obama years are a benchmark for a new level of secrecy and control. she said sources will come forward with stories they feel are important. in that, to me is what happens. she went over the line. if you have and you want to control that, you do want the "new york times," they are the newspaper of record for your base. this group over here is a bad apple. that is exactly what she said. jason, from washington, d.c., he is an insider. that is the secret buzz going on. jill abrams said you cannot have this. stuart: she waited a couple of months. >> there is no other answer here. nothing else makes sense. this thing about the pay is so bogus. it is like she got her job from the help wanted ad. no. you negotiate your salary. stuart: you could interpret it as a conspiracy theory. jason in d.c. called your radio show. you picked it up very well. tom sullivan, everybody. the irs targeting scandal. the orders came from washington. a u.s. senator urged the irs to target themselves. plus, i will pass judgment on five years of president obama's all government all the time. ♪ d i have copd, but i don't want my breathing problems to get in the way my volunteering. that's why i asked my doctor about b-r-e-o. on-daily breo ellipta helps increase airflow from the lungs for a full 24 hours. and breo helps reduce symptom flare-ups that last several days and require oral steroids, antibiotics, or hospital stay. breo is not for asthma. breoontains a type of medicine that increases risk of death in people with asthma. it is not known if this risk is increased in copd. breo won't replace rescue inhalers for sudden copd symptoms and should not be used more than once a day. breo may increase your risk of pneumonia, thrush, osteoporosis, and some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking breo. ask your doctor about b-r-e-o for copd. first prescription free at mybreo.com this is our second hour. the irs targeted conservatives in the middle of a presidential election. new internet company is worth billions. is it a bubble? the fight over negative reviews online. and judgment on five years of all governments all the time. is the failure. all right, let's be honest. it is dead flat friday. gain of three points on a 16,000 index, says to me it is flat but look at the yields of the ten year treasury, benchmark for interest rates, 2.5%, weighed down over the past week, that is big news, i have a big name, j.c. penney reported strong sales. if you listen to charles payne he would have bought this thing. nordstrom, strong profits, brick and mortar. those were of stocks. world wrestling, w w e down huge this morning, you got to tell me what is going on. >> look at that. almost half of the value being wiped out from the stocks of the number on that, $700 million of market value. did reach a deal with nbc university delays universal to keep monday night law and friday night's smacked down. those are tremendous viewers, 38 million people watched this year but the terms of the deal were not pleasing to shareholders. stock is big time, and visibility in this. the online video channel in february, people are not optimistic. stuart: after the stock, down by 40%. thanks very much. the billionaires' are buying and selling and going public with what they have been doing. warren berkshire hathaway, a bigger stake and the stock is up 2.5%. david tepper has bought facebook, price line and expedia and added to his stake in google. stocks are down, tepper's statements are not having an effect. david einhorn and leon cooperman have gotten out of their stake in general motors. longtime bull says he is nervous about stocks. he says there is a big sell-off coming. first, we have tepper yesterday saying he is nervous about stocks. what does scott say? >> considering last year we were up 30% and a lot of the things we are talking about, the rustle around 10% this year, i think it is okay and could be healthy to come up over time and suddenly you wake up and 50% figuring out the market but it won't be a crash and let's stop trouble here. if you look at a defensive stand go ahead but we can prove overtime that if you try to do-it-yourself you sell the lows and by a highs. so why would they take a little defensive stand if you want to listen to those people. even david tepper said don't be too long. warren buffett has not said the same thing. take a little stance if that is what you feel like but if you leave it up to yourself, you -- you will sell land by high, just don't borrow trouble. stuart: i understand, thanks very much. see you next week. two companies we talk about frequently, they have multibillion dollar valuations. is it for real? the taxi apps has a funding operation going on. that operation values that can billion dollars. this is a taxi apps and p interest started at $5 billion. fox and friends post clean morris, the tech guru is with us now. i want to focus on pinterest which we describe as an online bulletin board and a guest said their pretty good because they bring you a visual. a visual comes at you. like we are going to show a picture in a second worth $5 billion. >> i'm a little surprised is that low. it might seem shocking but these are the evaluations we have seen from what's app and some of the other companies like snap chat. here is an institution that everyone in the neighborhood is using to plan birthday parties. their entire birthday party was planned on theinterest. stuart: our producer's wife put these cupcakes on theinterest and people look at that graphic and have a link to a menu as to how to make it. this is where $5 billion? >> if you are bridal store in downtown community and not on peakinterest you are leaving thousands of dollars on the table because it is bridal season, planning their entire wedding on peteinterest from table designs to curtains to bans to the layout, dresses and when you tie into a local bridal community that link goes right to the individuals for. i have a photographer who is one of the best photographers in the world is said the majority of prints he sells come through pinterest that he has a million followers, one of the leading people, so many people see his beautiful photograph click through and purchase. stuart: attacks the apps, a big disruptive. >> in san francisco and 2:00 in the morning i have been out doing live shots you cannot find a cab to save your life but since it launched there are now cabs in hotels because it is the disruption. is a place where the four was terrible. if i was in philadelphia and wanted to call a cab to go to the airport e-mail may not have the cab show up at your door. there was no incentive for them to be -- provide value to their customers. buber comes along, the cab driver, you know they are on time and have a clean fresh selling cab fare and they're going to be there when they say you are and i can vote them aboard down as a user. is a disruptive and cab companies have to respond. they are furious about it. stuart: it is worth more than staples or best buy. >> staples last night, no joke, i was in stable last leg, you could see a tumbleweed rolling through. who is in there buying overpriced stables anymore and staplers? stuart: i am not sold on this but you have gone all little way toward convincing me they're worth billions of dollars. >> i will take that as a small victory. stuart: thanks very much. pfizer stock has been halting. news pending, don't know what that news is. i have not seen that broken yet but it is unusual when you get a stock of this size to be halted like this. remember please it is in talks, trying to talk to astrazeneca about not $100 billion merger. maybe the toxin gone somewhere. the stock price, i have a cough, general motors, look at this. the announcement from the department of transportation, gm agreed to pay $35 million for delays in reporting the ignition switch problem, that led to 13 deaths. not a buried big fine by any means, it is and stable at 35. rich edson is in washington with more on this. i am looking at this as bad p.r. for general motors and not much more. >> $35 million, if you look at the way it is set up, bad news for them every few weeks because there are congressional investigations, and regulators looking into it, and agreed to a situation with gm and a lot more money, a steady stream of negative news. how much does it hurt the company, look at the sales from last month they were out 7% year over year, gm is making the argument, guilty of false this. technically that is right but a lot of the same people working at the company from the last decade as there are now land as it stands, there with the rest of the auto industry doing fairly well since this mess came out. stuart: bad pr is what it is. rich edson, thank you very much. we previously brought you the story of people blackmailing hotels with the threat of writing a bad review. we will give you a bad review, an upgrade or free breakfast or something. the man with us who hopes to have found a way around this problem of negative reviews and recurring negative reviews. travels to have senior editor. let me straighten this out. travel zoo, go on line and find you. >> i've put them on the site, and different products. stuart: when you are setting deals. and the travel industry and hotel lodging, negative reviews. and the blackmailing of hotels. the you have a way around that? >> personal reviews are very relevant. and heavily dependent on just user reviews with a grain of salt. we have been around, i year-and-a-half, by voucher deals. and the purchasing deals on that vacation. then we allow you to write a review, good or bad and posted it, we will actually posted. stuart: the key point is you have to have purchased the deal and used the dealings you can write a review good, bad or otherwise. stuart: it is fair to the consumers. >> it is a legitimate way of analyzing the deal we put out there and having the consumer test it. it is fair to the properties as well. our favorable reviews in 2014, 91%. why such a high number? yes the heavy hand on the front end. we researched them and a chicago office in london office literally 9-5 monday through friday people booking these deals so we are read flagging issues. going back to our partners in hotels and airlines and vacation companies, having them fix them, we are minimizing out of the gate issues that might pop up and 9% of issues that we can tackle and actually connect clients with these bad reviews in an effort to see if we can fix it. stuart: is it travel.com. i am going to london, give me a deal. with deals that you got? you pop up those deals too? you have gone through those deals. >> on air fare a bit more volatile, happening on a daily basis. some are london fares in new york and 1500, they are up this summer because of demand. vacation packages and entertainment deals, we have not only feted them and researched them but we are spending as employees our hard-earned dollars going on these vacation ourselves coming back and writing internal reviews. stuart: when you got to go out and take these vacation packages. stuart: it means you are working on the weekends. guarantees the quality of the products, 7 million subscribers worldwide because of the fact that we are finicky about the quality of the product. of the one with travel.com. we are following a breaking story. pfizer's stock, shares have been halted. we are waiting to hear why. we will have a report from the stock exchange coming up, pfizer has it. what is worth more? this norman rockwell painting or fox and friends host of brian kilmeade, world renowned author, both are here on set after this break. 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(anncr vo) that's health in numbers. unitedhealthcare. stuart: following breaking news on pfizer, stock is halted and now we know why. is not because of the merger talks with astrazeneca but a drug, news on a drug. what is that news? >> right where pfizer trades, the stock should be halted for three more minutes. two more minutes at this point. we halt it at 1204. pfizer submitted a new drug application with the fda and that is expected to happen in the third quarter of this year. stuart: we have a banner across the bottom of the screen that says the new breast cancer drug has not been approved in any market. i take that as a significant negative. stuart: has not been approved in any market. stuart: we will bring it to you when it comes back to trading again. stuart: totally different subject. donald sterling is fighting back against the nba's fine for those racist remarks. the nba executive vice president claims he did not violate the nba's constitution. brian kilmeade is with us right now. this is a huge problem. >> on another network, viewed an alleged him that donald sterling actually went to on a regular basis to prove he is not racist but most of the women he requested were african-american. he goes on and gives an embarrassing three pars interview to can maker, anderson cooper at which time he apologized that he was wrong, don't penalize me for one mistake and we like to find and find not only has he not given up the team more written the $2.5 billion check. stuart: lebron james as i understand it, at the start of next season they will do a walkout if he is still running the clippers. that is the huge pr nightmare. >> contractually i don't think anybody wants to play in the clippers so why not come to die in the heat, doc rivers, one of the most and of guys in the league says i am out even though he's the executive. the team might say i am not playing. this is unprecedented. i understand it going to the nba is a vote the board of governors which are the owners and they can kick the franchise, liquidated, not to take his money but take a franchise. like anything else is not food. stuart: he is a rich guy, he will lawyer up. they will hold it up forever. if you wants to eat and do that. >> his wife brought a good point. if i own this, if mark cuban or another owner had the team and their wife said something that was not right would they take the team way? most likely not. she says i'm a 50% owner in the team and getting divorced from ciskei. why can't i get 50%? he has said as much today, don't let my wife paid a price for my dumb comment. stuart: that is a mess. >> the clippers are out and focusing off the field. don't get mad at me. i am just telling you the story. stuart: i am not mad. >> you look a little mad. stuart: once you are on this that i can't get you off this set. you were with us 45 minutes. >> i guess not with that attitude. i could storm out of here if i knew where the door was. stuart: as pfizer reopened? >> it has resumed trading.% stuart: we are told their breast cancer drug has not been approved in a market. it has resumed trading i imagine with that kind of news was going to go down. it is not. it is up $0.30. is that accurate? i got that one wrong. not approved in any market, breast cancer drug and the stock goes up a little bit when it resumes trading. we will have more on this in a moment. something completely different, brian kilmeade is still here. tuesday night, big night for chris christie's auction house, and $45 million of contemporary art in one night, the highest total forcing locks never. here is doug wouldam, he has brought with him, this is not contemporary. >> american. what could be more american. stuart: that is the rookie by norman rockwell. you are auctioning this off. >> on thursday night. and iconic painting that combines baseball and norman rockwell. can't be more american than that. stuart: 20 to $30 million, norman rockwell classic. just the other night you sold a picture of two boxes, one black, one white. i am very sorry, $85 million. would you pay $20 million or $30 million for that one? >> i didn't know i was still on. what i pay that? yes. i am going to make an offer, all little embarrassing. i was going to make an offer but don't know how high my amex goes up to. >> we must talk after this. stuart: i want to show picture of thomas moran's grand canyon, another piece of american art, you are looking 8 to 12 million, a beautiful picture. >> painted in 1904. he spent a lot of time in the american west in the late 1800'ss drawing sketches before color photography and painted these majestic sublime scenes for the grand canyon. stuart: return to my theme, $745 million in one night for contemporary parts but much lower prices for these classics, norman rockwell classic. explain yourself. >> nor rockwell, the highest painting sold by norman rockwell went for $47 million so he has high price point objects that cell and his paintings in the private market regularly sell for $10 million or above. the reason that is the case is there's a global awareness of floorman rockwell. not only are there collectors in the u.s. or interested in norman rockwell but because he is such an iconic american figure international collectors who may want to own a piece. stuart: asian buyers bid for contemporary art. our asian buyers snapping up a norman rockwell? >> there is interest in this. we took this -- baseball in japan. stuart: when is the auction of this painting? >> thursday during the day. stuart: christie's in new york city but you conjoin the bidding by telephone. >> telephone, online and we love to have your visitors, it goes on view tomorrow. we welcome everybody to christie's to look at these two paintings. stuart: thanks so much. i apologize to brian kilmeade. make a bid. he bit slow. >> who is this rockwell guy? stuart: my take on the five year experiment of the obama administration's all government all the time, my judgment on that after this. at delta we're investing billions of dollars, improving everything from booking to baggage claim. we're raising the baron fg and tomorrow we'll raise it yet again. 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[ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ for $175 dollars a month? so our business can be on at&t's network my mom works at ge. yup. all five of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line anytime for 15 bucks a month. low dues... great terms... let's close. new at&t mobile share value plans. our best value plans ever for business. if you're looking to buy a car,t this?? now is the time and truecar is the way. just go to truecar.com to lock in guaranteed savings... without negotiation. thank you! happy memorial day wkend! statement we are not more fair or more prosperous. government doesn't do things well. it is inefficient, bureaucratize, it can't perform. look no further than those obamacare exchanges. next, government is politicized, bureaucrats dance to a political soon and that does not make for a dynamic can-do attitude. in the case of los lerner and the irs the bureaucrats were blatantly political and grossly unfair. third president obama is a very poor manager of the government he runs. remember all the wasteful spending in the stimulus plan? the disgraceful treatment of veterans now and how can we forget the deceit and profit performance of the obamacare debacle. he has turned america into a vast dmv. the president's all government approach was an experiment and it has failed and we know it. the latest fox news poll shows a distrust of the president's creation. would you generally trust the federal government? six out of ten said no. stuart: garden homes red lobster selling it to a private equity firm. are they getting them to billion dollars in cash? how about that? shares of pricing website true car began trading today up 17%. rack space to explore possible sale of the company, one of those cloud storage companies, you rent them to store your stuff in the cloud, may be taking over 20% on that suggestion. the international soccer governing authority, their president is admitting that awarding that the 2020 cup was a mistake. he believes holding the world cup will expose the player to extreme heat conditions. brian kilmeade still with us. this is a big deal because this is the world cup, the guy who runs international soccer says i am too hot, you can't do this, what do they propose? >> don't deny you said was a mistake. everyone makes mistakes in liff, the technical report said clearly it was too hot but the executive committee with a large majority said all the same to play the cutter. don't deny you said it. we proved in '94 when america was barely paying attention without m.l.s. that we could host the world cup. huge profits, to launch the mls and put seed money across the country. we want to expand to the middle east but there has got to be an investigation as to how they got it in 2022 because this will make the olympic scandal that mitt romney took over look like small potatoes instead. stuart: the implication is they paid somebody to get it to come to the middle of the desert. >> why would you want to go as a tourist in the summer alone play soccer at 120 degrees? you will move this from the summer tournament to a fall tournament. will that build a bunch of terrariums to protect the players? is it part of the world cup the elements? the want to see this windy, rainy, play in a certain part of a company that these challenges, the u.s. is going to evidently, i don't know brazil's topography like i should, but in the most brutal group, and spread across brazil. it is hard to get the distance but that is all a part of winning the world cup. you got to overcome these things. stuart: if america advances beyond its group, early stages of the world cup, that is accused deal for americans, for soccer in america. >> i will say something if you bring this back. if you say in your tsr, your scheme, employes to do some things special, doing a final round of exhibitions will catch up a little bit, and bring some color to it. this is a talented squad, talented coach, they will do something. stuart: he is coach of the u.s. team. >> i would not be surprised for stuart varney to call brian kilmeade's people and say i need you down here but the quarterfinals, got to break down. stuart: i would not be surprised at that. >> you are pulling for it. britain plays the u.s.. were you pulling for? stuart: england plays for the u.s.. thank you very much. they're killing me. do you want me to leave? two bombshells this week directly linking the irs scandal to washington. digital watch obtain documents that the ira's targeting was overseen by d.c. and also obtained were letters cents to the then irs commissioner doug schoen and lois lerner revealing democrats senator carl levin repeatedly pressured the irs go after those conservatives. listen to monica crowley sound off on this program. >> the fact that outside group judicial watch, and to get these irs e-mails as well as the benghazi e-mails tell you a lot about this administration, they continue to stonewall and lie about what actually happened particularly with the irs and you need outside groups to help congress because this administration is not cooperating. stuart: joining us right now, the president of truethevote, one of the groups targeted by the irs. do you want to see lois lerner in an orange jumpsuit being let off to prison? i ask that question because that will be a very harsh punishment for her. do you want to see that? >> i want to see her prosecuted to the fullest extent of the law but make no mistake. lois lerner is not known in this collusion we see across many government entities. stuart: it has been linked to headquarters, not just a bunch of rogue agents in cincinnati but the district of columbia, to headquarters. that is something of a breakthrough because that is proof that lois lerner was not telling you the truth. >> and number of us that have been under audit under investigation circulating for three years. trying to get people to take notice. the next layer that needs to be pulled back is looking how interagency is have colluded because in my case alone i dealt not just with the irs but the fbi and the bureau of alcohol and tobacco and firearms, many more stories to be told. stuart: they all came after you? osha, fbi and the string of others came after your organization? >> in a three year period, directed toward nonprofit organization or to me personally, i dealt with government agencies and if we have an opportunity to get to the bottom of this we will see that there was interagency collusion with the expectation to intimidate and target those that this administration wanted to silence. stuart: as of right now have you been made whole? are you through it? >> no. we are still in a lawsuit with the irs, we are suing a long with the lengthy cast of characters, still have a lot of explaining to do for their actions. stuart: true the vote. sorry we had little time for you but you have an important story to tell. thank you. in the world's largest ever democratic election in history socialism defeated. that is part of the real halftime report which is next. 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[ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. all on thinkorswim when folks think about wthey think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. en we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america. >> comcast announced data cast for all its customers expected to rollout within five years. the usage based filling will charge people for going over there day limit. comcast has 20 million broadband customers and to purchase time warner cable. comcast taking a look at the moment down 1%. chipotle at 7% shareholders voted against chipotle. last year alone the two co ceos combined $50 million. the company takes the vote seriously but it is non-binding. to put the shares right now trading down 1/2%. stay right there. the real halftime is going to be starting with "varney and company". watch out, ladies and gentlemen. we will be right back. (mother vo) when i was pregnant... i got more advice than i knew what to do with. at i needed was information i could trust on how to take care of me and my baby. luckily, unitedhealthcare has a simple program that helps moms stay on track with their doctors and get the right care and guidance-before d after the baby is born. simple is good right now. (anncr vo) innovations that work for you. that's health in numbers. unitedhealthcare. stuart: here we go with the real halftime report lauren simonetti, john wayfield joining us from bermuda, cheryl casone, brian kilmeade, both still here. first billionaire david tepper is nervous about america and long-term bull, has a sick feeling about stocks. i put it to you are you concerned? >> i am concerned the same way david tepper is concerned. he is not shorting stocks, not going extremely wrong. ratcheting up 130% like a lot of hedge funds do. he is worried about the ecb, quantitative easing coming up, i agree with david tepper. stuart: other stuff on our plate including this. the big name you know, j.c. penney is a big today, reported strong sales. don't count them out yet. >> don't count them out yet, the best way to put it. they are breathing some life, positive for the first time in 30 months, same-store sales rose 6% but this should alleviate some concern that maybe there would be a bankruptcy filing for j.c. penney. stuart: this is for you. world wrestling, w w e down huge this morning. want to tell me why? >> contacting for 20 years and i own the stock and i bought some more stock this morning. they just signed a new deal with nbc-tv for all their properties and several international deals, they were good deals, the market talking about more than what they have got. it was a seismic shift shifting away from pay-per-view. and the stock that transition period, and -- stuart: ensure is. the win for private enterprise in india at. for the first time in an overwhelming turnout. there is a situation in india where the infrastructure with all the potential and innovation, the innovation on part of the family of lease democracies. my one worry about this election is the expectations will be so high to rebuild infrastructure and everything global, an unrealistic pace, people say i told you so, much like people fought with barack obama he is going to change everything around the world will be a better place than the sun will no longer set and will stay up all day and no longer need rests. stuart: on principle socialism out in india, private enterprise, that is a huge win for capitalism and the way you slice it. 10 seconds for you. >> i agree because you are betting on the people over the system, they are as productive as any and they answer most of my phone calls and have a question with any of them. they know what i am talking about. sounds like they are next door. i am really convinced. stuart: moving swiftly along. $25 million that was the fine at general motors. that is bad pr. >> this will hurt sales. unlike what happened with toyota it didn't hurt sales but it will hurt gm because we bailed the mouth. now they messed up again and reported deaths over this issue, very bad news. stuart: a $35 million fine is a drop in the bucket for general motors. >> they have $30 billion sitting in cash and reserves. nothing to general motors, the pr is a bigger deal land yet sales are going to be hurt and last night they got out of gm. warren buffett reduced, and einhorn said he cashed out completely. what does that tell you. stuart: bulletin board pinterest valued at $5 million and attack the apps who were valued at $10 billion. are they worth it? >> like buying an elephant for a quarter and if you have a core you wanted elephant. so much cash on balance sheets for people like google and other big tech companies, probably has a new way of explore and search combined and something different from what google has, by selling the company. stuart: that is it for today's real halftime report. we thank you one and all, everyone, thanks a lot. check this out, a 3d printing can. we have got one. it is year in the studio and you will see after this. ♪ stuart: in the background you may hear a faint buzzing sound. that is the sound of the 3d printing pen. it is in operation right here in the studio. the gentleman running it is mr. pogue. name of the company? >> it is called wabble works. stuart: keep going to. he is printing something as we speak using the 3d printing pan which is essentially a device that melts plastic and you can draw things and it comes out in 3d. he is drawing a little square right now. >> making a little cube quickly. stuart: how much the proposed to charge? >> runs for $99, we have 25 strands and a 10-1 ratio. stuart: for $100. and off i go. >> 5,000 inches of doodling. stuart: 3d do bling. >> you can get one right now. >> my company. stuart: you own it 100%. >> i own half of it and peter dillard who is a partner. stuart: how many have you sold? >> 55,000 units. stuart: you have sold 55,000 units to date at a cost of $100 each, gross revenue in the neighborhood of? have a million dollars. what is your margin? [laughter] >> a decent margin. stuart: when you walked away with a quarter million dollars clean out of the deal so far? >> sure. stuart: more than that? >> possibly. if stuart: for sure you have. >> it is a huge cube. stuart: cuba's all over the world. >> we have a great community producing thousands, making stencils on line. stuart: this is the 3 doodle awful tower--eiffel tower. >> you kill the pieces of paper and join the pieces together. you can use it to fix things. my classes here -- >> i knew it was the basic deal. >> you can do will fabric, this peels off. stuart: who is giving this? >> parents buying it for their kids? >> it has a hot tip so we don't recommend it for every kid. we have a lot of architects and fine artists, teachers are using it. stuart: that is interesting. >> your time is up. stuart: when you just have a pretty good commercial lot of this. >> i am not sure, i am sure it will leave one behind. stuart: thank you, brian kilby comes on "varney and company" and makes a bold predictions. that is next. memorial day weekend? looks like fun. but what about this? if you're looking to buy a car, now is the time and truecar is the way. just go to truecar.com to lockn guaranteed savings... without negotiation. thank you! happy memorial day weekend! all stations come over to mithis is for real this time. step seven point two one two. verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. i believe that they have the team poised to do something special. they will be coming here to do a special round of expectations. they will do something. stuart: the coach of the u.s. team. >> yes. i need you down here because the u.s. is in the quarterfinals and you are the only guy to break it down. what is your prediction? >> i do have a sense that there will be a european winner that is germany. stuart: can we just show that video of brian this morning with elisabeth? >> what are they wearing? >> i am a journalist. i want to keep my journalistic integrity in the morning. stuart: time is up. brian, it was fun. deirdre bolton, please, take this. deirdre: i was really impressed, stuart. hats off to everybody who participated. we are going to give you alternative ways to invest your money beyond stocks and bonds. numerous high-profile hedge fund managers a different tone for private social scrap booking site pinterest. investors think it is worth $5 billion. i will get the stocks and valuation and the chances of pinterest t
can see it. it's spelt wrong, it's spelt and there's a, "t" missing. >> spelling counts if you honour our best player. the colorado rockies held out 15,000 t-shirts, but left out the "t" in their last name. they are ordering new shirts and will exchange them for free along with a ticket to another game. i'm richelle carey. "real money" is next. be sure to check out our website aljazeera.com for news around the world. >>. >>. >> reporter: over the next five years 30 companies are expected to pour $90 billion into projects. the louisiana g.d.p. is $250 billion. >> in the past if we had $3 billion in capital expansion, we would have thought it was a great year. we have $90 billion across the state. >> so why louisiana? >> this is where there's a lot of natural gas. we have pipe lines in place. there are enough miles of pipelines alone to circle the globe 4.5 times. >> easy access sweetened the deal. louisiana is offering a 10-year exemption on property taxes, this growth is uprooting residents. the new complex will be guilt on more than 3,000 acres of lands, cutting directly through the land of mossville. >> i'm walking through the front quart of a resident who sold the property to sassel. it's been flattened to make way for a complex. sassel is not the only game in town. there's 66 energy or pet petrochemical plants. you can't help but wonder if this will be a more familiar scene as america's energy renaissance takes hold. routh is among those leaving. his home is in the path of the new promote. sassel is paying him $213,000 to move out. >> i had enough. i'll take what i can get and get out of here. we go down south. they are telling you "you're getting a good deal,man." yeah, right. >> today 14 different plants and refineries surround mossville and many residents say they have felt the affects. blood samples collected from 28 residents in 1997 and 2001 showed elevated levels of diochlin, a highly toxic pollutant that is naturally occurring, but a bi-product of industrial waste. sassel vowed to be a good neighbour. >> we do a tremendous amount of work to predict and model the emissions of hired carr bones that come out of the -- correspondence that come out of the -- carbons that come out of the plant. there should be no significant health impacts of anything close to the plant. old pipe fitters like rufus are doubtful, young ones are thankful for the work. >> it makes me feel good, knowing i'm going somewhere with my life. >> the money that sassal and others poor into louisiana will flow, so long as america keeps fracking and natural gas prices stay low. in the end a draw for foreign energy companies investing in louisiana and other sports in the united states boils down to maths and the favourable economics of doing business here. russell gold is an energy reporter at "the wall street journal" and an author of "the boom" - how fracking ignited the american revolution and changed the world. louisiana is an example of the impact the energy boom can have. >> cheap natural gas in particularly, and as much natural gas as you can shake a stick at, decades worth. that was the missing ingredient for the industrialization. 10-15 years ago the plants were being dismantled and moved to trina dad where you had cheap natural gas. now they are coming back because you have the labour, and an encouraging local and state government. you have the pipeline, the infrastructure, which you didn't have. what you didn't have was chief energy. that is now back. >> russell, one of the things said in the story is as long as there's cheap natural gas, there are people in the industry saying all the ingredients are here except the price of natural gas is too low. if it stays too low, you'll see some of the money leaving. what happens to the price of natural gas. should it go higher, if it does, does it imperil projects like this? >> i have been hearing that for two years. we need the press of natural gas to go up, or we'll stop drilling. they are not stopping drilling. we are producing more natural gas. i'm skeptical. a higher price of natural gas would help companies drilling the wells and fracking. it's more profits for them. at the same time they realise that they don't want to go back to the days of $10 natural gas, because they'll pull the plug on their project. they are trying to find a happy medium between what gas consumers want and producers want. we are having a little dance right now. >> you lock at the fracking boom in north dakota, the infrastructure didn't exist. because there was so much to frack, they built it. louisiana has the infrastructure, it has the access to the gulf of mexico and has the pipe lines. is this boom the thing that will take place anywhere where natural gas exists tore does louisiana -- or does louisiana have an advantage over other areas. >> no this has to happen in a place like louisiana. who david had said, the second plant is etho lean, what we make plastic out of. in louisiana, from mississippi all the way to corpus kristi texas, you have one of the world's - if not the world's largest consep tryings of petrochemical plants. you -- concentration of petrochemical plants. you have to build a plant because it's next door. the neighbour can build the product. shell has been talking about building a plant in pittsburgh. it's not going anywhere, because once you make the ethylene you have to ship it to the gulf coast. there's an argument where you hear about all the things that happen with respect to natural gas or fracking. some people say it causes earthquakes. mossville is one of the most polluted places. when you go no places where the economic situation is such that the benefit to fracking outweighs the noise, it's one thing, but there are other places more populated where people have more of a voice. are we worried that they'll speak up and say this is great for energy, but bad for our health? >> we are seeing that. there's a lot of places around the country saying we love the low-cost gas, we like the fact that electricity is lower, we don't want in near us. it's the nimby, and in louisiana and texas, accustomed to the oil and gas industry, and node the jobs from -- need the jobs if it, they are more accepting. you make an excellent point. we don't know what the environmental impact of this gas to liquid plant or other facilities that are being discussed. louisiana has a poor track record with emissions and the environment. this is another generation coming in. >> this could be $90 billion over the next few years in a state with the g.d.p. is $250 billion. >> hard to say no to that. >> it is. good to talk to you russell, russell gold a "wall street journal" energy reporter and the author of "boom." >> next, it's an multibill job project affecting ships, strains and trucks. the project is not in america. that and more as real money continues. it probably will not surprise anyone to learn that the u.s. imports more than china than anywhere else in the world. america imported 440 billion in goods - electronics, toys, shoes up 331% since 2001. here is what is interesting - for years most of the goods were shipped to the west coast and trucked east. panama has a multi billion plan to shake up the shipping world. it is expanding the panama canal, making way for the bigger ships and u.s. ports are scrambling to keep up. we have our report. >> reporter: is the 6.8 billion and counting the panama canal expansion is an attempt to reshape global shipping routes. a century ago president teddy roosevelt was instrumental in opening the canal. a short cut between the atlantic and pacific oceans. today it is too narrow, among them the ships used to move goods from asia to the united states. 18% is shipped through the canal. panama hopes to win more of that business with super sized lots. >> joe biden joined the panamanian president for a look at the work in progress. >> the arrival of the new ships presents an opportunity for countries to transport goods more cheaply than ever before. it's a challenge for all of us in the rest of the world to modernize. khelleded to open in 2016. the new canal -- scheduled to open in 2016. it will be open to bigger ships, 25% longer and 50% wider than the ships using them today. they'll carry up to three times the count capacity of containers. >> there has been an arms race in the shipping industry. shipping lines are investing in bigger ships. we have to keep investing in bigger infrastructure to deal with the crate flows. >> more than 70% of container traffic is shipped to the west coast. goods heading east are offloaded for transport by truck or train. most of the shipments go to the east coast via the suez canal. some manufacturers will be able to save time and funny travelling to east coast ports like new york and savannah, georgia. hoping o attract the ships, port cities up and down the coast ever spending billions. in new york city, construction workers are raising the bridge to accommodate taller ships. in miami, port officials are building better trucking routes, including a 4-lane trucking tunnel and engineers plan to dig a deeper and larger harbour, extending eight miles into the atlantic. what promises to be a windfall for the east spells competition for the west. >> the panama is a threat, combined with investments in the american south-east ports. it's a competitive world in the port industry. >> some predict pacific ports could lose 10-20% of its shipments. to combat the threats, the port of seattle invested 1.2 billion through infrastructure in 2012. five million is ear marked for cranes and upgrades. los angeles, the biggest port, is spending 1.3 billion to protect market dominance. the suspending on both coasts may be a gamble. there's reason for optimism. with 1.5 million containers moving through the port, shipments are at a high. the fiercest competition sparked by the expansion of the panama canal will be between east coast ports, battling to steal market share. among the biggest winners is you, the american consumer. they are among the conclusions of a transportation and infrastructure special of the. he calls this a true feel-good story. >> for the american consumer and businesses, there's upside. additional goods that reduce transportation costs means cheaper agriculture. electronics in the stores, and cheaper input products for business, they can export those advanced industrial products to other markets across the world. it's a bin win. the real question is between the ports, is it a zerosome games. how often is that different versus global economic forces and trade demands that may flat line or grow at a certain rate. different to what the panama canal's upgrade that they are experiencing on the current infrastructure they have. >> it's great business for the panama cannes am, and remarkable -- canal, and remarkable saving for theships. we look at the north-west passage through the arctic. anything to get a ship to port faster has an effect the the bigger point is you see the big uptick if we see an increase in global trade. >> it's how much the u.s. can network with the world. we see over the last 30-plus years it's grown faster than g.d.p. it's a smart investment for the panay mannians. in the short run, five years, there'll be may scores, elected officials, country officials who may be surprised at the lack of results for the new investments. that doesn't mean the economic community will not be in a good shape. in miami, or jacksonville - it's a smart investment. some things are not changing. the big effort we are looking for is for americans to be trading, producing and consuming more. >> this is infrastructure, it's hard to put a return on investment. you see the upgrades. you mention savannah. miami, and the bayonne bridge in new york. but the fact is what is - who is really going to get the benefit from this early. norfolk has a report accommodating super ships. >> there's a few ports on the east coast that we expected to be open, when the canal opens, extended to 2016 due to construction and legal kerfuffle. we have new york, norfolk, miami with their new investment, and baltimore as well. savannah has been the fastest growing port. jackson and boston are winners. the biggest participation winner can be nimy. they have had great support. you mentioned in the opening video, interim enhancements on the dock side and the land side to smooth traffic in the community. and connect maimy to the rest of the country versus competitors. >> the single biggest winner is along the gulf coast. soya bean producers and other product may ship more goods south. again, feeding no the asian appetites, instead of being imported - this is an opportunity for american exports. >> you mentioned where a container comes off the ship and becomes a truck or railcar. let's talk about trucking and rail. there'll be people worried they are not going to ship goods from the west coast to the east coast. will rail prices become cheaper? >> yes, there's great coverage about how rail terms, the large class oneforms may look to -- class one firms, may look to lower the rates to carry more traffic across what is called the american land bridge. it's important to note that there's a concerted effort by freight rail to hold on to the longer distance business. the longer they haul it, the more money they make. rail will be involved, including the east coast, the longer travels have something for them. too much attention has been solely focussed on the coast coast to lose business. >> if you are not watching this or following the story, is this going to be transparent to consumers. will anyone notice anything different? >> we'll probably not notice. the best hope is a silent wind, $0.05, $0.10 off a product in the grocery store, making up these numbers. within reasons, consumer electronics. it will be unspoken. that will be the name of the game. there's a cliche that freight doesn't vote, you don't notice it until there's a problem. let's say the west coast strikes, the east coast from previously. in some ways you don't want to know about freight. for business it's a big deal, and understanding how smoothly the transactions can be made are massive, and especially for the opportunity for american exporters, having bigger amounts of good, whether it is grains to advance products to the growing middle classes in asia. the panama is a generational investment and we'll see a generation to see full returns. there's no question that the american economy benefits. >> it's great to point occupant the export opportunities. a mayor is a transportation specialist. next - h @ after a brutal winter the housing market showed renewed life. the recovery is not as strong as hoped. especially with mortgage rates cheap, and a strengthening job market. new and used home sales are running behind last year's pace, we are on the road to recovery, and people, president obama, say institutional investors are to thank for that. in the last two years they spent billions buying up hundreds of thousands of distressed single family homes and turning them into rentals. now that the prices are stabilizing. institutional investors slowed buying. they are going else were. there's term it's caughting home price appreciation to slow down in hot markets. after double-digit home aprooshz in the last year, is it a bad thing. [ auction call ] >> reporter: this was the scene when dozens of institutional investors convened to buy up hundreds of single family homes in a single afternoon. >> sold subject to receipt of funds. >> reporter: since 2011 institutional investors spent upwards of $50 billion, buying 386 family homes. the home sales have declined. blackstone, for example, the largest of the institutional investors tells "real money," it's acquisitions are down 70% since last year. >> particularly in some of the hottest markets where the institutional investors started out. they are pulling out. >> reporter: there could be a downside for investors pulling back. when properties were sold, when investors stop buying, prices fall. we are seeing home price prooshzs slow down. the question is is that going to be a soft landing or will we see more of a hard landing in the markets. the home price index shows that nationally home values have been appreciating since 2009. in markets like phone. hit hard by the foreclosure crisis investor purchasing is down 14% from last year when buying was at its peak. home appreciation values went from 30% last year to 6% in may. >> 6% home price appreciation is good. the question is how far will that fall as the players pull out even more. >> analysts say there are other factors to take into account for the slowing of home aprooshz. >> institutional investor interests is one of many factors to the broader housing market slow down, which includes higher mortgage rates and less attractive housing affordability. that's the show for tonight. coming up next week on "real money" - jobs. the employment picture has been improving, but there's more behind the numbers. we tell you where the jobs are and who is hiring. that's if for me. thanks for joining us. [ ♪ music ] >> thousands calling for their freedom. >> it's a clear violation of their human rights. >> we have strongly urged the government to release those journalists. >> journalism is not a crime. >> dadu, southern pakistan, just a few months ago.
houses at bargain prices are slowing down. i'm ali velshi, and this is "real money". appear hydraulic fracturing or fracking creates controversy, but creates an abundance of natural gas in the united states. that has caused u.s. prices to plummet. today oil trades at about 22 times the price of natural gas. in 2006 it was only about seven times the price, and that caught the eye of the global industry. energy companies like sassal in south africa and sempra in california are looking to cash in on cheap energy prices. that means new jobs and developments. to get an idea of how big the boom is you have to head to western indiana, where technology will be used in a complex changing the region. we have the story. >> reporter: at a pipe-fitters yard in western louisiana, matt brown is learning a new trade. the baton rouge native is one of hundreds who see opportunity in this remote bayou parish, where an industrial revival is under way. he's enrolled in a technical stool for pipe fitters. >> what brought me here was the works, two years ago. i came to get a job, i have a career path i'm on, and came to school to get certified and make more money. >> reporter: cheap natural gas brought on by a boom is reshaping towns like these in louisiana. the opportunities are about to get a lot bigger. a few miles down the road a south african petrochemical company called sassal is making a large foreign investment in u.s. history. in these empty grass fields, sassal is building a massive complex expected to bring 7,000 construction and 1200 high-skill industry jobs over the next five years. >> for each of the 1200 jobs that will be created because of our project in south-west louisiana, we estimate that six or seven other jobs will be created in the community to support those jobs - whether it's health care workers or restaurant workers. >> that is starting to reshape the region. >> there's not enough apartment complexes in lake charles, so what is happening in lake charles is the same thing that is happening in north dakota. they are building temporary crew camps. >> reporter: dozens of the camps are cropping up to handle a sas ol project that is so big it will close 26 public roads and cut into the uorate, which -- unemployment rate which hovers around 5%. >> now that energy dropped in the united states, it's opened up a world of opportunities that couldn't have existed otherwise. >> sassal's first plant will convert natural gas into diesel fuel. a technology advanced by nazi scientists. the second will produce etha leap, a raw chemical used in plastics and paint. >> together you have about $21 billion in spending, which is by far the largest capital investment in the history of our state, if it takes place, and one of the largest single investments in the history of the county. >> over the next 5 years 30 companies are expected to for $90 billion into dozens of petrochemical projects. keep in mind louisiana's g.d.p. is about $250 billion. billion in capital expansion, we would have thought it was a great year. state. >> so why louisiana? >> this is where there's a lot of natural gas. we have pipe lines in place. there are enough miles of pipelines alone to circle the globe 4.5 times. >> easy access sweetened the deal. louisiana is offering a 10-year exemption on property taxes, this growth is uprooting residents. the new complex will be guilt on more than 3,000 acres of lands, cutting directly through the land of mossville. >> i'm walking through the front quart of a resident who sold the property to sassel. it's been flattened to make way for a complex. sassel is not the only game in town. there's 66 energy or pet petrochemical plants. you can't help but wonder if this will be a more familiar scene as america's energy renaissance takes hold. routh is among those leaving. his home is in the path of the new promote. sassel is paying him $213,000 to move out. >> i had enough. i'll take what i can get and get out of here. we go down south. they are telling you "you're getting a good deal,man." yeah, right. >> today 14 different plants and refineries surround mossville and many residents say they have felt the affects. blood samples collected from 28 residents in 1997 and 2001 showed elevated levels of diochlin, a highly toxic pollutant that is naturally occurring, but a bi-product of industrial waste. neighbour. >> we do a tremendous amount of work to predict and model the emissions of hired carr bones that come out of the -- correspondence that come out of the -- carbons that come out of the plant. there should be no significant health impacts of anything close to the plant. old pipe fitters like rufus are doubtful, young ones are thankful for the work. >> it makes me feel good, knowing i'm going somewhere with my life. >> the money that sassal and others poor into louisiana will flow, so long as america keeps fracking and natural gas prices stay low. in the end a draw for foreign energy companies investing in louisiana and other sports in the united states boils down to maths and the favourable economics of doing business here. russell gold is an energy reporter at "the wall street journal" and an author of "the boom" - how fracking ignited the american revolution and changed the world. louisiana is an example of the impact the energy boom can have. >> cheap natural gas in particularly, and as much natural gas as you can shake a stick at, decades worth. that was the missing ingredient for the industrialization. 10-15 years ago the plants were being dismantled and moved to trina dad where you had cheap natural gas. now they are coming back because you have the labour, and an encouraging local and state government. you have the pipeline, the infrastructure, which you didn't have. what you didn't have was chief energy. that is now back. >> russell, one of the things said in the story is as long as there's cheap natural gas, there are people in the industry saying all the ingredients are here except the price of natural gas is too low. if it stays too low, you'll see some of the money leaving. what happens to the price of natural gas. should it go higher, if it does, does it imperil projects like this? >> i have been hearing that for two years. we need the press of natural gas to go up, or we'll stop drilling. they are not stopping drilling. we are producing more natural gas. i'm skeptical. a higher price of natural gas would help companies drilling the wells and fracking. it's more profits for them. at the same time they realise that they don't want to go back to the days of $10 natural gas, because they'll pull the plug on their project. they are trying to find a happy medium between what gas consumers want and producers want. we are having a little dance right now. >> you lock at the fracking boom in north dakota, the infrastructure didn't exist. because there was so much to frack, they built it. louisiana has the infrastructure, it has the access to the gulf of mexico and has the pipe lines. is this boom the thing that will take place anywhere where natural gas exists tore does louisiana -- or does louisiana areas. >> no this has to happen in a place like louisiana. who david had said, the second plant is etho lean, what we make plastic out of. in louisiana, from mississippi all the way to corpus kristi texas, you have one of the world's - if not the world's largest consep tryings of petrochemical plants. you -- concentration of petrochemical plants. you have to build a plant because it's next door. the neighbour can build the product. shell has been talking about building a plant in pittsburgh. it's not going anywhere, because once you make the ethylene you have to ship it to the gulf coast. there's an argument where you hear about all the things that happen with respect to natural gas or fracking. some people say it causes earthquakes. mossville is one of the most polluted places. when you go no places where the economic situation is such that the benefit to fracking outweighs the noise, it's one thing, but there are other places more populated where people have more of a voice. are we worried that they'll speak up and say this is great health? >> we are seeing that. there's a lot of places around the country saying we love the low-cost gas, we like the fact that electricity is lower, we don't want in near us. it's the nimby, and in louisiana and texas, accustomed to the oil and gas industry, and node the jobs from -- need the jobs if it, they are more accepting. you make an excellent point. we don't know what the environmental impact of this gas to liquid plant or other facilities that are being discussed. louisiana has a poor track record with emissions and the environment. this is another generation coming in. >> this could be $90 billion over the next few years in a billion. >> hard to say no to that. >> it is. good to talk to you russell, russell gold a "wall street journal" energy reporter and the author of "boom." >> next, it's an multibill job project affecting ships, strains and trucks. continues. it probably will not surprise anyone to learn that the u.s. imports more than china than anywhere else in the world. america imported 440 billion in goods - electronics, toys, shoes up 331% since 2001. here is what is interesting - for years most of the goods were shipped to the west coast and trucked east. panama has a multi billion plan to shake up the shipping world. it is expanding the panama canal, making way for the bigger ships and u.s. ports are scrambling to keep up. we have our report. >> reporter: is the 6.8 billion and counting the panama canal expansion is an attempt to reshape global shipping routes. a century ago president teddy roosevelt was instrumental in opening the canal. a short cut between the atlantic and pacific ocean s. today it is too narrow, among them the ships used to move goods from asia to the united states. 18% is shipped through the canal. panama hopes to win more of that business with super sized lots. >> joe biden joined the panamanian president for a look at the work in progress. >> the arrival of the new ships presents an opportunity for countries to transport goods more cheaply than ever before. it's a challenge for all of us modernize. khelleded to open in 2016. the new canal -- scheduled to open in 2016. it will be open to bigger ships, 25% longer and 50% wider than the ships using them today. they'll carry up to three times the count capacity of containers. >> there has been an arms race in the shipping industry. shipping lines are investing in bigger ships. we have to keep investing in bigger infrastructure to deal with the crate flows. >> more than 70% of container traffic is shipped to the west coast. goods heading east are offloaded for transport by truck or train. most of the shipments go to the east coast via the suez canal. some manufacturers will be able to save time and funny travelling to east coast ports like new york and savannah, georgia. hoping o attract the ships, port cities up and down the coast ever spending billions. in new york city, construction workers are raising the bridge to accommodate taller ships. in miami, port officials are building better trucking routes, including a 4-lane trucking tunnel and engineers plan to dig a deeper and larger harbour, extending eight miles into the atlantic. what promises to be a windfall for the east spells competition for the west. >> the panama is a threat, combined with investments in the american south-east ports. it's a competitive world in the port industry. >> some predict pacific ports could lose 10-20% of its shipments. to combat the threats, the port of seattle invested 1.2 billion through infrastructure in 2012. five million is ear marked for cranes and upgrades. los angeles, the biggest port, is spending 1.3 billion to protect market dominance. the suspending on both coasts may be a gamble. there's reason for optimism. with 1.5 million containers moving through the port, shipments are at a high. the fiercest competition sparked by the expansion of the panama canal will be between east coast ports, battling to steal market share. among the biggest winners is you, the american consumer. they are among the conclusions of a transportation and infrastructure special of the. he calls this a true feel-good story. >> for the american consumer and businesses, there's upside. additional goods that reduce transportation costs means cheaper agriculture. electronics in the stores, and cheaper input products for business, they can export those advanced industrial products to other markets across the world. it's a bin win. the real question is between the ports, is it a zerosome games. how often is that different versus global economic forces and trade demands that may flat line or grow at a certain rate. different to what the panama canal's upgrade that they are experiencing on the current infrastructure they have. >> it's great business for the panama cannes am, and remarkable -- canal, and remarkable saving for theships. we look at the north-west passage through the arctic. anything to get a ship to port faster has an effect the the bigger point is you see the big uptick if we see an increase in global trade. >> it's how much the u.s. can network with the world. we see over the last 30-plus years it's grown faster than g.d.p. it's a smart investment for the panay mannians. in the short run, five years, there'll be may scores, elected officials, country officials who may be surprised at the lack of results for the new investments. that doesn't mean the economic community will not be in a good shape. in miami, or jacksonville - it's a smart investment. some things are not changing. the big effort we are looking for is for americans to be trading, producing and consuming more. >> this is infrastructure, it's hard to put a return on investment. you see the upgrades. you mention savannah. miami, and the bayonne bridge in new york. but the fact is what is - who is really going to get the benefit from this early. norfolk has a report accommodating super ships. >> there's a few ports on the east coast that we expected to be open, when the canal opens, extended to 2016 due to construction and legal kerfuffle. we have new york, norfolk, miami with their new investment, and baltimore as well. savannah has been the fastest growing port. jackson and boston are winners. the biggest participation winner can be nimy. they have had great support. you mentioned in the opening video, interim enhancements on the dock side and the land side to smooth traffic in the community. and connect maimy to the rest of the country versus competitors. >> the single biggest winner is along the gulf coast. soya bean producers and other product may ship more goods south. again, feeding no the asian appetites, instead of being imported - this is an exports. >> you mentioned where a container comes off the ship and becomes a truck or railcar. let's talk about trucking and rail. there'll be people worried they are not going to ship goods from the west coast to the east coast. will rail prices become cheaper? >> yes, there's great coverage about how rail terms, the large class oneforms may look to -- class one firms, may look to lower the rates to carry more traffic across what is called the american land bridge. it's important to note that there's a concerted effort by freight rail to hold on to the longer distance business. the longer they haul it, the more money they make. rail will be involved, including the east coast, the longer travels have something for them. too much attention has been solely focussed on the coast coast to lose business. >> if you are not watching this or following the story, is this going to be transparent to consumers. different? >> we'll probably not notice. the best hope is a silent wind, $0.05, $0.10 off a product in the grocery store, making up these numbers. within reasons, consumer electronics. it will be unspoken. that will be the name of the game. there's a cliche that freight doesn't vote, you don't notice it until there's a problem. let's say the west coast strikes, the east coast from previously. in some ways you don't want to know about freight. for business it's a big deal, and understanding how smoothly the transactions can be made are massive, and especially for the opportunity for american exporters, having bigger amounts of good, whether it is grains to advance products to the growing middle classes in asia. the panama is a generational investment and we'll see a generation to see full returns. there's no question that the american economy benefits. >> it's great to point occupant the export opportunities. specialist. next - housing market starting to recover. investors are going elsewhere @j >> this, is what we do. >> al jazeera america. after a brutal winter the housing market showed renewed life. the recovery is not as strong as hoped. especially with mortgage rates cheap, and a strengthening job market. new and used home sales are running behind last year's pace, we are on the road to recovery, and people, president obama, say institutional investors are to thank for that. in the last two years they spent billions buying up hundreds of thousands of distressed single family homes and turning them into rentals. now that the prices are stabilizing. institutional investors slowed buying. they are going else were. there's term it's caughting home price appreciation to slow down in hot markets. after double-digit home aprooshz in the last year, is it a bad thing. [ auction call ] >> reporter: this was the scene when dozens of institutional investors convened to buy up hundreds of single family homes in a single afternoon. >> sold subject to receipt of funds. >> reporter: since 2011 institutional investors spent upwards of $50 billion, buying 386 family homes. the home sales have declined. blackstone, for example, the largest of the institutional investors tells "real money," it's acquisitions are down 70% since last year. >> particularly in some of the hottest markets where the institutional investors started out. they are pulling out. >> reporter: there could be a downside for investors pulling back. when properties were sold, when investors stop buying, prices fall. we are seeing home price prooshzs slow down. the question is is that going to be a soft landing or will we see markets. the home price index shows that nationally home values have been appreciating since 2009. in markets like phone. hit hard by the foreclosure crisis investor purchasing is down 14% from last year when buying was at its peak. home appreciation values went from 30% last year to 6% in may. >> 6% home price appreciation is good. the question is how far will that fall as the players pull out even more. >> analysts say there are other factors to take into account for the slowing of home aprooshz. >> institutional investor interests is one of many factors to the broader housing market slow down, which includes higher mortgage rates and less affordability. that's the show for tonight. coming up next week on "real money" - jobs. the employment picture has been improving, but there's more behind the numbers. we tell you where the jobs are and who is hiring. that's if for me. thanks for joining us. [ ♪ music ] you can't have it. >> i'm not giving up - my father can't take those dreams away from me. >> dreaming big >> i've got to get into at least one of these top schools... there's no way i can't. >> i would like to run for president of the united states. >> confronting fears >> i have a confession to make. >> i don't wanna have to take out loans. >> i took the pregnancy test. >> making their future, real >> that dream was crushed, you're done... you weren't good enough. >> fifteen cameras, one incredible journey >> let me experience life, let me fly, let me be a bird. >> i know what i want, i know what i have to do to get it. >> revealing, intimate, unexpected >> you will not believe what just happened. >> this is life >> i'm just gonna prove my family wrong. >> "on the edge eighteen" coming september only on al jazeera america >> on "america tonight": the weekend edition, the nation's largest care taker of the mentally ill with a tab picked up by the taxpayer. >> if you keep somebody with severe mental illness for a year, that's g going to cost about $65,000. the most intensive community treatment is going to cost between 20 to
appear hydraulic fracturing or fracking creates controversy, but creates an abundance of natural gas in the united states. that has caused u.s. prices to plummet. today oil trades at about 22 times the price of natural gas. in 2006 it was only about seven times the price, and that caught the eye of the global industry. energy companies like sassal in south africa and sempra in california are looking to cash in on cheap energy prices. that means new jobs and developments. to get an idea of how big the boom is you have to head to western indiana, where technology will be used in a complex changing the region. we have the story. >> reporter: at a pipe-fitters yard in western louisiana, matt brown is learning a new trade. the baton rouge native is one of hundreds who see opportunity in this remote bayou parish, where an industrial revival is under way. he's enrolled in a technical stool for pipe fitters. >> what brought me here was the works, two years ago. i came to get a job, i have a career path i'm on, and came to school to get certified and make more money. >> reporter: cheap natural gas brought on by a boom is reshaping towns like these in louisiana. the opportunities are about to get a lot bigger. a few miles down the road a south african petrochemical company called sassal is making a large foreign investment in u.s. history. in these empty grass fields, sassal is building a massive complex expected to bring 7,000 construction and 1200 high-skill industry jobs over the next five years. >> for each of the 1200 jobs that will be created because of our project in south-west louisiana, we estimate that six or seven other jobs will be created in the community to support those jobs - whether it's health care workers or restaurant workers. >> that is starting to reshape the region. >> there's not enough apartment complexes in lake charles, so what is happening in lake charles is the same thing that is happening in north dakota. camps. >> reporter: dozens of the camps are cropping up to handle a sas ol project that is so big it will close 26 public roads and cut into the uorate, which -- unemployment rate which hovers around 5%. >> now that energy dropped in the united states, it's opened up a world of opportunities that couldn't have existed otherwise. >> sassal's first plant will convert natural gas into diesel fuel. a technology advanced by nazi scientists. the second will produce etha leap, a raw chemical used in plastics and paint. >> together you have about $21 billion in spending, which is by far the largest capital investment in the history of our state, if it takes place, and one of the largest single investments in the history of the county. >> over the next 5 years 30 companies are expected to for $90 billion into dozens of petrochemical projects. keep in mind louisiana's g.d.p. is about $250 billion. all the developments on ou >> al jazeera america presents a self portrait of generation now... >> so many of my friends is pregnant... >> i feel so utterly alone... >> you need to get your life together >> i'm gonna do whatever needs to be done... >> ya boy is lookin' out to becoming a millionaire... >> an intimate look at what our kids are facing in school and beyond 15 stories, 1 incredible journey >> in this envelope is my life right now... >> edge of eighteen coming september only on al jazeera america continues. it probably will not surprise anyone to learn that the u.s. imports more than china than anywhere else in the world. america imported 440 billion in goods - electronics, toys, shoes up 331% since 2001. here is what is interesting - for years most of the goods were shipped to the west coast and trucked east. panama has a multi billion plan to shake up the shipping world. it is expanding the panama canal, making way for the bigger ships and u.s. ports are scrambling to keep up. we have our report. >> reporter: is the 6.8 billion and counting the panama canal expansion is an attempt to reshape global shipping routes. a century ago president teddy roosevelt was instrumental in opening the canal. a short cut between the atlantic and pacific ocean s. today it is too narrow, among them the ships used to move goods from asia to the united states. 18% is shipped through the canal. panama hopes to win more of that business with super sized lots. >> joe biden joined the panamanian president for a look at the work in progress. >> the arrival of the new ships presents an opportunity for countries to transport goods more cheaply than ever before. it's a challenge for all of us modernize. khelleded to open in 2016. the new canal -- scheduled to open in 2016. it will be open to bigger ships, 25% longer and 50% wider than the ships using them today. they'll carry up to three times the count capacity of containers. >> there has been an arms race in the shipping industry. shipping lines are investing in bigger ships. we have to keep investing in bigger infrastructure to deal with the crate flows. >> more than 70% of container traffic is shipped to the west coast. goods heading east are offloaded for transport by truck or train. most of the shipments go to the east coast via the suez canal. some manufacturers will be able to save time and funny travelling to east coast ports like new york and savannah, georgia. hoping o attract the ships, port cities up and down the coast ever spending billions. in new york city, construction workers are raising the bridge to accommodate taller ships. in miami, port officials are building better trucking routes, including a 4-lane trucking tunnel and engineers plan to dig a deeper and larger harbour, extending eight miles into the atlantic. what promises to be a windfall for the east spells competition for the west. >> the panama is a threat, combined with investments in the american south-east ports. it's a competitive world in the port industry. >> some predict pacific ports could lose 10-20% of its shipments. to combat the threats, the port of seattle invested 1.2 billion through infrastructure in 2012. five million is ear marked for cranes and upgrades. los angeles, the biggest port, is spending 1.3 billion to protect market dominance. the suspending on both coasts may be a gamble. there's reason for optimism. with 1.5 million containers moving through the port, shipments are at a high. the fiercest competition sparked by the expansion of the panama canal will be between east coast ports, battling to steal market share. among the biggest winners is you, the american consumer. they are among the conclusions of a transportation and infrastructure special of the. he calls this a true feel-good story. >> for the american consumer and businesses, there's upside. additional goods that reduce transportation costs means cheaper agriculture. electronics in the stores, and cheaper input products for business, they can export those advanced industrial products to other markets across the world. it's a bin win. the real question is between the ports, is it a zerosome games. how often is that different versus global economic forces and trade demands that may flat line or grow at a certain rate. different to what the panama canal's upgrade that they are experiencing on the current infrastructure they have. >> it's great business for the panama cannes am, and remarkable -- canal, and remarkable saving for theships. we look at the north-west passage through the arctic. anything to get a ship to port faster has an effect the the bigger point is you see the big uptick if we see an increase in global trade. >> it's how much the u.s. can network with the world. we see over the last 30-plus years it's grown faster than g.d.p. it's a smart investment for the panay mannians. in the short run, five years, there'll be may scores, elected officials, country officials who may be surprised at the lack of results for the new investments. that doesn't mean the economic community will not be in a good shape. in miami, or jacksonville - it's a smart investment. some things are not changing. the big effort we are looking for is for americans to be trading, producing and consuming more. >> this is infrastructure, it's hard to put a return on investment. you see the upgrades. you mention savannah. miami, and the bayonne bridge in new york. but the fact is what is - who is really going to get the benefit from this early. norfolk has a report accommodating super ships. >> there's a few ports on the east coast that we expected to be open, when the canal opens, extended to 2016 due to construction and legal kerfuffle. we have new york, norfolk, miami with their new investment, and baltimore as well. savannah has been the fastest growing port. jackson and boston are winners. the biggest participation winner can be nimy. they have had great support. you mentioned in the opening video, interim enhancements on the dock side and the land side to smooth traffic in the community. and connect maimy to the rest of the country versus competitors. >> the single biggest winner is along the gulf coast. soya bean producers and other product may ship more goods south. again, feeding no the asian appetites, instead of being imported - this is an exports. >> you mentioned where a container comes off the ship and becomes a truck or railcar. let's talk about trucking and rail. there'll be people worried they are not going to ship goods from the west coast to the east coast. will rail prices become cheaper? >> yes, there's great coverage about how rail terms, the large class oneforms may look to -- class one firms, may look to lower the rates to carry more traffic across what is called the american land bridge. it's important to note that there's a concerted effort by freight rail to hold on to the longer distance business. the longer they haul it, the more money they make. rail will be involved, including the east coast, the longer travels have something for them. too much attention has been solely focussed on the coast coast to lose business. >> if you are not watching this or following the story, is this going to be transparent to consumers. different? >> we'll probably not notice. the best hope is a silent wind, $0.05, $0.10 off a product in the grocery store, making up these numbers. within reasons, consumer electronics. it will be unspoken. that will be the name of the game. there's a cliche that freight doesn't vote, you don't notice it until there's a problem. let's say the west coast strikes, the east coast from previously. in some ways you don't want to know about freight. for business it's a big deal, and understanding how smoothly the transactions can be made are massive, and especially for the opportunity for american exporters, having bigger amounts of good, whether it is grains to advance products to the growing middle classes in asia. the panama is a generational investment and we'll see a generation to see full returns. there's no question that the american economy benefits. >> it's great to point occupant the export opportunities. specialist. next - housing market starting to recover. investors are going elsewhere >> a shocking america tonight investigative report... >> you take someones hopes and dreams of childhood, and then out right steal their money >> wishing to start a family >> we lost over $20,000 trying to do surrogacy in mexico >> but left with broken hearts and empty pockets >> how much money do you owe people >> around $350,000 >> praying on the vulnerable >> i have nothing to hide, if i was a scam artist, i would have cut and run from here >> surrogacy inc. an american tonight investigative report only on al jazeera america >> we're here in the vortex. only on al jazeera america. after a brutal winter the housing market showed renewed life. the recovery is not as strong as hoped. especially with mortgage rates cheap, and a strengthening job market. new and used home sales are running behind last year's pace, we are on the road to recovery, and people, president obama, say institutional investors are to thank for that. in the last two years they spent billions buying up hundreds of thousands of distressed single family homes and turning them into rentals. now that the prices are stabilizing. institutional investors slowed buying. they are going else were. there's term it's caughting home price appreciation to slow down in hot markets. after double-digit home aprooshz in the last year, is it a bad thing. [ auction call ] >> reporter: this was the scene when dozens of institutional investors convened to buy up hundreds of single family homes in a single afternoon. >> sold subject to receipt of funds. >> reporter: since 2011 institutional investors spent upwards of $50 billion, buying 386 family homes. the home sales have declined. blackstone, for example, the largest of the institutional investors tells "real money," it's acquisitions are down 70% since last year. >> particularly in some of the hottest markets where the institutional investors started out. they are pulling out. >> reporter: there could be a downside for investors pulling back. when properties were sold, when investors stop buying, prices fall. we are seeing home price prooshzs slow down. the question is is that going to be a soft landing or will we see markets. the home price index shows that nationally home values have been appreciating since 2009. in markets like phone. hit hard by the foreclosure crisis investor purchasing is down 14% from last year when buying was at its peak. home appreciation values went from 30% last year to 6% in may. >> 6% home price appreciation is good. the question is how far will that fall as the players pull out even more. >> analysts say there are other factors to take into account for the slowing of home aprooshz. >> institutional investor interests is one of many factors to the broader housing market slow down, which includes higher mortgage rates and less affordability. that's the show for tonight. coming up next week on "real money" - jobs. the employment picture has been improving, but there's more behind the numbers. we tell you where the jobs are and who is hiring. that's if for me. thanks for joining us. [ ♪ music ] ♪ >> announcer: this is al jazeera. ♪ hello there and welcome to the news hour and i'm at the headquarters in doha, median unconditional cease fire in gaza as the shelling goes on. more palestinian children are killed and wounded on the festival of eat. the u.n. says the shooting down of a malaysia passenger plane over ukraine may be a war crime.
as london goes into tier 3, other areas of england are hoping to be moved down — following a review today of covid restrictions. 9—year—old ella kissi—debrah died in 2013 — an inquest has found that air pollution did contribute to her death. a little light at the end of the covid tunnel — look what happened when a music teacher took her lessons online. christmas isn't cancelled — but leaders across the uk want us all to be very careful. borisjohnson has urged people to think hard before meeting family and friends over the festive period, saying they should exercise "extreme caution". he told a news conference at downing street that the decision to ease covid restrictions for five days would remain in place, but added that the situation was more challenging than when the rules were first set. he said, a smaller christmas is going to be safer christmas and a shorter christmas is a safer christmas. on a similar note, england's chief medical officer professor chris whitty said there were four things to think about in order to reduce the risk, keeping it small, short, local and to be thinking of the vulnerable. in wales the government will make it law that the christmas bubbles are restricted to two households, whereas the rest of the uk will keep it to a maximum of three. we'll have more on how the advice differs from nation to nation in a moment, but first here's more of what the prime minister had to say earlier. having looked at the latest data with our colleagues in the devolved administrations — scotland, wales, northern ireland — we have decided that the overall situation is, alas, more challenging than we'd hoped when we first set the rules. so, while it would not be right, we think, to criminalise people who have made plans and simply want to spend time with their loved ones, we are collectively — across the uk, governments at every level — asking you to think hard and in detail about the days ahead, and whether you can do more to protect yourself and others. we are keeping the laws the same, but we all want to send the same message — a smaller christmas is going to be a safer christmas, and a shorter christmas is a safer christmas. england's chief medical officer chris whitty repeated the message to keep it small, short and local and urged people to think about the most vulnerable who might be receiving the vaccine soon. it's very important to situate the decisions that people are taking and the actions that people take over the next 2—3 weeks in the fact that we do have a vaccine that will be protecting the most vulnerable to a very high degree of protection in the next 2—3 months. and that subsequently, as the vaccine is rolled out to the general population, the risk of coronavirus circulating will begin to go down. so we are tantalizingly close to the stage where anybody who gets into trouble as a result of actions this christmas would've been protected in the very near future. so it is very important people think about that when they make decisions over the next few weeks. our political correspondent, jonathan blake is at westminster for us now. we are already seeing divergences, jonathan, different rules depending where you live, labour and the last half—hour saying, here, he where you live, labour and the last half—hoursaying, here, he thinks borisjohnson half—hoursaying, here, he thinks boris johnson might have half—hoursaying, here, he thinks borisjohnson might have to go further. yes, jane, that consistency and clarity that we had from the decision by the government here at westminster and the devolved administrations around the uk last month to offer that five—day relaxation of the rules over christmas has frayed somewhat, and we are now hearing a much stronger, stricter message coming from the prime minister, boris johnson, stricter message coming from the prime minister, borisjohnson, as you heard there, and the government's in wales and scotland and almost certainly in northern ireland, although, we haven't heard much detailfrom there ireland, although, we haven't heard much detail from there today. the laws will remain the same everywhere, it seems, except wales, which is moving too tighten them up and only allow two households to mix, plus one person in a support bubble with either of those two households, but borisjohnson said there about the laws would not change in england, but he urged people to treat the ability to meet up people to treat the ability to meet up with up to three households over those five days as maximums, not targets to aim for, and he urged people to think carefully about seeing elderly people and travelling from high to low prevalence of the virus areas as well as avoiding staying overnight where at all possible. now, this has come in the wa ke possible. now, this has come in the wake of criticism and pressure on the government to strengthen the rules over christmas and change the approach, because as we have seen over the last few weeks, dramatic rises and coronavirus cases in some areas large parts of the country being put under tighter restrictions than they were previously, and calls for this christmas period to be rethought. the rules, as i say will stay largely the same, but never the less, labour are saying that the prime minister should have gone further and should have been clearer in his message. here is the shadow of secretary. welcome i think the prime minister was confusing this afternoon at his press conference , was confusing this afternoon at his press conference, seeming to say to the country that the five—day easing is staying in place, but don't take advantage of them. the last thing we needed was more confusion. we needed clarity today. sadly, the pharisees —— the virus is getting out of control again. we are not going into the christmas period with the buffer sewn, the headroom that we were promised from the prime minister and matt hancock. a tiered system has not done enough to contain the virus to the extent to which they told us away. we'd still not got the tracing, the testing, the isolation regime in place that is necessary. we would have liked to have seen a toughening up today from the prime minister, perhaps something along the lines that we've seen in wales today around reducing the household mixing 22 households. the nhs is really worried, doctors and nurses oi'i really worried, doctors and nurses on our really worried, doctors and nurses on our words and our busy hospitals really, really worried, and i think the prime minister, i think he's going to have to go further in the coming days. so labour predicting that they may have to shift the guidance yet again, we will wait and see what happens, but thereof the government here at westminster and the devolved administrations around the devolved administrations around the uk have been treading a fine line, because there's been an a cce pta nce line, because there's been an acceptance throughout that people would've wanted the opportunity to meet with family over christmas after such a difficult year, and may well have taken it upon themselves to do that anyway and break whatever rules were in place. so there was a feeling that a relaxation of some sorts was needed, but it's clear that the situation is very different now to when that agreement was put in place. the prime minister, boris johnson, agreement was put in place. the prime minister, borisjohnson, the end of his news conference this evening, as he often likes to do, tried to offer some optimism inside that next christmas, things will be largely back to normal. it was back injuly that largely back to normal. it was back in july that he largely back to normal. it was back injuly that he said that we could expect a significant return to normality by this christmas and people will be able to decide for themselves whether that's turned out to be the case or not. jonathan blake, thank you very much for now. let's pick up with a lot of what we've been talking about, and particularly what we heard with our health correspondent, anna collinson whojoins me now. a lwa ys always interesting to listen to professor chris whitty at these conferences, and he was stressing come i thought it was interesting that he said, just because you can do something doesn't mean that you should. and that was the sort of essence of what he was driving up this afternoon. absolutely. it was a real message of caution. we heard it on monday at the downing street briefing with chris whitty, and we heard it again today even more. yeah, they were really keen to get that across, and they wanted to get real advice. i mean, that across, and they wanted to get realadvice. i mean, ithink the thing that's what's happened is they have not been able to do a u—turn on the rules, so instead, what they're trying to do is provide people with the advice and tools that they can do to protect themselves and protect their loved ones, and chris whitty has asked people to keep gathering short and to keep them small. so small numbers of people for a short amount of time, not those five days, because both of those things can reduce the chance of transmission. there is still a risk. reduce the chance of transmission. there is stilla risk. he's reduce the chance of transmission. there is still a risk. he's also asked for people to try and keep it local if possible, because there are big concerns about people travelling from one end of the uk to another and potentially taking the virus with them. he's also asked people to ta ke with them. he's also asked people to take about the vulnerable, even if, in your christmas bubble, there is fio in your christmas bubble, there is no one who is vulnerable, you may pass the virus on who they may pass the virus on to someone who is honourable, so we all have a role to play in this. and he's really sort of emphasising that point as we go in to the next week. i mean, it's only seven days until that window opens, and another thing that boris johnson added, was that if you are planning to carry on with your plans, you should start, you know, changing your behaviour now, reducing the amount of people you're coming into contact with. and we have heard from wales, the first minister, mark drakeford, saying it will be put into law that actually, the rules there are not three households can meet, but only two households can meet, but only two households can meet, and we know that part of the considerations here is how the nhs is faring in different parts of the country, so what do the figures tell us about the situation in wales? welcome at this update is particularly significant because there's been a big talk of the uk doing every thing together and working together, this isa together and working together, this is a real step away from that with wales saying, no, this is what we are going to do to apply to our country. actually, in the past half— hour since that announcement has been made, we've had a look at the data. and if you take a look at the data. and if you take a look at the figures, the number of people in hospital in wales are actually higher now than they were at the first peak of the first wave in april, they are around 2000. now, when you add in nine covert patients, it means overall, nearly one in five beds are free, and that's much better than what you have in england, but as we know, the coronavirus is unpredictable, and also, these figures cover the whole of wales, they don't take into account problem areas, hotspots, where there is real pressure on services and we are seeing that in south wales, including areas like we nt south wales, including areas like went and newport. we have been told services in those areas and some services in those areas and some services anyway are under extreme pressure with limited numbers of beds, but also staff who are feeling the pressure and are tired after a really traumatic and difficult year. all right, anna, for now, you very much. let's talk about those issues that we've been talking about there. as i say, the welsh government has changed the law to only allow two households to meet over the festive period. wales' first minister mark drakeford has said the rules will come into force on december 28, when the country goes into a full lockdown with restrictions applying to holiday accommodation and travel across wales. let's hear some of what he had to say. the situation we are facing is extremely serious, and i have to tell you today that the welsh government has made the decision that we must move to alert level four and tighten the restrictions to control the spread of coronavirus and save lives. this new set of higher—level restrictions will apply to the whole of wales. i am making this announcement today to give everybody the most notice we can of the changes that will follow. all of this means that all non—essential retail, including close contact services and all leisure and fitness centres, will close at the end of trading on christmas eve. all hospitality premises will close from 6pm on christmas day. and on december 28, at the end of the five—day christmas period, tighter restrictions for household mixing, staying at home, holiday accommodation and travel will come into force. we'll be speaking the wales economy minister ken skates just after 5:30pm. so that's coming up in a little while. as i say, scotland' first minister nicola sturgeon has issued fresh advice for people meeting up at christmas. at her daily briefing, she said if people feel it is "essential" to meet with others indoors, she said this should be for as short as possible, preferably for one day only and not overnight. she also said her government intends to issue strengthened guidance on christmas coronavirus regulation relaxations later today. let's hear it some of what nicola sturgeon had to say. the safest way to spend christmas this year — for you and for those you love — is to stay within your own household and within your own home. and my strong recommendation is that this is what you should do, if at all possible. any interaction you do have with another household should — if at all possible — be outdoors, but if you do consider it essential to meet indoors with someone from another household, you should limit both the duration and the numbers as much as possible. and this point i want to stress in particular, the five day relaxation is a window of opportunity during which you can meet. it's not a period that we think it is safe or sensible to get together for. you should see it as a maximum, not a target. my recommendation is that if you do form a bubble, you should not meet up with people in it any more than on one day over that period if possible, and you shouldn't stay overnight, unless it is unavoidable. you should also limit numbers as far as possible, three households is a maximum that tries to account for the fact that families come in all shapes and sizes, but two would be better. in short, if you have to form a bubble, keep it as small as possible. in scotland, we have already advised an overall limit of eight people. and i recommend you stay firmly in that. if you do feel you need to form a bubble, the smaller the better. lastly, we will recommend against travel from high prevalence to low prevalence areas of the uk and we will issue more detail on that shortly. nicola sturgeon, we have been reflecting on the variations, depending on which part of the uk you live in, just to bring you a little bit of information coming through from northern ireland's health minister in the last little while, robin swan reiterating, essentially, borisjohnson‘s message that's, in fact, essentially, borisjohnson‘s message that's, infact, i essentially, borisjohnson‘s message that's, in fact, i think this is what chris whitty said, i think him ifi what chris whitty said, i think him if i was listening to the news conference accurately, just because you can do something, doesn't mean you can do something, doesn't mean you have to do it. chris whitty and certainly made comments along those lines. he urged people in northern ireland to simply walk away if something makes you feel uncomfortable when mixing with families this christmas. he says listen to the message that comes from our front—line workers who really need you to do what we are asking at this moment in time. so, i don't think from everything and reading there that there is any specifics that are different from what boris johnson specifics that are different from what borisjohnson has been outlining, but those are the latest m essa 9 es outlining, but those are the latest messages coming through from northern ireland's health minister. so, asi northern ireland's health minister. so, as i keep saying, it does vary slightly depending which part of the uk you live in, but certainly come out that news conference with boris johnson in the last hour or two, there has certainly been a shift in tone and that emphasis on keeping christmas celebration small and short. let's discuss it all with linda who is professor of public health at the university of edinburgh. good afternoon. afternoon, jane. your thoughts about a shift in tone, at least, trying to remind people to keep things short and sweet. what do you think about that? well, i think this is really difficult. all the people that you've had on the programme from i think this afternoon have been saying similar things. and itjust shows what a difficult situation the uk is in, how badly handled in many ways this pandemic has been in terms of addressing it, buti pandemic has been in terms of addressing it, but i think now we arejust addressing it, but i think now we are just absolutely having to roll back, because the situation is much worse. they are recognising that this easing was not a good idea, but because it's so late now, jane, they cannot penalise people for taking advantage of its, or i don't think that would be fair, so instead what you are getting is a very clear messaging, in other words, you may be allowed to do this, but actually, we are strongly of eyes laying against it. it's tricky though, is dipped, because of people were listening to that thought, well, i booked my train fare ticket three weeks ago in good faith and its cost mea weeks ago in good faith and its cost me a lot of money and i want to see my parents who i haven't seen for months, it's that's, well, it's a personal dilemma, isn't it? well, i think what we are hearing today has placed a huge... it's shifted from what the government is telling you what the government is telling you what to do to actually british public community to make your own decisions, that's what's happened. it's a huge wave of responsibility on the public now. you are spot on, that young professional whose booked his ticket to come from london back up his ticket to come from london back up to edinburgh, of course he will still want to come and i think many people will do that, but on the other hand, there will be some who may be haven't made decisions yet or are not planning to move around the country, and those instances, i think, it's really important that those people make a decision not to mix particularly intergenerational he and you are going to hear so many of us just repeating that in the next few days because, you know, the real risk that we face to the nhs and also tougher restrictions potentially after christmas and in january, not just for wales, potentially after christmas and in january, notjust forwales, but across big parts took not parts of uk. i thought it was interesting that the prime minister reminded us of the briefing that one in three of everybody who is infected with covid actually doesn't have any symptoms. so, of course, you can spread accidentally, you don't realise. i wonder if that's a statistic we all need to hear a little more often. absolutely. i think that's why more a symptom addict of those tests aren't perfect, but they are hoping to find cases. i think we need to recognise that it is something that spreads and people are unaware of it. in relation to the christmas decisions, i think that's important for everyone to think about. there was a question of the briefing around care home visits, i think chris would explain very carefully why those are still incredibly risky. i think if we think about mixing over christmas again because of the weight of responsibility is now back on the public to imagine that if we do see another the relative and we might pass and i'm com pletely relative and we might pass and i'm completely unaware when we are just a few months away from that relative being protected would be coming you know, really poor decision, i think. and when we have some of the really quite last—minute changes that we are having, for example, reflecting are having, for example, reflecting a lot today on wales's decision to put into law that can actually commute can only meet with two households over christmas now not three as people had originally been told they could plan for. does that sort of action help? well,... your reaction there suggests mu don't think it does. ijust reaction there suggests mu don't think it does. i just think it's difficult for the public. most of my work is in behaviour, and behavioural sciences, and i think all of the scientists have been saying throughout this, don't blame people, don't use appearance of approach, make sure there's care it's not just approach, make sure there's care it's notjust a stick, so i have no idea how the welsh government will enforce that, that's the first thing i will say, the second thing i will say is that, you know, mixed m essa 9 es say is that, you know, mixed messages around the uk are difficult. so i think the best that government can do now given this really u nfortu nate government can do now given this really unfortunate situation that we are and is just to be very very clear and transparent with the public about what they are recommending and give people the information they need to make those decisions, and it think some of my collea g u es decisions, and it think some of my colleagues have suggested, which i think is a lovely idea, extra public holidays next year when we are through more of this to recognise the huge sacrifices people have made and to allow families to more safely then. really interesting. let's put that point about public holidays to some politicians later on. that's a good thought. thank you very much indeed. always good to talk to, thank you very much professor linda from edinburgh university, of course. this morning ten million people in london and some surrounding areas moved into tier 3 — the toughest level of restrictions in england — to try to tackle a recent spike in cases in the capital. later today the government will review the tiered system elsewhere in england before announcing any changes tomorrow. one place hoping to move down from tier 3 restrictions is stratford—upon—avon from where phil mackie sent this report. this is stratford's most famous landmark, the royal shakespeare theatre. with very low infection rates in the town, they'd expected to be in tier 2 and open but because other towns and cities nearby had higher rates, it went into tier 3. it was really upsetting. we've obviously had a very tough year in the performing arts, it's been no exception here in stratford. we normally welcome 1,500 people a night to this amazing complex of theatres. we've lost 86% of our income, so actually to get to the end of the year, we were just about to open theatres again to audiences in person, and we had to cancel that. so we are going on with work that we can stream online but we haven't been able to have audiences in the building yet, which incredibly upsetting. there are more swans than people at the moment by the river avon. prospects for the town look as bleak as the weather, unless there is an easing of restrictions. even on a cold, wet december day, stratford would normally have many thousands of visitors, either coming to the theatre or the town's many attractions, but because it's in tier 3, they can't open and the visitors haven't come which is having a massive effect on the town's economy. the pandemic never seems to end. at the arden hotel, they are getting ready in case they can reopen this weekend, but it may not be worth it, especially if tougher restrictions come back in injanuary. we need to be looking slightly more long—term, in terms of understanding what the strategy is for hospitality. we probably need a minister for hospitality to help us manage our way out of what will be a really tough position. the same concerns are being expressed across england. in manchester, they've endured restrictions longer than most. there is a strong case now for a substantial part of greater manchester to be in tier2. and bear in mind, people here have been under restrictions for four and a half months and that has to be taken into consideration when these decisions are made. for now in stratford, everything remains on hold, but there is hope that restrictions will be eased by christmas. phil mackie, bbc news, stratford—upon—avon. the time is 25 past 5pm. let's turn toa the time is 25 past 5pm. let's turn to a few other stories away from coronavirus today, because a court in france has handed down jail sentences of up to 30 years in the trial of suspected accomplices of islamist militants who carried out deadly attacks on a jewish supermarket and the satirical magazine charlie hebdo in 2015seventeen let's get more from hugh schofield. explain what happened in court. let's just remind ourselves, let'sjust remind ourselves, this trial was of 14 people who are the kind of backroom allegedly of the attacks which sort of shook france and the world injanuary 2015, the attack on charlie dove with the journalist and cartoonist killed, and then thejewish hostages killed at the supermarket. in this trial, they were trying to establish that this network of 1a people had been involved in providing logistical support, guns to the man who carried out the jewish supermarket attack. he was killed, as with the attackers in the charlie hedbo affair. what the court found at the end was yes, they were all guilty and one man in particular was found guilty of complicity. so he knew, he was part of the conspiracy and has got 30 yea rs of the conspiracy and has got 30 years injail. another man who of the conspiracy and has got 30 years in jail. another man who fled to syria around the time was given a life sentence, but it's unlikely he will be coming back because he's believed to have died. the widow of the man was also given 30 years and she's fled to syria as well, but some of the lesser figures, this is quite interesting, people who shifted guns around, petty criminals in their own right with long criminal records but not for terrorism, the court decided that that was not enough evidence in their case to substantiate the prosecutions view that they were guilty of terrorism because they should've known what the guns were intended for. the court decided that they probably didn't know what they we re they probably didn't know what they were intended for, just doing what they normally did as petty criminals, and therefore, their sentences were reduced and the terrorism aspect of the charges against these seven were removed. all rights, hugh, thank you very much. you schofield there in paris. 9—year—old ella adoo—kissi—debrah is the first person in the uk to have air pollution exposure recorded as their medical cause of death. the coroner ruled that pollution made a material contribution as she suffered a fatal asthma attack in february 2013. her mother said her daughter finally got the justice "she so deserved". jon donnison reports. for the first few years of her life, ella kissi—debrah had been a healthy and active young girl. but after a chest infection, she developed acute asthma. she was hospitalised around 30 times over three years. and died in 2013, just nine years old. the following year an inquest concluded she died of acute respiratory failure and severe asthma. but ella lived just yards from the busy south circular road in south london. she walked to school along it. her family have always believed air pollution directly contributed to her death. and after new medical evidence showed there was a direct link, the high court ordered a fresh inquest. her mother rosamond arrived in court this morning for the conclusion of that second inquest and finally she got what she had been hoping for. 7 million people around the world die every year courtesy of air pollution and this was about my daughter, getting air pollution on the death certificate as we finally have and we have got the justice for her which she so deserved but also it is about other children as we walk around our cities still. the assistant coroner philip barlow concluded the official medical because of her death should be recorded as acute respiratory failure and severe asthma contributed to by excessive exposure to air pollution. the first time such a cause of death has been recorded. and this case could set a precedent, the inquest heard that air pollution is a contributing factor to tens of thousands of premature deaths in the uk each year. we have known for many years that air pollution is a huge cause of ill health but this really is a landmark ruling today because it is the very first time air pollution has been put on a death certificate. we think it should herald a seismic shift in the action that government and clinicians and health professionals take to address the problem. addressing her mother to date the assistant coroner referred to a photograph of the young girl that had been displayed in court throughout the inquest. he remarked that she had very bright brown eyes and a smile go bigger than the photograph itself. jon donnison, bbc news in south london. hello this is bbc news with jane hill. the headlines: new guidance about who you see and what you do over christmas — the welsh government says only two households will be allowed to meet over christmas and the nation will go intoa over christmas and the nation will go into a full lockdown from december 28. people in scotland are being advised to meet for only one day over christmas. as london goes into tier 3 other areas of england are hoping to be moved down — following a review today of covid restrictions nine year old ella kissi—debrah died in 2013 — an inquest has found that air pollution did contribute to her death. we will be talking about the changes to the rules, particularly in wales, over christmas, next half hour, and we will be talking about heathrow and a third runway, but first we have the sporting news. we start with some breaking news — west brom have named sam allardyce as their new head coach, following the sacking of slaven bilic earlier today. the baggies become the eighth premier league club he's taken charge of, with over 500 premier league games the 66—year—old's agreed an 18 month contract and will take training tomorrow ahead of sunday's home game against aston villa. former west brom player peter odemwingie has been giving giving us his reaction in the last few minutes. sam is april the manager, he knows the game, and because he has been out of a job. along i am sure he has studied all the squads that have been struggling from the beginning of the season —— san is a proven manager. i think he has a plan right away, he must have convinced them that he can change things around. i am sure it was not an easy decision for west brom. sam allardyce will take west brom to liverpool next weekend — tottenham are the visitors to anfield tonight. only goal difference separates the sides at the top of the table with liverpool's efforts to keep hold of their title hampered so far this season by injuries to several senior players. some have returned. others, like virgil van dijk, joe gomez, diego jota, thiago and james milner, haven't. but spurs bossjose mourinho says too much is being made of it. alison macro is not injured. alexander—arnold is not injured. joel matip, i believe is going to play. that e—mail is not injured. robertson is not injured. anderson is not injured, when belgium is not injured, mo salah is not injured, semi—new is not injured, mane is not injured. van dijk is injured, and van dijk is a very good player, of course, give me the liverpool list of injuries and compare that list of injuries with what is the best liverpool team. trials of concussion substitues have been approved by football's lawmakers ifab this afternoon. it means from next month clubs could get an additional substitution for incidents like this. you might remember wolves striker rauljiminez suffered a fractured skull in a clash of heads with arsenal's david luiz, who carried on playing for a while, after being treated on the touchline. it's set to be introduced by the fa for its competitions from january — with the premier league voting on it tomorrow. it has been a long time coming. i think there has been a general reluctance, particularly with football in general and particularly the fa, to acknowledge there is even a problem, and i do not think they have done enough or acted quickly enough. and it took an horrific incident like this one to actually make them do something. sunderland have postponed their next three matches and close their training —— training ground for three days following a coronavirus outbreak. the game at shrewsbury town and how much is against blackpool until 30 have been called off. eight players missed the draw with wimbledon last night, the game went ahead despite one player testing positive for covid—19 on monday but a further four cases have been confirmed amongst players and staff at the training base. and exeter‘s heineken champions cup match at toulouse on sunday has been cancelled because of a covid—19 outbreak at the chiefs. glasgow's home game against lyon on saturday is also off — because they played exeter last weekend. 20 warriors players are now self—isolating. our rugby union correspondent chris jones has been telling me european bosses are now going to meet to decide what happens next. because of the fixture congestion, very little to no chance against can be rearranged, so now a european cup panel will meet to decide how, whether and why 18 could all could not fulfil the fixture and therefore how to allocate a match point, so more news on that in due course, what happens to the match points that would have been played for in these games, but confirmation that glasgow against lyon and toulouse against exeter have both been this weekend. —— both been cancelled. that's all the sport for now. you can find more on all those stories on the bbc sport website. there will be more on the reaction to sam alla rdyce's there will be more on the reaction to sam allardyce's appointment and there will be more of that at 6:30pm too. so let's recap and look at what rules are in place over the christmas period. it depends where you live. the relaxation of rules allow three households to mix indoors — and they can be from different nations, regions or tiers. however the welsh government will make it law that only two households can mix, although a single person can form a bubble with two other homes. in scotland, the number of people within the bubble has been limited to eight — but children under 12 do not count toward that number. this measures will be place for five days over the festive period, between the 23rd and 27th of december. although the scottish government is recommending that people should only meet other households on one of those days. nicola sturgeon said to keep it short if you possibly can. and people in northern ireland get an extra day either side of the five, to allow for travel time. i hope you were taking notes, it is quite complicated and hard to keep up. you are forgiven if you cannot remember it all. we have heard from the first minister of wales this afternoon, let's now speak to wales' ministers of the economy, ken skates. a very good evening. changes in wales, tighter rules, only two households, not three, for example, and the lockdown from the 28th, my goodness. you are minister for the economy, you must be concerned about the impact? of course, there are many homes we are seeing through the course of this pandemic. economic harm included. that is why the welsh government has made available more than £2 billion in addition to the uk governmentjob than £2 billion in addition to the uk government job retention than £2 billion in addition to the uk governmentjob retention and employment support schemes, to get through these crises, the most comprehensive and generous support for businesses anywhere in the uk, including during this period of restrictions alone more than £3110 million of support for businesses, particularly in the hospitality sector. later this week we will announce further support for businesses that will be effected during the forthcoming logjam, including crucially the retail sector, but we are doing all we can to ensure economic harm is unlimited during the terrible pandemic —— during the terrible pandemic —— during the terrible pandemic —— during the forthcoming lockdown. when you say there will be further announcements later in the week, are you promising extra funding on top of what businesses can already apply for? because i am sure you know the welsh retail consortium says that gru nts welsh retail consortium says that grunts are helpful but they do not make upfor grunts are helpful but they do not make up for lost sales, the maths just does not add up. that is why we will be making available a significant sum of money, equally we are asking businesses and citizens to put off some of the activities they would normally undertake just after christmas until hopefully later in january or a after christmas until hopefully later injanuary or a little later than that, depending on the three—week with you. in the meantime, we will support businesses without significant sum of money we will announce this week. is there a risk that, sadly, despite the effo rts risk that, sadly, despite the efforts he will be talking about in coming days, some businesses simply will not be able to weather this, another lockdown from the 28, their business model does not add up, they will fold, meaning peoples jobs business model does not add up, they will fold, meaning peoplesjobs and livelihoods? we do not underestimate the terrible strain that business owners and leaders say to right now. at the start of the pandemic we said we we re at the start of the pandemic we said we were dual because you make sure it you had a good job all good business in 2019, you would have it in 2021-- business in 2019, you would have it in 2021—— we said we would business in 2019, you would have it in 2021 —— we said we would try to make sure that if you had. that is why we have put in the extra money to what the uk government is doing with the job to what the uk government is doing with thejob retention scheme etc. there is a possibility that some businesses will bail as a consequence but we are trying to do everything to provide a safe wright through to 2021, to the springtime where we hope vaccination will be rolled out, enabling us to resume something of normality. what do you say to people who had said that throughout this we have done the right thing, maybe someone who runs a cafe or a small local shop, we have put measures in place and carried out every safety measure you could imagine, we havejournalled the right things and we are still being penalised, and in the run—up to christmas and into the january sales ? to christmas and into the january sales? people who had everything right? businesses have responded incredibly well, there has been unheroic efforts across wales and all of the uk in responding to the pandemic, but the fact is that infection rates continue to write —— there has been some heroic efforts. there is an equivalent of five general hospitals. people with covid symptoms, a record number of people in intensive care in the second weight so we must reduce the prospects of people mixing where the infection can be passed on, meaning u nfortu nately we had infection can be passed on, meaning unfortunately we had to make difficult decisions. but we make than in the full knowledge that financial resource and support must be made available, and that is why we are offering the most general and comprehensive support package to businesses anywhere in the united kingdom. perhaps we will speak about that later in the week, thank you, ken skates, ministerfor the economy for wales. we said we would talk about heathrow and a potential third runway too. the supreme court has ruled that plans to build a third runway at heathrow airport are lawful. the scheme had been blocked by the appeal court, which said the government's airports strategy didn't meet up—to—date uk climate targets. the firm behind heathrow can now seek permission to go ahead with the runway. i will be sticking to one guest with 18 interesting days in the next you minutes. but first they support from our transport correspondent caroline davies. it is just over there where that tall tree without leaves on is... justine bailey has lived on the border of heathrow airport for 25 years. the proposed third runway would be opposite her house. the runway would be about where the bungalows, you can see some chimneys at the end of the road. that is literally where the runway would be. so you wouldn't be able to stand here without ear defenders on if they were using the runway. today's judgment was not what she was hoping for. it won't be possible to go on living here because the air will be far too polluted. it will be far too noisy. most of my neighbours will have had their houses bulldozed and will have had to move. protesters gathered outside the supreme court before this morning's verdict. today's result is a setback for environmental campaigners as well as residential groups. well, it is very disappointing, and very disappointing for our membership across london and the south—east. and the government advisers on the implementation of our carbon commitments has stated that were heathrow to expand, it would almost certainly mean restrictions in aviation activity in other parts of the country. possibly even the closure of some regional airports. the village of harmondsworth has lived with the threat of partial demolition for years. opponents of the third runway say that climate change concerns and even covid have weakened the argument for it. others disagree. as we come out of covid we are going to have to re—establish international trading connections across the world. and having a major airport which can actually reach every capital city, everywhere in the globe, is going to be crucial to london's advantage. and in a post brexit world we are going to have to do that even more. while heathrow say today's judgment is the right result for the country, labour has argued the proposals don't pass their tests on air quality, noise pollution and delivering countrywide economic benefits. the government has said they are seriously considering the court'sjudgement. today's decision is not the end of the process and both sides have said they will fight on. caroline davies, bbc news. let's speak to surinder arora, who owns a string of airport hotels including the renaissance at heathrow. he's also part of heathrow west — one of the groups looking to lead any expansion of the airport. good afternoon. did afternoon. because it will presumably inspire today ‘s willing? i am very pleased, i think last year everyone was very disappointed at the decision by the court of appeal and they thought it was wrong, thankfully the supreme court has given the right decision, except, i would say, we are now in a com pletely except, i would say, we are now in a completely different world to where we we re completely different world to where we were in 2019 or early 2020. well, aren't we? to you think there is even the new canal for it? legally it can happen but is there even the media any more? —— do you think there is even the need for it any more? i was always saying that we should always be world leaders to make sure that we are top of the world from a capacity point of view, service and delivery, but after the horrid year we have had, i really believe that the days are gone for another surge when date —— runway, certainly for at least a decade, probably in my lifetime. i cannot see a third runway happening. there are ways we can make the airport more efficient, even heathrow airport themselves had said that when they built terminal four on the south of the southern runway it was built in the wrong place, so any time an aircraft has to use the noted runway they have to cross the live runway, which reduces the number of slots. that is where we came up last year, in the last three orfour came up last year, in the last three or four years came up last year, in the last three orfour years we said came up last year, in the last three or four years we said heathrow, which is mainly now and by the spanish, chinese and the qataris, heathrow really needs competition. it isa heathrow really needs competition. it is a huge business and we will be coming in and saying we think it is a completely different world now, we can be more efficient, we can still build our new terminal that we previously proposed for a0 million passengers to the west of p5, heathrow west, but now the numbers should be more like 18 to 20 million, and it is at heathrow to decide whether they want to continue with terminal four decide whether they want to continue with terminalfour or put decide whether they want to continue with terminal four or put other use intimate and that would make a big difference for the airlines, the passengers. i have always said that competition is a good thing and i never had a problem if someone wants to build an hotel next to mine, because competition is good for the consumer, for the airline and for the nation. it is really interesting to talk to you, i apologise hugely but we are out of time, i apologise because we have not really fully disgusted, but thank you for your time, surinder arora, disgusted, but thank you for your time, surinderarora, good to disgusted, but thank you for your time, surinder arora, good to talk to you and apologies for that —— we have not really fully discussed it. much more to talk about to do with heathrow, very different times we are living in, as surinder arora said. the foreign secretary dominic raab has conceded that a post brexit free—trade agreement with india could take many years, but said the mutual benefits of securing one would be "enormous". in an interview with the bbc, during a three day trip to india he also said the uk government wouldn't be afraid of raising human rights concerns relating to india, but said the government wouldn't allow that to "eclipse broader co—operation." mr raab met with the indian pm narendra modi today, and also announced a new vaccine partnership with the country. he was speaking to our south asia correspondent rajini vaidya nathan. well, there is a huge amount of collaboration we are doing together, and from our research right the way through to the international level we wa nt through to the international level we want to be cooperating with india to make sure we can vaccinate our own people in india and the uk and also so we can expand and ensure global equitable access to the vaccine for the most vulnerable countries around the world. as you know, the oxford vaccine is being mass produced by an indian —based institute. have you turn a deal with them to secure a supply of vaccines for the them to secure a supply of vaccines forthe uk? them to secure a supply of vaccines for the uk? we are constantly discussing the question of supply, as you probably know we had seven secured supplies at the moment as of now which will secure 315 million vaccines within the uk, but particularly with our indian friends we're always to cf we can go further. not there yet? we are collaborating carefully making sure all of our needs, as well as those of india, are catered for. trade is a big subject, foreign secretary. the british public was told that leaving the eu would free the uk to secure free trade deals around the world, with countries like india, but did your government oversell how easy it would be to do those deals? i think we express it exactly as you have, there is an opportunity but opportunities need to be grasped. one of the things i have spoken with the prime minister about it today and the foreign minister today was the road map, the milestones to liberalising and deepening our trade in the interest of both indian and british businesses and consumers. free—trade negotiations are always a haggle, we would expect that to take place on both sides, but looking at thejoint mutual place on both sides, but looking at the joint mutual benefits up to a ten, 20 or 30 year period, they are enormous. a free-trade agreement with india could take as long as a decade? a free-trade agreement is really important that there are milestones to reaching that, sometimes it can take as long as you suggested but i think with political will, and my senses there is political will on both sides, we can try to get it much, much quicker. moving on to the issue of democratic values, international human rights groups are greatly concerned that indian does not policies have put minority groups, especially muslims, under increasing pressure. —— indian policies. we are talking about brutal crackdowns against government critics, arbitrary shutdowns, increased media censorship and a decline in press freedom. how much does that concern you? in a big picture context, india is the biggest democracy in the world with a vibrant culture of debate, protest, we have seen much recently and in many ways it is an example to the world. there are always cases of human rights issues, we know about them, they are reported to me, we had domestic constituencies that raise them, i had a candid conversation with officials in the indian government this week. but equally we recognise that the democratic... depth and breadth of india is pretty much unrivalled in this region and i think it is important to set against that context. you just met prime minister modi, did you raise any of these concerns? as you would expect, i have raised the human rights issues and concerns, that is myjob, you would expect that you take place at a professional level, i discuss them with the foreign minister yesterday and we will continue to waste those issues. if it has not been raised with the prime minister, one might say is that because it is sensitive to bring up when you are trying to strike a trade? with a close when one partner you can have candid conversations about difficult issues and we will not shrink from doing that —— with a close friend or partner. but we will not allow that to eclipse the broader cooperation and bilateral agreements. but we do not deny there are issues. foreign secretary dominic raab on his trip to india. one more story before the weather. teaching children music has been a life passion for emma hutchinson. so when lockdown was announced her shift to online teaching — and the impact this had on her children — was stark. her efforts to draw out something positive from the experience led to her writing a christmas song — that to her surprise has gone global. here's emma's story. # la, la, la—la, la, la... # when lockdown was announced, i was at home, in devon. our whole professional world turned around overnight to zoom lessons. it's lovely to see you here today. are you ready to roll? # something is tapping in my box...# a lot of families said, oh, this is good fun, let's all have a go at doing the digital thing. but i think, after several weeks, you could get a sense of screen fatigue. smash! over the nine months, we noticed that many of our children are more reserved. they're less responsive to engaging with each other. language delay is becoming more evidenced. # christmas is here again, all around the world...# i was thinking, how can i make this a positive experience? how can i write something that is going to look forward to the future? i wrote four christmas songs. candles are hot, you cannot touch them but a light permeates. in the same way that music is heard, but you cannot touch music. that was the seat of the sun. —— the seed of the song. i gave my song to moonbug entertainment as part of a collective of christmas songs for children to enjoy. and then they got back in touch and said, thank you very much, we'd like to use christmas is here again as our christmas single. # christmas bells are ring, ring ringing # everyone is sing, sing, singing... i was surprised but alighted, because the sun holds a lot of poignancy for me. —— surprised but delighted. being deaf, i have to say, has been initially a nightmare. and then it became quite funny. having a mask on, suddenly i couldn't see their face. and i rely a lot on lip—reading. # love and peace, as my candle burns # singing my christmas song. # if we can hold a candle up together on christmas eve, wouldn't that make a difference? just so they know they are not alone. # everyone is sing, sing, singing # whoever you are, wherever you roam # ringa—ringa, ring, ding, ding. # hello, there. the weather is remaining very u nsettled, the weather is remaining very unsettled, wet and windy weather swept in from the atlantic. the rain cleared from the south—west to get a say lovely sunset in bristol, but if we look at the atlantic, there is more cloud towards the west, that will commence in some western areas later. that cloud gave us the rain earlier, that weather front is taking that weather into the note three and the low pressure is moving away. the wet weather we saw across northern ireland and scotland is turning showery. some showers across the western side of the uk particularly, but clearer spells will develop and it will turn cooler too. not that cold for the time of year, temperatures could be as low as 30a. tomorrow morning it is a mixture of sunny spells and scattered showers, most showers in the west, particularly western scotland. those showers is through the day, we will see rain arriving in northern ireland in the afternoon. as the wetter weather arrives we will see those winds picking up and turning rather blustery. further is to, a decent day, sunshine across eastern scotla nd day, sunshine across eastern scotland and eastern england —— further east, a decent day. that first weather front will bring wet weather into the uk tomorrow night. the rain will peter out towards the south—east and the next one is hot on its hills, so continuing the u nsettled on its hills, so continuing the unsettled theme, dampness in eastern areas, more persistent rain in the west, turning heavier over the hills in the south—west of england. some brighter skies for a while perhaps in north—eastern scotland and north—eastern england, a strong southerly wind, we could make 15 degrees in the north—east of wales. very mild air probably will not last too much longer because it will be swept away during saturday. we start to introduce something cooler. not cold by any means, and there will be rain to clear away from eastern england. a mixture of sunshine and showers for the weekend, most of the showers for the weekend, most of the showers in the west. today at six — the message gets tougher on who you see and what you do over christmas whatever the rules, whatever the guidance — leaders across the uk want us to exercise extereme caution. we all want to send the same message. a smaller christmas is going to be a safer christmas, and a shorter christmas is a safer christmas. what does it mean for you and your family as you plan for a covid christmas? a festive season like no other. it isa it is a bit risky giving five days. we had three pesos together but it willjust be as now.
armored russian personnel carriers. the red cross is looking at those truck to say make sure they contain only humanitarian supplies. >> flash flooding leads to a dangerous mud slide in nevada. the streets in one community turned into rocky, muddy rivers. >> good morning. welcome to al jazeera america. i'm del walters. >> i'm stephanie sy. there is a new calm in ferguson, missouri. protestors were out in force last night but it was very different from the explosive scenes we saw on wednesday. >> the missouri state police in charge of security, taking off their gas masks, walking with the demonstrators. >> in new york, boston and other cities, thousands gathered to protest the killing of michael brown and protest the police tactics in ferguson. diane he is at her brook is live there for us. why that this shift in tone in the protests yesterday? >> it was really incredible. i was out here until 10:00 last night. it was almost like a festival. this was by far the largest protest we've seen all week. in spite of that, we really didn't see that many police officers. >> what a difference 24 hours makes. thursday night saw peaceful protests in ferguson, missouri, cars honked support as thousands marched in the streets. gone were the police, with their military style weapons and armored vehicles. >> i'm standing in the median. there are people behind me, people to my right. everything has been peaceful so far. >> the scene was very different from the three previous nights, when protests over the police smoothing of an unarmed black teen got out of control. the change in tone came after the governor put the state lease in charge. >> lately, it's been looking like a war zone and that's unacceptable. we're going to need to rejoin hands and rebuild the trust that was lost. >> this was the war zone, police firing rubber bullets and tear gas at crowds of demonstrators. our own aljazeera journalists were caught in the middle of all of it. a reporter was about to file a report when a tear gas fired near him. a couple of journalist covering the protest were arrested. >> journalists should not be arrested trying to do their jobs and report to the american people what they see on the ground. >> the new man in charge of keeping the peace walked with protestors himself. captain ronald johnson of the highway patrol group up in ferguson. thursday he ordered the town's police to remove their gas masks. >> i think the american people realize we've got some wounds to he'll. there's a community that have some issues that they feel that haven't been addressed. >> one of those issues is the name of the police officer who killed 18-year-old michael brown. police have not released it, saying the officer has received death threats. captain johnson says that may soon change. >> i do believe that those dynamics will change within the next 24 hours. there is some discussion in at a arena talking about how to disseminate and put that information out. >> of course, johnson and other law enforcement are hoping that they can keep that peaceful momentum carried through the weekend. >> police said they are going to reveal the name of the officer involved in that shooting. is there any indication of when exactly that will be happening today? >> we don't know, stephanie. we've heard reports that i had could be today, tomorrow, it's a very fluid situation. police chief jackson in ferguson said he is taking that on a day by day basis. we really don't know when at this point that might happen. >> diane estherbrook in ferguson. >> we are live in miami, one of 90 cities that held vigils last night. what was the mood at the rally in miami last night? well, dell, it's clear that the death of michael brown has touched a nerve across the country and that was quite evident here in miami yesterday. community organizers say eight people were arrested. people were not only protesting the death of michael brown, they were protesting the death of eric garner, the stanton island man placed in a chokehold by the nypd during an attempted arrest and died and they are also very upset about the death of an 18-year-old graffiti artist killed by a miami police officer last august. this artist is israel hernandez, he was caught spray painting an abandoned mcdonald's. police chase him and he was tasered and died. protestors have been upset throughout the year, because no charges have been filed that in case. they actually marshed to the u.s. attorney's office demand to go meet with the u.s. attorney. they didn't get that meeting. as i said, an estimated eight people were arrested. >> we can see from the video from the rally that people are holding their hands up in the air. explain to our audience what that means. >> just to recab, brown and a friend were walking from a convenience store, walking in the middle of the street when an officer asked them to get on the sidewalk. now, what happens next is a big question but what we're hearing from a friend and a witness is that brown actually had his hands up when a police officer shot and killed him. the ferguson police chief has said that brown attacked the officer involved and he has a swollen face to show for it. >> police and protestors clashing in ferguson as we have seen earlier in the week, 90 rallies yesterday. any violence at any of those other protests? >> you know, just as it seems that there was a turning point last night in ferguson, things were peaceful, as diane mentioned. it appears that things were peaceful throughout the country last night, but keep in mind, tomorrow is the one week anniversary of brown's death and there is expected to be a rally in ferguson and perhaps protests elsewhere this weekend. >> live in miami this morning, thank you very much. >> coming up, we'll go back to ferguson and talk to a resident there who has been at those protests all week long. >> this morning, iraqi lawmakers setting up a new government as al-malaki steps down. we are in washington with lisa stark. what's next or iraq's new prime minister? >> he now has to pick his cabinet, form his own government. he has promised it will be an inclusive government and the u.s. has made it clear they think that is critical. under the iraqi constitution, he now has 30 days to put his government together. >> after weeks of refusing to step aside, iraqi prime minister al-malaki has resigned. >> i'm withdrawing my nomination for the post of prime minister in favor of the dear brother for the sake of the best interests of the country. >> malaki has been under intense pressure to step down. >> president obama said the yazidis stranded on the mountain were faced with a terrible choice, starve or be slaughtered. he believes u.s. military airstrikes and drops of food and water made the difference. >> we broke the isil siege of mount sinjar, we helped people reached safety and helped save main innocent lives. president obama said the situation on mount sinjar is greatly improving. the u.s. estimates there are 4,000 to 5,000 refugees still trapped on the mountainside. the president said u.s. aid drops will stop and military advisors will leave iraq, but the u.s. mission is not over. >> we will continue airstrikes to protect our people and facilities in iraq. >> u.s. jets continued to pound islamic state targets. the turks hope to drive the islamic state fighters out of heavily populated areas in northern iraq. >> these airstrikes have been very effective, although they are limited, but we are grateful for what has taken place and hope it will continue. >> while they will continue, the pentagon says it's up to the iraqis to face the islamic state fighters. >> we stand by and we're willing to help and coordinate a little bit with them but we're as the president said, we are not going to become the iraqi air force. >> the u.s. has launched more than two dozen airstrikes so far. as the president said, they will continue. their stated mission now going forward is just to protect u.s. personnel and fashion sits. that is in erbil, the kurdish capital and baghdad. >> what can you tell us about the growing humanitarian crisis in iraq? >> well, the u.n. estimates that there are over a million. in fact, 1.2 million persons are replaced. refugees in their own country. they've been driven out of their cities by the advance of the islamic state fighters, declared a level three humanitarian emergency, the highest level. i should say that even though the white house in hi insists te siege of mount sinjar is over, there is dispute about that. we'll have to see how that plays out in the days ahead. >> as you heard lisa say the new prime is inheriting a deeply divided country. we report on what it's going to take to unify the country. >> maliki has stepped aside, paving the way for a peaceful transition of power. there was a dangerous political standoff in baghdad and a lot of fears that violence could be used, but now maliki is stepping aside, realizing that he's increasingly isolated. he won't be able to govern, even his own community, the shia have turned against him. the political parties have thrown their weights behind the newly nominated prime minister, but there are a lot of challenges ahead for the prime minister. he's going to have to create a broad based government, inclusive government where all of iraq's political factions are represented. it's not just a question of representation. it is also a question of giving these different iraqi communities a real voice, a real voice in governing their country and. if you talk to iraqi sunnis, a lot of them who have been involved in the protest movement months before the islamic state group took over territory, they will tell you they wanted to see a regime change. they believe policies were sectarian, the security forces of the army were not loyal to the iraqi state, but loyal to one man and one sect, so a lot of challenges ahead. this is a good beginning, positive step. iraqis are welcoming this. after they formed this inclusive government, there is a war. iraqis are now seeing the islamic state group as a threat. there is no other way to fight this group unless they unit. even the kurds in the force are at war, facing the same threat from the islamic state group. >> even though maliki is stepping aside, he will still be a member of parliament. political analysts say he will remain involved in iraqi politics. >> thousands of israelis taking to the streets, demanding the israeli government not end its offensive against gaza. there is caution optimism that a long term peace can be reached. >> a russian aid convoy is right now being inspected on the ukrainian border. russian armored personnel carriers have been spotted nearby, as well. >> they want to make sure the trucks are loaded with humanitarian supplies, not weapons or russian troops for an invasion. >> the physical damage of war around slovyansk is obvious. all of this can be radar in time. what won't be easy to fix are all the broken lives. this is boreries and his wife maria and this picture is of their son. he disappeared several weeks ago when the separatists arrested him. they said he was stealing. some say he executed them in a crude type of justice. maria has been looking for him everywhere. she said she saw him in her dreams last night and believes he must be alive. >> when the separatists were in charge, this building was their military headquarters. it was partially destroyed in the fighting, but we were allowed inside. this was the office of their commander, igor strelkov and these are the cellars where he kept his prisoners. slovyansk was a city of fear and what people dreaded above all was being brought to these rooms where people were held at hostages and interrogated. on the wall, traces of what looked like blood and here, marks, perhaps where someone has been counting off the days. a pro ukrainian activist was held in that cellar for 10 days and thought he would die there. >> they tied my hands together and blindfolded me. they beat me with a rubber stick. they kicked me. they put a bucket over my head and i struggled to breathe. >> this man told me his friend was murdered by separatists because they discovered he was giving information to the ukrainian army. >> at first i hoped they would be punished but i lose hope every day. police didn't do anything when the separatists were in charge and still don't do anything. >> we went to the farm where he said his friend was murdered. neighbors confirmed the story, but his family did not want to talk to us. back in slovyansk, 14 bodies were found in this grave. only four have been identified, apparently killed because a separatist leader wants to take over their business. we don't know who the other 10 bodies belong to, but this is a town where many are still looking for answers. aljazeera, slovyansk. >> sue turtin joins us from brussels, where the european union is holding that emergency meeting this morning. the eu slapping russia with the tough sanctions this month. how do they plan on dealing with russia this time? >> well, the european union countries are calling for russia to have some sort of meaningful dialogue both with the e.u. and also with kiev, with the ukrainian government, but they're saying at the same time that they're not seeing that from russia. they're seeing russia isolated itself politically and economically. on the back of the sanctions imposed in the past week, russia has itself banned food coming out of the e.u., which is having quite an impact here on member countries and their farmers who send many, many products into russia, so it's really affecting the marketplace. we just heard from the swedish foreign minister saying he believes that russia is escalating the crisis at the same time that those humanitarian aid food convoys, trucks are on the way down to the border there, we were seeing pictures of trucks going in crossing the border. he said there is evidence that those trucks were carrying weapons. the message from the e.u. is you have to stop arming the russian accept and come to the negotiating table. >> let's switch gears to iraq, pressure mounting for the 28 member block to supply the peshmerga with european weapons. which countries have begun arming the peshmerga? >> the french are leading the charge on this, the french foreign minister was in here last sunday. he came out guns blazing, if you like, saying we really now need to arm the perk mega. indeed, there was a meeting in brussels early in the week when they said it's up to individual countries, the french came out straight away and said in the coming hours, we will send lethal weapons into the kurdish fighters. the rest of the european countries have been dragging their heels behind this push. they all say they very much support the u.s. airstrikes in various degrees. we're hearing that the germans are sending non-lethal assistance, flak jackets and armored vehicles and the germans various weapons to the peshmerga, although they're not willing to back the actual buying and purchasing and selling of weapons. we're seeing a difference in different countries, some really are backing this push to arm them, others standing back a little, worrying, really, where the end user is to where these weapons might end up and in who's hands. >> sue, thank you very much. >> you see that multi-lateral approach to iraq. back in this country, the monsoon flow is again causing trouble in the west. let's bring in meteorologist nicole mitchell. good morning, nicole. >> good morning. overall, the rain has been beneficial but sometimes when storms set up, depending where and how long, and the geography of the area, they cause problems. yesterday as this moved through nevada and we'll see this more across the four corners region today, this is boulder city, just outside of las vegas near lake immediate. this is a street. the lake is a recreation area, the water's been in places like that. >> the other thing we are seeing is more pull out from the north. we've had a system moving through into the midsection of the country. some places we are going to get heavy rain, dakotas starting to push down later in the day. northern parts of missouri could pick up a couple of inches as this moves through, so changes in what has been a pleasant forecast. here's the core of that rain that moves through. on the backside, it's been pleasant in chicago that that that could change this. that's the core that have cooler air. i'll talk about that little built of cool air in just a few minutes. >> ok, nicole mitchell, thank you. >> what a difference a day makes. a very different night in ferguson, missouri. >> protests were peaceful after state police took over patrols. we'll talk to a local resident who has been watching the demonstration. >> the latest ceasefire in gaza, holding steady in day two, but protests are being held on both sides of the border. why some are saying the extended peace is actually a bad thing. >> a fire engine red ferrari sets a record at auction. we'll tell you about the car's past and how much someone shelled out for it. >> $2,150,000,000. >> what that very large figure has to do with two soft drink powerhouses. >> today's big number, pretty big. $2,150,000,000. >> that is much coca-cola is paying for a piece of monster beverage. >> that will give it a 15.7 stakes in monster, a bigger share of the growing energy drink market. >> investors pleads with the news, shares shot up 20% in after hours trading. >> up about 1%. >> the word health organization saying the ebola outbreak in west africa vastly underestimated. more than a thousand people they say died from the virus but say thousands more are infected. the world health organization say it may take announce slow the outbreak. the u.s. has begun evacuating families in sierra leone. >> two missing am issue sisters have been found. they were 12 and six, miss forego more than 24 hours before someone just dropped them off and then the girls asked a stranger for help. they were healthy. they were returned to their families. >> ferguson, missouri waking up after another night of protest, but this time no reports of violence. the missouri highway patrol is in charge of security. officers were told to put down those gas masks. some walked with the demonstrators, including the new police commander. joe harris is the midwest bureau chief for courthouse news service and joins us now from ferguson, missouri. thanks so much for being with us. i understand that you grew up about an hour from ferguson. what has it been like for you to witness what has happened? >> unreal, you're in the middle of america, and growing up, i heard about -- i saw the 1992 riots in los angeles. we think that's an east or west coast thing and all of a sudden it's in your hometown. it's been a very surreal week. >> we have some video, joe, that you shot last night, which depict as really different mood than the previous night when tear gas and rubber bullets were fired by police. can you describe the atmosphere last night? >> it was festive. i mean, it was almost one big party. the mood was completely different. when we got here on wednesday night, you could cut the tension in the air with a knife, you know, it was just a matter of when, not if something would happen. last night was completely different, and you know, the police were marshing with the protestors. the police were mingling with the protestorses, talking to them, listening to them and they were actually talking to the media, too. it was a shocking turn of events. >> what shifted, joe? >> i thought it was very -- >> what changed? >> well, the shift, the shift was governor jay nixon stepping in and putting the highway patrol in, and, you know, putting in new leadership, specifically african-american leadership. i talked to several members of the -- several protestors and members of this community and i asked them about that. they said yes, you know, we feel more comfortable with an african-american police officer, because they look like us, they understand where we're coming from and, you know, we understand where they're coming from. they know our culture. it was very apparent last night and the crowd really took pride in police be itself last night. >> who are these protestors that you're meeting and are they all local residents and is there a racial divide that is evident among the protestors? >> almost to a man, the protestors have told me this s a race issue, this is an us versus the police issue. i've had several people tell me that the ferguson police department is an equal opportunity harasser, they harass, blacks, whites la teen knows. they want to make sure that the word knows it's not a racial issue, it's a police issue. last night was the most diverse group of protestors that we've seen this week. there were people of all different nationalities, ages, religions, ethnicities, side by side, peacefully protesting, and the run image that i'll take from the night are the black panthers in the middle of the road directing traffic, keeping traffic flowing, helping police to protest. it was very eye opening and much -- a lot better than the night before. >> really interesting snapshot you're providing us. joe harris with courthouse news it was in ferguson. thanks a lot. >> tony stewart not going to be on the track this weekend. he will skip sunday's race, after he struck and killed a fellow driver, kevin ward, jr., stewart has not been charged with any crime. >> a state of emergency this morning in new hampshire over synthetic marijuana being sold in convenience stores. at least 44 people now overdosing on the product that is called smack. most of them just this week, none has died. the order gives the state health officials fewer confiscate the drug. >> it looks like kids bubble gum. >> that's part of the problem. >> we have unusual weather lately. >> it feels like fall right now, even though we're in the middle of august. >> you might want that light sweater heading into work this morning, for example. you can drop it by the end of the day, but in chicago, 53, detroit 50's. a lot of these temperatures are 10 degrees below average and through the rest of the day. chicago's average high is 82, not too far off. the next round of storms comes in and then a little cooler after that one. most of the day time temperatures feel not too bad. we have more of that northerly flow. even place like new york, below average, 75 degrees, still comfortable. >> sweater weather, nicole thanks. >> a change of tactics overnight in ferguson. you heard it, black panthers helping police direct traffic. police join them. what the man in charge of security says is needed to keep the peace. >> two dozen miners underground in china, the race to drain the mine and lift them to safety. >> the panama canal celebrating 100 years today. we'll show you a new project that could threaten its future. >> one restaurant says no sharing. what's behind that new call in our headlines from around the world. >> coming up in this half hour, protesting the ceasefire. some people on both sides of the israel-gaza border of uneasy about the extended truce. >> a surprising revelation about robin williams and his health and how it contributed to his suicide. >> residents living near a massive sinkhole. a scientist will explain if you can tell if there is one lurking near your home. >> a look at top stories this morning, iraqi lawmakers putting together a new government now a prime minister al-maliki agreed to step down. the u.s. is dropping aid to northern iraq, the u.n. saying 1.2 million iraqis have fled their homes. >> inspectors in ukraine pouring over a russian convoy. there are reports in brussels that weapons have been found on some trucks crossing the border. russian armored personnel carriers also have been spotted nearby. moscow insisted it only sent humanitarian aid for eastern cities. >> police plan to release the name of an officer who shot and killed an unarmed man in ferguson, missouri. police were told to take off their gas masks, leading the way. robert johnson said growing up in ferguson made a difference. >> i'm hope that go my words would provide a sense of calmness. when i got down to the crowd and had the opportunity to talk to the crowd and saw a bunch of friendly faces, a bunch of faces that i knew, we started seeing friends and people that you've seen in a community, there are community leaders there, i fold really relaxed from the onset. we need to continue to have open lines of communication, continue to be honest and clear in our mission here and questions that are being asked, we have to provide answers. i think it's important that african-americans and hispanics and other races that we get into law enforcement and become a part of the community that we serve. i think it's important to law enforcement that we reach out to all the different communities and do a better job of recruiting, starting in our grade schools and asking young men and women to join this profession of law enforcement, because i do think that race place an important part of me having the ability today to connect with the crowd out here. >> in our next hour, we're going to go back to ferguson for the latest on the pro tests there. we'll also talk to one of the marchers. >> it is also calm in gaza this morning, a from this jail ceasefire entering its second day. >> some hope for a long term peace deal, others are skeptical. more than 10,000 israelis gathering in tel-aviv to protest the truce. they want israel to restart its offensive. >> this man and his family drove from their home in southern israel to tel-aviv to deliver a message to their prime minister. rockets from gaza must stop. >> for the past month, we're getting on a daily basis missiles on our house. >> he and thousands of protestors are angry with the new five day truce currently in place between israel and hamas. they say any agreement with the palestinians can't be trusted. >> i don't believe in their agreements. we had so many agreements with the palestinians, with the hamas, especially, but every agreement was then broken. >> residents of israel's southern communities say thief endured years of rocket fire and silence repeatedly interrupting their lives. they say they no longer want to live with rockets landing in their playgrounds, schools and businesses. some of the demonstrators here say they're unhappy with the extended truce. they say now is the time for israel to show strength, and any diplomatic break through is a sign of weakness. >> most here are opposed to any dialogue with the palestinians. they don't think a long-term mess agreement will ensure independence or justice from either side. their placards say israel should show no mercy and say the high civilian casualties is regrettable and only can be continued with a continued blockade with gaza. >> they won't have any choice but giving up. >> he hopes this demonstration will pressure the israeli government to continue its offense on gaza. he said israel's only strategy should be a military and not diplomatic one. aljazeera, tel-aviv. >> more than 1900 palestinians and more than 60 israelis have been killed since the conflict began. >> clashes have been reported in pakistan, after shots were fired at government opposition leader happening during a massive protest marsh that toward islamabad. opposition groups are calling on the current prime to resign. >> our colleague was arrested last august, jailed without charges for more than 10 months, reds in june after he started a hunger strike in january. he kits the international outrage over his arrest for his freedom. >> if it was not because of the support of people for this aspect, the freedom of press, it wouldn't have been possible for me to get out of jail and i'm looking at fact that so many other people are on hunger strike in egypt and people have been detained every day. >> he said he'll dedicate his life to freedom of the press. three other colleagues are still in prison in egypt. aljazeera america rejects all the charges against them and demand their immediate release. >> pope francis celebrated mass at a south korean stadium today. in attendance, survivors and family members of those who died in that terrible ferry accident. the leader of the catholic church also met with young people as a local shrine. >> there is as revelation from the widow of robin williams over what she says may have been troubling him in the days leading up to his suicide. >> she said her husband was not just suffering from repeated bouts of depression. we have the details. >> people like michael j. fox, muhammed ali have more in common with robin williams than celebrity. according had williams' widow, they also shared parkinson's disease. >> according to his widow, his suicide could have been more than his struggle to depression and substance abuse, saying: >> parkinson's disease is an incurable brain disregard that causes muscle tremors and causes using the arms and legs more difficult. more than 1 million americans currently live with the disease. experts say depression and parkinson's exist in the same position, the two maladies could make each other worse. >> the link is not fully understood from a pathologic standpoint, however we do know they're clearly linked, that the rate of depression in people with parkinson's disease is far higher than the general population. >> actor michael j. fox was a long time friend of williams and lived with parkinson's for more than 20 years. he tweeted the following: >> williams' youngest son tweeted this on thursday: >> susan schneider ended her statement with this: >> del and steph. >> john henry smith, thank you. >> rescue workers in china trying to save 16 miners trapped in a flooded coal mine. according to chinese state media, the crews pulled more than 40 workers out. there are no details at this hour as to what caused that flooding. >> a utah family is asking how someone made a potentially fatal mistake as a restaurant. jen harding is in critical condition. she drank lye that had been mixed into herrized tea supposed to suburbs of salt lake city. >> she took a sip and immediately coughed it out and spat it out. her first words to her husband, she said i think i just drank acid. either the store manager or the employee put six cups of this white powder substance into thized tea mixer. >> the powder looks like sugar. police are treating what happened as an accident. the restaurant owner is cooperating with the investigation. >> let's look at other headlines making news around the world. an arizona prison inmate making headlines. he has filed over 5,000 lawsuits about the prison food, asking for a trillion dollars in damage. gold or cold hard cash would be good. he said the food stinks. >> i wonder what he was expecting the food would taste like in prison. >> steeple chase winner in the european athletics championships was stripped of his gold medal. the french man was disequal filed for performing a shirtless celebration. he actually took off his shirt in the final leg of the race. that is against the rules. he has a history of sort of acting out. he once punched a mascot on the track. it was a 14-year-old wearing a costume. >> i would take off my shirt, as well. >> please don't. >> i would be penalized or exactly the opposite reason. restaurants are fed up with people sharing meals. according to mashable, the patrons are taking up space and eating away their profits, the problem is, a lot of couples, myself included, we order one meal because the meals are so large and we share them. they say what's happening is people are coming in, getting a glass of water and dessert and taking up space. >> i am definitely guilty of just ordering tap water at many restaurants. >> i am, too. >> profits are down and sales slumping at wal-mart. >> we ask about whether or not the retail giant's problems affected the rest of the economy. ♪ ♪ >> a san francisco treat, the last show ever at candlestick park, courtesy of beatles legend, paul mccartney. >> millions use anti perspirants to hide odor, but is it doing more harm than good? surprising answers in our discovery of the day. >> great video. [ laughter ] @j >> this, is what we do. >> al jazeera america. >> time now for our discovery of the day, anti perspirants are supposed to make you smell better, but a new study finds they may have the opposite effect. >> researchers found roll ons and sprays can change the bacteria in your arm pits, so the number of odor causing bacteria jumped dramatically. >> they tested deodorants that mask the smell and don't prevent sweating. it was found those were not a problem. >> today is the 100 anniversary of the panama canal. it changed trade around the globe creating a short cut between the atlantic and pacific. here is a live look at the revamped panama canal. it has undergone an expansion to accommodate larger ships. the more than $5 billion project has been marred with a series of problems. we look at a new canal in nicaragua that could create competition. >> for a century, the two great cab nationals, panama and suez have global economy possible. shipping goods cheap. before the canals, products being moved had to go around the capes at the bottom of south africa through some of the roughest seas in the word. panama hopes to open a third parallel route by 2013, sending ships through a series of locks. each vessel can only be 1200 feet long. the suez canal is egypt's primary source of income and egypt will try to double capacity next year. it is flat and can hold ships of any length no deeper man 65 feet. nicaragua announced a 100 year partnership with a chinese company to build the word's biggest canal for the biggest ships. the canal, three times longer than the panama could cost $49 billion when it opens in september of 2019. it could change the cost of everything from diaper to say diesel fuel. let's look at how big these ships. behind me in the port of oakland is a container ship that weighs 22,500 tons. that means that it can move into almost any canal in the world. now, the panama canal can hold ships a lot larger, as large as 70,000 tons, but the thing is, the new nicaragua canal will in theory be able to hold so-called cape sized ships which can way as much as 400,000 tons. what no one knows is what effect these big ships might have. time is money in this business. the port of rotterdam, europe's largest, unloads ships using robots. size is also money. the canals determine that, as well. ships are categorized panamaics or suez nacs depending which they can fit through. the distance is roughly the same. any ship losing port typically chooses the suez leaving hong kong. a chinese operated canal will likely discount for ships. most are so big they go around the capes. if the new canal allows them through, that could drive down oil prices around the world. the biggest container shipping company abandoned the panama in 2013 for the suez, because the egyptian canal carries bigger ships. if the nicaraguan can move larger shies, that's the end of a century old battle or perhaps the beginning of a new one. >> in our next hour, we'll introduce to you a woman who helps guide some of the worlds biggest ships through the panama canal. >> wal-mart sales were sluggish for the year. wal-mart has lowered its profit text. there are concerns that the woes could be contagious. what's going on at wal-mart? >> other things have not necessarily gone wal-mart's way. they had a triumphant run from the 1960's to the 1990's, but the center of buying moved urban and they're not really an urban story. we saw the rise of the dollar store. we saw heavy pressure come on the loafer income folks that never ended. >> you said they didn't embrace the on line consumer boom. >> they watched the first two generations come out and dance on their wind pipes and they've moved into the space aggressively. they made smart movers recently. >> you mentioned dollar store. why is it particularly a problem for wal-mart? >> wal-mart has had big box formats, dollar stores are small, urban and young people like the dollar store and it's convenient. you don't have to drive there, park there and wander. you can go around and everything in there is cheap and they have a cool merchandising mix. these various things came together with the shift back to urban areas that really hurt wal-mart, who will by the way be rolling out a smaller format which we think will be good to the company. >> what happened to brand loyalty, my mother and father shopped at wal-mart, is that a thing of the past? >> a lot of folks are under pressure to make the paycheck go as far as they can. which can cut into loyalty. wal-mart hasn't always made the most delightful experience for folks. >> is it contagious? are we going to see similar problems at target, for instance. >> target has really gone a different route. they've had their own serious traveils. there are places you go when you need a deal or want to deal. wal-mart's just a place you go when you want and you have to get the deal. i don't think that browsing wal-mart scene ever took off. >> are we then seeing the early stages of the death of wal-mart? >> i think we're seeing a troubling pattern. i think wal-mart will have a second or third act here. it is a big well capitalized company with good folks behind the driver's seat. until real wages go up in america and they haven't in a long time, wal-mart is going to remain under huge pressure in its operations. >> thank you very much. >> baseball owners selected league executive rob manfred to become the game's new commissioner. hess experience is labor relations and he has taken a strong stance against p.e.d.'s. he replaces bud selig, leaving after 22 years at the post. >> i have to say i'm tremendously honored by the confidence that the owners showed in me today, electing me to be the 10th commissioner of baseball. i agree with bill. i have very big shoes to fill in following commissioner selig. >> the 55-year-old beat out red sox chairman to become the new commissioner. >> paul mccartney, giving san francisco's candlestick park a final farewell. the stadium closed for good last night after mccartney's performance. ♪ close your eyes and i'll kiss you, tomorrow i'll miss you, remember i'll also be true ♪ >> love that song. the beatles played the final show of their last tour at candlestick. it was back in 1966. you probably remember it, del, as the stadium opened in 1960 and it was home to the city's beloved baseball giants and later the 49ers. it's where a sellout crowd was rocked by an earthquake during the 1989 world series. the story venued as the stick. it will be demolished to make way for a housing and retail development. what a sign of the times. >> what is sad is all of those things, the beatles arriving in the united states and who can forget joe montegna and the catches referred to in football. so many memories of that park, back to willie mays. >> a storied history. it will be missed. >> nicole mitchell back with another check of the weather. >> we made to it friday. >> there you go. [ laughter ] >> so a little bit of a weekend forecast, as we get you out the door and we do have more moisture coming into the midsection of the country. the drier weather for the northeast will abate today into tomorrow. still good points as we head toward the weekend. the core every possible heavier rain today and tomorrow, too, from the dakotas to missouri, tomorrow that shifts more into illinois, then a boundary through the south. places like florida, especially of the popup afternoon showers possible, still very dry for the northeast. tomorrow, some spottier moisture culls in. this isn't a washout, but watch for that a little more. we've been talking about that front that recently cleared through the east coast. that has kept temperatures cool. a few degrees below average, the core of the least, the southwest, phoenix 103 agrees. >> the entire nation feels like san francisco today, talking about candlestick. >> not too bad in some places. >> nicole mitchell, thanks. >> lift off for a space shuttle replica, a giant crane lifting the mock shutting on top of a real 747 at space center houston. the bowing jet was actually carrying shuttles back and forth to florida when they landed in other places. have ors will be able to board the shuttle to see what is inside. it went to new york city. >> a sweet ride with a not so sweet price tag. this 1952 ferrari set an auction record last night, selling for $38 million. it's one of only three dozen that were made. the car built to be raced and it was actually involved in a crash in 1962 that killed the driver. the classic car was then pain stainingingly rebuilt by got factory. >> do you drive it? >> i don't know. i think you leave it as a museum piece. >> local police departments armed to the teeth. a look into the federal prom providing them with military style equipment. >> a lawsuit filed by louisiana residents impacted by a huge sinkhole. we'll have details. >> we all live for the moment that's all i'm trying to do 15 stories, 1 incredible journey >> edge of eighteen priemer's september 7th only on al jazeera america >> hundreds of days in detention. >> al jazeera rejects all the charges and demands immediate release. >> thousands calling for their freedom. >> it's a clear violation of their human rights. >> we have strongly urged the government to release those journalists. >> journalism is not a crime. >> now available, the new al jazeea america mobile news app. get our exclusive in depth, reporting when you want it. a global perspective wherever you are. the major headlines in context. mashable says... you'll never miss the latest news >> they will continue looking for survivors... >> the potential for energy production is huge... >> no noise, no clutter, just real reporting. the new al jazeera america mobile app, available for your apple and android mobile device. download it now >> a night of peace and calm replacing outrage and violence in ferguson, missouri as people show solidarity and take to the streets. >> agents inspecting a cob vow in ukraine of what was supposed to be russian humanitarian aid. >> a state of emergency in new hampshire. more than 40 overdoses just this week linked to a synthetic marijuana like drug. state officials are sounding health alarms. >> buffet's bonanza, berkshire hathaway stock closing above $200,000 a share. putting buffet in an exclusive club of one. >> what a difference a day makes. 24 hours ago, ferguson's police chief described his city streets as a war zone. >> now exactly one day later, calm replacing tensions and tear gas. state troopers with soft hats replacing police decked out in all that military gear. good morning, welcome to al jazeera america. i'm del walters. >> i'm stephanie sy. >> after days of unrest, calm returns to ferguson, missouri. >> in part thanks to one man, an african-american state highway patrol captain, ron johnson, who is now in charge of security. he marshed along with the crowds protesting the police shooting death of michael brown. >> today we expect to learn the identity of the officer who shot the unarmed 18-year-old last saturday. brown's death and the subsequent protests have now led from rallies from coast-to-coast. >> we are in miami where one of those 90 rallies was held. we begin with diane h in missou. what is the situation now? >> it's very quiet, but it was a seismic shift last night from the prefer previous days. my colleagues likened it to mardi gras. this were thousands of people in the street, driving up and down the streets, honking their horns. there were people protesting -- i wouldn't say protesting, but rallying on the sidewalks. it was a dramatic shift. over the last 24 hours, i would say the change occurred in the last within a few hours. i was out in the afternoon across from the ferguson police department looking live shots all afternoon. there were protestors there and they were very angry about the way the brown investigation had been handled. by the time we got here in the evening, the mood had changed 180 degrees. it was really, really amazing. it was more bouyant, a spirit of cooperation. just within a few hours, the spirit changed here in ferguson. >> are they more confident this morning that they're going to learn the name of the officer who shot and killed michael brown? >> we believe so. we just put a call into the ferguson police department and they said that the name was going to be released sometime this morning. we've heard other media saying it was going to be at 8:00. they are telling us sometime this morning. captain johnson indicated the name would be released sooner versus later. >> let's talk about captain johnson. how big a difference is it that the man the governor put in charge is from ferguson and he is also a father? >> you're right. he grew up in the community. he knows the neighborhood. he was out and about last night talking people, shaking hands with people, telling the police officers to take their gas masks off and work with the community. you're right, being a father, i think has a lot to do with his acceptance here. >> when you see a picture like that, it reminds you sometimes it takes you back to your own kids and i have a son and it kind of took me back. i wanted to make sure that wasn't lost today, that the focus wasn't on me, the focus wasn't necessarily on the big crowds that were there, and, you know, just maybe michael's mom and dad and family members are watching and let them know that that's not forgotten. >> so very quiet here this morning and police, including captain johnson are hope that have that peace carries through the weekend. >> live in ferguson, missouri this morning, diane, thank you very much. >> natasha is live in miami, one of the 90 cities that held vigils last night. what wad mood at last night's rally there? >> good morning. people are reacting not only to the death of michael brown but to the deaths involving police officers in their own cities. here on miami beach, that death is of a man named 18-year-old israel hernandez, he is a fra feet tee artist whoo was tasered and killed by miami police last year during an attempted arrest. in that last year, there has been a lot of anger and yesterday, protestors marshed to the u.s. attorney's office. >> >> demonstrators called for an end to police brutality. >> there is no time like now. >> in washington, d.c., chants of hands up, don't shoot reverb rate the through the crowds. in chicago, demonstrators carried posters reading we stand with ferguson. >> i think it's beautiful that everybody gathered here in solidarity, however i feel as though it's not really going to bring much of a change. >> in new york, thousands marshed to times square where barricades were set up. the vigil began peacefully, but there was a tussle as protestors pushed against police. hundreds more gathered in portland oregon, forming a circle and holding hands. in new orleans. they raised voices in protest, and under the arch in st. louis, just north of ferguson, hundreds rallied with a group of clergy. smaller groups joined in in places likemont g.m.ary, alabama where they held a vigil to remember brown. back in miami, many refused to leave as they marshed to the federal building. >> organizers say at least eight people were arrested. >> protestors are upset because the officer in the graffiti case has not been investigated. one protestor vow that had their fight to bring awareness to this case will continue. >> are there morales planned nationwide? >> president obama responded after our crews were arrested in ferguson. >> in iraqi, a new government set up this morning. al-maliki has stepped down at prime minister. >> it follows weeks of political turmoil in iraq as they try to fight off the islamic state group. lisa is live in washington for us this morning. this is the day the u.s. has been waiting for. what are we hearing from the obama administration this morning? >> absolutely, del, the u.s. has made no secret of the fact that it wanted maliki to go. they saw him as a very divisive figure under intense pressure from both the united states and former allies both internationally and even internally. secretary of state john kerry this morning is saying in a statement that maliki's decision will set the stage for an historic and peaceful transition of power in iraq. president obama was speaking yesterday before maliki announced that he was stepping down, and he continued to push for a new government under the nominee for the prime minister,al abadi. >> we are urging iraqis to come together to turn the tide against isil above all by seizing the enormous opportunity of forming a new inclusive government under the leadership of prime minister designate abadi. >> the white house has said that about this new inclusive government is formed, it will offer more help to iraq, including militarily. >> what is ahead now for iraq's new prime minister? >> he was officially nominated monday, a few days ago, he has third days to put together his cabinet. he is a shiite and there's a lot of distrust among the sunnis and kurds. he has a big job ahead of him to try to unit the country. >> the president announced that the u.s. is ending that humanitarian aid. the u.n. saying more than 1 million iraqis are forced from their home and sinjar is not over. >> exactly. the humanitarian crisis definitely continuesen iraq and the president acknowledged that, saying the u.s. will help with humanitarian aid where it can, but the u.n. declared this a 113 humanitarian emergency. it's highest level, as you said, more than a million people displaced from their homes in iraq. there is sharp agreement about what's going on on the mountain, the white house saying the yazidis are in good shape. the u.n. disagree witness that. >> lisa, thank you very much. >> let's go now to sue turtan in brussels where an emergency meeting is being held on iraq this morning. you're getting information about that russian military convoy in the border of ukraine. what's the latest that you're hearing? >> we're hearing that the e.u. foreign ministers are all talking about it, because the swedish foreign minister when he arrived here for the emergency meeting in brussels, he came in saying we believe that the russians have been sending in a military convoy into ukraine all right this week, saying they have photographic evidence. we've seen some of the british press have photographs, and the reporters are talking about seeing this convoy. i should stress that this convoy is completely separately to the one of the 250 or so refrigerated trucks that were heading towards the border into ukraine and were held at the border and we believe are still held at the border carrying aid, this aid that president vladimir putin has made such a big deal of, saying the people in ukraine are desperate for. the british reports are saying this is a completely separate convoy they're seeing and believe it may be made up of armored personnel carriers and soft skinned military vehicles. the suspicion is that they were carrying weapons. >> how are european leaders in brussels reacting to this, what do they want to do about it? >> they are really calling for a deescalation of the crisis, and especially after the last three days when we've seen over 70 people killed in the donetsk area and over 120 or 130 or so injured. it really is a call for things are well be calmed down in the region. they're looking at the president to taking the lead at least on his side on this. they're seeing that he's isolating himself politically and economically. on the back of sanctions put on russia, russia has know imposed an agricultural food bans of imposed into russia from the e.u. countries and others, also. really we are seeing a tit for tat on that side of things. this is thinking that russia was taking to softer approach, vladimir putin saying he didn't want to isolate russia. that's what he's saying in public, but not what is happening on the roads from russia to ukraine according to the british press. >> dramatic fight in the ukrainian parliament, two lawmakers coming to blows because one promoted his nationalist ties. he got punched in the face. he's gotten into fights with several other lawmakers before. >> rallies in tel-aviv where thousands of israelis demanded the israeli government not end its offensive against hamas in gaza. negotiators trying to reach a deal on a longer term peace. >> no reports out of nigeria about boko haram abductions, residents saying fighters attacked a town killing six more people. they reportedly also kidnapped about 100 men and boys. the majority of the 200 girls abducted in april are still missing. >> back in the u.s., rainy weather is heading for the midwest this weekend. >> for more, we turn to our meteorologist nicole mitchell. good morning. >> good morning. already starting to see a little bit that have, it's been quiet recently, so this area that's weather pulling out of the rockies, all right showers this morning in applies like the dakotas that we're dealing with. as you can see, into iowa, later into the day. more into northern parts of missouri could be the core of heavier rain, places seeing an inch or two in this direction and anywhere up from the dakotas southward, that's where we're going to monitor that. as we get to the rest of the country today, that's the core of it, the east coast is still pretty much quiet, a little boundary over florida and that spotty area of the monsoon flow over the four corners region in parts of the west. the next couple days, it stays stuck. saturday, similar area, more rain moves into illinois, but this will be the core of our best chance for heavier rain. that's how we look as we get into saturday, light stuff up into the northeast that we might be dealing with. that means chicago, that's been cooler and sunny, well today, still more of that, but changing into some of those chances for thunderstorms, unfortunately right in time for the weekend. >> new hampshire, cracking down on synthetic marijuana declaring a state of emergency. 44 people overdosed on a product called smack, most of them just this week. none that died. the order gives state health officials the power to confiscate those drugs. >> the widow of robin williams is shedding new light on his final days, saying: williams hanged himself in his home tuesday. he had suffered severe depression. health experts say a diagnosis such as parkinson's could have worsened the effects of his depression. >> local police departments some say are armed for war. >> are they too quick to deploy resource he is. a look at why the mill stare style gear is needed in local communities and when it should be used. retired lieutenant will join us. >> the coast guard making a rescue at sea. what happened to this sea turtle, a video from citizen journalists. >> the scene in chicago that has caught everyone's attention. vé >> our uniforms have the same look at military uniforms, so they do have that look, but those are the uniforms we wear to protect our citizens when we have high risk operations. when you look at the times that we're in today, i can see the perceptions as looking like a military. >> speaking there, missouri highway patrol captain ron johnson, who is now in charge of security in ferguson, missouri. >> he is talking about that major question that has come out of the protests, a lot of people who saw wednesday's police reaction to the protestors want to know why small time police departments are outfitted with what appears to be riot gear in armored vehicles. >> a lot of police departments across the country are getting their supplies from the military. >> it looks like a war zone, but this was ferguson, missouri on wednesday night. tear gas, rubber bullets, smoke and flash grenades, all used against civilians, police confronting protestors in full battle gear. >> this kind of force once reserved for emergency situations when you're talking about hostage takings or active shooters has spread all over the country because a number of these federal policies and has become the default use of force in far too many situations. >> the federal policy is the defendant democratic's 1033 program, moving surplus war equipment to america's local police departments. the program started small. in the early 1990's, it supplied about a million dollars worth of equipment to forces each year, but it has exploded. so far this year, the value is already about $752 million, some $4.3 billion overall since 1997. the 1033 program supplied police with machine guns to helicopters, grenade launchers and heavily armored vehicles. st. louis county law enforcement agencies, those working in ferguson are among the more than 8,000 that have received equipment through the defense department. now, lawmakers from both sides of the aisle are calling for the program to be reigned in. in an op ed, republican senator rand paul called police militarization a very serious problem. democratic representative hank johnson proposed new legislation to demilitarize police forces. he wrote to his colleagues: the act would stop the pentagon from giving police automatic weapons, armored vehicles, drones and other equipment. the bill will be form ally introduced in september, too late to change what's going on in ferguson. >> russell is a retired army general. you may recall in 2005, he commanded joint task force katrina coordinating military relief efforts after that storm. he joins us from louisiana. good morning, general. >> good morning, how are you this morning? >> not too bad. first of all, your response to what you saw in ferguson. >> well, in the heat of the incidents the two previous nights, extreme use of what appeared to be the shock and awe of non-lethal weapons. i think people have come to realize that non-lethal weapons can appear and are lethal. they may not kill you but cause serious damage and harm, and they can actually incite people to almost panic and terrorize people and that was the purpose of these weapons. they are all over the country now in small police departments and they are available through grants that are given out through the department of homeland security. when those grants given, congressman and senators come to town and take the picture with the police chief, giving them a grant from home land security to buy stun grenades, to buy body armor. >> 30 years ago, the standard police issue weapon was a .38 snub-nosed resolver, now glocks, uzi sub machine guns. where does it stop? >> there were a couple of incidents over the year where gunman and bank robberies showed up and at some drug events and that equipment basically went to swat teams. as you can see over the last few days, you have entire police force outfitted in what was one time swat uniforms. since when did we put swat on the front end of a crowd control? i mean, their tactics, there are procedures that many law enforcement officers around the country would question, but the availability of these items they're using is enhanced through grants from homeland security and through the 1033 program. i think the legislators at the state and federal level are going to have to go back and look at building. they are the ones that authorized this. this didn't happen without their approval and they're going to have to roll this back. >> the departments keep asking for these. yesterday, the police chief said over and over again, he needs to protect his officers. are police now afraid of the public and putting their safety ahead of public safety? >> i don't know. you know, i'm not a law enforcement expert but i do know the impact of the weapons, i know the impact having taught supervisors program and the joint chiefs of staff civil support that there are a lot of things that you can do in your attitude when you're dealing with a crowd that can make the situation worse by inciting emotional response. in this particular case, i think two experts that has come on that have dealt with this and police chiefs, they've all agreed that this could have been handled differently and may have not incite the amount of emotional response and the negative response in reflection on a police department. >> is the difference in ferguson, missouri from last night to the night before a difference in good policing versus bad policing? >> i think it's the tactics that they were used, you know, tactics come from a greek word wimp is the arrangement of forces and the procedures that one might use. i think from an observer, a keen observer, who is trained in this, most of these experienced police captains are, they needed to use different tactics, change of tactics, embrace the people, show them that you are there to protect and serve, you're not there to intimidate them and telling them what to do for no apparent reason, like they dealt with the people from the press. if you deem with the press that way, you can imagine what they were doing with the people on the street. this police department, i can tell you, i saw the same thing in new orleans, they're probably running two or three days on very little street, highly stressed out, probably would reflect now and not do the same thing again, i hope they would not do the same thing again. >> thank you very much. coming up later in this hour, he is going to take us on a tour of the louisiana bayou, why he thinks industries there are destroying that area's natural beauty. these images we showed you in an earlier report and they are unforgettable. >> final military armies for an army general killed in afghanistan. major general harold green was laid to rest at arlington national cemetery. he was ambushed by an afghan soldier as a training center near kabul. he is the highest ranking military officer killed in having a. >> people swept off their feet, a tical coverage. that's a river, people on the walk way obviously knocked to the ground, unexpected. it's the shape of the river that often causes these surges, some waves up to nine feet. >> this looks like something went wrong, crowds fleeing the fireworks. look again, they are cheering and dancing around the fireworks. the annual festival in mexico celebrating the festive use of fireworks. it was quite the celebration. >> a different kind of rescue for the coast guard off the cape of new jersey, freeing an 800-pound sea turtle entangled in fishing gear. this actually happens often. the giant turtle swam away unharmed after being freed. >> let's get a look at the forecast across the nation, for that we turn to nicole mitchell. >> you can see they had nice sunny skies for the rescue out there. this morning, cool temperatures in chicago into the 50's. that's the cool air behind the front we saw recently that swept into portions of the east coast. it's comfortable, doesn't have a lot of humidity, but with 50s and as far north at 40s, you might want to light sweater heading out the door. eighty's and 90's where that front didn't go through through the south, still humid. back to you. >> freedom of the press called into question in ferguson, missouri. >> two print reporters, and aljazeera journalists hit with tear gas. the disturbing cases that have gained the attention of president obama. >> this is certainly left over from an era of abundance and we don't live in that era anymore and frankly haven't in several decades. >> california facing one of the worst droughts in history, yet the state doesn't know how much water every household uses. the efforts to fix that. >> one of the seven wonders of the world marking its 100th affairs, the panama canal paved the way for economic development across the globe. >> india celebrating independence day. >> young children paint their faces, and light candles to observe the countries breaking away from colonial britain. >> coming back with a live look at the panama canal, which celebrates its 100th anniversary today. we'll have a story about the people who keep the canal running. >> good morning, welcome to al jazeera america. i'm stephanie sy. >> i'm del walters. >> ahead in this next half hour, instability in the earth, what causes sink holes. it's not always just force of nature. >> also, the all black little league team from chicago south side now turning heads at the little league world series in pennsylvania. >> everybody loves those kids. >> yeah. we begin this half hour with the situation in ferguson, missouri, specifically questions about the reaction by police wednesday night. >> it wasn't just protestors they appear to target, but journalists, as well. the treatment of the press even getting the attention of the president. >> an aljazeera crew in ferguson, missouri running from police tear gas wednesday night. we don't know if police targeted them, but we do know that police at times have it true r. tried to put a tight leash on the coverage of the unrest. two print journalists were arrested, wesley law reof the washington post recorded his interaction with police after he says they ordered him to leave a mcdonalds restaurant where he was charging his cell phone. >> let's go, you can move. >> they threw me up against the soda machine and put me in handcuffs or plastic restraints. >> a letter of protest was sent to the police chief of ferguson, saying: both of the journalists taken into custody at the mcdonald's were later released without charge. the action against journalists in ferguson has caught the president's attention. >> here in the united states of america, police should not be bullying or arresting journalists who are just trying to do their jobs and report to the american people on what they see on the ground. >> missouri governor jay nixon weighed in, as well. >> the voices should be heard and we want to make sure it is heard. doesn't matter to me how respectful it is, it's got to be safe. if people have things to say, how to ought to say them and if news wants to cover stuff, they should do it. we live in a free country. >> thomas jackson said the ferguson p.d. is evaluating the democratic's tactics and how to facilitate protests while protecting the community. >> let's go live to ferguson. we are expecting to find the name of the officer who shot michael brown today. what do we know about the timing of that announcement? >> we spoke to the ferguson police department about 45 minutes ago. they said that they expected the name to be released sometime this morning. we really don't know when that's going to be, and captain ron johnson from the highway patrol told aljazeera last night that one of the issues is finding a way to disseminate that information. >> i believe there is discussion in that arena, talking about how to disseminate and put that information out, and at this point, i think we'll see some dynamics change within the next 24 hours. >> one of the issues that ferguson p.d. is they have public information officer, who has been flooded with media requests, and we've been calling him and he's been sort of slow to get back to us. that's one of the issues they're confronting. this is a small police department that's not used to this amount of media attention. >> there certainly is a lot of attention there. based on the way journalists were treated on wednesday, have you noticed a discernible difference this morning in the way police are treating you guys out there? >> well, i wouldn't say since i've been here that we've been treated badly or mistreated by law enforcement. last night during the protests, there was an awful lot of media, a crush of media here. we were free to do our reporting. i did not encounter any police officers telling us that we had to get out of the way or get out of the street or move along. we were pretty much free saturday our jobs. i really didn't notice anything last night. i have not had any issues with law enforcement since i've been in town and i've been here sings monday. >> thank you. >> vastly underestimated is the word from the world health organization concerning the ebola outbreak, the death toll of more than 1,000 may not be telling the entire story. they say it will take months to slow the outbreak. the u.s. has started to evacuate embass families in sierra leone. experimental drugs will be given to the patients. >> a woman was eating at a dickies barbecue near salt lake city and someone used lye in her drink. >> she took a sip and immediately coughed it out and spat it out and her first words to her husband, she turned to him and said i think i just drank acid. either the store manager or employee put six cups of this white powder substance into the iced tea mixer. >> police are treating what happened as an accident. the owner of the restaurant is cooperating with the investigation. >> clashes in the streets, supporters of the former haitian president have been fighting with u.n. peacekeepers. they burned tires outside his home. they are trying to stop his arrest for defying a court order, stemming from a criminal investigation in port-au-prince. >> today is the 100 anniversary of the panama canal. >> that canal one of the seven wonders of the world creating a short cut between the atlantic and pacific oceans. >> there's a live look of it. we bring you the story of the people who help keep the canal running smoothly every day. >> climbing aboard another ship is the least challenging part of her day. after she checks in, she literally takes command and begins plotting the and a halfation of the 10,000-ton vessel. the panama canal is the only place in the world where captains have to turn over control to canal pilots. 16 years ago, she made history by becoming the first panamaen woman to steer these ships through these waters. >> many times the captain said this is my first time working with a female pilot. we are not too many around the world. >> when it's range, visibility is diminished and when it's windy, you to have fight the wind or work with the wind, looking at the side of the ship, just calculating. >> after the lines are cast and engines cut, she commands the crew. there are three narrow locks to be navigated on the journey. it's a delicate task with tug boats pulling and guiding the ship. this is the most difficult part of the journey, cargo ships carrying millions of dollars of goods have to pass through these narrow locks with inches to spare. for pilots, there is no room for error. >> operating the canal and getting the ships safely from the atlantic to the pacific is handled by the pilots. it took 40 years to build, 20,000 workers died, mainly from diseases like malaria. when complete, it changed international trade forever. now a no era beckon cons. panama is spending $6.5 billion to widen the canal and double its capacity. back onboard, she has a long journey ahead, but she loves the challenge and the adrenaline. >> i am doing a little bit good that panamanian shows to the world that we can handle this. we have done a pretty good job. >> for her and her thousands of colleagues, canal is a national symbol not just of great success, but great sacrifice by those who built it and changed the world. >> you're looking live at the panama canal. it was given back to the panamanian government on september 7, 1977 by the carter administration. more than a million ships have passed through it over the past century. >> a new milestone for warren buffet's stock crossing the $200,000 mark for the first time on thursday. that's about the same cost as a four year college education as a lot of private universities for one stock. he has never split the stock, but created more affordable class b shares. >> as we have reported, california facing one of its worst droughts ever in modern history. the state is cracking down on the unnecessary use of water. >> there are some places they can't even guess how much water people are using. the effort to change that may be too late for this drought. >> california is running out of water, and yet, the state is grappling with a problem over the most basic tool to monitor water use, water meters. >> this is a neighborhood where there are no water meters. we're in the state capitol in one of the worst droughts ever seen and there are areas no one is keeping track of how much water they're using. >> changing that is a multi-person, multi-machine operation. all this man power just to install one meter to measure water consumption in one house. they have about 66,000 to go. a project that has already taken 10 years and expected to take another 10. >> now you can measure your conservation. if you have a water meter, you can track and adjust your usage. >> sacramento has an outdated city charter that decreed for a flat rate, everyone should ever unmetered, limitless water. that finally changed in 2004 with the passage of a statewide bill. now the city is playing catch up, at a cost of about $400 million. >> it's going to be too late, right? i mean 2025 is going to be too late to deep with this drought. >> our water meters is a long term project, however, we've looked for opportunities and this drought presents additional opportunities for funding. >> the problem is a result of the state's dysfunctional water system. nineteenth century and early 20th century water rights granted to some, denied to others. every town, city and county with a different water deal. as the state capitol, sacramento knows it has to set a better example. >> we really emphasize cutting back on outdoor watering. you can see, you know, some of the lawns in the neighborhood here are really taking heart with that statement, and, you know, turning that water off to conserve water. >> this is certainly left over from an era of abundance and we don't live in that era anymore and haven't in several decades. >> much attention has focused on these missing water meters, but the good news is most businesses and homes in the state are in fact metered. it's a precondition antfirst step for water conservation. >> you saw that brown lawn, one of the booming businesses in california now, painting lawns green. >> the other thing you can do is plant cactus. that would work better. >> yeah. major league baseball getting a new commissioner, rob manfred was the league's chief operating officer. he has taken a strong stance against p.e.d.'s. bud selig leaves in september after spending 22 years on the job. >> the breakout stars in the little league world series, the jacki robinson team from chicago's south side. they haven't made it to the world series since 1983. last night, they beat a team from washington state to advance to the next round. win or lose, a lot of people proud about these guys. >> they came back and they won. they won! >> i never imagined being here in the little league world series and then for my son to make it is just awesome. >> the team named after jacki robinson, who broke the racial barrier in major league baseball and yes, they do know exactly how much pressure is on them and the fact that they are representing, they say the city of chicago. great kids, great spirit. >> good for those boys. >> from streets in major cities to the bayou of louisiana, sinkholes continue to fascinate and terrify. >> it's not always mother nature behind them. sometimes man is to blame. we look closer at what causes the ground to give way. real reporting from around the world. this is what we do. al jazeera america. ♪ ♪ >> paul mccartney closing the curtain on san francisco's candlestick park, playing the last show at the park known as the stick. fifty years ago, the beatles played their final show of their final tour in the u.s. there. the stadium will be demolished. >> old fashioned brain games that have people putting down their ipads and smart phones. >> the settlement for families in the louisiana bayou. >> it stems from the sinkhole that opened up in a bayou two years ago. it has swallowed land and trees and is blamed on salt mines. we got a tour of the region. ♪ a million tears." >> a remote stretch of southern louisiana is deep in cajun country. its residents have been known to call it home a little slice of heaven. heaven is not the word that comes to mind. as in much of southern louisiana, great wealth lies beneath the surface. oil, natural gas, and right below here, the napoleon salt dome. there are 53 wells. this well was drilled by texas brian in 1982 and sealed in 2011. at some point after that, the side wall of the cavern began a collapse. gas bubbled up in the bayous, the commander of joint task force katrina, responsible for coordinating military relief efforts for the hurricane battered gulf coast, widely considered a hero has become an outspoken advocate for these communities. he and a few residents took you the on a boat to show us the beauty of this place and the hazards they are facing. >> this is incredibly beautiful, general. >> that's why i wanted you to see it. >> the general believes with all that mining and activity going on below, state regulators have in the been tough enough. >> the natural tendency when you approach a lawmaker is oh, yeah, with you we cannot live without this industry. >> texas brian spokesman believes existing regulations adequate. >> these regulations are pretty strong and certainly the local regulators and state regulator who are watching this operation, we had no event for 28 years. >> wilma is an environment scientist and mcarthur fellow who has dedicated her life to helping southern louisiana communities affected by industry. >> there's a need for one more regulation, stricter regulations and there's a need for two, enforcement of those regulations. >> the petro chemical industry has hundreds of accidents every year in louisiana, many minor, but each increases fears that the long-term health and safety of these communities are in jeopardy. >> in 1998, a 36 years old with a 3-year-old child, i was diagnosed with breast cancer. we built this home in 1999. >> a dream home in bayou corner, once a little slice of heaven, mostly barren. >> so, could you be living over a sinkhole? joining us to discuss how they form is pat abbot, professor of geology. that sinkhole in louisiana currently covers 38 acres and it won't stop growing. how did it get so big? >> well, beneath the ground is an ancient salt layer and that over time has risen kind of like when you see an afternoon thunderstorm rise up into the air in the atmosphere, so that salt dome rising up wil trapp oil and natural gas and also the salt can be dissolved. it's not table salt, but other salts can be dissolved and used in the petro chemical industry. >> is it a natural phenomenon or is it man made in this case? >> the salt dome rising up is totally natural, but there's no caverns in that. it's drilling the wells down, dissolving the salts and pumping them out, that's what makes the caverns. the caverns are human made. >> sink holes of this kind that we saw in louisiana, where else might we see that? >> sinkhole is a general term describing when the surface of the earth drops vertically. we have salt domes around the edge of the gulf of mexico. in land throughout the eatern united states, there's limestone, you think of mammoth carves in kentucky where nature has carved out cave systems below the ground and those can collapse, too. in this case, nature made the caves. a lot of times, though, humans will trigger a collapse pumping out ground water. a cave filled with ground water is a lot stronger than after you pump the water out and it's just air, now it's weaker and can collapse like the corvette museum did in bowling green, kentucky here. >> you list add couple of places vulnerable to sink holes. you're watching that video of the corvette museum in kentucky. is there a way for builders to know that the ground is vulnerable for sink holes before they build? >> it's a very difficult thing to do. really, the only way you would actually know how to do that is if before you built, you drilled lots of holes to see whether you were encountering solid rock or whether there were camps there. that's a lot of expense, so these things are not done. for kentucky, when the ground water is evacuated. you don't know the cave is below you and don't know the roof is about ready to collapse, so we get these stunning events. >> a bit of a crap shoot, although rare, we should say. thanks so much. >> the weekend is upon us. let's get a look at whether or not it is going to rain, shine, smile, frown. >> depends on where you are. we've been looking at wet weather, still that moist flow in areas like the southwest. one other area that we'll monitor everything is more rain pulling in from the dakotas into missouri today, a little bit more into illinois tomorrow. that's where we're watching it, a lot of sunshine in places like the southeast. i want to make a quick mention. we do have something we're monitoring coming off of africa. i'm looking extra close now. i leave for my military hurricane duty today. i will see you in a couple of weeks, unless there's a storm, you might hear from me a he reallier. >> have a good trip. >> in london, a competition for the title of best puzzle solver. >> those taking part aren't using smart phones or computers, relying on pen and a piece of paper. >> we will start in 3-2-1. start. >> it's not everyone's idea of fun, sitting in the hall of a suburban london hotel, effectively taking an exam. everyone is here voluntarily trying to be champion of the word as solving puzzles. moments earlier in a gloomy lobby, the contestants gather, collecting their thoughts and checking out the competition. >> the one thing that all competitors share is nerves. on paper, some puzzles look deceptively simple, but some defy the logic of even the most experienced competitor. >> what's the attraction of tackling puzzles all on paper with names like slither link, tapper and hitori? a group of contestants, a computer programmer, an engineer and a doctor from greece and china explain. >> i think what i like the most about puzzles, mainly because there are so many varieties and i can always try new things. >> it's easier to work on paper. you can make notes, erase, write whatever you like. you are not con strained about what you can write on the puzzle. >> when i am frustrated or just want to take a break, get off things, i will start solving some puzzles and then after i finish, i realize that i have spent one and a half hours, maybe more. >> the organizers say there's a natural high when you crack a puzzle. >> when you set yourself challenge to complete a problem, a task, at end of that, there's a reward center in your brain that releases indoor 15s and you get that buzz. that's what we get after every single puzzle we complete. >> does everyone have a booklet? >> the competitors filing in for another round, life really is a potential puzzle. >> it's the most civilized competition in the word according to organizers. >> that's it for us. >> coming up, word of a deadly air strike that may have killed children in iraq. the latest in two minutes from our newsroom in doha. >> have a good weekend.
the shooting death of michael brown, police released this saying brown robbed convenience store but officer wilson did not know brown was a robbery suspect. brown's family says releasing the video is an attempt to divert attention from the shooting. >> when you have witnesses saying an officer shot an unarmed person with their hands up as a universal sign of surrender, that is so deeply disturbing, it should rivet around the globe. let me tell you what i think about when you see this. you have some of the most harden criminals that when they gave this sign, they were taken into custody peacefully. >> diane esterbrook, what did we learn about what happened the day of the shooting? >> reporter: well, what we know today, tony, is that there was a robbery that took place a minute, maybe 20 minutes before the actual shooting. we know that it happened at a convenience store, that there was surveillance video and the police -- and the police indicated that he was a suspect in that. >> okay. we are clearly having issues. diane, can you hear me? we will come back to you if you can hear us. can you? >> reporter: well, tony, what we learned today was that shortly before the shooting took place, there was a strong-armed robbery at the convenience store and michael brown and his companion were a suspect in the shooting and later on, there was the shooting. it seemed earlier today when chief jackson that the two were linked. later in the day, he said the two were not linked, that the officer who shot michael brown didn't know that he was a suspect, that he was -- he actually stopped him because he was walking in the middle of the street. this has really added to a lot of the con fusion we have heard about a lack of transparency. >> that's what led to outrage in area residents and in michael brown's family. >> and diane, can you tell us a bit more about what michael brown's family is actually sayi saying. >> they are saying this is a case of blaming the victim. they say this is an instance of them bringing out the information today, deflecting attention away from the police officer and painting their son in a negative light. there was a press conference later this afternoon, and his cousin really expressed outrage and disappointment with the way -- well, they are outraged by this, tony. they are outraged by the fact that they think what the police did today is deflecting attention away from the officer, officer wilson, and painting their son, their relative, in a negative light. >> let's do, diane. let's do this because we are having all kind of communication problems. so let's roll the sound byte from earlier in the day to figure out what's going on, on the backside. let's roll that. >> whatever took place there had nothing to do with an individual getting down on his hands and knees, raising his hands in the air and saying, "don't shoot." this is a universal call for i surrender and i can hear my cousin's voice right now as i speak saying "don't shoot." the officer stepped to him and shot him is what we heard. >> okay. i don't know what the heck is going on here, diane esterbrook, let's move on. joining me is leo mcguire, the sheriff of the county where he oversaw 550 law enforcement personnel. sheriff, it's good to see you. it's good to have you on the program. why did you release -- why do you release the video on the same day that you release the name of the officer who was involved in the shooting? now, as you know, the community has been clamoring for this name and felt it should have been released earlier. can you attempt to put an end to the mindset? maybe you would have done things differently. can you at least -- i want to try to understand it from the point of view of the ferguson police department, if it was political, then it's political. if it's something else, if united states strategic, it's strategic. why release the video and the name of the police officer at the same time? >> it may be that there is fundamental fairness involved because once the officer's name is released, everyone is going to be clamoring for his personnel records, any disciplinaries to come to a conclusion about the officer. well, if the officer had some deportment issues, that's why he attacked michael brown. by the same time, releasing any of this information about the robbery, the robbery, only five or six minutes before this altercation with the police officer, then you would develop conclusions about michael brown as well. bringing them out at the same time kind of evenings it out and allows the public to recognize that law enforcement is taking the investigation in its due course, not being too hasty, being judicious and being careful about not only what they release but what they are implicating. >> maybe i suggest it's not a balanced approach because the minute we have a name of the officer -- we don't have a photograph 69 officer that i am aware of yet, but the minnilt you release the video and particularly the stills, it feels like -- and i want you to take this on a feels like, that the officers there, the chief in ferguson is putting his thumb on the scale and is changing the narrative of the story. the video, the pictures in particular seem particularly negative and damning. i would suggest to you in releasing the material in this way, the chief is putting his t thumb on the scale and that all of the attention and the questions in the press conference were about the video and about michael brown and very little is mentioned about the officer. just what are your thoughts? >> i think you have a point. however, when you look from the public safety perspective: what are we doing? what are we doing that could inflame the situation further? it was already at the highest level it could possibly be. thank goodness, no additional people were hurt over the past week. but it was quite out of control for several days. >> that's why the state police have been brought in, the state highway patrol and seeing some positive, positive developments over the past day and a half. however, no one is disputing that a shooting happened. what we need to find out is: what actually happened? it's important in an investigation to know what happened, just prior to an incident so we know what michael brown's thought process was. maybe michael brown thought that the officer knew he was the one who just did a robbery, he is 18 years old and doesn't want to go to jail that night. so maybe when the officer approached him, the officer has no idea that michael brown might be a dangerous suspect. >> if he had, would the officer -- would the officer have approached that arrest, that confrontation differently if he knew that perhaps he was looking at a robbery suspect instead of a kid who was blocking the road? >> absolutely. you know, by all accounts, the officer pulled up in his vehicle next to two young men, get out of the street, how he characterized that is in dispute by the witness. so that was just a casual, pull up. hey, guys, get out of the street. it's a dangerous situation. what happened next? >> what we don't know. >> yes. >> we need to know if during this investigation whether there was video surveillance of any businesses and homes in the area. i am sure they have already canvassed that. they are already collecting any other individual yes evidence, looking to see what there is. if there is, that should be released, to be fundamentally fair as they are putting out some of this invest gattory evidence that they are going to be presenting but not in a way as you observed? >> right. >> in a thumb on the scale. facts are facts and let the public, let the grand jury and the event annual jury in this case make the right decision. >> there was nothing to justify there is nothing to say if the facts bear out that this young man was standing in front of the officer with hands raised in what is the universal sign of, hey, i surrender. would you agree with me that there would be nothing to defy this young man being fired upon at that particular moment? >> there is two -- there is two issues here that i see from what i have seen thus far. one, the altercation in and around the police car where the officer may have been justified in using deadly force to protect himself from an -- >> at that moment? >> in that moment but then michael brown gets away. whatever the altercation was. let's say one shot was fired. now michael brown runs 35 feet away, he gets shot again as he is fleeing. >> could be a problem. and then when he is acquiescing to the demands of the law enforcement officer, whether his hands are up or not, he stopped. >> officer shouldn't be continuing to fire unless he recognizes that there is a threat to his life at that moment or a threat to others. >> that's when it's going to be. he should have been stopped. >> that's when he needed to be on the radio calling for assistance and needed to be ensuring that the use of force was appropriate at the appropriate moment. and here is where the potential problem may be. but again, we have to wait and see what the facts are. >> leo mcguire was the sheriff of bergen county, the police is for and oversaw 550 law enforcement personnel. earlier i spoke with maria nadal and asked her about whether or not michael brown may have been involved in a robbery changes the narrative surrounding his death. >> for some people, absolutely, it does. we have been talking to folks who don't live in this and say they think a little bit differently about this whole scenario but for a community that has been threatened and intimidated on so many occasions by police officers, this is something that they have always been insulted by police officers, but they are more interested in: why was michael brown killed by a police officer and he didn't get due process? every american gets due process if they do something wrong, and that's what these people who live in my community and this community, they are not stupid. they are saying, no, it's not equal. >> so what is going on with the ferguson police department? it seems pretty clear to an outsider looking from the outside, in, that there was not muchn interaction at all, which means the ferguson police are met and the black community there are ferguson in the days, the weeks, the months or even the years before this incident. what has been going on in that relationship, and has anyone, have you tried to bridge that disconnect? >> well, you know what? let me just tell you this incident caused everyone to reflect on what they have done in the past and what they are doing currently. i will tell you that the ferguson police department needs to do a better job at, one, addressing diversity within the police department. this police department should be reflective of what people look like in this community. secondly, the ferguson police department needs to do a better job at having diversity training and ensuring that every single officer that's on the street has the opportunity to really have genuine relationships built on trust no, intimidation, no harassment, but what people in this community are looking for are genuine relationships, and that hasn't happened t hasn't occurred. i think the death of michael brown is changing the name of the game here i think everyone is going to move forward differently. we also want an active civil review board so that citizenship can look at all of the facts. but one more thing that this communitity wants. they want the technology in place that allow them to be able to hear and see all of the interactions between an officer and someone who they may be tracking for an arrest or otherwise. >> captain ron johnson, the man who is now in charge of security in ferguson made a rare gesture at a press conference earlier. he invited ferguson residents to ask questions alongside reporters. >> led to a candid conversation about the challenges ferguson now faces? >> we know this isn't a perfect world. you say you know every barber in the hood. okay. that's the kind of world when you go home and see your kids tonight, when i got home, my daughter sent me this, daddy, were you scared? and i said, just a little bit. and she said, daddy, i want you to remember when jesus walked on the water. she said, when peter got scared, jesus picked him up and said, have the faith. and i am telling you today, we need to be just like peter because i know we are scared. and i know we have fallen, but he is going to pick us up and he is going to pick this community up. >> last night was the first night of peaceful protests. many attribute the calm to that man you just saw there, captain johnson. now, joini he joined the highwa patrol and in 2002, he was promoted of captain of troop c which overseas 11 counties including st. louis. johnson was only 39 years old at the time. he motions are running high in that community. as we mentioned, many people including brown's family say the police department is trying to discredited brown's character and divert attention away from the shooting. usher karishi joins us. how is the community reacting to the extraordinary back and forth from the police today about the robbery? >> reporter: well, tony, clearly mixed reaction here in ferguson. on the one hand, residents and protesters got one piece of information that they have been demanding for days now, the name of the officer who shot michael brown. they did not get that today, but they also questioned the semester release of that video footage and itchages of what is purported to be michael brown committing a robbery. since we heard from the police chief of ferguson this afternoon that that was not the reason why he was stopped in the street in the first place. so a lot of people questioning: what exactly was the purpose of releasing that information at the same time as releasing the name of that officer? and as you turned upon, a lot of people saying this is an opportunity that they are exploit to go reframe the narrative. listen to what a couple of people had to say about what was too much information. >> what we wanted was a name, not all of the rest. we wanted the name of the officer. that was the purpose of the press conference. >> that's further -- that's why we distrust. >> that's where the deep distrust comes from because we feel like it was a conspiracy. >> i just want fairness. i just want the police to be fair. not just this community. until all of our communities. >> as you have been reporting, michael brown's family reacting to the news that they not only released the name of that police officer. they also released the images calling it an attempt at character assassination, trying to cast doubt and darkness on who michael brown was, when it has no significance, they say, in the terms of how he was actually shot. >> all right. ash dash -- ar, let's talk will calm streets. ron johnson, the head 50 security from the highway patrol. he said things calmed down. what about tonight? still the case? calm scene? >> absolutely. i think pretty calm today. the tone is different. you can see the crowd gathering behind me. they are not here for me. they are here for captain ron johnson. every time he comes through this area, people surround him. they try to sake his hand, hug him. >> that's not something we have seen in terms of a relationship that's been building between the police and the protesters over the last few days. it is a marked difference in the tone and the atmosphere here on the ground in ferguson and even though this information has come out today, it's a question as to whether or not this will translate to violence in the streets. so far, it doesn't have that same tense feel that we have had in previous to nights before the minutes emissouri highway patro. >> including the night where you were tear gassed. thank you, you know, there are homes tonight that iraqi practice -- hopes that nouri al-malaki will present the country from splitting apart but he will have to unite shia, sunni and kurdish faxes that distrust each other while trying to stop a rebel offensive in the north. zana hadar? >> it is a power struggle now that nouri al-malaki has relinquished power but the iraqi c capitol is still violent. there are bombings nearly every day. the people are hopeful a peaceful transition of power will help bring about security. >> it gives education that al-malaki is keen to preserve the safety of iraqis and iraq. >> a call for a new beginning from iraq's most influential cleric who said the transition is a rare opportunity to resolve the political problems. >> now, all eyes are on hider, the new prime minister sten sister who wants an inclusive government. it will be a challenging attack. al-malaki has been accused of consolidating power and alienating kurds. he will have to reach out to all political parties. he will need the support of these men who don't recognize the sunni fliingsz baghdad. they are prominents and tribal leaders who hold sway on the ground. they welcome al-malaki's departure but said it won't end the crisis. they believe the solution is in a federal iraq where sunnis would be able to governthane their own territories. >> translator: we are ready to cooperate with the new government only if sunnis get their rights. our priority is to stop government attacks against our areas and top disarm shia malitias. they are more dangerous than the islamic state group. we will not fight that group unless our demands are met. . >> for now, the government is relying on those to protect from the islamic state group. they took control of much of "the sun"ni hartland including the oil fields and the iraqi army which abandoned their positions and weapons hasn't recaptured that territory. >> the international community is hoping a united iraqi with defeat. zeina hodr, erbil. >> the ukraine says they destroyed russian militants. the latest on contradictory claims. the panama hotel, ali vvelshi nt from "real money" to explain. become a flashpoint >> joie chen reports live flashpoint: ferguson special coverage continues on al jazeera america ♪ ukraine says forces have destroyed russian vehicles that crossed the border. moscow denied the card but it could make a tense situation worse. international leaders accuse russia of planning an evasion to help separatists in eastern ukraine. russia says it is delivering aid. emma hayward is in slovyansk with the latest. >> reporter: this came from poroshenko's office, the ukrainian president who had apparently had a telephone conversation with david cameron in which he said they hadn't entered ukrainian -- that they had entered ukrainian territory and been destroyed. this would be a significant step in this 4-month battle here in eastern ukraine. russia has flatly denied sending in those military vehicles and has had a campaign in the east of ukraine by separatists. the other convoy, what russia said is an aid convoy is still that on the russian side of the border earlier today, a ukrainian border guards went to inspect it t we still don't know when and if it will come to ukrainian territory. ♪. >> the panama canaloked its locks 100 years ago. as the waterway celebrates, it is forging ahead with a multi-billion dollar expense. ali velshi joins us. good friday, and give us a bit of a history lesson here how did they revolutionize international trade? >> it was a century ago. it was it was a shortcut and there was no northwest passage at the time. you had to go the other way around. one of the more asian ships could park on the west coast of america and unload. that's why we have the rail and truck system that we've got in america. but one the most ambitious projects in history at the time. it cuts 50 miles across the tiny central american country of panama. it took nearly 40 years to build b 26,000 workers died. those are the people who took mainly from malaria. when it opened, it changed international shipping trade forever. it transformed panama into a global shipping hub, the one you think about more than any other. it handle did about 5 percent of the world's commercial shipments but hopes to claim more. they are expanding the canal. the expanded canal is going to open in about 2015. next year sometime. >> the canal is under going a major expansion, and what's driving it? >> just like me, torque, we get bigger all the time. the canal is just too narrow for today's massive ships. we ship more than we used to. they are these craters that use goods to move from the asia to the united states and can't get to the east coast. they have to doc on the west coast ports. currentlying about 30% of that asian traffic travels through the suez canal in egypt. all the way around india, through the mediterranean across the atlantic. when this new panama canal opens, it will be able to accommodate ships that are 20 feet longer and likely 50% wider than the biggest ships in used to. given the choice, some future shippers may opt to go through panama as opposed to the su easy cappal, saving a lot of fuel. >> is this true, the chinese are back agnew canal in nicaragua? and how might that impact the plans of panama? >> look. they are close to each other. last month, nicaraguan president submitted a 100-year partnership with a chinese company to build a new canal. it's a $49 billion project. it's designed -- by the way, the expansion of the panama canal is a 4 nigh billion dollar built for the panamcs. 5 times larger than the sues canally, bigger than the panama canal as well. it could transform nicaragua's economy. it could criminal trade in egypt and panama. jake ward joins me on "real money" with that story. >> terrific. ali velshi, "real money" top of the hour on "al jazeera america." coming up, we will speak with the attorney for michael brown's friend. his version of events and in the wake of protests in ferguson. one lawmaker trying to stop a government program that sends free military equipment like machine guns to local please. >> you know, there are conflicting reports on what happened when michael brown was shot to death. ferguson pd says the officer who shot and killed him didn't know he was a spus respect. friends and family say the pd is trying to discredited the 18-year-old joie chin has been on the ground coveringents. life tells us very few things happen in a vacuum, spontaneously. what have you learned about the roots of the conflict that we are watching on television? >> reporter: tony, it is quite a story developing. we are at the quick trip where a lot of the protest took place. as you can see, captain johnson, the state highway patrol captain who has now been appointed the head of security in ferguson and around the community as well. he is coordinating and become something of a rock star in this area. people having their picture made with him. they are very concerned. they are trying to keep him in the center of this conversation. they want to make sure it stays under control and the relationships between the community and law enforcement in the ferguson and north county area stay together and under control particularly going in to this weekend and going in to tomorrow, which will be the one week anniversary of michael brown's death. >> how would you characterize the mood there in ferguson since the time you have been there since earlier this week? >> reporter: tony, you saw earlier this week when our correspondent, ash har quereshi were concerned. things have calmed down significantly. last night, we saw a very large demonstration take place, a lot of folks out in the street, a lot of noise, a lot of shouting. definitely a non-violent scene. as captain johnson said earlier in the day, there was no gas used, no rubber bullets, the whole tempo of the environment changed but there were some concerns earlier in the day when the announcement was made about the officer, the name of the officer who was involved directly in the shooting as well as some other information that you noted that was released by the ferguson police earlier in the day, that that aroused a lot of tension, a lot of anxiety in the community. so we see captain johnson here talking again. people of the community trying to get a fix on what the emotions are here as well. there is a lot of sense that things could turn bad. we would like to keep that from happening. >> yeah. joie, look. it seems clear to me. i don't know if it's clear to you, just from the reaction since this happened, the news conferences and the tone of the news conferences that the ferguson police department hasn't spent a lot of time in that community talking to members of that community and building bridges. has the city always been divided? >> light. interesting you bring up history. history is a big part of the story as it turns out. >> that's the thing we'll cover on "america tonight" in a couple of hours. if anythingson is close to a community called kenlock, the first all-black community in the state of missouri, founded in the late 1800s. and what happened to that community, if i can offer a bit of after piece, really paved the way for some of the tens that have grown up in the north part of st. louis. we are going to look into that and understand how that history relates pretty directly to the death of michael brown. >> pretty interesting. speaking to community leaders that you have had an opportunity to chat with while you are there, how do you see this community kind of overcoming the events of this week? >> i think that is the thing everyone is struggling with now. they know whether it says the community or not, it is going to be resolved one way after that. after that, amount of the amount of tension that has built up here, after the issues that have come up on the table at this point, how do you bring the community back together, and how do you move forward? a lot of people talking about how do you work wit young people in this community? how do you get people more involved in the political process so they find voices for themselves and learn to be able to speak out for themselves an not in a destructive way? there is a lot of people here, a lot of issues being raised. people really are trying to work that out even now. >> joie, that's terrific. i can't wait. >> that's lovely. i can't wait to see the reporting tonight with joie chen with "america tonight." good to see you. thank you. if you would like to see more of her reporting, i know you will later on in a special edition of "america tonight" right here on al jazeera. so, the debate over the clashes in ferguson missouri heading all the way to capital hill right now. david shuster joins us with today's power politics. david? >> tony, several lawmakers are demanding hearings on the press release -- the previous reaction, john conyers is already directing committee staff and resources to prepare for a hearing. representative hank johnson, democrat from georgia, has now introduced legislation that would stop a government program that sends free military equipment, including machine guns, from the department of defense to local police. both efforts are gaining support in the u.s. senate. some of the harshest criticism 69 st. louis county police department actions on tuesday and wednesday night have come from missouri senator claire mccask cal. the democrat has repeatedly said even with remarks of reporters that the police have been part of the problem, not part of the solution. >> i have been working to try to demil tar eyes the police response over the last 24 hours, and i want to make sure that the people i work for understand that i want them to have safety as they exercise their c constitutional rights to protest. it's heartbreaking. i love this community, and i know the people of this community and the way they are being portrayed is terribly unfair to them. >> among the 2016 presidential candidates are likely candidates, some of the most interesting reaction has come from kentucky senator rand paul who just published an op-ed and said if i had been told to get off of the street as a teenager, there would have been a cities tink possibility i would have smarted off. but i wouldn't have expected to be shot. he goes on, demilitarization says the current situation, the situation the other night, is the product of big government. quote, washington has not incentivized local police precincts by using federal dochlts build what are essentially small armies where police departments compete for military gear goes far beyond what most americans think of as law enforcement. senator ted cruz was also considering a reason for president in 2016 has joined the criticism of police tactics proves reporters should never be detained. a free press is too important simply for doing their jobs. republicans have been warning for years government agencies at the national and local level are becoming too powerful and irresponsible and political, the events at ferguson have strengthened the libertarian presidential candidates, at least to the extent that paul or cruz decide to run. >> we appreciate it. good weekend to you. thank you. today's politics. taking a look at news around the world now in nigeria, suspected boko haram fighters have abducted boys and men, as many as 97 people were taken during the attack that happened on sunday. six older men were over the raid. they kidnapped more than 200 young girls in march and boko haram is trying to establish a hard line islamic ideology. in india the prime minister told parents to start focusing on disciplining their songs. modi spoke off of the cuff. he, an issue of civil violence, he called it a source of shame for india. he said the country's ougattitu puts too much blame on women instead of on their attackers and in china, land seizures by government are turning increasingly violent. one of the latest confrontations was in an area hit by an earthquake almost two weeks ago. protesters are appealing to the president to intervene. adrienne brown now from western china. >> it is is the only way of life thing. farmers from the same families have eked out a living from these fields for decades, growing greens and potatoes mostly. after so long, they thought this way of life would never change. all over china, development and not land rights are the priority now. >> the land belongs to us. we must protect it. the party leader said he would beat us farmers to death. >> the land grab began five years ago. crops cover fields they once cult -- shops cover fields they once cultivated. developers are closing in on the farmers' only patch of land. the dispute is turning violent. >> hay fu shin's arm hangs uselessly. she said it does after police beat her. >> they looks a bullet. they had me locked up for five days. even the police felt sorry for me. i am really coming to go a dead-end. >> reporter: they think talking to a foreign reporter can help them resolve their dispute. they are begging us to help. the local media has been warned off. the farmers, all of them women, have the same complaint: the land was taken, and with little compensation. they feel cheated. the president, please help us, says the banner. corrupt officials took the land. please deal with those officials. >> the resistance is being led by ma lu chong showing me photographs of recent confrontation with the police which earned with her being detained for five days. >> translator: even if i am beaten to death, i have to tell the w40e8 country and the whole world that the local officials abused their power and bully us poor people. >> reporter: this town is barely a spec on china's map, but land seizures by local governments are taking place all across the country. it is an emotional issue. no more so than in thisplation. we contacted the local government, but officials refused to talk to us. the protesters meanwhile are digging in. they set up a guard post to ward off police and they still have faith their president will help them. >> i want to say to the president, please give back our land that has been grabbed by the local government. >> land was given to us by our ancestors. >> reporter: but in china, most land is always owned by local people. selling it is their main source of income. and out dated laws mean that these farmers and others like them can do little to stop it. adrian brown, al jazeera, in wengping china. >> two amish girls have been safe after being reducted. >> story and other headlines across next. >> reporter: the two girls were taken from the side of the road on their family's farm in the state of new york. police say 12-year-old taken miller and 6-year-old alila were dropped off in a small village and then walked to the closest house they saw. >> the residents knew who they were by how they were dressed and the media attention. the girls asked them to take them home and that's what they did. >> police faced an unusual challenge in their search. there are no photographs of the girls since most ami. h aren't allowed to have their picture taken. the sheriff said investigators are following up on a number of suspect leads. a utah woman is in critical condition after drinking sweet tea from a barbecue restaurant. 67-year-old jen harding ordered a sweet tea at dickie barbecue put on sunday over the weekend. police say that sweet tea was two-thirds cool of a chemical solution typically used to clean deep fryer equipment. it looks similar to sugar. >> she she took a sip and merely coughed it out and spat it out and her first words to her husband were: i think i just drank acid. either the store manager or the employee put six cups of this white powder substance in the ice tea mixer. >> police say right now, it appears to be an accident, but they are still studying seniorveillance video and interviewing the employee. >> a new jersey bridge sent billowing smoke into the air. it is to new york city. firefighter boats are at the city. it's unclear if the blaze had anything to do with construction underway at the bridge. >> a south carolina woman was arrested after swearing in fronts of her kids. danielle was grocery shopping with her husband. she said he kept squishing the bread, putting frozen pizzas on top of it. she expressed anger. a fellow shopper confronted her about using the "f" word. she was arrested for disorderly conduct, tony. and she says that the woman who con front her didn't actually want her to be arrested but everything sort of escalated. the police showed up. >> see, the push comes to shove and squishing. maria, thank you. coming up on "al jazeera america," the governor of new hampshire has declared a state of emergency after a series of drug over doesz. the attorney representing michael brown's friend, one who saw the officer shoot and kill brown, his version of events next. real understanding... >> where you scared when you hear the bombs? >> al jazeera america real... news... this has been a somewhat confusing day when it comes to messaging from the police in ferguson, missouri. take a listen to one exchange by the ferguson police chief. >> no. he didn't. he had nothing to do with stats. >> at this point why did he stop michael brown? >> because they were walking in the middle of the street, blocking traffic. that was it. >> so this comes after the surveillance video was released and the police allege he was in a robbery but admit the officer who shot and killed him did not know. the family says it was used to divert attention from the actual shooting. joining us now is the former mayor of st. louis, a lawyer for the witness. tas pleasure to have you on the program, your honor. what is your reaction to the release of the surveillance tapes? >> well, my client is relieved its out but one of the things we want everybody to know that several days ago, we met with the f.b.i. we met with the justice department. we met with representatives in the county for three hours. we told the story from what dorian and mike did fret from the time they got in, about the fact that he told them about it. nobody decided to release that information but the fact they gave it to the f.b.i. several days ago. >> several days ago? when did your client meet with the f.b.i. and give this account? and why are we just hearing about all of this today? >> we met. >> that's a good question. we met with the f.b.i. several days ago, and briefed them totally on what happened. we started out from the beginning of when my clients first woke up that morning and gave them the information. they asked him and examined him at length about what happened in the store with big mike. we then went on to talk about what they did when they left the store. we then went on and talked about the confrontation between big mike dorian an the police officer and then the shooting. those three hours. so all of that information was out two days ago. the question becomes. y did the police department not release it. >> what do you think? >> it happened saturday. well, because they didn't have a story to tell. they was so busy trying to discredited big mike, trying to discredited them, trying to cast as spergses on his character that they were trying to find some ways to justify the officer shooting big mike. and at the end of the day, they just can't do it. >> interesting. did you -- how did you fight the i impulse to come forward yourself and to hold your own media availability and put your story, your client's story, on the record as you had done with the f.b.i.? how did you resist that? >> well -- we will -- well, in our view, that had nothing to do with the incident at hand. the incident at hand was did that officer use excessive force when he shot big mike and killed him, when he shot an unarmed man in the back, in the head, and then over six or seven times in the body? was that a use of excessive force? not to confuse the issue about what happened at the store because this officer, as he came upon big mike and dorian, he had not received a call that, theft in progress. he did not receive a call saying two black men took something out of a store. he had no way of knowing that these two men were the ones that robbed that store. >> okay. >> we are trying to keep it. >> got you. got you. freeman, i want you to take a moment here i am going to, to give you some breath here, and i want you to share with us the account of what happened, the confrontation between big mike and your client and this officer. what is the account that your client gave to the f.b.i., please? >> okay. walking down the street, as a matter of fact, walking in the middle of the street on the yellow line. why? i don't know. and why they probably don't even know. it's just something that people do. they were walking down the middle of the street. big mike still has these cigarillos in his hand. while walking, the officer comes from the opposite direction, pulls up to him. he stops. they stop. the officer says get the f on the sidewalk. dorian says, officer, we are just going ahead here i don't really see any reason why we got to get out of the street, plus it's not illegal to be walking in the street. so they walk past the officer. as they get toward the end of the car, the officer throws the car in reverse, eerk. and he goes back to where they are. he catches back up with them like what did you say? and he is so close to them, he attempts to open the door but he is so close, he can't even get out of the car. all right? so then, they have further words. the officer then reaches up and grabs big mike by the throat, and big mike is so big, et cetera 6' 2", 250, and the officer is trying to control him from inside the car. >> how big is the officer? how big is the officer? how big is the officer? >> we don't know. but how big do you have to be if you are sitting in the car and you reach your hand outed and you grab somebody by the throat that's 6' 2" and 250? it really don't make no difference how big you are. >> and then -- >> big mike attempts to get ahead. big mike just moves away from the officer. as he is moving away, the officer is grabbing him. he's got him by the shirt. he is going in closer and closer to the car. dorian is standing right there. he can touch big mike, and he can touch the officer if he wanted to. and then all of the sudden, dorian said the officer gets a we hope up. looks at big mike and aims at both of them but telling big mike, i am going to shoot you. big mike is come on, pow the gun goes off. big mike breaks off. him and dorian run. there are .3 officers'cars in the middle of the street, in the street. cars stacked up behind him. dorian runs, gets behind the first car and he's got down. here comes big mike running by, says, keep running. big mike runs by. next, here comes the officer right mind him. dorian stands up sees the officer shoot big mike in the back. big mike turns and pow pow pow. he is lathing in the street. they leave him there for three hours. >> freeman, do you -- are there witnesses? are there independent witnesses? and when i say, "independent witnesses" you know what i am talking about, people who don't know your client >> absolutely. >> people who don't know big mike. are there independent residents to rcorroborate that your clien shared with the f twchbi? >> yes. one of the young ladies whose cars that was stacked up behind the police officer's car, she came forward yesterday and corroborated everything that dorian said almost to the word, that somebody else up on a balcony said the same thing. there was another person standing on the street claims he saw the same thing. so at least three people out independent of big mike that saw it. >> okay. freeman, thank you. >> hello? >> i thank you. no. no. thank you. i wanted to give you the time to put it on the record. it becomes a record now and we get to what happens as the investigation moves forward. freeman bossley, the former mayor of st. louis? >> you have done that. okay. you have done that. thank you so much. >> thank you for your time. appreciate you. all right. let's take a break. coming up, the dangers of synthetic drugs, a look at how something that can be bought at a convenience store is sending people to the hospital. >> ferguson, the government steps in >> we should see that justice is done >> as tensions continue >> this whole area has indeed become a flashpoint >> joie chen reports live flashpoint: ferguson special coverage continues on al jazeera america >> texas govern rick perry has been indicted for abuse of power after perry publipromised to ve tote 7nal million dollars for the state public integrity unit which investigates political corruption. he is the first governor to be indicted. new hampshire has declared a state of emergency. at least 44 people have overdose odd a product called smat, a synthetic marijuana. most of the cases have cropped up in the last week. no one has died but it gives state officials the power to confiscate the drug. been substances like smat are created in the lab. the end result is unregulated. jacob ward has son insights into this complex process. what are the sin thetics forms of marijuana and where do they come from? >> scientists have detected in marijuana, mayor has positive medical benefits. it can sus press pain or the immune responses they have tried to isolate cannaboids in marijuana and try to make useful drugs. they have gotten out into the world and -- in sort of garage biologist and chemists have taken these compounds, sprayed them on plant matter and call them things like smack and spice and the rest of it. >> that's what people end up smoking and having horrible reactions to. >> what is it that makes these drugs so dangerous? >> marijuana, the way that it binds to the brain, it's called a partialing anist. it binds to certain recentsors. it very directly bonds to the brain with all kinds of crazy effects emergency rooms reported everything from people losing ability to breathe on their own to losing their gag reflex, which is a life-saving reflex. all kind of bad stuff can happen. it has to do with the dosage, which no one is controlling in this unregulated market. >> jacob ward for us in san francisco. that is all of our time for this news hour. thank you, tony harris. "real money" with ali velshi at the top of the hour. ♪ the crisis in ukraine may have kicked up a notch with a report of artillery fire, russia's economy is hurting. is there a method to vladimir putin's action. reading, writing and ring - what a school system is doing to open the school for the fall. >> happy birthdays panama canal - we talk about another canal that could change globalized
crossed over into the country thursday night and its forces sustained shellfire. >> a russian defense ministry has denied the incident happened, calling the reports i kind of fantasy. allegations are flying but it is unclear what happened. >> this shot of armored russian personnel carriers was taken by british newspapers. 23 of the truck crossed the border under the cover of darkness. why they did so and where exactly they were heading remains unclear. kiev says its military destroyed most of the vehicles. western officials but a size to the alleged border crossing. >> is a clear demonstration of continued russian involvement in the destabilization of eastern ukraine. we continue to call on russia to put back its troops from the ukrainian border. >> russia denies that any military convoy had crossed the border. é and focus on this unitarian situation. -- vladamir putin focused on the humanitarian situation. >> we are concerned about the real unitarian crisis there. >> moscow says it is delivering 2000 tons of supplies to crisis zones in eastern ukraine. 280 tracks were delayed as officials inspected the convoy. they said military equipment for the separatists could have been hidden on board. kiev is pressing on with its offensive against the separatists. the aid truck's are still waiting on the border. >> we are joined on the line from carcillo -- karkiv. >> there isn't much clarity here in the eastern ukraine as well. there are allegations and accusations flying back and forth. ukraine's president said early today that ukrainian forces destroyed destroyed part of a russian column. and they washington minister of defense had that there was never russian military personnel traveling in ukraine. if those allegations are confirmed, they would be the first confirmed engagementthe mn ukraine and russia. >> that would be a huge escalation. we do know that russia wants to send an aid convoy. are those tracks still being inspected? >> yes, they are stationed on the territory of the russian federation. today, early in the morning, a group of ukrainian customs officers expand to contact this convoy and confirm whether it is in order and whether there were no prohibited items. the rest cloth committee which is supposed to received and consequently input this confirmed earlier today that they still did not receive an exact list of items which are on board. >> thanks so much for joining us. >> it has been a month now since a malaysian airliner was shot down over eastern ukraine killing all 298 people on board. >> there was an international investigation and a massive effort to identify the remains of the bodies. >> for the families of the victims, the long wait has only added to their burden. >> it is just a short walk up the stairs, but for -- it is a painful one. his son's room is up there, just the way he and his girlfriend left it. they were on their way to go diving in bali. she still cannot believe what happened. click sometimes i write down, sometimes it is like nothing happened. -- >> sometimes i break down, sometimes is like nothing happened. >> downstairs, her husband plays us a song rewritten to commemorate the victims. he says it makes him feel the pain. they are caught up in a lot of things and they are scared of what come when that stops. >> the most important thing for the parents right now is for the remains to be identified. >> we hope for complete guidance. maybe, we can touch them, i hope. i don't have to see them but i want to touch them. looks at the moment, a team of international experts at these military barracks is examining remains recovered from the crash site. we are not allowed to go in. he says there still hope for that indication. we're trying our best, we have completed the examination of the bodies who have documented all of the bodies that we were able together and put it in our database. at the moment, we are analyzing that data. for most families, the knowledge that the remains of their loved ones are no longer at the crash site would be a first step. maybe the first step on the long road to closure. >> sunni opposition leaders say they are ready to work with the country's new leader as long as he restores sunni rights. >> that comes after nouri al-maliki and also that he was stepping down amid making way for al-abadi. this was seen as vital to tackling the nation spiraling crisis. more than 200,000 iraqis have fled their homes over the last two weeks to escape the advance of islamic state militants. the u.s. has been providing aid to the region has has announced arms deliveries. but germany is flying in unitarian supplies as the european union seeks to forge a response to the crisis. >> germany has pledged nearly 30 tons of food and six tons of medical supplies for those displaced by the militant advance. as the first transport planes were taking off, the eu foreign ministers were gathering in brussels to discuss greater involvement. after three hours, they allowed member states to arm the kurdish fighters. >> the conclusions of the council will show the commitment of european countries to pushing back against the threat from isil. the threat to civilization, a threat to us in europe. >> they have forced almost 200,000 people to flee their homes and head to safety in the region. germany is still holding off on whether to send arms to iraq. the foreign minister is going there this weekend to assess the situation. other member states have not examined in detail what kind of military equipment is needed or can be used in the region. that is because much of the military equipment used by the kurdish forces dates back to the soviet era. there were words of warning from some quarters, particularly from eu countries looking to supply just two-minute hearing aid. if they're going to supply arms, they should be extremely careful. i should it fall into the wrong hands. >> member states are free to began arms shipments to the conflict zone that further authorization from brussels. the decision is seen as a major step towards pushing back the islamic state militants. >> reports from nigeria say boko haram islamists have abducted nearly 100 people from a remote village. that is according to a witness who fled the violence. >> it reportedly took place on sunday. this is the same region where boko haram militants captured more than 200 schoolgirls in april. the size of the deadly outbreak elsewhere in west africa seems to have been vastly underestimated. that is the stark warning from the world health organization. >> it has claimed more than 1000 lives across the region and affected nearly 2000 people. this is not described in 92 to fortis happening. >> the estimate the outbreak could last another six months. sobering news, specially in liberia. >> family members waited to see their loved ones inside a quarantine zone. the countries not the center of the world's deadliest ebola outbreak with 413 recorded fatalities. ethical officials are stationed on the borders of towns and districts to test incoming travelers for the virus. this assistant says he is grateful for the test because it will help those who don't have the virus to live. with food supplies running short and medical facilities at breaking points, health organizations are issuing their starkest warnings yet. the situation is deteriorating faster than they can handle. >> this is like a wartime, in terms of fear, general fear all over where you are and nobody understanding what is going on. >> your position has called for urgent action on the international community with no known cure or vaccine, dozens of new cases are being reported every day. doctors without borders say it will be six months before the crisis is under control. >> column is returning to the streets of the u.s. town of ferguson following days of protests over the death of a black teenager. >> they decided to replace local police with officers drawn from the state police force which has helped. the national debate continues. >> police are now marching alongside demonstrators in a bid to ease tensions. they have been releasing more details about the deadly incident. >> darren wilson has been a police officer for six years, he has had no disciplinary action taken against him. he was treated for injuries that occurred on saturday. >> police say the victim was suspected of stealing a pox of cigars from a convenience store. some residents accuse police of fabricating allegation in order to cast out on the victim's character. >> no person, no business a neighborhood was claiming to be robbed. now all of a sudden somebody got robbed because everything would be looted. now, you can say it is a robbery because he was going to know? like the exact circumstances are unclear but this triggered days of unrest. outrage over police methods have spread far beyond the midwestern town. >> we're going to take a short break but when we go back we will go to india which celebrated its independence day on friday. >> we will find out why so many people in the second most populous country are learning german. the number of students taking german classes has tripled in recent years. >> that and more after the break, so stay tuned. >> what is so powerful that it can make you over come your fear? >> what is so potent that it passes effortlessly from mother to child. from generation to generation. >> it makes it bad ideas it seem like good ones. it is hunger. >> help us fight hunger. but the world food program. >> welcome back. a fragile cease-fire. >> resident support palestinian demands for israel to end its blockade. in addition to heavy civilian knossos, the u.s. has 425 people have been displaced. infrastructure and thousands of homes have been destroyed. >> israeli airstrike hit the only sewage treatment plant in gaza city. untreated sewage is now flowing into the net it's raining and heading from gaza to israel. >> this is probably the target of the israeli airstrike. but the sewage pump station directly next door is also badly damaged. the director of gaza city sanitation utilities has come to assess the damage. the pumps don't work. it is not clear if they can be repaired will have to be replaced. >> this bumping station was brand-new, it was given to the municipal authorities less than a year ago. you can see the old plant here behind us. now, if you look at them both, you cannot tell the difference between old and new. everything is ruined. >> as a result, 20,000 cubic meters of untreated sewage are now flowing into the mediterranean every day. the supposed to be set from this pumping station on the edge of gaza city. but the treatment plant has also been damaged and can only work at half capacity. repairing it after the last gaza war took three years because israel delayed the import of building materials. a german development bank helped to finance the root pairs last time, it is trying to find out how much it will cost this time. >> at the end of the day, the sewage from gaza will reach the beaches and tel aviv. if it is not treated here, it will cause damage on the israeli side. i cannot understand why they attacked the facility. >> it could take a long time before the plants are back up and running normally again. and they will eat electricity. but, the electricity infrastructure has been badly damaged. gazans are having to rebuild the basics for the third time in five years. >> clashes have broken out as to antigovernment marches continue their march to the capital of islamabad. >> gunshots are set to hit the vehicle of the opposition leader. there are concerns as to what happened, >> the marches are calling for the ouster of the pie mr. who they accuse of election fraud. >> it did not take long for the peaceful protest march to descend into chaos. protesters and government supporters shout it out in an eastern town. both sides blame each other for triggering the violence. government supporters first distributed pamphlets, then they attacked the vehicle. he hurled stones. protesters threw rocs, government supporters threw stones. i was hit on the head. >> the populace eric is leading the so-called revolutionary march. the convoy set off from 04 on thursday. it is making a 300 kilometer journey to the capital. the march is aimed at toppling the government which opposition activists say was elected last year by fraud. these things make people their slaves. god willing, a new pakistan is coming into existence. >> with tens of thousands of taking part, the marchers consider the biggest challenge yet to the prime minister's government. >> next in india, the prime minister has vowed to fix what he calls the countries pro can government in his first independence day speech since taking office. >> would he attack the record of the elite and in the break with the past, he delivered his speech in english. he also condemned the recent series of rate cases among calling sexual violence a source of shame for the nation. for decades come indians have opportunity.omeland in search of the government says there are more than 20 million indians living there. >> germany continues to grow in importance on the world stage, the country has caught the eye of many indians will sub some preparing themselves for a move. latest figures show a surge in the number of indian students learning german. >> reay is learning german. she is studying hard for an exam and making sure to cover all bases. and get another step closer to fulfilling her lifelong dream. >> i want to become an engineer and working germany. >> her family is part of the growing midle class in india. germany has a good reputation here because of its economic power and job prospects. she is the first in her family to learn german. >> it was not enforced by me, actually. so, she was given two choices, germany or french and she opted for germany. >> she is not the only one. in this school alone, more than 2000 students are working towards their exams. they come from all sorts of backgrounds and are doing it for many different reasons. >> this boy tells us in german. >> the culture, the people. >> i want to learn something. >> and today, the students are getting down to business. it is exam time. >> this is like driving a car or working a computer. this is a basic skill. those who want to stand out can do so with an additional foreign-language. >> armed with their new language skills, she hopes to get a job with a german car manufacturer. many big brands as well as smaller companies have branches in india. two hours later, she is one step closer to her dream. >> the reading and writing was easy. >> many here hope to use her language skills not only in india but also to visit germany one day. >> there is a big birthday to celebrate today. the panama canal is turning 100. >> a change the world but even it has to keep up with the times. >> the canal needs expanding and alternative routes are on the horizon. >> giant container ships have to be maneuvered through the panama canal with only a few centimeters of tolerance. the canal authority was hoping a third set of locks that allow even larger vessels to use the canal. a dispute over cost overruns has delayed the project's completion. that delay could cause panama some $3 billion. to make matters worse, a chinese investor is planning a new canal 700 kilometers to the north. it should be wide and deep enough for the world's largest container ships. the new set of locks being built here will still be too small for the growing fleet of altra large ships. the panama canal authority is shrugging off such concerns. >> the panamanians fully support this massive construction project. it is extremely important not only for our country and our government but for the entire region. >> the canal is panama's greatest asset, more than a fifth of world goods pass through it. last year some 15,000 ships traversed the waterway bringing the country almost 2 billion dollars in revenue. that income is expected to double after the canal's expansion. the country's capital has been benefiting from the money. the construction industry has been booming here for years. new residential developments are springing up. the boom could quickly go bust once the plant canal in nicaragua is built. panama would certainly lose some business to the new waterway but they are tracking many investors hoping to take advantage of their excellent location. >> last year, foreign direct investment totaled $3 billion. that was the highest amount in all of central america, unfortunately investments from germany could have been higher. but germany is providing a key component of the expanded canal. the control mechanism for the water efficient lock system will stop is set to be assembled this autumn. the technology will be absolutely reliable to avoid delays for the ships passing through the canal. only the future will tell if the expansion pays off. particularly amid competition from a new waterway. >> and in a quick bit of sports news, the german national team lost another player on friday following the departures of philip lam, -- announced his retirement from international football. what the 29-year-old world cup winner said that after 10 years with the national team he wanted to be able to say when the chapter ended. he will continue to play at the club level with the english premier league side arsenal. the ripe old age of 29. >> i am past due, i guessed. >> what is that leave us? thank you for watching "the journal." yy this week on moyers & company: the battle over women's health and reproductive rights. >> it's better to be a corporation today than to be a woman in front of the supreme court. there has to be, in this country, a public health care system that will insure that women can get access to the care that they need regardless of religion. >> announcer: funding is provided by -- anne gumowitz, encouraging the renewal of democracy. carnegie corporation of new york, supporting innovations in education, democratic engagement, and the advancement of international peace and security at carnegie.org. the ford foundation, working with visionaries on the front lines of social change worldwide. the herb alpert foundation, supporting organizations whose mission is to promote compassion and creativity in our society. the john d. and catin
will be held responsible. >> the u.s. under pressure to act in syria. >> government forces attacked rebel-held positions near damascus this morning. this follows yesterday's alleged chemical weapons attack. >> hosni mubarak who ruled egypt for 30 years is now expected to be released from prison any moment now. >> bob filner reaches a deal to settle the sexual harassment suit against him. no word on whether it will result in resignation. >> we expect he will consider resigning for the good of san diego. >> and out of control wildfire threatening buildings near yosemite national park. it is only 5% contained. >> look at those flames. >> he said he didn't care if he dies, he don't have nothing to live for. >> newly released 911 tapes revealing the harrowing moments in a school where a gunman threatens their safety. >> we're not going to hate you, baby. it's a good thing you're giving up. >> a big sinkhole is swallowing land, trees, anything in its path. >> an unexpected arrival. huge army hover craft came as huge. >> that's not the only one of those. jason hayward, a broken jaw, in two places. >> one upstairs and stole a computer from our office. and that had all my ideas on it. >> it wasn't jay leno, was it? >> and all that matters. >> the last tapes of the recordings have been released. >> you have saved this country, mr. president. the history books will show that and know what watergate means. >> have you ever texted while driving? >> yes, i have sinned, daryl, i've stopped now. >> mr. weiner? >> yes. >> mr. albany? welcome to "cbs this morning." norah o'donnell is off. good morning, gayle. >> good morning, charlie. busy day today. >> s as are launching more strikes today outside damascus. >> the attacks are happening in the same area where chemical weapons killed hundreds yesterday. margaret brennan is at the state department. >> reporter: good morning to you, gayle, and to charlie. it is not yet possible to verify who carried out the attack or the type of toxic gas used that caused this mass killing, but it raises tough questions about whether any country will take action to stop it. many images of what may be the world's most lethal chemical weapons attack in nearly 30 years are too graphic to show on network television. more than 1,000 civilians died in a gas attack outside damascus accord to syrian activists. the white house said it was deeply concerned and called for an urgent united nations investigation. >> those who are responsible for the use of chemical weapons will be held accountable. >> reporter: this alleged chemical attack took place nearly a year after president obama warned bashar al assad that use of chemical weapons would change his calculus. >> that's a red line for us. there will be enormous consequences if we start seeing movement on the chemical weapons front. >> reporter: when proof did emerge two months ago, the president promised to widen the scope and scale of aid to the armed rebels. those weapons have not arrived. leading to more questions about the obama administration's policy. >> i'm not talking about red lines. i'm not having a debate or conversation about red lines. i'm not setting red lines. >> reporter: this week the president's top military adviser, martin dempsey, says the pentagon is not yet training any rebels. in a letter to congressman, elliott angle, dempsey said, quote, they must be ready to promote their interests and ours. today, they are not. angle, a democrat, said there are military options including missile strikes that the administration should immediately consider. >> i think we have a lot of bad choices to make in syria. and in my opinion, are standing on the sidelines, really doing nothing is the worst choice we can make. >> reporter: assad is winning the war with the help of iran and hezbollah. and now al qaeda is in control of parts of syria. general dempsey will answer questions at 11:00 a.m. about whether those threats merit u.s. military intervention. >> thanks, margaret. more than 19,000 firefighters are battling flames in ten western states this morning. one of the out of control wildfires in colorado, the rim fire, threatens thousands of bill buildings. it is also blocking a major road into yosemite national park. steve large of our affiliate station is about 50 miles west of yosemite. >> reporter: this fire is only about 5% contained right now. it is massive. it's already burned 25 square miles. i got up close to some flames that reached 100 feet high. and let me tell you, they were extreme. in spite an air attack for five straight days, the fire in this national forest west of yosemite with its towering pines and thick oaks is raging out of control. i can feel the heat on my face. these flames are intense. fueled by dry weather and high winds, the rim fire exploded in size, growing 60% in just one 24-power period. threatening 2,500 homes. >> right now, this fire has grown so large. the head is creating its own weather. >> reporter: it has been an unpredictable inferno. jumping highway 120. forcing officials to close this major route into yosemite national park. the park is still open. a thick smoke cloud is moving in this direction. showing the path of pollution from more than 50 fires burning in the west. for now, the nearly 1,100 firefighters battling the rim fire must do so from its perimeter. so far, two homes have been destroyed. many cabins and camp grounds evacuated. >> i think i'm in a little bit of shock, but i'll be balling my eyes out when i start to calm down because this is my backyard. >> reporter: officials here are concerned about getting the upper hand on this fire. they've asked the governor, jerry brown, to declare a state of emergency. the weather report is showing temperatures will reach into the 90s again. making it very difficult for firefighters. there will also be no rain and more wind. the future of san diego's mayor could be decided this morning. mayor filner reached a tentative deal to settle a sexual harassment lawsuit. this agreement could finally mean that filner is ready to resign. bill whitaker is in los angeles with that story. >> reporter: good morning, gayle and charlie. the democratic mayor has been in negotiations with the city and with attorney gloria allred who represents some of his accusers. now it seems that mediation could be leading to an end to this six-week-long saga involving filner, the women, and the city of san diego. >> we have reached a proposed resolution. >> reporter: the tentative agreement with democratic mayor bob filner came late wednesday after three days of closed door negotiations. a source close to the talks tell cbs news that a resignation is part of the settlement but nothing is official till the city council approves the agreement on friday. >> our process, city hall, as well as the mediation process, requires we maintain the confidentiality of the proposal until they have heard of it. >> reporter: shortly after the deal was announced, filner was spotted entering an suv loaded with what appeared to be several boxes. he was then whisked away from city hall. the latest development came on the same day filner's 18th accuser went public. >> because i thought it was exciting to get to meet the mayor for the first time -- >> reporter: business woman diane york said the 70-year-old made unwanted ed aed advances her during this photo op. >> when we posed for the photo, there was a hand that went to my back to my buttocks and i was shocked, it was inappropriate, and i was startled at the time. >> reporter: since allegations against filner first surfaced, calls for his resignation have only grown. with the petition drive in full swing. >> throw bob out! >> reporter: still, his supporters say he's being denied due process. >> how would you feel if your father, your son, your brother, your husband, were accused? allegations. no evidence. no facts. >> reporter: it seems that if the mayor does step down, the city will waste no time in trying to find a replacement. the union tribune, san diego's largest newspaper, reports that aides to potential mayoral candidates have been told they can expect a special election campaign to begin as early as saturday. we're hearing the 911 calls this morning from the woman being hailed as a hero after tuesday's school shooting east of atlanta. mark strassmann interviewed one of the first officers on the scene. he's in decatur, georgia. mark, good morning. >> reporter: good morning, charlie. when the 911 call came in, lieutenant consuela howard was in the car ready to confront the crisis. all the cop knew it was a school full of kids. >> we had an immediate situation. immediately, i came on the radar, we need s.w.a.t. >> reporter: lieutenant howard, from her position at the site of the school, could not see the gunman menacing the front office. michael hill, armed with an ak semiautomatic rifle, had a hostage. antoinette tuff, the schoolbook keeper who called 911. >> he just went outside and started shooting. >> reporter: hill stepped outside three times to shoot at police. >> they were actually showing up, they were pulling up at the time, this young man came to the door and just started firing. >> you knew there was somebody inside with a gun and knew there were hundred of kids in that school. >> yes, yes. >> that had to be worrisome. >> scary. it was very -- it was frightening. >> reporter: inside, the shooter told the bookkeeper to warn the 911 operator that police had better pull back. >> he doesn't want the kids. he wants the police. so back off and -- what else, sir? he said he don't care if he die. he don't have nothing to live for. he said he's not mentally stable. >> reporter: the gunman inside was bipolar and schizophrenic according to what his brother told cbs news. the schoolbook keeper convinced him to put down his weapon and give up. >> well, don't feel bad, baby, my husband just left me after 33 years. i mean, i'm sitting here with you and talking to you about it. i got a son that's multiple disabled. it's going to be all right, sweetheart. i just want you to know that i love you though, okay, and i'm proud of you. that's a good thing you're giving up. don't worry about it, we all go through something in life. >> reporter: police rushed the front office and arrested the gunman. >> do not move. >> i think as a whole, as an entire community of law enforcement, we did an outstanding job. we're not saying we're better than anybody, but we made sure that those kids were not hurt that day. and that's all i can -- i can say. >> reporter: when police arrested hill, howard was right there and she says that he said nothing, offered no resistance. on a table in that front office, police found his ak-47 lying on the table along with 500 rounds of ammunition. charlie and gayle, he could be arraigned later today on multiple felony counts. >> thank you, mark. stocks are up this morning following a rare losing streak after an up and down day yesterday. the dow jones industrials lost 105 points. that is the sixth straight day of losses. the average closed below 15,000. anthony mason is here. anthony, good morning. >> charlie, how you doing? >> so it's august. >> you said it right. >> what's going on? >> the markets worried about the fed. it's as simple as that. the fed didn't make it any clearer yesterday whether it's going to do. the fed said it's going to taper. it's going to pull back on the stimulus pumping into the economy. the big question, when is it going to do that? the minutes came out yesterday that shows the fed is divided on whether it will pull back. the lack of clarity has made the market nervous. it's still up 15% for the year. >> when it pulls back, what happens? >> when it pulls back, it's just a sign that, you know, people are waiting to see where the economy is going to go. till the fed send ace clear signal, this is what we're going to do, you've got people jockeying for position. >> there's a new report that says salaries have been flat for workers for the past decade. does that factor into the economy? >> i think it tell, ys you what felt. despite signs the economy is working, for the average worker, things aren't getting better. wages have been flat for a decade. the other thing that peep forget here is despite the recession, the job market was bad even before the recession. we were on course for the worst job growth in 40 years. it's only gotten worse. >> an economy needs ku s consum demand to fuel growth. >> i think what this economy is waiting for is some big new change. like we have the dotcom boom that saved essentially that decade in terms of job growth. we haven't seen that happen yet. >> all right, anthony mace son thanks. vice president joe biden says his son will leave a houston hospital today and return to delaware. the vice president says bo biden had a successful medical period at the md anderson cancer center. the statement did not reveal what kind of procedure it was. 44-year-old bo biden is massachusetts attorney general. he was hospitalized after feeling disoriented. former egyptian president mubarak is getting out of prison this morning. taking him from prison to a military hospital where he will be held under house arrest. mubarak still faces charges related to the protest that forced him out of office in 2011. his release comes in the middle of a deadly crackdown against opponents of the militarybacked government. this morning the man at the center of china's biggest government scandal in 30 years went on trial. he used to be one of china's senior leaders. he is now charged with bribery, corruption and abuse of power. seth doane is in beijing. seth, good morning. >> reporter: good morning. this scandal has rocked china over the last year and it continues top. it was expected to be a quiet scripted day in the courtroom today. it was anything but. it was our first glimpse of bo xilai in months. since this once popular leader and rising star of the communist party fell from power. prosecutors charged that bo received bribes totally $3 million. a defiant bo said bribery allegations were untrue. the disgraced politician was also charged with abuse of power and epbezelment. prosecutors say he embezzled the equivalent of $820,000. the bribe in embezzlement amounts are ridiculously low for a communist leader in a position like his, he tells us. you said it has been predetermined. explain that. it's to make sure bo won't cause difficulty for the leaders of this regime, he told us, and to make sure the case does not trigger the public to make association, such as how much money do other leaders get. this scandal and bo's abuse of power charge stem from the 2011 murder of british businessman neil heywood who had been a close business associate of the bo family. bo's wife confessed to killing heywood. she said she killed him to protect her son. other reports speculate it was a feud over money. foreign media were not aloud in the courtroom. so details were pieced together through transcripts. china's courts are controlled by the ruling communist party and have a 98% conviction rate. the state broadcaster reported today that the trial is expected to last two days. with a verdict expected in september. time to show you some of this morning's headlines from around the globe. the national security agency misled the federal court that surveys its surveillance programs. that's according to declassified documents. one of the nsa's surveillance programs gathered tens of thousands of domestic e-mails each year from americans not connected to terrorism. the chief judge at the time found the nsa had violated the constitution. in texas, the paper says closing arguments are expected today in the trial of major hasan. he's charged with killing 13 people in the ft. hood shooting. hasan represented himself and made no attempt to prove his innocence. according to britain's guardian, told him to resign during a mystical experience. the 86-year-old benedict stepped down in february. the first pope to do so in 600 years. z net says yahoo! was number one in internet traffic last month. yahoo! got a boost after buying the popular blogging site tumblr starting out with some low clouds around the bay area this morning. the thunderstorms are out of town. that means we're going to watch things calm down become more seasonal outside. clouds trying to break up out over the bay. we are going to see more sunshine there today. and looking good. low pressure finally scooting out of the way. that means well, we're going to see some sun this afternoon and no threat of thunderstorms. inland. around the bay. patchy fog toward the coast. next couple of days, warming up into friday. then cooling down a few more clouds over the weekend. this national weather report sponsored by famous footwear. famous brands, famously easy. famous footwear. victory is yours. the last of richard nixon's white house tapes show a president under sgleiege. >> i'm never going to discuss this [ bleep ] watergate thing again. never, never, never. >> was it really a secretary who erased 18 1/2 minutes of crucial information from those tapes? this morning investigators say who they believe actually deleted history. plus peter greenberg goes where the atlantic meets the pacific. >> one of the largest, most immense engineering projects in the history of the world, the panama canal, is about to be upstaged boy an even bigger panama canal. that story coming up next. the news is back in a minute on "cbs this morning." stay tuned for your local news. >> this portion of "cbs this y's. hershey's makes it a s'more. you make it special. chocolate n that brings people together. when the chocolate is hershey's life is delicious. ♪ ♪ nothing says, "i'm happy to see you too," like a milk-bone biscuit. ♪ say it with milk-bone. softens the enamel so it can potentially erode. once that enamel is gone, it's gone. my dentist 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[ male announcer ] with new smucker's natural fruit spreads, every day can be truly extraordinary. ♪ spread a little sunshine with naturally delicious smucker's natural. cauguiran is on the scene oa shooting at turk a good morning, i'm frank mallicoat. we have some breaking news in san francisco. kpix 5 reporter cate caugiran on the scene of a shooting at turk and taylor streets. >> reporter: we just saw officers take away a man in a police car just moments ago. they are questioning another. we're not sure about their involvement. all we know is they came out of here at the taylor street apartments. just to give you a brief rundown, this happened around 6:30 a.m. a man was just outside the hotel warfield shot once or twice in the leg. now we understand that traffic is blocked in the area. so be advised if you are heading through the tenderloin district this morning. live in san francisco, cate caugiran, kpix 5. >> cate, thanks. traffic and weather coming up in just a moment. ,,,,,,, good morning. chp traffic alert has been issued in oakland. it's because of a stalled big rig. it's blocking one lane southbound 880 approaching oak street. delays from the 980 interchange. they say it could take at least an hour to clear it out of lanes. the trailers are empty. let's go live to the area. this is a little farther south of the stall. this is near the oakland coliseum. northbound sluggish towards high street. bay bridge, metering lights have been on for about an hour and a half. it is jammed solid through the macarthur maze. that's the latest from here. here's lawrence with the forecast. >> all right. low clouds along the coastline and inside the bay some of the valleys. looking good here at the mount vaca cam. a lot of sunshine coming our way and the thunderstorms have headed out of town into far northern california. so we'll clear things out here. 50s and 60s right now. by the afternoon, temperatures running a little cooler than normal. sunny in san jose this afternoon. 76 in redwood city. 63 and patchy fog in pacifica. a little warmer tomorrow. cooling down for the weekend. ,,,, ♪ ♪ ♪ [ male announcer ] introducing live tv from southwest. now you can turn your device into your television. try it for free today, only on southwest airlines. on the air. in the air. with live tv. take a look at this, this giant sinkhole in southern louisiana. it swallowed trees in a matter of seconds last night. sinkhole first appeared more than a year ago in assumption parish. it now covers 25 acres. it's hundreds of feet deep. it's expected to keep growing. the sinkhole has caused a little tidal wave in that swamp. i'm always amazed that somebody has a camera somewhere to capture that. it's amazing video. >> welcome back to "cbs this morning." coming up in this half hour, the panama canal is the most famous shortcut in the world, but after 99 years, shippers say it is not big enough anymore. we'll show you the historic project to expand the canal. that's ahead. and only on "cbs this morning," an answer to one of the lasting questions from watergate. who erased 18 minutes from richard nixon's oval office tapes? we'll hear from two investigators in a moment, but first the nixon presidential library has released the final 340 hours of those tapes. they were recorded more than a year before the watergate scandal forced nixon out of office. bill plante is outside the watergate complex in washington where it all began years ago. bill, good morning to you. >> reporter: good morning, gayle. good morning, charlie. you know, it was in june of 1972 that burglars entered the offices of the democratic national committee, broke in. it was eventually traced to the white house. the release of president nixon's phone calls and conversations shows him consumed by the scandal. the new tapes from the spring of 1973 show an embattled president preoccupied by the watergate scandal. in daily conversations with aides, he would strategize a way forward, and the tapes capture his frustration. >> i'm never going to discuss this [ bleep ] watergate thing again. never, never, never, never. >> reporter: his national security adviser, henry kissinger, assured him that no one would remember. >> you have saved this country, mr. president. no one will know what watergate means. >> reporter: but the world does know, from hundreds of hours of recordings. >> the impeachment process is getting under way here, but we've seen nixon kind of going solo. his unpluggedness is he doesn't have anybody. >> reporter: before the existence of the tapes was revealed in july, 1973, nixon asked chief of staff bob haldeman to dispose of the evidence from watergate. >> most of it worth destroying -- >> reporter: the tapes were never destroyed, something nixon said later he regretted. at the end of april he desired to fire white house counsel, john dean. >> today in one of the most difficult decisions of my presidency, i accepted the resignations of two of my closest associates in the white house. >> reporter: following the speech, the president took calls from supporters. he asked the reverend billy graham about tv coverage of his speech. >> what did cbs do? >> reporter: two future presidents also called. then republican party chairman george h.w. bush. >> i really was proud of you. i know it was tough. >> and ronald reagan. >> we're still behind you out here and i want you to know that you're in our prayers. >> how nice of you to say that. >> this too shall pass. >> everything passes. thank you. >> reporter: but of course watergate didn't pass, and several years later in a long interview with david frost, nixon said he wished that he had ordered them to carry out the destruction of the tapes. he also told the speechwriter of that april address to add a paragraph saying that he, the president, might have to resign. he didn't say it that night, but it happened 16 months later in august of 1974. gayle, charlie. >> thank you, bill. president nixon spoke with bob haldeman three days after the watergate break-in when investigators listened to the tapes, there was an 18 1/2 minute gap in that recording from june 20th, 1972. it became one of the biggest mysteries of watergate. nixon's secretary, rosemary wood, said she erased the tape accidentally by stepping on a pedal while reaching for the telephone. after a comprehensive review, two men think they know who really did it. phil houston is a cia interrogator and james robenalt is a nixon historian. welcome. so who did it? >> well, we think all the evidence shows that nixon actually erased the tape originally, sometime in july of 1973. >> what's the evidence? >> the evidence is that you start with rosemary wood on october 1, 1973. she's listening to the tape. she answers the phone. she said she pushed the record button down. that can't do anything. the experts now tell us that would have done nothing. it would not have created a buzz. he gets off the phone, she stops it, rewinds, comes back, there's a buzz. so it's already there in the tape. she didn't do it. she couldn't have done it. to cause the erasure she had to do two fingers down on buttons simultaneously. she never said she did that. she did not erase it, it was already there. >> when we reviewed nixon's grand jury testimony, which was released just a couple of years ago, there's a high volume of deception, charlie, whenever he's asked about his involvement with the tapes. >> so in other words -- >> yeah, like what? when you say high volume of deception. for instance? >> there's a ton of what we call evasion behaviors. so, for example, probably 60%, 70% of the questions he starts by saying, well, i don't recall or i don't recall specifically. things that -- many things that he should recall. >> do you think he had help? >> yeah. the evidence suggests that hague was assisting him doing this. rosemary wood walks into the president the day that she does this accident and says i think i did this. an hour later, hague and nixon get in a car, leave the white house and drive around washington for two hours. now, nixon says we were talking abouting about agnew's resignation. no doubt they were. it would appear october 10th. but clearly she says she thinks she did it. from that point forward somebody did five to nine erasures. >> and who was that? >> he was going around the white house during this period of time asking people to take the fall. >> what has he said about it? he obviously denied this before he died. >> nixon did something very, very interesting in his grand jury testimony. when he was asked a rather benign question, he stopped mr. davis and said you're probably wondering why i've been spending so much time with mr. hague, to include i've taken a two-hour, hour and a half or two-hour car ride with him. i just want to let you know you have nothing to worry about. don't worry about us. all we talked about in the car ride was agnew's resignation. >> did it say anything to either of you that they even took such a long car ride? at the time hague at one point said there are sinister forces at work here. >> first of all, they had to get out of the white house and that tells you something. >> because? >> the mikes had been cut, so they're leaving because they're worried that maybe somebody was going to tape what they said. they were talking about agnew but they were also -- watergate was front and center at that point. they were very worried about a lot of things. but this was front and center. >> i often wonder, jim, why not just erase the whole tape as opposed to leaving a gap, which makes it look suspicious? why not just erase the whole thing and say i don't know anything about anything. >> the better question for him was why didn't you destroy the tapes? john connolly said take them out into the rose garden and burn them. but he only got rid of the watergate portion of that tape. >> quickly, why did it take so long to reach this conclusion? >> because it dropped. as soon as nixon resigned, nobody was indicted, there was no criminal proceeding, it totally dropped. everybody looked at can we technically recover this. nobody has looked at all the circumstances and talk to the experts who actually were talked to back at the time but never had their five minutes. >> and now with this new revelation, does it change anything do you think? >> you know, i think to me this is further evidence that the president was in what we call lost frame. john dean and i see a ledid a c attorneys. when you have two situations like bill clinton, i've got to say something bad, you will act irrationally and this was richard nikds acting irrationally. >> thank you both. imagine a navy of one million ships and boats. that's how many vessels have passed through the panama canal since it opened 99 years ago. we'll show you how this important channel is now getting a makeover. that's next on "cbs this morning." so there i was again, explaining my moderate to severe chronic plaque psoriasis to another new stylist. it was a total embarrassment. and not the kind of attention i wanted. so i had a serious talk with my dermatologist about my treatment options. this time, she prescribed humira-adalimumab. humira helps to clear the surface of my skin by actually working inside my body. in clinical trials, most adults with moderate to severe plaque psoriasis saw 75% skin clearance. and the majority of people were clear or almost clear in just 4 months. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. make the most of every moment. ask your dermatologist about humira, today. clearer skin is possible. exciting and would always come max and pto my rescue. bookstore but as time passed, i started to notice max just wasn't himself. and i knew he'd feel better if he lost a little weight. so i switched to purina cat chow healthy weight formula. i just fed the recommended amount... and they both loved the taste. after a few months max's "special powers" returned... and i got my hero back. purina cat chow healthy weight. ♪ >> the panama canal was a miracle of modern engineering at the time it was built. it also revolutionized world trade. the famous waterway is now getting an upgrade. cbs news travel editor peter greenberg has the story of this expansion. >> reporter: it is one of the biggest construction projects the world has ever seen. it's all about dollars and size, but in this case, bigger may be better. the panama canal has been called a wonder of the modern world. using a system of locks built 99 years ago, the 48-mile canal shortened the trip between new york and san francisco by 8,000 nautical miles, forever changing the way goods crisscrossed the globe. in 1914 when they opened the panama canal, linking the atlantic with the pacific ocean, it was an engineering marvel unmatched in the history of the world. now, nearly 100 years later, they're about to do it again, only this time much, much bigger. the only way to get a sense of how really big this is, is from above. the 5.25 billion dollar expansion can be clearly seen not far from the original canal. it massive project includes the drenling of miles of ocean floor. a four-mile bypass channel is being built, along with new locking systems that will raise and lower some of the largest ships on the planet. luis herrera, an engineer with the panama canal authority, traveled with us to the canal's atlantic entrance. he showed us a backlog of ships waiting to make the ten-hour transit. >> all these ships are waiting to go in the locks? >> that's right. >> maybe tomorrow, maybe the next day? >> exactly. >> the other locks will help them move faster? >> yes, exactly. >> more ships. >> more ships. >> reporter: but it's worth the wait. ships save an average of 29 days by using the canal and not having to go around south america. each day, up to 40 ships transit the canal, and each one is charged a fee based on how much cargo they can hold. up to $500,000 a ship, full or empty. these ships are called panamax and their dimensions are precise. there's no margin for error, and most pass through the canal's locks with only five to six inches to spare. the expansion will double the canal's current capacity to accommodate the much larger post-panamax vessels being built. the new canal, those ships will pay three times more? >> exactly. >> close to a million dollars? >> that's correct. >> reporter: by 2025, officials expect revenues from the canal to exceed $4 billion. but it's not only panama that will benefit from an expanded canal. the u.s. economy will also feel the impact. u.s. ports are upgrading facilities to attract supersize ships that will be transiting the new canal. >> now you will have the goods going through the panama canal and arriving directly to the eastern seaboard, so you'll have a lower cost of movement of the cargo. >> so to bring it down to the most local level, this shirt was on a ship like this? >> that's right, definitely. >> reporter: but the bottom line, it's all about lower shipping costs. so for panama and the world, a bigger canal creates a win-win situation. >> announced they're looking at ways to build their own canals to get in on the action, but so far only panama has been successful. >> thank you, peter. it is now starting out with some low clouds around the bay area this morning. the thunderstorms are out of town. that means we're going to watch things calm down become more seasonal outside. clouds trying to break up out over the bay. we are going to see more sunshine there today. and looking good. low pressure finally scooting out of the way. that means well, we're going to see some sun this afternoon and no threat of thunderstorms. 80s inland. around the bay. patchy fog toward the coast. next couple of days, warming up into friday. then cooling down a few more clouds over the weekend. the u.s. military is ready on a moment's notice to secure chemical weapons when they get into the wrong hands. we'll take you along with the paratroopers who are training for that mission. that's ahead on "cbs this morning." 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contained. bradley manning sentenced to 35 years in prison for leaking classified information. now he is writing to the president to explain why he gave up top secret documents and he is also telling a news organization he is going to live the rest of his as a woman. traffic and weather right after the break. now it's posturepedic versus beautyrest with big savings of up to $400 off. serta icomfort and tempur-pedic go head-to-head with three years' interest-free financing. plus, free same-day delivery, set-up, and removal of your old set. when brands compete, you save. mattress price wars are on now at sleep train. ♪ your ticket to a better night's sleep ♪ good morning. we have several different accidents or stalls thousands of problems around the bay area. first to oakland, the stalled rig is still out there blocking one lane. southbound 880 right there by oakland street caused a traffic alert. they are saying about 8:30 they hope to reopen lanes. in the meantime, it's backed up both directions but definitely southbound at least the 980 interchange. danville new york 680 at el cerro boulevard accidents causing slowdowns. >> low clouds in the bay area but things calming down as far as thunderstorms are concerned. they are moving into far northern california. looks like a fairly normal day around the bay area. the clouds creeping well onshore this morning. you can see sunny breaks there. by the afternoon, though, these 50s and 60s going to warm up nicely still below average but comfortable. a lot of 70s inside the bay. 80s in the valleys. 60s at the coastline. even warmer for tomorrow. good morning to you. it is 8:00 in the west. welcome back to "cbs this morning." eye wild fire is raging out of control near yosemite national park. thousands of homes and other buildings are threatened. we'll take you to the scene ups says because of obamacare, it cannot afford health coverage for thousands of workers spouses. mellody hobson will tell us what it means for your company trisha yearwood is a star on the stage and in the kitchen too. she will tell you how she uses music and food to feed her soul. first, a look at today's eye opener local officials are very concerned about getting the upper hand on this fire. they have asked the governor, jerry brown, to declare a state of emergency. >> i can feel the heat on my face. these flames are intense. syrian forces are launching more strikes today outidentify damascus. >> the attacks are happening in the same area where rebels claim chemical weapons killed hundreds yesterday. >> now, it seems that mediation could be leading to an end to this six-week long saga sofg the women and the mayor and the city of san diego. people are waiting to see where the economy is going to go. until the fed sends a clear signal, this is what we are going to do and this is when we are going to start, you have people jog giing for position in answer to the last question, who erased 18 minutes from richard nixon's oval office tapes. >> we think all the evidence shows that knicnixon erased the tape. >> when they opened the panama canal, it was an engineering marvel unmatched. now, nearly 100 years later, this he are about to do it again, thoenl tionly this time, much bigger a surprise for the sun batheers in russia. they said, they are not sure why civilians were on the beach. >> they were not sure were the hovercraft was there. i'm charlie rose with gayle king. no a norah o'donnell is off. 51 wildfires are burning this morning. the smo he can ke is generating of pollution. >> one fast-growing fire near yosemite threatens thousands of homes. steve large of kobr is in groveland, california, about 50 miles west of yosemite. >> reporter: good morning, charlie and gayle. this is day six of this fire fight that is intensifying, growing some 60% in one 24-hour period. we've seen flames 100-feet high soaring, breaking containment lines. there is no estimate for the time of containment. forcing firefighters to close one of the main roads that leads into yosemite national park, a popular tourist spot during the end of summertime. two homes have been destroyed. 2500 are still threat ened and there are more than 1,000 firefighters on the fire line. they will be facing temperatures reaching into the 90s with no rain and more wind. for "cbs this morning," steve large, groveland, california. new fighting in a suburb of dam as cass, syria, when a chemical attack happened yesterday. hundreds of civilians died from exposure to toxic gas. the assad regime denies those claims. the u.s. military is getting ready to seize chemical weapons anywhere in the world. david martin went on a training mission with the famous 82nd airborne. >> reporter: in the small hours of the morning, para troopers training at ft. bragg, north carolina, conducted an assault on a compound they were told chemical agents were sford. after a decade of fighting insurgents in iraq and afghanistan, it was a new mission for the soldiers in colonel mike fenzel's brigade. >> it is one we vice president addressed over the last 12 years because we have been focused on afghanistan and iraq. >> reporter: it was just an exercise but major john nicholson said it was designed to deal with a real world threat. >> as we look at the evolving situations in syria and other places around the world, we're preparing to deal with the reality of securing chemical weapons. >> reporter: the 82nd airborne is kept on constant alert ready to load and launch 1,000 para troopers and their gear in 18 hours to anywhere in the world. in this exercise, they jumped from 800 feet to seize two dirt airstrips in the woods of north carry care. >> one airfield is challenging by any measure. two airfields simultaneously creates incredible command and control challenges. >> what chemical weapons are involved, what does that do to the operation? >> it increases the difficulty in terms of the equipment you have to carry and in terms of the expertise. you have to integrate into the operation. >> most of the troops in the 82nd are combat veterans. few have had experience dealing with chemical weapons. in this exercise, they found a component for the deadly nerve agent, vx. one of the chemical agents syria is known to have. >> i think it weighs on our troops, because it is the fear of the unknown. they haven't trained for it before. they are not sure what to expect. >> reporter: seizing serious chemical weapons would be a major, high-risk operation. this exercise used 30 aircraft to drop the troops and their equipment. in the real world, those low, slow-flying planes would be exposed to ground fire. it is an operation the 82nd airborne division is preparing for should they ever get the or. for "cbs this morning," david martin, ft. bragg, north carolina. a perfect example of how the military constantly has to prepare for new challenges. it is nice to see they are there and they are ready to go. new figures from a liberal think tank show that most american workers have not had a raise for more than a decade. the economic policy institute finds the median weekly wage in the u.s. is now $768. that's the same as it was 12 years ago when adjusting for inflation. workers became much more productive during that period. 70% of them are actually making less money today. ups says it will drop 15,000 spouses of employees from the health insurance plan. the pack is delivery company. one reason is the cost of the affordable care act. ups is one of the first major firms to directly blame obama care for change in coverage. mellody hobson is in san francisco. good morning. >> how significant is this move by ups in terms of what impact it might have on other companies? >> this is actually a really big move. they are a major employer. they employ almost 400,000 people. they have been very direct about why they are doing it. money, they say this move will save them $60 million. their health care costs have been escalating 7% a year. next year, they are saying, they are expecting 11.25% and they can't afford it. i think at the end of the day, it will give a lot of other big employers permission to do the exact same thing. >> they will use obama care as a sort of reason for doing things they want to do anyway. >> i think at the end of date, employers want healthy employees. they want people to have coverage. they are just struggling with how to pay for this. >> is it a surprise a company would cut health care costs if your spouse can get it at other places? is that a bad thing to do? >> it is actually not. at the end of the day, the spouse will be covered. those days of where you used to sit down with your spouse and go over each other's benefit plans and pick the best one. those days are probably over. you won't have that option on a going-forward basis in many companies. >> how does it feed the controversy over obama care? >> i think it really does get to this whole point. a huge debate about the cost, saying it is too expensive to cover all these people. one thing that is coup he key t issue for the white house, they need young people to be covered. the more young people that go into the system who have very little need on an ongoing basis for health care, specially in the early years, that helps supplement the cost of people in later years. young people going in will be extremely important. will the young people say, instead of coverage, i'll just take the penalty? which it won't be very much but over the long-term will rise to be quite significant. >> mellody hobson, thank you very much. tiger woods is blaming a soft hotel mattress for throwing him off his game. he was forced to pull out of the last nine holes at a pro-am event. >> my neck and back are a little bit stiff. it was stiff this morning after a soft bed. just one of those things about sleeping in hotels. i didn't want to push it. so i just took it easy and chipped and putted. >> he says his back is fine and he has gone and gotten a new bed. charlie, you are the only one that plays golf at this table. can a mattress throw off your game all that much? >> i don't think so. whatever tiger says i would believe. he didn't seem to be making,, you can avoid the flew by getting a shot every year. it might prevent even bigger problems. dr. david agus looks at new evidence linking flu shots to a lower risk of heart attacks tomorrow, we will meet the ceo of harley-davidson. they are marking their 110th anniversary with some impressive celebrations. that's tomorrow on "cbs this morning." 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[ bottle ] ensure®. ,,,,,, do you see the 10% back in points, aw baby, i'm seeing triple again. plus another 10%, plus free shipping? yeah. you're good. this is the member triple play deal. this is sears. it's week three that time warner is blacking out cbs. they released this announcement today. >> there is a lot being said about our decision to drop cbs from our lineup. we've received your numerous e-mails and phone calls expressing displeasure and demandig cbs's return to our service. our executives have been dealing with this issue 24 hours a day, seven days a week since this began. while it is a very complex situation involving many different issues, we at time warner cable want our customers to know one thing. we don't care. >> that's right. >> any comment? >> i have lots to say but i'm going to follow his lead. this morning, researchers say there is another reason to get a flu shot this fall. a new study shows that when certain people are vaccinated, the risks of a heart attack falls which up to 45%. dr. david agus is in los angeles. good morning to you. >> good morning, gayle and charlie. >> what is the connection between a flu shot and a heart attack? >> it is an exciting study, because it gives us the link that we were missing. we had data before that if you got the flu, you had a dramatically higher rate of heart attacks. now, we have the missing piece. if you get a flu shot, a 45% reduction in this australian study in a heart attack. it is no thet a cause and effec. it is an association. >> what's the science behind it? >> it is pretty wild. when you get a cut on your leg, it is inflammation. you can think about it. you have inflammation in the arteries in your heart. when you get the flu and you get that inflammation with the flu, it is going to make what's going on worse. it can block one of the arties and lead to a heart attack. >> is it possible this could extend to other diseases? >> we have data that getting the flu shot or not getting it will lower your rate of heart disease, cancer and obesity. everybody over the age of six months should get a flu shot. this is another example of why that is true. what do you say to people? i am one of those people. >> gayle, i'm going to hit you in the head. it is a no-brainer to get the flu shot. gayle, if you got the flu, four or five days, you would survive. a decade from now, your rate of heart disease and cancer are higher. your rate of heart attack will be lower if you get the flu shot. when we see stories like we just saw on ups, dramatically rising health care costs that are causing changes, we have to ask the question, why are things like flu shot optional? >> you believe that everybody over six months should get a flu shot? >> i think the data merits we should all get it. >> the evidence is very compelling. dr. agus, good to see you a few years ago, trisha yearwood gave up singing for cooking. now, she is ready to restart her nashville career. trisha talks this morning about the two stars she may be working with. all that mattered three years ago, a note surfaced that had the whole world cheering. do you remember what it said? the answer is next on "cbs this morning." my name is lee kaufman. married to morty kaufman. [ lee ] now that i'm getting older some things are harder to do. this is not a safe thing to do. be careful babe. there should be some way to make it easier [ doorbell rings ] let's open it up and see what's cookin'. oh i like that. look at this it's got a handle on it. i don't have to climb up. this yellow part up here really catches a lot of the dust. did you notice how clean it looks? morty are you listening? morty? [ morty ] i'm listening! i want you to know morty are you listening? morty? ,,,,,,,,,, all that mattered three years ago today, 33 miners were found alive in a collapsed mine in chile. 17 days after the collapse. rescuers drilled a hole more than half a mile underground in an attempt to make contact. when the drill surfaced, a note was attached that read we're all well in the shelter, 33 of us. international rescue teams spent the next two months drilling a hole large enough to safely remove the miners. on the morning of october 13th after a 24-hour operation, the last of the 33 miners were brought to the surface to be reunited with family and friends. >> i remember that. >> great moment. >> i remember that note, i remember that story. i'm greg norman and spike lee. you remember that story? remember when the note came out? >> greg, you think spike could make it as a golfer? >> yes, he could. he has some interesting stories. >> i heard spike say i don't play golf but i live near one. ,,,,,,,,ood enough. look at 'em. living on cloud nine with that u-verse wireless receiver. you see in my day, when my mom was repainting the house, you couldn't just set up a tv in the basement. i mean, come on! nope. we could only watch tv in the rooms that had a tv outlet. yeah if we wanted to watch tv someplace else, we'd have to go to my aunt sally's. have you ever sat on a plastic covered couch? [ kids cheering ] you're missing a good game over here. those kids wouldn't have lasted one day in our shoes. [ male announcer ] switch and add a wireless receiver. get u-verse tv for $19 a month for 2 years with qualifying bundles rethink possible. >> your realtime captioner: linda marie macdonald it'sle:25. i'm michelle griego -- 8:25. i'm michelle griego with your kpix 5 headlines. roads are now reopened in the tenderloin neighborhood of san francisco. the area was closed off after a person was shot near turk and taylor streets around 6:00 this morning. information on the suspected or victims' conditions haven't been released. students from city college of san francisco will hold an assembly today to help save their school. the college's accreditation was revoked and will end next year. dozens of students were arrested last tuesday after a protest outside mayor lee's office. today's assembly will be at 4:00 on campus. >> an army veteran from san jose needs your help finding his service dog. lobo, a german shepherd-collie mix ran off in the city after being spooked by a loud noise in the berryessa area. the dog's owner was training it to help wounded vets. call the number on the dog's caller if you find it. traffic and weather coming up. ,, ,,,,,,,,,, good morning. the delays are bad up and down the nimitz freeway. that's all because of a stalled big rig that's blocking lanes for more than an hour. it's in the southbound direction but check out what it's doing to the northbound ride. extra backed up from san leandro. let's go to our maps and i'll show you what we're talking about. southbound 880 approaching oak street. that's where that stalled out big rig is still there. traffic alert is in effect. it is jammed solid past the 980 interchange. also, still heavy traffic in danville because of an earlier accident now off to the right- hand shoulder. it was northbound 680 approaching el cerro boulevard. that's traffic. here's lawrence. >> starting out with low clouds and following around parts of the bay area right now. the good news is the threat of thunderstorms has come to an end. looking towards san jose, we have some cloudy skies there. delays at sfo of over an hour on arriving flights and headed out to chicago delays because of thunderstorms. 50s and 60s right now. by the afternoon, we are looking at still some 80s inland, 60s and 70s around the bay and 60s patchy fog toward the coast. a little warmer tomorrow then cooling down over the weekend. ,,,,,, female narrator: it's posturepedic versus beautyrest it's posturepedic versus beautyrest with up to $400 off. serta icomfort and tempur-pedic go head-to-head with three years' interest-free financing. mattress price wars are on now at sleep train. ♪ your ticket to a better night's sleep ♪ welcome back to "cbs this morning." coming up in this half hour, a great half hour. golf legend greg norman is in longer on the tour, but he's not letting any grass grow under his feet. his company has designed dozens of golf courses around the world. his business empire sells everything from eyewear to wine. and he joins us here in studio 57 this morning. >> sitting next to his lovely daughter, morgan. also country music star trisha yearwood talks with our jeff glor about her passion for singing and supper. she also reveals her plans for a new touring collaboration that will make headlines. right now time to show you the headlines from around the globe. "the new york times" says maria sharapova is withdrawing from next week's u.s. open. she said her right shoulder is injured. she was seeded third but has only played one match on tour since losing at wimbledon two months ago. "the los angeles times" says actor wentworth miller has revealed he is gay to protest russia's anti-gay laws. the star declined an invitation to the st. petersburg international film festival in russia. miller says, quote, i am deeply troubled by the current attitude toward and treatment of gay men and women by the russian government. and "the times" of london says the london zoo's annual weigh-in has come to an end. the tricky part was getting the animals on the scale. the statistics are part of a database used by researchers around the world. and in just 30 days, spike lee raised $1.4 million for an upcoming movie used in kick starter. that's a website that helps people pay for creative and independent plaunls but it's come at a price. it has been criticized by some fans in hollywood alike. spike lee is here to join us. what a surprise, spike lee, you being criticized. but this is a deal. people say, look, he's rich, he's successful. why doesn't he just open up his checkbook and write a check and pay for his own movie. to that you say? >> wi put money into my film. i self financed a lot of my films. my entire part for "malcolm x" was put into the budget. >> i think the thinking is you're taking money away from other filmmakers who wouldn't be able to get the money or have access. >> no, that's not true. the co-founders of kickstart have data. they have raised $5 million or $3.5. so i have brought people to kickstarter who didn't even know what it was. >> what is it? >> it's a new thing called crowd funding. there's two big things here, kick starter and indigogo. so crowd funding is a way where you can go -- i've been making films since 1986 so i have a fan base. i went directly to my fan base and said help me get this new film made and that's what we did. >> what's this new film? >> well, our goal was one 250 as we say in brooklyn but we raised more. >> more than your goal. >> yes. >> you're the artistic director and you heard about this from one of your graduate students who said, hey, what did he say to you and what was your response? >> i've been teaching 15 years and it's a three-year program. i only teach the students who make it a third year. they have to do a thesis film. they have been using kickstarter to get the completion funds for their film for $5,000, $10,000, $20,000. but my t.a., a fellow morehouse brother told me, spike, you need to check out veronica mars raised $5.5 million. zach brat -- >> but are you taking money from young filmmakers because there's only so much money out there to make films? >> that's not true. charlie, where did you go to school? they should teach you better than that at unc. >> no, he went to duke. he went to duke. >> let's talk about basketball for a moment. kickstarter, you've got your money and will make your film, right? >> right. >> basketball, are you thrilled about the fact that the brooklyn nets have three of the best players from the celtics so we'll have a genuine rivalry between the knicks and the brooklyn nets? >> three old players from the celtics. >> well, time is now, george allen used to say. the future is now. >> are you on the russians' payroll too? >> no. >> get some money from him. there you go. >> i am curious about kickstarter for you. were you worried about reaching your goal? i was tracking it in the beginning. it didn't seem like the money was pouring in. was it something that you had to work very hard to get this money? were you worried about it? because if you hadn't reached your goal, you would get nothing. >> here's the thing, though. once i decided to be a filmmaker back at morris college, anything i work my butt off for me. i'll go as far as james brown as far as getting it done. just get out and do it. elbow grease, you've got to get it done. so once i made my mind up, it would get done. >> and what did you give the people that made donations? didn't they get something for making a donation? >> no, here's the thing. it's not a donation, it's a pledge. >> a pledge. >> well, 31 people bought the $10,000 pledge where i take them to dinner and they sit courtside. my wife's seat, thank you, tonya. 31 people for $10,000 to sit courtside for me at the world's most famous arena. not the barclay center, buddy. madison square garden. >> all these people that pledge this money, they get nothing out of it. >> what do you mean? >> let me finish. >> they get to sit courtside with me at a game. are you crazy? you guys, talk to him, please. tell him. >> you didn't hear the rest of the question. finish, charlie? >> is that all they get out of it, the possibility of sitting with you at a game? >> it's not a possibility. >> where is the art of cinema here? >> people are paying for me to make my next film. >> in other words, the joy they get out of it is the possibility of watching a new film by spike -- >> it's not a possibility. we're going for it. are they going to cancel the season? >> no, he's the commissioner of the nba. >> i'm interested in people who participate in funding your film. they get out of it simply the joy of watching your film when it's released? >> can i just tell you a story real quick. i know we're on the clock. >> yes, we are under time. >> i got a tweet that said, spike, tonight i had to make a decision whether to send you $5 or eating and i'm going to go hungry tonight and you can take this $5. i don't ask anybody to do that, but that's the type of -- >> because they say they want to support you for a movie they don't even know what it is yet. >> but they have seen 30 years of films. that's what matters. >> okay. >> go make your movie. >> take your money. >> charlie rose is contributing $20. >> make your movie. >> $20 can't get you courtside, baby. $20 can't get you courtside next to me. >> i don't need spike lee to go courtside. i don't need courtside to be court side. >> it's a bromance, i love it. greg norman is here. they call him the shark. how did he get tha,, ask me what it's like to get your best night's sleep every night. 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[announcer] tempur-pedic owners are more satisfied than owners of any traditional mattress brand. tempur-pedic. the most highly recommended bed in america. buy a tempur-pedic mattress set and get a free twin tempur-simplicity mattress. find a store near you at tempurpedic.com. there's a certain group of writers and a certain group of fans, i think you'd think he's not really lived up to his potential. >> right. absolutely. i know i haven't lived up to my potential. i know i haven't achieved what i know i can achieve. but, you know, there's more time for that too. i'm not like i'm washed out and over the hill. >> you still like playing golf? >> i love it with a passion because i love to play. every day is a different day. every shot is a different shot. >> and it's just you? >> and it's just me. >> steve crop also a very good golfer. the two-time british open champion has been elected to the world golf hall of fame. he's also been very successful as an entrepreneur. his businesses range from clothing lines to golf course design to wine making. we're pleased to have greg norman here. welcome. >> good morning. >> you have lived up beyond your potential in business. >> way beyond what i ever thought i'd be at this stage of my career. it's just been a fantastic journey, charlie, quite honestly. identified very early on there was a space, there was a position about understanding what the brand does for you and how to market that brand. through that whole process i've learned with some great people around and here we are today, a global company. >> i want to talk about the business but first golf for a moment. why didn't you live up to your potential when you look back? >> quite honestly i was probably a little stubborn. >> in what way? >> i wanted to do things my way. i had a great people around from a physiotherapist and stuff like that, but i was so set in my ways. if i had to change things and do things again, i'd probably bring in an inner core of people like maybe a sports psychologist to help me understand. i played fairly aggressive golf. i believed in my ability. you heard me with steve there. there wasn't a shot that i didn't love. there wasn't a shot that wasn't going to challenge me so i went for it most of the time instead of maybe scaling back a little bit. >> and do you now look back and say i'd give up less money to have more trophies, more championships, more big wins? >> not at all, because there is a fine line you walk. people lived and died by the things that happened to me and what i did to myself on the golf course. sport is an interesting way of understanding a person's psyche, that individual. people who watch you, they want to reach through that tv screen and touch you and feel you. so the outcrying of support that i've had over the years, 35 years of playing the game of golf has allowed me to evolve to being the person i am today. be natural, be who you are. if you play the game of golf that way, be that way. never put the game above yourself. always put the game ahead of everything you do in your life because the game is the most important thing. so i was able to capture all of that because of the fan supportive had today. and now in the business world, it's amazing being the living icon. when you are the living brand, it's a very interesting path you have to walk down now compared to just walking to the first tee, staying inside the ropes and playing golf. >> did a bad mattress ever affect your golf swing? >> it did, actually. >> charlie said he didn't doubt what tiger said. listen, i don't play golf. no disrespect, greg. but when he said that, i said really? could it? >> most of the time it's a bad pillow. >> you're right. >> you get your head caught in the wrong position. we are very aware of our golf swing and tiger is a very finely tuned athlete like all the guys out there who play. >> i'm fascinated, greg, by your business choices from the wine making, the golf design where you say you feel very passionate about how you design a golf course. what makes a good golf course in the greg norman style? >> when you finish the golf course, make it look like it's been there for 20 years. blend it in with mother nature. begin with the end in mind. make sure you're conforming and understanding what the stwoir environmental issues are and build it around that. the easiest thing in the world is to build the hardest golf course in the world. the hardest golf course to build is where everybody has a right to finish a prouround of golf, whether it's not too tough and you can't play a certain shot. >> him not doing it, the harder it's going to be for him to do it. the reason why, he's losing his intimidation factor. one of the great assets you can have as a great player is intimidation. whether it's golf, on the tennis court, in basketball. right now he's losing that enl a little bit because the younger players are beating him. the older he gets, the better the younger players get. tomorrow we'll meet three members of the pga tour wives association. they raise millions for children's charities. the women will tell us what it's like traveling the world with their touring husbands. that's tomorrow on "cbs this morning." and country star trisha yearwood can sing and she can cook too. mrs. garth brooks tells us about her favorite foods and what it means to be a gegan. what's that? that's coming up next on "cbs this morning." we'll explain. ,,,,,,,,,,,,,,,, ♪ >> it seems it's a good time to be trisha yearwood. for one thing the country star has changed her attitude toward food and it's paying off big time. jeff glor went to her home in nashville to talk about that and other things country. jeff, good morning to you. >> reporter: good morning to you. we covered quite a bit of ground from yearwood from her latest cookbook to her cooking show to her upcoming music plans. as usual, she was engaging and, right now, very busy. ♪ before she became a country star, trisha yearwood grew up on country cooking. >> my mom always said you just salt each piece. >> reporter: so when she launched a few phase of her career, it was really just an old part of her life. this is the place that made you miss mom's cooking? as a college student, yearwood realized how much she missed simple homemade meals. she called her mother often for recipes. >> we are the family like most families who have those recipes written down on a scrap of napkin and it's in a shoe box. you look in the shoe box for ten minutes before you find what you're looking for. i thought we'll have them all in one place. and it turned out to be one cookbook and then two book cooks and now a show and so it's been a happy accident. >> reporter: most of the recipes were hearty but not exactly healthy. that has changed recently. now eight years into her marriage with garth brooks, both have improved their eating. yearwood has lost 35 pounds. >> was there a moment when you said i need to get healthier? >> yeah. i mean my mom passed away from breast cancer in october of 2011. i lived with her for a couple of months during that time and i ate. that was my coping mechanism. i just ate. and for that whole year, i just -- i just didn't care. it was really just -- i'm tired of feel tired. i'm tired of the way i feel. and something clicked in me. >> reporter: she says that click was the realization that not every meal had to be the big meal. >> this is not how you eat every day. when you want to indulge, if you're going to have macaroni and cheese, don't have it every day. have it for a special occasion and then eat better most of the time. i think sort of the new south lives that way. >> how would you describe the cuisine of the new south? >> it's a balance. for me it's like if i'm going to have something like homemade cake, like my mother made german chocolate cake, i make it for garth every year on his birthday, but i don't make it the rest of the year. i'm going to have a piece on your birthday and enjoy every bite and then i'm not going to have it. >> what does he eat, by the way? he's changed how he eats. >> garth says he's gegan which means he eats what garth eats. he'll say i don't really do meat and i don't do much dairy anymore of the a anymore. and then he's eating m & ms. i'm sure he's watching, i love you, honey, but you really don't get it. but i think for him it's been an education. i think he's learning. >> i like this gegan diet. it seems very flexible. >> it is flexible. >> reporter: flexible is also a good way to describe yearwood's singing. she hasn't released a new album in six years. that also is about to change. she's planning a solo album, and eventually a tour, she told us, along with brooks. >> this will be our third go-round. but it will be a whole different ball game as man and wife to do this together. >> reporter: she also revealed a little information about an upcoming collaboration. >> kelly clarkson tweets a photo showing your name and reba's name in the studio. >> yes. >> what's happening? >> i don't know. we've become friends, and i love both of them. and we have been toig with the thought of working together. kelly is working on a little something. >> so this is one song. >> one song at this point right now. >> do you want people to think of you right now as a singer or a cook? >> yes. i mean if you said, trisha, you have to pick one thing that you can do every day for the rest of your life, i would pick music, absolutely. that is what feeds my soul. ♪ the georgia rain >> really good conversation. >> you could tell. >> with trisha yearwood. >> she looks great, she sounds great. her tv show just won an emmy. the way you started, it's really good to be trisha yearwood. it reminds me again how great country music people are. >> and it's so nice to see her back at belmont where this all came together for her, she went to school. you can see the energy in her when she's walking around her. now we can have some energy at breakfast. we have the granola, fruit and m & ms. >> i'm thinking i'm a gegan. >> it works, totally. >> thank you, jeff. >> that does it for us.,,,,,, female announcer:or us.,,,,,, female announcer:or us.,,,,,, when you see this truck, it means another neighbor is going to sleep better tonight because they went to sleep train's ticket to tempur-pedic event. choose from a huge selection of tempur-pedic models, including the new tempur-choice with head-to-toe customization. plus, get 36 months interest-free financing, two free pillows, and free same-day delivery. are you next? announcer: make sleep train your ticket to tempur-pedic. ♪ your ticket to a better night's sleep ♪ >> >> your realtime captioner: linda marie macdonald good morning. it's 8:55. i'm michelle griego with your kpix 5 headlines. one person was shot this morning in the tenderloin. it happened near the intersection of turk and taylor just after 6 a.m. we have no information about the suspect or condition of the victim. the rim fire continues to burn out of control near yosemite. hundreds of firefighters are working around the clock to keep it from spreading. the rim fire has expanded across 16,000 acres and right now, it's 5% contained. the city of san diego has reached a tentative deal with mayor filner involving a sexual harassment suit filed against him and the city. it's unclear if a resignation might be part of a deal. details are being kept private until tomorrow. and now here's lawrence with the forecast. >> all right. we have low clouds and fog around parts of the bay area. a little sunshine showing up elsewhere inland. we are going to see more sun across the bay area today. our mount vaca cam looking good. and the threat of thunderstorms now headed into far northern california meaning we are clearing out things here. so that low finally moving out of the way. so as it scoots on by, looks like our skies are going to clear out and return to normal weather outside, 80s this afternoon sunny inland. 60s and 70s around the bay and 60s at the coastline with patchy fog. out over the next couple of days, a little bit warmer tomorrow and then the clouds begin to roll back in. our temperatures cooling down saturday and sunday. and probably starting out next week slightly below the average. we are going to check out your "timesaver traffic" coming up next. good morning. traffic is still a mess up and down the nimitz freeway in oakland. it's all because of a stalled out gravel truck. this is the commute near the oakland coliseum. let me show you where the problem is. it's in the southbound direction. obviously slowing traffic in both directions. but the traffic alert is southbound 880 by oak street. they are now saying closer to 9:30. that's when they hope to reopen lanes. in the meantime, expect delays from the 980 interchange. bay bridge, things improving. backups to the end of the parking lot. jonathan: a diamond ring! wayne: go big or go home. you won a car! this is a very happy man. - i got the big deal! jonathan: it's time for "let's make a deal." now here's tv's big dealer, wayne brady. wayne: welcome to "let's make a deal." let's make a deal. i'm wayne brady, and we do it like this. who wants to make a deal? let's see, let's see. let's go over here. you, dean, come here, dean. come on, dean. don't... don't fall, dean. don't fall. how are you? - i'm awesome. wayne: and what do you do, dean? - i work in marketing. wayne: work in marketing. okay, so working in marketing...