good morning. stocks continue on a winning streak. the markets still call fear gauge now falling to its lowest level in more than three years. asian equities coming off the highs on property stocks. meanwhile, a slow start in europe this morning. in washington, paul ryan will be unveiling his party s budget proposal today. it s tuesday, march 12th been 2013. squawk box starts right now. good morning, everybody. i m becky quick along with andrew ross sorkin and scott wapner in for joe today. the dow and the s&p closing higher yesterday, up for the seventh session in a row. this is the blue chip index s first winning streak like this in a year. it s worth noting the index is not into the first quarter with a double digit percentage gains since 1998. u.s. equity futures at this hour, at this point you re looking at a very slight decline, down by about 8 points yesterday although it s worth noting we saw everything in the red in this hour and all those indexes turned around and did close the day higher. major asian markets, you could see slate gains in japan with the nikkei. kind of waiting for something to happen this morning. paul ryan s budget cuts the deficit by nearly $5 trillion through changes of entitlements and repeal of obama care. it balances the budget in tense years without raises taxes. it was says under that proposal, they ll spend $41 billion. under our proposal, it will increase by 3.4% because the u.s. economy will grow faster than spending, the budget will balance by 2023. and debt held by the public will drop to over half the size of the economy. it does that by repealing obama care and that is going to have a very difficult time, especially with the administration and also in the senate. we re going to talk more about budget debate in a few minutes. then at 8:00 eastern time, we ll be joined by tom price. he is one of a handful of republicans who prose part of the van pollen. and then 8:120 eastern time. first, snow, scott wapner is here with some of the morning s other headlines. nice to say you. at&t is going to begin consumer and corporate presales of the blackberry s e-10 today. meantime, samsung is set to release its latest smartphone. yum brands reporting an unexpected 2% rise in profits. take a look at shares of yum. there you see the spike about 5.3% there in after hours trade postponing. meantime, costco is reporting better shan expected earnings on sales and membership fees and shares are down slyly 0.%. and we ve got a story about another judge, i want to hear what this judge thinks about this. if you live in new york city this morning, you can still buy a large soda. a judge struck down michael bloomberg s than. as for the impact on business, here is the mayor s response to a reporter s question. i don t think it will hurt your bottom line, but even if it did, we re talking about lives versus profit. and a dominimus change in profit. nobody can make the case that serving 16 ounce cups versus 32 ounce cups wouldn t have to problem you that. wee we do what e to. cnbc s jackie deangelis is spending the morning in reactions, businesses, to promise what he ll designed now. mern americans now drink an average of 77 billion sodas per year. the average amount of water people drink to about 58 gallons a year now. bottled water is leading that growth with consumption rooizing to 121 gallons a year. and remember we had the guy on yesterday who talked about the mechanics cab battler. 43 gallons? 43 gallons a year on average. which means somebody is drinking about 80 2k3w58ones. that tells you something that we drink that much water. okay. drinking right anyhow. water, by the way. what do we think about the overturn of the soda drink? i think it makes sense. i think the judge was right that it s overreaching and it s difficult to try and enforce the idea that you re going to go out the judge was saying it would be difficult to forgs on a niert dive offer. maybe you did discuss that. how else are you going to tackle an enormous problem without taking some bold and overreaching steps? i think it s fine to do that in a school system where you re dealing with children. i think it s fine to ban the sales of soda in school altogether. will how do you feel about subsidy sizing corn, for example? i d be fine with not subsidizing corn. i thought high fructose corn syrup wasn t bad for you. the high fructose corn organization came after me the last time i raised the question. but, you see, rather than ban it, takes away 2 there s many larger you can do to make them popular. the other thing you can do is make people weigh in on their own health care more, so they re saying more control of that. everyone will have a hire deductible sooner or later. even if it does hurt the bottom line, so what, right? at some point, you have to take some kind of measure, in his opinion. and he really, i thought, took it and people are dying. he s calling this an epidemic. but is it soda or other things? that s the problem. i think it s the amount you work out, too. joe s point through this, if you want to lose weig kids aren t actively involved outside because parents are afraid to let their kids play outside as much. i think that s part of the problem. i m surprised that he suggested this isn t causing the businesses. did you thinkin doughnut had made dimes for customers to help them know was going on. there s have been lots of thing going into this and may be back into effect lairlt. in problposition that says under blah, blah, blah, when i went in for that, there was a sign that s random watching. there was a sign that said, under prop blah, blah, blah, coffee would be one of the things that we need to tell you is bad for the you and that can cause all kinds of birth defects and everything else that goes along with it. you can see this happening on both the coasts. we ll see writ all plays out. by the way, the soda has has everywhere. so this is going to buy this done. futures have been indicated slightly lower. wapner is having a hard time adjusting to these early hours. didn t they have a soda called jolt? they did. but you have to be careful. you would run around the desk and then crawl under it and fall asleep. we talked about caffeinated gum last week. my children and i played super mario brothers a little later than i wanted to. my children just say, daddy, it s still light outside. and taunt you as you head to bed. futures are lower this morning. the dow hasn t ended the first this is a dow transport, the russell 2,000. they all closed at historic highs once again. the s&p 500 is at a five-year high and the nasdaq closed at another 12-year high. and you ll see right now, at least, that oil is down by about 26 cents to 91.80. the ten-year note this morning is looking like it s yielding just above 2% at 2708%. the dollar thrng po, and, again, all of the stock has been talking about what s happening with the yen. there have been some stories out there suggesting is that the new bank of japan governor, when he comes in, would actually do things to try and really ease the currency before he waits for the april meeting. we ll see what happens. the yen is up against the dollar. gold prices up about 3.60, $1,581.60 an ounce. time for the global markets report. kelly evans is standing by in london with that. kelly, good afternoon to you. hi, scott. it s not quite the afternoon here, especially with the time change. because of that, you only get one hour for worldwide exchange in the next three weeks. we have to sort this out. here is what s happening across europe. a broadly weaker session in asia. the ftse is trying to stay in the green. there was weak industrial data that has hit the market and hit the pound. the ftse mib is pretty much worrying about new government being formed and rush, as well. i want to show you the reaction of bank shares, and tessa is expected to show a fourth quarter loss. bankosanpalo, lasted night came out and report seven times bigger loss than 2012 was expected. shares initially down 5% on that news. then people started to go well, maybe they re throwing all the bad stuff in here and maybe it will get better from there. the euro/dollar is weaker down about 0.3% there. trading volume has been heavier in the australian dollar and the euro. finally, sterling. i mentioned this, now down 0.5%. ike industrial figures for january were down. you can see the reaction, the 1.4841. i don t know about you guys, i was here in britain, what was it, seven or eight years ago when it was $2 to the pound. so it s extraordinary to see uk to some degree on sale. we ll see if it means any interest for american visitors or american companies the. that was such a deal. it s only 1.50. play the trip now. believe me, it still hurts, believe me. she paid in dollars. she has to were about these issues. if you want to take a summer break, much better deal. let s talk about a number of different stories in washington today. the budgets worth watching this morning. the senate banking hearing will be holding a nomination on richard cord ray. and marriage jo whit will he will be joining us. this is effectively a synopsis of the proposal. when becky keyed it up earlier in the broadcast, she said it is dead on arrival. do you agree? yes. in terms of the literal elements of the plan. when you talk about assuming the repeal of obama care, no, that s not going to happen. when you talk about premium support, a proposal that would affect people under 55 going forward for medicare, that s the voucher plan obama ran against in 2012. not going to happen. but he work r i think the process has vowel because paul ryan considered a contill history he can do of the weengend. there are things we can do that don t offend the principals or democrats or republicans. so the process is what i m looking for, not the details of this budget. what are you let s talk about some of these hearings today. mary jo has a storied legacy in terms of what she s done as a prosecutor, but has spent the past decade if not longer representing the big banks. what do you expect to see? oh, i expect her to get hazed a little bit by senators, maybe of both parties. but oath of these nominees will be ultimately confirmed. mary jo white, there are surface conflict issues related by her legal work, but i think she has a strong reputation for integri integrity, for having been an effective prosecutor, and she is in my view likely to clear the banking committee. one of the things i think about, for the next two years, she s going to have to effectively recuse herself from anything rmted to name your bank, credit suisse, ubs, the list goes on. how do you separate if you re the head of the s.e.c. and yet you can t touch on some of the biggest institution that s you re supposed to regulate? well, that s a challenge and they ll have to figure out what ethics officers in the government and working with her colleagues. she s not going to be the only one at the agency. i think she can be on the job and provide direction and leadership without, you know, violating conflict laws. john, whether you hear about all the hoopla over the sugar ban in new york city, how does washington view this? you know, i think that s the kind of thing that nobody wants to get to close to at this moment. i mean, you do have a push by the administration through michelle obama to try to work on issues related to health and the consumption pattern that s people have and the exercise patterns that people have. but i think this there s such a visceral reaction to a specific prescription like this that bloomberg has pursued that we now see the court reacting against that. i don t think you re going to see democrats venturing into that territory and certainly you won t see republicans. so even liberal democrats in washington look at this and say, oh, my gosh, we re not going to venture towards this because they view it as a potential overreach? yeah. i think they re sympathetic to it. i think they re kind of happy that bloomberg did it, but i would not expect them to try to minute im that of nanny stayed, trps to use government government to pin their shift to other people s. it will be in state and local governments if it does if it makes headway at all. john, thank you. you bet. all right. andrew, thank you. coming up, a live report from the big apple where consumers are still able to order that large coffee with extra sugar and milk this morning. but first, check out these live pictures from the vatican. a special mass is being hell at st. peter s basilica. they will then head to the vatican to elect a new pope. people will be watching for a while smoke to signal a new pontiff has been chosen. welcome back to squawk box this morning. s&p off about 1.5, nasdaq off by 6 points and the dow jones off about 16 points right now. the u.s. government has sold another chunk of its take in general motors. it sold $490 million of gm common stock last month. the price per share will be revealed later. the government has recovered about $29.8 billion of its $49.5 billion bailout of the automaker. now, a judge striking down new york mayor michael bloomberg s ban on large sugary drinks. jackiedeanglis joins us with more on this. what is the reaction this morning sfp. commuters are really happy that they are going to be able to get their large sugary drinks this morning, to put sugar in their coffee, as well, as you head out to work. the judge striking down the city s proposed ban of these things drink calling it arbitrary and ka prieshus. you would have had two stores affected differently. one is a store that wouldn t have been able to and the other is a 7-eleven that is able to. there s two aspects to this. you have the large national chains that might have been able to absorb the costs. but you have a lot of mom and pop stores saying not only the procedure costs of buying new glassware and cups to serve the drinks would be difficult, but they are concerned because they would lose business right next door to the 7-eleven. the national restaurant association came out and said this is a victory for restaurant operators and industry suppliers serving new york city who would have experienced financial hardships had been ban been enacted. he also began a media blitz speaking on letterman last night. turns out the mayor has his own guilty pleasure. as long as you don t ban cheez-its. cheez-its are okay. that is my addiction. so sugary drinks cause obesity, but cheez-its you don t have to worry. you were talking a couple weeks ago about how you couldn t get the soda.. there was a pizza play on the upper eastside, i won t name them, but they decided they wouldn t they had gotten on board with the pan. we had about i think eight children in our house. and so there was a pizza party going on and so we needed soda. i went down to the bodega two blocks away and got the soda myself. coming up, why the uk is probing hp s acquisition of autonomy, plus details on celebrity financials week in l.a. details of this stories coming up next. fist as we head to a break, take a look at yesterday s winners and losers. revolutionizing an industry can be a tough act to follow, but at xerox we ve embraced a new role. working behind the scenes to provide companies with services. like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%. and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how s that for an encore? 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[ laughter ] [ female announcer ] each one of us is our own boss. and no matter where you are in life, ask your financial professional how lincoln financial can help you take charge of your future. no they don t. hey son. have fun tonight. back against the wall ain t nothin to me ain t nothin to me [ crowd murmurs ] hey! [ howls ] morning. welcome back to squawk box here on cnbc. i m andrew ross sorkin along with becky quick and scott wapner, sitting in for the vacationing joe kernen this morning. scott. where is he by the way, do you know? he s skiing in an undisclosed location in the great state of colorado. i think that s as far as we can take it. he sent some pictures yesterday. did he? i haven t seen them. they re out there, the whole family is out there on their snowmobiles. let s check on the market this morning. we ve been on this run, as you know, the dow has been up for seven straight days. if we were to open right now, it looks like it s going to away negative open. the s&p, dow and nasdaq all with a negative implied open or at least a lower implied open. there is a look at the european markets. they re mixed. mostly muted action there. the ftse over in london is getting a slight gain. take a look at asia, as well. see how the asian markets did. they were down across the board. the shanghai was down 1%, hang seng and over in japan, not quite down as much. look at the commodity index right now or the read there. crude oil is lower today. both wti and brent or bob gasoline we ve seen a bit of a break on gas prices. there s the ten-year yield right now, still over 2%. 2.05% is where that stands. take a look at the dollar also this morning. dollar/yen remains a considerable story this morning. yen at a the 3 1/2 low versus the dollar. look at gold get ago slight gain this morning, 1581. joining us right now is kent croft, chief investment officer at croft funds, also barbara funds. i want to get your brought thoughts on the market. kent, i know you re looking at this and you think there s up side based on what you see just in the fundamentals? sure. we think even though we ve hit new highs, since we are very much long-term holders, we expect new highs over time. this is nothing new. we tend to hold through. the fundamentals of the market, the valuation, the pe is less than historically and certainly less than, you know, other recent peaks in the market. at the same time, you have companies with the best balance sheets, really, i can remember that give these the ability to credit buybacks. the underpinnings are good for the market and there s not a lot of optimistic expectations that we might have in the market. so i think if things break good, they can break nicely. barbara, you look at it and you say rite now we re setting ourselves up for peak earnings. what does that mean? i don t think there is a tremendous value in the market right now. you look at a market multiple of maybe 14, 14.5 on what i think are peak earnings. we ve achieved record profits over the last few years. look at this two ways. either you can take a look at that 14, 14 1/2 year multiple. part of that multiple is a result of having low bond yields. companies have refinanced maybe 25%, 30% of earnings growth, plus companies have had so much catch they ve had tremendous buybacks and that has fueled earnings growth. look at it that way and say with expected earnings growth of a few perts over the next one or two years, we re at peak earnings and a 1% or 15% multiple is not a cheap multiple. the other way you can look at it is say let s look at the average cyclical market. that s about 23. you have i think mediocre valuation in the market. i agree for the long-term we can t time it. there was an article in the wall street journal last week on stocks through thick and thin. the first thing it said is think big and cheap. i think there is good value in the number of those holdings. even though you re concerned about where things are headed, you have some specific areas that you really do like and you see some opportunities. i know the opportunities you re looking at tt opportunities in the growth sector. the shale gas that we found in this country has given us an enormous competitive advantage that will last for a number of years. and i think there s some companies there that you can get into it a buy into it at regional valuatiovaluations. what are some of those companies? certainly the biggest bang for your buck might be southwest energy, ultra petroleum. there are other companies like williams is a pipeline company that will generally benefit from gas being used more often. the company like quanta services that builds out transmission but builds out pipelines as we use more of it. so we think there are ample opportunities there. and i know when you look through things, barbara, you have a very specific set of guidelines for stocks. part of them is still dividend. but talk through some of the others. sure. you know, if i could get three or four or five cycles, companies that are strong cash generators and then companies that pay a dividend because i think that s management s way of saying we have tremendous consideration into this going forward. companies that can grow their cash and earnings over time. companies are managing their shareholder. either buybacks or dividends and finally companies trading at a good valuation. then i think you have a good buy and you can make money longer term. what do you think of the fact that we ve seen this big pick up into flows into equity funds? do you worry it s late money at this point? the stock market is such an interesting combination of value. now that it s risen back to peaks, it catches attention. lts a contactic of the market. you probably could speak to this, too. do you think there s a lot of people trying to take the money off the table or they think there s so much money coming in, they have to rise away? right. it never happens? sure. and i think that tends to pull money in. kent, do you have a theory on this? yeah. i agree. it s human nature. you have to feel more comfortable to be in the market when, really, investing in the market, you should be investing when things look the worst. you saw outflows, tremendous outflows in the market while the market went up. so the opportunity calls have been im members. immense. so now you re starting to see some newer flows as we re back to the highs. it seems to happen every time. barbara, what are some of the names that you fit into that, companies like a pfizer? yes. pfizer has done a tremendous job. it rently went off its annual business. so pfizer has done a tremendous job. e&p companies, a couple of goose companies and i would add conco philips to ta at a 4 had.5% yield as we wait for higher gas prices, it will increase production. international paper has done a tremendous job of feeding growth by making acquisition from investing in paper mills in bra zell, in china, in india. at the same time, it was bought a year and a half ago and it s integrated that and is growing earnings and increasing its dividend with its cash. blackrock i think is a good buy. all of these companies are selling inexpensively and with chances to grow their dividend earnings over time, not just yield plays. barbara, thank you very much for coming in. kep, it s good to talk to you, too. thank you. the u.s. off was investigating hp s claim that it was duped. the advisory firms have been critical of the board citing oversight problems and leadership differences and deficiencies there, as well. in a letter to shareholders ahead of the companies march 20th meeting, hp toutd improvements in its financial results and says it has laid the foundation for a turn around. here is the background of the story glass lewis supports lane s re-election, but it agrees shareholders should vote against thompson. it argues that oergs should lose their seats and this is all coming to a head as we hear more about what s happening in the uk. we did get a statement from hp last night that looked at a different issue that was brought up on this. basically, they also talked about the say on pay, hp. hp says it s pleased that isf has changed its recommendation to investors and is now supporting the say on pay proposal. the conundrum, though, is while this board has been covered its from lori in any y way, if you did remove people now and you broek up the board again, the they can t afford turmoil. it is a conundrum. however, there are still people out there who say that the board is still in need of big change, that they ve had a bit of a shake-up, but you do hear a lot of criticism that it s still a bad board, that the type of people that need to be there are not there at the given time to fully implement the kind of turn around that needs to happen at that company. you ve got meg whitman, a new ceo who is in and part of it is you need to see where things ride out. barbara, do you have any thoughts on hp? the never ending lieu lit of it? i think hewlett packard under invested in the last ten years and has missed changes in the market. so while there are some good, strong areas of that company, in general, it s not competitive and i don t want to invest in it just because it s cheap. especially when apple is expensive. i was going to ask you if that is a dividend growth stock. absolutely. it is tradesing cheaper than telecommunications companies and utilities. are you saying you look at this now because it s coming down frdz 700? well, yes, although $700 was a 12 multiple with a little bit of a yield. now maybe even less than that if you take the cash out. an eight multiple with about a 275% yield in tremendous products. it s actually a a little bit of a mystery. do you own it or are you looking at it? i do. you have some of it and i would buy more here. how different would the hp conversation be related to the board if there is this shareholder thing that comes up. the stock has been a tremendous performer, a rebounder, year-to-date. it s been one of the best stories. the story is different from today versus six months ago. that s a great point. okay. coming up, the early read in the futures pits on the trading day ahead. but first, on this day in history and you don t have to go back too far in 2009, beenny madoff pleaded guilty to 11 criminal charges, including fraud. twith blackberry hub10 and flick typing. built to keep you moving. see it in action at blackberry.com/z10. tdd#: 1-800-345-2550 but there is one source with a wealth of etf knowledge tdd#: 1-800-345-2550 all in one place. tdd#: 1-800-345-2550 introducing schwab etf onesource™. tdd#: 1-800-345-2550 it s one source with the most commission-free etfs. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 one source with etfs from leading providers tdd#: 1-800-345-2550 and extensive coverage of major asset classes. tdd#: 1-800-345-2550 all brought to you by one firm tdd#: 1-800-345-2550 with comprehensive education, tools and personal guidance tdd#: 1-800-345-2550 to help you find etfs that may be right for you. tdd#: 1-800-345-2550 schwab etf onesource tdd#: 1-800-345-2550 for the most tdd#: 1-800-345-2550 commission-free etfs, tdd#: 1-800-345-2550 you only need one source and one place. tdd#: 1-800-345-2550 start trading commission-free with schwab etf onesource. tdd#: 1-800-345-2550 call, click or visit today. tdd#: 1-800-345-2550 investors should carefully consider tdd#: 1-800-345-2550 information contained in the prospectus, tdd#: 1-800-345-2550 including investment objectives, risks, tdd#: 1-800-345-2550 charges, and expenses. tdd#: 1-800-345-2550 you can request a prospectus by calling schwab tdd#: 1-800-345-2550 at 800-435-4000. tdd#: 1-800-345-2550 please read the prospectus carefully before investing. welcome back, everybody. as you can see, there are red arrows when it comes to the futures this morning. these are modest declines, though. right now, dow futures are down by over 8 point. the s&p futures are down by less than a point. in las vegas, police say they are investigating the posting of private online records of several celebrities. a website posted what appeared to be credit reports, social security numbers .other private details on the police chief, fbi director robert muller and stars includes jay-z and mel gibson. the star did not say why those people were targeted. what is so strange about that is a lot of the data is so available, social security numbers, credit reports, all of that stuff. you go to a bank and just about everybody, you can go off and get it. i m sprite you. now to the trading pits in chicago. kevin ferry is standing by. good morning, kevin. good morning, appeared rue. a lot is going on. the train has left the station, is leaving the station. wa do you see that is so big? early in the is session last night, they started to beat up the yen again. that trade started to dissipate. one of the largest trades out there is the short yen trade. focus quickly shifted to the table, which has been getting beat up behind it and continues to this morning. so i think that the big message i would have is that they re starting to see signs as the session wore on last might when people are exiting positions that they ve had. i think that s the real catalyst. when these peoples change, then the market is going to react. kevin, what has been the inflexion point, though? really things that as you stand up in the market it could be juiced down one more time. i think you should be interested to keep an eye on it. the perception in one of the biggest positions is short treasuries right now. yesterday, the ten-year note and can repo was 3.75. that s below the amount that it trades for penalties. so the big perception is there s too much data out there. you can t even borrow illustrate. so you have to watch that. is there appear im my clagsz for secretaries. these are just positions moving around, much most of the macro scene, that s not going to change much. but when price starts to change, people start changing their minds. so i think these are trends that i think as long as the s&p futures are up 1541, then the big story there stays intact. but, you know that s decent because that s a 14-point range that they could drop before you start to worry about things. yeah. i think you have to expand a little bit. we like to say that the monetary regime, right, the relationship between the economy and the s&p is more elastic. and i think people have resisted that few more a long time. weir in a 2% mragz, 2% inflat n inflation, and casey. all i m saying is if you started to see these other trades unwind for a variety of reasons, black smoke over the vatican, who knows, then watch out, that s when things start to move around. kevin ferry at the cme, thank you for your perspective this morning. thank you. we ll see how it all plays out today. still to come on stock, adam parker. the state of small business courtesy of where are fib s bill bunkerberg. but squawk is next. today is gonna be an important day for us. you ready? 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[ male announcer ] one pill each morning. 24 hours. zero heartburn. a talking car. but i ll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it s carrying, while using less fuel. delivering whatever the world needs, when it needs it. after all, what s the point of talking if you don t have something important to say? welcome back, everybody, we re in the chairs this morning talking about things that have caught our attention. while we have been talking for some time about marisa myer, it is the lead store any why usa today. who really makes out when you telecommute. both sides can say that there is a benefit to these things. the commutee says i don t have to spend the time or money, and the boss can say we don t have to pay the overhead to house you. there are massive numbers of people who do it. it s 25% of the people, and in the service industry, it s 16%. and in sales it s 15%, and education, legal, community service, arts and media, it s 13%. now people are worried if they will still have the benefits. i think think who yahoo thing is overdone, it s their mess, their horrible culture, and it makes sense for one company when you see a big company like yahoo doing it, depending on how it works out, there are certain people watching very closely to say you know, i m not sure i m getting the most of my team. one last note, at yahoo, there were literally peel on the payroll who had consulting relationships and were starting companies from their house that had nothing to do with yahoo. they said it may be poorly planned and announced. they re allowing telecommuting for people amazing that it s touched off this national conversation. i surprise todd see it as a lead story in usa today. i still am trying to figure out how to telecommute this job. i was taking notes this morning, zombies are coming back in fashion. the walking dead is huge. people are greating up in parks or whatever, according to this professors research, zombie fads peak when society is not happen. you have to throw on the thriller you ve done when i leave you, you ll be surprised what happens. after halftime is over we pry have to go, read the financial times front page today. john paul thinking about moving to puerto rico to save tax money. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. all on thinkorswim. from td ameritrade. transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you re thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it s no surprise to you that companies depend on today s xerox for services that simplify how work gets done. which is.pretty much what we ve always stood for. with xerox, you re ready for real business. equity logging their second day of gains, the s&p a handful appoints away from the 2007 high. how high can it climb? an ek pert panel getting ready to tell you how to play it. how they ll feeling about the state of the economy. and the stock getting a seven-handle yesterday, and sitle at all all-time high. what s working for this reit. the 7:00 hour of squawk box begins right now. good morning and welcome to squawk box see how the market is setting etitself up. let s get you through some of the morning headlines. the federal budget battle set to reignite today. the committee chairman paul ryan will be releasing his fiscal blue print. he says he will balance the budget in ten years. he plans to repeal the reform. larry will be visiting with him tonight. and costco s results were helped by higher sales an an increase in revenue from membership fees. italy continuing to see fall out for the rating score. it was the first italian debt sale this morning. will fundamental sport an additional gain here? rich bernstein. gentleman, welcome to all of you, we start to watch what s been happening here, and we have come an awfully long way in an awfully short period of time, and you say relax a little? yeah, people are looking at the last eight or nine weeks, and they re forgetting this started four weeks ago. and i think you look at it in that perspective in four years, and it s not that fast. i think this is reasonably normal. i think it s more normal than most think. there s a lot more normality than i think most people think. but you say when you look around, you start to sense some nervousness from retail investor that s are in this for awhile but see what s happening? there s no question if you look at growth or rates, it s not supportive of the market level. i think what s maybe not that level is the unconventional policy. we re creating trillions of dollars on a computer. that par is not normal. on terms on the returns, that probably can fit into any historical context. i think what s more interesting than the market level is the kind of stocks that are working, right? higher quality, larger cap, health care the best performing sector. it s risk on and risk off when you look at the stocks that are working. your thought is the market has been up, and you re pointing to the fed as the reasony, the jobs report was looking better. you know whether that s because we have had reasonable monetary policy, our we re just getting very much farther into that seven lean years, it s all of that kind of stuff. and those things are coming together. i don t think the fed describes everything. the fundamentals are getting better. the economy is recuperating. the economy is getting better, and you know the nice thing is everything it in the stock market. markets move on better or worse not just absolutes of good or bad. people are caught up that the economy is not strong in an absolute basis, but things have improved. adam said that more defensive sectors are outperforming. february was kind of a risk off monk, but even in this month, the last seven trading days or whatever, we re back to those early sector tykeles again and i think that s very healthy. i m pretty good at explaining what s going to happen, we have models that look at high cap, break down the market in different buckets. consumers have done well, health care and staps have been two of the best sectors. even with the biggest stocks decline, it has been more of a mixed defensive pickture in my mind. high in dividend, outperforming, so i think it s really hard to argue that what s already happened has been a offensive mic microstructure. and i think i disagree that qe has not driven a lot of it. the changes are very correlated to the market. i don t think the debate is whether or not the companies are in great shape, they are. how do you slow down the qe, and what impact will that have on the markets? adam, is it adam, is it a bigger deliver than the fed would normally have been? if you look at policy, it s clearly going to have a big impact on the stock market, is this bigger than the normal cycle? people are saying the reaction is abnormal? is it really relative to abnormal monetary policy. it s hard to back test, right? i don t think i would be fighting the fed if it was conventional policy, right? you can move up and down i think what s different is the fed balance sheet expansion, the magnitude of it, i think it s different this time but the instruments adam i would say i m with rich on this. i would say the instruments are different, but the thrust of policy in 1993, you had a long way to take interest rates down to get to what we get to in the 3%, or 2001 and 2002 getting them down to what were then record lows. we had that instrument available, but man that was aggressive policy at the time, and it began to work through the economy. i think it s aggressive policy it s these unconventional instruments that makes all a little nervous. the hard part is forecasting the marketing rates. it s hard to forecast the market multiple, right? we all try and we know it s if you have, so if i told you that the real earnings growth would be zero, the ten year would be the lowest. we ll have essentially zero gdp, and obama would be the president of the united states. i don t think you could have given me a logical reason that they would expand 20%. forget logic for a second. let s talk about the market multiple. how high can did. terry: go in this environment i m not telling investors to short the market. what i m basically saying is we have portfolio data of one, and the themes that look to me in place are high enstable, higher end quality equities. if i had to guess, the market multiple will continue tom, because what makes it contract is fear of an earnings drop off. i don t see how that will happen when they re not hiring a lot. so, my guess is, but i can t prove it with logic, is it will go up, they will do less qe, that s a different signal to the market. isn t that true, rich? when they give the signal they re going to start to unwind, the market will show upset, which will prove that it s undeniable, right? i m not sure people you have to remember the tenure already backed up about 70 basis points and the economy is still existing. why is it going up? because the economy is getting stronger. in every ikele there s a point where they reverse monetary policy. it s not when the fed starts to fighten, it s when they tighten too much. you really think the market is not going to react negatively that first time there s a comment? of course. i m not talking a day or two. a month ago there is every time. but it rebounded immediately. look what happened. the fed minutes came out and said guess what, we re talking about how to get out of this thing sometime in the future. what would we want them to talk about? but interestingly enough, the rally, with the ten year note rally says there s not enough strength there, and rates don t rally, that s a sense that the economy has traction. the market will not like it, it s trying to figure out how disruptive it will be, but it s a positive thing. what we re all watching for in equities and in the credit markets. i think the tough part is how much confidence do you have in a real environment people believe the policy will help make the economy better. there is some point where the level gets so extreme it s symbolic that the world is a risky place. amend, thank you for joins us, we ll have more from jerry and richard throughout the show. big changes coming to frequent flier programs and we ll have the details next. and the state of small business. the latest nfib report how business owners are planning for their future. comments, questions? sent them to us on twitter, follow the show and look for updates from andrew, becky, joe, and the squawk staff. everyone s retirement dream is different; how we get there is not. we re americans. we work. we plan. ameriprise advisors can help you like they ve helped millions of others. to help you retire your way, with confidence. that s what ameriprise financial does. that s what they can do with you. let s get to work. ameriprise financial. more within reach. good morning, let s look at the futures right now and see how we re shaping up on wall street. the dow has been up for seven days in a row. it would be down off the open this morning, not by all that much, but the implied open is negative across the board. also, if you live in new york city, you can still buy that large soda today. that ban on large surgery drinks has been shot down. the ruling was called totally in error. here is the mayor s response to a reporter s question. i don t think it will hurt your bottom line, but even if it did, we re talking lives instead of profits. no one can make the case that 16 ounce verse 32 ounce cups would cost any amount of money. we all have an obligation to try to do what we can do try to help each other. jackie is spending the morning in new york city in coffee shops and other dining places getting reactions from consumers and businesses and will join us in the next hour. beverage digest says that soda is no longer the nation s choice. americans now drink 44 million gallons of soda a year. the amount of water people drink increated to about 58 gallons a year. bottled water leading that growth. now we re going to talk about what happens to be one of my favorite topics. frequent flier miles. they may be the next frontier for airlines looking to bring more money out of fewer seats in the sky. fill joins us with the story. andrew, you may not be happy, but the airlines are happy with the change in the industry. i was just looking at my frequent flier cards, and realized it s going to be tougher for me and you and everybody to book a seat in the future. this all comes down to supply and demand, and the supply of seats able is more restrictive. it s tougher to get a upgrade. it s going to cost you more miles in the future if you want to get a frequent flier seat. it s tighter capacity. small ore planes. a lot have been stripped down, more regional jets. no first class, so the merger partnerships is also increasing the number of frequent fliers. you have programs like u.s. air and america, and they ll have nearly 100 frequent fliers in their program. this is why it will be tougher for you to redeem miles in the future. there s a lot more competition because frankly there s more members of the program. 31 years later and they re growing that 10-11% a year. today you re competing for benefits with frequent buyers, and that makes it really, really difficult for anyone to be called an airlines best customer. if you want to be the best customer, get ready to see some changes. here is the current program. it s based on how many miles you fly. 25,000 you get the first level, silver, you see the levels of status here there. come 2014, it s not how many miles you fly, but also how much one you spend. this is the net ticket price. it s the net ticket price. so you have to spend, not only 25,000, but you also have to spend another $2500 in that year just to get to the base silver status. so they re transitioning to the new world of how far you fly plus how much money you spend. southwest does it, and look at the move by delta over the last sixth mon six months. delta up 76%. they turned off or microphones because we were booing. this is bad news for the consume rs consumers, bill? do you remember when they were losing billions of dollars? why would you give away seats if you could sell them? now they have the opportunity to sell them. so, phil, there is an article in today s new york times talking about how one of the other issues is people go to the lounges, right? and now that everybody is a member, everybody is a member and it s overcrowded. so now american express and others are ceir own lounges? yeah, you re going to see the price of admission to these lounges will go up. andrew, i know you travel as much as i do, you go to certain airports, even you re like there s nothing i want to sdo t be stuck in that terminal, you inspect that lounge, so now american express and others will say we ll have a more exclusive card. you have to have the black card to get? yeah, i don t have the black card either, but if you re traveling a lot, you want that. another bad day for road warriors everywhere, phil labeau, thank you, sort of. this is what you get when you get a healthier airline. the stocks have been amazing, right? enough that i think for the first time in the history of the show, jim cramer recommended airline stocks for the first time ever. that s just a perfect hedge, it s not a great investment, but if it s turning around db or we ll figure out how to do things with virtual reality and we ll travel less. phil, thank you again. when we come back, our healthy returns head for the ventas. they specialize in private housing for seniors, it s stock is close to an all-time high. if you look at the futures today after seven days of gains in a row, these are modest declines. they turned around deficits larger than this yesterday. [ man ] i ve been out there most of my life. you name it.i ve hooked it. but there s one. one that s always eluded me. thought i had it in the blizzard of 93. ha! never even came close. sometimes, i actually think it s mocking me. [ engine revs ] what?! quattro!!!!! a talking car. but i ll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it s carrying, while using less fuel. delivering whatever the world needs, when it needs it. after all, what s the point of talking if you don t have something important to say? welcome back, it has been than five months since super storm sandy sit, and today, crews cleaning the bay came across this, a mercedes benz. looking at the company responsible for much of the bp clean up won a contract last month to remove debris from the pay. there s no official estimates how many cars remain down there. five months later and they re still pulling up things like this if you have comments or questions about anything that you have seen here on squawk, send us a tweet, or send us a message on facebook. how the economy is doing through the eyes of business owners. the latest survey is out and we have the details. check out shares of ventas, sitting near an all time high. the company ceo will be joins us to talk success and the future of health care. it is that time again, the judge is in the house, welcome back to squawk box the treasury says is sold nearly $490 million in gm shares. the transaction means the treasury has received a large part of the money. hp took an $8.8 charge last year after saying it was duped. and the cruise industry begins a three-day annual conference in florida today, and it may get more than the usual amount of attention. industry executives spending a great deal of time addressing the costa concordia incident, and also the more recent accident that left passengers without electricity for many days. it hasn s the business optim. it s the third monthly rise in a row. it only gets back us to september and october. job creation was up, capital spending up, increased inventor up, expectations for higher tales all up. but you see on the left, all of those levels are low. and that s really the story. joining us is bill, a chief economist at the national federation of independent business. he tries to smile and look optimistic, but he isn t. not a month goes by that i don t regret bringing this data on on a monthly basis, bill, give me something hear, you re a smart guy and a great economist. steve, i do my best all the time, but i think we have been doing it a little longer than five years. so you re right, the optimism index went up almost two points, the average index now for the 44 months in the expansion and recovery period is 90.7, and we re at 90.8. we really haven t gone anywhere, we just can t move forward, and it shows up in the gdp numbers, right? half of the economy is small business. and so you average the zero plus the 4%, you get 2% growth, and we re experiencing the economy. we re not going to grow very much. let s look at a couple starting here bill that you gave us, it ticked back up to that dashed line there, what does it representative? i put the dashed line in the charts through the most current reading. you can see that s minus 28. forget it, let s move on from that. bad time to expand due to political climate, that ticked down a little. people think it s a better time to expand relative to the political situation out there. yes, proved a few points but but we re still running at 40 year highs nothing good to say about that, plans capital outlays that one is probably the best of the worst, right? exactly, they re starting to spend more and plan to, that s a good sign. i don t know if they had the the other chart i made this morning, let me know if you have it in the back. i put your employment index, the small businesses that plan to create jobs. you don t have it? okay, that s my fault, against overall job creation, and you see a significant gap. what would job creation be like in this country right now if small business was creating jobs at the clip that it normally would be? you would see 300,000 to 350,000 jobs coming in a month. you would see a lot more jobs and the unemployment rate would be coming down noticeably quarter by quarter. that s what we need to see and haven t been able to get. so it s worth 100,000 to 150,000 jobs a month is what you re saying? yes. why has it lagged so much? the expectations for the economy, as you pointed out, they re not very optimistic about where the economy will be six months out. very few expect their real sales volumes to go up. we still have more firms saying it s headed down than up. so there is no reason to hire. weak sales expectations. this is obviously pretunhapp data and notice he is wearing yellow to try and make is sunny. why do you think smaller and mid-cap stocks have outperformed larger stocks. even if grow down to very small banks and industrial companies performing very well despite this backcrop, do you have a guess why this might be? well,s if it s a publicly traded company, it s not small. the six million firms out there that are publicly traded would look bad because our profit trends are horrible. to the small and mid cap companies are really pretty big, and they re more wired to what s going on with the bigger companies. they re making a lot of money overseas. we re totally locked into the domestic market, and if you look at consumer spending, it s been very, very poor and that s been the key right there. one of the things i always heard about, i don t know if it s factual or not, is that there is a very big i don t know if it s bias or skew among the construction industry, at least up until recently, there s been reason for the firm and your organization to be more pessimistic than maybe other firms. we keep hearing about small industrial firms that are exporting, so is there a overrepresentation of construction, if so, could this be changing in. you re quite right, we have got g gotten that question over the last few years. and of course the story has been that the numbers are the same. so it really hasn t mattered. we got that question again a couple months ago. so they re more optimistic now, construction is coming back, and they all have the same views, we can t find any different for all of them, not just part of them. we hammered him on this. he took the construction off out, and it didn t make any difference. bill, thank you for being such a support on this, and one of these days it has to turn. keep wearing that yellow shirt, bill. thank you, steve. thank you. stocks sitting near an all-time high, what s working for the company and how you can profit from this investment trust. and squawk market master mo had mem el erian. stry can be a tough act to follow, but at xerox we ve embraced a new role. working behind the scenes to provide companies with services. like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%. and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how s that for an encore? 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(announcer) scottrade. ranked highest in customer loyalty for brokerage and investment companies. welcome back, as you see a little rain in times square this morning and rain for the futures as well. the dow down nine points. yesterday we saw red arrows but we saw them turn it around. also, keeping an eye on oil prices this morning, just over $92. the ten year note is just over 10%. the colorful, at this point at least is up against the euro, and gold prices have been moving this morning. you can see at this point, gold prices up by just over $14. $1592.17 is the last tick. joining us now is debra cafaro who is the head of ventas, great to have you here. you re the largest owner of senior living facilities in the united states, and your stock is up like 680% in the the last decade with you the steward, so congratulations on that. thank you. that s a performance that anybody should be proud of. why has this happened? is it a supply and demand issue? we re an anyoning population? well, we built a company that went from $200 million to over $2 billion equity cap. we re one of the most essential characteristics of a successful story. we had constrained supply over the last decade, but the demographic demand is continuing. over 85 is the fastest growing segment of the u.s. population. and it s a need-based business. this is not a discretionary product. this is really for mom and grandma when they can t live alone any more and they need care 24 hours a day. it s a private pay and customer focused model. you re a diversified business as well, which some people maybe overlook. but that s a big part of your story. yes, most of it, happen of it is senior living, 17% is medical office buildings which benefit from their own separate drivers and trends, baby boomer focused, and some skilled nursing assets and hospitals that we do not operate. we re a landlord to those businesses. so the medical office space is capitalizing on the baby boomers, and more so than the senior living facilities now the medical office building is a great business, it has the baby boomers, and when you lock at reform, you see more people coming in in a regular and lower cost way. policy is favoring utilization. we want people treated in the lowest cost most appropriate setting, which is not the er. so you re in favor of the affordable care act, or no? as a patter of policy, i think universal access is the right way to go. we have structural reforms to make, but we made a good first start. the ryan budget introduced today is obviously still playing on the hopes that it will be repeal repealed. yes, i believe as a country we can afford and we should provide ju provide june universal access. if people are not going to the emergency room, and we re taking care of health care conditions, we ll lower costs overtime. so what extent are you part of the cost curve problem? we re part of the solution. most of the assets are either private pay, or in my case, the children s pocket, but in addition, again, we focus on low-cost settings, and that s what it s all about in the future. skilled nursing is lower cost for some seniors, or a medical office building,out patient procedures, that is significantly lower cost. and overtime, policy like a water fall, getting patients and residents to these lower cost settings. are you against increasing the age eligibility for medicare and medicaid. i m personally in favor of it, and i believe the best way is to make them solvent, and that could be pushing back ages overtime. so you re a mix, you re in favor of some of the democrat and some of the republican solutions. we, i m in favor of a balanced solution. more specific to, i guess the financial performance of your company, a lot of people are sort of looking at your stock, the performance in consideration of whether or not to make the swap, you have core principals that you run your business by, can you talk about that? absolutely, we have a very simple set of principals we run the company on and always have. real estate is a great asset class, but we depend on the capital markets because we re dividend paying and that s an important part of the story. we want to keep a strong balance sheet, financial strength and flexibility, so when a financial crisis hits, we can power through strong. so when times are good, when we can access the markets as historically low rates, we re going to build strength, and we came out of the final crisis strong, we acquired $14 billion in assets since 2010, and building on that strength. and we continue to keep a strong balance sheet, focus on liquidity, and continue to diversify our business. and the dividend is very important. we re focused on growing cash thr flows so every year we can increase the dividends, and keep your cash flow. those are the kinds of things we have done to really focus on driving shareholder returns. and it s working. jim cramer just said you were money in the the bank. when we come back, the market on a seven-day winning streak. our guest will tell you where to watch and where to put your money to work. and tom price at the top of the hour, will talk about the ryan budget. can this plan help balance the federal budget? up next, don t start your day without knowing the name that s will make you money, your stocks to watch. court is back in session, but it must be night court. let s look at the stocks to watch this mourning. shares rising sharply in the afterhours. blackberry jumped after consumer and corporate z sales of the blackberry 10 today. yum brands on the rise. they were boosted by the chinese new year, and easy worries about a food scare. that went away faster than anyone expected. that s interesting, the stock move will be one to watch for sure. today jeffreys is cutting their price target to $420. waiting for lunch isn t that how it always it, every up grades it there is a key technical level that everyone is watching. they could announce a special dividend. last year, i guess it was a couple weeks after the shareholder meeting where they made that announcement. yesterday, late in the session, the stocks spiked on high volume because of the rumor mill, so some people watching it closely today. the firm s analyst sees a later iphone 5 s launch. finally in a smaller market cap story, diamond foods, missed wall street estimates, they were hurt by a decline in sales of it s nut brands. airlines don t give out any more. now it s pretzels. if you get a upgrade, it s three almonds. coming up, we re going to talk to tom price. and later, pimco s mohammed el-erian. try running four.ning a restaurant is hard, fortunately we ve got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we ve ever wanted to do and ink helps us do it. make your mark with ink from chase. [ female announcer ] it s time for the annual shareholders meeting. there ll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you re the chief life officer. you just need the right professional to help you take charge. a squawk market master on the rally in stocks. the employment recovery and the fed s exist strategy. paul ryan set to unveil the gop budget plan. i m going to go to the store. we ll talk fiscal responsibility with the republican vice chair and the democratic ranking member of the house democratic committee. where is the booze? i got robbed by a sweet old lady on a motorized card. the ban on large sugary drinks was shut down. welcome back to squawk box, everybody, this is cnbc. joe is on vacation, he is out skiing out west. our guest host this morning is richard bernstein, and jerry webman who is a chief economist. we re going to have more from them. thanks, the dow and s&p rising higher for a seventh straight session. the do you now up 10% in 2013. u.s. equity futures right now. the major asian markets overnight, take a look, all to the downside. how about over in europe? the lixed bag, the ftse getting a little lift. we ll be watching shares of blackberry today, at&t are going to begin sales of the z 10 smart phone. tr was take overspeculatiover s. and the ban of large sugary drinks was brought down yesterday. bloomberg called it totally in error. for the impact on business, here is the mayor s response to that question. i don t think it will hurt your bottom line, but oeceven ie did, we re talking lives over profits. nobody can make the case that 16 ounce cups over 32 ounce cups cost any appreciable amount of money. i think we all have an obligation to try to do what we can to help each other. jackie is spending the morning in new york city getting reactions from consumers and businesses and she will join us with more in a few minutes. and paul ryan unveiling his budget proposal today. it would cut the deficit nearly $5 billion. we have tom price, and one of several members who worked on the budget plan with chairman ryan. good morning to you. good morning. this plan for better or worse has been described as dead on arrival. so many of the pieces of this plan have been prevented in other forms before, why no adjustments in terms of how it s been approached? there are significant adjustments, we do exactly what american families and american businesses have to do, and that s bring it into balance. why a budget that balances in a ten-year period of time would be dead on arrival is simply beyond me. we re in a spending driven debt crisis. the american people understand that. we re going to present a budget today, i m proud to do so with chairman ryan and the other members that will balance in a ten year period of time, that s something to celebrate. one of the other elements is changing the tax code to there are only two brackets, how does that raise enough revenue? it charges the ways and means committee. and as you described, the proposal has been a 10% and a 25% rate. the proposal is to back into the revenue so it s revenue neutral, and it raises the exact same amount of money, but it brings about progrowth policies and we can get the economy going again and getting jobs created. the american people understand that folks are out of work and they need jobs, they want jobs, and the big challenge is that washington policies currently are getting in the way of creating jobs, so we believe pro growth tax policy will get this economy and policy created again. you responded to the question that we have seen it before, but really, it appears as though the republicans are doubling down on a rejected policy, right? the voters had their say in november, largely on this issue, and now you re doubling down on it again, why? i would suggest that the voters had their say, and what they want is washington to bring about the appropriate priorit s priorities, that is not spending more than we take in one house republicans prevailed in this argument in the fall, and the american people understand that washington has a spending problem, and that we can t continue to tax more to spend more here in washington. that has been the proposal from the folks on the other side of the isaisle, the american peopl reject that, and we need to get washington spending under control and get the economy rolling again. so we all want to balance the budget and reduce the debt i don t know about that. there are some people that may not want to do it tomorrow, where is there a meeting in the mid snl where can we start to have a conversation between democrats and republicans where there is some agreement. i have to tell you having read it, i m not sure there is a lot there to go with. the proposals that we put in the last few years are to contrast with the other side. hold on, you re trying to contrast with the other side as opposed to trying to find a place to begin a conversation? just so everyone understands what the deal is? this is the place to begin the conversation. senate democrats put their proposal forward. the fact of the mat sere they haven t done a budget in four years. we re welcoming them to the table, we look forward to sitting down with them and coming to that common ground. it s not going to be all exactly what we want, but we re excited that the senate democrats will do a budget this year. i understand that, but when something is characterized by a lot of folks as a nonstarter, i m sure there are some people on the other side of the aisle that think it s a nonstarter, can t we get beyond that and bring both sides of the aisle together? absolutely, and the way do you that is through a regular order. the budget passes it, the senate does the same, we hope the senate democrats will be able to pass their budget. when that happens, we come together and find the common ground and commonality and go forward. that s a great point. can you give me an idea of what you something might look like, the budget for the next year, and if you get to the conference stage. the big question is if the senate democrats will be able to pass a budget let s assume they do. i think there is positive commonality on the goal of making certain that we save, strengthen, and secure medicare, it will be bankrupt by 2024. the specifics are different on each side of the aisle, but we know we need pro-growth tax policy. energy policy is another area where we have growth, and we need to get this economy rolling again and being responsive to the american people. we had a guest yesterday who was laying out some of his thoughts on this. he was telling us, and i read this in other places recently to, that we have done an awful lot at this point. if we get to the point where we can t cut more, it will be okay because as the economy recovers, there will be more money that comes in. the amount of reduction in spending we have is a more controlled spending. we control it by an average of 3.8%. the other side increases it by 4.1%. we re not that far off. the question is whether or not we re going to be able to come together and if we get the spending curve, washington has been spending so much more money than it s been taking in, and it s on an unsustainable course right now. so that s the goal to make sure we get this economy rolling by balancing the budget and allowing the economy to create jobs. the guest was mark zandy, and he said it would be great to get to a grand plan, and he thinks the economy is recovering and he will start to see better footing, and that washington has do done it s job in terms of a lot of cuts over the years. and in the last 18 months or so, he thinks it put us on better ground. the spending reductions are responsible, but we could not find a common ground with the other side. we can t continue to have trillion dollar or near trillion dollar deficits and expect the economy will grow. that s why it s imperative that we get washington spending under control. congressman, if we could, can we get to just a couple specifics about the tax code? i understand your point about encouraging growth with lower rates. i recently heard from reagan s head of council of economic advisors, talk about the money we spend by not taxing with and reducing tax expenditures. can you give us a general idea, most of us who think about economics think these are extremely distortionary, can you talk about what we could get rid of? all of the credits and deductions distort the tax code. we think they should all be onle table so we can decrease, minimize, or end many of the tax spendtures so we can lower rates. we think it s important to lower rates for small businesses, the pass-through entities, and c-corporations. we have the largest and highest business tax rate in the industrialized world. we urge them to join us in wanting to reduce that tax rate of the highest tax rate in the industrialized world. congressman tom price, we re going to leave it there. don t miss paul ryan on the kudlow report tonight. still to come, hearing from the other side of the aisle, chris van hollen is going to be joining us, more from mohammed el-erian. the cardinals will head to the sis teen chapel for the selection of the new pope. (music throughout) why turbo? trust us. it s just better to be in front. the sonata turbo. from hyundai. at a hertz expressrent kiosk, you can rent a car without a reservation. and without a line. now that s a fast car. it s just another way you ll be traveling at the speed of hertz. welcome back, everyone. the futures are lower this morning, but just barely. the s&p futures off by 1.5, and this comes after seven days of gains by the s&p and dow. a judge striking down new york mayor michael bloomberg s pan on large drinks. he has a 17 inch not 17 inch that s not where i was going it. good morning, plenty of commuters relieved this morning that the judge struck down the ban on surgery drinks over 16 ounces. a couple people telling me they thought it was good public policy and they agreed with the mayor. the ban would have gone into effect today, of course. many businesses were preparing for this ban as well. the clerk told me they received extra cups and that was in anticipation of a shift we would have seen. some businesses would have been impacted by this. so you can see a little bit of a shift there. proponents of the ban say the cost of the business, that it would have, would have been great. we have some businesses like dunkin donuts printing flyers to indicate what the change would be, and some of the mom and pop businesses saying they needed to buy new glassware, but mayor bloomberg says the impact wouldn t be that bad, take a listen. i don t think it will hurt your bottom line, but even if it did, we re talking about lives over profits. nobody can make a case that 16 ounce cups verses 32 ounce cups would cost anybody any appreciable amount of money. the take away is that the mayor did dismiss the impact this would have. the mayor also saying at that press conference that the fight is far from over. they plan to appeal the decision as soon as possible. thank you for that report, and saving myself from myself. this moment has been brought to you by andrew ross sorkin. coming up, paul ryan s budget proposal expected to stir up controversy. up next, we ll speak to chris van hollen. and then the pimco ceo. it s lots of things. all waking up. connecting to the global phenomenon we call the internet of everything. it s going to be amazing. and exciting. and maybe, most remarkably, not that far away. we re going to wake the world up. and watch, with eyes wide, as it gets to work. cisco. tomorrow starts here. a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week. welcome back, paul ryan unveiling his budget proposal today, and earlier we heard from tom price. were in a spending-driven debt crisis, it s time to get washington spending under control, and we re going to present a budget today that will balance, within a ten-year period of time, that s something to celebrate. ginning us now is chris van hollen. congressman, you look at this budget, is there much that you agree with in it? well, unfortunately not. that s because this budget is a totally uncompromising document. it s a retread of last year s budget. we litigated a lot of this in the last election, and this is looking in the rearview mirror and nothing looking forward. what is. terry: does, at root, is protect special interest tax breaks at the expense of seniors on medicare, and it will, in the short term, put a big drag on the economy. and the congressional budget office just looks and this and says over the ten year period, it would boost gross national product by 2023. the cbo also points out that it would do that if you balance the budget by raising revenue. the real question is what mix of policies do you want, we should be making sure that we re reducing our long-term deficits, making sure they re not growing faster than the economy, and also investment our kids, in our future, and meeting commitments to our seniors. because they take such a lop sided approach here, they don t do that. we spoke with congressman price a few minutes ago, and we brought up the idea that this is probably dead on arrival, it takes a very broad reach in terms of doing things like repealing obama care. but cutting spending to the current 5%, which doesn t sound like that big of a deal, and they re talking about balancing the budget by 2023. are there areas of common ground, areas you could find some agreement with republicans? well, we have not seen the details of their budget yet, becky. in the past there were very limited areas of common ground. we agreed we could eliminate some of these agriculture subsidies. i suspect they ll do that again in their budget. the fundamental difference remain that s we support a balanced approach to the long-term deficit. we already made $1.5 trillion, we can do more in a targeted way, and we believe that you cannot meet the other important priorities in our budget, and in our country s values, if you don t have any more additional revenue, which we think we can get by reducing tax loopholes, and you all remember, speaker boehner said he had a plan that would raise 800 billion they said there were all of these tax breaks in the code, and they could raise 800 million yes, but the republicans teal like they have given by saying yes to higher rates, which they were originally opposed to, do you think it was handled from the end of last year to the beginning of this carry, if you could do it over, would you? i would have preferred to see a different result. i would have preferred a larger agreement. that would have contained additional revenue, and it would have had cuts through the kinds of decisions we were talking about then. as you recall, speaker boehner was not able to deliver his caucus on anything that included that kind of revenue but congressman, before we go back, i think the speaker would have trouble with the caucus, and i think the president had trouble with his caucus going back 18 months. and changing some of the goal posts at that point. what i wonder, though, is to your main point, is can we get to a broader agreement, a broader grand bargain, does that exist? i do. i think we have a window of opportunity now between august and september. i m concerned if we don t get it done, that window will close. in my view, the framework set forth in the bipartisan commission, on the cuts and revenue, is the path forward. the reality is that the budget that we have and will put forward are very close to those kind of ratios where as the republican budget doesn t come close. i agree with you. i think simpson bowles is the right way to go. it also generates more revenue than even the president has put on the table. would you take the document as a whole? everyone has things day like in simpson bowles, everyone has parts they hate, it s getting everyone to come together. it s true, but i think we should embrace the basic overall structure framework, then we can debate the particulars. congressman, paul ryan today in playing out his plan makes this note. he says that senate democrats haven t passed a budget in over 1400 days, can you explain why that could possibly be? sure, well for the last two years, we have been operating under the budget control act. it replaced a budget resolution. the budget control act had more impact than that, because it also had the president s signature. we re now in a period of time where we re in a new budget season, i m glad the senate is moving forward. house democrats have consistently put forward alternative budgets. what do you make of the markets? here we are at these all-time highs, a great run for the s&p 500 as well. as you re sitting there bickering, we had the sequester, now we re fighting over the budget continually, that the markets have voted and you and your colleagues irrelevant. who cares what you re doing at this point. well, more concern is that this going from manufacturing to manufacturing crisis is creating a drag on growth in the economy, and i m concerned that the next big looming fight, is that the threat holds the debt ceiling hostage, and it will to the final hours, and it will create furniture uncertainty and make a drag on the economy. i m glad that the market is performing well. at the same time, i don t think we re totally out of the woods yet in terms of the uncertainly generated from washington and the negative impact that will have. when we suppose with representative price, we asked him for areais of common ground. he said that he thinks some areas of common ground could be in terms of saving and strength strengthening medicare. yes, let s start quickly with energy policy, we support a so called all of the above strategy. we think we need to focus on every aspect of energy generation. with respect to tax reform, the question is, becky, is if we do it as simpson bowles did, as opposed to the republican approach, which is not. and when it comes to medicare, in one of the ironies of the n ryan budget is the medicare savings that we generated that was demagogued against. we achieved those savings a different way. they want to put them on the backs of seniors, we change the incentive structure, we modernize it, so we can reduce costs, rather than reduce costs to medicare by putting them on to the pabacks of seniors. i take issue with both sides how you get to those numbers, i think it s garbage in and garbage out, and i think it s unclear what will happen under the new health care reform plans. i think there are a lot of issues that need to be talked about when it comes to entitlements, do you think both plans will sit down to find a way to deal with changing demographics, and to deal with people living longer hand than before? we believe we should continue to adopt the approach that we have taken where we have already seen some significant reductions in the per capita increase. we believe we can build on that approach. but what we have what we will not do is what the ryan budget does, it s the kind of toucher pl voucher plan that we have seen. there are ways to further achieve savings without taking it out on beneficiarbeneficiari. thank you for joining us, we appreciate your time this morning. good to be with you. also a quick programming note, don t miss paul ryan on the kudlow report tonight. when we come back, the judge is still in court. the rally, the fed, and the economic recovery,. nna fall in , get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they ll find some retirement people who are paid on salary, not commission. they ll get straightforward guidance and be able to focus on other things, like each other, which isn t rocket science. it s just common sense. from td ameritrade. all right welcome back, let s look at stocks on the move. yum brands getting a boost this morning. one of it s most important markets, china, has improved. we re also watching shars of dc s sporting goods. they took a hit yesterday on lower than expected fourth quarter profit. this morning, goldman sachs added the retailer to it s list. also cabela s on the move this morning. it said current quarter earnings should be ten to 15 cents higher. it credits improvement in most of it s merchandise categories. scott, thank you. we ve been talking about the fed spurring economic growth inspite of congress, and i cording to our next guest, that s what s happening. we have a squawk market master, mohamed, they re doing all kinds of things, they say it s not just the fed by the economy turning. absolutely becky, in addition to the economy healing, in addition to that, i think that the hypothesis that the market has been conditioned to believe one is that the fed is all in, in particular the fed will not tolerate a big sell off in risk assets. two, the fed is forcing other central banks to be more aggressive. you re seeing the bank of japan do a u-turn. you re seeing the bank of mexico cut by three basis points, and the other is that we can slug off the political issues. i think that is correct. these are correct. the issue is that over time, they become less effective. therefore, we need that handoff fr . i m really glad you re here today, in the last several weeks, we had heard a drumbeat of guests coming on saying bonds are the wrong place to be. we had someone last week that said buying treasuries, government bonds, is the equivalent of bending down in front of a steamroller to pick up a dime. and another guest said if you have any bonds, you should sell them. what do you tell people right now? a few things, the bond market, like every other market, is artificially valued by the involvement of the fed. in the short-term, we think that we are range bound to treasuries. and the range is 185 to 225 on the ten year. on the longer term, a lot depends on if you believe in this handoff. if you do, then you should migrate to risk assets. and have you seen retailer investors getting out of bonds starting to think that the end is near? i can t tell you how many people come and and say there is a bond market bubble. what you do see is an encouraging inflow into equity funds. so for the last nine weeks, there has been about 36 billion that s gone into equity funds, and that off sets off of the flow of last year, so investors are coming back to the equity market, however, it is out of cash, and in particular money market funds. we have seen no sign as of yet of the great rotation that people are talking about. we have richard bernstein who was talking about the problem, can you talk about how youty it could help the economy? if the the fed were to extra case itself from qe and just sell long or medium term bonds, the curve would steepen. and if it steepens with they could encourage lending because the margin on loans will go up. so the fed would raise rates thinking they would be slowing the economy, when they would be stimulating the economy. and it s important when, because of that, when they extra case themselves from qe, they have to do so in a curve neutral format, do you agree with that? so there is no doubt that by artificially altering prices,ed fed has changed behavior, and what has changed is the normal lending that goes on to various sectors, that s absolutely correct. the problem is it also changed massive behavior elsewhere. so it s very delicate and this exist will be one of the most challenging issues facing any central bank. and remember they re not just exiting from purchases, but also from very aggressive policy guidance language, and from interest rate fraud at zero. when it comes, it will be incredibly complex, and they have to do it in coordination with other central banks that have been forced to do the same thing as the fed. wouldn t you say that everything has been in the normal cycle but on steroids? it s done so more so because of the depth of the recession and what the fed is doing. aren t we going through the same discussion we go through in every cycle about the fed taking the the punch bowl away from the party? isn t this kind of normal? just the discussion on steroids? even if you look at asset performance, it is normal, it s been right out of the textbook. i heard you say that earlier this morning, and my reaction was yes, butt. unlike the past, we re structurally impaired as an economy. we haven t mixed many of the structural problems that grew up over a number of years. so we are still structurally impaired. we can walk, but we can t run. so if we take away the stimulus, it s not going to be quite the same. the second issue is that we haven t been quite here in terms of what bernanke calls the cost and risk of unconventional policy. the problem is that it changing the functioning of markets. and therefore, that is different from the past where he only where the fed only applied a price instrument here, it is applying a quantity instrument. so there is lots of question marks. and i think we re going to have to learn as we go forward. all right, mohamed, appreciate having you on. coming up, fed watchers are going to be looking for signs. what we just talked about, blue the positive february jobs be enough for chairman bernanke to take his foot off the gas? 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[ male announcer ] i ve seen incredible things. otherworldly things. but there are some things i ve never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don t seem so.far away. all right, welcome back, the february jobs number may have sparked the rally, but the up turn won t be enough to satisfy the fed heads. why not enough at this point? it s certainly a step in the right direction. it s a step in that direction, but i ll give you a couple reasons, the unemployment rate is still 7.7%. we also had three years of head fakes. we had several years now where it looked like the economy was getting stronger early in the year, and by summer each of those years, there was talk about exist in february and march. by summer, they had to start a new program. i think they want to be convinced this is real. do you think they fear the negative effects have not quite taken hold yet, the tax high will filter down and hurt the economy? i think that s a good question, and it s something they don t want to talk about. they don t want to look like their facilitating fiscal policy, but they re very concerned about the sequester. the private sector is looking pretty good right now. the job s numbers are strong, we re seeing more spending and investment, but you re seeing fiscal drag coming down the pipe look what they said yesterday. talking about the drags that we re seeing, he worries about what s happening here in the united states more so than other places. and the job s numbers look good, but the estimates that i m seeing for growth in the first quarter are around 2%. that will not continue to produce a lot of job growth, and another thing they re worried about. it comes to a point that mohamed made a few minutes ago. if you think this financial crisis began with that moment in ought 2007, and lasts that many years, then we should not expect the fed i m a chicago boy, in the financial crisis, we destroyed a lot of money. why would they be expecting them to tighten at this point. why would anybody think they would be tighten. the talk works against them, right? so when there is talk of an exist, the markets tighten for them. you have see bernanke pushing back against that. so the conversation that we re having here, that conversation has started there. there s been a lot of talk about financial stability issues. i think one of the things that we could see coming out of this meeting, the petdal says to the metal, and it is elevate second degree, we could see some talk about that. they don t want to push too hard on this yet. i don t think there has been ever a cycle where the fed led the market. you mentioned before the market has kind of pushed back on them. i don t think there was ever a cycle where the fed dictated to the market what happened. the fed reacts to the market. they have two separate incidents their managing against. one is 2002 to 2003 when they were worried, and they said they would come out of this very slowly. the other one is 1994 when they sent a signal they were retiring. they had some blow ups. so, i mean what they re going to be looking at this time around, and it s probably some time down the road, is how do they something this without moving you know, it s like the gol goldilocks program. in the past, they had essentially one thing they could do. now they have the interest paid on excess reserves as a way of managing the short end, they have long-term, they have credit purchases still on the portfolio, and they can begin to move in lots of different side h operations with, you know, where do they move first? that s a really good point. in the past the fed managed one interest rate. an overnight interest rate that banks charged each other. what i m starting to call this is yield curve management. it s a geeky term, but they started managing long-term rates and the conversation has gone toward recently is they re going to continue to manage long-term rates far into the future. so there s an interesting debate that s started there about the exit policy and what they re doing with their balance sheet. the strategy a couple of years ago was that they would gradually sell down their mortgage-backed securities which would push long-term interest rates up and they re saying maybe we won t sell down the interest rate securities and we ll hold them and hold the interest rate reserves. so what we re looking at for a number of years is a federal reserve that s not just managing short-term interest rates, but also long-term rates. when we come back we ll get you red for the trading day ahead. jim cramer will join us with stocks to watch right after this. transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you re thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it s no surprise to you that companies depend on today s xerox for services that simplify how work gets done. which is.pretty much what we ve always stood for. with xerox, you re ready for real business. let s get right down to the new york stock exchange where jim and david are getting prepped for squawk on the street at the top of the hour. what are you going to be watching along with david this morning? i m focused on a little deal that may not be so little. the number of bidders and this is the kind of thing, thermo fisher, it s surprising. there are deals happening on tuesday and not monday. deal talk, at least. deal talk. we talked about boards not wanting to meet on sundays anymore. daylight savings time threw people off. say that again? daylight savings time threw people off. we haven t seen as much m & a about oh, my god, we re back. there was a lot there. there hasn t been nearly as much. the life deal on the private equity side would require a number of firm to participate to get to any number that they would potentially consider. this is a great company with technology that is biotech that makes you do gene sequencing. they re moving into health care equipment. a number of bidders and this is something worth focusing on because we need to see m & a back to sustain these levels. cramer, looking at merck in the pre-market it s up about 4.5% in large part because it said it s going to be able to move along with the study for its vytorin cholesterol treatment. do you know anything about it? this is supposed to be the next quantum leap in anti-cholesterol drugs. lipitor went off patent and this whole group has not been making money for anybody. pfizer tried to protect the brand. if merck can do this and it does get axe proved and it is the next leap merck will be dramatically higher than it is right now. do you have 30 seconds on dell or no? there s not much to say new today, right? carl icahn s in there. i did notice they signed up citi as another bank. when you think about blackstone signing, you know this, as well the biogroups signed up almost all of the banks out there which questions, at least the ability to raise the financing if you were not a counterbid which i think is highly unlikely. what do you think? i m completely in agreement. there it is. that s what i like to hear. a squawk on the street agreement. i like that. worst over for young? you bet it is. they ll wait until 75 because they re stooges. i m sorry. they re misinformed. we have to run and we ll get the last word from our guest host after this break.
a woman and her seven chilren say there is no indication it started deliberately. the family was turkish and the sador is going to the scene. emergency services went to the town of bachnan in southwest german to investigate a heater that may have caused the fire. a sleeping family caught by surprise. 100 rescue workers were at the scene and they saved three people off a balcony, a n 11- year old boy, hiand his uncle ad grandmother. neighbors say they helped with the rescue. three people were trapped on the terrace. we broke through and got them out. the family was turkish and the father was not at home. how the fire started was not unclear. authorities look into if a wood-burning stove was the cause. the building housed a german- turkish cultural association. turkey s government caleld for a speedy invesitagation. in pakistan, 150 are arrested after protests for more protection for the government. they stormed a christian neighborhood after rumors a christian man had made blasphemous remarks about muhammed. anti-nuclear power rallies are held in japan to mark the aniversary of the fukishima disaster. thousands called on the japanese government to shut down theri atomic power stations. what have we learned from fukushima? their demands are simple. tanke nuclear energy off line. move over to natural energy sources for the nation. monday is the two-year anniversary of the earthquake that led to meltdowns in fukushima. 150,000 fled their homes and increased radiation across north japan. clean-up is expected to take decades. i never imagined there would be an accident but it is not a great idea to use nuclear power plants. theye new voernmengovernment ss need nuclear power and want to build new plants, which these protestors impose. in sports, a steady day in the league as hamburg beats stuttgardt over their former coach. the win was scored in teh 50th minute to go to 6th. there was little between hanover and frankfurt and it puts a dent in the champion s league hopes. they are without a win in four games. plenty to get excited on saturday. fierce rivals clashed and in the end, striker prevailed thanks to goals from gunter drexler was man of the match and fittingly he is a local, too. playing and beating baruska is he pulled the strength ofor his team. he pierced the daltmon defense for the well-deserved open. through the first round they attacked tehe visitors. in the 35th minute they punished them to make it 2-0 for the host. he had to go off with a knee injury. that was daltman s cue and they fought gamely back. robert lemondosky set up a barn- storming finish. but there would be no more goals. when you see how we played after the break, it is a shame we slept through the first half. we are on the way back. we should not think about champion s league qualification too soon. they can afford optimism. a second win puts their campaign back on track. byon had an escape against deuseldorph, fertz was beaten 3- 0, and nurrenbuerg beat 2-1 and they could only draw. let s look at how the table stands then. an incredible 20-points clear, and schlieger crawled into the champions league. the relegation battettle hoppneheimer is by two points and the bavarians are yet to win a home game. to cycling, it was a good day for australian richie port. after a strong performance in the final time trial. he is the first australian to win the event. andre telansky came in for a second halplace finish. finished third. the crystal slopes are being polished. the competition s climax is coming as ted liggette can claim his globe. in slovenia, it wwas the turn of the slalom specialists. one had plenty to celebrate. his reaction gave nothing away. marcel hersher of austria after winning. you don t seem that happy. i am overwhelmed. i m just too dumbfounded to celebrate yet. fascinating to finish second after falling so far behind after the first run. he got back two seconds on the second attempt to propel to 8th place. with that the title was as good as he was. felix noidroit was out and he was champion before the event concluded. tehre was time for a surprise as evitza repeated his tri umph from a decade ago. richard has won the large hill event in finland. it was the 21-year old s third career win, a fine weekend for germany s ski jumpers. he got 274 points ahead of the norwegian world champion. meanwhile, also german finished first with hobson. more international news. 10 s of thousands protest in spain against massive unemployment. a broad collection of civil groups helped organize the protests. much of the anger was directed at mariano who is involved in a major corruption scandal. unemployment is 26% as many spaniards emigrate for work. the junior partner in germany s coalition says france must not break the rules. he said paris should not breach the 3% deficit limit. the french government said they d fail to bring the debt under control. he was chosen to head the party s campaign. a new leader, they want to turn their party s ailing fortunes around. there was no shortage of metaphors to turthe task ahead. we will fight as tehe team. you are tehe top striker for us. this is your sybol for the ftp and our country, thank you. bruedeler is good at speaking his mind. some may say he is too good. here is what he had to say. we are not leaving the country to these idiots. we will fight every day until september 22. let s go into battle. bruedeler recieved a five- minute standing ovation and for now, the party is united behind him. i think they pulled together and bring their strength to the campaign. with bruedeler this is a wonderful battle. only time will show if they are a dream team. they are entering election season as the underdogs. the falkland islanda r are hosting a referendum about if they will remain a british territory. 3,000 are registered and expected to stay with britain. argentina claims the islands are its territory and won t accept the outcome of the vote. the falkland islands are home to countless penguisn and humans.nd less than 3,000 they are from scottland and wales, and the island belongs to britain. but argentina doesn t accept that and see the inahbitants as colonists. they say the native population was pushed out and replaced with settlers. argentina argues britain has no right to the islands and says geography is on its side. the distance is 1400 kilometers, and they are 400 kilometers from argentina. in 1952 they failed to take back the islands by force. 6500 argentinians and 250 british were killed in the war. britain has promised to protect the inhabitants but argentina says they will save the island. oil and gas have been found and britain and argentina want to profit. for more, go to our website, dw.e, and stay with us, we will have more at preparations began to elect a new pope. they were gleaned as for who would be the next pope. but the cardinals gave nothing away. we have a week to know one another better. that is all i can say. is the next pope from latin america? anything is possible. at the same time, rome was rife with speculation. some media reports said it showed details of a sex ring in the vatigan. the cardinals continued deliberations and at the end of the week, frederico lombardi announced the conclave for a new pope would begin tuesday. final preparations are underway in the sistine chapel. one will be used to burn the ballots, the other to produce the white smoke to inform a new pope has been chosen. voters in kenya turned in to vote for a new president. it was believed there could be a repeat of the ethnic violence in 2007. but election day was peaceful. all i want is for the elections to be peaceful. the prime minister and his deputy, uhuru kenyatta were the front-runners. there were allegations of vote- rigging, and at the end kenyatta was declared the winner. he has been indicted for crimes against humanity, creating tension also on monday, german s conservative party ruled out giving homosexual couples the same tax rules as heterosexual couples. some in the cdu called for change, exposing divisions in the party. angela merkel went with the traditionalists, ending the debate ahead of national electiosn ins in september. a country in mourning as hugo chavez s death led to an outpouring of grief in caracas. chaves died after a 2-year battle with cancer. we have recieved the most tragic news we will have to tell our people. hugohe 5hth of march, chavez died. for 14 years he held sway over venezuela and critics say he was autocratic but he pumped billions into social projects and was adored by the poor. his body was taken to the military academy, where it lay in state and allowed mourners to pay respects. chavez was everything, our father, brother, everything. chavez is my people. chavez is venezuela. fresh elections are next in the political transition but this week, they said goodbye to one of latin america s most colorful eaders. leaders. the annual session of china s parlaiment began. anemier wen jiabao gave hs address about his government s achievements and called for the next government to tackle corruption. we should be unwavering in our battles for political integrity and end the concentration of power and lacks of check on power. next weekend, the parlaiment will confirm the new premier and she has promised to clamp down on corruption. it is not clear how radical he will be. the new government will focus on economic growth. indonesia s president bambang yudhoyono met with angela merkel. if euroope does not want to fall behind we need a trade agreement. indonesia is interested in german combat tanks but berlin is hesitant on human rights violations. they later opened the international tourism fair. relations between the countries are going places. a new report on living conditions was slammed as a whitewash. it emerged that it was rejected by the fdp as it showed a gap between rich and poor and recommended a minimum wage. phillip ruesler vetoed the report for a new, edited version. the opposition was outraged. i don t think germany has seen something like that, where the government faked a report on trends in german society. the labor minister said new elements were added and justified the changes. the overall message germany is on the right path. north korea threatened a pre- emptive nuclear strike against the u.s. pyongyang sharpened the rhetoric after new sanctions. even china supported tightenign the sanctions. beijing is calloning for all sides to show restraint. the top priority is to defuse the tension and bring dwoown the heat. north korea has joint military exercises with south korea and the u.s. the north accused them of preparing an attack. kim jong-un was shown visiting front-line military unites. pyongyang said they canceled the 1953 armistice agreement ending the korean war. bulgaria and romania had another delay in their efforts to join the zone, an end to border control for bulgarians and romanians to western europe. germany said it would block the two country s entry. peter frederick cited organized crime, and austria also voiced objections. a court in italy sentenced one yearrlusconi ti one yeao in prison. he was found guilty of publsihin hing wiretaps. the charges will expire before the hearings are complete. he will face charges of tax fraud and sex with an underage prostitute. leaders from latin american gathered in venezuela to bid goodbye to hugo chavez. the president of belarus was invited to join the guard of nejad.with amadejad. it wil lbl be embalmed and put on permanent dispaly folay r the venezuelans who want to show respect. maduro was sworn in criticized by the opposition on constitutional grounds. he has called for immediate electiosn. ons. rebel fighters in columbia freed two german tourists held captive for four months. columbia s second largest rebel group took them in the northeast of the country in early november. ariza lost three sons in the seige. the body was badly burned in the hiroshima bombing. an exhibition by melissa roth opened on friday. the title is women and war. these photos span three decades. no blood and guns, just a silent record of suffering. i see them as survivors and not as victims but they have to live their entire lives with the backdrop of war. some were active in war themselves. martina anderson was an ira bomber now working for peace. all the women are named and marisa knows each one s story. widowed, raped, scarred by war and determined not to give up. melissa says all the women are heroes. at the end, she shwoows laughter and younger women, hoping for a better future. hoping for a better future. and that
the men arrested today boasted about wanting to kill president obama and blow up coney island in new york city. another man proposed shooting police and fbi agents. plans they allegedly said they would put into place if they weren t able to join isis in syria. two of the individuals were seek ing seeking to fly to syria. one was arrested at jfk airport as he was getting ready to board the flight. a second individual had a later flight scheduled. reporter: in court documents prosecutors point to conversations on line including one last summer in which he wrote of his desire to shoot obama or get shot ourselves. will that due? that will strike fear in the heart of inif idles. that alarming post brought agents to his front door. they identified them as such. reporter: one of the men began communicating with an isis administrator in iraq who encouraged him to join the terrorist group overseas according to court documents. investigators say later communications revealed the two men began coordinating travel to turkey. often seen as a gateway into syria by foreign fighters. to prove a conspiracy, you only have to show that there s been a material effort or forward step in furtherance of the conspiracy. and clearly those communications would indicate that there s been a forward step in the conspiracy. reporter: in court documents released both suspects are accused of purchasing roundtrip tickets to turkey with the help of their friend who allegedly provide more than $1,000 for their travel. one of the men told a confidential informant if he was detect at the airplane they could kill a police officer and use the at the airport, they could kill a police officer and used officer s gun to shoot other officers that arrived on scene. pamela brown, cnn, washington. a u.s. military official tells cnn coalition warplanes have struck a new target. an isis training camp on the syrian border. the official would not confirm reports that senior isis leaders were killed. meanwhile, iraqi forces say they ve retaken most of the town of al baghdadi in anbar province. military convoys shown in and around the city close to an air base where u.s. military personnel train iraqi pilots. let s get the latest on the battle against isis. ian lee is monitoring developments from cairo. how much to we know about the welcome to on the isis training camp and, of course the overall battle against the terror group? reporter: rosemary, we don t have too many details about what the air strike if the air strike killed an isis commander or what other than that it was striking an isis training camp. it is on the border with syria in the city down the road from al baghdadi, part of the anbar province leading from baghdad all the way to syria. the iraqi road security forces battling it out with isis as we heard around the city of al baghdadi. this is part of the lead up to the spring offensive we re hearing about from the u.s. military where there will be targets at least trying to go after and retake the city of mosul, something the iraqis haven t been too happy that the u.s. leaked information. it s to be seen if they can mount a full-out offensive and take the city. rosemary? there s much concern about the assyrian christians kidnapped by isis. what more are we learning about their fate this hour? reporter: really we don t have much more details about what has happened to these people. the attack took place along a string of syrian christian villages in the eastern part of the country, to the southwest. there s a mountain range where isis fighters have been in control. they went into villages pushing out ypg kurdish fighters as well as christian militias. those militias and fighters were able to retake part of the towns. these roughly 90 people taken captive, isis has not been good to the peoply before. we ve known that they have sold women as sex slaves. we ve also seen them kill their captives. we re waiting for the fate of those people. indeed. a great deal of concern regarding their welfare. ian lee monitoring situation was cairo. many thanks to you. let s check some other stories we re following for you at this hour. we now know a turkish military vehicle was the target of a suicide attack in the afghanistan capital, kabul. the vehicle was hit outside the iranian embassy next to the turkish mission. the explosion killed two and injured two others. a member be of the turkish military personnel and member of afghan security forces are among the dead. the taliban are claiming responsibility. australian prime minister tony abbot has made a direct flee indonesia s president to spare the lives two of australians on death row. the men were convicted in the bali 9 drug trafficking case in 2005 and are scheduled to be executed by firing squad. the u.s. federal communications commission will finally vote on the divisive issue of net neutrality on thursday. the five-member be board is expected to approve the chairman s plan. the new rules aim to preserve an open internet and prevent internet service providers from discriminating against content creators. united airlines issues a strong warning to its pilots after a few near misses in the cockpit. details coming up. prince william begins a week-long visit to japan and china while he leaves two important companions at home. and another round of winter weather blasts the southern u.s. canceling flights and causing major headaches on the roadways. 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journalists have been arrested for flying drones over paris. the city prosecutor s office says they re not connected to the recent string of drone sightings over famous city landmarks. al jazeera says its crew was doing a story about the mystery. more drones were spotted over paris wednesday, making that the second night in a row. police are investigating the sightings. united airlines is warning its pilots to shape up after some major mistakes. airline officials sent out a safety memo after recent safety events and near misses raised alarm with officials. it include an incident where pilots had to pull off an emergency maneuver to avoid crashing. in other case the crew let the fuel run dangerously low. the memo blames personnel shifts among pilots including retirements, new hires, and transfers, and different aircraft types. no word if pilots will receive additional training. our aviation analyst joins us from charleston south carolina, to talk about this. mary this two-page memo noted for how blunt it is is simply asking all airline staff to be compliant with aviation procedures. should we be worried by this? we should. we should be worried about the fact that it took management and top brass of an airline to remind pilots and safety staff and trainers that this aviation safety rule is serious, and you must follow them. that s alarming. what s encouraging is that the brass did step for and to. that safety has to start at the top down. the fact that they did it was good. the fact this they needed to alarming. let s talk about the need to the memos notes there were emergency pull-up maneuvers and all sorts of other close calls that happened at many airplanes across the summit. what should we make of the fact it took a lot of near misses to get the airline to get its acts together? together? those near misses are pretty significant. the emergency pull-up means the ground proxim warning system went off. that basically means that you re going to fly a perfectly good plane into the grown or into an obstruction into the ground or into an obstruction. for a commercial airliner to get that close and have the warning go off is unusual. and it s very serious. obviously the flight crew should have been paying better attention. the fuel situation where they had run dangerously low on fuel is a violation of a federal aviation regulation. turns out they weren t actually about to run out of fuel they simply forgot to turn the fuel on. there have been many crashes where the planes have gone down because of fuel starvation. that s usually a mistake made by general aviation. and private pilots puddle jumper pilots that s often a common cause of a crash. not in commercial aviation. considering what we have to go through at airports, the amount that we pay for tickets, i m sure viewers will fine it unacceptable that they be on a flight where the pilot forgets to turn on the fuel. you mention it s more of the puddle-jumping pilots. what about staffing? the airline employs some 12,000 pilots, but you you have people who are retiring one report notes that they re hiring an average of 50 piles a month. is there a generational aspect pilots a month. is there a generational aspect to this? there s a generational aspect but you know generally it s just kind of a perfect storm. it s not necessarily the ages or the different generations. it s the fact that an airline is dramatically hiring and staffing up at the same time it s changing some of its floats and planes. that s usual its fleets and planes. that s usually a perfect storm when you have a recent merger new hires coming on new aircraft and now routes. they ll have new procedures. planes pilots, procedures, when they re all in flux that s a perfect storm. management needs to be involved to make sure accidents don t follow. now that we ve scared everyone from flying what will you say to the average commuter about the state of air travel to or from the u.s. today? it s funny that you mention commuters because it s regional planes in the united states that have had crashes in the last years and the majors have not. this is a will beup call for the majors a wake-up call for the majors. they fly the big boeings and air buses and have a terrific safety record in general. there s complacency, pilots that are relying too heavily on the auto pilot, and this they have these near smisz a good wake-up call for management. the good news of this is that management responded forcefully as it should. now it has to follow through, apply discipline and training and make sure they really do what they have commanded all these pilots and their trainers to do. we ll be watching closely as will you. our aviation analyst, thank you for joining us from charleston, south carolina. thank you. southwest airlines missed required inspections on 128 of its boeing 737 aircraft. the lapse led to the cancelation of dozens of flights this week. southwest notified u.s. aviation regulators about the problem on tuesday, then voluntarily growned more than 100 grounded more than 100 planes. the federal aviation agency says the planes can keep flying up to five days while the inspections are completed. all unnerving for those of us who like to fly. officials across the sunrise u.s. are asking drivers to stay home. snow and ice are making roads dangerous. the latest on the winter storm coming up. plus, prince william embarks on a week-long visit to japan and china. a look at his groundbreaking trip next. septic system breakdowns affect over 1 million homes a year and can cost thousands of dollars to repair. thankfully, rid-x has enzymes to break down waste and time-released bacteria to reduce tank buildup. rid-x. #1 in septic maintenance. and now for rvs too! avalanches have fallen for a third straight day in afghanistan killing at least 168 people. this is happening in a mountainous province north of kabul. the area s seen heavy snowstorms for days. the governor there says about 100 homes have been destroyed. pedram javaheri, our meteorologist, is here with us to talk more about the avalanches. what exactly triggered these. it s prone, this region, mountainous to hindu regions, this of the most mountainous areas, afghanistan and areas of pakistan to the minority. officials saying there s a 40-kilometer barrier that they have to plow through get to assistance needed in the region. kind of shows how treacherous the terrain is. i want to show the google earth depiction of the area. it s been a mild winner across the leaf actually. temperatures winter across the middle east actually. temperatures warmer than usual. the province here, official saying this is the worst avalanche they ve seen in some 30 years in the region. we had one in 2010 another in 2014. large- large-scale fatalities associated with that. here s the snow cover of the mountains of northern areas of afghanistan and pakistan. this is christmas eve. the color indication shows the snow across the mountain range. look what happened on the 14th of february. literally an explosion of color to the north and to the east. so this is the concern in recent days. and avalanches typically occur spontaneously when you have a fresh coating of snow if it s hef and wet enough could cause stress on the tops of the mountains. if you re getting perpendicular winds to the mountaintops you ve got to have a significant slope. the mountains meet the category and criteria of 25 to about 55-degree angle. when that s in place, you certainly can waken the top slabs or layers of snow and ice causing avalanche, what we believe occurred in the region of northern afghanistan. in the united states wintry weather in place now exiting the southeast. pushing for the mid-atlantic states. in charlotte, one of the areas across north carolina charlotte we re seeing some 500 flights canceled. some snow showers push in across the region over the past several hours. nearly a foot in and around alabama. far northern alabama. we see this on social media. eric brown posting this on twitter, an igloo they put together in a few hours time from all of the snow that came down across portions of alabama. temperature warming up. snow moving to the minority. the nation s capital could see an inch or so. southern areas of virginia could get to another foot of snowfall over the area. to the south, brazil had historic drought taking place over the past months. i want to show the past 24 hours. heavy rainfall on the order of four inches or 100 millimeters in an hour s time has come down causing a lot of problems for a lot of people. yes, conditions going to remain wet for the next couple of days. little rainfall to go with and the ground has a tough time taking in the saturation. it s been a problem. want to leave with a spectacular sight out of an island in the pacific ocean not far from japan. this island over the past several months has grown some 11 times its original size. the growth spurt, yeah believed to be because an underwater eruption that began some 15 months ago. it create a new salon. lava had connected to a previously existing island nearby. t the combined islands cover almost 2.5 square tillometers of land kilometers of land in the pacific. incredible. amazing. the power of the volcanos. thank you very much. a royal visit to asia. prince william the duke of cambridge, has kicked off a week-long visit to japan and china. and here we have these live pictures. he has arrived there in tokyo. not a particular bely nice day. there s a lot ahead particularly nice day. there s a lot the ahead. live pictures now. our max foster s watching all of this from london and talks about what we can anticipate on this trip. on the surface, visits look pleasant and formal to some degree. obviously prince william is selling brand britain while he s in asia. what is on the agenda? reporter: here you see soft diplomacy really i guess. if we take you to the live pictures terrible weather it seems in tokyo. he s arrived at the gardens. these are the gardens that used to belong to a showgun. he s going to have tea. what s interesting is the spot is where prince alfred arrived in japan in 1869. he was the first-ever european royal to go to an official visit there. prince william traveling in his footsteps, then goes for tea in the traditional tea house. a ceremony presented boy master of ceremony. green tea. the palace saying it will likely be a lovely welcome to tokyo. they re trying to go there. billion relationships with the japanese. and then around that there will be some u.k. government-sponsored events where they try to billion up business ties between to build up business ties between the two countries. prince william will pursue his own interests, as well. these are complex affairs because prince william can t get involved in the politics of the country but wants to build bonds and ties and work on behalf of the british government at the same time. it is a delicate operation, isn t it? he will also go to fukushima and meet with people there, taste the food perhaps and the prime minister will be with him. reporter: exactly. there s some concern about this locally. the prime minister definiteliness to proposal the message around the world that there s been a great story of recovery around fukushima. by eating local food and stopping at a local playground prince william will be aware of that possibly. we ll see how he juggles that with local concerns that that s sending the wrong message. there s still problems there, and it s not necessarily always okay for kids to play outside. not necessarily the message some want to promote. it is the message the prime minister wants to promote. as you say, this is a typical thing that they try to negotiate without offending anyone. but also doing what their hosts would like them to do as well. max foster live from london as we look at the live pictures as prince william arrives amid rainy weather. he ll be anxious to get to that green tea which we understand is waiting for him. max, thanks a lot. fox news host bill oriely is defending himself once again against accusations that he embellished or lied about some of his reporting in the 70s and 80s. he was a correspondent for cbs news. he told a story about his photographer being injured while the crew was in argentina. multiple cbs staffers interviewed by cnn say that man was never hurt. all hell breaks loose. the people start to storm the casa rosata. the argentine troops shoot the people down in the street. shoot them down. not like rubber bullets or gas. it s people are dying. i great my crew and grab my crew away. we re down a side street, shooting all this stuff. it s unbelievable. people falling, ding ding, ding, ding ding. soldier runs down the street. i m there, photographer gets trampled. he s on the ground. i grab him and the camera and drag them in through a doorway. the soldier comes up and is standing maybe ten feet away. he s got the m-16 pointed at my head. i thought it was over. i said journalist, don t shoot, por fiver. in his no medicine zone that he no spin zone that he maintains, he stan by his words. the photographer will not comment. the brit awards is one madonna would probably like it forget. check it out. oh boy. gets worse the more you see it. madonna wearation cape is yanked down wearing a cape is yank down flying downstairs. one of her backup dancers pulled it. she was supposed to release it. fortunately the 56-year-old was able to get back up moments later and finish her performance. it was incredible. after warz on instagram afterwards on instagram she said she was fine. she said her cape of tied too tight. we will have more on madonna and the awards just a little later in the program. yeah. all right. coalition forces are training front line fighters in the war on isis. coming up why some kurdish soldiers say training alone just want? enough. plus just isn t enough. plus a fight over homeland security funding is pitting the white house against republicans once again. [ male announcer ] eligible for medicare? that s a good thing, but it doesn t cover everything. only about 80% of your part b medical expenses. the rest is up to you. so consider an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans they could save you in out-of-pocket medical costs. call today to request a free decision guide. with these types of plans, you ll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp. and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide. hello, and welcome to our viewers in the united states and around the world. this is cnn newsroom. i m errol barnett. i m rosemary church. we do want to check the headlines for you this hour. the fbi says it has foiled a plot by three men to hijack a plane to isis territory. one of them talked about assassinating president obama. two appeared in a courtroom wednesday. the other was arrested in florida. turkey s military says one of its military vehicles was the targets of a suicide attack in kabul near the iranian and turkish embassies. there was a stein a turkish envoy who is nato s top civilian representative in afghanistan. two people were killed. a number of turkey s military and a member of the afghan security forces. two others were wounded. egyptian authorities say at least one person is dead after a string of bombings in cairo. two of the bombs went off outside mobile phone stores. the heard it fatal bombing was outside a restaurant. police were on their way to check on a report of a suspicious package when that bomb exploded. we ll get you to northern iraq now where coalition forces are hard at work training kurdish fighters to battle isis. they re teaching them to use grenade launchers and to detect explosives. the kurds say they need more than just training to be effective. they need better weapons. senior international correspondent ben wedeman reports. reporter: kurdish fighters rushed to battle stations crawling to take up positions behind sandbags. moments later they opened fire. [ gunfire ] reporter: isis is a long way away. these men have taken part in an expanding coalition training program for the peshmerga. instructors are from the german army. for security reasons, they decline to be interviewed on camera and ask that we not show their faces. many of the peshmerga like 18-year veteran jalil abdullah are no strange force war. nonetheless, this modern training makes a difference. when we return to the front, he tells me i m hoping we ll take fewer casualties and inflict more on the enemy. in iraqi kurdistan, training is conducted by german dutch, itall can, and british troops. elsewhere in iraq troops are working to update the beleaguered army. dutch soldiers train the fires in the most basic of battlefield first aid. how to protect and evacuate the wounded during a fire-fight how to tie a tourniquet. peshmerga units don t have medics. the wounded are simply thrown in the back of a car, and if they re lucky will survive a drive to the nearest hospital. one aspect of training the peshmerga have asked for says their spokesman is urban warfare. foreshadowing perhaps a role in the battle for mosul. if that battle happens, the worry is that isis will sow the city with thousands of improvised explosive devices or ieds. here the troops are learning how to deticket i detect ieds, one of most deadly tactics used by isis. casual fees and fatalities many casualties and fatalities caused by ieds. the training program started last smooth already showing results. the platoons we train at the front lines. we got the answer from the peshmerga general, this those platoons are much more efficient than before. reporter: and perhaps more deadly. here italian troops are training the peshmerga on the italian-made an i tank weapon. a weapon likely to make an impacts when they take an impact when they take it to the frontment ben wedeman, cnn, outside urerbil, northern iraq. to the latest sign of the worsening dispute between the united states and israel. the u.s. korean state is openly questioning the israeli prime minister s judgment. it comes as the summit and other western powers try and secure a nuclear deal with iran. john kerry s comment came as benjamin netanyahu prepares for a speech in washington next week where he s expected to suggest the west has given up on thwarting a nuclear iran. reporter: from the agreement coming together, it appears that they have begin occupy this commitment and they giving up on this commitment, and they are accepting of iran. gradually in a few years would develop the means to createtorial for the public sector of very many nuclear weapons. the prosecutor as you recall was profoundly forward leaning and outspoken about the importance of invading iraq under george w. bush. we know what happen with that decision. he may have a judgment that may not be correct here. and just by way of background republican house speaker john boehner invited mr. netanyahu to the u.s. without consulting the white house. some u.s. democratic lawmakers plan to skip his address because they say it will directly oppose president obama s diplomatic efforts with iran. all this tension comes as iran participated in what it wants to appear as military war games in the strait of hormuz. iran flexed its military muscle wednesday by staging exercises that included an attack against a replica of a u.s. aircraft carrier. as the u.s. homeland security shutdown deadline approaches all eyes are on house speaker john boehner. he has two choices on this issue abandon his party s fight against the president immigration actions or stand with them and take the blame for shutting down the agency tasked with protecting america s borders. dana bash has more. i m waiting for the senate to reactment. reporter: with days until they run out of money, the top republicans who run congress john boehner and mcconnell, met after not talking for two weeks. our staff talked back and forth. listen senator mcconnell s got a big job to do. so do i. reporter: it s a window into their challenges of governing. i d be happy to have his cooperation. reporter: conservatives furious that senator majority leader mitch mcconnell gave in to democratic demands to fund homeland security without blocking the president s immigration plan. boehner wants his rank and file to know he had nothing to do with it. right he harry reid is running the senate. that s a sad day. there s no way on god s green earth that i will support an effort to illegal conduct. reporter: a familiar headache to boehner. with the majority now in both chambers of congress conservative expectations are even higher that leaders won t back down to fights against the president s policies. are you concerned that if you bring up a clean bill to fund the homeland security department like mcconnell says he ll do in the senate it will be the end of your speakership? i m waiting for the senate to act. the house has done its job to fund the department of homeland security and to stop the president s overreach on immigration. we re waiting for the senate to do their job. the clerk will call the roll. reporter: with the senate moving forward on funding homeland security the tough choice will squarely fall in boehner s lap, fund the department or let conservatives down. despite the no-win situation, boehner aides dismiss any notion that he d be in trouble. [ applause ] reporter: and they point to him pleasing conservatives by inviting israeli prime minister in the the netanyahu to speak benjamin netanyahu to speak next week angering the white house. on both sides there has been injectsed a degree of partisanship which is not only unfortunate, i think it s destructive of the fabric of the relationship. that was our dana bash reporting there. once again, the u.s. department of homeland security is set to run out of money this friday at midnight. right. in the united states another win in the fight to legalize marijuana. this time in the nation s capital. recreational marijuana use became legal in washington, d.c. as of midnight thursday. the district joins alaska colorado and washington state as places where people can legally smoke weed. a quick break now. officials say they know what caused this massive explosion in the u.s. that destroyed a new jersey home and damaged a dozen others. russia could be shut you off ukraine s gas supply in a matter of days. we ll get you live to moscow for details on that. are you ready to feel the difference of truly hydrated skin? new neutrogena hydro boost water gel. discover our newest breakthrough and bask in the glow healthy skin hydration. see what everyone is raving about at neutrogena.com now an update on a story we brought you yesterday. official say they know what caused the explosion that rattled a u.s. neighborhood on tuesday. the video is incredible. they say this home in new jersey blew up just like that after a gas leak after gas leaked into the basement from a cracked main. the pilot light in the house then ignited. incredible to consider no one of killed. 15 people were injured. about a dozen other properties were damaged. the force incredible. the shaky cease-fire in eastern ukraine could be holding at least for now. keefe says no soldiers keefe says no soldiers were killed in the past 24 hours. favorite since the cease-fire began a week ago. ukraine is concerned about the rebels. they could be eyeing the vital city of mariupol. diana magnay reports. reporter: pro-russian rebels pull armor back from the front. it s not following protocol. they haven t said what s going where, but it s a start. on wednesday they said it will toughen sanctions on russia if pro-russian rebels target mariupol feared next in line if the cease-fire fails. and there s still fighting in a nearby village. this is pretty much the easternmost point of mariupol. the shelling 15 kill normt that direction. this area kilometers in that direction. this area has been shelled and many kill around the corner a few weeks ago. you see some of the strafing on this building. if you live in this block of flats, there isn t much to protect you beyond a concrete wall and some glass. we were here in september. then a family asked our advice where best to hide from incoming fire. we re surprised to find them still here. most other families have left. seven in the stairwell. when the shelling s than loud it s okay, she says. when it s louder i get scared for my grandma and grandpa because they won t leave. the grandmother shows me her icon of the virgin mary one in every room. i don t know what will happen next, the she says. but so far we ve been safe. that s how the war has worn people down in the east. living as best they can. fearing they have nowhere else to go. who would take us europe? this lady says. they don t need us there. what jobs would we get? we ll need to know a foreign language. we only know russian and ukrainian. mariupol would be hard to take. a city of half a million, crucial to ukraine s economy. kiev has massively upped its defensive positions around the city. and things are calming down. the number of cease-fire violations casualties down over the past days. this war can t last forever, this mans. they ll shoot out all the shells and then there will be peace. a prospect that can t come soon enough for ukraine s tormented east. mariupol ukraine. even amid the crisis in eastern ukraine, vladimir putin seems to have the approval of his constituents. fred pleitgen joins us live from moscow. let s look at the latest approval ratings for putin. reporter: absolutely. one of the phenomenons if you will of the crisis in ukraine is that it seems as though every time there s no sanctions and the west increases pressure on vladimir putin, his poll numbers in russia appear to rise. we ve a couple of minutes ago received the latest poll numbers for february and he s gone up in the approval ratings. he went from 85% in january to 8 % in february. that doesn t seem like much of an increase, however, if you look at the factors going on all the external factors, it is quite surprising if you will. the economy, of course here in show isn t doing very well. the rubble has been in decline for a long time. russia is suffering from oil prices suffering unemployment as well. never theless, it appears as though in these times most russians are rallying around the president. we went to red square yesterday. and we asked people what they feel about how their president is performing in office. let s listen in to what some had to say. translator: magnificent. putin is the best president in the world. i m happy to live in russia. i like what my president is doing. translator: as someone from the young generation i thank him for bringing our country for. he s a strong man. translator: i generally feel positive. the way he explains every step he takes makes me support him. i totally agree with his policies. reporter: we looked very long asked people if there was anything people felt he could do differently. there wasn t much criticism. some say the come could go better. some lamented the amount of educated russians who are leaving the country. by and large, they said they feel the problems that this country had are due to external factors rather than to anything their president may have done wrong. right. putin flying high in the polls, and he s also threatening to cut off natural gas to ukraine and even europe. we talked about this yesterday didn t we? talk to us about how that s likely to pan out and if europe will likely be affected. reporter: he said that it s a very real possibility that europe could be affected. this is something that we ve seen several times in the past even before the ukraine crisis kicks off disputes between ukraine and russia. a couple years fwak did affect gas supplies to back. it did affect gas supplies to europe. it need to be seen in the context of the conflict going on. vladimir putin went on national tv here yesterday and said that ukraine had made payments for gas over for the next couple of days, about three days. that s a really real possibility that gas supplies to ukraine could be shut off if ukraine doesn t make further payments. he also said frankly that europe could be affected by this as well. it s an ongoing dispute. one of the things at the center of this by the way, is that there s a dispute between the russians and ukrainians about supplying gas to the separatists held areas. russians have been doing. ukrainians refuse to pay for the gas. that s one of the things that s sets all of this in motion. all right. the war on ukraine on two fronts there coming from russia. fred pleitgen many thank,s, reporting live from moscow:a pop legend takes an unexpected fall. pulled downstairs. live on stage at an awards show. madonna s wardrobe malfunction. huh, fifteen minutes could save you fifteen percent or more on car insurance. everybody knows that. well, did you know pinocchio was a bad motivational speaker? 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is it more of a bromance? i adore him as a person and friend. and i want him to win everything tonight. he truly deserves it. reporter: ultimately honors were even. sam smith and ed sheeran taking two each of the design statutes home. the show itself was sprinkled with stardust. literally. in the case of taylor swift s performance. reporter: kanye west was a late addition and whipped fans into a friends when he dropped into a nearby chicken restaurant on his way to the show. his wife kim, pouted with the hosts. it was his performance that set the stage alightment surrounded by huge dancers some fiery flame-throwers and later heart-stopping performances some clearly more try youumphant than others. triumphant than others. cnn, london. danwe have been closely monitor the awards show and has more buzz. he joins us live from london. despite the awards most are talking about madonna s wardrobe malfunction. this may be a controversial question but did see ing thating that happen at this stage in her career i can feel rosemary s eyes on me does it mean she s too old to be a pop star jumping like that period? no. no. would we say that about a male performer doing the same sort of thing? she s definitely not too old. the fact that she got up and carried on performing to the point where people weren t sure if it was choreographed speaks to the talent madonna has. it was a show must go on thing. she leapt straight to her feet and carried on. she made it through when she was in excruciating agony. to credit her, a fantastic career. to your point, no one complains about the rolling stones. that is a val i point. they don t valid point. they don t say that about male performers in their 50s or 60s. sam smith and ed sheeran won two awards each. ed s best buddy, taylor swift, took her first brit we. all clearly deserved. were they the biggest wins or most memorable moments of the senate what else stood out? of the night or what else stood out? the u.s. contingent had all the headlines. let s be honest everyone is talking about madonna. everyone s forgotten what happened before that. before that happened the big hit of the night was kanye west who came on stage and performed a new single. he had a huge amounts of people had british artists with him. flame-throwers. the big story is the show goes out thrive british audiences at home. they actually had to mute so much of his performance because of the profanity and lyrics. apparently the viewers at home almost had nothing of him rapping. the performance was stunning and got people on their feet. sam smith s performance, they were trying to go for the big adele moment the stunning moment that silences the room. it felt overplayed like they were trying too hard. i think the big british group, a rock band teamwork a two-piece from brighton. they-minute drive formed two years ago and they hadn t formed two years ago and performed in the room. it was electric. all right. an interesting show. we ve got to give credit to madonna. she got up. she was singing live. and really overshadowed. that moment overshadowed all the other big performances and awards. extraordinary. soldiered on. thanks for chatting with us. this is cnn newsroom. i m rosemary church. i m errol barnett. early start is next for those of you in the states. for everyone else, stay tuned for max foster in london. terror arrests here at home. three brooklyn men accused of trying to join isis and this morning, the fbi is warning this could be just the tip of the iceberg. revealing there are people in various stages of radicalization in all 50 states. good morning. welcome to early start. i m john berman. i m christine romans. this is thursday february 26th. happening now, three brooklyn men in federal custody charged in connection with an alleged plot to join isis in syria. the men committing acts of terror on american soil including an attempt on
creating havoc at a soccer match in switzerland. tkafpg on to the field after the dark on to the field after the game started. the player dived to cash the critter. what the heck is that? i don t know. called a martin or something like that. a lot of you have written in to fox news to tell us how much you love the fact that we re playing the national anthem right before the beginning of our show every day. we want to read more of your comments. please keep the star-spangled keep the star-spangled banner as your opening. it is heart warming to hear first thing in the morning. jay tweeted i love fox and the greatest country on earth and the greatest news team ever. god bless the u.s.a. and the staff at fox. linda on facebook wrote it is refreshing to see this on television. i served 20 years in the u.s. air force. still get cheers and teary eyed when i hear the song. thank you so much. thank you to everyone who responded. keep your comments coming. and we ll keep putting that on the air every morning. fox & friends starts right now. have a great day. gretchen: good morning everybody. glad to be with you today. march 11, 2013. i m gretchen carlson. fire fighters rushing into a burning building never expected this. what went wrong? the video, the story moments away. steve: that s like in a movie. our new secretary of defense makes his first trip to afghanistan, and he s greeted by bombs. our partner there, president hamid karzai says it s our fault. what? should we still be giving this guy our men and women not to mention our money? details straight ahead. brian: you can t go to the white house, but can she? brian: we ll have the latest this morning on who s been invited while you re shut out and maybe who has not been invited. we ll explain in a little bit. fox & friends starts right now. steve: welcome to the program. brian kilmeade is on vacation and in his spot is the guy with no tie. gretchen: sometimes you wear it, sometimes you don t. steve: donald trump tie. donald trump will be with us one hour from now. gretchen: by the end of the show that tie could be on that guy. in the meantime, let s get to headlines. 18, ages 14 to 19 were trapped in a car, landed on a guardrail and ended up in a pond. two escaped. the family, as you can imagine, devastated. [crying] pick up the phone and tell your family you love them because you never know what will happen. tomorrow is not promised to anybody. police believe the car was taken without permission. the video you will see will knock you over so imagine if you were a fire fighter on the scene. watch this. a back draft causing a massive explosion. this is harrison, new jersey, sending dust and debris everywhere. five fire fighters are hurt after being tossed into the air. they were literally thrown out of the building. a smoke explosion threw them out of the building. it was very scary. flames coming from every single window. gretchen: the fire fighters will be okay. the fire started in a restaurant before it spread to a neighboring apartment building. bet you haven t heard this one before. playing video games saved the lives of two teens. a small plane slammed into a garage feet from where two teens were playing video games. one said the entire house shook. just knowing my son was so close to the accident, he was just above it. it really came home how, you know, fleeting life can be. i feel very bad for the family that had this happen. gretchen: the pilot of the plane killed in the crash. the passenger, the pilot s nephew, just upgraded to serious condition. witnesses saw the propeller stop before the crash. the white house may be close to tours but michelle obama s 50th birthday bash is wide open to hollywood. gretchen: according to reports beyonce and adele will head her party. they will allegedly sing at a private party paid for by the obamas, but the white house is shooting down the story saying it is false. steve: that story is out there everywhere. i m looking at huffington post. it says they re booked. someone had to come up with the idea. i m sure this didn t pop up out of thin air. steve: if it is true, when it came out, people are going let us get this straight. they closed the white house to the tours, but the first lady can have a gigantic, very expensive party with adele and other very big celebrities? it just seems wrong. this is the first weekend the white house is closed to the tours. i m still trying to figure it out, why they would use that. steve: did they ever call you? no. we started something here. i ll do it again here. open our white house. hash tag open our white house. it trended. it came on the show friday morning. people are outraged at the white house tours. a lot of kids on spring break go to washington, d.c. with either their classmates or their parents or their families. they want to see the white house. gretchen: just to remind people, eric tofrd pay for one week offered to pay for one week, specifically iowa kids. they went on facebook and said let us come to do our tour because they were coming to d.c. over spring break. i guess with regard to the party it would matter if the obamas were paying for it privately. if it were taxpayers dollars, that would be a huge problem. it takes a lot of money to secure the white house. the 30 service service agents, i guess they would still be on staff during the party; right? steve: donald trump has also made a big offer and he ll tell you about it. it involves $5 million out of his pocket. coming up. what is up with the president of the united states? remember we were talking to you about two weeks ago about how the night of the election, the president made it very clear his number-one priority was to make sure that nancy pelosi was returned to the speaker of the house. and they would do whatever it takes to make sure that the republicans lose control of the house. and then suddenly things started going wrong. the sequester not so bad. starting to take hits in the media. and his polls numbers fall. suddenly he s decided, wait a minute, i m going to start being nice to those republican leaders who i haven t talked to. i m going to invite a bunch of them over for supper and stuff like that. what s he up to? gretchen: i love having eric fill in but if brian were here he would be saying i told you so because he was the one optimistic person saying maybe this was a new president obama who would be reaching out to republicans and showing the olive branch so to speak. other people were more skeptical about whether or not this was all for play or whether or not there was going to be something done. are we sure? president obama decides to invite 12 republican senators to the white house. by the way, you know what was going on simultaneous to that dinner? rand paul was filibustering on the senate floor. i got to tell you, if that were going on and i m a republican senator going, hold on, president obama, thank you very much. i have some important business to take care of, and show some support for rand paul. gretchen: two of the people at that dinner came out and said negative things about what rand paul was doing. for me, still krafpg my head why senators mccain and graham are steve: the big question is what is the president up to? republicans on the chat show yesterday don t know. if you say these draconian cuts which, by the way, were increasing spending by an average rate of 3.4% a year, that does no good to get to common ground. that makes it impossible for parties to come together and bridge the gaps. if that kind of rhetoric resumes, we ll know this was for show and it wasn t sin saoefrplt i hope this is and it wasn t sincere. i hope this is sincere. i think he s genuinely reaching out but you ve got a lot of scabs and sores on people that will take awhile for that to heal. the senate is not near as dysfunctional it s made out to be because there s great relationships in the senate. our problem in the senate is the leadership of the senate, not the members of the senate. great. to build trust is a good thing. to be honest with you, bob, what the president needs to do is to reach out not just to republicans but to democrats and makes sure he gives them the political cover to do frankly what most of them know needs to be done. gretchen: it will be interesting to see whether this trend continues. will the president continue to reach out? will there be anything that will happen? that will be the bigger thing? it s nice to reach out and have a dinner but how about putting something on the table? how about putting one of the entitlement programs he s refused to touch through this whole process, put it on the table. you ve got $600 billion or $700 billion in tax increases each year. i guess he wants more. steve: i think he s trying to be bipartisan now because next year when things go belly up he can say blame the republicans. gretchen: another huge story because all eyes on vatican city as the cardinals gather for their last day before the conclave to elect a new pope. that will start tomorrow. that final preconclave meeting is underway in vatican city. all 115 cardinals gathered. they are about an hour and a half in. they are expected to meet for about three hours this morning to talk about the needs of the church and what the characteristics of the new pope will need to take on the challenges the church faces in this modern time. there s other indications a decision is near. they are preparing the balcony for the presentation of the new pope, whoever these cardinals cast two-thirds of their votes. there are 77 votes they will need to elect the new pontiff. all across rome yesterday we were talking to people from all around the world who have come here to watch this play out, they would like to see it happen sooner than later. i really hope that we will have a pope as quickly as possible. we hope it s going to take a really short time, that they find a compromise. while it s impossible to predict, there are front-runners and odds makers that love this. a two to one favorite is angelo skola. and peter turkson, a four to one odds. the americans are in the running. there is a phrase called pope-able. i don t know how to say it in latin but it translates to pope-able. interesting and intriguing times to see how this plays out. it s not a high-tech deal. it is basically a rectangular sheet of paper where it says across the top i elect as the most high pontiff. the cardinal will write his name, fold it and that will decide the vote. tomorrow should see first puff of smoke indicating how that vote turns out sometime tomorrow evening. guys, back to you. gretchen: very interesting process. thanks for breaking that down. steve: what is hamid karzai, the president of afghanistan, up to? did you hear this? there were some explosions that killed 19 people on saturday. and then yesterday, what does he do? he says, look, the united states is working with the taliban, and the taliban is working with the united states. why? so that we realize now my people do we re going to need the americans here in the country after the get out of town date which is 2014. he also says the united states wants very valuable afghanistan resources. gretchen: you got to wonder how long this guy can be in a powerful situation when he s lobbing those threats against the united states and accusations. what is it like to deal with this guy? that must be a thrill if you re one of the people in the state department and otherwise, including the president who has to deal with this uncertainty as we move forward. the big question is why is he so ungrateful? he s always been this way. but my question is the timing of this. chuck hagel went over there, had a big meeting. was supposed to have a meeting with president karzai. that ended up being canceled. they said because of the bomb that happened a couple days ago. it may be because of the outright disrespect he showed for the american people on the day before that press conference was supposed to be delivered. steve: there could be a little of both. it looks like the bad mouthing of america remember he s not going to be in the job forever. and when he leaves, right now he s trying to appeal to the antiwesterner, anti-american factions in his country and in that region. once upon a time he also said he would like to join the taliban. the president of afghanistan. gretchen: okay. coming up on our show, tuition assistance has been suspended for our nation s military because of the sequester. but guess who s still going to get help? illegal immigrants when it comes to swigs. who s in? who s out? at least two of the ladies are leaving. now they re talking. the view tells all. coming up. look what mommy is having. mommy s having a french fry. yes she is, yes she is. 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[ male announcer ] centrum. always your most complete. gretchen: they risk their lives for our country but now our nation s military members are being hit hard by the sequester. the marines and the army suspended now their tuition assistance programs for active-duty members of the military. yet in several states illegal immigrants can still get tuition assistance. joining me now, united states marine corps veteran and the new york state assemblyman lawler. good to see you. tell me about this program. i understand 200,000 active-due members of the army were taking advantage of this money. they re in the middle of a course of study, and they found out late last week the funding they have been getting maybe one of the reasons they enlisted is not going to be there once this semester is over. they are kind of in the lurch. gretchen: it is the army and marines who are going to be cut from this. the air force and navy have not yet done this. they may follow suit. gretchen: how much money was it to an active duty of the military? $250 per credit hour, gretchen: you bring up an important point that maybe this was the i am impetus for people wanting to get into the military knowing part of their education would be paid for while they were there. they go to college while on active duty and then become an officer. some of the great officers are those who have gone up the ranks much we re going to lose that in large part by cutting this program. it s not just a benefit cut. it s a quality of military cut. gretchen: you are proposing here at least in new york state that the state pick up to fund the rest of this? that is correct. what we re saying is if we have new york military personnel enrolled in state universities or city universities, we re going to say we re going to let you stay, continue out your degree because, one, you ve been serving our country. and, two, we don t want to pull the rug out from under you. the cost will be minimal. there s a bill making its way through the assembly to allot $25 million to give financial aid to illegal immigrants in new york state. for a fraction of that cost we can let u.s. military in our state finish their education. gretchen: what kind of dichotomy do we have here where we re going to cut off funding for members of our military but illegal immigrants will get that money to go to school? it s a real clear indication of bad priorities at the state and federal level. gretchen: what has been the response so far to your bill? unbelievably positive especially when you juxtapose it to $25 million in aid. in new york, we already give in-state tuition to illegal immigrants. there s funding going there without this extra $25 million. we can find a few dollars. the cost is minimal. the teachers are already being paid. we want to keep the spot for this military person open so he can finish his education. gretchen: you re a veteran so you would know firsthand and now you re a new york state assembly man. thanks for your service in both ways. coming up on frock coming up on fox & friends, you know about the benefits of aspirin, but ladies this is for you. our next guest wants to make it mandatory for all citizens to have a gun. that s an interesting proposition. come on, nowadays lots of people go by themselves. no they don t. hey son. have fun tonight. back against the wall ain t nothin to me ain t nothin to me [ crowd murmurs ] hey! [ howls ] girl vo: i m pretty conservative. very logical thinker. (laughs) i m telling you right now, the girl back at home would absolutely not have taken a zip line in the jungle. (screams) i m really glad that girl stayed at home. vo: expedia helps 30 million travelers a month find what they re looking for. one traveler at a time. expedia. find yours. prego?! but i ve been buying ragu for years. [ thinking ] i wonderhat other questionable choices i ve made? [ club scene music ] [ sigh of relief ] [ male announcer ] choose taste. choose prego. [ sigh of relief ] backflips and cartwheels.mile? love, warmth. [ sigh of relief ] here, try this. backflips and camm, ok!s.mile? ching! i like the fact that there s lots of different tastes going on. mmmm! breakfast i m very impressed. this is a great cereal! honey bunches of oats. i hear you crunching. gretchen: 23 minutes past the top of the hour. quick headlines for you. a friend of oscar pistorius says the blade runner is on the verge of suicide. he is charged with murdering his girlfriend. and this morning motley singer l recovering in the hospital after undergoing surgery for kidney stones. the group was in the middle of a concert in australia when he walked off the stage forcing them to cut the show short. while many lawmakers trying to limit your second amendment rights, a georgia town is working hard to expand them. steve: they are introducing a law that would make gun ownership mandatory for every family in that town. edith joins us this morning. tell us how the family protection act would work. it s a, an ordinance that the city of tenysaw passed in 1982. this is a copy of that. and it gives the rights to all homeowners to own a firearm. but eric:i wanted to point out it recommends the head of each household own a firearm, one, because there is only one police officer in the town and it is quite a large area he has to cover. also, if he object as the head of the household, you don t have to own? absolutely. if you don t want to have a firearm, you do not have to have one. it s a deterrent kind of law. because we re basically, when our police officer, which he does a marvelous job, he works 40 hours. and we are divided between pickens and cherokee, and we are at the mercy at that time, you know, who gets there first. steve: and if that guy he only works 8 hours a day and there s 24 hours in a day, there are a lot of hours not covered. you would make gun ownership mandatory. if i was a criminal looking in, edith, that would be a town i would bypass, if i knew that everybody had a gun. absolutely. it s like and i m quoting this from another council member. he always says it s like having a security sign in front of your house that the majority of the people don t even have it, but you don t know. so this would be in the same, you know, the same thing. you don t know if that person has a firearm or not. we only have a couple of seconds here, but tell us how is the police officer? what does he say? does he welcome this? absolutely. he s all for this. and he s even, you know, wanting to give classes to people who want them, how to use a firearm. and he s doing, at a minimal cost. steve: by the way, we should point out with this law, if you re not mentally or physically capable of using a gun, a felon or you object on religious grounds, you don t have to have one. and the people of your town say what regarding this? are they all for it? i mean, we ve had positive. i would say 90% of the people are for it. steve: edeath portello in nelson, georgia, thank you for telling us about the family protection act. thank you, ma am. next on the rundown, today is the day elizabeth hassleback getting booted from the view. but the reason? why? we report. you decide. steve: it is the richest city in the world. why singapore can thank america s millionaires and billionaires and possibly the white house too? stuart varney is coming in. stuart varney is coming in. he will explain it all. 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[ applause ] [ male announcer ] life brings obstacles. usaa brings retirement advice. call or visit us online. we re ready to help. learn more with our free usaa retirement guide. call 877-242-usaa. gretchen: welcome back. you saw him right here on fox & friends first. 11-year-old julian newman went one on one with anna kooiman. now he s moving on to bigger targets, sharing the court with the harlem globetrotters in florida. he plays on the varsity basketball at his high school. congratulations. steve: he s got a bright future. meanwhile, other headlines for you. a fox news alert from our nation s capital. a horrific drive-by shooting sending at least seven people to the hospital with gunshot wound. police believe the shooter still on the loose. he reportedly fired several rounds into a crowd of people shortly after 2:00 a.m. as you can see in washington, d.c. the condition of those taken to the hospital are not known at this time. the cause of the shooting is under investigation. eric: the view barbara walters set to talk about her morning talk show this morning. major shakeups. elizabeth hassleback is leaving the show. last week it was released joy behar s would be leaving the show at the end of this year. gretchen: taking aspirin regularly may help protect women from deadly skin cancer. a study found these women were 20% less likely to develop melanoma. researchers say aspirin decreases inflammation which may develop cancer. steve: this arizona couple hit it big with the lottery twice. diane and kerry carmichael won in 1995. they got $2.5 million. last week they won another $1 million from the power ball. the carmichaels say they always knew they would win again. it was exciting because it was my ticket his time. the first time it was his ticket. so i got the thrill of saying i won, you know. steve: lightning does strike twice. this win comes just in time. the payments from their first win will stop next year. gretchen: they re pretty lucky people, rights eric? eric: you know who else is lucky? tiger woods is. he went way off round in the cadillac championship, hitting the ball off into the trees but nothing is stopping tiger this time. he cruised to an easy victory. he finished 100 par, 71 for his 76th p.g.a. trophy, 17th world golf championship title. tiger has won five times in the last year and that s more than anyone else. talk about the best birthday president? mat kenson wins at the motor speedway on his 25th birthday. he is looking ahead to next week. that s a great thing about the sport. it never stops. you only get to enjoy it for a couple of days. to answer your question, it feels really great to get the win. hopefully that will keep momentum going for our team. eric: the next race is at the bristol motor speedway on sunday. just like fine wine, boxer bernard hopkins gets better with age. the 48-year-old fighter becoming the oldest boxing champ in history. hopkins says victory is sweeter than honey. steve? gretch? steve: who you calling honey? maybe gretch and maria. maria is in the weather center taking a look at a big storm all the way from the great lakes right down to the gulf coast. good morning. good morning everyone. we re talking about a brand-new storm system bringing in areas of heavy rain for the great lakes into parts of louisiana, mississippi, alabama. rough commute early this morning out there because that rain is really coming down. as far as the east coast, new york city, we had a beautiful weekend. and more of that is in store for us today. we re talking very mild temperatures. right now we re in the 40 s in new york city. 43 right now in chicago. it is actually cooler in dallas, 37 degrees right now, than it is in new york city. kind of odd. high temperatures today in new york, 60 degrees. 59 for your high temperature in dallas. over in minneapolis, 32 degrees for your high temperature. we have that storm producing areas of rain right now in louisiana, mississippi, alabama. heavy rain in the city of nashville across tennessee. eventually that storm does head east. we ll be bringing in areas of rain for the east coast as we head into tomorrow. watch out for delays if you re doing traveling, anywhere you have areas of rain, on the back end of it, snow across sections of iowa, minnesota and also wisconsin. gretchen: thanks very much for the update. steve: a $166 billion the amount of money 60 u.s. companies parked overseas last year. not in the united states. overseas according to the wall street journal and their analysis. why are big companies focusing on their foreign subsidiaries? stuart varney says the answer is washington, d.c. that is the easy answer and that is correct. can we get used to the idea that taxes, tax rates, taxation drive economic activity? and that high tax rates in the united states drive the economic activity of american companies and american individuals? you just mentioned that. the wall street journal has got a study of 60 big american companies. they have parked $166 billion over there, outside the united states. why are they doing that? if they brought it back to america, they would have to pay a 35% tax rate on that money coming back here. that is the highest tax rate in the industrialized democratic world. and they re not going to pay it. so they are parking it over there quite deliberately to avoid the high tax rates over here. gretchen: let s do math and show folks how much money we re talking about. this is g.e., they have 2012 ree $144 billion. outside the united states $102 billion. in 2012 it goes to $108 billion. microsoft at $60 billion. these are vast amounts of money parked overseas. that amount of money is actually going up. you would think that the logical answer is, all right, lower the tax rate that these people have to pay and you bring that money back to america. that s not what president obama wants to do. he wants to extend the reach of american taxing authorities and make sure that every dollar of profit is taxed wherever it s made, wherever it s parked. eric: that is unlikely to happen. i floated this idea in the past. give it a complete tax holiday. you want to bring it back, bring all of it back, somewhere between $1 trillion and $2 trillion is parked overseas. you want to talk about job creation right here? give a onetime tax holiday, make sure a certain percent of it goes towards hiring american workers. that would spark the economy immediately. that was done in the year 2004. the tax rate was reduced. $310 billion came back to the united states. gretchen: what can the united states learn from singapore? keep your tax rates low. you do not encourage economic activity. you don t encourage growth if you have high tax rates. that s the lesson to be learned all over the world and all over the united states of america. singapore, 17% of the people, of the households there are worth $1 million. that s wealth accumulation. they ve got a very low tax rate and rich people are moving there specifically because of taxes. president obama can we make this clear? president obama has to learn the lesson that taxes drive economic activity. and you get more economic activity if you lower tax rates. steve: i ve got a feeling he s having lunch and dinner with all these republicans. i bet one of them is going to remind him. we re going to be watching staoufrbtd watching stuart varney over the fox business network at 9:20 east earn time. gretchen: the government wants to make you feel more pain from the sequester. a federal employee is a federal employee is telling all. 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[ doctor ] enbrel, the number one biologic medicine prescribed by rheumatologists. there s no subtext. just tacos. yeah, it s our job to make you want it. but honestly. it s not that hard. old el paso. when you gotta have mexican. mommy s having a french fry. yes she is, yes she is. [ bop ] [ male announcer ] could ve had a v8. 100% vegetable juice, with three of your daily vegetable servings in every little bottle. gretchen: 43 minutes past the top of the hour. quick headlines. it turns out heart disease is an old problem. a mummy old problem. researchers find mummies more than 4,000 years old had clogged arteries. at the age of 20 she is returning to her roots. former disney child star shrel in gomez will reprise the role in the wizards. steve: 115 cardinals from around the world will hold their final meeting today ahead of conclave tomorrow where they will start to vote on the next pope. they re hoping to rally behind a candidate who will reignite the church as it faces one of the most difficult periods in catholicism. is there a clear front-runner to become the next pope? peter isner is the author of the soon to be released book the pope s last crusade. good morning to you. today is the day of the last meeting and then tomorrow they start voting. behind the scenes there is a lot of politicking going on? absolutely. there is different factions. mostly a majority european faction larger than ever. at least more than half of them are going to be european or european based. and the question is: how do they join together in a coalition to get more than the two-thirds plus one that they need? i really think that it s going to be tough and it could take awhile. steve: you say that even though the united states, a lot of people here in the united states think wouldn t it be tkpwhaeut to have an american wouldn t it be great to have an american put a new face on the pap papacy but you say the odds of that are slim to none? i think they are slim. the 11 cardinals in the united states have a role in choosing what kind of pope it s going to be. but i think we re looking at a situation in which for 35 years there s been no italian for the first time in centuries. if i had to bet on anything, it would be an italian or latin american. steve: a moment ago you said this could be a tougher vote. it s going to require as we take a look at the sweet sistine vatican edition on-line there is a blog run by a religious news service where they take a look of course it s just bloggers and people voting on their own. but you said it could be tougher this time than we ve seen in a very long time. why? first of all, you ve got a crisis in which some people are saying we ve got to deal head on with the crisis. the crisis involves management. the crisis involves obviously all the scandals going around the church. then there s another group, traditional group that says we ve got to circle the wagons, get in, be careful and not do anything too bold. i think that really means you re going to have trouble in coming up with a consensus candidate. steve: talking about what s going on behind the scenes is reflected in your new book that is coming out where you talk about how before world war ii, pope pyius 11 wrote a paper that condemned tphaz stkeuism and naziism and then the next one, nothing. all politics. it talks about pope pyius who saw hitler moving on the scene and said it is one thing to deal with the church and another thing to deal with the world and humanity. he brought on a jesuit to try to fight hitler and fight antisemitism but he died before he got to do what he wanted to do. this book is a what if? what if the church had been able to follow through and fight hitler? steve: great theory. the pope s last crusade is the name of the book coming out. thank you, sir. thanks a lot. steve: a dozen minutes before the top of the hour on this monday. next up on the rundown: the government wants to make you feel more pain from the sequester? the proof from a federal employee telling all coming up next. what s the secret to a long-lasting marriage? a woman who s been hitched for 73 years spilling for 73 years spilling secrets you ve never heard. 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[ male announcer ] sounds good. it s amazing what soup can do. eric: a government employee is speaking out claiming the obama administration is going out of its way to make you, the public, feel the pain of sequester. the u.s. park ranger telling fox news national park officials forced cuts on programs that would have an effect on visitors like tours. are they trying and they are trying, are they trying to shut down high-profile park events just to scare people? the president of recreational resource management, a private company that manages parks, thanks for joining us. last week we had the department of agriculture, a leaked memo saying let s not down play the sequester. let s upplay the sequester. this is happening also in the national parks service as well? it looks like it is. i don t have specific information about the source, but it shouldn t surprise us a lot. if you look at polling for most federal agencies, it s not very good. the one agency that gets great polling from the public is the national parks. so there s a long history of using the national parks politically during budget fights. there s actually a term, when the government goes to sort of close the most important rather than the least important function as a way to try to get budget back, there is a term for it. it is called the closing the washington monument ploy from a past budget battle. the park service has been the center of this kind of controversy before. eric: the park service falls under the department of interior, has about a $3 billion budget. interior has about a $20 billion budget. if i m reading the numbers right, the park service, that specific agency is going to be hit harder with sequester than any of the other agencies within the department of interior? i m not sure why that is. the sequester was set up in the first place to be sort of overly difficult. it was an incentive to get some other kind of budget deal done. it was supposed to be pro rata. why the park service would be getting hit for mohr rather than taking for more rather than taking out some layer in the interior is a surprise. look at the white house. of all the things they could have cut costs in their own cost cutting, they closed tours so they could dominate news sidle with disappointed sixth grader on tv. eric: i think that backfired on them. are they doing the same thing on a national level when they make the parks, the people who go to these park tours feel that pain too? yeah, i fear that. in the park service, there s a lot of things the park service could be doing over time to reduce costs in intelligent ways that don t hit visitor service. eric: where s another area? private companies clean bathrooms, do the landscaping, do all the kinds of things where we can do it at about half the cost the government does. or at the state level, for example, in california, private companies reopened a bunch of parks in california because their costs are so much lower than the governments. that is an intelligent way to cut costs. you don t cut visitor services. you do things less expensively. eric: thank you very clayton: s he joins us at the top of the hour. the hour. stick around. if youthen this willbrids arbe a nice surprise. meet the 5-passenger ford c-max hybrid. c-max come. c-max go. c-max give a ride to everyone it knows. c max has more passenger volume than competitor prius v and we haven t even mentioned. c-max also gets better mpg. say hi to the super fuel efficient ford c-max hybrid. to find you a great deal, even if it s not with us. 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[ club scene music ] [ sigh of relief ] [ male announcer ] choose taste. choose prego. gretchen: good morning, everybody. today is monday, march 11, 2013. i hope you re gonna have a great day. i m gretchen carlson. a day after the afghan president blamed the u.s. for conspiring with the taliban, two u.s. troops are dead from an insider attack. what is the connection? the breaking details straight ahead. eric: the white house is closed, but it doesn t have to be. donald trump and i have an offer the president shouldn t refuse. trump joins us live in a couple of minutes. steve: two of my favorite billionaires. plus, turns out it literally pays to look like bradley cooper? how much more good looking guys make over their not so good looking colleagues. we ll give you the numbers. eric: we ll explain later. steve: fox & friends hour two for monday starts now. eric: i gave you a look, steve, cause you know what today is? it s 31113. gretchen: wow. steve: which means? eric: i don t know. [ laughter ] steve: there is a lot of 1 s and 3 s. gretchen: it s book ended with 3 s and three 1 s in the middle. eric: this is good. [ laughter ] eric: i got me a calendar! gretchen: i thought you were going to say something about st. patrick s day coming up or something like that. we got to get to some headlines, i think. there they are. a fox news alert. two u.s. troops are dead from an insider attack when a gun was turned on them a day after president karzai accused americans of working with the taliban. he says this is to show how the security will deteriorate after troops leave next week. hagel and karzai were scheduled to hold a joint press conference, canceled for security concerns. makele quickly responded. i told the president it was not true, that the united states was unilaterally working with the taliban in trying to negotiate anything. the fact is any prospect for peace or political settlements, that has to be led by the afghans. gretchen: secretary hagel left afghanistan a few hours ago. another fox news alert now. this time from our nation s capitol. a horrific drive-by shooting sending at least seven people to the hospital with gunshot wounds. police say the gunman believed to be in a blue bmw still on the loose this morning. he reportedly fired several rounds into a crowd of people outside an apartment building shortly after 2 a.m right now cops say all the victims are conscious, breathing and in stable condition. the cause of the shooting under investigation. it s believed speed was the key factor in an accident that left six teen-agers dead. this happened in warren, ohio. eight teens ages 14 to 19 were packed into the car when it lost control, hit a guardrail and lappedded upside down in a pond. two boys managed to escape and ran to a nearby home to call 911. family members are devastated. even if you have gone through something, pick up the phone and call your family and tell them you love them cause you never know what can happen. tomorrow is not promised to anybody. gretchen: police believe the car was taken without permission. it literally pays to look like bradley cooper. according to australian researchers, handsome men make 22% more than other or than their average counterpart. below average look men are paid 26% less. study showed a blatant double standard. good looking helps more men than women! those are your headlines. eric: that s proof that that study has no merit. that last line there. gretchen: it is a little subjective because isn t gout butte in the eye of the beholder? steve: there you go. whoever is doing the hiring. donald trump joins us on this monday morning as he does every monday morning. he s live on the phone from palm beach after a very successful congratulations on the wgc cadillac championship yesterday. it was. tiger was amazing. he s a great guy, by the way. a really great guy. he played tremendous golf. it was very good for my asset. i have a great asset that s now going to be essentially blown up. we re building a brand-new incredible course there. it s been really something. the crowds were tremendous. there were record setting. we had a great day. steve: great weather. gretchen: let s bring it back to the white house because much was made about the fact that white house tours were being shut down affecting a lot of kids, quite frankly, because of sequester. but then there was news that came out over the weekend that beyonce and adele will still be going to the white house to celebrate michelle obama s 50th birthday. the white house is saying that that is not true. do you see any sort of a conflict of interest here? well, there is a conflict of interest. the big conflict of interest is what s going on with washington. i m not only talking about the president. everybody. i ve never seen anything like it. we actually is a dysfunctional government. they meet and everybody makes a big deal out of the meeting. nothing ever comes out of the meetings, by the way. they go play golf together issues which i actually thought was a great idea when they played golf, when boehner played with the president. but nothing came out of that. nothing comes out of anything. in the meantime, our nation is going to hell. eric: donald, can we talk about this a little bit? senator coburn, who was in the din better president obama last week, said there is at least $200 billion per year of wasteful spending, of duplication, of regulation, et cetera, that could be saved. why in the world would the white house choose to close the white house tours, which we all know wouldn t cost them a heck of a lot of money to open it. i offered to pay for a week. you offered to pony up some money for it. why would they do that? well, i guess it s political. they want to hurt the people. they want to do something to make their point. they want to do something to, in their opinion, get things going, even if it s going the wrong way. a lot of things are being talked about that are bad. if you look at what s going on, i guess they re trying to make a political point. it s just really ridiculous. i don t think it s a big deal, frankly. but it does make us look awfully bad and awfully pathetic. steve: by the fact that the white house turned off the tours, just makes them look petty and mean. absolutely right. steve: newt gingrich had this tweet. i don t know if you saw this, but he wrote, donald trump, that s you should offer to pay for the white house tours. he can afford it and it would show who cares more for american students. what do you think about that suggestion? i think it s so nice of newt to suggest that, i don t know anything about it. i m hearing about it for the first time. i like newt a lot. they re members of my club in washington and i love all of my members. newt happens to be a great one. no, i didn t hear this, but it sounds reasonable to me. why not? gretchen: let us know if you are going to follow eric bolling in wanting to pay for a week. eric: can i throw the numbers out? doesn t sound bad. what are the numbers? eric: abc news said it was around 18,000. we looked in, we dug deep. there are about 30 secret service personnel that guard the white house during the tours. they get paid 50 bucks an hour, they work eight-hour shifts. it comes to about 74 grand per week, donald. i threw in a week. hannity jumped in, threw in a week. we ve had other people say, i don t have 74 grand, but i got 25 bucks. can you aggregate some? here is the point, though. americans want the white house open. don t we want the white house open for tours for the kids so they can come see it? learn history? steve: symbolic. it s always been that symbol. it s always been open and it s certainly not a lot of money. the big thing is that the country is going to lose essentially lose, a trillion dollars this year. we have 17 trillion in debt. closing the white house tours does not exactly the biggest thing on the agenda. gretchen: i think that s the bigger story. until they discuss the biggest issue, which are the entitlements and the real spending here, i say nobody should donate anybody to keep it open because the onus should fall on what they re doing with regard to closing it for petty money compared to what they re spending in general of the let s move to ambassador susan rice. she was controversial with the benghazi situation and those talking points on the sunday talk shows. now it appears she ll be the kopp top contender to be the next security advisor. any thoughts on that? my thought is he really likes her. he really does like her. he wants her someplace. i guess that s his prerogative, whether we like it or not, he won the election and that s his prerogative. but it doesn t mean you have to be happy about it. and i see the republicans and they do whatever them, but they don t do much. they don t seem i m a republican, but the republicans don t seem to be very good negotiators. they don t get their way. they have the filibuster. i disagree with my very good friend eric. i happen to feel that the filibuster did nothing. they got nothing out of it that was nothing gained. it was a protest and we need more than protests. we need action. eric: it did highlight the fact that that s what the senate floor is there for. you re a senator, go ahead and do it. but it didn t stop the brennan catastrophe, which is what it should have really the purpose should have been for that. steve: right. and it was a foregone conclusion. everybody knew that he was going to get confirmed, which he did. but what rand paul was asking for, he was asking for clarification because the administration has secret policies regarding drones. he simply is saying, can an american citizen be killed on american soil with a weaponnized drone within, what, 12 hours after he was done, eric holder pumped out a memo, no. so in that respect, he did get but everybody knew that memo was essentially what was gog happen anyway. and many of the republicans, i m friends with many republicans and they were not happy with it at all. you know that, eric. you know there is two sides to that picture. eric: absolutely. absolutely. many, many republicans. eric: honestly, donald, one of the things that people sitting in my seat say, hey, can t we the republicans get themselves together where they coalesce behind one person or one group or one ideology? the splitting is not helpful to anyone on the right. the amazing thing to me is the republican have so much power and they just don t seem to be able to use it. they don t use it properly. and they re not don t deal from strength. i ve never seen anything like. they re at a great negotiating position and they re just not using it. i ve never seen anything like it. gretchen: it s either negotiating or messaging, one of the two or both and other things. speaking of singling people out, cpac is coming up, which is the conservative action council, i believe, and you re going to be speaking there, although some of the republicans were not invited to speak there. what message do you hope to bring to the conservatives there? i m somebody that really is very good on something called jobs and getting the economy working. let s get going. that s what we ll talk about. i look at china and brazil. i look at these countries doing so well and we re doing so badly. it was a great honor to be asked. i ll speak on friday, i believe. and i really look forward to it. they re great people. the cpac people are great people. they believe in something. you know what it is? working. steve: yeah. good point. nothing wrong with that. we re not allowed to say that anymore. they believe in working and making this country great. eric: speak of working and not working, you fired i have to be honest, i went to bed before i found out who you fired. i m starting to watch the apprentice last night, so i didn t know. reading the prompter, let s take a look. watch. i know you re not a quitter. you ve never quit in your life. no, sir. dee, i don t want to fire you. i know. i don t want to fire you. you re solid guy. you re a great guy. much different than i would have thought. dee, you re fired. eric: now, you shocked me cause last week brett michael, you got rid of him. two solid players. you re right. dee is a great guy and so is brett. dee is a great die. he knew himself. he did something that was no defense. this will not be controversial. but dee is a great guy. steve: before that, what we didn t show is you fired penn jillette for a second and then said, just kidding. i do that every once in a while to shake things up. yesterday they had a rerun from 7 to 9 and then they had from 9 to 11 the apprentice. so that s four hours e. this i had the golf tournament for five hours before that. gretchen: wow. that s got to be some kind of record. i think i went nine hours. eric: can you fire omarosa already? steve: she was crying last night. does that show great heart? great sensitivity. i can see. gretchen: i love how you talk everyone up and say you re fired. you ve got a good craft at that. donald, have a fantastic week. good luck at your speech and we ll talk to you next week. thank you very much. steve: it is 12 minutes after 7:00 o clock eastern seaboard. afghanistan president hamid karzai accusing the united states of working with, get this, the taliban. yeah, right. should we really be giving this guy our soldiers and our money along with the blood? a veteran of the war in afghanistan joins us live next. gretchen: and what s the secret to a long lasting marriage? a woman that s been hitched for 73 years spilling secrets you ve never heard. stick around for that what s droid-smart ? with google now, it automatically knows when you need to leave for the airport, how much traffic there is, and has your boarding pass ready. the droid razr maxx hd by motorola. droid-smart. droid-powerful. [ male announcer ] pain not sitting too well? burning to feel better? itching for relief? preparation h offers the most maximum strength solutions for all hemorrhoid symptoms. from the brand doctors recommend most. preparation h. don t stand for hemorrhoids. bikes and balloons, and noodles on spoons. a kite, a breeze, a dunk of grilled cheese. catches and throws, and spaghettio s. a wand, some wings, soup with good things. sidewalks and doodles and wholesome noodles. puddles and pails and yes, puppy dog tails. for a lunch like this, there s a hug and a kiss. because that s what happy kids are made of. campbell s. it s amazing what soup can do. the longest 4g lte battery in a razr thin profile. with 32 hours of battery life that turns an all-nighter, into a two-nighter. the droid razr maxx hd by motorola. droid-endurance. droid-powerful. steve: we ve got fox news alert to share with you right now. two u.s. troops are dead, another insider attack in afghanistan. the killer? an afghan police officer who opened fire inside a police station. the attack, just one day after our new secretary of defense, chuck hagel, took his first tour of afghanistan where he was greeted by bombs that killed 19. with president hamid karzai growing more critical of the americans day by day, why do we keep giving him our soldiers, our money, our blood? let s talk to a veteran of the wars in iraq and afghanistan and ceo of concerned veterans for america, pete. good morning to you. good morning. steve: so president karzai says that the united states, the taliban are working together because that way with all these explosions and the attacks, it will just show that the united states needs to stick around in afghanistan past 2014. that is one of the kookiest things i ever heard. it really is. there is a lot of conspiracyial thinking. this isn t the first time he made comments like this. he s threatened to join the taliban before. he s called us occupiers before. this is all part of a sick and twisted negotiating strategy. one of the logical, points of logic he used is that we re not calling the taliban the enemy anymore, meaning the u.s. that s at the request of him and many in the afghan government if we call the taliban the enemy as opposed to al-qaeda, then how do we negotiate a settlement at the educational background of enf the day. he s picking things to shape a future that advances karzai. not necessarily conditions on the ground. steve: it has been all about him in the past. i mean, up until 2009, he was doing a weekly video conference with george w. bush and then when barak obama took over, you know, karzai at one point suggested that somebody in the administration was trying to oust him. so there has been bad blood there. it s a very good point with diminished influence and with diminished focus, no wonder he starts to edge enemies or others when america is not there to choose a different option. steve: we ve been talking about the sequester every hour. here is something that i ve gotten a number of e-mail from people who are very upset that on friday, the army announced they re suspending the tuition assistance program for soldiers newly enrolled in classes because of the sequestration. this is another one of those things where there is a lot of different places you could make cuts, but they do this because it inflicts a little pain and it s going to wind up with a headline. that s right. talk about whatever is most forward facing. i got an e-mail from someone, hey, i logged in and i m not going to get my tuition assistance benefits. they know who will be affected by it. it s all part of why these cuts are so stupid. cause they re indiscriminate and then when they do have a choice of what to cut, they re going to cut the things that hurt the little guy the most, creating the most public outcry that nothing can be cut. there is stuff in defense that can be reformed, like no doubt about it. tom coburn and others, his department of everything talked about where we can do it. but let s start with tuition benefits? i m not sure how that works. steve: how many times during the campaign did we see the president of the united states on college campuses talking about how i m fighting for you. the troops behind him. steve: now you re talk being veterans who want to go to college and story, we re out of money. sorry, can t handle it. it s sick and twisted logic all the way around. steve: all right. pete, ceo of concerned veterans for america joining us from beautiful san diego today. pete, thank you. thank you. steve: all right. it s now 20 minutes after the top of the hour on this monday. gun makers firing back, telling the government if citizens don t have gun rights, we won t sell them to you, the government, either. and still feeling sleepy from daylight savings? well, the four things you should do today to make sure you get all the z s you need hey! did you know that honey nut cheerios has oats that can help lower cholesterol? and it tastes good? sure does! wow. 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[ bop ] [ male announcer ] could ve had a v8. 100% vegetable juice, with three of your daily vegetable servings in every little bottle. eric: you got to love the control room headlines. a friend of oscar pistorius says he s on the verge of suicide. he s charged with murdering his girlfriend, reeva steenkamp. pistorius is reportedly selling his racehorse to pay for legal fees. and no respect for the second amendment at all. no gun sales, the number of gun companies suspending sales to state, county and city governments restricting the rights to bear arms tripled in the last two weeks. it s called the firearms equality movement. gretch? gretchen: we all know that the clocks run forward over the weekend. are you still struggling after losing that hour of sleep? joining me with restful tips is dr. michael bruce, sleep expert and clinical psychologist. good morning. good morning. gretchen: i m just going to say that you look very bright eyed and wide awake. thank you, thank you. gretchen: because you re a sleep expert? it is. gretchen: okay. you have some tips for the rest of us who may feel a little drag today. most people will feel a little bit of a drag today because of that lost hour of sleep. so one of the first things i tell people is if you can, go to bed about a half hour earlier tonight because that will allow your body to start to catch up on some of that sleep that you probably have been missing. gretchen: okay. also here is a good one. try counting backwards from 300 by 3s. yes. gretchen: why? because most people tell me that they can t turn off their brain at night. they get in bed and all of a sudden these thoughts come in. the easiest thing to do is distract yourself. by counting backwards from 300 by 3 s, it s mathematically so complicated, it s so borrowing, you re out like a light. gretchen: do anything it takes to breathe. yes. so what we also know is congestion can cause difficulty in sleeping. so i say decon jest for better rest. whether that means using a breathe rite strip or netty pot, something to irrigate the sinus cavity and make sure you re able to breathe and sleep. gretchen: so there is a lot of controversy about drinking wine before you go to bed. there is. gretchen: some say red wine actually helps you because the tannens in it can soothe you, white wine, too much sugar. where do you fall? i like the idea of having a glass of wine with dinner. i don t have any problems with it. but once you reach two or three glass of wine. while it may make you feel sleepy, it keeps you out of the deep sleep. it also dehydrates you. that s half of the reason you get a hangover. one glass is fine. but tonight, i would say avoid alcohol because you re already at least an hour sleep deprived. gretchen: it s so interesting when you look at the facts like you do. what happens on today that we should all pay attention to as a result of having lost that hour of sleep? it s pretty scary. there to be have studies. one shows there is a 10% increase in heart attacks across the country this very day of the year. and 8% increase in traffic accidents that day of the year. we think those both have to do with the loss of that hour of sleep. so i would recommend to folks out there, be extremely careful if you can go in late to work today, that might not be such a bad idea. gretchen: oh, oh he s writing a doctor s note for you. the other thing we were talking about is that you would be an advocate of changing it if we on stay with it. change it to a friday. yes. i don t understand why it s always on a sunday. i actually learned the reason is apparently had to do with the train schedule way back when that was the easiest day to change the clocks because the trains were not running nearly as frequently on sundays as they would on friday. but i personally think that we re probably past that time in our lives now and if we change it on fridays, that gives all of us a chance on saturday and sunday to adjust better. gretchen: all right. thanks very much for the tips. i feel much more rested already. that s fantastic. gretchen: all right. 297. i m asleep. next up, today is the day there is about to be a major shakeup at the view. elizabeth hasselbeck has been booted from the show. and even man s best friend has a best friend of his own. a blind dog forms an incredible bond with his own seeing eye dog. they re here next and they both need a home. right back [ male announcer ] when it comes to the financial obstacles military families face, we understand. our financial advice is geared specifically to current and former military members and their families. life brings obstacles. usaa brings retirement advice. and you wouldn t have it any other way.e. but your erectile dysfunction - you know, that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment s right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. i really like your new jetta! and you want to buy one like mine because it s so safe, right? 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[ male announcer ] volkswagen springtoberfest is here and there s no better time to get a jetta. that s the power of german engineering. right now lease one of four volkswagen models for under $200 a month. visit vwdealer.com today. i hate getting up in the morning. i love cheese. i love bread. i m human! and the new weight watchers 360 program lets me be. the reason i m still in this body feelin so good isn t because i never go out and enjoy the extra large, extra cheese world we live in. it s because i do. and you can too, with the new weight watchers 360 program. the power to lose weight like never before. hurry. join for free now. offer ends march 16th. the new weight watchers 360 program. because it works. just begin with america s favorite soups. bring out chicken broccoli alfredo. or best-ever meatloaf. go to campbellskitchen.com for recipes, plus a valuable coupon. campbell s. it s amazing what soup can do. savor and explore, plua the great indoors friskies indoor delights. feed the senses. for current and former military members and their families. get advice from the people who share your values. for our free usaa retirement guide, call 877-242-usaa. eric: your shot of the morning. it s internet sensation grumpy cat draw noting huge crowds at e south by southwest at austin. he always has a grumpy look. hundreds of people lining up to get their picture taken with her. over 55,000 people follow her every day on twitter and soon she ll be a tv star, appearing in frisky s commercial. steve: i wonder if they use grumpy cat and by the end of the frisky s commercial, i bet the cat is smiling. gretchen: what does it take to make the cat smile? n frisky s. all eyes are on vatican city as the cardinals gather to elect a new pope starting tomorrow. lauren green is outside saint peter s square for us with more. good morning, lauren. good morning, gretchen. while it is 24 hours less than 24 hours before the conclave begin, which will choose a successor to pope benedict xvi. we are hearing today of possible front runners. as you say, all eyes are on saint peter s square where this morning the balcony is being prepared. this is where the world will see the new pope for the first time. there are reports the cardinals developed two camps. the americans along with those outside the roman curio, are said to be supporting angelo scola. he s archbishop of milan, italy s archdiocese, produced five popes. he s seen as someone with a strength to clean up the mess and scandal plagued by the vatican. another is cardinal shur, a brazilian of german descent who could give the church its first latin american pope. it s home to 40% of the world s catholics. the american cardinals are also merging as serious contenders, like new york s timothy dolan, sean o malley and houston s daniel denardo. regardless of whether they get the required two-thirds, they are seen as power brokers. but the two factions that developed signals the church s multiple needs. they re looking for someone who is holy, because he s preaching the gospel and he should, you know, be living the gospel that he s preaching. then they also want a brilliant theologian, you know. and then they want somebody who can communicate to grammar school kids. then they want somebody who can reform the vatican curias. they re look for jesus christ with an mba. the cardinals have one last congregation meeting today before the conclave rituals begin early tuesday morning. here is how it will proceed. they begin at 7:30, moving into the sequestered living converts on vatican grounds. at 10:00 a.m., the mass. at 3:45 in the everyone, they will be transferred to the apostolic palace. at 4:30, they will make a procession into the sistine chapel. they will each take the oath before casting their first ballot. of course, the first whiff of black or white smoke would be around 7:00 p.m. rome time. black smoke would signal there is no new pope. the white smoke signaling we have a new pope of the that is the situation right here right now. gretchen? gretchen: all right. lauren green, thank you so much for breaking that down. historically it s amazing to hear the process and how it works and we can know relatively soon. eric: i went on the betting site and the archbishop from italy is the highest the most likely, according to the people who do those things. they bet on when will be the next pope. steve: that s the sweet sistine, right? eric: sweet sistine, yes. gretchen: we are in march. eric: there are two cardinals from italy. but the one from milan. 25%. steve: meanwhile, 25 minutes before the top of the how many we got headlines and we start with the fox news alert. five people dead after a homicide bombing in iraq. two are police officers. the the attacker drove his explosive-laden car straight into a police station. three dozen more people hurt. some students from a nearby school hurt. no one has claimed responsibility for the attack yet, but they will. eric: the video you re about to see will knock you over. so just imagine if you were a firefighter on the scene. watch this. a back draft cause ago massive explosion in new jersey. five firefighters are hurt after being tossed into the air. they were literally thrown out of the building. the smoke explosion threw them out. it was very, very scary. the flames coming from every single window. eric: the firefighters will be okay. the fire started in a restaurant before it spread to the neighboring apartment building. tchen: barbara walters will talk about her brand-new view this morning. she s expected to make it official that elizabeth hasselbeck will no longer be on the show. a spokesperson confirming this in an e-mail last night. it s been revealed joy behar will step down at the end of the year. ratings on the show have sagged a little bit in recent years. stay tuned to see what she ll say. steve: how do you make marriage last? try taking advice from a woman who has been married 73 years. a new book called fall in love for life, 96-year-old barbara cutie cooper, as she s known, shares her wisdom from her long marriage to her husband, harry, who passed away three years ago. she suggests don t make excuses instead of making love. and focus all your attention on that person when they walk into the room. she also says be creative to keep romance alive and be honest about money. all good advice. gretchen: wow. steve: also separate bathrooms can t hurt. and yes, dear. any time you got a question, answer it yes, dear. gretchen: all right. let s head out to maria. who hasn t gone down the married path yet. not yet. gretchen: when do, come to the three of us for advice. for now, we re going to stick to the weather out here because it is relatively mild. it s not exactly room temperature here in new york city. that 72 that eric likes. it s in the 40s. it should be a little cooler than that for early march. as we head into the afternoon, it will get much warmer in new york city. look at dallas, it s actually cooler in dallas right now. 37 degrees. 28 degrees in kansas city. and also in the city of minneapolis. as we head into the afternoon, 70 will be your high in san antonio. 50 in new york city. across florida as usual, very warm. 78 degrees for your high temperature. in the city of tampa. enjoy the warmth while you have it across the northeast because we have changes. a strong cold front that s heading eastbound and this system is actually going to bring areas of heavy rain across parts of the south, up into the great lakes, eventually by tomorrow we should be seeing those showers moving into the new york city area. otherwise on the backside of the system for today, that snow winding down across iowa, minnesota, and also sections of wisconsin with anywhere between four to nine inches of snow. now let s head back inside. steve, gretchen and eric. steve: it is still winter. thank you. gretchen: they say dogs are man s best friend. but did you know dogs can have best friends, too? steve: yep. we got proof for you. meet chico, a dog from colorado who is completely blind. but his blindness isn t a problem because the dog actually has a seeing eye dog. his best friend, jack the dog. today these two catalogs are up for adoption. eric: joining us are jack, chico and erica jenkins from denver, colorado. tell us the story. it s heart warming. go. all right. these two dogs came to us, in a no kill animal shelter from a family whose owner passed away and they were no longer able to care for them. so they came to us. they re about eight years old. super sweet dogs, jack takes care of chico. they love each other and lick each other and clean each other and just couldn t be separated. steve: unfortunately, you don t know much about their story. you just know the story from the last day of last year, december 31, when they dropped them off. that s correct. steve: you had to connect the dots yourself, right? yeah. we don t know why chico s eyes were removed. but he is fully blind. i m guessing some sort of eye disease at some point. but we don t have the story. all we know is that they re really great, sweet dogs that just need a loving home. gretchen: you say they would be great with kids and yeah. they d be great for a family with no other pets. jack is a little protective of chico. he cares for him and wants to make sure he s safe. eric: tell us, if people are interested, where can they get in contact with you? they can look us up at max fund.org. we are a no kill shelter. and also we have a phone number. if they want to reach us, then find that on our web site. steve: we ll have it at www.foxandfriends.com. eric: i worked with the iams company, they ve been fantastic about sending dog food, stuff they don t send for general sale, sending the dog food to no kill shelters. do me a favorment i m going to contact you later, see if we can get food. will that help out, some iams donated food? oh, yeah. that would be wonderful. gretchen: you can take all the donations we can get. we hope chico and jack can be adopted together. thanks for bringing their story to national attention. thank you. steve: that s great they ve got each other. now they need a family. if you can help, we ll have it up on our web site in a couple of hours. gretchen: coming up next, kerry kennedy busted driving under the influence, but she says she can explain that. story coming up. eric: john brennan gets sworn into office without a bible and using a shortened copy of the constitution. his version missing the bill of rights. what does that mean? first, the aflac trivia question of the day. born on this day in 1971, this actor played the role of luke in a 2005 film the dukes of hazard. who is he? be the first to e-mail us, friends at fox news.com with the correct answer and you ll be the winner. steve: quick headlines. the daughter of robert f. kennedy, kerry kennedy, wants the drug driving charge against her drop. she claims she accidentally took a sleeping pill instead of her thyroid medication before swerving into a tractor-trailer on a new york highway back in july. that s her excuse. meanwhile, a weasel-like creature called a martin wreaking havoc at a soccer match in switzerland, dashing out onto the field. watch this. a player grabs it, but the thing bites his finger. another player was able to get the critter off the field. picked it up and just gave it a toss. let s hope you don t catch that in your lap. eric, over to you. eric: the road to john brennan s confirmation as the new c.i.a. director was bumpy. on friday, he was sworn in. instead of resting his hand on a bible, he chose the original draft of the constitution, but this document does not include the bill of rights. is that a problem? joining us with more is on-line editor of the weekly standard, daniel helper. is it a problem? does the constitution have to have the bill of rights in it for it to be a true swearing in, sir? no, it s not a problem in the sense that he s not the c.i.a. director or he s not able to perform the duties of his job. it s just the whole move was a symbolic move as the white house announced on friday. the deputy press secretary came in to explain what happened and to i guess get some points from the press for this. so the whole move was symbolic and it was symbolically all wrong of the the reason people take an oath with the bible is simply to say i m swearing to god that i will uphold the constitution. you re invoking god, you re invoking your commitment to god, invoking a higher being. that s not what brennan did, which is okay. there is nothing wrong with that. it s just symbolically a little odd, frankly. then to have the constitution that doesn t fully amend it and doesn t have the bill of rights, you know, it all seems to be a response to the rand paul filibuster and rand paul wanted the constitution to be upheld by this administration and it just seems so bizarre to get it completely wrong. eric: i m trying to figure out, if there is a ceremony to swear somebody in, can they just pick and choose whatever they want to put their hand on? is that where we re headed? yeah. look, people are of different religions, different faiths. maybe some people are nonbelievers. maybe some people are jewish or islam. you can do whatever you want. the point is you re invoking a higher being and invoking a higher belief than the constitution and then the laws of the united states. that s where this is kind of weird cause you re taking an oath on the document, you know, you re invoking the document that you re taking an oath to uphold. it s bizarre. it doesn t really make sense. eric: beyond bizarre, there is no rule that says you have to swear in on a document that s approved? no, not at all. it s just customary. you can change it up, i suppose, and do things like this. the other weird part is that the press wasn t allowed in. the white house puts out this photo. so we re only left with what the white house is feeding us. we re not able to see it ourselves. we re not able to ask questions ourselves. we re just left with what s given to us and that s just frankly bizarre and doesn t really make sense. eric: all right. we ll leave it there. thank you very much. thanks. eric: next up, the stars of the hit channel show austin and allie are here. but on this day in 1986, sarah was the numero uno song [ male announcer ] in blind taste tests, even ragu users chose prego. prego?! but i ve bought ragu for years. [ thinking ] wonder what other questionable choices i ve made? i choose date number 2! whooo! [ sigh of relief ] [ male announcer ] choose taste. choose prego. then i read an article about a study that looked at the long term health benefits of taking multivitamins. they used centrum silver for the study. so i guess my wife was right. [ male announcer ] centrum. always your most complete. eric: gong johnny knoxville is the answer to the trivia question. austin and allie is the hit show about two friends trying to make it in the music business. there is no way i can make it without you. thank you so much, austin. this is the sweetest thing ever. step aside, please. i need a clear shot of our happy couple. [ laughter ] wait! i can explain! gretchen: sometimes things get a little complicated as fans saw in one of the highest rated episodes of the season. the stars are here with a sneak peek of what happens next. all the tweens and the parents who are waiting for what s going to happen, get ready. spill the beans. okay. so basically just to catch up on everything, cause the clip you saw, that s when allie realized she liked austin. the next episode steve: the two of you like each other. basically austin found out he liked allie. and then the third episode, we re like, what do we do? we re friends, but we like each other. meanwhile, the other girl in the mix steve: there always is. she comes back and says, by the way i want to be your girlfriend. meanwhile, what just happened before that, we kissed. right. what? gretchen: i read that. so basically the next episode which is coming out march 17, ally just got over her stage fright. she just found her voice. austin obviously has two girls. he s a player. but he s not really. so all gee like, you know what? i m going to focus on my career. gretchen: good idea. i m a strong independent woman. gretchen: why is the show so popular? i think it s partly cause of the music, i think. definitely. i don t know. s a pint sized version of entourage. i heard that. i like that. that s cool. i would even go and say it s also kind of a disney channel version of will and grace. like it s an ensemble show. i think that s what makes it so we re all really good friends in real life. and that energy, you can totally see on screen. steve: we love nice and holesome shows like this one here. here is a sneak peek of austin and ally. i guess that makes it official. congrats, you, two. well, i better get smooching. i mean scooping. there is a movie i don t want to kiss. i mean miss. let s go, trish. the duet sounded great tonight, although your timing was a little off. steve: there you are with the other girl. right. gretchen: the plot thickens. the beautiful girl. gretchen: i love about you guy social security you do spill the beans. sometimes we ask people and they say, we can t say anything. we can say something. but we didn t give away the main thing. gretchen: oh, so there is the cliff hanger. tune in to see the brand-new episode. you both are charming. continued success. thank you. steve: laura, ross, good luck to you. thank you so much. steve: all right. next up, the government wants to make sure that you feel more pain from the sequester. the proof from a federal employee who is spilling some federal beans. gretchen: and from the it s not fair file, a couple wins the lotto not once, but twice! how did they coo it? right back. what s droid-smart ? with google now, it automatically knows when you need to leave for the airport, how much traffic there is, and has your boarding pass ready. the droid razr maxx hd by motorola. droid-smart. droid-powerful. with tasty grilled flavor and goodness to savor friskies grillers blend. feed the senses. 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[ male announcer ] try alka seltzer plus severe sinus day and night for complete relief from your worst sinus symptoms. the longest 4g lte battery in a razr thin profile. with 32 hours of battery life that turns an all-nighter, into a two-nighter. the droid razr maxx hd by motorola. droid-endurance. droid-powerful. gretchen: good morning, everybody. it s monday, march 11, 2013. i m gretchen carlson. thanks for sharing part of your day with us today. one day after the afghan president blamed the u.s. for conspiring with the taliban, two u.s. troops are now dead from another insider attack. is there a connection? the breaking details moments away. steve: take a look at this video. it s like something out of the movie backdraft. remember that? what happened? the video, the story straight ahead. eric: and you and i can t go to the white house, but can she? eric: the latest on who has been invited and who hasn t while you re shut out. fox & friends on 3-11-13 starts right now. gretchen: good morning, everybody. brian is taking the day off and in his place we have eric bolling. eric: he s she superstitious about 3-11-13. gretchen: we had a guest on that talked about 3-11-13. steve: we start this hour with bad news. fox news alert. a police officer opened fires on u.s. and afghan forces inside a police station in afghanistan earlier today, sparking a fire fight that wound up killing two u.s. troops and two other afghan policemen. so-called green on blue attack. this is nothing new. and then in the last five minutes, i see another update. afghan officials say u.s. troops have now shot and killed two afghan civilians as their truck was approaching an army convoy. apparently they were killed. an assessment is underway. but they wouldn t stop their vehicle. gretchen: there is a lot of moving parts. you had the new secretary of state, chuck hagel, over in afghanistan, supposedly having this joint press conference with karzai. that was called off after the latest killings and other violence that happened. and at the same time, you have karzai saying that the u.s. is somehow teaming up with the taliban now, accusing the united states of working with the taliban, which is completely not true. unless it s some sort of a covert operation that we know nothing about, but certainly not true on its face. you have to ask the question, why is hamid karzai doing this? does it have anything to do with these attack as soon as if there is no respect coming from your leader toward the united states of america, does that filter down to the police force within afghanistan? eric: no surprise at all that this attack happened and now that we have we keep getting these headlines, maybe there is more violence going on. what did karzai think was going to happen if he said the u.s. is working with the taliban to create these bombs and these killings that are going on within afghanistan? of course it s going to create hostility, anger, and we honestly, for the better part of a year now, we ve been trying to put that stuff to rest. remember there was a big brushup about a year ago where u.s. service person killed a group of afghan police. now things seem to have calmed down. karzai has done nothing but throw more fuel on that fire. steve: 2174 american lives have been lost in the war in afghanistan. here our partner is talking crazy talk like that. in the past, hamid karzai, who we pretty much helped him get into a position of good power over there. he has in the past since 2009, said, you know what, i m thinking about joining the taliban myself. so now with him doing this, for him to suggest that the taliban is working with the united states, that s just crazy. but the taliban wants us to leave next year. that s the plan. why does the taliban want that? so they can go back to running the country as they did before. so to be in cahoots is crazy. the commanders there say there is nothing to that story. eric: 2,000 lives and literally hundreds of billions of dollars we spent over there. the guy is just steve: this is the thanks. eric: he s absolutely out of line saying those things. gretchen: in the meantime, other headlines. tensions are high between north and south korea and this surely will not help. north korea just declared the 1953 armcities invalid. north korea cutting off its hot line phones with south korea. those are used for emergency communication. this comes as the u.s. and south korea start annual military drills. the 11-day drills involve 10,000 south korean and 3,000 u.s. troops. the u.s. and south korea say they are in defensive in nature. it s believed speed was a key factor that killed six teens in warren, ohio. eight teens ages 14 to 19 were packed into the car when it lost control, hit a guardrail and landed upside down in a pond. two boys managed to escape and ran to a nearby home to call 911. family members are devastated. even if you go through something, pick up the phone and call your family and tell them you love them because you never know what can happen. tomorrow is not promised to anybody. gretchen: police believe that that car was taken without permission. the video you re about to see will knock you over. just imagine if you were a firefighter on this scene. watch this. that s a backdraft causing a massive explosion in harrison, new jersey, sending dust and debris everywhere. five firefighters are hurt after being tossed into the air. they were literally thrown out of the building. the smoke explosion threw them out of the building. it was very, very scary. the flames coming from every single window. gretchen: the firefighters will be okay. the fire started in a restaurant before it spread to the neighboring apartment building. they may be the luckiest couple ever. this arizona couple hit it big with the lottery not once, but twice. diane and kerry carmichael first won in 1995. they got $2.5 million. then last week, as that money was ending, they won a $1 million from powerball. they say they always knew they d win again. it was exciting because it was my ticket this time. the first time it was his ticket. so i got the thrill of saying, i won, you know. gretchen: the win comes just in time as the payments from the first win, they re all out in 2014. now they can add another cool mill to that. steve: like clock work. is it a brand-new barak obama? it s interesting and curious as well, our famously aloof president suddenly talking to republicans. is it a tactic or has the president realized after his election victory that he s actually going to need to work with those republicans he s been bad mouthing over the last couple of years to get anything done? personally, i think it s a tactic. but republicans up on capitol hill, they don t know exactly what to think. listen. if you impugne people s motives, if you say these draconian cuts, which by the way, we re increasing spending by 3.4% a year, that does no good to get to common ground. that makes it impossible for parties to come together to bridge the gaps. so if that kind of rhetoric resumes, then we ll know this was for show and it wasn t sincere. i hope that this is sincere. i think he s genuinely reaching out. but you know, you ve got a lot of scabs and sores on people that it s going to take a while for that to heal. rick: the senate is not near as dysfunctional as it s made out because there is great relationships in the senate. our problem in the senate is the leadership of the senate. not the members of the senate. it s great. to build some trust is a good thing, but to be honest with you, bob, what the president needs to do is reach out not just to republicans, but to democrats. and to insure that he gives them the political cover to do frankly what most of them know needs to be done. gretchen: which, of course, is the big thing in the room, entitlement spending. so far, no movement from the president on that. there were whispers about that a couple of years ago, that he might be in favor of some of the entitlements as far as changing the age and possibly the income level for social security that you might get less if you re a high income person. but really nothing since then. it s interesting because if this president really was going to change and try and work together with republicans, you would think you would have seen this right after the election, that it would have been an about face. but you didn t see it then. so you have to ask the question, why now? could it be because of the poll numbers? could it be because of sequester? eric: yes. gretchen: not work out as he sold it to the american people. eric: here is why, because he overplayed his hand with sequester. they went out and said, look, sequester will be really bad. the obama administration tried to blame republicans for sequester, even though they came up with the idea in the white house. and then they started doing things like closing the white house, started doing things like pulling back in areas that the public was exposed to. what happens is, the public started saying, hey, president obama, you have literally hundreds of billions of dollars of places you could be cutting burks you re cutting in places that affect me, hurt me. they overplayed that hand. so obama is smart, he goes, let me see if i can put this fire out. i m going to unannounce and inbound site 12 minute senators to show my bipartisanship handshake across the aisle. steve: that s the key right there because the belly aching about the republicans stopped working. so when he says, i m inviting these folks in, let s get the dialogue going, people and the information viewer are thinking, that looks really good. but if his goal truly is as was revealed in the pages of the washington post two weeks ago to have nancy pelosi regain her speaker hammer at the conclusion of next year, this is just a tactic where he ll be able to say, look, i m getting along with these guy, but when things go wrong, he can blame the republicans. i bet you a dollar that s the plan. gretchen: if it was all about sequester, then he would put the white house tours back on! if he really felt like he was feeling the heat with some of these cuts, instead, it appears that they will continue, the white house tours will not happen. and things like tuition for people who are on active duty in the military, at least so far for the army and marines, they will not be able to continue their education right now. over on my left shoulder. eric: i m not sure i think we re going to get them open. i think that eventually president obama and jay carney have to listen to what the people are saying. this thing has been trending on and off the last four or five days. it s ridiculous. kids want to go to the white house. they want to see the white house. they re hurt o clock hurting the kids to make a cheap, political stunt. it s not fair. they will open. i m sorry. steve: and it s not just kids. i mean, you re coming up on the cherry blossom season in washington, d.c this is the biggest tourist time in washington. there will be a lot of financial pressure. plus what, will happen with the annual easter egg roll? we heard they re going to have that. so how does that work? we re closed, we re closed. we re open one day. we re closed. gretchen: now rangers at park services claim their supervisors pushed sequesters so visitors would notice. this was the argument we were making last week on the show was that have they cherry picked some of these cuts to make them more painful and more public, more publicity for the public to see where these cuts are happening, high profile places? if they made the cuts in some fishery down south, people probably wouldn t hear about it. fish inspections, meat inspections. but they hear about these things. here is one of those people. the government goes to sort of close the most important and least important function to get budget back. there is a term called it, closing the washington monument ploy. the one agency that really gets great polling from the public is the national parks. so there is a long history of using the national parks politically during these budget fights. why they would got hit for more instead of taking out some layer of management in the department of interior makes little sense to me. but we shouldn t be surprised. look what the white house did. the white house of all the things they could have cut cost, they closed tours so they could dominate the news cycle for a couple news cycles with disappointed sixth graders on tv. steve: just remember, we re talking about a 2 1/2% cut. that s what we re talking about. pennies on the dollar. look what we have. eric: in the last couple of days, last week we had the department of agriculture, someone leaked an e-mail saying hey, don t make the sequester cuts look good. make them look steve: contradict that. eric: don t contradict what we ve been saying. then you have the park rangers coming out saying, they told us to do it where the public feels it the most and then the white house. i moon, honestly this is jump the white house jumped the shark. litical gain.ecting pain for gretchen: let us know what you think. coming up, you know all about the benefits of aspirin. but we bet you haven t heard this. ladies, this one is for you. eric: then the main stream media works overtime to paint the catholic church in a bad light. will the conclave change any of that? 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[ male announcer ] volkswagen springtoberfest is here and there s no better time to get a jetta. that s the power of german engineering. right now lease one of four volkswagen models for under $200 a month. visit vwdealer.com today. steve: you are looking live at saint peter s square in vatican city in rome where they re getting ready for tomorrow s papal conclave. starting tomorrow, 1.2 billion catholics around the world will wait and watch as the cardinals pick the next pope. but that s not stopping the main stream media from painting the catholic church in a lousy light. this is nothing new. but this conclave could change all that. fox news legal analyst peter johnson, jr. joins us live today. yeah. as a catholic, it s an exciting time for the church. there is a lot of expectation about who will be picked. it s a great opportunity that we haven t had in hundreds of years. but at the same time, the american media in lock step almost to the main stream media has been looking to beat away at the chinks in the catholic church. instead of talking about communion and confession and a community of faith, they talk about birth control and pedophilia. instead of talking about devotion and social justice, and providing education and charity to millions of americans, they talk about dissension and conflict and that the church somehow imploding or maybe exploding, for better media control. that s been a problem. but when you see the hundreds of thousands of people who will be present to await the white smoke, when you see perhaps a million people coming to see a new pope invested, when you see millions of people around the world on twitter and the internet and e-mail picking a favorite cardinal and saying, this is my aspiration for the church, you see the power of a universal church and the power of faith. any christian denomination. here it happens to be roman catholic church. steve: when i was in church yesterday, it was a full house. it was 9:00 o clock mass in franklin lake, new jersey. i was talking to some of my friends there. they didn t bring up any of the bad stuff that you read about in the main stream media. instead, it was kind of like, who do you think it s going to be? because the people that i talked to are very hopeful that the new pope will go ahead and lead us way past this stuff that s in our rearview mirror. it s a given that the main stream media has an adherent bias. the new york times for a long, long time has led that. go to march 6, go to the poll of only 600 catholics allegedly that they launched. that has been the basis before and after for their attacks in lead after lead after lead where they talk about the problems inherent in the catholic church, but at the same time, don t focus on the universality and the things that bring the catholic church together. millions of people are looking world wide to what goes on in the conclave as these 115 or so cardinals decide what s the next pope, who is the next leader in this media age where the pope s activities will be watched minute by minute? the same way we ve seen the conclave. this discussion they ve had in rome exposing all of these issues, including pedophilia, including conflict, including birth control, including marriage, including the marriage of even priest, that s important for the church. but they re doing it on their own terms. steve: sure. all right. we re going to be watching the chimney cause it could happen typically between two and five days after they start. so we ll keep an eye on the smoke. good to see you. steve: thank you. all right. straight up, a side to ryan seacrest you ve never seen before. we re talking about his dance moves. our own kevin mccarthy goes one on one with him. it s a dance party. then a major break in health news from people who have been dead for 4,000 years. what can we learn from the mummy clients are always learning more to make their money do more. 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[ male announcer ] take action. take advil®. eric: drive-by shooting in the middle of dc sent seven people to the hospital this morning of the police say the gunman fired several rounds into a crowd of people outside an apartment building before get egg way in a blue bmw. a friend of oscar pistorius says he s on the verge of suicide. he s charged with murdering his girlfriend, reeva steenkamp. but pistorius lawyers have appealed his bail conditions, saying he should be allowed to travel. he s also reportedly selling his racehorse to pay for legal bills. gretch? gretchen: if you re looking for a work aholic in hollywood, nobody fits the bill better than ryan seacrest. he s executive producer of the kardashian reality show franchise. eric: lot going on. but he had a few minutes to spare to talk with our own kevin mccarthy. watch. hi, kevin. good to he sue to see you. it was an honor to talk to ryan seacrest. he s promoting something called idol across america, which is basically a cross-country relay convenient where they re taking the idol microphone and basically bringing it across the country to 5,000 miles, 13-city tour. former idols will be running, walking, skateboarding, roller blading. i had a chance to catch up with him. the microphone will end its trek this wednesday in l.a. fort top ten live performance show. i caught up with ryan about his life, his life and work balance, and we have a very, very awkward dancing session. check out this video. this is american idol ! i remember actually my audition, which i was terrified to go through. i was standing at fox and i was in the executive office and they said, okay. here is what s happened. a contestant has just sung and they lost their parents this week and they re singing about that and you ve got to go in and console them and also get us to a commercial. i thought, i m confused. i don t know what they just said to me. so you go in and try to do your best. but after the audition, i thought, i didn t get this job. where is that balance of keeping that excitement, but also not taking on so much that you start dreading the work? i think there was a time when i didn t have any of it. so i remember, you know, wanting to do what die and not doing it. i also believe in hard work. i m not that great at anything, right. yes, you are. i can t play an instrument or sing. i feel the more opportunity that i get, the harder i want to work. making it happen. what is the difference between radio ryan seacrest and tv ryan seacrest? broadcasting is more of me talking about people s relationships and things like that. in terms of my life, i have less jackets on the radio and more sweats on the radio. and a few more a. hats. i saw your video on-line, what tip can you give me? it took ten takes. what was the punch you were doing? yeah. that. that s the new version. can you do it? i m not sure. like this? is that right? that s it. somehow it got out that side of me. i want to apologize to the ladies across america for seeing that awkwardness of that dance. i m so sorry for that. but gretchen, can you give me some tip, if you saw me doing that at a club, what would you say in would you run away? gretchen: absolutely not. i thought it was a great job. i don t know why i m punching the air. i have no idea. gretchen: listen, you get an a for effort and risk taking. yeah. exactly. i ll be doing that. so ladies, if you see it, don t run away, please. appreciate it. gretchen: very cute. thanks for bringing that interview to us. thanks. i appreciate it. i ll see you friday. steve: the mccarthy shuffle. he taped it in front of our building. coming up on this monday, you know all about the benefits of aspirin. but we bet you haven t heard this next benefit and that s coming up. eric: then you can go to the white house, but you can t, but can she? . eric: we ll have the latest on who is invited and ho is not. who is not [ male announcer ] marie callender s believes a little dessert can make any old day a special occasion. so she makes her new mini cream pies with real cream filling and milk chocolate on a cookie-crumb crust. marie callender s. it s time to savor. to prove to you that aleve is the better choice for him, he s agreed to give it up. that s today? 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[ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose 2% cash back or double miles on every purchase every day. told you i d get half. what s in your walle got you ! you cannot escape the rebel forces ! ahhh. got you ! got ya ! gotcha ! got . that s all you got, brother ? take that. never having to surrender the things that matter. gotcha. that s powerful. verizon. accomplish splash i was taking a bath all about saturday night . eric: shot of the morning. incredible video of a kayaker plummeting down a 65-foot waterfall in mexico. the dare devil came out unhurt. now take a look at the drop. gretchen: no, no, no. eric: a camera hung from a wire that captured and made it into a short film. that s gutsy. gretchen: i don t even do the ride like that at mall of america, disney world. no, no, no. that s about 14 million times worse. woo. steve: everything worked out okay. this is not working out okay. if you are a school group, church group, tourist planning to go tour the white house today, next week or so, bad news. white house closed because of sweet sequestration cuts. now, i ve been doing this show for 16 years, i ve never quoted glamour magazine. but according to glamour.com, beyonce and adele to perform at michelle obama s 50th birthday party, that s the story. it s happening next january and reportedly the first lady asked them specifically because she loves both of them, if they would appear and reportedly they both said yes. but this mornings the white house says that story is not true. eric: not only that, last week there was a report that the vacations that the obama cost $1.4 billion. gretchen: seriously? eric: think about it. it s 175 or $180,000 per hour that the air force one operates. sometimes they re operating one and two to take them on vacation. gretchen: specifically on this party, they would pay privately for them to perform, but as you brought up earlier, security and all that, you probable lea have taxpayer expense. steve: i think i read both performers would waive their fee. gretchen: oh, okay. what did you think about it? here are some e-mails. someone should remind president obama that while the white house may be his temporary home, it s the people s house. we have the right to see and examine what belongs to us the people. steve: sandy writes, you don t intentionally harm others, especially children, to get your point across. that is childish and petty. our tax dollars paid for the support that is needed to keep those tours open. eric: then paul from louisiana writes, i think this one is one of the most unethical things our government can do. it makes us look like nonamerica, but some third world dictatorship that hurts its citizens just for fun. steve: they built up the sequester before, oh, the sky is going to fall. then it hit and didn t really fall. and we had heard there were big lines at the airport, not big lines there. so what can the white house control? the tours. eric: yeah. steve: cut them off. gretchen: let s see how long that stays as planned. now to other headlines for your monday. do you remember when president obama said this? let me say it as simply as i can, transparency and the rule of law will be the touchstones of this presidency. gretchen: transparency and the rule of law, that s what he said, turns out the obama administration censored more public records last year than since he took office in 2009. cited certain legal provisions that allowed the government to keep records or parts of them secrete for national security reasons. eric: bet you steve: playing video games saved the lives of two teen-agers. a small plane slammed into a garage just feet from where two teen-agers were playing video games. 21-year-old talon says the entire house shook when it hit. knowing my son was so close to the accident, he was just above it, it really came home how fragile life can be. i feel sorry for the family that had this happen. steve: the pilot of the plane killed in the crash. the passenger, the pilot s nephew, just upgraded to serious k. witnesses saw the propeller stop just before the crash. eric: taking aspirin regularly may help protect women from deadly skin cancer. a new study finds women who use aspirin were 21% less likely to develop melanoma and the risk continued to drop the longer women took the drug. researchers say it s because aspirin reduces inflammation, which they believe play has role in cancer. gretchen: barbara walter will talk about a new view this morning. she will make it official that elizabeth hasselbeck is u. out. it s been revealed that joy behar will step down at the end of the year. ratings have sagged in recent years. we ll see what she has to say. steve: meanwhile, let s take a look at what s going on on the golf course yesterday down at the trump place called dural. eric: he did say ratings sagged on that show, right? tiger woods way off course in the catholic championship, hitting the ball into the trees. but nothing was stopping tiger this time. he cruised to an easy victory at the tournament, his 76th pga trophy and 70th world championship golf title. he has won five times in the last year and that s more than anyone else. talk about the best birthday present you could possibly give yourself, matt kenseth winning in las vegas on his 41st birthday. that s great thing about the sport, it never stops. you only get to enjoy it for a couple of days. to answer your question, it feels really great to get the win and hopefully that will keep some momentum going for our team. eric: you saw him right here on fox & friends. 11-year-old julian going one on one with anna kooiman and showing off his skills on the court. now he s moving on to much bigger targets. the basketball prodigy sharing court with the harlem globetrotters in florida. the fifth grader plays on the varsity basketball team at his high school. and maria, he s got moves. do you have any weather moves? yeah, i do have some weather moves. i ll show them to you. looking at the current temperatures across the country where in new york city right now, it s actually relatively mild. we re looking at temperatures in the low 40s here and it s going to be warming up to 50 degrees by the afternoon. further west, 28 degrees in and out in minneapolis and also kansas city. and dallas, 37 degrees. 40 in san antonio. by this afternoon, you ll be 70 in san antonio. warm day in tampa. 78 degrees. it s been mild across northeast over the last several days. but it will be changing. we actual lea have a strong cold front headed eastbound. you have areas of rain and also thunderstorms. we ll be dealing with the rain coming up tomorrow in new york city. for now, enjoy the mild weather and the dry weather as well. gretchen: thank you so much. all eyes on vatican city as the cardinals gather for the last day before the conclave to elect a new pope. eric: lauren green is live with more. what s the latest? you know, i m standing in the main majestic thorough fair leading up to saint peter s basilica. from here, you can see the sistine chapel. i m going to give you a view. you can barely see it. but tomorrow night, the vatican tv cameras will be trained on that spot, that chimney stack out of the sistine chapel to see if white or black smoke bill lows out after their first vote. for the first time, americans are considered possible contenders and receiving a lot of attention. new york s cardinal dolan is at the top of the list. but boston sean o malley is more thanking as a favorite of the italian press. in his homily yesterday at his church here, he had this to say about choosing the successor to pope benedict xvi. let us pray to the holy spirit to choose a new pope who will confirm us in our faith and make more visible the love of him. a vatican analyst we talked with said although the americans are making quite a splash here in rome, we should not bank on it. take a listen. you know, the church doesn t want the papacy to be in the hands of the super power. that s not good for the church. so i don t think an american has a real chance. the cardinals have one mass before they move into the sequester quarters tomorrow morning about 7:30. then there is the conclave mast at 10 in the afternoon they re transferred to the pauline chapel and then make a grand procession single file by seniority into the sistine chapel where they will cast that first ballot. we should see that first smoke around 7:00 p.m. rome time tomorrow. black smoke means there is no pope. and white smoke means we do have a new pope. gretchen? gretchen: all right. lauren green reporting live for us from rome, exciting assignment. thanks. steve: all right. 19 minutes before the top of the hour. is it really a good idea to try foreign terrorist like bin laden s son-in-law just blocks from ground zero? shouldn t we interrogate them instead of giving them their miranda rights and send them to gitmo? a closer look coming up next. eric: then the healing power of magic. how magic is helping kids with autism in ways you could not imagine. . steve: that s some weird dental floss. [ male announcer ] how do you make america s favorite recipes? just begin with america s favorite soups. bring out chicken broccoli alfredo. or best-ever meatloaf. go to campbellskitchen.com for recipes, plus a valuable coupon. campbell s. it s amazing what soup can do. plua brand new start.n. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week. gretchen: 45 minutes past the top of the hour. turns out heart disease is an old problem, at least 4,000 years old. new research shows even mummies had clogged arteries. this finding debunks theories that heart disease is caused mostly by modern habits. at the age of 20, she s returning to her roots. former disney child star selena gomez will headline the radio disney awarts and be on tv reopro easying her role on the wizard of waively place. guys eric: in one instance, the obama administration defends using drones to kill american terrorists on foreign soil, but at the same time, the administration is giving osama bin laden s son-in-law a civilian trial right here in new york city. steve: so which one is it when it comes to handling terrorists? capture or kill? jay sekulow is the chief counsel for american center for law and justice and joins us live. good morning to you. good morning. steve: you say enemy combatants should be interrogated, relentlessly. not given miranda warnings. of course, once you mirandaize them, they can remain silent and anything they say can t be used against them in the court of law. that s the fundamental problem. why are we putting, in this case, osama bin laden s son-in-law on trial in manhattan? remember the outcry when it was going to be one of the masterminds, khalid sheikh mohammed was going to be tried in manhattan, the outcry was so significant that the justice department backed off of that and decided not to do it. the fact of the matter is, trained terrorists will utilize the legal system, called law fair. they ll utilize the legal system to spew their propaganda and hate. all we re doing is give them a platform. what you want to do is get as much information as you can that can be used to find out what ongoing planning has been done. this guy has been active for a long time. he s been bouncing around the middle east. we finally got him. he should have stayed in guantanamo bay and we could have interrogated him, got the information weddd intoed, put hm on a military commission. eric: jay, the left is saying, oh, look what we did with the underwear bomber and the times square attempted bomber. but this is different, right? cause this guy was caught off american soil. they actually brought him on american soil. he could have gone right to gitmo. of course. clearly an enemy combatant. you re right. he was caught in a situation where he was on basically fleeing on battlefield because they got him through jordan and turkey,s that some relative way involved. buff the fact of the matter is this, this is an enemy combatant, captured not here in the united states. he should be tried at gitmo. he should not be mirandaized. do we want to give this guy the right to remain silent? i think the answer is no. no silent. we want to know everything he has. and everything that could be useful through interrogation techniques. and keep this guy out of the civilian court system. so what we re going to do is we indict him and then we re going to try him. what happens if because statements were made before he was mirandaized and that evidence can t be admitted and he gets a not guilty verdict. so is everybody in new york going to be comfortable having osama bin laden s son-in-law set free? he ll be shipped back to his country of origin hopefully, or claim asylum here in the united states? this is the nature of this. we re in a war. that s what the obama administration needs to figure out here. they say we re in a war because we ll use drone strikes, which i understand drones and the necessity for drone strikes. but even against americans. we held a debate whether that could be an american on american soil. they were debating that. but we re in war there. that s declaration of war, so to speak, to use drones. but we capture a terrorist engaged at the highest levels on a foreign field, we re going to try him in a civilian court. it absolutely makes no sense. steve: just blocks from the world trade center. it s just crazy. all right. jay sekulow from the american center of law and justice, sir, thank you very much. thanks. eric: next up, the healing power of magic, how it is helping kids with autism in ways you couldn t imagine. steve: very nice. first, let s check in with martha mccallum to find out how her weekend was. i ll tell you all about that. very interesting story, in fact. stick around for that one. plus, there is this breaking news that is exclusive to america s newsroom this morning. pastor imprisoned in iran, we hope that you will stay tuned for this. it is quite a story. and what you don t know about the tsa could hurt you. an insider tells us why billions of u.s. tax dollars may not be keeping you safe at all. bill and i will see you right here at the top of the hour look what mommy is having. mommy s having a french fry. yes she is, yes she is. 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[ male announcer ] centrum. always your most complete. gretchen: do you believe in magic? our next guest does. he uses visual tricks not only to delight audience, but help kids and individuals with autism and other disabilities. it s a program called hocus focus. he joins me now, illusionist and educator and a friend, kevin spencer. good to see you. good to be here. gretchen: i know you went through your own disabled time. you had a severe car accident. so you see empathy for kids and adults who are disabled and you re trying to help them with magic. absolutely. i think when you come out on the other side of something as traumatic as what i went through, closed brain injury, lower spinal cord injury, you do kind of have a great empathy for the struggles that people with disabilities are going through. gretchen: you say oftentimes, people with disabilities are defined for what they can not do. you re trying to help define what they can do. absolutely. as a society, we need to appreciate the abilities that they have and quit focusing on disabilities. gretchen: so what do you do with them? what kind of tricks do you show? magic. it s amazing because what we found in our research, this is so science based. we found every time a child learns a magic trick, it helps them improve the skills that they find very, very challenging. so one of the things that we teach that s really cool, a rubber band trick that this works with some money. they ll need to grab close on this. i have one, two, three, four, five, one dollar bills. this is where it gets fun. so nothing, nothing, but then we can make these into one. gretchen: woo! i know! gretchen: if a woman 40 something likes that, a kid will. if do you it with a $100, it s 100 times better. now this one. we take the bill and you fold it over. about a third of the way. you put your first paper clip on. you fold it back the opposite direction and put your second paper clip on. you have one paper clip on this side and one paper clip on this side. but they don t touch anywhere in the middle. when the grab the two top corners and pull, the paper clips jump up in the air and hook together. it s a fun trick. gretchen: not only teaching dexterity and focus, but you re giving them self-examples steam. absolutely. this simple magic trick is a great way for them to concentrate, improve ability to follow directions, planning and sequencing, organizing tasks and movements, all the things they struggle with. but the greatest thing is it helps them with the fine motor skills and coordination and gives them an opportunity to be social. when they learn this, they want to go show somebody. most of these kids have a very difficult time with social skills. so this gives them the ability to start a conversation, let me show you something, to build those skills. any time you can give somebody who has been labeled disabled the ability to do something that the normal able-bodied person can t do gretchen: i think the work you re doing along with your wife, cindy, is so amazing. you do regular shows, but then you ve dedicated your life to making a difference to these kids. bag of tricks is a documentary that you re looking for funding for. if people are interested, they can go to our web site and you came up with this curriculum, hocus, focus, you re making a huge difference in kids lives. thank you. thank you. gretchen: more fox trends friends three minutes away fox & friends three minutes away what s droid-smart ? with google now, it automatically knows when you need to leave for the airport, how much traffic there is, and has your boarding pass ready. the droid razr maxx hd by motorola. droid-smart. droid-powerful. and his new boss told him two things cook what you love, and save your money. joe doesn t know it yet, but he ll work his way up from busser to waiter to chef bere opening a restaurant specializing in fish and game from the great northwest. he ll start investing early, he ll find se good people to help guide him, and he ll set money aside from his first day of work to his last, which isn t rocket science. it s just common sense. from td ameritrade. a body at rest tends to stay at rest. while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms. but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day
greg: hello, everyone. i m greg gutfeld with andrea tantaros, bob beckel, eric bolling, she s a model for pez disspencer, it s dana perino. it s 5:00 in new york city. and whatever. greg: so sean penn and mahmoud ahmadinejad hit the same red carpet. it pays to note it s not for a flick, but a funeral. hugo s that is. venezuela had nearly 22,000 murders in 2012. so the red carpet makes a lot of sense. penn claims hugo was a champion of the poor. by champion if you mean undertaker, you re probably right. this is an adult moment for america, which is needed in that our president seems to bring out the kid in everyone, including himself. take sequestration. that was the bunk bed he made. but he still blamed others. tepeing the white house in a tawdry tan trem of baby games. now another teenager response. sneaking in through the bedroom s window. usually it s a girl or boyfriend but here is usama bin laden s son-in-law who we found out is awaiting civilian trial. how does that happen? i blame grit mow. the drones as exterminators exist solely to avoid saying you were wrong about the beauty of gitmo. what is gitmo? it s really just a remind they re there is evil in this world and evil needs a cage when it s caught. as world leaders kiss the dead hand of an anti-american pirate. north korea threatens annihilation and iran gears up for war it s time for the teenager in chief to grow up. and wise up. there is a big old world out there and it hates you. no matter how many apology tours he makes or how many heart-felt videos you send. eric, why new york city and cheaper flights than cuba? is that why they are bringing bin laden here? eric: no idea. this could be one of the biggest intel mistakes they made. once he lands here, once you read him his miranda rights it s over. he is here. he is going to get the full benefit of the legal system for defendants. there won t be any interrogation. it has to be a speedy trial. if you keep them in gitmo you interrogate him and find out what he knows and the other bad guys. the left is saying well, look at what they did with the underwear bomberror times square bomber. there is a difference here, though. this guy was caught in jordan and they brought him here. the other two bow sews were caught here, try bozos was caught here. bob: he was caught in turkey. the turks said they wouldn t turn him over to the united states. send him back to kuwait, his home country. somehow, we got on the plane in jordan and got him off. now, that is a big question, how that worked out. the other thing look this guy was not involved in 9/11. he was not operational for years. this is not something to be really scared of. eric: he was there when bin laden took credit for 9/11. necessary video of bin laden taking credit for 9/11. bob: but he wasn t involved in 9/11, correct? dana: they don t believe he was. they don t believe he was. that s correct. they don t believe he was one of the top operational guys. as i understand they didn t talk about taking him to gitmo. but they redid the soccer field. why not use it? i guess if they think that taking anybody there is inconsistent with the stated policy of closing it. if they have taken a political hit, why not take this person there? the two examples were the underwear bomber and the times square bomber. the buys were already here. in the united states. this goes back to what they want to do originally, bring chaimuhammad. andrea: the first thing eric holder did is push for civilian trials in new york city. the public went crazy. they walked it back. he hasn t closed gitmo, like he was before it before he was against it before he was before it. stay with the stated position. this now in midst of the drone dedebate makes people scratch their heads and go wait a minute. he has more rights. the same rights as an american citizen than somebody who they are pursuing they think is bad with the drone. andrea: they is driven wi the shadow of gitmo. bob: may i correct you on something? greg: please do. bob: you said obama is hated around the world. he s not hated around the world. greg: america is. bob: oh, i see. fine. i take the correction back. dana: you were before the correction before you were against it. greg: is loved and hated. loved by some and hated by others. bob, talk to you about the chavez funeral. you were invite and chose not to go. bob: no. i was on the list but so were you an eric. i don t know why you turned it down. it could don t it because of my thumb. greg: eric would pay for the flights. bob: he would to that. everybody get ahold of eric to see if they want to be traded. eric: thank you, ange for not saying something. andrea: i was going to hit you up for $100. bob: do you know how many people hit you up for the money now? eric: it s for the kids. andrea: it s for the children. greg: you know how many times i say that when i m arrested? bob: i think what is really important besides chavez not there, this is a important is moment in latin america for us. for the u.s. to redo strained relations it would be good for us. eric: he didn t strain the relations, bob. bob: no, no. i understand. i agree with you. i m not going to correct you either. what i m saying is i do think that there is possible you got big economies down there. not the least of which is brazil. venezuela is a place we can get oil. who takes over? eric: the other dictator. andrea: i don t know if the funeral is the appropriate place for diplomacy. this is the opportunity to honor and heap praise on him. if you look at the guest list. raul castro, daniel ortega. these are the guys they funded, that chavez funded with oil money from venezuela. the audiology is radical. greg: dictatortots. to use the phrase again he is going to lie in state forever. is that creepy? dana: when i m gone, i want to be puff of air. greg: fed to jasper? dana: no. andrea: you want to be cremated? dana: sure. i don t care. andrea: really? bob: whom bombed forever? eric: lennon. greg: why is it, we don t do that. why do some countries do that? it makes no sense to me. dana: that is how warped this is. psychological problems were built up over a generation. i love what you said. why is it the dictatortots for the poor, they create more poor. the allegiance to them lasts beyond their lifetime. eric: fear. bob: with the guest list, the c.i.a. will run out of bugs in the hotel room. i guarantee you there is covert activity out there. if you were there, they d do it, too. greg: jesse jackson is going to be there. shouldn t he spend more time with his son than a dead dana: only 15 hour, limited. greg: there you go. terrible. north korea, i want to talk about north korea. the issue is the threats, andrea, happen over an over again. we don t take them seriously. is it because we don t they re not credible so we laugh? andrea: we don t take any threat seriously nowadays. it doesn t have to be north korea. they brush everything off. i think this guy is a mad man. maybe we don t know as much as we did about his father. but assume the apple doesn t fall far from the tree. he is making serious threats. the chinese shouldn t laugh him off. this is a big deal. look, he is a nut, but you can t discount him. dana: i think our government takes it seriously. bob: this guy was supposed to be the better of the three generations. he was educated in the united states. liked basketball. apeered to be somebody more receptive to open up to the western ideas. he would haven t done it without the chinese okaying it. eric: absolutely. they enabled north korea for years. japanese are right across the peninsula. they are at risk. they can reach that. they may not be able to reach us with any of their nuclear weapons but there are areas ares that are very, very friendly that they could reach. tonight hold it past these guys to do something to one of the allies. greg: do you think dennis rodman made it worse or better. just a coincidence and he left and now it s getting worse? dana: cause and effect. bob: you didn t know rodman is graduate of the california technical. he s an engineer. he could tell him how to build a missile to get here. freddie i had no idea greg: i had no idea. north korea is greg gutfeld and america is dana perino. dana: and america is going to kick your greg: no. north korea is pulling america s pigtails. they are not going to do anything. eric: you just want her to like you? greg: they re irritating. andrea: what can we interpret from that analogy? greg: nothing whatsoever. dana: i have great hair. bob: it s our allies with the pacific rim of the threat. that s something we have to take in account. we have a treaty with south korea, right? 60,000 troops on the border. freddie we have to take greg: we have to take a break. it can t wait for the next segment. coming up, has the white house closed the doors for nation s devastating youth? will eric update the generous offer to keep white house tours up and running. next. stick around. [ woman ] my boyfriend and i were going on vacation, so i used my citi thankyou card to pick up some accessories. a new belt. some nylons. and what girl wouldn t need new shoes? and with all the points i ve been earning, i was able to get us flight to our favorite climbing spot even on a holiday weekend. things are definitely looking up. [ male announcer ] with no blackout dates, you can use your citi thankyou points to travel whenever you want. visit citi.com/thankyoucards to apply. eric: yesterday, i asked the president to reconsider his petty political maneuver of shutting down the white house, our house for tours. it offered to pay the cost of keeping it open because i don t want kids like this to be disappointed. the white house is our house. eric: eached out multiple time to jay carney today. this is what i heard. [ crickets ] eric: the american public is no longer welcome. bob, i put this out there yesterday. it s really gained steam. sean hannity jumped on board and said he would do the same thing. charles krauthammer, newt gingrich last night amount lot of people coming forward saying president obama, open the white house doors. what it s about? bob: i will put ten bucks in to it. [ laughte ] before you spend that money, don t forget my car. is it dumb? end of what i thought was too much of a campaign event. come around. do something like this. you get kids involved and they can t come do the white house? i can t think of a worst combination of things to leave yourself as vulnerable as you are. whoever thought this up, deserves to get a hit on it. because it doesn t make it. andrea: it seems like karma for a president who likes to use children in press conferences now. now it backfiring because the children are powerful when it comes to p.r. tactics. but look, they want to get a tour. what s worse is they should have backed off of this a long time ago. now it s just story after story after story. we learn things like bo, obama s dog has a handler for over $100,000 per year? what? dana: i think he does more than hand the dog. andrea: what else do you think he does? eric: i reached out to the press office. i spoke to the assistant. i e-mailed both of them. andrea: did they say who is eric bolling? eric: you think they don t know that the offer has been extended, especially since sean hannity said he would do a week? dana: as petty political maneuvers go. they can be matched hand for hand. if i were them, i would not i think they were smart not to respond. if i am them, but i to think that the press office was probably never consulted about the decision to close white house tours. or if they were. they didn t block it. then they deserve to lie in the bunk bed. bob: you think they re going to say yes, mr. bolling, you ve been such a big supporter, we ll take you up on the offer ? greg: i can only offer summer tours of the apartment. thto college age students. they won t disappear like last year. bill hemmers is offering to buy margaritas. eric: it sounds like you re defending obama. can we roll tape of the kids, the people, the last few that got white house tours. listen. i walked in there and i never felt like it was like the red target. i was like, i could be walking here some day. i feel pretty lucky. it s the last tour. i wanted to see the white house. i thought it was worth it. eric: you can make fun of it. but i think it s bad. dana: we re not making fun of it. eric: it s black eye to america that president obama shut the white house down. dana: i think everybody is agreeing they made a terrible decision and they should have said immediately like okay, wait. stop the bleeding but now they are basically like in the e.r. room. bob: we didn t say it s a good idea. it s a bad idea. if you work in the, who i didn t like the tours coming through, you couldn t get from one side of the house to the other. had to run with all the kids. andrea: what happens is when you made your offer, eric and sean hannity jumped on board. it made it worse. it set the story for another news cycle. again, more reason for them to back off. dana, you and i talk about this all the time. the b.p. oil spill, the huge public affairs, publicbe relations nightmares they seem to let it go and let it go. they have flo no. idea it s blown up. dana: i think the media gives them a free ride about everything. so they never think about it until they have to. case and point to the weekly standard piece. giving an award to a woman who was antisemitic. they let it go until someone caught on. eric: but they were smart enough to back off that. bob: let s not all dump on him because of this. he has a lot of play on. this he was re-elected president of the united states. andrea: we re jumping on him on this he chosen not to manager the sequester. he could and he said i will not do it. bob: how demanage the sequester? greg: the army tuition program suspended because of this and it affects 200,000 soldiers. that s brutal. it feels like it s arbitrary punishment. it has to be a great time be a criminal. you could do something horrible and they will blame it on sequestration. eric: look at the first full screen. $1.4 billion, the obama family cost the american taxpayers over the years. eric: oh about cut back on other things that they could have come back on. eric: do you think they should have closed the white house? bob: you are talking about the cost of them flying to colorado. andrea: the last five presidents didn t lecture us about getting skin in the game. bob: maybe he is running out of mojo here, but the fact is he beat everybody at this game. he has done a very good job. so far, he will be fine. dines you have a good accountant? the i.r.s. is going to call you soon. bosto eric: cue the violins and grab kleenex. joy behar is leaving the view. how will we go on? anyway, our goodbye to the goodbye girl next on the five. [ instrumental ] [ boy ] i used to hate eating healthy stuff. but badger likes it, so i do too. i used to have bad dreams, but not anymore. [ barks ] i used to be scared of the basement. but when badger s with me, it s not so bad. [ barking ] [ announcer ] we know how important your dog is to your whole family. so help keep him strong and healthy with purina dog chow. because you re not just a family. you re a dog family. andrea: the view is changing in new york city. that s right. talk show host joy behar after 16 years time for her to mouth off somewhere else. she told deadline.com she wants to do an intelligent talk show in the future. say it isn t so. so, robert, i know you are so upset about this. you have been crying until we went on the air. bob: able to pull myself in here today as a result of this. by the way, intelligence the intelligent talk show for her is what they really do call an oxymoron. i think that, look, she is liberal. i like that. most of them are on the show. but if you get in detail of the politics, understand policy, no. eric: some people think you are joy behar without the wig. bob: i have heard that before. canes is a comply meant to you. andrea: she has words for the five. checkly, greg gutfeld. i don t know if you are a fan of the view but looks like joy has been watching you. why do i have to be so nasty to us. the guy, greg greg on fox. his gre greg gutfeld. it s better for o to talk foreign policy than thed bydies on the view. i have ad bydd a biddy for y. come see me. greg: i love whoopi. first, chavez, now behar. a bad week for communists. when you are around people who agree with you constantly you say stupid things because no one is saying shut up. maybe she finds new friends. andrea: i thought she took a slap at her co-host and the show in general that employed her for 17 years. i want to do an intelligent show and talk about smart things. dana: i think it can be read that way but i doubt that is how she meant it. she is one of the only original members of the show. eric: on the way over here, us weekly is reporting that elizabeth hasselbeck is leaving as well. andrea: her contract is up. eric: who is left? andrea: i think she was funny. she was good. in the last couple of years she is too partisan. too bitter for the morning. greg: sad day for america. like when mickey dolans left the beatles. the view won t be the same. andrea: speaking of bitter, chris ma chews have words for republicans matthews has words for republicans take a look. obama is perfect american. went to school, never broke a law, wonderful family, good husband and good father. i don t think he got a speeding ticket. the guy does everything right. the right wing, and he has been moderate on guns until the horror of newtown. i don t newhat they are afraid of except he happens to be black. why play the race card? there is no perfect american. greeses he is a kel vin for crazies. dana: i feel bad for him. greg: seems like a nice chap. dana: i don t know. he has lost it. bob: the truth in telling here he is a friend of mine and i enjoy chris. he has a good deal of political background and knowledge. you may not like his politics. he was with speaker o neil for many years. andrea: why the insults? bob: he hates republicans. eric: you said it s a good political analyst. bob: no, i said he was a good politician. that is different. eric: he is a terrible journalist. he is bias. no two sides. president obama wait. president obama is a perfect american? a guy never held a job that wasn t paid for by a taxpayer or tax largest? a guy that caned himself s? that is a perfect american? bob: are you showing your bias here? you ore an impartial source on this opinion. andrea: no one looks to chris matthews for fair and balanced news. why go to the racecard? president obama is re-elected and elected. move past this. why do they play the race card? dana: a couple years ago i went to one of the many opportunities that the press give themselves to give themselves awards in washington, d.c. he was keynote speaker and he started out by saying it was important to return civility to political discourse. it snickered in the background. my husband is a cough b.s. things and i kicked him under the table as well. he might be a good guy, but i think that if you are going to be the guy on tv, i wish he would be the same person. then not lecture people about political discourse. dana: he was calling on everybody to purn to time of civility. jo president obama lectured that andrea: president obama lectured that thing but he wide toed the american so he is not a perfect american. bob: as much as i abhor this, some of this on the racecard chris believes. it s something that comes outsy. what it is. he believes there are elements of the republican party are racist an out to get obama. andrea: is he racist when he goes up against republicans like tim scott? bost no. what is that about? how about going after women. is that sexist against republican women? bob: no. playing out the policy. andrea: no one plays cards on the other side. nobody does? andrea: i don t hear the right standing up using the race card or the sexist card. bob: how about calling what s her name a slut? andrea: and they say the horrific things. dana: who? bob: what s her name? eric: he apologized. and made a long andrea: that wasn t right either. how about that? ahead, a red light camera really about public safety or a sneaky way for the government to make money? that debate ahead on the five. 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[ female announcer ] secret outlast clear gel is better than the next leading invisible solid on white marks. secret outlast clear gel. is better than the next leading invisible solid on white marks. have given way to sleeping. tossing and turning where sleepless nights yield to restful sleep. and lunesta®(eszopiclone) can help you get there. like it has for so many people before. when taking lunesta, don t drive or operate machinery until you feel fully awake. walking, eating, driving, or engaging in other activities while asleep, without remembering it the next day, have been reported. lunesta should not be taken together with alcohol. abnormal behaviors may include aggressiveness, agitation, hallucinations, or confusion. in depressed patients, worsening of depression, including risk of suicide, may occur. alcohol may increase these risks. allergic reactions such as tongue or throat swelling occur rarely and may be fatal. side effects may include unpleasant taste, headache, dizziness, and morning drowsiness. ask your doctor if lunesta is right for you. then find out how to get lunesta for as low as fifteen dollars at lunesta.com. there s a land of restful sleep. we can help you go there on the wings of lunesta. ÷÷ michael, tell us why you used to book this fabulous hotel? well you can see if the hotel is pet friendly before you book it, and i got a great deal without bidding. and where s your furry friend? oh, i don t have a cat. now you can save up to 50% during priceline s spring hotel sale use promo code spring for additional savings on all express deals, including pet friendly hotels. express deals. priceline savings without the bidding. at od, whatever business you re in, that s the business we re in. with premium service like one of the best on-time delivery records and a low claims ratio, we do whatever it takes to make your business our business. od. helping the world keep promises. i m chris wallace in washington. the big story here today is better than expected february jobs report. tonight on special report, the unemblement rate drops to 7.7%. as the economy adds 236,000 new jobs. that happened despite the worry a hype ahead of the march 1 sequester of $58 billion in spending cuts. the son-in-law of usama bin laden was araped today in federal courtroom in new york. sulaiman abu ghaith pleaded not guilty to conspiracy to kill americans. north korea is issuing more threats following the-up security council decision to impose new sanctions. yesterday, the communist nation warn of a nuclear strike on the u.s. we ll take a close look at president obama s new outreach to republicans. the g.o.p. says that the welcome change but the white house says no change at all. special report from washington starts at 6:00. now back to new york and the five. dana: welcome back to the five. red light and speed camera. the up side and down side. bob has a theory. it improves safety but the others think it s a scam. in six months $1.5 million fines were collected in a town in ohio, town of 101,000 people. everybody got a ticket and paid it. bob: congratulations to the judge. whoever came up with the idea to put this in is close to fascism as you can get. you drive by the things. first, they send you a thing in the mail saying you owe us $140. they send a picture of the car. they don t know if you re driving the car. how do they know? you could loan it to your neighbor. they send a picture of you with a women and say pay $10,000. [ laughter ] i don t like cameras in my business at all. particularly in my business at night. this is all about collecting revenue for towns, because they don t, can t figure out another way to do it. ridiculous. dana: i used to get tickets in d.c. all the time, onramp for south 95. when you are getting on the highway is when you have to accelerate to be safe when you get on the highway. i always pay. that is one of a thing i am not a big wheel. i have a barbie car. in your hometown, chicago, a lot of corruption there. and just last, about a couple of weeks ago they found out that the australian company that has a lot of the speed cameras all across america, get 40% for every ticket they send out. what is happening is somebody like me pays a ticket right away. other people don t pay the ticket. to make up that re-knew instead of waiting for those guys to go to court, they just send out more tickets. eric: you can basically do it on every corner, raise the number of tickets. here is the problem, though. it s not for me. i m for these. andrea: you are? eric: yeah. if you want to break the law, pay for it. you want to play, you got to pay. i got nailed by so many of these cameras, you no idea. dana: you pay right away? eric: they got your license plate. say my wife is driving? by the way, i have to pay for her anyway. if it s not my wife i m in more trouble than a speeding ticket. i think that they do, they reduce crime. think twice before i speed on the street. dana: in all of my research today a lot of cities think it has helped safety. however, some people think it caused more accidents. bob: rear end collisions. dana: ever got one. greg: yes. bob: you don t drive. greg: years ago oddly enough dressed at santa claus doing a segment on going to santa school. the photo of me was in a santa claus outfit. [ laughter ] dana: not an elf? greg: no, not an elf you crazy person. this is taxation disguiseed as safety. the red light camera is a democratic drone of a way to pick your pocket. the government find way to pick your pocket, they will. eric: if you don t break law, they don t tax you. greg: a lot of these people aren t breaking the law. a lot of the cars aren t moving. dana: they don t know that you were the one in the car. what if your neighbor borrows the car? andrea: i hate these cameras. but i actually, i agree with you on this one. they only take your picture if you are violating the law. they don t take your picture if you are doing bob: no. andrea: behind the wheel. if you peer chair dancing to katy perry, they don t take a picture of that. chair dancing? you never danced in your car while you drive? one thing you probably haven t done in your car. bob: can you get a picture of gutfeld with the santa claus? first, the problem with that is no kid can sit on your lap without greg: the worst experience of my life. i was on the turnpike leaving a mall in philadelphia. i made a u and they took a picture. dana: one of the accusations is some of the cities have shortened the yellow light. bob: absolutely. dana: to catch more people running a red light or speeding. andrea: i don t like. then they are nickel and diming you in to complete submission. i do there is safety benefit to them. they get me to drive slower. dana: they cause people to leave certain neighborhoods. if they know they are there, they won t frequent stores in the area so it has unintended consequence of hurting the economy of that neighborhood. bob: what else they do is lower the cameras and they lower the speed. if it s 35, they will drop it to 30 just to catch more people. i m telling you. eric: if you stop breaking the law you don t worry about the cameras. bob: you ought to break the law and not have your picture taken. andrea: have you seen the cameras on new york city that take pictures even if you aren t doing something wrong. dana: the person in chicago got accepted for taking bribes would get a kickback for putting cameras around the city. a lot of cities are deciding this is, just not the way for them to go. eric: chicago has done a lot of things wrong that. that 40% number came up with the parking meters. some of the parking lots. kickbacks. dana: some of the most expensive parking in america. bob: remember when they had the don t turn on right? washington, d.c. that happened. mayor for life, marion barry turns out i can t figure out why the streets middle of nowhere. you could make a right, but turns out his brother-in-law owned the company that made the sign. dana: that is convenient. bob is on the side of all of us breaking the law. coming up, don t forget, time to spring forward sunday and move clocks ahead an hour. we have a history lesson on that when we come back. 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[ flo speaking japanese ] [ shouting in japanese ] we work wherever you work. now, that s progressive. call or click today. bob: it s hard to believe the first day of spring. not officially but the first day of spring is a week away. we are going to have snowstorms, in parts of the country. it s been rainstorms, all kind of stuff. do you know we spring forward this weekend? we spring forward this weekend. never mind. clocks are pushed ahead a hour. even i m sure is for this. when i was drinking, i wasn t for it. because you were exposed too much of the day. but it does help a lot except when you get up in the morning it s dark. eric: yeah you don t get up that early. [ laughter ] eric: it s lighter later. that is great. next week we will have light background the whole show. bob: does anybody know why they want to daylight s saving time? eric: harvest? bob: yeah. harvest. dana: benjamin franklin floated the idea saying people would be more productive if they had light later on. bob: and equipment like greg with the combine that does corn. freddie the worst thing about this is greg: the worst thing about that is at a bar at 1:00 and it goes to 2:00. you re screwed. i don t think they turn it forward enough. they should do 24 hour forward. when it s monday it s sunday. sunday is saturday. friday it s saturday. saturday it s thursday. dana: you re going backward. greg: when you spring forward, you are going backwards. you go forward and you are really going backward. dana: i don t get it. andrea: i love this. it feels like spring in theylight forward. bob: love is in the air. spring time. they moved it up because of the energy costs. it used to be in april. move up three weeks. if you get up and go to school, early in the morning, you are driving in the o-tark, what. right o- dark-whatever. eric: i am amazed you are getting five minutes out of daylight s savings. greg: i have to say it s great. eric: you are doing fantastic. greg: i am affected by darkness. in winter i m depressed. once it happens i m happy. dana: in the winter i don t mind because then i have a good excuse for how early i go to bed. bob: what is that? sars? andrea: sad. season affective disorder. i have it. bob: you do something when i was drinking i got up at 6:00 in the afternoon it was light for three hours. get the chores done. get to the video store and liquor store. to the dealer. andrea: renting bambi. bob: of course. one more thing is up next. we did do that for one segment. thank you. i m the world s worst cleaning lady. i m here in your home, having a pretty spectacular tuesday. but i don t notice the loose rug at the top of your stairs. and that s about to become an issue for me. and if you got the wrong home insurance coverage, my medical bills could get expensive. so get allstate. [ dennis ] good hands. good home. make sure you have the right home protection. ta4ñyñ9s÷xq and you see the woman you fell in love with. she s everything to you. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment s right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. greg: still talking about daylight s savings time. [ laughter ] that electrifying. it s one more thing. let s just get it over with, first with dana. dana: okay, i m glad you came to me first. i appreciate that. i was gone the last couple days. i got to go to houston and i saw president bush 41 and mrs. barbara bush. both doing very well. and so that was very special. then i got to go to the houston rodeo. i got to see dierks bently, my favorite country music star. and his guitar player brian lason. and he later tweeted something i wanted to read to you, especially for bob. we have that tweet up. i think it s coming. here it is. cool meeting dana perino at the show. please extend my fandom to the rest of the five crew. yes, even bob. with a smiley face. bob: thank you. dana: we get that a lot. even bob. greg: it s troubling when adult men end messages to smiley face. dana: no, it was to me. that s a way to communicate with me. you could learn. greg: it s emasculation of the society. dana: you would know a lot about the emasculation of society. greg: i try to do it every day. andrea? andrea: jimmy kimmel, who i love, had fun with a segment he calls lie witness news. he sent a reporter out to ask folk what is they think about the new pope. take a listen. very funny. bob: what new pope? what do you think about the new pope? i think the new pope is amazing. from new york. where were you when you found out about him? actually, i was on facebook. one of my church friends. did you see the interview with the pope s eck wife? yes. what did you think of that? she was hilarious. what s his name? pope. the new pope. andrea: pope, the new pope. i also asked what do you think about the fact he s jewish? very, very funny stuff. greg: stole my joke. andrea: there is no new pope. greg: i said we should have a muslim pope. some people thought i was serious. bob: they are going to not what do they call it? dana: conclave. bob: next week. andrea: tuesday. dana: that will be rivetting television. bob: right. burn the thing and look for the white or black smoke. i know a lot about this city. do like the new pope myself. greg: stop it. bob, you are