driving. check this out. these are pictures taken with folks at a gas station in altoona, pennsylvania. that is a long time. the longest part of the trip is pennsylvania. she is in a three-car three-car caravan. her first order of business is providing a rationale for her run. we will have more from jeff zeleny. reporter: good morning. hillary clinton is now finally a presidential candidate. she formally entered the race on sunday afternoon in a video message to her supporters. there were no big policy proposals or campaign promises but what she calls a conversation with voters. it was about fighting for the voters. let s take a listen. i m get getting ready to do something, too. i m running for president. americans have fought their way back from tough economic time but the deck is still stacked in favor of those at the top. every day americans need a champion. so you can do more than just get by. you can get ahead and stay ahead. because when families are strong america is strong. so i m hitting the road to earn your vote because it s your time and i hope you ll join me on this journey. reporter: she will hit the road on tuesday in iowa doing a stop in eastern iowa spending the night and doing another stop in central iowa on wednesday. then likely to visit new hampshire late neither weekr in the week. those are the two states that are key to the primary. she is meeting people one-on-one and trying to win over the people she will need in the primary fight. she will travel to south carolina and nevada and other states before delivering a more formal announcement speech in may. now we know she finally is running for president, she must explain why she wants to be president. that is her burden now. john and christine. jeff, how she will do it differently. in 2008, she had a chance. it is already different. she says i m in it to win it. this time she is trying to make it about you. she didn t appear in her her official announcement video until minutes in. and sunday republicans tried to stop her spotlight. jeb bush is exploring a presidential run. in a video from ted cruz warned a clinton victory would amount to a third obama term. and rand paul could not think of a single thing hillary clinton as secretary of state he approved of. is there an area where you think hillary clinton was impressive as secretary of state? i think the issue in benghazi is an enormous issue because it is whether or not as commander in chief she would be there for the 3:00 a.m. phone call. i think benghazi was a 3:00 a.m. phone call she did not pick up. not just that day, but nine months requests for security completely ignored. did she he do something that was good? i was trying to get through things that were not good and were good. i m not certain of that. hillary clinton says when it comes to the economy, the deck is stacked for people at the top. she hammered george bush on jobs and wage growth and income and inequality in 2008. wage growth is the economy s sore spot. recovery sore spot. she has to be careful not to distance herself from president obama. she in her talking points pointing out 11 million jobs created under this president. what about the millions from wall street? will she try to distance herself this time around? try to change the perception of bankers who helped her in 2008. others like elizabeth warren want more bank reforms. not the only thing happening in the political world today. a republican contender will make it official. marco rubio is announcing the run for president from the freedom tower. his parents were born in cube a. two other republican senators ted cruz and rand paul have officially jumped into the race. cnn will have live coverage of the announcement at 6:00. a small group of protesters from ferguson missouri have traveled to south carolina to plan peaceful protests against police brutality. the first protest outside north charleston city hall. the protests are a response to the fatal shooting of the unarmed black man fleeing a police officer. the officer michael slager now in jail facing murder charges. this comes as north charleston remembers the shooting victim 50-year-old walter scott. more from correspondent pablo sandovol. reporter: john and christine, a weekend of tributes for walter scott s family. it started with emotional moments as they gather to lay their loved one to rest. on sunday separate tributes. a memorial service for mr. scott and vigil at the location of the shooting itself. sunday he also got to hear from the mayor of north charleston for the first time since he made comments following the shooting. he maintains he is still appalled after seeing the images we are all now familiar with. in a 2.7 second time destroyed the life of two families. reporter: the mayor went on to say he is waiting for the report that will be put out by state police. you will recall that local authorities in north charleston handed over the investigation to s.l.e.d. the south carolina law enforcement division. as for former officer slager he is isolated behind bars ahead he have the bond hearing. his case could end up in front of a grand jury next month. thank you, pablo. this morning, the white house is defending the framework nuclear deal reached with iran. after senator john mccain questioned how honest secretary of state john kerry has been about the details of the agreement. senator mccain s criticism triggered response from the president himself. we have correspondent sunlen serfaty with more. reporter: the bickering with president obama and senator john mccain stems from the differing interpretations of what is actually in the nuclear deal with iran. iran s supreme leader is saying one thing. the u.s. officials are saying the other. they are at odds over sanctions and inspections. senator mccain is stating in a radio interview calling into question secretary of state john kerry s honestly and delusional to sell what he called a bill of goods about this deal. those comments seem to strike a chord with president obama. here s what he said at a press conference in panama over the weekend. when i hear some like senator mccain recently suggest our secretary of state john kerry, who served in the united states senate a vietnam veteran, is provided exemplary service to this nation is somehow less trust worthy in the interpretation of the agreement than the suepreme leader of iran. reporter: senator mccain responded posting this tweet to twitter saying quote, so president obama goes to panama and meets with castro and attacks me. i m sure raul is pleased. i think president obama spoke powerfully to senator mccain yesterday. i ll let the president s words stand. i also stand by every fact that i have laid out. it s an unusual affirmation of our facts that come from russia. russia has said what we set out is reliable. reporter: this sets up what will be a testy week ahead for president obama and congress. they are back today for the first session since the deal was announced. christi christine and john. the united states is expanding the role in the saudi-backed mission over the fight for yemen. they are trying to search shipping and intercept arms heading could yemen. the obama administration is concerned that the casualties could create resentment among the people of yemen. and this morning, isis is on a rampage in iraq. releasing new video of fighters destroying the ancient nimrud site near mosul. the video shows them knocking down walls and destroying artifacts and blowing up buildings. the pentagon is protesting what it calls an aggressive unsafe maneuver by a fighter jet over the baltic sea. an air force plane was flying in international air space and intercepted last week by a russian su-27. the pentagon warns these actions could escalate tensions with the united states and russia. russia accuses the u.s. of approaching its air space with an electronic transponder signal. given all that has happened in the past year you don t want that happening. her son guilty on all charges, but boston marathon bomber dzhokhar tsarnaev s mother is not buying it. who she blames for her son s crime next. t-mobile is breaking the rules of wireless. and the samsung galaxy s6 edge is breaking the rules of design. can t get your hands on it because you re locked down by a carrier? break free t-mobile will pay every penny of your switching fees. get ahead of the curve and get your hands on the galaxy s6 edge for $0 down at t-mobile today. a boston jury will reconvene next week to determine if boston marathon bomber dzhokhar tsarnaev should be sentenced to life or death. tsarnaev s mother is saying both of her sons are innocent and calling americans the terrorists. cnn s matthew chance is live in moscow for us this morning. she has been a complicated figure from the very beginning. she has long said her sons did not do it but the u.s. deserves it. reporter: that s right. she lives in dagestan. a republic in the south of russia. she is defending the actions of both her sons and condemning the united states for what has been alleged as conspiracy to implicate them in the bomb attack in boston in the marathon in 2013. she has come out in comments attributed to her on russian social media sites. a long rant in russian by her. it is all written in capital letters and exclamation marks. she says my son is in the grips and claws of a predator which is preparing to tear her to pieces like meat. she blames the united states for killing muslims and saying it is not just her sons being killed but all to the religion of islam as if they were insects or dangerous beasts. she is saying the united states is the real terrorist in all of this. an impassioned plea about the innocence about her son dzhokhar tsarnaev. at a time where the jury in boston will have to decide a life-or-death decision about his fate. her comments, matthew, don t make her condition sympathetic. sounds like the rantings of dzokhar and his brother when they were planning all this. she said she wished she never left dagestan and come to the united states. did she raise the boys here or she left them here right? reporter: they lived in the united states for a long time. she left the united states a year or so before the bomb attack took place. she was on a shoplifting charge and took off to dagestan where she now lives. in the past she told officials she wished she never gone to the united states. if she stayed in dagestan none of this would have happened. thank you, matthew. jury deliberations resume in the massachusetts trial of aaron hernandez. the jury spent nearly 20 hours so far deliberating the fate of the former nfl star of the death of odin lloyd. flash flooding danger across the south today. let s bring in meteorologist pedram javaheri for an early look at your weather. pedram. john and christine, good morning. hope you had a fantastic weekend. the active weather across the southern and central portion of the united states. nearly 700 lightning strikes across the plains. and the watches in new orleans and tallahassee watching for the significant rainfall in the forecast today. you see why looking at the moisture content. they are plentiful across texas. that is the same stream of moisture that exits from san antonio and houston. by sunrise, it gets there by panama city. hopefully spring breakers in the region. the warm and humid air locked in across the eastern half of the country. possibly up to 7 or 9 inches of rainfall by the end of the week in east texas and southern louisiana. temperatures should be seasonal. upper 70s and stunning weather across the northeast at least for monday with the 60s and 70s. thanks pedram. so you know what looks good in anyone 21-year-old s closet? a green jacket. the most special green jacket there is. jordan spieth now the owner of a green jacket. it fits perfectly. andy scholes with the details in the bleacher report next. if you s with type 2 diabetes, 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national. jordan spieth is the 2015 masters champion. andy scholes has more in the bleacher report. i worked in dallas when jordan spieth was a teenager. we were discussing how many majors this 17-year-old kid would win one day. spieth is on the board with the first major in record setting fashion. spieth the first person in 40 years to lead the masters from start to finish. at one point yesterday, he got to 19 under par. the only person to ever do that. spieth is the youngest masters champion since tiger woods in 1997. after tapping in he embraced his parents and got his first green jacket from bubba watson. to sit with this jacket on and be part of the history in augusta was something i watched slip away last year. had a chip on my shoulder but then it all came together at the right time. tiger woods did not finish in the top ten, but return to action was a success. he finished tied for 17th. the best finish in more than a year. tiger slammed his iron into a tree root and dislocated his wrist. he said he was able to pop it back into place, but it is sore. it will keep him out of action. pacers and thunder facing each other last night. both fight firing playoff spot. paul george throwing down a dunk after returning from the broken leg last summer. he had 8 points in 14 minutes. russell westbrook scored 54 points on 43 shots. the thunder lost 116-104. we are less than three weeks away from mayweather and pacquiao set for may 2nd at mgm grand. pacquiao will enter the ring to his own song called i m fighting for filipinos and the music video is out. take a look. guys when you see pacquiao singing like this it is hard not to root for him come may 2nd. shows you why he fights. he needs a day job. the singing thing, i don t know about it. he sounds all right. he sang this to me in person at the pre-fight press conference in los angeles. it melted my heart a bit, john. a very lovely message. a lovely message. i know the intent is there. let s leave it at that. andy scholes, great to see you. hillary clinton in it to win it again. right now, she s on a road trip on her way to iowa. can she create a connection voters who did not support her last time? we are breaking it down next. the beautiful sound of customers making the most of their united flight. power, wi-fi and streaming entertainment. that s. seize the journey friendly. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what s up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. when you re living with diabetes steady is exciting. only glucerna has carbsteady clinically proven to help minimize blood sugar spikes. i m a bull rider make it part of your daily diabetes plan. so you stay steady ahead. running for president and on her way to iowa. the hillary clinton road trip. look at this. snapping photos at a gas station in pennsylvania. she is driving or being driven to iowa as we speak. all this happening as a new high profile republican candidate gets ready to enter this race. welcome back to early start. i m john berman. i m christine romans. it is 30 minutes past the hour. breaking overnight. road trip at this very moment. hillary clinton in a three-car caravan driving to iowa. she snapped these photos as she headed west. the announcement for candidacy came in a video. mrs. clinton barely appeared in the video. when she did, this is what she said. i m getting ready to do something, too. i m running for president. americans have fought their way back from tough economic times, but the deck is still stacked in favor of those at the top. every day, americans need a champion. so you can do more than just get by you can get ahead and stay ahead. when families are strong america is strong. so i m hitting the road to earn your vote because it s your time and i hope you ll join me on this journey. all right. not the only political game in town. later today, marco rubio will announce his run from miami. here to break all of this down with us is political analyst ron brown. ron, great to have you here on early start. great to be here. let s start with the pictures from the gas station in altoona, pennsylvania. the road trip to iowa. driving there. we did not know that was happening. it continues the pattern. this announcement gave us a lot more information than people expected. told us about how she plans to run. the idea that she will receive and listen to the public. it told us about the themes she would run on. every day americans, opposed to middle class americans. the deck is stacked at the top. last time it told us who she expected us to elect her. the first 90 seconds of the video was the panorama of the modern coalition. we actually got a lot of information and road trip very much continues in that vain. we will see hillary clinton interacting with ordinary people. you, you, you. not i want to win. she talked about inequality. you talk about the wages in 2008. exactly where they are today. there has been an economic recovery but not everybody has felt. she will tap into the middle class anxiety of voters. and the median income is lower than 2000. unprecedented. all of the candidates will say how they can fix it. the challenge democrats have is they want to point to the positive aspects of the record. you are beginning to see, last month notwithstanding, steady job growth. it is possible that the economy will produce ten times more in obama s economy over bush. she can point back to the late 1990s. that increase is not enough. ultimately ultimately, her biggest challenges. she did not mention a thing about her husband. what is her message? exactly. the clinton campaign, they are officially a campaign. they are concerned about the high expectations on the candidate. how did she do with the video? what does she do to keep them in check? she succeeded in surprising the press. the video, most people were surprised. the video is not your typical announcement video, camera front and center on me. she came into it more than a minute and a half in. the focus being on the panoramic change in america. she was trying to identify. that is her greatest asset as a candidate. if you look at 2016 the playing field, the challenges on the economy, the challenges on foreign policy. the biggest asset democrats have is the electorate continues to evolve in this direction. they are evolving much more than republicans are at this point. having said that she has to be on the public stage over 20 years and her age all add up to the same challenge. do you have answers for the ways people are dissatisfied with what is happening in the country now? after eight years, as you know the usual instinct of voters is it is time for a change. she has a small karacaravan of cars. driving to iowa. last time the cars all collided. it is not a big fancy bus. this is the whole stripped down message. internally, the message is we are not having the big drama. clinton world is a big place. this time they are trying to stream line it. and former white house chief the staff for decline and advisor for president obama, they have someone opposing order. we will see if they have the discipline to follow the order. let s talk about marco rubio. not at the top of the field, but in the middle pack right now. a guy with serious credentials. he is announcing tonight in miami. what to look for there. with rubio, you have someone who has the potential at least to draw from the different pools of the republican electorate. jeb bush is the manager side. white color. you have a whole bunch of candidates competing for the populous conservative sides of evangelical and tea party. scott walker and marco rubio have the potential to draw from both sides of that. that can make them formidable. he supported a pathway to citizenship in the 2013 legislation. he may be between or he may be a bridge. he may be everyone s second place. still too early to tell. ron brownstein thank you for being here. a small group of protesters has arrived in north charleston from ferguson missouri to plan peaceful protests against police brutality. the first outside north charleston city hall. the protests are a response to the fatal shooting caught on video of a man fleeing a police officer. the police officer, michael slager, now in jail facing murder charges. more now from pablo sandovol. reporter: john and christine, a weekend of tributes for the family of walter scott. it started saturday morning as they gather to lay their loved one to rest. on sunday separate tributes. a memorial service for mr. scott and vigil at the location of the shooting itself. sunday we also got to hear from the mayor of north charleston for the first time following the shooting. he maintains he is appalled over the images. in a 2.7 second time destroyed the life of two families. reporter: the mayor also went on to say he is waiting for the report that will be put out by state police. you will recall local authorities here in north charleston handed the investigation over to s.l.e.d. the south carolina law enforcement division they wanted to make sure the investigation will be fair and impartial. as for former officer slager he remains isolated behind bars ahead of his bond hearing that may be held here soon. also his case could potentially end up in front of a grand jury next month. john and christine. this morning, the white house is defending the framework nuclear deal reached with iran after senator john mccain questioned secretary of state john kerry. that triggered a response from president obama himself. international correspondent serfaty has the latest from the white house. reporter: the bickering stems from the differing and competing interpretations of what is actually in the nuclear deal with iran. the iran supreme leader is saying one thing. the united states is saying another. they are at odds over sanctions and inspections. in a radio interview, he is calling into question secretary of state john kerry s honesty. saying kerry is delusional for trying to sell a bill of goods about this deal. this seems to strike a chord with president obama. here s what he said. when i hear some like senator mccain recently suggest our secretary of state john kerry, who served in the united states senate a vietnam veteran, provided exemplary service to this nation is somehow less trust worthy in the interpretation of a political agreement than the supreme leader of iran, that s an indication of the degree to which partisanship has crossed all boundaries. reporter: and mccain responded with this tweet, so president obama goes to panama meets with castro and attacks me. i m sewer raul s pleased. i ll let the president s words stand. i ll stand by every word i laid out. an unusual affirmation of facts. what russia set out is reliable. reporter: this will set up a testy week for president obama and congress. they are back for the first time since the deal was announced. facing a death sentence in the boston marathon bombing, dzhokhar tsarnaev s mother is lashing out. calling out her son is the best of the best. insisting her son is innocent and saying the united states deserved it anyway. kellogg s® frosted mini-wheats®. have 8 layers of nutritious wheat. and one of delicious sweet. to satisfy the adult.. and kid - in all of us. 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i did not. i did not ask you, christine, you have a tool like that called a husband. hillary clinton is in for president. we will take you deep on the unique challenge that is hillary. different from any other that is running? what do people want in politics? new. that is hard for hillary clinton to give you? we will take you through it. who is out there to give her a run for the money? we have a great panel. also more charges are coming after the police shooting in south carolina. how about the other officers? how about the federal investigation of any potential cover up? is that going on? what about what we heard about efforts to save lives? this is in the context of other cases going on john and christine. we will show the trending patterns in excessive force cases. what happens too often? thank you, chris. look forward. isis releasing new videos. fighters destroying ancient artifacts. priceless things that cannot be replaced. we are live with the latest developments next. ist about a biologic. this is humira. this is humira helping to relieve my pain and protect my joints from further damage. this is humira giving me new perspective. doctors have been prescribing humira for ten years. humira works for many adults. it targets and helps to block a specific source of inflammation that contributes to ra symptoms. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal infections and cancers including lymphoma have happened, as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure. before treatment get tested for tb. tell your doctor if you ve been to areas where certain fungal infections are common, and if you ve had tb hepatitis b, are prone to infections, or have flu-like symptoms or sores. don t start humira if you have an infection. talk to your doctor and visit humira.com this is humira at work [ laughing ] want to play hide and seek? 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[ mom ] still counting. isis on the attack in iraq. releasing new video of the fighters apparently destroying the ancient city of nimrud. the video shows the fighters breaking down walls and destroying artifacts and exploding buildings. we have cnn s frederik pleitgen with more. fred this seems like a propaganda message. another from isis. reporter: exactly. another brutal propaganda message. when we heard the site in nimrud was attacked we thought it was bulldozers they used and part of the site may have survived. seeing this video, it is clear things are worse than anybody could have thought. they used heavy equipment, sledgehammers and bulldozers to take down ancient walls and statues and then actually blew the place up. this is certainly something that is a lot worse than many people thought. it does fit also into a pattern of what isis has been doing in places. that they conquered in the past. they destroyed important scriptures in the library of mosul. they destroyed ancient artifacts in mosul. destroyed other archaeological sites. this one is more than 3,000 years old and one of the most important archaeological sites in iraq. the isis fighters by the way, on that video, say they are actually proud of what they are doing. say this is in line with their interpretation of islam. the u.n. says this is nothing short of a war crime. john. pointless. frederik pleitgen thank you. protesters packing the streets and cities across brazil and they promise more to come. calling for the impeachment of the brazilian president. police estimate 275,000 demonstrators marched in sao palo sunday. this is fueled by a corruption scandal. huge protests. stocks have been climbing for six beautiful years. could there be any room for this thing to run? where stocks are headed. that s next. all these networks keep making different claims. it gets confusing. fastest, the strongest the most in-your-face-est. it sounds like some weird multiple choice test. yea, but do i pick a, b, or c. for me it s all of the above. i pick, like the best of everything. verizon. i didn t. i picked a. maybe c. and how d that work out for you? not so well. can i get a do-over? why settle for less when you can have, well, everything. and get 2 lines for $100. verizon. know your financial plan won t keep you up at night. know you have insights from professional investment strategists to help set your mind at ease. know that planning for retirement can be the least of your worries. with the guidance of a pnc investments financial advisor, know you can get help staying on track for the future you ve always wanted. it tastes better when you grow it. it tastes even better when you share it. it s not hard, it s doable. it s growable. get going with gro-ables. miracle-gro. life starts here. let s get an early start on your money. the six-year rally for stocks still has room to run. that s according to a new cnn money poll. the pros think the s&p will climb to 2,155 by the end of the year. a 3% gain from here. a 5% return for the year. the s&p rose 30% in 2013. another 11% last year. college educated workers produce most of america s economic output. according to a study from georgetown university those with college degrees make up 32% of the work force, but produce half of the economic output. the report highlights two extremes. low wage retail jobs and high wage jobs with college educations. nearly 1 million people ordered an apple watch on friday. on average, people ordered more than one watch. that must mean somebody got up at 3:00 in the morning. 2/3 of shoppers went for the sports watch. i tried on that s not the one. i tried on the one. what did it look like? it looked like something i would not buy. by the way, if you want to find out more i bought it. it came. i m excited. on amazon. go out and get it. hillary clinton, she has announced she is running for president. she is on a road trip right now driving to iowa. new day has details starting now. i m running for president. every day americans need a champion. i want to be the champion. hillary clinton is not trust worthy. i think she would be an excellent president. the clintons feeling they are above the law. hillary clinton is going to be the champion for american families. in the name of walter scott, we can change this government. a 2.7 second time destroyed the life of two families. pope francis opening a century old wound. described it as the first genocide of the 21st century. the pope is not the only one who called this a genocide. announcer: this is new day with chris cuomo. good morning. welcome to new day. 6:00 in the east. hillary clinton is in. she is also off we will tell you why her announcement video surprised insiders but wowed the rest of you. it was viewed 3 million times in just the first hour. so hillary has the ped degree the money, the hour and a ton of critics and they re sounding off this morning. the rnc has a particularly ominous one that we ll show you. ted cruz characterizing a potential clinton presidency as a third obama term. jeb bush echoing that message and rand paul launching an entirely new portion of his website opposing clinton positions. all this as senator marco rubio declares his candidacy today. we have this race covered. the way only cnn can. let s begin with senior correspondent brian na keeler. reporter: good morning. hillary clinton beginning her campaign with of the people outrage. she is roadtriping to iowa. where she ll give her first campaign appearance selling her candidacy, already. she is coming under fire. i m getting ready for a lot of things. we are
benedict. during the meetings, the cardinals will set a date for the conclave to choose a new pope. they re also taking on issues and controversies facing the church. mark phillips is in vatican & city. mark, good morning. reporter: good morning, norah and charlie. if the catholic church has been hit by the combined earthquakes of a retired pope and child abuse and other scandals its response has been deliberate and traditional. the cardinals have gunbegun to meet, but before they get down to the business of choosing a new pope they ve got plenty of other business to discuss. at the appointed hour, the cardinals began to emerge from the nooks and crannies of the vatican. sometimes in groups like owe obedient students on a school bus. others, though are staying elsewhere. and if they thought they could take a leisurely stroll to work they soon learned that that is not possible. with the papal election so wide open this time people hang on their every word and there are few words. the unwritten rule here is never say you want the job, and if you find your name circulating on a list of potential candidates say you re unworthy. canadian cardinal mark ouellet is seen as a compromise contender, but knows what happens to favorites in the conclave. there is a famous saying. the one that gets in pope gets out cardinal. reporter: some came by car. how many cardinals can you fit in a fiat? answer two. others came by taxi. they re not here at this stage to vote on a new pope but to discuss the many problems facing the catholic church from its ongoing child abuse scandal to financial mismanagement. chicago cardinal francis george says the church has obvious troubles it cannot avoid. how much of a role do they play in the discussions now that s been usurped by the headline stories? the headline stories do create context for discussion. we follow the press. sometimes happily and sometimes not. reporter: in this case, not happily. the cardinals say they have so much hard talking to do that discussions could go on for a week or longer before they move into the sistine chapel and start voting on a new pope. norah, charlie? mark phillips, thank you. we re now going into the third full day since the start of $85 billion in automatic xwoft spending cuts. the standoff shows no sign of ending. major garrett is at the white house. major, good morning. reporter: good morning, norah and charlie. the president is trying to reach a budget cuts. to raise taxes and find a way to somehow soften these spending cuts. but the president is pro ektspecting for votes as top advisers predict a republican surrender. the head of the president s economic council said republicans skeptical about new spending cuts will face a public backlash. as this pain starts to gradually spread to communities affected by military spending to children who need mental health services, i believe that more republican colleagues who are concerned about this harm to their constituents will choose bipartisan compromise. reporter: but republicans like house speaker john boehner appear content with the across the board cuts. even though just days ago boehner warned in the wall street journal they could cost thousands of jobs and threaten national security. i don t know whether it s going to hurt the economy or not. i don t know if anyone quite understands how the sequester is really going to work. reporter: some republicans do know how the spending reductions will work especially the $42 billion tarrette go ettegeting the pentagon. we will not have the proper training readiness, equipment in order to defend our national security. reporter: mr. obama is looking for help from republicans like mccain worried about defense. top advisers won t say how many republicans the president lobbied over the weekend, but their leader in the senate did not sound impressed. so far, i haven t heard a single senate republican say they d be willing to raise a dime in taxes to turn off the sequester. reporter: white house concedes these across the board spending cuts will not be felt everywhere and right away. trickling out across the country over time. meanwhile, it s back to business as usual here at the white house. the president will nominate new leaders of the office of management and budget, the energy department, and the environmental protection agency. major garrett, thanks. after a fight that began 30 years ago, this could be a change in the fight against hiv and aids. doctors say a baby in mississippi born with hiv has been cured. the baby received aggressive treatment just 30 hours after birth. the child would be the second in the world considered cured. director of national ins turt of al allergy and diseases good morning. good morning. is this a cure? if so, what are the implications? it s very likely a cure. the implications need to be determined because you re talking about a single case and it s really more of a hypothesis developing or driving situation, where we need to see if this is going to be applicable. it looks like under the unusual circumstances that this is indeed a cure because the pediatricians aggressively treated the baby essentially immediately after birth, which is the time of infection as opposed to waiting to see if the baby was indeed affected. it was an aggressive approach that proved to be correct. whether or not this is going to be broadly applicable to children really remains to be determined. it is an important finding because it s an important proof of concept that if you treat early enough, you prevent that virus from establishing what we call a reservoir, where it s very, very difficult to eliminate that after it s been established for a period of time. so they got a jump on the virus, as it were. and just how often is it that doctors are able to treat a baby that s 30 days old so aggressively? well, that s really unusual because particularly in this country, where there s good relatively good prenatal care most of the time if a mother is infected, the mother is treated during the pregnancy, which dramatically lowers the risk of the baby getting the virus through the birth canal or at the time of birth. enter those circumstances where a baby is born you don t aggressively treat the baby. you give them what s called prophylaxsis, which is a less aggressive regimen, then you wait until you can definitively prove the baby is affected and then you treat them. unfortunately, if the baby is infected then, that may have given the virus a period of time to establish itself. this is sort of a change of a paradigm. we re going to have to start looking at the relative risk versus the benefit of doing it this way. it doesn t often happen in this country. however, in the developing world where a thousand babies a day are born with hiv infection, this could turn out to be considerably applicable, but it remains to be determined, again, to underscore this is just a single case. one last question. is this the same cocktail treatment that is being used effectively around the world against hiv? it is. in other words, it s a treatment regimen. it s a triple combination of drugs you would use to treat rather than to prevent infection. dr. fauchi good to see you. thank you so much. and a storm is bearing down on the midwest. snow has just started falling in minneapolis. more snow and flooding is expected all the way to the mid-atlantic. jeff is tracking this storm. jeff, good morning. good morning, norah. good morning, everybody. this could very well be the biggest snowstorm of the year in both chicago and also into washington, d.c. first things first, let s show you what s happening on the radar. as you can see, it s basically a thin strip of snow from fargo, which is actually snowing very heavily there all the way from about minneapolis. that will start to move southeast ward during the day today. you can see that minneapolis is getting snow this afternoon. that eventually makes it into chicago tonight and could be heavy at times during the day tomorrow. then the question is what happens when it gets to the middle atlantic coast. as it seems right now, this could actually be a very heavy snowstorm, just inland to virginia, maybe washington d.c., maybe baltimore. we could be talking about substantial snowfall there. as far as snowfall totals minneapolis in the darker shade of blue maybe six to nine inches. madison, same story. chicago, same story. that happens again today and tomorrow. look at that bull s eye in the middle atlantic. just inland from the coast in virginia. maybe up into the mountains of west virginia as well. we could be talking about over a foot of snow. and then the big question is what happens? does the storm go up the coast and impact new york city and boston? or does it fly directly out to sea? it s a little too early to tell right now. jeff thank you. britain s queen elizabeth is said to be in good spirits after spending the night in the hospital suffering from a stomach bug. buckingham palace says all her appointments for the rest of the week are cancelled. clarissa ward is outside the hospital. clarissa, good morning. reporter: good morning. the queen has now left the hospital. a dark green rolls royce whisked her away from just behind me. she had a few moments to say thank you and good-bye to the hospital staff. she is now on her way to buckingham palace. the queen appeared to be in good health, but she was forced to spend the night here because she was complaining of symptoms of gastroenteritis, essentially a bad stomach flu. normally, it would pass after a few days. the queen is 86 years old. next month she will turn 87. presumably, doctors did not want to take any chances. the palace said this was just a precaution, though that she was otherwise in good health and in good spirits. but certainly this is a very rare event. the last time the queen spent the night in the hospital was ten years ago. she is a tireless worker doing hundreds of public engagements every single year. she s now on her way back to the palace, but it s not clear yet when she will resume her duties as the queen. charlie and norah? clarissa ward thank you. there is a mystery this morning in north africa. al qaeda s number one terrorist there may have been killed but no one knows for sure. abu sayed is the leader of al qaeda in the islamic mogreb. that terror group controlled mali for nearly a year until french forces threw them out. the head of france s military says it s likely he s dead, but they haven t found his body just yet. this morning demolition crews will seffner, florida, will continue to tear down a house above a sinkhole. the sinkhole swallowed a 37-year-old man, now presumed dead. reporter: good morning, charlie and norah. jeff bush was sleeping in his bedroom thursday night when the tragedy struck. over the weekend, officials tried to recover his body, but they deemed the ground too unstable to do it safely. now they say they have no choice but to raze the house with bush s body still trapped beneath it. the demolition had to be done from a safe distance by a backhoe with a long hydraulic arm. the operator tried to salvage some of the family s belongings. he took a lot of time to reach in and selectively grab items as much as he could. reporter: a bible and military memorabilia were among the items retrieved, but jeff bush s body may never be. i ve been crying every day, man. i ain t been able to stop either. i can t help it. reporter: the sinkhole, about 30 feet wide and 60 feet deep was still almost entirely covered by the house, but authorities worried it could grow sucking in the rest of the house and even those next door. there is a very large, very fluid mass underneath this house, rendering the entire lot dangerous and unsafe. reporter: sinkholes form when underground water eats away limestone, leaving crevices and holes in the rock. eventually, the ground above collapses under its own weight and tumbles into the void. the bedroom floor just collapsed, and my brother-in-law is in there. he s underneath the house. reporter: that s apparently what happened on thursday night when bush and his bedroom suddenly disappeared into the sinkhole. all i could see was the top of his bed. i didn t see nothing else. i jumped into the hole and tried digging him out. i couldn t get him. all i could hear i thought i could hear him screaming for me hollering for me. i couldn t do nothing. reporter: as this point bush is presumed dead. officials say once the house is cleared away they hope to get a better look at that sinkhole and figure out the best way to fill and stabilize it. they say even then they will not be able to go into the sinkhole and recover bush s body. charlie and norah? manuel thanks. cbs contributor is a physics professor at state university of new york. explain to us sinkholes and why florida is especially susceptible. even for florida where sinkholes are common this was the godzilla of sinkholes. we re talking about the fact that two reasons why florida is sometimes called the sinkhole capital. first, rainfall. florida gets about four feet of rain annually which moistens the soil. and second of all, limestone. about 50% of the state of florida sits on top of a layer of limestone, carbonate rock which are porous and water which will actually dissolve. many of the beautiful lakes you see in pictures next to the golf courses are actually former sinkholes that collapsed hundreds, thousands of years ago. how do you determine if you have a sinkhole under your house? first, you can use common sense. you can look for cracks in the foundation fences and telephone poles that begin to wobble doors and windows that don t close properly. if you re thinking of buying a house in florida, i would advise you to think about gaining a test with an engineer to look with ground penetrating radar, which is several feet underground, and a cylinder that you actually insert into the soil to sense the solidity of the rock. so there are tests that you can make. are there other states other than florida where this is a problem? there are seven states where this is a growing problem. you have texas, alabama, tennessee, pennsylvania kentucky. this is not confined to florida. areas where there are large limestone deposits and have a lot of moisture? that s right. that s the key. how common is it that people are getting one of these tests? i wouldn t ever think to call in and check to see whether there s a sinkhole under my house. first you want to check for insurance. check your home insurance policy and see whether or not you are covered for sinkholes because testing is advised before you buy a house in one of these areas. thank you so much. nice to see you again. time to show you some of this morning s headlines from around the globe. the wall street journal says the u.s. is widening its role in the war against islamist militants in mali. american drones are helping french forces locate and identify militants for attack by the french air force. the washington post says secretary of state john kerry has released $250 million in economic aid to egypt. kerry met for more than two hours with egypt s islamic president mohamed morsi. haaretz reports there will be palestinian only bus lines running from the west bankk into israel. it was created by complaints by jewish settlers that palestinians on their bus were security risks. palestinians will not be removed from other bus lines. the stock market may be thriving, but the unemployment rate remains stubbornly high. little pressure to raise salaries or add workers despite gains in productivity. the results have been a boon to corporate profits. usa today says it s okay to exercise just before bedtime. sleep experts say more examiner sides, even at the end of the day, is linked to better sleep. weather looking good around the bay area. we are going to see a little sunshine and some fog. other than that it should be all right outside as we re going to see plenty of blue skies into the afternoon. temperatures in the 40s and 50s. by the afternoon, sunshine in the valley. numbers in the 60s there. 50s out toward the coastline. tomorrow there s a chance of rain. announcer: this national weather report sponsored by chobani, crafted like yogurt should be. chobani. go real. california retirement home. a nurse said a resident stopped breathing, but it s against the rules to do cpr. is there anybody that s willing to help this lady and not let her die? not at this time. this morning, why a retirement home would have a no cpr policy. and dennis rodman has a message for president obama. call kim jong-un. we ll hear what else the nba bad boy is saying regarding his visit to north korea on cbs this morning. announcer: this portion of cbs this morning sponsored by the new discover it card. finally a credit card that s changing the game. restaurants? generous. get the new it card at discover.com and sign up for 5% cashback at restaurants now through march. when allergy congestion hits i rely on the speed and power of claritin-d. it starts working in just 30 minutes. nothing relieves nasal congestion faster or stronger. to get claritin-d, blow past the shelves and go straight to the pharmacy counter. go, go, go, go! bye sweetie. honey what are you doing? we gotta go! it s dress-like-a-president day, i m supposed to be martin van buren. who? martin van buren! google? martin van buren. i m doing my own sleep study. advil pm® or tylenol pm.® the advil pm® guy is spending less time lying awake with annoying aches and pains and more time asleep. advil pm®. the difference is a better night s sleep. i woke up to a feeling every little thing has meaning [ female announcer ] we always make our kraft singles with milk, and no artificial flavors, so you can be sure there s no single thing better for your grilled cheese. ever since mom and dad have been working with viva, people have been daring them to clean up tough messes. my fans think a paper towel can t handle this. that is tough when wet. [ peggy ] grab viva and break the rules on all your tough messes. l =d÷ here is a buzzer beater that s become a big internet sensation. with less than three seconds in the game on sunday a player from new rochelle high school throws it into the air thinking the play is over. they get it back hit the shot from beyond half-court and win. an incredible play there. now to this serious story. when an elderly woman passed out at a retirement home last week somebody called 911. with the woman dying, nobody nobody would perform cpr, not even when a this is a kpix 5 news morning update. good morning, it s 7:26. i m michelle griego. police in campbell are investigating the first murder there in six years. an 18-year-old man was found shot last night on west vladimer avenue. no description f of a suspect. four deadly police shootings over the weekend included in hayward. a driver stopped by an officer tried to speed away hitting the door of a parole car. the officer opened fire killing a passenger in the suspect s car. an extradition hearing happens today in los angeles for amar harris. accused of shooting kenny cherry on the las vegas strip killing two others in a crash. stay with us, traffic and weather in a moment. good morning, still continues to be a busy ride at the bay bridge toll plaza, traffic is still stacked up at least until west grand. the metering lights are stow and go. checking over to our maps, we ve been dealing with a busy ride through the altamont pass. and 680. don t forget on the eastbound side, three left lanes closed until 11. and stop and go conditions along highway 4 and pittsburgh. that s a look at your morning driving. here s lawrence. we have low clouds and fog stretched on shore. looks like drizzle out toward the immediate coastline. looks like it s going to clear up many spots inland for today. let s get you out there. cloudy skies over the bay bridge. bit afternoon we ll see temperatures warming up from 40s to 50s. out toward the coastline. 50s and 60s inside the bay. could see rain moving back in tomorrow. yesterday vice president joe biden helped commemorate the famous civil rights march over the bridge in alabama. more than 5,000 people joined biden and civil rights leaders. the march began back in 1965 and the police beatings that triggered on the passage of the voting rights act. i remember the story. it was a dramatic story circumstance and john lewis is an american hero because of how he showed such courage at the moment. welcome back, everybody. welcome back to cbs this morning. officials have released a dramatic 911 call between an emergency dispatcher and a nurse at a retirement home. in the recording you ll hear the nurse refusing to give cpr to a dying woman. john blackstone has the story. is she breathing? is she breathing? barely. barely. reporter: inside this california retirement home an 87-year-old woman lie unresponsive but when a 911 dispatcher said to start cpr, the nurse on the other end of the line refuses. yeah we can t do cpr. hand the phone to a passer-by. if you can t do it have them do it or any citizens. no. anybody there can do cpr. give them the phone, please. if this woman s not breathing enough, she s going to die. reporter: as the seconds tick by, the dispatcher tries desperately to get the nurse to doing. i don t understand why you re not willing to help this patient. is there anybody that works there that is willing do it? we re going to let this lady die? that s why we re calling 911. we can t wait. she can t wait right now. she is stopping breathing. is there anybody that s willing to help this lady and not let her die? not at this time. reporter: by the time medics arrived, it was too late. the glenwood retirement facility released a statement saying it s conducting a thorough review but that, quote, our practice is to immediately call emergency medical personnel for assistance and to wait with the individual needing attention until such personnel arrives. an industry spokeswoman tells us that s likely because this was an independent living facility not assisted living. there s no requirement that the people in the build being trained to perform cpr. so a company could state in the policy they don t want anyone to initiate cpr. reporter: but she says this incident may be a wakeup call for the industry. i think this tragic example will make us all think more closely about what type of services and training we should provide. reporter: we re told the elderly woman in this case did not have a do not resuscitate order on file although her daughter said she reportedly is satisfied with the care her mother received. with us now, legal analyst jack ford. first of all, the whom was trying to get help showed extraordinary cool extraordinary sense of urgency at the same time. certainly the dispatcher did the job you would want her to do, and that s a tough job for people to do under any circumstances and this was a marvelous job done by her, sadly ending in tragedy. give us a sense of implications or is this a case where we ve become too much of a alya lit littigious society. the second part of the question is question. it was a residential facility not an assisted home living. very different. they say specifically we do not provide emergency medical care. we will get somebody for you, then that could shield them from some problems. the other question is what are your reasonable expectations. when they sold this as a sales pitch, did they say, look we have wonderful dining facilities and we have medical people on site. despite what might be in the agreement, you have a reasonable expectation i think this story is about what s not in fine print. if this woman is dying you do everything to help that person and a lot of people who aren t medical professionals learn cpr or the heimlich maneuver so you can help people. i m a lawyer. i ve spent a lot of my career trying cases before i got into the news business and even i feel terribly offended by cases i see other lawyers are bringing. why does this nurse feel she would be sued if she gave this woman cpr? she apparently was told as an employee. she may well be in a tough position. if she was told by her employers, you cannot do this if you do, you re in violation, and you ll lose your job. now you have a woman being told do i try to save someone s life and by doing so do i risk my own job for doing it. that s why you have to look to the employers. in reality, some states are starting to pass good samaritan laws, you can t be sued if you try to stop and help somebody. the reason is people sue you sometimes if you try to stop and help somebody. so you have to look at the culture of society. it s a it sounds like a very good idea. a very good idea. thank you. and dennis rodman is back in the u.s. talking about his surprise trip to north korea. the retired basketball star spent four days touring the country and meeting with leader kim jong-un. jan crawford is in washington. jan, what a story. good morning. good morning, norah, good morning, charlie. rodman was able to do what no diplomat has been able to do if you can believe it. he met face to face with one of the most reclusive leaders in the world. it s the first time since he took over power in 2011. deb is in rodman wrapped up his unexpected round of basketball diplomacy, but he didn t leave north korea empty-handed. the former nba star delivered a message from kim jong-un. he want obama to do one thing. call him. he wants a call from president obama? that s right he told me that. he said, if you can, dennis, i don t want to do war. i don t want to do war. he loves basketball. i said the same thing he said. obama loves basketball. let s start there. reporter: rodman visited pyongyang last week with the harlem globetrotters team and a camera crew from hbo s vice. he shared the basketball court and a meal with a man people call tie rant. i think if he brought in basketball star he not only would have a moment to go share his interest and hobby but that he would get somebody who wouldn t lecture him on human rights, on setting off missile tests and underground nuclear tests, and he was right. reporter: it was just a few weeks ago north korea launched its third nuclear test. the regime then threatened miserable destruction if u.s. and south korea went ahead with planned military exercises. still rodman says he s found a friend for life in kim. i don t condone what he does but as far as a person to person, he s my friend. reporter: in a statement the white house national security council said instead of spending money on staging sporting events the north regime should focus on the well being of its own people who have been starved, imprisoned, and denied their human rights. now, after that interview with abc, he canceled a meeting with us on cbs. he said it was due to scheduling issues. who knows where he s going next. will there be any kind of follow-up to say, well yes, you ve talked to dennis rodman how about talking to the asus assistantwas. it was almost like a publicity tour he put on and rodman was a player out there on the court. they ve been turning down people like bill richardson and eric schmidt and those who have gone to north korea. you would hope north korea, the hugs, the exchanges, the testimonial yesterday on that interview with abc suggests that questions of its sincerity, i think you can certainly raise, charlie. jan crawford thank you. charlie, clearly the state department and them distancing themselves from dennis rodman and this whole thing. and if you think adhd is just for kids h ll show you new research that finds the condition can last a lifetime. that s ahead on cbs this morning. 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well, adhd affects adults the way it does children. attention, distractability, disorganization, productivity it s just those problems play out in the adult world in employment, education, adult relationships, unfortunately risk-taking behaviors. and one of the fascinating things that you found is that 80% of those adults who have adhd also have one other psychiatric disorder. what are we talking about? that s right. we tend to think of adhd as an attention problem. but in fact they have associated learning or mental health problems. in adulthood they include problems with alcohol and drug abuse, anti-social personality disorder depression and anxiety. i assume that you long suspected it. you ve been able now just to prove it. yes. the reason that i think this information is important is because it s such a long-term study with such a large group of children representing the whole universe of people. and so how will it change the way you treat? well, thing what we need to do is, first of all, stop trivializeing adhd. in fact, it s a serious chronic health problem starting in childhood and it continues to have significant impact on into adulthood for most affected children. so there may be many parents or grand parents who may be saying, wow, i have somebody with this in my family. what does it mean for the future? it means treatment needs to be done by qualified treaters so we treat this as a chronic medical condition worthy of our attention attention. is adhd often misdying nosed? if you look at the press coverage it tends to and it s a cloudy start to the day, nora. this is a new one looking back toward oakland and the new part of the bay bridge are they re building right now. cloudy skies outside. we ll find more sunshine over the bridge in the afternoon. 40s and 50s. by the afternoon, we have 50s and 60s inland. partly cloudy up toward the coastline. chance of rain by late tomorrow afternoon. showers expected on or off right through thursday. it s a murder trial attracting worldwide attention. an arizona woman could face the death penalty. we ll show you the emotional testimony of accused killer jodi arias and how it compares with what she told 48 hours ahead on cbs this morning. our ocean spray cran-cherry juice drinks are made with sweet cherries and the crisp, clean taste of our cranberries. i cannot tell a lie tis tasty. okay george washington, did you take my truck out last night? tis tasty. want younger looking eyes that say wow? with olay, here s how. new regenerist eye and lash duo. the cream smooths the look of lids. softens the look of lines. the serum instantly thickens the look of lashes. see wow! eyes in just one week with olay. this day calls you. to fight chronic osteoarthritis pain. to fight chronic low back pain. to take action. to take the next step. today, you will know you did something for your pain. cymbalta can help. cymbalta is a pain reliever fda-approved to manage chronic musculoskeletal pain. one non-narcotic pill a day, every day can help reduce this pain. tell your doctor right away if your mood worsens, you have unusual changes in mood or behavior or thoughts of suicide. anti-depressants can increase these in children, teens, and young adults. cymbalta is not for children under 18. people taking maois, linezolid or thioridazine or with uncontrolled glaucoma should not take cymbalta. taking it with nsaid pain relievers, aspirin or blood thinners may increase bleeding risk. severe liver problems, some fatal, were reported. signs include abdominal pain and yellowing skin or eyes. tell your doctor about all your medicines, including those for migraine and while on cymbalta call right away if you have high fever, confusion and stiff muscles or serious allergic skin reactions like blisters peeling rash, hives, or mouth sores to address possible life-threatening conditions. talk about your alcohol use, liver disease and before you reduce or stop cymbalta. dizziness or fainting may occur upon standing. take the next step. talk to your doctor. cymbalta can help. new jersey area say there will be a 30% increase in the number of babies born this july who were conceived during the blackout caused by hurricane sandy and then some day you can tell your child the story how they only exist because your iphone died. it s kind of funny. really funny. we do not know who the next pope will be but he already has a tailor busy at work on his garments. one of the robes in the window behind me will dress the new pope when he visits the basilica for the first time. i m allen pizzey in rome and i ll have that story for you later on cbs this morning. 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[ male announcer ] combat 8 signs of aging hair. nexxus youth renewal. raise your standard. living with moderate to severe rheumatoid arthritis means living with pain. it could also mean living with joint damage. humira, adalimumab, can help treat more than just the pain. for many adults, humira is clinically proven to help relieve pain and stop further joint damage. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma or other types of cancer, have happened. blood, liver and nervous system problems, serious allergic reactions and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b are prone to infections or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. ask your rheumatologist about humira to help relieve your pain and stop further joint damage. 97 this is a kpix 5 news morning update. good morning, everyone, it s 7:56. i m michelle griego. a woman faces charges after a two hour stand off at a san francisco house. police say they got a 911 call yesterday from residents who said they caught the woman burglarizing their home. officers eventually talked the 22-year-old suspect into dropping a gun and a hatchet and surrendering. in los gatos this evening, the town council will have a moratorium on gun sales, and will give them time to come up with long-term guidelines. the only retailer selling guns would be able to continue gun sales during the moratorium. stay with us, traffic and weather in a moment. secondhand smoke affects everyone s health. it s not just irritating. it can cause heart disease and even death. speak up about secondhand smoke. your health and the health of your family depend on it. good morning, we have abrasion lights as you work your brake lights as you work toward milpitas. a little slow and go. 11 minutes between 880 and 101. northbound 101 stop and go conditions through san jose, business as usually but not too bad along 280. clear through guadalupe parkway. slow and go across the golden gate bridge. if you re headed out the door, a little fog, and it looks like we are going to see plenty of sunshine bit afternoon. in most spots inland, still system patchy fog lingering toward the coastline. temperatures until the 40s and 50s. by the afternoon, highs in the mid 60s in some of the valleys. 50s and 60s inside the bay and 50s coast side. winter makes a return. rain developing by tomorrow afternoon. showers continuing on wednesday and thursday, return to sunshine and warmer weather next weekend. it is 8:00 a.m. it is 8:00 a.m. welcome back to cbs this morning. a severe snowstorm hits the upper midwest on its way to the east coast. it could affect tens of millions of people through the week. plus we re launching our series eye-opening women. this morning, we ll show you the supreme court through the eyes of a pioneer. the first female justice will be here. first, here s a look at today s eye opener at 8:00. before they get down to the business of choosing a new pope they have plenty of other business so discuss. catholic cardinals are holding the first of their official meetings this morning since the retirement of the former pope bennedictbenedict. the president has given up at least for now trying to reach a budget compromise with congressional republican leaders. we re now going into the third full day since the start of $85 billion in automatic government spending cuts. doctors say a baby in mississippi born with hiv has been cured. it was an aggressive approach that proved to be correct. whether or not this is going to be broadly applicable to children really remains to be determined. this could very well be the biggest snowstorm of the year in both chicago and also into washington, d.c. the queen has now left the hospital. she was forced to spend the night here because she was displaying symptoms of gastroend rites, essentially a bad stomach flu. once the house is cleared away, they hope to get a better look at that sink hole and figure out how to fill and stabilize it. this was the godzilla of sink holes. rodman met face to face with one of the most reclusive leaders in the world. what we need to do is first of all, stop trivializing adhd and sensationalizing it as just an annoying childhood behavior problem. the cardinals say the discussions could go on for a week or longer. pope benedict officially resigned on thursday night revealing an incredible case of hat hair. i m charlie rose with norah o donnell. gayle king is off. forecasters are watching a new winter storm that s dumping snow on north dakota and minnesota this morning. our meteorologist is tracking the storm. jeff, good morning. good morning. this could be a blockbuster snowstorm somewhere in the middle atlantic. first, let s talk about what s happening now. it s a thin strip of snow from fargo down to minneapolis. minneapolis could see around 6 inches of snow with this as the system begins to work its way to the south. in fact, here s how much snow we expect. during the day today, that s when it s falling over minneapolis. there will also be a little bit of snow during the day today in chicago. the main threat is tomorrow in chicago. notice the darker shading of blue. that s around 6 to 9 inches in minneapolis today and tomorrow. also, late tonight in chicago, about the same 6 to 9, maybe 10 inches of snow there. then we push it forward and notice what happens here in northern parts of virginia and also into let s say, west virginia. we could be talking about as much as a foot to a foot and a half of snowfall. after that, it s possible it could go up the coast towards new york city or potentially out to sea. too early to tell. jeff thank you. roman catholic cardinals are holding their first meetings leading to the election of a new pope. the cardinals are not expected to decide the date of the secret conclave until later this week. the senior editor of inside the vatican magazine joins us now. good morning. good morning. does this suggest the cardinals want to take more time in deciding who will be the next pope? well, it does seem to be on the minds of some cardinals i spoke to that just came out of the morning meeting. perhaps they don t want to rush such an important decision, which might suggest that march 11th date everybody has been suggesting could go back a few days. but they will have to decide that in the next few days once all of the cardinal electors and all of the cardinals are actually here. how is this taking place? is it one big meeting, or they broke off into groups? what s their agenda? it s all one big meeting, charlie. at the moment it s taking place in the morning for three hours and in the afternoon for three hours. they re deciding on a day-to-day basis exactly how much time they re going to need. they re all together, 207 of them, in one room. the idea is to give them time to talk about what they think the priorities should be for the next pope. essentially, everybody should have an opportunity to speak, if they want to. of course, not everybody will. but president idea is to provide this general forum for all of the cardinals to be heard. any new developments in terms of who may or may not be a favorite? anybody been added to the list of possible popes? there are some favorites that have already been talked about, some of maybe the more traditional ones would be the italian archbishop of milan. somebody who is very well known and recognized here at the vatican, in particular for christian-muslim relations. we know there s been lots of talk about a pope from the developing country and the brazilian cardinal. cardinal scherer has been getting lots of talk from the people who watch these things because he would be something who is, yes, a latin-american but he s of german heritage. he hasn t spent a lot of time at the vatican, so the idea is the europeans might be comfortable with him. thank you so much. you re welcome. when one of the cardinals is elected pope, he will quickly have to change from red ropes into white ones. the first glimpse of a new fashion line but this takes couture to an entirely new level. this firm has been opening the show for 200 years. it s a challenge because no one knows who the robes are supposed to fit until it s time to put them on. and there s no time for pinning up or letting down between the pope being chosen and his first appearance on the balcony of st. peter s basilica. what s so special about the one you make for the day when he comes out on to the balcony for the first time? it s not made especially for him. we try to make one that could fit more or less any pope. we are making three, you know, because we don t know who the pope will be. so we re making roughly speaking, one medium one large, and one small. the one for benedict was a bit too short. someone accidently switched the tags on the robes for pope john xxiii, so he ended up with the wrong size and it was open at the back. not the way to win an a-list customer. once you make the robes, are you automatically the tailor for his papacy? the pope does what he wants. he s the pope. he chooses. he decides. have they mainly chosen you? mainly yes. for those who don t need a tailor there are dozens of stores that cater for priests and nuns. one reason for longevity is men of the cloth aren t into trends according to the owner. the normal fashion doesn t change. here there s a fashion that in ten years you can have something that changes after another ten years. change the design and the fabric every ten years, more or less. the variety is in the work involved. these bishops miters range in price from just over $100 to more than $1,000. communion chalices are favorites to mark special occasions. a simple brass one is about $200. go for a silver one with fine engraving, and you ll be spilling up to five times that. this brother came in for shirts but he s asked his parents to give him a chalice when he s ordained. for me it s a special gift. with a chalice, i m going to celebrate my first mass and also bring the blood of christ. that for me it has a special meaning for me. the robes will stay in the window until a date of the conclave is announced. then they have to be taken to the sistine chapel to be ready to dress whoever emerges as pope. the tailors can only hope they fit, more or less. changing popes has a lot of implications, doesn t it? it does including wardrobe. now back here to the u.s. mitt romney is blasting president obama in his first tv interview since the presidential election. the former massachusetts governor says the president failed to lead during the debate over across the board spending cuts. now look at what s happening right now. i wish i were there. it kills me not to be there, not to be in the white house doing what needs to be done. the president is the leader of the nation. the president brings people together, does the deals, does the trades knocks the heads together. the president leads. and i don t see that kind of leadership happening. what is this president doing? well, he s campaigning. he s the only one that can say to his own party, look you guys, i need you on this and get some republicans aside and say pull them off one by one. we don t have to have these gridlock settings one after the other on issue after issue. romney also acknowledged he made mistakes that hurt his campaign including the speech where he said 47% of jodi arias broke down on the witness stand after admitting she killed her former boyfriend, but arias once told a much different story to 48 hours. we ll show you ahead on cbs this morning. i ve discovered gold. 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[ female announcer ] get more with embassy suites. book now at embassysuites.com. woman accused of murdering her lover at his arizona home resumes. jodi arias broke down on the stand when prosecutors grilled her about the day travis alexander was killed. it s entered its tenth week today. they ve been covering the case since 2008 and shows us arias s changing story very after four days of intense cross cross-compassion jodi arias sobbed uncontrollably as prosecutors grilled her about june 4, 2008. ma am were you crying when you were shooting him? i don t remember. were you crying when you were stabbing him? i don t remember. how about when you cut his throat. were you crying then? i don t know. reporter: 32-year-old arias i accused of killing her ex-boyfriend travis alexander in a fit of jell ocy at his mesa arizona, home. she claims to have acted in self-defense, killing him after he become enraged when she dropped his camera taking photos of him in the shower. she told 48 hours that travis never threatened her life. reporter: was he ever abusive to you in any way? i don t want to say anything bad about him or hur his reputation at all. he lost his temper a few times. it wasn t anything that really required me to that i felt i never felt my life was in danger. reporter: arias s version of what happened that day has changed several times. at first she claimed to have no idea who committed the crime. later she described to 48 hours how alexander had been murdered in cold blood during a home invasion. i ran out the front door and got into my car. i drove forever and forever until i was in the desert. reporter: but when her trial began, she shocked everyone by changed her defense yet again. this time she claimed that she had killed alexander, acting in self-defense. it had reached a point of no return. travis left jodie no other options but to defend herself. reporter: last week prosecutors poked holes in each of arias s stories to prove that arias not only murdered alexander but methodically worked to cover her tracks by sending him voice mails and e-mails days after she allegedly killed him. you wrote that right? yes. that was your way and attempt for you to again, fake the scene, so to speak, right? yes. reporter: alexander was found by friends five days after he was stabbed 27 times and shot in the head. a crime so brutal that if convicted, arias could face the death penalty. maureen maher joins us now from chicago. so you interviewed jodi back in 2008. what s your take on her? has she changed a lot? no. she s still very composed and very calm. as i mentioned before she s a very skilled liar. let me just say the crime screen photos from in case in 23 years of being a crime reporter top worst i have ever seen. even if it was self-defense, there s certainly a part of this act that was fueled by a tremendous amount of anger. and that garon comes out in those pictures, but never on the stand. you ve never seen any of that on the stand in the last couple of weeks or in the interview we conducted. what s going to happen in the trial coming up? she s still going to be on the stand for the next couple of days. even when the prosecution is back the defense will put her back on to try to clean things up. i think we re still a couple of weeks away from a verdict on this trial. and what would you guess it will be? well i don t see that she s going to be able to walk away from this in any way, shape, or form, charlie. i think it will be murder i, no question. i think that s where the tapes from 48 hours come into play where you re talking about mitigating circumstances. maureen thank you so much. sandra day o connor was the so if you have a flat tire dead battery need a tow or lock your keys in the car, geico s emergency roadside assistance is there 24/7. oh dear, i got a flat tire. hmmm. uh. yeah, can you find a take where it s a bit more dramatic on that last line, yeah? yeah i got it right here. someone help me!!! i have a flat tire!!! well it s good. good for me. what do you think? geico. fifteen minutes could save you fifteen percent or more on car insurance. this is a kpix 5 news morning update. good morning it s 8:25. michelle griego with your kpix 5 headlines. police in campbell are investigating the city s first murder in six years. 18-year-old richard vega was shot last night. no arrests have been made and the motive for the shooting is unclear. there were four deadly police shootings over the weekend in the bay area. the most recently one happened yesterday in hay ward. a driver building inspectors in san francisco are expected to meet later th and killed a passenger in the suspect s car. building inspectors in san francisco are expected to meet later this morning to go over the damaged caused by a massive sinkhole. last week s sinkhole in the west portal neighborhood forced engineers to tag homes. why the pipe broke remains a mystery. stay with us. traffic and weather coming right up. good morning from the traffic center still busy in some spots this morning, especially in the east bay. here s a live look at conditions along 880 as you work your way north and southbound. slow and go conditions mostly on the northbound side headed past the coliseum. golden gate bridge, we re seeing delays as you work across the span there into san francisco. e elsewhere sluggish northbound 101. southbound as well as near candle stick and looks like 280 northbound a little slow and go as you work into san francisco. mass transit right time. here s lawrence with traffic. clouds around the bray area to start off the day. and should see sunshine, the temperatures will be a little bit cooler in san jose. we ve got mostly cloudy skies at this hour. temperatures there only at 50 degrees. 48 in livermore. 46 degrees in santa rosa and 47 in san francisco. the temperatures in the low to mid-50s toward the beaches, kind of cool in that area. as you head inside the bay we ll find more sunshine, 50s and 60s. next couple of days chance of rain late in the day tomorrow, chance of showers continuing on wednesday and thursday. ñáçwçñ you know what sounds good right now? a massage from your sister? what? what? food. alright, let s go to my place and grab some late night munchie meals. for six bucks we can get a bunch of stuff. halfsie fries, 2 tacos, a drink you can drink, and one of 4 awesome new entrées, like the stacked grilled cheese burger. let s do it. let s do it! weeeee! but, i can t fly! not with that attitude! welcome back to cbs this morning. coming up in this half hour former supreme court justice sandra day o connor has been called both the most influential woman in america and the most important woman in american history, high praise for a girl who was once a cowgirl on a cattle ranch. she s here in studio 57 kicking off our series of eye hp opening women in this month s history month. jimi hendrix recordings are being released. you ll meet the close friend who s keeping the hendrix sound alive. right now it is time to show you this morning s headlines. the new york times says banks have seized the homes of some 700 military by mistake. the military families were current on their mortgages. bank of america, citigroup, chase, and wells fargo found the mistake during a settlement with federal authorities. wall street journal has advice for people getting ready to retire. if you have a portfolio for stocks and bonds, forget about the 4% rule. they say you should take 4% from your savings in your first year of retirement and adjust for inflation after that. but if there s a big drop in the both came up short. she blames an injury to her quads. and the washington post says president obama is pushing to diversify the federal judiciary. he s named three since january and is expected to nominate many more over the next few months. administration officials say the president wants to have the courts more closely reflect society. this morning we begin a week-long series of eye-opening women. each day we are talking to women who have blazed a trail. sandra day oh con another made history in 1981 becoming the first female justice of the u.s. supreme court. now she s giving us a revealing look at the court s inner working. her new book is called out of order. it s an interview you ll see first on cbs this morning. justice o connor good morning. good morning. let s talk about the book. how did you choose that order? i thought it would be kind of eye-catching, perhaps, for a tight. i have in it some stories from the history of the court, and the history s been rather a long one, and there s some good stories to tell. secrets behind the court. sure. maybe that s a little out of order. let me read for you a quote from justice gins about you in a new york magazine. quote, from her, the one big change from the time i ve been here has been the loss of justice o connor. i think when you look at the term she was not here the court decision i was with before i would have been with the five if she had stayed. your reaction. well, i m interested to read what she has to say. the court is small, just nine and five members on the court can control the outcome of the decision, and it s not unusual that there would be five more closely alied in their views. it gave you lots of power. they needed your vote. i didn t feel so when i was there. but you did. heaven s no. did you miss it? in a way. i had been there 25 years and it was plenty hard work and i thought it was time do something else. you know, i have a big project i m doing. do you know about that? tell us. it s call eded i civics. i think that s unacceptable. the only reason we have got public schools in america is they say look we ve developed a remarkable system in the constitution and we need to teach people about that. that is how we got schools. you heard people say you re one of the most important woman in the world if not the most. what do you i don t accept that grandiose statement, let s put it that way. what would you like your legacy to be? i would like it to be i was the first woman that served on the court and i did a decent job. i think that s a good legacy. more than decent. well, that s for others to say. and a good relationship with judge you had known. in law school. you were friends. very much indeed. very much so. we used to have bridge games. did you sing together? he loved to sing. he does, and i m not a singer. but he did like that. what do you think about justice roberts? was your relationship good with him? i didn t know him as long as i knew bill. what did you leak most? seeing the cases coming and how you can solve them. it s a challenge but an interesting one and you feel like you re having a useful role. you, of course were the first woman on the supreme court. we begin women s history month this month. what do you think is the biggest challenge to getting more women in leadership positions and are you surprised by still how there are still so few women in those positions. well, it s coming along. it s much better than it was when i started life and i think it will continue to reflect the competence of women as we go forward. it just takes a lot of time. we just showed the picture of four women justices on the supreme court. progress, but it is progress. it s big progress in my opinion. and you still get to see them because as many people may not know, you have an office at the supreme court. i do. i m so privileged. and i still sit on cases with the federal courts of appeal around the country. you know you re one of the many people i know who carry a copy of our constitution in their pocket. well, i do. i do. always. let me see. i have that with me. why do you carry it with you? because i revere our constitution and in my job on the court, that is what we were concerned about. what does the constitution require. listen to what i m reading. our most treasured possession sandra day o connor. yes. i think it is yes, yes. on the subject of diversity by the president, remodel or remold the bench, looking for diversity, that seems to be a good idea that reflects the changing demographics of the country. i think the body of the federal judges is very small, and what we want is quality. we want competence in the judges. i don t think we re looking for diversity as such. i think we re looking for competence, talented judges. but how many of them are you ve got a whole bunches of judges who came from one of the two of the same law schools. i think we ve seen harvard, yale even stanford partly represented, and we receive more diversity of law schools than we did for a while. all right. justice sandra day o connor out of bounds out of order. you re never out of order. you can keep that. thank you. don t lose it. i won t. thank you. out of order goes on sale tomorrow. oury hp yy yy eye-opening series goes on all week. the founder of angie s list angie hicks and caroline kennedy. forbes magazine has a list of the most richest. carlos slim microsoft bill gates is number two, at number three is the head of the spanish retailer. he knocked down warren buffett. it s the first time buffett has been out of the top three since 2003. larry ellison of oracle is number 5. there are a record 300 female billionaires on the list. one of them is a retailer. she worked in a factory. last night on 60 minutes lesley stahl spoke about real estate chinese democracy. i hear a lot in the u.s. wall street praise. how they get done so quick, so effective. it can roll ore a policy overnight nationwide and here in the u.s. we need go through congress, senate and debate. right. you know, i have to say for chinese living in china, chinese, if you ask one thing, everyone craves for it is what? not food not home. everyone craves for democracy. i know there s a lot of negativities in the u.s. about the political system but don t forget, you know 8,000 miles away, people in china are look act ing at it, longing for it. do you think there will be democracy here i ll put a time frame on it. 20 years? sooner. you re an optimist. i am. in that interview she says she doesn t believe a real estate bubble could seriously damage chinese economy, this morning, however, chi kneel real estate took a dive at the government announced a new 20% tax on home sales. last night on 60 minutes lesley stahl found significant evidence that china has far more skyscrapers than it needs right now. reporter: we are on the major highway or the major road and it s rush hour and it s almost empty. he s a long congress-based financial analyst who was the first to draw attention to the housing bubble in china. he s showing us a new eastern district in one of the most populated provinces in china. not that you d know it. we found what they call a ghost city of new towers with no residents, desolate condos and vacant subdivisions uninhabited for miles and miles and miles and miles of empty apartments. why are they empty? i ve heard that they have actually been sold. they ve all been sold. reporter: they ve all been sold. they re owned. owned buy people in china s emerging middle class who now have enough money to invest but few ways to do it. they re not allowed to invest abroad. banks offer paltry returns, and the stock market is a roller coaster. but 15 years ago the government changed its policy and allowed people to buy their own homes, and the floodgates open. so what they do is invest in property because property prices have always ot up more than inflation. reporter: and they believe it will always go up. yes, just like the u.s. reporter: this is completely totally empty. he took us to the shopping mall that s been standing vacant for three years. can i find this all over china? yes you can. they simply built too much infrastructure too quickly. reporter: but i see kfc behind you, starbucks, very american franchises coming in here. yeah. reporter: does that mean they have faith this is going to ignite? these are fake signs. it s to give potential buyers an impression of what it might look like. reporter: they re not real. so kfc didn t buy this space or rent this space? no. reporter: starbucks? no. reporter: they just put the sign up? that s right. reporter: it s all make-bee believe. nonexistent supply for nonexistent demand. mostly about residential homes rather than construction of office buildings. well, except there there s great example of a ghost city where china has just developed and developed. incredible to think about that. from that to jimi hendrix. he once said music is my religion and now there s an answered prayer for his faithful fans. we ll show you a new album of good morning, if you re headed out on this monday, we have patchy low clouds that have made they way onto shore. below, by the afternoon, skies will begin to clear out. right now, 40s and 50s and drizzle approaching the coastline. numbers by the afternoon will stay cool toward the beaches, only in the 50s there. 1/5s and 60s 50s and 60s by the bay. and tomorrow, a chance of rain a return toward the bay area. jimi hendrix died in 1970 at the age of 27 but his influence on music continues to this day. rolling stone magazine called hendrix the greatest guitarist of all time. now his new album is coming out. bill whitaker met the sound engineer who mixed all of hendrix s tracks. o lord please give us a helping hand reporter: the new album is called people, hell, and angels. feeding an endless hunger for rock and roll. jimi s voice is so beautiful, so intimate right in your face. reporter: he was his sound engineer. he was also a trusted friend. he hasn t strayed from the man and his music, working on all 12 albums released since hendrix s death nearly 43 years ago. all of this music that he was doing during this period was him searching, that restless mind of his just searching for something. reporter: did he find what he was looking for with this music we re hearing, or are we seeing that process? we re hearing the raw elements of that search and that s what makes it so compelling. reporter: somewhere is the first single from the new album. it s already hit number one, knocking adele s skyfall off the charts a testament to his appeal. it was june of 1967 at the monterey pop festival that the legend of jimi hendrix was born. you see how fluid his hands move, his arms. he s playing with his teeth, behind his backs, between his legs. reporter: jamie is his sister by 18 years old. she s his ceo and oversees his estate which sells over 1 million albums a year. at monterey he outshined every other musician. then in a blazing finish set his guitar on fire and smashed it. my dad once said there wasn t a note jimi played that he didn t like. i really feel in jimi s music is where his soul lived. reporter: the speakers make it sound like he s here. he is here. he s always here. reporter: his friendship took hold in the uk where jimi had gotten a name for himself before he took home stateside. he took these pictures in the studio backstage with mick jagger writing a song. you two clicked right off the bat. yeah. his music hit me right in the heart, in the brain. reporter: according to him, he was very different from the man he knew who was focused on his art and his business. reporter: i d seen pads of notes about concerts how many ticket sales, how much merchandise did we sell. the man was so meticulous. when you look at him, you would never think that. reporter: jimi hendrix hendrix star. spank spangled banner headlined. various delays including rain that turned the farm into a muddy bog left him to wail away by the dawn s early light. he was great in the studio. reporter: you miss him. i loved the guy. reporter: this album is the last of hendrix s studio work. he died in 1970 of drug-induced asphyxia asphyxia. there are, however, some unreleased live performances still in the vault. for cbs this morning, bill whitaker, los angeles. there s still some in the vault? there s more. i know. it s jeff pure genius. pure genius. and it s hard they re from 1968 and 1969. are you going to get the album? of course. it s already number one on the billboard. i know. i love it. all right. we ll be right back. you re watching cbs this morning. (woman) 3 days of walking to give a breast cancer survivor a lifetime that s definitely a fair trade. it was such a beautiful experience. (jessica lee) and it s beautiful (woman) why walk 60 miles in the boldest breast cancer event in history? because your efforts help komen serve millions of women and men facing breast cancer every year. visit the3day.org to register or to request more information today. it was 3 days of pure joy. and it s beautiful you can t move the tv there. yuh-huh. we have a wireless receiver. listen. back in my day, there was no u-verse wireless receiver that let you move the tv away from the tv outlet. we can move it to the kitchen, the patio, the closet and almost anywhere. why would you want a tv in the closet? [ both laugh ] [ fancy voice ] brilliant idea, darling. [ female announcer ] the wireless receiver. get u-verse tv for just $19 a month for 1 year when you bundle tv and internet. rethink possible. tomorrow s story you ll see only on cbs this morning, we ll visit with film maker george lucas. he ll show us the artwork that s inspireing his next big project. that s tomorrow only on cbs this morning. boy, he s an interesting guy that not only made great movies but made a gazillion dollars. i know. looking forward to that interview. that does it for us. up next your local news. we ll see you tomorrow on cbs this morning. this is a kpix 5 news morning update. good morning everyone, it s 8:55. i m michelle griego with your kpix 5 head lineups. a large sailboat has run aground in pacifica. the distress call came in at 6 this morning. three people are on board and they refused help from the coast guard. emergency crews are standing by on shore for help. a woman faces charges after a two hour stand off at a san francisco house. police say they got a 911 call yesterday from residents who said they caught the woman burglarizing their home. officers eventually talked the 22-year-old suspect into surrendering. in los gatos this evening, the town council will continue a motor crumb on gun steals. it would give them time to make long-term. the only retailers selling guns would be able to continue gun sales during the moratorium. here s lawrence with the forecast. a lot of low clouds and fog around the bay area. headed out the door, a little gray to begin with. and blue skies and sunshine in most spots. by the afternoon, plenty of sunshine there. still it will be a bit cooler outside. numbers until the 40s and 50s this afternoon. 50s and 60s inside the bay. only 50s out toward the coast. a little cooler. laud skies. chance of showers through tuesday. we re going to check o out out your time saver traffic next. good morning, traffic is eased up nicely at the bay bridge. metering lights still on. no delays to report. overall a nice ride into san francisco. over to the maps, as you work your way in near walnut creek, reports of an accident on the southbound side of 680 headed toward highway 24. south 680 also pretty busy once you get past 24. golden gate bridge a little sluggish headed into san francisco. and westbound 237 you have brake lights there. 12 minutes between 880 and 101 and northbound 101 busy through san jose. have a great day. wayne: who wants some cash? you ve got yourself a brand new car, baby. jonathan: a sapphire and diamond necklace. wayne: a trip to los cabos! jonathan: it s time for let s make a deal. now here s tv s big dealer wayne brady. wayne: hey, everybody, welcome to let s make a deal. you know what we re going to do right now. i need a family. why? because it s family day here at let s make a deal. all these families came to win cash, prizes, cars. watch this. who wants to make a deal? right there, the fisherman family. fisherman. everybody else have a seat for me. how you doing, robert? nice to meet you. carolyn, a pleasure to meet you. danny, a pleasure, sir. and last but not least, i can t see your name. - carson. wayne: carson. all right, so what we re going to do is we are going to make a deal. you guys are the first family up. inside my pocket, i have to dig deep for this one. where is it? no, i. oh, what s this? a bankroll. $50 on the outside. look at that, guys. that is a big, fat bankroll. this could be yours. now, this is thick. we can t tell what s in the middle, so it could be ones, could be tens, 20s could be 50s, could be 100s. this could be a lot of money. so, you could pick this or take curtain number one. here s how this is going to work. we re going to play a sound effect right now. you can decide if you want the curtain number one. what s the sound effect? (bell ringing) what does that sound like? - a bicycle. - bicycle. wayne: well, it could be one bike, could be three bikes could be a whole biking trip could be a zonk bike. take
moment with both parties wanting to talk about poverty, wanting to talk about criminal justice reform from the left and right. perhaps there is the president didn t seem too hopeful in terms of this congress but perhaps something that can be done. standby because we have a lot to assess. to our viewers, i m wolf blitzer wherever you re wchg from around the world thanks for joining us. we re following the breaking news an american city under a state of emergency right now. baltimore, maryland trying to recover after a night of rioting, looting and chaosnd a and the situation remains tense. u.s. national guard troops on patrol. 500 guard troops have arrived and hundreds more we are now told are on the way. the national guard says more than 5,000 military person really needed if they re available if they are needed and presumably they will be. looters picked thigh what s left of a through what s left of a burned out shoe store. some businesses remain shut down. shopping mall closed because of security concerns. schools throughout the city of baltimore, one of the largest cities in the united states are off today. they re out. some federal government workers were sent home early as a result and once again tonight s major league baseball game the baltimore orioles game has been postponed in part because of a 10:00 p.m. to 5:00 a.m. curfew on the streets of baltimore. the rioting broke out on the same day the family of freddie gray held his funeral. gray s death, while in police custody, set off the initial wave of mostly peaceful protests but his family strongly condemned the vie rence that erupted yesterday and moments ago you heard it here live president obama was asked about the situation and he said his thoughts are with the injured police officers. he condemned the looting and the lawlessness. there s no excuse for the kind of violence we saw yesterday. it is counteder productive. when individuals get crowbars and start prying open doors to loot they re not protesting. they re not making a statement. they re stealing. when they burn down a building they re committing arson. and they re destroying and undermining businesses and opportunities in their own communities. the city of baltimore has imposed a week-long curfew as i noted starting at 10:00 p.m. local time until 5:00 a.m. starts today. some residents are trying to pick up the pieces and move forward. they were out earlier today cleaning up trash and debris. it s an enormous job that s underway. ryan young and brian todd are both in baltimore for us. ryan give us a sense of what you re seeing what you re hearing on the streets of baltimore right now? wolf, what a big difference a day makes. we saw many people come out here with to sweep up an also to come help clean up the community. you can see the police officers right here but there s been a lot of counseling going down the line here. there s a group of older gentleman standing here talking with the youth to make sure this remains peaceful. this is a cultural extension because on the other side of this you can hear the drums and people playing instruments. there s a group that s come out to sort of entertain the crowds and make sure things stay peaceful. we ll seen poem from all over baltimore coming out to clean upp. coming with garbage bags and brooms to make sure they show they are a one baltimore. a lot of the conversation here wolf has been about the idea that the burning down the cvs across the street has taken away from the idea of trying to find out what happened to mr. gray. you can see some people are interlocking their arms, standing in front of the police. so far the police and the protesters have remained separated. the line that s here. look across the way there, that s the cvs. about a half hour ago jesse jackson arrived and talked to some of the members of the crowd. it s remained peaceful people having conversations breaking down in the crowd crying saying they need economic help but also want change and reform within this police department. todd you re there as well. where are you? what are you seeing? at the corner of north avenue and pennsylvania avenue here. and impromptu street protest has developed here. there are people here as ryan pointed out, not far from where ryan was, people arguing among themselves some factions arguing with others an older crowd trying to push the younger protesters back telling them they have to be peaceful some younger saying they have a right to vent their anger. it did get tense a short time ago. i ll take you back here where we re going to move among the protesters still talking, little tight squeeze here but this developed a short time ago when some of the riot police moved in to apprehend someone being vocal in the crowd. when that happened the crowd got agitated and moved up against the police started really becoming tense but it then called down. what s interesting is that a lot of the crowd as we noticed last week in baltimore, some members of the crowd as you saw here are self-policing. they re moving among themselves telling their fellow protesters to calm down. one lady actually grabbed one of these things and used it as a bull horn talking to people yelling at people to back off. so i mean they re doing self-policing today in the impromptu street protest. festive on occasion music and some drums playing here. so it has been a healthy atmosphere of protests at this intersection so far, wolf. again, you ve always got this little this energy right below the surface that is right there and kind of ready to explode. i think it could happen at any moment here on the streets even in daylight all eyes, of course will be on this area when darkness descends and the curfew is imposed this area has seen some of the worst looting and violence we witnessed. stores being ransacked and burned cars burned officers injured. keep a close eye on this section of baltimore today, wolf no let s hope the people there heed the advice of the president of the united states. go ahead and have peaceful protests but don t do the looting, don t do the arson, don t do the violence because you re going to wind up in jail. we ll get back to you, brian, as a lot of people around the country woke up this morning they heard about the looting and heard about the damaged buildings, the businesses that have been destroyed, the arrest the injurd in baltimore. this was a day that the gray family wanted to mourn. the attorney mary coke is joining us represents freddie gray s family. thanks very much for joining us. how is the family reacted to the violence that erupted yesterday? the family is i want to use the word disappointed. i ve used that word before. the family really hoped that freddie s legacy would be that positive change would be made that they could get answers to the question of what happened to their son, to their brother, but that it also would be a moment of positive change and moving forward and unfortunately, with the violence that occurred yesterday, it detracted from freddie s story and the question surrounding his death and did not honor his legacy in their opinion. what do they want the community to do now? they want the community to do what the community did when saturday began, which is the peaceful protests. the peaceful protests that showed this to the city to the city police department to the city as a whole, to the state, to the country, that these are things that happened that you may not be familiar with them they may not be things that happened in your life but there are things that happen in this country that we need to look carefully at them we need to answer the questions, that police and government needs to be accountable to the people and answer the questions when the questions are asked, and that in some way, shape, or form the peaceful protests continue to keeps the pressure on to keep the hopefully get the answers started rolling so we can finally have some understanding of what occurred on that day. have you received any answers from the mayor, from the police commissioner from others about what happened to freddie gray? he was taken into police custody, arrested then he wound up with a broken neck a broken spinal cord. he went into a coma and died in the hospital a few days later. have they given you any answers yet? absolutely not. we get the same answers that you get, you and the press get. we have asked certain questions. there are certain pieces of information that are going to remain the same regardless of what happens that are not going to affect the criminal investigation like the transmissions between the police officers that we give some indication of what was going on with freddie gray as he was being transported throughout the city and finally arrived at the western district. the information from the paramedics report about what they saw and did to render aid to freddie gray. of information about what other video survey lentillance have you gathered that the public should see or give insight into what was going on. the statement of the police officers are not going to change. those things that are not going to change are no danger of being of affecting negatively the criminal investigation because they are will always be what they are. they are memorialized in time. they are, for example the transmissions of police officer and 911 tapes are released pursuant to pia requests police departments to release that information. that is public information. the public has a right to know. the public has a right to transparency. and the family has a right to some answers. and to the extent they can be given it needs to start now. did you have a chance, mary, to haveear the six pointses the president of the united states laid out or asked about what s going on in baltimore? i did. i absolutely did. i listened very carefully to what the president had to say. what did you think. if you want you know what i think always which may sound like something that s such a simplistic answer but what i really think is what we really the basis of everything that he s saying is we need to treat each other with basic human respect. we need to interact with people whether those people come from if i m going to use baltimore references those people come from roland park a place where it s more expensive to live or pennsylvania north avenue where it is not as expensive to live people in those communities should be treated and interacted with exactly the same. and then until we start to recognize that and until we start to take make our police officers accountable is for their interactions with the community things are not going to change. number two what i think is what we said there needs to be a partnership between the community and the police department and i think that the way in which policing occurs now, there s not that same sort of thing that we had a decade or so ago where we were focused in baltimore and community policing setting up centers, setting up kiosks in neighborhoods, forging relationships between the officer who worked in that district and in that beat and the people that he was protecting and serving. i think that we need that again because you establish those on a personal level. mary i just want to interrupt for a moment. they ve just detained looks like they ve arrested someone there you see it right now. these are live pictures coming in. i don t know what this individual is being detained for. this is individual tapevideotape coming in. one individual has been detained. police there with their shields, with their helmets, batons they re going through this crowd. we re beginning to see smoke there. let s hope that it doesn t escalate but clearly a tense moment. we re going to stay on top of this. i want to thank you, mary coke the attorney for freddie gray s family for joining us. we ll continue our conversations down the road. these are live pictures once again. you see a row of police now standing protesters on the other side a sensitive time indeed. national guard troops are also on the streets of baltimore. they re pairing with local police in a show of force after a night of violent rage and rioting. joining us from atlanta the chief operating officer for public safety in dekalb county georgia and the president of the national organization of black law enforcement executives and key members of the white house task force on community policing. joining us from los angeles the city councilman the former chief of police bernard parks. and also deputy chief during the rodney king riots which incidentally began 23 years ago tomorrow. to both of you guys thanks very much for joining us. chief parks, first of all, your reaction to what s going on in baltimore specifically how the police handled themselves yesterday? i think wolf you have to look at the circumstances that we have seen over time little is gained by allowing a crowd to not only animated but involved if criminal behavior and not get involved in that. it destroys the ability to have a peaceful march and demonstration and allows the criminals in the crowd to take over the circumstances and to then get where we are today. where buildings are burned down and the communities in upheaval. i think that as we saw it again in ferguson the first couple days where decisions were made not to take aggressive action you have to stop criminal behavior before it takes over the city. a good point. i want to move on and look ahead. let s look back briefly right now. where was there a blunder yesterday? this is not what the mayor wanted not what the police commissioner wanted but we saw not for ten minutes or 20 minutes, maybe two hours, looting going on especially at that cvs pharmacy. i didn t see police vehicles rush to the scene. i didn t see police officers go there. i assume a lot of young guys looting that pharmacy would have run away if the police would have shown up? yeah. well i m going to be careful wolf here because what may have occurred and, of course i m not there in baltimore, i don t think they expected once school let out they would have such situation on their hand. it appears that they may have been just unprepared for what emerged very quickly and rapidly up on them and when they tried to bring in the resources they needed it may have taken a little bit longer than they anticipated. the thing about this wolf i ve said this before there s no specific playbook to this. if we go back and look at ferguson we saw a lot of clear mistakes that were made that we all frowned upon. i think the city of baltimore took a much less harsher approach but what happened things sped up very quickly for them as well too. it s trying to make that balance in the decisions as to how much force do you apply, how much do you not and in this particular case it didn t work out very well for them. but it appears they re much more prepared today, at least let s hope so. it s going to be a long day. let s hope they are better prepared today. chief parks your thoughts because it was so frustrating we were all watching it live on television here on cnn all the local stations in baltimore were showing live helicopter pictures of what was going on the looting there, after five or ten minutes, i assumed the police would show up they didn t show up for two hours only after the fire started and the fire engines couldn t get there, firefighters couldn t get there, and eventually they got there. what can you is there any rationale explanation why the police didn t show up at that pharmacy or that liquor store or that cell phone store or the check cashing store and stop what was going on? well there s only two things that could have occurred. one, if they were overwhelmed and did not have the necessary resources and they couldn t deploy them safely that would be one reason. if there was a conscious decision not to respond and allow it to play itself out, that s another decision. that s the only two things i can think of that could have occurred because if you are addressing this and overwhelmed you re not going to send a small contingent of officers in to become overwhelmed and not handle the situation. two hours in many instances with mutual aid and a variety of things that are in place throughout the nation it would appear that you could assemble resources to at least have a visible presence. yeah. you would have thought. i m sure they are going to be reviewing that and get lessons learned down the road to the only in baltimore but other communities as well. both of you stand by bernard parks and cedric alexander. back to ryan young our reporter on the streets. i just want to be precise, ryan it s pretty peaceful right now. there have been one or two violent incidents, right? let s be honest i ve been here the afternoon talking to people in the community and we haven t experienced anybody who seemed like they were going to be violent. right now, the crowd is dancing around us. they re doing a circle around the entire area where people are protesting and you can hear the music in the direction. we re going to walk closer. this right here is called capleta a brazilian martial art, showing this while everyone is kind of calmed down. they don t have the same sort of issues we ve seen before. theres has been some back and forth in terms of people yelling at the police and being upset but it has stayed at a distance not the same anger that we saw or experienced from yesterday. i talked to the people here in the crowd and they say they are trying to make a bigger difference in terms of making sure their voices are heard doesn t get out of hand. you can see a lot of children here as well. this is a crowd black and white came here earlier to clean up. handing out water to each other. you do not feel that tension. they re making sure they keep the media accountable. one of the things they want to talk about yes, that cvs is burned down they wanted to rebuild and talk about that today in terms of having this community not have what happened just a few hours ago. ryan, i m going to have you stand by as well. i want to bring in a community activist who we first met in ferguson, missouri now in baltimore, as part of a peaceful protest. thanks very much for joining us. what s your plan today? what s your mission in baltimore? we re here supporting the protesters on the ground and continuing the movement. there s been a lot of positive demonstrations over the past couple months here in baltimore and across the country because of police the police have continued to kill people. tonight will be another night where people come out in the streets to confront a system that is corrupt. you want peaceful protests right? yes. for sure. and remember the people that have been violent since august has been the police. 300 people that have been killed alone, that is violence. property damage here that s been really unfortunate over the past couple for a day or so here. there have been many days of peaceful protests in baltimore city and places all around the country. at least 15 police officers have been hurt 200 arrests, 144 vehicle fires, these are statistics local police have put out 15 structure fires. no excuse for that kind of violence right? again, there s no excuse for the seven people that the baltimore police department has killed in the last year either right? we re not making comparison obviously. we don t want anybody hurt. i just want to hear you say there should be peaceful protests not violent protests in the tradition of dr. martin luther king? there should be peaceful protests. i don t have to condone it to understand it right, that the pain that people feel is real and you are making a comparison. you are suggesting this idea that broken windows are worse than broken spines right if what we know to be true is the police are killing people everywhere killing people here six police officers were involved in the killing of freddie gray and we re looking for justice there. and that s real right. like the violence that the police have been inflicting on communities of color has been sustained and deep. but you agree i assume with president obama who said a few moments ago, no excuse for the violence that erupted yesterday, no excuse for the stealing for the arson, you agree with the president? what i agree with is that i advocate people to peacefully protest and know that pain manifests in different ways and i don t have to condone it to understand it. people are grieving and people are mourning. and i would advocate personally for people to do it in ways that you are calling peacefully. i know that freddie gray will never be back and those windows will be. the and the president also said president obama, he said the violence he said distracted from the peaceful protests and distracted from the morning that the family of freddie gray was seeking yesterday. your reaction to that? distracted from progress is when city officials get on tv and call black people in pain thug s thugs. that s a distraction. i think that the unrest the uprising whatever you call it is again a cry for justice here and a cry for justice across the country because police continue to terrorize people. the terrorizing is deadly. broken windows are not broken spines. people are in pain. so i think that the president, i hope that he understands the conditions be that created the unrest and continue the unrest not only here in baltimore but across the country. freddie gray will never see another day or tamir or mike brown. a community organizer in baltimore right now, was in ferguson thanks very much for joinings us. i want to go back to ryan young on the streets of baltimore right now. ryan update our viewers who may be tuning in what s the latest? wolf we re walking through the crowd and talking to people. let me tell you something, mostly everybody is coming together. if you look around us people showing up with hats and coming from baseball uniforms on because they re coming out to clean, being a part of the community, black and white. the music has taken over, the center of the street an the crowd is clapping in unison altogether working throughout and talking about police issues. at the same time there have been arguments about how it should be cleaned up or done but everything has remained remarkably peaceful so far. not the sort of tense moments we thought we would see from a little earlier when there was some people yelling at the police officers. the only thing that s happened so far over here there was a shift change. look now the crowd has put a bayer between the protest bayer between the protesters and the police officers. took off my badge and dropped the mike and walked through the crowd about ap hour talking to people who live in this neighborhood and they wanted to make sure this neighborhood was highlighted for the right reasons, not just what happened yesterday. obviously people who were crying over what happened in this community because they realize it s going to be a long time before they get it back. one of the things they want to talk about the idea they re strong as a community and they plan to rebuild and come back. look at this crowd and see what s going on you can see the fact that everyone is coming together and not even from the same neighborhood. people just want to be a part of it wolf. let s hope it stays peaceful over there, ryan thanks very much on the streets of baltimore. a quick break. when we come back we ll bring in to our coverage a member of the city council, much more of our special coverage from baltimore right after this. headache? 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(laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. a news conference under way, baltimore county police are briefing reporters. let s listen in. the thing to do with the safety issue whatsoever our messaging for the parents are please let your kids stay in school please let your kids keep doing the things that they do day to day. there s no reason for anyone to deviate from a normal routine here in baltimore county. okay. thanks. thank you very much. all right. well, we obviously got in at the end of that statement. we ll turn the video around and see what they said. clearly this is still a major, major crisis. state of emergency under way in baltimore. mostly peaceful largely peaceful protests under way right now, although there have been a few incidents, some looting going on some arrests, but basically peaceful for now. the numbers from the night of chaos in baltimore, though, they are staggering. 202 people arrested. 144 vehicle fires. 19 structure fires. 15 police officers injured. joining us now from baltimore, district seven councilman nick mosby. your city under a state of emergency, curfew from 10:00 p.m. to 5:00 a.m. how did it get to this point? it s really rough to say. we saw, you know, two weeks of quality protesting very productive and then unfortunately saturday we had a small pockets of folks that were unproductive an then yesterday it just quickly turned south. some children baltimore city public high schoolers decided to do a purge movement via social media and got the word out and they were going to meet in a mall in west baltimore and the police met them and confronted them and it turned out of hand. unfortunately, i think that we just weren t prepared the way that we should have been prepared for what took place on the streets. about 4:40 yesterday i got stuck on the intersection of north and fulton and, you know, i saw police cars completely pummeled with rocks. i seen a car set on fire. i was trying to get back to city hall. the one thing i will say is that the things that have been working to deescalate and defuse the situation, i got together with about two 200 to 300 pastors yesterday and walked the streets, basically walked in front of the police towards the demonstrators and protesters and folks causing the violence to say enough is enough. many of them called, it calmed for about two or three hours before it started back up again last night. started up violently. why was the community, the police the local lumts authorities, state, county federal, why weren t they prepared for this? there was at lot of indications throughout the day, especially since saturday night, that this could turn ugly? i know about 10:00 we tried to send e-mails off and know what the appropriate tactical steps and what we should communicate to the community. unfortunately we really haven t seen urban rioting like this since the 60s. i mean folks have constantly compared this to ferguson but it s a total different monster. west baltimore is blocks upon blocks of streets an houses with abandoned buildings and abandoned residencies and good incubator for rioting like this. one thing i want to stress is that unfortunately through this violence which is going to overshadow probably 90% of the peaceful protesting these folks, i don t condone any of it unacceptable and we must development enforcement to go after them but these folks are expressing anger and us from sfrags decades ol of systemic and structural issues in the poor urban communities. this is not a west baltimore thing. this is an urban american thing. after we get calm after, you know we re able to calm the situation down it s critically important that we develop priorities of going out there and providing real opportunities for the young men and women crying out for help. we are just getting word nick that as you can see on the screen there have been according to police 235 arrests, 34 of them juveniles, juveniles you were talking about social media, talking about that film purge that seemed to instigate some of this tell us what was going on? yesterday i have a young guy in my office from the community who works in my office who reached out to me and told me that his social media feed was filled with meet at mondawmin and we ll purge the city from mondawmin to downtown and kept getting it on facebook on twitter, kept getting it on instagram and so we immediately reached out and we found out that it was true and accurate. the police probably met the demonstrators with 50 to 70s officers and armored tanks and basically pushed the activity south on to the street which is a main east/west thoroughfare called west avenue. the protesters took it completely out of hand when like i said i was stuck, i saw police cars windows bashed out and it really continued for hours. and again, unfortunately, you know that time period of about ten minutes of all the events that have taken place over the past two weeks is going to really overshadow all the productivity that s come out of folks trying to really exercise their right and movement. if you can stay with us i want bring back cedric alexander, also from los angeles, the former chief of police bernard parks. what s your reaction when you hear the city councilman make those points bernard? something evidence in many of our cities poverty, lack of education, under education, unemployment large return of people out of the state prison system these are the same issues that were relevant in 65 riot in los angeles, same issues that were relevant if the 92 riot and if you go through our communities and you add homelessness, mental illness, and the issue of veterans not being able to come back into their community, these are the same elements here today. so you can use the police or the city government as a posterchild for these failures but if you don t get into the issue of the poverty, mental illness, mental health what do you do rehabilitating people out of prison, how do you educate our children why are we still in today s age under educating a large population of children particularly in minority communities. this will continue to fester. cedric you re on the president s commission to come up with better policing techniques better ways to deal with the kinds of problems. you heard the president of the united states make his points just a little while ago in the rose garden at the white house. what long term we know there are enormous problems out there, but what needs to be done immediatelily right now to make sure we don t have another night like last night? that document that we were directed by the president to put together it is very clear in there. there s six pillars in there, wolf and one of them the beginning the first pillar is building trust and legitimacy between police and community. if you were to go through that document and i encourage everyone to pull it down from the u.s. justice department site in there there are things we can do right at this minute to begin to build relationships in our recruitment process, the police officers in our training in the technology that we know we need going forward, but it is very, very important, regardless even of what s happening in baltimore at this very moment relationship building is key and it s going to be a very important as that community and other communities across this country continue to move forward. nick mosby you re a councilman we know there s a state of emergency in baltimore right now that s understandble bleunderstandble, we know schools have been closed not going to be a major league baseball game the orioles aren t going to play because of the 10:00 p.m. curfew in part and there are thousands, literally several thousand national guard troops on standby to come into your city if necessary, if the community starts seeing national guard troops military personnel, joining local and state police on the streets of baltimore, what will be the impact? i mean immediate shock. it s real to sit and see tanks, you know coming down streets and, you know, armored folks around the city but it s surreal to see buildings burning, cars on fire folks running around with masks. at the end of the day no one wants to be in a police state but it s also critically important we attack this issue and attack it immediately. we have to defuse and deescalate this as soon as possible and need the subject matter expertise to make it happen happen. obviously, you know, the situation has escalated throughout yesterday into the night and we cannot afford as a city community, country to see that again broadcasted throughout the world. these kids are not just baltimore kids these are american kids. and we have to get to them, we have to make sure the folks causing the unproductive rioting make sure we provide the right enforcement and again i will continue to stress i do not condone it it s illegal and we have to go after it but we have to calm the situation as quickly as possible because the longer we allow it to go on the more destruction that could happen and the further the chasm between the criminal justice system police and community will continue to grow. this is an issue that s going to take time to heal and nothing that s going to happen overnight but we have to deescalate the situation as quickly as possible. well said. nick mossby stand by. we will speak with a leader of the community, congressman elijah cummings standing by took to the streets to stop the violence last night. he lives in this community. we ll ask him what s going on right now. what needs to be done representative elijah cummings joins our conversation after this. 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[announcer]our new online business planning tools will help your business thrive. wells fargo.together we ll go far. there s no excuse for the kind of violence we saw yesterday. it is counter productive. when individuals get crowbars and start prying open doors to loot they re not protesting. they re not making a statement. they re stealing. when they burn down a building they re committing arson. and they re destroying and undermining businesses and opportunities in their own communities. strong words from the president of the united states in the rose garden just a little while ago condemning the violence that erupted on the streets of baltimore last night. once again, nick mossby is joining me a councilman and cedric alexander the president of the national organization of black law enforcement executives and bernard parks the city councilman former chief of the lapd. you hear the president bernard parks make a strong statement like that what goes through your mind? i think those are statements that are necessary, but wolf i think what we keep going through these processes and whether no matter what city they re in i think we re missing one of the major points that is we keep critiquing whether how the police handles a circumstance in which they have little power to change. the real problems in our society have to do with things outside of the police department. we can create all kinds of relationships with the public but if you can t provide them a job, can t provide them mental health can t provide them with the things that are necessary in the communities like drug stores grocery stores then the police ares just dealing with symptoms and when they break out as it relates to issues throughout our nation the police are critiqued on how they handled it. the real problems in our society are not within the police departments wherewithal or expertise. the police department can do little about poverty. they can do little about education. these are things that keep getting overlooked. if you go back to the 65 riots in l.a. and you read all the reports that identify what the problems were many of them still exist and yet we re still critiquing how the police responds when there is an outbreak. that s a fair point. the president made that point as well part of a much bigger picture. the police can t control the issue of poverty, a bigger issue that has to be assessed. cedric alexander, the baltimore police department just updated us and said there have been 235 arrests. of those 235, 34 juveniles and 201 adults but adults mostly in the range of 18 to 30. and we re trying to figure out if these people arrested were local residents of the chance from baltimore or so-called outside agitators. at least the initial impression we re getting these are local residents of the community not necessarily outside agitators. that s significant, right? well it is significant and significant in the sense that it tells you that there are people who are indigenous to that community where we re seeing these problems today and last night, that are making themselves known and are pushing back against the police. but, you know, i tell you, councilman parks is so much right on point in terms of what he s saying. this is a much larger social issue, police departments are left to do the work and the fact that we are left to do the work it the fact of the matter is this is what we have to contend with. so we still have to build those relationships, we still have to look to technology to help us as we advance policing in the 21st century, because there s some things right here right now, that we can do. are they largely systemic issues they are, wolf but there are things we can do here and now to help build an grow our communities. a lot of stuff all of us need to do to fix this problem. that will take a long time. nick mossby what do you think of the way the mayor and police chief have handled this crisis since the death of freddie the death that happened almost two weeks or so ago? wolf i think there s been significant challenges but, you know it s really important for us to focus on maybe not monday morning quarterbacking what hasn t been done but how can we handle and address things going forward. we have to take a sus sinct and sound approach to calming the city down and the subject matter experts who can perform that. if i could comment on the conversation prior, you know you re right, police officers can t change socioeconomic issues and communities. however police officers like any public servant, teachers or firefighters is critically important that we have sound and quality relationships with the communities that we decide to serve as public servants. i think that that s the main issue. it s you re right, social economic issues are there, but why is this prevalence of distrust with our communities and the law enforcement and why do time and time again we run into these issues where seemingly healthy young men goes in and 40 minutes later is paralyzed. excellent questions and important issues, nick mossby. standby. ryan young our correspondent on the streets of baltimore. what s the latest over there, ryan? wolf ten seconds ago you missed a stirring scene here. the community has taken over the intersection here. they started singing amazing grace and look at this crowd there are all walks of life. listen to them clapping and watch how long and big the circle is. the circle is wide and now they re screaming peace and unity. they sung amazing grace three times. this is you can hear it. they want peace. and this has been sort of you can see how people have taken over while people have started cleaning the cvs across the way. no tension here right now. this is more baltimore coming forward and showing what they really what they told us what they want to show the world is they can come back together. the police have faded in the back. look back in this direction, that s the police line. you don t really see them anymore. they ve been separated because of the crowd. peace unity and save our brothers. peace, unity. why do you think this is important to be here right now? this is important. we re in a pivotal moment. there are multiple things going on right now. one of the most important things i think the message that the city councilman and the city representative sent out yesterday it was a sad message. the mayor got on public got on national television and called her, said these were her children and also said these were the thugs of the city and the same breath. you can t call the children of the city and the thugs of the city the same thing. are you glad everybody is coming together? it shows that it shows naturally unity and peace naturally reside. naturally humanity we possess a unity and peace that naturally lives on the inside of us and this shows us. you can hear the passion from people who have decided to come out on their own and sort of police themselves. once again, wolf police have faded to the background people singing an the tension has washed away so far. all right. ryan standby. let me get reaction to what we heard knicks mossnick nick had to leave. bernard parks, from the one protester upset the mayor of baltimore referred to some of those individuals as thugs, presumably those who ransacked the store, wept in looting, started the fires, destroyed police and other civilian vehicles. they weren t happy with that. the issue is whether there s many times in these circumstances that we get taken off course and we can debate and dissect a word and lose sight of the larger issue. the people involved with breaking in buildings and looting are criminals involved in criminal activity and there s no way that you can shine that and make it anything different. so the issue is you can spend a lot of time depending i used the word criminal and the mayor thug and lose sight of the issue of why are we having fires in baltimore and how did we get to this point. i think the issue is important for the media and everyone involved to stay as focused as you can on the main issues and the resolution and at some point we re going we ll come to grips with the fact that the major issues in our community, although we do need relationships with the police and community, they only go so far if that person in the community can t get a job, if that person is mentally ill and can t get care. these are major issue in our community that we need to resolve. they haven t changed in the last five decade that i ve been in public service. so the key is again, let s not get distracted. let s not get to the point of dealing with issues that are picking specks in the sense of looking at things very minutely. let s stay on focus and let s stay with the larger issue of solving the problem and find out where the symptoms are the things that we spend a lot of time on, and the symptoms rarely take us to a conclusion of success. yep. hard to believe this stuff is going on in a city like baltimore now. bernard park stay with us. let s take a break, resume our special coverage right after this. building aircraft, the likes of which the world has never seen. this is what we do. that s the value of performance. northrop grumman. we re standing by for a live news conference from the baltimore city police. at the top of the hour we ll have live coverage here. get the latest information. in the meantime we ve got statistics. the latest numbers coming from baltimore right now. we ll put it up on the screen. as of right now, there have been several arrests, more than 200, 235 people arrested. of those 235, 201 are adult, mostly 18 to 30 years old, 34 juveniles also arrested. 144 vehicle vehicle fires police vehicles, civilian vehicles, 19 structure fires, meaning buildings that were burned to the ground. 15 police officers have been injured. ryan young is on the streets of baltimore for us. ryan relatively calm so far. let s hope it stays that way. you have a special guest. reporter: yeah relatively calm. i ll tell you now you hear the music behind us. the people are singing. a lot of self-policing going on. as you see young men that we had talked to earlier, leading people singing. they ve been holding hands for the last half-hour making sure it remains peaceful. when someone started yelling at police they made sure to pull that person back. one young man who s been in this crowd wanting to talk about the community he lived in his entire life he said we are glad to see what s going on today. but you want change in the neighborhood. yes i do, yes, i do. it s awful here, man. we have too many homeless people and too many abandoned houses. how is that possible? so how it possible? this is seriously, it s a liquor store on every corner. reporter: when you saw what happened yesterday, when you saw the when it was burning, how did it make you feel? it made me feel bad, but at the same time i knew it would bring attention. look, it did. we re getting the attention we need. we might not be doing it the right way. that s because some people are not able to express themselves, but it should not be a liquor store on every corner. describe what s going on for everyone at home and what today feels like compared to yesterday. what s going on today is a lot of tension here, people is getting fed up you know. it seems like it seems like it s just about to be the last straw. it s about to be last straw. reporter: you think today s not peaceful? today it s peaceful. yes, it s peaceful! but people are getting tired. no justice, no peace. that s what it s no justice, no peace. it s been peaceful now. but when will the justice come? when will it come? waiting too long. if an officer would have got killed the person would have been committed he would have been arrested. he would have been went to court and all that. it would have been happened. reporter: thank you for stopping for us. appreciate that. you see, a lot of people still want that justice/peace. people talking about that. they want to hear from the mayor and city council about the investigation. to tell you, as we re talking now, there are people walking around with bullhorns addressing the kroupd.crowd. people walking around addressing the public. across the street, cvs is still being cleaned out. and we can see officers here. so far once again, it is remaining peaceful at this time. let s hope it stays like it. but you don t see much of a police present where you are, ryan is that right? reporter: there is a police presence. let me show how they ve been insulated from everyone else. i ll let my cameraman walk that direction. you sze everyone is standing. they are at the ready but not needed at this point. obviously they ve got shields, helmets. they re ready. the protesters are not doing anything. yesterday they were throwing rocks. none of that has occurred, right? reporter: no. i m going to walk down the line. this is the line, this is the line that insulates people from what s up, brother? this insulates people protesting from the police officers, they re doing this on their own. no one told them to do this. you see older men from the community making sure thing remain peaceful. this line has been here for over an hour. no one s talking. if anyone walks up to the line they have a conversation with the gentlemen here and it s squashed at the line. it doesn t go past these men who here protecting their community. how are you being received by the local community? any problems? reporter: none whatsoever. i took my badge off i took put the mic down walked through the crowd for over an hour talking to people. this gentleman and i talked earlier about the ideas of what s going on, what they absolutely want. that s something, they want to be heard. they wanted to make sure that the picture that was shown to the world of the one that s going on here. where men have shown up today to stand up and make sure the conversation doesn t change to what it did yesterday. yesterday they were upset to see young men throwing rocks and being involved in what was going on yesterday. yes, they were sad to see that burn down, but they wanted to make sure today it s changed. thank you very much. this it for me. i ll be back at 5:00 p.m. eastern in the situation room. our coverage continues with brooke baldwin in baltimore now. here we go, top of the hour, i m brooke baldwin, special live coverage from the city of baltimore. i m in front of baltimore city hall. heads up, we re watching a lot this afternoon. first and foremost any minute we are expecting a news conference which will take place live not far from where i m standing at the baltimore city police headquarters. we expect to hear from the police commissioner anthony batts. we ll take that live. but perspective
a top doctor s group is urging doctors to stop looking for heart disease in all the wrong places. american college of physicians say doctors are ordering too many tests. they re expensive. and the frequent false positives add more tests and more expense. fresh scrutiny this morning. fashion powerhouse dolce & gabanna, by the same a-listers they adored. elton john is leading the charge against the designers, calling for a boycott. they re the dynamic duo behind iconic red carpet looks. designing for celebrities like channing tatum and. but one star is saying no to dolce & gabanna. elton john boycotting the brand after comments to panorama.” an italian magazine. dolce is quoted as saying, you were born and have a father and a mother. at least that s how it should be. taking aim at children can be alternative methods, calling them children of chemistry and synthetic babies. dolce & gabanna were romantically involved for 20 years. john and david furnish have two sons born by a surrogate. i m the happiest guy in the world right now. they brought more joy to me, than anything in my life apart from my partner. reporter: the proud father posting a photo on instagram saying how dare you refer to my beautiful children as synthetic. and shame on you for wagging your judgmental fingers at ivf. your archaic thinking is out of step with the times like your fashions. i shall never wear dolce & gabbana again. other celebs also weighing in. victoria beckham, tweeting her support. sending love to david, zachary, elijah and all of the beautiful ivf babies. courtney love, i just rounded up all of my dolce & gabbana pieces and want to burn them. dolce and gabbana not backing down. i did not expect it from a person i believed to be intelligent like elton john. dolce saying, i m aware of the fact there are other types of families. and they are as legitimate as the one i ve known. gabana adding, it was never our intention to judge other people s choices. we do believe in freedom and love. huh. it was really buzzy on the internet today about this whole entire thing on facebook and twitter. a lot of women, especially my generation, have gone through ivf, have done surrogacy. it s something i ve thought about in my generation of women. there are a lot of women having it s like stabbing us in the heart by saying something like this. it hurt a lot of people. i saw on facebook and twitter, shouldn t we have more tolerance if a man has an opinion. doesn t he have a right to an opinion? you have a right to disagree and boycott that opinion. i ve been boycotting them for a long time. their stuff is too expensive. really? yeah. we ll be right back. we ll be right back. with temperatures finally warming up, people and their pets are rediscovering the great outdoors just in time for spring. the global pet expo showed off a bumper crop of pet accessories. and joining us is dickey debartolo. the giz wiz. good morning. i have fun stuff. unfortunately, about 2 million dogs are kidnapped every year. and people go into stores and restaurants. and they just leave their pets outside. if you do that i would never do that. but this is called safe spot. it is a locking leash. this is the doggy collar. that locks here. the other end, you pop out this end. this goes around something immovable, a parking meter or a tree. you can adjust the length of it. couldn t you cut it? there s a steel cable inside of it. and this locks. and you take the key with you. most kidnappings are a run and grab. they re not going to fuss around with this. they ll get a dog that s less secure. that s safe spot. these are condiments for pets. for pets? for pets. we use ketchup and mustard. they are condiment-like. but they have vitamins and nutrients. we have petchup. we have bark b-q. we have muttonaise. and they have them for cats. there s do they taste good? i don t know. i didn t want to open them before the show. but since i got them, my dogs have been at the box they came in. sniffing, scratching. yeah. they do like them. this is new from hyperpet. this is a small mini cannon for smaller dogs, you pull back on them. the further back you pull, the further you go. we don t want to break equipment. i just pulled it back to the first notch. i forgot to put the ball in. when you pull it back, if the dog has picked up the ball several times and it has, you know, stuff on it, you push down on it. don t hit the tv. that s fun. might be also fun for a toddler. not bad. not bad. this is neat. this is called doggy pet maze from buster. when you throw snacks down, they eat them in a second. you throw the snacky things in here. and they have to figure out, should i push it with my paw and get it to come to the end? or pull it out with my tongue. it makes it into a game. do they ever give up? again, i didn t try it. i didn t want things to be slobberish before the show. one display model. any idea what this is? what that is used for? this looks like in the mommy world, a breast-feeding pillow. you didn t expect that? no breast-feeding of dogs. this is puppy bumper. you can see on the package, you have a tiny dog that s small enough to run through the pickets of your fence, you put this and his head can go through. but the rest of him won t go through. the puppy bumper. and the cone they have to wear? i don t think so. there s video on their website. and this goes on the collar of the dog so it doesn t slip off. that s a great idea. hand me that last thing. a snack duo. day in the park. this is neat. there s a wall down the center of this. this side is for dry food. this is for water. when you get to the park, you push down on this. and you have a little portable bowl. that s genius. i could use this for running. yes. and you can hang it from your backpack or whatever. you find the best of the best. neat stuff. next month housewares. i look forward to that. dick, our giz wiz. to get more on the products, check out gizwiz.biz. or head to our facebook page wnn fans.com. take cover. you re watching world news now.” you re watching world news now. that s what i like to call, the meta effect. 4-in-1 multi-health metamucil is clinically proven to help you feel less hungry between meals. experience the meta effect with our multi-health wellness line. i take prilosec otc each morning for my frequent heartburn. because it gives me. zero heartburn! prilosec otc. the number 1 doctor-recommended frequent heartburn medicine for 9 straight years. one pill each morning. 24 hours. zero heartburn. you clean with soap and water, about a thousand times a day. but germs might still be there. new lysol tap top will change the way you clean. it kills 99.9% of germs without harshness, to help protect your family. lysol tap top. start healthing. i started playing rugby when i was about 12. and pretty much haven t stopped since. i don t really think about my hair too much. but, i started going gray kind of early. and it s just not me. only just for men easily targets gray with a comb-in applicator. so you get a natural gray-free look. guaranteed. just you and the look you want. just for men. you get used to stale odors in your mudroom. you think it smells fine, but your guests smell this. febreze air effects works instantly to eliminate odors you ve gone noseblind to. smells like a field of awesome in here. so you and your guests can breathe happy. thank you for calling colonial penn life insurance company. i m glad i was able to help you today. hi, my name is jonathan lawson and i m a customer service representative for colonial penn life insurance company. insurance can sometimes be difficult to understand, but here at colonial penn, we make it simple. alex trebek has been representing colonial penn for over ten years and is here to tell you how we do it. thanks, jonathan. i m happy to be here with these knowledgeable colonial penn representatives. i know that customer service is a priority for them. i ve been representing colonial penn for over ten years talking about their guaranteed acceptance life insurance. if you re 50 to 85 write down the toll-free number on your screen and call for free information. with this insurance, there s no medical exam, no health questions either guaranteed. you cannot be turned down because of your health. your rate will never go up and your benefit will never go down due to age. it costs just $9.95 a month per unit. that s less than 35 cents a day. call them now. you ll be glad you did. at colonial penn we ve been serving our customers for over 50 years, and we have over half a million life insurance policies in force that help cover funeral costs, medical bills, credit card balances or other final expenses. we re committed to our customers. we make insurance simple! (representatives speaking) like a what? you look like a like a what? a rap superstar irish. an irish rap superstar. there you go. a little irish jig to give us a start. let me do this. we re going to do the mix.” let s get through it quickly. shall we? i don t want my momma to see me like this. st. patrick s day. let s roll the video. doing st. patrick s day all over the world. here are just some pictures from all over the world. switzerland, going to the coliseum. the great wall of china. the chicago bears stadium. these are just lovely sights from all over the world. everybody getting in on this st. patrick s day. now, our intern, marcus, have put together facts for us. i did not know this. there are no female leprechauns. are you sure? again, he s the intern. interns know what they are talking about. no female leprechauns. did you know that? i did not know that. and there s 16 places in the u.s., named dublin. alabama, california, maryland. georgia, arkansas, et cetera. i hope they go all-out on st. patrick s day. those are the sights. beautiful sights. you can own a piece of the emerald isle with kick starter. it s called jar of ireland. it s like soil that you get. it s a jar of irish soil. so far 16 backers. only a few hours. it looks like 61 euros have been pledged. they have a goal of 3,000 euros. in each jar, you get 100% genuine irish pete. perfect for irish family or friends. i have no idea what the u.s. agriculture department thinks about this. i once brought in a banana from jerusalem. and a little dog sniffed it out at newark airport and asked me to return it. i lost the banana. i had a 1-year-old child that was not happy. they took your banana? they do. you cannot bring in fruit. or agriculture products. they have a little dog that sniffs it out. i don t know how they re doing it. but they re doing it. one more. at least one more. try to get through two. world s shortest st. patrick s day parade in arkansas. my home state. why is it the shortest? because it s on the shortest street in the country that s functioning. it s a 98-foot-long street. bridge street in hot springs. just outside of little rock. this is hot springs. people go there for the hot springs and the spa. it s 98 feet long. that s about 5 1/2 chevy suburbans. that will fit on the street. they do a nice little parade. long-standing tradition. shortest parade in the country. you remind me of a leprechaun. don t take don t take the clothes off anymore. i think we should bump in and out of each show with this. may the luck of the irish be with you from world news now.” and our lucky leprechaun t.j. holmes. this morning on world news now, new charges against robert durst. the millionaire could face the death penalty in the murder case cracked open by his apparent confession. full details ahead. flood emergency. neighborhoods washed out as the midwest deals with record water levels. and those waters leaving massive chunks of ice, cracking roadways and creating a complete mess in low-lying areas as the winter thaw continues. and trial by fire. an incredible rescue caught on police body cam. only two weeks on the job, a sheriff s deputy busts into this burning house to pull a woman from the flames. and it was a star-studded night on dancing with the stars.” chock full of cha cha chas, flips and a huge standing ovation with hollywood royalty cheering them all on. details ahead on the skinny on this tuesday, march 17th, st. patty s day. announcer: from abc news, this is world news now . top of the morning to you. i m reena ninan. that s like an irish that s my version of the indian girl trying to be irish. is this your favorite holiday? i was into it. we had green cream cheese, which i threw up after eating in the third grade. oh, wow. tell us more about your dealings as a child. let me tell you about my dealings as an adult. did you get an e-mail from oprah winfrey? about about an hour ago. about a something her and deepak, right? manifesting through success. i signed you up for a free meditation. was that you? oh, my lord. i want to tell our folks at home. yes. they re doing a 21-day free meditation. you can listen on your ipod. it s 21 somedays. it s called manifesting through success. it s about quieting your soul. i thought you could use it. you re the one stirring my soul up most days is the problem. that s true. that s why i feel the need for quiet time. got this excited. oprah wants you oprah is inviting me to something. it was you. it was me. wow. that kills my joy. you should try it. okay. we have a lot of breaking, serious news. that case just fascinating america. people are captivated by this thing. and good reason for it. you have been keeping up with this. this bizarre case. the billionaire real estate heir, robert durst. now, we have another twist and turn. he s facing gun and drug charges in louisiana. in addition to a murder charge in los angeles. if he s convicted for the death of his friend, susan berman, prosecutors could seek the death penalty. they alleged durst laid in wait at berman s home, before killing her execution-style. with more on this case, now, let s turn to abc s marci gonzalez. reporter: robert durst in a new orleans courtroom. his attorney insisting the real estate heir is not guilty in the shooting death of his friend susan berman in 2000. bob durst didn t kill susan berman. reporter: a contrast to durst s chilling apparent confession. what did i do? killed them all, of course. reporter: which aired for the first time on the finale of hbo s documentary series the jinx.” there it is, you re caught. reporter: the six-part series profiled berman s death as well as the unsolved disappearance of durst s first wife, kathy, in 1982, and his neighbor in 2001. in that case, durst was acquitted. after claiming self-defense. in interviews for the documentary, he repeatedly insisted he was not a killer. off camera, in the bathroom, apparently unaware his microphone was still on, the bombshell audio was recorded. it wasn t until two years later that an editor discovered it and handed it over to police. justice. it was so chilling to hear it. reporter: the 71-year-old was taken into custody on saturday at his new orleans hotel where he was registered under a fake name. and according to the police report, he had a gun. the lapd, which issued the warrant, says the hbo series had nothing to do with his arrest. the fbi believes when he was arrested he may have been trying to flee to cuba. his attorney denies that. he is expected to be brought back to los angeles to stand trial. t.j. and reena? u.s.-led air strikes have hit suspected isis targets near the iraqi city of mosul. video here shows equipment being targeted. iraqis are getting more help from iran. this morning s new york times reports that iran has deployed advanced rockets and missiles to help fight isis in tikrit. it s also estimated that two-thirds of the iraqi fighting force has been trained and equipped by iran. this image from aleppo. burned out buses used as a shield against sniper fire. secretary of state john kerry saying the u.s. will have to negotiate with syrian president assad to remove him from office and end the civil war. assad responded by saying only syrians can decide his fate. relief workers are trying to reach vanuatu s remote islands. the tiny nation was virtually destroyed by a monster cyclone. dozens are dead. thousands have been displaced by the storm. at least 80% of the homes and other buildings were partially or completely destroyed. radio and telephone communications are improving but remain patchy. the ohio river is slowly receding from its highest level in two decades. many roads and low-lying air yas are closed and homes flooded in new richmond, ohio. reporter: record snows melting fast. spring warmth and rain. a formula for flooding emergencies across the midwest. the ohio river, tugboats barely squeezing under bridges. dumpsters look like river buoys. and beneath this water, a murky mess. homes damaged. it s creeping in. it s seeping through the foundation right now. reporter: this is main street in new richmond. you can hear the water pumps going. even though the river is receding, areas like this are going to be slow to drain. most businesses are right up on the river, including the community bank. inside bank manager, tammy swisshelm, took creative measures to protect that cash. in a ziploc bag. get all of the air out. and lock it up. reporter: just like a sandwich. nice and dry. reporter: in louisville, the search continues for 67-year-old steven miller, swept away by floodwaters this weekend. just hold on to my faith in god that my dad s out there. reporter: extreme weather out west, too. in portland, oregon, wind gusts near 60 miles per hour, ripping down this scaffolding. back here in new richmond on the river, nearly in the river, getting to the critical 58-foot mark. hasn t been this high for nearly 20 years. it s a large river. it takes some time to drain. we ll be in flood stage through thursday. rob marciano, abc news, new richmond, ohio. let s give you a look, now, at your tuesday weather. no rain in the forecast for the ohio valley. but cold air is rushing in. rain moves across texas, with the heaviest in laredo and san antonio. showers are forecast in the northwest and northeast. the high temperature for today s st. patrick s day parade in new york is 55. much cooler for cleveland s big event, just 42. the high for savannah s big parade is twice that, about 85. 47 near the green chicago river. 60 in denver. and 91 in phoenix. ice is jamming the river just south of toledo. that s endangering a horse farm. the wall of water and ice moved in quickly, right to the stables. a similar flood more than 30 years ago resulted in a dike around the farm. but this year s ice floes pushed the river over the wall. some of the ice was as much as 30 feet high. we got an incredible rescue to show you now. this was from a burning house. it was all caught on video. the pictures you re seeing from deputy james collins body cam. a caller reported people were trapped inside the home. he didn t hesitate as evidenced by this body cam. he is breaking windows, trying to find people inside. the deputy ended up pulling one woman through a window to safety. he had the lady he had to later be treated for smoke inhalation. collins has only been on the job as a deputy sheriff for two weeks. well, an unforgettable flight for a pilot in the midwest. he managed to walk away from this crash after his plane ran out of gas. the flight was en route from chicago to monroe, wisconsin, when he got into trouble. the accident knocked out power to the small town nearby. a surprising announcement from a rising nfl star. 24-year-old chris borland of the 49ers. he s retiring. after playing one season. borland, number 50, seeing there, led the niners in tackles last year, says he s leaving the game why? because of concerns about head trauma. he tells espn he wants to be proactive. but once you have the symptoms of head trauma, it s too late. the team says it respects his decision. i think that s incredible. this is unheard of in this this is the way what presence to think about that. you can make a lot of money. but it s not worth it if you can t enjoy it down the road. this is incredible. he s a really good player. he is a baller. yes, he is good. that s the correct term in american football? you can call anybody a baller. george stephanopoulos is a baller. if you re good at your craft. do you tell george this to his face? we have a handshake thing worked out. and you say, hey, george stephanopoulos hi. i don t feel comfortable saying that. we have to spend more time together. we have to. or maybe less, right? oh. hillary clinton, the e-mail controversy still, boy, causing problems for her. a new cnn poll shows unfavorable views of her are increasing. and perceptions of her as honest and trustworthy have dropped. more than half of the respondents say she hasn t explained herself enough. while her favorability rating is still strong, 53%, it is down. oregon, the first state to adopt automatic voter registration. anyone who is not registered to vote but has interacted with the department of motor vehicles will receive a ballot in the mail. the move is expected to add 300,000 new voters to the roles. oregon was the first state to hold all elections with mail-in ballots, as well. on this st. patrick s day morning, you can find all sorts of irish stuff in the most unexpected of places. here s a pretty cool example. the irish shooting star, if you will. not because of what s in the sky. but look at the water there. green, white and orange, from left-to-right. just like the irish flag. this photo was taken on sunday night. that s not ireland. it s actually lochness in scotland. we ll take it. cool picture. do you see the lochness monster there? i can t make it out. look closer. coming up, why gisele and prince harry may be retiring from their current career paths. respectively. they re not switching with each other or anything like that. yes. we ll have to explain that. first, a little bracketology, for those struck by march madness. why the most obvious pick may be the best. reena, sports with reena, we ll have a segment. you don t want to miss any sports involving reena ninan. you re watching world news now.” announcer: world news now weather brought to you by finish quantum max. 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more urgently, the clock that s ticking down is on a screen board. and the count to march madness. and here s abc s ryan smith. the shot to win it. reporter: it s like a fever that comes every year. everyone knows someone that gets it. even the folks on 30 rock.” there s times when my job is frustrating. like when lutz calls in sick with march madness. reporter: and bart simpson gets it. the sickness all bosses dread. march madness. around ncaa tournament time, 14% of fans taking a sick day just to watch part of it. and 56% of american workers admit to spending at least one hour of their work day following games. on the ncaa s live feed, there s even a boss button. hit it and it looks like you re hard at work. the easiest way is make watching the tournament your job. like nate silver, the numbers guru behind 538.com. you get in trouble if you don t watch the tournaments. reporter: so, all of this is basically a ruse to watch the games every day? no. people can bet on it, right? reporter: nate says kentucky has a 40% of winning it all. 40% is as good as you re going to do. if you re filling out a bracket this year, it s probably the smart thing to pick kentucky. reporter: just don t get caught cheering for them at work. ryan smith, abc news, new york. this is a holiday. don t bother me on thursday and friday. all right? just i m going to be a mess in here on friday. you warned me a month ago about this. yes. i take vacation days. i normally take vacation every year to sit at home on the opening weekend. thursday, friday. sit at home. don t bother me. watch every game. why are people so into this? because this is a spectacle in sports. it s one of the greatest spectacles in sport because of the unpredictability of one and done. no matter how good you are, you could be gone. and everybody, no matter, if you know the game or don t know the game, we re all equal when we fill out a bracket. yours is just as good as the experts or anybody else s because this is unpredictable. i picked four teams six teams yesterday that are not not even in the tournament? i picked my alma mater. how do you do that? g.w., university of florida, university of miami, university of south florida. we ll work on her, folks. she s she ll be fine. she ll be fine. you know, dancing with the stars.” love it. there it is. it was dynamite last night. season 20 got kicked off. and mitt romney geared up for a new fight. you won t believe who his opponent is. the skinny and a bonus round up next. skinny skinny so skinny topping our headlines, season 20 of dancing with the stars.” last night s season premiere on abc was a power-packed one. it was incredible. starting off with a surprise. some of the stars could actually dance. olympic gymnast nastia and derek hough fox trotted to new york, new york, starting off in black and white and switching to color to kick it up into high gear. and it was an amazing flip. but really bringing the house down, noah galloway and partner sharna burgess. when the moment comes you say i woo. the iraq veteran and his partner were given a long standing ovation. but the reaction wasn t as enthusiastic for actress suzanne sommers. i m not going to laugh. i could never handle the pressure. the pressure? yes. and i think shooegs she s doing great. she was doing just fine. her and her partner. they have the throwback. with their cha-cha. she had a couple missteps. and judges had positive feedback. topping last night s leaderboard, rumer willis. she was cheered on by her mom and dad, bruce willis and demi moore. the fox trot with val, it got them straight-8s. you see right there. it was really powerful. i thought she was she surprised us. surprised me. next up, the world s highest paid model set to hang up her walking shoes. gisele bundchen. she is 34 years old. she is set to retire. she made that announcement now. she s been on the runway for 20 years. retiring from the catwalk. she s hardly retiring from modeling. she will continue to front high-profile print campaigns like chanel, and h&m. as well as her own footwear and lingerie labels. and she is a goodwill ambassador for the united nations. and she might want to take retirement hints from david beckham. excuse me. are you okay? hardly. beckham retired after 20 years on the field. in his first full year of retirement last year, his endorsement helped bank his biggest year ever. $75 million. beckham pitches for sky sports, belstaff and adidas. why wouldn t you want a guy like him pitching? gorgeous. and topping off, rich people retiring even richer news. prince harry set to hang up his fatigues. say it ain t so. harry says it was a tough decision. after his tour in australia he will leave the armed forces. he joined the british army ten years ago, rising to the ranks of apache helicopter commander. way to go. he went a lot of places most human beings wouldn t have the courage to go. bonus round next. ay,no! don t do that! try new head & shoulders instant relief. it has tea tree and peppermint that cools on contact. and also keeps you 100% flake free. i use it for cooling scalp relief in a snap. mi bebé ha crecido tanto. try new head & shoulders instant relief. for cooling relief in a snap. thank you for calling colonial penn life insurance company. i m glad i was able to help you today. hi, my name is jonathan lawson and i m a customer service representative for colonial penn life insurance company. insurance can sometimes be difficult to understand, but here at colonial penn, we make it simple. alex trebek has been representing colonial penn for over ten years and is here to tell you how we do it. thanks, jonathan. i m happy to be here with these knowledgeable colonial penn representatives. i know that customer service is a priority for them. i ve been representing colonial penn for over ten years talking about their guaranteed acceptance life insurance. if you re 50 to 85 write down the toll-free number on your screen and call for free information. with this insurance, there s no medical exam, no health questions either guaranteed. you cannot be turned down because of your health. your rate will never go up and your benefit will never go down due to age. it costs just $9.95 a month per unit. that s less than 35 cents a day. call them now. you ll be glad you did. at colonial penn we ve been serving our customers for over 50 years, and we have over half a million life insurance policies in force that help cover funeral costs, medical bills, credit card balances or other final expenses. we re committed to our customers. we make insurance simple! (representatives speaking) that detergent was like half the price! and we ll have to use like double! maybe more! i m going back to the store? yes you are. dish issues? get cascade complete. one pac cleans tough food better than 6 pacs of the bargain brand combined. cascade. now that s clean. man (sternly): where do you think you re going? mr. mucus: to work, with you. it s taco tuesday. man: you re not coming. i took mucinex to help get rid of my mucusy congestion. i m go od all day. [announcer:] mucinex keeps working. not 4, not 6 but 12 hours. let s end this skinny skinny so skinny welcome back to our special bonus round of the skinny.” starting off with a new fight for mitt romney. not political this time. he s not running for president again. he s going to be stepping into the boxing ring, yes, with former heavyweight champ evander holyfield. what? it s scheduled for may 15th. this is for charity. romney joked that it will be either a short fight or i ll be knocked unconscious. those could be the same thing. a short fight when he s knocked unconscious. just bite his ear. he ll be fine. he ll be fine. just bite his ear. i don t know what to say. you don t get the sports reference there. i know about biting the ear. i don t know about march madness. but i know about the ear. sting like a butterfly swing like a bee? we ll deal with that later. the knockout on our cast on our parent company disney s live action revival. emma thompson will be filling some very big shoes. starring as mrs. pots in beauty and the beast, voiced originally by angela lansbury. that was the original animated film. the film will star emma watson as belle, kevin kline as her father, and dan stevens as the beast. the movie is set for release on st. patrick s day 2017. it s going to be in 3d. and speaking of classic films, there was quite a reunion of sorts by the south by southwest festival. molly ringwald and ally sheedy, together to celebrate the generation x coming of age classic the breakfast club.” do you know how popular i am? i m so popular. everybody loves me so much at this school. poor baby. [ laughing ] okay. it s hard to believe. ringwald, 47 years old. and sheedy there s no way she s 52. they look great. 30 years? it s been 30 years? it s been 30 years. they were that young when that movie was made? it was a great movie. would you believe i ve never seen the breakfast club”? i think you should see it this weekend. have you seen breakfast at tiffany s ? haven t seen that, either. i m going to send you a list. anything else i missed? is there a good st. patrick s day film? one of the leprechaun movies. the horror movies. horror movie? leprechaun 1, 2, 3, 4. they made several of them. what? oh, they did. pretty sure they did. okay. announcer: this is abc s world news now inf good morning to you al good morning to you all. i m t.j. holmes. i m reena ninan. here s some of the top headlines we re following on world news now.” millionaire real estate heir robert durst, charged with drug and gun offenses in louisiana. those are connected to a murder charge to the death of a friend in los angeles 15 years ago. full details on the case straight ahead. election day in israel. as benjamin netanyahu fights to stay in office. netanyahu is taking a hard-line stance to pick up votes. we go live to jerusalem in a moment. five members of the university of maryland women s la crosse team have been suspended. the upper classmen wrote threatening text messages to freshmen players. and pete rose is asking baseball s new commissioner for reinstatement of the game. he s been serving a lifetime ban for betting on the cincinnati reds while he was managing the team. the commissioner said rose s request will be considered. those are some of your top stories on this st. patrick s day, tuesday, march 17th. announcer: from abc news, this is world news now . thank you for spending some of your time with us on this st. patrick s day. we ll begin this half hour with a new development in the case of robert durst. he s now charged in louisiana with gun and drug counts stemming from his arrest at a new orleans hotel late saturday night. durst could be sentenced to death if he is convicted of the murder of a friend. abc s matt gutman has more from new orleans. reporter: police say robert durst, led shackled into court, was armed and dangerous when he was arrested on a first-degree murder charge more than a decade in the making. for 30 years, questions have swirled around his role in three mysterious deaths. his wife, kathleen, vanishing in 1982. then, his friend and confidant, susan berman, murdered execution-style in los angeles in 2000, just a month after an investigation into his wife s disappearance was opened. then, a year later, his texas neighbor, killed and dismembered. durst claimed self-defense. not guilty. reporter: and was acquitted. now, this piece of audio. what the hell did i do? killed them all, of course. reporter: what seems to be a stunning confession from the real estate millionaire. caught on camera by hbo producers, filming the documentary about his life. the jinx, the life and deaths of robert durst. the filmmakers had just confronted durst about similarities in his handwriting and that of an anonymous letter that alerted the lapd that susan berman was dead. can you tell me which one you didn t write? no. reporter: durst still mic d, alone in the bathroom, muttering to himself. there it is. you re caught. reporter: the director, andrew jarecki, on good morning america, said he turned the tape over to police months ago. when we finally found that subsequent admission, what happened in the bathroom, we contacted them and said we have something more. reporter: and saturday night, a day before that episode was to air, durst checked into this plush hotel in downtown new orleans. he came in here. and he checked in under an alias. that name, ward everett. police say they arrived here around 7:00 p.m. they arrested him. they said he was in possession of a weapon. a smith & wesson .38. durst, waiving his right to fight extradition. his attorney dismissing what some are calling that confession. that s pretty slick. will probably get him an emmy. reporter: we spoke to the lapd about the uncanny timing of that arrest. they tell us that a tipster watching the show called in. and that tip led to durst. matt gutman, abc news, new orleans. u.s. officials say the letter from 47 senate republicans sent to iranian leaders is causing difficulties in those international talks with iran on its nuclear program. the lawmakers wrote that any deal could expire the day president obama leaves office. the president addressed the issue in an interview with vice news. i m embarrassed for them. yeah. because it s not how america does business. for them to address a letter to the ayatollah, the supreme leader of iran, who they claim is our mortal enemy. and their basic argument to them is, don t deal with our president cause you can t trust him to follow through on an agreement. mr. obama and other officials insist they re not going to make any deal that would allow iran to acquire nuclear weapons. it s election day in israel. and the big winner or loser may be the peace process. benjamin netanyahu s party was trailing when the last polls were taken. that s this past week. and so, he s making a last-minute bid to pick up more right-wing votes. abc s molly hunter in jerusalem joins us now with more. good morning, molly. reporter: good morning. it s a big day here in israel. and gearing up to be a really tight race. but the way the system works here, reena and t.j., we could be looking at a long few weeks. at this hour, polls are open. but it s complicated. 25 party lists. and more than 1,000 knesset candidates. all eyes are on prime minister netanyahu. he s the longest-serving prime minister since ben-gurion. and analysts say this is a referendum on the man himself. facing off is isaac herzog. a center-left leader who wants to repair relationships with washington, resume negotiations with palestinians. and his campaign hard on domestic economy. all issues that netanyahu has skirted in the campaign. he s damaged that relationship with washington, as we ve seen. he said yesterday, there will be no palestinian state if he s re-elected. and he hasn t talked much about the domestic economy. so, reena and t.j., israelis have a big decision today. but it may be a few days until we know how they come down. i know. people are very eager to hear what happens. do we know, molly, yet when the results will come in? any sense? reporter: reena, we ll see the first exit polls at 10:00 p.m. local. no one is putting too much stock in those numbers. we ll get the first official results on thursday. here s where it gets complicated. that will tell us how many votes each party list got. just because you got the most votes doesn t mean you get in the top spot. we could see a situation, which analysts predict, where herzog comes out with the most votes, but isn t able to get a coalition. netanyahu, who may lag behind in total votes is able to put together a coalition and hold on to his job. molly, a lot on the line, based on the results we get. including the nuclear negotiations going on with iran. what impact could the election have on that? reporter: absolutely. washington is watching this election closely. it matters to the united states, t.j. what i can tell you, israelis are not going to the polls about iran. or about security. so, while netanyahu has spent time in washington, speaking in english, speaking to americans, on iran, on security, herzog has been speaking to israelis on domestic issues that really matter. they re going to the polls today for domestic economy. for housing prices and for cost of living. while iran is playing big overseas, i can tell you that s not what s most important here in israel. abc s molly hunter. thanks, molly. keep us posted in jerusalem. at the boston bombing trial, police officers described the night that led to the death of tamerlan tsaranev. they said tamerlan and his brother, dzhokhar, were firing at them and throwing bombs. they described seeing dzhokhar run over his brother and drag his body about 30 feet. earlier, jurors saw the boat where dzhokhar was hiding at the time of his arrest. a senior state department official has been arrested for stalking and voyeurism in d.c. daniel rosen is already facing a charge of soliciting an underaged girl for sex. police say they have evidence of rosen using his cell phone to record women while they undressed in their homes. the evidence was discovered after his arrest last month. the women in the videos do appear to be 18 or older. record high temperatures in the plains states have produced a spike in wildfires. the mercury reached the 80s and 90s yesterday near omaha. this highway had to be closed because of smoke and flames. and further south, in northern oklahoma, a blaze consumed 23,000 acres. officials telling residents to evacuate. and a highway could be closed. the warm weather not going to last. it will come back. i hope so. cold air moving into the plains and midwest overnight. most of the area will be dry today. rain will move across texas and into northern oklahoma. there s also rain in the forecast for the northwest and northeast. but just showers. above normal temperatures in the northeast today. in the 50s and 60s in the 70s and 80s in the south. mid 40s around the great lakes. after a record high yesterday, denver will only manage 60 degrees today. we want to give a tip of the world news now hat to a group of health care workers at a children s center in atlanta. they re going about their business without hair. last friday, the workers joined a bunch of male colleagues to have their heads shaved and raise money for charity. one of the nurses did it to show the kids she cares for what an inspiration they are. she calls having her head shaved a wonderful experience that was emotionally overwhelming. cool of them to do. and that nurse, she s been at the hospital for 23 years. she says that working for these kids with cancer gives her much more than she could possibly give them. so touching. and that s so true. just a gesture like that means a lot to those kids. good for them. good for you. coming up, hillary clinton s deepening crisis over the missing e-mails. a potential white house house investigation now looming. it started to impact her poll numbers before her expected presidential candidate ever gets off the ground. and rumer willis. she was the star last night on dancing with the stars.” how did it feel to have mom and dad in the audience? you re watching world news now.” announcer: world news now weather brought to you by airborne dual action. [ 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 pick up some of what medicare doesn t pay and could save you in out-of-pocket medical costs. call today to request a free decision guide to help you better understand what medicare is all about and which aarp medicare supplement plan works best for you. 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. there s a range of plans to choose from, too, and they all travel with you anywhere in the country. join the millions who have already enrolled in the only medicare supplement insurance plans endorsed by aarp an organization serving the needs of people 50 and over for generations. and provided by unitedhealthcare insurance company, which has over 30 years of experience behind it. call today. remember medicare supplement insurance helps cover some of what medicare doesn t pay. expenses that could really add up. these kinds of plans could save you in out-of-pocket medical costs. you ll be able to choose any doctor who accepts medicare patients. and there are virtually no referrals needed. so don t wait. 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. this easy-to-understand guide will answer some of your questions and help you find the aarp medicare supplement plan that s right for you. i started playing rugby when i was about 12. and pretty much haven t stopped since. i don t really think about my hair too much. but, i started going gray kind of early. and it s just not me. only just for men easily targets gray with a comb-in applicator. so you get a natural gray-free look. guaranteed. just you and the look you want. just for men. it will be here. hillary clinton s e-mail controversy is beginning to cost her maybe in the polls. a new cnn poll shows that more than half of respondents say it s a serious problem. and more than half say she hasn t explained herself enough. it comes as house speaker john boehner is expected to announce a new investigation into the matter. abc s karen travers has the latest. reporter: the controversy over hillary clinton s e-mail activity is just not dying down. top house republicans tell abc news, they expect the house speaker to launch a new investigation into her e-mail practices when she was secretary of state. including her admitted destruction of about 30,000 e-mails that she says were purely personal. e-mails about planning chelsea s wedding. my mother s funeral arrangements. condolence notes to friends. as well as yoga routines. reporter: under state department rules while she was secretary, if an employee used a private e-mail account for official business, the e-mail was to be turned over. and entered into government computers. but clinton didn t turn in any e-mails until 22 months after she left office. right now, there s no way to know if we have all of the state department communications that rightfully belong to the american people. reporter: the white house said the state department has acknowledged they did not have a system in place to save the e-mails. reporter: and the state department is updating the system to make that happen. but a key question as hillary readies for a presidential run, does this matter to voters? in the polls since the controversy began, only 17% say they are following the story closely. and she has the highest approval ratings among all of the likely candidates. 50%. this new investigation means, it s likely that hillary clinton will be asked to testify twice before congress. once about her e-mails and the second time about the benghazi attack. t.j.? reena? we saw the polls. but do they really care when it comes to electing a president wether or not this e-mail controversy is there or not? no. this is politics. this is what people latch on to one thing. the media plays a role in it, as well. we ve seen it play out plenty of times before. like you talked about from the beginning of this, it follows a familiar theme with the clintons. and that s why it s going to dog her for a little bit. if you could pick a republican right-leaning and left-leaning candidate for 2016, who would you pick? for the fun of it? as a member of the media? yeah. you have to have hillary clinton running. okay. you get bill along with it. that s a good time. that party will never stop. oh, my gosh. on the other side? i don t know if jeb bush is the sexiest candidate. speaking media, folks. who would be a good, fun candidate for the media? i would say probably, jay-z and chuck norris. this is why we can t talk. this is why. you said fun candidate. you didn t say democrat or republican. you told me to pick a republican. you did. i said two candidates. didn t i? i don t want to do this tease next. you do this one. coming up, it s become one of the must-haves in every woman s wardrobe. please, continue. the ubiquitous back leggings. i own a pair. t.j. owns a pair. but are all leggings really created equal? and who do you really have to pay an arm and leg for? what kind of leggings are those? you re watching world news now.” ann well, they re not green. but they have become the must-have fashion accessory for women of all sizes and walks of life across america. the black leggings. i ll take your word for it. believe it or not, the glorified long underwear can vary wildly in price. should you go fancy or frugal? abc s becky worley checked this out for us. reporter: the modern teen uniform. definitely leggings. all my friends have five or six pairs. some have, like, ten. reporter: black leggings. that can cost $65, $75, $95. but you can go to a sporting goods store or discount retailer and get leggings that some say look nearly identical for a fraction of the cost. we ve asked these teens to help us with a little experiment. first, blindfolded, just on feel and fit, can they tell the difference between an $82 pair of leggings and a $35 pair? the fabric feels nice. it s tight on my skin. yeah. this is an expensive pair. i think they re inexpensive. they re rough and scratchy. reporter: both our teens got it wrong on feel and fit. they couldn t tell the difference. but what about to the casual observer? this time, we put ella in an expensive pair and marcella in a less expensive pair. one costs $82. the other, $24. can you see a difference? i would say this one is the more expensive. and this one is the less expensive. reporter: sadly, no. they look the same to me. reporter: exactly the same? are they the same? reporter: no. that pair, $82. that pair, $24. unreal. reporter: the inexpensive pants were undetectable to the average observer s eye. except for one subset of the population other teenaged girls. those are $82. those are $24. i agree. reporter: it s amazing like they have expensive leggings esp. and a few people that really know about clothing. are you in the fashion business? i am. reporter: the fabric matters? yes. washes well. it doesn t peel. comfortable on. doesn t shrink. reporter: sure enough, the expensive pair is made of nylon and spandex. the less expensive pair is made of polyester and spandex. this has nothing do with durability over time. becky worley, abc news, oakland, california. do you own a pair? i do not. never know. yes, you know. you know. but for every car stolen 34 people had their identities stolen. identity thieves can steal your money damage your credit and wreak havoc on your life. why risk it when you can help protect yourself from identity theft with one call to lifelock, a leader in identity theft protection? 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[ 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. this season s class of dancing with the stars is packing quite a bit of a star power punch with celebrities from multiple generations. and last night, the clear standout was from the young crowd, rumer willis. daughter of bruce willis and demi moore. how did it feel having mom and dad in the audience cheering her on? she talked with abc s juju chang. reporter: hollywood royalty in the audience for dancing with the stars.” bruce willis and demi moore, with tears in their eyes, cheering on their daughter, rumer willis, who took the stage last but set the stage as the one to beat, earning the night s top score. 32 out of 40. reporter: willis family, a tight-knit clan. it s a bond that stood the test of time. your parents divorce was so high-profile. i think a lot of people of your age sort of watched that because your parents were parenting as divorced people. yeah. i think they set a trend of people who had split up being able to really still have a family dynamic. i have so much gratitude that s the way i was raised. i didn t have to split holidays or birthdays. they made such an effort to keep a family unit. reporter: what if anything scares you the most about this? her parents. for sure. all jokes aside, for me, every season is i don t know why, for me, the family of my partner is really important. their opinion is really important. reporter: growing up under the media glare has prepared her for what could be a life-changing moment. i ve gotten used to hiding. if your life is always kind of for public view, i think i didn t realize it as much before how much you try i ve tried to hide. and i almost do that with my body language. i notice it in pictures, where my head is down. the worst mistake you can make in the public eye is try and hide and not be yourself. reporter: and now, she s stepping into the spotlight on her own terms. for me, it s more about having an opportunity to show who i am, regardless of where i ve come from or who my parents are. well done. reporter: for nightline, i m juju chang, in hollywood. that song, take me to church, i love that song. and to see her, it was lightning in a bottle. she can move. she really can. you can tell immediately who is going to be around and who is going to be coming to new york to gma after they get kicked off. don t put it like that. we ll see some of them real soon. those dancers so well-dressed. you, too, t.j. holmes. what? snazzy dresser. thank you. this morning on world news now, stunning new details in the boston bombi this morning on world news now, stunning new details in the boston bombing trial. police describe the shoot-out with the tsaranev brothers. and jurors get a look at the boat, the hiding place where it all ended. a full report from boston. election day in israel. prime minister benjamin netanyahu s final push to win. he is looking for any help he can get, even hoping for a boost from hollywood. what the results could mean for the u.s. and the stability of the region. and another chance. pete rose, baseball s greatest hitter of all-time, making another plea to be reinstated to baseball. could the man once called charlie hustle find his way to the hall of fame? it s tuesday, march 17th. announcer: from abc news, this is world news now. i just want to know. good morning, everyone. i m reena ninan. this is t.j. holmes. happy st. patrick s day. welcome back to you. and a pinch for not wearing green. really? o ninan? really? o hell. good morning. here we go. look what the luck of the irish brought us today. what is it if you pinch somebody that s wearing green, is it bad luck to you? what is it? jack, our resident irish? i m not sure. nobody s sure. you have to pinch them back. if they are wearing green. i m supposed to pinch you back? you re not wearing any green. give me a break. oh. please. can we zoom into that? i don t i m not going without here, now. he has a little these are very important cufflinks to me. and they are there. it doesn t have to be so in your face with the green. all right. okay. i m supposed to pinch you back? you re supposed to pinch me back. what s a proper place without getting in trouble here? why don t we begin with the news. good morning to you. good to be back. welcome back. good morning. yes. we ve got some drama in the courtroom. testimony. this bombing trial going on in boston. you ve been keeping an eye on it like we have. police officers there describing the gun battle that broke out with the tsaranev brothers four days after the bombing took place. jurors visited the boat where dzhokhar tsarnaev was captured. tom llamas is in boston. there are explosives here at the scene. reporter: the suburban streets of watertown, massachusetts, turned into an urban war zone. during a showdown with police. in court, an officer testifying that older brother, tamerlan tsarnaev fired first saying the shootout lasted eight minutes. in this photo shown in court, the brothers are crouched behind an suv they carjacked. police say the tsaranev brothers were shooting and hurling bombs at several officers. there s hand grenades and automatic gunfire. reporter: most of the explosives, pipe bombs. here s one that didn t detonate. one watertown resident telling the court, he saw dzhokhar light a fuse and hurl a backpack that turned out to be a pressure cooker bomb. officer joe reynolds, first on the scene, said, it shook me to my knees. my ears were ringing. but tamerlan ran out of bullets, police tackling him. that s when eyewitnesses said dzhokhar jumped into the suv and sped towards his brother. prosecutors say this photo, capturing the moment. dzhokhar ends up running over his brother, who had been shot, leaving a gory scene on the residential street. tamerlan would later die. but dzhokhar escaped. as the manhunt continued, the entire nation was monitoring. the thing that struck me, they heard that gunfire. and they started to applause. saying go get him. reporter: dzhokhar discovered hiding out in this nearby boat. all units report. movement in the rear of the boat. movement in the back of the boat. reporter: jurors seen this image of dzhokhar surrendering and getting an up-close look at the boat, with dzhokhar present. something the defense asked the judge for, to build sympathy for the boston bomber, to show the more than 100 bullet holes in the hull. back on the street where it went down. and you see how residential this neighborhood is. one thing that didn t work for the defense. a police officer testified tamerlan tsarnaev was throwing pipe bombs like a baseball, but dzhokhar was lobbing them like a hook shot. tom llamas, watertown, massachusetts. yet another high-profile case to talk about. real estate heir robert durst is now charged with crimes in two states. prosecutors in l.a. have filed a first-degree murder charge against him for the death of his friend, susan berman. that was 15 years ago. authorities in louisiana, filed weapons and drug charges against him late last night. durst was arrested in new orleans on saturday. as for durst s recorded statement at the end of that much talked about hbo documentary series, the director of the series says his team was in contact with authorities long before sunday s finale. when we finally found that subsequent admission, what happens in the bathroom, we contacted them and said, we have something more. the filmmaker says because he s likely to be called as a witness in any durst trial, he s going to stop speaking to the media. police say the timing of the arrest had nothing to do with the airing of the documentary series. there was concern that durst might flee the country. hours before a surprisingly close election, the israeli prime minister is throwing a monkey wrench into the peace process. benjamin netanyahu says if re-elected, he said there won t be a palestinian state. it s a last-ditch appeal to hard-line voters. netanyahu trailing in polls to a liberal candidate who does favor restarting peace talks. the polls taken last friday. russian president vladimir putin is shrugging off rumors about his recent disappearance. putin appeared in public on monday for the first time in more than a week. his absence sparked speculation about everything from the state of his health, his hold on power, some saying he had a baby with his girlfriend. he said about the rumors, it would be dull without gossip. before returning to public view, he ordered a massive military drill in the arctic region. back here at home the american aide worker that contracted ebola in west africa has worsened. his status is downgraded. from serious to critical on monday. he s being treated at the nih in maryland. his name and age have not been released. he works with partners in health. 12 other individuals that work with him are being monitored. the suspect of the shooting of two police officers in ferguson, missouri, was not targeting police, according to his attorney. 20-year-old jeffrey williams appeared in court to answer the charges. his attorney also says williams was not aiming at the demonstrators that gathered in front of the police station, either. the prosecutors still said it s a serious crime. regardless of who may be an intended target, you hit somebody, that s still an assault in the first-degree and a class- a felony. the attorney says the police used excessive force. he says williams had bruises on his back, shoulder and face. and a knot on his head. a police spokesman says the claims are false. the university of maryland s women s la crosse team is at the center of an ugly scandal. five upper classmen have been suspended indefinitely for writing threatening text messages to freshmen players. the squad has been practicing without any contact drills. the women apologized in a statement, calling their behavior inappropriate. pete rose is formally making another plea to be reinstated to baseball. the game s all-time hits leader has been banned from the game since 1989 because he bet on the cincinnati reds while managing the team. baseball s new commissioner confirms he s received rose s request for reinstatement. and he will consider it. rose s previous requests for leniency of two former commissioners were not even considered. another sports note for you. tim tebow has had a workout with the philadelphia eagles. the heisman winner hasn t played in the nfl since 2012. since then, he s been working in television. you might have noticed. including appearances on a little show we call good morning america.” tebow didn t discuss contract possibilities with the eagles after his workout. a lot of people rooting for him. and tim tebow is 27 years old. a little too old to be looking for a job in the nfl? you can still model at 27. model? yeah. in the modeling world allows you in. you re not capped out at 27 in the modeling world? no. people in their 30s. i think 35 is sort of it. residents of a retirement community in britain are showing you can never be too old have to some fun. fundraising calendar here. they re-created scenes like dirty dancing.” this is hogwarts express in harry potter. and wizard of oz.” and star wars.” all the residents in the photos are 64 to 93. coming up, we ve got a very festive st. patty s day. it s a theme. first, an a-list boycott. top of the line fashion designers dolce & gabbana under fire for remarks made. elton john and others are fighting back. check out our behind-the-scenes pics on instagram. abcwnn. you re watching world news now. . watching world news now. c . i m glad i was able to help you today. hi, my name is jonathan lawson and i m a customer service representative for colonial penn life insurance company. insurance can sometimes be difficult to understand, but here at colonial penn, we make it simple. alex trebek has been representing colonial penn for over ten years and is here to tell you how we do it. thanks, jonathan. i m happy to be here with these knowledgeable colonial penn representatives. i know that customer service is a priority for them. i ve been representing colonial penn for over ten years talking about their guaranteed acceptance life insurance. if you re 50 to 85 write down the toll-free number on your screen and call for free information. with this insurance, there s no medical exam, no health questions either guaranteed. you cannot be turned down because of your health. your rate will never go up and your benefit will never go down due to age. it costs just $9.95 a month per unit. that s less than 35 cents a day. call them now. you ll be glad you did. at colonial penn we ve been serving our customers for over 50 years, and we have over half a million life insurance policies in force that help cover funeral costs, medical bills, credit card balances or other final expenses. we re committed to our customers. we make insurance simple! (representatives speaking) i love my meta health bars. because when nutritious tastes this delicious i don t miss the other stuff. meta health bars help promote heart health. experience the meta effect with our multi-health wellness line. not all toothbrushes are created equal, oral-b toothbrushes are engineered with end rounded bristles so brushing doesn t scratch gums and angled perfectly to remove 90% of plaque for a healthier smile. trust the brand more dentists and hygienists use. oral-b. eh, you don t want that one. yea, actually i do. it s mucinex fast-max night time and it s got a nasal decongestant. is that really a thing? it sounds made up. mucinex fast max night time for multi-symptom relief. breathe easy. sleep easy. let s end this. i found out the hard way. not all washes take care of intimate odor. vagisil odor block wash stops odor from happening for all day confidence. when you feel fresh all day you feel confident. vagisil. your intimate health experts. a top doctor s group is urging doctors to stop looking for heart disease in all the wrong places. american college of physicians say doctors are ordering too many tests. there s no reason for them. no symptoms. they re expensive. and the frequent false positives add more tests and more expense. fresh scrutiny this morning. fashion powerhouse dolce & gabanna, by the same a-listers they adored. elton john is leading the charge against the designers, calling for a boycott. they re the dynamic duo behind iconic red carpet looks. designing for celebrities like channing tatum. but one star is saying no to dolce & gabanna. the rocket man elton john boycotting the brand after comments to panorama.” an italian magazine. in a story headlined dolce is quoted as saying, you were born and have a father and a mother. or at least that s how it should be. taking aim at children can be conceived via alternative methods, calling them children of chemistry and synthetic babies. dolce & gabanna were romantically involved for 20 years. john and david furnish have two young sons born with the help of a surrogate. i m the happiest guy in the world right now. they brought more joy to me, than anything in my life apart from my partner. reporter: the proud father posting a photo on instagram writing, how dare you refer to my beautiful children as synthetic. and shame on you for wagging your judgmental fingers at ivf. continuing your archaic thinking is out of step with the times like your fashions. i shall never wear dolce & gabbana again. #boycott dolce gabbana. other celebs also weighing in. victoria beckham, tweeting her support. sending love to david, zachary, elton, elijah and all the beautiful ivf babies. courtney love, i just rounded up all of my dolce & gabbana pieces and want to burn them. at first gabbana not backing down telling an italian newspaper i did not expect it from a person i believed to be intelligent like elton john. speaking out in his statement to abc news dolce saying, i m aware of the fact there are other types of families. and they are as legitimate as the one i ve known. gabbana adding, it was never our intention to judge other people s choices. we do believe in freedom and love. huh. it was really buzzy on the internet today about this whole entire thing on facebook and twitter. a lot of women, especially my generation, have gone through ivf, have done surrogacy. i don t know what it is. it s something i ve thought about in my generation of women. there are a lot of women struggling to get pregnant. it s like stabbing us in the heart by saying something like this. it hurt a lot of people. i saw on facebook and twitter, shouldn t we have more tolerance if a man has an opinion. doesn t he have a right to an opinion? absolutely do. you have a right to disagree and boycott that opinion. there you go. i ve been boycotting them for a long time. their stuff is too expensive. really? yeah. we ll be right back. announcer: world news now continues after this from our with temperatures finally warming up, people and their pets are rediscovering the great outdoors just in time for spring. the annual global pet expo in orlando, florida showed off a bumper crop of pet accessories. and joining us is dick debartolo of giz wiz. good morning. good morning. i have fun stuff. unfortunately, about 2 million dogs are kidnapped every year. and people go into stores and restaurants. and they just leave their pets outside. if you do that i would never do that. but this is called safe spot. it is a locking leash. this is the doggy collar. that locks here. the other end, you pop out this end. this goes around something immovable, a parking meter or a tree. you can adjust the length of it. couldn t you cut it? there s a steel cable inside of it. and this locks. and you take the key with you. most kidnappings are a run and grab. they re not going to fuss around with this. they ll get a dog that s less secure. that s safe spot. these are condiments for pets. for pets? for pets. we use ketchup and mustard. i talked to the guy and he said they are condiment-like. but they have vitamins and nutrients and glucose. we have petchup. we have bark b-q. this is my favorite. we have muttonaise. and they have them for cats. there s meow stard. do they taste good? i don t know. i didn t want to open them before the show. but since i got them, my dogs have been at the box they came in. sniffing, scratching. yeah. they do like them. this is new from hyperpet. this is a small mini cannon for smaller dogs, you pull back on them. the further back you pull, the further the ball will go. we don t want to break a lot of equipment. i just pulled it back to the first notch. i forgot to put the ball in. when you pull it back, if the dog has picked up the ball several times and it has, you know, stuff on it, you push down on it. don t hit the tv. that s fun. might be also fun for a toddler. you know what not bad. not bad. this is neat. this is called doggy pet maze from buster. when you throw snacks down, they eat them in a second. you throw the snacky things in here. and they have to figure out, should i push it with my paw and get it to come to the end? or pull it out with my tongue. it makes it into a game. do they ever give up? again, i didn t try it. i didn t want things to be slobberish before the show. one display model. any idea what this is? i m going to cover the name. what that is used for? this looks like in the mommy world, a breast-feeding pillow. you didn t expect that? no, i didn t. no breast-feeding of dogs. this is puppy bumper. this is clever. you can see on the package, you have a tiny dog that s small enough to run through the pickets of your fence, you put this and his head can go through. he can look out, but the rest of him won t go through. the puppy bumper will stop them. and the cone they have to wear? i don t think so. there s video on their website. and this goes on the collar of the dog so it doesn t slip off. that s a great idea. hand me that last thing. a snack duo. day in the park. this is neat. there s a wall down the center of this. this side is for dry food. this is for water. when you get to the park, you push down on this. and you have a little portable bowl. that s genius. i could use this for running. yes. and you can hang it from your backpack or whatever. you find the best of the best. neat stuff. next month housewares. i look forward to that. thanks dick our giz wiz. dick debartolo. to get more on the products, check out gizwiz.biz. or head to our facebook page, wnn fans.com. take cover. you re watching world news now.” now.” you re watching world news now. that s what i like to call, the meta effect. 4-in-1 multi-health metamucil is clinically proven to help you feel less hungry between meals. experience the meta effect with our multi-health wellness line. i take prilosec otc each morning for my frequent heartburn. because it gives me. zero heartburn! prilosec otc. the number 1 doctor-recommended frequent heartburn medicine for 9 straight years. one pill each morning. 24 hours. zero heartburn. you clean with soap and water, about a thousand times a day. but germs might still be there. new lysol tap top will change the way you clean. it kills 99.9% of germs without harshness, to help protect your family. lysol tap top. start healthing. i started playing rugby when i was about 12. and pretty much haven t stopped since. i don t really think about my hair too much. but, i started going gray kind of early. and it s just not me. only just for men easily targets gray with a comb-in applicator. so you get a natural gray-free look. guaranteed. just you and the look you want. just for men. you get used to stale odors in your mudroom. you think it smells fine, but your guests smell this. febreze air effects works instantly to eliminate odors you ve gone noseblind to. smells like a field of awesome in here. so you and your guests can breathe happy. thank you for calling colonial penn life insurance company. i m glad i was able to help you today. hi, my name is jonathan lawson and i m a customer service representative for colonial penn life insurance company. insurance can sometimes be difficult to understand, but here at colonial penn, we make it simple. alex trebek has been representing colonial penn for over ten years and is here to tell you how we do it. thanks, jonathan. i m happy to be here with these knowledgeable colonial penn representatives. i know that customer service is a priority for them. i ve been representing colonial penn for over ten years talking about their guaranteed acceptance life insurance. if you re 50 to 85 write down the toll-free number on your screen and call for free information. with this insurance, there s no medical exam, no health questions either guaranteed. you cannot be turned down because of your health. your rate will never go up and your benefit will never go down due to age. it costs just $9.95 a month per unit. that s less than 35 cents a day. call them now. you ll be glad you did. at colonial penn we ve been serving our customers for over 50 years, and we have over half a million life insurance policies in force that help cover funeral costs, medical bills, credit card balances or other final expenses. we re committed to our customers. we make insurance simple! (representatives speaking) like a what? you look like a like a what? a rap superstar irish. an irish rap superstar. there you go. you could sing us a little irish jig to give us a start. let me do this. we re going to do the mix.” let s get through it quickly. shall we? i don t want my momma to see me like this. st. patrick s day. let s roll the video. doing st. patrick s day all over the world. here are just some pictures from all over the world. switzerland, going to the coliseum. the great wall of china. the chicago bears stadium. these are just lovely sights from all over the world. everybody getting in on this st. patrick s day. now, our intern, marcus, have put together facts for us. i did not know this. there are no female leprechauns. are you sure? again, he s the intern. interns know what they are talking about. right? he says there are no female leprechauns. did you know that? i did not know that. and there s 16 places in the u.s., named dublin. alabama, california, maryland. georgia, arkansas, et cetera. i hope they go all-out on st. patrick s day. those are the sights. beautiful sights. you can own a piece of the emerald isle with kick starter. it s called jar of ireland. it s like soil that you get. it s a jar of irish soil. so far 16 backers. only a few hours. it looks like 61 euros have been pledged. they have a goal of 3,000 euros. in each jar, you get 100% genuine irish peat. perfect for irish family or friends. i have no idea what the u.s. agriculture department thinks about this. i once brought in a banana from jerusalem. and a little dog sniffed it out at newark airport and asked me to return it. i lost the banana. i had a 1-year-old child that was not happy. they took your banana? they do. you cannot bring in fruit. or agriculture products. one banana. they have a little dog that sniffs it out. i don t know how they re doing it. but they re doing it. one more. at least one more. try to get through two. world s shortest st. patrick s day parade in arkansas. my home state. why is it the shortest? because it s on the shortest street in the country that s functioning. it s a 98-foot-long street. bridge street in hot springs. just outside of little rock. this is hot springs. people go there for the hot springs and the spa. it s 98 feet long. that s about 5 1/2 chevy suburbans. to give you perspective. that will fit on the street. they do a nice little parade. long-standing tradition. shortest parade in the country. you remind me of a leprechaun. don t take don t take the clothes off anymore. i think we should bump in and out of each show with this. may the luck of the irish be with you from world news now.” and our lucky leprechaun t.j. holmes. this morning on world news now, new charges against ro this morning on world news now, new charges against robert durst. the millionaire could face the death penalty in the murder case cracked open by his apparent confession. full details ahead. flood emergency. neighborhoods washed out as the midwest deals with record water levels. and those waters leaving massive chunks of ice, cracking roadways and creating a complete mess in low-lying areas as the winter thaw continues. and trial by fire. an incredible rescue caught on police body cam. only two weeks on the job, a sheriff s deputy busts into this burning house to pull a woman from the flames. and it was a star-studded night on dancing with the stars.” chock full of cha cha chas, flips and a huge standing ovation with hollywood royalty cheering them all on. details ahead on the skinny on this tuesday, march 17th, st. patty s day. announcer: from abc news, this is world news now . top of the morning to you. i m reena ninan. that s like an irish that s my version of the indian girl trying to be irish. is this your favorite holiday? i was into it. we had green cream cheese, which i threw up after eating in the third grade. oh, wow. tell us more about your dealings as a child. let me tell you about my dealings as an adult. did you get an e-mail from oprah winfrey? about about an hour ago. about a something her and deepak, right? manifesting through success. i signed you up for a free meditation. was that you? oh, my lord. i want to tell our folks at home. yes. they re doing a 21-day free meditation. you can listen on your ipod. it s 21 days. it s called manifesting through success. it s about quieting your soul. i thought you could use it. you re the one stirring my soul up most days is the problem. that s true. that s why i feel the need for quiet time. got this excited. oprah wants you oprah is inviting me to something. it was you. it was me. wow. that really kills my joy. you should try it. okay. we have a lot of breaking, serious news. that case just fascinating america. people are captivated by this thing. and good reason for it. you have been keeping up with this. right? this bizarre case. the billionaire real estate heir, robert durst. now, we have another twist and turn. he s facing gun and drug charges in louisiana. in addition to a murder charge in los angeles. if he s convicted for the death of his friend, susan berman, prosecutors could seek the death penalty. they alleged durst laid in wait at berman s home, before killing her execution-style. with more on this case, now, let s turn to abc s marci gonzalez. reporter: robert durst in a new orleans courtroom. his attorney insisting the real estate heir is not guilty in the shooting death of his friend susan berman in 2000. bob durst didn t kill susan berman. reporter: a contrast to durst s chilling apparent confession. what did i do? killed them all, of course. reporter: which aired for the first time on the finale of hbo s documentary series the jinx. there it is, you re caught. reporter: the six-part series profiled berman s death as well as the unsolved disappearance of durst s first wife, kathy, in 1982 and the murder of dursts s neighbor in 2001. in that case, durst was acquitted. after claiming self-defense. in interviews for the documentary, he repeatedly insisted he was not a killer. off camera, in the bathroom, apparently unaware his microphone was still on, the bombshell audio was recorded. it wasn t until two years later that an editor discovered it and handed it over to police. it was so chilling to hear it. reporter: the 71-year-old was taken into custody on saturday at his new orleans hotel where he was registered under a fake name. and according to the police report, he had a gun. the lapd, which issued the warrant, says the hbo series had nothing to do with his arrest. the fbi believes when he was arrested he may have been trying to flee to cuba. his attorney denies that. he is expected to be brought back to los angeles to stand trial. t.j. and reena? u.s.-led air strikes have hit suspected isis targets near the iraqi city of mosul. video here shows equipment being targeted. iraqis are getting more help from iran. this morning s new york times reports that iran has deployed advanced rockets and missiles to help fight isis in tikrit. it s also estimated that two-thirds of the iraqi fighting force has been trained and equipped by iran. this image from aleppo. burned out buses used as a shield against sniper fire. secretary of state john kerry saying the u.s. will have to negotiate with syrian president assad to remove him from office and end the civil war. assad responded by saying only syrians can decide his fate. relief workers are trying to reach vanuatu s remote islands. the tiny nation was virtually destroyed by a monster cyclone. dozens are dead. thousands have been displaced by the storm. at least 80% of the homes and other buildings were partially or completely destroyed. radio and telephone communications are improving but remain patchy. the ohio river is slowly receding from its highest level in two decades. many roads in low-lying areas are closed and homes flooded in new richmond, ohio. reporter: record snows melting fast. spring warmth and rain. a formula for flooding emergencies across the midwest. the ohio river, tugboats barely squeezing under bridges. dumpsters look like river buoys. and beneath this water, a murky mess. homes damaged. it s creeping in. it s seeping through the foundation right now. reporter: this is main street in new richmond. you can hear the water pumps going. even though the river is receding, areas like this are going to be slow to drain. most businesses are right up on the river, including the community bank. inside bank manager, tammy swisshelm, took creative measures to protect that cash. in a ziploc bag. get all of the air out. and lock it up. reporter: just like a sandwich. nice and dry. reporter: in louisville, the search continues for 67-year-old steven miller, swept away by floodwaters this weekend. just hold on to my faith in god that my dad s out there. reporter: extreme weather out west, too. in portland, oregon, wind gusts near 60 miles per hour, ripping down this scaffolding. back here in new richmond on the river, nearly in the river, getting to the critical 58-foot mark. hasn t been this high for nearly 20 years. it s a large river. it takes some time to drain. we ll be in flood stage through thursday. rob marciano, abc news, new richmond, ohio. let s give you a look, now, at your tuesday weather. no rain in the forecast for the ohio valley. but cold air is rushing in. rain moves across texas, with the heaviest in laredo and san antonio. showers are forecast in the northwest and northeast. the high temperature for today s st. patrick s day parade in new york is 55. much cooler for cleveland s big event, just 42. the high for savannah s big parade is twice that, about 85. 47 near the green chicago river. 60 in denver. and 91 in phoenix. ice is jamming the river just south of toledo. that s endangering a horse farm. the wall of water and ice moved in quickly, right to the stables. a similar flood more than 30 years ago resulted in a dike around the farm. but this year s ice floes pushed the river over the wall. some of the ice was as much as 30 feet high. we got an incredible rescue to show you now. this was from a burning house. it was all caught on video. the pictures you re seeing from deputy james collins body cam. a caller reported people were trapped inside the home. he didn t hesitate, as evidenced by this body cam. he is breaking windows, trying to find people inside. the deputy ended up pulling one woman through a window to safety. he had the lady he had to later be treated for smoke inhalation. collins has only been on the job as a deputy sheriff for two weeks. well, an unforgettable flight for a pilot in the midwest. he managed to walk away from this crash after his plane ran out of gas. the flight was en route from chicago to monroe, wisconsin, when he got into trouble. the accident knocked out power to the small town nearby. a surprising announcement from a rising nfl star. 24-year-old chris borland of the 49ers. he s retiring. after playing one season. borland, number 50, seeing there, led the niners in tackles last year, says he s leaving the game why? because of concerns about head trauma. he tells espn he wants to be proactive. but once you have the symptoms of head trauma, it s too late. the team says it respects his decision. i think that s incredible. this is unheard of in this this is the way what presence to think about that. you can make a lot of money. but it s not worth it if you can t enjoy it down the road. this is incredible. he s a really good player. he is a baller. yes, he is good. that s the correct term in american football? you can call anybody a baller. george stephanopoulos is a baller. if you re good at your craft. do you tell george this to his face? we have a handshake thing worked out. and you say, hey, george stephanopoulos hi. i don t feel comfortable saying that. we have to spend more time together. we have to. or maybe less, right? oh. hillary clinton, the e-mail controversy still, boy, causing problems for her. a new cnn poll shows unfavorable views of her are increasing. and perceptions of her as honest and trustworthy have dropped. more than half of the respondents say she hasn t explained herself enough. while her favorability rating is still strong, 53%, it is down. oregon, the first state to adopt automatic voter registration. anyone who is not registered to vote but has interacted with the department of motor vehicles will receive a ballot in the mail. the move is expected to add 300,000 new voters to the roles. oregon was the first state to hold all elections with mail-in ballots, as well. on this st. patrick s day morning, you can find all sorts of irish stuff in the most unexpected of places. here s a pretty cool example. the irish shooting star, if you will. not because of what s in the sky. but look at the water there. check oupt the colors. green, white and orange, from left-to-right. just like the irish flag. this photo was taken on sunday night. that s not ireland. it s actually lochness in scotland. we ll take it. cool picture. do you see the lochness monster there? i can t make it out. look closer. coming up, why gisele and prince harry may be retiring from their current career paths. respectively. they re not switching with each other or anything like that. yes. we ll have to explain that. first, a little bracketology, for those struck by march madness. why the most obvious pick may be the best. reena, sports with reena, we ll have a segment. you don t want to miss any sports involving reena ninan. you re watching world news now.” announcer: world news now weather brought to you by finish quantum max. weather brought to you by finish quantum max. 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more urgently, the clock that s ticking down is on a screen board. and the count to march madness. and here s abc s ryan smith. the shot to win it. reporter: it s like a fever that comes every year. everyone knows someone that gets it. even the folks on 30 rock.” there s times when my job is frustrating. like when lutz calls in sick with march madness. reporter: and bart simpson gets it. the sickness all bosses dread. march madness. around ncaa tournament time, 14% of fans taking a sick day just to watch part of it. and 56% of american workers admit to spending at least one hour of their work day following games. on the ncaa s live feed, there s even a boss button. hit it and it looks like you re hard at work. the easiest way is make watching the tournament your job. like nate silver, the numbers guru behind 538.com. you get in trouble if you don t watch the tournaments. reporter: so, all of this is basically a ruse to watch the games every day? no. people can bet on it, right? reporter: nate says kentucky has a 40% chance of winning it all. 40% chance is as good as you re going to do. if you re filling out a bracket this year, it s probably the smart thing to pick kentucky. reporter: just don t get caught cheering for them at work. ryan smith, abc news, new york. this is a holiday. don t bother me on thursday and friday. all right? just i m going to be a mess in here on friday. you warned me a month ago about this. yes. i take vacation days. i normally take vacation every year to sit at home on the opening weekend. thursday, friday. sit at home. don t bother me. watch every game. why are people so into this? because this is a spectacle in sports. it s one of the greatest spectacles in sport because of the unpredictability of one and done. no matter how good you are, you could be gone. and everybody, no matter, if you know the game or don t know the game, we re all equal when we fill out a bracket. yours is just as good as the experts or anybody else s because this is unpredictable. i picked four teams six teams yesterday that are not not even in the tournament? i picked my alma mater. how do you do that? g.w., university of florida, university of miami, university of south florida. we ll work on her, folks. she s she ll be fine. she ll be fine. you know, dancing with the stars.” love it. there it is. it was dynamite last night. season 20 got kicked off. and mitt romney geared up for a new fight. you won t believe who his opponent is. the skinny and a bonus round up next. announcer: world news now continues after this from our abc stations. skinny so skinny topping our headlines, season 20 of dancing with the stars.” last night s season premiere on abc was a power-packed one. it was incredible. starting off with a surprise. some of the stars could actually dance. olympic gymnast nastia and derek hough fox trotted to new york, new york, starting off in black and white and switching to color to kick it up into high gear. and it was an amazing flip. but really bringing the house down, noah galloway and partner, sharna burgess. when the moment comes you say i woo. the iraq veteran and his partner were given a long standing ovation. but the reaction wasn t as enthusiastic for actress suzanne somers. i m not going to laugh. i could never handle the pressure. the pressure? yes. and i think she s doing great. she was doing just fine. her and her partner. they have the throwback. with their cha-cha. she had a couple missteps. and judges had positive feedback. topping last night s leaderboard, rumer willis. she was cheered on by her mom and dad, bruce willis and demi moore in the audience. she did not disappoint. everybody buzzed me about that. the fox trot with val, it got them straight-8s. you see right there. it was really powerful. i thought she was she surprised us. surprised me. next up, the world s highest paid model set to hang up her walking shoes. gisele bundchen. she is 34 years old. she is set to retire. she made that announcement now. she s been on the runway for 20 years. retiring from the catwalk. she s hardly retiring from modeling. the brazilian beauty will continue to front high-profile print campaigns like chanel, and h&m. as well as her own footwear and lingerie labels. and she is a goodwill ambassador for the united nations. and she might want to take a few retirement hints from david beckham. excuse me. are you okay? hardly. the soccer player beckham retired after 20 years on the field. in his first full year of retirement last year, his endorsement helped bank his biggest year ever. $75 million. beckham pitches for sky sports, belstaff and adidas. why wouldn t you want a guy like him pitching? gorgeous. and topping off, rich people retiring even richer news. prince harry set to hang up his fatigues. say it ain t so. harry says it was a tough decision. after his tour in australia he will leave the armed forces. he joined the british army ten years ago, rising to the ranks of apache helicopter commander. way to go. he went a lot of places most human beings wouldn t have the courage to go. bonus round next. und next. ay,no! don t do that! try new head & shoulders instant relief. it has tea tree and peppermint that cools on contact. and also keeps you 100% flake free. i use it for cooling scalp relief in a snap. mi bebé ha crecido tanto. try new head & shoulders instant relief. for cooling relief in a snap. thank you for calling colonial penn life insurance company. i m glad i was able to help you today. hi, my name is jonathan lawson and i m a customer service representative for colonial penn life insurance company. insurance can sometimes be difficult to understand, but here at colonial penn, we make it simple. alex trebek has been representing colonial penn for over ten years and is here to tell you how we do it. thanks, jonathan. i m happy to be here with these knowledgeable colonial penn representatives. i know that customer service is a priority for them. i ve been representing colonial penn for over ten years talking about their guaranteed acceptance life insurance. if you re 50 to 85 write down the toll-free number on your screen and call for free information. with this insurance, there s no medical exam, no health questions either guaranteed. you cannot be turned down because of your health. your rate will never go up and your benefit will never go down due to age. it costs just $9.95 a month per unit. that s less than 35 cents a day. call them now. you ll be glad you did. at colonial penn we ve been serving our customers for over 50 years, and we have over half a million life insurance policies in force that help cover funeral costs, medical bills, credit card balances or other final expenses. we re committed to our customers. we make insurance simple! (representatives speaking) that detergent was like half the price! and we ll have to use like double! maybe more! i m going back to the store? yes you are. dish issues? get cascade complete. one pac cleans tough food better than 6 pacs of the bargain brand combined. cascade. now that s clean. man (sternly): where do you think you re going? mr. mucus: to work, with you. it s taco tuesday. man: you re not coming. i took mucinex to help get rid of my mucusy congestion. i m go od all day. [announcer:] mucinex keeps working. not 4, not 6 but 12 hours. let s end this skinny so skinny welcome back to our special bonus round of the skinny.” starting off with a new fight for mitt romney. not political this time. he s not running for president again. he s going to be stepping into the boxing ring, yes, with former heavyweight champ evander holyfield. what? it s scheduled for may 15th. this is for charity. romney joked that it will be either a short fight or i ll be knocked unconscious. those could be the same thing. a short fight when he s knocked unconscious. just bite his ear. he ll be fine. he ll be fine. just bite his ear. i don t know what to say. you don t get the sports reference there. i know about biting the ear. i don t know about march madness. but i know about the ear. sting like a butterfly swing like a bee? we ll deal with that later. the knockout on our cast on our parent company disney s live action revival. emma thompson will be filling some very big shoes. starring starring as mrs. pots in beauty and the beast, voiced originally by angela lansbury. that was the original animated film. the film will star emma watson as belle, kevin kline as her father, and dan stevens as the beast. the movie is set for release on st. patrick s day 2017. it s going to be in 3d. and speaking of classic films, there was quite a reunion of sorts by the south by southwest festival. this is in austin, texas. molly ringwald and ally sheedy, together to celebrate the generation x coming of age classic the breakfast club.” do you know how popular i am? i m so popular. everybody loves me so much at this school. poor baby. [ laughing ] okay. it s hard to believe. ringwald, 47 years old. and sheedy there s no way she s 52. they look great. 30 years? it s been 30 years? it s been 30 years. they were that young when that movie was made? it was a great movie. would you believe i ve never seen the breakfast club”? i think you should see it this weekend. have you seen breakfast at tiffany s ? haven t seen that, either. i m going to send you a list. anything else i missed? is there a good st. patrick s day film? one of the leprechaun movies. the horror movies. horror movie? leprechaun 1, 2, 3, 4. they made several of them. what? oh, they did. pretty sure they did. okay. announcer: this is abc s world news now informing insomniacs for two decades. announcer: this is abc s making news in america this morning, breaking overnight, an airline passenger restrained after people on board say he tried to rush the cockpit. the dramatic call from the pilot just in. also new this morning, robert durst hit with more charges after getting arrested in a decades old murder case. plus, what his attorney said in court about the allegations. early retirement. an nfl player with a promising future walking away after just one season. his decision reigniting the concerns about concussions around the league. and put them up. from the political ring to the boxing ring mitt romney is putting on gloves and you are not going to believe who he s taking on.
i m jim cramer, and welcome to my world. you need to get in the game! firms are going to go out of business, and he s nuts! they re nuts! they know nothing! i always like to say, there s a bull market somewhere mad money, you can t afford to miss it. hey, i m cramer. welcome to mad money. welcome to cramerica. other people want to make friends, i m just trying to save you a little money. my job is not just to entertain you but to teach and educate, so call me. so we go over the sequestration cliff and what happened? so far, not only did the averages not get crushed but they actually went higher. dow gaining 35 points. s&p rising .23% and nasdaq increasing .30%. how can the market keep rising when there s so many things going against us? consumers are getting squeezed. higher gas prices. end of the payroll tax holiday. now we have to cope with the allegedly draconian government spending cuts. not so fast. according to the michigan survey, consumer confidence surged. maybe they aren t watching tv. maybe they aren t looking at their own diminished paychecks. direct deposit. i have another theory. i think the pessimists who constantly focus on the litany of woes are missing something that should be offered to them. it is called the virtuous circle known as the wealth effect. if you own a home, and 67% of the people in this country do, you are probably feeling good. because all over the country houses are going up in value, making you feel richer. if you are one of the millions owning stocks, 401(k), your portfolio is probably worth more than it was six ago. people are feeling wealthier. because they are wealthier. and you ignore that fact, let s say, many of the bears do, at your own peril. with that in mind, let s go over the game plan for next week. of course we have the fabulous becky quick interview be warren buffett monday morning. we have earnings too. not that many, but we have earnings. we have this scenic group. this is the stock formally known as dress barn. this company had become one of our favorite retails for its ability to take over washed out brands. i think it let us down. many retailers are closing in on the highs. we didn t see a solid quarter out of these guys. in order to justify any conviction they can end the tailspin. we get results from brown forman. you can see it there. little, tiny. but you can see it. we absolutely love the liquor trade here. whether it be beer with bud or hard liquor or brown foreman, the maker of one-time favorite jack daniels. before i discovered the wonders of sipping cheap scotch on my dirty linoleum floor. there is negative analyst on brown foreman. boy, they hate this thing. you think they must hate jack daniels. but i think they have to eat crow when we see the numbers. okay, let me point out, it is not as good as diagio. and if it does disappoint, go for diagio. petsmart, all right, this is kind of interesting. a lot of people have been talking smack against pet smart. the stock has been hammered here. but we think it is in the uptrend. so we will happily take the other side of the pet smart trade. now, two supermarket chains strut their stuff this week. safeway with an investor meeting on wednesday. and kroger with its earnings on thursday morning. both companies have been improving. both of them are taking aim dead on at whole foods. emphasizing their own organic and healthy eating concepts. i expect kroger to have another down draft at whole food stock. ugly chart, by the way. what should you do? i would wait until a after kroger, after safeway, after kroger is settling knocking whole foods on thursday, i would buy. there are analyst meetings happening next week. on tuesday, tractor supply, one of our favorite high-growth retailers, holds a media and this company is the go-to farming and garden store in this country. i believe it could take out its all-time highs after it takes out what i call the store. there is honeywell, where i believe ceo dave coney well, he will let you know some terrific things at his company. he will unveil some things. this is one of my all time favorite stocks, and it has been a fantastic performer. exxonmobil, however, they got a shindig on wednesday, and i have to say i m worried about this. exxon has been unable it grow production at levels acceptable it many oil and gas investors and that s the key metric for oil and gas. at the same time, they are an ultra conservative company. why does that matter? because oil has been breaking down here. i don t expect exxon to say anything that could reverse the trend. they might see good news in natural gas but remember exxon does not believe that natural gas is going to be a major surface vehicle fuel. effects, by the way, i think they can transform the american trucking industry overnight by providing natural gas engines, but don t count on their support. the biggest news, next week, comes on friday. when we get the labor department s february employment report, payroll report, 8:30. one of the themes about this hose historic front is that they will have to take away the bond program. the bond issues that help keeps interest rates low that support stocks. i cannot tell you how many countless dollars have been left on the table by investors who are just plain scared out of their wits about this problem of unwinding the program. how do we get out of this? many of the thinkers you hear from believe this is the transcending moment. how can the fed end it? what about the collapse of the stock market? we have had a lot of moment in the way up when the spirit of the fed has been transcending from the public. see, companies turn out profits like not focused on the fed. you ve got to take both eyes. you can keep one eye on the fed, how about that? i think upcoming employment data will promote a lot of fed-induced angst, along the same lines i just mentioned. there are people who believe if job creation is too strong. i know you might think this is good, but people don t. there is liquidity they believe is the rocket fuel for this rally and therefor the rally will fizzle. there will be others who believe if the jobs data is anemic then corporate profits will take a blip down. or some people will say this number is in the rearview mirror and going forward. the sequester-induced job losses are going to be very negative for the tape. i m looking for a goldilocks number, though. that would be just enough to justify bernanke s bountiful stocks at least in course of action that is so eloquently spelled out. he wants to get employment down to 6.5%. unemployment is much higher than that as still and still allow corporate profits to keep on trucking. here is the bottom line. next week is all about this figure, frankly. we have a lot of good things here. most of them are pretty good. but it is this that matters. and because so many people are worried about bernanke taking his foot off the gas pedal, we need to thread the needle. not so much to make the fed feel like its work is done but not so bad that it indicates truly grim things for stocks and of course businesses that back them up. brian in florida. brian? hey, jim. brian from beautiful tallahassee. i lived on 181 peninsula. what s going on. papa john s pizza reported they had to restate their earnings for the past few years. right. wednesday bears called the stock down almost 10%. did the price did the earnings restatement even matter? i did a lot of work on this, i got to tell you. i always say irregularities equal sell. i was reluctant to come out here and bound the table. i m quite familiar with reinstatement. this is minor, and the company did a really good job. but here is the information, partner, domino s is better anyway, so who needs papa john s. let s go to south carolina. alesandro. how are you. good, sir, how are you. good. the dow approaching an all-time high and the volatility this past week, how does one play the vix? i don t typically like it play the vix. a lot of people talk about it all the time. people say, listen, the vix is up big and that shows you the fear index. i don t trade the fear index. i don t do that stuff. i recommend owning individual stocks, okay. and we do the fundamentals of the stocks. that is something i can work with. the vix, i m just trading sentiment. sentiment to me doesn t have a price earnings multiple or earnings per share that i can get my arms around. next week, it is all eyes on the employment report, okay? the market is looking to be sure that the fed keeps its foot on the gas pedal, and i think they will get a number that will make that continue to happen. mad money will be right back. coming up, beauty mark. if you missed out on the market s performance in 2013, it could be time to make up some ground. tonight, cramer spotted a speck play hiding in the cosmetic case. could it provide a beautiful return, or should you pass on the powder? stick around it find out. later, home depot versus lowe s. the housing market s been busy building a strong foundation for recovery. as consumers fix up their most precious possessions. but which home improvement play is bringing in the most bucks? cramer crowns a winner. all coming up on mad money. don t miss a second of mad money. follow @jimcramer on twitter. is have a question? tweet cramer. #madtweets. or e-mail madmoney@cnbc.com or call 800-743-cnbc. miss something? go to cnbc.com. here at mad money we are always willing to listen to the other side of any story. in fact, i really like it whenever a company i ve said critical things about takes the time to rebut my criticism in a thoughtful way. and explain why they think i should change my mind. take elizabeth arden. the beauty products company that makes all kind of cosmetics and fragrances. here is a stock that ran up to $49 earlier this year and then got crushed. the company missed numbers and cut guidance. that was back on january 31st. arden lost a quick 16% of its value in a single day. wow. and the stock has been trading around the 38 to 39 level ever since. just hasn t been able to recover. so about a week later, i said some critical things about the company on squawk on the streak. mainly it was the estee lauder and elizabeth arden in the same sentence. do you go with the coach tiffany or estee lauder? i think estee lauder. they are a remarkably run company. and not elizabeth arden. i shouldn t say estee lauder and elizabeth arden in the same sentence. sorry. what more did you do to stay away from the foul-smelling stock? there are two sides it every story. elizabeth arden sent me a very polite letter. not kidding. they gave me a turnaround story. i m convinced there could be a potential reversal of fortune for arden. this is why we are talking about it on speculation friday. here is the thing, yes, latest quarter is not so hot by any stretch of the imagination. there is no way to put lipstick on this pig. hold it, just a second. speak of the devil. oh, okay, i don t know these things. i m still busy trying to get the brazilian from groupon. this will improve its position in the beauty market. let me read you a snippet from the letter. quote, in 2012/2013 elizabeth rden is undergoing a major repositioning keeping everything great about our economic brand while refreshing packaging, advertisers, end quote. they highlight the company s strongest brands. including prevage, the anti-aging serum using the most powerful antioxidant on the market. eight-hour cream. beautiful color, smoky eyes, powder pencil. a host of celebrity fragrances. brands like elizabeth taylor white diamond. i knew that one. justin bieber s two fragrances. i don t know, i may be too old to smell like him. but we all are and it appeals to the middle school demographic. but the sense is about the company s reposition to take a second look at elizabeth arden. turns out the product and packaging has been redone. every piece of it. the company removed 30% of its product from the mix in order to make it simple for consumers to understand and more productive for retailers to carry the stuff. arden redesigned counters. all internet training platform. result is retail sales flashed in stores that fully implemented elizabeth arden s brand modeling. new ones are up 24% year over year in the united states. up 9% internationally. to me, that empirical evidence the plan is working. there is an additional 200 doors by the end of the year. well before this brand makeover is finished, elizabeth arden is a major player. they account for 68% of the company sales. that what it is, people. arden is almost 70% market sales in the mass retail chain. they have 5% share in prestige department stores. even though that 5% figure is smaller, it still makes elizabeth arden one of the top three or four vendors in the department store games. the company still has a lot of room to grow. especially now that they redesigned their packages, makes it more upscale. that s what department stores want. the next trajectory will be international. which is 34% of the company sales but is getting larger. i like that. they are expanding rapidly in the developing world. especially in china, india, latin-america and middle east and africa. consumption per capita is much higher than in developed markets like the united states. the fragrance market in brazil is now larger than the fragrance market in the whole of asia. now in the united states, elizabeth arden has 20% market share. that s pretty good. in europe they are less than 1%. get this rare 4% across the atlantic can easily double or triple the size of their business over there. by the way, there is a bit of good news here. a silver lining play book. they have so little in europe, the woes of the cotton hasn t hurt them. i like where elizabeth arden is trying to go. but there is still questions about the quarter that left the stock tumbling. what went wrong? is it something we should still worry about? they got hit with bad breaks. amazing. the can company suffered from a key mass retail customer possibly caused by economic worries at the end of last year. remember everything that happened as everybody was freaking out about the fiscal cliff. that still worries me because we don t know about that. the retail channel probably won t repeat itself. third of, softness in china. partly caused by the chinese new year. but now we know china is picking up steam. i don t want to be super concerned about this being an issue the next time the company reports two months down the road. though it was the only company we deal with, it seemed to have a chinese soft patch against yum and caterpillar. they have a chicken thing going with kfc and the latter doesn t seem to have much to do with the way justin bieber smells or sings, for that matter. it dramatically slashed in 2013. that s good news because management reset the expectations at a lower level and one i think they can beat. the stock is $39 has come down seven points from the quarter and now more than 10 point off its highs. at these level elizabeth arden is not factoring positives. this whole thing started when i compared elizabeth arden unfavorably with estee lauder. after doing homework, i realize, it isn t a fair comparison. listen to this, estee lauder, all high end, while elizabeth arden trades at 13 1/2 times earnings and 12% growth. arden has a lower multiple that is a heck of a lot cheaper on basis. you would do worse than elizabeth arden. especially like the low levels. i do believe that lauder is worthy of intense praise and may have to include lauder in the gatsby index part two. here is the bottom line, in the market that approaches all-time highs, we need to look at taking a second look at underreporting stocks. some might have the capacity to bounce back. after elizabeth arden has explained itself, i think this company may turn itself around. which is why i m giving it my blessing as a buy. but only for speculation for turn around and turn around is about the roughest corporate transformations possible. after the break, i ll try it make you some more money. coming up, home depot versus lowe s. the housing market has been busy building for consumers. which home improvement play is bringing in the most bucks? cramer crowns a winner. even the hottest segment of a raging bull market stock picking still matters. i have it find the right thesis and bet on anything falling in that umbrella. find the companies, the best in the sector. anything less than the best can let you down. even when you are dealing with a rising tide situation, you ought to be able to lift every ship in sight and then some. this is one of my rules for decades. but this week we have a terrific illustration of why it pays to stick with best of breed. of course it didn t hurt anybody but i think this is a major concept here. this week we heard from lowe s and home depot. perhaps the hottest theme for 2013, would you have thought both companies could post fabulous numbers, but that is not what happened. they are both in same industry. both build on the same. though home depot is bigger. and they both benefit from the same positive tailwinds. like the fact that we are on track to build a million homes this year. listen, that s huge from 2012. and before that, while mortgage rates remain well, many areas buying a house is cheaper than renting. housing is coming back so strong that people compare the period to a housing bubble. i think that s way too premature. bubble talkers are totally misunderstanding where we are in the cycle. we are a long way from the lofty heights of 2006. tons of pent up demand, and we have home shortage in many areas of the country as inventories come down dramatically. you would expect lowe s and home depot both to be able to knock it out of the park. but lowe s still disappointed investors. why you need to stick with the best in breed, home depot, and you don t need to be in loser, lowe s. there is a nice position buildup in home depot. what happened here in monday morning? lowe s told us they earned 26 cents a share. that is higher than expected revenues. they gave earnings guidance for 2013 fiscal year most importantly below what the analysts were looking for. in response the stock dropped 4.8% in a single session repealing almost all of the gains for the year. to be fair it lowe s, since then this forgiving market allowed lowe s to rebound to the point where it is trading above where it was when it reported. but the stock did help knock the whole market down when it reported because the less than stellar results, they called into question the entire housing bull market. the next day we heard from home depot, and what a different story that was. home depot earning 67 cents a share and 13.9% year over year, unlike lowe s where they were this decline. home depot s guidance is below what wall street is looking for. the company has a history of being conservative with the forecast, and people saw through that conservatism and bid the stock up immediately. the real difference here is beneath the headline numbers. at lowe s, same-store sales up. so not bad. however, depot, posting a 7% same-store sales gain when they were looking for 4%. not only is that a great number, best since 2004 but the gap between lowe s and home depot is the widest in 13 years. lowe s can t break 2%. you know these companies are simply not in the same boat. and it doesn t stop there. home depot sales per square foot came up 13.3% the bottom. still 16.1% off the peak. lowe s is much lower, up only 3.2% from the bottom. a lot more work to be done by lowe s. even home depot s gross margin after cost of sales shrank by six basis points because there with is a lot of margin stuff. think lumber at 34.9%. still a good 60 basis points higher than lowe s. how about buy backs? lowe s raise to 5 billion share buy back plan. okay. equivalent to 11% of the company s market cap. not bad. but home depot announced a $17 million buy back and that is 16.6% of the buy back and 34% dividend boost. fourth dividend hike in four years. bring yield up to 2.25%. even for home depot s stock price appreciation is better than the puny 1.6% yield from lowe s. how is it that home depot was able to do much better than lowe s? one word for it, execution. home depot is a better run company than its competitor. the company is definitely seeing gains about it. so that s the right thing to talk about. however, home depot is way ahead of the can curve here, having put its own restructuring plan in place in downturn of 2008. that means home depot is has the edge with supply chain optimization, special order sales and late chest is a very good hit, buy on-line pick up in store program they started in the past program. lowe s is making progress. you could say, jim, you re picking on these guys, they are making money too. but lowe s is not as good as home depot. but they are both in the same neighborhood. excellent house, not as nice a house. home depot is in a much better position to profit from a better housing market. plus, the prices have restructured. the company is resetting merchandise, but they only completed 30% of resets by the end of year and in some areas like appliances, that means, maybe lowe s didn t have the right product that people want. home depot is seeing stronger product category than any time i can recall. and ticket transactions up 9%. and home depot stores are better situated in most major areas. as customers come back, it is usually easier for them to get to home depot than lowe s. once the sandy relief money starts coming through, 6 billion from fema, i have to believe more of it will go to home depot than lowe s. i m telling you, lowe s may look cheaper but home depot is the better investment value. here is the bottom line, when you have raging bull market, you want it stick with best in breed rather than less expensive. home depot is a better run company than lowe s. that s why it is benefiting more from the housing recovery and why i prefer the stock of home depot to lowe s any day of the week. john in virginia. john? caller: jim, boo-yah. from hey market, virginia. from the house of pain for your phillies. i won t disagree. i was watching that yankee game. go ahead. caller: john deere, their ad says nothing runs like a deere but it is stalling in the grass, 21 months ago and where it started at this year. reported good results in 2013. good cautious outlook and down she went hitting bottom this monday. is it time for deere to i was worried about it. i with a was looking at deere, with the charity trust and the price of corn is going down so deere is going down. they have a symbiotic relationship. if you want ag, i m going to recommend biotech company. let s go to adele in my home state of new jersey. caller: hi, how are you? i m wondering if you can tell me where you see costco a year from now? and do you think it will ever split? i think i see one closer to my neighborhood. right now there are two that are too far away. i think costco has the ability to be the juggernaut. i like the stock. they paid dividend. good news. wouldn t surprise me, costco growing at the pace it s growing. it is pretty quickly. i would say, that i could see the stock trading easily up to 110 without a problem. even in a bull market, it is best to pay up for the best of breed. and in the world of home improvement, as much as lowe s is a nice house, home depot is the best house in a pretty darn good neighborhood. don t move. coming up, you plan, you play, you try to be perfect. but can your strategy stand up to cramer s test? call, e-mail or tweet @jimcramer to find out if your portfolio has what it takes in am i diversified? it is time. are you ready, skedaddy? we start with frankie in pennsylvania. frankie? caller: how you doing? what s going on with you? caller: good, good, good. listen, i want to know about this 8 by 8. do i buy, sell or hold? some guys liked it look no, no. this is a speculative stock i do not care for. i will call it what it is. i don t think they can deliver. you want to be on internet, i will send you to cisco. stock is inexpensive. ten times better, better buy. robin in california. caller: boo-yah to you, jim. nice. what s going on? caller: thanks for helping all of us ladies to control our own future. that s what i want. caller: i started buying lionsgate film in november in increments as you taught me. i m up about 35% but i would like it keep it for a while. should i? lionsgate had a remarkable move. during hunger games, stock went from 12 to 15. going up ever since. i will bless, continue to audit but remember, don t be greedy. when it gets off 50%, take off some. you have to because it ll be too big a piece of your portfolio. joyce in texas. caller: this is joyce in texas. jim, i m going to ask you about fossil. now this dropped around $98, now it is climbing. closing about 103 today. high is 104. i need your opinion on fossil. i think it is too volatile. i see michael kors being a much better company, and kors is down. you want to play what is known as beta and accessories, i would swap out a fossil and buy michael kors. let s go to robert in florida. caller: boo-yah, jim, from south florida, how you doing? wish i were there. what s going on? caller: pretty good. i want to get your opinion on newcastle investment. i kind of like that. because i m a huge believer in real estate. regional banks, another way to go. josh in ohio. josh? caller: hey, jim. big boo-yah to you from university of finley in finley ohio. i like marathon. you know that. i like well, i like the oils. they are down on their luck right now. what s up? caller: i m a senior in college. love the show. thank you. caller: i m following and doing tech analysis on dean foods, ticker symbol df. i expect a price increase. what do you think about dean foods and where do you see the stock going from here? we like dean foods because they are doing the whitewater spin off. thought that was exciting but it is played out now. i would rather be in a higher yielding food stock. general mills, if it pulls back. kellogg, if it pulls back. kraft, i think they are all superior. kevin in oregon. kevin? caller: thank you, jim. i ve been watching you since day one, and i really appreciate it. thank you. caller: what s the deal with pen west? keeps going down. all these trusts have been trading down. that s why i m recommending things like enterprise. like epd. by the way, the keystone pipeline, but enterprise at 4.25% is better. elizabeth? caller: several months ago you were excited about mexico and anyone else wishing to be excited in mexico invest in shares of eww. yes. caller: do i sit tight absolutely. if it goes below 70 buy more. and there is a position in this, we think mexico, read the stories coming out of mexico. with what is the competition of pemex. gross domestic product, inflation all going your way. i think mexico is a great buy and i recommend that you buy even more of that security. and that, ladies and gentlemen, is the conclusion of the lightning round. the lightning round is sponsored by td ameritrade. who belongs to the gatsby index. nothing says preppy like polo. nordstrom s. i love my mall, i tell that you. and lululemon where you dropped $250 on saturday, couple pairs of pants, a shirt and yoga mat? we need rich people supermarket that s whole foods. and last but not least, starbucks. how do you say you want a mocha skim in mandarin? caller: boo-yah to you, jimbo. we love you. need a spot for you on mt. rushmore. okay. it s jammed up there, but that s all right. let s go to richard in kentucky. richard? caller: yes. go ahead, richard. from kentucky, you must be lucky. where s richard? go ahead. caller: am i on? let s get go to mike in new york. caller: boo-yah, mr. cramer. thank you for giving me a shout out during the segment you did last week. i did a shout out to mike? caller: i was watching with my wife, and she was very impressed with me so i need to thank you for that. what mike? yeah, the whole piece that was mike. 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[singing] hoveround takes me where i wanna go. call or log on to hoveround.com to find out where a hoveround can take you! it s been a pretty solid couple months for the bulls. but you can t get complacent. got to be sure you aren t too concentrated in any one group of stocks. a stocks sector can be more important than the stock itself or its performance. be vigilant and protect ourselves from too much overweighting in any one group. less we be hammered. what tech was in early 2000s where housing financials at the end of the decade where oils and golds are being hammered right now. that s why we play a diverse button. this is where you call me or tweet me. tell me your top five holdings and i tell you if your portfolio is diversified enough or if you need to mix it up a little. he says, am i diversified? let s take a look. all right. amt, american tower. honeywell. j.p. morgan, the bank. lnco, oil and natural gas company. aig. hash tag, am i diversified? mad sweets. he s got all these hash tags. massive hash tagger myself. all right, let s take a look. j.p. morgan, premier bank, 52 week, all the way up. honeywell, dave cody, doing a fantastic job. let s call out a bank, leading industrial, american tower, very good call. very good call this week and that is a cell phone tower company. aig insurer. oil, energy and gas. are these two financials too much a like? aig and j.p. morgan. i will bless this. this is insurance and banking. we have a cell phone tower company. oil and gas. i m saying, congratulations. let s get to charles in michigan. charles. caller: hi, dr. cramer. hardy boo-yah from deerborn, michigan. thank you we much, man. we were up there when we went to that ford show. what s going on? caller: well, here are my five stocks. gld, mo, shfl, tldc. all right. we have to go over these and say what they are. we have the gold, which is gold etf. mo which is altria. shfl which is shfl entertainment casino play. att and verizon. we have casino, gold, tobacco. good. verizon and att, no, no, they are pretty much the same. if one has a bad number, the other goes down. so we will add a healthcare play. insert bristol meyers instead of att, and then we are in good shape. thank you for making me doctor. let s go to jeff in colorado. jeff? caller: hey, jim. this is jeff out here in denver. i m playing diversified here, if i could. yes. caller: all right, first one is excel energy. second one is centurylink, ctl. i have had intel for the last 12 years. another one is rpm. and then my last one is speculative, anh. am i diversified there, jim? let me check this out. let s get a look at this. excel and that is viewed as an energy company but that s excel trust. that is trust retail property trade. okay. all right. so excel trust and intel, centurylink is telephone, rpm, industrial for housing. excel and we got to get rid of excel. that doesn t work. keep amworth even though it is speck. others are okay. we will add once again, bristol meyers and take out excel trust and they we will be in good shape. thank you for playing am i diversified. we ll be back after the break. jim cramer, you re one of my heros. i look forward to your show every week night. thank you so much for helping beginning investors like me. when you talk about the markets, i just believe that you re spot on. oh, i love it. thank you so much. every night we watch you. i have learned and earned. what do you really sell because of the sequester thing? what about all of the double and triple etfs and cdos and come up with a sequester to trade. they can have these pieces of paper at the drop of the hat, so why not give us the security to play the ups and downs of sequestration now that it is here? there can be higher unemployment claims. number of planes taking off late. number of lines at security airports. closed national parks and criminals that weren t prosecuted because we didn t have the money to do so. so you bet for or against the impact of the across the board spending cuts. allow us to go short or long across the index. profit from the stupid thing. the actual fathers of this travesty remain hidden from view. we need to trade a federal sequestration misery index, something that genuinely capturing points gained or loss. put a real dollar value on what seems something too etherial. no matter how hard those in washington try it make it seem. like a dire dooms day machine. why dot geniuses who create federal weapons of mass destruction at the drop of a hat, we need the sequestration misery index because every time we try to settle market as we did this morning on pure worries of the sequester. we tried to fit this dastardly square peg in the round hole that is earnings per share. unless we can figure out the actual impact of the sequestration on business. i have to go to my age old mantra and ask how does the sequester impact. bristol meyers. this stock won t be impacted no matter what we hear from the president or speaker or anyone with a microphone. it seems with the intention of scaring us and driving things lower with apocalyptic chatter. i always try to find myself trying to figure out what stocks are indeed affected. as usual, there is a dearth of stocks that should be number one really, the public enemy number one of the stock market. because there s got to be some impact to the defense sector, right? doesn t there? but then again, the defense stocks index keeps hitting an all-time high. i think what the bears got wrong here is they didn t have a security that could be crushed purely off the sequester. nothing complied. so they got to create one. there is something you ponder over the weekend. from the looks of this market, the sequestration doesn t have enough relation to the profits of companies or the stocks themselves to allow the short sellers to get the just desserts they feel entitled to. sorry, get us something to trade that goes down the sequester and i m all ears. until then, i say, stop bothering me already! stick with cramer.
problem. canyons gear up for a kenyan election. canyons gear up for a election. on a mission in northern mali, chadian halters are on the hunt for al qaeda linked fighters. eight discovery brings scientists closer to eliminating hiv infections in children. at least 38 people have been killed and scores more were injured in the southern pakistan city of karachi. witnesses say a car bomb will up outside a mosque in a minority shia muslim area and is acting explosion happened shortly afterward. people missing are reportedly still trapped under the rubble. a report from the scene of the blast. chaos and carnage after a deadly attack targeting shia muslims. the first blast occurred shortly after evening prayers and was so powerful it was heard to meters away. locals say it was this vehicle that carried 150 kilograms of explosive material that caused such death and destruction in the residential neighborhood. the neighbor nature of the second blast remained unclear, with police officials speculating it may have been caused by a nearby gas cylinder. whatever the case, the scale of destruction is enormous. two apartment blocks in the mainly shia area were completely gutted. this person s home was all but destroyed. when i got here all i saw were dead bodies, burned beyond recognition. everything i had is now gone. well the residents here are digging through the rubble trying to find whatever they can in the hopes of finding survivors. the scale of this bombing is enormous. although many people have been taken to hospital hospital there are many others who will remain unaccounted for. amid the desperation to find those who may be trapped in the wreckage there is also anger. two other attacks targeting shias in january and february killed 200 people. a pro-sunni group claims responsibility for the attacks that sparked a nationwide protest. the government called for a targeting against the group, but many believe not enough is being done to protect shias. this attack could have been avoided. instead politicians want to negotiate with these killers. shias make up a crock approximately 1/5 of pakistan s people. frustrations are clearly rising with each attack. a strike has been called for monday but there is growing concern in the community, which has remained largely peaceful in spite of the violence of faces, may begin to take their anger to the streets. al jazeera, karachi. in an interview with al jazeera, pakistan s foreign minister condemned the attack which seems to have targeted shia muslims. there is absolutely no justification. absolutely no speaking to any mother who has lost a child. if trying to paint it in a way where i have no you know, i absolutely cannot try and undermine or overlook the suffering that many, many people in pakistan had. but what i say is that you have to see, what is it that the pakistani nation and government can do, and are we doing that? certainly more needs to be done. what you are mentioning, targeted killing of any sort, all of this is part of a bigger wrong. that is of any entity using violence to prove their point. you would be surprised, pakistan is a country where for instance as a student in school i did not know which of my classmates were shia and which were sunni. we all existed peacefully, perfectly. in parliament i do not know who is shia. it is not important. the government does not know who is shia and who is sunni. this is the spirit of pakistan. we also spoke to the foreign minister about the ongoing clashes in bangladesh. she said nations should not let the past defined issues. 40 years ago bangladesh broke away from pakistan after a nine- month war. as stance is this is an issue for the bangladeshis to resolve among themselves. our stance is also it is important for us as nationstates in the region to be forward-looking rather than backward looking. we have allowed our past to define the future for far too long. you cannot allow the past defined for far too long. in pakistan when pakistan decided to change a 40-euro policy toward india where we decided to more normalize trade with them, we decided we would be forward-looking and keep our eyes on the future of our children rather than the past of our grandparents. so really, that is our advice. i would not be able to say these are matters for the bangladeshis to resolve. staying with bangladesh. the opposition has called for a national strike protesting the conviction of a leader of the jamaat-e-islami party for war crimes. most deaths have occurred in recent violence between police and demonstrators. our correspondent in bangladesh we are not aiming for security reasons. protesters fighting police. 280 kilometers north of the capital, there has been more violence in the early hours of sunday morning. police stations were attacked in several people killed. the local administration has called in the military to restore order. it is the first time the military has been deployed to the streets of bangladesh since 2009. protesters across the country are supporting calls for the jamaat-e-islami of a 48 hour national strike. one of their senior leaders was sentenced to death on thursday by a war crimes tribunal for committing atrocities during the 1971 war of independence. the strike has been well observed in the capital. shops, offices, schools, and businesses have closed doors. but it is not sure if that is because people want to support the cause or just protect their livelihoods. well there is a noticeable lack of traffic on the roads, there is also more security personnel on the streets. they are taking no chances. on with water cannons, semiautomatic machine guns. on saturday they had to deal with crowds like these. protesters hurling rocks and sticks at the police. the response was tear gas and rubber coated steel bullets. in the middle of all of this the indian president is there on a three-day visit and is likely to discuss the violence with the prime minister. instability here causes concerns for regional security in new delhi. the u.s. and un have voiced concerns for the deteriorating situation around the country, urging everybody to stop writing. most deaths have occurred in the north, and include women and children as well as to police officers. jamaat-e-islami s call for a strike continues into monday evening. the main opposition party, headed by a former prime minister, has called for a 24- hour strike on tuesday. the party says it is in protest against the heavy-handed tactics of the police that have killed dozens of people since thursday. 14 million 40 million kenyans will head to the polls in less than an hour time. everything is in place to hold a smooth election. there are eight candidates, but the favorite candidates are raila odinga and uhuru kenyatta. either would need to secure a 51% majority in the first round to secure the runoff. one would become only the fourth kenyan president in 50 years. the names odinga and kenyatta are engraved in the history of kenya since it s independence almost 50 years ago. once father was the first president and the other vice president. the two men fell out. odinga on his own opposition party. both men are now dead. as kenny is a first attorney firstl, kenya s attorney general, he knew them both. he hopes history does not replete repeat itself. we are all kenyans. what we want is the future of this country and our children and our children s children to have a prosperous nation. therefore these elections should not make us enemies. we are, we have one time been brothers and friends. this bitterly fought election campaign has turned these two families against each other again. uhuru kenyatta accuses raila odinga of polarizing the country. odinga says kenyatta, a man facing trials for crimes against humanity, cannot be president. tribalism has played its part. they are from different tribes. tribe has never been in power. if the base of the support is tribal and issues around if i m in this position, that is how we as a community will benefit, that will further divide the country. the two families have dominated kenyan politics and accumulated great wealth. now, one of them might be president, continuing the family dynasty. al jazeera, nairobi. with almost 100,000 police officers on duty during the election, expected to prevent a repeat of the violence that occurred in 2007. at that time many kenyans crossed the border to neighboring uganda to escape the violence. some have still not come home. malcolm webb has this report. she and her mother will never forget the day they were nearly burned alive. in the violence following kenya s election in 2007, members of their ethnic groups were attacked in their hometown. they ran for safety to this church, but an angry crowd set it on fire. more than 50 people were killed. they were killing other man. those who were outside. the lifts the fire was coming more. me, i decided to run. they were lucky to escape. now they live in a refugee settlement in neighboring uganda. at the primary school, almost half the children are kenyan. everyone from kenya, please put up your hand. they are happy to be getting an education. they learn english. they do not learn their mother tongue, swahili. most refugee families just want to go home. they formed a welfare committee. so far the kenyan government has refused to discuss their pleas for assistance to return and set up new homes in safe places. they say they cannot go back to western kenya from where they fled. where they were, their house was banned burned. his car was taken by the neighbor. it is bad to go and stay there. most of the kenyans living here used owned houses and small businesses back home. now they farm and live in huts like this. they will be watching carefully to see what happens in kenya s elections this time. if it is peaceful they will continue with their struggle to go home. if it is more violent they may well be stuck here as refugees for a lot longer. 20 more ahead in this newshour, including china s ruling communist party getting ready to formally appoint a new set of leaders. we will discuss the challenges they will be facing. resident shot is, where are you? protesters in caracas demand answers president chavez, where are you? protesters in caracas demand answers. back to mali, or another french soldier has been killed fighting in the north. since the military operation began in january the soldier was killed on the border with algeria in what the french military claimed was one of the fiercest battles. the other military fighting the most. funny six of its soldiers died in a battle that killed two senior al qaeda leaders. 20 six of its soldiers died in a battle that killed two senior al qaeda leaders. the nation that claims it carried out the task is in morning. 26 chadian soldiers died fighting in ther maghrebian north, killed. france is providing special air support, but chad is bearing the main brunt of the fighting. in this exclusive al jazeera footage, chadian soldiers patrol their province on a mission to flush out al qaeda- linked fighters. chad s defense ministry says these are the men who killed former al qaeda commanders. they totally destroy their main mountain base. chad has one of the world s true desert armies, composed largely of native saharan fighters. chad is also one of the poorest countries on earth. over a third of all children are stricken from malnutrition and the average citizen does not live past 50. most chadians not believe this war serves their interests. the majority of the people do not agree. they are very sad. this is not chad s fight. we do not know whether or not be parliament voted for it. all we know is we woke up the next day to hear them telling us they were sending 2000 troops to mali. we are not happy with this military and invention at all. the government is leading the government to move their soldiers tore the sahara and continue the fight. but until more funds became available chad will continue to find itself virtually alone on the front lines. a visibly saddened president reassured the family. he has been in power for over 20 years, propped up by france which still has three military bases in its former colony. as the conflict drags on, making good on those relations may require of chad more sacrifices. a political analyst who has been following the war in mali 0 lear i asked him if the conflict could be solved purely through military means. even though i said it was a special case, you have the two arab groups. the one which started the war in january of last year, they are an ethnic community. then you have the sahara desert, you have food insecurity. there was a coup in boko so you have a democracy problem. bamako so you have a democracy problem. he west african countries are worried. you are right it is different in africa, which is why i think that the counterterrorism strategy cannot be just military. it has to be democratic, it has to be reconciliation. it has to be development. malaysian soldiers have approached suspected filipino fighters. seven opposition gunmen were killed. three weeks ago a filipino group called the royal sulu army traveled from the philippines and took over a village. they have laid a territorial claim to the province, saying it is ancestral he there s. theirs.tral hl y so one from the ruling coalition next rain where the military is involved. explained why the military is involved. the army chief, we have mobilized our forces and our assets within that area. but by and large the incidents are isolated and confined to a very small area in the eastern mosast locations. the rest of the country and saba itself is very normakl. we will not entertain, and the prime minister and interior minister have made it very clear that any we will not entertain or bow down to any attempts to create any part of a sovereign country by anyone, including the sultanate of sulu. these people, even though they are a ragtag army, they are battle hardened and are willing to sacrifice their lives. they are serious intruders. we do not want to take any chances. the palestinian authority has said a prisoner who died in an israeli jail was killed by collaborators. he died last week after being held for two days. he was accused of throwing stones. a palestinian ministry in the occupied west bank says he was transferred to a sober palestinian collaborators are being held. benjamin net and yahoo has two extra weeks to try to form a new government. netanyahu has two extra weeks to try to form a new government. if he is not able to form a government by march 16 the new vote could be called. the israeli defense minister has been speaking at the largest jewish lobbying group in the united states. he told the annual conference that iran is the biggest threat in the middle east. he is also urging congress to maintain u.s. financial support for israel. they have been called one of the most powerful lobbying organizations in washington. the prime purpose to back whatever policies israel s government might pursue. last year s conference, as president barack obama campaigned for reelection, he faced many delegates who viewed mitt romney as the candidate prepared by preferred by the israeli prime minister. but this year s congress says obama is winning plaudits from netanyahu for reinforcing u.s. security cooperation with israel. it is exemplified by the u.s.- financed iron dome missile defense system, which intercepted hamas rockets in the fighting along the gaza strip last november. this year they are reassuring that the average $3 billion a year u.s. military aid package to israel will not be jeopardized as congress carries out across-the-board spending cuts. and other top item, legislation that officially recognizes israel as a major strategic ally. that is a designation no other country maintains with the u.s. they are pushing a bill that effectively endorses any israeli military action it deems to be in its self-defense. that may not be authorization for the u.s. to join in an israeli attack on iran, but it would be welcome by israel as a green light to proceed. the outgoing israeli defense minister told the conference that all options were on the table, the same phrase obama has used in promising to prevent iran from acquiring a nuclear weapon. without mentioning obama by name, he warned we have stated this time and again that we expect all those who say it to mean it. [applause] ladies and gentlemen, we mean it. one issue missing from the action checklist palestinian- israeli peace prospects. that is in sync with the netanyahu government s current sense of priorities. if you only have to look at the israeli election itself that was just conducted, where for all intents and purposes from my point of view, unfortunately, the israeli- palestinian conflict was not front and center they need just three weeks before obama s scheduled trip to israel and the occupied west bank. with palestinians still bitterly divided and israel bent on expanding jewish settlements in the occupied west bank, they may see little point right now in paying attention to the heart of the israeli-arab dispute. tom ackerman, al jazeera washington. another big crackdown on crime is underway in rio de janeiro. 1300 police and soldiers have rated slums near the airport and seaport. the latest in a series of raids on drug gangs that control the hillside area. rio is one of the brazilian cities that will host the world cup next year and the olympic games in 2016. hundreds of opposition protesters gathered in venezuela s capital to demand information on the health of ailing president hugo chavez. they say he is undergoing therapy for cancer. rumors are growing about his condition. [speaking in spanish] supporters of the president normally champ chance that he will not be moved. the turning it around, hundreds moved through the streets of this opposition stronghold chanting, shabbos, chavez, where are you? they accuse the government of lying about the true condition of their cancer stricken president, who has not been seen or heard in public for nearly three months now. the constitution has the naming of a medical team that should evaluate whether the president is fit to govern or not. is friday authorities have been obliged to repeatedly refute a rave wave of rumors about the condition of the president, who they say rains under treatment in this military hospital. the government insists they re being manipulated by outside powers and the conservative opposition. with each passing day even chavez supporters are asking themselves, when or if they will have their president again. officials say only that chavez is now undergoing chemotherapy in good spirits as he continues to fight for his life. he put his own health at risk. that government controlled national assembly insists chavez can take as long as he needs to recover, but opponents will not have it. national guardsmen stood firm in front of the supreme court to keep away protesters, demanding the judicial body appoint the independent medical team immediately. well venezuela waits to see what will happen to their president, he once again fractured opposition tries to show that it is not separated. still ahead this newshour, angering bulgarians tens of thousands protest. thai authorities deal with the illegal trade in animals. welcome to another look at the international forecast. i am pleased to say the weather is looking quite or across a good part of north asia. no great amounts of rain here to speak of over the next day or so. we will gradually see a temperatures start to edge up. a little more springlike. ginny appeared nine degrees celsius for tokyo. getting up to nine degrees celsius for tokyo. as we go on into tuesday, tokyo could touch 12 degrees. double figures across the korean peninsula. up to 14 celsius in beijing. looking fine and dry. dry weather stretches into central and southern china over the next couple of days. we will see a high in hong kong of 21 celsius. wind coming from a more southeasterly direct in. sunshine and showers for the philippines. the the two degrees in moneta manila. thickening clouds to the southwest of china. hanoi at 25 degrees. we could see a few showers creeping their way into the southeast of india. elsewhere it is warm, dry, and sunny. if you have just joined us, welcome. these are our top stories. at least 38 are dead and dozens injured after a bomb exploded on a mosque in the pakistan city of karachi. many are feared to be trapped under the rubble. 40 million kenyan voters will begin casting ballots in just under an hour. raila odinga and uhuru kenyatta are running neck and neck. a french soldier has been killed battling rebels in northern mali. it was in what the french claim was a heated battle. the third mass casualty attack on the minority shias of pakistan this year. we heard from a senior advisor of the asian society and former pakistani government official. they say it is a priority to fight sectarian violence. government is not reacting sharply at all. there are a variety of reasons for that. one is poor law enforcement capacity. even if the government wants to, and we know that because of long years of dictatorship, when our military dictatorships and authoritarian regimes they enforce a certain element of consensus which appears to be a consensus. beneath that, expressions are being stilted. these military groups raise their ugly head. militant groups raise their ugly head. the pakistani shias being butchered in karachi. the hazara community was being targeted for the last 70 years. i think there is a lot of things which the government of pakistan has to be responsible to. why do you keep investing in submarines when your local law enforcement lacks the capacity of forensic sciences? egypt s former president will barack will a retrial on april 13. over the killing of hundreds of protesters during the uprising that deposed him two years ago. however, in january cairo s appeal court granted him a retrial. at least 253 people have been hurt in new protests in port said. the unrest was triggered by the decision to move 39 prisoners charged in an involvement in deadly football riot last year. the uk has responded to syrian president bashar al-assad s interview with the sunday times by calling him delusional. assad says he has no plans to step down from power. almost two years since the start of the civil war in syria, president bashar al-assad remains defiant. he insists the west is conspiring to undermine his country. in an interview with the british newspaper the sunday times, he said u.s. secretary of state john kerry is wasting his time trying to force him out of power and instead suggested he can go to turkey and tell him, stop smuggling terrorists into serious. stop sending armaments. stop providing logistical support to those terrorists. he can go to libya and tell them, stop financing the terrorism. on the ground, rebel forces are pushing to grab new territory in aleppo and the outskirts of the capital. the gains made by the rebels since last summer are widely seen by the opposition as the sign of the a side assad regime s disintegration. they say they welcome a national dialogue to solve the crisis but only when assad goes. a precondition dismissed by the president. only serious people can tell the president to leave, or come and go syrian people can tell the president to leave, or come and go. he enjoys wh in support in russia and iran. the president syious s opposition ria s opposition. towns in the west in the north. it was meant to improve ties between fighters on the ground and the coalition based abroad. china will hand over its government and new leadership, something that only happens every 10 years, on tuesday. thousands will gather in beijing to confirm key appointments. newinping become china s president. more on the challenges he will be facing. the official changing of the guard starts on tuesday. nearly 3000 representatives will come from every corner of the country for the national people s congress in beijing. a yearly event that has increasing significance as the new party leadership will be installed, headed by xi jinping. it only happens every 10 years. xi has been effectively ruling since november. focusing on what he calls the chinese dream, a renaissance for modern china. some feel his first job needs to be inside the party. there is a huge challenge to the stability of the communist party. in fact, there is always an existential threat. the legitimacy is slipping. the main task is to restore the party s credibility and to bring the party more back to the people. during his confirmation last november, xi thomas to fight corruption. that accounts for one of the main reasons people feel the party has lost its legitimacy allete leak is an and vested interests. elitism and vested interests. a departure from what forms the people s republic. but corruption is not the only challenge. china is the second largest economy in the world. like the rest of the world, it is recovering from slow growth, the worst in 13 years. but it faces other problems as well. with a widening wealth gap, the communist party has been trying to move from an economy based on central planning to one driven by the market, but chinese in rural areas are feeling left out and are looking for more services from their government. something they should try to provide because the economies will be more reliant on domestic consumption. the new leadership will now attempt to steer the government back to the people and back to the party s roots. it is a huge and potentially historic undertaking, but one that xi jinping sees himself as the man for the job. al jazeera, hong kong. to beijing now to speak to david kelly, research director of china policy. we thank you for your time. it is a big change, certainly symbolically it is a big change. i wonder how much xi jinping will want to do and how quickly, given that the economy has been slowing a bit there. you would not want to do anything too drastic. it is not the ideal time to do a massive reform. but he does look more businesslike than some of his predecessors. of course, the administration before the last one, a lot of people will remember him as quite a firebrand, and we probably will not see that kind of major measure adopted now. many of those reforms have already been completed. of the remaining reforms are more difficult. what do you think the new leadership will want to do with using this carefully reputation? how will they want to portray china on the world stage? a lot of it see it as the place taking peoples jobs, that will overtake economies, those sorts of things. a balancing act. . how do you do it? they are aware that the going global policy, this was the policy for investing massively in assets internationally, particularly resource assets, sometimes buying whole companies, sometimes portfolio investment, this has tended to divide those countries. the attitude toward china has gone either anti-china were pro-china. the business lobbies of countries like australia and brazil and south africa, you name it, they are tending to split into a pro-and anti-. there was a lot of consensus in the past. i believe this perception inside china will drive a lot of change, particularly in the way they manage their state-owned enterprises, which are the big vehicles for international investment. interesting. the corruption issue, is it not surprising that a new leadership in any country would come in and say i will stem corruption or deal with that. in china, within the communist party, in the closed society there, what real chance to you see of anything happening on the corruption front? well, a very interesting analysis goes like this. corruption was good earlier. it was the way in which the old plan system kind of melted down. the glacier melt was happening. people were making private deals with the government to get this or that resource to greater efficiency and distribution of goods. this so-called value-added corruption. now now you have 20 or 30 years later the value destroying corruption. that is the sale of office. you buy your position in the government, even in the military, and sell it on to someone else and try to make a profit in the time in which you are the incumbent. this is value-destroying. they can tackle one form of corruption and perhaps leave the other as not too interesting. very interesting to get your thoughts. nicely described. david kelly, joining us from beijing. >tens of thousands of paul derian s have protested across the country against poverty and government corruption. bulgarian s have protested against poverty and government corruption. the center-right government resigned last week. a traditional national holiday became a day of protest in bulgaria as reports emerged that the man at the center of this political crisis, prime minister boyko borisov, published suffered a recurrent heart complaint. reports said he was in a hospital and would miss a presidential parade. the demonstration was sparked by a huge increase in electricity prices and growing economic suffering. we are protesting about everything. a economy is very bad. everything is going down. we do not have very good education. and healthcare. nothing. the politicians are very corrupted. the right-wing prime inister boyko borisov resigned, but no one, including the socialist s, seem ready to fill the power vacuum. the president is likely to resume the process of appointing a interim government of technocrats in the next few days. the protests here are certainly vociferous, but know one unified voice has emerged so far. many here remain optimistic that a n leadership will emerge from the street. whoever takes power after a general election, probably on may 12, could oversee a short- term administration. and overall majority is increasingly difficult to achieve as protesters and fringe parties gain ground. i have no doubt that these protests have been driven by outside forces, but i believe that is for the security forces and the police to address these concerns. what my main concern is that we actually address the issues people have legitimately raised. the european union s poorest country is struggling to reestablish a coherent economic direct and and avoid further violent protest. al jazeera, sophia spfoa/ > sofia. britain s queen elizabeth has been hospitalized. she is suffering form from what appears to be a stomach infection. she had symptoms of gastroenteritis. developments in the search for an hiv cure. experts say they are a way off, but they are encouraged by what has been described as the first functional cure of hiv in an infant. there is no certainty that a child born to an hiv-positive mother will have the condition, but they are given low-level antiretrovirals as a precaution any way and there s are replaced by by a stronger one it a positive is made. they suppress hiv levels but do not cure the illness. that is because the body has what are called viral reservoirs cells were hiv can effectively hide that cannot be killed by medication. as soon as the therapy stops they spring back to life within weeks and cause the infection to show up again. what doctors in the u.s. did was give antiretrovirals to a baby whose mother had passed on hiv. he gave those drugs within 30 hours of the child being born. they said that actually stops the dormant reservoirs from ever forming. within 29 days, the hiv level in the child s blood was undetectable. he therapy stopped in 18 months and when the next test was done at 28 months the hiv could not be found. this has been described as a functional cure because it means that enter test cannot find hiv, but altra sensitive methods may still do so. it is not a sterilizing cure, meaning the virus has gone completely. nevertheless it has excited scientists to believe that in the future it could change the way infants with hiv are treated. but in the meantime, they stress, this is just one case and preventing the transfer between the mother and the child remains the primary objective. the man who was once britain s most senior roman catholic cleric has apologized for sexual misconduct. cardinal keith o brien resigned last monday as the archbishop of saint andrews and edinburgh in scotland. he had been accused of inappropriate behavior toward priests. now, imagine as catholics in vatican city are attending mass without a pope. they did so after the resignation of benedict xvi last week. they will begin the process of choosing a new pontiff. no ordinary sunday at the vatican. usually here in st. peter s square you see thousands of chairs laid out for people to attend a papal mass. but at the moment we are in a situation which means that there is no bishop of rome. in other words, there is no pope. benedict xvi officially steps down and left for a short stay elsewhere on thursday. plenty of people are still arriving in st. peter s square, both tourists and pilgrims. i nearly everybody s mind is who exactly will be the next leader of the world s 1.2 billion roman catholics. for people like these worshipers, it is a time of transition. they are putting their faith in the conclave, where 115 electors will be choosing a new pope. i wish for a more enlightened pope. perhaps having a younger person would make sense. i would like to see a pope who looks at church in a slightly different way, a more humane way. i would like the church to get rid of everything that has burdened them over recent years. recent scandals have hit the catholic church hard. many pray the new pope will be able to bring harmony and stability. on monday the cardinals will decide when the conclave will begin. as to how long the process will take, that is anybody s guess. delegates at a special can convention in bangkok are examining ways to protect wildlife. 40 years have passed since the international trade on endangered species was convention on international trade of endangered police ease species was introduced, but poaching is more right than ever. they have a restaurant under surveillance. an informant tipped them off that suspected wildlife traffickers are meeting to make a deal. as they go to the exchange, police move in. and make the arrests. bags of rhino horns and ivory tusks are seized, but they are made out of wood. this is a training exercise run by the un. the role-playing is meant to combat an illicit trade that authorities say is becoming more sophisticated. organized crime is said to be involved. it also means that drugs are also regularly found during seizures. this is a training force we manage. we let them understand how these things are. they are often brokers. recent high-profile busts have uncovered just how lucrative wildlife poaching has become. in southeast asia, it is estimated the selling of endangered animals is a $20 billion a year business and one that is only growing, bringing the world s iconic creatures to new near extinction. wildlife authorities say most of the time this is where the investigation ends, with only the low-level mules or middlemen being caught. the investigations are simply not deep enough in scope. these exercises are aimed at getting the police to think about a more thorough investigation. like any other major criminal case, officers are reminded to collect documents, sees phones, find any evidence that could lead them to the betrayers. up until now they have remained mostly anonymous and at large. we admit that in the past we did not get the authority and tended to look more closely at other crimes. but due to foreign pressure we have since realized the importance of wildlife trafficking. here in thailand, income generated from it is second only to narcotics. for many police forces they have also the problem has been telling between animals that are illegal and those who are not. the un is helping with seminars like these. also making international rules simpler. admitting they are at the moment losing the fight, un officials say they hope strengthening law enforcement in countries that have become key transit hubs, those responsible for trafficking wildlife will no longer be able to operate as freely as they do now. al jazeera, thailand. on the way arsenal s manager says there is plenty to think about after his team s latest premier league loss. that story in a moment. welcome back. here is a wrapup of the day s sport. thank you very much. arsenal s price may have dropped a few dollars after they lost a crucial premier match. the buildup dominated by reports that middle east a middle east consortium was planning to make a bid for the london club. arsenal has since dismissed claims, but they are now five points from the qualifications for next that the next champions league after this. putnam two up. one back for arsenal in the second half, but not enough to avoid defeat. it is very frustrating. we put a lot of effort in. a great attitude. but we come out with no points. we were not deficient in the zones where it matters. i think we saw a great game of football. attacking wise, completely open. a good 30 minutes of intensity. it was the deadlock early in the game and late in the first half that was important for us. the top of the endless premier league. putnam at third. arsenal at fifth. villaester plays aston bil monday. bein have drink in their clip grip with a 1-0 win. the only goal there. an amazing comeback to stay in contention, scoring three second half goals. this moves them within a point of ac milan and what they need to make it into the champions league. final score, 3-2. roma are still in sight of a europa league spot. the lead against genoa. aching his first league start scores a goal. roma going on to win, 3-1. here is the top of the table in italy. the top three go to the champions league. th.a is up to 7 athletic s madrid spain hopes of catching up have been extinguished. they could have moved with a win at malaga, at a pretty disappointing draw. 11 points behind barcelona. a crazy game they looked in control. sociedad going up. but his second made it 3-3. that was how it finished. after losing the series, pakistan s cricketers have at last picked up a win against south africa. big winners the captain faced a challenger, but smashed 86 in this one before he had a rather unfortunate incident. his teammates scored 195. south africa was just never in contention. their lowest ever score. pakistan wins by 95. major league baseball returns later in the month. in the meantime, the world baseball classic is taking place. in japan, the hosts aiming for a third straight title. it strives for acceptance in north america but get huge ratings in asia. second straight victory there. they will next face cuba. the chicago blackhawks have extended their nhl records eason, the street get 22 games. the feed the red wings in detroit. scoring the tying goal, then the game-winner in a shootout against chicago. a 3-1 win. a skiing world champion had to begin with bodyguards ahead of a race in germany following a death threat. all eyes were on the slovenian becoming the first woman to rake the 2000 point area. that is all for now. more later. thank you for that. coming up at 6:00 a.m. here in doha. all s are about to open in presidential elections in kenya. the latest in that.
tropical cyclone pam left a trail of destruction and desperation across the south pacific islands. and now thousands of people are without homes, without clean water, and without sanitation. officials there are struggling to assess the damage especially in remote areas. in the meantime international aid is being rushed in. our senior international correspondent, ivan watson is, on the grown in vanuatu. earlier he spoke with our john vause about the conditions on that island. reporter: there s certainly thousands of people whose homes have either been destroyed or seriously damaged around the capital here port vila. i m overlooking a valley where a great majority of trees have been snapped or denuded. by the roar winds that ripped through record winds that ripped through friday nightment i m next to a church that more than 100 used as a temporary shelter since their homes were damageded friday. what i m hearing from resigns is that they residents is that they are subsistence farmers. they make a living supply almost on what they grow survive on what hay grow and rely on it to eat. some i ve talked to say their garden their meager farm have been destroyed by the storm. that means they ve lost their main source of food. that gets to the crux of the problem. vanuatu is one of the poorest countries in the pacific, and it is still reeling from this terrible storm that has not only destroyed the homes of many people we don t know how many yet, but it s also threatened the livelihoods of many, as well. and ivan, aid groups are hoping aerial survey will give a better idea of damage in the outlying islands. do you know if those flights are underway and if so what are they reporting back? reporter: small planes have been conducting survey in the outer islands. vanuatu has dozens of islands. this is one of the problems. we re trying to figure out the damage around the capital city it s still difficult to get phone calls out to some of the more remote islands. difficult to get an assessment of damage or potential loss of life on some of these smaller islands. the sgns that the disaster management center gones isgones is that the disaster management center reports that this is the worst storm that many have seen in generations. a category five cyclone. harder still to figure out what happened on more of the outlying island. it s the hardest to get to the outlying areas. you can imagine relief worker are still trying to figure out the best way to distribute aid that s being rushed in. earlier, thomas perry from care international spoke with zain asher on the phone from the capital city of port vila. listen. the best thing people can do is to support the appeals for agencies like care because clearly this is going to take an enormous effort over the coming weeks and months. i mean i was listening to ivan s report. i guess the casing is it s very true that it s so hard to get out and to get any information out from the northern and southern provinces at this point. we hope to have in the next few minutes one of the members, a couple members of our team on a flight to the salon in the south. and hopefully they will be able to give us some sense of what happened there. really at this point there is not a lot of information. and it s certainly deeply concerning because those islands down there were incredibly hard hit. yeah. communication, as you mention, is poor other than in port vila. what sort of aid is coming in right now? i came in yesterday on one of the australian air force s military flights. and flight of stocked with food water, medical supplies. that s the essentials at this point. food water, and also shelter. shelter obviously a critical need. and there are now the emergency shelters popping up around town, around town in port vila. they will soon be spreading around the country to support people who obviously have been hit incredibly hard by this. a desperate situation on the island. if you would like to help or get involveded to help the victims of cyclone pam, go to cnn.com/impact. you ll find a list of approveded agencies on the ground or organizing to help people who desperately need it. again, cnn.com/impact. woee move on to ferguson, missouri. a man in custody, charged with the shooting two of police officers during a protest in front of the plod last week. we are police department last week. we re hearing the public helped a great deal to at hen the sbhoikt had the weapon in his home. reporter: after arrest has been made in the case of the two police officers shot in front of the police department friday morning. 20-year-old jeffrey william is in custody. law enforcement saying williams says he was targeting someone else when he shot the two officers. essentially what we ve charged him with is firing shots. it s possible at this point that he was firing shots at someone other than the police. but struck the police officer. so the charge is still assault in the first degree. class-a felonies for striking the officers. reporter: while officials say williams was known to be part of the demonstrators in front of the ferguson police department some of the organizers say that s not the case. they say that he was not a known protester. and one man who went in to speak with williams while he s been in custody says that williams admitted to him that he had not spent any time demonstrating at all. stephanie elem cnn, clayton, missouri. later in this show we ll talk a law enforcement analyst who says the arrest could be a sign of healing in that community. a tragic situation to tell you about in la hor, pakistan. a set of bombings killed at least 14 at two christian churches. a hospital officials at least 78 are wounded. witnesses say a man blew himself up you outside one of the churches as security stopped him from be security guards stop him from entering. angry resigns killed two men they suspect of being involved in the attacks. pakistan s prime minister condemned the bombings. the pakistani taliban has claimed responsible. the u.s. is planning to return more than 0 artifacts smug 0 artifacts smuggled out of iraq. the operation helps in washington and comes at a time that isis is destroying centuries old antic wits in iraq. ben wedeman with the story. reporter: the city of babylon has seen empires come and empires go. built, destroyed, rebuilt, and ransacked time and time again. it dates back almost 4,500 years and remain a symbol of the glory of messopotamia. it was last rebuilt, if you can call it that by saddam hussein in the 1980s. one of his palaces looms over the ruins. the renovated ruins include bricks stamped with his name describing him as the son of the great babylonian king. this family has come to the ruins. this wasn t saddam s, he says. it belonged to our grandfathers the babylonians. not saddamment not saddam. but isis reign of terror has eclipsed saddam s end in low mania. last month, isis posted footage of the destruction, of priceless artifacts in the mosul museum. they ve reportedly bulldozed the ancient cities in northern northern iraq. the mosul museum was destroyed, why, he says addressing isis. that is the heritage of your grandfathers. why did you do that? south of baghdad, babylon is out of isis reach. for isis monuments like these are from the age of ignorance before the advent of islam and, therefore, must be destroyed. for most iraqis they re the achievements of their forefathers and a great source of national pride. this is the trickvictory sign reporter: he and parents are preparing for a campout intended to teach iraqi boys and girls about their history. we have to preserve our heritage to show how advanced babylonian civil situation was, she says. it was the pinnacle of ancient civilization. the assault on iraq s history has taken is taken personally here. when i saw what happened i was determined to preserve our antiquityies from isis, sees who fled he says who fled mosul last year when isis overran the city. iraq s very identity is tied up with its ain tent past. in a land where history is measured not in centuries but in millennia, sites like these have a deep personal resonance. back salon our soul, he says from the antiquities department. it s our heritage our history, and we ll defend it. a heritage and history now under assault from latter day barbarians. ben wedeman, cnn, babylon, iraq. three british teenagers were suspect of trying to travel to syria, but turkish authorities put the halt on their plans. coming up, what they face now. smnchlg candid remarks from the pope ahead. we ll get more perspective on his prediction about exactly how long he will lead the catholic church. a preview of how israel s election will work ahead of tuesday s critical vote. i ve just arrived in atlanta and i can t wait to start telling people how switching to geico could save them hundreds of dollars on car insurance. but first, my luggage. ahh, there it is. uh, excuse me sir? i think you ve got the wrong bag. sorry, they all look alike, you know? no worries. well, car s here, i can t save people money chatting at the baggage claim all day. geico®. fifteen minutes could save you fifteen percent or more on car insurance. nobody told us to expect it. intercourse that s painful due to menopausal changes it s not likely to go away on its own. so let s do something about it. premarin vaginal cream can help it provides estrogens to help rebuild vaginal tissue and make intercourse more comfortable. premarin vaginal cream treats vaginal changes we ll get more perspective on enopause and moderate-to-severe painful intercourse caused by these changes. don t use it if you ve had unusual bleeding breast or uterine cancer blood clots, liver problems, stroke or heart attack, are allergic to any of its ingredients or think you re pregnant. side effects may include headache pelvic pain, breast pain vaginal bleeding and vaginitis. estrogens may increase your chances of getting cancer of the uterus, strokes, blood clots or dementia so use it for the shortest time based on goals and risks. estrogen should not be used to prevent heart disease heart attack, stroke or dementia. ask your doctor about premarin vaginal cream. we ll get more perspective on welcome back to cnn newsroom. u.s. secretary of state john kerry is expected to meet with iran s foreign minister in a few hours in switzerland. the u.s. and its allies are still negotiating with iran on its nuclear weapons program. secretary kerry says he hopes they can reach an interim deal within the week. the deadline for a framework agreement is the end of the month. the u.s. state department is trying to downplay secretary kerry s comments on syria this weekend. he told cbs face the nation the u.s. will have to negotiate to remove syrian president bashar al assad from power to end the war. we are working very hard with other interested parties to see if we go reignite a diplomatic outcome. why? because everybody agrees there is no military solution. there is only a political solution. to get the assad regime to negotiate, we re going to have to make it clear to him that there is a determination by everybody to seek that political outcome and change his calculation about negotiating. that s underway right now. and i am convinced that with the efforts of our allies and others there will be increased pressure on assad. you d be willing to negotiate with him? we have to negotiate. that comment has a lot of people talking certainly. the syrian conflict is now entering its fifth year. assad s regime is blame for thousands of civilian deaths. demonstrators outside the white house sunday likened him to the nazis. the state department says u.s. policy on the removal of assad has not changed. assad s regime is accuse of dropping bombs outside the syrian capital sunday. at least 18 were killed more than 100 including some children were wounded. the london-based monitoring group for human rights says assad s warplanes drop the bombs. the group said more than 10,000 children have been killed since the uprising started in 2011. israel is getting ready for a crucial election. voters head to the polls tuesday and could cause a huge political shift in the country. prime minister benjamin netanyahu is urging thousands of supporters on sunday to get out the vote for his right wing party. he s been in power now for nine years. the live polls show netanyahu s likud party trailing been the left central zionist union. the face of that alliance is isaac herzog. he visited jerusalem s western wall sunday. he says israelis want change and that mr. netanyahu s focus on security and threat from iran are not the priorities from voters. exactly how an israeli government is formed sudden a bit of a complicated matter. a party might win the most seats in the knesset, but it doesn t mean that party will control the government coalition. orrin lieberman explains. reporter: israeli politics is all about where you sit in this room. this is the knesset. the israeli parliament the legislative branch of the government. of the 130 seats below me, the most important is at the center of the u, the prime minister s seat s the seats around that that determine who gets to sit there. here it is where voters don t pick a favorite politician instead they vote for a political party. no one party will win an outright majoriti. most successful part in the upcoming elections may win as few as a quarter of the seats. after the elections, the political parties meet with the president and tell the president this is who we want for prime minister this is what we want to work with in the upcoming government. that person has a chance to put together a coalition government a majority of the seats here through political wheeling and dealing and trading political favors for support. winning the most seats doesn t guarantee that you re the prime minister if you can t make the right deal. technically, 61 seats is enough in the knesset. most prime ministers want more than that. they want a coalition of 65 or 66 seats so they have a more secure administration. oftentimes in israeli politics it can come down to one or two of the smaller parties in the upcoming election to decide which way the election goes. because they sometimes have that influence, these smaller pears are call the kingmakers. they determine who gets to sit in the prime minister s seat and who doesn t. a powerful real estate heir has been arrested in new orleans. it is the latest in a 14-year-old more investigation and mystery. details ahead. sir, we re going to need you on the runway later. don t let a severe cold hold you back. get theraflu. .with the power of three medicines to take on your worst pain and fever, cough and nasal congestion. it breaks you free from your toughest cold and flu symptoms. theraflu. serious power. 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looked at whether durst of involved in a 1928 disappearance of his wife kathy, and the 2000 unsolved slaying of his friend and crime author susan berman. she was shot to death in herb home in beverly hills. the district attorney reopen the case last week. . the jinx website suggests authorities should give another look and connect the death to durst. if you back him in a corner if you threaten his freedom, he ll kill you. reporter: jinx producers say investigators believe durst knows what happen to his wife. the documentary explores the possibility that berman was murdered because she also knew kathy durst s fate. the jury find the defendant, robert durst, not guilty. reporter: durst is no stranger to controversy. the millionaire was charged in 2003 for the murder and dismemberment of a neighbor in galveston, texas. durst said he acted in self-defense. a jury acquitted him in that case. a new orleans extradition hearing is set for monday. durst attorneys say his client will fight the charges in los angeles as soon as possible. annie rose reporting. some candid remarks by post that may have taken some by pope francis that may have taken some by surprise. hey is he believes his papacy will be brief. that comes in an interview with a mexican television network. translator: i have the feeling that my pontiff cat will be brief. four or five years, even two or three. two have already passed. to somewhat strange sensation, i have the feeling that the lord has placed me for a short time. but it is just a feeling, and so i have the possibility open. it s been two years since pope francis success pope benedict xvi. senior citizen religious commentator father edward beck says the pope may follow benedict s lead. this is a 78-year-old man. remember when he was 21, he had a piece of his lung remove. he hasn t always been in the best health. he realizes his time is necessarily limited by his age, first of all. remember that pope benedict retired at 8 because he felt he wasn t up to the job anymore. that s a press den that s been set. pope francis precedent that s been set. pope francis said of benedict s retirement he s opened an institutional door which means, you know what maybe i ll retire too. pope francis says he is also open not open i should say, opposed to putting an age loimt the papacy limit to the papacy. rapid heat and snow melt are leading to flooding in parts of the you. we switch over to meteorologist pedram javaheri with what s happening with that. george nice seeing you. you know this winter of course has been such a long live winner for a lot of team as far as you how cold it s been and how much snow has fallen. the temperature well above average. they soared into the 70s for much of the weekend, well into the northern tier of the u.s. the highs some of the warmest since halloween across this portion of the united states. some rainfall across the southern portions of the u.s. all this together has led to some flooding concerns. about a 50-foot flood stage across the mississippi and ohio valleys as far as the rivers are concerned. want to show you video out of cincinnati. the water definitely starting to take over parts of town with the tremendous levels of water height. again, this has been an ongoing event. we know the snow has been melting rapidly, and the flooding now going down stream. in fact parts of the mississippi river have seen the waters rise on the order of a foot every single day now going on ten days. impressive sight when it comes to all of this happening rapidly. there you go. we had 3% of the united states with snowfall on the ground as of the 1st of march. the seasonal maximum in place. fast forward to the 15th of march, has dropped down to 10% snow cover. all of that, of course having to go somewhere, goes down the ohio river valley and mississippi where the water levels have ballooned. you compare the sun angle back on the 1st of winter december 21st. sun angle considerably lower. fast forward to the middle of march, it get up higher in the sky. more effective in melting the snow off. that s happening with warm temperatures that are pushing in. that has been the trend. cooler weather yet again in the forecast across the eastern half of the country while above average temperatures expected to continue. so look at this, in denver from nearly 80 drops to 59. cooling trend in oklahoma city also significant, kansas city. look at areas in and around dallas dropped from the 80s to the 60s. and indianapolis and chicago, from 70 down to the 40s over the next coming couple of days. the heat has been on across southern california. look at los angeles downtown observation at the usc campus got up to 92 degrees. video coming out of southern california because we had the 30th los angeles marathon in place on sunday. and in fact some 47 people treat for ailments because of the extreme heat there. a 61-year-old man, cardiac arrest 15 people hospitalized because of the extreme heat across southern california. historically it is placed there in mid-march because it should be around 70 degrees in this part of the world. it is the mild time of year but this is what people are dealing with extreme heat. it looks like it will be ending by tuesday. at least some better news there. a lot warmer there in the l.a. area. i m sure they are happy this it s warmer up in boston places like that where they got so much snow. they re not complaining in the northeast. yeah. thank you very much. you got it. ebola is back in the news. cnn attempts to debunk the myth that the virus is airborne. doug. you ve been staring at that for awhile, huh? listen, td ameritrade has former floor traders to help walk you through that complex trade. so you ll be confident enough to do what you want. i ll pull up their number. blammo. let s get those guys on the horn. oooo looks like it is time to upgrade your phone, douglass. for all the confidence you need. td ameritrade. you got this. i bring the gift of the name your price tool to help you find a price that fits your budget. uh-oh. the name your price tool. she s not to be trusted. kill her. flo: it will save you money! the name your price tool isn t witchcraft! and i didn t turn your daughter into a rooster. she just looks like that. burn the witch! the name your price tool a dangerously progressive idea. welcome back to our viewers in the united states and around the world. i m george howell this is cnn newsroom. the headlines this hour relief groups are rushing aid to the island of vanuatu in the south pacific. people there are just getting a real sense of the damage caused by tropical sigh cantaloupe pam. 90 cyclone pam. 90% of the homes in the capital city have been destroyed or damaged. a 20-year-old man is charged with shooting two policemen last week in ferguson, missouri. the prosecutor says the man admitted to firing his gun but claim he wasn t aiming at the officers. the shooting happened at the end of a protest against police. the officers are still recovering. on the eve of israel s parliamentary elections, isaac herzog co-leader of the left zionist union, has a slight lead in the polls. prime minister benjamin netanyahu s right wing party trails behind. and he made a last-ditch effort to secure the vote. three british teenagers facing terrorism charges are out on bail. turkish authorities stop them as they tried to enter syria. it s believed they were planning to join the group isis. their return to london suggests greater cooperation in the battle against isis. reporter: british counterterror officials learned that two 17-year-old males were traveling from northwest london planning to go to syria via turkey. so british officials called up their turkish counterparts and the two teenagers were stopped in turkey, along with another 19-year-old male who was traveling with them. that happened on friday. all three were deported back to the u.k. late sudden night. now this quick work stopping them in turkey and returning them back here to the u.k. stands in stark contrast to the three teenage british schoolgirls who traveled from east london also to turkey. then spent several days in turkey before they were able to cross undetected into syria. that happened several weeks ago. still, a lot of questions as to how and why they were able to do that. the fact that these three teenage boys have been stopped does suggest better cooperation from british and turkish officials. the big question now for the teenage boys in the u.k. and for their families is whether or not they will be charged with terror offenses even though they never made it to syria. cnn, london. to paris. it is the place where four hostages were killed in a terror attack in january. and now the koeshl supermarket is back open for business. reuters reports the store is completely refurbished. it has new staff since those who were there during the attack are still recovering. the gunman who was tied to the charlie hebdo killers he was later kill by police. france s interior minister of the store s first customer on sunday. he said the reopening shows that life is stronger than everything else. the iraqi intelligence service says it s arrested 31 members of an isis-affiliated group. an agency statement says the suspects confessed to planning and carrying out 52 terrorist attacks in baghdad in the past year. it also said large quantities of weapons, explosive belts, rigged cars and motorcycles and videos of isis operations were seized. a group of american aid workers potentially exposed to the boil vier us ebola virus in see airily own are back in the united states for monitoring. the cdc reports 11 workers there a boston-based a group may have been exposed by a colleague diagnosed with ebola. they will be monitored at facilities around the u.s. for the next 21 days. reports of ebola exposure raised questions and fears about the deadly disease and that it could possibly be airborne but it s not. our chief medical correspondent, dr. sanjay gupta, demonstrates why those fears are unwarranted. probably the question we got more than any another is ebola airborne? the answer is no, it s not. but to i want to take a couple of minutes and show you why not. i think you ll fine this interesting. a lot of viruss when they re circulating through the air, if you breathe them in part of the reason they make you sick is because they stick to your airways. imagine this is your airway and in is one of those viruses. put that in there pull it through. it s actually staying. imagine that virus now staying in your lungs. ebola, though, doesn t act that way. it s not as sticky. even if you were to breathe in an ebola vier us, it might look like this. and put it through your airway here watch what happens. goes right through. doesn t stick in your airway and that s why it s not airborne. doesn t make you sick. there s another reason ebola isn t airborne either. i top show you this. when you think about cold viruses or flu viruses, oftentimes they act like a powder. this powder sort of in the air, people can breathe it in. they can also live on surfaces for days even weeks. that s in part what makes it airborne. instead, with ebola, it s much more like this baseball. you think about a baseball you could put this in the air, as well. see what s going to happen quickly it s going to drop to the ground and it s not going to get anybody sick. dr. gulp gupt reporting there. the suspect in the ferguson police shootings apparently did not mean to shoot police officers. details on the arrest and why one analyst says it s possibly a sign of healing in the community. plus scandal involving brazil s president sends a million people into the streets to protest. we ll tell you exactly what they re demanding. oh yea, that s coming down let s get some rocks, man. health can change in a minute. so cvs health is changing healthcare. making it more accessible and affordable with walk-in medical 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of two police officers in the u.s. city of ferguson, missouri. you see him here. according to officials, jeffrey williams admitted to firing a gun in the protest against police. they say he claims he was trying to shoot at someone else not the police officers. high was charged with assault he was charged with assault. police say the public helped find him. mr. cedric alexander, the president of noble, the national organization of black law enforcement executives, and on the presidential task force for policing. sir, we always appreciate your time and insight on police matters. the first situation there in ferguson, police have arrested jeffrey williams, this 20-year-old who says he was not shooting at officers. clearly they charged him for allegedly firing a twep officers. how do they determine, you know his motive there? that will certainly be left up to the criminal justice system in the community which i m sure will include police and the district attorney s office as well. i assume at the conclusion of the investigation they ll make sense of what the motive may have been probably based on other witness sometimes and physical evidence ailless, too, which will play a significant part in that. for law enforcement, though what impact did that have? we ve seen the protests for many months. now to have two police officers who were shot, what impact did it have on the men and women been the badge? that s really significant is this that ever since they ve been hunting for this gentleman it took both the community and the police that took part in this looking for this individual, and you think about that community at large, in and around ferguson and other communities, we know that there s been strained relationship between police and community. what s significant is here that the community got out, went to work. they did not like that either. no oneness to see police hurt. the no one wants to see police hurt. the unfortunate incident allowed that community and police department and police departments in the community work together. and as you can tell from the earlier reporting that i ve seen there to the d.a. he clearly made it clear that the community play a role on this subject being brought into custody. let me ask you that. you re talking about strain relationship. after that doj report which of scathing. scathing report. cited several instances of racism there. the police chief, you know has stepped aside. from your expertise, especially as the head of noble, what does a community like that given all that it s gone through, who steps in and how do they turn thing around? you know that leadership in the community, whatever is left of that leadership in that community is going to have to make real decisions about setting new goals, new objectives that include that community in the process. any new initiatives, any new policies any new selection of personnel that will backfill positions, it becomes very important that that community itself is part of that process. it starts there, basic fundamental trust and respect for community and for police working together. right? and people want it in education, in city government. since education it s in education, in city government. it s in employment all those things. it s a community that struggles with a lot of social issues but it s a community that can overcome this if government is working with community. but from the report we saw released that was clearly not government working with communitiment and i think the report speaks for itself. but that has to be a starting point hopefully for the community as bleak as it may seem. it has to be a starting point for that community and the government in the leadership there to begin working co-he sively together. mr. said cohesively together. mr. cedric alexander. thank you. switching to vanuatu, and aid worker have their work cut out for them. the full extent of the damage is still not clear. let s turn now alice clements communications officer with unicef. she joins us now via skype over the phone i should say in vanuatu. thank you very much for taking time to join us. you and i have been talking for the last several days. we heard you going through the storm. we hear you after the storm. talk to us about the situation there on the ground now. absolutely. there s promising sign right. yesterday the military aid started to make it through to the airport which had been previously closed because of damage to the airport and closed due to incredibly high winds that were lingering after cyclone pam passed through. so it s great to at least some relief groups getting through things with critical medical supplies and emergency relief items. including some medics from the australian government. to with the number of humanitarian worker arriving was really real technical special ziegz izations for that emergency response. we need a rotation of relief goods for those needed. i was speaking to a woman yesterday and asked about the situation. she lives in a community that was primarily made from corrugated iron and tin roofing. all of these houses have been destroyed. she was nine month pregnant. she was due on the 9th of this month. a few days overdue. and she quite literally said, i had no water, no power, no food, and no shelter. the hospital is having problems operating. so in this situation, there are incredible situations for pregnant mothers and newborn babies who must have literally been born in the last week. there are so many people there, i remember you telling the story of a woman who protected a 1-year-old, four-day-old baby in the terrible storm. i will imagine tea party a desperate situation for people. how are those relief workers how are they getting around on the island? i m sure many of the roads are impassable. i know that many of the airports are shut down. how are they getting around? reporter: the road are a huge problem. again, the thing about vanuatu, there are 8 islands in this country. 65 of them are inhabit. if you picture an emergency like a hurricane katrina simultaneously hitting 65 island at the same time the question is how to prioritize. and there s no telephone communications whatsoever. the question is how you prioritize and fine out the information about who s affected. the other promising thing the last two days has been the government of vanuatu claims traveling up and the down the length of this 1,-300-kilometer area of island has been to assist the situation. what we ve heard from pilots flying plane is this is bad. this is really bad. and some communities are described as flattened. alice clements on the grown in vanuatu, the capital city of port vila. thank you very much for the last several days of talking to us as this terribly powerful storm passed through. we certainly hope you and all the people there a speedy recovery. we now move on to the country of brazil where people are taking to the streets. they are demanding an end to corruption there. and they want the impeachment of the country s president. cnn s shasta darlington has more about sunday s massive demonstrations and what protests want. reporter: close to a million people took to the streets in protests across the country in brazil on sunday to denounce corruption and demand the impeachment of president rousseff amid a massive bribery scandal at the state-run oil company and a worsening economic scenario with 2015 looking like it s going to dip into recession yet again. now despite the negative tone and the demand for impeachment, according to our cnn teams on the ground the mood was fesstively. people carrying the brazilian flag wearing national colors and singing the national anthem. license to what some said. translator: political reform. political reform. translator: i m here because i m jig dig unanimous of what s happening in our country. it s absur. the whole absurd. the whole political system is corrupt and the judicial system failed. i think dillmond is leading this. reporter: at petrobrass, it s suggested that millions were paid in bribes to executives and politicians to obtain lucrative contracts. most of the politicians being investigated belong to the workers party or the ruling coalition. although president rousseff herself has not been implicated she was chairwoman of petrobrass during the period when much of the alleged corruption took place. and impeachment is unlikely given that they would have to prove wrongdoing on the part of the president. the fact russia that she s only been re-elect three or four month ago mean that she s got a long four years ahead. lots of opposition to overcome at a time when she s still trying to approve austerity measures to troy and get the economy back on the right track for 2016. shasta darlington, cnn, new york. now it is personal british pop stargellon john is calling for a got of dull see and gabbana s material. i am totally blind. and sometimes i struggle to sleep at night, and stay awake during the day. this is called non-24. learn more by calling 844-824-2424. or visit your24info.com. at ally bank no branches equals great rates. it s a fact. kind of like mute buttons equal danger. .that sound good? not being on this phone call sounds good. it s not muted. was that you jason? it was geoffrey! it was jason. it could ve been brenda. 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(the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. elton john says he won t be wearing any dolce and gabbana clothes ever again. the pop star who has two children with his husband david furnish slammed the italian designers for their comments that they recently made about same sex parents and children conceive of ivf. the designer call those babies synthetic. he bran the duo judgmental and archaic. the designers said they never intended to judge other people s choices. but other celebrities and lgbt groups are also calling for a boycott. while others say the designer have the right to express their opinions. techies, musicians, and filmmakers are converging in the u.s. state of texas now for south by southwest. it s an interactive festival that lets all kinds of people show off their talents and creations and meet others who share the same passion. cnn has more from my hometown of austin texas. the craziest thing you ve seen? i m surprised how many people are here. reporter: we are in austin texas, for south by southwest. south by southwest is a place where tech people go where musicians and filmmaker go to push out their korea tift. to push out creativity. to put out their product. whether it s the app you ve been working night and day on or the film that you you ve been pouring your heart into. if you re a ban, you desperately want to get in front of the right people. so you could have your moment. reporter: this place is kind of like where a lot of people go before anyone cares about their company. they hope one day the incumbent will break out, go viral. they ll become the next big thing or change the world or make ton of money or if they re lucky do all that stuff. this is my friend ben, an authority on all things startups. we are about to have a new app that s like the hot thing this year. allows you to live stream with the click of a button your smartphone. we ll see if by the end of our interview who has more people watching us. that s so weird. it s like at least three what s the secret to a startup success? building great communities. i mean i wrote an entire book on this right? your book i m at 25. i know a lot of startups want to capture attention. you re the guru. what s your advice? i mean i have seven pieces of advice for it. if i had to pick one for entrepreneurs, it s the most powerful of all of the triggers is that we pay attention to people and thing that pay attention to us and provide us with validation. reporter: that s what we call startup chic. it s like networking and the boring more party networking. i ve been here like five years. and at first no one care. then some people care. then marketers cared. here at cnn, we care. now the government really cares. that s right. we ve been working hard to bring the very top talent from across the country as part of the president s presidential invitation palace. they take on complex challenges from annism t. standpoint even a business standpoint. all of these companies are hiring. we have people here from all over and we re giving them, here s a reason to stay. maybe work at one of these great startups. it s kind of funny to see how people are like swarming toward entrepreneurs and how it kind of the pinnacle of the entrepreneurial spirit. i remember south by southwest when it was just a little music festival. my how it has grown. you have been watching cnn newsroom. i m george howell. zain asher will join me in a moment. when it comes to good nutrition.i m no expert. that would be my daughter hi dad. she s a dietitian. and back when i wasn t eating right, she got me drinking boost. it s got a great taste and it helps give me the nutrition i was missing. helping me stay more like me. 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[ female announcer ] stay strong, stay active with boost. cnn is on the ground in the remote island nation of vanuatu, a country rocked by a devastating storm. this suspect is behind bars in the shooting of two police officers in federal ferguson. and in ferguson, missouri. and a medicalaire real estate u.s. air under arrest, accused of a killing that s gone unsolve for 15 years. welcome to our viewers in the united states and around the world. i m george howell. glad to be with you. i m zain asher. this is cnn newsroom. right now residents of the pacific salon nation of vanuatu island nation of vanuatu are trying to repair extensive damage to their homes. a lot of this going on in the capital city. that s right. 90% of the housing has been destroyed or damaged. schools and hospitals even churches have been wrecked. the humanitarian group
night into tuesday. a wall of water rising with frightening speed leaving thousands traveling in their vehicles racing to escape. turn around don t drown. reporter: rows of vehicles left abandoned on a houston highway. some cars almost completely sub murj merged under water. emergency crews scrambling to pull feem from the flood waters. but for some it was too late. one woman says she witnessed the discovery of a body in a flooded truck. it was a woman. and it was dead by the time we got there. thousands of people are now without power. the water, the force of the water is just moving on the power system on the grid. the flash floods rushing through thousands of homes. houston s mayor says at least 4,000 residents may have suffered significant damage. we first were on the couches, then on the table, then on the counters. reporter: one houston resident, her family narrowly escaping the flood, shows me the devastation the rapidly rising tide left behind. the water got right up to this lip on the counter. reporter: over a dozen people including children are still missing. and the death toll in both texas and oklahoma continues to rise. now, take a look behind me. take a look closely because this is braise buy you, one of the hardest hit areas. and you see a pipe that crosses from bank-to-bank. take a look closely. that is the debris that is still left behind. it gives you an idea of the water level, how much that water level rose and how much quite frankly it s receded this morning. but here s the deal, more rain is expected today. 20% chance of rain this morning. that rises to 40% this afternoon. so chris, all eyes on this of course because the ground is already saturated. and people here tell me we can t take more rain. and they ve already had more than enough that s for sure. rosa thank you very much. let s get to meteorologist jennifer gray in wimberley, texas. the stories of people with nowhere to go as the waters keep rising keep coming in. reporter: they do, chris. it s gut wrenches. 13 people still missing here in hays county we have three deaths and 11 people still missing. they recovered another body last night. they found all three people in the blanco river. of course they identified them as one adult female and two males. they haven t released the names. it has been so sad here across the area as those flood waters just rose so quickly and people had little time to escape. look behind me. this is an example. we are on a campsite here right along the blanco river just downstream of where we were all day yesterday. and you can see the destruction. trees littered all across the area. and you can see that home or cabin is just looks like it was swept away and now it s just hanging off on that embankment. we are hearing more about the people as well in those final moments. laura mccombs called her sister just moments before she was swept away. here s what she told anderson last night. she called me and said i just want you to know the ceiling has caved in and the house is floating down the water. and tell mom and dad that i love them. i love you. and pray. reporter: and, michaela we are bracing for more rain expected to get about an inch of rain between now and sunday. so folks are urged to just listen to those flood warnings seek higher ground and definitely do not get in your vehicles if you see those waters rising michaela. we should point out joe mccomb his daughter-in-law and two grandchildren that are missing is going to join us later. we ll get the latest on that search. what is it that causes this type of massive flooding in such a short amount of time? we turn to cnn chad myers meteorologist here with us to explain the science. we had a lot of humidity in the air. that humidity came from the gulf of mexico. that s the fuel these storms used. what caused houston s flooding was something called the train. one storm behind another behind another. here s the setup. a lot of gulf moisture all the way from oklahoma down into texas. that s what we had. and we have that every spring. but it s the training effect that we saw that put down these numbers. everywhere that s pink that s 10 inches of rain this month. there are some spots in oklahoma that have had 20 inches of rain. back you up to 6:00. people are getting ready to go to a basketball game or watch one in houston. it s not even raining yet. by 9:00 it starts to rain. and then these storms driving right down i-10 that s the train track, one storm after another. 11:00 it s still raining. 1:00 a.m. it is still raining. 3:00 a.m. another storm comes in makes another 2-inch rainfall. so by 3:00 in the morning from 9:00 to 3:00 some spots had picked up now 10 inches of rainfall. no one, not any city in america, can handle that kind of rain whether you re houston or denver it doesn t matter. there s going to be flooding. so the houston area back down to sugarland that s where it was the worst. and take a look at this gauge right through here at the bayou of the white oak. we went from 8 feet to two hours later that water was 36 feet deep. so you all of a sudden go 28 feet from bottom to top and now it s all the way back down but that s a flash flood. oh sure is. that s so scary. thanks for explaining it to us chad. san marcos texas is one of the hardest hit cities by those devastating floods. more than 1,200 homes there damaged. joining us by phone to give us the latest on the ground is the mayor of san marcos. mr. mayor, thanks for joining us this morning. thank you. give us a status report on san marcos what s your biggest concern at this hour? oh gosh biggest concern right now is just making sure people have the resources that they need to begin cleanup efforts and to make sure they re prepared to go ahead and start putting together their homes. putting together their lives as well. the outpouring of community support, neighbors, friends, faith-based organizations, churches businesses throughout the community have been amazing. and with that comes coordination efforts. the united way has been involved. mentioned church efforts have been involved our school districts been involved texas state university has been involved. so trying to get all that coordinated, communicated making sure you ve got people in different places throughout is being planned, coordinated, executed. and so at the same time working with the state agencies that should be arriving throughout today to begin assistance and providing relief to a lot of the responders and people that have been doing so much good work over the last few days. yeah. the pictures are breathtaking that we re looking at right now. as we mentioned your town has had 1,200 homes damaged. where are all those people? well the homes are all along the blanco river. many of them are single family homes, they re apartments they re businesses. our essential fire station is one of those. a lot of different damage throughout that blanco river corridor area. the people that inhabited those homes many of them have now located to friends, family. we still have a few folks, i believe, that may still be at our activity center. and throughout today we ll have resources coming in from americorp. i know red cross has been stationed in san marcos throughout this event as well the salvation army as well. so a lot of those folks have been able to find refuge with other people within the community. just find a good place to be able to rest to kind of get their plans together touch base with insurance agents. of course. we know you re advising people to stay off the roads. do not attempt your own rescues, leave that to the professionals. mayor, thanks so much for the status report. we ll be checking back in with you. thank you. all right. we have big overnight breaking news. a huge international scandal brewing in the sports world. not one but two corruption investigations against fifa that s soccer s worldwide governing body. a list of top officials arrested in raids in switzerland, raids on fifa officials. cnn justice reporter evan perez is here with the breaking details. when have we ever heard about something like this? this is an extraordinary scene. this is a luxury hotel in zurich where members of fifa s board were gathering for the election this friday which is basically going to crown seppblatt, instead police working with the fbi and irs came in and seven people now arrested top members of fifa s board. they include jeffrey webb who is the fifa vice president, former vice president of fifa jack warner is also among those who s now charged. 14 people in all are going to be charged today in brooklyn chris. and this is an investigation that according to the justice department spans a couple of decades. according to them fifa was being run as a criminal enterprise. so that s not something you usually hear about world soccer. according to them $150 million in bribes were being paid to these officials including a u.s. sportswear company that paid money to sponsor the brazilian soccer federation. so there s a lot here going on including a separate investigation now being done by the swiss. from a swiss ritz to brooklyn you know that s a big change. now, the irony here is as you know evan, this has been part of the mythology of fifa. people always saying it s a dirty organization nothing was done. how does this effect the u.s. interests? well there s a couple different ways. the u.s. was up for the 2022 world cup and it lost to qatar in a bidding process that is widely believed to have been corrupt. that is now being investigated by the swiss authorities. the fbi looked into it and hasn t been able to bring any charges. you ll notice one name that is not in the list of charges is sepp blatter who s the leader of fifa. he s going for his fifth term on friday. so how did investigators crack this? did they get a tip or something? they had the help of an insider, chuck blazer an american who led fifa one of the fifa organizations actually wore a wire during some of this investigation by the fbi and irs. so he helped them. he had meetings with them and recorded some of this. of course now fifa says in a press conference earlier today in zurich that they re the victim in this whole thing. i likely suspect this is going to change the elections on friday is it not? it looks like it is. but some of these people who are being arrested are supposed to be showing up to vote on friday michaela. my goodness. it s incredible. it can t not change the elections. the interesting part is that the head of the organization isn t effected by this. everybody around him is. funny how that works. evan thanks so much. check back in with you. now to the middle east iraq s sweeping offensive to retake ramadi and the anbar province from isis underway again this morning. but how close are fighters from reversing that enormous military setback? let s get right to senior international correspondent arwa damon monitoring developments live from baghdad. what are you seeing arwa? reporter: good morning, it s very slow and tough going. it seems that the iraqi government strategy is to try to cut off key logistical supply routes and recapture some of the patchwork of territory that isis does control. this operation taking place in two provinces, anbar where ramadi is located. we were at one of these front lines between those two key areas. one of these iranian-backed shia para military forces one scathing of the united states saying iran was their only true ally. we did in fact see iranian advisers on the ground although we were not allowed to speak or film them. around ramadi the iraqi government massing forces that include both the army and the military as well as these iranian-backed paramilitary units and sunni tribal fighters. isis is demonstrating its ability to strike back. just a short while ago three suicide bombers targeted iraqi army combat outposts also located in anbar province. and, michaela they did kill at least 30 according to initial reports. shows you how quickly things change there on the ground. thank you for the update arwa we appreciate that. now to other news the fbi and los angeles police bomb squad giving the all-clear after a bomb threat was called in on a flight from taiwan to l.a. nothing dangerous was found aboard e.v.a. air flight 12 after bags were rescreened and bomb sniffing dogs swept the plane at l.a.x. the search is now on for the person or group making the threat. it s unclear if that incident is related to flight threats on memorial day. cleveland being forced to shake up its police department in what officials said was a pattern of civil rights violations. there will be a host of changes including court supervised monitoring of the police. every time an officer even remufs their weapon from the holster it needs to be documented. the justice department review found cleveland officers used stun guns inappropriately, punched and kick at people and shot at people who posed no threat. a federal appeals court siding with texas and against president obama on immigration. the court denying a request from the justice department lawyers to allow the president s controversial executive actions to go into effect. the decision is a victory for texas and 25 other states challenging the administration s actions. quite a blow to the president. oh yeah. so we now know that iraq s forces are on the attack. they are confident they ll retake ramadi from isis. are they too confident? and is their will to fight an issue or not? we re going to get you answers once and for all. i can t find my discover card! wait, i can freeze my account. 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[touch tone] freeze it, only from discover. get it at discover.com. as i speak, iraqi military and shiite militiamen are fighting to reclaim territory, particularly the city of ramadi. now, that fell to isis just last week when iraqi forces appeared to just walk off the battlefield. there s been a lot of fallout from that. so let s look at what s going on right now and what it means for what happens next. retired lieutenant general and cnn military analyst served as commanding general of the u.s. army europe and the seventh army. thank you very much for joining us general. let s deal with the immediacy of what s going on right now. you ve said many times before it is not if but when the forces take back ramadi. what do you think is going on on the ground right now? how will they accomplish it? you ve got a couple things going on chris. the iraqi security forces and coalition continue to work throughout the country especially the northern areas. you ve got fights going on along the hamarin mountains in tikrit that s become a secondary effort as they push out of tikrit to regain baiji. and all reports i m seeing right now saying they have a large percentage of the town of baiji under iraqi security control right now. but the main effort and that s a military term the main effort is in ramadi. the government of iraq has pushed everything they can possible con cluj together not only to retake the main city of ramadi but the small towns around it. baiji is important because of the refineries there and an optic value. this all goes on under this cloud of the will to fight. what is your best intelligence on whether or not that is a fair basis for criticism? well i ll give you my personal experiences from iraq chris. the iraqi soldiers are very good. they are very courageous when led well. and when they are led well they will do the things they re asked to do. unfortunately what we ve seen recently is a continued problem with leadership throughout the battle space, particularly in the strategic environment. what i m talking about there is directly baghdad. are they pushing iraqi security forces the manned and trained and equipped forces that are supposed to be doing these things? or are they consolidating a bunch of different organizations in a very uncoordinated manner to takeover ground? that s what they re doing right now. but it s truthfully the only thing they can do. they don t have the forces to take back the ground so they re relying a lot on the shia militias and the sons of the various tribes specifically in anbar the sunni tribes. so you re saying it s not so much about the heart of the men on the field, it s about the heads of the people telling them what to do. yeah. that s exactly right. and it s tough circumstances out there. you know anyone that says the iraqi forces threw down their weapons and ran away from ramadi really don t know what they re talking about. it s been a tough fight out there for the last 12 to 18 months. the fight with isis coming in torato to ramadi i think we ll see reports isis used a lot of different kinds of tactics, more suicide bombs, sniepers. they got off social media for a few days before the attack so the iraqi intelligence which monitors that were not seeing what was going on. and isis kind of was judging their enemy. so in fact in the weeks leading up to the main assault by isis into ramadi you re talking about isis adapting to their foes. what s got to happen now is the iraqi security forces have to adapt back. that s the key to warfare. if you can adapt faster than your enemy to changing conditions. general, thank you very much as always. we ll be following this one very closely. yes, we certainly will. as this story we re following oklahoma and texas swamped. raging flood waters causing epic destruction. is the worst finally over, or is more rain on the way? 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[doorbell rings] what s this? swiffer sweeper. i came in under the assumption that it was clean. i ve been living in a fool s paradise. tragic aftermath this morning in texas and oklahoma. powerful storms leaving at least 18 people dead and communities in both states left to pick up the pieces. houston was especially hard hit with five killed two missing and thousands of homes with serious damage. more than a dozen still missing in texas with another line of storms approaching. let s get to cnn s meteorologist chad myers with more. what are you seeing chad? alisyn what i m seeing with this next line of storms is it may move across in a horizontal fashion. as it moves across this way it keeps moving making 1-inch to 2-inch rainfalls. not the 8 to 10 inches we saw over houston, not the training type rainfall that we had. so yes, rain all the way from new york all the way back down to texas. but the biggest bullseye for the next seven days is over oklahoma. it s two to four inches you can take that as long as it s slow. slow rain showers moving over the area finally passing on by. it s going to be hot across the northeast. d.c. 90 degrees or above about every single day for the rest of this week. and the heat is on across the southeast as well. it will be the beginning of summer is what i m predicting right now. all right, chad thanks so much for that. we appreciate it. breaking overnight, an international soccer scandal rocks the world. top soccer officials arrested in switzerland including the vice president of fifa the sports governing body. two corruption investigations are now unfolding. fifa s president not among those charged, however he is being investigated. well another american accused of trying to join isis. 20-year-old asher abid con faces a judge in texas today charged with providing material support to the terrorists. according to a criminal complaint he and a friend made it to turkey on their way to syria to join isis. but chan s family lured him back to texas with a madeup story about the health of his mother. his friend made it all the way to syria. 100,000 of us taxpayers had our information stolen from the irs. the hackers exploited the irs online get transcript feature where people get old tax returns and used the data to steal identities and claim fraudulent returns. this isn t a new thing, this is just the latest scheme to target tax returns. the irs paid almost $6 billion in phony returns in just 2013. you need to see this story everyone. look at your screen. he s about 6 6 with a six-pack to boot. check out this buff kangaroo. he was spotted hopping around a suburb of brisbane australia, shirtless naturally. they re used to seeing much smaller kangaroos in brisbane. the sight of this big boy is intimidating his new neighbors, particularly the men. this reminded us of someone that we know. and we ask you this morning [ laughter ] who is mas macho. the chris cuomo of the marsupial sect. i don t think the males have pouchs. that would be my guess. but the pecks are impressive. you don t believe in arms though. this guy clearly does. i do not lift biceps. i have had a tussle with his smaller cousin the wallaby. and i got a beatdown. they are an angry large-footed animal. what do you think of his form? he s obviously bottom heavy. he s got the asian pyramid of strength. have you seen those things balance on their tale? they are no joke. he s buff. i give it to him. but i m not afraid. don t kid yourself. the cleveland cavaliers are heading to the nba finals for just the second time in history. andy scholls has more in today s bleacher report. your boy getting it done. he made that decision to go back home to cleveland last off season this is what cavs fans were hoping for. cleveland going for the sweep of the hawks last night in the eastern conference finals. they controlled this one right from the tip. lebron here off the steal gets it back he goes in for the tomahawk slam. look at where he jumped from. just incredible. lebron was showing off the complete repertoire in this one here. the spin move. cavs would cruise to a 118-88 win. lebron the first player since the 1960s to make it to five straight nba finals. after the game he celebrated on the court by taking a pretty awesome selfie with his wife and two sons. the stanley cup playoffs rangers in a must-win situation in lightning game six. bre bresard had a hat trick winning 7-3 they now force a winner take all game seven friday night in new york. san francisco 49ers quarterback colin kaepernick likes to use the hash tag seven storms coming to warn people of his improved skills. apparently yesterday for some reason he decided to use it while referencing the terrible flooding that s happening in houston. he posted this pic with the caption, i warned you the hash tag seven storms coming # houston. he quickly deleted that picture and apologized tweeting i m sorry about my insensitive post earlier today. i didn t fully understand how many people are struggling in houston right now and i feel horrible. just another example of athletes on social media. right before you post it you need to count to ten and really think about what you re about to say. a wise man once told us all, take a deep breath and think about it. before you post it. that s the trick. that s the key. yeah yeah. stick with us kid. all right, andy. so cleveland police are agreeing to change the way they do business and the way they operate after the justice department found a pattern of abuse and excessive force. but can anything help them regain the trust of their community? 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joining us this morning cedric alexander, cnn law enforcement analyst and president of the national organization of black law enforcement executives, also a member of president obama s task force on 21st century policing. just the man to ask about all this. good to see you, cedric. good to see you, michaela. obviously it s a 105-page consent decree we know consent decrees are being used in new orleans, seattle, l.a. got out from underneath one recently. first of all, you think this is a good thing to happen for cleveland? it is a great thing to happen for cleveland in light of their past history because we have to remember this is the second consent decree that they re going into over the last ten years or so. however, i think it s important to note too in light of everything that s going on in the country cleveland has an opportunity here to show itself and its community that through this 105-page document that has been given to them they have an opportunity to really make some real significant changes in that community. not just with the police department in terms of what s being asked. right. but building that relationship with their community. that s such a big part of it. they actually there s a nod to that in some of the guidelines here. and i want to pull up some information for you to follow along at home. these new guidelines include new guidelines in training and lawful use of force, renewed focus on community policing revamped accountability procedure, an emphasis on avoiding racial stereotyping. now, it s interesting when you look at some of the guidelines in terms of use of force, cedric they re not allowed to strike suspects with a gun using it like a baton. no use of retaliatory force fighting with the suspect after a foot chase. and even adjusting the foot chase protocol among some of the tactics that are going to be looked at very closely. how is that going to change the job there in cleveland? well those should not be common practices whatsoever. police officers are not trained to hit with their weapons. and certainly are not trained to harm people once the foot chase have ended merely because you re angry upset. taking all of that into account certainly there s going to be times when you re going to have truly extenuating circumstances where you may be fighting for your life. but that is quite separate and very very different from what the justice department s asking for. and i think what they re saying and i m very sure what they re saying is that here is how we re going to conduct ourselves. and here s how you will conduct yourself cleveland, as it relates to the new policys that are being set for us. and we re asking you to carry out. they all are very doable. they are very doable. so here s the question then if this is the second consent decree cleveland s been under in the last ten years, why weren t they doable the first time? what s your assessment of that? what fell apart? i don t know what the first consent decree looked like ten years ago, but i can say this consent decree and particularly involving people like miss gupta and others. from the justice department. from the justice department who are very sincere about what they re doing and efforts that they re making. here again cleveland has an opportunity to do something very different today. and you have new leadership in that community both with the mayor and with chief williams as well too. so hopefully that leadership in that community along with community leadership will take a very good look at that consent decree adhere to it follow it. and they re going to make significant improvements. and it s not going to happen overnight. no. of course. but of course i think the important piece is that they have a road map here that they can use to move them forward. that s a very good point. having a road map to follow. protocol and procedure are vital. we understand that. yet the ideology the culture, the mindset of a couple of bad apples within a department how do you change that? that s the problem when there is a culture. how do you change culture? it starts at the top. it starts with leadership in every aspect. it s going to start with chief williams and run all the way down to the last person hired in that department. coachers we know are difficult to change whether they re cultures corporate cultures doesn t matter what it is. but when you have a roadmap, when you have a defined guideline in which you can utilize to move your agency forward, that gives you something that most people don t have. and what cleveland have here is a roadmap to help move them forward. all they got to do is follow the yellow brick road and they ll go exactly where they need to go to find themselves in a much better position than what they are now. one of the things i found interesting in this document they would agree to essentially have officers document every time they even unholster a gun. and in some areas where there s more violent action that might happen a lot more frequently. are you concerned that that s going to make officers second guess whether they need to draw their weapon? do you think it s going to make them concerned about, you know tripling the amount of paperwork they re going to have to do at the end of the shift? we hear from officers all the time about the amount of paperwork they have to face at the end of the shift. are there any concerns in there or do you think they re all sort of excuses? well i think every time you unholster your weapon is pretty extreme. but i think the point that is trying to be made here is accountability. making sure whatever officers do they re held accountable for. yes, if you work in certain areas, in many cities across america you may find yourself unholstering your weapon more often than not. but, you know common sense has to be used. but here s the key, michaela in all of this is that you got to have good supervisors. you got to have good sergeants, good lieutenants out there supervising their men and women making sure they re doing the things they need to be doing and holding them accountable. i don t want any officer out there to second guess themselves. and right now today in light of everything that s going on you will hear that. a lot of officers are second guessing themselves. what i want to say to all of them do what you were trained to do. and what i would say to supervisors out there as well too, pay attention to your people. make sure you understand where they are, how they re feeling, what s bothering them as well too. yep. because i don t want them to take any arrests where they get themselves or somebody else hurt. nobody s asking them to do and we re not going to ask them to do that because they play a very important and essential role in keeping public safety keeping all of us safe in our communities. absolutely. cedric alexander, we always appreciate when you can join us. thank you for having me. absolute pleasure. what do you think? give us a tweet. you can also post your comments on facebook.com/newday. alisyn to you. the republican race for president about to get more crowded. two more candidates getting in. our political panel here next. let s take a look at your credit. i know i have a 786 fico score, thanks to experian.com. so what else are you going to throw in? leather seats? and this. get your credit swagger on. become a member of experian credit tracker and find out your fico score powered by experian. i want a great shape. who doesn t? so i work out. i m good. i juice. and then there s that other thing. this. i can do easily. new benefiber healthy shape. just a couple of spoonfuls every day means fewer cravings. plus, it s all natural, clear, taste-free and dissolves completely. it s clinically proven to keep me fuller longer and helps keep me healthy inside and out. new benefiber healthy shape. this, i can do. i am proud to announce my candidacy for president of the united states of america. that was vermont senator and now democratic presidential candidate bernie sanders. that was yesterday. today former pennsylvania senator rick santorum will become the seventh republican candidate. tomorrow former new york governor george pataki will follow suit. and saturday former maryland governor martin o malley will join the democratic side chris. so why are all these people getting involved with this race? what s going on here? let s bring in cnn political analyst and editor and chief at the daily beast mr. john avlon and margaret hoover. very good to have both of you here with us. always. let s talk about the dynamic. the last time the republicans had a big field, they re approaching that number now, but it s about motivations to get in. when you see bernie sanders getting in he represents the left part of the traditional part of the democrat party. on the right you have people getting in. what do you think is happening in this dynamic? are people getting in because they think they can win, is it about principle or setting themselves up going forward? i think there s a range of reasons but it s definitely not all about winning this point. we re everybody in the pool stage at the presidential campaign and emotions can range from bernie sanders you say he s pure of heart that s why he s doing it. not to launch bernie pizza sauce afterwards. i don t think he s going for a contributorship necessarily or so increase his speech fees. but for a lot of people who run honestly it is a business decision. they want to sell a book. they want to increase their speaking fees. that may sound craven because it is. margaret let s talk about rick santorum today. first of all, what does he bring that s different to the table? well you know there s an old joke that every former governor or former senator looks in the mirror and sees a future president. and that s sort of what you re getting with george pataki and rick santorum. rick santorum has run a couple of times. he brings competition essentially to the right-leaning caucus goer for candidates for iowa south carolina and southern state primary. he provides some kind of contrast or alternative. he s going up against huckabee going up against potentially bobby jindal. why? what s in it for him? for rick? do you think he has a realistic chance of being candidate? he did well last time. he did well. mike huckabee did well the time before that. all of them see themselves as the viable person to represent the christian conservative evangelical base of the republican establishment, the republican party. they are going to because they truly believe what they are saying. and they believe they are representing a part of the country that they think they can espouse their values best. more power to them. that s what this country should be about believe what they say and codify those into the party. shows how different this race is on the republican side. traditionally the candidate that basically came in second in the republican primaries has been teed up to be the conventional wisdom front runner the next time around. not the case with rick santorum. he s having a hard time hitting basis polling thresholds. why is that? i think it is part because he s a play to the base candidate. that he s someone who is all about the evangelical connections rather than presenting a credible general election candidate. and i think it s about the depth of the anybody but romney feeling last time around inside the republican party. but so far, i mean he has not been able to gain any traction in the interim period between these two races. how about what we re going to see on saturday martin o malley? will he move the needle at all? finally you re going to have a real race on the democratic side. at least there will actually be a contender on the democratic side. that s important. hillary needs an actual challenger besides bernie sanders. you think he s an actual challenger and why? why isn t he? he s going to take her on on some of the issues he s going to provide an alternative. the democratic field needs competition. we ve got plenty on the republican side. frankly most people on the republican side are getting in because they believe even if they re not going to be the vice president like george pataki he s bringing something to the debate. we haven t had on the republican side we ve been republicans have been e ratradicated in the northeast. he represented a democratic state for 12 years. remember when we weren t a total obama doesn t think global warming is funny science? that s what he s talking about. maybe there is this new hybrid of republican that can compete in blue states and maybe he can represent that on the debate stage. why are people brushing him off? we were very impressed by the governor when he was on here. we felt he d given some of the straightest answers to most of the questions. he took positions. we ve had so far. and people are like he can t raise the money. this is what s interesting about george pataki three-term governor of the state of new york played a role in 9/11 it s really shocking he hasn t been taken more seriously as a national leader. at some point that s about people s gut check about him. but in terms of adding value to a national debate and if he s got very little to lose right now so he might as well swing hard and speak honestly. that might help him gain traction. he s the kind of candidate that should be getting traction. regarding o malley look, the democratic field is uniquely behind hillary right now, but there are candidates playing a protest vote role to move the party left then there s the situation in which the anybody but glass if there s a real crisis of a candidacy someone s going to need to fell that role. martin o malley is a former mayor, former governor he is a long long shot but if you squint you can kind of see him being vice president. and i think he will play a role in this race. what ideology does governor o malley represent that hillary does not? i don t think he plays that role in this race. bernie sanders is decideliedlydly trying to codify this on the left. i think o malley is trying to be this alternative to hillary in case something crumblings. can we talk about marco rubio? he made some controversial comments yesterday about same-sex marriage. let s listen to those. today wove reached a point in our society where if you do not support same-sex marriage you are labeled a homophobe and hater. what s the next step after they go after individuals? the next step is to argue the teachings of the mainstream is hate speech. that s a real and present danger. this is the problem with rubio playing the generational change card is that he s really out of step with millennial and gen-x ers. he did robo calls but in 2012 the last presidential cycle, but playing the victim card to that degree so say all christians are going to be labeled as haters. it does seem like a scare tactic. there s no basis to believe that could happen. what marco rubio is very good at in almost every other topic is bringing people together talking about aspirational unifying themes. it will be great to see him do this in his lbgt rhetoric as well. here s what you need to know though in terms of christianity and gay marriage there s not a single state that has passed gay marriage are churches haven t been entirely protected, where synagogues haven t been protected. no religion is forced to marry anybody they don t believe with. in utah one of the most religious states in the country they passed comprehensive nondiscrimination with the mormon church supporting it. you can be for protecting religious freedom and lbgt freedom. if marco rubio is saying that don t you think it s a concern for your party in the main? he s not seen as an extremist. there s a lot more of this chatter coming out of your side of the aisle. our challenge actually is demonstrating that republican primary voters believe in the golden rule believe there are sincerely held beliefs on both side of the issue and we can talk respectfully about this very sensitive issue. you made it about religion and not law as a representative of the party. that s a misperception, chris. i think there s a part of the primary base that feels threatened by same-sex marriage. because of what senator rubio and others are telling them. i think he s reflecting that fear rather than understanding that actually religiousty and protecting religious freedom can exist in the same space. you heard it here. thanks so much guys. that s a big story this morning. but there s a lot of news. we have the floods we have what s going on with fifa. let s get right to it. in the southwest we had 18 deaths 13 people are still missing. i can imagine probably houses just breaking apart. motorists left about 1,000 cars stranded on the city roadways. not one but two corruption investigations against fifa. 14 people charged all among fifa leadership and days now before leadership election. [ gunfire ] we believe isil will eventually be defeated in ramadi and elsewhere in iraq. yes, we do. iraqi forces have launched a massive drive to push isis out of the city. iraqi troops are brave when well-led. a chance to see new york city like never before. new day takes you live to the observatory from the top of the freedom tower. this is new day with chris cuomo, alisyn camerota and michaela pereira. good morning everyone. welcome back to your new day. devastated parts of texas and oklahoma picking up the pieces after deadly floods and bracing for more dangerous weather today. death toll now stands at 18 at least. and a flash flood watch is in effect for the next six hours in several counties including houston. be clear the urgency here is that this is not over. this new round of storms is going to dump onto already saturated earth especially in texas. they got 13 people there still missing. the authorities are worried about dealing with what comes next. so we have complete coverage this morning beginning with rosa flores live in houston. that s one of the hardest hit areas. rosa. reporter: chris, good morning. you know the water has receded here in some areas of houston, but the worry is still high. a lot of folks waking up to extensive water damage inside their homes. and here s how one resident put it. the water rose so quickly she had to jump on her kitchen counter to stay dry and then think of ways to jump to her roof to stay safe. the catastrophic aftermath of record breaking deadly flood waters in houston, texas, revealed this morning. more than 11 inches of rain fell in a matter of hours monday night into tuesday. a wall of water rising with frightening speed leaving thousands traveling in their vehicles racing to escape. turn around don t drown. reporter: rows of vehicle left abandoned on a houston highway. some cars almost completely submerged under water. emergency crews scrambling to pull people from the flood waters. but for some it was too late. one woman says she witnessed the discovery of a body in a flooded truck. it was a woman and it was dead by the time we got there. reporter: thousands of people are now without power. the flash floods rushing through thousands of homes. houston s mayor says at least 4,000 residents may have suffered significant damage. we first were on the couches, then on the table, then on the counters. reporter: one houston resident her family narrowly escaping the flood, shows me the devastation the rapidly rising tide left behind. the water got right up to this lip on the counter. reporter: over a dozen people including children are still missing. and the death toll in both texas and oklahoma continues to rise. and here s some more bad news. i ve been monitoring the number of people without power here in the houston area. a few hours ago it was 8,000. right now it s up to 14,000. and, chris, like you mentioned the ground here is saturated and we re expecting more rain. all right, rosa we ll stay on that. thank you very much for your reporting this morning. houston was not the only area hard hilt. hays county is also under water especially the town of wimberley. that s where meteorologist jennifer gray is this morning. what s the situation? reporter: yeah chris. this is one of the hardest hit areas. of course this is where it all began, the flash flooding here. it all flowed downstream and then the rain just continued as it pushed toward the houston area. as of right now the numbers 18 deaths 13 missing. that s across the southwest. here in hays county alone we have three deaths 11 still missing. of course they recovered a body late last night. they have recovered one female and two males, all three from the blanco river. we re standing just on its edge. it s a haunting scene here because you can t see the river yet. the sun isn t up but you can hear it raging in the background. and then of course you can see some of these cabins that are just all piled on top of each other. there s actually three pushed in this direction. you can see debris just littered all over the roads. and then about ten yards ahead of me you can t see that yet we ll show you when the sun comes up there are just three empty slabs. it just gives you an idea of what went on that day. the river has gone down quite a bit, but it rose so quickly. it rose to over 44 feet just this weekend. and so the fear in people was just remarkable. we ve also talked to people around town. we talked to a college student last night who said he s not going to work today. he s coming in he s going to help clean up. a lot of volunteers are going to be help cleaning up. the trees, debris that s all along the river banks. and school is closed again today. searchers will be out again looking for those 11 people still missing in hays county michaela. such a task at hand the recovery of those people and then of course trying to get back to business as usual. all right, jennifer we ll check back with you. breaking overnight, an international scandal rocks soccer s governing body. top fifa officials arrested in raids in switzerland including its vice president. twin investigations are now unfolding, one in the u.s. the other in switzerland. cnn justice reporter here with the breaking details. wow, this is quite a raid. that s true. this is an amazing night in zurich where you had seven fifa officials being arrested as they were getting ready for a vote for who st going to lead fifa which is widely expected to be sepp blatter, he was going to win another term. what we have is 14 people indicted by the justice department. we expect charges are going to be announced this morning here in brooklyn michaela. according to the justice department $150 million in bribes were being solicited by these officials over two decades. basically they re calling this a criminal enterprise that has been going on. and if you remember five years ago the united states lost out in the bid for the 2022 world cup to qatar. that is what got people thinking about how rigged the process is how corrupt this organization is. and now we see the result of this investigation by the fbi and the irs. we have jeffrey webb who s the current fifa vice president among those that has been arrested and charged. the former vice president jack warner is also charged. and we have officials from venezuela, brazil uruguay, costa rica all now under arrest. and we expect more arrests happening around the world now. you have two interesting dynamics. one, the head guy isn t going down. but those around him are. and you have the fbi is involved which obviously raises the question of the u.s. connections here. they were up for the bid that they lost to qatar. what is the tie-in here? well that is very much what got this all started is that people saw the bidding process and knew it s widely believed that it was rigged. interestingly enough they didn t bring charges to that. the swiss are now investigating that bidding process, chris. but some of the bribery happened here in this country according to the indictment that s been filed in brooklyn. at least one u.s. sportswear company paid bribes for sponsorship of the brazilian soccer federation again that s part of this investigation. so the u.s. believes this is part of their jurisdiction to police soccer. tell us about the guy who investigators convinced to wear a wire. his name is chuck blazer. he s an american who was a former top executive for fifa. and he wore a wire during some of these parts of this investigation. he went to meetings in zurich and london and wore a wire so that the fbi says they have recordings of some of these meetings with officials. some of them are smart enough not to show up for some of these meetings. but drill down more on the why now. because we ve been talking about this. there have been allegations of bribery and corruption for years within fifa. is it only now because the u.s. lost out its bid that people took it seriously? or was it loretta lynch pushing for this? what was it? well yeah. i mean loretta lynch oversaw this investigation. she s now the u.s. attorney general. but she was running this case when she was in brooklyn just until a few months ago. and so she definitely was pushing for this. this is again, as you said this has been an organization that s been rife with corruption. sepp blatter is going to win re-election on friday because he s believed to have already bought votes from federations all over the world. so in that case why isn t he going down with the other officials? why is the president somehow dodging this bullet? i m told the investigation is continuing. the swiss are now investigating him for this bidding process in 2022 and the 2018 russia world cup. and the fbi says that they re not done yet. ironically the biggest threat to him now are the guys who are getting taken down. sure. what they do to cut deals will be threatening. not to unfairly paid him with any allegations, but that s always the concern is that the first round of arrests leads to the second round. what about some of these companies? you talked about some of these companies involved in sponsorship. american companies sponsoring for example the brazilian soccer team. there s going to be a trickledown effect that s going to reach a lot of people in a lot of places. that s what s interesting is that the companies there s one company that s being charged right here. it s called traffic sports usa. they put on tournaments around the region in latin america. but the big names, we know all the big names that are tied with soccer around the world, those are not named in this indictment. it appears that the government knows that they paid some bribes but they re not charged with anything right now. so who got rich here? all of those second tier officials? well this is the thing that makes fifa work. is that they dole out the money around the world according to the investigation here by the fbi. they send money to make sure people are happy all over the world. and they buy elections. and so this is how this works. $150 million in bribes over two decades. i mean they re charging these people with racketeering. that s like mob like what they re talking about. when you think about it too in so many of these countries especially south america where there s such abject poverty, right, and it s the sport of the masses. it s going to leave such a bad taste in people s mouths when they hear about this. some of my earliest memories are kicking a soccer ball in the streets of belize. for me and people who grew up watching the world cup, this strikes right at home. this is a big deal. except at the same time because it s been such a part of the culture they felt fifa was dirty, maybe now there will be vindication. during the world cup they sent me to cover that and all people would talk about is every time you d say fifa. yeah roll their eyes. it s a corrupt organization. but we ve never seen anything like this. exactly. this is a first. and again this investigation s been going on for years. so this is not something they just started yesterday. all right, evan thanks for the breaking news. another big headline this morning, isis is fighting back and fighting dirty. 30 iraqi soldiers killed by isis suicide bombers at a military outpost in anbar province. this as iraqi forces make a must-win push for the city of ramadi. we have senior international correspondent arwa damon monitoring developments from baghdad. arwa. reporter: good morning, chris. that attack happening between the city of fallujah that is fully under isis control and the town of gudma that has been contested for quite some time now. isis demonstrating its capabilities to strike back employing those three suicide bombers. in and around ramadi the iraqi government forces the conventional units that is the army and police along with the iranian-backed predominantly shia paramilitary forces as well as the sunni tribes do have according to state television the city encircled. we ve also been hearing reports that to the south of ramadi this force has managed to recapture anbar university. it was hit in a number of air strikes last week we were told by a number of sources in the area. and now it is with this government-backed force at this stage. but isis holding the neighborhood and other neighborhoods in ramadi still quite firmly within its grips. it seems at this stage that the iraqi government strategy is mostly to try to cut off those key logistical resupply routes to prevent isis fighters from being able to ferry around their troops and their weapons with the ease that they used to employ before. but this is still a very fluid battlefield, alisyn with multiple multiple front lines across numerous provinces. okay. arwa thanks for that important update. well afghan security forces killing four taliban gunmen after they tried to storm a hotel in a diplomatic corridor of kabul. officials say attackers were killed in an intense hours long gun and grenade battle. they also say no civilians or afghan security force members were killed. that hotel is owned by the son of afghanistan s former president and a destination for many foreigners. israeli warplanes responding to a rocket attack with air strikes in gaza hitting four locations described as terror infrastructure targets. the israeli military calling the attacks a message for hamas. early tuesday sirens sounded in southern israel when a rocket fired from gaza landed 20 miles inside the israeli border. no one was injured. the city of cleveland will force its police to change. the new rules of professional conduct come as part of an agreement with the justice department which found cleveland police officers engaging in a pattern of excessive force and civil rights violations. however, there s concern that any sense of progress could be erased by the verdict in the police shooting of 12-year-old tamir rice. now, later this hour we re going to speak with the attorney for the rice family, his name is benjamin crump. he was involved with the mike brown investigation as well as trayvon martin. okay. we look forward to that. meanwhile, president obama facing problems in the middle east on multiple fronts as you know. is his approach to solving them too extreme? our next guest thinks that maybe he should not try to fix them at all. we ll explain. we also have a sneak peek at the spectacular one world observatory before it even opens to the public. we re going to take you there live 102 stories up at 1 world trade center ahead. it is spectacular even in the clouds. listen up. i m reworking the menu. veggies you re cool. mayo, corn dogs. you are so out of here! ahh. the complete balanced nutrition of great tasting ensure. with nine grams of protein. and 26 vitamins and minerals. and now with. .twice as much vitamin d .which up to 90% of people don t get enough of. ohhhhhhh. the sunshine vitamin! 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(music) stop less, go more. the passat tdi clean diesel with up to 814 hwy miles per tank. hurry in, and you can get 0% apr for 72 months on 2015 passat tdi models plus a total of $1500 in available bonuses. virgin islands nice so nice so nice, so nice book five nights to get one free. and $500 toward activities shopping and dining. that s virgin islands nice. so nice, so nice we believe that isil eventually will be defeated in ramadi and elsewhere in iraq. yes, we do. that was marie harf at the state department saying the u.s. can defeat and destroy isis. but our next guest has a different suggestion for the problems in the middle east and iraq. stop trying to fix them. darren miller distinguished scholar at the woodrow wilson international center. he s advised several secretaries of state on the israeli arab peace process. great to have you in studio with us. pleasure to be here. you say stop fixing the problem, what does that mean? we re stuck in a region we can t fix, we can t leave, we have interests, allies we have enemies. we have to fashion a policy. the reality is we re never going to solve comprehensively any of the four or five core issues that we face. so we have to determine what are america s vital interests. forget the discretionary ones. drill down and try to figure out how to manage. because in the end it s conditions to be managed, not problems to be resolved. okay. so is the getting rid of or destroying isis a core american interest? it is. the reason the president engaged isn t because it s interested in another trillion dollar he got into it because isis started beheading americans, you had senior officials worrying about an imminent isis attack. what he s doing seems to me in iraq is enhanced counterterrorism. limited special forces air power, good intelligence, reliance on local allies. we re not going to see thousands upon thousands of american boots on the ground. maybe this will preempt and contain isis from attacking the united states. but under the circumstances it s about the best the president can offer. so you think just hold here, don t do anymore with fighting isis. because people like senator john mccain, senator lindsey graham have suggested we actually need boots on the ground to effectively fight isis. i mean there are things you could do. we re only flying 15 air strikes a day in libya we flew 50 afghanistan 85 iraq 800 a day. you could ramp up air power. perhaps you can embed special forces with iraqi units. you could start supplying weapons directly to sunni tribes. is it advisable to do those things? i think it s risky because all of this military stuff is happening within a broken angry and very fractured country where you have a shia prime minister who s worrying about empowering the sunnis. you have an iranian neighbor that has a different vision of iran than we do and probably most sunnis do. so military power s an instrument to achieve a specific set of goals. those goals have to be realistic. as far as i m concerned it s trying to keep iss on the defensive, check it in iraq. and we haven t even gotten to syria yet, which is the mother ship here. it wasn t just that the americans were being beheaded that got the u.s. involved with isis. it was also the yazidis. remember the yazidis were trapped on that hill top and it was very hard to watch that humanitarian crisis. right. unfold. and senator john mccain has basically said it is uncon shenable for the u.s. to sit on the sidelines while civilians are being massacred by isis. does he have a point? well the senator makes a good point in our values and interests. our interesting are our values. but come on we ve seen 250,000 syrians, even 40% of those are combatants members of the regime or militias that we don t like. you re still talking about an extraordinary tragedy. the largest single refugee flow since the end of the second world war. the question is after the two longest wars in american history where the standard for victory was never could we win but when could we leave, you have a risk averse public. and frankly with all due respect to senator mccain you have a risk averse congress as well. no one wants a major commitment of men, women and trillions of dollars expended in pursuit of these enterprises. so is what we re seeing in ramadi today the answer? let the shia militias, let the sunnis iraq defense forces fight it out with isis themselves and maybe we can help with some air support, but that s it. well we have a supporting role to play. but look, whether it s the will to fight, the lack of capacity to fight you re not going to fix this unless you figure out how to stand up iraqi who is are prepared to make a commitment to actually fight not just as sunnis and shia but as iraqis. that s a long-term process. as i said think outcomes make some favorable to the united states not solutions. how about iran? what s the u.s. relationship with iran during all of this? administration s made a bet basically. another outcome, not a solution. that s got to find a way to avoid war over the nuclear issue. but it s gone further than that. i think it actually believes that iran if it can be transformed would be a positive force to help the united states in syria, in iraq even in yemen. and it s you know the president s critics think he s naive or worse. the reality is these nations that are authoritarian in character they don t change easily, the russians the chinese, even the cubans this is a generational proposition. my concern at the end of the day you re left with iran empowered with billions of dollars in relief in sanctions. because of this nuclear deal. exactly. still in a position should the iranians choose to weaponize. that s a real risk and certainly an outcome that the one the administration may paint going to make iran part of the global international community that doesn t look the way it is now. if you think that s a real risk why should the u.s. still be pursuing this deal this nuclear deal with iran? well you know life is a choice between highly flawed and imperfect alternatives. no deal seems to me there s a reasonable chance of the following, particularly if congress or the administration pushes for too much. sanctions regime probably imploeds. iranians will probably accelerate their program leaving the israelis and/or the united states in position of having to strike. i think the president wants to avoid war. doesn t want to be the first president on whose watch iran acquires a nuclear weapon but also doesn t want a major u.s.-iranian confrontation on his hands either. david miller, somehow even though these things are so complicated we always feel smarter and better after talking to you. alisyn too kind. good to have you here. great to be here. wlast your take on this? we d love to hear it. tweet us or post your comment on facebook.com/newday. over to chris. all right. republican rick santorum is getting in the race for president. now, in 2012 he did shockingly well for a while at least. so why is he so low in the polls now? john king tells us on inside politics. and we are going to take you to the top of new york city with the preview of the spectacular 1 world observatory opening this week in new york city. we re going to take you live way up there, in fact 102 stories up if the fog will clear. we ll give you a look. hey, what are you doing? you said you were going to find out about plenti, the new rewards program. i did. in fact, i m earning plenti points right now. but you re not doing anything right now. lily? he s right. sign up, and you could earn plenti points just for being a wireless customer. in the meantime, i just kick back and watch the points roll in. where did you get those noodles? at&t cafeteria. you mean the break room. at&t - the only wireless carrier to be a part of plenti a rewards program that lets you earn points at one place and use them at another. 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(music) hotels.com. they don t need me right now. just what texas does not need a flash flood warning now in effect for the next several hours in several texas counties including houston with another powerful line of storms moving through. this following floods that killed at least 18 people in texas and oklahoma. there are still a dozen people missing, 11 of them alone in hays county texas. little relief is in sight, more storms are approaching through the rest of the week. breaking overnight, potentially the biggest takedown in the history of sport. top officials at fifa that s soccer s worldwide governing body they ve been arrested in raids in switzerland including the vice president. the arrests happening as investigations unfold in the u.s. and switzerland. the question for the u.s. authorities is did the u.s. lose the world cup bid in a rigged bid? that and other allegations are being tracked down by the swiss and the u.s. there will be more to come on this. new details this morning about the murders of that washington, d.c. family and their housekeeper. law enforcement officials say they are still actively investigating two women who were with wint when he was arrested possibly as accessories after the fact. the women were released from custody last week after being held less than 24 hours. police do not believe daron wint committed the quadruple homicide alone. you know we ve been having such spectacular weather here in new york city just blue-blue clear sky, not a cloud around for days. we thought why don t we go and give people a chance to see a preview of what visitors will see new york city like never before from the top of this new observatory atop the freedom tower. well well mother nature happened. that s what happened. chad myers is up there on the 102nd floor of the observatory. and i understand there s not a lot of a clear view from where you are right now. no. if you talk to my wife my nickname at home is pigpen. you know how that guy has a cloud around him? that s me. this is the only cloud in the state and it s right over me riegtd now. so you can t see out the back. this is the observatory that will be the centerpiece of lower manhattan. and for that matter manhattan in general. this is so far way and above what we ve seen from other high sky observatories in the city. now, i know that what you can see here on shots that we took earlier before the cloud came in because pigpen showed up it is a beautiful view from 360 degrees, three different floors restaurants, the observatory will open to the public on friday. now, there s a reverence to the place as well though. when you walk in here your skin and your hair kind of stands up on end. you kind of get goose bumps to realize where you were where you are right now, what was standing just to the south of here just years ago. and so as you walk in here it s all of the sudden you feel kind of a connection to the city. even if you re not from the city. i stood on top of the world trade center in 1986 looking at the new revealed statue of liberty. and i stand here today although i m not outside, this is an inside observatory, with still the awe that this place was built from. what a tremendous view. what a tremendous feeling you shared with us there. we can t leave you without mentioning the pigpen aspect. so you re going to stay fl a little bit. does it look as though it will clear? we d love to see a shot if the cloud lifts. i ll go upstate, i ll go as far as i can and this will clear out and you ll be able to see. chad thank you for this. this is very very special, extraordinary day. so many people anxious to see this. it was so important for the tower not just to be rebuilt but to be bigger and better than ever because of what it represents. big statement. because of why it needed to be rebuilt in the first place. i ve been up there. majestic. it is gorgeous. worth going. the museum underneath it is amazing, a reminder of what we ve lived through and what we hope for the days ahead. standing strong. chad captured that sentiment so well. he really did. jinxed it. even though he s causing the clouds apparently. jinxed it. let s get to inside politics on new day with mr. john king. how are you, my brother? i m doing great. i m going to take you mr. cuomo or one of you beautiful ladies to play not chad myers. i want to echo your point i ve been there and it s a great place. all americans should try to get there if they can. let s go inside politics. a lot to talk about. jackie olliver knox. start with rick santorum. he s going to make it official today. he s at 1% or 2% in the national polls, but remember he was at 1% or 2% last time when he ran in 2012 in iowa and turned out to win iowa mitt romney was the nominee, but he did a 99-county tour he came from nowhere in iowa. should we take him seriously this time? or because huckabee s running again maybe ted cruz is rick santorum finding a hard time finding his lane this time? that s a the thing. a lot of people are already occupying rick santorum s place in the race. what rick santorum s going to need another billionaire benefactor like he had last time. we don t know if he s going to have that. we also don t know whether this cycle will turn into the dynamic of the last cycle where we had romney and a plausible not romney every couple of weeks. i don t know whether rick santorum in this kind of crowded field is going to get the same kind of bump. he works hard. i would say don t discount him. everyone discounted him last time and he did the shoe leather work. you talk about the money, he does need the new fashioned money. bernie sanders was already in but did the big kickoff rally yesterday. here s a little flavor of what bernie sanders wants to bring to the democratic race for president. today with your support and the support of millions of people throughout our country, we begin a political revolution to transform our country economically politically, socially and environment tally. the current federal minimum wage of $7.25 an hour is a starvation wage and must be raised. as i look to our future it is clear to me that the united states of america must lead the world in reversing climate change. number one it s great to have a brooklyn accent in the race. i think that s important. interesting he makes clear he s not going to do personal attacks. i think that s a signal don t look to him to be a hatchet guy against hillary clinton who s the prohibitive front runner. but he wants to press her whether minimum wage or climate change he s making clear he wants a feisty debate about important issues. he is occupying the space elizabeth warren feasibly would have occupied if she had run. if you re looking for a hatchet guy i think that s going to be martin o malley who s going to get in over the weekend. bernie sanders is taking this progressive position and doesn t want it clouded by personal attacks. i think we re going to see definition of personal attack because he s really sharp on the stump about millionaires and billionaires and about trade. and he s already gone after the clinton record on trade. he s described president obama s transpacific partnership as just another part of a nafta and chinese trade which are clinton era trade deals. he s going to come after her pretty hard just might not be personal. i think the question is if he starts to move if you see him moving in the iowa polls does he get a bit more personal? does he draw more daily and repeated contrast? that s the interesting thing to watch about bernie sanders as he gets going. today in south carolina hillary clinton will be there so will carly fiorina. she s going to do an event outside of hillary clinton s hotel to take questions from reporters. it s a bit of a stunt, but she s trying to draw attention to the fact i m willing to take questions every day, hillary clinton is running these small isolated events. let s look at the cover of the new yorker. a lot of people are talking about this. a bunch of guys in a locker room. you see jeb bush rand paul chris christie ted cruz scott walker marco rubio. and as a woman looking in the room the new yorker says it s meant to be hillary clinton, is it fair or just a little humor that carly fiorina is not viewed here as a serious contender? rick santorum s not in that locker room. i don t think that locker room prohibits her from getting into the race. but i do think this is interesting. you ve seen her do this i m comparing myself to hillary clinton s strategy over and over she started with foreign policy. and she s continuing with the transparency question. so i think, you know hillary she s trying to put her name with hillary clinton as much as possible maybe to raise that name id. and why not get the media to give her a second look and third look and fourth look and fifth look. and why not do it this way where you know there s a traveling press corps with hillary clinton. why not hijack that press corps. they re going to be bored. exactly. maybe in the same area code as hillary clinton. i think it s a pretty clever move. also remember how important south carolina is to hillary clinton. that is where after barack obama in 2008 won iowa hillary clinton won new hampshire, south carolina is where the african-american vote kicked in for then-senator obama. there was a great piece about hillary clinton s effort to rebuild that support among african-americans there. let s close with this the president suffered another setback yesterday, the fifth circuit court of appeals saying whoa putting a freeze essentially on the executive actions he tried to impose on immigration. that s a huge issue for the president likely now to go to the supreme court. we could talk about obamacare before the supreme court, same-sex marriage before the supreme court, how much of what we will say about this president in five or ten years will be determined by the supreme court? not the congress or in some ways not even the american people. it shows what the gridlock in congress has done. it pretty much put the ball in the court of the supreme court. i don t know what happened there. sorry guys. so i think that s where you re hearing a lot from these candidates about judicial activism. but it s not their fault. they actually do have a court at the supreme court. a basketball court. you re right on top of that one. answer these questions a lot obviously. these are all legacy defining moments and if they all get to the supreme court and we get a final decision a lot of his legacy s going to be bound up with those nine people in black robes. speaker boehner celebrating this decision yesterday saying the president said himself 22 times he did not have the authority to take the very action on immigration he took. so the republicans are celebrating this because they want to get into court, but do they win in the long run? when you look at the demographics if this issue is still being debated and litigated in our politics when we get to october 2016 you can make a case that if you look at florida even nevada new mexico colorado virginia a lot of states out there where the latino vote could be the key decisive vote. and in the last two cycles overwhelmingly to the democrats. depends on the tone. legality will be a better message than some of the other things more unfriendly language let s say. sure. and a court agrees with us is not a terrible message to take into a campaign. but i think this might be the last cycle where the republicans can thread that needle. we ll see what happens. as we get back to you, alisyn in new york we talked about the rand paul campaign store a couple weeks ago which have some great t-shirts there. also oddly sells flip-flops. i m not sure why any politician is selling flip-flops. the hillary clinton campaign store is in the news these days and you can get a onesie with a hillary logo. that s a cute baby. pantsuit up, i don t know about that and a throw pillow where the woman s place is in the white house. i don t know about your political buying tendencies alisyn. we were talking beforehand and ollivier wrote a great piece, they do this to get your name, your address, your credit card. it s smart by campaigns. if you want that stuff, great. guess what buy a pillow they ll be back at you for more money. thank you for alerting me to that john. i was just going to get a presidential delete the follow-up e-mail. you got it. thanks so much, john. great to see you. well six months after cleveland police shot and killed 12-year-old tamir rice the city takes a major step towards reform. is it enough? we ll speak with the attorney for the rice family. new flonase allergy relief nasal spray. this changes everything. flonase is the 24 hour relief that outperforms a leading allergy pill. when we breathe in allergens our bodies react by over-producing six key inflammatory substances that cause our symptoms. most allergy pills only control one substance, flonase controls six. and 6 is greater than 1. so go ahead, inhale life, excite your senses, seize the day and the night. new flonase. 6 is greater than 1. this changes everything. i m louis, and i quit smoking with chantix. quitting smoking is a challenge and it s a lot easier to go into a fight when you ve got somebody that s got your back. having chantix as a partner made it more successful. along with support, chantix (varenicline) is proven to help people quit smoking. chantix helped reduce my urge to smoke. some people had changes in behavior, thinking or mood hostility, agitation, depressed mood and suicidal thoughts or actions while taking or after stopping chantix. some people had seizures while taking chantix. if you have any of these stop chantix and call your doctor right away. tell your doctor about any history of mental health problems, which could get worse while taking chantix or history of seizures. don t take chantix if you ve had a serious allergic or skin reaction to it. if you develop these stop chantix and see your doctor right away as some can be life-threatening. tell your doctor if you have a history of heart or blood vessel problems or develop new or worse symptoms. get medical help right away if you have symptoms of a heart attack or stroke. decrease alcohol use while taking chantix. use caution when driving or operating machinery. common side effects include nausea trouble sleeping and unusual dreams. chantix absolutely helped me quit smoking. ask your doctor if chantix is right for you. fact the cleveland police department has problems and must change. that is the order by the department of justice this consent decree comes five months after the doj found a pattern of unreasonable and unnecessary use of force within the cleveland p.d. six months after the shooting death of 12-year-old tamir rice. that case also looms large now in terms of how the community will receive these changes as progress. what happens in that case may mean just as much. that s why we have benjamin crump joining us now this morning from washington, d.c. council, as always a pleasure to have you on. the tamir rice case very big, but let s start with the headline this morning. do you, does the family does the community appreciate what has come down from the doj? do they believe in this as positive change? well, chris, that s a good first step. but we have to remember that the violent crime act of 1994 gave the justice department the legal authority to review local police departments that they believe engaged in a pattern of practice of excessive force. so it s been a little over a decade now. and we have to ask ourselves is it getting better or is it getting worse as it relates to the killing of unarmed people of color by law enforcement officers. now, what do you think about the brilo case? that obviously taking place there to remind people it was where the officer really over a dozen officers were involved with shooting two people who wound up being unarmed in a car. brilo himself wound up jumping on the hood of their car unloading almost an entire clip into the car. and he wound up being brought up on manslaughter charges. now, other police officers were. but the judge in the case decided he was not guilty. your take? well chris, as we talked before in ferguson and many times before until we do something about the sanctioning of killings of unarmed people of color by the people who are supposed to protect and serve them the community is going to have no trust that the system is fair and that it works for everybody in america. so we have to address that. and you have to say that was just shocking that nobody was held accountable in that tragedy that by killed by so many police officers and not one officer held accountable for anything. right. here s the thing. ben, we ve talked about this a lot. just because something feels wrong doesn t mean that it will be wrong under the law. i have to tell you this judge o donnell who wrote the journal entry decision in that case it is worth a read. yes, it s like 35 40 pages. but he goes through that he understands what the community s dealing with that he has to drive past the stuffed animals that are out there for tamir rice and he knows people are angry, but the law is the law and it s about whether the facts meet the definitions of punishment under the law. and he said the brilo case did not because you couldn t prove that the officer was driven to kill these people out of anything other than fear of his own life. you don t accept that? well whether it s eric garner or all these other cases across america, they come up with technical justifications not to hold police officers accountable. what we need is real consequences for real life fatalities. that s people in our community, our children our brothers being killed. and whether it s judges or prosecutors say we re going to justify. so in essence they re sanctioning it chris. you can try to you know technically justify anything you want. but at the end of the day is anybody ever going to be held accountable for killing an unarmed person of color in america? well we see people held accountable. we just saw what happened in baltimore where the prosecutor there they were charged. nobody s been convicted. well that s what i m saying. that s the process, right? often the criticism is the process doesn t even begin. accountability begins with something being recognized as something that s worthy of investigation. and then worthy of action. the prosecutor there made that move. but ultimately you don t want to see someone get convicted because it makes someone happy, right? you want due process of the law. you want equal justice. you want the same thing that happened to anybody who breaks the law just as if they are from our community when we are charged, you know they charge and convicted very quickly. but then when the son lying dead on the street the rules are just different. so as we get ready to look at tamir rice we re going to see if this decent decree is just words on paper or if they re really going to address the fact you re not going to blame a 12-year-old child for his death. remember the answer was tamir rice is responsible for his own death because he should have been more cautious. and the fact that they claimed they told him three times to put his hands up and drop the weapon but when you see the surveillance video come out you say that s impossible. so the real thing is are they going to be truthful about it? are they going to admit there were mistakes made and not try to cover it up? and the crux of the matter is this chris, why should the federal government have to have police departments sign a piece of paper r-old boy, it has eyes on it for all the right reasons. community leaders and everybody is vested like pastor vernon and others have to be stake holders in this because the powers that be in this city have to make everybody own up to the dissent decree. pizza hut and taco bell what the fast-food chains are taking out of some of your favorite meals. boys? 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flavors and colors will be gone by the end of july, and taco bell will do the same thing, and they are trying to appeal to consumers hungry but a bump for more natural options. they are taking ingredients out or buying their way into the healthy gain, and hormel is buying applegate farms, the maker of spam wants to own a natural and organic meat company, and millennials want more natural food even in their junk food. here is a tip. moving the artificial flavor doesn t make a deep dish pizza on its own more helpful, and a balanced diet and moderation is the name of the game. i thought it was going to be a salad. that s too bad. the death toll rises in texas and oklahoma, and more than a dozen people still missing. we will talk with a man whose daughter-in-law and grandchildren are lost in the floods. when cigarette cravings hit, all i can think about is getting relief. only nicorette mini has a patented fast-dissolving formula. it starts to relieve sudden cravings fast. i never know 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choicehotels.com. the site with the right room, rewards and savings up to 20% when you book direct. choicehotels.com some homes completely gone nothing left but the concrete slab. must have been terrifying. it was. racketeering money laundering. the u.s. is making arrests in a corruption case involving fefa. the battle to take ramadi. isis will not prevail because they don t have a message over the course of years that will resonate with the population. i am proud to atphoupbgs my candidacy for president of the united states of america. we have plenty to the republican side. announcer: this is new day, with chris cuomo, alisyn camerota and michaela pereira. deadly floods are changing communities and taking lives. a flash flood warning now in effect for about two more hours in several texas counties including parts of houston. 18 dead so far, and that number will likely change. and 13 people are still missing this morning, and most of them in hays county texas. cnn has complete coverage beginning with rosa flores live in houston, and one of the worst hit areas, and how is it? reporter: this is what people did not want to see in houston, it s raining again, and they are warning residents they are expecting one to three inches of rain in the next few hours, and that s bad news for all these folks when they know that the ground in houston is already saturated. the catastrophic aftermath of record-breaking deadly floodwaters in houston, texas, revealed this morning. more than 11 inches of rain fell in a matter of hours monday night into tuesday. a wall of water rising with frightening speed, leaving thousands traveling in their vehicles racing to escape. turn around and don t drown. rows of vehicles left abandoned on a houston highway, and some cars almost completely submerged underwater. emergency crews scrambling to pull people from the floodwaters. but for some it was too late. one woman says she witnessed the discovery of a body in a flooded truck. it was a woman, and it was dead by the time we got there. thousands of people without power. the flash floods rushing through thousands of homes, and houston s mayor says at least 4,000 residents may have suffered significant damage. we first were on the couches and then on the table and then on the counters. one houston resident, her family narrowly escaping the flood, and shows the devastation the rapidly rising tide left behind. the water got up to the slip on the county. over a dozen people including children are still missing. the death toll in both texas and oklahoma continues to rise. here is how quickly the situation can change here in houston. take a look at the bayou behind me and a few hours ago the water level was very low, and 24 hours ago, take a look at the debris hanging if the pipe that goes from bank to bank and the water was above this bank and it actually rushed into the homes that you see beyond the bank. i talked to those folks and they tell me that they had to russian side to high ground ie their kitchen cabinets because there was no way for them to stay dry, and they were thinking we will have to get on the roof if the water keeps rising. they were on their counters for hours before the water receded. the main above you has grass on it because the water was rushing. houston not the only area hit, and hays county was hit, and jennifer is there. the latest? reporter: we are still here in wimberley where the waters rose so quickly overt weekend, and now the river, the blanco river, we still have 11 missing here in hays county and three people dead one adult female and two males and they recovered all of the bodies in the blanco river total 18 deaths and 13 missing, and the water raging and still running high so the fear of more flooding by the end of the week and the weekend still exists. you can see all the debris around here, and we are at a campsite where i counted four or five cabins completely gone and you can see a pool in the distance where kids were playing less than a week ago. the sight here is haunting cabins tangled on top of each other and empty slabs and you can imagine the fear in people over the weekend. like we mentioned, more rain possible thursday through sunday and we are only expected maybe an inch or less, and as we all know you could get in one of the heavy downpours and you could get isolated amounts higher. and we know volunteers are coming in from all overt air the area and college students are going to get here and do something, so as you can see behind me a lot to do and crews will be out again looking for those 11 missing people here in hays county. those pictures show how quickly life can change. thank you so much for that update. now to the developing story out of iraq. iraqi forces trying to retake ramadi, and iraqi soldiers killed by a suicide bomber. and arwa damon is live from baghdad. what is the latest? reporter: that triple suicide bombing attack goes to show you the type of tactics that isis does and have deployed in all of the different battles taking place. the iraqi government has a patchwork of conventional forces the army and the police as well as these iranian backed shia paramilitary forces and tribal fighters, and little progress made to the south, and we are hearing this force did manage to take over the ambar university and this is a widespread operation, and there are different attempts underway to cut off vital isis logistical routes and capture the small territories isis does control to prevent the group from being able to resupply its fighters and also generally shift fighters and weapons around the battlefield. isis is capable of regrouping and striking areas that it finds vulnerable but this is a very fluid battlefield and nobody expecting it to end anytime soon at this stage, but the iraqis are confident this time they will stand their ground michaela. thank you. meanwhile, the u.s. looks to be taking a wait and see approach. the white house is standing by and defense secretary, ash carter s exclusive comments to cnn questioning the will of the iraqi fighters in ramadi. barbara starr is live for us. one of the things ash carter said that is so significant is the sunni tribes need to get involved in the fight and look for that to be the focus of much of the u.s. effort and getting the sunni tribes in anbar province to get in the fight, and arm them and train them all under the control of the iraqi government in baghdad, and unified government but that is why ash carter had a two-praurpbgedtwo-pronged approach and get more people involved, and get your act together and get your forces out there fighting and take care of them so they have the will to fight and stay in the field. what about u.s. air strikes now? they will continue to be but one of the key things the u.s. is facing is isis is improving its tactics and digging in and mixing in with the local populations making it very difficult for those air strikes to pick out targets. thank you very much. let s bring in white house communication director, jen sake. you have ash carter saying they don t have the will to fight, and then biden says no they have the will to fight and they are great fighters, and what is the line out of the white house? what do you want to say about this? first of all, it s more complicated than a line. we have a terrorists organization that intends to do harm to the iraqi forces and the region, and even more broadly than that and what our focus is on chris, equipping and training and preparing the iraqi security forces to take on the fight, and they have taken on the fight and they are continuing to but we need to adapt our strategy too, and adapt to the equipment. is this a function of the reality that the best fighters in the world are not in the fight, and when dealing with the iraqis yes they should be in charge of their own determination and fight their own fights but they are not up to the task the way the u.s. fighters are, and do you think that is what gave birth to the fight? i would not put it in those terms, and secretary carter what he said it was consistent to what he was seeing on the ground, and it s something iraqi forces want to adapt to as well. and we want to equipped them with the materials they need to take on some of the tactics isil has been doing in the suicide attacks, and this is a training where the iraqi security forces that were fighting back in ramadi didn t have access to that and that s something we need to continue. it s important for people to remember the iraqi security forces have retaken 25% of populated areas from isil. there are going to be ups and downs and we need to continue to adapt and continue to prepare them and equipped them with what they need as does the international coalition. the white house believes the iraqis have the will to fight, yes yes? i think we have seen issues in the past and we need to address those, and prime minister abadie came in in a situation where there was a lot of division and work needed to be done to better unite the forces and bring them together and equipped them and he has done that work and his security forces have done that work and it takes time and we will stay on the eight. while you are working for a yes on that question, are you concerned in the white house about how iran is working their way in to iraq and becoming in favor there? well chris, if we spent every day worrying about what iranians say about the united states that s all we would focus on. the fact is the proof is in the pudding, and we have trained and equipped the iraqi security forces and taken steps to support them and their needs on the ground and we are going to stay at that but the actions speak louder than words there. we are going to focus on what more we need to do to help support the iraqi security forces on the ground. when you say more of with a we need to do, is there any chance you wind up putting more people on the ground. and he is talking to his military advisers and the coalition partner, and as i noted earlier, we just rushed things to the ground. thank you very much for giving us the word from the white house. my pleasure. we do have breaking news overnight. a huge international scandal brewing in the sports world. not one but two corruption investigations against fefa soccer s governing body. what do we know? the words money laundering and racketeering are words we don t usually associate with soccer. they are calling it a criminal enterprise. they arrested seven people overnight at a luxury hotel in zurich which is where the 200 top officials of soccer have been gathering for the election on friday. 14 people have been indicted and this involves bribery paid for sponsorships even as well as fixing the world cup in south africa in 2010 and fixing the choice of south africa as the site for the world cup, and we expect loretta lynch to announce the charges in brooklyn in a couple hours, and jim comey is going to be there and it s a unusual press conference because the united states is asserting jurisdiction over a word wide body that governs soccer. the u.s. lost its bid to host the world cup, and is this connected? that s how it began. people saw the vote for the 2022 world cup that went to cutter and said this was rigged and this is how part of the investigation got going, and justice department started looking into it, and the swiss say they are look into the bids and fefa hired somebody to look into it, and they found nothing wrong. that s interesting. you talk about the selection and bribery. does this go as deep as the outcome of games? is that come into question too? that s been the whisper. this indictment does not touch that level of corruption, and what is alleged here is buying officials around the world so the leadership of fefa stays in place. $150 million in bribes over two decades, and that s something separate there are investigations going on around the world to match fixing as well. goodness me. we turn to cleveland now. a major shake-up for law enforcement in the agreement with the justice department and the city is planning a broad set of reforms to address what federal officials found was a pattern of if that excessive force by the police department. the mayor calls it a new way of policing and the new standards put a focus on community engagement and officers will receive training in crisis intervention when dealing with mental health cases. these are some of the most extraordinary standards when it comes to use of force, and officers having to report when they unholster their weapon. and the mayor says he welcomes the agreement. this is a transformative time in the city of cleveland, and with the division of police and most importantly all the citizens in the city of cleveland and our goal is to have real reform that will be sustainable. this agreement is a major step in getting us to that point. the department of justice calls this unique cleveland agreement. if these implementations are not met a federal judge has the authority to demand them. chris? thank you very much. china is now officially annoyed lodging a former complaint with washington after a american spy clean with a cnn crew flew over disputed waters in the south china sea. foreign military aircraft this is chinese navy you are approaching our military alert zone. leave immediately. beijing accuses the u.s. of trying to smear the chinese military, and china is not grabbing land but creating it added thousands of land to the sea, and the question is why? this is one of the funniest final jeopardy answers of all-time. a christian hymn and a jewish holiday hymn are both title this also the name of a 2009 tony-nominated musical. what is yes, whenever they go to temple they sing kinky boots. the answer was, of course rock of ages. i was trying to think back to what i sang in church, and kinky boots he could have said cats. he calculated he couldn t lose so he was feeling good about whatever he wrote down. i love it. meanwhile, back to the top story because there is flooding in texas to tell you about, and it has left more than a dozen people still missing, and among them a mother and her two children swept away by the rushing floodwaters. the new observation deck at one world trade center is about to open up and not open yet, but guess what? we are there in the fog. you have a sneak peek coming up. it s not home. but with every well co nsidered detail . . . it becomes one step closer. at least 18 people have been killed by raging floodwaters in texas and oklahoma, and more dangerous weather on the way. families are left dealing with the pain of tragedy, and some not knowing if their loved ones perhaps survived. we want to bring in a man where his son survived but his daughter-in-law and children are miss missing. thank you for joining us. it s with a heavy heart we talk to you today, sir. thank you. you are correct, it s a heavy heart, but we re glad we are here and we are hoping and praying that miracles will happen and we re very optimistic and at the same time we are realistic. you had a chance to talk to your son and he is recuperating and a broken rib and collapsed lung. has he been able to talk to about what happened and tell you the story of what went on in those horrible moments? yes. he is very communicative. obviously he is hurting and on top of the hurting he is under medication for the injuries that he does have but he has full recall of the whole incident and basically they were in the house and got the warnings and realized it was raining, and they moved their cars up the hill from underneath the house because the house was built on stilts and in the river and they moved them up the hill about 25 feet higher anticipating the rise in the river and, you know up to and probably get under the house, but i don t think anybody had any imagination that this water would be in the volume that it was, and it was at nighttime, and they moved the cars back up to the house, and went back to the house, and used their flashlights and started looking out the windows and saw the water came up significantly and they were at the top of the house and they were trapped because the water was at the stilts and they realized they were trapped and all of a sudden they heard a tremendous hit on the house and felt it and he doesn t know if that was a tree or what it was that hit the stilts and that knocked the foundation out from under the house and that caused them to start floating and all of them were gathered in the rooms there, holding on to furniture and stuff, and they started floating down the river, and my daughter-in-law, laura, she managed to get herself on the phone and call her sister and i don t know what the future s. i love you, and we are floating down the river and that s the last communication that anybody had with anybody in the house, and jonathan said at some point as they were floating down the river, the house ran into a bridge and it tore the top of the house off and at that point the house shattered, and it started just washing all of them in all different directions and that s when everybody got scattered, and then the next thing he knows he is we have heard reports he was seven to 12 miles down the river and he was fighting the whole time and saying i just have got to get out of here, and i didn t know whether i was swimming up or down but somehow i was able to get up and catch a breath of air and keep going and he was able to crawl up to a guy s house and knock on the door and say, i need help our house was washed away, and that s when they called 911. the search continues looking for your daughter-in-law and grandchildren. tell us about them layton andrew and laura. they are all precious people and full of life. we had a great time. we loved them and enjoyed laughing together, and they were all involved in you know we had just gone to a resaoeulgts a week before this and andrew was involved in little league and jonathan worked with me in the family business and, of course i get to see him every day. so it s quite a shock to us and the friends with them and they are close friends and their families are hurting and it s a tragic situation. yes, it is. we know that there are other families hurting as well and they are trying to figure out what happened in an instant, and it sounds it happened so fast at night before they could do anything. we are going to keep hope alive with you that a miracle will happen here, and please give your son our warmest regards for a speedy recovery and he will need love and support around him. he is and i thank you very much. we certainly wish them well alisyn. oh, my goodness. what a story, and we do pray for them. michaela thank you so much. here in new york one world observatory set to open its doors in the new one world center. every auto insurance policy has a number. but not every insurance company understands the life behind it. those who have served our nation have earned the very best service in return. usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life. here we go with the five things you need to know for your new day. 18 people dead following severe storms in texas and oklahoma, and more than a dozen people still missing, and several texas counties under a flash flood warning. officials in ellis county watching a storm approaching. soccer s worldwide governing body arrested in raids in switzerland, including fifa s vice president. iraq sweeping offensive to retake ramadi and the anbar province underway this morning. reports of iraqi troops being killed by suicide bombers. and then addressing a pattern of force and racial bias by the cleveland pd. punching their ticket to the finals. golden state is up three games to one. visit newdaycnn.com for the latest. and it s time for a peek at stunning views. we re talking about the new world trade center. we will show you on tape because it s cloudy out today. we had to get it right for you. chad meyers is live. he joins us from there now. look at what is behind you right now. that is okay because we can show the pictures anyway. what really matters as you have been pointing out beautifully this morning, the beauyes. you see the marble not the rock but from the same quarry. as you walk in you go forward and you remember what the windows used to look like in the world trade center, and they were skinny and there s a light box and there are the vertical windows. the amazing architecture here, and more is the reference of the place what it stands for, we will never forget all over the place, and on friday to the public this will open. please come when it s sunny and don t come when there is a weather man and never invite a weather man to an golf outing because it will rain. it s 70 floors from the ground and from here all the way up a big cloud mass and we can t show you anything except for what we shot yesterday. you can see staten island and see jersey city or all the way up north. 360-degree views and you can spend as much time up here as you like, and that comes up on friday. i don t know if you are a big pen or was that the fin flintstones ? we will come back and talk about the fifa news. stick around. woman: for soft beautiful feet i have a professional secret: amopé and its premium foot care line. the new amopé pedi perfect foot file gives you soft beautiful feet effortlessly. its microlumina rotating head buffs away hard skin even on those hard-to-reach spots. it s amazing. you can see it and feel it. my new must-have for soft, beautiful feet. amopé pedi perfect. soft, beautiful feet effortlessly. at hilton, we say. play hooky from the ordinary. the uninspired. the routine. but mostly just play. with hilton s 12 brands you always get the lowest price. only when you book direct at hilton.com. a huge international scandal breaking in the sports world this morning, not one but two corruption investigations against soccer s worldwide governing body, fifa. and joining us is a columnist. how surprised were you? not at all surprised knowing we knew it could be there one day, and this is something that has been discussed, bribes and it s the worst kept secret in international sports and maybe in all of sports. this is to your point, this investigation targets alleged wrong doing that spans 24 years, so why today do you think this happens? well certainly it s not lost on anybody except the long-time chief of fifa going for his next term on friday and here is a preelection gift for you, and i am not surprised if he would be re-elected re-elected and these are the most powerful people in the world, and they have got cronies and friends that will elect them no matter what and the that s part of the timing, and here you go here is a gift for you, deal with this. this involves $150 million allegedly in bribes. who got rich here? well pretty much every soccer official and all of the federations, and at the expense of children and those that should be getting it developmental programs and this is the biggest problem in international sports and it s not just soccer although soccer is the big cheese here, alisyn, and there is so much money being taken off the top, and 2018 and 2022 world the cups are under investigation, and the boys and girls are trying to grow the game in other areas, and that s the real shame here, and that s why it s important and we should care about it. soccer is wildly popular among elementary school kids here in the u.s., and around the world. what does this do to soccer s representation? i think it takes a hit and it s going to be the sport that most people love and many americans love too. i hope what it does is start to clean it up, and the international olympic committee, it was cleaned up, and there is a way even with the powerhouses to take them down and start to clean house, and with the u.s. government involved in the manner that s what is going to happen. so the president has not been arrested, and some of his top lieutenants have been and will he be unscathed by this. pay no attention to the man behind the curtain from the wizard of oz. there are people who are helping the investigation. i think he should be concerned today because this is clearly not over and we will be hearing from a press conference in an hour or two. thank you so much on being on new day and helping to explain all the intrigue and malfeasance. and a question are people of faith under attack, and senator marco rubio has taken this to a whole new level and we will tell you what he said and what it means for his chances, ahead. but i think he s kinda nailing it. (music) hotels.com. they don t need me right now. we all eat foods that are acidic. most of the time people are shocked when we show them where they re getting the acid and what those acids can do to the enamel. there s only so much enamel on a tooth, and everybody needs to do something about it now if they want to preserve their teeth. i recommend pronamel because it helps strengthen the tooth and makes it more resistant to acid breakdown. we want to be healthy and strong through the course of our life and by using pronamel every day, just simply using it as your toothpaste, you know you will have that peace of mind. we live in a world of mobile technology, but it is not the device that is mobile, it is you. real madrid have about 450 million fans. we re trying to give them all the feeling of being at the stadium. the microsoft cloud gives us the scalability to communicate exactly the content that people want to see. it will help people connect to their passion of living real madrid. (mom) when our little girl was born we got a subaru. it s where she said her first word. (little girl) no! saw her first day of school. (little girl) bye bye! made a best friend forever. the back seat of my subaru is where she grew up. what? (announcer) the 2015 subaru forester (girl) what? (announcer) built to be there for your family. love. it s what makes a subaru a subaru. today we reached a point in our society where if you do not support same-sex marriage you are labeled a home aphobe and hater, and then the next thing is to argue is that the cat keuzam of the catholic church is a hate speech and that s a real and present danger. a controversial gay marriage comments. and joining us is republican strategist ana navarro, and a democratic strategist donna brazile. good to see you. good morning. thank you. what did you think, and that was to the christian broadcasting network that marco rubio was speaking. what did you think of the comments? they made me cringe. i am uncomfortable and disappointed with them, and i support kphebgs marriage, and i nomar co-raoub marco rubio very well, and is religion is very important. everybody running for president needs to keep in mind if they are elected president they have to be the president of both folks who are on the same side the same-sex side of the issue, and against it the religious liberty and we need to be a big enough country so we can somehow peacefully co-exists. i don t think this kind of rhetoric stoking the flames is helpful. i think we need to follow suit of what pope francis is doing and have a much more conciliatory and less judgmental debate going on and trying to figure out how we can respect those that want to get married and also respect those who have religious liberty issues. you know when you have the pope of the catholic church being cited as a secular and more moderate pope and you have met this hope? i like the pope, and he is getting more towards the inclusiveness of what humanity should be about. as a political issue, senator rubio was on the christian broadcast network and he was preaching to the converted, and for your side how do you deal with this issue? something about the law and equal protection is very much being made by the right or certain aspects of it as being an attack on faith. what does that mean to your side? first of all, i believe that s a false narrative. it s not i don t think support of same-sex marriage marriage equality has anything to do with attacking faith, and there are many christians who are gay and believe in the lord and preach gospel and believe what jesus taught us love one another and believe in john 8. i find it discouraging to hear that somehow or another, being supportive of same-sex marriage and being supportive of marriage equality is an attack on religious freedom or faith. i am a woman of faith and love the lord and i am catholic, and this pope has done a tremendous job in trying to explain those values in ways that i do believe enhances all life and all human beings and of course the gospel of love. let s talk about it from the flip side. is there no truth to what marco rubio is saying that it s so politically incorrect in this presidential race to say that you are against same-sex marriage that there is a whiff of homophobia? is there something to be said he feels painted with the brush of home phobiae homophobia just by standing by his own beliefs? there s a small group of people getting entrenched on ops sides of the issue, and it s a whiff of truth but not a general truth. not everybody is saying if you don t support same-sex you are a home aphobe, and i don t think anybody on the other side saying you are calling us all home aphobes if we don t support it, and there are groups that feel attacked and feel like the end of the world is coming because same-sex marriage is going to be a reality, and we just saw, alisyn one of the strongest catholic countries in the world overwhelmingly approved same-sex marriage over the weekend in ireland. if they can figure this out, you would think in america where we respect each other s rights we could figure it out as well and you know i just think there needs to be less accusations and finger wagging going on on both sides. as you know that s what politics is. we all grew up in it, and while it s always been nasty, there is a toxicity to the partisan process right now that is successful that helps you, that i think is distinguishing itself, and i think that s what we are seeing in the issue, and this sets up as a legal issue and not a personal issue, because even if they find the justices there is a right to marriage for lgbt and if they find it to be a protected class which many think they won t, and it s being spun as something else and as marco rubio, what are they going to take you next? is sunday no longer going to be a day you get to go to church? that s what it s starting to sound like. i disagree chris. i know i watch and i know people of faith who happens to be gay, and they don t sit around with all of this sitting around and who is a bigot and who is a home aphobe and they are trying to live their lives, and trying to make ends meet. i know that everything that is politics these days is poison and toxic, but there is something and so natural about two people finding each other and falling in love and wanting to spend their life together and while we had this debate for over 30 years, at least throughout my political life we have been talking about it and we re now at a point where the majority of americans believe there should be no discrimination against people and no discrimination against people being able to marry. that s the country we have evolved and i do believe at some point people will just evolve and we don t have to have the conversations anymore. we will see what happens for the next 18 months on the issue. can t come soon enough. hey, don t take away our 18 months of fun. thank you. indeed. thank you, ladies, and so great to see. what is your comment. we love reading those. after that you know what we need? the good stuff. it s coming up. what is that? it s you! it s me? alright emma, i know it s not your favorite but it s time for your medicine, okay? you ready? one, two, three. 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[ female announcer ] to nurses everywhere, thank you from johnson & johnson. the good stuff, and a reminder fight something more than on the ground. a family marked by death by saddam hussein, and when they got to the border their baby s name was not on the list, and an american soldier steps in and starts talking. i said again, my name is greg and if the baby s name was greg it has to be a relative and that means she can go. lieutenant renamed the baby on the spot so she matched his passport and as a result the family made it to america intact and nearly 20 years later that baby is graduating and didn t feel right about doing it without her savior so tracked him down. it was the story, she always told me about the man saving my life. it was a day that makes your life worldth while. look at that hug. with that we hand it over to carol costello. have a great day. newsroom starts now. good morning. i am carol costello. thank you so much for joining me. we begin this morning in flood-ravaged houston, and a threat of more flash floods hanging over the fourth largest city. another three inches possible just this morning. this is a live picture
culprit earnings in spain, the situation of the banking sector across europe, people worry that the big decisions haven t been taken to stabilize the economy. what the italian election indicates is the anxiety about by people that the mix of policy isn t right. personally, i think that the euro has been, in one sense, stabilized by the actions of the european central bank over the past year or so, but as well as the liquidity problem, we ve still got a solvency problem, and above all, we ve got a growth problem. if we don t get the growth figures up, we re in trouble. thank you for joining us on squawk box on cnbc. okay. thank you. guys, back to you. michelle, thank you. that was a great interview. thanks for letting us listen in on that. folks, make sure you join us on monday with warren buffett starting at 6:00 a.m. eastern time. that does it for us today. right now it s time for squawk on the street. good friday morning. welcome to squawk on the street. i m melissa lee with carl quintanilla, jim cramer and david faber at the new york stock exchange. we are looking at the open, dow indicating lower by about 43 points. we were just 16 points yesterday from a record on the dow. and it looks like it could be a tougher climb today. of course, we got the personal income number this morning, plunging the most in two decades, because of higher taxes. spending, though, was in line. take a look at the picture over in europe. dismal eurozone pmis, particularly out of the uk which went into contraction last month setting the tone there. we have 3/4 of a percent decline over in germany. overnight in asia, china pmi, the weakest in five months. the shanghai composite posted the first decline in three days. the road map in the new age of sequestration, or as some are calling it march madness. how soon will the symptoms show up, and will the market worry. we came within 16 points of that record high. the bad boy of american business, andrew mason is now gone. where does that leave group-on as the stock is up 4%. the deadline came and went. still no offer for best buy from founder richard schulze. no guidance for q1. what a week for bill ackman after a credit downgrade last night. carl icahn adds members. once again, dow attempting to march into the history books. the blue chips came within 16 points of that all-time closing high before finishing on the down side. february was still a win for the bulls. the dow rising for a third consecutive month. s&p and nasdaq each up for four months. meantime, that so-called sequester looms. at some point before midnight, the president is expected to sign the order that will slash $85 billion from the federal budget. about an hour from now, the president and congressional leaders will meet in a last-ditch effort to avoid those cuts, but it s not expected to bear any fruit. a lot of discussion, guys, about, all right, might not feel like an immediate emergency, but is it the frog in the boiling water slowly over time, will this show up in the regionals, jim. will stocks take notice? it should. because there s the way that this sequester meets, there s a lot of people have to be laid off because they re civilians because they re not allowed to lay off the military. if the civilians are laid off, you ll see an uptick in the employment claims. then the macro guys come in and sell the stocks. my problem has always been throughout this period is the macro has looked dicey on any given day. then you come in gap stores, great numbers, best buy great number, and try to figure out how to make money in an environment where the top is bad and the bottom s good. yeah. and you pair it with the personal income this morning, plunging. the most in two decades. think about the furloughs rolling throughout the u.s. government in the department of justice. my sister works there. and they re going to be furloughed for a number of times every number of weeks. the international trade division. not prosecutor. what would they be doing if they were really embracing the sequester. $85 billion is nothing in an economy of our size. i mean, i think that, remember, anytime you get layoffs from big companies, they do tend to show up these days. this will show up. maybe the claims go to 380, and come in and we do a thursday, woe is me, and we sit and look at the actual companies. and we say, oh, we can buy that on the woe is me. i was listening to steve liesman this morning. you want to slit your wrists because that s apropos of what happens. i love steve. but the macro s bad. fed were to leave. then suddenly this whole house netflix house of cards, i know you like it. you do like it. i plan a viewing at some point. it s like margin calls. but i end up with the data of the companies, and how does gap stores, a major retailer, report such good numbers. the number is they re executing well, doing some international work. u.s. not that bad. it s just not playing out. this payroll tax, holiday over, did not play out with the retailers. if you take a look at the spending and income numbers, spending was pretty much in line with what was expected. right. incomes plunged the most in two decades. maybe the consumer hadn t felt will the impact and it will show up in next month s data. increase in borrowing that we ve seen. these are all largely the results of mortgages, though, finally people starting to take on. what got us here, american express from the bottom, caterpillar, home depot, disney, general electric, the biggest contributors from the dow to the bottom of where we were yesterday when we were up. you check off is american going to be hurt, general electric coming back, i mean, in each case, when you view the components of the dow, the dow s bebeen the strongest index. you can make the strong case we re not done. some would say we re not done worrying about the continuing resolution. that s another three weeks, four weeks from now. as we get closer to that, would your level of worry graduate to something bigger. it s a fiscal cliff. we could get out, tell people to get out and they get killed. the debt ceiling, debt downgrade, you tell people to get out. i m just saying, it s so overwhelmingly negative coming from washington, it s produced a lot of false tales for the stock market. ihealth care, we ve seen staples, the bunker trade yesterday with the likes of hormel and kellogg hit you new highs day after day. does that tell you something about the nature of this rally, people are willing to buy the markets, but in a defensive way, not putting the money into large cap technology or energy or materials. energy, materials, china. people worried about a slowing in china and europe. when you look at clorox, they re a big beneficiary of a raw cost. same thing with kellogg. with the exception of perhaps the actual box, which might be going up in price. they ll tell you that. people love the defenses, technology keeps disappointing. the cloud still works. sales force.com, great numbers. the conundrum for me is retail. because retail should be the rth, should be the greatest short, and it hasn t complied. right. no, it hasn t. nor will it today. unless it was largely made up of jcpenney. which we ll talk about in a little about. andrew mason, i had it all made up. we had to do a major stoppage of our show, because i had to stop the press? yeah, i had andrew mason lined up for the wall of shame. the board was working. what i suggested he do is spend more time with his family. sure enough, in his release, i d like to spend more time with my family. just kidding! let s get to the details of this story. this is a good one. group-on ousted its 32-year-old ceo. groupon lost three-quarters of the value in the past year, says co-founder and chairman eric and ted will serve as co-ceos as a replacement is known. mason said in a note to his colleagues, after 4 1/2 intense and wonderful years, i decided i d like to spend more time with my family. just kidding. i was fired today. that s the reference you re making, jim. he wants to go to a fat camp to take off the groupon 40. i ve been waiting for a fat camp deal the whole way. i was talking about what he would do is get the mini peddy, slice of pizza in staten island, perhaps the brazilian. maybe a brazilian is to lose 40 pounds and he has some references i find arcane because i m not 17, like he is. i think at this point you have to wonder if mason s departure signals a buy in the stock. would you buy the stock? now that he is gone? anytime someone comes off the wall of shame because they ve been fired, the stock goes up. i m putting him this is the shortest wall of shame. there has to be a business beyond revenues. david, i ve always wanted to ask you this, because you re a level-headed guy. if you re losing a lot of money, can you indeed make it up with firing? no. elaborate. i don t need to. it normally doesn t work that way. my dad is going to say i m fighting with you. be nice to david, he s a nice boy. it s a schtick. but with the entries being so low i mean, they had numerous competitors from day one, and they pooh-poohed it all. pooh-poohed it? as far as i ve been able to determine it weren t they writing a lot of funny copy, and then it started to deteriorate. i found less and less did i want to use my coupon to go. it was no longer gap stores. remember gap stores is really what made everyone court them. it tended to be the quirky things where you shopped the deal. i think the retailers stopped liking the one-off customers. amazon s already in there with local. so other companies are taking their lunch when it comes to the daily deals. it s selling goods, carries inventory. why do you want to get into that sort of it doesn t like anybody here thinks it not a priceline. do they have a little success more than this we re giving him credit for? he s a creative guy. he s funny. maybe he could be an adult. that may be the single biggest need right now of group-on as an adult. remember when mason quirky is a code word. code for really bad ceo. . there s been a lot of discussion about the whole notion of groupon was really his in the early days. he actually talked to us on squawk on the street not too long ago. here s what he had to say about the future of the company. groupon has not even celebrated its fourth anniversary. when you really look at the business over the horizon of what it s going to be over 10 or 20 or 30 years, it s still in its infancy. i think the public markets have not been as forgiving as maybe they were historically. that s for sure. and you might argue that the longer term broader effect may be companies less likely to go public earlier rather than later. is that the lesson that we all learned from that? it s funny, because we thought the development of this so-called second market, and by that i m not just talking about second market, but this ability to at least give some currency to your employees, give them a market in which they could realize some of the gains they had, while staying private, would do that. and with facebook, it did. remember, the argument there was maybe they came public a little later than they should have because their growth curve had already turned a bit. so i don t know. we re looking at this class from that era, whatever that was, a year and something ago. we ve had one real winner, linkedin. linkedin, when you re doing these things online, investment bankers always say, you ve got to scale, you ve got to blow up linkedin has a subscription business that s very good. and the investment bankers don t like it because they can t grow that fast. my hat s off to linkedin. it s much bigger than when it started. linkedin has moved into everything from google to advertising, additional this is a way that people just get the best employees. and high level officers. it s really supplanted a lot of the surfers. the surfers are going to say, our business is better than ever. short the search firms? none of the they tend to be these private search firms that can make those calls. that s a great business. a niche business. obviously you killed monster, right? not monster worldwide. they re working on putting the beverage business on its tail. are they? yes. red bull team? when we come back, we get clarity on best buy from david in a moment. a week to forget for bill ackman. we ll explain that. and we ll find out who cramer did induct into his wall of shame last night. what a new record high for the dow, set a bear market trap for investors? we ll explore that question. one more look at futures. implied open down 48. back in a minute. 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[ engine revs ] shares of best buy up sharply in the premarket. the electronics retailer posted better than expected results as a .9% rise in comp sales. best buy says it has not received an offer from richard schulze to acquire the company. the deadline expired at the end of the day yesterday. faber s been working on this for most of the morning. well, also, for a long time we ve been saying they were not going to be able to buy the company. i think that was even more likely as the stock moved up into the 16, $17 range over the last couple of months. when it was 12 when this all began back in august, it was a bit higher. then it came down. then it looked like, well, maybe you could raise it. you know, it was the equity check from private equity then. but interestingly, there was an opportunity here for best buy if it wanted to to raise about $1 billion. i confirmed from three equity firms who had come along with schulze in the effort to cobble together some sort of overall buyout, and then kind of separated from him. and negotiated directly with the company. they wanted down side protection from what i m hearing. the company generated $965 million for fiscal year 13. maybe they re not in a position they re saying we absolutely have to take this money on the terms that you want. they were close, apparently, but they didn t get there. so there was that $1 billion possibility. but the whole idea of a whole company buyout, really, again, even with him rolling in the 20%, we said many times, the check was too big. when the stock moved up to 16 and you needed to put a premium on that, forget about it. how about the fact that the new thing we see with retail, i had afc on afce, which is popeye s, close the bad stores, and then the cash flow does ramp. one of the things that s always bothered me is wall street wants you to open more and more stores. terry lundgren decided i m not going to open willy-nilly, i m going to open strategically. i thought the closings of stores here was very significant. but they re saying, we can t win in this town. and the calls are going on. i think they re detailing some of those plans behind future store closings. but what about the future for the company? what about its ability to really generate significant same-store sales off the smaller base? they re generating free cash flow. that s what people are looking at. it did come in at the far lowered estimates. at the end of the year they brought it down to $500 million. now they came in with a number well ahead of it. lowering it to come in well above. they talk lovingly about their online efforts. the 360, the omnichannel, they re big online. we know everyone goes to amazon, so to speak. and no guidance to the quarter. they spent a lot on super bowl ads. they have to pay amy poehler. what do you think? i think it s better than sears. better than radio shack. okay. i ve been trying to put together a roster so they ve got that going for them. they are in the end i come back to is, there is room for one. there is room for one. and they re the one. there isn t room to buy a stereo. go buy a tv you sat here many times and kind of intimated they are going the way of you said that you go to the triceratops. you see the plasma tvs and all that. there s a lot of best buys, and costco tends to be a little more difficult to look at. there are not that many costcos. best buy, when you re in a jam, best buy when you want to have delivery, that delivery matters. because that stuff is heavy. okay? best buy, if you want them to set it up, the geek squad isn t as good as it used to be. have you ever bought anything in your life? we need a screen, a take your daughter to college screen. all those stocks that benefit from that very moment. when i took my daughter to college, i said, where s the best buy. target was okay. they didn t really have the selection i wanted. great discussion. when we come back, what a week it s been for the markets after monday s trouncing. all the data. how do you end it on a profitable note. one more look at futures. there s been talk that first day of the month, fridays have been generally positive. do we work our way out of this hole. more squawk on the street back in a minute. 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[ male announcer ] every car we build must make adrenaline pump and pulses quicken. to help you not just to stay alive. but feel alive. the c-class is no exception. it s a mercedes-benz through and through. the 2013 c-class. starting at $35,350. but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity s analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i m meredith stoddard and i helped create the fidelity guided portfolio summary. it s one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. i m up next, but now i m singing the heartburn blues. hold on, prilosec isn t for fast relief. cue up alka-seltzer. it stops heartburn fast. oh what a relief it is! there s discussion the day after this week. mark bennyhoff came on and really told the story of taking it to oracle, s.a.p. they got big contracts, including eight-figure contracts. phillips and walmart. he won the walmart. i think what s happening here is the company is taking a lot of share. $3 billion. fastest i ve ever seen a company to $3 billion. bennyhoff is friends with steve jobs, friends with larry olson. he is at the epicenter of customer relations/clout. he s doing a good job. what s left in terms of value at these prices? there s a couple of guys merrill lircynch goes to 228 pr target. widely shorted stock, widely regarded as expensive. the revenue was up. that s a good tell for the future. i do not want to short this stock. everybody wants to short it. the overvalue look, i ve never made a lot of money at my old hedge fund with overvaluation. they tend to like amazon. this is a great quarter. which has been your constant critique on valuation. valuation, come on. you roll into a company that s doing poorly. i want to go with companies that are growing. that s the problem with an apple. it s not growing the way it was. right. a lot more with jim in a moment. when we come back, find out what the man who wrote the boek on groupon has to say about andrew mason leaving that company. will the dow kick off a new month? the bulls have work to do. opening bell is in four minutes. recognize me. but i am your market data. i know what you re looking for. i m not chained to your desk anymore. i m faster and smarter now. and so much less expensive. i am your market data. and if i do say so myself, i have never looked better. superderivatives introduces dgx. data done differently. 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? with xerox, you re ready for real business. [ male announcer ] this is karen and jeremiah. they don t know it yet, but they re gonna fall in love, 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. welcome to the first day of march. you re watching squawk on the street live from the financial capital of the world. opening bell in about a minute s time. three months up for the dow. four months up for the s&p and the nasdaq. you know, jim, executives grg to start to get a sense of how the quarter is shaping up, with only four weeks left in it. and the the january thing, i find that we re doing the as january goes, the rest of the year goes. but we ll start hearing all of these things remind me, just look at the components of the dow. there are so many companies that are doing well. think about a cisco, david s interview with hewlett-packard. can you imagine if meg whitman begins to get it together? that stock has been a terrible dip. so i guess i m saying that [ bell ringing ] there s the opening bell. council of foreign relations celebrating their anniversary. and at the nasdaq. a couple of names they ve not gotten to yet. up by 9%. fourth quarter beat first quarter guidance. but it wasn t as bad as feared. also keep in mind that there s a huge shortage risk in the stock. 39% of shares outstanding or short. this 9% move is partially exacerbated by this cover. what a move on this stock. inventories are lean. yes. people wanted to see that. they re not long a lot of uggs. i still believe, and i will say it again, that eric weissman will one day look at the trend and say that i want it, in the same he wanted timberland. i know this company used to trade north of $100, gets uggs back together, because it was a couple of bad years, that that brand has some staying power. i really believe that. we mentioned at the open the weak pmis across europe. the u.s. financials in today s session, and look at morgan stanley, down .9 of 1%. it has been trading as a proxy for europe of late, which is sort of interesting. back in that old role we had seen morgan stanley in before. missing analysts expectations by a mile. we re seeing a huge move in the pound. europe today is a big story. i m not sure why morgan would be necessarily reflective any longer. i don t know either. if you want to get into the return on the equity game, look at what goldman did last quarter. goldman has now exceeded it. that s a separate story. let s quickly get to phil lebeau on auto steals which will start coming out with more and more frequency. ford coming in with february auto sales increasing 9.6%. that is a little bit below the street estimate of an increase of 15.6%. again, for the month of february, the thing we re looking for is an annual sales rate of about 15.3% to 15.5 million. if it comes in in that range, people will say that s a good month. one other note, chrysler up 4% last month. guys, back to you. all right. thank you, phil lebeau. the stock moving lower there, 1.25% on ford. i like ford domestic. i ve not waiting for europe to turn. latin america doing a little bit better. but europe has got to turn in order for that stock to be a buy. speaking of europe, let s check out the action and shares of deutsche bank. this is a big move in today s session. goldman sachs saying new capital rules could force deutsche bank to move to the united states, more capital. $13 billion. depleting its nonu.s. capital. and therefore, forcing the bank to do a capital raise. that s looming on deutsche bank. the price action down reflecting this concern. this is a very strong bank. it s done a great job. i remember when jpmorgan constantly would have to say, do they have to do a capital most banks do. they do the right thing. deutsche bank needs to raise capital, they re going to do it. they re not going to hope and hope and hope. i rel elike these guys. i was surprised to see goldman really slashed it. the criticism of the european banks is reluctant to do it. in the spring of 10 or spring of 09, i forget at this point tim geithner whacked them. that was a key moment, actually, for our financial system. wells fargo. remember there was that period that every day you would come in, and bb king would do a secondary. they all did them. everybody did. you just waited and waited. deutsche bank has to do it, i understand. i m not a big fan of the european banks. i do like bbva as my preferred stock, only because they re my bank in mexico. they really know what to do. bristol-myers, just hearing you say it bbva are such a strong bank in the southeast and texas part of our country. people forget they made this brilliant acquisition. i don t really like the endless selling of its geographies around the globe. but bbva has done a lot of smart things. shorting the spanish stocks was a real mistake. shares of cablevision down another 2% after a very significant loss yesterday. yeah. not a great quarter. not a great conference call. significant increases in operating expenses for that cable company, distributor, video services and so many others, broadband. there you look at it. highly leveraged balance sheet. who is it is it espn? why does it work? there are these other cable companies the costs are going up. those stocks have been unbelievable. what s different from cablevision? you ve got to add more subscribers. they have not been able to do that. fios is a huge competitor for cablevision. also amongst businesses, they service a lot of businesses. and that also is an area where there s a good deal of competition on price. cablevision has had a harder time raising prices, passing along price increases. could it be service? i don t know. the disputes, the dish, the hopper, i mean, there s just some bad blood and it s gotten a lot of attention. the whole idea of the bundle which brings you to a much larger conversation about sports programming, and the expense of it, will it break the bundle apart. what does it mean for disney, espn getting over $5 a sub. we ll see. that will continue to be a conversation that s ongoing. let s check in with bob pisani on the floor. we ve got a secondary for a dpm. there s been a lot of secondaries recently. doesn t get much coverage as the ipo market. we re opening on the down side here. it s certainly going to be a tough morning for those who were hoping for new highs on the dow. we have a few bright spots. some of the retailers reporting earnings. gap up a little bit this morning. good numbers. best buy up nearly 6%. decker up almost 10% this morning. there s a little bit of a bright spot. overall, sour over in europe. the numbers on manufacturing data, it was disappointing. especially the unemployment numbers there, unemployment falling to its raising to the highest rate on record in europe. it s a bit of a problem here. first day of the month traditionally brings in new money. the bulls hoped it might be sufficient to move the market forward. the negative effect we re getting from the european data as well as the disappointing numbers. tough morning overall. let s talk about stocks and the spending cuts or the sequester. the end of the world is officially aligned. my e-mail has been stuffed for the last three days from traders worried about all kinds of things. guys trading home building stocks, health care stocks, travel stocks. everybody s worried about their own little universe. the guys who trade defense stocks seem the most worried. the cuts may cut at least 13% of the defense market, i find that hard to believe. i get comments from guys trading home building stocks. they re worried about the effect on consumer sentiment. remember back what happened in august of 2011, it did hurt home building. they re worried about the psychological effects of this. the travel and hotel guys who trade those stocks, they re worried that cuts in government travel are going to hurt them. the medicare providers, the hospitals and some of the hmos, they re looking at a 2% cut in medicare rates. here s the problem i ve got with the e-mails i keep getting and phone calls. when i actually look at the stock market and home building stocks and what i see is nothing. no effect. i see no decline. i see no big wholesale sell-off days where traders are day by day trying to lighten up their positions. i see none of that so far. when i ask them that, they say they re not quite understanding. what it seems is going on here is the street believes some kind of deal is going to be done by the end of march. the smart money seems to believe the cash flow is going to be significantly less than the headline or hype numbers actually are. bottom line, guys, i m still waiting to see the effects in the real market. back to you. bob, great perspective. they could come up with a deal. once you go over the cliff, you never come back again, i think bob is right. let s hend to the bond pits. rick santelli at the cme group in chicago. we ve been talking for weeks and weeks, how the treasury market does follow things like increases in equity values, pushing yields up. and then the next day it relinks from a lower yield level. perfect case in point, look at a couple of days of treasury trading, and you can see we ve moved down, we re lower on the week, lower than 188 close yesterday. we re here at 185. you open the chart up, you can clearly see how we re starting to slip and expand to the down side in yield, the up side in price. a lot of news in the eurozone. bob hit some of it. 11.9% unemployment in the 17 countries in the euro group. not good. worse than expected. even though there was some good news on the german economy. but look at all their stock markets, not doing well. politics in italy still playing out. look at the two-day chart of the euro, you can clearly see the slide. put it in context of year-to-date, futz in perspective. significant. but the big question is why. everybody says, why is the euro doing this? outside of what we just mentioned, march 7th, ecb, may lower rates. they re seeing inflation move a little bit below their targets. this is telling me that the central bank, the ecb may be considering, may be doing, but may be lowering rates. let s look at the pound. look at this 24-hour chart. just sailing lower. so the euro s going to have a fourth potential lower close on a fourth week. the pound is only on the third week. but the comp goes back, yes, show this last chart to june of 2010. jim, back to you. wow. a world of hurt. let s check out the latest in metals. jackie deangelis. happy friday. the energy complex down across the board this morning. we re looking at west texas intermediate, above $90 a barrel, but down more than 1%. brent earlier in the session slipping to a six-week low. a couple of reasons for the declines here. we re looking, of course, at concern over the sequester. but also the imf saying potentially these cutbacks could curb not only u.s. but global growth. also the most recent data out of china indicating that domestic and foreign demand slipped a bit. so a bit of a perfect storm here to send energy lower. in the metals complex, gold is regaining some of its lost ground yesterday, seeing a little bit of safe haven buying ahead of the equity session today which is lower. thanks very much, jackie deangelis. which ceo has just been added to cramer s wall of shame. plus, macy s versus jcpenney, going head-to-head in open court over domestic diva martha stewart. ron johnson takes the stand. we re live at the courthouse. the dow moves further away from the all-time high in 2007. look how apple was trading that day, $167.86. there today, it is down by almost 2%. what a ride it s been since 07. we ll be right back. 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[ male announcer ] if you re eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement plans, it could save you thousands in out-of-pocket costs. call now to request your free decision guide. i ve been with my doctor for 12 years. now i know i ll be able to stick with him. you ll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and you never need a referral. see why millions of people have already enrolled in the only medicare supplement insurance plans endorsed by aarp. don t wait. call now. it has been a double whammy this week for bill ackman. he holds a short position in herbalife which jumped sharply on naming carl icahn s designees to the board. jcpenney s shares took a hit in weaker sales. ackman is known for being a defender of ron johnson. but cramer has some other thoughts. take a listen. ron johnson is joining the mad money wall of shame. because he has got to go. ron, either stop being so darned delusional, or better yet, just stop the charade. spend time with your family in california. let somebody else take over. which would, of course, as with all wall of shame entrants, would send the jcpenney stock higher. yesterday, you were just talking about both ron johnson and andrew mason, being in neverland. yeah. when it comes to their quarters. andrew mason is out, ron johnson gets on the wall of shame. i am deeply troubled by comps. the numbers are down. down 31%. 31.7%. there is a vicious cycle down that i felt was ignored entirely on the conference call, hence the delusional. i think that has to be addressed. you can continue to talk about how se fphora is taking shares. but you ve got to take the heart of the matter into, at least address it. let s play the opposite side, though. is it a first step towards recovery, admitting that you have a problem? didn t ron johnson essentially admit he had a problem by saying, you know, we re going back to what our customers want? we re going back to sales and promotions? we re going to have a sales and promotions every week? i admit that i made that mistake. i think he i was on a panel yesterday with ryan saulbin. and they all said, once you cross the rubicon when they go up, they go up for a while, right? you put big thought into this. vikram pandit on the the former ceo of citi, on for a dramatic, i don t know, 70% decline. you get to 2, that s about all she wrote. of course, it s split. you do occasionally take people off. mcdonald s, pg&e kresce bob mcdonald had to come down. we managed to get it before he delivered the quarter, just seemed like he was doing a lot of right things. i think you re right that ron johnson admitted that it was wrong. but retail is a funky business. it can be too late to admit. there is a level where you ve lost the old, haven t brought in the new. and i still think that there would have this was a good time for him to say, look, my strategy will work. in the interim, i ve really got to bring back these old customers. as opposed to throw in at tail end of his commentary. let s get to the question here. as you know andrew mason was ousted. this brings us to the morning s question. what groupon should andrew mason buy with his $378.36 severance package. we will air your responses throughout the morning. that s telling. you re saying, the mani pedi, slice of pizza in brooklyn and brazilian in midtown. it did tend to be that in the end. that tended to be the teeth whitening. there are things on the web that you see that are like, wow, maybe i ought to go do that. look, there are a lot of people who get mani pedis. i m not denigrating the mani pedi. i don t want the brazilian. look at the customer, if it s a male name, stop sending me female offers. i ll get right on that. six months later i m still getting it. now he has plenty of time to get on it. arrivals in washington, d.c. the president, of course, holding his bipartisan, bicameral meeting at the white house. harry reid, mitch mcconnell, boehner, pelosi. closed press. we may get some comments after they re done. it wasn t long ago they were all there to discuss the fiscal cliff. right. promising a solution to that by christmas. clearly that barely happened. they are short sellers dream. when you hear there s a presser, so to speak, you ve got to go to the s&p puts. because i can t think of a time when they got together and the market went up in the last, i don t know, 18 months, two years. unless it was to unless it was rg3. even he now is like we re going to get consumer sentiment. ism on the way, and a lot more, in just a second. just enough time for six in sixty. chart indices. bountiful natural gas. they make all the equipment to turn it into gas to liquids. big data play here spunk. this stock is just reported an unbelievable quarter. morgan stanley taking wendy s to underweight. newfound mcdonald s. doing a lot of good things. and entura surgical. now, back. herb greenberg is the guy to listen to in this. omnivision. oh, my. this is apple. this is why apple s down, because they make the cameras for a lot of the apple devices. there s a pause in strength. finally, gap. look, they re calling out intermix, calling out china. great story. heavily shorted, mistake. all right. on that, let s get to rick santelli, with sentiment numbers in chicago. rick? all right. here we go. we have the final read on university of michigan sentiment index coming out at 77.6. not only is that better than our preliminary read of 76.3, but just similar to that read, it goes back to a comp of november of last year. we had 82.7. as a matter of fact, we had back-to-back october, november, that were above 80. but nonetheless, it s an improvement over the preliminary read, and it s pretty solid. the read in the market place, interest rates don t seem to be paying a lot of attention. the equity markets, dow shaved off 6 or 7, and coming off its worst levels. we ll continue to monitor more numbers at the top of the hour. back to you, carl. meantime, jim, what s coming up? i slammed the company that was in the, let s call it the hair care cosmetics business. we re going to hear the other side of the trade tonight when i slam a company, carl, it s just they put up a fight and they get their way. they get to be heard. i m trying to guess what this might be. i can t tell you. you re not going to tell me. no. and i m doing a compare of two great retailers. one has the edge on the other. i will reveal, the lawyers don t like me to mention the names of the companies. hence i m playing coy. i don t like to play coy, but really, this is one that the company sent me the product and said, when you open your eyes, they were very kind about it, but i like to give the other side its due. see you tonight. thank you. 6:00 and 11:00 p.m. eastern time. more data to digest, we ll get ism, construction spending, the sales continue to pour in. we re back in a second. 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[ male announcer ] from the way the bristles move to the way they clean, once you try an oral-b deep sweep power brush, you ll never go back to a regular manual brush. its three cleaning zones with dynamic power bristles reach between teeth with more brush movements to remove up to 100% more plaque than a regular manual brush. and even 76% more plaque than sonicare flexcare in hard to reach areas. oral-b deep sweep 5000 power brush. life opens up when you do. welcome back to squawk on the street. we are about ten seconds away from a february read of ism. if you recall, 11-month high and headline on chicago pmi yesterday. university of michigan was better than the mid-month read. takes you back to last fall. the bell rings and the survey says, construction spending for january down 2.1. that s much worse than the anywhere from down .3 to 1%. we saw it move up from original release to 1.1. this is not good. this is one of the few numbers related to housing that disappoints. ism, february, 54.2. woo! that s a pretty good number. we were looking for a number with a 52 handle. so how does this stack up? 54.2 is the best read since, going all the way back to june of 2011. june of 2011. so that s a pretty nice number. we did have a 54.1 in april of last year. prices paid, actually moved higher. i bet you there s a little energy, anxiety there. but we have seen some reversals in some of these commodities. prices pay component at 16.5. well above the january read of 56.5. quickly, we see maybe one basis point higher yield, but 10s still lower on the day, lower on the week. still under 130. the euro versus the dollar, pound still getting pounded. we ve sliced the equity losses pretty much in half. carl, back to you. all right, rick, a lot of information there. markets trying to work their way off the lows. let s get reaction from steve liesman. something for everyone today, steve. yeah. disappointing construction numbers. i m not quite sure why. they re really sort of strong to the down side, carl. and i m wondering if there was a negative maybe a weather issue related there. i honestly don t know. residential was unchanged. and we ve had just other really good housing numbers. that s a little off. and then transportation, manufacturing down, 2.9%. spending i expect to be down. lodging down 6.1%. that s a little bit of an amomly. on the other side, something for everybody. upside on the ism, with a new orders up, production is up. i haven t seen the employment number, that s down just a little bit. but still at 52.6. unfortunately ism, this cycle has not done a terrific job predicting the outlook for manufacturing. it is a good number to follow. it s one that s done over many decades, excellent job of predicting the company. this would suggest strengthening for the manufacturing sector. puts more strength for gdp. right now it s all up to the private sector. at the end of the day we ll have a decline in government spending. we ve had the tax increase and we saw some of that show up in the spending numbers. and maybe more in the months to come. so if the private sector is not going to hire, and not going to increase wages for individual employees, then i m afraid we ll have some economic problems. if the private sector does step up here with the government sector stepping down, then we have a chance at maintaining that 2% growth while we do fiscal contraction. melissa? thank you very much, steve liesman. a live shot of the white house. president obama meeting with leaders of congress right now to discuss those automatic spending cuts that could go into effect tonight at midnight. let s bring in john harwood for more on this developing story. reporter: melissa, we ve got nancy pelosi and harry reid have already arrived. i think republicans are in the process of arriving for that meeting, which is supposed to start at 10:05. nobody expects any big result, or resolution of the sequester problem out of this meeting. but it may be the beginning of the attempt of both sides to try to grapple with the impact, and where we go next. we ve got 3 1/2 weeks until the march 27th expiration of government funding, through the so-called continuing resolution. there s got to be some extension of that, or we ll have a government shutdown. it s possible that could be a venue for resolving this dispute, averting the sequester with some other kind of deal. you ve also got the debt limit coming up in may, which is an occasion that a fight republicans postponed earlier this year, but could renew again. that, again, could be the trigger for negotiations. we just have a stalemate between republicans who want to shrink government by more than they have the ability to make happen in washington, and democrats who want to preserve a level of government beyond their ability to raise the level of taxes to cover it. that s where we are. and the political infrastructure of our country right now makes it more difficult for the two sides to come together than they have in the past, melissa. thank you very much, john harwood. all right. market s pulling back with record highs this morning. we want to bring in art cashin from floor operations of ubs financials. friday might be the bulls best shot because of the first day of the month effect. fridays have been uniformly good all year long. does this turn around here? yeah, i think part of the problem was all around the globe, we saw the purchasing managers data coming in weak, weak, weak. it was weak, particularly in london. china weak, a lot of the europeans. here s why we turned here. the ism, which is the equivalent of the bmi data was stronger than expected. that was a sigh of relief even though the rest of the data wasn t that good. i have to give an asterisk to something i wrote yesterday about the beginning of a new month also. and the month of march has been kind of waffly indicator with the first day of the new month. at least in the last ten years or so. art, this week started with the italian elections having an unexpected impact on our market, it would argue, given the unexpected outcome. as the week has gone on, we sort of put it in the rear view mirror. i wonder if you expect that will come back to the fore? i think it almost has to. i think what got the markets was that this is turned into a rather slow-motion event. they thought you d begin to see day after day, if not hour after hour, something coming up. beginning to realize that these guys won t even be getting ready to convene and take office until around the 18th. now, that gives the markets, all right, let s not get too excited, we ve got a long time to look at this. as i look at it this morning, however, the currency markets are starting to get a little bit more volatile. they may come in and call the tune on these guys while everybody s waiting. we saw a big move in the sterling today, 1% move. isn t there an ecb backstop to the european situation now that mar mario draghi indicated this week that there s a floor in this situation, even with the italian elections? i m not entirely sure. but i think it was interesting to see him almost pridefully say, inflation s not been a problem for us. and hidden underneath that is, maybe deflation is. and they re expected to take a long hard look at cutting rates here, because they do need some stimulus. you saw that live shot of washington. i think rathharry reid, mcconne speaker boehner, pelosi as well. hard to believe this is meeting number one on the day where sequestration is way to go, guys, today is the deadline. nice to meet today on the deadline. it s depressing. and the house has adjourned already. so this is just a photo-op. people are gone. which says a lot about i don t know, to you, does it say a lot about their commitment to make something happen here? does that carry into the 27th and continuing resolution? that would be truly scary. this, i think, is normalized posturing that he offered the president the chance to redirect the cuts. he opted out of that because he wants to take the bludgeon effect that it was designed for, and then blame it on the other party. so the finger pointing continues. no one thinks that this will be terribly disruptive. the continuing resolution, however, could turn the country upside down. because of a shutdown, in other words? a potential shutdown, or a nearly similar effect. amazing we re having this same conversation again and again. it s like groundhog s day. we re almost a banana republ republic. it appears to be virtually ineffectual. that we re not getting anything done. you can only hope that they re working up their number one game for the continuing resolution, because that s going to be where the big fight is. is that positive for bonds? because people are worried? or is that negative for bonds because people are worried about government payments? in the short run, it will be good for bonds, because you ll get a flight to safety effect. while they think the government may cease working, they do believe it will pay its debts. so it will be safe to own treasury bills. after that, there will be some rethinking. all right. we should note we re well off our session lows right now, the dow inching towards the flat line at this point. down by about 30 points. the nasdaq has halved its losses at this point, less than a half a percent. a bounce off 1500. they bounced off 1500. yeah. thanks. now we ve got general motors out with its february sales numbers just now. we ll send it over to phil lebeau. phil, take it away. joining us from gm headquarters, here, you had a month in february, you increased sales by 7.2%. all of your brands were up on the month. but there s been so much focus on the sequester and whether or not the economy can take a hit. what were you seeing in showrooms from the consumer last month? phil, we saw some pretty decent business throughout the month. obviously some of the bad weather had an impact. even in places like the northeast that were particularly hit hard, they came back strong in the back half of the month. so, you know, we feel pretty good about that 7.2%. up over 12 on a selling day adjusted basis. we feel pretty good. your full size pickup sales up 28%. you knocked off a number of days. you re down to 97-day supply in terms of your inventory. are you noticing that the small contractor, the construction worker, are they starting to rotate more into the showroom? absolutely, phil. with housing, you know, continuing to do well, and the availability of consumer credit, we are seeing some good business there. our small business piece of our work was up over 40%. so that s consumers that are small businesses buying anywhere from one to five trucks, full-sized pickups, vans, that was up about 40%. still optimistic we have an industry sales rate in the mid $15.5 million range? yes, sir. we think this particular month is going to be in that 15.5 to 15.6, which is on the high end of what we re calling the industry for the year, which is that $15 million to 15.5. so slow, steady, gradual growth. and of course, we ll look at this and say, listening, for the first two months of the year, we ll take it. kurt mcneil for general motors joining us from the company headquarters. guys, as i send it back to you, we have one more note regarding february auto sales. toyota reporting an increase of 4.3%. that is below the street estimate of 5% for an increase. again, toyota increasing february sales by 4.3%. guys, back to you for now. phil, thanks so much for that. jcpenney and macy s going head-to-head in a manhattan courtroom over the legal rights to sell martha stewart brand of products. ron johnson is taking the stand. we ll bring you the latest headlines after this break. groupon firing its ceo andrew mason. we ll find out did the stock finally represent a real deal. [ male announcer ] how do you engineer a true automotive breakthrough? you give it bold styling, unsurpassed luxury and nearly 1,000 improvements. the redesigned 2013 glk. the next great advance from mercedes-benz. starting at $37,090. macy s and jcpenney continuing in their head-to-head battle in court over the rights to martha stewart brand of products. courtney reagan has the latest. melissa, this drama continues at new york supreme court. it s a battle hitting retailers against each other, but also big personalities. at times the testimony teaching lessons about the pitfalls of mixing business with friendship. earlier this morning we caught ron johnson, the ceo of jcpenney, talking to photographers on the way into court in the fact that he is wearing a jcpenney suit. terry lundgren testified on monday. now it is jcpenney s turn. in the first 20 minutes of testimony,ing macy s employers showed in august of 2011 before he was ceo or member of the board saying, quote, i m feeling awesome about the strategy. i need to pull off martha. she wants to do it. i need to propose a deal she can go to terry l. with and break their agreement. it is the only issue in the way of success at this point. now, on monday, terry lundgren explained his company s anger was actually directed at martha stewart and her company. lundgren thought it was more of a one-way street, martha pushing to get into jcpenney rather than a two-way street. lundgren send a congratulatory e-mail to jcpenney. the e-mail said congratulations to you and your team for telling and selling your vision for the new jcpenney. well done. and the reply, thank you, your note means a ton notice. i consider you a friend. we re actually on the same side trying to make the department store the favorite place for people to shop. i m not sure friendship is what everyone is considering at this point, or still believing that is indeed true between the parties here. johnson moments ago revealing 19,000 employees have lost the job since the transformation number. that s a number we haven t heard yet. back to you. thanks very much, courtney reagan. best buy shares getting a pop after the company released better than expected earnings. the deadline for richard schulze to offer a buyout has come and gone. here to break it down what could be next for the retailer, managing director of equity research. michael, i would love to start with you taking me through the cash flow numbers, or adjusted cash flow numbers. i assume the market positive in part on that having exceeded the previous expectations that came down a lot. are there a lot of other things that investors should know about that may make the numbers look not quite as good as they are, or are they a pure number? no, there are a couple of one-time things in there. i think in fairness, the cfo explained it crystal clear on the earnings call. but there were a couple of items. but there was accounts payable item they were able to extend payment terms, so accounts payable went up. and they had inventories go down. again, they kind of changed terms, slow-moving inventory, drew down on inventory. the net of those two things is about $325 million. so if you look at the $965 million adjusted number, $640 million of it is the pure number i think you can expect to be reoccurring, if nothing else in the business changes. that s what we should talk about, whether the business will change. that s what i wanted to come back to the number for me for. also the fact that they re not giving guidance for the fourth quarter. are things not really changing for the better in the short term? the drivers on whether this business is going to drive, stay the same or go away, are whether they can stabilize their store traffic, and whether they can stabilize margin. in order to stabilize traffic, they have made the decision they re going to price match, which sounds like it s going to knock margins down. in order to continue to drive traffic, they re going to invest. actually, i love that term, invest. they re going to spend more money on sg & a, more money on i.t., build a website and promote products. higher spending, and lower margins, typically means that cash flow number s going to come down. i think that s what we re going to see in the next couple of quarters. the bets investors are making today is they re going to have this ship turned around by christmas. i don t think that s possible. i think it s the titanic heading for the iceberg. i think it s probably going to take two or three years to turn the ship around and they ll crash into the iceberg before they can get it turned around. does it help, michael, that the comps will be easier? i m just trying to think, you re getting into best buy shares at $17 at this point. i mean, there s no scenario in which there is upside as a trade to the stock in the next three quarters? it s trading at nine times that real cash flow number, that $640 million cash flow number. that s about an 11% free cash flow yield. what the market is telling you is they think that cash flow number is stable. i m saying that cash flow number s going to go down. i think the market s overpaying for it. it will keep going up as long as people have confidence in the cfo. she is really good. give her credit. but there s only so much she can do. she can t screw around with working capital anymore. she can cut cost another couple hundred million, but i think the cash numbers come down. comes down to $400 million is what we ll see in free cash flow? it started at 640, i think it drops probably this year to about $400 million. i think that you should be valuing it on that, and then wonder if that number goes up or down. we ll see if their initiatives work next year. they were closing to taking $1 billion from private equity but felt like the terms were too stringent. not quite sure what the numbers were there. it was a preferred. i know they spoke about it on the call. should they have taken the money? private equity is making an investment, if private equity thinks they can make money. probably not. i think it was probably a take under. i doubt it was even at a $17 valuation. oh, no, i m not talking about buying the whole thing, about the $1 billion investment. oh, the convert. i would have to see the terms to answer that question. i m sorry, i don t know. that s all right. i don t know them yet either. okay. michael, great to speak with you. thanks for your time. thank you. take a look at the dow. off the lows from earlier this morning. we were down 89 at the lows. worked their way down 20 or so, currently looking at a 50-point loss, around 14,000. as cashin pointed out, a bit of a sigh of relief. talking a lot about the sequester. we are now up against it. we ll show you exactly what happens next, if a last-minute deal cannot be reached. plus the new deal for groupon, the company, the stock, now the founder andrew mason has been ousted as ceo. does mason have much more to lose other than his title? whether he should start clipping coupons for real. 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[ 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. now that groupon s board has fired andrew mason, what is next for the stock. the final tv interview as ceo was with our own julia boorstin. julia? well, melissa, mason is out. but the business hasn t actually changed since yesterday. groupon stocks has benefited from this news as investors seem a little bit relieved that the struggling company is making big changes to turn things around and saying good-bye to mason s quirky wild card management style. the stock is still down about 25% since the november 2011 ipo. as the daily deals business has become more crowded, and profit margins are squeezed. now, today, many analysts like jordan rohan are calling it a step in the right direction. but rohan still says groupon s current strategy is, quote, incomplete, that the business model may take a long time to recover. there is still a lot of skepticism. who knows what strategies the new ceo will take. but justin post writes, it does not change our cautious view on groupon s business model shift to gropon goods. groupon s most bullish analyst who had a buy in the stock before mason was fired, said this is a huge opportunity. telling us, quote, they re building a team that s going to be more focused not just on top line growth but how to grow the bottom line. we ll have to see who is selected to lead that groupon team. ted has plenty of experience with corporate fall from grace. now, there s no question whoever replaces mason faces a tough job that s really going to be in the spotlight. this might be a while before the company finds someone willing to take on that challenge. julie, i ve got a question. what are the chances of one of the interim co-ceos being the ceo? i think wall street would like to see someone new come in. i think the problem is one of the two board members at the company the entire time, taking on the ceo role, the question is do they have a different enough, or new enough perspective to really change things the way wall street would like to see them changed. lekofski probably could have changed things earlier than they were now. it s going to be interesting. mason is quite a character. i ve interviewed him a number of times over the years. i m curious if he surfaces somewhere else next. hard to believe someone with that much ambition is done at this early age. that s for sure. thanks, julia. julia boorstin. when we come back, dwindling cash flow and potential for defaults. the threat of sequestration coming down to the wire today. and the muni markets could get caught in the middle. could we be witnessing the makings of a big bear trap. mark holberg explains his theory. as the dow moves away from the all-time highs on october 9th of 07. a look at how dow component walmart was trading back on that very same day. how do traders using technical analysis streamline their process? at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we ve applied for a patent. i m colin beck of fidelity investments. our integrated technical analysis is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. [ male announcer ] from the way the bristles move to the way they clean, once you try an oral-b deep sweep power brush, you ll never go back to a regular manual brush. its three cleaning zones with dynamic power bristles reach between teeth with more brush movements to remove up to 100% more plaque than a regular manual brush. and even 76% more plaque than sonicare flexcare in hard to reach areas. oral-b deep sweep 5000 power brush. life opens up when you do. 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? on a friday, about an hour into trading, some of the stories we re talking about. the ism coming in better than expected. up more than a point in february to 54.2. the results indicating the fastest pace growth in manufacturing since june of 2011. apple shares falling almost 2%. a new 52-week low. down about 38% from the september high. the vix hovering around 16. in what has been a roller coaster week. harsh federal spending cuts known as the sequester are set to kick in at midnight tonight. what happens if they cannot reach a deal? steel liesman explains. today, a series of across the board federal spending cuts set to take effect that almost no one in washington wants. but they appear powerless to avoid. known as the sequester, the cuts would reduce government spending by $85 billion this year, and by $1.2 trillion over a decade. what nearly everyone hates is the cuts are across the board. programs favored by republicans and democrats. defense gets whacked by 7.3%. domestic programs by more than 5%. now, a few things are exempt, social security, medicare, war funding and other poverty programs. emergency assistance for disaster, prisons, energy, education all take a hit. the sequester exists because washington couldn t agree on spending cuts in 2011, so they created an ax that would loom over lawmakers and force an agreement on sane esaner, more cuts. some now say the automatic cuts may be the best option that s out there. the countdown, the final hours before sequester cuts take effect. we take a closer look at what could be impacted. the cuts representing a little over 2% of the budget. the next guest asks is the danger being overbilled. are we making too much of this? well, i think we re making probably a little too much of it. it s certainly a problem and you can t ignore the fact it s going to take a lot off gdp growth. but on the other hand, i think the administration has clearly tried to press their point by exaggerating the impacts, by suggesting the impacts might be more severe than the effect will be. i would imagine that the impact to local governments would be most felt. already their finances are under pressure, chris. what do you foresee of the impacts locally? it s a mixed bag. for one thing, all states are going to be influenced differently. the commonwealth of virginia, for instance, is going to be impacted more than any other state in the country. illinois will not be impacted nearly as much. then you have the ways in which they are impacted. vendors, small businesses, that provide services to the federal government, federal government employees. you ve got military installations, military expenditures, va hospital. the range in which states and local units of government can be impast is enormous. let s take, for instance, the example that you gave up in the commonwealth of virginia. are we seeing this in the bond market, bonds issued by virginia? no, we re not seeing it as of yet. the commonwealth is terrifically strong from a credit perspective. they have great reserves. and they have their balance in pretty good shape. i think if this were to take place, and to go on for an extended period of time, i think investors over time would begin to have some concerns. but i don t see any big push on the part of investors to sell states that are a little bit more exposed and buy other states that are a little less exposed at this point in time anyway. everybody s using the metaphor, the frog in the pot of water, you ll feel the effects as they bundle over time. the moment we start to worry about tax receipts at a local level, because of economic hardships within house haldould that is a ways off, right? that will happen over a course of time if it persists. which i expect it will be. but you ll gradually see it over time. you ll see it in terms of sales tax revenue. you ll see it in terms of income tax revenue. and so it will have its impact. and you re going to see it mostly in areas with high concentration. virginia isn t the only one. texas is another state. missouri is another state. so you ll see these disparate impacts across the nation in terms of the revenue. but that will come with a time lag. i heard somebody today say that if you want to look at where it might hit the worst, virginia is obviously a good example, but areas like ft. hood, right? where you have a heavy military base of employment, which is clearly they ll feel the effects if not worse then at least first, correct? that s correct. the problem with the military is they re taking a disproportionate share of the sequestration cuts. there s been a lot of discussion over the fact that over the course of time, military personnel are going to actually have to have cuts in payment, cuts in compensation. so they re not just going to lose cost of living increases, they re actually going to have compensation cut. that means a lot less spending, it means lower sales tax, it means a variety of very negative economic impact. so you ll see that clustered around military installations, and in states that have more military presence. chris, we re going to leave it there. thank you for joining us today. thank you very much. we want to take a look at apple today. that is a new 52-week low for apple. we talked all about how much it s been down since the september highs. couple that with what the dow has done interday. we were down 89. we are just below the flat line. it is amazing, because we re just off the session lows for apple, which was a 52-week low on the session. on the nasdaq composite we ve been inching higher. we compare the losses dramatically, but apple still continues its decline. we do see the turn in financials for one helping us regain that flat line. another stock we re looking at interday is best buy, now actually in negative territory, surprisingly. the stock was up as much as 5%, 5.5% in the early going. conference call perhaps hammering home adjusting free cash flow, maybe closer to $640 million. not bad still. and then some questions about the first quarter. but interesting, because that stock had been looking like it had a big rally behind it. what a turn-around. a lot of weird. it s a friday. rebalancings going on. a lot of crazy charts interday today. if you re a dow theorist, you should be happy after the transports hit a new all-time high yesterday. which one of the trannies would you add to your portfolio? we ll go through some names. and as we said, groupon s andrew mason is out. and what it means for them going forward. the author of the biggest deal ever joins us live a little later on. 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[ male announcer ] yes, you could business pro. yes, you could. go national. go like a how do you keep an older car running like new? you ask a ford customer. when they tell you that you need your oil changed you got to bring it in. if your tires need to be rotated, you have to get that done as well. jackie, tell me why somebody should bring they re car here to the ford dealership for service instead of any one of those other places out there. they are going to take care of my car because this is where it came from. price is right no problem, they make you feel like you re a family. get a synthetic blend oil change, tire rotation and much more, $29.95 after $10.00 rebate. if you take care of your car your car will take care of you. a closer look at the transport sector on the heels of hitting new highs yesterday. the next guest is neutral on the sector but said there are pockets of opportunity to make money on certain stocks. brandon is an analyst at barclays capital. good morning to you. good morning. is this about core growth? is it about coal bottoming? is it about oil prices coming down or a combination of all those things? i think you hit it on the head here. i think more importantly it was very difficult to make money in transportation stocks last year. they definitely lagged from a portfolio perspective. a lot of people are looking for opportunities that could be levered to future growth. i think the transports stocks really screamed favorably early this year. where is the sweet spot? is it strictly on rails? and if so, which names? the rails give you really good characteristics in a slow growth economy which we re definitely in right now. there s really big pockets of opportunity here, and the biggest one we see right now is the shale energy development. we re pumping a lot of oil out of the ground right now in north america, oil that didn t used to be there. there was a lot of urgency to get the oil at $90 a barrel. you know, out to the refiners that are currently locked into brent pricing with global crude prices much closer to $110 today. so a lot of opportunity to move that traffic down to the coast. brandon, here s a question, though. can coal bottom and actually recover in terms of volumes, at the same time as shale? can you have those two stories firing on some number of cylinders at the same time? or is it a black-and-white sort of thing, a give-and-take? coal markets have been really challenging the last 18 months. we just had michael ward doing some meetings with us. that company does think that coal markets are near bottom. looking towards maybe a little bit warmer weather this summer, more normalized weather patterns u we could see a little bit of a bounce in coal in 2014. longer term, natural gas prices that are very low do challenge that outlook. but i think the offset here is that with cheap energy prices and cheap oil, we re seeing derivatives from this and more chemical manufacturing, more automotive manufacturing, so a lot of good industrial growth coming off of this that could offset the longer term coal headlines. gdp barely positive as we now know. if the sequester, continuing resolution, nightmare unfolds even further, to what degree does your worry about full year economic growth start to weigh on these individual names? well, you know, we ve had quite a rally. that s why we re really focusing in on specific stories. the railroads, again, give you the defensive characteristics, a lot of industrial growth. we like union pacific quite a bit. we like csx on the idea that coal could be near a near term bottom. other segments in transports, ecommerce is a big factor, so we like fedex on that basis. but broadly, i think the transportation stocks from a fundamental perspective are going to have a lot of difficulty if we can t get out of the 2% growth environment. brandon, thanks for joining us. thank you. still ahead, keeping an eye on macy s versus jcpenney. ron johnson about to wrap up after being on the stand this morning on the battle over the rights to martha stewart. we ll take you live to the courthouse with the very latest next. 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[ male announcer ] e-trade. investing unleashed. nobody knows. take a look at the dow. really struggling to maintain a footing in positive territory. we re at the flat line now, 14,055. take a look at shares of apple, a new 52-week low. that new low precisely is 431.88. this, of course, as the nasdaq composite is also making signs of a turn-around in today s session. the nasdaq is now down by about 6 points, or .2 of 1%. let s get to the santelli exchange, to rick at the cme in chicago. hello, rick. hi, carl. of course, let s see. what topic are we going to talk about. march 1st. not that many hours from 11:59 p.m. i think we have to talk a little bit about the sequester. much of what i m going to say is just my opinion. but not all of it. i want to start out with somebody else s opinion, who happened to write an op-ed in the journal yesterday. phil graham, before we put it on the screen, graham, rugman, holings, last time we went through this, was in the mid- 80s. i was actually in the 30-year bond. i can quite accurately remember how the interest market paid a whole lot more attention to that issue but let s read something that phil graham wrote. let s put it on the screen. even after the sequester, the federal government will spend $15 billion more than it did last year and 30% more than it spent in 2007. why is this important? steve liesman did some good work this morning showing a bit of a nuance. and the nuance is, once you had the credit crisis, we saw that spending ramped up rather dramatically. and you ll recall, february of 09 wasn t only the rand, it was home modification, the stimulus. since then, it has moderated a bit. if you look at that moderation, it s a pretty big drop. but no matter what, the absolute level is still higher than when we started which is the point of phil graham s op ed. we now live in a world where if an average family says, i have to cut back on my spending, the bre bre bre breadwinner isn t making what he used to. but you spend less than you did last year. in government, whatever the growth rate is let s say you put in place, we re going to grow education 4% every year and next year, you re talking about a 2% cut. you re still spending 2% more. it s baseline politics. this is totally my opinion. but it s obvious the president and the white house are not big fans of the house republicans and vice versa. but here s the point, some of these stories say that the president doesn t want to agree to certain ways the sequester could be more palatable in terms of how the cuts are divvied up. i understand this is a political issue. he doesn t want a sequester at all. but everybody elected the president. they also elected everybody in the house. they may not like each other, but is it really right to not mitigate the potential intensity if there is any with the sequester in the betterment of the country? we elected our officials to work with the officials we elected, not the officials they wish were there. i m sorry, doesn t make a lot of sense to me. and adds phil graham said in that op-ed yesterday, it might have been a little testy in the mid 80s, but there was a whole lot more dialogue about how it was less testy for the country as a whole. come on, guys! work for the country. back to you. thanks, rick. groupon ceo andrew mason was fired. this morning s squawk on the tweet, what groupon should mason buy with his search package? we have some of yourens spos straight ahead. no two people have the same financial goals. pnc works with you to understand yours and help plan for your retirement. visit a branch or call now for your personal retirement review. 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. you know it can be hard to lbreathe, and how that feels.e, don t seem so.far away. copd includes chronic bronchitis and emphysema. spiriva helps control my copd symptoms by keeping my airways open for 24 hours. plus, it reduces copd flare-ups. spiriva is the only once-daily inhaled copd maintenance treatment that does both. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. 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(announcer) scottrade. awarded five-stars from smartmoney magazine. andrew mason ousted as ceo of groupon. but does mason have even more to worry about besides losing that corner office at the company he co-founded? robert frank takes a deeper look at mason s wealth. good morning. andrew mason was a very unusual ceo, including his retirement package. company filings say he will only get his salary for six months after he leaves. that salary was $756.72 for an entire year. so his severance package is around $376. i guess we call that a lead rather than a golden parachute. it s been a rapid fall in wealth for mason who just over a year ago was a papered billionaire. let s look at the numbers. before groupon s ipo, he sold around $28 million in stock. so he ll be fine, or at least he ll still be a millionaire but not like he was before. just after the ipo in november of 2011, his shares were worth more than $1.3 billion. mason was celebrated as the tech world s latest billionaire. then came the long slide. today his shares are worth around only $200 million. an 85% drop in wealth, losing more than $1 billion. and that remaining $200 million only on paper so it could rise or fall, depending on what happens with the company next. the big lesson here, take money off the table as fast as you can, especially when your severance is only $376. could you even buy a gold watch for that? no. that s the reasons, robert. melissa speaks from experience. how much gold can you buy if it s 1,600 bucks an ounce? certainly not a rolex. and you look at the co-ceo, he used to be worth at one point more than $3 billion. now he s down to around $500 million. so his loss was more than $2.5 billion in wealth. we look at these stock prices and chart them every day. but we don t realize what it means for the personal wealth losing $1 billion or $2.5 billion, pretty soon you re talking real money. for these people, it s an astounding, rapid loss in a short period of time. right. as long as they haven t pledged something against it, though, it s still an enormous amount of money. that s when they really get into trouble, taking your stock and put it up security against a loan of some kind. absolutely. and the big blow-ups we saw during the crisis were people who margined their stock. we don t really see that with these guys. what s interesting about this latest wave of social media entrepreneurs is they took money off the table early, cashed out either before they went public or during the time of the early days of going public. we re always complaining about executives who run a company into the ground and exit with a very large parachute. in this case, you might say i m not saying the punishment fits the crime but it is appropriate to where he led the stock, fair? i find andrew mason so refreshing. the candor of his letter and this compensation package that says, i screwed up and i m not getting bailed out with a golden parachute. another reason why we should respect him and we all look forward to seeing what he s going to do next. robert, good numbers. thanks for that. speaking of groupon, our squawk on the tweet today, as we said, ousted from the helm of the site after another earnings loss. brings us to this morning s squawk on the tweet question. what should mason buy with that $378.36 severance package? john writes, mason should take a 50% discount on a carnival cruise and half off a resume update on linkedin. andre writes, andrew should take out ron johnson for dinner and celebrate their wall of shame appearance. the two of them really andrew mason could have made it onto that wall. yeah. but he s out. we ll see you tonight. yeah, a lot to talk about in options action. big market moves, especially in the british pound. yeah. we ll talk about that tonight. good weekend to all. see you monday. here s what you missed if you re just joining us this morning. welcome to hour three of squawk on the street. here s what s happening so far. the political system is broken. we have a republic not representative of or responsive to the public. we need redistricting reform. we need integrated and open primaries. we need campaign finance reform. we need lob being referral and we need term limits. as well as the liquidity problem, we still have a solvency problem and above all, we have a growth problem. unless we are getting the growth figures up, then we re in probably. is american express going to get hurt by this? on. in each case, when you do the components of the dow, you can make a strong case that we re not done. would you buy the stock? anytime somebody comes off the wall of shame this was the shortest time ever on the wall of shame. i still worry there has to bea a business beyond revenues. hard to believe this is meeting number one on the day where sequestration is scheduled way to go, guys. it s depressing. and the house is adjourned already. so this is just a photo op. the bet investors are making today is they re going to have this ship turned around by christmas. i don t think that s possible. i think that it s the titanic heading for the iceberg. good morning. we re lye here at post 9 at the new york stock exchange on the friday. want to get a check on the markets which had been around the block and back. down 89, slowly have worked our way back to the flatline, 25 on the dow right now. if you re keeping track on whether we re going to end the week positive, the flatline for the dow is right at 14,000, we are in the black for the week. s&p up almost 3.5. nasdaq up almost 5. shares of target upgraded. firm says that canada dilution is beginning to peak. apple, not a good day. 52-week low despite the turnaround in the broader markets, stock losing more than $8 a share earlier in the session. down more than 30% in the last six months. the dow, as we said, inching toward those highs once again. might not be a good thing. that s what one market expert says. we ll find out why he says there s a bear market trap waiting for investors. andrew mason is out at groupon. we ll find out what the man who wrote the book on groupon has to say about the firing. and ron johnson, the newest addition to cramer s wall of shame, taking the stand. find out what he had to say in today s testimony. first up, help wanted at groupon. the stocks rallying today after if board fired mason late yesterday. still far from that ipo price of $20 back in 2011. eric lefkofsky is one of the ceos. listen to what he told us a few months about the company s performance. when the company was growing and growing quickly again, this is a business that has over 12,000 employees. it s in nearly 50 countries and it s not even four years old. i think when a business is growing that fast, it s hard to know at any point whether you should sell or double down your investment. frank senate is the editor-in-chief of time-out chicago. good to have him back on the show. good morning. i wondered for a long time about whether this day would come. it s finally here. what does it mean? i think the last time we talked, we were talking about how it was the last bullet in groupon s gun to change the story for investors. gives them a little bit of time. we were asking the question, is it the man or is it the model? and groupon has to be hoping it s not both. they ll get a chance to answer that question. they need to innovate like crazy with all that money they re investing in palo alto, berlin and their third innovation center and get a story for investors that s coherent, that makes sense, what are we as a company, where are we going? if we can get on track and start turning a profit, can we grow it so the stock price can get near the strike price. for so long, the discussion was about tactical moves, right? how fast do we grow internationally? with the model itself essentially staying the same. now we re asking much more strategic questions. some of the upgrades and downgrades, to be fair, revolve around what is this company? do you know what it is? what it wants to be? no. that s the problem. every quarterly earnings call they miss the numbers and they have a different story. now it s daily deals. now it s good. the one thing they do have in their back pocket that they can capitalize on is that big penetration with mobile. consumers are buying on cell phones at a rate that no other e-commerce company does have. if they can pull themselves out of the tailspin with that, they have a story to tell. i don t think they re interviewing me to run the company. but that s what i would focus on. would you be trying to take a smaller cut in order to get retailers to play this game or would you be trying to bring all of your metrics up as quickly as you could by grabbing money wherever you can? i think one of the things you have to do first is cut costs. they re way over cost structure in europe as compared to the u.s. you need to get the international under control on the cost side. and i think you do have to get some high-profile people in to give consumers the idea that this brand still matters, that it can still deliver value for them. things like the nordstrom deal, if they can get big deals like that to say we re still we re, we re still potent, giving you things that you want, that helps them. but ultimately, they have to innovate their way out of this. i don t know remains to be seen if they can. jeff bezos has had his own challenges. but you have to feel like he at least won some battle here today. yeah. all he needed to do was make sure they didn t take this new space away from him. he made a tactical move to try to take market share away from them, keep them from running away with it. living social is in rough shape. but mission accomplished for him. if you think about bezos, at the beginning of amazon, investors were slamming him. but the one thing about him is he maintained a very consistent story for years. he would come on cnbc and any network and say, look, we re investing for long term, we don t care about he had a story that he was consistent on and it paid off. groupon s story has been all over the map. they need to figure out the core story and stick with it. one of the long-term lessons about the story, if google offers you almost $6 billion for a company that s two years old, think about it? yeah. i think i was saying, take it every day and twice on sundays. the question that in writing the book, the question i got asked the most, do you think they should have taken the money? and i think my answer is always, i would have taken the money. and i think your answer is you would have. i don t know anybody outside of that office that wouldn t have taken the money. there are questions around, could they clear d.o.j. and all this stuff? but at the end of the day, that would have been a nice payday and they wouldn t have had to deal with this tailspin. everybody loves a comeback. we might be entering a new chapter for groupon. always good to talk to you. thanks again. thanks, carl. macy s and jcpenney continuing their courtroom brawl with ceo ron johnson taking the stand today. our courtney reagan is outside the courthouse in lower manhattan with the latest on that and what he s telling photographers, too. good morning. reporter: good morning to you, carl. we re taking a brief break right now, at least the court is, from jcpenney ceo ron johnson s testimony. as he testifies in macy s s case against both jcpenney and martha stewart living on new media. macy s s lawyer ted grossman is doing the questioning right now of johnson. when he arrived at the courthouse earlier today, he was in a good mood, joking with photographers, telling them he was wearing a jcpenney stafford shirt and tie. but once he got inside, the mood turned serious. his e-mail correspondence began to be uncovered. jcpenney was well aware of martha stewart s deal with macy s. in august of 2011, steven roth wrote to ron johnson saying, quote, lunched with your new best friend martha. he loves you. she has an exclusive with macy s which will be a major impediment. lots of issues but lots of desire. johnson remrid to roth, macy s s deal is key. we need to find a way to break the renewal right in spring of 2013. then the deal was announced that jcpenney would take a 17% take in martha stewart living omni media. johnson wrote an e-mail to bill ackman saying, i think the idea of an investment has made this a much more significant event, a mere licensing agreement might have been greeted with a yawn. the combination truly created news. we putter ri in a corner. normally when that happens, you get someone on the defensive and they make bad decisions. this is good. and this case is getting very good. we ll bring you more throughout the day as we get more. johnson will be cross-examined later in the day by his team. i have to get back inside. i don t want to miss a thing. thanks, courtney reagan. when we come back, why investors should be wary of the markets reaching all-time highs. but first, rick santelli is watching the treasuries. the currency markets are unreal. we re going to talk a little fx and we re going to talk a little bit about a topic i ve talked about a dozen times austerity with matt maley, miller dayback. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity s analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i m meredith stoddard and i helped create the fidelity guided portfolio summary. it s one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. and sounds vying for your attention. so we invented a warning you can feel. introducing the all-new cadillac xts. available with a patented safety alert seat. when there s danger you might not see, you re warned by a pulse in the seat. [ tires screech ] it s technology you won t find in a mercedes e-class. the all-new cadillac xts has arrived, and it s bringing the future forward. take a look at the sector we don t get to very often, the s&p footwear sector, relatively flat today. up nearly 6% this year. one stock helping the sector is deckers after an interesting call last night. josh lipton at the flash desk with more on that. deckers outdoor ripping higher this morning. the footwear maker best known for its uggs brand forecast a surprise first-quarter loss but offered investors a stronger full-year outlook. analysts say the reason can be chalked up to the fact that inventories guided lower. and deckers outdoor up about 14% right now. down about 40% in the past 12 months. the dow and the s&p continue to flirt with some of these record levels. what happens if, in fact, we hit this new high? is it a bear market trap? mark jolbert is with market watch digest and joins us this morning. good morning. we have some people writing in saying, please, please do not hit a record high if we can end the week flat, we ll be happy. how dangerous is it if we go over 14,164? first, looking at the data, they looked at all occasions in the last 70 years in which the stock market reached a new high following a bear market. when it retains its previous high and breaks out into new all-time high territory, how much longer does the bull market last? speaker boehner is speaking outside the oval office. the president got his tax hikes on january 1st. this discussion about revenue, in my view, is over. it s about taking on the spending problem here in washington. i did lay out that the house is going to move a continuing resolution next week to fund the government past march 27th. and i m hopeful that we won t have to deal with the threat of a government shutdown while we re dealing with the sequester at the same time. the house will act next week and i hope the senate will follow suit. thanks. as expected, a brief comment from the speaker after the meeting with pelosi, mcconnell, the president, harry reid today. there had been some hopes among bulls that some sort of rough outline of a deal might come as a result of that meeting. clearly the two sides entrenched on the entitlements of the democratic side, taxes on the republican side. john harwood has some insight as to what those statements meant. reporter: carl, i think those bulls who were expecting a deal today need to lay off the stimulants and think about where we are right now. we are at a fundamental disagreement that john boehner just outlined, republican believing they ve done all the tax increases they can or they re willing to, say it s all about cuts now. and the president is saying, we need more deficit reduction but it has to be a mix of tax revenue and spending cuts. that could change and the white house is counting on beating down republican opposition as the impact of these cuts becomes clear over the next several weeks. i think their hope is that john boehner will come to a microphone at some future point and say, we said we weren t going to increase taxes but what we re doing is tax reform and we re not raising rates. it might raise a little revenue. that s one potential way out. the other way out, of course, is for the administration simply to be unable to get the republicans to move, in which case we re going to be in budget trench warfare for quite a long time. is there a sense, john, that the white house is using these municipalities who will suffer as a result of all that as some sort of human target? and is that fair to what degree do republican leaders eventually feel that pain throughs and reach a compromise, as the white house would hope? reporter: i wouldn t say it s human target. but the white house view many republicans agree with this is that we have reached, if not the end of the road, close to the end of the road on what you can do on the smaller discretionary parts of the budget. there are some more that can be gotten. but nobody wants defense cuts of this magnitude or domestic discretionary cuts of this magnitude. that became the fallback then they couldn t make the big deal. and i think the white house is happy and that s what their two-week p.r. campaign has been about, to make plain to the american public that belief, that is that real people are going to be hurt by this, it s not just fat that s going to be cut or foreign aid that s going to be cut. and then try to use that reality and that pain to produce a deal which they think is more sensible, which would involve some cuts in the big entitlement programs which have been sacred cows for a long time in both parties, really. and not just cut them to the exclusion of everything else but cut them in combination with some loophole closing that raises more revenue. but we have a ways to go before this plays out. march 27th, which is john boehner referred to, is when the government funding runs out. and he was trying to send a pre-emptory signal that republicans aren t going to be put in the box of being accused of a government shutdown. and then we have the debt limit in may. john, thank you for being there with that. mark, it doesn t seem fazed by it in the short term. still mildly positive. getting back to mark hulbert. i apologize for that, mark. you were citing some research out of ned davis, which tells you essentially, hit a new high is not necessarily a bad thing, at least in the short term? well, that s right. they looked at all instances over the last 70 years and came up with 13 in which the market recovered and reached a new all-time high after the bear market that preceded them. the market continues going higher for a year more on average. there s a wide variability in the data. the shortest period of time came in 2007 in may of that year, the market reached a new high. the final high came only 2% later in october of that year. that s the statistics on the one hand. the other thing i was pointing out is that the sentiment is a greater source of worry about what would happen. there s already an excessive amount of bullishness among the advisers we track. and the thought is that at least the worry from a contrarian point of view is that a new high might bring in those few remaining skeptics who are on the sidelines and that would be the final gasp of that euphor euphoria, that huge billishness you ll see at a top, at least according to contrarian theory. you always have great, broad outlines and then you say in your words, don t get carried away by a certain mention, you mentioned the wide variability in the data. this is only looking at 13 instances, right? that s right. your statistics professor would say any conclusion based on a sample of 13 is probably tentative at best anyway. but nonetheless it does suggest that we haven t had any instance in which i guess you could say over those 13 instances, you ve never had a case where the market rolled over and died the moment it hit a new all-time high. so i suppose from a short-term point of view you wouldn t have to be all that worried. but if that was your only basis for putting your money in a market where the market reached a new high, i d sigh that was on relatively thin ground. let s hope no investors are going by that alone. it s a great piece, mark. thanks for your time. thank you. best buy shares surging more than 40% since it was reported the company is trying to be taken private. what s next for the company? here s a look at where dell was trading back on october 9th of 2007. we ll be right back. 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[ engine revs ] what?! quattro!!!!! looking at a live shot of the white house briefing room where we re told the president will speak at 11:35 a.m. eastern time, in about 11 minutes. most likely on the sequester, no word on whether he ll take q & a. but when he speaks, we ll take it live as it happens. best buy, up sharply, then in the red, now positive again after the fourth-quarter numbers. mary thompson was on the conference call this morning and is here with all the highlights. in addition to reporting those better-than-expected results, the struggling electronics chain says a hucbuy offer never materialized though it did reject an offer to take a minority take in the firm. here s the company s ceo, hubert joly. during the process, dick introduced to the company several impressive private equity sponsors who all expressed interest in an investment in best buy. if cost of these investments, however, were determined to be excessive and dilutive to our existing shareholders. therefore the company concluded to not accept these offers. he went on to say management is now solely focused on transforming best buy. the turnaround s two primary goals, increase same-store sales and improve profitability across all its platforms. profitability did not improve in the fourth quarter as adjusted earnings declined from last year. best buy managing to beat estimates by a dime on stronger-than-expected revenue even as same-store sales declined. in the u.s., helped by strength and mobile phones, tablets, offsetting strength that it saw in europe. joly outlined a six-point plan aimed at improving sales at its stores even as the firm seeks to take out additional costs. back to you. a few minutes left in the trading day in europe. we ll get the close there. you should see some of the action on euro/yen in the past couple of hours. that s a live shot of the white house briefing room. the president will speak in about 11 minutes. [ male announcer ] how do you engineer a true automotive breakthrough? you give it bold styling, unsurpassed luxury and nearly 1,000 improvements. the redesigned 2013 glk. the next great advance from mercedes-benz. starting at $37,090. 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? the european markets closing now. and closing for the week, a little bit of red around the continent. the data showed eurozone unemployment once again, a record high, 11.9% in january. manufacturing in the region contracting in february as well. take a look at the major european markets, london, paris, germany, spain, italy. the euro falling to its lowest levels of the year against the dollar. back below 1.30. some say that s an important level psychologically. euro against the yen, that s a crazy intraday chart as well. 121.13. the pound dipped below 1.50 for the first time since july of 2010 on the uk pmi which was abysmal. disappointing chinese manufacturing data weighing on the miners. let s get to bob pisani who s watching not just europe but our own markets too. that was a major problem. we were lower and then things turned around with our own data. take a look at the dow jones industrial average. the magic if you remember, 14,164 would be a new historic closing high. we have to close above that. you see the drop there early on. we are so desperate to get to new highs, you can almost feel it. my concern is we re all going to be so exhausted by the time we get there, there s not going to be much left once we get there. carl mentioned the pluses and minuses here. earlier in the day, the weaknesses put up helping and hurting for the markets here. new money for the month was a big help overall. better ism and consumer confidence numbers were a major factor. but hurting, personal income numbers and the european manufacturing and unemployment numbers hurt us. in terms of the market movers, very impressed with the financials today. in a week or two, we ll get the results of the yearly stress test, this is a yearly result. some of the banks are moving nicely to the upside here. bank of america, citigroup, the important thing is if you pass these stress tests, you might be able to redeploy some capital. guys like wells fargo are already about 2% dividend yield. but bank of america, citigroup, they re not. regions financial, suntrust, these guys are at sub-1% dividend yields. maybe these guys, if they pass the test, will be able to raise their dividends. i think that s maybe a factor in why some of these stocks are moving. downside leaders, everybody s worried about the sequester but i keep saying where is the evidence that the market is freaking out? i don t see any stock movement. again, this is the group that would be affected the most, the ones that are going to get the 2% cut in medicare, universal health, health management. these are the big hospital, humana. these are small declines compared to what the worry is out there, the end of the world e-mails that i keep getting. i keep saying, let s see real evidence that investors are actually dumping them. i still don t see them right now. finally, i think one of the major problems we re having right now is the marginal buyer is really heavily invested. hedge funds are heavily invested in stocks and the marginal retail buyer has been very bullish in buying. here s something very interesting. i look at the american association of individual investors sentiment surveys. big change this week. only 28% of all their members were bullish. last week, almost 42% this is a 14-point change. that s very heavy. i think it s a good piece of news because all of a sudden there s a dip in bullishness by people who are bullish the retail investors most invested in the market. these are more active investors overall. 50i6 be i ve been concerned aft people that are active in the market, they re all into stocks right now. we need additional buyers to come in and move the market forward. i think it s good that there s a little bit of skepticism that s emerged and this survey ended on wednesday. timely data. thanks, bob. let s get to rick santelli in chicago with a discussion about austerity and growth. rick? absolutely. before we get to our guest, i m going to read and put on the screen something he recently wrote. austerity is not supposed to create growth. it s supposed to lay groundwork that will let them grow later. talking about world economies. welcome, matt maley from miller tabak. great to be here. let s start with explain to our audience, radio and tv exactly what you meant because i really agree with you. and it s a hard concept. everybody looks at austerity as horrible. they say it needs to be followed by growth. austerity by its very quote in nature needs to hit a level of you can t bounce if you re not bouncing off something solid. give me your take. i just think that it really stood out to me this week because we heard some of the senators asking the question of chairman bernanke saying asking him, didn t austerity not work in trying to create growth in europe? and my thought was, of course it didn t. why would anybody think austerity would create growth? as you read in my comment, it lays the groundwork. and it is a painful time, it s a painful period and a painful process. but it s something that needs to be done and it s something that our people or our leaders in washington aren t willing to even scratch the surface on. now let s look towards europe. we ve had a lot of economic news and we ve had a lot of foreign exchange movement in the last 24 hours, which is an issue you brought up midweek saying, i m looking at the equity markets but i m not really seeing this thing play out in the currencies. that s changed a bit. tell me your thoughts. well, the currency markets first a lot of people focus on the change in the yen in the last two weeks. but really the other currency markets like the euro, that started changing its trend back in the beginning of february, four or five weeks ago, same with the dollar, the euro going down and the dollar going up. and they ve both broken key resistance levels in the case of the dollar and support level today in the euro. and that s such an important part because of the carry trade, such an important indicator of net liquidity in the system. that s been showing that it s not been as plentiful as it had been for a couple of months. and so that when i look let me interrupt you there a minute, matt. when i look at the euro, all of my fx traders on the floor are tapping me and whispering in my ear, they wanted to short the euro because they do think the ecb is going to make some policy shifts regarding the interest rate potentially lowering it. your thoughts? well, that s going to be a major problem. and it goes back and forth because it s a major problem for the markets near term but it s the right thing to do longer term because these austerity programs some of these problems they need to face, they re actually looking at them. unlike what we re doing in the united states. not trying to make any headway on those at all. bob pisani, we only have 20 seconds left, i love what he said a few minutes left. everybody s telling me how horrible this may or may not be or they re woirried about this. but the markets aren t showing anything. to me that s the saddest thing of all. my interpretation is because they ve wallpapered over the termites. ben bernanke helping put his thumb on the scale of low interest rates. they don t show up in the markets because the markets aren t really the markets. your final thought on that, sir? yes, the market is being run by liquidity. and the problem is that the liquidity is like the underlying structural problem is too much debt and too much leverage. until we cut out that tumor, the chemotherapy the fed is helping the market with can only last so long. at some point if you don t cut out the tumor, that chemotherapy does more harm than good down the road. matt, have a great weekend. thanks for being a guest on the santelli exchange. carl, back to you. thank you very much. let s get a quick check on energy from jackie deangelis. reporter: wti seeing a more than 1% decline, under $91 a barrel. brent crude seeing about a 1% decline as well. the rise in the dollar traders telling me having a lot to do with this. if you look at the dollar index, 8 2 handle. this rise in dollar momentum slowly creeping up on us and taking its toll on crude. also traders watching the equity markets very closely saying if we end up in the red, it s the first day of the month. that s going to be a significant factor in terms of trade next week. the metals are lower as well, particularly copper. bob mentioned the data out of europe but also weak data out of china, taking its toll on copper. and gold was higher. but changing directions now. back over to you. here is the president on the sequester. as you know, i just met with the leaders of both parties to discuss a way forward in light of the severe budget cuts that start to take effect today. i told them these cuts will hurt our economy, they ll cost us jobs and to set it right, both sides need to be willing to compromise. the good news is the american people are strong and resilient. they fought hard to recover from the worst economic crisis since the great depression and we will get through this as well. even with these cuts in place, folks all across this country will work hard to make sure that we keep the recovery going. but washington sure isn t making it easy. at a time when our businesses have finally begun to get some traction, hiring new workers, bringing jobs back to america, we shouldn t be making a series of dumb, arbitrary cuts to things that businesses depend on and workers depend on, like education and research and infrastructure and defense. it s unnecessary and at a time when too many americans are still looking for work, it s inexcusable. now, what s important to understand is that not everyone will feel the pain of these cuts right away. the pain, though, will be real. beginning this week, many middle class families will have their lives disrupted in significant ways. businesses that work with the military, like the virginia shipbuilder that i visited on tuesday, may have to lay folks off. communities near military bases will take a serious blow. hundreds of thousands of americans who serve their country, border patrol agents, fbi agents, civilians who work at the pentagon, all will suffer significant paycuts and furloughs. all of this will cause a ripple effect throughout our economy. layoffs and pay cuts means people have less money in their pockets and that means they have less money to spend at local businesses. that means lower profit, that means fewer hires. the longer these cuts remain in place, the greater the damage to our economy. slow grind that will intensify with each passing day. so economists are estimating that as a consequence of this sequester, we could see growth cut by over .5%. it will cost about 750,000 jobs at a time when we should be growing jobs more quickly. so every time that we get a piece of economic news over the next month, next two months, next six months, as long as the sequester s in place, we ll know that that economic news could have been better if congress had not failed to act. and let s be clear. none of this is necessary. it s happening because a choice that republicans in congress have made. they ve allowed these cuts to happen because they refuse to budge on closing a single wasteful loophole to help reduce the deficit. as recently as yesterday, they decided to protect special interest tax breaks for the well-off and the well-connected and they think that that s apparently more important than protecting our military or middle class families from the pain of these cuts. i do believe that we can and must replace these cuts with a more balanced approach that ask something from everybody. smart spending cuts, entitlement reform, tax reform that makes the tax code more fair for families and businesses without raising tax rates. also that we can responsibly lower the deficit without laying off workers or forcing parents to scramble for child care or slashing financial aid for college students. i don t think that s too much to ask. i don t think that is partisan. it s the kind of approach that i ve proposed for two years. it s what i ran on last year. the majority of the american people agree with me in this approach, including, by the way, a majority of republicans. we just need republicans in congress to catch up with their own party and their country on this. and if they did so, we could make a lot of progress. i do know that there are republicans in congress who privately, at least, say that they would rather close tax loopholes than let these cuts go through. i know that there are democrats who d rather do smart entitlement reform than let these cuts go through. so there is a caucus of common sense up on capitol hill. it s just it s a silent group right now. and we want to make sure that their voices start getting heard. in the coming days and the coming weeks, i m going to keep on reaching out to them, both individually and as groups of senators or members of the house and say to them, let s fix this. not just for a month or two. the greatest nation on earth does not conduct its business in month-to-month increments or by careening from crisis to crisis. and america s got a lot more work to do. in the meantime, we can t let political gridlock around the budget stand in the way of other areas where we can make progress. i was pleased to see that the house passed the violence against women act yesterday. that is a big win for not just women but for families and for the american people. it s a law that s going to save lives and help more americans live free from fear. it s something that we ve been pushing on for a long time. i was glad to see that done. and it s an example of how we can still get some important bipartisan ledgelation through this congress even though there are fiscal arguments still taking place. and there are other places we can make progress. i m going to keep pushing for initiatives and high-quality preschool for every thacfamily wants it. i m going to keep pushing on the minimum wage and imadministration reform and improvements on our transportation sector and pushing for sensible gun reforms because i still think they deserve a vote. this is the agenda the american people voted for. these are america s priorities. they re too important to go unaddressed. and i m going to keep pushing to make sure that we see them through. with that, i m going to take some questions. i ll start with julie. how much responsibility do you feel that you bear for these cuts taking effect? and is the only way to offset them for republicans depend on revenue or do you see any alternatives? look, we ve already cut $2.5 trillion in our deficit. everybody says we need to cut $4 trillion. which means we have to come up with another $1.5 trillion. the vast majority of economists agree that the problem, when it comes to deficits, is not discretionary spending. it s not that we re spending too much money on education. it s not that we re spending too much money on job training or that we re spending too much money rebuilding our roads and our bridges. we re not. the problem that we have is a long-term problem in terms of our health care costs and programs like medicare. and what i ve said very specifically, very detailed is that i m prepared to take on the problem where it exists, on entitlements and do some things that my own party really doesn t like, if it s part of a broader package of sensible deficit reduction. so the deal that i ve put forward over the last two years, the deal that i ve put forward as recently as december is still on the table. i am prepared to do hard things and to push my democratic friends to do hard things. but what i can t do is ask middle class families, ask seniors, ask students to bear the entire burden of deficit reduction when we know we ve got a bunch of tax loopholes that are benefiting the well-off and the well-connected, aren t contributing to growth, aren t contributing to our economy. it s not fair. it s not right. the american people don t think it s fair and don t think it s right. i recognize that speaker boehner s got challenges in his caucus. i recognize that it s very hard for republican leaders to be perceived as making concessions to me. sometimes i reflect, is there something else i could do to make these guys i m not talking about the leaders now. but maybe some of the house republican caucus members not paint horns on my head. and i genuinely believe that there s an opportunity for us to cooperate. but what doesn t make sense and the only thing that we ve seen from republicans so far in terms of proposals is, to replace this set of arbitrary cuts with even worse arbitrary cuts. that s not going to help the economy. that s not going to help growth and it s not going to create jobs. and as a number of economists have noted, ironically it doesn t even reduce our deficit in the smartest way possible or the fastest way possible. so in terms of going forward, my hope is that after some reflecti reflection, as members of congress start hearing from constituents who are being negatively impacted, as we start seeing the impact that the sequester is having, that they step back and say, all right, is there a way for us to move forward on a package of entitlement reforms, tax reform, not raising tax rates, identifying programs that don t work, coming up with a plan that s comprehensive and that makes sense? and it may take a couple of weeks. it may take a couple of months. but i m just going to keep on pushing on it and my view is that ultimately common sense prevails. but what is true right now is that the republicans have made a choice that maintaining an ironclad rule that we will not accept an extra dime s worth of revenue makes it very difficult for us to get any larger comprehensive deal. and that s a choice they re making. they re saying that it s more important to preserve these tax loopholes than it is to prevent these arbitrary cuts. and what s interesting is speaker boehner just a couple of months ago identified these tax loopholes and tax breaks and said we should close them and raise revenue. so it s not as if it s not possible to do. they themselves have suggested that it s possible to do. and if they believe that, in fact, these tax loopholes and these tax breaks for the well-off and the well-connected aren t contributing to growth, aren t good for our economy, aren t particularly fair and can raise revenue, why don t we get started? why don t we do that? it may be that because of the politics within the republican party, they can t do it right now. i understand that. my hope is that they can do it later. and i just want to repeat, julie, i think it s very important to understand, it s not as if democrats aren t being asked to do anything either to compromise. there are members of my party who violently disagree with the notion that we should do anything on medicare. and i m willing to say to them, i disagree with you because i want to preserve medicare for the long haul. and we re going to have some tough politics within my party to get this done. this is not a situation where i m only asking for concessions from republicans and asking nothing from democrats. aim saying everybody s going to have to do something. and the one key to this whole thing is trying to make sure we keep in mind who we re here for. we are not here for ourselves. we re not here for our parties. we re not here to advance our electoral prospects. we re here for american families who have been getting battered pretty good over the last four years, are just starting to see the economy improve. businesses are just starting to see some confidence coming back. and this is not a win for anybody. this is a loss for the american people. and, again, if we step back and just remind ourselves what it is we re supposed to be doing here, then hopefully common sense will sounds like you re saying this is a republican problem and not one that you bear any responsibility for? julie, give me an example of what i might do. i m trying to clarify the question. what i m suggesting is i ve put forward a plan that calls for serious spending cuts, serious entitlement reforms, goes right at the problem that is at the heart of our long-term deficit problem. i ve offered negotiations around that kind of balanced approach. and so far we ve gotten rebuffed because what speaker boehner and the republicans have said is, we cannot do any revenue, we can t do a dime s worth of revenue. what more do you think i should do? i just want to clarify. if people have a suggestion, i m happy to this is a room full of smart folks. zach? mr. president, the next focal point seems to be the continuing resolution that expires at the end of the month. would you sign a c.r. that continues the sequester that continues to fund the government? and have you truly reached the limits of your persuasive power? is there any other leverage you have to convince the republicans, convince folks that this isn t the way to go? well, i d like to think i ve still got some persuasive power left. let me check. no, look, the issue is not my persuasive power. the american people agree with me approach, that we should have a balanced approach to deficit reduction. the question is, can the american people help persuade their members of congress to do the right thing. and i have a lot of confidence that over time, if the american people express their displeasure about how something s working, that eventually congress responds. t sometimes there s a little gap between what the american think and what congress thinks. but eventually congress catches on. with respect to the budget and keeping the government open, for our viewing audience, to make sure that we re not talking in washington gobbledygook, the extension of last year s budget into this year s budget, to make sure that basic government functions continue, i think it s the right thing to do to ensure that we don t have a government shutdown. that s preventable. we have a budget control act. we agreed to a certain amount of money that was going to be spent each year. and certain funding levels for our military, our education system and so forth. if we stick to that deal, then i will be supportive of us sticking to that deal. it s a deal that i made. the sequester are additional cuts on top of that. and by law, until congress takes the sequester away, we d have to abide by those additional cuts. but there s no reason why we should have another crisis by shutting the government down in addition to these arbitrary spending cuts. you would sign a budget that continues to fund the government even if you don t zach, i m not going to i never want to make myself 100% clear with you guys. but i think it s fair to say that i made a deal for a certain budget, certain numbers, there s no reason why that deal needs to be reopened. it was a deal that speaker boehner made as well and all the leadership made. and if the bill that arrives on my desk is reflective of the commitments that we previously made, then obviously i would sign it because i want to make sure that we keep on doing what we need to do for the american people. jessica? mr. president, to your question, what could you do couldn t you just have them down here and refuse to let them leave the room until you have a deal?
also bill gates, elon musk and stephen hawking are all warning that computers could get too smart. but are the dangers of artificial intelligence being overblown? i ll talk to a real expert. and bernie sanders proposed free college for all in the united states. could it ever work? probably not, but there is another solution that could. then a call for civil disobedience not for civil rights or social justice. the ever-controversial charles murray will lay out his case. don t miss this one. but first here is my take. on monday the rightdavid cameron gave his first speech after being re-elected to his high office. confronting a world of challenges from greece s possible exit from the euro a massive migration crisis on europe s shores ukraine s perilous state, russia s continued intransigence, the advance of isis the continuing chaos in the middle east. cameron chose to talk about a plan to ensure that hospitals in the uk would be better staffed on weekends. okay. that s a bit unfair. leaders everywhere including in the united states understand that all politics is local, but spending a few days in britain last week, i was struck by just how parochial it has become. after an extraordinary 300-year run, great britain has essentially resigned as a global power. over the next few years, britain s army will shrink to somewhere around 80,000. a report from the royal united services institute predicts that the number could get as low as 50,000 which the daily telegraph points out would be smaller than at any point since the 1770s. david rothkoff notes it would mean great britain s army would be about the same size as the new york police department. no wonder then that britain has become a minor, reluctant ally in the air strikes against isis. its 30 year-old tornado fleet of planes is a generation behind the american planes the f-22s that it flies alongside. the royal navy that once ruled the waves no longer operates a single aircraft carrier, though they do have two under construction. a similar story is true of other elements of britain s global influence. in cameron s first term the foreign office budget has been cut by more than a quarter and further cuts are likely. theb bc world service, perhaps the most influential arm of the country s global public diplomacy, has shuttered five of its foreign language broadcasts and the entire organization has seen its budget slashed with more cuts probably to come. why does this matter? because on almost all global issues britain has a voice that is intelligent, engaged, and forward looking. it wants to strengthen and uphold today s international system one based on the free flow of ideas, goods, and services around the world, one that promotes individual rights and the rule of law. this is not an accident. britain essentially created the world we live in. in his excellent book god and gold walter russell meade points out in the 16th century, many countries were poised to advance economically and politically. the hans yachtic league the low countries, france spain, but britain managed to edge out the others becoming the first great industrial economy and the modern world s first super power. it colonized and shaped countries and cultures from australia to india to africa to the western hemisphere of course, including its settlements in new york america. had spain or germany become the world s leading power, things would look very different today. there is a paradox readily apparent to visitors to the uk. london continues to thrive as a global hub, increasingly cosmopolitan and worldly. more than a third of londoners were born outside the united kingdom, and this government has been more than willing to travel around the world petitioning for investment in the city whether it be chinese, russian, or arab. that s fine as a strategy for an aspiring safe haven, but britain is not luxembourg. it is even now a great global power with the talent history, and capacity to shape the international order, which is why the inward turn of the united kingdom is a tragedy not just for them but for all of us. for more go to cnn.com/fareed and read my washington post column this week. and let s get started. we have a lot to talk about with a terrific panel, so let s get right to it. ian bremer is the president of the ewe ray sha group, a political risk consultant. the author of super power: three choices for america s role in the world. danielle plet ka is from the american enterprise institute. david miliband was britain s last labor foreign minister. he s now the president and ceo of the international rescue committee. and yes, i diddon rose is the editor of foreign affairs and once worked in the clinton national security council. david, you have been to iraq and to lebanon recently, in the last few months. when you hear these stories about isis now being able to take over another town in syria, take over ramadi what do you think? two things really come to mind. the first was said to me across all sections of iraqi society. i was in the kurdish region at the time and they said very clearly tem the choice for sunni communities is between ex-baathists and isis and the absence of a legitimate sunni representation that really commands confidence in the sunni communities is debilitating the fight against isis. the second thing obviously is as the syria war goes on the choices get worse and the dangers of inaction get clearer and clearer. the third aspect is the sunni community does not trust at all what they regard as the shiite government in baghdad. i think what you re seeing here is that isis success is not just a tribute to its own abilities, but to the fact that it s an opportunistic infection on a body politic both in syria and iraq with severely promised immune systems. the really problem is not isis it s the lack of any kind of political order in which a competent, aggressive radical group like isis can make such headway. until we fix that larger political problem, we re not going able to stop isis. the real question is do we want to or are we able to really address the larger problem of political order in iraq and syria? danielle this is a great sectarian struggle. we tried in iraq. we spent ten years. we hand picked the government and the sectarianism bubbled through and is essentially destroying the country. should we really try again in syria? it seems to me so dreadfully unfire suggest, first of all, that we failed terribly in iraq. when we left iraq in 2011 we were not failing. there was comity not perfect, but between the shia and the sunni and the shia and shoeunni have lived in the middle east for a long time. in their tiff, this narrative is detrimental to our interests. gideon says we can t fix it and, of course it s answer is well no we can t fix it but we have a stake in the solution and that s the challenge for us. when people say to me oh they ve been fighting for a millennia. a, they haven t been fighting for a millennia. b, we care even if we don t care about the hundreds of thousands of people who are dying around the region being tortured being raped, are being kidnapped, are being solgd, even if we don t care at all about that as americans, we still care about the fact groups like isis, al qaeda, al qaeda in the arabian peninsula, al nusra which is benefiting in syria, is rising up. ultimately they come for us. do we care ian bremer? you have a new book but also a time international cover store in which you poll americans as to whether they want to go around fixing the world s problems and what are the results? well the good news is that there really is space for a debate here that americans are all over the map in terms of whether they believe we need to live up to our values be more of a global policeman, lead if otherwise there would be a vacuum and thos that want to pull out. but there s a problem here. there s a huge generational divide. the younger you get, the more you have americans saying we do not want to touch these things and the problem you have is that the candidates while they are at least starting to really debate some of the foreign policy issues in way that in 2012 the election really didn t the willingness to actually stand up and talk about the costs, talk about what would be required to truly take a leadership role in helping to build a coalition, fix the iraqi army defeat isis the same people are saying we must defeat isis are saying absolutely no boots on the ground and that just does not stand. but the problem with the independent america, quote, unquote, thesis that ian in the end supports is that you may not want to have anything to do with them, but they ll end up having something to do with you. and in an interdependent world, remember more than 50 years since jfk declared interdependence, the idea that america can have the blessings of globalization but none of the burdens does not add up. and i think that s the real choice that america faces because it cannot enjoy all the fruits of being a leader of the global economy, including economic but not only that without bearing those burdens unless there is leadership from america for a rules-based international system then you will have a vacuum. when you have a vacuum you have danger. that s the simple i do admit i feel passionately about this because seven beneficiaries of our services lost their lives outside italy and so the consequences of inaction the consequences of the vacuum are that people we re serving are having their funerals today and that really speaks to very very deep american values as well as interests. let s just talk about where that vacuum hits though. there s no question that it s a much worse world order if no one is providing that leadership and the americans are best situated to do so. but the fact of the matter is that isis is a much greater threat in the region, a much greater threat to europe than the united states. the americans are the ones with the energy production they re less interested in these things. the americans are not being affected by the refugee crisis in a way that the turks the jordanians the lebanese the europeans are, and, frankly, the willingness of the saudis and others in the community to not only send their boys to war but also to be willing to say we ve got a problem with radical islam within our countries and we have to actually deal with that. we have to cut off these clerics. if they re not prepared to do it i m just saying you have a much harder argument to make. i agree with you, but if you don t have a credible decision by an american leader that s really going to give you that kind of outcome, then the least you can do is not lie about it. danielle isn t that fair that this is first and foremost an arab problem. the arabs should be taking care of this. as i said before we can posit, we don t care about these arabs, we don t care about your guys in italy. okay. fair enough. i m sure seven people were killed in new york state as well. that is the challenge here is to understand that even if you want to profess indifference callous indifference to what s happening and say isis is an arab problem, even the sunni/shia is a muslim problem, each time to comes back to bite us. we will have to switch gears when we come back because another big issue people have been talking about has been the british elections. there is an argument that the labor party moved too far left which is one of the reasons why it last it did that under one ed miliband. i m going to ask his brother, david miliband whether he will take over the reins of the labor party when we come back. moment, thinking about people? why are we so committed to keeping you connected? why combine performance with a conscience? why innovate for a future without accidents? why do any of it? why do all of it? because if it matters to you it s everything to us. the xc60 crossover. from volvo. lease the well equiped volvo xc60 today. visit your local volvo showroom for details. daughter: do you and mom still have money with that broker? dad: yeah, 20 something years now. thinking about what you want to do with your money? daughter: looking at options. what do you guys pay in fees? dad: i don t know exactly. daughter: if you re not happy do they have to pay you back? dad: it doesn t really work that way. daughter: you sure? vo: are you asking enough questions about the way your wealth is managed? wealth management at charles schwab. we got the new tempur-flex and it s got the spring and bounce of a traditional mattress. you sink into it, but you can still move it around. now that i have a tempur-flex, i can finally get a good night s sleep. when i flop down on the bed, and it s just like, ah, this is perfect. wherever you put your body it just supports you. like little support elfs are just holding you. i can sleep now! through the night! 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( spinning tires ) he doesn t need your help. until he does. three cylinders, dual overhead cams and 50 horsepower. go bold. go powerful. go gator. get 3,500 dollars off select gators at a dealer near you. another big issue people have party when we come back. labor party moved too far left and we are back with ian bremer danielle pletka david miliband and gideon rose. right after the british elections elections, j.k. rowling tweeted i wonder what david miliband is thinking of these elections. tell j.k. rowling, did the labor party under your brother who won narrowly in a contested labor party race for leadership against you, did he take the party too far left? i think he bet and the party bet that this was an economic change election and, in fact it was an economic security election and at some level it s relatively straightforward what happened. there s many layers to it. in scotland obviously you can see political fragmentation of a very serious kind. the rise of the scottish national party, but essentially economic security was the key argument and economic risk was the danger that labor failed to mitigate. is that good nution or bad news for hillary clinton? she presumably will be the candidate of economic security and a degree of continuity. this is a lesson for hillary clinton if you want. she s tacking very far to the left. she s nervous about her left flank in the country. she recognizes who exactly is going to turn out, who is going to be energized, and so she s taking a series of positions that are rather different from the hillary of i don t know last year and i think that s very fraught with risk for her actually because at the end of the day people do value security and i think they also value a genuineness in a candidate who isn t sort of john kerry style flip flouping around based on what they think is going to win them the next primary. you were just in asia what are you hearing in terms of concerns about china? it does seem as though china s flexing its muscle in the south china seas but tame aggressively courting india, trying to present itself as the kind of inevitable economic super power of the region. one interesting point tied to the hillary question is when you go around the world and ask you who they want to be the next leader, you know elites everywhere are saying we re happy with hillary, not chinese leadership. they didn t like the pivot to asia. they didn t like hillary s containment consents the way they perceived it. it will be interesting when we started talking about foreign policy for 2016 but there s no question china is the one country in the world that actually today has a global strategy. not the united states. the fact that they are creating all of these institutions like the brics bank they re planning to spend over a trillion dollars both on infrastructure and equities to align other countries economically toward the chinese long term. the americans have not had a response to that and i think that unnerves a lot of american allies in the region who unlike a lot of other countries like britain really want to see a lot more america in their part of the world and they re not getting it. the british election was not about let s talk about european leadership. it wasn t about the world. in asia modi s india, abe s japan, they re quite concerned that the united states is not consistent and is not ultimately committed to them and i think that s an interesting challenge. which is why the united states simply has to has to pass not just trade promotion authority but the transpacific partnership to show that it is not a wall that it actually cares about maintaining and reviving the liberal international order and sustaining it that it has created and benefited from. presumeablypresumably this is also the reason we can t get overly involved with the middle east. the problem with the pivot is we didn t do enough of it and we didn t back it up and we managed to get trapped into backward-looking olive tree conflicts rather than forward-looking lexus concepts to use tom freedman s old terms. in your dealings as foreign minister, what was your sense of the chinese? do you think they are trying to kind of upend the international order? no i think they ve studied very carefully the history of how hegemonic powers have declinened and rising powers have gained. they worry actually about what american quote, unquote, dexlin is going to mean and i m actually a strong supporter of the asian pivot, one of the last ones and i think it should have been done with europe. you can t pivot if the middle east is on fire. europe certainly can t pivot if in fact thousands and thousands of refugees are arriving streaming through italy which is taking more than 40% of these boat people. you can t ignore it. at the same time you ve got to have the bandwidth and we in the united states don t have the military resources. the real tragedy behind the pivot is even if we wanted to even if we had the will, even if the middle east wasn t on fire we don t any longer have the necessary resources to put towards a fully resourced pivot in asia. we re spending 70% of nato if we don t have the resources, nobody has the resources. that s exactly right. i don t buy that. i think the problem is one, less of resources and actual capabilities than of will and attention and the fact that sort of in effect we take for granted not just the benigness of the american order and recognition of that but also the persistence of it and americans have a sort of imperial privilege that they need to check, and they need to make clear to the rest of the world that this order is good it benefits the united states and the snorldworld, and it s going to be going forward for generations to come not just generations in the past. i think we re capable. 37% of the world s defense budget spent by the united states but the problem is the pivot to asia was run by hillary clinton, by tim geithner by a series of folks that did asia. tom donlnell and others. john kerry is not an asia guy. that s a fireable offense in my experience. if you don t have leaders that will engage in consistency with a president that really cares that strategy matters, then the result you will get is people saying you can t do this stuff. may i have at you both for one second on the defense budget. you know you need to understand that we are spending a smaller and smaller part of a smaller and smaller pie so the notion that we re spending any particular percentage needs to understand the pie is much smaller. we spend 50% of our defense budget on personnel. we don t have the carriers. we don t have the attack ships. we don t have the refueling capabilities. we don t have the new technology that we need to actually be in asia in the way we need to to contend in the middle east as well. the military budget is becoming like the budget of all american institutions which is largely devoted to pensions and health care. well said. with a small appendage at the end. we have to stop. thank you all very much. wonderful conversation. we ll do it again. up next germany offers a free college education to anyone who qualifies. bernie sanders says the united states should do the same. we ll see if that makes any sense. ) mmm, this beneful healthy weight is so good. i mean how can this be low- calorie? how is that even possible? an i feel good. lean, strong. .ah.you re gonna find out just how strong when we wrestle. look at you, you have no idea what s coming. come on. .make your move. (vo) beneful healthy weight, a delicious, low-calorie meal your dog will love. with wholesome rice, real chicken, and accents of vegetables and apples. beneful. healthy with a side of happy. my name is mary molina and i m a pipeline engineer for pg&e in the sacramento region. new technology is being used in all facets of the company and what we do. pg&e is employing these technologies as an investment to the system for the long run. we re not just going to roll up and go home because we live here and we work here and we care about the work and we care about doing it right. we all have the same goals to make the system safe and to make the community safe. together, we re building a better california. now, for our what in the world segment. this week the vermont senator and presidential candidate bernie sanders introduced a bill that would make four-year public colleges and universities tuition-free. it is a national disgrace that hundreds of thousands of young americans do not go to college not because they are unqualified but simply because they cannot afford it. the cost of college in america has skyrocketed to more than 13 times what it cost in 1978 far outpacing inflation and even health care costs as bloomberg points out. student loan debt is now over $1 trillion and it has more than tripled in the past decade. other countries like germany and denmark are offering free college education for all sanders says so why can t the united states? take germany, for instance. students can get a free education at any of the country s public universities some of which are among the best in the world. even foreigners don t have to pay tuition. there were almost 200,000 foreign students enjoying a tuition-free and debt-free deutscheland education in 2012 including over 4,000 americans. how on earth can the germans afford all of this? mainly through high taxes, though the concept of college in germany is more bare bones in some ways compared to the united states. the four-year full-service residential college experience with a range of extracurricular activities is an anglo american idea. as rebecca schuman has pointed out on slate, german universities don t have billion dollar student union buildings or huge sports facilities like their american counterparts. and there isn t much in the way of student housing since a lot of german students commute to school. there s also less academic advising in germany, a more hands-off approach with students schuman says. so you can get a prestigious degree for free at a german university but the experience might not match the vibrant, dlab ra tiff wide ranging experience that one can get on an american college campus. but is there a smarter way to help expand access to the american style of higher education? michael crow the president of arizona state university for the last 13 years, has some very interesting ideas in his recent book. he s hoping to bring quality education to the masses like never before in the 21st century. similar to how california state universities changes education in the 20th century. crow has allowed a lot more students to enroll at arizona state giving access to those who normally wouldn t go to college. to help meet all that new demand at reasonable cost he s supplementing classroom teaching with smart uses of technology like the online e adviser system where students can plan out their education and view a dashboard that tracks their progress in realtime. thanks in part to that technology crow says the school s four-year graduation rate went up 20% between 2002 and 2010. arizona state is also offering a full set of courses online so that students who can t make it to campus aren t excluded. the online revolution in education has just begun. the courses and experience are going to get much better and data analysis will allow educators to better customize each student s individual experience. in a way, there are probably two paths to solving america s education cost crisis. the first, sanders relies on government to somehow foot the bills or rein in the costs. the second relies on technology to produce innovation efficiency and transformation. my bet is on technology but it won t be enough. it s still very important for state governments to fund state universities which are the real highways to the middle class in america. state funding has been declining for decades, and it s still way down years after the recession. technology won t solve that problem. only politics can. next on gps, elon musk bill gates, and stephen hawking. it s tough to find three smarter guys and they re all issuing dire warnings about something they say could be disastrous for human life as we know it. what is it? i will tell you when we come back. if you re taking multiple medications does your mouth often feel dry? a dry mouth can be a side effect of many medications. but it can also lead to tooth decay and bad breath. that s why there s biotene available as an oral rinse toothpaste, spray or gel. biotene can provide soothing relief and it helps keep your mouth healthy too. remember, while your medication is doing you good a dry mouth isn t biotene, for people who suffer from a dry mouth. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what s up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. no artificial flavors, colors sweeteners preservatives, and no artificial smiles. because clean dressings, taste better. stephen hawking told the bbc it its development could spell the end of the human race. elon musk said it was our biggest existential threat. big gates says it s a huge challenge. when three people that smart are that worried, i d perk up. so what are they concerned about? artificial intelligence computers growing past the point where humans can control them. now, there have been amazing advances in so-called ai in recent years. ibm s watson winning jeopardy was just the start. now mit professor andrew mcafee says watson will soon be the world s best medical diagnose stition. google and others have their self-driving cars. that all sounds benign so what are all those smart guys worried about? well who knows what form the threat from ai would take, but over the years movies have given us some out there ideas. there was hall the computer in 2001: a space odd si of who kills all but one astronaut. and then there was sky net in the terminator hell bent on eliminating the entire human race. will fiction become fact? i asked jeff hawkens to come answer that. he is the chairman of the board of the redwood neuroscience institute which hopes to understand human cognition and apply that to computers. jeff pleasure to have you on. it s a pleasure to be here fareed. so what do you make of this debate and what is your response to people like stephen hawking and elon musk who say this is the thing we should be the most scared of going forward in this sort of brave new world of technology. i don t think there s a real threat here at least not in any time in the foreseeable future and the fears that are coming out are a bit more related to science tucks and popular culture than the real science and technology. there s a couple of basic concerns people have but i think one of the core things that people think about is they think intelligent machines will be like human. they imagine them being like you and i and doing our jobs and having faces and having emotions. and having the same kind of desire for, frankly, control and domination yes. and you say no. why? because if we were to recreate humans if that was possible then that might be a threat but machine intelligence is not about that. the concern is let s be clear, the machines will keep learning and learning and they ll get smarter than us and people s evidence for that is ibm s deep blue or watson that they can now beat the smartest human being at chess or jeopardy or whatever. we already live in a world like that. everybody is smarter than somebody else in something. so we have expertise. you re smart about international politics and i m probably smart about brains. and we re comfortable with that right? and this fear though there is a fear that somehow a machine that gets intelligent will somehow get more intelligent and make new machines and there will be an idea called a runaway intelligence explosion. this is nonsense. brains take a long time to train. you don t just be born intelligent. you have a raw capability. we have to go through school for many many years. what we become intelligent about is what we re trained on. intelligent machines are not some god-like thing that becomes instantly intelligent. so the real question we want to ask ourselves, is there some existential threat is the term elon musk used, a threat to the existence of humanity that something we re doing today that we couldn t undo. and the answer is no. not even close. maybe 50 or 100 years from now we might have another problem or maybe 30 years we might think about it. but are we doing anything today that s dangerous that we should step back and go we shouldn t do that? i can t see it at all. it s like we re building machines just like computers and they learn and it s not like human-like at all. what s the big benefit to the world? this is almost an impossible question to answer. if you asked in the 1940s you asked the people building computers what were going to be the benefit of building computers, they would say we can build math tables and which is what they were built for, world war ii rockets. and they first became commercially exciting when ibm adopted it for business finance and accounting. we re going to go through the same learning experience now. it s easy to say we can apply intelligent machines to the world s data problem. we re awash in data and we can t have people looking at all the data whether it s medical data security data. there s a ton and ton of data and we need machines to sort through them and look at them as a human would and say i see the patterns i see what s going on this is how we should act upon it. that certainly will happen. where it goes beyond that is really hard to say. i have my dreams about it but we re going to have to see how it plays out. jeff hawkins, pleasure to have you on. it was a pleasure fareed. thank you. up next the u.s. federal code of regulations is over 170,000 pages long. is that statistic alone enough to make your blood boil to make you want to rise up against your government? well that s what it does for my next guest. the provocative charles murray. flex and it s got the spring and bounce of a traditional mattress. you sink into it, but you can still move it around. now that i have a tempur-flex, i can finally get a good night s sleep. when i flop down on the bed, and it s just like, ah, this is perfect. wherever you put your body it just supports you. like little support elfs are just holding you. i can sleep now! through the night! (vo) change your sleep. change your life. change to tempur-pedic. why do we do it? why do we spend every waking moment, thinking about people? why are we so committed to keeping you connected? why combine performance with a conscience? why innovate for a future without accidents? why do any of it? why do all of it? because if it matters to you it s everything to us. the xc60 crossover. from volvo. lease the well equiped volvo xc60 today. visit your local volvo showroom for details. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what s up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. july 4th will mark 239 years since the declaration of independence and my next guest says it s time for a new declaration against the government a declaration of resistance he calls it. he wants american citizens to rise up in protest of their government s ways. why? it s not for the reasons you probably think, but i will let him explain. charles murray is the author of such provocative, trofer sham books as the bell curve and coming apart. his new book is called by the people:s rebuilding liberty without permission. so what is the great cause you want people to rise up in rebellion against? ordinary people can t live their lives as they see fit anymore. they live under a constant presumption that they need permission so that if it s somebody trying to run a small business or a family building a deck behind the house or a community trying to get a new playground for their kids they constantly have the government coming up and saying no you can t do this you have to do it that way. we re going to fine you 5$5,000 for that. i m not so worried about the big corporations and i don t want to get rid of the reg lationzs that are important and necessary, but the lice of people are being constantly impeded by stupid, pointless regulations. that s the thing i want to do something. the number of regulations you point out has grown astronomically. if you want to talk about the total pages in the federal code of regulations, year up to 175,000 pages now. and that s not as telling to me fareed as what happens if you go out and just ask somebody who runs a small business. how does regulation affect your life? and the answer you re going to get is it makes my life miserable. so since the 1940s with this regulatory state rising the united states has become the richest, most dynamic, most technological advanced country in the hit of the world. secondly i look at our lives and we have cleaner air, safer coal mines, cleaner water. what s the big deal then? what s the big deal? look, point number one, i am in favor of regulations that take smokestacks boiling out noxious smoke and regulating the hell out of them. that s fine with me. coal mines safer, that s fine with me, too. is there a way to get the good regulations without the bad. you point out for example, it makes sense you should have some rules about stairways so that people don t fall off, that there should be some kind of railing. there should be a railing there. but there s a regulation that says if the railing is 42 inches high, you will be fined as per osha regulation 1910.23e. how do you avoid that but still have safe coal mines? that s where you have come to my proposal which is to say that you have a way to find back and i put it in terms of legal defense funds. and these are not legal defense funds that just defend the innocent. they defend people who are technically guilty of violating a pointless regulation and, again, this is a fund for ordinary people. it s not for big corporations. so what happens is you are being harassed by a bureaucrat for silly reasons. the defense fund says the bureaucrat, we are taking this person s case. it will not cost them a penny. we will litigate it to the max. we re going to make as much work for you as we can, and when you finally find that he was in violation and fine him we re going to reimburse the fine and i want this done not with one or two cases. i want it done with hundreds. i m talking about a large fund. to put it in terms i think an average person can understand suppose you re speeding on an open stretch of highway, you re going eight miles above the limit you point out, i m taking this as your example, and you say the cop pulls you over. almost certainly he s doing it or she s doing it because they need to reach their quota or the county needs a little bit more money and they have been told go out and write some tickets because your argument is there is no harm done in that kind of slight irregularity. you would then fight back. let me give you let me extend the analogy. the only time you get picked up if you re going five miles over the speed limit is if you re on a deserted stretch of highway. then they might do that. if you re on an ordinary interstate 70% of the people are going 6 miles over the speed limit. at that point the state troopers do not pull you over they only pull over the people going crazy fast or driving erratically. they wait until there is an actual harm done and, fareed that is my whole goal not to wipe regulations off the books, but to drag the bureaucrats kicking and screaming into a common sense enforcement where they have to marshal their resources against case where is real harm has been done and when no real harm has been done ignore it. always a pleasure to have you on. thank you. next this weekend is the unofficial start of summer at least in the united states. it s the season when many people s minds turn to travel. you probably would like to go somewhere where you are unlikely to be killed right? if that s the case stick around. i will tell you exactly where you should go in a moment. on. around. making sure you pay the right price for a new car just got a whole lot easier. introducing the kelley blue book price advisor. the powerful tool that shows you what should pay. it gives you a fair purchase price that s based on what others recently for the same car and kelley blue book s trusted pricing expertise. it all adds up to the confidence that you ll get a great deal. that s just another way kbb.com helps you make a smart new car decision. female announcer: through memorial day at sleep train, get up to four years interest-free financing or save up to $400 on simmons beautyrest and sealy posturepedic. even get four years interest-free financing on serta icomfort and tempur-pedic. plus, free same day delivery set-up and removal of your old set. when brands compete, you save! but this special financing offer ends memorial day at sleep train. sleep train your ticket to a better night s sleep tomorrow is memorial day in the united states and it brings me to my question of the week. the united states outspends all other countries in the world on its military by far, but which of the following countries has the highest percentage of active military personnel? is it the united states india, jordan or brunei. stay tuned and we ll tell you the correct answer. this week have the last time i will remind you my new book is just out and perfectly timed for graduation season. in defense of a liberal education, it s basically my thoughts about what kind of skills you need to prosper in today s world both in terms of your career but also in terms of your life. so buy it gift it above all, read it. and now for the last look. have you ever spun a globe, closed your eyes and dropped your finger promising to visit whatever faraway place it might land on? well a new interactive map let s you do that digitally, though this globe may tell you where not to go. the web-based map curtsy of the brazilian security think tank shows homicide rates around the world. want to go to a country with a very low homicide rate? try monaco, liechtenstein, or singapore. according to the organization s most recent data just ten countries account for 58% of the world s homicides. nine of these may not be all that surprising brazil india, nigeria, mexico the democratic republic of congo, south africa venezuela, colombia and pakistan but can you guess the last? it is the united states which is the world s deadliest western democracy as the global post pointed out. as of now, the u.s. homicide rate is comparable to that of yemen, but before you book a vacation to yemen, keep in mind this measures homicides, not war casualties. now, not all middle eastern countries have rates as high as yemen. the rates for lebanon and the united arab emirates are roughly half as high as that of the united states. and rates in kuwait bahrain, and saudi arabia are much lower still. fancy a trip to north africa? go for it. according to this map, libya, egypt, ewe knee sha, algeria and morocco have rates lower than that of the usa. so the next time you worry about going to cairo or algiers, remember you are statistically less likely to be murdered in those places than in new york city a reg tiffly safe city in this country. the correct answer to the gps challenge question is d. 2.2% of the small nation of brunei is on active duty according to the world bank s most recent data. that s relatively high for a country with no mandatory conscription. 1.8% of jordan s population is actively serving. while just 0.2% of india s vast population is on active duty in their military. the united states currently has about 1.4 million people serving in the armed forces or 0.5% of the population. there are, in addition roughly 22 million military veterans in the u.s. which means more than 7% of all americans alive today have served in the military as 538 pointed out. to those who have served and are currently serving, we honor you and, of course we remember and honor those who made the ultimate sacrifice this memorial day weekend. thanks to all of you for being part of my program this week. i will see you next week. is fox news actually bad for the gop? a conservative heavyweight says it s guilty of self-brainwashing republican voters. and behind the scenes of the george stephanopoulos donations controversy. does the website that broke the news have more to come? plus my in-depth interview with legendary cbs newsman bob schieffer before he faces the nation one last time. good morning. it s time for reliable sources sources. i m brian stelter in washington. i m starting with a question that matters