tv News Al Jazeera February 4, 2014 6:00am-9:01am EST
6:00 am
♪ [bell ringing] the dow had the biggest drop in more than 7 months and what analysts say about the dip and markets around the world are reacting this morning. >> we are asking you to do the right thing. >> reporter: mothers are among those urging west virginia people to take action regarding the drinking water for 300,000 people and makes its way to capitol hill today. >> you should be so ashamed and
6:01 am
disgusted with yourself. >> i am. >> reporter: how a woman who says she was abused by a teacher as a child is pushing for justice as an adult. >> and when you feel sophisticated in your home because you cannot get ahead. >> reporter: the real life story of one middle class american family and represents the struggles that others face around the country. ♪ good morning and welcome to al jazeera america, i'm stephanie sy, stocks took a dive monday after u.s. factories reported the slowest growth in 33 years and sent them sliding to the worst february start in three decades and the dow average fell 326 points to 15,372, that is the biggest dip since last june,
6:02 am
s&p dropped more than 40 or 2.3%. closing at 1741. and the nasdaq tumbled 107 points and giving up 2.6% and ending 3996 and we report that it comes on the heels of stocks reaching record highs just weeks ago. >> the mood turned quickly on wall street monday as the smiles and applause of the opening bell did not reflect the beating that the markets took at days end and down 326 and down 7% since the start of the year. the s&p 500 nosediving to an october closing low and nasdaq suffering the first triple digit plunge in more than two years and part of a disappointing report that showed almost no growth in the u.s. and hit an 8-month low aided by the biggest drop in orders since 1980 and
6:03 am
the deep freeze meant delayed shipments and the closing of factories. >> when we got the manufacturing report it added gasoline to the fire and that is why we ended up in the red. >> reporter: then there is china and markets across asia slumped when the world's second largest economy reported that data fell below expectations. >> so i think investors are worried that global economic growth could be hindered. >> reporter: adding to triple digit drop and the 7th this year worries that the u.s. economy may have hit a soft patch after record-setting highs at the end of 2013. >> that the economy lost momentum through december and january. there was some concern about the fiscal situation, the debt ceiling still has to be raised. >> reporter: and that is why washington will be under more pressure to raise it and avoid aiding to wall street's woes and the treasury secretary wants a
6:04 am
deal this week or emergency measures is to kick in to avoid defau default. >> we cannot accept the notion that for the first time since 1789 the u.s. would not pay the bills in full. >> reporter: history being made in washington as janet yellen became the first female to chair the fed, a rough first day and addressing a sluggish economy and especially jobs, that numbers report comes out friday. >> so a miss on friday will most likely mean another dive for the dow and s&p. >> reporter: thomas draydon with al jazeera. >> reporter: the market lost the spread worldwide this morning with stocks tumbling in the asia and the asia down 4% and european markets are not better and exchanges in the uk and germany and france headed lower this morning. here to discuss with the market turning down suddenly after a long winning streak and
6:05 am
executive editor of hedge funds talk about the global hedge funds industry and ms. lindsey is in london this morning and thanks for being with us, is this drop in the market is the correction they were predicting after the highs we saw in 2013? >> i think it's beginning of a correction. i think the markets are going to be volitile because people don't know what will happen with the fed tapering uncertainty about china and other factors. yes, beginning of a correction and also volatility you see throughout the year. >> two factors that economists are talking about, possibility of fed tapering and weakness and emerging markets and weak manufacturing data that came out of the u.s. yesterday. is there one factor you think of driving the huge sell off we saw yesterday? >> i think it's going to be u.s. data. that's going to be upper most in
6:06 am
everyone's mind because if the u.s. falters on recovery that will fall for the entire global economy and what is driving sentiment in the markets this year. >> reporter: we had other data come out in the last few months that has been more positive including consumer sentiment. what does this say all of this about the fundamental strength of the u.s. economy and the recovery, help us average joes understand what is happening. >> i think what it is basically the markets are very uncertain about what is going to happen next. you're not really clear that the u.s. economy is in recovery mode. yes, you have good data but all you need is something to knock the confidence and everyone starts heading for the hills again. nobody knows we are in territory we have not been in before, is this a real recovery and is weather going to knock it, is fed tapering going to knock it we don't know and markets will continue to react negatively with any negative news. and you had a double wham my
6:07 am
with china coming with bad news and that together means that everybody thinks wait a minute, does this mean that the u.s. recovery is not as sound as we thought it was. >> reporter: you talked about volatility, that you would expect throughout the year, but is this also a sign that the market may experience a general downward trend this year? >> i think you will see continuous downturn this year. the markets were over valued to some extent and you have so many other factors coming in. so i think we will see a general tapering this year but probably will see ups and downs and swings that are a little bit more volitile than we have seen. >> it has only been a month and the executive person of hedge funds and thank you for joining us this morning. the west virginia chemical spill has prompted hearings on capitol hill this morning, a senate committee will question state and local officials about the accident that left 300,000
6:08 am
people without drinking water. this follows a public hearing last night before the west virginia legislature. people who were directly effected by the spill got to express frustration directly to state lawmakers and robert ray joins us from charleston, west virginia and a statement issued by the office senator jay rockefeller of west virginia says we can no longer trade the public's health and welfare for industry profits as we have seen in west virginia when we cannot drink the water, not much else matters. who is in the hot seat in washington today? >> good morning stephanie. i can tell you this, that people here want decisive and dramatic action and who is on the hot seat, we should look at a couple people, west virginia secretary of state and west virginia cabinet secretary of environment will be talking to the senate committee on environment and public works this morning, a ten, basically that committee
6:09 am
will be looking at the safety, security of drinking water supplies and trying to figure out exactly what happened nearly four weeks ago here in west virginia that caused 300,000 people unable to drink the water and obviously today most of the 300,000 people still fearful of the water and drinking bottled water, stephanie. >> reporter: last night, robert, state lawmakers in west virginia got to hear from the people who paid the price for the chemical spill, among them a mother of two, ms. beckner calling for legislative action. >> this accident effected our school system and invaded our homes. i'm not a scientist, an activist maybe if you consider being here tonight and speaking as an activist. but like a mother bear i'm here to protect my children. every night at bedtime we ask our girls what do we always do? we do the right thing. we are asking you to do the
6:10 am
right thing. >> reporter: robert, i imagine emotions are running pretty high among residents? >> oh, absolutely. let me quote the actual chairman of the health committee, don perdue and the words in the chambers, he said to the residentss and delegates there he said this has been an unpresented and horrific event, it must have felt you were all descending in the 9th ring of hell and describes the sentiment here in charleston, west virginia. another person, resident got up to the microphone last night and said i love the state and never thought i would leave the state but now it's a real consideration. so senate bill 373 which was passed by the senate just last week tossed over to the house and mulling it over, looking at possible amendments to this, it's going to go through the health finance and the
6:11 am
jurisdiction committee here, looking at above-ground tanks, hoping to get them registered and hoping annual inspections will be part of this and a new emergency plan will hopefully be in the bill. they have until the end of the month to put this through and make it past but i can tell you that is not quick enough for residents as many people are not only frustrated but starting to be really afraid of living in this particular pocket of west virginia, stephanie. >> reporter: robert ray reporting from charleston, west virginia, robert, thank you. the senate is expected to hold a final vote on the nearly $1 trillion farm bill today. the legislation would make cuts to the food stamp program and extend farm subsidies and set the agricultural policy for five years and it stalled in congress the past two years but this version has by partisan support and the house approved the bill and white house says president obama will sign it. after a weekend of mild weather is northeast is bracing for a
6:12 am
triple threat of winter havoc this week and it began monday when a storm dumped heavy snow on the region and new york city had 8" and some areas from delaware to connecticut collected more than a foot of fresh snow and the situation was worst in new jersey. the storm caused power outages, fallen trees and terrible road conditions forces the governor to declare a state of emergency and the storm grounded airlines and stranding fans heading home after the superbowl. nearly 3,000 flights were cancelled across the country due to the storm monday. and fly aware.com says majority of consolations were philadelphia, new york and the superbowl teams getting out and 600 flight delays and cancellations across the country and mother nature is hurting the pocket of airlines and travelers and oreport on monday said it left to 49,000 flights cancelled
6:13 am
in january. it has cost travelers $2.5 billion in hotels, meals and related expenses. the airline industry says it lost between $75-$150 million. it's not just the northeast hit hard by mother nature there are warnings for a huge section of the country and nicole mitchell has a look at the next storm causing problems. >> it's causing problems and talking about the northeast and hoping you are getting out today because tomorrow will be another round of all of that. in terms of winter storm areas 24 states, almost half the states under winter storms because of this one storm so here is the exiting storm and another one brewing. this came out of the west and you can really see not a lot of moisture with it and it taps the gulf moisture and a lot more to work with as the system continues to get going. already this morning as we get that in we have snow in states like kansas and missouri dealing
6:14 am
with that freezing rain. a line of that. you could see some in oklahoma but really arkansas, little rock, is reporting freezing rain and that is a very slick part through the day today. how does all of this build up? we continue through the day today, northern great lakes, late into this afternoon, by tonight starting the possibly see some moisture and more moisture through the day tomorrow into the east coast. before all of this moves out just as a precursor there is another potent system over the weekend and early next week we are watching and more on this, i mentioned 24 states under winter storms from colorado all the way up, this extends into maine although that moisture is a little more in the day tomorrow as the system moves along. this is what we are expecting, broad swat and goes through early in the day yesterday and the next 24 hour period and you can see parts of the midwest, missouri, illinois, easily 8" or more, we get a little south of
6:15 am
the great lakes and that is 6-12" and so the core of the snow today will be in the midwest but in the day tomorrow new york through philadelphia and some freezing precipitation and make things messy north of that and places could get a foot and back to you. >> metrologist nicole thank you, chris christie and critics say he knew about that and is involved at the lane closer us at the georgia washington bridge and his people have subpoenas to find out what he knew when and he spoke out on a new jersey talk radio program. >> it's a game of gotcha, when did i first learn about this or that. the fact of the matter is i have been very clear about this. before these lanes were closed i knew nothing about it. i didn't plan it. i didn't authorize it. i did not approve it.
6:16 am
i knew nothing about it. >> reporter: 20 subpoenas have been issued so far in the bridge scandal, one of christie's aids is pleading the 5th amendment the right against self incrimination. fighting for the recession. >> you cannot afford utilities and tacks and it's outrageous and i'm worried. >> reporter: how middle class families continue to struggle and the stress it puts on their lives. congress takes on cyber security, why retailer target will be on the hot seat today as they try to safeguard your personal financial information and it's world cancer day and a new report points a grim picture for the coming years and why advances in medicine do not address the whole program. >> i'm mark morgan and they pummeled the broncos in front of a record-setting tv audience and the seahawks return to celebrate with friends. this is tulsa, oklahoma and 34 degrees and expecting some snow
6:19 am
♪ good morning and welcome back to al jazeera america, i'm stephanie sy. up next, middle class families that once sought to achieve the american dream now steps away from financial disaster and first let's look at what temperatures we will see across the nation and metrologist nicole mitchell is back. >> as we get the next system coming through we have cool air to the north of that or cold i should say, from negative minneapolis to billing and minnesota and montana, as we continue off this morning a lot of the south temperatures in the 40s. but for the rest of the day and the brief break and parts of the east coast 30s and washington d.c. northward is what we will expect. right where we have that weather system, the core of that, chicago on the north side is 25 and more on the snow side but memphis at 41 could be on the cusp of freezing when the temperatures fall below 0 and watch for that and that is a concern in the day tomorrow with the system coming in because a
6:20 am
lot of these temperatures even new york, the 36 could be at midnight with temperatures through the day around freezing, so that means a lot of this could be on the cusp of freezing and north the snow and south freezing and rain and temperatures tomorrow will play a huge impact for us as we get out the door and temperatures through the south making it in the 50s tomorrow and back to you. >> thank you, ukraine's parliament reconvened for a new term and the country opposition has new demands and pushing for laws which will reduce the power of the president and opposition members are also calling for return to an earlier constitution that will give parliament greater control over how governments are formed and they are demanding the release of jailed protesters and al jazeera's jennifer glasse is in kiev monitoring the latest developments and jennifer good morning, has the level of opposition changed at all with this new parliament session now
6:21 am
underway? >> good morning. i have to say not much opposition this morning in kiev. in independent square people are watching closely as parliament convenes this morning but as the speaker started speaking i think hopes began to dwindle, a hard line from the progovernment side saying they offer concessions and don't know why the opposition would want more, not a good start to the parliament session where the opposition was hoping to see changes to not only the amnesty law and also would like to go back to the 2004 constitution because in 2010 the current president viktor yanukovych changed the constitution to give himself more powers. when the brother of the opposition vladimir said the opposition is hoping for more support. >> i just hope that democratic world and leaders of the democratic countries were democracys really, it's in the
6:22 am
ukraine, will really see what is going on. >> reporter: now the european union's foreign policy catherine ashton arrives in kiev later for meetings that start tomorrow. it looks like there is mediation needed here because the two sides remain very far apart and actually as parliament took a break and on break until 4:00 local and 10:00 your time at 10:00 in new york, as the parliament took a break one of the progovernment in um inters of parliament said that there wouldn't be any changes before the president heads to moscow on february 7th. >> reporter: jennifer glasse reporting from the kiev, the capitol. back in the country the economic recession stagnant wages and cost of living left middle class families believing the american dream is out of reach and aly
6:23 am
velshi talks to a couple talking about economic disaster. >> we are trapped and feeling sophisticated in your marriage and feel trapped. >> reporter: they could not afford a honeymoon by believed if they saved their money they could achieve the american dream. >> it's very difficult. >> it turned into a nightmare actually. oh, yeah, cereal, buy one, get one free. >> reporter: they cut it out and rarely go on vacation, eat out or buy new clothes. >> help your daddy. that would be nice, okay. >> reporter: bill works midnight shift at ups and diane has two jobs at the school cafeteria and ymca and earn $90,000 and close to the head of the class, the middle class, but that is not how they feel. >> i feel like i'm on a
6:24 am
treadmill like i'm sweating and no where to go. >> one setback here or there and you both will sink. >> reporter: $90,000 may sound like a lot of money but long island is one of the most expensive places in america and the property taxes have more than doubled to over $12000 a year since they bought their modest home. >> you cannot afford the utilities and taxes, it's outrageous and you know i'm worried. >> and even if we moved out of state our salary goes down. >> we have family here and if we didn't have family maybe we would recalculate. >> reporter: they say they are just one step away from economic disaster. every month involves a delicate balancing act and want to replace their oil heater with an electric one but cannot afford $7,000 it would cost and more immediate concerns like the car. >> that car is on borrowed tires, you know, like please another year, at least six months to see what we can do. >> reporter: and that is how day-to-day worries become
6:25 am
concerns about the future. >> and he has his retirement from his job. i don't have a retirement. >> when an emergency comes up sometimes i have to take from that. and that is something you never want to do. >> reporter: they try to remain positive. >> we appreciate what we do have. >> reporter: aly velshi, al jazeera. it's time for the 12 man to celebrate the superbowl victory and we have superbowl celebrations continuing. this should be quite a party and deserved so and spoils and celebration and unlikely the seahawks and players got much sleep since the win over the broncos and the seahawks arrived back home yesterday following the team's demolition job sunday night and tomorrow there will be emotion in the emerald city, the first championship pay -- parade
6:26 am
since the sonics and 11.5 million people watched the broadcast and for the fourth time in the last five years the superbowl set a record as the most watched television event in u.s. history. this game barely beat out the 2012 contest between the giants and patriots which drew 111.3 million viewers. nba and held to 26 points in each of the last two games durant was over 30 last night and recently went 12 games with 30 or more and back in the groove in ta win over the grizzlys last night. 11 of 21 and finished 31 and 8 rebounds and 8 assists and does more than score and broke it with 18-2 and thunder was 21-3 at home, 83-77 is your final.
6:27 am
now the groupings are set for the 2014 world cup of basketball held in spain this august and september. usa basketball is the top ranked team and the americans won the gold medal at the 2010 championships and back to back golds at the 2008 and 2012 olympics and they are in group c and the top challenger is turkey and spain was placed in group a setting up a possible championship show down with the u.s. kind of lost in the shuffle a bit over the superbowl weekend the retirement of nba commissioner david stern after 30 years guiding the league and the legacy of one of growth that has seen the nba explode globally and we weigh in on the nba national flavor. >> the growth of 20 years and you see nba in 215 countries and he signed with the la clippers today with the slavanian signing
6:28 am
and there is a record, 93 international players in the nba and now there is interest globally and other than soccer, professional soccer what other sport has this much interest internationally because of what davis stern started and hopefully in time we will see teams in europe too. >> reporter: we will have an in-depth look at this in the next hour. syracuse was sporting number one ranking to put it on the line against notre dame, the last team to beat the orange and ranked number one is the irish but no de-sha-view and 33 points and matching a record of 9, count them 9, 3-pointers and orange was 22-0 with 61-55 win and that is a look at sports this hour. >> mark, thank you. a warning about a spike in cancer cases and the reasons
6:29 am
between the 75% increase and what you can do to lower your risk. >> this is what she is getting away with because of the statute of limitations. >> reporter: the video, a woman posted about the former teacher she says sexually abused her and how it led to an arrest years after the crime. >> i'm not friends with my dad on facebook although he does have an account. >> reporter: on the 10th anniversary of facebook the changing face of the popular website's user community. ♪
6:31 am
6:32 am
>> listen to the title it's called a call to my childhood rapist, the young california woman never talked about the sexual abuse before she posted the video and now she has children of her own she wanted to findly confront the rapist and picked up the phone and called her directly, recording the call on youtube, three weeks later her former teacher is charged with 16 felony counts of sex crimes with under aged girls. >> you should be so ashamed and so disgusted with yourself. >> i am. i am. >> reporter: in a confrontation on youtube 28-year-old jamie called her accused rapist on the phone years after the alleged abuse at a southern california middle school. >> i was only 12 years old when i met you. do you realize you brain washed me and you manipulated me? and that what you did was wrong?
6:33 am
>> yes. and i regret it. >> reporter: the video went viral, within hours it got more than 100,000 hits. within minutes the current california school district fired the teacher, turned assistant principal and andrea lost her job in january but still has freedom and so much time passed since the abuse the statute of limitations had run out and she thought cardoza could not be charged. >> this is what she is getting away with because of the statute of limitations. does that seem right? >> not according to local law enforcement which had an investigation and a second victim came forward saying cardoza abused her in 2009 and now faces charges. >> she ruined my life and why should she get a life. >> she has $5 million bail and
6:34 am
when it comes to sex crimes in california it's ten years, and in this case it has been 15 years and which is why the lawyer says he is going to ask for the case to be dismissed. but according to the california court's website a case can be opened after the statute of limitations has run out if there is admissible independent corroborating evidence. >> that leads to my next question is this youtube video admissible as evidence? >> that is a big question and a judge will have to make that decision but we heard from one criminal defense lawyer who said it's against the law in california to record incriminating information against someone without their knowledge and without law enforcement involved so we will see what happened. >> erica thank you. today is world cancer day and a new report says cases of the disease could double in the next two decades. according to the world health organization cases worldwide
6:35 am
could hit 24 million a year, up from 14 million cases last year. developing countries face the biggest challenge with harder access to early detection and treatment. two thirds of the world's cancer suffers are asia and central and south africa and we have the chief executive officer of the national cancer control in geneva and the numbers are astounding and 25 million cases in 2035, that is a 75% rise in the next two decades. so let me ask you in, why are global cancer cases expected to escalate so rapidly or is this just a symptom of an aging population? >> well, it's an aging population, a growing population
6:36 am
but it's also a reflection that we are adopting western lifestyles around the world and uses of tobocco and obesity and poor diabetes and the countries populations are moving into environments that is not conducive to healthy living and you add it up and see an incredible amount of cancer and deaths over the next two decades. >> let's talk more about that, the american cancer research said one-third of the common cancers are preventable from diet, physical activity and weight and includes 89,000 cases of breast cancers and you can see lung cancers and cholo rectal cancers on the chart and what more should be done to reduce things like sugar and alcohol which studies linked to cancer and should societies be doing more? >> well, yes, the society should do more and the society is going
6:37 am
to be doing more. the u.n. recently signed up all members and committed to look at the issue of cancer and other noncommitted disease in 10-15 years and address many risk factors you mentioned there. i'm not surprised there is a misunderstandings about what the risk factors are that lead to cancer and common in america and uk and released results saying people don't understand obesity and cancer and what we use today to debunk the myths is get information out to people and hopefully clarifies there are a lot of things that can be done which can reduce your chances of developing cancer during your lifetime. so, yes, there is a lot to be done at a personal level about yourself being educated but also i think governments have a responsibility to better education of their own populations. >> to thirds of the world's cancer suffers are in more developing countries and i
6:38 am
understand infection is the cause of many of those cancers. would vaccines make a huge difference in those countries or is it a bigger deal to advocate for better lifestyles? >> it's a combination of both. i mean, we have to respect the fact that the cause of cancer varies by continent and many parts of the world infection can cause 20-25% of cancer and this is not really understood by the general population, the fact that cancer can be caused by hpv and hepatitis b which causes liver cancer and there are vaccinations available to prevent cancer in the longer term and some parts of the world with a vaccination for young girls when they are 10, 11, 12 years old will avoid 75% of the cervical cancer cases which occur in the country over time.
6:39 am
i think going back to the national responses is quite important here. we cannot actually say there is a single response which is appropriate across all countries and common risk factors and tobocco and obesity and diet and vaccinations are important but it's up to the country to how they can best address the issue of cancer within their country. >> reporter: chief executive officer of the union for international cancer control joining us from geneva on world cancer day. a highly anticipated meeting between pakistan and the taliban has been called off. the two sides were scheduled to meet at 2:00 p.m. local time to work on a roadmap for peace negotiations. the talks were postponed after the government said it wanted clarifications from the taliban on certain issues and the taliban committee said they responded to questions and waiting to hear back from government officials. al jazeera is condemning a leaked video broadcast on e again shin tv showing arrest of
6:40 am
to of the colleagues in cairo and appears to be shot by officials who arrested the journalists and stephanie decker reports the actor chief and peter greste and bahmi are still held without charges. the privately owned channel broadcast the moment two of our journalists were arrested in their cairo hotel room. for the purposes of the piece we decided to use screen grabs rather than run the video, a voice thought to belong to a security officer is heard asking al jazeera fahmi about accreditation to which he replies i asked them many times if our legal position is valid in egypt and told the al jazeera english position is valid otherwise i would not have accepted the job. and on the video has been overlaid with music of what looks like a mobile phone camera picks up laptops and printer and
6:41 am
tools of the trade used by television journalists the world over and they condemned the video saying if this video was deliberately leaked it violates basic standards of justice and if it came out by mistake the professionalism of the process is called into question. they were not operating in cairo secretly and the team openly filed several packages in reports prior to their arrest and not having full paperwork from the authorities no way justifies the incarceration and treatment and should be released forth with and al jazeera and sister channel arabic had the cairo offices closed down be egypt since the 2011 revolution that saw mubarak removed from power and they have a license to operate in egypt but accreditations not always issued
6:42 am
and the bizarre leaked footage is to align the journalist and says it's ensitement against the network and employees and fahmi and greste and mohamed have been held without charge for more than a month and call for their unconditional release. >> reporter: today is the 38th day that the journalists have been detained without charges in egypt. security breaches at target has millions of americans nervous over access to their personal information. target's chief financial officer will have to answer questions before a senate judiciary committee today and the subject of on going hearings in washington focusing on the theft of consumer data. >> whatever high standard exists in the marketplace readily available in technology is one that we would want to have
6:43 am
companies follow in order to ensure the security of millions of americans private information. >> reporter: congress takes on cyber security as large scale threats to cooperation hit new highs and heard from the secret service and consumer groups monday and thefts are rising over the last decade and cost business billions. >> what we are seeing is that largely the criminal, cyber criminal world is using the russian speaking language, russian speaking and using the russian language as operational security, so that is the piece that the criminal under world is using to hide themselves from u.s. law enforcement. >> reporter: and lodging corporation which runs hilton, mariott and star hotels is the latest to disclose it has been hacked and investigating sales breaches at 14 properties between march and december of
6:44 am
last year. monday's hearing was weeks after criminals stole detail from michaels and neiman marcus and the one that caught everybody's attention like target where 100 million americans had their information compromised and target is one break in but two thefts, the first 40 million americans may have had debit and credit card information stolen and names, addresses and phone numbers may have been compromised of another 17 million americans who could have interreacted with target at any point in their lives, not necessarily over the holidays. >> if a business withholds that information because it's in the heart of christmas shopping season and may effect their bottom line they need to be hung out to dry. >> reporter: consumer groups pressed congress to penalize companies that failed to notify the authorities swiftly if they suffered a data breach, all firms that don't have sufficient protection. >> we have tools and we are using them to enforce, to
6:45 am
address data security failures by companies. it would be extremely helpful to have a federal law requiring data security and not just notification with civil penalties. >> reporter: the senators heard that while cyber criminals are constantly developing ways to hack corporate and government systems the technology already exists to reduce card fraud dramatically and so called smart cards that combine a micro chip with a pin number are in use in asia and europe and congress is looking at setting a smart card and they want it in place within two years. >> you have to have a whole system and has to be pin and chip and i'm just wondering why someone thinks otherwise. >> reporter: monday is the first of several in cyber security and on tuesday the ceo of target will testify before the senate judiciary committee and i'm in washington, al jazeera. >> reporter: secret service officials are pushing congress
6:46 am
for new legislation and right now there is no federal standard in place to determine how and when businesses become targets of consumer data theft. taking a look at business news now annual street is trying to recover after yesterday's huge sell off and pointing to gains at the open and the dow and the biggest drop since last june and in the 7th triple decline and are 15372 and s&p 500 had the worst start to february since 1933, it stands at 1741. the nasdaq is set to open below the key 4,000 level. one market watcher says it may be time to scale back on stocks. >> there is opportunity in the market but we are looking at a fairly significant correction from where we have been so i would advise investors to be cautious at this point and take some money off the table and leave some in cash for some time. >> reporter: the selling spilling to europe and asia and 4% to a four-month low and the
6:47 am
index lost 3% and china composite remains closed for the new year holiday and toyota sells and they raised the profit and sales forecast for the year after reporting earnings that rose more than 5 fold to $5.2 billion in the last three months of 2013. the weak yen made the exports less expensive and boosted sales. lay offs on disney and the company will cut several hundred jobs from the video game and media unit and the lay offs could be announced on wednesday when it releases quarterly results and facebook turns ten and the social networking site started in a college dorm in 2004 and now a worldwide phenomenon but in today's world it's tough to be cool and popular at the same time. as rob reynolds report the site
6:48 am
may be losing the biggest audience, teens. >> conceived in a college dorm room a decade ago facebook has become a behomith but a growing number of teenagers have lost interest and i-strategy lab has studied facebook changing demographics. >> what we found is in the last three years there are 3 million fewer teenagers a that is 17 and 18-24 is the next demographic up and decline in both and specifically a 25% decline among addressable teenagers on facebook advertising. >> reporter: to find out what happened we went right to the source, a bunch of cool kids hanging out after school. >> this whole way where everybody can get ahold of you no matter what and they just know everything about your life like i don't know, i don't like it any more, i like to have my own life and have the ability to choose who comments on it or
6:49 am
not, you know. i feel like with facebook you lose that. >> reporter: snapchat and pinterest are what they like in the generation. >> what are you doing on facebook and now they are a part of it and they can see everything you are doing. and you are out drinking here, thanks mom. >> reporter: , in fact, the biggest increase in facebook users during recent years has been among people aged 55 and older. now that is like totally uncool. >> i think a huge part of that just has to be attributed to the rise of parents and grandparents and aunts and uncles on the platform and commenting on photos that teens and young people are posting and engaging in a way that advertisers want to see people engaging on facebook but not what teens are looking for. >> what teens are looking for is arparent-free zone online. >> they want to know what you
6:50 am
are doing and like check what you are doing and doing anything bad. >> reporter: many teens who still use facebook are careful to keep the grown ups out of the loop. >> i'm not friends with my dad on facebook. he does have an account. >> reporter: mom and dad now have facebook accounts, but, as always, they have not got a clue. rob reynolds, al jazeera, la. >> of course i'm on facebook. coming up, at 7:00 we take a look at one huge market facebook has yet to win over, china. the quest for clean, greens, energy hitting a roadblock in high high and the electricity is three times the national average. and winter storm warnings out for 24 states and almost half the country and we will talk about the brewing storm. >> taking a live look at laguardia airport in new york city and looks like things are getting back to normal after yesterday's storms and flights mostly on time until the next
6:53 am
♪ welcome back to al jazeera america, just ahead the battle over clean energy and the state with the highest electricity rates in the country. but first let's get a look at the snow and rain may fall across the country today and metrologist nicole mitchell is back. >> it's definitely starting to see the system that has developed and now it's pulling in the central plains and getting the moisture it needs and intensity of the system we are already starting to see some problems today. as this cranks up we have seen freezing rain in little rock and dividing line of the temperatures and north is snow and heavy snow in some cases. so for the midwest today from missouri into indiana watch for some places 8" or more. i'll have more on what the
6:54 am
northeast does coming up, in a little bit and back to you. >> thank you, living in paradise is not cheap, electricity costs in hawaii are three times the national average because the islands are almost completely dependent on imported oil and as jennifer london reports the locals may not like the prices but they like one alternative energy source even less. >> big waves, beautiful beaches, scenic overlook, picture post cars from the famed north shore but now something out of place comes into view. >> well in your heart it kind of hurts. >> reporter: and he lives in the rural neighborhood of kahoo kshg o and 1211 wind turbines tall and loud were erected close to his home. >> and i go to the industrial look of the hawaii islands.
6:55 am
>> reporter: she chairs the north shore neighborhood board. >> when they went up and in, oh, my god people were completely freaked out, very up set. >> reporter: travel down the road and you will find 30 more located in the wiamai combined and the largest wind farm in the state of hawaii. as you enter the valley you can see a few of the wind turbines but many north shore residents say that is not really even the problem and say the wind farms are more than just an eyesore. they say they have been built on land that is sacred and has been in the hawaiian culture for 700 years. >> when they put it in i thought it was blatant disrespect and desecration of the valley. >> many and myself on a personal level would prefer from the valley not to be able to see wind mills. >> reporter: but mark the state eastern guy commissioner would also prefer to break hawaii's
6:56 am
dependence on oil, over the past year the eye atlanta state imported more than 46 million barrels of oil, that is 36 barrels for every person living in the state according to hawaii energy.com. >> keeping our sights on the true goal which is to rid ourselves of imported oil which has created such a strangle hold on our economy. >> reporter: it's estimated the north shore wind farm will provide power for some 14,000 homes and now there are plans to build 15 more near this elementary and high school but resident says he has grown weary of wind energy so close to home. >> we feel we have done our part to contribute to renewable energy plan. >> reporter: it includes generating 40 percent of its electricity from renewable resources by 2030 and means wind farms are clearly part of the states future and part of the
6:57 am
view. >> reporter: people in hawaii are turning to solar power but the massive increase is starting to overload the power grid and we are joined with a look at the stories we are following the next hour. >> global markets are down this morning after the big sell off on wall street and dow dropping 326 points. and the parliament reconvened and facing demands from antigovernment protesters and a senate committee will investigate the tainted water in west virginia and they had a meeting at legislature. inmate and visitor abuse and take you where cameras go in the prison and meet the man challenged with fixing the problem. the federal government saying it wants cars to talk to one another on the road. and whether we get cars talking and lead to fewer deaths on the road. >> reporter: developing winter storm will impact half the country and i will tell you who
6:58 am
is in for snow and how much we will dig out of. >> and al jazeera news continues and dale and libby casey are back in two minutes. have a great morning. al jazeera america. we open up your world. >> here on america tonight, an opportunity for all of america to be heard. >> our shows explore the issues that shape our lives. >> new questions are raised about the american intervention. >> from unexpected viewpoints to live changing innovations, dollars and cents to powerful storytelling. >> we are at a tipping point in america's history! >> al jazeera america. there's more to it.
7:00 am
. >> the dow posting its biggest drop in seven months. how markets around the world are reacting. >> calling for a constitutional change. ukrainian opposition forces plan to weaken the president's powers as the financial aid package is formed to end the country's political crisis. >> the number of collisions on the road, the technology that
7:01 am
has u.s. transportation officials and cars talking. >> i said stop resisting, stop resisting. i yell down, i'm in handcuffs. >> an inside look at one los angeles jailhouse where officials are accused are inflicting violence on prisoners and visitors. >> good morning, welcome to aljazeera america. i'm del walters. >> i'm libby casey. wall street is bracing today following mondays big selloff. stocks took a dive with the dow, s&p and nasdaq all foul more than 2%. >> that comes during the dow's worst january performance since 2009, the worst february start since 1982. thomas drayton has a look at what has investors rattled. >> the mood turned quickly on
7:02 am
wall street monday as the smiles and applause of the opening bell didn't reflect the beating the markets took at day's end,ed do you tumbling 326 points, now down more than 7% since the start of year. the s&p nose diving to an october closing low. the nasdaq suffering its first triple digit plunge in more than two years. it's all part of a disappointing report that showed almost no growth in the u.s. manufacturing sector, which hit an eight month low, aided in part by the biggest drop in new orders since 1980. another reason, the weather, january's record-setting deep freeze meant the late shipments and closing of factories. >> when we got the manufacturing report, it added gasoline to the fire and that's why we ended up in the red. >> in china, markets slumped with news of the world's second largest economy also reported
7:03 am
chinese factory data fell below expectations. >> i think investors are worried that global economic growth could be hindered. worries that the u.s. economy hey hit a soft patch after record setting highs at the end of 2013. >> the economy lost some momentum through december and january. there was some concern about the fiscal situation, the debt ceiling still ha has to be rais. >> washington will be under more pressure to raise it and avoid adding to wall street's woes. >> what we can't do is we cannot for a moment accept the notion that for the first time since 1789 the united states would not pay its bills in full. >> history being made in washington as janet yellen became the first female to chair the fed, a tough first day on
7:04 am
the job, who's chief admission will be addressing a sluggish economy, especially jobs. that report comes out friday. >> a miss on friday will mostly mean another dive for the dow and s&p. >> thomas drayton, aljazeera. >> now those market losses spread worldwide this morning with stocks in asia tumbling, the nikkei down 4%. european markets also facing pressure. we'll look at janet yellen's new role at federal chair woman will mean for those markets. >> a new session of ukraine's parliament is underway, on the opposition looking for limits on the president's powers and a return to the earlier version of the constitution, giving parliament more control over how governments are formed. they demand the release of jailed protestors. aljazeera's jennifer glass is in kiev, monitoring the latest developments.
7:05 am
as the parliament starts the new term, there's a new deal brewing between the u.s. and european union for ukraine. what can you tell us? >> >> libby, that deal, officials tell us, is very much a work in progress. they're negotiating daily with senior officials here in ukraine. the european's foreign policy chief is due here in kiev later today, we are also going to see the assistant secretary of state new land here on thursday. now, the u.s. and the e.u. say it isn't about competing are russia, who offered a $15 billion bailout. that sup jet opposition protestors. that loan project is on hold for now, $3 billion of it was dispersed, but the $2 billion supposed to be dispersed last week on hold. president putin wants to see what the next government of
7:06 am
ukraine looks like. the united states is saying the same thing, the u.s. and e.u. package not going to be as large as the russian package depends on economic reforms here and that was a falling point last fall whenian covevich refused to sign the european trade agreement, still a long way to go, the united states and e.u. trying to put together a financial plan to help ukraine out in the short term, but would have to implement economic reforms. >> let's go back to the parliament session underway. is there optimism on the opposition side that their demands will be met? >> no. i think, libby, it was not a great opening for the opposition. the pro government speaker of parliament, as well as his deputies and parliament taking a very hard line this morning, reiterating they've made concessions and changes to the constitution is a long and
7:07 am
difficult process and not as simple as the opposition lays out. the opposition hoping they had come into the parliament with momentum today doesn't seem like they have any. as a matter of fact, the speaker called an early recess, the parliament is on recess until 4:00 this afternoon here, that's 10:00 new york time where they're going to consider what bill to say consider, but i believe the opposition still feels the government is playing for time here, and an idea of where the president stands, one of his supporters said in the break when parliament just went on break that president yanukovych, the parliament wouldn't consider changes until the president met with vladimir putin on february 7 in russia, the opening day of the olympics there. >> jennifer glass in kiev, thank you. >> frustrated new subscribers who tried to sign up under the affordable care account are demand in the bugses be fixed. 22,000 have filed appeals trying to get mistakes corrected,
7:08 am
charged too much, enrolled in wrong plans or denied coverage. the rocky rollout has led to calls for the resignation of officials tied to that launch. >> target's chief financial officer set to make an appearance on capitol hill will be the focus of a senate subcommittee tee hearing on the holiday season data preach that exposed information of 100 million shoppers. what target is saying before today's testimony. >> ahead of today's testimony before the senate judiciary hearing, target's chief financial officer said the company will early up its deadline to put smart chips in target credit cards. target now plan to say get it done about a year from now, six months earlier than planned and months before visa and master card. the chips make it impossible for hackers to use stolen credit card numbers in stores, but don't prevent on line fraud. today's hearing is the second of three on capitol hill investigating the data breaches.
7:09 am
monday, lawmakers pushed for companies to notify customers faster when they're information's been stole june there are state law that is require breach notification that may apply to retailers, but there is no federal -- >> ok, so there are no breach requirements across the board. >> they are pushing for tougher penalties. >> alex gonzalez was convicted in 2010 of stealing 40 million credit card records. he made so much money off of this, he bought his own italian island off it. >> 45 million target credit card numbers were stolen and personal information from 70 million more. >> experts say upgrading businesses to smarter credit card technology would cost $500 at each and every check out counter. >> chris christie is fighting back against critics who say he knew about the new jersey bridge scandal and continues to deny
7:10 am
being involved. his pushback come as several top aids face subpoena to say find out exactly what the governor knew and when. the governor spoke out on a new jersey talk radio program monday. >> it's just a game of gotcha. it's when did i first learn about this or that. the fact of the matter is i've been very clear about this. before these lanes were closed, i knew nothing about it, i didn't plan it. i didn't authorize it, i didn't approve it, i knew nothing about it. >> 20 subpoenas have been issued so far in the bridge scandal. one of christie's former aids is pleading the fifth amendment, the right against self incrimination. >> the virginia chemical spill will be the subject of a hearing this morning. it left 300,000 people without water to drink west virginia senator robert rockefeller said monday we can no longer trade
7:11 am
the public's health and welfare for industry profits, adding when you can't drink the water, not much else matters. sounds like he's made up his mind where he believes the blame lies. >> del, indeed. it appears that way, but i got to tell you, residents of west virginia don't want to hear anymore rhetoric from lawmakers. that's the consensus we're getting on the ground here. i think every lawmaker in the state and also those on the committees in washington are going to be held to the fire by people here. like you said, today at 10:00 a.m., the senate committee on environment and public works will be meeting this morning. they will be grilling west virginia's secretary of state, also west virginia's cabinet secretary of environment on the safety, security and drinking water supplies here in the state trying to figure out exactly what happened on january 9 when chemicals leaked into the elk river, del. >> the public there is fed up.
7:12 am
last night, mother of two told lawmakers why she believes something needs to be done. >> you've heard a lot of great suggestions from a lot of people and those are the right things. the right thing for the people are our state, not the city. i am not anti business nor anti economic development. in fact, i'm currently an m.b.a. student. this is as important in our state, but responsible business, ones who operate legally, ethically, morally, and doing so socially and environmentally responsibly. >> would it be safe to say things are getting a little heated in west virginia? >> i would say that would be accurate, del, people are absolutely afraid of the situation. we're going on four weeks here and most people are still drinking bottled water, looking for answers, not ready to expose their children and elders to the unknown, which is the water here. people don't know the long term
7:13 am
effects. last night in that hearing, one of the speakers got up and said you know, it's interesting. as i look around the house chime about her, i notice that half of the delegates are not here and many of you are getting up and leaving early. an interesting point by one of the speakers there, wondering as to how important is this really in the lawmakers' eyes. is this just another situation where it's going to be swept under the rug and there won't be money to fund it, even if the regulations are passed. i mean you can see on the cover this morning on the cover of the newspaper that this is a major story here, in fact the only story in town. also, del, let me just say this real quick. one of the chairman for the west virginia health committee came out yesterday in the meeting, don purdue and said this has been an unprecedented and horrific event. it must have felt like you were descending into the ninth ring of hell.
7:14 am
lawmakers are going to be held to comments like that, many saying should we even stay in the state. >> robert, thank you very much. >> after a bit of a break in the weather, mother nature unleashed another winter blast on the northeast. monday's snowstorm pummel would the tristate area with eight-inches of heavy, wet snow. it stranded thousands of superbowl fans trying to get home. >> a new report says the recent string of winter storms led to 49,000 canceled flights, twice as many as those grounded by super storm sandy. it cost travelers $2.5 billion in hotels, meals and related experiences. the airline industry suffered a loss anywhere between 75 to $150 million. >> just when you thought it was over, guess what? it's about to get even worse, another series of storm warnings issued all up and down the eastern seaboard. for more, we return to nicole mitchell. >> i haven't been the favorite
7:15 am
person around here lately. maybe by may i can guarantee it turned off. we have a couple of rounds on the way. we were talking about all the problems air travel in the northeast yesterday. today is the break. tomorrow will go downhill. if you're getting out, hopefully you can do that today. you can see the system in the earlier frames, here we go, developing coming from the west. it taps into the gulf moisture. now, we have a much more widespread area. particularly concerned for arc ago with freeze in precipitation, bridges and overpasses always freeze up first, be very careful on the roads. the northern side is cold enough that it's just plain snow. south of the great lakes already by this afternoon, starting to impact the east coast tonight and through the day tomorrow, then it moves out. there's another system we're already starting to monitor toward the end of the weekend, so a couple of things we're going to have to have to deal
7:16 am
with. let's get to this one, so widespread with the winter storm warnings, 24 states, that's just the warning areas, not the advisories. in terms of totes, this core of new york and northward, some places could get a foot there. to get for today, south of the great lakes, places up to a foot easily eight inches in a couple of corridors of that through missouri and illinois. there will be significant snow and a lot of places dealing with ice today into tomorrow. back to you guys. >> thanks, nicole mitchell, we won't hold you responsible. >> thailand's opposition is challenges the countries elections in court. protestors disrupted voting over the weekend. it happened in regions where the current prime minister's party has the most support. the opposition alleges her party tried to grab power through unconstitutional means. many want the government replaced by an unelected people's council. >> violence in the south african
7:17 am
african republican breaking out late last week. dozens of houses burned as christians and muslims clashed. sectarian violence began last month. >> more than 20 million people are struggling to survive that countries region, more than 1 million people have been forced to flee their homes in that region because of the violence. population growth and high food prices are also part of the blame. >> a colorado educator under arrest years after her alleged crime. >> we'll tell you how one of her former students is now using you tube to publicize accusations she made with the teachers on line and how law enforcement jumped in.
7:18 am
7:20 am
>> time for today's big number, $441 million. that's how much california's citrus industry lost as a result of cold weather. >> taking a hit after seven consecutive night of freezing temperatures. consumers are likely to see a rise in orange prices. the loss probably won't affect your juice prices. good morning,
7:21 am
romney. >> anywhere from minnesota to montana, single digits, hovering around zero. toward the south, a lot of 40's and up through the northeast, 20's and 30's, a quiet day for the northeast. temperatures will reach the 30's with sunshine, but it is going downhill. tomorrow, notice how a lot of these temperatures are around the freezing mark. that's going to be the cusp of areas we could see freezing precipitation. then we get north of this into central new york northward, that will be straight snow. some you'lllations could go over a foot in a few cases. the temperatures are going to play a big role as the system rolls into the east coast. for the rest of the day tomorrow, still that cold air, places like minneapolis around three degrees. i'll have more on the snow and who's going to see it, coming up in just a bit.
7:22 am
>> snow. did she say snow? >> i wasn't listening, del, i'm blocking it out. as a former resident of alaska, i should know. >> the reason why a former california teacher faces multiple charges of committing sex crimes against children, this video was originally posted on you tube by the accuser. >> yes, it was titled a call to my childhood rapist. 15 years after the alleged abuse, the 28-year-old said now that she has children of her own, wanted to confront her accused rapist. she picked up the phone and called her former teacher directly while recording the call on you tube. the video went viral. a teacher turned assistant principal in southern california quickly lost her job. the video prompted a second victim to come forward. that all led to formal felony
7:23 am
charges against the teacher. >> i was only 12 years old when i met you. do you realize that you brainwashed me and you manipulated me, and that what you did was wrong? >> yes. and i regret it. >> she remains in jail on a $5 million bail. now 15 years has passed since the alleged abuse, so the statute of limitations, which is 10 years in colorado ran out. they thought she could not be charged. while law enforcement is moving forward with charges anyway, her lawyer is going to ask for the case to be dismissed based on the fact of the statute of limitations has run out. >> are there any exceptions on statute of limitations. yes, a case can be opened if there is independent corroborating evidence that is admissible in court. >> i guess the question has to be asked, is candace facebook
7:24 am
video, this you tube video be used in court? >> that's the big question. the judge will make that decision. we talked to one criminal defense lawyer who said it is against the law in california to record i incriminating informatn against someone without their knowledge. >> facebook celebrating year 10 today, the site started at a dorm room in harvard in 1984. the world's largest social media network is marking the milestone with a bigger push to mobile, facebook attracting more than 1 billion members now, that site used by 57% of all adults and nearly half of the global population that has internet access. >> one huge market facebook has yet to pen straight is china. the government blocks the site from operating and as craig leeson reports, that ban may actually be creating an
7:25 am
opportunity for competitors to challenge the social media giant. >> facebook's month active user base of 1.15 billion people is being actively challenged across the globe here in china. in fact, four of the top 12 social networking sites are now china based, companies have taken advantage of the chinese government ban on western platforms like facebook, twitter and infra gram to take hold of the massive market filled with people desperate to become connected. >> it is very annoying to use facebook in china, because you must go through a proxy, but i can use others at any time. >> a lot of useful information from social information can spread freely, but in china, everything is blocked or filtered. >> as internet users move to mobile devices, chinese companies like we chat are becoming more popular, a clone of what's worked extremely well
7:26 am
as a mobile application. it has 600 million users across the globe, but is looking to expand that by opening its doors in palo alto, california. that's just down the block from facebook. one of the problems that we chat has, though, is that it sensors chinese content. one of the challenges it will face is whether easies are will to sacrifice the convenience of its chatting platform for freedom of speech. aljazeera, hong kong. >> coming up at 8:00, the changing face of facebook and why it may not be the happiest of birthdays. what's next for the social media giant. an insider covered the popular website from the beginning shares his thoughts. >> wall street could rebound after yesterday's massive selloff, dow futures up. yesterday, the dow posted its biggest drop since last june and it's decline this year.
7:27 am
one market watcher said investors remain on edge. >> having several triple digit loss days is fairly dramatic. we could see a significant correction of 3% or 4%. it depends on what the fed policy going toward is, how much tapering they do, what numbers we're seeing going forward. every number's going to be looked at closely. >> european markets with more selling, nikkei tumbling more than 4% to four month lows there. hong kong losing 3%. shanghai remaining closed for the new year in china. >> to it shares were not spared, stocks fell in asia despite an upbeat look from the company, raising its profit and sales forecast for the year after
7:28 am
reporting earnings that rose more than five fold to $5.2 billion in the last three months of 2013. a week yen helped make its exports less expensive and boosted sales. toyota had the most recalls in 2013. the automakers topped 5 million vehicles. the national highway safety transportation administration said overall car makers recalled 22 million vehicles last year, a nine year high and up 9% from 2012. >> the federal government wants your car to start talking, in fact all cars. >> it's all part of a plan to have them communicate to talk to each other. >> the technology that will make that possible and save lives. >> there is a no boss at the federal reserve. we'll tell you how janet yellens plans can affect your finances.
7:29 am
7:30 am
>> al jazeera america is a straight-forward news channel. >> its the most exciting thing to happen to american journalism in decades. >> we believe in digging deep. >> its unbiased, fact-based, in-depth journalism. >> you give them the facts, dispense with the fluff and get straight to the point. >> i'm on the ground every day finding stories that matter to you. >> in new orleans... >> seattle bureau... >> washington... >> detroit... >> chicago... >> nashville... >> los angeles... >> san francisco... >> al jazeera america,
7:31 am
take a new look at news. >> good morning, welcome to aljazeera america. i'm libby casey. >> i'm del walters. janet yellen forced to face a rough day on the new job. the u.s. markets yesterday taking a huge hit. >> controversy in california, as officials work to clean one of the most notorious jails in america after allegations of abuse. a rare visit inside the facility. >> the countdown to sochi is on.
7:32 am
just three days to go before the games get underway. russia is saying that its ready. >> first, talking to your cell phone while driving can be risky, but what about cars talking to each other. the technology designed to improve safety on the road. >> u.s. transportation commercials are calling it their moon shot. >> the cross spect of being able to cut according to research perhaps 70% to 80% of the collisions and accidents that are happening around the country. that is a huge advance in safety, one that i don't think can be overstated. >> it's a moon shot where we're already halfway there in terms of the development of the technology. >> a u.s. government study will take talking cars to reality. transportation safety has been focused on helping drivers survive accidents but a new
7:33 am
nationwide program aims to prevent accidents by 2017. >> the potential of enormous. >> under the study, 3,000 drivers in ann arbor michigan had wireless devices installed in their cars, communicating with other cars and road side devices, warning of unexpected movement, such as sudden breaking. u.s. transportation regulators are writing rules to require all vehicles to communicate with one another by 2017. >> the technology allows cars to trade basic sift data such as speed and position. the data exchange between cars does not include personal details about the driver of the vehicle. >> as we have been reporting, a changing of the guard at the federal reserve today just day two on the job for janet yellen taking over the rains being sworn as the first woman to lead the central bank.
7:34 am
a senior vice president at a new york based brokerage firm, the dow yesterday, the dow dropping 300 points. not exactly the welcome malt you want. >> there are lots of things going on around the globe and janet yellen stepping into the hardest job in finance. she has challenges ahead, shepherding the u.s. economy and being aware of what's happening around the globe. >> i've heard her described at ben bernanke 2.0. it doesn't seem the market is concerned. >> not at all. the market has benefited by the fed over the last five years. i submit that janet yellen is better than bernanke 2.0 an steroids. he is mod red, janet a did you have on monetary policy. she's not concerned about inflation, it's about unemployment to her. >> most presidents get at least
7:35 am
somewhat of a grace period when they take over the job, but what about the head of the fed. does she? >> not at pull. she's stepping into the hot seat. there are issues and challenges she has got to be aware of. we've eliminated the fiscal dog out of the u.s. government for 2014, so it's all about monetary policy. she's got to shepherd the fed of pulling back on quantitative easing and get back to monetary poles, gauging short term interest rates. 2014 is a critical year for the u.s. economy. there are signs it's slowing down. she has got to worry about the too high unemployment rate. >> a lot of consumers hear janet yellen, blah blah blah blah blah i can't be net yellen and don't understand that she can actually affect them in a lot of ways. what is the biggest way the chair woman of the fed will affect their lives? >> very profound ways as you point out, you're absolutely correct.
7:36 am
the prime my mission for the fed, price stability and low unemployment. when we talk about price stability, we are talking about interest rates. how the curve looks to a consumer will determine what prices they pay for mortgages and other financing needs. the other thing is how much are they earning on savings accounts. last four years they haven't earned anything, as interest rates rise, they'll see a benefit to that, but see higher mortgage prices. >> decades ago, our parents didn't pay attention to the market or fed. now we have 401k's, we know about mortgage rates. as we watch the market do what it has done over the past few days, should we be concerned about this dip, the correction. >> corrections are healthy. you need to have what we call in the business consolidation round, equity prices to determine true value for the prices in any kind of market and
7:37 am
proceed forward. companies are valid on how much they earn and value to the shareholders. we need healthy correction to say get back to a level where there's a lot of value inside the stock market and we can continue on an upward path. >> thank you for being with us. >> police are investigate i go a convict killer's escape from a michigan state prison last weekend. michael david elliot is back in custody after a massive manhunt across two states. elliot kidnapped a woman shortly after escaping. the woman called 911 when he stopped for gas. the police explained how they were able to track him down. >> the laporte county sheriffs department engaged in a vehicle pursuit of a stolen vehicle that was reportedly stolen out of the city of laporte. i tried to make a traffic stop, the vehicle sped away. a pursuit ensued. at the end, the vehicle was
7:38 am
stopped, and the driver who was later identified as michael elliot was taken into custody and currently held at the laporte county sheriff's department. >> he pried open two electric fences. they are currently investigating why the security system failed. elliot was convicted of killing four people back in 1999. >> the execution of a louisiana man convicted of killing his 6-year-old stepson is now on hold. a judge granted the death row inmate a three month stay while the courts determine if the state's new lethal injection plans are constitutional. louisiana's corrections department opted for a new drug cocktail after a long-used medication was discontinued. the new method may vital is right to be free of cruel and unusually punishment, argues his lawyers. in ohio, it prolonged a struggle after lethal injection. >> endo its and resignation,
7:39 am
with that as a backdrop, going inside one of the most controversial jails in the country to find out what's gone wrong. a four part series is airing called crime and punishment. we have the story. >> i'm lying face down with my face on the ground, my hands behind my back and i have about four or five officers come around me and then i hear this. >> that's what happened when he went to visit his brother at one of the most notorious jails in america. the men's central jail in downtown los angeles. this is an x-ray of his arm, taken shortly after the incident. >> i started hearing stop resisting, stop resisting. i yelled out, i'm in handcuffs. >> critics say at a culture was condoned by the department's brass, including the sheriff himself. after 15 years in office, baca stepped down last week.
7:40 am
his resignation was hated after federal authorities announced charges for 18 officers who worked at the jail. this man's story is one of several recounted in the indictments. >> it wasn't just jailhouse visitors like figueroa mistreated by deputies. the entitlements made clear inmates were harshly treated, as well. >> a young gentleman was a pretrial detainee and was brutally beaten by three deputies. >> a civil rights attorney has represented several former issue mates. >> his face is beat to know a pulp. >> his eyes were black and blue and shut closed for a month and his ankle was broken in four different parts. >> what did he do to provoke this kind of beating? >> he didn't do anything to provoke that kind of beating. >> the sheriff's department wouldn't comment on that case, or mr. figueroa.
7:41 am
sheriff baca's office declined our request for an interview. >> the surplus is spent on maintaining the building. >> we were given a tour of the men's central jail, by the man sent here to clean things up. >> jails across the country. >> he oversees day to day operations in the jail. >> so this is the 3,000 floor and as you know, this is one of the floors where people alleged some of the wrongdoings were most serious. is there abuse happening at this jail or has abuse in the past happened? >> we had problems back then, was it as ham pant as the media portrays it? no. i've doubled my supervision. we've changed protocols and gone back to the drawing board. >> a judge awarded figueroa $320,000 for his ordeal. that is currently being
7:42 am
appealed. >> in the end, though, figueroa said what's most important is that the truth about what happened to him is finally coming out. >> aljazeera america, los angeles. >> the second part of our crime and punishment series takes a look at that recent controversy over lethal injection drugs. states are turning to new combinations with sometimes gruesome effects. >> we are three days away from the olympics in sochi. some are rushinging to finish building hotels and a mall. russia has been preparing for the seven years. they built a high speed train line, electric power stations, also a series of resort village and sporting renays. the cost has jumped to $50 billion, far beyond initial estimates. >> joining us to discuss the status of russia's limb pigs is
7:43 am
robert donaldson, former head of russian studies at the university of tulsa. good morning, professor. russian officials say sochi is ready for the games and president putin staked his own image and the countries reputation on its success. how ready is sochi to be abinternational host city? >> well, i think sochi is about as ready as it can be. the facilities are supposedly ready, and they're in great shape, and the city itself outside the major areas where the athletes will gather or where the events are held is going on pretty much as normal. it's a city of about 300,000 on the black sea coast, and i'm sure it's readied for the attention that it's going to get. >> the winter games have racked up a price tag upwards of $50 billion, paying for basics, bribes and kick backs.
7:44 am
give us a sense of how rampant corruption is. >> there was a report by the main opposition leader to putin that outlined how much to each one of the oligarchs, how much to each state official, alleges that obviously a good bit of it was in the form of kickbacks. $50 billion is an incredibly large figure when you consider that the original estimate was about 14th of that and that this is probably more expensive than all the other winter olympics in history combined. >> we saw so much press about russia's anti gay law overshadowing much of the press for the sochi games. where will things stand and will that be a theme throughout the games? >> this is a law banning what they call gay propaganda. i think it certainly has inflamed the human rights community and there will be pro
7:45 am
tests. the russians have arranged for those to be miles away from the actually olympic sites and they'll claim, of course, that they're not discriminating against gays per se. this certainly has put a black eye on putin at a time when he's trying to present the best face to the world, and obviously he does not want a second black eye, which is what they're worried about with the security situation. >> let's talk about security. the organizing committee chief said sochi right now is the most secure venue on the planet. what is your take? >> that's the kind of statement i wouldn't make, because it's sort of a direct challenge to the terrorist organization that has threatened the games. it is certainly very secure by land and even allegedly anti missile missile in placements, but that's the venue itself, and
7:46 am
when you're talking about getting to and from and talking about a lot of soft targets, this terrorist organization, which is based in the northern caucuses and is an extremist islamic group, is trying very hard to hit targets of maximum impact. they hit a middle school in russia 10 years ago. they hit a broadway style theater in downtown moscow. they've hit metro stations, hospitals, and it is just almost impossible to defend all the soft targets that might be available to these terrorists. >> the games just three days away. thank you so much, robert donaldson, former head of russian studies at the university of tulsa. >> to that other big sporting event, superbowl xlviii with a record number of viewers. neilson saying more than
7:47 am
111 million people tuned in for the game. it became the most watched television event ever, narrowly beating out the superbowl between the giants and patriots. >> because the superbowl is such a very big deal, there's a significant retirement that got lost in the shuffle over the weekend. we have more about the career of david stern. >> a very, very important retirement. that's why i want to mention it. david stern did retire over the weekend after 30 years at the helm of a league that was a mess when he arrived. stern helped turn the nba from a major sports also-ran into a global juggernaut. we have more on stern's legacy. >> he's been unbelievable if not the best commissioner of. >> the league was a distant third to major league baseball
7:48 am
and nfl when he took the helm. the nba lacked any national appeal. evidence by many playoff games being televised on tape delay. >> we had to get more than five days on network television. we had to not cut out franchises. we had four getting ready to file for bankruptcy. there was a whole list of things that we had to avoid, not that we had to do. >> in the first few years of stern's tenure, he removed the leagues drug stigma and turned the nba into a madison avenue darling by marketing the best and most charismatic players, magic johnson, larry bird and michael jordan. >> he pushed the game into the 1990's, spearheading to put the nba players in the olympics. the success of the dream team in barcelona led to an unprecedented growth of the sport domestically and abroad,
7:49 am
crating the women's basketball association, the addition of seven new nba franchises and skyrocketing viewership. he guided the league during magic johnson revealing that he was h.i.v. positive. >> it was horrible. you know, initially, just because we sort of knew that magic was going to die, because that was the conventional wisdom or perceived wisdom. >> lockouts during the 1998-19199 season and 2012 season. 146 games worth of suspensions and $10 million of losses for nine players. the gambling scandal involve i go former referee in 2007. >> david is the one who turned sports leagues into brands. >> even through troubled times,
7:50 am
the nba bounced back, usually with record profits. during stern's 30 year tenure, the league has seen a 30 fold increase in revenues as every team is built or completely renovated its home arena leading to gate receipts last season. fobs estimates that the average franchise is worth $634 million, compared to just more than $17 million in 1984. the players have profited, as well, pulling in an average salary of $5.15 million, the highest average of any professional sports league in the world. stern was the driving force in the increase in charitable endeavors. in 2005, the league launched nba cares, raising more than $225 million for various charities. just another reason why david stern will be remembered as one of the most influential people in sports history and maybe the best commissioner of the sports league ever. >> our michael eaves reporting now.
7:51 am
adam silver takes over at commissioner. silver joined the league office in 1992, and has been deputy commissioner since 1996. >> think about this as you think about some type of gift that you might get. giving the gift of goats. >> it's part of one veterans plan to help the people of afghanistan. >> we'll tell you what he has to say about why he believes the animals can do a better job and lead to a better life for afghans. >> a new warning about sugar, the damage officials say the sweet stuff can do to your heart. this is the 900 page document we call obama care. and my staff has read the entire thing.
7:53 am
7:54 am
snow and rain across the country today. nicole mitchell is here with the weather. >> yet another round of winter weather as we get farther into february. we're going to see the system in the midwest and central plains continuing to develop more moisture with this and as it moves across toward the east coast, you can see this morning some of the weather, arkansas freezing rain. north that have is going to be snow and heavy accumulations in states like illinois. back to you guys. >> there's a new study out showing sugar may lead to a greater risk for heart decease. according to the centers for disease control, a diet with too much sugar increases the risk by more than a third. cardiovascular disease is the number one killer. adults taking 15% of their daily calories from sugar, more than doubled than the recommended 7%. >> an american veteran found a
7:55 am
simple solution to some economic problems in afghanistan. his plan involves goats. aljazeera has the details from iowa. >> from his dining table in iowa, lt. colonel rick burns has been formulating a plan for helping the afghan people help themselves. >> i have very personal relationships with people in afghan. these are people i consider to be friends. >> he spent nearly three decades in the army national guard and reserves as a civil affairs officer. he has seen the problems of waste, fraud and abuse firsthand. >> we have not gotten it right when it comes to the development of peace. we tend to think that if they spend enough money, we'll fitch the problem. we've spent a lot of money in the world and haven't fixed some of these very basic problems. >> the u.s. has appropriated $96.6 billion for relief and
7:56 am
construction in afghanistan since 2002. another $6.5 billion has been approved for 2014. >> he was looking for a simple solution to a complex problem. he believes he may have found it in the form of goats. >> burns non-profit aims to give two dairy goats each to 15 families. >> i think the simplicity is if you take an afghan family that has nothing and give them two goats, you created a whole, huge increase in nutritional value for that family, but you've also create add revenue stream for that family. >> the program will set up a central facility with milk processing equipment and train the families to collect the milk that can be used to make yogurt and cheese. students at the local high school got involved, raising money through bake sales. >> steady of giving them things that they're going to use up and not have anything to live on it
7:57 am
is sustaining. i thought the goat projects would be good. >> 7,000 miles away from iowa is horot city where partners are prepping for the goats. while burns understands it is just a drop in the bucket to solving afghanistans problems, he said every little bit helps. >> whatever you do will never be enough, but it's enormously important that you do it. i think these efforts are enormously important. >> important, sustainable and more his friends on the other side of the globe, potentially life-changing. >> rick burns has raised more than $10,000 for his project. we have a look at what we're following this morning. >> so many puns, so little time. >> global markets are down after monday's big selloff on wall
7:58 am
8:00 am
>> this industrial accident affected our school system, and invaded our homes. >> some people in west virginia still afraid to drink the water, congress demanding answers on that chemical spill that left more than a quarter of a million people high and dry. >> a ripple affect, the largest wall street plunge in 70 months. >> you should be so ashamed and so disgusted with yourself.
8:01 am
>> i am. >> selling a score on the worldwide web, the woman took to you tube to expose the teacher she said abused her. >> facebook turning 10, but may not be the happiest of birthdays. the trend that has the social network looking to make some new friends. >> good morning, welcome to aljazeera america. i'm del walters. that west virginia chemical spill prompting hearings on capitol hill this morning, a senate commit key will investigate 300,000 people left without drinking water. people who were affected by the spill got to express their frustration directly to state lawmakers. >> my eyes, my skin are inflamed by the chemical in the water. i have $100 antibiotic in my
8:02 am
packet to take care of that. my skin gets red and itchy on contact. i can handle it, i'm a big boy, but therear lot of folks who can't handle it. >> who is going to be on the hot seat today in washington. >> good morning, del, in washington this morning, the senate committee on environment and public works will look at safety and security of drinking and water supplies. in attendance and on the hot seat will be west virginia secretary of state, also west virginia secretary of environment. people will be asking them very specific questions about their emergency management systems here, how something like this could have occurred, what people are doing as far as propositions for regulations here in the state of west virginia and also what the federal government is going to do in the coming months to have something like this never occur again. >> last night, that they heard from the people there in
8:03 am
charleston, west virginia, the people has have to pay directly for the chemical spill. i want you to listen what one woman had to say and we'll talk about it at the back end. >> i'm not a scientist, an activist maybe if you consider being here and speaking tonight as activism, but like a mother bear, i'm here to protect my children. every time at bedtime we ask our girls what do we always do? we do the right thing. we are asking you to do the right thing. >> so as you listen to women like that, how hard is it going to be to regain their trust in west virginia? >> very hard, del, and one of the sentiments in that house chamber last night, a lot of people kept bringing up that they love their state, they love west virginia, but the question that keeps going around circles is do they stay, do they raise their family here, want their kids living in an environment like this. that is the big question.
8:04 am
a lot of people here are still not drinking the water here. this is a very serious situation. business owners have taken major financial hits and wonder what the rest of the world must be thinking. what is the image of west virginia. why would anyone want to invest in a state with environmental hazards and very little regulations. these are the issues brought to the forefront. listen to this quote from a person who lived here his entire life. he said i love this state, thought i would never leave, but now it's a real consideration. very troublesome times here in the state of west virginia and people looking and hoping that state officials take these regulations, put them into law and actually act on them this time and not push it to the side as they have so many years in the past, devil. >> robert, on top of all of that, freedom industries declares bankruptcy. >> it is in deep trouble, the
8:05 am
company blamed for the spill on the elk river in bankruptcy, though the lawsuits keep coming, but they are protected under chapter 11 right now, but the company not coming out and saying anything to the public or the press since that awkward press conference january 10 where one of the people has run the company was actually drinking a bottle of water. del. >> robert ray joining us from charleston, west virginia. thank you very much. what is in your wallet this morning? stocks taking a dive after u.s. factories reported they're largest drop in new records in 33 years, sending the s&p and the dow to the west dive in dick cased. that is the largest drop since last june. the s&p dropping more than 40 points or 2.3% closing at 1,174. no, actually i think i got that
8:06 am
wrong, 1,171. stocks reached record highs just two weeks ago. >> the mood turned quickly on wall street monday as the smiles and applause at the opening bell didn't reflect the beating the markets took at day's end. the dow tumbling 326 points, now down more than 7% since the start of the year. >> the s&p 500 nose diving to an october closing low and the nasdaq suffering its first triple digit plunge in two years, showing no growth in the u.s. manufacturing sector, which hit an eight month low aided in part by the biggest drop in new orders since 1980. another reason, the weather. january's record-setting deep breeze meant delayed shipments and the closing of factories.
8:07 am
>> when we got the manufacturing report, it sort of added gasoline to the fire and that's why we ended up in the red. >> then there's china. markets across asia also slumped with news of the world's second largest economy also reported chinese factory data fell below expectations. >> so i think investors are now worried that global economic growth could be hindered. >> adding to the triple digit do you drop, the seventh already this year, worries that the u.s. economy may have hit a soft patch after record setting highs at the end of 2013. >> the economy lost momentum through december and january. there was some concern about the fiscal situation. the debt ceiling has to be raised. >> washington may be pressured to recognize it. the treasury secretary wants a deal this week or emergency measures have to kick in to avoid default. >> what we can't do is we cannot for a moment accept the notion
8:08 am
that for the first time since 1789, the united states would not pay its bills in full. >> history being made in washington as janet yellen became the first female to chair the fed. a tough first day on the job, whose chief mission will be addressing a there you goish economy, especially jobs. that numbers report comes out friday. >> a miss on friday will most likely mean another dive for the dow and s&p. >> aljazeera. >> those market losses spread worldwide morning with asian stocks tumbling. >> chris christie is countering critics who say he knew about the bridge scandal, continuing to deny being involved in the controversy lane closures on the george washington bridge. several of his top aids face
8:09 am
subpoena to say find out what the government knew and when. >> it's just a game of gotcha, when did i first learn about this or that. well, the fact of the matter is i've been very clear about this. before these lanes were closed, i knew nothing about it, i didn't plan it, i didn't authorize it, i didn't approve it. i knew nothing about it. >> 20 seasons have been issued so far in that bridge scandal. one of christie's former aides now taking the fifth. >> the courts determine if the state's new lethal injection plans are constitutional, louisiana opting for a new cocktail. the inmate's attorneys argue his rights could be violated against cruel and unusual punishment. in ohio, it revealed a long and
8:10 am
difficult struggle after the lethal injection was administered. >> a you tube video is behind the arrest of a former california teacher facing sex crimes against children. this video was originally posted by the accuser and now she's getting results. erika. >> that's right, del, her accused rapist is in jail this morning on $5 million bail. the video is aptly title a call to my childhood rapist. the young woman never talked about the sexual abuse before she posted the video lasted month. now that she has children of her own, she wanted to confront her alleged abuser. she called the teacher directly, recording the call on you tube. >> you should be so ashamed and so disgusted with yourself. >> i am. i am. >> in a confrontation on you tube, 28-year-old jami called her accused rapist on the phone years after the alleged abuse at
8:11 am
a southern california middle school. >> i was only 12 years old when i met you. do you realize that you brainwashed me and you niche lated me and that what you did was wrong? >> yes. and i regret it. >> the video went viral. within hours, it got more than 100,000 hits. within minutes, the current california school district fired the teacher turned assistant principal. while she lost her job in january, she still had her freedom. >> she shouldn't be on the streets at all. >> but so much time had passed since the alleged abuse, the statute of limitations had run out. >> this is what she's getting away with, because of the statute of limitations. does that seem right? >> not according to local law enforcement, which began an investigation. soon a second victim came forward, saying she abused her
8:12 am
in 2009. now, the former teacher faces felony charges. >> she ruined my life, why should she get a life? she is charged with 16 felony counts of sex crimes with underage girls. >> in california, a case can be opened after the statute of limitations has run out if there is admissible independent corroborating evidence. the big question here though, is this admissible. the teacher never knew she was being recorded when she incriminated herself and that kind of evidence is typically not allowed in court. del. >> a fascinating story. >> a sea tragedy. after two young children are found unconscious in a swimming pool on a across ship, one of them, a 4-year-old later died. the 6-year-old also found in the pool was revived and flown to a nearby hospital. they believe the younger child drowned and they are investigating that accident. >> same-sex couples filed a lawsuit to overturn wisconsin's
8:13 am
ban on gay marriage. that lot argues that the ban deprives gay calls of the same legal protections of straight married couples. >> they only want what every married couple wants, to express their love, commitment in front of friends and family and the security and dignity that marriage provides. >> 17 states and the district of columbia currently allow same-sex couple to say marry. under wisconsin's law, couples who live in the state and go out to marry could face prosecution when they return. >> after a weekend of mild winter weather, the northeast is bracing for a triple threat. it began monday when a massive winter storm slammed the region. with heavy, wet snow, new york being hit with eight inches. some saw more than a foot. it was worse in new jersey, fallen frees and terrible road conditions forced governor christie to declare a state of emergency and it is going to get
8:14 am
worse. airlines righted now are bracing for what could be another storm system coming into the area. this weekend, a nor'easter, nicole mitchell joins us with the latest. >> this same storm system is causing problems this morning in the central plains. we've and got lot to talk about over the next couple days and then another system on top for the weekend. as we can see, this system actually started off in the west coast. you can kind of see it develop along and it hit that gulf moisture, so it's got a lot more moisture to work with now as it gets into the central plains. because of that, we ever places like arkansas this morning, widespread reports of freezing rain making roads treacherous. you want to be careful if you're headed out at all. maybe not traveling would be the advisory. you can see the darker bandings of colors, that's heavy snow in some places. by this afternoon, indianapolis
8:15 am
in time for the return commute, later tonight hits the east coast and then stays for a lot of the day tomorrow. this is going to have far reaching i am facts. in fact, these different winter storm warnings, just the warnings, 24 states out there, advisories around all that have. this is about half the country that's going to feel something with this. today, here's totals we will look at then more into the northeast tomorrow. around the great lakes, some places over a foot of snow into missouri and into illinois, we could see eight inches or more. more of this spreads into the east coast during the day tomorrow. this one's a messy one. >> that's exactly what everybody wanted to here, thank you very much. >> it is a tough day for the dow, global markets tumbling. one veteran market watcher weighs in with his read on the damage and what he says lies ahead. >> an executive from target grilled on capitol hill.
8:16 am
8:18 am
>> anxious times on wall street following a rather difficult day for u.s. markets. monday selloff having a ripple affect around the world, stocks falling in asia, nikkei down 4%. the david nelson joins us. let's take a look at yesterday's numbers, the dow dropping more than 326 points, the s&p more than 40 and nasdaq almost 117 points. is this that correction we have been hearing so much about? on the part of investors, they're probably operating it is.
8:19 am
>> this is the correction. i think the debate is going to center about how deep this is really going to be. some analysts are looking for a 20% to 30% drop in the dow and s&p over the next several months. i'm not one of them. this is a correction, i can't tell you whether we're near the bottom right now. i think we have support a little bit lower than this or whether it's a 10% or 15% correction. we get these, this is certainly it. >> a 30% drop would take us back to where we were this time. >> that's not going to happen. i'm on record. i don't believe this is 2008 and it would take a systemic event. >> what sconce statutes a correction? >> it is really anything over 10%. we're not quite there yet, although some markets around the world, obviously japan you mentioned had a terrible night last night down 4%. they're down 14% so far this year. >> what led to this particular correction. we keep hearing that the fundamentals of the economy are strong. does this have anything to do with the fundamentals of the
8:20 am
u.s. economy are are we now looking at that global market? >> it's a little bit of both, del. the trigger was the emerging markets. the economic data hasn't been great since the start of the year, we started poorly in early january with the first jobs number. that was well below expectations. yesterday's i.s.m. number really showed that that concerns investors and concerned me. that prompted the big selloff yesterday. some economists are pointing to weather. that's part of it. >> you think that's wishful thinking, though. >> i think it is certainly a factor, it's not the whole story. this is probably a speed bump in here and there's probably some sort of a slowdown. i don't think it's more than that. i'm still sticking to my call for the year. i think we're going to be up decently for the year. >> what's fascinating is a lot of people look at their 401k's
8:21 am
and notice their bottom line is closer to the bottom and tempted to get out of the market. this would be the worst time to do anything. >> it is. all last year, everybody was looking for an opportunity to get in. last year was a market that didn't give you an opportunity to do that, and they were all looking for the dip. they said as soon as we get a dip, i'm going to buy. unfortunately fear takes hold and when we get that dip, they stand to the five lines thinking 5%'s going to be 10, 10 is going to be 15. >> in this market we're seeing right now, where are the bright spots, the places we should be looking to invest? >> despite some of the big misses we had in some companies like apple or bowing who had a great quarter, but the guidance poor, there's been standouts, facebook, google, everybody thought retail was dead,
8:22 am
obviously someday's buying. >> thank you for being with us this morning. taking a look at other business news, wall street showing signs that investors might be ready to shake off yesterday's selloff. dow futures up, blue chips starting the day at 15,072. one market watcher saying it may be time to scale back. >> there's opportunities in the market, but i think we are looking at a fairly significant correction from where we've been, so i would advice investors to be cautious, maybe take some money off the table and leave some in cash for sometime. >> european stocks picking right up where wall street left off with more selling. a disappointing report on manufacturing sending the stock market into freefall yesterday. some investors will be playing
8:23 am
close watch on december factory orders, economists looking for a slight decline. that report comes out at 10:00 a.m. eastern time. >> wal-mart is tightening its presence in canada, the world's biggest retailer set to invest a half billion dollars. they will build 35 super centers in canada by next year. the development will create jobs for canadians. >> forget set to hear on capitol hill this morning, the focus of the hearing on the holiday season data breach that exposed the personal information of more than 100 million shoppers. we have more on what target will be saying before the senate today. >> there's now word that it's happened again at 14 hotel chains across the country, in their restaurants between last march and december. that's likely something that will come up today as target tries to explain what they're doing next. >> ahead of today's testimony
8:24 am
before the senate judiciary hearing, target's chief financial officer says the company will early up its deadline to put smart chips in target credit cards. target now plan to say get it done about a year from now, six months earlier than planned, and months before visa and master card. >> the chips make it impossible for hackers to use stolen credit card numbers in stores, but don't prevent fraud on line. today's hearing is the second of three on capitol hill investigating the holiday data breaches. at a senate banking hearing monday, lawmakers pushed for companies to notify customers faster when their information's been stole june there are state law that is require breach notifications that may apply to retailers, but there is no federal -- >> so there's no preach requirements across the board. >> they're pushing for tougher penalties. >> albert gonzalez was convicted in 2010 of stealing 40 million credit card records that he made so much money off of this, he
8:25 am
even bought his own italian island. >> target said 40 million credit card numbers were stolen bus personal information from 70 million more. >> niemann marcus also had a breach over the holidays. their chief information officer will be here to testify, also. >> tracy pots in washington, thank you very much. our other big story this hour, the weather. another bought of winter weather could be moving in, two could be on the way. nicole mitchell has been tracking the storm. >> we'll tell you about the weekend system later into the week, but yes, another could be coming for this weekend and early next week. we already have one in the central plains. as this moves across the country, that dividing line, memphis versus chicago could be rain versus snow depend, inc. where you are, freezing rain with the temperatures in arkansas this morning. east coast, temperatures in the 30's today. that's going to be critical tomorrow. anywhere from new york to
8:26 am
philadelphia with temperatures during the day around that freezing mark, freeze in rain, snow, sleet, all possibilities, just variance of a temperature or two. >> people from all over west africa dream of going to university in senegal, drawn by the strong reputation of the education system. as we report, rising tuition is pricing a lot of them out of the market. >> homeless, and broke, but determined to finish university. for now, this abandoned building is where this 20-year-old student eats, sleeps and studies. he says living like this is a small discomfort worth going through for the chance of getting a higher education in senegal. >> the university is famous and degrees have a good reputation throughout the region. after that i'm sure to get a job. >> the tuition fee for a year is one dollar. the government said these aren't
8:27 am
sustainable rates. >> our universities attract many foreign students from french speaking africa. we want senegal to become a center of education for the continent and to do so, we need to find more funds. >> authorities want to cut student financial aid and raise tuition fee to $50 a year. for many, it's unaffordable. dozens have been injured in protest. most public universities have had to shut down as a result. these reforms come at a time when san gal is advised to reduce state spending. students accuse them of cutting the education budget instead of reducing their own expenses. >> 95% of the students are children of farmers, the first generation pursuing a higher education. we can't afford to pay more for it. >> the government and students have been in talks for nearly a
8:28 am
month. meanwhile, lectures are canceled, students have lost a full term. >> there is growing i am patient among students who fear if these negotiations drag on, they'll lose a full academic year. >> this has left him wondering whether he'll be ail to complete his degree. he now believes higher education should no longer be a luxury for the few, but the right for the many. >> they got hundreds of thousands of dollars for recruiting new members to the army national guard, but several guardsman accused of faking it and taking that money. congress is demanding answers. >> a crucial vote set in ukraine could end weeks of violent protests there or spark even more chaos in kiev. >> u.s. athletes are set to go in sochi. are americans worried about their safety? some u.s. athletes are speaking out.
8:31 am
>> the senate holding a hearing today looking into the army national guard's recruiting program, that offered bonuses for recruits. tens of millions of dollars were mishandled. mike viqueira is in washington d.c. this scandal is described as one of the largest fraud investigations ever to hit the army. >> when you consider that it was considered one of the army's most successful recruiting programs in the entire history of the united states military and some individuals alleged to have defrauded the government as much at $275,000 in one case, it certainly might fit that bill. during the height of the wars in iraq and afghanistan in 2005, the army instituted a program. they would pay a finder's fee
8:32 am
for individuals who got people to join the army, to sign up for the army. you remember those stop loss programs, long tours in afghanistan and iraq were really depleting the ranks. this helped a great deal. recruiting suddenly skyrocketed in 2005, but soon after that, there started to be allegations about two years later of fraud in this. recruiters, formal army recruiters were not permitted participate. it was their job to bring people in and sign people to the army, but what was happening, these are the allegations is that some recruiters, folks would come in to sign up or ask questions about the army and if they ultimately enlisted, then these recruiters would go to a third party and say look, tell somebody that this was your friend, that this is an individual that you asked to come in to the recruiting office and enlist and then they would split it. some 1200 people under investigation for defrauding the army.
8:33 am
some $92 million, up to $100 million defrauded the united states government and army. >> the congress will want now how this went undetected. >> they discontinued the program in 2012 after allegations of fraud. there was an audit in 2009, the first allegation in 2007. they stopped it. it's now coming to light as stories in the media surrounding this hearing today. it's not good news for the pentagon, dealing with scandals on many fronts, sexual harassment allegations in the army, rape allegations at the united states naval academy in annapolis. there are counterfeit poker chips in iowa cost one general his job, so bad news for the pentagon on the hill. >> mike, thank you very much. >> police want to know how a convicted killer managed to escape from michigan state, a prison there over the weekend. michael david elliot now back
8:34 am
behind bars but not until a massive manhunt. elliot kidnapped a woman shortly after he escaped. she then called 911 when he stopped for gas. police explained how they tracked him down. >> the laporte county sheriff's department engaged in a vehicle pursuit of a vehicle stolen out of laporte. tried to make a traffic stop, the vehicle sped away. a pursuit ensued. i have no idea how long that lasted. the vehicle was stopped and the driver who was later identified as michael elliot was taken into custody and currently held at the laporte county sheriffs department. >> elliot managed to pry open two electric fences. they are currently investigating why the security system failed. elliot was convicted of killing four people in 1994. >> it is the third day of deadly air raised in the syrian city of aleppo. barrel bombs have killed 150 people. this footage shows children
8:35 am
among those injured. the government led air raised have killed more than 700 people in six weeks. >> ukraine's opposition pushing for constitutional reforms today. they are calling for the penalty's powers to be reduced, also calling for the release of prisoners there. as aljazeera reports, not everyone in ukraine is against the government. >> a confrontation flares. supporters with closer ties with europe nearly come to blows with activists determined to stay with russia. in the end, the anger turns into a snowball fight. tensions here are running high. >> outside the city hall, a mirror image of the tents ecorrected in independent square, but theser manned by so-called battle groups determined to prevent occupation
8:36 am
of buildings by anti-government forces. headquarters has been bar indicated. a small force of police guards the entrance. new volunteers arrive every day, saying they can summon up to 1,000 men if needled. >> i am a russian. in 1998, i came to ukraine, but still am a citizen of russia. life here is good and my feeling is that ukraine and russia are two brothers. that's why i came here to support those protesting against western meddling here. >> the russian orthodox faith has been rooted here for hundreds of years. the monks are appalled at what is happening in kiev. >> this situation may be used by
8:37 am
the extremists, by these armed terrorists, but these nazi movements. sure, i want to tell them that your opinion is not the opinion of all the ukrainian people. >> the city's port is locked in a sheet of ice that has turned the black sea white. it's here on the famous owe did he say is a steps of the anti-government forces are mounting their nightly vigil. famous because the epic battle ship was shot here. scenes that have inspired generations of film makers, but there was nothing inspiring about the number of protestors mustered overnight. we visited the rally. >> it seems the cappuccino makers here are not doing as much as their counterparts in kiev. the protests here are falling on frozen ground. >> as that political crisis
8:38 am
deepens, the u.s. and europe are working phon a financial package for ukraine. >> there are notes of kim jong-un released this morning, showing the country's state run media showing him as an orphanage coming a week he is said to have banished or executed people with close ties to his uncle who was also executed. >> some of the host city sochi is said to be still under construction for the olympics. russia has been preparing for seven years. they built a high speed train line, electric power stations and a series of resort village and of course sporting venues. the project is said that have cost $50 billion, four times the original estimate. the athletes have already arrived in sochi, but the talks seem to go beyond their field of play. we have more on that. >> a lot of issues have got to be worked out over the two week
8:39 am
span was games. the sochi winter olympics begin thursday with a few events on tap that day. the official opening ceremonies will be held friday. there are construction issues and the specter of terrorism hangs over the games, as well. u.s. athletes have arrived in sochi and members of the american bobsled team weighed in with their thoughts on security and their safety. >> i'm not worried at all. i feel everyone has done their job. they realize that there was a threat, they made the appropriate reactions and they have people all around, and i know that this country and our country is doing a good job to keep us safe. i'm going to relax and focus on my competition. >> compared to my other olympic experiences, they stepped it up a notch and are trying to do their best. i don't feel unsecure. i feel i can relax in the village and enjoy being an athlete. >> i don't anticipate us being in anymore harm's way than going down a mountain on a bobsled at
8:40 am
eight miles an hour. >> here's a look at the schedule of day one. these events will happen before the opening ceremonies on the seventh. figure skating, the member's short program and teen short pairs program, as well. freestyle skiing, the ladies moguls qualification will take place. a few events in the snowboarding event, rather than the men's slopestyle qualification and ladies slopestyle qualification. snowboarding athletes have expressed concerns about the steep jumps at the course and now that is set to be modified following an injury to a competitor. he broke his collarbone in practice and is out for the games. the 26-year-old norwegian was attempting a particular at the rail and suffered the injury when he landed heavily on his face and right shoulder. an olympics shoulder said the tops and bottoms of some of the ups would be trimmed to make the course smoother. >> the groupings have been set for the, 14 world cup of basketball, which will be held
8:41 am
in spain in august and september. u.s.a. basketball is the world's top ranked team. the americans won the gold at the 2010 world championships, plus back-to-back gold medals at 2008 and 2012 olympics. the u.s. has been placed in group y., the top challenger in that group turkey. second rank spain was placed in group a., setting up a possible championship showdown with the u.s. the seattle seahawks players and coaches have gotten little sleep since sunday night's superbowl win, arriving back home yesterday, following the team's impressive performance sunday night. the first championship parade for a major sports team in seattle since the sonics won back in 1979. even though the game was a blowout, 111.5 million people warmed the forecast. the superbowl was the most-watched television event in u.s. history.
8:42 am
if game barely beat out the 2012 game, which drew 111.3 million viewers. .2 million more viewers watched this time, if you follow me and that wraps it up for sports this hour. >> you can take one off of that. that game was a drag. >> i'm amazed a lot of people stuck with the game. it was a total mismatch and people hung in there. >> a lot of people saying the same thing. >> it has been the hottest spot on the worldwide web for the past 10 years, but some users are giving facebook the cold shoulder. >> a way where everybody can get ahold of you no matter what and they just know everything about your life. i don't know, i don't like it anymore. >> it may not be the happiest of birthdays. in turkey, there is a proposed new law setting up a road block on the information super highway.
8:45 am
>> straight ahead, we'll telle you about a new trend making it a not so happy birthday for facebook. first, let's find out about a big nor'easter bearing down. >> you're already having major problems that morning. this has made it into the central plains, capping gulf moisture. this is really cranking up and will cause problems through today and tomorrow as it progresses already this morning. widespread reports of freezing rain, so really slick roads in arkansas. you can see darker colors from texas into missouri, the heavier bands of snow that we have embedded in the widespread area of snow. as this moves along today, already by this afternoon, the return commute, places like indianapolis, you'll start to see the heavy snow. later tonight into the east coast and northeast through the day tomorrow, in some places on
8:46 am
the cusp of freezing rain and the north side really heavy snow. yet another system we have to make it through. >> here we go again. nicole, thank you very much. >> facebook turning 10 today. it started at harvard in a dorm in 2004 and now is a worldwide phenomenon. in today's world, it's tough to be cool and popular at the same time. teens could be tuning out. >> conceived in a college dorm room a decade ago, first base has become a behemoth, but a growing number of teenagers have lost interest. >> d.j. has studied facebook's changing demographics. >> what we found is in the last three years, there are 3 million fewer teenagers and we define that as 13-17-year-olds with 18-24 the next demographic up. there's a decline in both and specifically a 25% decline amongst teenagers.
8:47 am
>> to find out what happened. we went right to the source. a bunch of cool kids hanging out after school. >> this whole way where everybody can get ahold of you no matter what, and like they just know everything about your life, like i don't know, i don't like it anymore. i like to have my own life and have the ability to choose who comments on it or not, you know. i feel like with facebook, you lose that. >> snap chat, pinterest and twitter are the social media of choice for this generation it. >> used to be kind of sacred for the family, what are you doing on facebook and now they actually are a part of it, so they can see everybody you're doing. oh, you're out drinking here, oh, thanks, mom and dad. >> the biggest increase in facebook users has been among people age 55 and older. that's like totally uncool. >> i think a hike part that have just has to be tricked to the
8:48 am
rise of parents and grandparents and aunts and uncles on the platform and commenting on photos that teens and young people are posting, and engaging in the way that, you know, advertisers want to see people engaging on facebook, but that's not what teens are looking for. >> what teens are looking for is a parent-free zone on line. >> they want to know what you're doing, check what you're doing, if anything bad. >> many who still use facebook are careful to keep the grownups out of the loop. >> i'm not friends with my dad on facebook, although he does have an act. >> mom and dad now have facebook accounts, but as always, they haven't got a clue. >> shades of my space. nicholas carlson is the chief business correspondent for chief insider. you've been there since years ago. how has facebook changed the
8:49 am
world? >> the biggest thing facebook has changed in the world is back when it first came out, people on line were using fake names, they weren't really being themselves on line. you may pick your favorite team and put numbers at the end of it. people started using real names on line almost for the first time. >> did they learn by using their real names, their real information that there's a backlash? it seems daily we hear of a story where somebody says something on facebook that they wish they didn't say. free speech is not free. >> right, for sure. people regret things they say on facebook, but the reason we hear about it so much is because almost a billion people are using it every single day. for sure, it's huge. >> the numbers are incredible. it began at harvard, 2004, 1500 students, then are you sure roomed to 12 million when facebook allowed access beyond colleges and high schools. that number doubled a year later, today is passing the
8:50 am
1 billion milestone. if it had been mcdonald's, they would be feeding the world several times over in less than a short period of time. why? >> this was at harvard, next day had 1600 people. when they went to new colleges, the servers would crashing. people wanted to be themselves on line. it became a place where everybody could sort of be themselves on line and i think there's a real attraction to that. >> what's fascinating is since facebook, now people are saying we have become a society that communicates on line, but we don't talk to each other anymore. you see everybody walking around and they're texting and sending all of the information -- updating facebook pages, so is there a downside besides just seeing the numbers possibly starting to shrink. >> i don't think people can experience something anymore without taking their phone out and upload, inc. it to something like facebook or facebook.
8:51 am
people are more aware of what's going on in their daily lives. if my mother visits and take a picture, her whole family can see our visit is going wonderfully, you get that like and get that little indoor 15. >> younger people right now are going to say ugh, 57% of adults now use facebook. is that the kiss of death? >> i think facebook is more of a utility. >> by adults, i mean people that are older than me. >> i think facebook is a utility, something that people will definitely continue to have an own but they're going to use other social services, snapshot, instagram, which facebook owns, pinterest, things like that. >> you don't see millennials abandoning facebook pages because the somewhat older folks have joined. >> i think teenagers will have a facebook page, might use a more anonymous service like snapshot. >> thanks for being with us this
8:52 am
morning. >> google, their famous mystery barge could be forced ashore. the four story structure was never authorized. they say permits weren't submitted and google could face fines. that is made up of cargo containers floating in the san francisco bay since last fall. it was supposed to be a high tech showroom. >> the turkish government planning to crack down on the internet, looking for laws to block thousands of web silent there. those changes could impact a popular news website. >> after two decades working around the world for turkish television news, this man was happy to spend more time at home running his internet based t.v. news service, until the government shut off access without warning and without explanation. it had more than 1.5 million visitors a month. >> what is awful about the
8:53 am
decision is it is preemptive. the bureaucrats who claim they can enforce this decision behave as if they were a court. when i go to court, the judge and prosecutors say they don't know about the decision. it is just a mess, a legal disaster. this is the just system now in turkey. >> it is a news and information site, but it's news outside government control in a country that ranks number one in the world for jail journalists. now the government's introduced a bill in parliament which would give more power to the inner net regulators and these bureaucrats working in the telecommunications directorate will be immune from prosecution under the proposed law. we first spoke four years ago when 6,000 sites were blocked. now it's more than 40,000.
8:54 am
>> a group just making decides, we don't know how they make decides, how many they have done, and why they do it, and they don't have any check and balances. >> turkish people are heavy internet users and the coming months will see three nationwide elections. the public's hungry for alternative sources of information. >> the new law enavailables the regulators to shut down websites they don't approve of within four hours. it used to take a couple of days. the government said its defending its citizens from worldwide exposure. others say it's designed to silence critics almost instantly. >> another proposal, internet traffic records will be stored for two years.
8:55 am
critics say it is a turkish version of the n.s.a. the government said it's just doing what other governments already do. aljazeera, istanbul. >> the committee to protect journalists saying internet freedom declined steadily in turkey. this proposed new bill would only compound that problem. >> a new study shows sugar play lead to heart disease. the c.d.c. says a die wet too much sugar increases the risk by more than a third. cardiovascular disease is the number one killer of both men and women. adults take in about 15% of daily calories each and every day from sugar. they say that is more than double the recommended 7%. >> the wife of former president walter mondale died monday. she was an advocate of the arts and promoted the cause when her husband became vice president under jimmy carter. on sunday, her family announced
8:56 am
she was in hospice care. she is survived by her husband, walter mondale, 86. >> that will do it for this edition of aljazeera america. the latest headlines in just two minutes and thank you for watching. we're going to leave you with a shot of things to come. it is a snow-covered central park here, this as the east coast prepares for another bought and a nor'easter that could come into the entire area over the weekend. we invite you to stay tuned to aljazeera for continuing coverage of this latest threat from mother nature as she continues to make her way and make us miserable.
8:58 am
8:59 am
326-point drop for the dow jones industrial average. the dow is down 7% since the start of the new year. russia is warning anti-government protestors not to escalate the situation. parliament reconvened for a new term facing new demands from opposition leaders. >> a senate hearing on the chemical spill in west virginia. last night, people affected by the spill urging lawmakers for better protection. >> the senate is also expected to hold a final vote on the nearly one trillion-dollar farm bill, making cuts to the food starch program, extend farm subsidies and settin setting agriculture policy. >> facebook is marking a 10 year milestone. it has more than 1 billion
9:00 am
members, 50% percent of all adults. "consider this" is next. you can check us out 24 hours a day, seven days a week just by going to aljazeera.com. >> an american sailor suing because of effects from the fukushima in a meltdown. why can't america's military seem to win wars outright anymore? >> the massive nfl concussion. [ grinds to a halt. >> our how many orous take on our biggest generation. here's more on what's
172 Views
Uploaded by TV Archive on