>> the president doesn't want people reading about pink slips in the weeks before his election. so the white house is telling people to keep the effects of these cuts secret, don't tell anybody, he says. keep it a secret. until, of course, after the election. >> all right, his frustration makes sense, except for one fact that's rather unpleasant forth republican side of things, and that is the layoffs don't add up. the defense contractors, for all their complaining about layoffs, cannot seem to come up with how many people would actually lose their jobs at the beginning of the year. here is the ceo of northrop grumman "outfront." so how many people will you have to layoff at the beginning of next year due to the sequestration specifically? >> it's hard to tell exactly today and that's part of the challenge that we're all dealing with. the law specifies a percentage cut and has some description of how that gets applied. we've sought guidance from the

federal government to be more clear about how sequestration would be implemented. >> it's hard to tell, he says. okay. here's the cold, hard truth. with half a trillion dollars in defense cuts spread over ten years, it is not right to claim that 100% of the job cuts linked to that spending cut will come on day one. it doesn't add up. so the president's rule change may not save that many votes. sorry, pink slips. anyway. there's one other thing that doesn't add up from the republican side. and that is speaker john boehner blaming the president for the fact that the $1.2 trillion in cuts are set to take effect in the first place. >> the president came up with the sequester because he didn't want the debt limit to get in the way of his campaign. now these arbitrary cuts are looming and frankly he's no where to be found on the issue. >> this is deeply ironic since speaker boehner voted for the

bill since sequestration is what's going to happen if the super committee fails. anybody who watches this shows knows it's been a tragedy from our point of view. there's been one man tup front about his vote. i am among those who voted for the budget control act and i am obligated to resolve the crisis it has created. here is the man buck mckeon. good to see you. >> let me start on the issue of job cuts because i'm still very confused over what's happening here. there's a number out from the aerospace industry saying there's going to be 2 million jobs lost next year in 2013 alone just in defense. then there's a number out from the nation association of manufacturers saying that 1.2 million jobs by the end of 2014 in defense services all the way across the board.

i get the sense nobody has any idea. >> well, they know it's going to be huge. they just don't know the exact number. we've seen studies from 1.1 million jobs to secretary panetta told me last week, 2.1 million jobs, and i don't know if they're looking at just the defense side or the other side of the issue, but they're talking the sequestration is 1.2 trillion dollars of cuts that kick in january 2nd. actually those cuts are already taking place right now. people are being laid off. people are not being offered jobs because of the uncertainty. >> i'm wondering though on this sort of existential but it's at the heart of this entire debate. the question is we look at the omb numbers for what the country spent in 2012. $902 billion in defense $846 billion on health care, medicare and medicaid. how can you defend spending more money on defense than on on health care when we have a debt crisis?

>> i'm not saying we shouldn't cut defense. i'm saying we've already cut almost half a trillion dollars. that's already in the budget, we understand that. what i'm saying is the joint chiefs had a year to prepare for that. >> but a lot of those cuts -- i'm sorry. i don't mean to interrupt. a lot of those cuts weren't cuts. we're just not going to get the increase. that we thought we were going to get. in an absolutely value, that cut was only about 1%. >> if sequestration kicks in, there are real cuts, and if people could -- if i had the charts here i could show you how in real dollars they are major cuts. >> so let me ask you a couple of questions in your op-ed today that i wanted to clarify. you said in your frustration about the guidance on the layoffs that hundreds of thousands of americans includes those fighting our wars should find pink slips in their mailboxes a few days before election day. i was curious. about that line. people actually fighting could get pink slips. we called the defense department

and read them your sentence. they said that that's just pure speculation, but the chairman of the house armed services committee can prevent it by stopping sequestration. can you tell me where you got that because that was new and very damning that people acting actively serving in the military could be fired. >> there are -- in the government guidelines in the warn act you have to give 60 days' notice. that's for the defense contractors. in some states it's 90 days. but when you work for the government, they call for 115 days' notice. that's why i'm talking it could be -- it's already happening in the military. i was visiting with the troops. i've been ten years in the military, i can't reup. i've had people outside the military saying i'm trying to get in. they won't take me. they're already cutting back, i guarantee it. the first half trillion dollar cuts are going to take a hundred

and -- let's. it's going to take 80,000 out of the army, 20,000 out of the marines. a sequestration takes another 80,000 out of the army and 20,000 out of the marines. that's 200,000 in the military, uniformed people that are going to lose their jobs. that's where i get it. >> that means that would be people who are actively fighting our wars as you said, right? >> well, they'll have to determine that. you know, whether they're in afghanistan, whether they're in iraq, whether they're in korea, they will determine -- they, being the chain of command -- who actually gets the pink slip or who -- they don't probably sent pink slips. they just don't let them re-up and then they may have to rif. it depends how deep the cuts go. >> john avlon joins me. what amazed me about the whole debate is here we are just months away and nobody has planned for this. >> nope. >> and nobody has no idea how much it's going to hurt and,

therefore, i see little impetus to prevent it from happening. >> but congress is planning on summer vacation. >> that is the end of the week. >> that's the artificial urgency here. look, it is insane. first of all, let us remember this is a self-inflicted problem. we've had a number of chances to avoid these painful sequestration cuts. this was always the stick if they didn't take the carrot. the deal for the super committee, bowles/simpson. in this big poker game in washington, they had their bluffs call and now they don't want to third take their medicine. it's amazing. both sides have had their bluffs called. the president is clearly playing politic because he doesn't want the pink slips go out. the republicans say this is dire and horrific but can't come up with anything measurable that would indicate it is. >> this is serious. these kinds of scutes where they hatchet instead of scalpel can cause real problems. the rhetoric of massive cuts has always been a loser's bet.

here's some good news. there's still time to avoid this. if folks in congress are upset not because they want to put the fear of god in them but they're interested in the implications of the economy, guess what, make a deal. there's still time. make a balanced deal and we can avoid this pain. they say you know what? to avoid sequester, i'll accept revenue increases. but they need to step up and not fearmonger in the op-ed in pages of "the washington post" and other places. >> well, mitt romney's trip has been a memorable one not for grand speeches but avoidable gaffes. there was one particularliby bizzarre one today. the question is would he have been better off staying at home. >> some terribly practical takes on that ahead. and the chick-fil-a executives. they received criticism but just how much money do they have. an investigation and an answer.

a pretty shocking one. a chinese female swimmer faster than the men accused of doping. hey, sexist or true? this is new york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com.

out for drinks, eats. i have very well fitting dentures. i like to eat a lot of fruits. love them all. the seal i get with the super poligrip free keeps the seeds from getting up underneath. even well-fitting dentures let in food particles. super poligrip is zinc free. with just a few dabs, it's clinically proven to seal out more food particles so you're more comfortable and confident while you eat. a lot of things going on in my life and the last thing i want to be thinking about is my dentures. [ charlie ] try zinc free super poligrip.

is my dentures. it's hard to see opportunity in today's challenging environment. unless you have the right perspective. bny mellon wealth management has the vision and experience to look beyond the obvious. we'll uncover opportunities, find hidden risk, and make success a reality. bny mellon wealth management is at the heart of every innovation. with the sleep number bed, it's not about soft or firm. it's about support where you find it most comfortable. the magic of this bed is that you're sleeping on something that conforms to your individual shape. wow! that feels really good. you can adjust it to whatever your needs are. take it up one notch. my sleep number is 50. i'm a 45. and now, for those interested in trying memory foam, sleep number introduces our new memory foam series-the only beds that combine cradling memory foam with the amazing dual-air

adjustability of the sleep number bed. the memory foam bed that's perfect for couples. so whatever you feel like, sleep number's going to provide it for you. memory foam just found its better half. sleep number. hurry in now and enjoy introductory savings of $500 on our most luxurious memory foam bed set. plus, two free coolfit pillows! ends august 15th. only at one of our 400 sleep number stores, where queen mattresses start at just $699. should mitt romney have stayed home? he's back home after some

overseas less than ideal headlines. >> in what's being called mitt romney's golden gaffe. >> london, the trip started with a difficult stop for mitt romney i think it's fair to say. >> what was supposed to be a low impact, upbeat, good will, three nations overseas trip turned into quite a challenge today for the traveling romney campaign. >> and this unfortunately reinforces the mitt romney image of kind of aloof and not always understanding the situation. >> romney's audition as an international diplomat is quite honestly off to a rocky start. >> the latest courtesy of a -- here's what he did in poland this morning. >> mitt romney, do you feel your gaffes have overshadowed your foreign trip? >> show some respect. show some respect. >> we haven't had another chance to ask him questions. >> [ bleep ] >> this is a holy site for the polish people.

show some respect. >> he continued to say, shove it up something later. he later apologized. that's important to say, but it followed by statements by romney in which he credited israel's culture for economic success, stocking it up against the palestinian authorities. they called those comments racist and days ago in london questioned whether our ally was prepared for thelympics. >> you know, it's hard to know just how well it will turn out. there are a few things that were disconcerting. >> i hear there's a guy -- there's a guy called mitt romney who wants to know whether we're ready. he wants to know whether we're ready. are we ready? are we ready? yes, we are. >> where's the guy with the bat going to go? hit romney? i don't know. would he have been better off staying home? nearly evenly split. 48% said yes but 52% said no, he should have gone ahead. "outfront" tonight wesley clark

and foreign policy spokesman for mitt romney. let me start with you, general clark. do you think he did the right thing? i mean obviously there were gaffes. there's no denying that but did he get more out of it than he lost in some of those hits? >> i think ultimately that's something the american people are going to have to decide. when something like this is done in a campaign, most say no big issue, then there must be some horse race reason why he's leaving the country. so there were a lot of discussions about taxes and did he pay the right taxes and so forth and why he won't release his returns and there was a bain campaign. probably the way it's done and i've been involved with the campaign for a few years, somebody said, hey, you need credentials, go out there, see some allies, have a great trip you. know you're going to go to friendly countries, britain, england, poland. they freed themselves. you made the comment about the russians. the polish don't like them historically.

go out there, look presidential, don't say anything too controversial, come back and it will all have blown over. it's the kind of horse race strategy that the american people don't -- when you don't follow politics that closely you might not see it, but when you follow it, you say, okay, that's the strategy. >> rick, did he succeed in that? he had fundraisers. did he have the money that he needed to raise the money from and convince, maybe some of the people in our strike team said the core evangelicals who were nervous about the whole quote/unquote mormon thing that he is a deeply conservative christian? >> you know, i want to pick up on one thing general clark just said. he used the word political and think he's exactly right. this is what happens when political reporters go overseas to cover a foreign trip. these guys were bored from the beginning. if you look at the twitter feed one reporter tweeted why are we here. she had no idea.

i think in the clip you just showed you have a reporter screaming at the top of her lungs, and believe that's "the new york times" reporter. she's screaming trying to yell a question when she's in a holy place. i mean i don't think they understand where they are. if you take england and you take israel and poland and you take you see exactly what mitt romney did and how these political reporters said that they were gaffes, each one of them is not that big of gaffe. when mitt romney says it's disconcerting that the news reports of the security situation in england and he's the guy who ran the salt lake city olympics? >> he may have been right about that -- >> that's an expert saying -- he was reiterating the news, erin. he wasn't giving an opinion other than says these news reports are disconcerting and the british media went crazy. >> don't you think he wanted it? just being honest that he would like the headlines to be different. presidential mitt delivers moving speech? >> of course. that goes back to my point.

that when you take political reporters who really don't understand these issues, that's what you get. politics. let me say one last thing. i've about been on a lot of trips, a lot of trips. when you take a state department reporter or u.n. reporter on a trip, you get substance. you actually get issues like the former polish president endorsing mitt romney who understands what barack obama is doing in syria by not helping the opposition. you get substance. but, you know, the silly stuff of somebody shouting, that's a "new york times" reporter. i would be be embarrassed if i was the norm times reporter screaming at a holy place. >> except the trip really was for political purposes not for foreign policy purposes. >> that's not true. >> he said i'm not going to comment. >> if you'd seen, okay, what's governor romney said so far about foreign policy, it's not a strong track record. it's, you know, a lot of waffling. >> oh, general, that's not true. that's absolutely not true.

>> it's some very -- it's some very hacking phrases that come out of the cold war. >> those are from surrogates. those are from surrogates. those are not from romney. >> i'm not sure you'd say russia is the greatest. foreign policy challenge that the united states has today. >> he didn't say that. he said it's a geopolitical challenge. that's much different. you should understand the difference >> think i do. >> that's not a policy. >> i conflate the two. >> you're spinning the two. >> when you're in the middle of a presidential campaign and you've been under a political attack at home and you go abroad and it seems pretty obvious what the purpose is, of course, you're going to bring the political press with you. when i was running as candidate for democrat i had to testify at the war crimes trials at the hague. against milosevic and i thought maybe -- i thought, be careful, be careful.

this has nothing to do with politics. this is what you came from your previous military profession. don't expect anything, don't look for anything. and sure enough the day i testified was the day we captured saddam hussein in baghdad. so there wasn't a word about it and it was just fine. but when grow in the middle of a campaign and you load it with people who could report good things, they're going to report something. if you don't talk to the reporters, if you don't give them stories, they've got to do something. >> and a quick final word. do you think in retrospect mitt might have said i should have answered more questions and given people more to talk about. >> of course, you should always give out information. but again i go back to the fact there were stark differences between obama and governor romney on foreign policy issues. very substantive issues and the

media, the political reporters missed it. >> the capital of israel. we'll leave it there. i know that's a whole other area of debate and we'll have it. the deadly ebola virus is spreading in uganda. why, went out and got answers on the ground. and we found out good news about american cars. ng, breathing intelligence helping business, do more business. in here, opportunities are created and protected. gonna need more wool! demand is instantly recognized and securely acted on across the company. around the world. turning a new trend, into a global phenomenon. it's the at&t network -- securing a world of new opportunities. ♪ tdd# 1-800-345-2550 there are atm fees. tdd# 1-800-345-2550 account service fees. tdd# 1-800-345-2550 and the most dreaded fees of all, hidden fees. tdd# 1-800-345-2550 at charles schwab, you won't pay fees on top of fees.

tdd# 1-800-345-2550 no monthly account service fees. tdd# 1-800-345-2550 no hidden fees. tdd# 1-800-345-2550 and we rebate every atm fee. tdd# 1-800-345-2550 so talk to chuck tdd# 1-800-345-2550 because when it comes to talking, there is no fee. last season was the gulf's best tourism season in years. in florida we had more suntans... in alabama we had more beautiful blooms... in mississippi we had more good times... in louisiana we had more fun on the water. last season we broke all kinds of records on the gulf.

this year we are out to do even better... and now is a great time to start. our beatches are even more relaxing... the fishing's great. so pick your favorite spot on the gulf... and come on down. brought to you by bp and all of us who call the gulf home. i'm one of six children that my mother raised by herself, and so college was a dream when i was a kid. i didn't know how i was gonna to do it, but i knew i was gonna get that opportunity one day, and that's what happened with university of phoenix. nothing can stop me now. i feel like the sky's the limit with what i can do and what i can accomplish. my name is naphtali bryant and i am a phoenix. visit phoenix.edu to find the program that's right for you. enroll now.

americans are a little more optimistic about the economy. this is according to the independent research group called the conference board. they come out with a number every month and july numbers came out today. optimism rose. up 3.2 points from june. so that's pretty good. but it's hard to see what's fueling the optimism because when you look at the actual numbers, annual income dropped. it dropped about 1.6%. the number of people claiming business conditions are good was

also down and those who claimed jobs are plentiful also dropped. you would think give those negative numbers, and the overall number, even though it was up, was still bad. well, okay. that's kind of true if you look at housing, number of people who plan to buy a home in the next six months dropped by a full percent. but this is what's really amazing. people seem to be excited an optimistic about one specific thing and that is car. so look at cars. the one green arrow we could find. people who plan to buy a car within six months, up 2.1% which brings us to tonight's number. 1967. that is the year the very first consumer confidence was released. 45 years ago. and more people want to buy a new car now than then, than ever on record. back to 1967. you know, there have been some amazing cars over the past 45 years. i just thought it was kind of fun to look at cars. back in 1967, for some reason july was really, really special. so could it be that americans

consumers see something good in the distance, some light over the horizon or do they just figure that like thelma & louise their 1966 ford thunderbird, if you have to drive over the fiscal cliff, you might as well look good doing it. next a warning from al qaeda. a report is rising. and chick-fil-a, we're going tell you how many bosses are worth, which issues they're giving a whole lot of money to, even more than gay marriage. n extra butter tickets swoon penguin journey junior mints movie phone evil prince bollywood 3d shark attack ned the head 5% cashback signup for 5% cashback on movies through september. it pays to discover. to drive a car filled with as much advanced technology as the world around it. with the available lexus enform app suite, you can use opentable to make restaurant reservations... search with bing... and listen to pandora. presenting the 2013 lexus gs, rx and the all-new es,

the leading edge of the leading edge. during the golden opportunity sales event, get great values on some of our newest models. this is the pursuit of perfection. ♪ i want to go ♪ i want to win [ breathes deeply ] ♪ this is where the dream begins ♪ ♪ i want to grow ♪ i want to try ♪ i can almost touch the sky [ male announcer ] even the planet has an olympic dream. dow is proud to support that dream by helping provide greener, more sustainable solutions from the olympic village to the stadium. solutionism. the new optimism.™ ♪ this dream

so how much do we owe you? that'll be $973.42. ya know, your rates and fees aren't exactly competitive. who do you think i am, quicken loans? [ spokesman ] when you refinance your mortgage with quicken loans, you'll find that our rates and fees are extremely competitive. because the last thing you want is to spend too much on your mortgage. one more way quicken loans is engineered to amaze. ♪

welcome back. we start the second half of our show with stories we care about where we focus our reporting on the front lines. we begin with new sanctions on iran. the president signed an executive order today that imposes new sanctions on iran's oil and energy sectors. we're told the quote/unquote new sanctions are intended to prevent iran to back the old sanctions. the treasury department meanwhile has imposed sanctions on a chinese bank and an iraqi bank. if you want to learn more about

how the u.s. is consistent and hypocritical, please go to our blog to see our breakdown on samsung and its hottest new phones in iran. well, defense secretary leon panetta wrapped up a meeting with the new egyptian president today. he was the muslim brotherhood candidate in the egyptian elections. but when asked about morsi's relationship the organization, panetta said the new president is, quote, his own man and he believes morsi and the country's top military chief are committed to working together toward democratic reforms. some say that's way too optimistic but they say there's no single ruling group ruling egypt at the moment and things will probably stay that way for the median turn and the u.s. can do little to influence what happens there anyway. the countdown is on the u.s. postal service. this is money they owe to the federal government to pay for health care benefits for retirees. the post office said they're not

going to make the payment or the next payment due september 30th. so in order to avoid default, they need congress to pass legislation to allow for more reforms. the senate passed a bill in april but the house has not yet acted. today we got a key report on housing. it was the case-shiller index which tracks home prices. it was up 2.2% in may. yes, that's backward looking but it's an important index and better than economists are looking for. prices are still down from a year ago but they had the smallest decline in 18 months. we're told most regions, particularly those in hardest hit areas like florida have seen gains in recent months shows that the housing market recovery is becoming broader based. it has been 362 days since the u.s. lost its top credit rating. what are we doing to get it back? today senate majority leader harry reid did do a deal.

they signed a deal on a continuing resolution that will fund the government through march of next year. well, our third story "outfront," al qaeda rising. the state department warned today that despite the killing of osama bin laden, al qaeda affiliates are more powerful than ever. this is something we reported on last week where they have taken over the northern part of the country in a coup. you're looking at groups defeated by al qaeda groups. they're also focusing their efforts in a lot of countries. when you look at this lit up map, this is pretty powerful and we're not even lighting up algeria which we should be. syria, yemen, somalia, niger, seth jones, good to see you. author of "hunting in the shadows." the greatest terrorist threat used to be afghanistan and pakistan and people have become accustomed to that. obviously this administration has talked about defeating al

qaeda in those areas. why are we now seeing such a significant rise in al qaeda-linked groups in northern africa and the southern part of the arabian peninsula? >> well, i think there's a bit of a supply and demand issue here. on the one hand there's a new demand for justice. we've seen the fall of multiple regimes in yemen, weak regime in somalia. now we've got falling regime in syria. al qaeda has pushed fighters in to help fill the vacuum. at the same time we also have a supply again of fighters. we've seen money coming from the gulf. to fund some of these efforts. a bit of basic supply and demand. >> what we heard in mali is they obviously are very add meant adamant that countries like qatar are involved in terms of funding. assad has been saying that it's been al qaeda linked groups that

have caused the problem but your report that are dozens of suicide attacks that have occurred. is it possible bashar al assad is right? >> no, i think he's wrong. i think the bulk of the opposition in syria right now appears to be local syrians, members of the free syrian army. the al qaeda element is very small, but it does appear to be growing, upwards now of 200 or more fighters, and they're very sophisticated. can do a range of improvised explosive devices. that is very disturbing because these are very dangerous people. >> how significant is the al qaeda presence in syria right now? as the u.s. debates whether they should be arming the rebels or getting involved, how significant is al qaeda? >> i think it's fairly significant and the real concern is if we go back to 2003 and 4 and 5, the primary foreign fighter network in through iraq

was through syria, city s like damascus. now it's in the reverse. they're moving from iraq, turkey, into syria to conduct jihad. we should be seriously concerned about -- this is prime territory for al qaeda. it's a sunni-dominated country. >> what should the united states do? in countries like mali, there were no borders that i could observe. everybody was talking about al qaeda and telling horrible stories of what was happening in their villages, villages abandoned. is there anything the u.s. can do? >> i think there is. i think we know over the last several years what we shouldn't do. that is put large numbers of boots on the ground. this is really the work of special operations forces and intelligence units which have a capacity to work with and by and through local government actors whether that's through mali and the syrians but working with locals. >> thank you. our fourth story "outfront," chick-fil-a. ceo has been in the news about his recent remarks against

same-sex marriage but it's his personal wealth the and political contributions that make headlines tonight. dan cathy have joined the ranks of the world's richest. "outfront" tonight matt out front is man who tracks this and knows everything this is to know about these guys who has suddenly emerged on the national stage. as important power players. so how much are dan and donald worth? >> they're each worth $1.5 billion, they own chick-fil-a with their father truitt cathy. who founded the company decades ago. who invented the chicken sandwich. >> is that like inventing the internet? >> invent the chicken sandwich. in the south, very much so. chick-fil-a is sort of a staple in life in terms of their chicken sandwich, and a big deal in the south. >> all right. $1.5 billion for each of these guys. how unusual is it when you look at other fast food chains, mcdonald's, et cetera, are these the richest of the rich or is this standard?

>> it's not standard. some of the richest in fast food. the richest are the three brazilian billionaires who took burger king public recently. this is certainly the richest family. >> why haven't we heard of them before that. sounds like they've been active in causes. >> they haven't given a tremendous amount of money to this but it's such a hot button and people who are anti-same-sex marriage you can get people upset and boycotts chicken sandwich shops and we're talking about it right now. >> i guess that's true. when dan cathy was the one on took the position, guilty as charged. i know you've about looked into how much time they're giving a away. is this like another coke brothers family in terms of conservative causes? >> they have something called wind shape which is the family foundation.

they have assets in 2010 of $62 they gave away $4 million in 2010. a lot of the groups they gave to were to to pro-family, pro-marriage, pro-foundation. but if you look at it in terms of scale. warren buffett gave $2.4 million or something like that to bill and melinda gates. when you look at their net worth it's less than the a tenth of their percent. that they're giving away from the foundation. so it's not in terms of scale or billionaire giving, it's not this astronomical number. >> certainly people like mitt romney is giving away vast amounts of their wealth. >> it's a small figure and also from a percentage of net worth. it's not at the most ginormous number. out there. if you look at sheldon adelson he gave more away than they did just to mitt romney and newt gingrich in the past six months. >> that puts it all in perspective.

they are, like it or not, now on the national stage. >> yes, they are. >> thanks to matt miller. we appreciate it. authorities have seized hundreds of millions of dollars of meth and heroin. it's a major drug bust. and the hot chinese phenom who beat the men did she dope? tap... pinch... and zoom... in your car. introducing the all-new cadillac xts with cue. ♪ don't worry. we haven't forgotten, you still like things to push. [ engine revs ] the all-new cadillac xts has arrived, and it's bringing the future forward.

one is for a clean, wedomestic energy future that puts us in control. our abundant natural gas is already saving us money, producing cleaner electricity, putting us to work here in america

and supporting wind and solar. though all energy development comes with some risk, we're committed to safely and responsibly producing natural gas. it's not a dream. america's natural gas... putting us in control of our energy future, now. this is new york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com.

you see us, at the start of the day. on the company phone list that's a few names longer. you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy. lending more so companies and communities can expand, grow stronger and get back to work. everyday you see all of us serving you, around the country, around the corner. us bank. [ male announcer ] when diarrhea hits, kaopectate stops it fast. powerful liquid relief speeds to the source. fast. [ male announcer ] stop the uh-oh fast with kaopectate.

we're back with tonight's outer circle where we reach out to our sources around the world. we begin in india where 600 million people were left without power today. that's 600 million people, twice the size of this country. about the same as if power went out across all of europe. >> erin, on tuesday afternoon, a large part of india from the desert state of the rising sun in the west to the himalayas in the northeast had their electricity supplies cut off because of a massive failure. this land is home to more than 600 million people who are impacted and the worst hit. were rail and road transport uses. power was restored later in the night, but before that, it was a difficult time for many indians. erin? >> thank you. now we go to uganda where officials say a fast-moving

ebola outbreak has killed 14 people. appears to have started with one family. david mckenzie went on the ground to find out what happened today and we asked how doctors are trying to fight it. >> erin, there are at least six cases of the dreaded ebola virus here in uganda bringing the amount of total infected to 25. according to health officials. this outbreak started some weeks ago and at first it wasn't detected and it centered in the west of the country. health officials and groups like the center for disease control are scrambling to the region to try to isolate the patients to stop the spread of this disease. there's no known cure to this virus and it could potentially spread panic through populations. that's why uganda's president got on television and asked people to stay calm but to avoid physical contact. the next few days up to a week will be crucial in trying to stop this outbreak before it spreads. erin? >> all right. thanks to david mckenzie.

a strong denial from the 16-year-old who has shocked the swimming world after a series of record breaking swims. she told reporters my achievements derive from diligence and hard work. i will never use drugs. chinese athletes are clean. i know her arms are resting on something, but you can see how ripped this girl is. she is ripped. she placed first today after setting a record in the 200-meter individual medley yesterday. on saturday she won the gold in that race. ye logged a faster time than the u.s. champion ryan lochte. it is pretty stunning, before we talk about drugs, no drugs. what do you make of the performance of the 16-year-old beating the top american man. >> we have to put a few things in perspective here.

first of all, she was trailing. this was her opportunity to make up ground and put herself in position to win a gold medal, where as ryan lochte was ahead by three body lengths. he did not have to try hard in those last 20 to 30 meters of the pool. that's one thing. i do want to believe that if someone has really been training their entire life, that they could put together one length of the pool. >> just to sprint? >> a tenth of a second better than a man could. >> so you think that's reasonable. but what about this issue about doping? a lot of people are saying in 1994 china dominated in swimming, 12 of 16 medals, but seven athletes later tested positive for banned substances. she says chinese athletes don't dope and obviously that's not true. >> as recently as 2009 there were some athletes in the junior championships got caught doping. look at baseball had a huge problem with steroids fob

decades. i think we need to give her the benefit of the doubt now. she will be tested, she probably has already been. >> does that work though? i know there's about 10,500 athletes. just over half of them get tested. if she gets tested now after winning, would every possible substance show up? >> she will get tested, the top five athletes in every event, plus two athletes who compete in that event, all get tested. if you win a medal, you get tested for every medal that you win. secondly they keep the test for eight years. so as the technology of drug testing gets better and better, they will go back and. this has happened before. this happened from the sprinter from australia in 2000. so they can go back and find out whether or not someone who is cheating. you also have to give her, she's

innocent until proven guilty. >> it is a stupendous performance. there is an american missy franklin who raced two races why aren't people picking on her. >> i think we talked about the reputation that the chinese had, unfortunately, which should not reflect her. that is unbelievable. she didn't break any world records, no olympic records in those races. i think the world record is really what raised people's eyebrows and the fact that she really decimated the world record by a full second. that raised eyebrows. it could just be a phenomenal olympic performance and i think that's what we should take it as until we know more. >> i think people have become jaded. >> it's the landscape in sports today, unfortunately.

>> holding olympic events until prime time at night. you know what? if you're one of those people, we're not sure your logic adds up. we'll explain. but they haven't experienced extra strength bayer advanced aspirin. in fact, in a recent survey, 95% of people who tried it agreed that it relieved their headache fast. visit fastreliefchallenge.com today for a special trial offer. visit fastreliefchallenge.com homicide of young people in america has an impact on all of us. how can we save these young people's lives? as a police chief, i have an opportunity to affect what happens in a major city. if you want to make a difference, you have to have the right education. university of phoenix opened the door. my name is james craig, i am committed to making a difference, and i am a phoenix. visit phoenix.edu to find the program that's right for you. enroll now.

fore! no matter what small business you are in, managing expenses seems to... get in the way. not anymore. ink, the small business card from chase introduces jot an on-the-go expense app made exclusively for ink customers. custom categorize your expenses anywhere. save time and get back to what you love. the latest innovation. only for ink customers. learn more at chase.com/ink [ feedback ]

attention, well, everyone. you can now try snapshot from progressive free for 30 days. just plug this into your car, and your good driving can save you up to 30%. you could even try it without switching your insurance. why not give it a shot? carry on. now you can test-drive snapshot before you switch. visit progressive.com today.

now to australia, where police busted a major drug ring, seizing half a billion worth of meth and heroin. and literally stuffing it into terra cotta pots and securing it with some sort of a goo. more than 674 pounds of crystal methamphetamine and 555 pounds of heroin were seized as part of an operation that began a year ago when the u.s. drug enforcement administration tipped off officials in australia. now, this is the largest seizure of meth amphetamine in australia's history. the third largest of heroin. an important link, a lot of them were coming from thailand. and now the spoiler fest that's going on out there.

twitter is ruining the olympics. at least that's what you might believe from a lot of recent headlines. over the past week, headline after headline have blasted twitter for giving away olympic results before nbc has a chance to hold them for five hours and air them in prime time. but is it true? is twitter really a giant spoiler? we took a look at the numbers. while it's true there have been more than 10 million olympic tweets sent during the games so far, about 100 times that of the beijing olympics, twitter is not the worst offender. if you look at americans who use social media, 96% of them are on facebook. only 24% are on twitter. so the average person who's online in this country has a better chance of finding out results from some other site than twitter. but then there's this. this is really the cold hard truth. social media is only a small part of the spoiler problem. only about 56% of americans actually have a social profile at all. half of us will not even see the

spoilers on twitter, facebook or anywhere else. which is pretty amazing. considering everyone's been so complaining. every tv network, including this one, posts the networks on their websites. despite the complaints about twitter, most online users are getting their olympic results from there. if you didn't want to know who won the gymnastics tonight and you're like brittany on our show, you don't go to cnn.com all day. the people responsible for spoiling the olympics for americans who want to watch on tv is actually nbc. nbc is the network that decided to delay their coverage of the games till prime time and nbc is the worst offender of spoiling. they've been live tweeting the events, updating their blogs and yesterday they ran a promotion off television for their olympic coverage that gave away who won just six minutes before they aired. breathlessly, the competition. it's killing old media. can't blame twitter for that. here's piers morgan tonight. tonight, phelps does it. the pride of america shatters

the all-time olympic record and proved to the world he's still got that golden touch. plus, making history and raising eyebrow. the teenage chinese phenomenon. is the wonder kid clean? also, the u.s. gymnastics team takes gold. i'll talk to former champ dominique dawes. >> i'll calling these girls the fab five, they were amazing to watch. >> and guarding the games. an exclusive tour aboard the british navy's largest warship on watch for terror. >> we have a genuinely secure stable environment for athletes and spectators to enjoy a fantastic olympic games. >> the other royal couple, the prince and princess of monaco. marriage, mystique and the legacy of grace kelly. >> she touched the lives of so many people in so many different ways all over the world. >> this is "piers morgan tonight." good evening from london. day four of the 2012 summer olympics. indeed an historic day for the world and for every single american.

michael phelps shows everyone he's the best of all time, swimming his way into the record books. winning not one but two medals it giving him an astonishing 19 olympic medals. quite extraordinary. it comes as a 16-year-old girl from china wins another gold and leaves yet more questions about whether her incredible achievements are more than god given. i'm joined now by christine brennan from "usa today" and dominique dawes who was part of the dream team. the magnificent seven who last won gymnastic gold for america in 1996. let's talk michael phelps. it's the big story today. he's become officially the greatest olympic medal winner in history. what does it mean to any olympic athlete? >> michael phelps has definitely earned every single one of these 19 medals that he's won thus far. it means so much. it's the legacy he's going to leave behind. not just in swimming but in olympics sports and in sports in general. i'm so proud of him. he's from maryland. i've been cheering for him every step of the way. >> christine, it's an