skwhrao great news this morning. we have a new member of our "america's newsroom" family and beautiful this foster. little boy is. we can't wait to get our hands wrapped around that baby. matt smuut and his wife amanda, matt is our producer and his wife amanda works at fox business. 7 pounds 8 ounces. he is 20 inches long, mom and son doing well and we are so happy for you all. congratulations. bill: he's a smuut kid. he's a cute kid. well done, matt. martha: well done.

we'll see you back here tomorrow. "happening now" starts right now everybody. jenna: brand-new stories and breaking news. jon: a massive inferno at a popular restaurant leaving nothing but blackened rubble. the search goes on for the missing. more drama as the bail hearing for oscar pistorius. the latest testimony in the case against the olympic track star accused of murdering his girlfriend. a new threat from north korea as it released a video showing president obama and american soldiers in flames. the update happening now. our top story today a desperate search for the missing in the wake of a powerful explosion. good morning i'm jon scott. jenna: hi, everybody, i'm jenna lee. crews are sifting through the charred rubble of a popular restaurant in kansas city after a natural gas explosion just blew it apart right before the evening rush. witnesses said the blast sounded

like thunder and felt like an earthquake with a force so great it knocked out windows blocks away. flames from the massive four-eye hrarp four-alarm fire soared high into the night sky leaving 14 people injured and left two unaccounted for. one of them was found, is being treated in the hospital. firefighters with cadaver dogs are trying to locate another person, a woman who worked at jj's restaurant. >> we've been in contact with jimmy francey the owner. his first concern was not the restaurant, or the 27 years he's been in business but the people who worked with him in that business for a number of years and their safety. he was out of town and heading back into town when we first talked to him. jenna: mike tobin is live in san cast city missouri with more on this. mike, what is happening there now? >> reporter: i can step out of the way and let a cameraman zoom

in so i can show you the primary activity going on here in the morning. what you see mostly are the fire crews which as you mention are sifting through the rubble and what will probably amount to a sad task. they are looking for that one woman who worked at jj's restaurant and has been missing since the blast, the blast occurring at 6:00 local time. it was a massive fireball that engulfed the area that you are looking at right now. you may have mentioned, broke windows out in buildings some six blocks away. of the people injured three remain hospitalized in critical and serious condition. what is interesting to note about the injuries, they are not necessarily what you would think. the injuries are not burn injuries or smoke inch ha hraeufplgtsmoke inhalation. you're seeing traumatic injuries, broken bones and concussions that came from the force of the blast, not necessarily the fire, jenna. jenna: with that type of fire it's hard not to imagine the worst mike when you see the flames. investigators believe it was sparked by a gas leak, at least those are the initial reports

we've had. any additional information about what might have happened here? >> reporter: well, everything is pointing to the crew with the missouri gas and energy that was working in the area and reported that they had bumped a gas line, possibly caused that leak. eyewitnesses or witnesses earlier in the day as early as six hours earlier said that they smelled some kind of gas. but in the hour, the immediate hour before that gas witnesses say the smell of the gas was overwhelming. >> we finally called the gas company, they came out, they checked inside our building and said we were above the limit that was healthy and that we needed to evacuate. he stepped out the door, it wasn't two minutes when we were grabbing our stuff and the explosion hit, and it hit you like a shock wave. >> one of my friend just was a couple of blocks up the road here, and he was home, and felt this huge like movement in his

home, and then he immediately called me because he knows that i go to the bar, you know, about once a week or so, and was concerned if i was there. >> reporter: the state regulatory commission has now sent investigators here. they are on the ground right now investigating things like if the gas lines were marked properly, or if those utility workers were operating the way they were supposed to, heading the warnings, following the markings, making sure they didn't cause a gas leak that resulted in this tragedy you see behind me, jenna. jenna: more information as we get it. thank you very much. mike tobin today in kansas city. bill: a fox news weather alert for you now. snow is coming down in flagstaff, arizona where public schools are closed and folks could see half a foot before its over. meanwhile there is a new storm moving into the great plains and that is a huge concern for searchers still looking for the woman missing in that kc blast.

janice dean has details from the fox weather center. >> reporter: right, jon kansas city is expecting a snowstorm in the next few hours. it's a race against time. our own mike tobin was out there to cover the snowstorm and unfortunately he's covering this event and the snowstorm, so unfortunately in the next several hours conditions are going to deteriorate. they are going to get several inches of snow into the overnight hours. of course we'll keep you up to date on both of the situations. the snowstorm is going to affect a lot of folks. a lot of people get mad of us in the weather center, saying you're too new york centered or only concentrate on the midwest. this will a effect many, many states and it's really just unfolding. the main low pressure center is just across california. ahead of it we are seeing rain ran snow, but this is not the main event, the main event is coming tomorrow through friday. so you can see the snow starting to fly, moving into kansas city, wichita, oklahoma, then we'll see perhaps an ice storm

affecting arkansas, oklahoma and missouri. as we go through time here we are looking close to 2 feet, 2 feet or more in the highest elevations across the sierra, we have blizzard warnings in parts of southern arizona. the main event really happening across the plain states, nebraska, kansas, that's where some of you could get upward of two feet of snow. then you see the purple here, that is where we could see an ice storm unfolding. half an inch of ice on the roads, on the power lines, that is going to cause massive damage, unfortunately if this comes true. this could be an even bigger story than the snow event. again, 18 to 24 inches in the areas you see in the darker blue for parts of kansas and nebraska and then into pour. so all of thi missouri. all of this in the lighter shade of blue 6 to 12 inches easily. on top of that we will be dealing what severe threat including tornadoes starting tonight into the oef nigh overnight for texas, parts of

oklahoma. the main event, the main tornado event will happen tomorrow throughout the day and into the overnight for awful these areas, texas, louisiana, mississippi, this could be a severe weather outbreak. several long-lasting large tornadoes, that is another problem. i just want to show you, jon, remember we were talking about the scope of this. look at how many states affected by either the snow, the ice, the rain, the severe weather, this is going to be an on going event throughout the next 24 to 48 hours and we will certainly keep you posted and up to date on that tragic event that's happening in kansas city right now. back to you. jon: you are going to be one busy weather machine in the next week or so aren't you. >> reporter: can i mention we are also looking at the potential for another nor'easter for new england this weekend. jon: i think new england has had enough of those. >> reporter: they have but they need to be prepared. jon: thanks. jenna: gas is on track to reach record highs this year. gas prices have risen 34 days in a row.

today's national average $3.76 a gallon. maybe in your area a little higher or lower than that. it's the fastest run up we've seen in gas prices since 2005. now our government says state and local taxes are helping to fuel these prices at the pump. elizabeth mcdonald is on this story today. liz. >> reporter: the argument and debate down on wall street is why are gas prices zooming so much higher? yes it's a refinery issue, yes it's a switch to summer blends, but also the u.s. government is weighing in on this. the energy information administration which is part of the department of energy put out this note. of it said essentially watch this tax move on the part of oil companies. in the month of december oil inc inch ten inventory convenient torreys dropped in the gulf coast region a tremendous amount, and why? look at this statement from the eia? they've said u.s. oils inventories typically decline in

the month of december as oil companies try to cut their state and local tax bills. the more inventory you have the higher your tax bill. an interesting disclosure from the energy tporp administration. what we are seeing in california, more than a dozen cities are breaking the $4 mark on gasoline. why? because california has some of the highest state taxes in the country. also, hawaii, alaska, new york, the motorists there are going to have a hard time at the pump when they realize that their state taxes are pretty high versus the national average. the national average is trending for about 49-cent as gallon. some of these places, jenna in california you'll see 60 sents a gallon in state and local taxes. you certainly see that in areas of new york city and parts of new jersey and connecticut. what we are seeing is a third of the population right now in the united states is within driving distance of $4 a gallon for gas.

so we are going to be watching this issue, jenna as states across the country move to raise their state taxes on gasoline. we are hearing that story playing out in new hampshire, wyoming and washington state. we know that sthaeut and federal taxes have hardly bulged over the last year or so, certainly federal taxes have stayed the same since the 90s. as they struggle with fiscal problems they may turn to raising taxes on gas jeno case, liz great. we'll continue to watch the story basically oil companies are keeping their inventories low so they pay less taxes and state and local governments are raising taxes because they have financial issues as well. >> reporter: that's right. jenna: we get stuck in the middle. >> reporter: that's right. the thing with oil inch ten torreys being kept low. the market is saying the inventories are low we don't have enough supply. maybe that is driving the prices higher. the government is saying they already factored that in. it's an interesting story and a developing one we'll stay on top of for you. jenna: thank you.

jon: a new way to fight cyber attacks. the white house is reportedly considering fines and other trade penalties against china and any other nation guilty of cyber attacks. jim angle is live there. where are we on all of this, jim? >> reporter: we know the u.s. does intend to respond after learning that hundreds of cyber attacks on the u.s. government and some 140 u.s. companies are coming from a chinese military unit apparently dedicated to such activities. now the question is, what do we do about it? we can't do much of course to punish the chinese military but officials are saying privately they will take some sort of action such as fines or trade penalties which the white house hinted at yesterday. >> initiatives to announce today. this is an issue that had the attention of the president and senior levels of the national security team. it's something that we are working on constantly, and we will of course take necessary

measures to enhance our cyber security. >> reporter: but aside from enhancing our own cyber security, what can the u.s. do? though we can't punish the chinese army unit we can punish chinese companies many of which are partly honed by the chinese government, even the chinese military. those companies sell more than $425 billion a year of goods inside the u.s. jon. jon: there is some leverage. anything else the u.s. can do? >> reporter: we are going to find out later today, probably with more specificity what the administration plans when attorney general eric holder talks this afternoon. what the u.s. could do is step up prosecution of intellectual property, that would mean prosecuting and punishing chinese companies that do business in the u.s. which we already do for things such as dumping solar panels for instance and more a depressive action could hurt chinese sales in the u.s. we can make it somewhat painful since so many chinese jobs rely on making products for the

american market. of it is going to be contentious, though. you had a chinese official saying yesterday that china firmly opposes cyber attacks, has laws against it and went onto claim that china itself is a victim of cyber attacks. he even accused the u.s. of being the main source of such attacks. so it looks like we are in for a round of nasty counter complaints, sort of an international version, jon, of oh, yeah? so is your sister. that's where we're headed. jon: lots of finger pointing. keep an eye on it for us, jim. thank you. we will have much more on cyber warfare with china now reacting to the report that links it to a relentless hacking campaign against the u.s. ambassador john bolton knows a great deal about these things. he will be here live to weigh in a little later in the hour. jenna: do you think he'll use the same fighting words 0, so is your sister? jon: i don't think so. jenna: in just fine days deep spending cuts could adversely

affect the economy and our national security. basically she's cuts could affect our economy and our national security, that is what we're told by the two men on your screen. this is unless lawmakers reach a deal first. so right now the blame game is kicking into high gear in washington. one of the questions is the blame game is happening, what about anything that is going to lead towards compromise? we'll take a closer look at that. plus the disappearance of washington intern chandralevy captured the nation's attention. what court documents are now saying about the man accused of killing her.

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n in washingtonhere is a blame right now over the automatic spending cuts set to go into effect less than two weeks from now. house speaker john boehner in a "wall street journal" editorial writes, president obama invented the sequester saying he came up with the plan for deep cuts to avoid facing america's spending

problem. the white house saying in response that president obama has laid out a specific plan with cuts to avoid the sequester and reduce the deficit in a balanced way. and that congressional republicans won't compromise. where does the truth lie? let's talk with charlie hurt, a columnist with the washington times. goat sideboth sides are blaming the other. both sides say they proposed things around this thing and that guy over there is causing the problem there. what is the truth, charlie. >> these blame games are what washington is all b. president obama has proved himself very good to play this game. he has a strong hand right now. in the current situation with the $16 trillion in debt both republicans and democrat vs. plenty of blame. but it's kind of unusual in this particular case to have president obama complaining about the sequester, since bob woodward's book clearly pins the

impetus for the sequester on the white house. the white house came up with this back before the election, because president obama really didn't want to have another big fight about the debt ceiling and everything and he wanted to give some sort of cuts to republicans in order to get past the election. and then he succeeded and here we are now where these cuts are about to take effect. we've kicked the can down the road a couple of times now, and now that he's securely reelected he really doesn't want to have these cuts go into effect. and he's desperate to find some other way of lessening the concerns of republicans who are very concerned about the exploding costs of the government. jon: if both sides agree that the sequester ace bad idea and both side were able to come up with a way to kick the can three months down the road back at the turn of the year with the fiscal cliff deal, why not this time? why can't they both agree, let's

avoid it somehow? >> i think you have two things, jon. you have speaker boehner who has conservative republicans in his caucus who refuse to kick the can down the road again. they refuse not to address this really massive problem that the government has. the second thing is that i don't think president obama is really willing to come back to the table and offer real cuts to offset the sequesters, without trying to raise a bunch of taxes, and you'll never get republicans in the house to go along with that. i might add his own party controls the senate, and i think the senate will not go along with new tax hikes, and things of that nature. so it's not just the conservatives in speaker john boehner's caucus, they are going to be really reluctant to raise taxes in order to not cut seriously ther from the

government. jon: a lot of nervous people out there and not just from the government as this clock ticks. thank you. jenna: a major american city is nearing financial collapse. we are going to look at the radical action that could be taken to save the city. a high stakes hearing for drew peterson. how the battle between petersen's former lead attorney and his current lawyer could determine whether he goes to prison or gets a whole new trial. >> this is not between me and joel brodsky, this is between drew petersen and the people of the state of illinois.

jenna: crime stories we are keeping an eye on.

lawyers for the man convicted of killing chandra levee say his conviction was predicated on a lie. heavy of course was 24 years old when she disappeared in 2000, suc2001, such a big story at that time. still is. her body was found in a washington park. >> a home set on fire during a narcotics investigation. police are searching for two men they say are likely armed and dangerous. they are warning residents to stay inside. a third suspect is in custody. a missing canadian tourist found dead in a water tank on the roof of a los angeles hotel. police say a maintenance worker discovered her body, this 21-year-old's body after getting reports from hotel guests about low water pressure. she was last seen at the hotel

on january 26th. >> this is their post-trial motion? i mean this is drew's last chance if we're going to prison for probably the rest of his life. you know, it's not very impressive, i'll tell you that. jon: that was joel brodsky the former lead attorney for drew peterson, the expolice officer convictedded last year of murdering his third wife. he is at the center of a hearing set to begin in an hour. peterson's lawyers are arguing for the second day that the former cop should get a new trial. they claim because brodsky failed to adequately defend him. steve brown is live from the will county courthouse in joliet, illinois. sort of a saoubg lar firing squad. what did brodsky do to the other members of the defense team to get them to turn against them? >> reporter: during the trial he called a prosecution witness, harry smith who was kathleen

savio's divorce attorney. he met one time with stacey peterson, drew peterson's fourth wife. he received that drew peterson killed kathleen savio, hugely damaging. we found joel brodsky on the witness stand being questioned by current members of the peterson team about his handling of the case. here is the interesting thing about the whole harry smith testimony. they didn't ask about it yesterday. >> we already know it was a bad decision, the record is clear a that it was a bad decision. we don't need to ask him his opinion because we don't care what his opinion was. >> i have it in black-and-white, and there were also witnesses. he can say whatever he wants but if he wanted to i was on the stand, why didn't he ask me. >> reporter: it has been a become and forth publicly leading up to yesterday's hearing, jon, joel brodsky saying everybody was on board, everybody else saying no it was brodsky alone.

he gets an opportunity to ask him on the stand and takes a pass. jon: and he says he has proof. what is the prosecution making of all this? >> reporter: well, yesterday they were pretty quiet because it was entirely a day for the defense to put on its case for a potential new trial during this hearing, but, frankly, it was quite clear that james glascow the prosecutor didn't really know what to make of it. >> very satisfied with wha the way court went this mourn. we are in unchartered waters. i've never had a post trial motion of this nature but i'm getting a good feeling from the way the thing is going. >> reporter: legal experts suggest that this appeal for a new trial is an extreme long shot and at some point today they will move onto the hearing segment, the actual sentencing segment of today's proceedings, and it looks like peterson could face as much as 60 years in prison. please note that he is 59 years old now.

jon. jon: he used to be so talkative and outspoken. we haven't heard much from him in a longtime, have we, steve. >> reporter: no, quite quiet. jon: thank you. jenna: brand-new developments in another murder case, this time the murder case that involves the "blade runner." what was found at the home of oscar pistorius and what neighbors say they heard right before the deadly shooting. we are live in south africa with a brand-new report for you. also the growing threat of cyber warfare as the white house gets ready today to announce a tough new response to computer hacking attacks, this on the heels of a report linking china to recent cyber attacks, specifically china's medical tear re. ambassador bolton will be here live, next. more than two years ago, the people of bp made a commitment to the gulf. and every day since, we've worked hard to keep it. today, the beaches and gulf are open for everyone to enjoy. we've shared what we've learned, so we can all produce energy more safely.

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>> if there were ever a cautionary tale to get your budget under control. probably the most shocking detail we're learning today, the city has been masking over huge debts since 2005. how? by borrowing enormous amounts of cash. every year and not balancing the books. the current budget in the red by more than 300 million, without the cash to play employees or other bills. critics questioning whether there was ever the political will to do what was necessary to cut spending,

when it would have made a difference. even the review team, pointing a finger at detroit politics. there are reports saying the city's [electricity crackling] ic structure makes it difficult to solve the financial crisis. a governor in his first term, governor rick snyder inherited this nightmare. governor snyder has the 30 days whether to decide a emergency manager from the state will clean it up. some experts are saying this has been building for so long, detroit may be destined for bankruptcy. the president of a mick began based firm that specializes in turning companies around, quote, the check point needs to be trane away from the politicians, end quote. back to you. >> in detroit and maybe elsewhere. sound like good advice. a story we'll watch, harris, thank you. >> sure. jon: there are new developments in the mid case that has grabbed international attention. olympic star oscar pistorius

back in court for a bail hearing. he is charged with premeditated murder in the shooting death of his model girlfriend, reeva steenkamp. pistorius claims he thought she was a burglar. a police detective account how he killed his girlfriend is consistent with what police found at the crime scene. greg palkot is live in pretoria, south africa. >> reporter: it was a day of conflicting testimony in the courthouse behind me. this owe him lick bail hearing of oscar pistorius may be a preview of a murder mid trial for him. the lead detective in the case was on the stand. he said a neighbor heard nonstop shouting one hour prior to the shooting. he said there was claims there was shooting at point-blank range through a bathroom door at victim reeva steenkamp who was inside that bathroom.ke down when the wound to the slain girl were described, wounds to the head, to the arm and

to the hip. the family was also in the courtroom with pistorius. we caught up with his brother shortly after. here is what he had to say or what he didn't have to say. is your brother innocent? this is fox news, of these charges? just a brief statement, is that possible? can you just tell me that? do you feel he is innocent of all those charges? in fact the family might be beginning to have something to be cheerful about. that detective got a very tough cross-examination from the defense lawyers and even some questioning from the presiding judge, questioning about the claim that testosterone was found in the room, maybe knocking down the claim. either either whether pistorius represents a flight risk is he is granted bail. the missing person in all this back and forth, obviously one. people at the heart of this, slain girlfriend reeva steenkamp. she spoke to a friend of hers as to the shock when he foupt out about her death.

that she was more than a model and more than a reality tv star. this is more of what he had to say to me. >> what a loss. >> reporter: if you could speak to her now, what would you say? >> what a good friend she was and how many people loved her. >> reporter: at stake here is whether that very tough premeditated murder charge will stick. also whether he will be granted bail. and jon, we have late word that the family of pistorius might be coming out with a comment tonight as well. developments and the hearing resumes again tomorrow morning here. back to you. jon: greg palkot live from pretoria. greg, thank you. >> north korea is ratcheting up its rhetoric and making new threats releasing a video showing president obama and american troops in flames. the north also suggesting it conducted its recent nuclear bomb test because of u.s. hostilities. this as it threatened

south korea, with quote final destruction. very busy in north korea this week. meantime we're awaiting white house action and cyber attacks by foreign governments in a few hours. this comes after a report linking china's military to an unrelenting hacking campaign. that just broke yesterday. joining us now, ambassador john bolton, former u.s. ambassador to the u.n. and a fox news contributor. ambassador bolton, in a few hours the government will come out and say this is what we're going to do if these hacking attacks continue. what should we be saying? >> well, we'll have to wait and see what they say exactly. the people who are conducting cyber warfare activities against us sounds to me very much like the administration's reaction to international terrorism. that the whole thing is a law enforcement matter rather than a question of possible acts of war by foreign states. i do think that the commercial aspect of the cyber world is a piece of it but it's by no means the

only piece. it is no accident that it's the peoples liberation army in china's responsible for their cyber warfare program. i think they understand what it is. whether our administration understands remains to be seen. jenna: it is interesting that you say that. a former fbier was quoted in a recent article, he now works in cybersecurity. if the chinese government was flying planes into our airspace on a regular basis it would be a huge problem and we would have to confront them. but somehow in the hacking attacks that are flying into our space as well we have a different thinking about it, just as you pointed out. why do you think that is? why don't we consider it an act of war? >> well i think part of it is, the whole cyber world is so very different from the fiscal world. but i think what we need really is a ladder of escalation, as we had in the nuclear warfare area, conceptually to understand what is going on. there are different levels

of threats, starting with just mischief like kids throwing rocks at windows up to criminal activity, which is what fines might be appropriate to respond to. then the next step on the ladder, is espionage. and then the next step are acts of war. obviously you can break those down. we have to get a better sense what the threats are, where they are coming from, how we should defend against them and what our offensive response and capability ought to be. that is what the administration should be working on. jenna: it may be surprising to some of our viewers we don't have that ladder already. is that ladder, so to say in existence in the bush administration or is this a problem fundamentally in our government in recent years? >> i think it's a broad problem. i think we're beginning to try to catch up. i think we're taking steps to do it. i think as a country we have the capability to do it. but unless we confront this more directly, have it the subject of our national debate which we don't have at the moment, i mean what we're talking about now are defense cuts that affect us

across the board. cyber warfare is a new area. it doesn't replace the existing areas of threat. it is another one we need to consider. jenna: i want to mention that obnoxious video from north korea. we've seen obnoxious videos from north korea before as part of their propaganda machine. we heard from hacking attacks from china before. this is a little by the new but in general we have. what we're seeing, ambassador, more frequency of these types of videos or types of attack and being more brazen. do you see them connected? north korea and china obviously difficult countries but why are we seeing such misbehavior from this part of the world? >> i think china sees its power increasing and it is challenging the united states. it is not inevitable that china is going to experience a peaceful rise as some people say. that's possible but by no means ininevitable. i think north korea feels that it is not under constraints. i think they are not rational in the same sense we are rational.

i very much worry about north korea having a kind of hitler in the bunker mentality. and i do worry about possible connections between north korea and iran on their nuclear weapons program. i don't think these are two separate stovepipes. i think the threat level against the united states, in a variety of fields is rising worldwide. jenna: a threat that would lead to a conflict, war? >> well, i think we want to avoid the war if at all possible. that gets harder and harder to do as the president watches our defense budget being reduced. talks about going to nuclear zero. reduces our presence around the world. if you don't have a strong america, that doesn't mean a more peaceful world. it means a more unstable and more threatening world. jenna: ambassador bolton, we would like to have you back to talk about the connection between north korea, china and iran. that is very important one that deserves more attention than we can give it right now. thank you for your insights. great to have you, sir. >> thank you, jenna. jon: a very close call for your home. i'm talking about planet

earth. a asteroid the size of a bus swings right past us. now we have some amazing new video to show you.

jenna: coming up new next hour, a hip injury brings down top sensation lady gauge ga, says a common fix for hip problems is less effective for women than men. -- lady gaga. the jodi arias trial is continuing today. arias is talking about the hours leading up to the brutal killing of her ex-boyfriend. she admits to stabbing him, shooting him and murdering him but claims it was self-defense. >> hackers hitting apple. we'll tell you what is going on with apple and what you can do to protect yourself. jon: new video from nasa showing a massive asteroid flying right past mother earth. harris faulkner has it. she is on the breaking news

desk. harris? >> jon, it is out and it is impressive. the first radar video of the asteroid that came within 17 miles of earth, skintight close, relatively speaking when you consider the size of the universe that is. on friday when it came closer to us than any of our communication satellites or many of them, nasa's deep space radio network antenna in california was ready to capture it. look at this. this is as the asteroid was moving away from earth. this is not as close as the nearest point. 72 images were captured. the pictures were taken as it was a bit farther out but still giving us a decent view of an elongated object. scientists say it is under going full rotation here. they watched it for several hours. they are big fans of using radar to study asteroids for their size, shape, surface features and rotation. they're really excited about the pictures because they help them plot the orbits in the future to determine if we could be in any danger.

is always a good thing. as you saw completely different type of object than in russia. but we didn't necessarily get the notice on that one. the russians didn't because it was moving so quickly and so low in the atmosphere by the time it broke apart. we're taking a quick look what that was like for them. but the asteroid, plenty of notice. didn't come nearly as close. impressive pictures. jon? jon: a little nick left or right, a couple years ago and that thing could have been right in our backyard. that would not have been fun. >> no doubt. jon: harris faulkner. thank you. jenna: it is a disturbing new study showing drug overdose deaths in this country rising for the 11th year in a row. we'll talk about the biggest killer and why it is so hard to get the problem under control even though it is so well-publicized. police are searching for a gang of eight who pulled off a daring jewelry heist. $50 million worth of diamonds gone in a flash. the latest next. >> we can only conclude that indeed this is a high-value

cargo that was stolen and therefore we can only conclude that these people were indeed very well aware of what they were doing and what they were looking for.

jon: right now a look at some international stories we're following. investigators find the charred remains of the van most likely used in a massive diamond heist in brussels. this as they continue to search for the men who carried out that daring airport robbery and made off with $50 million worth of jewels. now to greece where unions staged a general strike. thousands of workers walking out to protest the government's spending cuts and tax hikes that they say will push unemployment to a staggering 30% this year. and in china, firefighters rescuing a little boy trapped inside of a washing machine.

no word how he got there but it took crews half an hour to get the toddler out. jenna: not a good place to play, the washing machine. note to self, right? a new study says drug overdose deaths are up for the 11th year in a row. most of them are called accidental and involve addictive painkillers. the head for the centers for disease control and prevention says the problem is getting worse, not better because, according to them that doctors are prescribing more powerful medication than their patients really need. joining us is an addiction expert that runs the recovery brooklyn. you see it on a regular basis and come face-to-face with some of these addictions. >> we see it daily, absolutely. jenna: what has it been like when it comes to pain pills and how that compares to other addictions? how dangerous is it? >> well, it's lethal. just to put that into context, overdoses kill more people than breast cancer or

car accidents. most people know somebody who has been killed in a car accident. so just kind of get your teeth into what we're really dealing with the epidemic proportion of overdoses. opiates ratcheted up significantly over the years as we see a steady incline. jenna: the associated press when they were writing about this headline, again deaths are up. federal data showing this. most of these deaths are accidents, quote, unquote, despite the growing attention a lot of these medications are really dangerous. we're giving it more attention but it is still getting worse. why? what do you think? >> i think we do not discussed a diction for what it is, which is a very complicated mental health issue. as long as we have the undercurrent of trying to incarcerate or blame or punish our way out of it is not really going to get better. we've seen a decline in heroin use as you see a rise in oxycontin use. it is a kind of problem that

just doesn't really go anywhere. i don't think we approached it very well. jenna: do you find in your work because doctors are writing prescriptions and not knowing signs of someone that could be addicted and doesn't need it or something else? >> no. absolutely one of the things doctors are not trained in medical school to look for addictive behaviors. one of the things we would advocate as a way to reduce this, simply that. screening instruments. asking about family history. have you ever been in treatment before? do you drink alcohol? one of the things not mentioned in that it is a very lethal combination. alcohol somehow gets a free pass. i don't know but what i would guess most of those accidental overdoses are when people are drinking alcohol and then taking the medications. jenna: what do you see as a solution? >> a massive reframing of we view addiction in america, a congressional hearing, reframing it as health issue rather than something that can be incarcerated. >> do you think these drugs should be on the market in general?

i know you're not a medical professional. >> yeah. jenna: the benefit of these drugs some say are great for people that need it for pain. >> absolutely. jenna: one wonders when we see this type of rise in addiction too. >> they have a by-product. there is actual medical application for people suffering from all different kinds of pains, cancers. they are beneficial when taken as prescribed under medical supervision they have an application. they also have a downside. i think it is the downside that we're not addressing. that it's a very common thing to have wisdom teeth out and, to have a vicodin prescription, if you don't finish it you have uncontained floating vicodin in the community. jenna: that is example a lot of us experienced with pain pills when you get them prescribed and what to make of it all. thanks for your expertise today. >> thank you well, technically i work for one. that company, the united states postal service®, works for thousands of home businesses. because at usps.com®,

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>> hello, i am dennis kneale. >> and i am cheryl casone me.

the dow is sitting near the five-year highs. warnings of an upcoming market pullback. >> fighting back. a guest who security firm is launching counterattacks on behalf of businesses that got hacked. >> and gold prices and a six-month low today. we are live we're one country is buying big and we will tell you about it. >> we have nicole petallides at the new york stock exchange. reporter: that's right, not too far off from the all-time high, not unusual to see the markets higher mental back a little bit. even today, we set a new five-year record high that we haven't seen since 2007. it's higher and higher, higher highs, lower lows, and we will

definitely be taking out the highs at some point this year. do not lose hope. if you are able out there, do not lose hope. the dow jones down one quarter of a percent. cyberattacks, cyberthreats, and those really have been on the rise. most notably on friday when we talked about spacex. apple also acknowledging that their computers were also hacked by the same hackers who targeted facebook. of course, apple was cooperating with authorities. they said that no data had been breached. obviously this is a huge concern, to have hackers and cyberthreats to our security, all the people involved as well. cheryl: coming up later on in the show, about 30 minutes from now we will check with nicole again. ninety stability for president obama talks about government spending cuts that will take

effect. these cuts could actually be a good thing, is what some people are saying. we have an expert in the market who is right here. both of our guests are financial experts and robert, i'm going to start with you. you said that you are looking for about a 5% pullback, why that substantial pullback? 5% is a big number. >> yes, it is a relatively big number, but if you look at where we are outcome of the market has gotten a little bit ahead of itself. if you look at the markets, they never attend this day too far above the 50 day moving average grade where i come up with that number of 5% is having the markets pullback and long-term, i think that will be a healthy correction. as you mentioned, a buying opportunity for people to get back into the stocks. cheryl: what do you think?

with congress on the way, nine days ago, as i just mentioned. it comes mainly tomorrow, we could see a possibility of severe weather across texas tonight. the main threat for severe weather, a severe weather threat for texas and louisiana. i would like to point out this area in pain. that is heavy ice, about a half inch on the roads, on the power lines, arkansas and missouri, oklahoma. jon and jenna, tornadoes and ice and heavy snow. it's going to affect a lot of folks. we will keep you posted from the fox news extreme weather center. jon: it sounds like a

multifaceted problem. >> that's right. we will also have the potential for a nor'easter this weekend. jenna: a brand-new hour of our program. including the strategy of shame, that is what one republican is calling the president's deal. just when you think you can't get any more shocking, the trial of a young woman who killed her lover does just that. can her defense lawyers keep this woman off death row? we will ask someone inside the courtroom, and finally police are finding details of the crime that happened in kansas city

last night. details of the fire coming up. all of us will feel almost immediately the effects of the spending cuts. the president making his case, known as sequestration. one big question looms, will they strike a deal to avert the latest fiscal crisis. welcome to a brand-new hour of "happening now." i am generally. jon: i am jon scott. today, president obama will appear on local tv stations around the country. it is part of the march 1 sequestration deadline. yesterday, the president's campaign style push for a deal. one group that could be hit hard

by budget cuts. politico is reporting that the president's strategy is to shame republicans into cutting a deal. >> you don't want to see a bunch of first responders lose their jobs because he protected special interests. are you going to have teachers laid-off? or kids not have access to headstart? or deeper cuts in student loan programs? just because you want to protect a special tax interest loophole that the vast majority of americans don't benefit from. that is the choice. that is the question. jon: meanwhile, house speaker john boehner writes that it is president obama who brought the country to this point. let's talk about it with juan williams, are fox news political analyst. what do you think about the presidential blame game?

>> is hardball politics, and they are playing the one card that they have, which is to try to put pressure on defense type republicans . they know the damage that will be done. this is hardball coming out from the white house. they will go to the grassroots because they don't feel that they can go to congress to make a deal. the go directly to the constituents and put pressure on republicans back home to do some kind of deal. we don't want the teachers to be cut, and all of this. jon: but you wouldn't necessarily have to cut teachers and first responders. isn't it true that there are other cuts that could be made if cooler heads would prevail here? >> oh, sure. we could do what jenna was talking about and break a deal and get out of this debt ceiling and the rest.

but at the moment, that is seen by the white house, and we have just a statement that came out from the white house communications, saying that this is not a deal that the president is making. this is up to the republicans. the republicans have passed a budget plan that has expired. where are the loopholes that would close and are opposed by speaker boehner? so we see this ping-pong back and forth. but we do not see the cooler heads that you are talking about. jon: clearly there will be damage done if the sequestration goes through. but the president is pushing all of these these emotional buttons. headstart and student loans and all kinds of things like this that are not necessarily going to happen. >> they would happen under the sequestration.

i think your point is that he could make changes to avoid some damage. i don't know where the water would flow in terms of additional cuts. but you are right. again, it would be seen in washington as this very polarized moment. it would be seen as helping the republicans out and instead of saying that you have to also name where you would make these cuts and let people know what loopholes we were close. and if you do believe that you have a plan, go ahead, put it to a vote. the response from republicans, i think it is also very clear. the president, they feel, they feel that he has not dealt with the spending cuts that they want. they don't understand why the proposal put forward by democrats in the senate requires about 50% of additional increases in revenue.

jon: because they raised taxes in the fiscal cliff deal, that all got gobbled up and spent, not the president is asking for more, is he not? >> without a doubt, that's exactly what he's asking for. he is asking for that in terms of closing the loopholes. i don't know how you would consider that -- some people don't consider that raising taxes per se, but the argument is that anything more popular than raising taxes is closing the loopholes for the hedge fund operators and the big oil and gas and prescription drug companies. that is the big approach. all cuts come down to losing these loopholes. the republicans are saying, we raised taxes. we are to 80 taxes. come back with significant cuts in terms of spending that would really justify the fact that we have been here and arguing with you all the long. jon: the old saying is

surprising what you can get done if you don't care who gets the credit. it seems like everyone is all about assigning blame. thank you, juan williams. jenna: the mayor of kansas city say that search crews have found a body in the rubble of a popular restaurant destroyed in what was believed to be a gas explosion. eyewitnesses talking about what happened last night. they said it felt like an earthquake. a gas explosion rocking this very popular dining and shopping district. investigators think that the investigation was triggered when a contractor struck an underground gas line. there was a strong gas smell several hours before the explosion. >> the gas company came out. they kept inside our buildings. they said that we were above the limit that was healthy and that we needed to evacuate. but he stepped up the door, it

wasn't two minutes and we were grabbing our stuff, and the explosion hit. and they hate you like a shockwave. >> more than a dozen people were rushed to the hospital. three of them were critically injured, and now we have learned that least one dead. joining us on the phone, mayor james of kansas city. navigating this terrible incident, any more information about what caused it? >> thank you for having us. jenna, we are happy to meet with you. as far as we know, there was a gas leak and a subsequent explosion. we cannot say for sure about the proof at this time, whether one thing caused it or not there. that is the purpose of the ongoing investigation. jenna: what about any additional dangers to surrounding neighborhoods in the city? how concerned are you? >> none at this time. we had a concern yesterday

evening. it was accomplished yesterday evening and the problem was relatively small. jenna: have there been any warning signs in this the neighborhood prior to a few hours before this event? were you aware of any issues with gas find them as part of the city? >> no, there was nothing. there was construction in the area. nothing beyond that. jenna: you are looking at scenes of this incredible picture. what a blessing that there were many more deaths. is anyone still unaccounted for at this time? we have been looking through the numbers and are curious about that part of it. >> this is a the problem that we have. this was a restaurant in the happy hour timeframe.

although it was not heavily populated, we have no idea who was there at the beginning. so we kind of have to work back and reverse to make sure that we have done everything we can to locate anybody that could be missing. we can't be 100% sure until we completely sift through the rubble and come up with options. >> we are showing you a before and after picture. mayer, we appreciate you coming on the show. jon: there is a big divide to show you and tell you about when it comes to the business of tracking. we will show you one state where the natural gas business is booming. and lance armstrong, what it i'e

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jon: right now, for lance armstrong time is running out. if he has any chance of seeing a lifetime ban reversed we have harris faulkner in the newsroom. reporter: that's right, he must meet with the anti-doping officials and he must talk with them under oath about what he knows about performance-enhancing drugs on cycling. we don't know exactly what he will do. until now, he has been giving mixed signals as to whether he will talk with the agency. he said an earlier deadline on february 6. but the attorney said no, the client would not be testifying were talking with him, i should say. but as you may know, lance armstrong was once the rockstar of cyclists.

but he must cooperate if he's going to race again. in january, he admitted to doping on the seven tour de france victories. jon: harris faulkner, thank you. jenna: right now, when it comes to cracking, new york delaying a decision on opening what is believed to be the vast underground reserves. in pennsylvania, the business is booming. john roberts is live, taking a look at these different approaches. our ongoing series of energy in america. >> that's right, new york state has had a moratorium on tracking for the last four and a half years. under the andrew coumo administration, they wring its hands of it.

in the meantime, many people are complaining they are missing out on the economic benefits that we found in bradford county, pennsylvania, more than 1200 wells have been drilled their. including the county seat. town officials say that they missed the 2008 recession altogether. a 5 million-dollar debt, lower property taxes by 6%. the county executive says that he would love to share in some of those economic benefits by allowing tracking in his county. >> we need private sector jobs, it's what upstate new york needs. i will tell you, we will put people to work. we will lower the unemployment rate and people will be a heck of a lot more happier than when they are right now. reporter: it points to dire

political consequences for governor andrew coumo if he gives it the green light. one apple grower uses the process to make her hard cider, which is popular in new york city restaurants. she also has a non-fact gas well on her farm, something she said she would get rid of if she had the opportunity. >> knowing what i do now, i would get rid of it. if i had the opportunity to stop my dad signed the lease on the spot, there is nothing worse doing this. reporter: we talked to another

individual that leases cranes. he said it is the biggest economic opportunity that he has ever had, and he is wishing that others have the same opportunity. jenna: thank you so much. jon: it is one of the biggest names in technology. one of the biggest company's out there. apple now admits that its own computers were hacked. what does it mean if you use a mac or an ipod? also, full speed ahead for a driverless cloud. when will the things be hitting the road? coming up next on "happeningareo now" to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning

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jon: the latest big-name brand

is jeep. and it has been tweeted about with fake tweets. claiming that jeep was sold to cadillac. they denied responsibility for the attack. there is no word on whether the same hackers are behind the attack on jeep and burger king. jenna: now apple has admitted that it is the victim of a cyberattack. they admit that hackers got into the internal commuters, and apple uses the same strategy as big-name tech companies. shibani joshi is live with us information one apple, which is the most powerful technology company,

certainly with twitter and social media, it has been the victim of a attack recently. they said they have a vulnerability in the java plug-in for browsers. even though they are conflicting reports, some people say china, some people that hacking came from possibly eastern europe. there is one common thread between the attack. that is the programming language of java. it is a very common software language. it is owned by oracle, and it was the entry point for all three of these specific attacks. back in january, even the department of homeland security warned about this. the issues surrounding java are so pervasive that 2012 was

deemed the year of java vulnerability. 50% of web attacks are going through the software. the software runs on about 850 million pcs and apple macs out there. it is certainly a good chance that you could be running java writenow. jenna: what can you do to protect yourself if you have the java system? reporter: is one of the things that steve jobs talked about. he said it was not allowed on his computer. with external software comes the problems. if you are a mac user, go to the maxx store, click on your update and uninstall the java update.

and if you do have it, upgrade to the version 10 of java. what we want to make our viewers know that all content is not necessarily bad, but you want to be selective in the use of it. that is a more secure way of accessing the internet. that is what all professionals are saying. jenna: that's a good thing, because usually i say update later on my computer. [laughter] jon: well, google is making a self driving car in the lone star state. the car is completely driving itself, thanks to cameras, a mapping system, and a rotating laser attached to the top. the technology is still in its research and development phase. but google hopes five years from now it will be regularly seen on american roads.

well, she admits that she killed her lover, but the jury will decide whether she did it in self-defense or in a jealous rage. she is testifying in her own defense today. but that something should say on the stand yesterday help her case? and that's putting folks in an uncomfortable position coming up next for over 75 years people have saved money with...ohhh...

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jon: a sensational murder trial in arizona where the woman on the stand is trying to save her own life. she testified in her own defense and she detailed the minutes leading up to the death of her lover, travis alexander, in 2008. she'd meant that she killed him, but claims it was self-defense. she said that he threw a fit because she scratched her a cd, then twisted her arm and god sexually aggressive with her before the couple took explicit photographs of each other. the legal team tried to dismiss the prosecution's claim that she came to his home with the intent to kill him. listen to this exchange with her lawyer. >> when you arrived, did you have a gun with you? no. >> did you have a knife with you?

no. >> did you shoot him? >> no. >> did you have the expectation that when he went there, that part of the activity would be to have sex with travis? >> yes. >> why did you need help? >> it was pretty obvious that i was going to go there that i. >> she faces the death penalty. let's talk about the case with vicky ward, who is outside the courthouse in phoenix. okay, you are getting two pictures drawn here.

she is saying, yes, i wanted to have relationship with him. but the testimony on the stand is all about what a monster he was. is that working for the jury? >> it certainly got their attention, jon. what is coming out on the stand is a picture of a really messed up relationship. this couple broke up, but they couldn't let each other go. she said that he said terrible things to her. she said yesterday that his temper was like an earthquake even when she was 1000 miles away. and yet, they just can't let go. yesterday when she talked about this, there were tensions between them. they were unable to get to the point where they could let go of each other. jon: 82,000 e-mails passed

between the couple in five months? >> that's right. that is on top of 15,000 text messages exchanged between the two. jon: how did they do they have time to do anything else? >> exactly. i don't understand how they had so much time, but the relationship was toxic to the both of them. especially travis alexander. jon: honestly he is the one who wound up dead. what about this trying to go after him? she talked about him being a pedophile? >> she has, jon. i think it is important to remember that she's the only person who talked about him being a pedophile. he she is the only one who says she saw any evidence of that. so the jury is going to come down to whether or not they believe her story. jon: i'm sure his family has

been pretty disturbed to hear and read some of the writings that he exchanged with her. but there is absolutely no evidence other than her own testimony that he was into that kind of thing? >> absolutely. as someone who sat in the courtroom, she was delicate and beautiful and i wanted to be on her side. but as she started verbally vomiting all of these blatant lies, i decided i didn't like her. i turned against her. and i think that that is what the jury is going to do. i think that the jury is smarter than that. and i think that they are going to realize that she was trying to save her own life. jon: she has been on the stand for more than a week now, highly unusual in a death penalty case. it seems to me almost like

stockholm syndrome by locking her up with the jury and having sympathy for her just because she's in our faces every day for more than a week. >> it is like that. the jury and everyone else, we finally got to the dramatic moment that takes us right up to what she is going to talk about today, which is how this killing took place. but for the rest of it, we have more discussion of this complicated relationship. really nasty pictures, graphic pictures, sometimes people are looking down. it's almost like the saturation point. jon: you say that you have made eye contact with her in the

courtroom? >> yes, she's a beautiful girl, she has these beautiful brown eyes. but one i saw her in the courtroom, i felt fear because she's so hollow. it really is kind of scary. to the victims point, we are kind of exhausted. is a conservative state in arizona, when you throw all of these salacious things that this jury, it does seem like it's inappropriate and unnecessary spew on a mostly male jury. thank you both so much. >> thank you. >> thank you, jon. jenna: right now in a state of maine courtroom, a case resuming

that rocked a seaside community involving prostitution. here's faulkner has more. four it is the nature of the jury selection getting everyone's attention. this and the legal sex for higher out of a zumba studio. sex, adultery, illicit images, and prostitution. alexis wright launched her dance studio in kennebunkport and this gentleman who helped her said he didn't know about the allegations of prostitution. but this is a very high-end vacation area. it attracts people from all over the world. and authorities say the sexual encounter set up through that

video was secretly taped by the zumba instructor. the client list that currently totals more than 150 people, including some pretty prominent males. jon: olympic runner oscar pistorius back in court today. what witnesses say that they heard in the minutes before his girlfriend were shot dead. and also, they are both rich and famous, but what else does lady gaga have in common with alex rodriguez? it's in the heads. also a new study that you need to hear about for your health. we will have that next ♪ that over time, having high cholesterol and any of these risk factors can put them at increased risk for plaque buildup inheir arteries. so it's even more important to lower their cholesterol, and that's why, when diet and exercise alonaren't enough, i prescribe crestor.

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a hip injury. the doctors say the surgery must be followed by strict downtime. all of that dancing just like you, jon. jon: oh, yeah. jenna: alex rodriguez is also recovering from the same kind of surgery, that means missing spring training in florida. luckily neither of the stars require a hip replacement. plenty of americans do. doctors perform about 400,000 full or partial hip replacement. replacing hips are more likely to fail and women, research shows. we have a orthopedic surgeon here with us, doctor burke. why do women seem to have a problem with this? >> well, women have a problem because their anatomy is different. it requires a different kind of prosthesis to be placed in. generally, the head is a ball and socket joint.

the femur being the ball and ahead of the ball is smaller and women. so there is a higher incidence of possible dislocation and women. also, women over the age of 65 years old, which is the average age of the study, they tend to have a higher degree of osteoporosis or less bone density. so that also may be a factor. but the real numbers are really not that high. jenna: let's talk a little bit about that. it is scary to think that you go into a hip replacement surgery and then you'll have to do it again in a few years. that what are the numbers of people who have to do that? >> this study was done out of kaiser permanente. over a 10 year period of time, there were all electronic medical records kept. in any case, they studied over 35,000 people and they found a

difference over the length of the study was only .04%. so if you're talking about 35,000 people, you are talking about 114 hits. there are 285,000 total hip replacements done in the united states. jon: so it's a relatively low number? two that's right, a relatively low number. i am curious about the future of the surgery and where it is going. as far as the advances that have been made, what will this look like 10 or 20 or 30 years from now? >> i think you're going to have the same kind of general construct. you cannot change the biomechanics of the body. you might have different materials, but all the principals involved in total hip replacement will be the same.

the components will look similar. they may be made of different materials. but the studies that we need to do, particularly for women, is to see if we can reproduce the forces that are at play in a woman's pelvis that is broader than a man's. and the ball and socket, which is smaller. jenna: doctor burke, thank you so much. >> thank you. jon: coming up next, tackling the tax code. a senator is calling for reforming america's tax system because the current system is putting u.s. businesses at a severe disadvantage. and it might be what's for dinner, but what is behind the recent spike in beef prices? the answer is ahead. [ male announcer ] in blind taste tests, even ragu users chose prego.

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jenna: new calls from the member of a senate finance committee to reform the tax code once and for all. senator rob portman speaking to fox business and wondering about our companies and businesses that are falling behind globally. rich edson is live in ohio with more on this. reporter: good afternoon. there seems to be a willingness in washington. democrats and republicans agree that our corporate tax code is a bit of a mass. of course, there are questions on how to do that. we are at a research and development facility where we caught up with senator rob

portman and he says that there is a willingness in washington to overhaul the corporate tax code. >> now is an opportunity to say, this has become a monstrosity in terms of size and complexity. every one of our text tax rates, it is highest in the industrialized world. >> the problem is democrats and republicans disagree specifically on how many to get rid of and whether or not to use that paid on the deficit deficit or lower the top rate even further.

it could be difficult when it comes time to take them out. jenna: i heard an analogy about the tax code being 10 times longer than the bible, but not as interesting. [laughter] jenna: thank you so much for the perspective today, rich edson. jon: two workers get stuck in a tight spot. 125 feet above the ground. wait until you hear about the special relationship that one of them has with the heroes that eventually get them down hi. i'm henry winkler.

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>> just in to the fox news room. these are live pictures actually of jodi arias as she testifies trying to save her life. now, she's been talking about the moments before her ex-boyfriend's death, specifically describing travis getting angry at her for dropping his camera. listen. >> at that point travis flippedut