guns that killed brian terry before he made the purchase because he lied on a form. secondly those gun dealers who were often portrayed and guilty being responsible for sending those guns to mexico, in fact they were giving the atf updated information daily on who they were selling to and where those guns were going. they were actually told to order guns for some of the bad guys and yet they were portrayed poorly and finally that these dealers, when they balked about sending so many guns to some of these guys they were told they had nothing to worry about it. don't worry about it. when in fact we know now one of those gun dealers could be sued for what he sold. bill? bill: there is a lot in that report, william. what about the warnings this was a bad idea to begin with? >> reporter: well, you know, there was this previous case from the bush administration known as wide receiver, hey, it happened over here. it was a bad idea. well actually there is a memo from the previous prosecutor in the bush administration, i'm going to

quote here. bill: it says, it was wrong to allow hundreds of guns to go to mexico to drug people knowing that that is where they were going. well the bush administration did not prosecute wide receiver however the obama administration revived that prosecution and they talked about this memo, rather about the problem of sending guns to mexico at the department of justice and basically went ahead with the "fast and furious" case even though there were problems with the previous case and decided to go forward. bill? bill: clearly there is a lot to get into this we will again next hour with a guest looking at this report. william, thank you for your first reporting in l.a. on that. heather has more now. heather: this began back in the fall of 2009. that is when a group of phoenix area gun trafficking cases was dubbed "operation fast and furious". it was the largest of several known operations involving thousands of weapons including hundreds of assault rifles. reports say the vast majority of the guns were lost and they turned up at

crime scenes including the site of a shootout on the u.s. side of the border that resulted in the death of a border patrol agent, brian terry. we will have much more, bill, coming up later in the show. but right now some brand new reaction this morning from governor mitt romney as he wraps up his whirlwind, three-nation overseas tour today. the republican presidential candidate making a final stop in poland. that is where he stressed the friendship between washington and warsaw. listen. >> on behalf of my countrymen, i express deep appreciation for your willingness to fight with us, to stand with us, and to be our friends and in times of crisis and military conflict. heather: chief political correspondent carl cameron is live in the polish capital. that is where he had a chance to sit down with the presidential candidate earlier this morning. carl, you asked him to

clarify a few points. what did he have to say? >> reporter: there has been this report that he offended palestinians the day before yesterday, excuse me, yesterday in jerusalem before coming here to poland before coming to a fund-raiser with jewish-american voters. he reference ad book that culture can determine outcomes and mr. romney described on the campaign trail and in his own book frankly there are a number of places around the world countries adjacent to one another can have a very different economies because of their very different cultures. i reference the israeli and palestinians, prompted the palestinians accused him of racism and ignorance. i asked him to address it. here is what he had to say. >> i'm not speaking about it, did not speak about the palestinian culture or the decisions made in their economy. that is an interesting topic that perhaps can deserve scholarly analysis but i actually didn't address that. certainly don't intend to address that during my

campaign. instead i will point out that the choice as society makes have a profound impact on the economy and the vitality of that society. >> reporter: and mr. romney is using poland on this last leg of his foreign trip to highlight exactly that point. this is a country that has stayed out of the eurozone and has a flourishing economy as opposed to what romney refers to pack in the states as a european socialist big government model that an implicit criticism what he says is the president obama's economic policies and a reference to his own contrast to, to free up, remove regulation, lower taxes and allow the entrepreneural spirit to grow in the united states. heather. heather: speaking of criticism, governor romney has faced criticism of his own during this trip. what was his response? >> reporter: yes. he has been accused of gaffs in london and israel for the olympics and for those

remarks about israel and palestinians and the idea that culture can determine outcomes. i asked him specifically about it today. and implicit in his answer you will hear him again criticizing the obama administration and the media in his words, you will hear them in a moment, for trying to distract from the real issues of this election campaign. watch. >> and i realize that there will be some in the fourth estate or whichever estate who are far more interested in finding something to write about that is unrelated to the economy, to geopolitics, to the threat of war, to the reality of conflict in afghanistan today, to a nuclearization of iran. they will instead try and find anything else to divert from the fact that these last four years have been tough years for our country. >> reporter: i asked romney if as a conservative he felt that the media would ever be able to give him a fair

shake and he said, he is getting about what he expected. heather? heather: thank you very much. carl cameron, reporting live for us. we appreciate it. bill: new evidence now that the economy is sputtering. the commerce department reporting personal income rose, what is it half a percent. that would be .5 percent, bill while u.s. consumer spending was unchanged. stuart varney, host of "varney & company" on the fox business network. good morning to you. so the consumer is not making more money, are they, stuart? >> the more important figure there is spending did not go up. zero increase in spending last month. an actual decline in spending the month before. this is very unusual bill. this is the united states. we spend money here. we're used to gradual increases in spending and beg increases when the economy is doing well. so that lack of any new spending suggests that the economy is ion deed slowing down and means consumers are

very cautious when they look out there on the financial horizon the jobs picture is groom, tax increases loom and as of this morning the price of gas went back up again to $3.50 for regular nationwide. bill: the american consumer drives this economy. they are the engine. quickly on savings the savings rate ticked up a bit. >> if you're earning more and spending the same amount than the savings rate has gone up. let me give you a figure that literally just came across wires here. home prices ticked up just over 2% in the month of may compared to april. that could mean that the housing market finally hit a bottom in the spring of this year, is beginning to bounce back a little. that could bring in investors buying a house which they assume will now go up in price as opposed to continue to go down. bill: from your lips to god's ears. i hope you're right, man. see you at 9:15, stuart.

>> yes, sir. bill: heather. heather: we talked about this story yesterday, bill. some breaking developments on one of the world's biggest ever blackouts. more than 600 million people without power in india after the country suffers yet another power grid failure. it is the third collapse in just two days. in delhi, the country's second most populated city all the metro services have been canceled, stranding two million passengers. still unclear why the grid collapses but the power minister is blaming states that he seas take more than their share from the power grid. we will have much more on this story coming up in our next hour. bill: that is remarkable. talking about half the people in that country. heather: all those people. bill: population 1 billion, 1.1 billion. we're just getting started. monsoon rains in the desert state. the water washing out roads and trapping people inside their cars. in a moment hear the effort to save them. we'll take you there. heather: the accused movie massacre gunman facing over 100 counts of murder around

attempted murder. we're live in colorado on what happens next. bill: also there is outrage over a series of sensitive intel leaks. the leading republican on that intel committee is mike rogers, saying it has not stopped and has to becoming straight from the white house. the congressman is live in moments on this. >> we need to do the best we can to clamp down on it because sooner or later it will cost people their lives or it will cost us our national security.

heather: welcome back. monsoon rains in arizona washing away a big stretch of road in tucson. a big inconvenience to say the least to thousands of motorists and elsewhere in tucson. motorists got trapped in their cars. they had to be rescued, a harrowing experience for them and for emergency teams. >> we thought it was border patrol. we had in idea. it turned out to be a black hawk helicopter that was circling very low. then it went and hovered over that car over there. and it threw a line down and a guy just repelled and landed on the roof. >> can you imagine? here's the good news. luckily no one hurt in the ordeal. bill. bill: about 15 minutes past the hour now. we told you how lawmakers on both sides of the aisle are livid with the white house over intel leaks. house intelligence committee chair mike rogers is with me now from the hill.

and sir, good morning to you. >> good morning, bill. bill: you say the leaks have not stopped. what happened since the first report came out though? >> well the first reported leak i assume you're talking about but there has been at least some negotiations we understand between investigators and the white house about interviews that might happen with white house staff. we know that's happened. we think some interviews have actually happened. my concern is that because the president has been so strong about saying we don't need an independent council and my folks didn't do it, that they need to be a lot more open and transparent about this investigation. they need to allow investigators anywhere they need to go when it comes to the president's staff. i think that would be incredibly important. i think the president needs to do two things right now. he needs to say all of the records, phone records, e-mails, faxes all of those communications will be made available immediately to investigators in relation to

the leaks. and, i will release my staff from, to be able to tell those reporters that they're no longer obligated to keep his staff confidential if they have had those conversations. if we do that, i think this thing goes away very, very quickly. we can find the individual who has been doing some very damaging things to this country or individuals, and be done with this so we can regain the credibility on the world stage and i'll tell you, it does cause us problems around the world when this stuff happens. and with the intelligence community here in the united states who works abroad and really difficult work that they do, they don't want to see on the front page of the paper. bill: based on that answer you hold the president responsible here clearly? >> i think the president needs to be very forceful about, he was very forceful coming out saying his folks didn't do it. great, that's fine. but now, mr. president, you need to say i will have full cooperation so you can look at my staff and the

investigators can take the leads where they find them. given the senior level --. bill: why do you believe that has not happened? >> well i think i they were hoping it would just kind of go away. clearly somebody had senior level access, covert access, who had access to the situation room. that was just what was publicly reported. as an old fbi agent, bill, that's a clue that they have got some issues over there they have to get a handle on. this isn't republicans. this is republicans and democrats. both committees are very concerned about the damaging leaks and these may be the most dangerous, certainly i've seen in my lifetime, to our national security. you are going to regain credibility and the president will regain credibility he needs to step up and make it very clear, full cooperation and we're doing to do it now. bill: as a former fbi guy why did you say this week it's a crime? explain that. >> why did i say this week, i'm sorry, bill? bill: it's a crime. >> it is a crime to leak

this information. oh absolutely. when you release classified information in a way that hurts national security, or the defense of the united states, that is a felony. and we should treat it like a felony. these are matters of "war and peace". that, we need to understand here. the information they have been talking about are al qaeda elements and other things in the yemeni bombing that may in fact result in the deaths of americans or others because of leaks. in addition, other programs were leaked, some inaccurate, but no less damaging that also could interfere with people's decision to go to war or not go to war. these are serious, serious matters and we have to treat them serious. bill: you also know that the circle is small for those who are in the situation room. there are not many folks to point a finger at, are there? >> that list gets pretty small in a hurry and you can isolate those lists pretty quickly. there are others involved and sometimes that list can grow out.

but as an investigator you always want to start where you know people had access and work your way out. if we're going to have to go through a long process of negotiation who gets interviewed and how long and how many times, or, if i can get all of the document, calendars, e-mails, phone records that is critical to an investigation like this and the release of those individuals from, to be able to tell the reporter, hey, you can talk to the investigator about your interviews with me, that is critical. the president can allow his staff to do all of those things. it hasn't happened yet. i think the longer this goes and the more leaks we see in the paper, it damages the credibility of the united states of america overseas and the ability for our intelligence service to do their work. that is why i think this is so important. bill: ultimately to figure out where it leads. mike rogers, thank you, as we move on the story coming weeks and months ahead. thank you. >> thank you, bill. heather: finally here, the

long-awaited murder trial of drew peterson, opening statements to start in the next hour. what we expect in the courtroom today with a live report. bill: the accused shooter in the colorado movie massacre charged with 142 counts. will the expected insanity defense work in his favor? >> he had an expression and a kind of a persona of evilness to him but he looked very sane to me, he really did. male spirit present.trong it's the priceline negotiator. >>what? >>sorry. he wants you to know about priceline's new express deals. it's a faster way to get a great hotel deal without bidding. pick one with a pool, a gym, a great guest rating. >>and save big. >>thanks negotiator. wherever you are. ya, no. he's over here.

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bill: talk about your quick-thinking kid. a new jersey girl knowing just what to do in the face of danger. she is 12 years old. miranda bowman was riding with her grandfather when he died of a heart attack, his foot on the gas pedal, his truck tearing down the

highway at 80 miles an hour. the miranda quickly slipping behind the steering wheel, breaking the -- braking the truck as best she could, steering off the road as best she could plowing into trees and bushes. amazingly miranda was not hurt. she knew how to react because her father is an emt. watch as lot of "law & order" shows and watches what adults do when they are behind the wheel. heather: a very adult move for a 12-year-old. prosecutors have now charged the man accused gunning down 12 people at a colorado movie theater. 24-year-old james holmes now facing 24 counts of murder, two for each one of the victims and 116 counts of attempted murder. alicia acuna is live in colorado with more on the state's case going forward. so, alicia, where do we go from here? >> reporter: hi, heather. next up is a hearing set for next thursday where the judge in the case will

address a motion by more than two dozen, or nearly two dozen media organizations including fox news whether to unseal documents in the case. the defense requested that the judge limit the amount of information released to public on james holmes and what investigators say they found and heard as events were developing. the media is arguing the public has a right to know. >> i would say that a crime of this sort, when there's a crime of this sort, it is a tremendous public interest to be able to monitor the criminal justice system and that's why the news media as the eyes and ears for the public has asked the court to create transparency and allow the public to monitor the proceedings of the criminal justice system. >> reporter: the defense's argument is to release this information would impair holmes right to a fair trial. under colorado law, holmes has the right to be in court next week for this hearing

however, heather, we still don't have confirmation whether or not he will be there. heather: how about this? do we know when or if the district attorney will make announcement whether she will pursue the death penalty? >> reporter: the district attorney here, carol chambers, still has more than a month to make that decision. given colorado's history with executions, meaning they are rare, this case rises to the level and beyond that of other capital punishment cases the state has seen. legal experts say we can anticipate the public defender's office to attempt some sort of insanity test with holmes. if holmes mental confidence becomes an issue which there are signals that could be a possibility then the entire process slows to a crawl. in that case we can expect multiple hearings and that sort of thing. at this point, heather, his preliminary hearing is scheduled for november however that could change should his competency become an issue. back to you. heather: november for now. thank you very much. alicia acuna reporting live for us, thanks. bill: that story will be

with us for a long time to come. heather: yeah. bill: mitt romney only moments ago in poland saying it is all about anything but the economy. responding to critics after his overseas trip as a governor and presidential candidate have a point on that? fair and balanced debates with bob and andrea as they tackle it. plus, there is this. [gunfire] heather: a dire new warning from syrian rebels. they now say the city of a help poe will be the regime's grave. the worsening violence in that country coming up. [gunfire]

bill: some breaking news here. jury will start hearing opening statements in the drew peterson murder trial this morning. peterson is a former cop long under the suspicion of the disappearance of his fourth wife stacey. he is on trial now killing

wife number three, kathleen savio. her death was initially ruled an accident but the case was reopened after stacey vanished under mysterious circumstances. mike tobin live outside the courthouse in illinois. mike, good morning. >> reporter: bill, the lawyer for drew peterson said at the moment he is against his client testifying in this trial but he says peterson is relaxed and confident as the day of reckon something upon him. he was a bolling brook, illinois, cop who is now a notorious murder suspect at the center of a drama, filled with sex, lives and missing lives. >> are you surprised by the charge and the arrest yesterday? >> reporter: 58-year-old drew peterson has been behind bars since 2009 awaiting trial. his third wife died in 2004 in odd circumstances. police never came after peterson until his fourth wife stacey disappeared. >> we'll line up this way

and head that way. >> reporter: an intense search for the mother of two led nowhere. it gave authorities reason to exhume the body of that third wife, kathleen savio. her death was initially ruled an accident but the second autopsy determined she was murdered. with little physical evidence, prosecutors will pursue, illinois's here say law. >> that person's statements that may implicate you may be used against you. >> reporter: that means savio in essence will testify from the grave. they say that savio said that peterson threatened to kill her. attorney steven greenberg says the prosecution can't put peterson at the scene and lack any hard physical evidence. bill. bill: keep us posted. mike tobin live in joliet, illinois. heather: reports of brand new fighting breaking out in syria's largest city. government forces are trying to drive the rebels out of

aleppo but opposition fighters are vowing they will not budge. saying that they want to turn the city into quote, the regime's grave. bret stevens, foreign affairs columnist with "the wall street journal." and he joins us now with more. thanks for joining us, first of all. >> great to be here. heather: who is winning aleppo? >> it is hard to say. if you're not on the ground you clearly won't know and there are conflicting reports. it is important not to come to the conclusion this regime is on its last legs as the obama administration keeps insisting. it clearly has a will to fight. it clearly has been able to deploy huge forces to aleppo, which is essentially syria's new york city. it is the biggest city. it is the commercial, its commercial hub. so this is the key moment. this is where we're going to find out if the regime is going to lose a crucial battle or whether it will be able to inflict really devastating blow on the opposition. i think it is too soon to rule the assad family out

unfor the that thely. -- unfortunately. >> compare it to new york city. 2.5 million people living there in aleppo. damascus is actually the state capital. but speak to me about the regime if they lose control of aleppo. what does that mean for them strategically and psychologically? >> psychologically it is a huge blow precisely for the reasons you just described. the country's largest city and commercial hub. it also would be a military blow. the city is close to the border with turkey. it would be the equivalent of libyan rebels taking control of benghazi last year during the uprising there and using that as a base, as a hub in order to, in order to capture tripoli. so the battle for aleppo i think is a crucial battle in this ongoing war. but again, important to underscore that the assad regime is not yet finished. heather: this revolt against assad regime has been going on for roughly 16 months or so at this point. what about the support that

they are getting from outside sources, specifically russia and china? could the situation be resolved if they don't resolve that part of it? >> well the regime is definitely getting both diplomatic support at the u.n. from the russians and chinese who vetoed any kind of collective action. they have been getting military equipment, reportedly from, from the russians. they have been a getting a lot of help of course from the iranians. on the other side the miracle that the free syrian army, the opposition army has been able to stand up at all. the united states has been very leery providing any kind of support and here in aleppo by the way you have the same humanitarian disaster you had last year or you were about to have with benghazi. it is very hard to understand the obama administration's motives not trying to come in on the side of rebels against a region game that is the iran's best friend in the region. heather: what do we need to do? will sanctions work? do we need to get on the ground? >> i don't think sanctions

will work and we don't need to get on the ground. one of the vital uses of syrian regime of attack helicopters and planes to ferry supplies to aleppo's airport. i've been saying for a long time a no-fly zone would be imposed for very little for the united states and with decisive impact turning the tide in syria. heather: you talk about the humanitarian losses. they have been massive there in syria. we've seen the images time and time again of young children there on the streets in syria losing their parents, losing their own lives. why should we care beyond the humanitarian losses? >> well again, syria is the bridge between iran and hezbollah. syria has been an enemy of the united states for 40 years. syria has its fingers in numerous attacks against americans. if you remember the way in which jihadis were being ferried into iraq through syria, throughout the iraq war, this is a long-standing

enemy of the united states and this is a long-standing friend of the mullahs in iran. so the end of this regime would be a huge strategic set back for tehran. it would be a significant strategic advance for the united states and for our friends in the region. heather: so pay attention. thank you so much for joining us. we appreciate, we appreciate it. bret stevens joining us. >> thank you. bill: there are new signs that wall street is already betting who wins the upcoming election in november. so what do you think? screen left or screen right? which candidate comes out on top? we will tell you. heather: yep. plus a man rushed to the hospital after something attacks him at a popular tourist destination. is jaws on the prowl? >> what was the most recent shark sighting? >> i say about two weeks ago. >> it was, not, it was like a shark don't miss red lobster's four course seafood feast choose your soup salad entrée pls dessert! all just $14.99.

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heather: welcome back. developing right now in "america's newsroom.". pro-football player oj murdoch died of an apparent suicide. the tennessee titan was found shot to death inside his car on monday. he was 25 years old. a judge awarding 9/11 victims families $6 billion on their suit targeting al qaeda and iran. they claim the two worked together to work out the plot that killed 3000 people. it is the first ruling for the attack with civil penalties. when if you see in this picture is just fine but if teens want anything besides their ears pierced they will need a note from their parents. it is part of a bill governor andrew cuomo signed yesterday, meaning meant to promote public safety. bill: really? what do you think about that? heather: got to check on your peersings. bill: just don't do it, guys. heather: exactly. >> 19 minutes before the hour, governor romney only moments ago in poland

unleashing back at his critics in an interview with carl cameron after critics take him on over comments overseas, first in london an jerusalem. romney says the media focusing on anything but what he argues is the most important issue in america. have a listen here. >> i realize that there will be some in the fourth estate or whichever estate, who are far more interested in finding something to write about that is unrelated to the economy, to geopolitics, to the threat of war, to the reality of conflict in afghanistan today, to a nuclearization of iran. they will instead try to find, try and find anything else to divert from the fact that these last four years have been tough years for our country. bill: so now the story takes a new turn. bob beckel, former campaign manager, andrea tanteros, daily news columnist. both co-hosts of "the five" good morning to both of you

atbe, bob. anything but the economy. >> he mentioned estates. include his estates. bill: there might be a few. continue. >> listen, you can't be thin-skinned like that. you're running for president of the united states. as dick daley original mayor daly said this is not a game of bean bag. for him to whine like that, the part of the reason the american people haven't warmed to the guy. he doesn't take criticism well. if it is direct the at him, he, just sound like a guy running for alderman. bill: i think andrea is boiling over there. thin-skinned? >> not boiling. not boiling. i'm actually amused coming from bob he is saying romney is thin-skinned. how about president obama being thin-skinned unable to take any type of criticism? if you watch any interview i remember one we did hear at fox news channel, bret baier couldn't even ask a question without the president getting offended. romney has a point. >> that happens to me every

day on "the five". >> you're whining. now that is whine, bob. >> i see. >> romney is talking about a fair point which is that this media wants to talk about anything but the economy. so they will dig in his past and paint him as a bully. they will talk about his wife's horse. anything but the number one issue to voters. which by the way we point out romney leads obama two to one, 69 to 23%, which bob, i don't have to tell you those are double digits pretty powerful. bill: all the personal stuff aside, bob, what is he pointing out issues not just our country faces you but the world faces. >> am i missing something is that not on every major newspaper and every major broadcast network is the economy not the story? of course it is. bill: past few days, first stop in london, first stop in jerusalem he has taken hits from both sides. go to poland talk about the olympics games, man experienced putting on salt lake games here at home. called it disconcerting. it was candid. it was accurate.

it was honest. had to do with the british government bringing in the military at the 11th hour to make sure the games were secure. when he said to israel, culture affects development. >> that absolutely true. bill: can you argue culture does not affect development than any where in the world. >> there are not better people when freed up they will tell you that. when palestinians had west bank not under hamas they were doing very well. the economy was growing enormously. leaving that aside, the point as overseas of president of the united states can't afford to make gaffs. >> wasn't a gaffe. bill: why are those, gaffs bob. >> in you don't go into host country and no incation of terrorist activity or security is not adequate and say it. don't say it. there is lot of things you could say. these are our friends. bill: all the headlines andrea, these are fwafs. how do you see that? >> i don't see them as gaffs at all. do i see giving the queen an ipod of your own speeches like president obama did a

gaffe? see open mike moment as a gaffe, versailles russ gaffe. that is a foreign policy gaffe. mitt romney doesn't have experience planning barbecues in chicago like president obama does he has experience planning and putting together the olympics and actually fixing the olympics. so his criticism was well-taken and relevant. comes to, hold on, bob. >> sorry. >> point, israel is very important. he made that comment about the culture because the palestinians are teaching their children jihad. they are teaching them to hate. so when he talks about a culture, that is what he is talking about. very relevant, very on point and something that president obama would never have the guts to say. >> he was talking about economic development and sort of hard to do that when your borders are sealed up. >> that is isn't what i was talking about. >> we all missed it here, left england without watching his wife's horse in the dressage. i never heard of the dressage before but talks about very expensive horses. bill: when he comes back home all the attention will come back to issue number

one, that is the economy. we hear to both of you wall street is already betting on mitt romney winning in 98 days from now. and you couple that with "the wall street journal" poll that came out last week, when voters were asked who is better quipped to improve the economy, governor romney at 43%, president obama at 36%. that is issue number one, right? >> issue number one "the wall street journal" and business community being for a republican is a shocking piece of political analysis to me. i just, i'm overwhelmed by it and --. bill: talking about investors going into the stock market, idea that the -- over past week. >> bill, the idea suggest spikes in the market have to do with romney when in fact it had to do with european banks supporting greeks, andrea's people. things like, that it is a reach. i understand the business community, don't like obama at all and they want romney badly. they don't know what they're asking for here. they better be careful. >> bob, easy point. bill: some are arguing, andrea, this is 82%

accurate. put that with your baclava. >> what is 82% accurate. >> bob can not put greece on my shoulders. i would say this, bob, is betting man, we watch him calling his book can i during commercial breaks. >> i called my bookie before the show. >> exactly. you know wall street goes make big bets and hedge. this time the money is flowing to mitt romney. there is very good chance he will win but prefer him to win. >> wall street i take second to none in my appreciation how wall street tries to bet its way into influence and they have done it very well on both sides. right now they believe romney is the frontrunner. i believe he is the frontrunner. i don't think he will stay the frontrunner but i think he is now. bill: to both of you see you at 5:00. >> thank you, mr. hemmer. bill: what do you think, cheese for lunch, andrea? what do you think? >> bob, how about freak restaurant. >> i will miss the dressage. i need to watch the dressage. bill: i will see both of you

in 7 hours and 11 minutes. >> you got it. heather: how many days left until that election? bill: 98. heather: 98 and counting. this traffic stop anything but routine. look. [sirens] a chilling attack caught on police dash-cam. the suspect opened fire on an officer. what is being called an ambush-style attack. bill: many of us in the water. it is stomacher time. reports of a shark attack at a very popular tourist spot. >> a fin about, you know, yeah big, came up and it was torquing and then it was just, like, what did we just see out of a movie. you're like oh, my god, but you know, that was a shark. [ male announcer ] it's a golden opportunity...

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bill: nine straight days

demonstrators on the streets of anaheim, california. they're protesting, they say, two fatal police shootings triggering days of riots there. sometimes violent clashes at times with police. community organizers want the state's attorney general to look into this matter. the mother of one of the men shot says she wants justice. >> been a series of crimes, i'm sorry, of murders that have happened over the last year at the hands of the police department of unarmed young latino males. that is what this is the community response and the outrage. >> my son was a victim of -- going on in anaheim and it has got to stop. accountability, that is what i'm here for. bill: anaheim police saying both men shot were known gang members the department of justice and the fbi agreeing to conduct an independent review. heather: listen to this. swimmers on cape cod, massachusetts, getting a warning to watch out after what looks to be a shark

attack. a man reportedly swimming with his son rushed to the hospital after suffering severe bites to his legs. witnesses saying that they saw a fin above the water just before the victim was attacked. rick leventhal is live in our newsroom. so, rick, is this a confirmed as a shark attack? >> reporter: not officially, heather but the victim told hospital staff he was bitten by a shark and witnesses seem to conform it. the man has not been identified but was a strong and confident swimmer well offshore, body surfing with a teen believed to be his son when the attack occurred. it happened off boston beach in cape cod. it is isolated stretch of coast, heavy surf, steve bluffs and no lifeguards. witnesses say the two swimmers were 80 yards out when a large dorsal fin popped out of the water between them. the pair headed toward shore as the teen called for help. when they reached the beaches several people rushed over to help after they saw bite marks on the

man's legs. >> it was unbelievable. we thought we were watching a movie. we looked at each other wondering did we see what we think we saw? >> reporter: was taken to cape cod hospital and transferred to massachusetts again in boston with severe cuts on both legs but won't lose a him according to the fire chief there. heather: that is food news, rick. how rare has this happened in this area? >> reporter: it hasn't happened in those waters in 75 years. but the risk is increasing because seals are attracting gait whites to cape cod. we saw evidence of last summer a school of sharks swimming nearby. since 2000, 800 shark attacks worldwide. most of the attacks, 473 occurred in the u.s. with 11 fatalities of the last year, 29 shark attacks in u.s. warts with no fatalities. any attack could have a chilling effect on beachgoers. as we heard from one woman who witnessed the event leaving the beach said, it is enough for today.

heather: i bet. rick thank you very much. bill: happens every summer, doesn't it. heather: what do you think about that? bill: same beach every summer. i would find a different place to go. heather: might be a good idea. bill: we'll send maccallum on that. when she gets back we'll get the full story. pointing fingers at "fast and furious." five officials called out for the botched operation. will the blame go any higher? we'll look at that. heather: who can forget this? mr. hot tub. the infamous person responsible for this lavish conference paid for by you the taxpayer. now a new report saying that there may be more than 70 instances of similar behavior. ♪ . kate and i have been married for 15 years. that's 3 moves, 5 jobs, 2 newborns. it's no wonder i'm getting gray. but kate still looks like...kate. [ female announcer ] with nice'n easy, all they see is you --

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and could save you thousands a year in out-of-pocket costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. bill: fox news alert, a disturbing new report casting fresh doubt on the president's immigration policy. new data showing that nearly one

in every six illegal immigrants arrested for a crime do it again after they are released. welcome back, everybody, fresh new hour here. i'm bill hemmer live in "america's newsroom." how you doing heather? >> reporter: i'm doing great, i'm heather childress filling in for martha maccallum who is off. they analyze homeland security records from 2008 to 2011. steve centanni is joining us live from washington. what does the report say? >> this report, critics will point out of course the immigration policies by the obama administration are too lax and that criminals arrested for criminal off fences are too often released instead of deported. findings were requested by the house judiciary committee that show that 17% of undocumented immigrants arrested for crime

commit crimes within two years of their arrests. 14% was driving under the influence. 11% drug violation. 7.1 were for major criminal offenses which could assault, rape and murder. lamar smith said of the findings the obama administration could have prevented these senseless crimes by enforcing our immigration laws. but president obama continues to further his anti-enforcement agenda while innocent americans suffer the consequences. heather. >> reporter: how does homeland security respond to this new report? >> we haven't got even a direct response from homeland security yet. we are still trying. the administration has defend edits immigration policy saying its focus is on true criminals not the average undocumented immigrant. this report focuses on that criminal sector to make the case the policy is not working enough. the recidivism rate is much higher about 67%, but the president's critics here are

saying these people should have been deported not released to commit new crimes. heather. >> reporter: steve centanni live for us from washington. thank you. bill: new revelations in the government spending scandal, investigators looking into at least 70 more questionable events funded by taxpayer dollars. remember this? agency boss jeff nealy from the tsa -- gsa, rather in a vegas hot tub was tha at a conference that cost taxpayers more than half a million dollars. >> everyone was taken by the fella in the hot tub who thumbed his nose at congress, and u know, wenyou know, went on this spending and travel spree. he was unfortunately the tip of the iceberg it appears. it looks like there may be dozens and dozens of these conferences. bill: bob cusack is with us, managing editor of the hill. good morning to you. >> good morning.

bill: tip of the iceberg means what? >> this is another problem of gsa, another example of government gone wild. with record debt and deficit this is part of the republican narrative that they are portraying the baltimore straeugs, whether it's gsa or fast and furious. we had the leak investigation. this is an ongoing problem, and congressman micah who is in a tough re-election battle is sinking his teeth into it. bill: you had the vegas conference. an awards conference in alexandria, virginia which costs quite a bit too. there were a number of drum sticks bought and passed out to participants at that event. >> clearly this is a culture within gsa. congressman micah is suggesting that even some of the people who came into fix it could be to blame. we'll see with the hearing later this week. it's amazing that he would say there could be more than 70 more instances of this. in some ways it's not surprising because we have seen a pattern at gsa.

bill: do we have any indication these other incidents, 77 of them were the same level as vegas, virginia or possibly even greater, maybe they spent more money? >> maybe. it would be hard to believe that it could be greater than this. clearly these were just not isolated instances and that's what congressman macah is saying and that's what we'll find out more at the hearing and his investigators what they have unveiled. this is a problem so close to the election, something i'm sure that mitt romney could bring up during the debates, as far as -- the role of government is playing such an important role in the election race, so this is playing into the g.o.p.'s hands. bill: meaning the government is being debated as to what role government should have in our lives. >> that's exactly right. bill: that's the storyline you pick up on this. >> without a doubt. that is the narrative that the republicans are saying, this debate between the private sector and the role of government we have these

instances. the white house is distancing itself from the on going gsa scandal. bill: thanks for your time today. five minutes past a bit more with heather on that. >> gas stands for the general services administration. basically a federal agency that oversees government spending, but now the inspector general of the agency currently investigating that one day award ceremony in the d.c. area held back in 2010. it is the one, actually with the aforementioned drum sticks, bill talked about that, that cost $20,000. total cost for the one-day event almost $270,000. that event coming just four weeks after an $823,000 gsa spending spree at a las vegas hotel. bill: breaking news on the economy now, this number is just out now consumer confidence after four months of a decline the number is up, almost 66. the number is up, it is still

well below 90. 90 is the number which indicates a healthy economy. you think, five, ten years ago that number was well over 100. 120 at times. 65.9 is your marker at the moment. martha: and more on this story, another massive black out in india, more than 600 million people without power in the sweltering heat. hospitals switching to back up generators, people stranded on trains and traffic jamming the roads. this is the third grid collapse in india in just two days. greg palkot is in london for us this morning with the latest. what is going on now. >> reporter: heather, the numbers of mind boggling. imagine all of the united states without electricity and double that, more than half of the 1.2 billion people in india short of power. 20 of 28 states. it affects the north, and northeast and eastern part of that country and follows a smaller and still big black out

yesterday and affects all aspects of life in india. homes, officers, government buildings, vital services. transport, train, coal miners stuck underground. they should have a lot of the power back by evening their time but still obviously very serio serious. >> reporter: and so how did this happen to begin with, do we know what started this? >> reporter: it's a basic thing, heather from what we are seeing, it's basically supply and demand. too much demand, not enough supply. we're talking about over use, overloaded systems, drawing upon old state-run pour systems and the population in india is soaring, the economy is booming and there is just not enough electricity to fuel this. we are told luckily to some degree for india they are used to this. there are a lot of smaller blackouts so there are a lot of

back up power systems available, a lot of generators for big and small businesses, as well as residences, and we are told according to the latest senses that one-third of the country isn't even plugged into power, but in fact as the population continues to grow, as the economy continues to broom this is going to remain a big problem. they are already looking very hard at how to try to avoid this in the future, heather. >> reporter: greg palkot live for us in london, thank you. bill: still on the election front democrats revealing who will be the key-note speaker at the national convention in charter. and antonio mayor julian castro will be the first hispanic to give the keynote address, elizabeth warren also tapped to speak facing off against scott brown the republican. and former president bill clinton who will enter president obama's name into the nomination. that is the first week in

september. you have republicans the week before in tampa. two big weeks in politics close out the summer. >> reporter: charlotte is my hometown. they've been working hard to prepare. democrats ready to add same-sex marriage to the platform for the convention. we will take an in-depth look at that issue and the political fall automatic ahead. bill: republican investigators pointing t finger at high-ranking employees at the atf. a brand-new report on fast and furious, how high does the blame go there. >> reporter: the country faces devastating cuts to the military. top republicans want to know, where is the president? >> the president of the united states is commander-in-chief, he's the only one, and if these impacts have the devastating affects that secretary panetta and all of our uniformed military leaders say, he should be in there talking with us, he should be leading, and he's mia. wake up!

that's good morning, veggie style. hmmm. fohalf the calories plus vgie nutrition. could've had a v8.

heather: welcome back. dozens of people in new jersey forced out of their homes this morning as a massive water main break in scotch plains floods streets, homes and buildings. aerial footage capturing all the damage. most of the area appears to be underwater. so far, though, no injuries reported. crews trying to fix the problem struggling, though, to stop the water flow. bill. bill: fox news alert right now. a new report on fast and furious that places blame for the

botched gun running sting singling out five atf employees. these are some of the highest ranking people in that agency. kenneth melson, william hoover. witness yam fuel the special agent in charge of the phoenix division. william mcmahon. mark chate, assistant director for field operations as well on that list. in this jim minhoff on the report, the first of at least two, possibly three. rolroll it. >> i think the public understands what is going on in fast and furious and it's out outrageous and the president is so busy trying to do damage control. we have a report coming out showing individuals and documentation and what they had to do with it. bill: matthew boil is a reporter for the daly call ir. good morning to you. thousands of pages in this report. it's a lot to go through but i

want to take it simply. you bieve the investigation is in two parts. explain that. >> basically what we've got here is that there is the actual wrongdoing that happened in operation fast and furious that is being explored in this first report. there are going to be two more reports that are going to come out in the near future that are going to actually look into the political level cover up at -- from high ranking officials in the obama administration, including potentially the president himself, because he has exerted executive privilege over the documents. bill: how would they get at that if there is executive privilege, matthew? >> well, when they voted attorney general holder in contempt of congress a little over a month ago there were two different contempt resolutions. the first one was a criminal contempt resolution which the u.s. attorney for the district of columbia will not be enforcing. the second resolution was a civil contempt resolution which allows the house of representatives to essentially

hire lawyers and go fight the administration in court to try to get a hold of the documents. bill: on the civil side, i see, okay. there are things in there based on law the civil versus criminal. james inhoff says this would be a very serious issue come the election in november for barack obama. is he right on that? if so how so. >> absolutely. this shows that this administration has failed to hold people who did wrong, and they are now named. we have names now of people who did bad things on the taxpayers' dime who essentially armed the mexican drug cartels. they have not been held accountable in this administration and this president has failed to be transparent about it. bill: let me just nail you down on that. now we have the names, how does the story change? or how does the investigation change? >> well, now we have the names, we have specifics, we are going to be waiting on a report from the justice department's inspector general.

we'll have to see how that matches up with this report. we'll have to see how this moves forward. does this administration actually hold these people accountable? what took them so long? why did they mislead congress? these are the questions that are going to come later. they've misled congress, there is no doubt about that. they sent a false letter to congress that they didn't withdraw until ten months later. bill: kenneth melson, he was one of the knife i wa five i just mentioned. he said, this is a reference to the defendant justice i believe. my view of the whole matter of the department's response in this case with us a disaster. explain the impact of a statement like that. >> basically what you've got is is ken melson was the then acting director of the atf, he's since been reassigned during fast and furious. and he basically is explaining how this administration has

essentially misled congress. he knows, he's known for a while. he went and did a secret deposition with house oversight committee chairman darrell issa's staff last summer and there's still been no accountability and he knows that. bill: would you expect someone like melson to testify against the department of justice? >> he already has. bill: if it reaches that point? >> he already has, he already did last summer. he went in and gave a deposition behind closed doors with members of -- bill: how much of his testimony then is an indictment that could be aimed at eric holder or high stpher. >> an unbelievable a. i've had a story on the daly caller a little over a month ago about how there was one emailer that melson told investigators about that showed high ranking officials, potentially including attorney general holder knew that the false letter to senator grassley was false nine months before they withdrew it. but we know that high-ranking officials inside the department

of justice knew that there was a false statement on the books to congress, according to kenneth melson. he's already testified against this administration. he's already gone in and done this. he did it during a secret deposition last summer. bill: two more reports are forthcoming. one is about the department of justice. when does that go public? >> we are not sure yet. we are waiting for darrell issa and senator grassley to come out with them. i would fully expect them to come out as soon as they can get them out. bill: you mean before the election. >> i fully expect them to come out before the election, absolutely. bill: thank you from the daily caller, thank you i know you've been on this story from the beginning as has our own william la jeunesse. we appreciate your insight. thanks. heather: after long delays the drew petersen murder trial just getting underway with opening statement. judge satisfactory tphaoepjudge jeanine piro is at the

courthouse and joins us. pwhruplus this. bill: that is chilling dash cam video. shots fired at a police officer. the traffic stop that could have ended in tragedy. [sirens blaring ] ♪ i'd like to thank eating right, whole grain, multigrain cheerios! mom, are those my jeans? [ female announcer ] people who choose more whole grain tend to weigh less than those who don't. multigrain cheerios tend to weigh less than those who don't. by what's getting done. measure commitment the twenty billion doars bp committed has helped fund economic and environmental recovery. long-term, bp's made a five hundred million dollar commitment to support scientists studying the environment.

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bill: 22 minutes past the hour now. a huge fire last month that damaged a building in san francisco on the waterfront was started by a construction crew. investigators say that welders work on a staging area for the america's cup race started a fire when sparks ignited some wood. the fire was an accident. the head of iran's central bank comparing western sanctions to a, quote, military war. the sanctions target iran's oil exports and its access to international banks. the u.s. and its allies worry that iran is trying to build

nuclear weapons. great story here, 17 years young, miss see franklin winning the 100-meter backstroke. the aurora, choppe colorado teenager working her first medal. michael phelps gets to defend his title at the 200-meter butterfly. heather: he almost lost it. bill: miss see was swimming for her friends in colorado, an awesome story. heather: just 17-years-old. bill: super young. and had just swam an event 14 minutes prior. heather: good for her. usa. the mayor of cash-strapped scranton, pennsylvania reaching a deal with the city's union to pay public workers back wages, plus interest. mayor chris duarte attracted national attention when he slashed the way of city workers to minimum wage, $7.25 an hour, saying the city did not have enough money to make the

$1 million payroll. david lee miller is live in scranton, pennsylvania, with details on the deal. david lee, what is the reaction to all of this? >> reporter: well so far, heather, no one here is uncorking the campaign bottles because to a great extent this was a controversy that was resolved two weeks ago. at that point in time the mayor said there had been an increase in tax revenue flow and he was able to restore full pay. nevertheless the mayor did remain in possible contempt of court for violating the collective bargaining agreements with the unions here in scranton, but this weekend everything changed when the mayor and the unions struck a deal. under this deal the city is going to pay the unions a total of $700,000 in backpack, in addition to interest that is going to be collected at 6%. that will total about $5,100. the head of the firefighters union says he is relieved, but he does remain bitter. listen.

>> it was definitely insulting that these guys are trained professionals. these kwaoeus train ever guys train every day, put their lives on the line. to require them to do their job for 7.25 an hour is an insult. hopefully it's done and over with at this point. >> reporter: one thing worth noting here, is that when the mayor decided that everyone was going to be paid minimum wage he meant everyone, heather. the mayor receives a salary of $50,000 a year. he too was getting 7.25 an hour. heather. heather: so, david lee how did this deal come about to begin with? >> reporter: well scranton has been in financial trouble for decades. the mayor and the city council last week came up with a recovery plan. as a part of that plan taxes are going to be raised here a little more than 30%, real estate taxes over three years. by raising taxes the city then paved the way for the state to give the city a combination loan

and grant totaling more than $2 million. that money is going to be used to pay the wages that are owed. and it's a debt that the mayor here readily acknowledges. >> the employees deserve to be paid. they have done a good job for our city, that is never a question, and we have an obligation to pay them, we just didn't have any money, so we have to work on that to make sure that we have the funding in place, not only to provide for the people of our city, the citizens, the services that they ask for but also to the employees who work for those people. >> reporter: scranton still faces a very difficult financial future. the city still has more than $250 million in debt. it's going to take years and years nor a full recovery. heather. heather: david lee miller live from scranton, pennsylvania for us this morning. thank you. bill: on the topic of money, if congress fails to act drastic military cuts and tax hikes will go into effect at the end of this year. some top republican lawmakers are asking, what about the president? where has he been in all this. send rand paul is live on tha

senator rand paul is live on the hill in a moment. heather: nasa waiting to let their curiosity run wild overt surface of the red phrapette. the next mars-rover curiosity, the update on search for life in another world, bill. [ feedback ] attention, well, everyone. you can now try snapshot from progressive free for 30 days. just plug this into your car, and your good drivin 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.

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>> he needs to act as the commander-in-chief and prevent the cuts, which in the words of the secretary of defense would devastate our national security. unfortunately the president has chosen not to do this. bill: kentucky rand paul has thoughts on this and is with me from the hill. senator, how are you? >> good morning, bill. bill: what do you think is the practical affect if these cuts happen come december 31st, january 1? >> well, i'm one of the few republicans who actually believes that we do have to look at military spending. we've doubled military spending over the last ten years and we need to bring the top line number down. the military sequester is pretty significant in year one and million stair respending begins to grow after year one. if we could eliminate the military sequester in year one and replace it with real cuts, not ten-year cuts, real cuts now i would be in agreement with that. we need to audit the pentagon. the pentagon says they are too

big to be aeutded and i think that is an insult to the taxpayers. bill: you're known as someone who is a little tight on the budget. you disagree with senator mccain a little bit on the military issue i take it? >> yeah i think we will find efficiencies in military spending if we reduce the top-line number. we have to keep in perspective that we doubled military spending over the last ten years. i think we can have a strong defense and spend less, and it's ultimately the compromise, if republicans are willing to do that, democrats have to be willing to cut domestic spending. both spending needs to come down. we have a trillion dollar deficit. if we don't start cutting everywhere, across the board everywhere we are never going to get there by saying, oh, military spending is sacred and we're not going to touch it. we have to look at the military spending. bill: senator mccain's big point is that the president has been missing in action. i don't know if you can get it done without his participation. what is your view on all that? >> i've been calling the president. i don't get any phone calls back i. would like to talk with the

president about the things we can agree to. when i met with him before i told him we need to fix the entitlements. i'm still willing to do it even though it's an election year i will sit down with the president. i've called him but i haven't got even an answer. i also will sit down with the president and there are certain taxes that many democrats agree the corporate tax should go down so we can compete with other countries. why wait until after the election? the economy might perk up and it might be good for the president to come to us and make a deal but he needs to call me back. so if you see the president tell him to give me a call. bill: i've got you, check your voice mail. >> all right. bill: it appears, though, the schedule between post-election and the first of the year will keep you guys working on thanksgiving, and possibly christmas eve and even beyond that, because that now seems to be a six-week timeframe we are going to have to get all this done. >> if the deadlines would help us do the right thing i'd be all for it. unfortunately my short

experience is when we meet deadlines we usually do the wrong thing, we kick the can down the road and raise spending. we have to make tough decisions now and i'd just as soon make them before the election. i think there are things we could agree on with the president. you have to fix social security, it's out of money. you have to fix medicare, it's out of money. and we can't heap new programs on top of programs out of money. that's my main complaint about obamacare. how do you add that on when medicare is already 35 to $40 trillion short. bill: you may disagree with senator mccain on how you get there. >> yeah. bill: but you do agree with him on the charge of m. i i. a., missing in action. >> i do agree with senator mccain that the priority is we are supposed to provide for the national defense, the constitution calls for in a. if it is a choice of eliminating an unconstitutional program in order to preserve the national defense i'm all for that. i'll willing to listen to the

ideas that there is waste in military spending also and we need to audit the pentagon and need to look at ways -- if you bring the top line number down it will force people to audit and figure out where money is being wasted. bill: thank you, senator, good to have you back. rand paul out of kentucky with us today from the hill. >> thank you. heather: meantime also on the hill democrats will soon have a historic new plank in their platte norm supporting same-sex marriage, the move unanimously approved. it is the first time that the party as a whole has formally expressed support. now same-sex marriage is bound to remain a prominent i shal issue in this campaign. john roberts is live in our atlanta bureau. where do the candidates stand and how is this going to play out. >> this could play out in a couple of ways. for president obama who back in may voiced his support for same-sex marriage he has energized the gay and lesbian community and hollywood raising

millions of dollars for his campaign. half an hour from now a could he livings black pastors is going to come out and say do not vote for the president because of his support for same-sex marriage. reverend owns is leading that group. he says we will see that the black community is informed that the president is taking them for granted while pandering to the gay community. they believe his support for same-sex marriage could hurt the president in key-swing states. >> key democratic constituencies do not support same-sex marriage and i think you'll see a real lack of support from president obama from them and folks in the middle, independents who generally believe the people should be able to decide the future of marriage. >> reporter: don't forget in north carolina very important swing state where it recently went to a vote, 61% of people, heather voted in favor of a constitutional amendment banning same-sex marriage and civil unions. heather: very interesting and their convention headed there. what about governor romney? what is his position?

>> reporter: governor romney is firmly in opposition to both same-sex marriage and civil unions, though as governor of massachusetts he considered the idea of civil unions from the state courts ordered the state to allow same-sex marriage. but at least one conservative has suggested that governor romney maybe out of step with where the country is headed. a conservative was a fierce proponent of prop 8, california's ban against same-sex marriage. he recently came out in june in the new york times saying how my view on gay marriage changed. he's now in support of it saying as a marriage advocate he can do more to strengthen the tradition of marriage by voting same-sex marriage rather than fighting against it. here is what he told us. >> so much of the debate in the public mind has come down to the question of should we support and recognize the equal dignity of homosexual love, and to me the answer to that question is yes. >> reporter: the national organization for marriage wants to make this a major issue in

the campaign with the dnc coming out in favor of it and the black pastors opposing it, they may just have had help in doing that. bill: the republican national convention gets underway in a month's time. here is a time lapse video of all the work put into preparation so far. that is the field in tampa, florida. the video captures 300 workers modified the stadium where the sent is held. they ripped up the floor, added more seats and rigged the slights that hold all the sound kwaeuplt. thi equipment. this is an operation. it's the 27th of august. fox news will be there, full coverage of the convention live in tampa. we'll start the 27th of august. heather: are you headed out there to tampa. bill: "america's newsroom" will be going live on sunday, then we'll kick in it monday morning, we'll have a great couple of weeks there. first calm ta then charlotte. heathertampa, then charlotte.

heather: the murder trial for drew petersen just getting underway. judge jeanine next on what we can expect. bill: an unexpected landing for a hot air balloon. wait until you hear where it came down and why the pilot said, oh, it was all according to plan. >> woke up this morning, heard the noise and we looked out the window and i literally could have reached out the window upstairs and touched them. [ male announcer ] don't miss red lobster's four course seafood feast choose your soup salad entrée pls dessert! all just $14.99. come into red lobster and sea food differentl visit redlobster.com now for an exclusive $10 coupon. good through august 5th with tums freshers! concentrated relief that goes to work in seconds and freshens breath. ♪ tum...tum...tum...tum... tums! ♪ [ male announcer ] tums freshers. fast relief, fresh breath,

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bill: a hot air balloon that went off course by some measure, landing smack-dab in the middle of a neighborhood in new york, hudson valley this was. this is 7:00 this the morning, folks. and one woman heard she said she heard the flames of the balloon, the good the gas going through the balloon. the pilot said he land thred o landed there on purpose.

>> i thought it was going to land in the neighbor's house. it started to go back up. it came down two houses down in their yard. they did good, though, they made a goodlanding. bill: seems like it was perfect, actually. luckily the pilot did not snag any power lines or trees on the way down. heather: what if you saw that gliding past your window? bill: it would make my day. look at that. heather: the drew petersen saga moving to the courtroom today. the murder case against the excop who seemed to keep losing his wives financially going to trial. petersen charged with the murder of his third wife, kathleen savio. investigators first ruled her death an accidental drowning in an empty bathtub with her air soaked in blood. petersen's attorney claims he is innocent. >> how can you aeu cues somebody anaccuse somebody, told them in jail pretrial, not just mr. petersen, anybody in jail when you can't have the evidence that was necessary, where there

is an actor, perpetrator and victim in the same place at the same time. it boggles my mind. heather: judge jeanine pirro, former district attorney and now host of justice with jeanine. how are you doing this morning? >> i'm great, heather. i'm standing right in front of the courthouse, and i just came out of the courtroom where the defense had asked the judge to make certain rulings before the jury was brought in. and what we know for sure now is that no statement from kathleen savio, the victim in this murder case, will be brought before the jury if it's only relating her fears. it's only if she says, drew said x, y or z that is going to be allowed in. the prosecution will be allowed to refer to the crime scene as a staged crime scene. and so now as i speak to you the jury is coming in, the judge will instruct them on the instructions, and the prosecution will begin opening statements. the real issue in this case, of course, is the physical evidence

or lack of physical evidence if you believe the defense. it is a circumstantial case. the issue of course, kathleen is dead, but was she a victim of an accident or the victim of a homicide? that is the issue for this jury to determine. heather: and you mentioned the jurors coming in. what do we know about the jurors, judge? >> well, what we do know is that several of them watch crime-type movies. they read crime novels. of course in this csi generation that we have people are more in tune with a lot of these kinds of shows. one of them is as young as 20. we have seven men, five women, and of course this is a case that will be decided based on common-sense, since there is no confession, there is no eyewitness. this jury will have to bring together all of the information that they hear. they will have to believe beyond a reasonable doubt that she was the victim of a homicide, and murder staged at an accident in order for them to return a

verdict of guilty. but here we are eight years after kathleen savio's death and we are finally getting to the point where a jury will decide and kathleen savio and her family will have their day in court. heather: lack of evidence when it deals specifically with kathleen savio, and also a lack of a fourth wife who disappeared. how are they going to deal with that, stacey peter on? >> it's a great question, heather. it's like the 800-pound gorilla in the room. everybody knows that stacy peterson is gone. and the reference that is going to be used is that she is unavailable. there was a hearing where it was decided that certain statements she made regarding what drew told her might be admissible depending upon what the judge in this case decides. so there was a lot of back and forth this morning between the lawyers as to what the prosecution can say, because a lot of the evidence admissibility has yet to be decided. but make no mistake, there is

going to be a real battle in that courtroom. you've got a very energized defense, you've got a very experienced prosecution, and the judge is someone who has been a prosecutor, a defense attorney, and a judge, a very experienced judge. so it should be a very interesting trial. heather: yes, and we are very interested in what our judge has to say on it. thank you so much for joining us, and we will tune in as you continue to cover this. "justice with judge jeanine" every saturday at 9:00pm eastern time only on the fox news channel. bill: in the meantime jenna lee is coming up in a couple of minutes. "happening now" rolls our way in 12 short minutes. what is going on, jenna lee. jenna: new developments in two growing scandals. new reporting on who is to blame for the fast and furious gun walking sting. william la jeunesse has the names. we will go in depth on what else we could hear this week and what it means potentially politically. different thoughts on that. a congressman will join us about the gsa scandals you've heard so much about, the wild taxpayer

paid-for parties, right we fit the bill for that. apparently they are just the tip of the ic iceberg. 77 more incidents are out there, we'll break them down for you and tell you how much you paid for them. bill: jenna thank you. see you in a couple of minutes. this was supposed to be a routine traffic stop. and then the bullets started flying. what happened to the officer who was behind this camera? heather: you have to stay tuned to find out. and then this. we are going to take you to mars. this is being called nasa's risk risky riskiest mission yet. are you receiving a payout from a legal settlement

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have you to see this. what was supposed to be a routine traffic stop takes a dangerous turn when the officers dash cam caught it all. watch. [sirens blaring] heather: filling in the blanks for, police in indiana say the officer, officer matthew fox was pulling the guy over when the driver jumped out, started shooting. officer fox was hit three times, and then the suspect led police on a chase that ended in a shootout. the suspect was killed. officer fox was wearing a bullet-proof vest and police say that that may have saved his life. he was last listed in good condition after surgery at a local hospital. bill: lucky for him. this is nasa's most ambitious and risky mars mission yet, the mobile rover named curiosity is

set to land on the red planet late sunday night. the landing is so tricky it's been described as seven minutes of terror. it goes from 13 miles an hour to a complete stop, not easy. corey powell, editor and chief of discover magazine with me in the studio. good morning to you. >> good morning. bill: an epic journey. >> good times. bill: is it ever epic. nasa's most ambitious and expensive mars mission yet. why ambitious? sph we've never built anything this big or complicated and sent it to another planet. it's a chemist, a geologist and explorer all rolled into one in robotic form. and sending a signal between earth and mars takes about 14 minutes each way. this thing has to think for hit self, it has to be able to drive by itself, explore by itself, pick its own targets. it's talking to the earth, but if you're about to go off a cliff or run into a rock and you have to wait 28 minutes round

trip for somebody to tell you not to do it forget it. this thing has to be on its own. bill: the whole process is to get the parachute out, to crack the atmosphere, land safely and softly on the planet without exploding. there is a new twist in this mission because we've seen that technique used before to other degrees. they want to lower the rover to the bottom of a crater using cables. >> it sounds -- bill: how is that going to work? >> it sounds crazy. mars is a very thin atmosphere, it's just enough air to make landing difficult but not enough air to really slow you down so you can just use a parachute. first there is a heat shield, you blast into the atmosphere. then it deploys a pai parachute that gets you close to the ground. if it just landed with rockets it could kick up a cloud of dust that could damage the spacecraft. it gets close to the ground, like tom cruise in the first mission impossible it drops down on cables cables and the rocket that was lowering it flies off and crashes. right after it lowers the rover

to the ground. bill: incredible. this is expensive, $2.5 billion. in your view is this a smart mission? >> i'll tell you, it's a substantial price tag. the $2.5 billion price tag ace little bit misleading that is over the entire duration of the mission, over ten years, which is not normally how we think about things. bill: is there a payoff from this? what are we going to get from curiosity. >> what i was saying before, there are two ways to look at this. one is, just as an engineering experiment that almost any kind of exploring that you want to do in space, whether it's mars, whether it's some place else, you need all these kinds of technologies, and these are technologies that have payoff back on earth. so autonomous navigation 3 you crash radar in cars. back to the argument, government should do things that private

industry cannot do. you know, i totally buy the idea -- don't put money into, you know, into solar power where industry is already doing it. believe me industry is not doing any of these things. bill: best of luck to curiosity. we'll see how it does. heather: it's cool, right, it's cool. you've seen the pictures federal pictures from the gsa whooping it up at wild parties and trips on the taxpayers' dime. coming it up, congressman john mike a where that barely krafp scratches the surface of the scandal, up in the next hour. including the all-new esh. ♪ while many automakers are just beginning to dabble with the idea of hybrid technology... ♪ ...it's already ingrained in our dna. during the golden opportunity sales event, get great values on some of our newest models.

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catch you on wednesday. >> bye. jenna: we start off with this fox news alert. brand new developments in the "fast and furious" investigation. fox news has the report. who's to blame for this botched gun-walking operation? how high does it go up? these are some big questions and we have some new evidence just uncovered. we'll be back with that story just a moment from now. rick: right now, brand new stories and breaking news. jenna: we have new details on the spending scandal at the gsa. that extravagant los angeles conference may just be the tip of the iceberg. one congressman behind the investigation joins us live on that. olympic records smash in seconds. 16-year-old chinese swimmer turning heads and raising questions. we'll tell you why. beachgoers right here at home look on in horror. a big fin in the water, a swimmer in the hospital, the latest on a frightening shark attack off the coast of the united states. it is all new, it's all live. it's "happening now."

jenna: but first our top story. some new findings in the "fast and furious" investigation. we're glad you're with us on this tuesday. i'm jenna lee. rick: i'm rick folbaum in for jon scott. singling out five members of the bureau of alcohol, tobacco and firearms to blame for the botched gun-walking operation. as fox news uncovers explosive information that the atf initially tried to hide crucial information from the mexican government, specifically about two fast and furious firearms found where the brother of a mexican state attorney general was killed. weapons from the botched gun-walking sting also ended up at other crime scenes including the deadly shooting of a u.s. border agent. william la jeunesse tracking all the breaking developments for us, doing some great reporting, joining us live from los angeles. william, give us the highlights of this. >> reporter: report well, rick, the report