down to the wire. the differences have narrowed, but there's still no budget deal. and the deadline for a government shutdown is midnight tonight. >> i expect an answer in the tonight. >> i expect an answer in the morning. captioning funded by cbs good morning, everybody. thanks for joining us, i'm betty nguyen. budget negotiations continued through the night and into this morning in washington, but there is still no deal. the deadline is midnight tonight. president obama met with congressional leaders twice yesterday, following last night's meeting mr. obama said differences have narrowed, but key issues remain. >> they're difficult issues. they're important to both sides.

and so i'm not yet prepared to express wild optimism. but i think we are further along today than we were yesterday. >> joel brown is in washington. good morning, joel. what's the latest as time runs out? >> yeah, betty. you know, this bargaining on the budget has been a nonstop back and forth between the capitol and the white house. but still, the first government shutdown in 15 years is now closer than ever. president obama says he needs an answer this morning from congressional leaders working to avoid a government shutdown at midnight. >> my hope is, is that i'll be able to announce to the american people sometime relatively early in the day that a shutdown has been averted. >> reporter: it was another all-nighter for congressional aides, still trying to reach a compromise on federal funding for the final six months of the fiscal year. the president says his fourth meeting with house speaker john boehner and senate majority leader harry reid last night

yielded progress, but still no deal. >> we haven't settled issues in 40 years. we're not going to settle them in a few hours. >> resolve this issue now and make certain that we resolve it in a way that no member of our armed services or their families is harmed by the decisions that we make. >> at least protect our military, who are serving in afghanistan and iraq. and their families who are back home. >> all those in favor say aye. >> reporter: yesterday, house republicans passed a bill to keep the government running for another week. but it's not likely to make it to a senate vote. it includes $12 billion in spending cuts that democrats oppose. the extent of spending cuts in the budget are at the heart of the impact. the president canceled today's planned trip to indianapolis. he's staying in washington in hopes of breaking the stalemate. congress failed to pass legislation that would suspend its own pay if there's a shutdown, and you can imagine many are balking at that.

now a handful of lawmakers are announcing if the government does shut down they'll return their paychecks to the treasury or donate the money to charity. betty? >> joel, we're talking about 0.2 of 1% of the federal budget? what are the sticking points? >> democrats say republicans are holding up the deal because of differences on regulation to abortion and environmental protection. republicans say that the issues are much bigger than that, though. but we still are not clear whether they found some common ground between the $33 billion in cuts that democrats have agreed to, and the $40 billion that republicans are demanding. >> well, they're running out of time. we do know that. joel brown joining us live in washington. thank you. as joel reported, it is not just money that is holding up the deal, republicans want to cut off federal funds for planned parenthood and reduce the power of the environmental protection agency. correspondent nancy cordes asked senate majority leader harry reid about that. >> reporter: mr. leader, you say that this all comes down to clean air and abortion while the speaker says, no, it's all about

spending cuts. how can the two of you have such a different idea of what's going on in that room? aren't you in there together? >> the fact is there are two things holding this up. one dealing with women's health. and one dealing with another rider dealing with the environmental protection agency. >> so are you saying he's lying? >> he can stretch things all he wants, but that, in fact, is the truth. >> this morning it is reported that republicans may be willing to soften their position on funding for planned parenthood. government agencies have been told to prepare for a shutdown. if it happens, social security recipients would still get their monthly benefits but members of the military would not receive their full paychecks. about 800,000 federal workers would be furloughed without pay. national parks and museums would close. and the irs would stop processing paper tax returns. if there is a shutdown, no city would be hit harder than washington, d.c. services like trash collection

and street cleaning would be suspended, and libraries and other local agencies would close. of course, many federal employees would not be paid so local businesses would take a hit. >> huge impact on my business. some of my locations, i strictly serve federal workers, and, you know, i don't know how i would be able to stay alive. >> it's been going on for a year. and the fact that there's no compromise by now is kind of ridiculous. >> you have no affect on it. it's in other people's hands. >> also at risk the annual cherry blossom festival this weekend. the two-week event normally draws a million visitors to d.c. and pumps millions of dollars into the economy. defense secretary robert gates is in day two of what is expected to be his last official visit to iraq before stepping down. gates met with the iraqi president yesterday, and is in talks with regional leaders today. speaking to u.s. troops yesterday, gates discussed gays in the military, saying the repeal of "don't ask, don't tell" will have little impact. a possible friendly fire

incident in libya has raised tensions between anti-gadhafi rebels and nato. at least five rebels were killed yesterday near the strategic oil port of brega in what a rebel commander described as a likely nato mistake. nato did not acknowledge responsibility, but described the situation as unclear and fluid. the american general who was in charge of the libyan mission before nato took over says u.s. ground troops may be needed to finish the job. but general carter hamm told congress putting american boots on the ground in libya would not be the, quote, ideal circumstance. funerals will be held today for some of the victims of yesterday's massacre at an elementary school in brazil. security video shows students fleeing from a gunman who stormed the school in rio de janeiro. he shot and killed at least 12 students. some, as they pled for their lives. and wounded 11 others. in the end, the 23-year-old

gunman took his own life. now to japan. it was shaken yesterday by what would be considered a major earthquake. but the magnitude 7.1 tremor that killed two people was just an echo of last month's monster quake. charlie d'agata reports. >> reporter: workers brace for balance as the latest giant aftershock rattles japan. hundreds have hit since the enormous quake last month but this was the most intense so far. the aftershock hit deep underwater, about 30 miles below the surface, off the coast of miyagi prefecture. the shaking ripped holes in rooftops, knocked out power, and threw items off store shelves. buildings as far away as tokyo shook for a full minute. the damaged fukushima nuclear plant evacuated its workers but reported no new damage or injuries. however, power lines were knocked out at the onagawa plant farther north. officials said they're relying on just one power line to keep up with cooling operations.

>> the one remaining power system enough to continue the cooling at onagawa? >> yes. >> reporter: japanese authorities issued a tsunami warning and ordered communities along the coast to evacuate and move to higher ground. 90 minutes later the warning was lifted. but less than a month after the mega quake and tsunami killed an estimated 25,000 people, this latest temblor has rattled japan all over again. charlie d'agata, cbs news. as we have seen in those unforgettable pictures, the tsunami washed entire towns out to sea. that created a floating mass of debris that researchers believe is headed across the pacific toward the u.s. it's likely to reach hawaii within a year. and begin washing up in the pacific northwest in three years. five years from now, it might return and hit hawaii again. just ahead on the "morning news," toyota back in business in japan. plus, phillip garrido's surprising plea in the jaycee dugard kidnapping case.

you're watching the "cbs morning news." here's to my pants not leaving marks on my waist. achieve small wins with a healthy lifestyle and dannon light & fit. the light fresh yogurt with 80 calories vs. 100 in the other leading brand. here's to 80 calories tasting crazy good. live light and fit.

the man charged in the kidnapping of jaycee dugard had a surprise in court yesterday in san francisco. he wound up pleading not guilty. phillip garrido had been expected to plead guilty to all charges related to kidnapping dugard and holding her prisoner for 18 years. garrido's lawyer raised questions about the makeup of the grand jury that indicted him, so the judge entered a not guilty plea for him. the los angeles suburb of bell, california, has a new city council. the new members were sworn in yesterday. they replace oisted officials who gave themselves huge salaries. the ex-city manager, robert rizzo, and seven other former officials, are waiting trial on corruption charges. on the "cbs moneywatch," stocks in asia are mostly higher this morning. ashley morrison is here in new york with the latest on that. good morning.

>> and good morning to you, betty. well asian markets bounced back today. tokyo's nikkei gained 1.5% while hong kong's hang seng also finished higher. and oil has now jumped above $111 a barrel. today wall street gets the very latest on trade. on thursday, stocks finished lower despite the good news on the labor front. the dow lost 17 points, while the nasdaq gave back 3. toyota said this morning it will resume limited production at all of its plants in japan. the world's number one automaker was forced to halt production after last month's earthquake and tsunami, which caused parts shortages. toyota says its 18 plants in japan will operate at half of normal capacity for now. finding out how much you have in social security benefits will soon mean a trip online. the government plans to stop sending out social security statements. you will get one more in the mail. but probably none after that. the cost-cutting move is expected to save around $70 million every year. critics worry, though, that the people that need the statements

the most will have the least access to the internet. retail sales were surprisingly strong last month. analysts were expecting the bad weather and high gas prices to put a dent in retailers' bottom lines. instead, most major outlets, including macy's and nordstrom posted better than expected sales. but not at the mall. new numbers show mall vacancies hit their highest level in more than a decade last quarter, as more shoppers did their buying online. and if you're in the market for a new computer, why not kick it old school? the commodore 64 is back. the hottest-selling computer of the 1980s still has the boxy look with its updated, latest technology. the company says they've already sold out their first batch. it even has the same price tag as it did in 1982, $595. and betty, i think i like old school. >> yeah, i wasn't lucky enough back then to have a computer. but -- >> it's classic. >> yeah, exactly. i don't know if i want to pay

about 600 bucks for it. but that's just me. all right, ashley, joining us live in new york, thank you. the jury in the trial of baseball star barry bonds begins deliberating today. lawyers and federal prosecutors made their closing arguments thursday. and the case was handed over to the jury. bonds is charged with obstruction of justice and lying to a grand jury about taking steroids. straight ahead, your friday morning weather, and in sports, the bulls take on the celtics in a possible playoff preview. [ woman ] i had this deep, radiating pain everywhere...

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ask your doctor about lyrica today. here's a look at the weather in some cities around the country. new york, mostly cloudy, 54. miami, sunny, 87. chicago, rain, 51. dallas, windy, 89. and l.a., thunderstorms. time now for a check of the national forecast. the latest satellite picture shows mostly clear skies in the southern plains and southeast. with storms not too far away in the ohio river valley. later today, a storm system will move through the mid-atlantic states. the west coast will stay cooler than normal. and light to heavy snow is expected in the rockies. in sports, chicago is only one victory away from clinching home court advantage in the nba playoffs. derrick rose had 30 points as the bulls hammered the celtics. s 97-81 victory moved chicago four games ahead of boston and miami.

in baseball, boston is now 0-6 for the season. in cleveland, the indians pulled off a suicide squeeze bunt in the eighth inning to break a scoreless tie. the game ended as j.d. drew of the red sox bounced the ball off the pitcher to third base. pinch runner darnell mcdonald was caught off second base for the last out. indians win 1-0. in miami, washington's adam la roche blasted a two-run homer into the right field seats in the 11th inning. and the nationals held on for a 5-3 win over the marlins. the second round of the masters kicks off today with a tie at the top. rory mcilroy of northern ireland shot a 65 to open the tournament yesterday. he missed five birdie chances but had no bogeys. and spain's alvaro quiros caught up to him on the 18th hole. phil mickelson is five shots off the pace and tiger woods is six back. you can see highlights of today's masters action on cbs sports tonight before "the late show."

tomorrow and sunday, tune in to this cbs station for full coverage of the final two rounds at augusta. when we return, another look at this morning's top stories. the looming government shutdown. and the hardships american military families might face. this was me, best ribs in nelson county, but i wasn't winning any ribbons managing my diabetes. it was so complicated. there was a lot of information out there. but it was frustrating trying to get the answers i needed. then my company partnered with unitedhealthcare. they provided onsite screenings, healthy cooking tips. that's a recipe i'm keeping. ( announcer ) turning complex data into easy tools. we're 78,000 people looking out for 70 million americans. that's health in numbers. unitedhealthcare. imagine a day free of worry, a day when we can eat what we want, drink what we want,

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on the "cbs morning news," here's a look at today's weather. warm weather is sinking deep into the southern plains and southeast. cold air is stuck over the rockies where heavy, wet snow will pile up through the weekend. and thunderstorms are brewing in the mid-atlantic states. here's another look at this morning's top story. congressional budget negotiators worked through the night, but there is still no deal to avert a government shutdown at midnight tonight.

if the shutdown happens, 800,000 federal workers would be furloughed without pay. president obama met with congressional leaders twice yesterday, and the president says he expects an answer from them this morning. if the government is forced to shut down, u.s. military personnel would feel the financial sting. peggy fox of our washington station wusa reports. >> reporter: the everyday rhythm of life in quantico and other military bases around the world may be filled with a creeping anxiety. marines here understand they'll eventually be paid if there's a government shutdown. but they won't see a paycheck until the government is back up and running. >> i've been setting aside a substantial amount of money each month so it's really not going to be a problem. >> all depends on how well-prepared you are. that makes a difference. >> reporter: but families have more expenses, homes, spouses and children. many young families like lance corporal adrian sylvia live paycheck to paycheck. >> my wife doesn't work and a

baby at home. so it's a little hard. >> reporter: live paycheck to paycheck? >> right. base everything off that one check to get what we need. and have nothing left. >> national military family association -- >> reporter: the national military family association says the government has been slow in giving details about what will be closed. they have learned commissaries around the world will close if there's a shutdown. >> think about that family in japan who's depending on that commissary for supplies of fresh water and other key grocery supplies. they're not going to have that option. >> reporter: executive director joyce razor says there aren't yet specifics on medical treatment, what's essential, and what's not. >> there's medical facilities at walter reed, bethesda, and all those installations around the world, could be open just for emergency care. and so where does that young mom with the baby with the ear infection go? >> reporter: she says it's difficult for military personnel to focus on their task if they're worried about their families at home. marines at quantico would rather

not be thinking about how they're going to pay their bills or put food on the table. >> that was peggy fox reporting. i'm betty nguyen. this is the "cbs morning news." here's to my pants not leaving marks on my waist. achieve small wins with a healthy lifestyle and dannon light & fit. the light fresh yogurt with 80 calories vs. 100 in the other leading brand. here's to 80 calories tasting crazy good. live light and fit.

in oklahoma city, helicopters and ground crews are battling wind-driven wildfires threatening dozens of homes. the flames have blackened at least 1,500 acres and destroyed at least four homes. one firefighter was injured. schools across the u.s. are being forced to make painful budget cuts. many, after-school programs are going away, including sports. but in ohio, some parents have found an alternative. seth doane reports. >> reporter: it may be a brutal sport, but it's called a sweet science. sure it's a hook and a jab to perfect but these teens in toledo are conditioning more than just their bodies. >> they teach you how to be respectful, not disrespectful. >> reporter: boxing is about

discipline and agility and here something far more practical, too. >> i started a gym because there's just nothing for the kids to do. with the budget cuts and they're cutting sports out of schools. >> reporter: last year when toledo public schools had to eliminate $39 million from its budget, track, wrestling and golf were cut. as were all middle school and freshman athletics. 16-year-old alla wright who points out the scars of a rough childhood. this is from a bullet? >> yes. >> reporter: says his school doesn't have sports. so kids turn to the streets. >> that was the worst thing they could do because that's one of the reason most people still go to school. for sports. >> we were talking with some students who have gotten into boxing to find something to do. but aren't there many more students who are just falling through the cracks? >> well, i don't want to say that they're falling through the cracks. i think there's a need there. >> reporter: the school district is trying to reinstate some sports next year, but there are more budget cuts to come.

so seeing a need, jones and his partners turned this old space above a hair salon into soul city boxing. it's $10 a week to join. >> i'm trying to create alternative and i'm trying to save a life or two. >> reporter: save a life through boxing? >> yes, yes. because boxing has a structure. >> reporter: structure that brandon lost when his school wrestling program was cut. is part of this killing time? >> oh, yes, yes. definitely keeping them out of trouble. >> reporter: many of these kids now training for the ring are refugees from other sports. >> i'm not turning no kids away. >> reporter: down the street at another gym called bang 'em or hang 'em, chris lawrence says he's not just a trainer, but a father figure. >> they don't got nobody trying to lead them in the right direction. but they go on the wrong path. >> reporter: 14-year-old datwan taylor says boxing helps him with academics. >> keep me out of trouble. keep me focused on my work. >> reporter: in this community left to fend for itself, the ring has become an unlikely refuge. seth doane, cbs news, toledo, ohio. coming up a little bit later on "the early show," the latest

on a possible government shutdown. plus, a frightening new report on hospital errors, and how to stay safe if you are hospitalized. and it could be the biggest wedding in history. 2 billion people may tune in to see prince william and kate middleton tie the royal knot. that's the "cbs morning news" for this friday. thanks for watching, everyone. i'm betty nguyen. have a great weekend. ,,,,,,,,