good morning to our viewers in the west. it is monday, may 19, 2014. welcome to "cbs this morning." taking on america's cyber enemies, unprecedented steps this morning against hackers china.d of stealing secrets for >> a new threat from the mers virus in the united states. the latest case may have come from a simple handshake. >> and a crop killing disease threatening to make the cost of coffee grande. >> furst a look at our "eye opener." >> the u.s. target siebecyber s.

>> they're accused of hacking into u.s. company to steal trade secrets. >> federal officials say they've identified the first person-to-person spread of the mers virus in this country. there's no vaccine or cure and only the symptoms can be treated. >> the mega merger. at&t agreed to buy directv for $48.5 billion. >> a concussion is by definition a traumatic brain injury. >> republicans once again going after hillary clinton and concerns about her health. >> i thought his remarks were outrageous. >> given the month she just had, i doubt whether she will run for president in 2016. >> michael jackson appearing to be bigger and better than ever, a hologram danced and moved across the stage. >> and unprecedented floods in the balkans.

>> and a coffee fungus has caused a billion dollars in damage. >> and for beach-goers, a big surprise. >> now we welcome -- guys, i'm the worst reader. >> and all that matters. >> california chrome's quest for racing mortality may be derailed by all things a nasal strip. >> it helps the horse breathe easier. >> and i'm calling three of these graduating seniors to come catch a pass. seriously, there is no pressure here at all. easy pass. . this morning's eye opener is presented by toyota. let's go places. welcome to "cbs this

morning." good morning, norah. >> good morning, charlie. >> as you wake up in the west, the justice department is revealing an historic set of spying charges. for the first time hackers working for a foreign government are accused of cyber espionage. >> those suspects will be indicted for stealing u.s. corporate and government secrets. bob orr in washington has new information. good morning. >> reporter: good morning the u.s. government is upping the stakes in an ongoing cyber war with foreign electronic enemies. attorney general eric holder is announcing the first ever economic espionage charges against hackers working for a foreign government. federal prosecutors were told of procured indictments charging individuals working directly for the chinese government. in an ongoing effort to hack u.s. servers and computer networks. sources say the operations are based in part inside chinese military facilities. indictments being unsealed detail a sophisticated cyber

spying campaign. intelligence officials have estimated for many years that american companies lose about $250 billion a year in intellectual property, much of that lost directly to the chinese. their hackers have infiltrated u.s. government agencies, like the federal reserve and media companies including the "new york times" and "washington post" to monitor u.s. coverage of chinese politics. it's not at all clear if federal prosecutors will ever be able to actually succeed with a case against foreign suspects and that makes sense. the accused obviously are working for a government itself and it's unlikely that china would ever cooperate in a prosecution. if any of the suspects would travel to the u.s. or friend live nations, they could be grabbed. but the charges even without prosecution send a strong message that the u.s. has had enough of state-sponsored spying. it's no longer going to be business as usual. they're ready to name names. >> all right, bob, thank you. >> and there are new worries this morning over a respiratory

illness blamed for nearly 200 deaths worldwide. for the first time mers has spread from one person to another right here in the united stat states. >> the cdc said a man got the virus from a worker who brought it from the middle east. it was transferred by a handshake. a handshake? >> yes, it's very concerning. health care workers who have come into contact with a person with mers or someone who lives at home with a sick patient. in this case we know the two patients met briefly twice. their longest meeting was just 40 minutes, and each time they shook hands. so that's not really considered close contact. so what the cdc is going to have to look for is if the virus is simply more contagious than we thought it was before or if it's changed in some way. >> my understanding, mers, what we thought about it, is that

it's not easily spread, that there has to be prolonged or close contact. this suggests something else. >> it really does. again, 40 minutes together and a handshake is not very, very close contact. >> and he was asymptomatic, right? >> right. up to 20% of mers cases can be asymptomatic or the symptoms are so mild that people don't notice them. on one hand it's a good thing that the virus can be filed. on the other hand, it could spread quickly without people realizing they're spreading it. >> what's the risk of fatality? >> worldwide about 30% of documented cases have been fatal. so it is a very serious illness. the two cases here, though, both patients were very sick, they got supportive care, there is no ca cure, vaccine, but they got supportive care in the hospital, fluids and they turned the

corner. it might be more treatable than we thought before. >> should americans be worried at all? >> it's not something to worry about day to day but it's important that we stay vigilant and the cdc and world health organization are all over it. >> president obama faces questions about his response to reported problems at veteran hospitals. v.a. treatment delays may be connected to more than 100 additional deaths. major garrett is at the white house where he says the pred , president is, quote, madder than hell at the news. >> reporter: v.a. has settled millions in claims. in addition reports of fraud within the vet health care system generally are increasing. the numbers are big and likely to grow. according to "the dayton daily

news", the v.a. has paid $36.4 million in court ordered or voluntary settlements for 167 complaints stemming from delayed medical care. investigative reporter josh swigert. >> we found over 1,100 cases of death that were paid out bit v.a., including 167, in which delay in treatment was one of the reasons the payout was made. >> reporter: there are 1,700 veteran hospitals and clinics, they handle more than 80 million outpatient visits a year, more than 220,000 appointments a day. they are under fire for creating fake lists for waiting patients. >> the president is madder than hell and i've got the scars to prove it given the briefings i've given the president. at the saturday time we're looking at accountability, we want to continue to perform and provide our veterans the

services they've earned. >> reporter: the president last addressed the issue on april 28th. meanwhile the cases of fraud have multiplied. >> the president has been an active voice for reform over seven, eight nine years. >> reporter: veterans organizations are not satisfied. >> we need the white house, the president, to come forward. he needs to make a statement to show the employees of v.a. that this needs to change now. >> reporter: another veterans organization, iraq/afghanistan veterans of america, has created an anonymous web site where whistle blowers can report incidents of fraud. the white house said shinseki has the president's full

confidence. >> and jill abramson broke her silence moments ago. she was the commencement speaker at wake forest university. it was abramson's first public appearance since she was unexpectedly dismissed from the "new york times" on wednesday. >> reporter: good morning. good morning to our viewers in the west. abramson began speaking just a few minutes ago. her firing has become a cultural firestorm and many are wondering if she'll say anything about her departure from the "new york times." >> the only real news here today is your graduation from this great university. >> reporter: wake forest never thought twice about revoking its invitation to have jill abramson speak to nearly 2,000 graduates, even though she had just been publicly fired. >> i'm impressed that your achievements have attracted so much media attention.

>> reporter: her abrupt ouster has brought attention to female bosses and pay in the workplace. >> they bungled it, completely absolutely bungled. >> he said he dumbed abramson because she alienated people. on twitter, one of the paper's female editors said the media has a woman problem, but the women of the "new york times" aren't shrinking violets. she tweeted "they more or less run the joint." >> at times it is hard to believe that i'm the executive editor. >> reporter: abramson spoke to "cbs sunday morning" shortly after she was put in charge of the times newsroom and acknowledged the symbol of her appointment. >> it would be nice to think we would get to the point where it wasn't so remarkable when a

woman rose to the top job at an important institution. but i think, you know, we aren't there yet. >> reporter: after abramson was introduced here today, there was a long applause. and then she made a joke, saying she wasn't the only real news here today. abramson has no other events scheduled on campus today after she's finished with her commencement speech. >> tensions are growing this morning over comments about hillary clinton, the head injury he suffered nearly 18 months ago is part of the debate over a potential presidential campaign. jan crawford is in washington where the former secretary of state and her advisers are fighting back against speculation. jan, good morning. >> reporter: good morning. good morning to our viewers in the west. karl rove set off a firestorm when he suggested clinton might have brain damage from her fall in 2012. he denied using those exact

words. republicans call it fair game. on fox news on sunday, the debate over hillary clinton took a heated turn. >> you guys are going crazy. >> no, look, look -- >> you're beating her about the head and generating sympathy for her. >> be careful about your analogies. let's be clear. she is going to have to cough up these medical records. >> reporter: rove said he had no regrets about his comments. >> you would not be human and not have a serious brain injury like this was and take it into consideration if you're thinking about going and doing what she might do. >> reporter: what hillary clinton might do of course is run for president in 2016. for some republicans, that means one of the many issues on the table is her health. >> i don't think there's a graceful way to bring up age, health and fitness for a candidate that wants to be president of the united states. it's fair game for ronald reagan, it's fair game for john mccain. >> reporter: senator mccain was 72 when he ran for president in 2008. reagan was 69 years old at his inauguration. if she's elected, clinton would

also be 69 when she takes office. democrats on sunday call the attacks on clinton's health unfounded and distracting. >> i think we all know what this is. it's a cheap political shot. >> reporter: former vice president dick cheney had his first heart attack at 37 and faced questions about whether he was fit to serve and be second in line to the presidency. cheney said similar questions of clinton are fair game. >> certainly i felt responsible to be open about my health when i was vice president and a candidate, and i think that's going to be expected of anybody who runs for president or vice president. >> reporter: for clinton, it's kind of like when it rains, it pours. before these questions it was monica lewinsky and her reappearance in public. strategists say the scrutiny and attacks is all part of what she can expect if she decides to run. >> thanks. the telecom industry may be headed for major reshuffle. at&t is buying directv for $48.5

billion. that would create the second largest paid television provider with 26 million subscribers. at&t stock is down in trading. melody hobson is with us from chicago. what does at&t want with directv? >> they want their customers, plain and simple. it's 21 million people they want and they want to be able to provide them with whatever they want, wireless, satellite, broadband, on whatever device they're using, mobile, their own tell advice, a laptop, even in their car or on an airplane. they hope to be able to do that by bundling services together at a premium price of course, and also of last but not least, having the clout, because they have more customers, with the content providers to be able to get that great content. >> after comcast wanted to buy time warner, the question of antitrust came up. it's come up again with this merger. what's the likelihood of a

anti-trust stopping these mergers? >> i think at&t learned a lot when they tried to buy t-mobile and they failed. i think they're going in with more information and smarter. secondly, all of the conversation is about the fact that this provides the perfect counterweight to the comcast/time warner deal. that way, it might actually help with the issues of regulatory concerns that might be out there. >> do you think it means customers will pay more? >> i think at the end of the day this is a hard question to answer for one reason. there isn't a lot of overlap between directv and at&t. and the cable industry in general, there isn't a lot of competition because you get that geographic monopoly. but over the long term, these companies of course want to be able to bundle these services and charge a premium price s. so at the end of the day, you're going to get one bill, they'll

provide more services and it will probably be for more. >> will we see more consolidation? >> i think we'll see more consolidation. dish is still out their. their ceo hasn't suggested they wouldn't be open to being bought. so this is a moving conversation right now, a lot going on. a chess game that's big stakes. >> all right. melody hobson, good to see you. thank you so much. and fire crews are tackling the last of the wildfires burning in southern california. at least 47 homes are destroyed. the damage is estimated at $20 million. california's governor says it's only the beginning of what could be a record breaking fire season. >> overseas rivers continue to rise this morning in the wake of the worst flooding in the balkans in more than a century. torrential rain triggered more than 3,000 landslides sunday alone. land mines left over from the bosnian war have been washed away, adding to the clean-up

danger and sthey are trying to save the power plant from flooding. >> an emotional south korean president says this morning she wants to disband the coast guard after last month's ferry disaster. with tears in her eyes, she formally apologized for the botched rescue effort, saying she bears the ultimate responsibility. she said she plans to root out corruption between government regulators and shipping companies. >> this morning new developments in the ukrainian crisis. the president said vladimir putin ordered russian troops deployed near the ukrainian border to leave and return to their home bases. but so far nato said it sees no signs the troops have retreated. >> authorities are focusing on a new area in the search for malaysia airline flight 370

which vanished more than two months ago. a navy ship will map areas off the west coast of australia, including areas not explored. >> and spacex left for its third cargo run. it splashed down in the pacific ocean with more than 3,500 pounds of spirexperiments and equipment. the dragon is the only usable craft flying to the space station. >> coming up, we'll,,

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determine how a man ended up dead in the woods, near the berkeley 7:26 the time. here's what's happening around the bay area now. investigators are trying to determine how a man ended up dead in the woods near the uc berkeley campus. a hiker found the body near grizzly peak boulevard yesterday afternoon. about a year ago another person died in the same area after falling off a rock there. as the san diego county wildfires get under control governor brown is now warning california could be in for its worst fire season in recorded history. cal fire already responded to more than 1,500 fires this year, much higher rate than normal. peak staffing started the first week of april rather than mid-may as usual. the drought has a lot to do with it. ,,

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getting first reports of an accident from chp westbound 80 at powell street. motorcycle accidents, lanes blocked. heavy ride towards the bay bridge. live look at the bay bridge, traffic very slow and go this morning. metering lights are on. 80 minutes to the carken in as bridge to the maze. and that's a look at the drive. it's windy. >> winds kicking up around the bay area. gusts to 29 miles per hour already that is the big story into the afternoon. blustery winds near the coastline and clouds rolling in overhead. those temperatures are going to stay on the cool side. now in the 50s. breezy into the afternoon as well. highs in the low 50s and 60s towards the coast 70s in the valley. even an isolated chance for a scattered light shower keeping things a little unsettled through tomorrow.

some sleight of hand by a young texas ranger fan. on saturday night the team's first base coach tossed him a foul ball and he turns around and gives her a ball. that's a nice thing. but he didn't give her the game ball. see? he gives her another decoy. he's holding it in his right-hand. >> he's going have a very fine life. >> that's one interpretation. >> what you do mean buy that, charlie? >> he knows. >> he knows how to work it already. all right. welcome back to "cbs this morning." a college commencement speaker turns on some of the graduates in his own audience. why he's blasting a growing

trend on campuses this year. plus, nothing can stop the king of pop, not even death. ahead, the legal fight that nearly kept michael jackson from a hologram encore. time to look at some of this morning's headlines from around the globe. sou"south china morning post" ls at the relations between china and putin. putin visits shanghai tomorrow. putin says his ties with china are the best ever. "the wall street journal" says a giant pharmaceutical merger is still not happening. britain's astrazeneca rejected pfizer's $119 billion offer this morning. pfizer said that bid is its final off. after astrazeneca said no, the stock fill this morning in early trading. the "washington post" looks at a watershed moment. three open willing gay rus are

running for office. "usa today" says coffee lovers should prepare for a jump in prices. the worst ever coffee fungus is affecting crops. he's at a coffee shop in new york city to show us how the united states is getting voichblevoichbl involved. elaine, good morning. >> good morning. coffee rust has cost more than a billion dollars in damage. today they're set to announce a $5 million partnership with texas a&m to help eradicate the disease. on new york's upper west side, the coffee rust fungus has been cutting into the cafe's supply of high end beans. >> it's causing shortages and most particularly for me a problem, a decrease in coffee quality.

>> reporter: many latin american countries that grow premium arabi arabica coffee are being hit hard by the deadly disease. >> in its worst form it actually destroys the trees and prevents future years from having agricultural output on those farms and in the short term it crushes the actual crop in this calendar year. >> researchers estimate reduction could decrease by 40% in the coming years. the fungus comes on top of a record drought in brazil, reducing worldwide supply. so far this year the market price of coffee in the u.s. has risen 60%. >> if we don't get this disease under control, especially for specialty and hire end coffees, you could see very significant price impacts here in the united states. >> reporter: major u.s. coffee chains like starbucks say they have enough product to weather

the fungus's impact, but mom and pop stores could soon be forced to raise prices, leaving customers with a bitter taste in their mouth. >> it's been very, very difficult finding really good quality coffee. monday we're actually raising our prices for the first time in 3 1/2 years. >> reporter: here they're keeping a close eye on the situation, but so far have no plans to raise their prices. meantime the partnership between federal government and texas a&m will >> thank you. and students are causing profile speakers to cancel appearances but one may have gotten more than they bargained for. their replacement pick was. impressed. the tough words for the senior class. don, good morning. >> good morning. commencement speeches are usually inspirational, sometimes

funny and occasionally boring. that's why william bowen's address on sunday may have taken some students by surprise. across the country, notable names from various walks of life are delivering words of encouragement to the class of 2014. >> good luck to each and every one of you. >> i can't wait to watch you change the world. >> but at haverford college, graduates got an earful. >> every college graduate, no victory for anyone who believes ai think most of us do openness to any points of view and mutual respect. >> former princeton university president william bowen called out those who opposed the original speaker. they wanted him to apologize to the treatment of student protesters at the university of california berkeley in 2011 when he was chancellor. instead of apologizing, he canceled on haverford.

>> in my view they would have encouraged him to come and engaged a serious discussion. >> students and faculty are becoming increasingly creative in what they're wanting from a speaker and it's come to the point where it's so strict it's hard to imagine who will speak on the campus in the future. >> it's just a latest. former secretary of state condoleezza rice canceled her speech at rutgers other the uproar over the iran war and christine lagarde with draw after criticism over the organization's policies on developing nations. >> students and faculty have every right to protest speakers they dislike, but when the goal is to make sure the speaker doesn't speak on campus at all, that's a bad idea. >> as for haverford's commencement scolding, one called the comments offensive

called cbs news for patronizing for honoring presided over a violent crackdown against peaceful protesters. >> thank you, don. nearly five years after his death michael jackson appeared on stage last night at the billboard music awards. a virtual version was from his n newly releaeased alb "xscape."" but the show almost did not go on. >> reporter: it sounded like michael jackson. it looked like michael jackson. and it certainly moved like michael jackson. but it was a hologram performing the late pop star's song call e "slave to the rhythm." ♪ slave to the rhythm >> reporter: jackson recorded the song in 191 but never released it, so the image that wowed the crowd sunday night was entirely an illusion and not

from a past performance it's really good. i was sitting there trying to figure out, is she here? >> reporter: the song is one of eight tracks on an album newly released called "xscape." >> you can look at people lie fa really and ju like farrell and justin timberlake. there's not a performer in popular music who doesn't owe something to michael jackson. >> reporter: but the michael jackso epe eper rapper tupac chapur. in fact, a michael jackson

hologram has been performing in las vegas for nearly a year. it's the emotional climax to cirque du soleil's tribute to the latest artist but it's not allowed to be seen outside of the show. >> he left such a legacy behind so he's always going to be with us whether there's new music released or not. >> he apparently doesn't intend to relinquish his throne. for "cbs this morning," ben tracy, los angeles. >> technology's amazing but there's something jarring about it to me. i don't know. i wonder how his family felt about watching it. to answer the florida georgia line guy, no, he wasn't answer. >> what attributes to it? >> it was huge. i think he was a whole package, he really was. his dancing, singing, everything about it. you liked it? >> i thought it was spectacular. i thought it was spectacular. >> i'm struggling with it.

what did you think, charlie? >> i liked it too. >> once again, nana at the table. >> come on. you're looking for sympathy. >> no, i'm not looking for sympathy. i found it jarring. i did. >> talk about interesting. did you guys see california chrome? >> yes, i did. >> oh, my gosh. do we love that horse? >> he's now my horse. i've been to one kentucky derby and now i'm an expert. go, california chrome. >> he has a chance at triple crown but his owners may not try it. that's right. an argument over a piece of equipment is now overshadowing a great rags-to-riches stories. if you don't know the story, we'll share it with you and the controversy. that's ahead on "cbs this morning." get more memorial day at kmart. with all grills on sale. shop online and pick it up in store for free.

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that's the dollar menu and more. this morning, racing fans are waiting and hoping to see the final chapter of a

cinderella story. california chrome could run away with a triple crown next month after taking the preakness station saturday but cbs news and "60 minutes" correspondent sharyn alfonsi looks at how a controversy could derail his bid. good morning. >> good morning. if this is a sibld really la story, california chrome may not get a chance to go to the ball. it's because of the nasal strip he wears. it helps him breathe. he may have to compete at the belmont stakes without them if he competes at all. >> california chrome has won the preakness! >> california chrome dominated the first two legs of the triple crown, but these nasal strips could put his winning streak in the industry. commonly use and widely accepted it helps with breathing. but they do not allow it.

openers must request permission for their hours to wear them. on a statement on twitter the new york gaming commission said if a request to use nasal strips is made, a decision will be evaluate and determined by the stewards. >> i think it's so overplayed. it's a silly little thing. let the horse wear it. every other state that races allows them. >> reporter: if officials deny the request, the horse hay not compete in the belmont. art sherman told the new york "daily news" on sunday these people, meaning the owners, tell me if at any time the horse isn't ready to go to the races, with draw him. that would derail the colt's chances to make history. he trampled history. two working class couples share ownership. >> i turn around to him and say, can you believe it? we won the kentucky derby.

>> she said, who would have thunk them. >> for them it's not their life. it's just part of it and california chrome more like part of the family. >> i honestly believe this horse is america's horse. >> given the chance they believe the underdog can make history. >> let the chips fall where they may, but i do believe we're going to win the triple crown. >> the last horse to win the kentucky derby and the preakness was i'll have another in 2012. he wore nasal strips but when it came to the belmont new york officials wouldn't allow it. it didn't matter. the day before the race i'll have another was forced to drop out due to a leg injury but

more than one in three american children are overweight or obese. a big part of the problem may not be diet or exercise. we'll talk to a leading pediatrician behind a new study that's out today. that's ahead on "cbs this morning." we'll be right back. actually it can. neutrogena® ultra sheer. nothing outperforms it. nothing feels cleaner. its helioplex formula provides unbeatable uva uvb protection to help prevent early skin aging and skin cancer. all with the cleanest feel. you won't believe you're wearing such powerful sun protection. it's the best for your skin. ultra sheer®. and for on-the-go, new ultra-sheer face & body stick. from neutrogena®.

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you've never even heard about it. i'm peter greenberging that story ahead on "cbs this morning." when folks think about what they get from alaska, they think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america. everin a day is building up layer, upon layer, of bacteria. and to destroy those layers?

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determine how a man ended up dead near the cal- berkeley 7:56 is the time. investigators are trying to determine how a man ended up dead near the cal berkeley campus. a hiker finding the body near grizzly peak boulevard yesterday. last near another person died in the samear after falling off a rock. residents and businesses in pleasanton have been ordered to reduce water usage by 25%. customers who go over the allotment more than four times will be fined $16 a unit plus another $500. the bay to breakerings organizers are calling the safety measures a big success. runners released in groups from side streets and alamo square park completely blocked off this year. a total of 28 arrests were made but all in all a good weekend. traffic and weather coming up.

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let's go straight out to 80. busy continues continue westbound along the east shore freeway. we have an accident backing things up. you can see speeds dipping into the teens at some point. at least an hour and-a-half from the bridge to the maze as you work your way through there. lots of red, slow and go conditions. bay bridge, metering lights are on. north 880 slow and go traffic. a lot of clouds, the winds kicking up too. even got changes on the monday. it's going to be a cool breezy day. clouds will continue to rotate on. you'll see a few peaks of sunshine in between. blustery approaching the coastline into the afternoon. low pressure dropping into the bay area bringing with it the clouds, even a slight chance of a couple of sprinkles or light showers. temperatures only in the 50s and low 60s towards the coast. maybe low 70s well inland. unsettled the next couple days,

warming up toward the weekend. ,,,,,,,,

♪ good morning to our viewers in the west. it's monday, may 19th, 2014. welcome back. more real news ahead, including a doctor who says lack of sleep could be making your kids fat. but first, here's a look at today's eye opener. >> eric holder is announcing the first ever espionage charges. >> if the virus is more contagious or if it's changed in some way. >> about her departure from "the new york times." >> what's next for me? i don't know. >> what does at&t want from directv? they want their customers. 21 million people they want.

>> nothing can stop the king of pop. not even death. >> technology is amazing, but there's something charging to it. >> california chrome may not be a chance to go to the ball. >> i think it's so overplayed. silly little thing. just let the horse wear it. >> but he doesn't give her the game ball. see? he gives her a decoy. another ball. he just happens to be holding in his right hand. >> he should have a very fine life, isn't he? >> that's one interpretation. >> what do you mean by that, charlie? >> in the past hour, the justice department announced the first ever criminal charges against alleged hackers working for another country. >> the suspects are accused of stealing secrets from the u.s. government and american corporations. bob orr is in washington getting

more information. what's the case about? >> good morning. for year, state sponsored cyber spies in china have been infiltrated u.s. computer networks stealing corporate and government secrets. now, the u.s. justice department is saying enough is enough. prosecutors are bringing indictments against hackers working for a foreign government. five individuals have been charges this morning with running a sophisticated cyber espionage corporation, stealing data from u.s. steel, westinghouse and alcoa. eric holder announced the charges a short time ago. >> the indictment allegations that the officers maintained unauthorized access to victim computers to steal information from this entities that would be useful to their competitors in china including state owned enter prizes.

>> the operations go well beyond this case. intelligence officials have told us that american companies lose something like $250 billion in intellectual property every year. china's government hackers also have infiltrated the servers of u.s. government agencies incl e including the pentagon and federal reserve. it's not clear that the justice department prosecutors can really actually prosecute this new case since the foreign suspects are allegedly working for the chinese government, it's extremely unlikely that china would cooperate in the investigation, but sources say even without a case, the charges do send a strong message that the u.s. no longer intended to look the other way. the justice department is now on the record about the named names. health officials report the first transmission of mers. an illinois man got the virus when he shook hands with the man

from indiana. the illinois man never became ill. those two people and another in florida are the only known cases in the u.s. one was infected in saudi arabia in 2012. and of those, 173 have died. >> veterans affairs department admits at least 23 patients died before they could see va doctors, but a new report suggests the real number is much higher. the white house chief of staff says quote president obama is madder than hell about the scandal. the dayton daily news found at least 167 deaths with delay in treatment as a reason for paying a settle lt. new information is coming in about kcalifornia chrome. the colt is now reportedly cleared to run for horse racing triple crown. california chrome won the kentucky derby and preakness while wearing a nasal strip to help him breathe.

his trainer said california chrome may not run next month in the belmont where those strips are not allowed, but a racing official tells cbs news new york this morning that california chrome can now use the strip. diet and a lack of exercise are usually blameded for childhood obesity, but a new study says not getting enough sleep could also impact weight. researchers find kids who get less rest are more likely to be obese by the age of 7. the reports lead author, dr. elsie tavares, is chief of pediatrics in boston. good morning. i know as a mother of three kids, i was told early on, they've got to get lots of sl p sleep, but you usually think about that in terms of behavior. what did you find in how it's linked to obesity? >> we studied over 1,000 children in boston from about 6 months to 7 years of age and found those that chronically

could not get the recommended amounts of sleep had two kinds of odds of obesity around 7 years and were much more likely to have a higher accumulation of body fat, an accumulation around their abdomen, some of the most hazardous fat that we can accumulate. >> how is it that lack of sleep causes that effect? >> it's a very good question and most of the studies come from adult literature that shows that when we don't sleep enough, we have disruptions in hormones that make us hungry and that make us feel full, but in children, we rely a lot and children rely a lot on their parents and their routines in their homes and it's likely that the same routines that contribute to not sleeping well or having poor bedtime routines are contributing to adverse meal times or decisions about meals that aren't the healthiest. >> so, if you as an adult have

bad habits, your kids will, too. how much sleep should they be getting and does it have to be consecutive? >> our sleep needs vary from age. from children from 6 months to 2 years of age, the recommended amount is about 12 hours. from 3 to 4 year, 11 hours and 5 to 6, 5 to 7, is about ten hours of sleep and you can imagine that there are good reasons for parents to want their children to sleep better. that means better sleep for themselves and no one can question or doubt that's a good thing all around. >> and dr. tavares, since there is this link you believe from lack of sleep and obesity later in age, wha the advice for parents because it's hard to get your kids to bed. >> that's the perfect, that's the number one routine. bedtime routines. i was mentioning, i sometimes get out of the hospital at 10:00

at night and i see children in the pharmacy or the supermarket that really should be in bed. >> do you say something to them? >> i do not. >> i'm a doctor, you need to be in bed. >> i try not to judge. that's probably the most simple message we can give and the other two are simple to modify. reducing or eliminating caffeinated beverages later in the day and i have to say high-tech distractions from the bedroom. it used to be televisions, but n now, we have 10, 11-year-olds who sleep with their phones under their pillows. try to get rid of those distractions in the bedroom for sure. >> thank you, doctor. >> thank you. ahead, it's triple the s

how's this for fine

how's this for fine dining? reindeer moth and ants with yogurt. holly williams goes to denmark to see what else is on the menu at the world's best restaurants. and really? that's ahead on cbs this morning. ♪ first you get hit by psoriasis. and now you get hit again. this time by joint pain. it's a double whammy. it could psoriatic arthritis a chronic inflammatory disease that attacks your joints on the inside and your skin on the outside. if you've been hit by... find out more about psoriatic arthritis. take the symptom quiz at doublewhammy.com and talk to your doctor. over 150 years of swedish coffee experience.xists

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now that i have you alone, i've been waiting for this a long time. as god is my witness, i would never do anything to hurt you. >> we've got this exclusion leak to the video, there time with the audio included. >> man, what a great party. >> i know. up. >> oh, my god, there's a spider on you. >> what? get it. you know i hate spiders. >> it keeps moving. >> kick it. >> i got it. >> oh, great job. i love you, solange. >> i love you, too. >> hey, thanks again for the help with the spider. >> you know what? no problem. >> let's go back to the party. >> doesn't it make sense? it was all about a spider. you knew "saturday night live" was going to go there. >> that was awesome. that was very funny. did you see this?

argentina is getting its first up close look of the large st dinosaur ever. the femur alone was 8 feet long. it was thought to have been as tall as a seven-story building, longer than two 18-wheeler trucks end to end. the dinosaur weighed as much as 18 elephantsful paleontologists think it is 90 million years old. farmers first spotted it in 2012. it's something to talk to yourkys about. >> that's a big thing. peter greenberg heads to the persian gulf. see why americans are being warned, put up or shut up. that's next on "cbs this morning." >> announcer: this portion of "cbs this morning" sponsored by toyota. let's go places. with a really smooth ride. something safe he's a very light sleeper.

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the airline business is looking up. economists predict this year could set a record for profits nearly $20 billion. the highest returns are likely to be made by commercial carriers surrounding the persian gulf. that is where the largest order for new planes was placed last year. cbs news travel editor peter greenberg went to the region to learn why the demand is so high. peter, good morning.

>> good morning, charlie. more passengers than ever are flying the airlines based on the gulf states and the three largest have set ambitious goals to become the dom management players not just in the region but the world. now they're buying more planes, flying more routes, and billing bigger airports. >> we have concourse b and then concourse a. >> ceo akbar al baker. every building material matters and the effort of every biller is held to the highest standard. >> excuse me. what are you fixing? >> reporter: with a cost of $16 billion. such attention to detail is expected from the country's royal family, which is footing the bill. >> i need to achieve the mandate i have from my ruler as soon as possible. we want to have the airline and

the airport to have a major hub and serve the economic interests of my country. >> reporter: this new airport is also an economic necessity in the rapidly growing gulf airline industry. it's game of number, huge numbers, and places. they have so many airplanes, they have run out of place to place them. last year they combined to place the largest airplane order in aviation history at more than $162 billion. >> it's one of those regions that is growing at significant double digit growth. they have enormous plans for the future. >> reporter: tim clark is in charge of the largest airline based in dubai. clark sees em rats' expansion as another part of the plan, to develop the region into bogues a business and leisure

destination. >> it's added to the current state of thinking. >> even else is shrinking, and you're boom sthag that should be our business model. >> it's a business model based on geography, setting the persian gulf as the new crossroads of international travel. >> our growth plan is being taken advantage of. >> reporter: james hogan is the ceo of this airlines. hogan says being new to the market has enabled them to take off. >> we have a clean sheet of paper. we're not a legacy carrier. we've opinion able to build a carrier, a brand and build a business from scratch. >> reporter: they're now competing for highly coveted first and business class passengers. >> we're head and shoulders

above the rest with the standard of service, amenities, comfort we provide to our passengers. >> reporter: some of owes those provide personal chef, showers, and a three-room penthouse suite called the residence which will cost you $20,000 each way. >> we're competing but we want to compete on a level playing field. >> reporter: he argues since gulf airlines are state owned they're given an unfair advantage over american airlines. >> they have a much better tax, regulatory and infrastructure environmental than we do. our government often treats us, as you know, as a cash cow. >> explain what you mean. >> right knew passengers pay over 21% in taxes. >> reporter: em rats' airlines

tim clark argues profit. he claims it's the u.s. carriers who receive the most government assistance. >> we've never had protection. we certainly have not had more money from the deposit very and in year over year profits, they haven't needed it. >> they add a new route every day. unheard of. >> why can't american airlines compete? >> well, some of these airlines are accused of village an unlimited budget. we have one who wants to fly and get a room in the residence. he went to kick start and got $13,000. i'm holly williams in

copenhagen 8:25. i'm michelle griego. as the san diego wildfires get under control brown is warning california could be in for its worst fire season in california history. cal fire responded to 1,500 fires this year, a much higher rate than normal. it should be announced this morning whether a northern california horse will attempt to win the racing triple crown. california chrome won the kentucky derby and preakness but may sit out the belmont stakes in new york. the nasal strips that help him breathe during competition are bpaed in new york but there's an appeals process. ,,,,,,,,

♪ ♪ ,,,,,,,, get 5% cash back at lowe's this quarter so you can score more cash. activate your 5% cash back at chase.com/freedom. chase. so you can. we have a look at conditions in the south bay, loop 101. lots of delays. 280, peninsula ride, also slow and go north 101. 282, 37. and guadeloupe parkway, a little sluggish through daly city if you're headed along 880 northbound, seeing brake lights. do have reports of an accident north 880 at whistle possibly

blocking lanes. san mateo bridge a little better, still slow westbound. windy conditions as well along our bay area bridges. we have clouds across the skies this morning. the winds have been kicking up too. some places to 30 miles per hour this morning. out over san francisco the financial district, we've got mostly cloudy skies, temperatures are running generally in the 50s. breezy conditions in the afternoon, that area of low pressure is going to be dropping down in our direction. the next couple of days making the weather a little unsettled. there's a slight chance we could see light sprinkles, light showers, mainly over the mountaintops and maybe even a wandering thunderstorm. temperatures will be cooler today, 50s and 60s to the coastline, you'll find 60s in the bay, 70s in the valleys. tomorrow going to be a similar day, partly cloudy, slight chance of a few scattered showers, much warmer weather and nice this weekend. ,,,,

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morning." coming up in this half hour, dining at the world's number one restaurant. want to go there. means eating on the edge. holly williams takes us to denmark sampling dishes you would never imagine, things like grasshoppers, no thanks. they call them racial referees. key & peele are right here in studio 57. good morning. nothing is off limits when it comes to their humor. that story's ahead. right now it's time to show you some of this morning's headlines from around the globe. "the wall street journal" says voters in switzerland rejected a

proposal to raise minimum wage. at $25 an hour, it would have been the highest in the world. three out of four voters said no. the "new york post" looks at items in a gift shop. a silk scarf with images of the twin towers and raincoats for dogs that look like that from the fire department. a woman calls the souvenir shop, quote, the crassest most upsetting thing i get why that is. these are images from the movie titled "the vanishing act." the director admits the film is a risk but insists the producers are not cashing in on the strategy. paul says it will stand alone as a thriller and not affect the victims' families. vanishing act is due out this fall. the "los angeles times" says it now costs you more to get

into disneyland in california. the price $196 a day for young and old. that's a $4 increase. it went into effect saturday night without warning. the cost has gone up each of the last four years. >> london's "daily mail" is looking at mick jagger. he's a great grand daddy. this news comes two months after the death of jagger's girlfriend, designer la rehn scott. and "the boston gobe" says the bread basket is disappearing. they're saving costs. people don't want it because of the anti-wheat and anti-gluten trend. know ma in copenhagen won the award once again and holly williams takes us to denmark to see the act in kitchen and the

whiz behind the scandinavian designation. >> if this conjures up a pastry in your head, i think again bus the world's new culinary capital isn't paris or rome but copenhagen. and the hottest table in denmark is noma. voe voted the best restaurant in the world for the fourth time. diners book several months in advance and pay $300 ahead for samples like fried reindeer mosque, and live ants with yogurt. only six sheffs have revolutionized nordic food. his cooking is not for the unadventurous but he limit as what's in season in the harsh scandinavian climate. >> what we're trying to do here is find that flavor of the

region. the biggest task i tell our guys is we have to cook the day we're in. >> reporter: in his experimental kitchen he showed us some of his newest creations. >> you see this liquid here. this dark liquid is grasshoppers that we blend to a slush. go for it. >> oh, wow. >> he started his pantry by forging in the wild and he finds rich flavor even at the end of a frozen northern winter. >> this is actually something we use quite a bit. >> we're going to eat this? >> you can eat them. we're not going to eat them now. we're going to poach them whole like this and eat it like a flintstone movie.

>> he's helped with a new foraging movement but he cautions people should not try this stuff at home. >> stuffed mushrooms, some plants, they can actually kill you. >> his success has inspired a new school of scandinavian cooking and a food blogger told us it's turned copenhagen into a dining mecca. >> we have the all the guests and people traveling from all over the world just to visit our restaurant. >> reporter: this chef moved here from san diego four years ago to work at noma and has now opened his own restaurant. he told us chefs are flocking here from all over the world. >> we have so many americans work here. >> he puts so much to work, things that thrive in frost and snow. >> this is something that will thrive in the winter.

>> once again, noma. >> he told us his success has come as a big surprise. he started cooking at a teenager after one of his teachers promised a prize for the student who cooked the best dish. he began his career with a roast chicken. >> did you win? >> no. we came in second. there was a guy -- i can't remember his name now. but he was a trained butcher and he made a ham salad that was the like the best. >> you were beaten by a ham salad. >> the ham salad was better than my chicken, yeah. >> is there a kind of renewed danish pride in your food because of what you've started here? >> it's very new. it's very fresh. we're infants. we haven't learned to walk yet. and we're still waiting for our crazy teenager years where we're going to go wild and be mad. >> reporter: many would say he's already gone wild in the kitchen

and taught form the world of high end cuisine in his wake. for "cbs this morning," holly williams, copenhagen. >> wow. talk about thinking outside the box and creativity. i'd love to go. >> i've interviewed him many times. hes are is an experimental guy. >> have you tasted his food? >> no. >> you haven't tried the grasshopper juice? >> no. but i trust him. when i've tried other, it's also good. >> i'd love to go. key & peele are in our toyota green room. we'll look at how the

i taught school for 20 years in the inner city, so don't even think about messing with me. you all feel me? okay. let's take the roll here. jaquelan. where's jaqeulan. no jaquelan here? >> do you mean jacqueline? >> okay. so that's how it's going to be. you all want to play. okay then. i've got my eye on you, jaquelan.

bilake. where is bilake at? no bilake here today. yes, sir. >> my name is blake. >> are you out of your [ bleep ] mind? blake? >> what? do you want to go to war, blake? >> blake? >> that sketch is from key & peal. the award-winning sketch series is known for tackling racial issues. the show is being honored this morning in new york with a peabody award. the prize committee said the program is like "abbott and costello" meet richard pryor. they're also known for their take on president obama. >> good evening my fellow americans. with me as always is my anchor translator. >> boom, man, i sunk your battleship. what's up. >> to the american people, i just want to say that the debates are over, but now is not a time to tally points or to

keep the score. >> 2-1, obama. game, set, match, touchdown, home run, checkmate, can we get back to work now? >> it stars keegan-michael key and jordan peele. boy, you've got president obama down. but i love the blake and jacqueline. you and charlie are homeys by the way. >> oh, yeah. >> you guys are homeys. >> we are in good company with this one right here. >> how would you say charlie? >> way to win that peabody. >> hey. >> c-har-lie-ee, ro-say.

>> you guys do it. you do think it's because you're biracial it's yeasier to do or gives you license to do? >> yeah. i think there's something to. we love how the audience knows we're going to step into a sketch. if we start a sketch and the audience is already uncomfortable, we know we can use that against them. we call that judo. it's kind of comedy judo, and, yeah. and because we are mixed, you know, it's hard to put a finger on how to view our work racially. that gives us a little bit of freedom to go places that other people don't. >> how did you wind up in comedy? >> i think we both started -- actually both kind of started in earnest in chicago. i used to work for second city in chicago and that's where we met actually. but i think we both started in college.

i was in an improv troupe in college and you were in a sketch troupe and jordan was so infused with it he left college with a friend of ours who's on the writing staff and they started their own thing and did a show together. so we both kind of started at that point in our lives and bumped into each other. >> that luther guy is hilarious. >> you know, we met the president because of this very sketch. the first thing he said to us is, you know, i need luther. to us that was like the validation. it made luther real. he went on to say, i do a pretty good me too. >> why does he need that? >> he certainly needed it when we first wrote the pilot because -- please, his name is escaping me. wilson. >> the congressman. >> who had the outburst. when did anybody have an

outburst before? i haven't seen that done to another president who has melanin in his skin. he's caught between a rock and a hard place. if i speak back, i'm an uppity black person and if i don't speak back, it's -- >> what was it you said -- i think in "time" magazine not to make fun of someone is a form of bullying. >> we believe in the power of laughter. we believe it is so important. we believe that communication is one of the only weapons we have against the evils of the world. so the time article is about -- you know, it's about being free to poke fun anywhere. and when you start picking and choosing who's okay to make fun of and who's not okay to make fun of, then you start to get in a little bit of trouble, specifically when you start to assume that certain people are

not up to the challenge of being taken on. >> to make fun, that's a form of admiration. >> yeah. it's a different kind of flattery. it can be a lighter their moment. >> the thing is we're still getting our head around that it's jed and we're writing a movie and what's happening right now. sometimes it's moments like these you get to bring your nose up from the grindstone and go, oh, gosh, this is happening. it is. it's fun. there's a place for frivolity and there's a place for kind of serious comment making as well. >> you do impressions. the way you have done his voice, the president's voice. >> now, charlie, i'm going to go

ahead and thank you for that compliment, but, you know, at the same time, it's a two-man impression, you know. we got the surface and we got, you know, what's underneath. >> we coming on underneath. i'm excited to be here. >> but thank you, yeah. >> and you should be. >> you know what's funny about this, in your bioyou said you were painfully shy as a child. i would have thought you, keegan, would have been a class clown. >> as a small child i was very, very shy. of course, when you get in school you don't know what to do. i was a bit of class clown in grade school, but thing that -- i'm an extrovert and i get my energy from other people so i didn't have much of a choice. >> and what it says in your bio, jordan, is you love your mother. >> yes. i'm so glad that it says that in the bio. >> i do not love my mother. no, no, no. i adore my mother.

>> your wife and dogs and you love your mother. >> you guys know everything. >> it was great to have yu guys aet the table. >> congratulations. >> thank you. and congratulations, charlie. >> no. it's c-har-lie rose-ay. the fourth season of key & peal begins this fall on come by central and tomorrow new technology is allowing roy orbson's son to perform again with their father. >> charlie's down with the people. down with the people. >> you're watching "cbs this morning." ,,,,,,,,,,,,,,,,,,,,,s

before we go, the lovely norah o'donnell and her husband were in the half marathon. we have a picture to prove it. look at that. >> what you do have to say, norah o'donnell did a half

marathon. >> couldn't do the,,,,,,,,,,,,,, ,,