good thursday morning. right now on first look, no deal. a meeting of america's top leaders produces next to nothing as the country begins feeling the effects of a partial government shutdown. exclusive interviews, president obama speaks out and benjamin netanyahu lashes iran. tragic accident. a north carolina church group's happy outing takes a horrific turn. plus, legendary espionage and cold war writer tom clancy has died. a close call for air commuter and gas prices continue to drop. good morning. i'm mara schiavocampo.

president obama is speaking out on continued gridlock with republicans. >> during the course of my presidency, i have bent over backwards to work with the republican party and have purposely kept my rhetoric down. when you have a situation in which a faction is willing potentially to default on u.s. government obligations, then we are in trouble. >> those comments capped a night of meetings at the white house between the president and congressional leaders, their first since the shutdown. but it ended with no deal. house speaker john boehner saying the president will not budge. >> the president reiterated one more time tonight that he will not negotiate. we had a nice conversation, polite conversation, but at some point we've got to allow the process that our founders gave us to work out.

>> on the senate side, majority leader harry reid's offer toss rejected. he suggested a cease-fire deal, calling for a funding the government and then -- in order to pass the clean bill, just 17 house republicans have to break ranks. that's assuming the 200 democrats remain unified. this morning, there's expected to be another round much political ping upon and danielle lee joins us live from washington with the latest. good morning, danielle. what's ahead today? >> reporter: mara, good morning. this shutdown will last at least another day. on capitol hill, lawmakers are beginning another day of political ping-pong and both sides are digging in their heels. the republican led house will continue its efforts to fund the government one piece at a time, obama care excluded. on their to do list, funding veterans and the army reserve. they have voted to reopen u.s.

parks and memorials and the national institutes of health which had to turn away 200 people, including kids with cancer. others say no, they want to fund the government at once. as the shutdown continues, small business owners are continuing their protest here on capitol hill. they're telling lawmakers this is bad for business. the longer it continues, the more likely it becomes that the fight to fund the government is going to coincide with another fight coming up to raise the debt limit so the nation can pay its bills. mara. >> not looking good. more now on john harwood's exclusive one-on-one interview with the president. mr. obama discusses the current budget balt and has a grim message for investors over the pending debt limit fight. >> the reaction i would say generally speaking, has been washington fighting, washington posturing, yadda, yadda, yadda. is that the right way to look at it? >> no. i think this time is different.

i think they should be concerned. one thing i know the american people are tired of and i have to assume the vast majority of businesses are tired of is this constant government from crisis to crisis. could do we need to break that fever? >> we have to stop doing that. lets get a budget that allows people to plan over the long-term, allows us to deal with fiscal problems in a sensible reasonable way. >> wall street has virtually shrugged off the d.c. dysfunction. stocks rose tuesday, experienced modest losses yesterday and futures are flat this morning. now to what was supposed to be three days of singing, laughing and preaching turned tragic. eight people were killed when a north carolina church group's bus blew a tire and flipped over after slamming into a tractor-trailer ond suv. 14 people are injured. an investigation is under way. >> my 17 years, probably the

most serious incident that i've ever been a part of. this is involving three vehicles and the dynamics are great. >> at the front street church wednesday, people were crying and hugging one another. six of the victims are believed to be members of the young at heart seniors program. they were coming from a fall jubilee at the time of the crash. parishioners say they are shaken. israeli prime minister benjamin netanyahu's warning to the world. iran cannot be trusted. he spoke with andrea mitchell on the heels of his u.n. address. >> you don't want to be in a position where this apocalyptic regime has wild ambitions gets away with building the weapons of mass -- >> why not give -- >> i'm sure there are. if they had a freeg are you kidding, they'd go in blue jeans, toss out the regime. the majority of the people are pro western.

they don't have that. they're governed by ayatollah khamenei. that cult is wild in its ambitions and aggression. >> iran's new leader, hassan row rouhani would like to strike a deal. rouhani hopes harsh sanctions are eased as negotiations continue. including the phone call with president obama. he says that he's a wolf in sheep's clothing. for your first look at business, we turn to kayla tausche. good morning. >> the effects of the shutdown have hit corporate america. united technologies may have to furlough up to 5,000 workers if the government shutdown extends into next week. employees at the unit which makes blackhawk helicopters would be the first to be sent home. holiday sales will rise about 4%

this year, but the group says economic concerns, including the shutdown could impact shoppers' spending plans. target is launching a pre-paid wireless service this weekend. for $35 a month, customers can get unlimited talk and text. for every six months of service, they get a $25 gift card. an enticing word but no word about data. thanks, kayla. the cost for a gallon of regular price dropped six cents in a week. the nationwide average is $3.39. it's time for sports and betty is here with more. >> good morning friend. it's game on for the ugs military academies. the government shutdown will not affect the saturday's games. army will play at boston college and april senior defense officer confirmed saturday's matchup between air force at navy will go on as scheduled. no shutdown there. before the game was confirmed, though, united airlines was actually ready to step in and

help tweeting we hate cancellations so we're offering to fly air force to the air force/navy game. that won't be american league w game, tampa bay beat out cleveland in the single elimination game. cobb pitched an impressive 6 2/3 innings game. rays 4, indians zero. super model kate upton glams up the edition of sports illustrated. bj and justin. the blond beauty graced the swimsuit edition cover twice as many remember, making this though her first time on the cover of a regular issue of s.i. >> she has clothes. >> fully clothed this time. a lot of people might be upset about that.

san francisco 49ers, check this out. donte whitner hasn't been taking sunday punishment lightly. after a fine of 12 grand for a hit on rams receiver, he's going to officially change his name to hittner. not whitner. hitner. it is whiffle ball time on ice. the penguins showed support for the pirates first playoff appearance in 21 years. >> that looks hard. >> it looks really hard. exactly. they're playing this whiffle ball after practice wearing pirates shirts over the uniforms. this is some of the penguins first time playing the sport. not exactly easy. >> that's great. >> want to show you this. this is something you have to see to believe. a florida fisherman released a 300-pound bull shark that he caught. but it didn't start swimming. even though they're most deadly and most likely to attack humans, orion who didn't seem to

care, he kind of jumped in to revive the shark. lucky he didn't get bit by that shark. he's still alive to tell that tale. what's interesting, didn't they try to catch it. now he's trying to release it. >> he's the hero but he's the cause of the distress. >> he's still okay after getting in the water with the shark. i guess that's all that matter. >> him and the shark are both okay. thanks, betty. it was an extremely close call for a bicyclist in england. she's narrowly missed by a speeding train. look at this. unbelievable. she ignored the crossing gate. that commuter train came barreling down the track at 75 miles per hour. we'll see it one more time. boy, that could have been so much worse. >> and now for a look at the weather, i'm joined by bill karins. i bet she'll never ignore that again. >> when batman robin had the kerr splats? >> the quiet weather for three

months. this is the more interesting forecast in a while. first to the tropics. we have a developing tropical storm. this during the day today should become karen. it's heading to the u.s. plus it's in the gulf of mexico where there's warm water. you can get big storms in october. thankfully, it doesn't appear to have a chance to become a hurricane or strong hurricane. there's a lot of dry air in the western gulf, and the upper level winds will shear it apart and tear the tops of the thunderstorms off. that's why we think it will be a tropical storm headed toward north florida or the panhandle or new orleans who mobile or in that vicinity. also, a big winter storm. a huge winter storm, warnings spread from montana to colorado. this is going to be a serious snow event tore the area, especially tonight to tomorrow. casper to rapid city could pick up over a foot of snow. here we are in the east coast, it's going to be 80 again today, pretty much up and down the seaboard. they're dealing with a foot of snow. >> and it's barely october. >> power outages, big deal for

them. we'll keep an eye on it. coming up, britney spears has a message for lawmakers. scrambled politics is next. first, about 108 members or 20% of our elected leaders in washington are offering to donate their hefty salaries to charity during the shutdown. while many members of their staff are going without a paycheck. we're back in three minutes. [ bird chirping ] ♪

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and now it's time for your first look at this morning's dish much scrambled politics. just to show how bad it is during the government shutdown, some senators like west virginia democrat joe mansion are answering their own phones and bipartisan with republican dean hemmer manning his phone. >> britney spears has something to say to congress. the artist tweeter, go call the police, go call the governor, someone tell the congress to get to #get to work.

i'm sure you can fill in the blanks. lady gaga tweeted her support for the affordable care act. saying it's time to get covered. >> the california health insurance exchange has corrected the number of online hits it received during tuesday's rollout of its website. because of an internal miscommunication, instead of 5 million hits, the actual number little less, 645,000. a lot less. >> checks for alaska residents come in today. since oil was discovered in alaska, they receive money from the alaska permanent fund. this year it's 900 bucks. on the tonight show, jay leno did a joke about two stories in the news. >> here is a very frightening story, ladies and gentlemen. signs in stockholm says hundreds much jellyfish shut down a nuclear reactor. that's nothing. our country a bunch of spine less jellyfish shut down the entire country. >> that's your morning's dish of

scrambled politicsment joining me now for first look at politics, it's bob frank on thursday. >> i have to follow jay leno, right? >> there you go. but you'll do fine. >> thanks a lot. >> listen, as we mentioned, top financial leaders were at the white house yesterday. they want this to be resolved as quickly as possible. how much influence do you think that the financial titans have? >> there are two possible answers. one, since they sort of controlled government through their political contributions, maybe they have influence. but the other side of that is that many of the people, particularly the tea party people, among the people who they are really against in this establishment that they're fighting they say, are the members of the business community. so it's possible that they'll in fact have a rallying cry out of the fact that they're apparently making the wealthy squeal a little bit. >> that would be interesting. yesterday, we saw the gop shift the narrative a little bit. making a big fuss about the

world war ii memorial be closed. do you think this strategy will work? >> it will only work if they come up with legislation to get the panda cam operating at the national zoo. this is silly. this is really silly. the fact of the matter is, if they want to do st. go back and read article 1 of the constitution which says it's their job to appropriate the money. they seem to have forgotten that word. they spend the money each year. that's all they have to do. forget the individual bills. that's obviously the way of trying to finesse a president who has decided he's not going to be finessed. >> quickly, right now it seems a congressional republicans seems to be shouldering most of the blame. do you think public opinion will shift a little bit and congressional democrats and the president will start to feel it more? >> i think that the president has a strategy right now, which is to not engage these people. he's saying i'll negotiate with

you, but not when you're holding the country hostage. i think that for the moment at least that's going to sustain him. we'll have to see down the road if this gets more serious. >> bob franken, thanks so much. good to sigh, as always. >> thank you. top stories coming up, including a family feud. check this out. leaf peepers, people who look at foliage are getting hit by the shutdown. many sights to take in foliage, including the skyline drive are victims of the government impasse. we'll be right back. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. i never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side.

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now to stories making news this morning. police say the bomb scare tuesday that shut down the jacksonville airport was all a hoax. a 39-year-old man has been arrested and charged. his bail is set at $1 million. also in court wednesday, a biker involved in that motorcycle melee in new york city. christopher cruz was arraigned on assault charges. one cyclist remains in the hospital after being ran over by that suv. his family has retained gloria allred. >> aeg live was not responsible for michael jackson's death. after a five-month trial, jurors cleared the company of negligence when it hired dr. conrad murray. jackson's family sued for more than $1 billion. the family of legendary radio man kasey kasem is taking to the street in l.a. three of his kids haven't seen their 8 is-year-old dad in

month. they say his wife jean won't open the door and let them in. the author behind some of the best thrillers of all-time has died. tom clancy passed away overnight after a brief illness. his novel, the hunt for red october, was frequently cited as one of the greatest novels of that genre ever. it was made into a film starring sean connery. he was 66. an epic fail in los angeles and how a curby job at facebook may be getting curbier. >> first a long shutdown can cost all of us has proven by the '95, '96 shutdown has caused the s&p to drop 3.7%. neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below...

to the finest comforts above. we're not simply saluting history... we're making it. dad! dad! katy perry is coming to town. can we get tickets, tickets? hmm, sure. how many? well, there's hannah, maddie, jen, sara m., sara b., sa -- whoa, whoa. hold on. (under his breath) here it comes... we can't forget about your older sister! thank you, thank you, thank you! seriously? what? i get 2x the thankyou points on each ticket. can i come? yep. the citi thankyou preferred card. now earn 2x the points on entertainment and dining out, with no annual fee. to apply, go to citi.com/thankyoucards could save you fifteen percent or more on car insurance. everybody knows that. well, did you know that when a tree falls in the forest and no one's around, it does make a sound? ohhh...ohhh...oh boy! i'm falling. everybody look out! ahhhhh...ugh.

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during the last shutdown in 1995-'96 furloughed workers were given back pay when the government reopened. departments a have not said if that will be available this time around. now it's time for first buzz. all the stories we're talking about this morning. i'm joined by betty nguyen and bill karins. betty, what you got? >> this is cool. facebook not only do the high tech companies give you free food, massages, all that good stuff. now facebook is creating this right here. a $120 million housing community within walking distance of his campus. these apartments, well, they're going to go for market rates, which is pretty high in silicon valley. a handful will be set aside for low-income residents. i wonder what you have to meet to be that. >> i want to live there. >> 15 knew units will be open to facebook employees. you don't have to worry about

dry cleaning. >> no offense. do you want to live and work next to the people you work with? >> i'm offended. >> you don't have to worry about the extraneous stuff. makes sense, right? >> it seems like an extension of college living. be with your friends. >> not great for little kids if you're a family, that kind of thing. so this is kind of funny. i think it's funny. a story out of l.a. it's a $1 billion plan to get an ipad into the hands of every student. >> i remember that, yeah. >> they started unrolling it and gave the ipads to a lot of students at two high schools and then they had to take them back. >> why? >> because the students managed to hack the ipads so that they could surf the internet and go on any site they want today. >> kids would do that? >> they're not supposed to do that. those sites would be blocked. >> it wouldn't be just hont history channel. >> they got 2/3 back. a third of them are missing. they'll figure it out. >> i thought it should have been the lead story.

but researchers have proven that bigfoot is real. this is the sasquatch genome project. this is legit. this is a veterinarian much five years of research, they said that bigfoot was found in the woods of kentucky. we were looking at -- >> have a good one. way too early is next. i am exasperated with the idea that, unless i say that 20 million people, you can't have health insurance, these folks will not reopen the government. that is irresponsible. we've got a group of folks who think that they can hold america hostage for ransom that they can't win through an election. first of all, can we please stop with the hostage metaphors. it's not just you, mr. president, but it's driving us nuts. we hear from the president on day number three of the government shutdown.

that epic core battle over michael jackson's death, the concert promoter hired the doctor but not responsible for him. the family gets nothing. >> how about explaining miley cyrus talking as she's front and center. hosting snl. they bounced milo. what are he going to do? >> this is way too early. it will be interesting to see how snl goes this saturday night. good morning everybody. i'm brian schactman. thursday, october 3rd. we have a lot on the docket today. we do mourn the loss of one of america's greatest fiction authors. a coaching debut for someone. a tesla car catches fire and torches the price. alas, we begin with the government shutdown. it was billed as