angela merkel gave her state of the nation speech in parliament. she outlined the new coalition government's focus for the coming years. fractured her pelvis while cross-country skiing in switzerland over christmas, remained seated through the address. jessica, angela merkel is now governing with the social democrats. were there any signs of change in her policies in the speech from the usual politics now that she's sharing power? >> some of angela merkel's speech today and pay much of the well-worn rhetoric. especially -- contained much of the well-worn rhetoric, especially when she talked about germany being the strongest economy in europe at a role model for europe and the greater financial integration across europe. it showed influence from the social democrats with whom she is now in power, especially on issues of social reform such as hefty and expensive pension reforms, the introduction of the minimum wage in the germany. these are conditions that the social democrats had insisted on in agreeing to go into government with and le -- with ange

when we return, from angela merkel to yahoo! c.e.o., what are the stakeholders saying about the president's proposal. bloomberg's reporters are next. ♪ >> welcome back. president obama tries to reform government surveillance while balancing privacy and national security and he has also bought himself some time on iran this week. for on this week's developments, i'm joined by bloomberg's white house correspondent and national security editor, thank you both. margaret, you have been covering the president's n.s.a. review process day in and day out. what was the biggest surprise to you in his speech? >> the biggest surprise was one that he apparently made around midnight last night which was to take a stand on section 215, the collection of metadata. he said it's time for the program to change. of course, what he didn't say is how it should change. a surprise or disappointment to many of his advocates is how much he didn't resolve or spell out, how much he is passing on. >> john, why don't you spell out what some of those unanswere

chief economist at denver area >> angela merkel has herself a skiing accident.ting that from berlin. we will have more news for you after the break. ♪ >> welcome back, you are watching "the pulse." let's see how the markets are performing now. out for thes british pound this morning. first up, we had a pmi number that came in at 58 and changed a little weaker than anticipated third still, a fairly strong number. we saw earlier on in the morning concerns about what would be announced by the the chancellor george osborne. he is talking austerity and he is talking about it for longer than people anticipated. he said it is going to be a british year for the british economy. beo, on thursday, may lowering pressure when it comes to employment. -- 16280. >> hans, we have had some breaking news on angela merkel. she is resting in berlin for three weeks. >> she is bed ridden. she cannot afford to reinjure her hip. this happened december 30, skiing in switzerland. the important thing about this is that no travel for angela merkel for the next three weeks. that means a jan

. >> warner: has angela merkel's government received any satisfaction from the americans on other these issues other than not spying on her cell own? >> honestly so far not. we haven't had the progress we need and we hope we are able to manage it until the chancellor has her visits in june in america. we should continue our cooperation because there are

edwards snowden revealed the existence of mass surveillance by the agency but german chancellor angela merkel's mobile phone calls having topped the best to get them i'd cry across europe obama is expected to set limits on spying on leaders of us allies in the last few months the president met for the intelligence reform bill it recommended many changes to the spying program obama's statements on which changes you make will just be the starting points. with less than a week before international peace talks on syria due to begin the presses on. russia has been pushing for iran which supports syrian president bashar al assad to be brought to the negotiating table meanwhile the syrian national car in the senate the main opposition party has still not said whether to pay costs. the sabc is due to decide on a friday and the us is backing to attend. we do so knowing that the geneva peace conference is not the end but rather the beginning. the launch of the process a process that is the best opportunity for the opposition to achieve the goals of the syrian people and the revolution and a political sol

angela merkel led the first meeting after her skiing accident of the new year. lex there was plenty to talk about. he conservatives and social democrats have been in the coalition government for less than a month and there are differences on policy that have to be resolved. >> cracking down on migrants from bulgaria and romania that no longer need work visas. the problem, they say, is being exaggerated. urkel turned to a coalition -- commission to make recommendations. >> i think that is the best way to handle this issue. we need to work with hard facts. >> they say those from the balkan states are well qualified and are needed by the german economy. >> as germany's business community, we want to stress the table areas and romanians are among the workers with lowest jobless rate and welfare dependency in the country. we are bad mouthing a part of the population that doesn't deserve it. >> it is likely to be the first of many disagreements. ask michael schumacher was not skiing at a reckless speed when he crashed 10 days ago. cracks based on video footage of the

there are stories in the german media that he told the social democrat ministers within angela merkel's cabinet to report to him as spd leader, rather than to the chancellor. but he says no, he wants to be a constructive art and are within this coalition government. and of course to see it through to the end of the legislative period as much as possible. he also said it is necessary to have a confident approach for arguing for social influence in government. a combative speech as well. comes of the strains in the months to come? interesting to see. sports now. in tennis, stanislas wawrinka has clinched a remarkable upset victory at the australian open. the top two swiss player defeated world number one rafael nadal in four sets. he became the first man in over 20 years to beat 2 top seeds to clinch a grand slam title. switzerland's stanislas wawrinka celebrated his first rent slam title. he had words for his beaten opponent. >> rafa, i am really sorry. you are a great guy. a good friend. a major champion. >> nadal played the final despite back problems. the franca took the chance offere

. >> back here in germany, chancellor angela merkel has made her first public appearance since injuring herself in a skiing accident last week. >> using crutches, she came out to meet carol singers at the chancellery. doctors advise her to rest for three weeks after she suffered a hairline fracture in her pelvis. she has had to cancel many appointments, but not this one. >> there's always a large media turnout or the annual visit of carol singers to the chancellery, but this year, there was special interest in the host, as angela merkel faced the cameras for the first time since her accident. throughout, she was closely assisted by the minister who heads the chancellor's office. >> my sincere thanks go to the head of the chancellery, who is helping out with today's if and as i'm having difficulty standing. as you have read and can now also see, i am supposed to lie down more. >> there is a serious purpose behind the singer's visit. each year, children across germany collect millions of euros for catholic charity work. this time, though, the head of the organizing committee also had a sp

embarrassing revelations about spying on foreign leaders, tapping angela merkel's cell phone, and edward snowden fold german tv - spying for commercial gain. >> does the n.s.a. spy on siemens, on other successful german companies to prevail, to have the advantage of knowing what is going on in a scientific and the economic world? >> i don't want to pre-empt the journalist, but there's no question that the u.s. is engaged in economic spying. if there is information at siemens that they think would be beneficial to the national interests, not the security, of the united states, they'll go after that information and take it. >> glenn greenwald a columnist writing about intelligence gathering for "the guardian " ws one of the first journalists edward snowden reached out to. >> he has brought to light lies. >> investigators clouded. >> the government shouldnd the program. >> a u.s. judge ruled the collection of domestic telephone records was probably unconstitutional. >> only a check on those in power is if we the public know what we are doing. >> edward snowden remains in exile without a u.s

chancellor angela merkel's chief of political staff is still attracting attention. >> he is quitting politics to take a job at germany's rail service, lobbying the very government in which he was part of the inner circle. >> some say the move is unethical and a symptom of an unseemly revolving door culture in berlin. >> as angela merkel's chief of staff, he was a dealmaker and mediator. he reconciled his speed and competing interests among cabinet ministers. he also coordinated the government's relations with federal, state, and community groups. that was then. now, just months after winning reelection for parliament, he is quitting. it looks like he may be taking a lobbying job. what a lobbyist does is try to persuade the government to do what his corporation wants. >> the thing what makes this case also different is that he is not only going to any company but to a public company where currently this job was just created for him. that arises the question how public companies are creating jobs for outgoing politicians. >> he is not the first german politician to cause controversy wi

they said they will no longer spy on angela merkel.hey would also like access to the top floor of the american embassy, where it is believed an industrial spy nest is located with all kinds of equipment, and also eliminating the amount of metadata that is gathered. so that the rights of german citizens aren't violated. >> obviously all of this has caused tensions between germany and the u.s. any attempts to try to rebuild that relationship? >> well barack obama, the american president called angela merkel on wednesday. she has been suffering from a fractured pelvis after falling while skiing to wish her well and to talk about improving relations, and invited her to washington. it was agreed that she would come to the american capital at an unspecified time in the future. there are all kinds of things that the germans and the americans need to talk about and like to talk about. berlin has really become the go-to capital during the debt crisis, so americans look to her as their lock when it comes to getting the european economy going aga

presumably angela merkel and the rest of the government should be happy with the announcements?if they are, they aren't letting us know. but i think far more important to merkel and her government and the german public is a no-spy agreement that germany and the united states have been working on for a number of months, and the leaks that have been made to the press are that the german side are expecting nothing much to come of it. the germans had been hoping for promises that no other politicians would be spied upon, angela merkel had been given a promise by barack obama that her phone would no longer be listened to. there will not according to press reports be access to the roof of the american embassy, which is just a short walk from the building that you see behind me, upon which there is german media belief is a spy nest, which allows the americans to listen to the communications of people in the government district. nor will there be limitation on the ma -- metadata of the phone calls of german citizens. quite apart from how they feel about this speech. and as i said there

secretary of state john kerry stopped by in berlin to meet with chancellor angela merkel. he played down the failure of the two countries to agree on a no-spy packed. >> we are partners above and beyond once in the road, and we will find our way to be able to move forward, resolving any kinds of differences in an appropriate way that respects our relationship. >> after his meeting with merkel ,kerry went on to munich to attend the conference. with turmoil in syria, delegates have their work cut out for them. >> our chief political correspondent is at the munich security conference. the german president opened the proceedings. how did his speech actually go down? >> i think many people feel this was one of the strongest speeches he has made as president. he gave a very impassioned appeal for germany to take on more responsibility in international affairs. this has been a perennial issue here at munich for a long time now. other countries have urged germany to get beyond check out diplomacy, to do more to help resolve international crises, and certainly, those were the words

>> reporter: the interview, a clear attempt to repair his relationship with girlen chancellor angela merkel damaged by edward snowden's leak. >> what i can say is as long as i'm president of the united states, the chancellor of germany will not have to worry about this. >> reporter: in washington, mixed reaction. house speaker john boehner accusing the president of failing to adequately explain the necessity of these programs. in an interview that will air on "meet the press" tomorrow intelligence chairs democratic senator dianne feinstein and republican congressman mike rogers were both largely supportive. >> i think that what the president has said is that he wanted to maintain the capability of the program. >> some of the suggestions on how to move forward, i have some concerns with, but i thought it it was an important -- really an important role for the president to play. >> reporter: privacy advocates say the nsa needs to be reined in even more. they also argue the president left some of the hardest questions answered like who will store the data. some changes require congressional ap

had intercepted angela merkel's phone calls it became clear that even the german chancellor is a new. spin. is spying among friends does not work at all we need trust among partners in this trust needs to be restored now obviously. data is not very protected otherwise those scandals would not have occurred whether it was germany whether it was in brussels in the know in france. it's not only the politicians and individuals but it's also and to prizes that are that are threatened according to edward snowden's latest leak the national security agency isn't just gathering intelligence for national security purposes but indulging in industrial espionage as well he cited germany's engineering firm siemens as one target and still no admission from the top i can give assurances to the publics in europe and around the world that we're not going around snooping at people's emails or listening to their phone calls so on the eve of data protection day we are asked some europeans if they felt like celebrating do you know anyone who is happy about it that his private sphere is controlled by govern

kerry trying to mend fences in germany still broken after edward snowden's leaks about tapping angela merkel's cell phone. >> we are partners above and beyond bumps in the road. we will find our way to be able to move forward resolving any kinds of differences in a appropriate way that respects our relationship but also understanding that we have a lot of work to do together in 2014. >> kickoff countdown, we'll preview sunday's big game, the ads and yes, even the puppy predictions. looks like a clear win. the denver broncos going to win the super bowl. >> good day, i'm andrea mitchell in washington, where president obama is trying to get momentum going from the state of the union. hiring the long term unemployed and pay more than the minimum wage. two issues he's been taking to the road, maryland governor martin o'malley joins me now. thank you very much and welcome. >> thank you, andrea. >> let's talk about the economic agenda coming out of the state of the union that the president has been pushing hard. now we have 14 states who have raised the minimum wage on their own. yours has not. why n

the moment that made a difference was the angela merkel moment. they have a particularly close personal relationship. germany is an extremely close ally in terms of national security and economic issues. when that blew up, the obama white house says we really have to do something. >> let's go to the white house. we are waiting for the president. he will announce the reforms he has accepted as far as nsa surveillance and where we are moving forward, where the united states will be on this very, very sensitive issue. do we expect the president specifically to acknowledge in this address that the united states over the years has eavesdropped, has listened in on phone conversations of world leaders, specially allied world leaders. . >> i think the white house has just about acknowledged that without saying it explicitly. when the president says we are going to curtail that surveillance activity, that is in and of itself an acknowledge they have been spying on world leaders. for all intents and purposes, we could report they have been doing that. this

announced in late march when it comes to spying on foreign friends allies like german chancellor angela merkel president obama says unless there is compelling evidence u.s. intelligence officials will not be listening on the phone calls or reading the e-mails of america's friends obama said he's also calling for a public advocate panel to be appointed to the court and also there was some mention of possibly requiring the n.s.a. to get permission from the foreign intelligence intelligence surveillance surveillance court which i mention the files of court every time it wants to access . its metadata database that's something that is still up in the air it was recommended to president obama but we should mention to our viewers here that the fire support is a secret or it's hearings are closed to the public records of the proceedings are classified during its thirty three year history the phrase a court has reportedly granted nearly thirty four thousand warrants and only denied eleven requests it is seen as a court that rubber stamps whatever u.s. intelligence officials want to do so we'll see wha

i guess you're just being naive or superheat i mean when the americans have been tapping angela merkel's phone up and toughing the phones of hundreds of millions of people across the european union why would we expect them to leave business alone in fact what we've got to do is look at your own history james will sleep clinton's cia director actually said back in march two thousand yes we do spy on european business because we believe that they bribe people it's necessary for us to do that to stop bribery you mentioned angela merkel and the phone tapping incident siemens is one of the businesses being targeted apparently by the n.s.a. what does that do actually for relations between russia between the u.s. and germany and indeed the u.s. and other european countries well i mean it's going to be very interesting at the moment or in the middle of negotiating the transatlantic trade and investment treaty i suspect that there may be some clueless easy enough to cleanly political cooperation agreement that the u.s. is not going to like very much glenn help damaging is this sort of industrial

he is saying that, you know, if he wants to talk to the german chancellor, angela merkel, he can pick up the phone and call her. they are not necessarily going to spy on foreign leaders. but would still spy on foreign governments. i want you to listen to the distinction that the president made. >> now, let me be clear. our intelligence agencies will continue to gather information about the intentions of governments. as opposed to ordinary citizens. around the world. in the same way that the intelligence services of every other nation does. we will not apologize simply because our services may be more effective. >> isn't that an important distinction here? i mean, he does give some assurances that, you know, this is not going to be something that's going to be done willy-nilly here. they have have to have some sort of national security concern, if they're going to look at these foreign leaders and foreign governments. and he makes that distinction. >> well, we heard a lot of lies here in this speech by obama. he said, for example -- >> how so? >> the national security agency has never

an angry angela merkel even compared n.s.a. surveillance to the stasi era. saturday at prater graten-- a beer hall in what was once east berlin, we met cardiologist henrik thomsen. he was 19 when the berlin wall fell, and with it that surveillance state. >> we had it and we didn't like it. so we don't want it. you know we don't want anybody trying to get to know what we do or what we think. >> reporter: at the 100-year-old clarchens ballhaus. social worker andreas klein voice not only that disappointment, but a dismay that their long-time ally doesn't grasp german frustration or even seem to care. >> ( translated ): they don't understand the fears in europe, and specifically in germany. ever since 9/11, my impression is that america considers its priorities about security to be more important than considering our concerns about privacy. >> reporter: to explore those deep concerns about privacy, we went to visit the headquarters of stasi, east germany's feared it kept files on millions; and persecuted, jailed and killed thousands; at just this central berlin

up, it is a battle for angela merkel's handset.t the most secure mobile devices and which one might end up in the chancellor's hands. stay with us. we are "on the move." ♪ >> i am francine lacqua in london. this is "on the move" on bloomberg television, streaming live on bloomberg.com, your tablet, phone and any windows phone as well. htc's fourth-quarter earnings missed estimates after taiwanese mobilephone maker faces mounting competition. isting me for a closer look -- joining me for a closer look is richard. great to have you on the program. talk to me a little bit about smartphones. it is a very crowded market. very difficult market. how do investors play this? do you need to go for the guys that do the media content or the apps? >> to be honest with you, even some of the applications, you can see some commoditization around that space. the place where i would be looking this year is right at the top of the chain them in the ecosystem. that is basically the glue that holds all of these applications together. it holds the user

intelligence agencies had been listening to cell phone calls of german chancellor angela merkel. then main communication links for yahoo and google. the story underscored the nsa's ability to spy on packed powerhouses without their knowledge. at the end of the year snowden told the washington post he had already won because as many leaks had fueled a vigorous and high profile public debate. david shuster, al jazeera. >> later on jake ward will show us how tech companies make money with your data online. >>> now to cyber-attacks. stores and commerce at risk as hackers continue to strike. mark schneider reports. >> it's looking more like target and neiman's aren't the only retailers hackers are going after. cybersecurity firm intel crawler, says it has alerted other retailers about breaches. six that have not been named. it's the same type of software that was used to steal millions of customers information from target. >> atm, cash, that's it. i can't do no other way. >> you have an atm card but you don't use it at the store? >> i don't trust it, people can walk by the scanner and

we heard the latest from the german chancellor angela merkel who said the ukraine must protect demonstratorslives. what kind of effect could this have on the conflict? >> i do not know what kind of effect it has on president viktor yanukovich, because since the 17th of december, when they the mainl with russia, ally in the international arena, and i was just at the office of and therean union, was meant to be talks about a range of issues with different regions of the ukraine, and most of the appointments have been canceled due to the confusion there is at the moment. you can see things that taking up in relationships. >> thank you. a court in russia has ordered the release of the business tightr of a former oriole -- oil tycoon and kremlin critic. in 2005 after a falling out with vladimir putin. it is the latest prisoner release ahead of next month's winter olympics in so she guess sochi. -- sochi. is calling al qaeda for militant factions in syria to stop fighting each other and set up a judicial committee to sort out differences. several islamist groups have often up in serious, fighting

of course there was that famous case a few months ago involving ange ange ange angela merkel.nd also asking for information, the president says from now on that secrecy will not be indefinite. and is ordering further reviews but no concrete steps really posed by the president. and finally back to the fisa court. he say he is proposing putting an advocate for the public within fisa court, so there will be someone there to speak up for the public's right to privacy, del. >> mike thank you very much. >>> and the president also talking about edward snowden. he says the public concerns don't take away the damage that snowden did. >> the sensational way these disclosures havement come out has often shed more heat than light, while revealing information to our adversaries that we may not know the effect of for years to come. >>> he is one of the most famous government whistleblowers in decades, and yet edward snowden began his leaks just seven÷ acrd the official tally is still 1700 today. it is 30% contained, which is a good figure. they do these reports twice a day, so we'll get a g

the angela merkels of the world and our friends? >> no, i don't think it quells their worries at all. it's good that the united states is having that discussion and that the head of the united states government is making that statement. i don't think it reassures them and i want to go back to a point about safety. let's have an honest discussion about safety. that's what the president hasn't had. there was a lot of talk about national security. we know that senators who evaluated classified information and the new america foundation put out a study of 225 terrorism cases. there is story after story after story where there is no evidence that the programs that were disclosed have stopped terrorism. >> was today not right for the administration. this is a super secret program and this was a very public way for the president to address this. >> again, i think it's good that the president is saying the rhetoric he is putting out there. >> i hear the word rhetoric is confusing. >> it's rhetoric and not necessarily a policy change. i thin

barack obama described him as a leader who dedicated his life to the state of israel, and angela merkel praised him for making concessions to the palestinians. merkel said his courageous decision to withdraw israeli settlers from the gaza strip are represented a historical step towards reaching an agreement with the palestinians and a two state solution. and a british law firm are asking the international criminal court in the hague to investigate possible war crimes committed by british soldiers during the iraq war. their complaint calls for investigation into the actions of senior british officials who they say did nothing to stop the alleged abuse. iraqis filedf complaints of grave mistreatment between 2003 and 2000 eight. they accuse soldiers of subjecting them to constant physical and psychological intimidation. they forced me to kneel down and put my head down. they hit me in the face, the stomach, and on my back. then they whacked me in the mouth. i also felt them giving me electric shocks on my back. thebritish law firm and berlin-based european center for constitutional and hum

, a german newspaper reported snowed eneden document indicated that they had been listening to angela merkel. then the washington post reported the nsa had typed into the maven communication length if underscored the nsa's ability to spy on tech power hours. snowden told the washington post he had already won because as many leaks had fueled a vigorous and high-profile public debate. he indicates he planned to feed them to the media bit by bit to keep the focus on government surveillance. >> david, thank you. you i spoke to the general i asked him who should hold the in the meta data the nsa stores? >> it's assumed if congress en acted a meta data program meaning nsa no longer holds it, they would require the phone companies to see hold it for five years why does the records of everyone we talked to and who calls up and how long we speak to we did nothing wrong. there is no reason for the state to be keeping it or requiring that it can kept. only to be able to to have done things that are wrong, plotting terrorist attacks should be monitored for surveillance in a healthy and democratific sit

the social democrats are heading up that amount they are angela merkel's coalition partners. >> someay it is a step in the wrong direction. >> wind turbine countries like this one will see orders slip this year. just and that would end subsidies paid and dissolving our official rising levels, forcing these energy sources to compete on the free market. the government hopes to better coordinate the switch to renewable energy and curb rising electricity rises, but the opposition and environmental groups warned that the momentum toward green energy could be stopped. >> it is right to discuss the cost of electricity, but not by hurting development in the green energy sector. >> the energy minister says it is important to consider the interests of chairman industry. -- chairman industry -- german industry. >> everyone who has been hurt by the most, will exaggerate their interest. they will say this is the downfall of the socialist -- of civilization. our most important concern is to cap a rise in energy costs. in principle, we are on the right path. >> the debate will continue, with billio

last was anger in germany october when it emerged that chancellor angela merkel's cell phone calls hadbeen monitored. heads of state and government with whom we work closely, and on whose cooperation we depend, should feel confident that we are treating them as real partners. came hoursspeech after it was revealed that the nsa collects and stores 200 million text messages a day from around the world. obama stopped short of ending the bulk collection of american phone data. but he said it would no longer be held in a government database. >> at least 24 people died in a terrorist attack in the afghan capital, kabul. a suicide bomber blew himself in a restaurant popular with foreign aid workers and diplomats. he forced his way inside and opened fire on the diners. the foreigners were among dead, including employees of the u.n. the taliban claimed responsibility for the attack. shook thelosion bangkok on friday. dozens of people were injured when the blast occurred at a protest rally just meters from the opposition leader. along to clearg a path so people could give him donations. i walked

this sounds nice in theory, but what happens when angela merkel gets on the phone with vladimir putin, do you just hang up because he's not necessarily our allie? so how do you make those distinctions? and he was very vague about some of these, the issue in where you house this data. one of the reasons it was in one spot because it allows you to make a connection. if each of the phone companies make it themselves, you can't make the connections anymore. >> we asked you about this and got one from a fellow appropriately named stephen covert, and he said, why hasn't the congress done anything before this? they knew about the improprieties long ago, why haven't they done anything? >> stephen, i think they are scared and cowardly. they are worried they will be called soft on terrorism, that they will be said to be unpatriotic. if they do anything that goes toward the civil liberties end of the scale,ive seen less oversight on capitol hill as a result, and what you see in general, even as we approach a reauthorization of the patriot act is the sense that, yeah, we can take some steps but d

and that's significant because we saw such a blow upfrom angela merkel from germany -- she found outhat she had been spied on. and that is to prevent that kind of thing in the future. >> how will this effect the president's address on friday? >> yeah, the senate judish eyre committee is cared by a democrat from vermont who is paired with a republican who make their own recommendations. and some of the ideas that they have are very much in line with what we'll hear from the president's panel, including the bulk collection of phone data by u.s. government. so this will be a chance for the presidential panel to get some publicity on this and talk it through right before the president has to deal with his own version of the proposals. >> laibibby thank you very much. >>> thomas drayton has our next report. >> reporter: with the threat of another government shutdown only days away the house and senate announced a $1.1 trillion spending fwhal will keep the country running through october. the bill drafted in december by democratic senator patty murray and republican congressman paul ryan i

where today's speech may find greater attention is in germany, where the tapping of angela merkel's phonengered the country. attempts to calm fears and ellimb nate anger, the damage caused is great. it will take significant action to restore the faith of many europeans who now question america's friendship. >>> and right here at home president obama signed a 1.1 trillion federal spending bill, keeping almost every government agency funded through the end of september, and scales back automatic spending custody, known as the sequester which hit the pentagon and domestic programs. now congress faces a challenge of whether to raise the federal debt ceiling. >>> a blaze continues to burn for the third straight day. 1800 acres scorched, by fires started by campers. 300 homes are understand mandatory evacuation orders. california governor jery brown declared a state of emergency. california is in its third-straight year of below-average rain fall. melissa chan looks at the impact the dry conditions are having on industries. >> in the city of willett in the heart of the forming country pt the dr

the highesthed political rounds in germany when chancellor angela mel or -- angela merkel and other headsf state had their phones bugged by the nsa. she and the brazilian president asked the u.s. for a resolution to safeguard internet previous -- privacy. also taking reaction in the borders forcing large incident companies to store locally gathered data inside brazil. edward snowden offered to help brazil investigate u.s. spying on its soil in exchange for political asylum. in internet speak, a selfie is when you take a picture of yourself with your mobile phone and post the photo online. it has been chosen as the oxford dictionary's word of the year. -- a social networking mode -- must, narcissism for some, and for others it is a way of updating your every move by posing in front of a mirror or by holding your phone out in front of you and pointing the land that yourself. in the bathroom, a concert, on holiday, during a rally, or even in space. the trend has been very popular in showbiz land but also popped up where you least expect it. , named head of the catholic church a few months ea

"old lang >> german chancellor angela merkel laid out her plans for the new year in her address. is urging people to get involved. to do to makelot germany's strong for the future. my priorities include getting our finances in order before we pass them on to the next generation thomas successfully transitioning our energy policy, and maintaining a good working and social climate in our country, especially because our society is getting older and more diverse. >> palestinians celebrated as 26 prisoners released by israel arrived early on tuesday in the west bank. abbas welcomed them and made a promise. >> we will not sign a final peace deal with israel until all of the prisoners are released. >> the peace talks, revived this summer by u.s. secretary of have sincekerry, stalled. john kerry is due in jerusalem for more talks later in the week, to press both sides to agree on a framework peace deal, but a major sticking point remains. to build more homes for settlers in the west bank and in east jerusalem. >> on the first day of 2014, latvia became the 18th country to join the euro z

. >>> angela merkel brok fell whie skiing and is recovering from pelvic injury. >>> the leader of sudans visiting juba as it carefully watches its neighbor. >> conflicts in the south will drain our resources here in the north. >> i have friends in the south. we're still one people and it's bothering me that they're killing each other. >> the south sudan need sudanese sudanese just like us. what affects them affects us. >> reporter: sudan's economy relies on the revenues of its pipeline. >> if the war condition continue pipeline will be cut and that will affect the sudanese economy and that will double the sense of the crisis. >> reporter: south sudanese officials promise they will keep the oil flowing, but that's not good enough for sudan. >> the security of the two countries is inseparable. if you're asking about military intervention, i don't think it's an option here. >> reporter: they're saying neutral about the conflict in the south one thing, but staying idle and not helping to find a solution is a different situation. >> you cannot know what will happen in the future if this conf

angela merkel has fractured her pelvis in a cross-country skiing accident. a spokesman for the german chancellor confirmed the accident happened during her christmas break in switzerland, which will force aides to light in her schedule as she begins working a new grand coalition government. now, he grew up in poverty in africa, but went on to become one of the world's greatest football players. tens of thousands of people today the rain in lisbon to bid a final farewell to eusebio. >> tens of thousands of fans pay tribute as his coffin was driven around. outside of the stadium, his iconic statue is covered with scarves of his longtime club. team.is a symbol of the i am a fan because of him. it is sad to see an idle leave us. player, aa great great man, and above all, the king by the way he plays and the strength and effort he put in. his ambition, and also because he was humble. >> after the stadium display, eusebio's family and portugal football greats and current players gather for a ceremony. widelymer striker is considered as one of the best football pla

and this is something completely angering. >>. >> warner: has angela merkel's government received any satisfaction from the americans on other these issues other than not spying on her cell own? >> honestly so far not. we haven't had the progress we need and we hope we are able to manage it until the chancellor has her visits in june in america. we should continue our cooperation because there are much more important things the. i hope that we can focus on the more important issues among all these problems then about one. >> warner: speaking of mr. snoebd, there's something of a boom here to grant him asylum. can you imagine that happening in germany? >> no, i don't think so. if he would be invited to germany we would deliver him to the united states of america because we have an agreement with america and we still believe in this agreement and that means that we trust each other. i trust also the legal system in america that they would take care of him. >> warner: so what would the chancellor say to secretary kerry on this n.s.a. surveillance question when he visits tomorrow? >> we d