brian. >> brian: caroline shively in our control booth. thank you, caroline.eavour launched tomorrow evening, it's been pushed back. nine lightning strikes were reported near the launch pad last night and you want to know that no damage was done to the spaceship before it heads off into space and for a construction mission at the international space station, it's going to install a porch on the international space station where they do a bunch of experiments. nasa will try again tomorrow night and there's a picture of the lightning bolt they're worried about. the anniversary of apollo # 1's moon landing. one small step to our future. airs 10 p.m. eastern time and we will do a lot of coverage on that particular event here as we near the anniversary. michael jackson's mother and ex-wife will have more time to decide who will take care of the singer's three children. for the seconds time katherine jackson and debra rowe have jointly sought to delay a hearing who could decide who gets custody of the children. had an attorney said a guardianship hearing set for mon

let's go live now to caroline shively in washington for the latest, hi, caroline? >> hi to you, julie. democrats say that the cbo report isn't telling the whole story. demes maintain that expected savings from cutting medicare reimbursement means that the reform will cost 6 billion over the decades and overseeing the costs should cut the price tag. health and human services secretary ka theen sebelius say it's a working plan. >> and the joer all costs have to come down for everyone, so, they have an initial report on one of the initial bills that says in the long-term this doesn't dim the cost curves enough. >> and many complain that the plan will hurt small businesses, and half a trillion dollar in taxes over ten years and the administration tells fox that the taxes would anl affect one or two percent of the population and when you combine it with other taxes and obama tax policy, 39 of the 50 states would have tax rates over 50%. one republican calls the democratic house and senate legislation expand the government bill. >> basically, the both of those bills are

caroline shively is here to talk more about that. hi, caroline. >> hi to you, shannon. the biggest blow from the president healthcare plan comes from report from budget office. the report says the house bill now pushed through would put the u.s. $239 billion further in the hole over a decade. that's a problem for the administration, because president obama says he won't sign anything that is not deficit neutral. they say the cbo report doesn't tell the whole story. peter orszag said there are things missing in the bill to help bring down cost, like a commission of doctor and medical experts to oversee savings. democrats say reduction in medicare payments to doctors will mean a $6 billion surplus. orszag and the president health and human services secretary hit the morning talk shows to explain. >> well, first of all, this is a work in progress, the good news is the house and senate are actively working and share the president's goal that overall costs have to come down for everyone. so, they have an initial report on one of the initial bills that says in the long-term t

caroline shively with more on how they are tracking the threat. >> reporter: flu season may be so farirus also known as the swine flu has never gone away. and it is likely to be a problem this fall when flu season returns. the federal government bringing health and education officials together from every state to talk about the game plan. >> we have to avoid complacency and we must be prepared to deal with whatever the fall brings. >> reporter: health and human services secretary telling state leads are they need to be ready to close schools if necessary. hospitals across the country should all prepare their surge capacity, at built to taken dozen, maybe even hundreds of sick people all at once what we need to continue to remind all americans about the things they need to be doing each and every day. washing their hands, coughing into your sleeve. if you are sick, stay home. if your kids are sick, keep them home. >> she says the summit is not about raising fears. it is about preparation. health officials say a separate vaccine for the h1n1 virus will likely be offered to the annual se

fox's caroline shively is following the latest developments. >> reporter: sarah palin said when she askedip it was four yeses and one hell yeah. but the political establishment hasn't been so gung ho. the democratic national committee says this continues a pattern of bizarre behavior but even some republicans are trashing the idea. senator liz a mckowky from alaska says palin is abandoning the state. here's part of palin's announcement followed by karl rove. >> you are naive if you don't see a full court press from the national level kicking away a good point guard. here's what she does. she drives through a full court press, protecting the ball, keeping her head up because she needs to keep her eye on the basket. >> authenticities expected and it's also odd. listening to it it sounded like when she talked about the national full court frees and when she talks about the ethics investigation it sounded like she felt she was being forced out and she was running away, that she was quitting the fight. nats never attractive. >> reporter: palin said serving as a lame duck wouldn't help the stat

fox's caroline shively has more on how they're tracking the health threat. >> reporter: flu season may be over but the h1n1 virus also known as the swine flu has never gone away and it's likely to be a problem this fall when flu season returns. the federal government bringing health and education officials together from every state to talk about the game plan. >> we have to avoid complacent and we must be deal with whatever the fall brings. >> reporter: kathleen sebelius telling state leaders they immediate to be ready to close schools if necessary. hospitals should also prepare their surge capacities, the ability to in a dozens, maybe even hundreds of sick people all at once. >> we need to continue to remind all americans about the things they need to be doing each and every day, washing your hands, coughing into your sleeve. if you're sick, stay home. if your kids are sick, keep them home. >> reporter: sebelius says this summit is not about raising fears. it's about preparation. health officials say a separate vaccine for the h1n1 virus will likely be offered for the annual seasonal

julie. >> julie: caroline shively. thank you so much.more and more men and women in the military are smoking cigarettes and it's catching the eye of the pentagon. well, now, there's word of a possible smoking ban in the works. we report, you decide. plus, being able to predict when an earthquake will hit could save countless lives. so far there's no reliable way to do it, but there is a new break through that could change everything. the fox report is back in two and a half minutes. when i was told i had diabetes, i felt amazingly boxed in. (announcer) joe uses the contour meter from bayer. (joe) my meter absolutely adapts to me and my lifestyle. i'm joe james, and being outside of the box is my simple win. (announcer) now available in five vibrant colors. or 100 pringles. both cost the same, but only the new pringles super stack can makes everything pop. the choice is yours. 100 of these... or 100 pringles. same cost, but a lot more fun. everything pops with the new pringles super stack can. which beneful prepared meals. tonight? roaste

caroline shively has the latest from washington. it's a trillion dollar plan. a new report says it will add $239 billion to the deficit. what is the administration saying this morning? >> well, they're trying to spin it. just like both sides of this are, eric. that report you're talking about comes from the congressional budget office. congress number crunchers and says the house bill now pushed thousand would put the u.s. $239 billion further in the hole over a decade. the cbo also says the program isn't sustainabsustainable. this morning, peter orszag, the head of the administration office of management and budget said on "fox news sunday" the president would not sign anything that expands the deficit. it has to be deficit-neutral. so apparently the house bill isn't the final product we're going to see. on "meet the press," health and human services chief kathleen sebelius had something similar to say, saying it was a work in progress. >> eric: the president says it won't hurt the deficit. the congressional democrats say the report doesn't tell the whole stor

caroline shively is standing by with the latest on the debate. hi, caroline. >> hi to you, jennifer. >> the chairman of the senate budget committee says this week that democrats don't have the numbers to pass healthcare reform without republican votes. mitch mcconnell says the gop backing is more than likely. what are they going to do? white house press secretary says they have 80% agreement and they are working on the last 20% but it looks more and more likely that congress will blow pass the president's deadline to pass something before the august restrived by force sestack. the senate will vote after the recess and house leaders it only say maybe when asked if they can get something out this week. you alsoablied down a report from the congressional budget this was weekend that pointed out the president's proposed medicare advisory council would probably only face 2 billion north dakota its first four years or -- $2 billion in his first four years. meanwhile, many republicans say there is a bigger problem. >> members would say whatever else you

julie. >> caroline shively in washington. thank you so much. >> stay with fox news, we'll pay for judge so the mayor's hearing that will begin on monday and bret baier and megan kelly will host the event monday night and fox news reporting, judges sotomayor starts at 8 p.m. eastern time and we'll look forward to the hearings, and controversy about they are employment we'll begin live coverage monday morning. >> it is hot out there. a blistering hot weekend on tap for oklahoma. the mercury soaring to near record levels. triple digit temperatures and the norm in many areas, but a heat advisory issued for much of the state urging folks to stay indoors. demand for air conditioning, putting a huge strain on electric systems, is there any relief in sight? domenica davis live at the weather center with the details. >> yes, it certainly is hot. these are a look at the current temperatures, 102. that's the high in oklahoma city. where they have been feeling the blistering heat the past couple of days and it continues. we have high pre

caroline shively, fox news. >>> sonia sotomayor will appear before the judicial committee tomorrow. the prident complimented her by making calls to 89 senators and is confident she will win senate confirmation. if confirmed she'll become the first hispanic on the supreme court. >>> and two british newspapers report michael jackson's sister la toya believes his brother was murdered. she says she knows who killed the singer and wants them brought to justice. she also says $2 million in cash and jewelry was stole friend his rented home after his death. >>> closer to home, two mother- daughter murders in largo this year are not connected. that's the word from the fbi profiler. police found karen lofton and her daughter shot to death inside their home back in january. two months later, a similar case in the very same neighborhood. the bodies of delor dewitt and her daughter were found in a burning car. police have no suspects in either case. >>> a court date for a d.c. mother accused of killi her four daughters and living with their bodies for months. banita jacks will go on trial tomorr

caroline shively is standing by with the top of the news. >> orange county sheriff's deputies are trying to find out why two monorail trains collided this morning, killing one operator. walt disney executives issued a statement expressing condolences to the driver's family. the transit system which shuttles thousands of visitors around the sprawling resort each day has been shut down. >>> police in nashville are still trying to figure out how former nfl quarterback steve mcnair and a 20-year-old woman were killed in his downtown apartment today. authorities will not say who they think is to blame but they are not looking for any suspects. >>> authorities in south carolina now believe a teenaged girl and her father could be the latest victims of a serial killer terrorizing the area. they were shot in their family owned furniture and appliance store last week. the father was killed at the store and his daughter was taken to the hospital where she later died. police believe the murders are connected to others in the state but have not revealed the link. >> shannon: all right. and for all of

going over right now, we're going to dmek with carli check caroline shively for more. >> president obama wants to reset u.s.-russia relations. mike mullens will be on that chief. he put it this way today. >> we have things in common that we need to work on. afghanistan, neither country wants to see the tall been return to afghanistan. the kind of efforts we share in counterpiracy, counterterrorism. focus on iran. we have areas of difference, i cite missile defense as a big one. >> proposed missile defense system is absolutely is a big one. the most contentious issue standing between president obama and president medvedev. the u.s. may put them in poland and the czech republic, with interceptors designed to shoot down ballistic missiles and radar system. u.s. says it's to defend eastern europe from attacks like places like iran. russia is worried that it will be pointed at them. here is what president obama told the russian opposition paper published today. "we're not building and will not build a system that is aimed to respond to an attack from russia. such thinking is simply a legacy o

let's go to caroline shively live in washington with more details now this morning. od morning, caroline. >> good morning to you, gretchen. this flight took off from tehran. then 16 minutes later it crashed in that field you are looking at. more than 7 a miles away in the middle of a farm. the flight was actually on its way to armenia. all 168 people on board were killed, including the 13 passengers. and about 16 crew members. now, when word first came out, state tv was saying all on board were feared dead but once iranian state tv brought up those live pictures, you knew there was no hope. the impact dug the trenk you are looking at right now. the plane was engulfed in plane. the plane broke into small pieces because of the impact. post most of the passengers on board were from armenia. also from the country of georgia and other nationalities were also on board. we don't know how many iranians were were on there the plane was a russian made caspian jet. it is a russian iranian joint venture. russia is an ally of iran and one of the top trading partners. plane crashes

caroline shively, as we look at these pictures and we hear from eyewitnesses there was a large official at least on the ground, since this is originating in iran, have you got to factor in,

caroline shively with the news from washington, caroline?president biden says the obama administration made a mistake when it comes to the economy telling abc this. >> we misread how bad the economy was, but we're now only about 120 days into the recovery package. >> mr. biden stands by the 787 stimulus package saying it's the right package given the circumstances the country is in. he says the 9 1/2% unemployment rate is too high, but more jobs are coming. republicans and even many democrats have complained at the slow pace of job creation, the vice-president pointed out that the stimulus plan was set up to roll out over a year and a half and to expect some major programs to start up in september. >> over on fox news sunday, things got a little heated between the house majority leader and minority leader over the stimulus. >> we got to understand, we inherited 2 million jobs being lost the three months before we took office. the policies that were put in place, were put in place about 130 days ago. not eight years ago, but 130 days ago. >>

caroline shively explains. >> reporter: call it brewski diplomacy.es, jr., and sergeant james crowley have both accepted the invitation for a beer. >> i know the sergeant told the president he was game and i read professor gates was the same way. >> reporter: sarge and crowley was called to investigate a call to investigate two black guys at the home. it turns out gates was trying to get into his house. tempers flared and gates was arrested for disorderly conduct. >> professor gates begins to be rate the officer and says you don't know who you're dealing with. >> the cambridge police dropped the charges against gates but didn't apologize for at rest. al sharpton says it's important to sit down and talk so others can learn from the situation. >> i think society can move forward bysaying how do we define racial profiling and define abuse of power and let's resolve this because we still havein equality in this country. >> reporter: no word on when they will meet at the white house. caroline shively, fox news. >>> what is a little loan between friends or

caroline shively is live in washington with more. >> hi to you, julie. kent conrad the chairman of the senate budget committee tells that the democrats do not have the numbers to pass health care reforms without those republican votes. the senate minority leader tells that gnp backing is unlikely. that puts the plan at a virtual stop. what's next? white house press secretary robert gibbs tells fox news they've got 80% agreement and they're working on the last 20% and gibbs played down a report from the congressional budget office that says the president's medicare advisory council would only save 2 billion dollar in the first years and points out the cbo does say there's chance for substantial savings down the road and congress is on track to pass reform by the fall, but would take deal cutting. republicans don't like the burden on businesses and a complaint the white house is hearing from blue dog democrats as well. democrats talked about where the u.s. would be without health care reform and republicans talked about what it would like with it. >> not o

caroline shively explains. >> reporter: call it brewski diplomacy. professor-ery louis gates, jr. and sergeant james crowley have eached accepted president obama's offer to join him at the white house for a beer. >> i read that professor gates is the same way and they're both game and hopefully we can get that done in the next several days. >> reporter: sargement cowly was called to investigate a call involving two black guys at professor gates eats cam bridge home on july 16th. opportunity out it was gates trying to get in his own house an he proved it by showing identification. temperaturer flared and crowley arrested gates for disorderly conduct. >> professor gates according to the police report begins to berate the officer, make demands on the officer, talk about his mother and ask you don't know who you're dealing with. >> reporter: the cambridge police dropped the charges aainst gates but didn't apologize for the arrest. al sharpton says it is important to sit down and talk so others can learn from the situation. >> i think now society can try

caroline shively is in washington to explain. >> and chairman of the house ways and means committee is proposing a byproduct of the billion-dollar tax increase to pay for overhaul healthcare. charlie rangel's plan would tax individuals making more than $280,000 a year or couples were more than $350,000. chairman randall says the tax would take effect in 2011 and start at around 1%. the congressman said the tax would cover about half the cost of the program for a decade. the other half come from cuts to medicare and other savings. so far it appears to be getting support from democratic leadership. house republicans hate the idea. house majority leader john boehner spokesman said the less than a country needs is a tax increase during economic downturn. her public and strategist, karl rove, said the tax would allow small-business owners. >> three out of every four jobs in america are created in small-business and what they want to do is tax those job creators. it is a pretty remarkably tone deaf plan. >> about a tax cut or does the money come from? republicans and fiscally conservative de

caroline shively, who is in charge? >> the fda is in charge of bottled water, and the epa in charge of tap water. the report says that they for the most part follow the same safety rules, but with bottled water, you have no idea what you're getting, including contamination levels. tap water has more rigorous reporting requirements. at this hearing they have been talking about some claims on bottled water that it gives you a sense of well-being, that it comes from only the poorest areas, when in some cases it is plain tap water that has been filtered. >> how about the makers of h2om? they claim they play music and sound at their bottling facility which charges a water to certain frequencies. would that the miss advertising? -- be misadvertising? >> i am not a musician, but i do not think so -- but i think so. jane: is this a health issue? >> the gao has issued some recommendations about chemicals in water, but they do not expect any big health problems. jane: thank you. let us know if anything develops. jon: ever feel li

she would face tough questions, here with a look at the potentially stumbling blocks is caroline shively >> every ruling, every statement, every paper and every speech sonia sotomayor has made is fair game in the confirmation hearings tomorrow. the head of the judiciary committee say that things are looking pretty good. >> i suspect that she will be, she will be confirmed, i would hope they make up their minds based on what they hear in the hearin hearings. >> but she'll face tough questions, including on the 2001 statement, quote, i would hope that a wise latino woman with the richness of experiences would reach a better conclusion than a white male who hasn't lived that life. republicans say gender and ethnicity shouldn't enter into any rule and democrats assured that it's the law itself that's in control. from ruling reverse discrimination suit. last year she sided with a connecticut city that threw out tests to promote firefighters, not enough minorities passed. two weeks ago the supreme court reverse that had decision. then there's this, conservative don't like that president obama

caroline shively has more. >> reporter: tap water versus bottled water. according to a report by the general accountable office, for the most part they follow the same safety rules. with bottled water, you have no ideas what you're getting including the contaminant bottles in there, because the companies are not legally required to put it on their laibledz olabels or website. >> olin springs explains the history of their water by saying when joseph was revied from his death bed by drinking the springs water's, the water's benefits became legendary. >> the gao, recommends that the fda issues a quality standards for the additive. tap water has more rigorous requirements and the municipalities are required to post that. bottled water is under the same regs as the other drinks, like juice and sod and tea. they don't anticipate big problems from bottled water like we saw the peanuts. they look at the outbreaks coming from bottled water, why are they spending so much time talking about it. >> there's other issues. >> right now whatter is regulated by two differ

joining us from washington now is caroline shively. d and reception, huh, caroline? >> he sure did. he spoke in woodward, oklahoma, that's only 12,000 people, a pretty good turnout. >> america did nothing to seek or deserve this war, but if we're patient and if we're strong, this generation will do its duty and we will prevail. >> mr. bush also told the crowd that patriotism comes in all different kinds of forms. he spoke about a 60-year-old man from nevada who got a waiver to enroll in the military after hess son was killed in iraq. the man is now serving as a navy medic in the war and a blind man who lost his home in hurricane katrina, but went on to graduate summa cum laude from the university of mississippi. and the president got in a few jokes. after he flew home to texas from d.c., he told the former first lady he was free at lastments she said, yeah, you are free to take out the garbage and free to mow the lawn. i said, wait a minute, money, -- honey, you're talking to the former president. consider that your domestic policy. >>

. >> clayton: joining us is caroline shively to break this down for us.y actually paying attention to what we've been saying on "fox news"? >> apparently so. this is under consideration. the plan is to take money from the $700 billion a program known as sharp and give it to small businesses. this would be a massive shift from what that money has been used for so far. first the money went to auto companies and life insurance companies. an official tells oxus is in the early stages of discussion and no decisions have been made. the washington post details the program as expanding a small business administration program called seven a and the bank owns the company money and the company fails the government would cover the losses. the coverage was raised to 90% and this years thinnest package. small businesses were the focus should be because that's where the jobs are. since the mid-90s small businesses have created 60%-80% of new employment or it there also taking the hits. in the first three quarters of last year 60% of jobs for small businesses. others poi