by financial surveys, and if you look at growth, which we expect to be anticipating -- which we expecticking up. if you look at wages, which have been picking up two percent or higher. all of these things suggest inflation will gradually pick up. what i try to emphasize in my opening marks, and is clear in our statement, is that we take things very seriously. picked upcannot be and moved where you want it. it requires some luck and some good policy. we are very committed to making sure inflation does not stay too low. we are continuing to monitor that very carefully and take whatever action is necessary to achieve that. but even under optimal control -- >> what about under optimal control? >> even under optimal control he can take quite a while. the inertia can take quite a while to move. and the response to increasing economic activity is quite low. particularly given an environment where we have falling oil prices and other factors that are contributing downward forces on inflation, it's difficult to get inflation to move quickly to target. but we are committed to doing what is neces

you'd expect a net a rate cut or more at any type of stimulus -- you can expect a interest rate cut ore of any type of stimulus. that is where they are going to focus their attention. >> what does the rest of the eurozone the do? interestingbeen over the past few months is the fact that france, you cannot say it is the core economy anymore. it is very, very weak. absolutely. it is looking much worse on that front. >> kathleen, thank you for joining us. we will look at the chain fight for survival. ♪ >> i am mark barton. plans onghi criticized how to deal with failing banks. he said of the current proposal might be too complicated. leaders are meeting in brussels to come up with a resolution mechanism to ease financial crises. angela merkel will be sworn in for her third term as german chancellor. yesterday she signed a platform. the christian democratic it in a control of key ministry. will alsober cabinet be sworn in. ukraine president and heading to russia asking for a bailout alone for as much as $15 billion. he will meet with vladimir putin in moscow. antigovernment protesters forc

it's exactly what i expected. the fed did -- laid out a three-part test for figuring out if they should taper. the three parts were met. just because all of wall street wasn't on board 20% of our respondents were on board, brian, 55% thought it would happen by next month. i don't think it's a big surprise. what is a surprise to me and just a little bit, is how dovish they were on rates. i didn't think the fed had to go this far in being quite so dovish on rates. apparently they wanted a little insurance because as you know, what are they're really concerned about is the markets believe in that longer term rate guidance so they're very, very dovish on the back end in order to provide a taipg on the front end which they called a modest tapering and saying -- they don't talk about how it's going to wind down but that's the first question for the fed chairman at the press conference. >> not on a preset course. giving themselves some wiggle room. reiterate what's going on in the markets. at first when the announcement

we are expecting to see traffic tie-ups. right now it's not so bad because we haven't seen the volume of the morning rush hour kick in but that is expected to change as we go into the morning. we are expecting people to be late. plan accord iingly. with more on traffic over to danella. >>> megan, that's great advice. for folks traveling in maryland, greenbelt, this is what's happening eastbound good luck road shut down at heartland street. just your eastbound lanes are shut down because of a single vehicle into a pole. if you're traveling westbound good luck road, you will be able to get around it. checking out on i-270 making the trip from frederick, maryland, heading to rockville. travel lanes are open. absolutely clear. continuing to the beltway from i-270 clear as well with a great drive time from i-270 head iingo i-95 that's just a nine-minute drive on the inner loop of the beltway. outer lap clear as well. richard and eun? >>> we are still seeing temperatures in the 30s around the d.c. area this morning. but things are

going to expect 10 billion. but bernanke said if data changes, then we will look at not tapering. so each meeting is going to be -- because what if data cools off a little bit? we've had an extraordinary period of data in the last two weeks or throw weeks, one of the strongest periods of u.s. data i can remember. one thing after another coming in very, very strong. that can't continue. so what happens if data slightly dips in january? you know, what happens if payroll goes down to 175, you know? that's going to open the door to uncertainty about are they going to taper another ten billion or not? but, you know, i think we got over to a certain extent -- >> at least we can spare out of 2014 strategy about when, right? >> yeah. yeah. >> as far as i'm concerned, that is about right and i don't have to have the when discussion any more, if ever again. and for that, so that fact alone, i am entirely thankful. >> that is your christmas present. >> that is my christmas present. thank goodness for that. >>> gold is on t

how big a police presence can we expect? >> reporter: well, just a huge police presence expected here tonight, veronica, and some things, like the bomb-sniffing dogs, the security sweeps, rooftop patrols, those are going to be very visible to the people here, but other things, like plain-clothed detectives with radiation detectors in their palms will blend right in with the 1 million people expected here tonight. one of the world's biggest and most well-known parties. >> love it, just amazing atmosphere. >> reporter: times square, counting down the last few minutes of 2013. those who will brave the crowds will also brave the cold, temperatures expected to be in the 20s. earlier, a final dress rehearsal with the times square ball. it's a sparkling centerpiece featuring more than 2,600 crystals with updated designs for this year's celebration. >> three, two -- >> reporter: and a test confetti drop. >> happy new year! >> well, this is an experience for me. i've never been into the new years in new york city, so this is great. i

and they expect that now the process will go more smoothly. they will certainly be put to the test in the days to come. bertha coombs, nightly business reform. >>> and could projected reforms in mexico open up new lucrative opportunities for american companies. but first, a look at international markets today. >>> the supreme court has declined to get involved in the problems between states and on-line retailers about the collections for sales taxes. in a big review, the high court will not review the suit brought by amazon.com and overstock.com. which urges that by wednesday they have the requirement to collect sales taxes even though the sellers are not located in those states. >>> and meanwhile, amazon.com and founder revealed in a 60 minutes interview revealed the biggest retailer is working on a drone delivery service that he says could be up and running in five years. more on the jetson's like idea, and the hurdles it faces. amon, could this plan ever really get off the ground? >> i see what you did there, tyler, look, these things will

the expected response there.seahawks supporters plan to photo bomb the billboard by taking pictures of them over the display. and then posting them all over social media. but when the fans arrived the billboard was changed to read, super bowl fail, touchdown fail and photo bomb fail. the 49ers fans are working on a new stunt. >>> the 49ers expect some hard hits hits. kick off is at 1:25. >>> the oakland raiders have to beat the broncos today at the coliseum to improve over last season's record. but no matter what happens during the game expect a celebration when the super bowl xviii championship team is honored. some key members of that team from 30 years ago attended friday's retirement announcement by nnamdi asomugha. >>> and stay tuned for the panthers falcons game then at 1:25 we're going to bring you that 49er cardinal game followed by the point after show with sports director mark ibanez. >>> now we move from the pros to college as the stanford football team is in southern california preparing for the rose

this airport is expecting heavier than usual traffic today, about 130,000 travelers expected to passhrough. airport duty manager joe walsh says years ago it seems like they would get a flood of travelers on wednesday, the day before thanksgiving, and that all those travelers would come back on sunday. now he says passengers flow has changed a little bit where people are starting their thanksgiving travels earlier in the week. and coming bag on -- back on sundays or monday the extended travel period has made for a less stressful week. >> i would say less crowded than i've experienced in the past. sometimes i've been in lines that wind through the entire airport. we had relatively breezy security so we got lucky. >> the chp says you can expect highways to be more congested than usual for a sunday. 4.4 million californians drove more than 50 miles to celebrate thanksgiving. many of those people will be on the roads to head back home by car and chp plans to have a heavy presence on bay area roadways to make sure everyone gets home safely. live at san fransisco, allie rasmus, ktvu channel

those looking to get high can expect to pay hefty prices as demand is expected to be massive while supply will be limited in the first few months. plus, the state will collect 25% taxes. plus the regular 2.9% state sales tax. likely between $250 and $400 an ounce. >>> well, could johnny football be going pro? and tim tebow has a new gig. it's all ahead. plus, for all you adrenaline junkies, it just doesn't get any better than that. you're watching "early today." >>> in england sunday, competitors gathered for the 2013 car jumping title. some of the drivers have been on the road crashing and jumping cars for years. others for just a few months. the winner did not win any prize money, but they did get bragging rights and a large trophy. >>> let's go ahead and check in with my good friend richard lui for some sports. it must be a guy thing. >> i was about to say, that's every teenage boy's wish, that they could do that. drive a car over five or ten different cars and make it. >> absolutely nuts. >> i'll have to wait. good stuff to watch though. johnny football going pro. johnny manziel is he

san jose expecting 71. breaking the old record of 70 for today. livermore even expecting 73. but here's the thing about the records. in some cases, these records have been standing for years. 1901 was the last time we have seen a christmas this warm in the bay area in san jose. even in livermore, you have to go back to 1914 to find temperatures that revel this. we're talking about some long standing records that could be broken here as we head through christmas day. and the beautiful thing about it, you lived through it to tell the story. this is going to be really one of those christmass that will go down in the history books. 2013 one of the warmest christmases in the bay area. so how about that? right now we are looking at temperatures not really warm in the 30s and 40s. it's hard to believe we're actually going to be in the 70s later on this afternoon. even yesterday the valley got into the 70s. same thing for today. low 70s there. east bay expecting the same thing. san francisco, i think downtown you'll see temperatures that could revel those that were set back quite som

stronger than expected. it is in line with our expectations.s turning around oversees a little bit. that has been a confidence boost. >> what was the surprise? >> if there's anything disappointing it is the figure. it looks like it was revised down 4.6 year on year. previous was 5.1. they were expecting an improvement. we still do not find any evidence that corporate are starting to get confident about the sustainability. it is wrapping up investment. that means a worry where consumption will weaken. they have to pick up some of the slack. >> when you look at the small figures, they're coming in for nonmanufacturing for the month of december. what would you say are the they faceallenges compared to the large ones? it is the increase in prices that is coming from higher oil prices due to the weakening yen. small firms typically do not have as much pricing power. when the yen pushes the spot, it hurts their bottom line. >> would you say this is indication or an that they're moderately chugging along? >> it is not really change the picture. this h

i don't even expect a median bargain. i expect a mini bargain. >> they want to avoid another looming deadline where another government should dow would be pending. >> the sequester was designed to be the worse of all possibly fiscal policies. so unacceptable that both political parties would runaway from it like scalded cats and come to an agreement. >> but congress couldn't agree and the cuts kicked in. another round hits in january. representative jim moran blames the dysfunctional congress for the cuts which hurt his northern virginia districts. despite his skin in the games he's on the side line, which he finds a frustrating place blob my expectation will be that they'll wait until the very last minute, december 13th, then they'll dump a bill on us with no time to even read it, let alone deal with it constructively. >> the two most important people at the table are congressman paul ryan and democratic senator patty murray of washington state. >> we're going to find the common ground between our two budgets that we can

that is a very large drop indicating bernanke is managing expectations in a way not causing traders to run out and to panic. the bottom line, this was an almost perfectly crafted statement that clearly said first, low rates were going to be around for a very long time, and second, clearly said that there is no preset course for this taper program. so if the economic data worsened, the fed could stop the taper program or even reverse it. the fed thread of this needle as well as can be expected. >>> we turn now to mohamed for his prospeerspective on today's decision, he's the director of pimpco the world's largest bond fund. i know you think the fed did the right thing. tell us why and what does this mean for consumer investors and businesses? >> it means the most for investors. mr. bernanke gave investors a big christmas present with three parts to it. he removed the uncertainty when the fed will taper and how. in fact, in the press conference, he even gave us a road map for the next 12 months. second, they compensated what they are taking away with a lot, in particular they said intere

the draw was less than expected. i think there were a lot of natural gas traders considering the trend of the inventories was that we had been seeing larger than expected draws so my guy in the crude actuall was talking to me on wednesday about the fact that he was expecting a large draw considering the cold temperatures. but also the other thing at play is just that these temperatures are going to be somewhat short lived from what i saw. we're going to be back to more normal type temperatures. albeit frigid winter type temperatures not these single digits. so i think there were a few contributing factors there plus the market possibly just a little overextended to the downside on thursday. and so yeah, a big rally and newsworthy as well but multiple contributing factors as well. >>thank you and stay warm. >>thanks. you too as well. a serious snow storm is forecast for this weekend that could distrupt holiday shoppers and travelers. justin povick of accuweather is here by skype-- justin just how dicey will it get? >>

they beat expectations.onsistente really with a tone that we have seen over the last few months, stability rather than acceleration in growth. what the markets are concerned about are the key risks that may come from the policy reform environment. many of the measures from the third plenum are positive. but they do raise some questions on soe's which ought to be part of the index. attractiveat valuation may be a reason to continue holding some chinese equities. what we are struggling to find is a catalyst to drive those up in a big way. the data may not be sufficient to cause it is really about more stability than anything else. >> great talking to you. we're going to take a break. coming up, we get you to these images on the streets of bangkok. thailand's opposition party quits parliament. protesters tried to topple the prime minister. this is the scene at the moment as the protesters plan to march tooling you lock -- to yingluck shinawatra -- residents. more coming up. ♪ before things get underway for the

expect. the preliminary amounts and again i will be talking about that outside. >> we are anxious to hear if it's going to stick. >> i think it will. >> we will talk about that coming up. >> changes could be coming to the mental health system and we continue the coverage on the death of nelson mandela. how the news reached members of his family. the extravagant gift for the coffee lover in your life. you will have a chance. first here's a look on nbcwashington.com. >>> one of the most coveted holiday items is going on sale at noon. the limited edition metal starbucks card will go on sale at guilt.com. only 1,000 were made. if you want one, be prepared to hand over $450. it has $400 ready to be spent. they made 5,000 cards all of which sold out in about six minutes. forget self control, science is to blame with why people can't turn down chocolate. in pisa, italy they found some people are hard wired to love the taste of chocolate. the reason is that for some people their brain's pleasure cent

they are expected to rise slightly to 318,000.me, a revision to gdp is seen showing the economy grew if a pate of 3.2%. both of those reports will be out at 8:30 eastern time. at 10:00, look for october factory orders. in europe we'll get an interest rate decision from the bank of england at about 7:00 eastern time and one from the ecb at about 7:45. the european central bank is

fed ex expects today's day to be the biggest expecting to deliver 122 million packages online.nce thanksgiving and black monday rose 3.7%. we're joined by brian roberts. the fact that we had such a late thanksgiving, cyber monday is coinciding with the first monday of december which is traditionally the biggest ordering day online? >> very much so. everyone has just been paid the final paycheck before they can feasibly order online to guarantee delivery for christmas. a lot of people have been in the stores, black friday. general christmas shopping anyway. also as well, the sunday newspapers pretty much on a global basis are full of recommendations for decent gifts for friends and family. so lots and lots of impetus behind cyber monday in terms of being one of these massive days. >> do we still need something like cyber monday? we've had black friday, this whole shopping weekend. surely now it's a point where ordering online or going to the stores, we do it all the time. >> yeah, i think -- >> i say next year we don't need to calling it cyber monday, do we? >> a lot of ecommerc

you should probably expect to see these lines today you should probably expect this for the next fourd to be the busiest day. in fact, they expect to see about a hundred and 30,000 people come in or out of sfo today. this-that's what you will notice is when your ride here, there are a lot of families that are traveling. you will see a lot are children here as well. this means set things will be a little sore.slower. you should pack your patience. that is the key word. >> do not bring any gifts that are wrapped. when you go through security, that will make you and do them. just remember, if you are traveling with presencnts. i had a chance to talk to some travelers. >> it is not a holiday, will be back by monday. >> so, you're not going for the holiday? >> yes, so here we are. >> do you mind? >> no, we are okay. >> we just lost a jackies audio. >> after all this time, you should be able to grab your presence. >> all they see is circles and things, they do not know what it is. >> other things--you cannot have a bottle of wine. >> the time is 6:33 a.m.. >> we are starting off with a live

so, what we are expecting potential flooding it's not likely, possible though. near high tide that's around the coast and the bay and especially the south end of the bay so. this is what we're watching for. high tide at 8:42 this morning, five to seven feet off shore san francisco, and then offshore palo alto talking high tide at 10:47 a.m. we're all over this f. there is flooding we'll show it to you. that's about it for now. your seven-day forecast at the bottom of the screen. we're going to talk more about with your new year's eve and new year's day. back to you, peggy and laura. >> it's 4:49. sharks rookie sensation will undergo surgery this morning. it could end his season. the 20-year-old was knocked out of the december 19th game against the kings when he collided knee on knee. >> that's got to hurt. >> he hasn't played since. today doctors at the cleveland clinic will operate to determine how severe that knee injury is. let's hope he is okay. >> and the 49ers, they are getting bad news. they are going to lose one of their offensive line coaches. tim drevn

. >>> and temperatures are expected to drop in the 20, 30s. we'll tell you how cold your neighborhood could get. >>> good afternoon. i'm john sasaki. bebegin with -- we begin with developing news out of santa clara where police rushed to an apartment complex where a woman was shot. janine de la vega is there now. it appears someone is in custody? >> reporter: yes, police are questioning him right now. we're here on granada avenue. police have the royal ambassador apartments roped off with crime tape. they are escorting residents into that complex and right now, they are interviewing people to see if they were witnesses to this shooting. now we know at 11:00 a.m., they received a report of gunshots at the apartment complex. when officers arrived, they found a woman who had been shot. we don't know where but they were able to track down a male suspect. now, we're still waiting to hear from police to find out what the motive in this shooting was. don't know if there was a relationship between the victim and the suspect but at this point, we are h

the whole bay area moves as will be expected. this is a traffic tuesday. we expect a heavier flow.aven't seen that pattern so far. part of the reason is here. in antioch we have a slowdown. we had three trucks in a crash. then the backup started on the antioch bridge. they moved the center divide car to the shoulder. that caused all of this to form. it's going to get worse toward bay point. out of the altamont pass, a smoother drive. so almost shows slowing. down to the area that's where you see the build as well no. big surprises for 84, 680, easy drive. the castro valley y and the slowdown that blip up the dublin grade, that starts right about now on schedule. the pay bridge, i see the drive as well. two bores are open. a little slowing over toward the bay bridge toll plaza. the note here from san francisco on b.a.r.t. trains you have to transfer at bay fair. there is no direct service from san francisco to dublin. b.a.r.t. saying more trains over there we told you and help alleviate the crowd and take them toward dublin. no direct service. you make a transfer you tan make it. ex

the bay area is expected to get that dusting of snow, but the sierra is expected to get a whole lot more. this is what it looked like just about 45 minutes ago. it is snowing. the north shore is expected to get one to two feet of snow by tomorrow morning. pack your patience. traffic is already backed up. we'll check back in with jeff in about 15 minutes. >>> cold impacting. freezing temperatures are likely to blame for a water main breaking. public work crews spent much of the night to prepare this leak. it was chilly out there. once it was done, a mixture of sand and salt over the slick pavement to make sure it didn't ice over. for some -- >>> we're live. explain for us. >> reporter: right now, not as chilly as it was last night, but still quite cold. i can tell you that it was sprinkling earlier. the rain has picked up quite a bit here. some said they're miserable out here, but some the cold is good business. >> storms continue to come. customers will keep coming. >> reporter: 25 years after opening his shop, the rules are still the same. the cold weather gets people thinking about ski

we expect to see that pick up.hat would be very good for the equity markets. >> what i want to know is, you 12 hours since this news came out. talk to me about the clients. what is going through their minds? are there beginning to a about adjusting their portfolios? are they having conversations and working on strategy? >> definitely. --2014, a lot of them expect they are looking for trades in 2014 will be like 2013. we don't think it will. we think the fx changes we see on the back of this tapering will be very significant. it will produce a really good tailwind for european stocks and japanese stocks. nikkei at a six-year high, s&p at a record high, the dax at 25%, is that level of return achievable in those equity markets? >> absolutely. we are murray much overweight developed markets. down becausetook valuations still look a little bit stretched compared to other markets. in japan, we have raised because of this affects affect. we think that could be the best place to be. the sectors we favor are the ones which

it's expected to worsen. by christmas we're talking about wednesday and thursday being some of our worst air quality and this on the heels of 12 days of when we spared the air so keep it easy. >> minor flow. that 12 days of spare the air i think is a christmas song. in the cash lanes, smooth flow, no problem as far as the metering lights go. a slow drive past university avenue. after the earlier traffic break, cleared a car, out of the roadway and again, actually back up as far as off of the racetrack and past university avenue. that's an improvement but light volume around the bay. the south bay shows a light volume, the only issue is north 101. i told you about the disabled big rig, they had to remove it by a tow truck till about 6:45. yeech east brokaw. it's close. anything you'll have an easier drive getting through the area. a smooth flow along the peninsula. a look at the north bay. a nice volume increase southbound is your commute direction. no problems through san rafael and across the richmond/san ra

that number is expected to climb closer to $2 billion.stores last year reached more than $11 billion during the first weekend of the holiday shopping season. >> well online sales are hitting record numbers, shoppers have been spending less on holiday shopping than they did last year. that is according to the national retail federation that says a record of 141 million people shop the stores on line from thanks giving day to sunday. last year, 137 million people shot the same for a stretch but, spending is expected to fall about 3% for the first time since 2006. >> a reminder, to join kron4 for the seventh and will tree lighting hosted by vornado realty trust. it is happening tomorrow starting at 5:00 p.m. at 555 california st. in san francisco. grammy nominated singer carly grey jepsen will perform and, larry chairs karen van ronni lott along with forty-niners markets lattimore and alex boone will light the tallest tree in the city. the event benefits the you see s.f. morning nils will have more on your weather and traffic. >> welcome bac

>> that's the key to politics, expectations. how do you manage expectations? of course, they were high, but they're high for most presidents coming into office. the other thing i'd say, after you take obamacare, which has yet to play out yet, this is a man who got us out of a war, pulled us out of a near depression. you guys are very easy to jump on him because of obamacare. i get back to my point. first of all, who cares what barbara walters thinks? she's been around too long. secondly, anybody who puts the most fascinating person that twerking prostitute, miley cyrus -- >> she didn't make it, though. >> who else did she put on the list? >> prince charles -- the baby, the royal baby. >> okay, good. >> how can a baby be f fascinating? what has that baby done? >> who else is on the list? >> we'll get to that later in the show. >> the baby that sucks on the silver spoon. >> charles. charles in charge of "the five." >> the most fascinating people, that's good. >> because you brought up obamacare, i think that we should roll a little clip from some ads that the ad

about when an applicant or a designer or an owner can expect a response. and so, you know, it is great to say, it is in planning, that pops up on the computer screen, but if it keeps popping up whether it is for four weeks, four months, or a year, it does not help to me the person who is on that project. i don't know and maybe the other commissioners are more involved in the business would have some feedback and that is one of the first questions that i have, you guys have some bench mark and when should a customer start calling, not calling, but, you know, e-mailing and calling and checking up? if there is no bench mark and they say that it is in planning and the good thing that there is a planner's name attached and that helps and then you can at least, the public can hound a particular person. rather than just a whole department. but i think that those or some kind of bench mark would be helpful. >> commissioner walker? >> i want to piggy back on that that has been our desire in working in planning that they give an estimation of how long it is going to

and mid-60s expected. not by the afternoon.ing us we'll feel some nice temperatures out there. mid-60s on the board throughout the week. you can see christmas eve and day and sunshine and highs in the 60s. the lows to the mid-40s and dropping down to the low 30s. jan. >> thank you. >>> the first movie you will like there is a lot of fashion and janu is the fashion plate. it is called american hustle. the opening says some of it actually happened. this keeps us so enthralled it does not matter if it happened or not. it is a subject we can believe in. some believe it or not are cons. and i know who knew, right. >> the central characters in the story are swindlers including christian bale and in the worse come over. bradley cooper his own hair issues and amy adams. and abscam is a scam. we meet everyone. and it is where everyone is conning everyone. and jennifer lawrence a wife is so great. it is part good fellows and candidatedy and well paced. do not miss this >>> inside saving from banks to nebraska this has been good weeks. i'

home depot expects to meet its financial goals a year early. the retailer was targeting a 24% return of invested capital by 2015. instead it will happen by the end of the 2014 fiscal year. the company...popular with the do-it-yourself crowd...also plans to open 8 new stores next year. it's not a pretty picture at avon. the cosmetics company will lay off 650 employees, and end a computerized management system. the technology makeover, launched in 2009, was meant to help sales reps better connect with the company. however, glitches led to a drop in sales in canada. avon shares fell more than 4% yesterday. turning now to retail earnings...costco delivered a miss in its first quarter earnings report, as sales took a hit, and the chain cited higher operating expenses. the stock tumbled over one percent on wall street yesterday. at mens warehouse, sales picked up, but the suit maker says profits are down. its currently the takeover target of rival joseph a bank. the stock fell nearly two percent...closing above 50 dollars. jp morgan chase reportedly

the big caps are expected to be in funds. they are traditional retail products, but they are underneath them typically institutional bar portfolios. although we've had a just say no attitude towards the bond market, in december, we're seeing a lot of tax selling. so these high quality closed down funds are trading at discounts to nav. whereas last spring it cost $1.05 to pick up these bar products, you can now pick them up for 80 cents on the dollar. we know part of that discount is just plain out fashioned retail panicking and selling for the end of the tax year. the third idea is the gold socks. it's not something we would -- you know, we're comfortable making a bit on simply because it's been like a falling knife. surely some of these companies will go out of business. given the big blue chips, some are down 50% this year. to us, that represents happy hunting grounds. >> martin, good to see you. thanks so much for joining thus morning, nice and early. >> thanks for having me. >>> meanwhile, in south africa, the memorial se

we expect the next i.r.s. commissioner to cooperate fully with the ongoing investigation into this scandal. we expect whoever is eventually confirmed to hold those who broke or bent the rules fully accountable. we expect the next commissioner to fairly implement the laws that he or she is charged with executing. to his credit, the nominee has assured me he agrees with me on a topic i feel very, very strongly about, that the i.r.s. should stay out of regulating political speech. let me say that again. the i.r.s. should stay out of regulating political speech. he told me so himself that he agreed with that, and i was pleased to hear it. and so were he to become commissioner, i'd expect him to oppose the extremely misguided proposed i.r.s. rule that aims to overturn more than 50, 50 years of settled law and practice unfairly targeting the speech of those who criticize the administration while leaving its supporters untouched. this proposed rule which redefines what -- quote -- "social welfare" means in order to t

expecting honey. it was supposed to be our wedding anniversary, and here we are like in weather just like chicago. >> to get out of the 39-degree cold, some folks jumped in 104-degree water at the calistoga hot springs. >> you get cold when you step out and then get hot when you get back in and it is good for you. >> walking back into the cold is the hard part. in calistoga, john alston, abc news. >> check this out from in mendocino county. it has been shutdown due to snow and traffic related collisions. this picture also from cal trans is on highway 20. in the sierra chains ar required at 3200 feet for drivers on i-80. there is a winter storm warning that lasts overnight in the tahoe region. elevation above 7,000 feet and expect 1 to two feet of snow by tomorrow. >>> it is not just in the bay area, but much of the united states is covered in ice and snow especially in the south and midwest. four people have been killed on u.s. roads since the storm hit yesterday. schools and businesses are shutdown.

is our bottom line expectation for building performance. your building, while it might not be damaged. will it be sufficient to camp out it? >> we are not quite there yet. >> that's the kind of expectation. >> i think we should pass this along to the audience. there should be design standards. there's a discussion, what should our design standards be for new construction? and the building department, we on caps are going to say, what standards should those be? and there's a group of us that have come up with a concept that hasn't been universally adopted of at some point in the future, this might be 15, 20, 25 years out, where our retrofits and our renovations are implemented at that point. it's not going to happen within next week. but wher

so we've kind of met the expectations as far as the headline business expectation is concerned. euro/dollar, not a huge reaction on that. and we're still pretty much with this 137 handle, as well. 64, remember, the high for the year is 138.30 is where we stand. still another bit of data that's suggests all is okay as far as germany is concerned. leeann banbrex joins us now. jan, nice to see you. we have a dichotomy in europe particularly between the german and the french economy. euro/dollar doesn't seem to care an awful lot. >> at the moment, not. they're waiting for that big truck, the big elephant in the room, really. if you look at the german ifo index coming out. the uaw index is better. but this is really what the real economy is doing and the back stop that the german economy is in reasonably good back step. bear in mind retail pmi in germany has been good for half a year now. if you look at capacity utilization in the construction sector, that's looking pretty good. now it looks like the export story could come together again, as well. it could mean germany moves into a

what exactly can we expect from the jobs report? >> in term turnovers actual number, the median number is 185. the numbers are pricing in perhaps a stronger number. the services number didn't quite live up to the estimate. put that together with the private indicator we had from a.d.p. and the consensus is you can be looking at around 200,000. it is about the velocity and momentum within job growth and whether those jobs that are being created actually translate into spending power. and to that end, this year is going to be the best year since 2005 and you're lookingan at an unemployment rate down around 5%. it will be the correlation between tapering and the guidance in terms of the unemployment rate that really begins to count. >> so manus, what are markets exactly pricing in? >> have a look at the 10-year government bond yield. this is important in term turnovers morning market overall in the u.s. as well. this 3%, we're encroaching on the 3% level. you the highest level in bond yields for three months. the question is this. we'r

claims falling more than expected.k to todd horwitz. todd, good morning to you. we're seeing a continued rally in the u.s. markets. this is all about window dressing or basic fundamentals? >> good morning, carolyn. this is all about still free money, cheap money. there's -- the problem is there's no place to really take money. so where you go is you go with the equity markets. that is where the money goes. even though we had a slight taper, we're still putting in $7 billion a month. >> my colleague in the u.s., dominick suh, he came out with some interesting stats. he said historically, if you've had a really good year like this one with returns of plus 20%, it pays to stay in the markets. what do you want to do? do you want to stick around and help more gains? >> you know what? i believe that we are in a bubble. i think this is a legalized ponzi scheme of free money that continues to push the markets higher. so what i'm saying and what i'm telling my people is i'm not bringing any new money to this market. whatever mo

everybody has to tone down their expectations. this empowerment of murray and ryan, this empowerment of a bipartisan working group, i think it does create a path for us to the defense budget. there are 12 different budget bills that have to be addressed. i think this is an historical agreement, modest as it is. it does not include the big- ticket items, medicare, social security. >> once the appropriators have the top number, i think they will work out those appropriation bills in a bipartisan fashion. i think the farm bill will pass. >> it comes into some of the things that we have been talking about. you have conservative republicans who are worried about spending and looking to the farm bill to bring some of the spending down. you have democrats that are offended by the magnitude of the cuts in the food stamps. if this scenario where this kind of murray-ryan compromise can work out the differences? or will they return to some of the deadlock? >> i want to strongly agree with marty on this point. something that is not understood

affect expect that to it -- you can expect that to affect the morning commute. >> that is going to behe main thing on our radar. we have the water main break and that will be mom -- blocking michigan avenue in the northeast section in the city. you have the roadway covered in water. every once in a while, someone will head through their slowly. there slowly.h if you are heading through franklin in the northeast section, you will need to possibly follow police direction. be prepared for closures and police direction. route 5, no big problems or delays. ralph 301 up towards pennsylvania avenue is good to go. 95 is moving nicely through fredericksburg and up through dumfries and dale city all the way through the springfield interchange. 66 if you use that and your morning commute. we also have a shot of 270 two show you where we can show you current conditions. anxiety moving right along on the south bound and northbound lanes. i will send it back to autria and jimmy. i am sure there are a lot of people who will be hitting the stores for returns. that includes john gonzalez. i see the wa

when do you expect that? >> when we look at the data this year, that will suggest a much stronger dollar. it's a very loose monetary policy by the fed which to a large extent was trying to off set the tight fiscal policy. looking forward with a fiscal policy with more growth friendly and as the fed is stepping up, the fed should be more consistent with the strong economic data in the u.s. >> what does more supportive mean? what are some of the targets that you're looking at for the dollar against the euro specifically or against the pound? >> i guess the euro would be expected by the end of next year at 125. this is driven primarily by the change in the monetary policy. the gap between the two will close. as the fed will be tapering, the acb will be watching it. we're expected to gradually weaken below 160. the u.s. recovery is stronger than the u.k. recovery. >> we'll talk much more about the sterling especially against the swiss frank. the head of the european g. 10 strategy at bank of america staying with

and they're expected to go fast.eloaded with $400 enough money to keep decaffeinated haulier long. however, there is a catch. you can't get these cards and stores. you can only buy them on flashed sell website gilt.com. they're also expected to be an even higher demand this year because there are fewer parts to buy. the company is only selling 8000 cards instead of the 5000 cars it offered last year. the cards go on sale today at noon. we still have our freeze morning and a factory and then we will be looking at a winter wind advisory going into effect later on. that will stretch tomorrow morning at where we could see it snow of 500 ft.. 2,500 ft.. reynolds did have the into the overnight hours. a breakdown that portion of the forecast for it is 7 day around the bay forecast coming up to 15 minutes. three plus go to the north bay were kron4's jackie so i saw the temperature goal of at least that's-all only one degrees inside and out here all morning. >>: it feels great out there right now. i know it's still cold. it

expecting honey.was supposed to be our wedding anniversary, and here we are like in weather just like chicago. >> to get out of the 39-degree cold, some folks jumped in 104-degree water at the calistoga hot springs. >> you get cold when you step out and then get hot when you get back in and it is good for you. >> walking back into the cold is the hard part. in calistoga, john alston, abc news. >> check this out from in mendocino county. it has been shutdown due to snow and traffic related collisions. this picture also from cal trans is on highway 20. in the sierra chains are required at 3200 feet for drivers on i-80. there is a winter storm warning that lasts overnight in the tahoe region. elevation above 7,000 feet and expect 1 to two feet of snow by tomorrow. >>> it is not just in the bay area, but much of the united states is covered in ice and snow especially in the south and midwest. four people have been killed on u.s. roads since the storm hit yesterday. schools and businesses are shutdown. hun

this is what you can expect. new year's eve looks good, mild and mostly clear, the clouds are going to clear out of here. new year's day we start the warm-up. 2 to 3 degrees warmer by tomorrow. hazy sunshine out there. and then as we get into your thursday, we continue that warming. a building breeze comes through which is good for our air quality. you want your seven-day forecast, a peek into the new year here at the bottom of the screen. let's check the drive with that fog. it could become problematic. >> good morning. we were talking about the moisture in the air and i was asking about temperatures because first of all we'll look at this view. foster city off the san mateo bridge. a little glow to the lights. low clouds drifting through. let's get a look at the maps as well. across to the peninsula side. a smooth drive. no problems. but we have an issue below us, belmont, actually san carlos. reports after crash at harbor boulevard. surface streets off of the freeway. reports of a motorcycle that went down. re

morgan hill expecting 37.hen it comes to the air quality, this is what you're going to be feeling over the next couple of days even if you do not suffer from allergies or respiratory problems, when you inhale the next couple days you'll feel it in your chest across the south bay, especially where some of the worst air quality is going to be and throughout the north bay. moderate to poor levels expected for the peninsula and east bay. what i want to take you to next, though, is the forecast as we head throughout the next four days. we are expected to improve. you're going to have to wait for it. see by thursday, slight improvement in the forecast and wind here as we head throughout friday. should help to stir up the atmosphere and give us much improved air across the bay area. some good news coming our way. just got to wait another two, three days in the forecast. our microclimate forecast tomorrow, see plenty of sunshine. we have a little bit of cloud cover mixed in as well. san jose expecting 63. morgan hill,