what do we know at this hour about why james murdoch stepped down? > well, the official version is he has stepped down to concentrate on the television side of mr. murdoch's business back in the united states. but i don't think anyone has any doubt that it also reflects the steadily-building pressure on james murdoch the son personally, on rupert murdoch, on the entire enterprise by these growing circles of allegations about all sorts of ethically questionable behavior here in britain. >> ifill: you talk about ethically questionable behavior, a lot of fallout from that just in the past six months. do we know whether james murdoch himself has been or is likely to be implicated directly in these schemes? >> i think the likelihood is no. certainly in terms of being personally involved in things like the phone hacking, these alleged... in fact now recognized corrupt payments to police and other officials, that didn't happen on james murdoch's watch. he wasn't in charge in the time. it's a little like watergate. the issue isn't the crimes or the alleged cr

even if that means james murdoch has to leave the company, so be it. >> it was james murdoch who decided on the closure of the "news of the world" last year. when his father came in to launch a replacement, james was nowhere to be seen. he said "with the successful launch, news international is a strong position to build on its businesses in the future." his father said "we are all grateful for james's leadership where he has made contributions ." >> i think it was time to move on. he has been a success in television, particularly with b sky b had done no more newspapers. >> this looks like the latest attempt by news corp. to put the murky past at its british newspapers behind it. there is an ongoing investigation for potential corruption that "the sun." there is a full-blown inquiry into phone hacking. >> you are watching "bbc world news america" still to come -- writing to victory in michigan, mitt romney ekes out a victory in his home state but will it be enough to quiet the critics? in australia, tehran apology has been called for the unmarried mothers who were forced to give their b

. >> for sure that is what murdoch and james murdoch told me and would like to put them behind them. remember rupert murdoch, was in the house of kingdoms said it is the most humble day of my life. >> rose: anything that happened in your hacking scandal diminish your support for james murdoch? >> i mean how could this happen when this happened in a newspaper, how could this be affecting my relationship with james murdoch? he was not involved in that process at all no, he made decisions and the families in the uk and he is settling with everybody else. so my support to james is there because they are not involved in it. i will say the people that are in that bogs should be fired completely. >> rose: you suggested to the people this he should fire rebecca brooks and she was fired immediately after that. >> rose: so you were responsible for her being fired. >> no, i don't claim that at all because rupert would not have continued with them anyway but ethics and moral are very important to me in any dealings and i know james but not involved in the process at all. >> rose: what do you thin

james murdoch, the man in charge of news international has quit his job.ow based in new york, rupert murdoch's young assange is an executive with the parent company. he will now be concentrating on the television business. there is some flash photography here. >> it is a move full of symbolism. james murdoch's day-to-day involvement with his father's newspapers and did last year. it comes as a relief for him. he does not have his father's passiond so that he gets out of the firestorm. hacking was a news of the world. while they kept asking questions, he was a forced to admit to mistakes, in one case with his father by his side. >> with the benefit of hindsight, we can look at all of these things. if i knew that what i knew now, we would have taken more action and move faster to get to the bottom of these allegations. >> he is not the first executive to go. rebecca brooks, the managing director quit last summer. since then, the scandal spread with allegations of corrupt payments to police and other officials asked by journalists on the "sun." that is a prob

you said james murdoch's announcement don't really affect your buy rating. >> that's correct.e been shrugging off the news the past couple of months and focusing op the fundamentals of the company. we think what happened is clearly the company is trying to move beyond this phone scandal. and i think as they presume here, it's important to show that james murdoch is completely detached from the ongoing investigations, which are still -- the company's said to be cooperating with the authorities in the uk. and investigations also in the u.s. >> what's your take on the company overall? >> a number of catalysts here. we see the cable networks are firing on all cylinders. we see advertising, subscriptions, digital streaming, all of those engines are very important. and beyond that, we would think the company has a significant amount of cash, and capital to shareholders, buybacks could decrease by about 10%. by the end of the fiscal year. potential dividend increase on the cards. so put all this together and we think that the fundamentals are as solid as they might have ever been. >>

james murdoch, seen here with his father last summer regard are the scandal that plagued the elder murdoch's news of the world publication. james murdoch plans on expanding international television services. >>> anonyus no longer a global police sweep leading to the arrest of 25 suspected members to of the anonymous hackers group. interpol says national law enforcement carried out the arrest this morning in argentina, chile, colombia and spain. >>> coming up, you don't know no jack. th cethaltne k akthe i.d., just ahead. e >>> welcome back. you ever have a fake i.d.? >> i have to admit, back in the day i did, a long time ago. >> i never v. >> a couple times. >> a warping if you have a fake i.d. here is something to think about. make sure it has your picture on it. >> but a man in brazil apparently did not get that memo. check this out. this is the fake i.d. that he tried to use. yeah. no, that's not the guy that is jack nicholson's picture. jack kind of popular. the 74 yer8d man t-year-old man open up a bank account from the three-time oscar win and 12-time oscar nominee. bonehead move. got

. >> pelley: rupert murdoch may be among the world's most powerful media titans but today his son, james, stepped down as head of murdoch's british newspapers. a journalism scandal is widening, amid allegations that murdoch journalists hacked cell phones and paid off police to get tabloid scoops. jim axelrod reports, that puts james murdoch in a tough spot. >> reporter: james murdoch has long insisted the hacking was the work of a rogue reporter who tapped into voice mails and e-mails of the people in the news and has consistently pushed back against any suggestion he knew of any illegal behavior. as he did during this parliamentary inquiry late last year. >> mr. murdoch, you must be the first mafia boss in history who didn't know he was running a criminal enterprise. >> mr. watson, please. i think that's inappropriate. >> reporter: the hacking targeted celebrities like hugh grant ask "harry potter" author j.k. rowling, as well as murder victims like 13-year-old millidoweller. she was already dead when a reporter hacked into her cell phone and retrieved the messages, leading her parents

plus the murdoch mess. james quits as chairman of news international. that's the newspaper division, the international one rocked by scandal. is rupert's control of news corp. in danger? >> all of that is straight ahead. i'm sue herera with tyler mathisen. "power lunch" begins right now. >>> welcome everybody. join me at the wall here as we look at red tiles on the board. q-4 gdp better than expected. the chicago pmi, a 10-month high indicating business conditions in the middle of the country are better than expected. but bernanke is still cautious on both the economy and the need for qe-3. here's how the markets are reacting to it. and the reactions have been very interesting to watch. let's look at the pulse of the markets right now. let's look especially at gold. look at gold. lower after that big runup and a rise in the dollar and the reaction to bernanke. one of the biggest down days we've seen in quite some time in gold, 1725. it was a good year 1725, down 3.5%. wti crude down on a rise in inventories and the euro falling as the dollar moves up. m

is it fair to say at this point james murdoch is not expected to succeed him and that at some point it chase carey, who is kushlt tcurrently the co? >> i think it is safe to say that james is not going to succeed him and that chase is the person in line to get that job. rupert's stance right now is even as his own company's internal investigation is throwing up really damaging information about what went on in europe, he's here launching a new version of the paper, sort of sticking to almost 19th century newspaper roles -- the more you see that happening, rupert is just as alone because chase and the new ceo in europe are taking over more and more responsibility. >> and of course we should point out as we look at the stock of news corp that this scandal, while having a significant impact on the shares over the course of the summer, has really not impacted them since then. there have been a couple of good quarters of earnings from news corporation. as you point out, publishing is simply not that important. psychologically very important to senior mr. murdoch, but not to shareholders, is

james murdoch and his role have come under scrutiny amid- britains phone hacking scandal.ews corp. is the parent company of fox 5. >>> back with a live look from wall street the dow is currently a little over 13,000 that is up 42 points, now it is 43 points this after closing above 13,000 yesterday for the first time since 2008 earlier this morning the government issued its report on the fourth quarter gross domestic product turns out the economy grew at a slightly faster pace in the final three months of 2011 and americans earned more income than previously reported. >> good news. >>> what is it now 41? okay. up that is a good thing plus. >>> show down between yahoo! and facebook just as facebook is planning to start selling shares on the stock exchanging, yahoo! is threatening to sue facebook unless it agrees to license some of its patents on several online services the demand is giving facebook problems as it completes an initial public offering facebook is likely to work out an agreement. >>> ywca offers a variety of services to women as young as 17 years old. >> not o

[ laughter ] >>> coming up, why james murdoch is stepping down and also several people who have beenheir homes this morning how they manage to escape these massive flames with seconds to spare. (car horn) paying with your smartphone instead of cash... (phone rings) that's a step forward. with chase quickpay, you can send money directly to anyone's checking account. i guess he's a kicker... again, again! oh, no you don't! take a step forward and chase what matters. get selsun blue for itchy dry scalp. strong itch-fighters target scalp itch while 5 moisturizers leave hair healthy. selsun blue. got a clue? get the blue. according to a u-s state swoman. she >>> just into the newsroom now, north korea has agreed to suspend nuclear activities according to a u.s. state department spokesman. north korea will suspend uranium enrichment and agree to a moratorium on missile tests. this will be checked. >>> james murdoch is stepping down as the executive chairman of the company's uk newspaper branch. news corp said he will focus on the international tv business. his role has come under scrutiny

also remember james murdoch stepped down from the board of the sun and times. to know they knew something was afoot. >> nonetheless, sara, how unwise is it in your opinion to anger journalists at a paper like this from your experience and from writing the book from having looked so carefully at the journal? >> well, i think that what's happening inside news corporation and people have talked about this is that there's sort of a civil war inside the company. you have the internal affairs division of the management and standards committee going after employees, long-time employees, who have essentially been following orders or claim they've been following orders of their superiors. every time you do put one of those people under the microscope, you risk creating a new whistle blower. but i think that has happened already. that this is a train that is left the station so to speak. so i think there's a great amount of risk for the corporation at large. >> yeah. but as of yet of course there is no smoking gun possibly with the e-mail that we so often talk about, but

jon, james murdoch says he now plans to focus on expanding international television businesses. >>> you glimpse of the international space station tonight. if the clouds clear, nasa says look for bright star-like moving object moving slower than an airplane in the west sky around 7:17. you need to look quickly. it will only be visible for about 20 seconds. >>> a brazilian man accuses of trying to open up a bank account with one of the worst fake i.d.s in the history of mankind. this is the dichld, and yes, that is jack nicholson's picture on it. police say the 41-year-old man used it and self-other forged documents -- or tried to use it. this was yesterday. to open up the account. we are told suspect bears absolutely no resemblance whatsoever to the 74-year-old very famous jack nicholson. that's a good picture of jack -- >> i think it is a mugshot? >> that looks like one of his movie pictures. good work there, pal. >>> apple in focus this morning on wall street. business and tech reporter scott mcgrew knows why. >> my guy spent all morning putting the balloons up in the rafters. now we

world update for you some other international headlines in brief james murdoch the son of media baron rupert murdoch has stepped down as executive chairman of news international he says he's leaving his position to focus on the company's global t.v. business and the organization has been under scrutiny since it was. revealed that one of its newspapers the news of the world had been hacking phones to get stories the paper was forced to shut down in july. dozens of protesters from the far right serbian a radical party have gathered in belgrade to rally against membership of the european union the demonstrators march to the office of the country's pro europe president that of boris tadic and was stopped by police and comes a day after the e.u. foreign ministers recommended serbia should become a candidate to join up but the party says it's gathered more than two hundred thousand signatures of those opposed to any trace. let's go back to our top story now here on out see that of the ongoing crisis in syria now the world's media flooded with stories and images allegedly depicting the blood

and a new low for james murdoch who is stepping down from his chairmanship at news international he isng to be working in the new york headquarters of news corp. ... it will be costing you more money to have a checking account a new study says that consumers are paying 21% more in fees for basic checking that's $7.72 per month more than what they are typically accustomed to ... 30 many regulations for banks that make any discounts on these fees prohibitive ... ben bernanke is keeping stimulus effort in place ... the employment rate is still too ominous markets are in the red today after the fed the chair comments gross domestic product shows the economy growing 3% better than expected ... and income gains are stronger than expected as well in spite of the mild winter season you still need to be cautious of carbon monoxide during the winter months ... carbon monoxide poisoning is still a big killer ... my carbon monoxide detector is 10 years old and needs to be thrown out anything manufactured before 2009 should be tossed out ... these detectors only half a shelf life of three years ...

, that is james murdoch received some time back that he claims was at the end of a chain of e-mail that is he hadn't really noticed or seen that talked about this problem sometime back. >> and yet look at the stock. the stock was at $16. it's been a one-way stock -- news corp, still go higher. >> would it be a good time for a spin-off of the newspaper business? >> i'd have to check twitter to see what the man is saying. murdoch is perhaps the most wild card of twitter. he is just amazing. i don't think you want to break up this company. i think this company has a lot of value. i think it's being brought out. a rival cable channel makes a huge amount of money, fox news. it is just a juggernaut. >> the newspapers are -- they talked about a newspaper split for some time. this idea maybe that rupert would go run them and let james take over the rest. but it's hard to imagine that it would come to that. it is a very small part of the company even though it's had an outsized role in its current state. >> but the question is, if there's a need to protect the rest of the company from legal

higher note on the nasdaq on your left, all eyes may be on news corp stock after word we go that james murdochrman. we'll get the latest on early trading in 15 minutes. >>> good morning i'm kristen sze, thanks for joining us. >>> i'm eric thomas. first, we take a look at what is going on outside. frances has been busy tracking accidents. >> let's begin with the fatal in san mateo. >> yeah, we have a fatal crash in san mateo. to give you an idea how business it -- how busy it is, three new accidents in the past few minutes if you are heading through san mateo you want to an individual the hillsdale pweufltd on-ramp to southbound 101. -- hot spot on 880 because of an accident northbound still blocking lanes it has been out there for an hour another accident southbound traffic heavy there at the bay bridge toll with metering lights on backed up towards the foot of the maze more details on other crashes in my next report for now we'll check in with mike to learn more about in wet weather. >>> good morning. live doppler showing the best radar returns moving out of fremont heading down 680 and 880 i

james murdoch became front-page news himself in an allegation of cell-phone hacking. both murdochs were hauled before congress and both deny breaking any laws. james murdoch will move to new york to focus on an international operation. >>> in syria, a group says the city of homs came under the heaviest shelling so part in the government's ruthless assault. these pictures capture the destruction. a man desperate hely tries to pull an injured child from the rubble. at least one person has died so far today. at the same time, no let up in the bombardment. helicopters flew over the city firing on civilians. they have moved into one neighborhood controlled by the opposition. >>> you might forgive mitt romney if he considers yesterday super tuesday. romney eked out a win in a state that doesn't need much delegate-wise but would have cost him dearly if he lost. it's a much needed boost ahead of next week's voetding in ten states. santorum has a solid is in tenn he also tops the polls. in another primary yesterday, arizona, santorum came in a distant second. romney won by 20 p

james murdoch out of here, resigning from news corps international. what can shareholders expect?future of the murdoch empire? next on "power lunch." back to you, scott. >> thanks so much. in the meantime, back to washington and fed chairman ben bernanke. >> i was talking about the european central bank, the central bank, the european banking system is currently being asked by the european banking authority to raise a good bit more capital. and of course, their liquidity situation is satisfied almost entirely -- substantially by the european central bank rather than private markets. >> so that would explain -- because i was confused on page 4, talking about you continue to monitor the european exposure of u.s. financial -- >> yes. >> and so that would be that. how long have you been watching the exposure of u.s. firms to financial -- to the european financial -- >> the european situation is about -- became prominent about two years ago. so pretty much throughout that period. >> the -- i guess my question is then, about the new york fed that gave primary dealer stat us mf global. s

james murdoch, been under skrut nit amid britain's expanded phone hacking scandal at murdoch-owned publicationsy, hey, we're the monkees >> and this breaking news. we've learned davy jones, the lead singer of the legendary band the monkees passed away this morning. word came about an hour ago. we've got new information for you in the scoop, next. but first, that esa lot going on today. here's some things we thought you should know. reverend franklin graham now apologizing to the president for comments he made about the president's faith while on "morning joe." graham said he does not doubt the president is christian but he has issues with his policy positions on moral issues. he also said the president does not have his vote. >>> call it the power of the presidency. the nfl has announced the opening game of the 2012 season will be on wednesday. september 5th instead of thursday. the reason you ask? the president's speech at the dnc is that thursday night. instead vice president joe biden will go head to head with the giants. >>> and lady gaga goes ivy league. she'll be at harvard today to kick

james murdoch is resigning as executive of the newspaper arm of his father's media empire. remove him from the alleged phone hacking at the news of the world. he says he plans to focus on the company's expanding telephone business. >>> apparently the company tried to open a bank account in brazil, with a fake id, using nicholson's picture on it. the suspect looks nothing like the oscar-winning actor. but to his credit, he did use his name. he is now waiting for trial. >>> in tonight's wjz health watch, groups around the world are making rare diseases -- or marking rather, rare diseases day. oftentimes, the disorders fatal and there are no cures. this little boy was diagnosed with san felipo syndrome, two and a half years ago. the metabolic disease causes severe neurological damage. he will eventually lose the ability to walk, talk and eat. his parents are determined to raise money for research. >>> it's your absolute worst nightmare. i mean, complete shock. in the united states, there are 18 children with san felipos, subtype c. nobody lives past the age of 30. >> there are

. >>> james murdoch has stepped down as executive chairman of news international.he company says murdoch is heading to the u.s. to head up a different news corps decision. -- division. >>> apple is expected to take the wraps off a new ipad 3. it would be unveiled about a year after the ipad 2 was launched. and that's your money watch. for more, go to cbsmoneywatch.com. in new york, i'm alexis christoforous. >> coming up on eyewitness news at 4:00. new program on hold. but what does north korea want from the u.s.? >>> reliving the horror? a teen suspect from the ohio high school shooting. >>> damp and cooler outside. what's in store for the first day of march? >> wjz 13 is always on. for the top stories and wjz.com. for instant stories and first warning weather, ,,,,,,,,,,,, [ male announcer ] ziploc presents ziplogic. ♪ 4 pounds of sirloin. but only wrap half... i'll just throw it out anyway. [ male announcer ] we throw out over $500 in food every year. help save more of it with ziploc freezer bags featuring new, improved smartzip. edge to edge protection you can h

and james murdoch has stepped down as executive chairman as news corp.'s news international unit. rupert murdoch's son will keep his job as news corp.'s deputy chief operating officer. and general motors take a 7% stake in peugot. the two hope various energies will eventually save them $2 billion a year. back to you. >> thank you very much for that, seema mody. flat screens and flat soda. herb's double disaster time. herb. >> mandy, standing here i feel like i should be demonstrating a sodastream machine, not actually talking about their earnings. >> oh, that was famous, wasn't it? or maybe infamous now when you think about it. >> their numbers actually are pretty good. guidance was pretty good. stock's getting whacked because -- coming back a little bit because the company come back and said sales of its machines were actually up only 8% last quarter. this is a company that quarter after quarter has been 84%, 30%, 64%, 90%. that had people concerned. the company came out and said, actually, they sold into it. they had a stronger selling during the third quarter which could argue

. >>> james murdoch is no longer running news corps's scandal-plagued british newspaper publishing divisionore he resigned he was executive chairman of news international, the news most affected by last summer's phone hacking scandal. the youngest son of rupert murdoch will relocate to new york where he'll keep the senior executive title. >>> and tonight is the last night net flicks users will be able to stream toy story 3, scar face, young frankenstein and others of big name movies. they're van irk because the company is ending an agreement with starz. netflix says it's not that big of a deal. most of their business comes from streaming tv shows, not movies. i got to tell you, john, still do love those movies. too bad they're losing those. >> oldies but goodies. got to watch them every now and then. >> oldies for me are very different from now. >> ow! kate we'll see you that few minutes. whnt we come back, serious breaking news. one survivor says he could hear buildings ripping apart. live pictures from harrisburg, illinois. more first-hand stories from the devastation right after this. to

say an e-mail telling james murdoch that hacking might be ripe at news of the world was deleted as theompany was migrating e-mail systems. the police investigation into the news of the world began one week later. >>> and nielsen expects two-thirds of smartphone and tablet ownlers be texting or posting as they watch sunday's super bowl game. companies from coke to chevy will be trying to reach fans on every screen they can, not just the traditional tv ads. and of course you can watch the super bowl this sunday on our sister network, nbc, larry, when any new england patriots will take revenge on those giants. >> that's it. dream on! many thanks to cnbc's dreamy bertha coombs. next up on "the kudlow report," the day 2 story on mitt romney's huge win in florida. will his message switch to spending cuts? how about adopting paul ryan's bold tax reform. and today's flap. does mitt care about poor people? we'll be right back with it all. heartbeat, and that it put me at 5-times greater risk of a stroke. i was worried. i worried about my wife, and my family. bill has the most common type of atr

james murdoch has resigned as executive chairman of news corp. news international. news corp. says murdoch will focus on expanding the firm's international tv business. >>> film director james cameron wants to dominate the deepest part of the planet. he has invited cnn along for the ride. we are going to talk about the spot t is the marianas trench in the south pacific. it's very deep. cameron planning to go almost that far in an attempt to be just the third living person to go seven miles deep and live to tell about it we'll have a reporter team with him in the south pacific. we'll check in with them later in the program. >>> want to go to jacqui jeras on the deadly storms slamming into is the country's midsection. i know we've been reporting five people are dead in illinois and missouri. at least 13 others are hurt as well. what do we know about what's happening in. >> we still have a very dangerous situation going on as we speak. in fact, there's a confirmed tornado in kentucky now, which is just west of hopkinsville. this is a dangerous storm heading into a populated area.

james murdoch, the youngest son of rupert murdock, announced that he is stepping down from his positionexecutive chairman of "news international news corps." they've been at the center of a hacking scandal. we're working to get further details and bring them to you as soon as we can. >>> an interesting story coming out of brazil. zain verjee has a story of what could be the worst fake i.d. in history, but for a moment it was effective, wasn't it, zain? >> reporter: some people just can't handle the truth, fred. they can't lie very well either. this is basically what happened. there's this guy called ricardo barros, he's 41 years old. he went off to a bank to open the account. they asked the basic question, can we see some i.d. he fishes out some i.d. and he hands them a picture of jack nicholson, which of course nobody would recognize, right? anyway, in brazil they looked at it and said, wait a minute, this is jack nicholson, not you. it ended up breaking open a case that police had been pursuing for about three months or so. there was a guy out using people's i.d.s, opening credit card

wires -- crossed the wires moments ago, newscorp, parent of fox news channel, is announcing that james murdoch will step down as executive chairman of news international. but he will continue his focus here in the u.s., based in new york city, on expanding international television business of newscorp. that has just crossed the wires moments ago. we're waiting for more background on the larger implications for the company and what it might mean in terms of succession and other issues that may become involved there. bill: in the meantime we're hearing chilling new details in the deadly ohio school shooting, calling -- hearing calls for help after those deadly shots rang out. >> everyone is running away. >> where is the student with the gun? >> i don't know. i was in the cafeteria and everyone just started running. >> do you see the shooter? >> no, i just saw the gun. i'm freaking out man. why? i thought jill was your soul mate. no, no it's her dad. the general's your soul mate? dude what? no, no, no. he's, he's on my back about providing for his little girl. hey don't worry. e-trade's got a tot

threatens the -- i mean, his -- the legal jeopardy of his son, son and heir, james murdoch, gets moreat they're looking at, we have to deal with this in some dramatic final fashion, and i think it will be we have to get rid of the business in the u.k. >> he's heading back to london. thanks. nice to see you, michael. >>> still ahead this morning on "starting point." things got more intense between israel and iran. a new round of finger pointing where israel says bombs that have been planted by iran. >>> gloria estefan is going to join us. she's talking about some of her memories of whitney houston. that's straight ahead. stay with us. what's this? [ male announcer ] quaker oatmeal squares have 46 grams of whole grains... mmmm. ...and a touch of sweetness. you'll be delighted to discover how good they taste. get your free sample of quaker oatmeal squares on facebook. but my nose is still runny. [ male announcer ] truth is, dayquil doesn't treat that. really? [ male announcer ] alka-seltzer plus fights your worst cold symptoms, plus it relieves your runny nose. [ deep breath ] awesome. [