>> those heldly lockheed martin. >> i'm talking broader here. what would, by what mechanism would the, particularlily, let's say russia and china get legal claim, 100 yards from where we are and we're not party to it. if you can find a company that's dumb enough to drill without being a party to treaty. let's presume for the purposes of your argument, you say go dig. what's the mechanism by which they will assert any right? >> if your hype theet cal. >> it's not a hypothetical. it's real under your rej min you said go out and dig. you just agreed. >> it's within 100 yards. >> let's say it's on the right spot. they are the members, and we're not. they say screw you, u.s. these guys are part of it and they're giving you the claim. >> two things would happen. if russia or china or any other country sger fears with the claim that's made under the offices of u.s. law, then this would be a bilateral problem between the united states and which other country was doing that. they would be infringing on our claim. >> we don't have a claim. there's no clai

why would lockheed martin proceedout at least assurances being provided by law of the sea? >> i don't know that they would proceed. a business makes a benefit, cost and risk analysis. they want as much certainty they can get. there's no question but it's perfectly logical for businesses in this instance to prefer certain. businesses enter into uncertain investments and at some point where they decide that the risk is realistic for the investment, they will go right ahead because there's nothing preventing them from doing that. seems to me the easiest thing in the world if somebody wanted to do it, american companies have got the technology. they're skillful, they've got resources and you can always do a joint venture with another company that is a member of the law of the sea. i don't know why they couldn't. maybe they couldn't get a license if it was a joint venture. i suppose i just don't know the answer to that question. but there's nothing that i've seen that legally in any way prevents them, other than their assessment, as the chairman said, of what the risk is. and th

in fact, bob stevens, the ceo of lockheed martin, talked about this paralyzing effect of where we are right now with sequestration, and he said the very prospect of sequestration is already having a chilling effect on the industry. we're not going to hire. we're not going to make speculative investments. we're not going to invest in incremental training because of the uncertainties associated with $53 billion of reductions in the first fiscal quarter of next year as a huge disruption to our business. and yesterday bob stevens came forward and talked about the fact that they are likely, lockheed martin, is going to have to issue what's called the warn act notice. our large defense contractors have a duty under federal law, prior before 60 to 90 days before a potential layoff occurs, they have to notify their employees that they may be laid off, and so there are potentially hundreds of thousands of warn act notices that could be issued before the november election which i don't know if that's not a wake-up to members of congress, that this is an issue that needs to be addressed now. i d

lockheed martin is still favored when it comes to government contracts. jane king has the bloomberg business report. good morning to you. >> good morning. futures looking a little higher. nothing like what we saw yesterday appearedth. the dow had its biggest day of the year yesterday. money from the european union to possibly bailout spain. there was still some stimulus program on the program to help the u.s. economy. all that giving us the big gain that we had yesterday. we will hear from ben bernanke, what he has to say about the economy. he will testify this morning on the economy. lockheed martin can tease to attract more contract revenue even as budget cuts way on its peers. contracts rose 10% and that is nearly double what we have learned by boeing. the new smart phone by samsung, the galaxy. companies have been in court, accusing each other of copying designs. the smart phone market is worth about $200 billion worldwide. apple is seeking to block the new was phones from htc from hitting the markets. at the new york stock exchange, i'm jane king, bl

tyler, in california alone, lockheed martin's payroll is $3.5 billion. that's a lot of taxes the state needs right now. all matter where you will make the cuts. we can't afford it all. >> you bet it is. jane wells reporting. >>> when you go to finance yahoo!.com today, you will see a cnbc poll. we ask which is the following is the biggest headwind facing the markets right now. the crisis in europe, upcoming fiscal cliff and uncertainty over health care. more than 20,000 of you have voted so far. right now, the crisis in europe is leading the way. 52% to 39% with just 9% fretting over the uncertainty about health care. we'll get another check later in the hour. for now, go vote at finance.yahoo!.co finance.yahoo!.com. >> it is anything but sunny these days. tropical storm debby is finally weakening after flooding parts of mississippi, alabama and florida and then it heads to georgia and headed north. some parts of georgia have been hit with 26 inches of rain. debby has also spawned tornadoes and threats of more. power lines knocked out and crews working t

mcdonald's, lockheed martin and norfolk southern. why these guys?are four companies that should be raising their dividend. the public services group is in the waste disposal difference, on the industrial side as opposed to residential side. if you want to stay away from events in greece and europe, waste disposal here is as farc s can you get. mcdonald's has lost about $10, $12 recently off its share price because of exposure in europe. it's a great entry point into mcdonald's. lockheed martin is in the aerospace/technology arena with a dividend yield of almost 5%, a stock up big today, norfolk southern, they traditionally raise it in july but for the past two years they've been raising their dividend twice a year. a good place to go for dividends. >> the ceo was here with us and he didn't say no about raising the dividends. >> let me ask you both do you think this encouragement to raise dividends or declare dividends changes once taxes go higher? and do you think the dividend tax will go from, you know, 15% to 43%, which is of course what will happ

lockheed martin is warning of massive layoffs if $500 billion in automatic pentagon budget cuts takeect in january as kurnltly scheduled. lockheed is the pentagon's largest supplier. according to reports lockheed could be forces to lay off 10% of the current work force if nears 145,000 and those pink slips go out right before election day. >>> stocks sharply lower on concerns of a european union summit this week will do little to resolve europe's debt problems. we see red arrows with the dow jones down by 165 points. some good news, though. new home sales in may rose at the fastest pace in two years, evidence that the housing market is slowly coming back. it's crunch time for congress on the issue of student loans, interest rates on those loans double to 6.8% this saturday unless congress acts. republican and democratic lawmakers agree that the interest rates should be held steady, but they disagree on how to pay the roughly $6 billion price tag to extend the current 3.7% rate for another year. senators say in an agreement it's close. >>> torrential rain is forecast for days along th

. >>> this photograph is fueling speculation over what is being built at a lockheed martin facility. this photograph shows the advanced development program facility in california. a blogger believes it is a similar type of drone to one that crashed last year. >>> president obama was attending the g 20 summit in mexico. he discussed the crisis in syria. mr. obama spoke with the presidents of china and russia who have ties to syria. he said they are not in agreement over the uprising but believe a plan to stop the violence is in everyone's best interest. >>> mitt romney is talking about what he would do with president obama's health care law if he is in the white house. the candidate talked on the last stop in his bus tour. he said he wants to get rid of obama care but wants to be fair to people who need coverage. he is considering marco rubio as a potential running mate. >>> d.c. mayor vincent gray's choice to lead the city's housing industry was involved in a relationship with a senior staffer in philadelphia. the sources say that michael kelly disclosed the relationship to mayor gra

company, lockheed martin, is prepared to harbor is critical rare earth minerals on the deep seabed, and i personally spoke to representatives of lockheed about this. minerals that are used in a weapon systems, cell phones, and automobiles, and as a non party to the treaty, the united states can mosbacher did cannot sponsor of lockheed to go out and get these minerals from the seabed. as the united states watches, 17 countries have approved exploration plans for deep seabed mining. five new applications will be considered this summer at the international session of the international seabed authority. the nine kingdom, belgium are joining china, india, germany, france, japan, south korea, and seven other nations in commercial exploration of strategic minerals, while the united states watches from a short period similarly, our energy companies are less likely to invest the billions of dollars necessary to exploit oil and gas reserves in the arctic and elsewhere because of the legal uncertainties surrounding the outer limit of the united states continental shelf. the only way to give the co

bob stevens, the ceo of lockheed martin wrote to me, urging that we pass this convention. this is what he said. the multibillion dollar investments needed to establish an ocean-based resource development business must be predicated upon clear legal rights establish and protected under the treaty of the framework of the convention, including the international sea bed authority. other international players recognize the same reality and are acting upon it. countries like china and russia are moving forward aggressively within the framework and several of these countries currently hold exploration licenses from the international sea bed authority. without ratifying the convention, the united states cannot sponsor claims with or shape the deep sea bed rules and that is the critical path forward if the united states expands access and commercial and government interests to new sources of mineral resources. i might adthat lockheed is not alone. the head of exxon-mobil. he expressed the support for ratification and said this. as an american company engaged in the global market fo

in the lockheed martin lobby in north bethesda. go to to www.myfoxdc.com for more and search our house. i want to mention that general collin powell for the second time,ulent his name -- lent his name as an honorary chair. >> wow. >> and actor charles dutton. former congresswoman connie morella and ike leggett as well. >> big names. >> we're excited about it come. out and support it. it's a fantastic cause and we're looking for sponsors and auction items. please reach out. >> going to be a great night, huh? >> yes. >> and we'll have some fox 5 people there as well and celebrities. >> sounds good. >> with that. weather. >> boy, could not ask for a more beautiful day. i'm upset. most of my friends are at the beach today. >> yeah. >> and from rehoboth. mother nature's being kind to us today. the highs today were exactly where we should be temperaturewise and the same as yesterday. we're pretty much on the mark. take a look. 82 at reagan national airport; 80, dulles; 81, bwi thurgood marshal and look at the temperatures now and not too

about 3600 workers from lockheed martin. terms of the agreement were not disclosed. a previous contract outlined was rejected and workers went on strike. breaking may be hard to do. research in motion considering selling a portion of their company. they lost market share to iphone. at the new york stock exchange, i'm jane king, bloomberg news, for wbal-tv 11 news. back to you. >> more hotels are making special offerings for pre-teens. >> many are raising the stakes and this includes spa treatments for those under 13. more baby boomers able to afford the car of their dreams. >> i never had a spa treatment. >> you have to have a mani- pedi. >> 73 degrees on tv hill. how you could enjoy the pool and notion this summer. >> don't forget to e-mail us your response to our water cooler question of the day. do you think the supreme court should repeal the affordable care act? you can share your response on wbaltv.com, on our facebook page, or send us an e-mail to watercooler@wbaltv.com. want to start the day with something heart healthy and delicious? you're a talking bee...

bob stevens at lockheed martin has mentioned the number 40,000 contracts. that would have to be dealt with by him. as was mentioned before, a lot of the reductions on the non-defense side will have to be applied in some form or another against personnel. that presents a serious challenge. i want to take just a minute here to drag you all into the weeds as if you haven't been there long enough already. i, for many years, as peter mentioned, was a program budget official for the army in the pentagon. there are a few things that come down to the practicalities of how the pentagon is going to have to deal with this. i wanted to just share with you a few of them. i've had some discussions with my old community over there. most of those discussions are reasonably brief and sometimes rather harsh on their part and generally end with someone throwing their hands in the air and running for the door. here are some things you need to keep in mind first of all, none of the offices that work in the empire going down to the service reflections that they have have any exp

harris, member of the atlantic council but until recently i was running the european office of lockheed martin for the last ten years, including when ambassador gray was there and we had several pretty interesting adventures together. i want to thank the panel for an interesting discussion, but i have a concern that i'd also like you to think about addressing and we have the institutional discussions about mutualization and building deeper and treaty changes and things like that. we assumed that the governments of europe can actually do what they say they'll do, and i'm concerned that especially the european governments are going to be forced to and will sign up to things that they actually can't implement. can the greeks really reform the state sector and collect taxes? can the italians reform the labor market as mentioned and can they get the regional governments to not run deficits? in other words there are political problems that are very deep and cannot be solved by a dictation from brussels. do you share that concern at all? >> i think in many european discussions this has come down to a

the pentagon and congress should press lockheed martin to reduce soaring cost of their joint strike fighter. the contracts are exceeding their combined target costs by a billion dollars. the senate is pollen through the many amendments of the farm bill -- the senate is plowing through the many amendments of the farm bill. then it goes to the house. sharp just unveiled the largest led television, 90 inches. it is $11,000 and is 3-d ready. 3-d has been a success for may sales perspective -- has been a success from a sales perspective. at the new york stock exchange, i'm jane king, bloomberg news, for wbal-tv 11 news. >> the tv is bigger than my house. the hotel industry is booming. >> that is great news for the maryland economy. not good news for us. the demand leads to higher room prices. how to put a vacation on layaway. >> that will be interesting. thank you. >> 5:23. there was never any doubt that secretariat won the preakness stakes. the official time was in question. >> don't forget to e-mail us your response to our water cooler question of the day. what is your favorite thing to do whe

the defense industry to have to reconsider, renegotiate, re-evaluate 40,000 contracts in just lockheed martin, the only thing that's going to come out of this is positive employment for at least one generation of lawyers, and -- and talking to dino alvarez a little while ago, for general dynamics, the a-12 story which has now gone on for the better part of 20 years should be somewhat instructive. >> all right. there's been so much positive news from this panel, i want to open it up to the floor here for questions, so, again, please wait for the microphone to come to you and stand and introduce yourself. i think we have a question right here. >> ricardo marquez. thinking about the long-term objective if we can get past sequestration and think constructively about reforms, is there something that would be in terms of moving beyond perhaps service centric for-structure, something that would redo the way we have our forces postured around the world and in addition to that is there something we can do in the management side, move past long-term budget and work on the pps programs, two sides that m

hill and when it comes to the top defense contractors there are three names that you should know lockheed martin boeing and northrop grumman but today we're going to pay extra attention to that last company because it's just remarkable how much influence they have on lawmakers here in washington especially when it comes to winning the big money contracts for the biggest and most bad as weapons that our military can handle northrop grumman their response will for the long range strike bomber program a fifty five billion dollars project will replace our perfectly good b two planes that we currently employ one of their biggest claims to infamy is the f. thirty five think you guys remember that one that's the trillion dollar fighter jet that's been riddled with problems well despite their efforts to snag contract after contract from the pentagon northrop grumman obviously feels like that still isn't enough it looks like they want to be the top the number one military contractor see they gauge in a little bit of brazen pocket lining will put most other companies to shame the norther grumman lost a vi

lockheed martin decided wow, you know what? 97% of something is a heck of a lot better than 0% of nothing and they want 97%. they want their 93% and so they've agreed there will be a scale of some amount that will go to the land-locked nations in compensation for the rights of other countries to exploit the sea bed of the earth. we have over a million acres of land out there that we claim for america more than any other nation on the face of the planet. because we have you go automatic, because of the marianas, because the aleutians and because it's extensive and i'll bring in a map one day and it's extraordinary. to sit here and to think we're not going take advantage of that and stake our claim and have our claims legitimate so our companies can go out would be just astonishing. the companies want this. they're ready to pay the royalty because they want the profits that come from the other 93%. they established the royalties. i just had to say it, and i'm afraid you'll cut me off before i respond. >> i'll never cut you off, s

lockheed martin and asked the british government and joined into the british consortium in order to be able to access some place because the united states of america will not stand up for it and represent it through this process to legalize its claims. so here we are sending our countries and to have them stand up for their interests, and put it under exploitation unless they know they have legality of their claim and that's the extend the shelf. the extended shelf we have available to us here is bigger than any other country of the world and are we going to sit here and say is it smart for the united states not to have our companies to have legal assurance to go out there and, mroit our resources. there will be competition for resources and look at what china is doing now in africa and look at what they're doing in afghanistan. we're fighting and putting people on the line and they're there trying to exploit copper. i mean, we have to start thinking about our long-term, strategic interest here and the only way -- if we don't sign up and we have a chance other countries can take us to

i guess i can quote stevens from lockheed martin. they've already started slowing down what they're doing. so guys at some point are going to go back to their banks, where they've had lines of credits for 20 years. this guy has 150 people in his tool and dye shop. akron, ohio. he's going to say, okay, i'm going to reup my line of credit. the bank's going say, do you have that contract signed? no, don't worry. we've had it for 20 years. >> why don't we wait because he's got the occ and fdic looking over his shoulder. why don't we wait until you get the contract signed? i can't wait that long. that's not an exaggeration. that slow down is starting now. i don't think it's an exaggeration. it's not something the defense industry made up. it's not something secretary pi net that made up. if you go out to new mexico where defense spending is really, really important, you're starting to see the slow down there. it's not all just because we're laying off 400 people at lo los alamos. you're seeing people scared and not doing -- you're going t

companies including lockheed martin, boeing, and northrop grumman may send thousands of laid-off workerslayoff notices to workers if congress fails to reach a deal. american airlines will announce another round of management job cuts today. the bankrupt carrier is also cutting back its schedule. pilots are expected to take sick days at a higher than normal rate. american has been trying to get out of some of its union contracts including with its pilots, to cut costs. renting an apartment in the d.c. area is getting more expensive. the average rent is up 3.5% from a year ago in the area. a real-estate firm says that is much better than the national average which is up 6% with miami seeing double that. live at bloomberg headquarters in new york, linda bell reporting for abc 7 news. back to you. >> thank you. it is 5:50 on this wednesday morning. >> let's check in with adam caskey to find out how the day is shaping up. >> a few sprinkles out there especially if west of washington and on the eastern shore. it is not on us, but around us. a beautiful sunrise over the nation's capital. i love

and we just saw space x sitting vehicle up into space this is a joint effort between boeing and lockheed martin. we are seeing private space companies now taking over the mission that nasa once a solely owned in the united states as you watch as the spy satellite makes its way up into the space. now there were delays with the launch because of tropical storm debby that was raining over florida and that storm is now moving out to sea. you can see but left behind. >> mark: now this is in live oak fla., gov. rick scott visited the area present obama has already declared a state of emergency. >> darya: now we want to check out our own weather and traffic with a school to erica first. >> erica: we do have a lot of cloud cover situated over the bay area. and out of his waking up to some morning fog that was evident along the coast line and we do have airport delays. we have up to an hour and 23 minister to low visibility no reports of any delays. now taking a look at the temperatures run outside the door. we see a wide range of 50 for the most part. we have 57 for oakland 55 for downtown san francisc

contractors cited for shortfalls include hewlett-packard, fedex and a technology company owned by lockheed martin a senate subcommittee looking at whether the labor department is doing enough to make sure contractors are falling the following altaffirmative-action laws. horizon workers, if they don't take a buyout, the company has warned the move will result in 600 layoffs. and we are watching finance ministers from the central bank governors from the g-7 holding a conference call to discuss the european debt crisis. stock-index futures ahead of that indicating a slightly lower open. that is business news. live at bloomberg headquarters in new york, linda bell reporting for abc 7 news. back to you. >> thank you. >> let's check in with adam caskey. traffic and weather every ten minutes. >> a little damp outside in southern maryland, a few sprinkles. unsettled weather pattern. if you spotted showers daily through thursday. then we will warm up. >> really? >> it will be refreshing. you can have your windows open most of this week. back to the air-conditioning on the weekend. it will not be intense h

lockheed martin says they've been frustrating in dealing with the white house budget office, don't know what's going to happen so as insurance they're going it send out layoff notices. most of these people won't lose their jobs but this is going to create incredible turmoil. >> this is sequestration. i tell the story about my dad, being unemployed for 18 months, he worked for lockheed in the early '70s, rolls-royce, went bankrupt, chain effect and we were out for 18 months and this case, you've got lockheed martin workers over 100,000 that may be losing their jobs because of sequestration at the end of the year. >> it's not quite that way. what this is is the pentagon won't be specific about what would happen if another 8.5% is cut out of the defense budget and people on the defense industry are extraordinarily frustrated with it. all 100,000 would not lose their jobs. perhaps a few thousand would. this is the way that the industry is pushing back against the pentagon saying you have to give us guidance. you have to plan for sequestration. the pentagon has been refusing to plan for sequ

lockheed martin is warning they melee off 123,000 workers in november, and so -- or by november.e's what's going on. a 1988 law called the warn act says that companies like defense companies must give workers two months' notice, meaning 60-day notice, before any -- basically, before job cuts are in place or, basically, shutting down plants or factories are enacted. so the sequestration, meaning the budget cuts, that are coming effectively january 2nd. so when you do the math,60 days back from that is november 2nd. so that's right smack before the presidential election. so now we're seeing lockheed martin coming out and telling fox business approximately 123,000 layoffs there. we're already seeing boeing laying off about 8,000 worker, general dynamics is talking about laying off workers, and moody's saying that the budget cuts coming are credit negative for the defense industry. but moody's is also saying it has a stable outlook for the defense sector, and it is also noting that defense spending is a post-world war ii highs. in other words, they are also saying that the defense cu

it's friday, june 29th from 7- 10:30 in the lockheed martin lobby in north bethesda.rmation on our website at www.myfoxdc.com. search our house and that is our-house.org. collin powell and charles dutton put their names there, ike leggett and former congresswoman cone morella will be there. we'll have food and music. >> love it. >> things made by the students there and they learn the carpentry trade and get the academic education there. >> although he got older, it's never too late to learn. >> absolutely. >> he had trouble early on and sounds like he has everything together. >> and the young men are from ages 16 to 20 and get a second chance. >> thank you very much. >> sounds like a great night. >>> yeah. >> and everybody can use a double dose of inspiring a. when we come back, we'll show you how a man with no arms and no legs managed to do something most of us would not even try. . >>> and an out of control car careens into the house. find out what happened to that car. we're back in a moment. stay with us. [ female announcer ] with xfinity, you can always expect mo

bob stephen silver at lockheed martin. the multibillion dollars investments needed to establish a notion based resource development business must be predicated not clearly cowrites established and protected under the treaty-based framework of the convention, including international seabed authority. so i'm the one hand you can take a position that the ocean out there, whether it's close to her shorelines or 200 miles and not it's nobody's business. and there is no idea of internationalization. nobody owns it. she simply a question of whether you want to go out and build our non-and your chances. but ms. stevens' status as a part of matter in terms of any american businesses, very few of such drilling will occur that involve hundreds of millions of dollars, if not more, without some legal basis, some assurance, some treaty. as a matter of fact, protection was right. we can talk about all those resources being out there. but the facts are that there is very little drilling for them without people seem very precarious about i

i can quote steven from lockheed-martin. they have already started to zhrow down what they are doing. so they will go back to their banks where they have had lines of credits and he is going to say i'm going to reup my line of credit and the bank is going to say, you have that contract signed? >> we've had it for 20 years. why don't we wait? because he has everybody looking over his shoulder. why don't we wait until you get the contract signed? that's not an exaggeration. it's starting now. it's not something the defense industry made up and not something secretary pennetta made up. if you go out to new mexico where defense spending is really, really important, you're starting to see the slowdown there. it's not because we're laying off 400 you know what i mean loss al most. it's bit-by-bit you're seeing people scared and -- you're not worried just about your 401-ks. you're also worried when your wife or husband loses his or her job. >> we will have one final before our break. could i ask is this more right or wrong? i under

. >> mike, you have an "options action" trade on a fiscal cliff name being lockheed martin. >> it's aense dock. 82% of revenues come from the government and it's not a fiscal cliff and the threat of sequestration that is one of the potential downsides that are unwinding from the war activities and that is historically hit the revenues of defense names hard. we would favor selling the stock or if you are encouraged to use the options, given the volatility and purchase the september and 75 puts, pay 2.35 for those and that's a way to make a bearish bet on the stock. this looks cheach, but there is a good reason. a 5% dividend yield. the market's way of telling you that the stock is likely to have declines and the people are chaseing it bah because of that yield. >> a put spread versus out right put s. there a better way? >> this is not a high implied volatility name and not paying a great deal spending $2.30 versus a stork that is over 80. the key here is that there is going to be volatility in the market and you have a good opportunity to leg into that spread. if you start to see decli

identified the pilot as captain thompkins and his co-pilot both from boise idaho in a model t lockheed martin air tanker like you see here fighting a wild fire in western utah. according to the bureau of land management, the plane and crew were on the 2nd run of the day. officials estimate that the plane was holding approximately 1,600 gallons of fuel in addition to more than 2,000 gallons of fire retardant nearing the fire when it crashed. you mention the age of some of the aircraft. in fact, in 2004 the forest service grounded 33 after a number of crashes. but, today, the local sheriff expressed confidence. >> they use the airport all the time very successfully although the age of the aircraft can be older. they are in tiptop running shape. they keep them in excellent condition. >>reporter: officials say they do not know the cause of the crash. >>shepard: despite the fact did you focus on the maintenance and never the able, are they still working to replace the planes? >>guest: well, yes, a group of senators actually early this year pressured the forest service to take a harder look into th

it was a private venture between lockheed and martin and belly bring >> and it is a classified payload wheat they get is a spy satellite. the launch was supposed to take up yesterday but because of whether it took off today. >>darya: we are looking at the dow jones. we're up 207. right now. but we will be right back. our cloud is not soft and fluffy. our cloud is made of bedrock. concrete. and steel. our cloud is the smartest brains combating the latest security threats. it spans oceans, stretches continents. and is scalable as far as the mind can see. our cloud is the cloud other clouds look up to. welcome to the uppernet. mark >> and and pat stories >>mark: says top stories are a home when that was rich with history was built with flames today. andand >>darya: we're following the fire in san jose but also following the melos station allegations against a press stating that as it is a pastor and his 65 years old. he was arrested late last night when of the latest on that. >>mark: we are watching a huge rally on wall street. the dow jones is up over 200 points. we will tell you what ha

lockheed martin reached a tentative deal with the striking machinist union which will vote on the deal. thousands of workers have been on strike for two months. microsoft confirming it is buying yammer which helps companies develop their own in-house social networks. speaking of social networks, facebook named sheryl sandberg to the board. also making @facebook.com e-mail accounts for all users ruffling some feathers. finally tonight an upset at wimbledon as venus williams lost her first round match 6-1, 6-3. she took six months off after saying she had contracted an illness. some say she'll be done. that would be sad. she's had a heck of a career. >> as a long-time competitive one, even a competitive one i want to say how beautiful those long tennis courts are at wimbledon. in my day there was a lot of lawn tennis. i miss it. >> wait for week two. it will be a mess. >> thanks to brian who's wrong about lawn tennis. inflation versus deflation. is the fed barking up the wrong tree? i will ask richard fisher when we return. down here, folks measure commitment by what's getting done. the

lockheed martin is a big one working on missile defense.me of the information that -- there we go. there are 25 major projects in the silicon valley that are involved in the defense spending. this according to a think tank called the center for security policy. one of them is called muos. a radio system that informs troops what's going on. look at that number. $726 million spent on muos. under proposed budget cuts, we would lose $65 million. the real concern, though, is that budget control act that congress and the president agreed to last year. remember it? it requires congress to control the deficit if it can't automatic cuts what lawyers call success questions train station go into effect. the defense department hasn't said, laura, what it's going to cut if it has to reduce things by 18%. very interesting to watch. thank you. >> 5:56 right now. >>> still ahead, paying more for home improvement projects that aren't in your neighborhood. how much you'll pay to upgrade homes for california college leaders. >>> plus, new details in the brian

recently i was running the european office of lockheed martin the last 10 years.e had several interesting adventures together, with ambassador gregg. i want to thank the panel for an interesting discussion. -- ambassador gray. i have a concern. always when we have these institutional discussions about mutualization and building deeper and treated changes, we assume that the governments of europe can do what they say they will do. i am concerned that especially 3 southern european governments will be forced to and will sign up to things they actually cannot implement. ken the brakes really reform the state sector and collect taxes? can italians reform the labor market and deal with corruption? can the spanish get the regional governments not to run deficits? there are political problems that are very deep and cannot be solved by dictation. do you share that concern? >> i think in many european discussions this has come down to are the germans pushing everyone to become germany? and whether some of the long- term institutional factors in many of these other countrie

. >> a two-month machinist strike at lockheed martin looking to near the end. the two sides reaching a tentative agreement. the union is expected to vote this week. most of the striking workers are at the ft. worth plant where f-35 stealth fighter jets are made>>> a check on the markets. already we see some red arrows. we did see downward drafts in asia and in the early trading. in europe you can see the dow futures are down by 84 points. the s&p futures down by almost 1%. a lot of concerns about what's happening in europe. pointing back to both greece and to spain and we're going to get more coverage on that in a moment. we've been watching oil prices and for the consumer this is the one area we have seen a silver lining in all of had. oil price s as are down 63 cent. still at $79.13. if you've been watching prices at the pump they've been down significantly. the is yosurvey shows they're d9 cents from the peak and they've been dropping rapidly. the ten-year note and you can see the yield is at 1.621%. the dollar this morning is re t reacting mixed this mornin

well this is actually a private venture between lockheed martin and boeing. >> mark: we think it happeneds morning. >> mark: president obama if, on the health care reform long--law ruling a victory for all americans here is what both sides had to say. >> president barak obama: it has reaffirmed a fundamental principle that here in america, the wealthiest nation on earth, no illness or accident should be to any families financial burden. >> obama-care was that policy is today is that policy today. our mission is clear if you want to get rid of obama-care, we will have to replace president obama. >> mark: the full faith and when the health-care mandate does not kick in until 2014. >> darya: we will be back with more to you going on this friday morning in just a couple of minutes. that us take a live look at our approach to the bay bridge that looked really easy for you. >> justine: from the kron4 newsroom we are watching this rocket launch will show you what it looks like right now. this is the delta 4 to blast off into space hopefully this morning. i just had an update from mission control

the wars in iraq and afghanistan have little popular support yet for a handful of corporations lockheed martin, north roman, halliburton are immensely profitable as war is for a certain tiny segments and always has been. war is a racket. i think that we unfortunately have created a world where power is centralized in the hands of a select group of corporations that are more powerful than the state itself and it is within the american political system impossible to vote against the interests of goldman sachs and unless we thwart that power we are doomed because corporations, unfettered capitalism, a great book called the great transformation leaders and turn everything into a commodity. in that sense karl marx was right. unfettered capitalism is a revolutionary force and human beings become commodities, natural world becomes a commodity that you exploit and exhaustion or collapse and that is why the environmental crisis is with the -- if we don't find a mechanism or a way to break the power of those corporations they will trash -- continue to trash the ecosystem to the point at which life or hu

. >> so lockheed martin who is the manufacturer has a second contract to try and fix the planes.tracts to someone who might be making flawed planes? >> i don't know how that contract was awarded. i'll say this. probably it went to whoever was most qualified, knows the plane the best, and can implement the fix. and i think. >> elementing thimplementing th most important thing we can do right now. let's pull back the disciplinary action against captain wilson and we'll be good going forward. look, america owns these aircraft. it's the best fighter in the inventory anywhere in the world. we need it operating at 100% for our national defense posture. i think it's very important we pursue all avenues aggressively. and senator warner and i will continue to stay on this as aggressively as we can until we get resolution. >> kmancongressman, nice to see this morning. >> thank you. >>> still ahead on "starting point," are your kids running you into the poor house? here is the short answer. duh. >> yes. >> we'll tell you how much more expensive it is to raise kids these days. >> a lot. >> y

let our industry go out there, lockheed martin has written a letter to the chairman of the senate foreign relations committee at the oil companies. they want to go forward and develop. the absence of u.s. adherence is preventing that. host: john norton mooreo on the law of sea treaty. coming up