the majority of newport news agree with me.eed to get this done. >> only congress has the power to pass a law that stops these damaging cuts and replaces them with smart savings and tax reform. the second i get that bill on my desk, i will sign it into law, but i have to get congress to pass it. none of us will get 100% of what we want. democrats, they've got to, you know, make some tough choices too. democrats like me. we've said we're prepared to make some tough cuts and reforms including to programs like medicare. but if we're willing to compromise, then republicans in the house have to compromise as well. that's what democracy is about. that's what this country needs right now. so let me -- let me just make one last point, by the way, for those of you who are following this. lately some people have been saying, well, maybe we'll just give the president some flexibility. he can make the cuts the way he wants, and that way it won't be as damaging. you know, the problem is when you are cutting $85 billion in seven months, whic

the president is heading to newport news, virginia, to a navy shipyard.oday the impact there could be significant. late word this morning that the president will bring a local republican congressman, scott rigell, with him. obama is not seen in newport news as any sort of safe you're but rather as the leader of dysfunctional government that is playing havoc with people's lives and people are bitter. >> this is not time for a road show president. this is a time to look for someone who will leave. >> the president really ought to stop come paining and come back to the take and work with us. >> and while there are no 11th hour meetings, no real negotiations, but lots of finger pointing, the president says there is still time for a deal. >> here's the thing. these cuts do not have to happen. congress can turn them off any time with just a little bit of compromise. >> john boehner has just come to the microphones. let's listen. >> i don't think the president's focused on trying to find a solution to the sequester. the president has been traveling all over the

today, president obama was in newport news, va. stressing his case. here is the report. >> along virginia coastline, it seems almost everyone works for the military in one way or another and with a sense of dread about the future. all the ships come to this yard to be refitted and repaired. but the navy has worn them that the looming cuts mean work will be cancelled on 13 ships. three --ny has told 3500 workers they could be laid off. it is a story that could be repeated all over america. >> it could affect a lot of people. not just shipyard people. wohlschlegel down to everybody. the uniformed people -- it will trickle down to everybody. the uniformed people. the diners down the street. it could put this country in the worst depression since the '20s. >> it takes a lot to>> it couldf scare the military, but they seem rattled by the proposed cuts. congress designed these cuts to be so brittle that they themselves would be forced to do a deal, but it has not worked. america is on the brink of crisis once again. >> these cuts are not smart, not .air the

it's no accident he's at newport news.is the significance of the picture we're looking at now and specifically the location? >> reporter: he's at a shipyard where they would feel a quick impact, he'll argue, if these cuts go into effect. and not only -- because there's a very large naval base nearby and this shipyard helps service the naval base. i mentioned that many people will not feel the immediate effect of these cuts. so he's located a place where we would see an up stantinstant ef. if a person loses their job one day a week, that person can spend less money at their convenience store and so on and it -- the ripple effects impact the community, suzanne. i think in the coming days you might see the white house highlight some of the effects to education, teachers and students from some of the budget cuts, maybe even how it could hit your pocketbook with rising gas prices at the same time. those impacts that drive this home to regular folks who are trying to digest what this could really mean on a personal level. but i'

the the shipyard in newport news hired thousands of people to work on this aircraft project and that'sjeopardy. >> michael: who are the people in your community blaming for this? it hasn't happened yet. we'll put that in context but who are they going to be targeting with their blame? >> i hear a lot of frustration generally speaking with the political process. you know, the local politicians on either side of the aisle vehemently oppose sequestration i hear that a deal could be crafted at the last minute to stave this off. >> michael: you report on how important the ship-building industry is to newport news. can you paint a picture to the rest of the country who is not as familiar with it how important it is. >> the shipyard employees 22,000 people here at newport news. that makes it the largest employer in the city the largest manufacturer in the state. you can't overstate the company's importance to this community. >> michael: michael shapiro from new postnewport news press. thank you. it seems that every industry is mobilizing. the u.s. travel agency is saying long wait at airport

we're going to look in on president obama in newport news, virginia.pbuilding and military site down there in norfolk, chesapeake bay area. when we come back, talking about big federal budget cuts among other things will affect defense scheduled to kick in on friday. john harwood is monitoring this and will join us after a quick break. we will take you there to newport news when "power lunch" returns. >>> meantime, ty, gold is getting a big boost, gold up $28, all due to the fed chairman mr. bernanke. we'll have the closing numbers for you. >>> then what happens when things get personal in business. macy's head and martha stewart were friends before martha hooked up with jcpenney. they are not friends anymore. [ whirring ] [ creaking ] [ male announcer ] trophies and awards lift you up. but they can also hold you back. unless you ask, what's next? [ zapping ] [ clang ] this is the next level of performance. the next level of innovation. the next rx. the f sport. this is the pursuit of perfection. but we can still help you see your big picture. with the

let's go to newport news, back to newport news from a call on our independent line. do. i'm calling you, sir, from newport news -- >> host: make sure you mute your television there and then go on with your comment so you don't feedback. >> caller: yes, sir. i was saying no to the tea party saying something about sequestering the american people. i believe that the president has every right as congress and senate has to pass lawed that we do not get sequestered as a people. we the middle class and poor are the majority of the citizens in the united states. and we deserve to have good mental health. we deserve not to go hungry. we deserve not to have the society that we live fall without our help. >> host: can i ask you if you work at the shipyard or a related business? >> caller: i am a prior shipyard worker and a prior army service soldier. >> host: thanks for calling in. newport news was where the president spoke at the shipbuilding company there, the largest industrial employer in the state of virginia. they build submarines and ships, and one of those ships set to

this is air force one as the president is getting ready to head to newport news, virginia. getting the fiscal house in order is much more important than the defense. $43 billion would be gutted from the pentagon this year. this morning on "jansing & co.," decorated msnbc military analyst jack jacobs said that the cuts will hurt military readyingness. >> in addition to fact -- and there's plenty of fact -- you're also going to cut ammunition, fuel, repair parts for aircraft, flying hours, training time. >> and just moments ago, i had the opportunity to speak with navy secretary ray mabus who said this way of cutting is hurting our military. >> we just cannot run a military lurching from one crisis to another. we've got to have some certainty and i think the president has presented a very balanced plan that will require some compromise. >> joining me is lynn jenkins of kansas. congresswoman, it's great to have you with me. i understand you took part in the conference that was held at the top of the hour and at the same time democrats held their own briefing. congressman chris

. >> the president will be in newport news, va., to talk about the impact this would have on middle-class families, but at this point are americans were afraid or frustrated? billions of dollars in forced budget cuts are only three days away. the white house is warning thousands of teachers and aid jobs at risk. thousands of defense workers could be furloughed. >> these cuts do not have to happen. congress could turn them off any time with just a little bit of compromise. >> the president met in a closed-door meeting with the vendors. >> the president needs to stop trying to scare the american people. you can't cut less than 3% without having awful consequences. >> is the truth behind the numbers? -- is there truth behind the numbers? >> rid of these that-cut contract you have, and leave air travel completely unaffected. -- get rid of these fa-cut contracts you have, and the air travel completely unaffected. >> thank you. stay with abc 7 news on complete coverage of the sequestered shu show down. mike allen will join us and weigh in on the fight to avoid the across-the-board spending cuts

from there he'll hit newport news and speak at newport news shipbuildi shipbuilding. it's virginia's largest industry employer. the hampton roads region depends heavily on military and defense spending. >>> meanwhile, virginia's governor says the president would be better off staying in washington. he says the president needs to stop campaigning and start working for a solution. news4's megan mcgrath has more on that. >> reporter: virginia governor bob mcdonald making the rounds of media outlets this morning, urging lawmakers to reach a budget deal and spare the old dominion the pain of sequester cuts. >> 25,000 defense contractors. it's just really bad for virginia. but it's bad for the united states of america. every 'three to six months we have a crisis that brings us to the edge of financial collapse and mutual finger pointing and we can't get anywhere. >> reporter: virginia would be particularly hard hit by across-the-board cuts. heavy on defense industry jobs, the white house says some 90,000 industry workers are now facing possible furloughs. governor mcdonald

. >> he will be in newport virginia, and they will be talking about it on capitol hill. that is where john gonzales is this morning. >> this building behind us that is where the work has to come port -- come from before friday. the president will be in newport news, virginia to talk about the impact this would have on middle-class families. are americans more afraid or frustrated? >> billions of dollars in forced budget cuts are only three days away. the white house is warning that thousands of teacher and eight jobs are at risk. hundreds of your children will receive back since. thousands of defense workers could be furloughed. >> these cuts do not have to happen. congress can turn them off any time with just compromise. >> the president met with the nation's governors at a closed- door meeting. >> i think that the president needs to stop trying to scare the american people. you can cut less than 3% without all these awful consequences. >> is there truth behind the numbers? ban mitchell said it sounds like fear tactics. >> delays of up to 90 minutes. some of these consu

just arrived in one of the places the cuts could hit workers the hardest, the huge naval base in newport news. danielle nottingham has the latest developments on the sequester. >> reporter: president obama is visiting a shipyard in new prt news, virginia today -- newport news, virginia today. he's warning that people who work on ships could face layoffs if budget cuts kick in this friday. military leaders talked about how challenging the cuts will be at a congressional hearing this morning. >> if we do not have the resources to train and equip the force, our soldiers, our young men and women are the ones who will pay the price potentially with their lives. >> reporter: with the clock ticking, it's small businesses like this communications contractor that are already bracing for the impact of the cuts, especially hits to the defense department. >> for us it could go into the millions of dollars. >> reporter: pay toe alfonso -- pay toe alfonso employs 120 workers in washington, d.c. his business relies on contracts with government agencies that will see their buckets slashed. >> we'll have

he asked me for a pack of newports. then he was still looking around the store. >> when it's time for him to pay, there's a problem. >> he started grabbing on his pockets and everything. then he was like, i forgot my wallet. i'll be back, and then he left out of the store. >> she keeps an eye on the strange man as he leaves with a nagging feeling there's something not quite right with this early bird. the man gets into his car and stays inside for several minutes. >> he stayed in his car, which was kind of weird to me. >> inside the store, the clerk carries on as usual, grabbing an early morning snack of white cheddar popcorn. she's suspicious of the man, but as long as he's in his car outside, she doesn't feel in danger, but he's about to make his move. >> he came, and he was like i'll take that pack of newports. when i went to go ring him up, he was like, don't give me no problems, just give me the pack of newports and hit the no sell button on your register. >> he has a sweater wrapped around his hand and claims it's

they're not smart, they're not fair. >> reporter: the virginia economy and newport news in particular would be among the hardest hit in the country if the automatic cuts to defense kick in. those fears have workers at the naval shipyard on edge about themselves and washington. >> i'm worried, but i'm hopeful thinking it's going to be averted. >> if they don't vote to stop the sequester, then a lot of people are going home without a paycheck. >> we did not elect them to go up there to point fingers. we elected them to be responsible. >> reporter: the president has used every political weapon in his arsenal to raise public fears over the sequester. for the second day in a row, his homeland security secretary expressed concern about safety. >> i've been in government and public service a long time, a long time, 20 years almost. i have never seen anything like this. >> reporter: attorney general eric holder was equally pessimistic. >> the reality is that there is going to be harm, there is going to be pain and the american people are going to be less safe. >> reporter: the president's pr

he will be going to the newport news shipyard which is expected to be heavily impacted by the sequester and some of those budget cuts. virginia as we know is heavily dependent on defense spending and it will be one of the hardest hit from these budget cutbacks. >> thank you. >>> in other news this morning, the search continues in the murder of a couple. police are looking for john wesley jeffries. they believe he beat nelson slack and his wife ethel to death in their home on saturday. >>> also in this morning's top stories, d.c. police are asking everyone to take a close look at some newly released surveillance video in the hopes that this will help them solve a deadly harp case. it shows the vehicle police say was involved in the incident. it happened just after 10:30:00 p.m. on saturday, february 16th in the 100 block of m street northeast. 20-year-old darnell christopher ross was killed. if you have any information in this case, please call d.c. police. >> a d.c. council controversy also making headlines this morning. details on the harsh word for one high profile member that have on

president obama will speak in moments at newport news ship building in virginia. he's expected to warn about coming job losses if congress doesn't do something to head off the budget plan that kicks in the end of the week, the one that he agreed to, one that the republicans agreed to. both sides were in on it and now, they're like, oh, how did we get here? back in washington republicans are pointing out the president could have saved money by staying at home instead of going on the road to bring the message. the cost for air force one to fly to and from virginia is 180,000 an hour and you thought your air fare was expensive and you have to add in additional costs that include backup aircraft and food and incidentals when the president travels and nothing new. and as of all of that, the travel, 120 miles from andrews air force base to newport news, virginia and the g.o.p. is making a point, saying the distance from the white house to capitol hill is just 2.8 miles and he could use a walking stick. chris stirewalt host of power play on foxnews.com live. it's cheaper

newport news, virginia, is home to many navy and defense contractors. families could face layoffs in automatic budget cuts kick in this friday. >> and leave a lot of folks who are already pretty thinly stretched scrambling to figure out what to do. >> reporter: republicans in congress are criticizing the president, saying he should stay in washington. >> stop campaigning and come back to the table and work with us. >> reporter: the main sticking point between the white house and congressional republicans, taxes. republicans say they'd raise taxes in the fiscal cliff deal in january. >> mr. president, you got your tax increase. it's time to cut spending here in washington. >> reporter: there seems to be a willingness on the part of some republicans to let the cuts happen, figuring since they're phased in over several months the impact won't be as severe as the presidenting ings isuggests. the president said at a meeting monday that budget cuts are already being felt. >> companies are preparing layoff notices. families are preparing to cut back on expense

while he's in virginia, obama will visit newport ship building.alls which designs and builds ships for the navy and the coast guard. virginia stands to lose 90,000 department of defense jobs if the sequester hits this friday. the president is urging republicans to come to the table and find a compromise. congressman bobby scott and scott rigell will travel with the president today as will u.s. secretary of the navy ray mavis. house speaker boehner is not budging on negotiations. congress is back on the hill today after nine days of break and boehner says a deal is not up to him. it is up to the senate. last session the house passed legislation offering up alternate savings not tax increases though, toward the sequester but the proposals died in the senate. boehner is saying the house has already done its part. it will not vote on another measure until the senate passes its own proposal. most democrats are agreeing a deal must include new revenue in addition to savings but boehner says the president got his tax increase and he's not willing to give

this is 20 minutes. >> hello newport news! [cheers and applause] >> well, it is good to see all of you here today. i want to thank your c.e.o. for showing me around. i usually don't get a chance to hang out with nuclear submarines, especially submarines that my wife has sponsored. so right there, that was worth the trip. but most importantly, it's a great chance to see the incredible men and women who every single day are helping to keep america safe and are just the bedrock of this country's manufacturing base. thank you to all of you. [cheers and applause] >> i want to thank our outstanding secretary of the navy. [applause] >> there he is right there. good-looking guy. i want to thank your mayor, mckinley price, who served his nation proudly. [cheers and applause] >> i want to thank two outstanding congressmen who care about this facility, care about virginia and care about the country. congressmen bobby scott is here. [cheers and applause] >> and congressmen scott rigell as well. [applause] >> the reason i came here today i

in the newport news region 59,000 plus civilian department employees would be fur load. statewide, 90,000. >> that means there will be a ripple effect on thousands of other jobs. >> reporter: any federal workers who already furloughed must be notified at least a month in advance. there's always a chance negotiations could be kick started in the coming weeks. in anticipation of the budget cuts, the department plans to release sex nonviolent immigrants. >>> today the ship set sail from baltimore and it won't return. >> it has called our city home for years. it will i rife at the new home port norfolk, virginia. the ship is a floating hospital, 12 operating rooms even a blood bank. the move is all about location. >> norfolk brings the ships closer to the mission, closer to the ocean. it shortens that readiness time to get the shipped turned around. >> the comfort will depart from norfolk and visit eight countries there to provide medical treatment and aid for people in need. >> all right. pick your poison, roulette, blackjack, texas hold 'em. soon you'll be able to play the

president obama will take his message on the road to newport news, va., tuesday, and urged congress to come to a deal before any of this happens. >> changing gears, we are just one day away from the oscars. >> cynne simpson and r campbell are in los angeles for the big night in hollywood. -- and arch campbell are in los angeles for the big night in hollywood. are you enjoying the weather? >> it is not bad. >> glorious sunshine. 70 degrees, feels amazing, especially in the sunshine. >> you should explain your microphone flag. it is a star-studded microphone flag. >> bedazzled, which i thought was fitting. and the stars are out. we have rodriguez, manny from " moderate family." he will be talking about the fan experience. >> the head cheerleader tomorrow? >> i think so. >> it is wonderful. i always come here and enjoy it and remembering places. the thing that i love is it is a city of locations where a career in places often stand in four places of the past. one of those locations is down the street, hollywood boulevard. there is a grill inside. >> take a look. >> next time you watch a m

>> dan lothian in newport news, a lot of politics, three days away from the spending cuts. >> down tore. >> i think this time we go over the bitter end to see if there's an alternative and there may not be. >> partly because it doesn't have the moment like the fiscal cliff did? >> the consequences are more spread out. >> we'll have more on the cuts straight ahead, one of the hardest hit groups the military and offense, are we putting our country at risk? ray mabus is the secretary of the navy and he'll join us next. earn 1% cash back everywhere, every time. auto oh, hi thehey!ill. are you in town for another meeting? p, i brought my a-team. vo: business trips add up to family time. this is my family. this is joe. hi joe! hi there! vo: earn a ton of extra points with the double your hhonors promotion and feel the hamptonality. and wesley & ashley are looking for a brand new smartphone. let's go. we've got a samsung galaxy sii on t-mobile monthly4g for only $299 with no annual contract. nice! [ earl ] see for yourself. get the samsung galaxy s ii on t-mobile's nationwide 4g network. wal

the president is in newport news warning of the page coming for national dispense -- the pinch to national defense spending. >> the white house has warned of airport delayed and lost jobs. there is talk of us becoming more vulnerable against terrorism. lex we cannot maintain the level of security around the country. >> the defense subcommittee is holding a hearing. government departments can expect cuts. >> this is an abdication of congressional responsibility. to be a check and balance and make financial decisions. i regret congress known -- is not legislate. >> a president invited the nation's governors to discuss cuts that will hurt their states. >> the longer the cuts are in place, the bigger the impact will become. >>are americans more afraid or frustrated? >> frustrated. they are not coming together. >> we had technical difficulties. >> the senate is expected to vote to confirm chuck hagel asked defense secretary. the former nebraska senator faced criticism from house republicans who questioned his issues -- a stance on issues. gop lawmakers signaled they will and their tactics. >> p

as speaker said, the president will be it newport news, virginia. in the commonwealth. i'm concerned because their concern about the future and uncertainty which looms because of this sequester. the president has said, well, he wants to compromise but there's been four years of spending increases and now the president says we can't have any progress on the sequester unless we get the second tax hike in eight weeks. nep he says your choice is taking criminal -- letting criminals out of jails and on to the streets or give me a tax increase. that's not compromise. that's a false choice. we have tried tobly forward measures that lish reform and cut spending. we've even taken things that the president had in his very own budget to say please join us and he won't accept those proposals. it's time to get this resolved for the american people. dana bash is with us and he'll be talking about how the sequester will affect the economy. also we'll take a look at how the forced spending cuts will impact every day americans. today we're talking about the effect o

to highlight those cuts president obama went to newport news shipbuilding but it's dependent on militarynding that is due to be slashed this friday. >> obama: the reason why we're even thinking about the sequester is because people are rightly concerned about the deficit and the debt. there is a sensible way of doing things and a dumb way of doing things. >> michael: well, that dumb way includes cutting social programs upon which many americans rely and cutting military spending which keeps all americans safe. the president said the smart way was to raise revenue by closing special tax loopholes and creating tax breaks--or that created tax breaks for the rich. he called on the senate to give him a bill that can be sold to the caucus. they haven't spoken since last week and he's getting a little testy. >> for 16 months the president has been traveling all over the country holding rallies instead of sitting down with senate leaders in order to try to forge an agreement over there. we should not have to move a third bill before the senate gets off their ass and begins to do something. >> mi

the majority of newport news agrees with me. we need to get this done. >> well, republicans can blame the president all they want. nothing can happen without action in congress. >> but the choice is up to congress. only congress has the power to pass a law that stops these damaging cuts and replaces them with smart savings and tax reform. and the second i get that bill on my desk, i will sign it into law. but i've got to get congress to pass it. >> so are all the republicans just totally screwed up? well, you know what? actually, some republicans do get it. congressman scott rigell joined president obama in virginia today. he is a businessman, a car dealer guy, but he is worried about the cuts in his state. >> i've got to give scott rigell credit. he is one of your republican congressman who is with us here today. and that's not always healthy for a republican, being with me. but the reason he is doing it is because he knows it's important to you. and he has asked his colleagues in the house to consider closing tax loopholes ins

tomorrow the president is traveling to newport news, virginia, a 180 mules from washington, d.c. in order to hold another rally. instead of traveling a mile and a half up here to capitol hill and sitting down in harry reid's office and coming up with a plan to replace these cuts with smarter, smarter reforms, smarter approaches. the republicans, over the last ten months, the republicans have been working. we have passed two bills to replace these cuts. now we need the president to stop campaigning for higher taxes, come back here to washington d.c. and lead. >> you know the president proposed this sequester yet he is far more interested in holding campaign rallies than he is in urging his senate democrats, actually to pass a plan. we know there are smarter ways to cut spending and to continue to grow our economy. that is why republicans have acted twice as cathy said to replace the sequester what we would argue are smarter cuts. listen, the president says we have to have another tax increase in order to avoid the sequester. well, mr. president, you got your tax increase. it's tim

the president is to speak in newport news about forced spending cuts that will take effect friday whicheen chatting. >> the president holding various events a campaign-style event. military country, local residents are going to bear the brunt of the mandatory cuts to defense spending. in all talking about $85 billion in cuts. how they're going to impact defense, social programs, unless congress and the white house actually reach a new budget deal. >> we'll carry those remarks live, of course, right here on cnn.al announr ] it's simple physics... a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms. but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain and inflammation. plus, in clinical studies, celebrex is proven to improve daily physical function so moving is easier. celebrex can be taken with or without food. and i

. >>> president obama will head to a shipyard in newport news, virginia to warn of what the sequestration will mean to the defense industry. they're heavily dependent on the military. the pentagon announced that hundreds of thousands of civilian workers will be pu furloughed if no deal is reached. the zoo is waiting to make tough decisions. may have to close a major exhibit if the stalemate drags on long enough. it may have to rethink some major projects. that includes plans to acquire dheet cheetahs for the research facility in front royal. >>> the sequestration showdown continues, we'll bring you every development as the march 1st deadline approaches. you'll find the latest updates on nbcwashington.com. >>> 6:05 now. a montgomery county teacher arrested on sex abuse charges will learn whether he can be released on bond. 30-year-old timothy krupica touched two 11-year-old girls inappropriately. this happened on several occasions this school year. krupica works at meadow hall elementary in rockville. he's held in jail since his arrest. he's due in court this afternoon. >>> it could be tou

the president is off campaigning in my my state, newport news, virginia. we are concerned about the comm commonwealth, as we are on all states. >> the president will have a surprise guest with him today. scott ridgeual. a former car dealer whose road district stands to be hurt by the pentagon furloughs. the first republican to travel on air force one since may. virginia's republican devastating cuts telling the president and congress it's time to fix it now. mcdonnell will join us later this house. >>> the white house admitted monday no talks or phone calls scheduled this week between the president and congressional leaders. instead yesterday for the second thyme in a row the white house press briefing featured a cabinet secretary issuing dire sequester warnings. >> i don't think we can maintain the same level of security at all places around the country with sequester as without sequester. if you have 5,000 fewer border patrol agents, you have 5,000 fewer border patrol agents. >> also almost gleefully confirmed that therer with no meetings that were going

the cantor, you know, he had to say something because obama's at a shipbuilder in newport news in histate but there's false choices all over the place in this debate. what it really says, this is a case where obama spent a lot of his speech today blaming republicans. he needs maybe at this stage a new idea, a new idea to see if you avoid the sequester and no one thinks now could be avoided. the republicans have offered to see if there's another way of structuring the cuts so that cabinet secretaries have more discretion and by the way on the point that criminals will be let out of prisons, i don't think that is going to happen from any briefing we have gotten from the federal government. >> criticize that portion of the president's remarks and seems to go beyond what was reasonable even in thought here but 45% would blame republicans in congress. 32% would blame the president. 13% would blame both and in december, 53% blaming republicans and 27% the president. a few more saying they would blame the president and hearing more and more people even though that support president obama exp

all of that going on in washington, president obama is headed out of washington, headed south to newport news, virginia, where he'll speak at the business of a shipbuilder that has ties to jobs all over the country, using this autos a back drop to make his point to the american people that the impact of these cuts could be devastating. republicans, meantime, including republican house speaker john boehner think the president should stay here, facilitate some sort of negotiation. right now nothing going on between the white house and capitol hill. nothing in front of the cameras, nothing behind the scenes to prevent these cuts on friday. richard? >> we have big egg we got on a tuesday in terms of negotiations. tracie potts, thank you so much. >>> turning to a developing story. at least 14 tourists were killed in a fiery hot air balloon crash in egypt. as the balloon approached luxor south of cairo, an on-board fire triggered an explosion in the gas canister causing it to plunge 1,000 feet into a sugarcane field below. the pilot and tourist who jumped out of the balloon survived with criti

stuart: john boehner just had something to say about the president's trip to newport news.them human shields. some people thought it was pretty offensive. but when you bring children out there, people in uniform all the time, they are human shields to back up a flawed agenda, an agenda that ultimately will destroy everyone. wait till we all have to pay for this. liz: the president has come up with proposals. the house has sent two proposals to the senate that have been rejected. john boehner is essentially saying that the white house needs to come up with solutions rather than complaining and alarming the public needlessly, because the cuts can be done easily without being seen in the federal workforce, through the federal government. stuart: all true. thanks everybody. more than half of you are uneasy about your retirement, that's according to to the national institute on retirement security. 55% of us are, quote, very concerned that the current economic conditions are harming their retirement prospects. who better to ask about this than dave ramsey. dave, that recent fide

president obama visited a ship building factory today in newport news, virginia and detailed the effects of the spending cuts and warned of severe consequence esto the military and the threat of -- cons ebbs wednesdays to the military and the -- consequences to the military and job layoffs for americans. >> these are cuts that don't have to happen. >> the president supports a man by senate democrats to close tax loopholes in addition to some targeted spending cuts. however, house republicans say they've passed two bills to replace cuts to the military, air traffic control and transportation and say democrats need to compromise. >> the house has acted twice. we shouldn't have to act a third time before this senate begins to do their work. >> sequestration equals unemployment. sequestration, we don't want it. we can work here to make sure we get the job done. >> unless congress acts, $85 billion in across the board spending cuts will go into effect. >>> ahead -- who the san francisco mayor selected to fill a vacancy on the board of supervisors. >>> rosemary is keeping an eye out on the oce

theywere found newport a shipment of celery seed from india. thebugs are dead but they're one of the world's most destructive insectings. an outbreak could cost tens of millions of dollars. >> we're learning more about the shooting in lock urn. police say the victim is a 27 year old man shot walking on st. luke's lane. the man is expected to make it. and policesay this morning we had a stabbing tied to a robbery on the two hundred block of south avenue. the victim was stabbed you multiple times and is now in stable condition. >> well they're cabin burned to the ground with a suspected cop killer inside and tonight the woman who owned that cabin is speaking out. coming up, how she learned that christopher dorner was possibly barricaded in her home. >> what will be left in the wake of this weather maker. i'v me now, abc2 news working for you tonight with how you can get that cell phone bill under 50 dollars a month. >> we'll be back in 60 seconds. if you have a carnival cruise bookd listen up, the company is cancelling 12 more voi aa.j.s. this do

in fact, he's going down to newport news to talk about how these cuts will affect that industry. national defense and education are his two primary things. >> states would face, what was interesting, we talk about 14 million gone, plus an additional $13.9 million for children with disabilities. and 90,000 workers. this is a big deal if this could impact us in the way the obama administration says it will. >> let's not forget that virginia is a very pivotal state, politically. the first department. democrats want to keep it. so you'll be hearing talk about how these cuts will affect virginia and you'll see the white house trying to blame congressional republicans for it. >> and republicans seem to intimate this scenario that the president painted might not be as bad as we think it's going to be. we're in this, or else, situation, with four days to go until sequestration. these issues go right up to the wire. do you sense that there will be a resolution by friday or we'll still be talking about this? >> i'd be surprised if the money will go through. and no one really knows. preside