alisyn: thank you for watching, everybody. [captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- shepard: a cities chosen, another rejected. what happened, and how chicago lost out despite a pitch by president obama. also on tap this hour, box number one. an indictment in the extortion plot involving david letterman. new details, and we will take a look at how it affects letterman's reputation and career. the threat from iran. talks with western nations over the nuclear program seem to go well, but israel has its doubts. we will talk with judith miller, live in tel aviv. and a high school fight is caught on tape. after it is posted on the internet, new concerns about school safety. first, blame it on rio.

a huge disappointment for chicago, obama, and the united states as the international olympic committee selected rio de janeiro, brazil, for the 2016 olympics. the faces on the crowd in chi- town said it all. many considered chicago a lot. not true. many considered to cut a to be in the top -- many considered chicago to be in the top two, with the lobbying by obama, michelle obama, and oprah. he flew to copenhagen to get a quick pitch. instead, it is party time in brazil. hard to imagine how much this means there. the first time ever in south america, the first time for that country. they have seven years to plan.

if only it would stop dancing. wendell is live in copenhagen with more. >> headed back to washington, robert gibson said that mr. and mrs. obama were proud of the presentations they made and glad they came to copenhagen to make the pitch. they only spent about an hour- and-a-half with the international olympic committee members. 14 hours in the air. the president aimed to trade on his own international popularity and to the decision to and what he considers the bush administration's unilateralism. >> there is nothing i would like more than to step in just a few blocks my family's home with michelle and our girls and welcomed the world back into our neighborhood. >> brazilian presidents luiz inacio lula da silva argued that

it was rio's turn. there has never been an olympics in the southern hemisphere, and even opponents admit that it was probably their time. david axelrod says that the president does not see the loss of chicago as a rebuke or a decline of u.s. influence, but the white house is likely to face criticism over both the cost of the trip and the president might come under fire for a chicago resident who never wanted to have the olympics anyway. shepard: thank you very much. now to the economy. new signs that the recession is far from over. the unemployment rate rose to 9.8% last month, according to the labor department. that is the highest since june of 1993 carried the report indicates and clears cut more jobs than expected. major garrett is live in the white house with the it ministration reaction. they thought the stimulus package would keep in clement up

and create jobs. what is the white house saying? >> a negative baggage. that was earmarked today. and they know the trajectory of the job losses are steep and their months away from any kind of relief. the labor department indicated job gains. the vice-president at the white house today. >> this is not a straight line to recovery, but we are recovering. the middle class is in a better position coming out than when we came into this great recession. >> we're being told now that the president has just arrived at andrews air force base. he will come here to the white house by marine one and we would hear remarks later this afternoon from his perspective.

shepard: is the white house considering a second stimulus? >> vice-president by and said no, we're going to try to get the right package right. yesterday, the vice president saying that a million jobs were created, but today, she said that the longer the stimulus stays out there, less popular and potent it looks. shepard: major garrett, live at the white house. thanks. now to the new details about the letterman extortion plot. the host revealed he had sex with co-workers, and a cbs producer threatens to go public with it unless he was paid $2 million. producers say that robert halderman warned letterman that "his world was about to collapse

around him." david letterman made the confession to viewers in his own way. listen. >> that is a decision for them to make, if they want to come public and talk about the relationships. if i want to talk about them. what you do not what is the guy saying, "i know you have sex with women, so i want to million dollars or i'm going to make trouble for you. shepard: it is important to note that the david letterman announced his marriage to his longtime girlfriend earlier this year. it is not clear when the russian ships -- the relationships with staff members occurred. iraq has more details live in the newsroom. -- rick has more details live in the newsroom. >> it is interesting. fans of david letterman have

heard him talk about his personal life over the years, about his stalker, his open heart surgery, the birth of his son. but never has he cited -- shared the "creepy side of himself." what he did was got in front of an embarrassing story ended out the details myself, which is something other noticeable people in sex scandals have not always done. shepard: from a public-relations standpoint, how are people saying he will recover? >> remember those jokes letterman made about sarah palin's daughter? people were upset about that, but his ratings went up. a public relations experts said that letterman is so sadly, that could happen again. -- she is so savvy -- he is so savvy, it could happen again.

>> he will poke fun at himself, acknowledging that this was awkward and wrong thing to do, and overtime, the faithful will become even more faithful and he will rise above this. >> we saw the poking fun last night show. letterman is, after all, in show business, it's a little different from elected officials in washington, although that is not always so apparent. but in the world of late-night attack to -- late-night television, there are standards. these relationships allegedly took place when letterman was single. while it is questionable, she apparently was not cheating on his wife, who was a former letterman staffer. shepard: as the threat of nuclear-arms iran continues to

loom, the question is whether israel will wait for diplomacy or strike first. judith miller is live from tel aviv in 60 seconds. ")

shepard: their president has voiced its desires to see israel wiped off the map. iran's ahmadinejad, the man who also said his country will never give in to demands to end their nuclear program. in the past 24 hours to more remarkable developments concerning the same program. today, they say they are open to the idea of moving most of the enriched uranium out of the country. the same diplomats have also established the time frame for visiting a recently unveiled in richmond site. officials say that it is cause for guarded optimism, but for

israelis, optimism may not be enough. the possibility of a nuclear iran has is really folks -- is really -- israeli folks very nervous. where is israel on this matter? >> it will be very, very hard to know exactly what israel is planning or thinking, because this issue is so sensitive. israeli officials are playing this close to their vest and saying nothing except that experts, experts are saying, "well, we are off to a good start."

in other words, you are hearing a relatively similar reaction than of the one from washington. shepard: is this simply another stalling tactic? >> that is always a concern. and critics in israel and washington are arguing the same thing, that iran is going to use these talks as they have in the past, used occasions like this to, you know, pushed the pressure away from their activities, to buy legitimacy with a present at the table, and to reduce the possibility of sanctions. that is why everyone is keen on making sure this set of talks moves forward, that there is no stalling, and that the issues the administration is calling for, the obama administration, is well understood for iranians

and they are not permitted to delay as they have in the past. shepard: tell me about the debate between the israeli government and military. we can go back to the war in south lebanon to see how divided they can be, and it is widely believed that they screwed up from the beginning and kept changing our minds almost daily. what is the sense now about how they could end up on one page together? >> well the were in the middle of this mess, very little was said at the time about a lack of unity. it was only after things past that people could stand back. shepard: it is like being in new orleans and they're telling you the hope is there and it is not. it is the same thing as happened in israel. they changed the policy. >> this is a very different game. this is a game in which israel

is not a player. they are not at the table. and they must rely and the american strategy " keeping other options open. -- they must rely on the american strategy while keeping other options open. when israel talks about the other option, they are not talking about sanctions. they are talking about military activity. but you have to remember that this is such a hard target, and israel has no illusions about how difficult it would be to strike iran militarily. the facility hid until they were forced to make it public is deep underground, and there are no centrifuges in it now, another factor leading some to say they have time on this. you're also talking but a national program that is diffused throughout the country and is one that has backed up systems to support it.

it is not what israel did in iraq if it had to take action. it is not a strike that it made against syria. is really -- israelis understand more than anyone else that they would pay the consequences of a strike. one gets the sense that they're willing to give americans a month are to see how this plays out. shepard: there is no quick strike. there is no all or nothing here. it seems almost as if it is sanctioned an agreement or really nothing. there is not a lot that could be done. >> i do not think that is true, even though from a practical standpoint, one wonders how they could carry it out. when israel says that something

is in its natural interest, they are willing to carry it out. at the time, they seem to be letting the obama administration and allies try the diplomatic card, but nothing is off the table. for the israelis, it will be difficult to know what netanyahu and his cabinet are thinking about because they have no interest in sharing that with any of us at this time. their strongest card is making sure that iran does not know what israel is thinking. shepard: judith, good to see you. thank you very much. meanwhile, big news on the israeli shelter -- soldier captured in june of 2006. hamas released the first video of the soldier as proof he is alive. he appears healthy and smiles often. he also sends love to his family.

he says but his captors are treating him well. he also bred -- he also read part of a newspaper to show that the video is recent. hamas has released this as part of a deal with the israeli government. as a its part, israel released 14 palestinian female prisoners. the israeli surgeon was captured during a cross-border raid several weeks ago. before today's video, the only proof of life was an audiotape and three letters to his parents. the death toll was in the 100's , and the estimate of those missing is in the thousands. rescuers are recent o'clock, searching for survivors of the latest earthquake. nkicyi -lepufeou katn se

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shepard: the cbs news man accused of extortion plot against david letterman has just pled not guilty in a courtroom in manhattan. this news is just coming in. robert j. halderman has pleaded not guilty. this happened as the d.a. for

manhattan announced earlier today. that is the latest. more news as it comes in. health care countdown. just after 2:00 a.m. today, the finance committee in the senate announced a bill that would guarantee health insurance to millions of uncovered americans. it costs $900 billion over the next decade and it seems that more americans are against the legislation on the table. a supporting -- according to our poll, 33% favored, while 53% opposed it. >> they're still question about whether or not it will get the language in order to see what the specifics will said. they've wrapped up the amendment, but there will be a

few days before they figure it out. it will be based on a conceptual in which, not legislative language. shepard: $900 billion. what is that pay for -- what does that pay for? >> there will be no public option. this contains a nonprofit cooperative where they will still be able to compete and bring prices down. it does have an individual mandate. one amendment reduces the cost of premiums. the maximum, instead of 10% of income, would be dropped down to 8%. overall, $900 billion for 10 years, starting next year. but much spending does not start

until five years from now. if you go from there, it is more like 1.6 trillion dollars. shepard: a moment ago i was searching for the name of the program in which the cbs employee works pretty it is "48 hours." my mistake. i apologize. and again, he has pleaded not guilty in the alleged extortion scandal against david letterman. two high school students attacked another girl and a video posted on facebook.

shepard: but but we have shown a fight on tape before. sometimes there are planned, sometimes there are random. check out this one. this happened after a football game and it was in washington d.c. there was no audio. two girls attacked a third, the beat down over boy troubles. here is fox five in d.c. >> the video is disturbing pretty chose a silver spring high school students attacked by two girls. >> they were grabbing my hair and hitting me. >> it happened friday night. she had just stepped off the field and she said she was

dumped. dumped. the school referred parents of their commitment to safety and discipline. anderson says that the school is working with security and police to further enhance safety measures already in place. the mother of the victim says it is a step in the right direction, but she would like to see more done to get to the root of our kids to fight. -- of white kids fight. >> any alternative sources. >> since the fight, the victim has gotten plenty of support from friends of classmates who vowed to increase the pieces on no one else will be hurt like this again or worse. this again or worse.

shepard: the mediation is scheduled today. people are dancing in the streets in rhodesian air, celebrating the first olympics force all americans. show and tell you weren't always my favorite day. with all the pet hair in the air, i'd spend class preoccupied, bothered by itchy eyes. but now i have new zyrtec® itchy eye drops. it works fast, with just one drop, to relieve my itchy eyes from allergies for up to 12 hours. no other allergy itchy eye drop works faster or longer. which is good, 'cause there's a lotta paws to shake. with new zyrtec® itchy eye drops i can love the air™. (announcer) find it in the allergy aisle next to other zyrtec® products.

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is spent trying to protect your identity. and i say "trying" because it's a full-time job... just trying to protect your identity. if your identity is stolen, nothing can be more... frustrating or more time-consuming... shepard: president obama is talking about jobless numbers. listen. >> we came back with better news from copenhagen. i could not be prouder of my hometown of chicago, with the volunteers and baltimore mayor daley -- volunteers involved, mayor daley, and those coming forth. i want to congratulate rhodesian and brazil for winning of the 2016 olympics. this is a truly historic event as these will be the first olympic games at to ever be held in south america.

as neighbors in the americas, as friends to the brazilian people, we welcome this extraordinary sign of progress. the fact at the games will be in the americans americas -- i had ao speak to president da silva and gave him congratulations and told him our athletes would see him in the field in 2016. i want to thank everybody who came together to put this together. most especially, the thousands of chicagoans who volunteered over these past few years. they put their heart and soul into this bid. i have no doubt that it was the strongest bid of possible, and i am proud that i was able to come and and make that case in person. it is always a worthwhile endeavor to grow and boost --

promote and boost to the united states of america and invite the world to see what we are all about. we would obviously have been eager to host these games, but our nation and athletes are still very much excited to compete in 2016, and we once again what to say how much we have committed to the olympic spirit, which i think represents some of the best of humanity. i also ordered to say a word about the employment neighbors -- number second up today. -- numbers that came up today. my principal focus each and every day, as well as the focus of my economic team is putting our nation back on the path of prosperity. since last winter, when we were losing 700,000 jobs. month, we have made progress on this front.

but they cost jobs report is a sobering reminder that progress comes in fits -- today's stock report is a sobering reminder that progress comes in fits and starts. for a moment i took office i have made it clear that employee and is often the last thing to come back after a recession. but our task is to do everything we can possibly do to accelerate that process, and i want to let every single american know that i will not let up until folks who are seeking work can find work, business is seeking credit can get credit and drive -- thrive, and all homeowners can stay in their homes. that is our ultimate goal and one that we're working every single day on to accomplish, whether it involves implemented a recovery act has already helped bring back america from

the brink of a worse situation or rewarding the cost of health care for businesses and families. that is why i am working closely with my economic advisers to explore additional measures and options we might take to promote job creation. when i see statistics like the ones we saw today, my mind turns to decent americans who want nothing more than the opportunity to contribute to their country and help build a bigger future for themselves and families. building a 20 christocentric economy offering this opportunity, an economy where folks can see the skills and education they need to compete for the jobs of the future, will not happen overnight. but we will build it. of that, i am both confident and determined. on behalf of every american, i will continue in that effort each and every day for as long as i am at this white house. thank you very much.

shepard: this news conference -- this a statement to the news media was scheduled for 4:00 eastern time and he came out 30 minutes early, talking about a jobless numbers, the jobless rate down 9.8%, and remember, the white house predicted it would not go over 8% during stimulus times. he said he was sorry that chicago did not get the olympics, but he was glad to go over there and make a bitch -- make the best pitch possible. and it is hard, really, to get a handle on what a big deal this is for south america and especially for rio de janeiro. our steve harrison and is here to make us understand. i am guessing this is the biggest thing to happen in many years. >> probably at least since last carnival.

you can get a good sense of what it is for the people and the government. nations are coming to what this announcement, and as a matter of fact, there was a day off today to watch it. and when it happened, there was a scream from every window and car in the country. that was part of the selling point for brazil, just how much they wanted the gains and what a big deal is to this city, the nation, and to south america. shepard: the president had been lobbying hard for these games. tell us about his reaction. >> a lot of attention was paid to president obama, but president lula had been lobbying for years, and when it was time for him to speak today, he broke down in tears several times and had to mop his eyes. he could not find any words to express his joy, but there might have also been released --

relief in finally winning. shepard: great to see you, steve. republicans have had it tough lately in washington. is there a chance of a revolution? back in 2.5 minutes.

been shepard: the head of iran's

-- the head of the u.n. nuclear watchdog is headed to iran. or he soon will be. >> leaders are growing in principle about the uranium in richmond process. they want to offer broader gestures of corporation. the head of the u.n. what stark root is going to get it more concrete promise for when inspectors might be able to look at their site and see what they're doing, or where people are thinking, trying to make a nuclear weapon. so they're headed there to get concrete promises.

shepard: developing now, the indonesian health ministry reports that 3000 people may be trapped under rubble after a powerful earthquake rocked the region a few days ago. estimates range from around 700 to more than 1000. we have just released video of right after the quake, with the roof of a sports hall collapsing after crotty practice. rescuers are finding two more survivors. it struck celt of -- south of padang. president obama talk to the indonesian president this morning saying that the united states will do whatever it can to help. he has been criticized for only speaking to the u.s. commander in afghanistan was in the past several months. now, obama held another meeting with general stanley mcchrystal.

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they had only spoken once since he took over in afghanistan. the meeting comes just one day after general mcchrystal said the afghan situation is deteriorating and insurance -- insurgent's pose a greater threat. his requesting another 40,000 troops. afghanistan is said to be a dangerous breeding ground for terrorists, including iran, iraq, and others. what do you make of this, bet? >> it is hard to overestimate the importance of the decision. general mcchrystal was added foreign-policy center in london thursday in which he spoke out of product in a stand and he was specifically asked if he thinks that a limited counter-terrorism strategy would work and he said the short answer is no. decca's directly against what vice-president biden was saying, that there should be and -- that there should not be an increase and the military should focus

more on unmanned drone attacks on leaders. so you have a decision that is pending. it is imperative for the president to get this communication from his general one-on-one. john mccain was as livid as i have seen him in years on the senate floor last night, saying how could general mcchrystal speak out on 60 minutes, talk to this forest group, and not address congress. shepard: they also cannot guarantee that any strategy they come up with, and everyone is in agreement that they need one, then any new strategy would be successful and the war would be when a bull -- winnable. the president is in a tough position. >> being president is tough. with this president, politically, if he turns his back on the sitting general whom he installed, his recommendation for four dozen more troops, that

would be a big event. it would be a sea change in the way that this war is being fought in afghanistan. mcchrystal has said that they need to be more on the ground, more protective of afghan civilians, and less of these strikes from the air in order to change the situation on the ground. it is much more than general petraeus in iraq. it will be an interesting couple of weeks, because this decision must be made it pretty soon. this weekend, a group of senators were well versed in foreign-policy. it will be an interesting discussion about afghanistan, iran, and of things coming out of the geneva convention. shepard: thank you. in the morning, you get bret

baier, next "fox news sunday." if you are pregnant, you will one -- want to stick around for our next story. the centers for disease control are released in new numbers about pregnant women who have contracted a 21 flu, including how many of them have not survived the virus. pregnant women are said to be very vulnerable to this.

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[captioning made possible by fox news channel] captioned by the national captioning institute --www.ncicap.org-- shepard: we're tracking h1n1. the new statistic for the centers for disease control. the cdc says that 28 pregnant women across the united states have died after catching the virus. the agency says that 700 pregnant women caught the virus and 28 of themem died. 100 of the women were hospitalized during the first four months of the outbreak. the cdc says it is a reminder to protect those most at risk from the virus. what is the cdc telling pregnant women they should do to protect

themselves? >> first and foremost, cdc officials are telling pregnant women to get vaccinated. it is going to be in the form of a nasal spray. the video you are about to see is that spray being administered to children. it is not approved for pregnant women. until they are able to get the injectables shot, which should be available let -- next month, they are advised to take anti- virals if they show any symptoms. shepard: it not only affects private woman, but all of us. >> new cdc data points to secondary infections causing a lot of the deaths from h1n1. infections like pneumonia. there is a shot that you can get. anyone with underlying medical conditions who may have some medical conditions of their own, they can consult their doctors and see if they can get that

pneumonia shot to protect against further infection. shepard: a kindergartner conquering an alligator. coming face to face with a 12 foot alligator and coming out on top. at wal-mart, their prices are unbeatable. over 300 prescriptions are just four dollars. four dollars. imagine that.

shepard: we intended to bring you a segment on republicans turning the clock back to 1994.

we booked ezra kline who has a fascinating blog about this. due to technical difficulties, i am told that we cannot get the segment on today. now for more on the alleged extortion plot against david letterman. >> we have had some news regarding the suspect in this blackmailing case. he is a longtime cbs news producer. he is working most recently on the show "48 hours." he pleaded not guilty for trying to extort money from david letterman. he made that announcement during the taping of his show last night. in the courtroom today, he entered the plea. the bail is set for $200,000.

we are told that he is probably going to post $200,000 bail and might be freed as soon as he does. prosecutors alleging in court that he demanded $2 million last month in exchange for not releasing information that he thought would ruin david letterman's reputation. authorities say that after he came to him and made this announcement, david letterman went to his attorneys and they undertook what they basically called a sting operation they booked a room at a fancy manhattan motel and decided to bring him into that room. to have in detail exactly what he wanted from letterman and why. during that meeting, david letterman's lawyers apparently were wearing and microphone. according to prosecutors, they got pretty good proof or evidence that they plan to produce in court on tape demanding this money from

letterman exchange for supposedly not publishing this information about his affairs with certain members of his staff. shepard: thank you for that update. we have a story of a point size texan who looked into the eyes of an alligator many times his size. he knows how to fire a gun. not too long ago, he had to confront and 1800, reptile. the 5-year-old took out the beast with some birdshot. here is a picture of the alligator simon said that he just did what comes naturally to him, shoot things. by the way, he says that he now has a new nickname. then there is this before we call it a day. most of us are not very good at science.

anyway, physics class, yikes. there is a science award that we can all get behind. they are given to science that sounds like baloney, but is actually accurate. did you know that empty beer bottles make better weapons than full ones? not saying that you should try it, but according to the teleprompter, it is true. bacteria in panda droppings can reduce kitchen waste. a study that found cows with names give more milk. swould have a long-running thing about animals with names around here. if their parents gave it to them, i think it is ok. pets do not wear clothing. they do not do it. they go naked