tv CBS Morning News CBS February 11, 2011 4:00am-4:30am PST
outrage in cairo. enraged and shot, anti-government protesters claim another huge rally following hosni mubarak's latest refusal to leave office. mortgage mess. the white house to unveil its plan for fixing lending giants fannie mae and freddie mac. and countdown to 2012. conservatives mulled their and countdown to 2012. conservatives mulled their choices for the coming election. captioning funded by cbs good morning, everybody, and thanks for joining us. i'm betty nguyen. this morning egypt appears to be a country on the brink of revolt. enraged anti-government protesters planned a massive rally today following
yesterday's defiant stand by president hosni mubarak. the military says it is securing the country and will have an important statement today. terry mccarthy is in cairo. good morning, terry. give us the latest there. >> reporter: good morning, betty. and the crowds here behind me are still digesting that speech by president mubarak last night. if he thought he was going to pacify them, in fact the opposite has happened. it's 11:00 in the morning here and the crowds are bigger than we've ever seen them at this time. now everybody yesterday was expecting president mubarak to step down. the rumors were going around the square, the mood in the square was quite festive. then when his speech came, it emerged that he won't be stepping down. he was just delegating some authority to his vice president and he was still remain the head of state. the crowd got really mad. they started screaming, leave, leave, leave in arabic. and pledging to stage this massive rally today. there was quite a lot of anger in the crowd we saw from people
leaving. worried it might get out of hand. now today the crowd is already building, as i said, and it's not even noon. the friday is the day of prayer in the muslim world. normally these protests don't start until after the noon prayer. so the fact that the crowd is already big indicates that it could get really hot. betty? >> terry, how much fear is there on the street that these protests are once again going to turn violent? >> well, there's great fear about that today, betty. because in some ways mubarak has left no place for the protesters to go except to confront him. some of the protesters have already said they're going to march on his palace. or on the tv stations. and if they do that, the army is put in a very uncomfortable position where they may have to fire. so there is great fear in the crowd here that today's protests could turn very violent. betty? >> all right. we'll be watching very closely. terry mccarthy in egypt for us. thank you, terry. president obama issued a critical and blunt statement following mubarak's latest
defiant stand. now, clearly impatient, mr. obama said the universal rights of the egyptian people must be respected. quote, the egyptian people have been told that there was a transition of authority. the president said, but it is not clear yet that this transition is immediate, meaningful, or sufficient. ines ferre is in washington with more on this. good morning, ines. >> reporter: good morning, betty. and president obama held a late-night meeting at the white house with his national security team. they're scrambling right now, after being caught off guard by the latest turn of events. the white house was as surprised as anyone president mubarak did not step down. in a statement last night, president obama criticized the egyptian leader for not offering his people the reforms they demand. it is the responsibility of the government to speak clearly to the egyptian people and the word, it read. the egyptian government must put forward a credible, concrete and unequivocal path toward genuine democracy, and they have not yet seized that opportunity.
it was a much more optimistic president obama who addressed the crisis earlier thursday, amid widespread reports mubarak was about to resign. >> what is absolutely clear is that we are witnessing history unfold. the moment of transformation that's taking place, because the people of egypt are calling for change. >> reporter: mubarak's surprise also made for an embarrassing day for cia director leon panetta, who told a congressional committee it was very likely the egyptian president would step down thursday. it turns out, he was relying on news reports, not intelligence gathered by his agency. since the crisis erupted 18 days ago, the administration has struggled with how to respond. first, pressuring mubarak to begin a transition of power, saying now means now. then cautioning it would be risky for him to step down so quickly. and even u.s. officials concede the administration has little power or influence in egypt
right now. if president mubarak isn't listening to his own people, chances are he's listening to the white house even less, betty. >> all right, ines ferre in washington for us. ines, thank you. this morning, pakistani police say an american diplomat who shot and killed two pakistanis carried out an intentional and cold-blooded murder. a judge ordered that raymond davis remain in custody for at least another two weeks. the u.s. says davis was the victim of a robbery and acted in self-defense when he shot two men on a busy street last month. the u.s. also says davis has diplomatic immunity from any charge. there are no reports of injury following a gas explosion in eastern ohio. an underground gas line exploded near hanoverton late last night damaging one home. now the day before a powerful gas explosion leveled a pair of row houses in allentown, pennsylvania. five people were killed there. 47 homes damaged or destroyed. officials believe an 83-year-old gas main ruptured. the department of homeland security says a lawsuit by the
state of arizona is without merit. arizona is suing the federal government for failing to control the border with mexico. it follows a federal challenge to arizona's new immigration law. governor jan brewer says the state had no choice. >> we did not want this fight. we did not start this fight. but now that we are in it, arizona will not rest until our border is secured, and federal immigration laws are enforced. >> brewer says the battle will likely reach the supreme court. today is the last day on the job for white house press secretary robert gibbs. after two years, gibbs is stepping down, but will continue to be an outside adviser to the president. gibbs is eventually expected to join obama's re-election campaign. taking over for gibbs will be jay carney, who is vice president joe biden's press secretary. the obama administration will issue reform proposals for the troubled mortgage giants
freddie mac and fannie mae. between them the two government-sponsored companies hold more than half of all u.s. home mortgages. anthony mason reports. >> reporter: they were created to help the mortgage market, but fannie mae and freddie mac have become the mortgage market. backing $5 trillion worth of home loans. >> what happens with fannie mae and freddie mac could potentially change the face of american housing. >> reporter: set up by congress as private companies, to expand home ownership, fannie and freddie buy up mortgages from lenders, so those banks have money to lend again. but they're now holding hundreds of billions of dollars in bad loans. and the government, which always unofficially backs fannie and freddie, is stuck with them. the white house will present a range of reform models that will include leaving fannie and freddie alone, creating a new entity that would only backstop the mortgage market in a crisis, or allowing the market to become completely privatized. but without government backing,
banks might abandon riskier loans. >> it would be questionable whether we would see products like a 30-year fixed-rate mortgage, and certainly the products we did see would be more expensive for all of us. >> reporter: by one estimate in a privatized system, the cost of financing a $200,000 mortgage would go up $159 a month. but any changes will likely be phased in over years. with the housing market still struggling to recover and facing another record year of foreclosures. >> the creation of jobs, and the subsequent improvement in consumer confidence, is what it's going to take to get the housing market back on its feet. >> and you don't see that yet? >> not this year, no. >> reporter: in its proposal, the white house is expected to support limiting the size of loans fannie and freddie can buy to $625,000. a drop of more than $100,000. which means there will be less money for some borrowers. anthony mason, cbs news, new york. just ahead on the "morning
news," is the era of super low mortgage rates over? plus a dramatic bank standoff as an armed robbery suspect takes several hostages. you're watching the "cbs morning news." the best device for everything you love to read editors' choice. best dedicated ereader. magazines look spectacular. fantastic device. touch the future of reading at barnes and noble. nookcolor. and more. if you replace 3 tablespoons of sugar a day with splenda® you'll save 100 calories a day. that could help you lose up to 10 pounds in a year. that's how splenda® is sweet...and more.
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don't drink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. i found answers about fibromyalgia. then i found lyrica. ask your doctor about lyrica today. in arkansas, drivers are apparently still having trouble with some very icy roads. but temperatures are supposed to warm up into the 40s today, and probably will melt some of that ice. in oklahoma travelers face deep snow and some got stuck on slippery roads. temperature readings there were also -- or will also reach to the 40s today. that will be a little bit of relief. in north carolina a hostage standoff at a suburban bank ended with an eruption of police gunfire. it happened thursday in a town near raleigh. a teenage gunman tried to rob the bank, but police were tipped off and quickly surrounded the building. the gunman wound up holding several hostages, releasing four of them. the suspect finally emerged
holding a gun to a woman's head. that's when officers closed in and opened fire killing him. no hostages were injured. on the "cbs moneywatch" a rocky day for stocks in asia this morning. ashley morrison is here in new york with the latest on that. >> good morning, betty. most asian markets saw a big sell-off. hong kong's hang seng saw deep losses before bouncing back with a gain of half a percent. while japan's nikkei was closed. today wall street gets the very latest on trade and hears the white house's plans for reforming mortgage giants fannie mae and freddie mac. on thursday tech stocks dragged down the market breaking an eight-day winning streak for the dow. the blue chips lost ten points while the nasdaq rose one. fewer americans applied for jobless benefits last week than in nearly three years. first-time claims fell 36,000 to 383,000. economists say that figure needs to stay at or below 375,000 to make a significant dent in unemployment.
the days of super low mortgage rates appear to be behind us, at least for now. the average on a 30-year fixed loan is now above 5% for the first time in nearly a year. higher rates could further hurt sales ahead of spring's prime-time home buying season. thousands of white collar workers in detroit will soon be getting a bump. gm and chrysler are expected to announce today they're handing out bonuses worth as much as 50% of their base salary. both companies needed massive government bailouts back in 2008 and 2009 to hold off bankruptcy. if you make a lot of credit card purchases, especially at the gas pump, you're probably used to punching in your zip code. but maybe not for long. california's supreme court has ruled that merchants can no longer ask for the information because it violates consumer protection laws. retailers say it's intended to protect customers from credit card fraud.
and they say there's no such thing as bad publicity. the designer who made the dress lindsay lohan wore to court earlier this week say they are now sold out. the $575 garment apparently was snapped up on the internet after all the media coverage. and betty, don't get me wrong, she looks great in it. love the dress. just not sure i would wear it. >> yeah. you know, i was thinking the same thing when i saw her. definitely not something that you would think that she'd be wearing. but hey. >> it's hollywood. >> all right. ashley, joining us live here in new york. thank you. barry bonds is set to go on trial next month for allegedly lying to a federal grand jury about using steroids. a new version of the indictment against baseball's home run king reduces the number of felony charges against him from 11 to 5. but, if convicted he still could face up to ten years in prison. bonds says he is innocent. straight ahead, your friday morning weather, and in sports, a record-setting night in the nba, as ray allen dials up long distance. but is it enough for boston to
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share the fun at beggintime.com >> ( beeping ) ( beeping stops ) >> announcer: free is better. do your simple return for free with the federal free edition at turbotax.com. turbotax. the most trusted brand of tax software. here's a look at the weather in some cities around the country. new york, partly cloudy, 34. miami, light rain, a warm 77. chicago, flurries, 26 degrees there. dallas, a sunny 48. and l.a. a sunny 77. time now for a check of the national forecast. the latest satellite picture shows a very clear view of much of the nation, from the
southwest all the way through to the northeast. later today, the nation's heartland will start to recover from bone-chilling temperatures. and sunshine will be seen from coast to coast, with the exception of some rain in the carolina coastline, and in southern florida. in sports ray allen of boston set a new nba record for three-point shooting. allen hit a pair of three pointers in the first quarter to pass former indiana pacers star reggie miller as the career leader in three pointers. but kobe bryant of los angeles scored 23 points and the lakers beat the celtics 92-86. in phoenix, steve nash had 18 points against golden state and the suns went on to an easy win over the warriors 112-88. phoenix has won 10 of the last 14 games. and in denver the hometown nuggets won with a buzzer beater. from aaron aplolo. he scored 19 points against the mavericks and denver ended the dallas ten-game winning streak 121-120. when we return another look
at this morning's top stories. and conservative crowd pleasers. the talk turns presidential at an annual political conference. l at an annual political conference. but i'll be right there. ♪ [ screams ] [ people screaming ] [ tires screech ] ♪ [ tires screech ] ♪ [ man screams ] [ man on radio ] l.a., the end is near. ♪ [ male announcer ] without all-wheel drive,
on the "cbs morning news" here's a look at today's weather. there will be some showers in southern florida. a few patches of snow showers can be found in the northern plains. and everyone else will see plenty of sunshine and a gradual warm-up. here's another look at this morning's top stories. anti-government protesters in egypt plan a massive rally after president hosni mubarak again refuses to step down. military leaders say they are holding an important meeting and plan a statement. and today the white house will offer options to shore up struggling mortgage giants freddie mac and fannie mae and that may mean higher interest rates for homeowners. arizona's jon kyl is the
latest senator to announce he will not run for re-election. 68-year-old kyl is the second ranking republican in the senate. on thursday, he said it's time to step down. he is the fifth senator to announce plans to retire in recent weeks. kyl's fellow conservatives gave celebrity millionaire donald trump a warm welcome to their annual meeting yesterday, as trump hinted he might run for president in 2012. trump may or may not win support from conservative political action committee, but for those attending its three-day convention in washington, the top goal is defeating president obama. joel brown reports. >> reporter: newt gingrich walked in like he already won the election. music and hanshakes all meant to suggest he's the gop's frontrunner for the white house. but the reception was different for former defense secretary donald rumsfeld. vice president dick cheney was about to introduce him but shouting crowd members put that on hold.
it all happened on the first day of the conservative political action committee convention. a chance for gop leaders and potential presidential candidates to meet over 10,000 party activists. one of the big highlights of c-pac is the straw poll. everybody takes a vote on which of the potential candidates they like best. the hopefuls try hard to win. but it doesn't mean much. mitt romney won the straw poll back in 2007. a year later john mccain won the party's nomination. >> ready for mccain, cross out palin. >> reporter: two years later it's mccain's former running mate who is getting a lot of attention at c-pac. >> sarah palin has several of my pins. >> reporter: sarah palin turned down her invitation, citing scheduling conflicts. heidi lasher is pulling for palin to run in 2012. >> for me i'm really upset. i would love for her to be here. but i know she's got a lot going. >> reporter: conservatives are far from united on a favorite but do agree on one thing. >> a second term of obama would be disastrous for our country. >> reporter: they're determined to win back the white house in
2012. joel brown, cbs news, washington. this morning on "the early show," actress jennifer aniston. i'm betty nguyen. this is the "cbs morning news." pretty unpredictable. e from knowing when my next job will be to what i'll actually be doing. so in the rest of my life i like control. especially in my finances. that's why i have slate with blueprint. i can make a plan to pay off everyday things and avoid interest, or pay down my balance faster on the big stuff. that saves money. with slate from chase, i have everything under control... ♪ ...financially. announcer: debit card control. credit card flexibility. get both with slate. um, i thought this was going well for a first date. it is. look at your suckometer. oh, i just quit smoking, and the craving's really suck after a meal. okay. ding! [ male announcer ] quitting sucks. nicorette makes it suck less, doubling your chances of success. new aveeno positively radiant tinted moisturizers, with scientifically proven
this sunday cbs news' "60 minutes" puts flamboyant lady gaga in a different kind of spotlight. correspondent anderson cooper asked her what she thinks the public wants. >> they want to see my fail. they want to see my fall onstage. they want to see me vomiting out of a night club. i mean, isn't that the age that we live in? that we want to see people who have it all lose it all? i mean, it's -- it's dramatic. >> and then climb their way back? >> right. it's a movie. >> but for all her outrageousness, lady gaga insists that the collapse will not happen because she says she's not really that kind of girl. and you can see the entire interview with lady gaga this sunday on "60 minutes" at 7:00, 6:00 central right here on cbs.
fashion week is under way here in new york, with lots of glitz and glamour. and that costs a lot of money. but one designer is on a very different road with the newest 3-d virtual technology. >> reporter: mark bower is ready for fashion week. he's got the supermodel, hair and makeup, a crew of 50. what he doesn't have is a runway. that's because bower is thinking outside the tent, having dressed everyone from angelina jolie to kim kardashian he's ditching the runway for a cheaper superhighway. >> you kind of get lost in the shuffle and you have to have something that sort of sets you apart from everyone else. >> reporter: that something is a virtual term that bower took a few seasons ago, producing his runway shows online. no front row. no olson twins. but this year, he's pushing it even further. he's going 3-d. here's how it works. it's all shot in this green room, then the computer
animators go to town with the special effects. shooting stars, doves, anything under the sun. if you want that avatar look, they can do that, too. >> we have to match angles. we have to match focus. it's a very meticulous process. >> reporter: the animation here at bravo media isn't cheap. it can cost up to $1 million. but you can save buckets using just one model. do you find that there's less cattyness backstage because it's just you? >> no, the chicks back here are just mean. someone stole my shoes. >> reporter: but perhaps the biggest benefit is all that buzz. >> it's all that image building. this is what people will see all over the world. >> reporter: a 3-d feast for the eyes, that's adding a new dimension to fashion. cbs news, new york. >> kind of cool. coming up later on "the early show," a live update from egypt as president mubarak hangs onto power, and the reaction from the
white house. also, making your food last longer through some simple tricks that will save you money on your grocery bills. and a chat with actress jennifer aniston on her new romantic comedy "just go with it." that's the "cbs morning news" for this friday. thanks for watching, everyone, i'm betty nguyen. have a great weekend. ,,
a great change is at hand and our task is to make that revolution, that change, peaceful and constructive for all. those who look only to the past or the present, are certain to miss the future. do not pray for easy lives. pray to be stronger men. ask not what your country can do for you. ask what you can do for your country.