up. and a motorcycle crashes into a chp car overnight. lanes remain blocked along the peninsula. details coming up. good morning, everyone. it is friday, february 11. i'm sydnie kohara. >> hi, everybody. i'm frank mallicoat. the time is 6:00 straight up. we begin this morning with some breaking news this out of egypt. cbs news and the "associated press" are reporting that president hosni mubarak has left the city of cairo. sources say he left for a resort area in southern egypt near the red sea. these are live pictures from cairo. he is expected to return back to the city. hundreds of thousands of protestors continue to demonstrate against the egyptian government today. president mubarak is refusing demands to step down and instead, he says, he is transferring most of his power to his vice president. egypt's military says it is supporting mubarak's plan to stay in office.

egypt's military today promised to lift unpopular emergency laws as soon as the protests end. in about 20 minutes, we'll have a live update from a reporter on the ground in cairo. that's coming up. in other news, an empty car turns up near devil's slide belonging to a missing couple from riverside. and this morning, there is a surprising new development. let's go to anne makovec. she is at highway 1 to explain. anne, good morning. >> reporter: good morning. so many questions this morning. we have a missing couple and a suspicious death investigation all going on. right now, the search for the couple has been called off. devil's slide here behind me along highway 1 is re-opened, that is where this couple -- the vehicle was found yesterday. so sheriff's officers shut it down looking for the couple. they didn't find them and re- opened the road. here are the pictures of the two people they have been looking for. they were last seen on monday. they are from riverside. colleen and billy waterman.

so they are missing. in the meantime the body of a woman was found in san francisco in a motel room on lombard street. billy waterman is wanted for questioning in that case which right now is only being called a suspicious death. we don't know how that woman died. we don't know who she is. could she be colleen waterman? and will they continue to search for the couple here in this area of san mateo county today? a lot of questions. we'll be following this for you today. sydnie. >> anne makovec at devil's slide, thank you. the attorney for barry bonds is back in court this morning. he will be asking a judge to prohibit secret recordings of a conversation that took place in 2003. it involves a business partner and a sports trainer who talked about steroids and needles. today's hearing comes one day after federal prosecutors dropped six charges against bonds in his perjury case. the former giant is accused of lying to a grand jury about his use of performance-enhancing drugs. that trial is supposed to start

march 21. special patrols in the east bay. christin ayers is in richmond where bus drivers are worried about being shot. >> reporter: good morning. i just got off the phone with an a.c. transit spokesman. he said in north richmond there have definitely been some targeted violence involving a.c. transit buses. some of that violence leading off the streets on the buses others being specifically targeted at buses like the one on wednesday. deputies will now follow bus line 376 through richmond 8 p.m. to 3 a.m. every night. the move comes after a shooting wednesday. a group of 8 or 10 hooded men walked up to a bus at an intersection. instead of getting on board the bus, they opened fire even though no one was shot. a high school student was injured when shattered glass

hit him in the face. yesterday the bus union took a stand boycotting bus line 376 unless an escort was assigned. >> last night wa enough. no more. >> if they really wanted him, if they really intended to shoot him, they would have shot him. that's how close they was. >> reporter: that was a relative of the young man who was injured. he is now recovering. authorities with a.c. transit say this is not an unprecedented move. but it is certainly a very targeted move. they are intensifying those efforts and focusing in on that particular bus line. they say in 2010 there were about 10 different attacks that came on board or affected a.c. transit bus lines. already this year there have been five attacks. >> thank you, christin ayers. it is 6:04. let's check weather and traffic. we'll start with lawrence. we have been enjoying this sunshine. is it going to last through the weekend? >> yeah, that's the big question. a lot of people have plans.

think, folks, if you want to enjoy a nice dry weekend do it this weekend because after that, major changes in the works. 33 degrees in santa rosa right now. 40s inside the bay this morning. skies mostly clear. but it's chilly. by the afternoon, looking great, lots of sunshine coming our way a few high clouds. 70 in santa rosa 67, 68 redwood city, 78 in san jose. weekend looks good but a major change in the weather is coming our way. we'll talk about that coming up. let's check on traffic with elizabeth. >> thank you, lawrence. let's go out to chopper 5. we are trying to get some more information about this accident that happened around 9:30 last night. i believe we're live over the scene now. this is in san carlos southbound 101 near holly. there was an accident last night where a motorcycle rider slammed into a chp cruiser. the patrol car tried to

initiate a traffic stop. one person was killed in this accident. it happened around 9:30 last night. for a while all lanes of southbound 101 were shut down. right now you're looking live and only one lane is blocked off the far right lane. we also were just getting some more information that there's some roadwork along that stretch in san carlos as well running a little late extending until about 6:30 this morning. so obviously some traffic concerns there. traffic is still light though so we have not seen any huge delays. but again this is southbound 101 through san carlos right there near the holly street exit where we are dealing with some problems this morning. thank you, chopper 5. let's go to our maps. the san mateo bridge so far, so good except for that problem there, everything else quiet cross the bay area. westbound 92 looks good past the toll plaza. no problems in either direction across the span. all right. we'll take a look at our usual slow spots during this time of the morning. westbound 580, brake lights

outed of pass. back to you. >> thank you. it is 6:06 on your friday. it is the who's who of possible presidential candidates for 2012. what donald trump said about one person and why he can't win it. >> also ahead, protecting your privacy online. what businesses could no longer do if one bay area congresswoman gets her way. ,,,,,,,,,,,,,,,,

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found guilty of killing his girlfriend and setting their . all right. looking at another great day outside. a little chilly to begin. by the afternoon, temperatures soaring up into the 60s in many spots. we'll talk about the weekend coming up. hi, everybody. welcome back. a palo alto hookah lounge owner is found guilty of killing his girlfriend and setting their home upon fire. paul zumot was convicted 6 first-degree murder and arson yesterday. prosecutors said it capped off a two-year relationship filled with domestic violence. zumot will be sentenced in april facing 33 years to life. his lawyer says they plan to seek a new trial. the man convicted of killing d.c. intern chandra

levy will be sentenced. ingmar guandique was convicted of first-degree murder despite no dna evidence linking him to the cry and no witnesses. chandra levy was linked to california representative gary condit. she was a native of modesto. the donald is talking about moving to washington. billionaire donald trump talked with a group of conservatives about the possibility of running for president. "usa today" reports trump was one of nearly a dozen potential presidential candidates who spoke at the conservative political action conference in washington. >> frankly, i wish there was a candidate that i saw that would be fantastic because i love what i'm doing. in fact, i have a great club that is 15 minutes away. >> no! >> by the way, ron paul cannot get a elected, i'm sorry to tell you. [ applause and cheers ] >> trump told c-pac that the united states is become the laughingstock of the world. he said he will decide by june whether or not to run. that would be an interesting

campaign , huh? >> it would be a fun campaign. it would be fun just to see him -- if he was actually in that office, how he would handle stuff. >> you can't just say, you're fired. >> you're doing this you're doing it right now. the time on this friday right now is 6:12. we're continuing to follow some developing news out of egypt. new word that the president mubarak has left the city of cairo. where he is heading coming up. plus the push to keep your online information private. >> and there is more to a box of chocolate than sweet sentiments. the unique and unusual ways people are whipping up decadent desserts. it's all yours when we come back. and lanes still blocked along the peninsula on 101. police continue their investigation into an overnight fatal accident. we'll have details on that plus a look at the bay bridge toll plaza. it's all coming up. ,,,,,,,,

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good morning. just getting up? we have some great weather coming your way. of course, the week send upon us. so far looking good. chilly in the area with 30s and 40s. patchy fog at the coastline. this afternoon, other than a few high clouds, looking great. temperatures spring-like. 60s and low 70s in the interior valleys. not bad even out by the coast

mainly in the 60s. but there are changes in the works. high pressure showing signs of weakening. already looking at clouds moving over the ridge as it starts to weaken and patchy fog at the coast. the question, will we stay high and dry for the weekend? i think so. it looks like that ridge is going to hold on long enough but through the weekend it will break down. as it do, of the jet will drop and here we go as it does. more clouds moving into our skies. by monday a possibility of some rain. so enjoy the sunshine while we have it. looking at 68 degrees los gatos today, 69 cupertino. about 68 redwood city. and 67 in union city. east bay temperatures all headed up into the 60s with plenty of sunshine. and some pretty comfortable weather. looking out toward the north bay mostly sunny skies could hit 70 degrees in santa rosa today and about 69 in petaluma. all right. as we look toward the weekend, we are going to keep things dry just a couple more clouds

headed our way but come next next monday and tuesday, major changes. we are headed back to a wet weather pattern for the first few days and looks like we'll than a as we head in toward the middle of the week, as well. that's a look at weather. here's elizabeth with traffic. let's go to chopper 5. the investigation still continues this morning after an overnight fatal accident. it actually happened around 9:30 last night while they had all lanes blocked. right now it looks like they just have the far right lane blocked off. southbound 101 this is right near the holly street exit. this is an accident involving a motorcycle and a chp car. again, one person was killed. that investigation we just got off the phone with chp and they tell us they hope to have all lanes re-opened here in the next 15 minutes or so. hopefully by about 6:30. we saw a couple -- we saw what looked like a tow crew leaving the scene about five minutes

ago. traffic light on 101 it's not making a dent so far in the morning commute. westbound 580 out of the altamont pass not too bad. it's definitely friday. 6-minute commute there from the altamont pass to the dublin interchange. and we are starting to see a few red sensors now through antioch but again overall not too bad. at the bay bridge toll plaza, no metering lights yet. we are starting to see slight delays from some of the cash lanes. it looks good up the incline looking good heading into san francisco this morning. everything look great out of downtown san jose. northbound 280, right before the 880 interchange, cruising on 101 towards santa clara. and earlier bart problems, but now everything is on time including bart, ace, muni and caltrain. remember our radio partners when you hit the roads, kcbs

740-am and 106.9-fm. back to you. >> thank you. here's a look at some of this friday's top stories. egyptian president hosni mubarak is apparently not hearing the thousands of protestors in cairo today. cbs news reports mubarak has left town temporarily for a resort area in southern egypt. that after he disappointed anti- government demonstrators last night by saying he will not step down until his term is over in september. in a few minutes we'll have a live update from a reporter on the ground in cairo. and a daylight research will resoup for a riverside couple missing since monday. their empty car turned up yesterday near devil's slide. police say in san francisco a woman's body found in a motel may be part of the case. a.c. transit buses are getting armed escorts at night after a shooting that targeted a north

richmond route wednesday knew the. now bus on that line at night will be followed by a sheriff's patrol car. keeping your information private this morning on capitol hill jackie speier plans to unveil the do not track me bill. it calls for a system to allow internet users to protect their personal information. they would be able to opt out preventing marketers from collecting and using data from their online activities. today we'll hear what can be done to prevent another oil spill like last year's gulf of mexico disaster. members of the national commission on the bp deepwater horizon oil spill will be testifying in congress. they submit recommendations based on their final report which came out last month. the spill sent millions of gallons of oil in the gulf last summer after a deadly explosion. a pair of stories dealing with bankruptcy problems and on concerns a bay area pizza chain. >> also changes ahead for the san francisco police. the new type of training some new officers will have to undergo. ,,,,,,,,,,,,,,,,,,,,

welcome back. flied light at the bay bridge toll plaza. the metering lights, which are typically turned on by now, still remain 60. a check of your other bridges across the bay area, traffic coming up. 6:23 on your friday. it's just a few hours away now, a giant cruiseship will likely leave san francisco after some major repairs here, the carnival splendor was stuck off

the coast of mexico in november after a fire in its engine room. well, for the past three weeks, it has been in dry dock getting a new engine and two new generators installed. this morning, the 13-story-high ship will go out to the middle of the bay for a leakage testing. if all goes smoothly there, it will then immediately head south to long beach to pick up passengers. caltrain passengers are getting a chance to sound 60 about plans to reduce service -- to sound 60 about plans to reduce service and -- to sound off about plans to reduce service and increase fares. they are trying to close a $30 million budget deficit. the first of four public meetings will be held monday night at san jose city hall. meetings are also scheduled later in the week in gilroy, san carlos and here in san francisco. is it the final act for blockbuster? the video rental chain is reportedly putting itself up for saturday.

carl icahn and creditors couldn't agree. a sale could generate $300 million. you remember when it was on all the corners? it's hard times against modern competition like netflix. roundtable pizza has filed for bankruptcy. the concord based company hopes to restructure its leases and financing. there are no immediate plans to close any of the restaurants. but some outlets may eventually shut down. roundtable has almost 500 restaurants in 7 states. it all began with a single pizza parlor in menlo park in 1959. valentine's day, it's just three days away. that's a little reminder for me, too, actually. it's on monday, huh? >> exactly. there may be more to the box of chocolates instead of sweet sentiment. there is no proof that it's an aphrodisiac but some say chocolate had a key role in some ancient romantic rituals in mexico and central and south america.

>> people definitely used chocolate to produce beverages that had important uses in ceremonial rituals such as a marriage. >> some industry experts estimate 58 million pounds of chocolate will be sold for valentine's day. i wonder if that includes all the m&ms out there. >> i'll be eating a few of those to be sure. hey, we're following breaking news out of egypt. cbs news reporting that president mubarak has left the city of cairo to a resort area near the red sea. in cairo protestors are in tahrir square and marching to the presidential palace. on the phone with us a cbs newsradio reporter. edward, good morning. what's the latest in egypt? >> well, more drama, arabia tv says that mr. mubarak is in [ indiscernible ] confirm that story. their correspondent who is a friend of the family the mubarak family also said it's

possible he goes somewhere else after that. i'm not sure what she meant by that. in any case the demonstrators have surrounded his palaces both north of cairo and in alexandria trying to pressure him and on the military they are also surrounded the state's tv building, not letting people go in or out but the tv is still on the air so it's a bit of a tense moment. >> edward, how far away are you from the square and give us a feel? there has been some bloodshed but this has been sort of a quiet coup. >> reporter: well, bloodshed, there was bloodshed last week. not within the last couple of days. i have -- right this minute, i'm across the river maybe about 15, 20 minutes away from the square. i was there earlier this morning. the crowds were not as impressive as they are right now. people gathered for midday prayers. the sheik who is giving the

sermon was trying to rev up people. i was listening to him on al- jazeera tv and it sounded like he was preaching fire and brimstone. but that's only my take. there was also someone in alexandria who is giving something of a fiery speech as well, sermon, as well. >> and we not protestors were certainly disappointed that mubarak didn't officially step down yesterday. what are their plans today? what do they want to happen? >> reporter: well, that's the important question that we're all asking ourselves. they are saying they want him to leave. they still want him to leave. they are disparate groups. it's a mosaic opposition of different sorts of groups that are participating in the demonstrations. i think the sense is that they would like to see him go and many are saying they want to see the regime fall completely. the problem is when you go to other parts of cairo, people are not as enthusiastic about those demands. many people have told me they don't want to see' total

meltdown of the egyptian government. they don't want to see a total meltdown of the egyptian stake, the economy is hurting badly. if people don't go back to work, it's going to cause incalculable damage. >> edward with cbs radio news covering the crisis in egypt, thank you. we appreciate your time. we'll continue to follow the crisis in egypt as it develops. we'll be right back. ,, ,,,,,,

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your realtime captioner is linda marie macdonald. caption colorado, l.l.c. comments@captioncolorado.com good morning. happy friday. it's february 11. i'm frank mallicoat. >> i'm sydnie kohara. thanks so much for joining us. your time is 6:32. a missing couple from southern california a car found near devil's slide and this morning a new twist to the story when a woman's body is found in a hotel here in san francisco. anne makovec at highway 1 has been covering the story all morning long, has the very latest. anne. >> reporter: yeah. a lot of questions this morning including will they continue to search for the missing couple here in this area in san mateo county? i'm right near devil's slide right now along highway 1. i talked to a sheriff's deputy this morning. they have not yet made the decision on whether or not they will continue the search here. in the meantime, there was a body found yesterday in a motel room in san francisco and police are investigating that

in connection with this missing couple. that was a suspicious death. let me show you the pictures of the couple here. this is the couple that has been missing since monday. they are from riverside billy and colleen waterman. last night sheriff's depth test found their vehicle parked alongside highway 1 near devil's slide. they closed the road and searched the area. they did not find the couple, then they re-opened the road. as i mentioned, meantime, the body of a woman was found in san francisco in a motel room on lombard street. billy waterman is now wanted for questioning in that case which again right now is only being called a suspicious death. we are hoping to find the identity of the woman who was found dead and whether or not they belief this could be colleen waterman or why they think billy could be connected. a lot of questions. >> thank you, anne makovec live at devil's slide. it is 6:33. gunmen have been shooting at

buses in the east bay. so armed escorts will follow the buses. christin ayers reports. >> reporter: good morning. this truly is more of a targeted effort than we have seen on board a.c. transit buses after a series of attacks, bus drivers and riders getting fed up after an attack on wednesday in which an a.c. transit bus was shot in north richmond. so the drivers union took an unusual stand requesting that that particular bus line receive an armed escort and the sheriff office has agreed with that. the unions refused to drive bus line 376 through north richmond without an armed escort that. he is scored started following the buses for the first time last night and will continue indefinitely between the hours of 8 p.m. and 3 a.m. daily. the move comes after that shooting we mentioned that was on wednesday on that very line. the bus driver told us that 8

to 10 men wearing hoods approached the bus at third and grove but instead of boarding they started shooting, spraying the bus with bullets. no one was shot but a teenager was injured when shards of glass hit him in the face. the teen's relative said it could have been worse. >> i had taken action not to drive the line. i have told the operators that if there is no sheriff, we will not go through north richmond. >> reporter: now, union officials tell us last year was a violent one but this one is shaping up to be even worse. in 2010, there were about 10 attacks. this year so far there have been five already. so again, a very targeted evident to try to stop violence on the bus line. >> thank you, christin ayers in richmond this morning. and we continue to follow the developing news out of egypt this morning. cbs news and the "associated press" both reporting that egyptian president hosni mubarak has left cairo. sources say he left for a resort area in southern egypt.

about 250 miles away from cairo and near the red sea. but he is expected to return to the capital. meantime, hundreds of thousands of protestors converging on squares around the city and marching on presidential palaces and the state television building. president mubarak is refusing demands to step down. yesterday, he transferred most of his powers to his vice president. egypt's military says it is supporting mubarak's plan to stay in office. the time now:38. i'm going to give lawrence a small round after applause because it's my first weekend here in the bay area. it's 6:36. you have given me one really good day, lawrence, you're okay! >> compared to where you came from, this has to be something else! yeah, it's a little chilly to start in parts of the bay area this morning but just getting up, we are looking at a fantastic friday. this afternoon, it's going to be spring-like in some parts of the bay area again. 70 in santa rosa, 68 san jose,

67, sunny in pleasanton. a couple of clouds a few high clouds moving overhead. changes in the works though over the weekend. and major changes some rain returning to the bay area as we head toward this next week. all right. it's time for a traffic check with elizabeth. let's go to the maps. we have better news in san carlos. they have re-opened all lanes. we talked about this all morning. there was an overnight fatal accident. they had the right lane blocked off for several hours. and right now everything is back open. we never really saw a huge delay about it. it's friday, traffic light across the bay area. not really seeing a lot of brake lights. tow truck symbol means all lanes once again re-opened near the holly street exit. at the bay bridge, this is the best indicator of how well traffic is moving across the bay area. metering lights are off. only slight delays in the cash lanes there. but fastrak users are getting by just fine heading into san francisco this morning. coming up in our next traffic hit, stay tuned for our hi-5

segment. back to you. >> thank you. it is 6:37. the attorney for barry bonds back in court this morning. he is going to ask a judge to prohibit secret recordings of a conversation that took place in 2003. it involves a business partner and a sports trainer who talked about steroids and needles. today's hearing comes a day after federal prosecutors dropped six charges against bonds in his perjury case. the former giant is accused of lying to a grand jury about his use of performance-enhancing drugs. his trial is supposed to start march 21. and san francisco police officers will be getting crisis intervention training. it's all part of an evident to handle suspects with mental health issues. the police commission has signed off on a plan to train up to a quarter of the force. those officers could be called to the scene when there is a need to deescalate in situations involving people who are agitated, delusional or frightened. time now 6:38.

governor brown is trying to drum up support for his plan to tackle the state budget deficit. kcbs radio's matt bigler explains who got the governor's latest pitch. good morning. >> reporter: good morning. yeah, last night the pitch went to -- well, what has been enemy territory for governor brown. he spoke before a sellout crowd of the los angeles area chamber of commerce. a one. of business leaders. he -- a bunch of business leaders. he said basically, i need your support for my budget plan. that includes one of the most controversial parts at least for business leaders is this proposal to extend taxes temporarily and put that measure on the june ballot. he said the alternative is not good, steep cuts in state spending. before the speech, the governor has been meeting behind closed doors with business leaders, some of whom are from silicon valley, including john chambers, the ceo of cisco systems, and carl gardino. he is not committing to support

the proposal for temporary tax extension but he says the important things is to work together to fix the state budget mess. >> the opportunity is there for to us all move forward together if not on the same ballot measure at least concurrently through the legislative process so we're very open to the tough steps that our governor and legislature need to make and the role that silicon valley can play in helping them to get there. >> before this tax measure goes to the june ballot the governor may have to make some concessions that business leaders having asking for, namely regulatory reforms, pension reforms and limits on future state spending. that's the latest from here in san jose. back to you guys. >> okay, matt bigler at kcbs radio, thank you live from san jose. well, the time now is 6:40 and there is a big shake-up in the mortgage industry. it could change how you get

your home loan. >> and a firsthand account of the chaos in cairo. a bay area professor just back from egypt joins phil matier on the set to discuss it. >> and stock market just opening about 11 minutes ago. let's take a quick check of the early numbers. as you see, all the indices in negative territory. the dow jones industrial average down some 40 points in the early going. coming up we'll get an update from jason brooks with kcbs and cbsmoneywatch.com. [ female announcer ] for a limited time, get sizzler's 6oz, fresh cut, tri-tip steak plus our endless salad and dessert bar for just $10.99. sizzler. thinking fresh. everyday.

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up and running on this friday morning. folks, you just getting up, looks like a great day around the bay area. check it out for yourself! you have nice and clear skies again, high pressure overhead. but enjoy it, folks. we have some major changes in the weather pattern coming up over the next few days. in the meantime, though, it's chilly in spots. it looks good. numbers in the 30s and the 40s right now. we could see a couple of patches of fog at the coast. and occasionally maybe a couple of high clouds moving overhead. i think that's the worst of it as the temperatures again moving in the 60s maybe even some low 70s. a couple of degrees warmer than yesterday. so you get the idea. should be a fantastic friday. and looks like things changing a bit for the weekend. high pressure starting to break down somewhat. you will notice a few more of those clouds beginning to dump over the top of that rich and patchy fog at the coast.

otherwise here's the good news. we stay dry through the weekend. but after that it looks like major changes as the storm system now gathering off the coastline in the gulf of alaska. those will breakthrough and then looks like a series of storms headed to the bay area through next week. 68 degrees san jose today, 68 in san mateo, 67 union city. east bay numbers, 64 degrees and sunny in walnut creek. should be about 66 in berkeley today. how about the north bay? up to 70 in santa rosa, about 69 beautiful in petaluma. and 66 degrees in the napa valley. next couple of days looking great. weekend great staying dry. come monday chance of rain in the bay area looks like things staying unsettled well into the future after that. elizabeth has traffic. >> thank you. metering lights on at the bay bridge toll plaza but not a backup this morning. traffic shot kind of looks pretty with the sun coming up. so yeah, good commute now into

san francisco across the bay bridge. no big accidents out there right now, most of our overnight roadwork is picked up. problems along the peninsula gone. so we are off to a great start on this friday morning. westbound 237 your silicon valley drive looks great and same thing coming out of downtown san jose. live look at the northbound lanes of 280 right there where typically it tends to bottleneck in another hour or so right there near the 880 interchange. it is friday, and it's just past 6:45. hi-5 time. today we are going live to pacifica. this is the group from mazzetti's bakery. it's a family-owned business. they have been there for 35- plus years. they specialize in baking cakes and cookies for all sorts of special occasions. they are also very involved in the community. they have raised thousands of dollars for victims of the san bruno explosion. as you can see there from some of their heart shaped cakes, bomb it is valentine's day just around the corner so sydnie, frank, if you are looking for something sweet for your sweetie, check out

mazzetti's bakery. they have a lot of sweet stuff. there i haven't tried it but i have heard it's very good. >> you're making us hungry. >> lawrence says it's very good, too. >> we expect lawrence to bring some in for us. okay, elizabeth, mazzetti's bakery, sounds great. 6:47 on your friday what to do about america's mortgage lending system? subject of a big report out of washington this morning. >> details now from jason brooks with kcbs and cbsmoneywatch.com. good morning. >> reporter: good morning. fannie mae and freddie mac have been the bane of taxpayers. about $150 billion worth of bailout money went into the two mortgage giants. and now the treasury department has some recommendations on what to do about them. they range from completely pulling out the government out of backing mortgages and fannie and freddie back nine out of every ten mortgages out there to reducing the role in only coming in, in times of stress to moving to backing securities put forth by private companies.

there are some other recommendations in from the treasury department. and that includes not extending a provision that allows fannie and freddie to back mortgages upwards of $730,000. instead going back to a level of $625,000. that would have an obvious impact in the bay area where home values are so much. it would also force mortgages to have down payments of upwards of 10% on fannie and freddie-backed loans. so obviously, big changes that the government is looking at costing the government a lot of money to back those mortgages but we could see mortgage rates go higher from something like that. also i have a big marriage, a strategic marriage in the smart phone market between nokia, the big finnish phone maker and microsoft. nokia will use microsoft's windows phone 7 platform on its smart phones. nokia has been getting creamed by android-based phones as well as the iphone. stock market right now, once again starting out in a hole. a lot of uncertainty over egypt's future. the dow at this moment is down

by 35 points. nasdaq is off by nine. the s&p lower by five. yesterday, the dow lost its winning streak after being up for 8 straight sections. back to sessions. back to you. >> thank you. protestors back on the streets of cairo this morning. but the target of their demonstrations can't hear them. >> that's right. cbs and "associated press" report that president hosni mubarak has left cairo and has gone a resort in southern egypt some 250 miles away. he is expected eventually to return but there is no word on when. mubarak said yesterday he would not leave the presidency until his term is over in september. now, someone who just got back from egypt is dr. dina ibrahim and assistant professor out of san francisco state university. >> dr. ibrahim joins phil

matier. >> good morning. >> quite an eventful time back in cairo. you just came out of there. did you see this coming? >> i didn't. i thought that there would be massive demonstrations on the 25th of january and everyone would get shot at and killed and that would be it and we would go back to the dictatorship that we are used to. >> what changed? >> what changed was the protestors turned out in such huge numbers. hundreds of thousands probably millions of people who were protesting loud enough and strong enough that they overwhelmed security forces. >> the second thing that changed also is the military itself, which decided to say hands off, we are going to allow the protests. that was a big change. how does that bode for the next couple of days? >> in the next couple of day, the army is really going to be a very decisive factor in what determines the short term future in terms of the transition government. so right now, the army seems to

be split in terms of supporting mubarak, which they have done in official statements, basically saying that they endorse mubarak's statements yesterday. however, there are senior members of the military who are very unhappy. >> so the average -- between to put the satellite trucks on scenes like this at the square where we go to the most active, the most vocal, the most adamant. the whole population of egypt, what is it they want? do they want an islamic republic or iphones? what do they want? >> given the choice between an islamic republic or iphone, i guarantee you most egyptians will choose an iphone. some will say both. and we will have islamic parties represented in a new government. there is no doubt about that. i just highly doubt that they will win a majority of egyptian votes. these protests are clearly secular and clearly peaceful. so people want democracy. and i don't think there's any

interest in having an islamic republic at this time. >> if this is peaceful now, we're almost at a stalemate. the power is with the vice president but more protesters are in the town square and gathering. what's going to happen next? >> the key here is that the protestors refuse to turn violent. it's almost like they are being provoked, consistently provoked by president mubarak into turning violent. so then, you know, he can really crack down. >> how is that happening? we know the middle east. we know it's so volatile. why has it been somewhat of a quiet coup so to speak? >> because people of don't want it to turn violent. they know what can happen. people don't want it to turn violent. we saw a company. days of violence. we saw security forces shooting at people, over 300 people have died already. so it hasn't been an entirely bloodless situation. but on the other hand, if it turns violent it could get

seriously ugly. no one wants that. >> one thing that always seems to happen in these situations especially in the middle east is america becomes front and center one way or the other no matter what the administration is in d.c., they are either doing something right or wrong. so far america's role, how do you see it? >> damned if it does, damned if it doesn't. and it's a very difficult situation to be in right now. president hosni mubarak alluded to foreign pressure in his speech yesterday. and it's essentially trying to say it doesn't matter who calls me, i'm not going anywhere. >> we're going to see because that's pretty much where the stalemate stands right now. the army is out. the protestors are out. history is being made. thank you for stopping by. >> my pleasure. >> guys? >> thank you for your perspective. phil matier and dr. ibrahim. thanks so much. the time now is 6:53. the search for a missing couple takes a deadly turn. how a body found in a bay area

motel could be connected to the disappearance. got a story idea or comment you would like to share with us? email brian@cbs5.com. we'll be right back. switching to progressive could mean hundreds more in your wallet year after year. feed me! saving you money -- now, that's progressive. call or click today.

from riverside. and this morning there's a new development involv an empty car turns up near devil's slide. it belongs to a muscles couple from riverside and there is a new development involved in a suspicious death. anne makovec explains. the body of a woman was found in a motel room on lombard street in san francisco. now police think that that could be connected to the couple that has been missing for several days. their vehicle is found behind me on this roadway. highway 9 near devil's slide. that roadway is re-opened this morning which is very good news for commuters. but let me have you take a look at the couple's pictures because they are still missing this morning. billy and colleen waterman missing in riverside. last week deputies found their vehicle by devil's slide. they searched the area but they didn't find the couple but a body of a woman was now under in san francisco in a motel

room. billy waterman is wanted in connection with questioning in that case. right now, that case is being called only a suspicious death. so we don't know who that woman is. could that be colleen waterman? she is not wanted in connection with that case. so police have some questions to answer and hopefully we'll be having more information for you throughout the day. >> i should say lots of questions. anne makovec, live at devil's slide, thank you. 6:58. let's get one last look at weather and traffic before you head out the door. lawrence still looking for a little more sunshine before it changes. >> yeah. we are going to sneak in lots of sunshine and the weekend will be fantastic. high this afternoon into the 60s and 70s. high pressure holding on but more high clouds over the ridge for the weekend. should stay dry with changes into sunday. come monday, back to winter as a storm starts to move in. that will keep things unsettled and wet for the foreseeable

future after that. got some great news, though. the at&t national pro-am, always worried about the golf tournament in the middle of winter at pebble. looks like it's going to stay dry. temperatures there about 65 degrees. let's check on traffic with elizabeth. >> all right. thank you, lawrence. we have problems now in san mateo, a line of slow traffic northbound 101 as you approach 3rd. a multi-vehicle crash. traffic jammed for at least one exit. i'm not sure why this is going so slow right now. it's trying to zoom on the scene. all right. looks like our computer is having issues. all right there. we go. as you can see, it is slow through that area. let's go to another area. all right. we can show you a live look across the dumbarton bridge. quiet this morning crossing highway 84. no problems all the way towards menlo park. and at the bay bridge toll plaza, the metering lights remain on but obviously, no wait as you approach the pay gates. back to you. >> thank you. don't forget it's a big weekend for music fans. grammys