defense secretary chuck hagel sees the u.s. militarily of the future as smaller, more focused and more high tech. >> we're entering an air where american dominance in the seas, skies and states can no longer be taken foregranted. >> reporter: hagel's plan will shrink the army to its pre-world world ii. and spy planes and reduction of military benefits. hagel calls it a reshaping, after a decade of war to adjust to smaller budgets. >> the reality of reduced resources and a challenging and changing strategic environment requires to us prioritize and make difficult choices. >> reporter: hagel is confident the military can make do with less, with new technology employed to fight the wars of the future. >> we're going to become a drone and pilotless military. >> reporter: cbs military consultant lyons said it's going to be hurt. some experts foresee a dramatic economic impact. >> the use of bullets most of them are made right here in the united states. a lot of factories will be closing. a lot of people will be out of work. >> repor

secretary hagel saying that we need to reduce. that we are trying to create a force that can adapt and attract . it is going to be an ongoing debate. we do not know what happens tomorrow. it could fundamentally change the discussion entirely if we had another major terrorist event in this country. an emerging threat from north iran. we do not know what is down the pike. we can only prepare for what we think is going to happen, which is what we are trying to do. as far as congress, will you see republicans and democrats fighting against the changes that the secretary of defense wants to make? sides you often see both working together. one of the things the pentagon wants to do is eliminate the a-10 warthog, this one to knows -- blunt nosed plane it is used with troops on the ground. even the air force tells you that they think is the best plane for protecting troops on the ground. secretary hagel says they have got to eliminate them entirely. you find republicans and democrats in congress joining forces saying -- you cannot elimina

chuck hagel will roll out the pentagon's plan to make that happen. we'll bring the announcement live and talk about what it means for u.s. national security. >>> also right now, the streets are calmer. the ex president is on the run. but ukraine's future is full of questions. he'll speak with the u.s. ambassador to the ukraine about what comes next. that's coming up this hour, as well. >>> and right now, president obama plays host to the nation's governor. on the agenda, the economy, health care, and just who might take over the white house in the election in 2016. >>> hello, i'm wolf blitzer, reporting from washington. we start with big cuts over at the pentagon. we're awaiting the arrival of the defense secretary, chuck hagel, and the chairman of the joint chiefs of staff, general martin dempsey. they'll be laying out the details of the new proposed pentagon budget and the cuts. you're looking at live pictures from the briefing room over there at the pentagon. once they come in, we'll go there, we'll hear what chuck hagel has to say. the "new york

. >>> before chuck hagel became secretary of defense or senator from nebraska he was in the army and fought in vietnam. and as david martin tells us, after years of searching, he finally found one of his long lost war buddies. >> reporter: it was 1968, the worst year of the vietnam war and sergeant chuck hagel didn't know from one day to the next whether he would live or die. >> we lost something like 16,000 dead americans in that year, 1968. >> reporter: his life was in the hands of lieutenant jerome johnson, his platoon commander. >> steady, careful. never excitable. and in combat, that's who you want leading. >> reporter: now secretary of defense, hagel keeps a photo of one of their battles together on his office wall. >> as we were going in and just everything -- everything blew. >> reporter: while the vietcong was trying to kill them, racial tensions especially after the assassination of martin luther king in april, were threatening to tear the unit apart. >> it was a terribly difficult racial year in the army in vietnam. where african-americans and whites were not getting along

secretary hagel said here is my recommendation. congress will have a chance to weigh in, but there is a budget cap. it's $496 billion. that's the cap they have to operate under. so they can say we don't like the mix that you have. we like something different. we like the older system than the newer system. we like a bigger army over a smaller army, but they have to make up the difference and come up with a recommendation that says how do we protect our country's interest? >> and secretary hagel has said we have a nimble more mobile army but we may not be respond to go two major things going on in the world at the same time. he said that he's going to do it, but he wants americans to understand what they're trading off. most people don't know what they're trading because most of us don't get involved in military decisions. we don't know what the underlying costs are. what is more important. more people and older stuff or newer economi equipment and more army? what one should we take. >> number up, we need to have the future of the u

secretary hagel said here is my recommendation. congress will have a chance to weigh in, but there is a budget cap. it's $496 billion. that's the cap they have to operate under. so they can say we don't like the mix that you have. we like something different. we like the older system than the newer system. we like a bigger army over a smaller army, but they have to make up the difference and come up with a recommendation that says how do we protect our country's interest? >> and secretary hagel has said we have a nimble more mobile army but we may not be respond to go two major things going on in the world at the same time. he said that he's going to do it, but he wants americans to understand what they're trading off. most people don't know what they're trading because most of us don't get involved in military decisions. we don't know what the underlying costs are. what is more important. more people and older stuff or newer economi equipment and more mobile army? what one should we take. >> number up, we need to have the future o

secretary hagel wants to bring it down to 450,000. but other areas would see increases however, special ops would see an increase of reportingly 3,000 members. he is shifting forces. secretary hagel insists this would not compromise national security. >> this country should be assured that we will retain the capability to defend our country and our interests around the world. i believe that our allies as well as our adversaries will understand that. thr there is no military in the world that is anywhere fear as capable as the american milita military. >> reporter: now the secretary had some harsh words for congress or some warning words should i say. he mentioned the sequesterrer, the military has had a break for two years. he said that would hurt national security and he also told congress hey, i'm coming back to you because we still need some base closures. congress is very reluctant to do that but secretary hagel says it really has to happen. tony. >> lisa these are recommendations as we mentioned at the top. does the pentagon have

secretary hagel plans to shrink the limit of attack jets. the plans will be laid out in hagel's first defense budget which according to the watt street journal includes limits on military pay raises and less generous military housing allowances. officials tell the journal the cuts will save billions of dollars needed to protect the millions of military spending. >>> after decades of frustration. dale earnhardt jr. won his second daytona 500. there was a 6:22 rain delay. when it resumed after 8:00 p.m. eastern. earnhardt took the lead and got his second victory. he radioed to his crew saying, hey, this is better than the first one. he finished second in three of the last four races from daytona where his father was killed in 2001. it was his first win in 56 race joos jason collins has become the first openly gay player to play in any of america's four biggest sports. signs a 10-day contract to play for the brooklyn nets. he was applauded in los angeles when he checked into the game against the lakers. the 7 footer did not score but played str

secretary of defense chuck hagel announcing a plan to reduce u.s. forces to pre-world war ii levels. and stocks are jumping. we're up almost 190 points on the dow, and the s&p has officially crossed into record territory. we will get to spain and washington in just a moment. tyler is out today. so bob pisani and simon are in at the nyse. gentlemen? >> this is actually quite a strong rally today. we punched through the previous high on the s&p, as you mentioned, up 1850, and we continue to make gains. bob pisani is with me. this is health care, energy and then some. >> that's right. it's really across the board rally. people keep writing in, why are we up 200 points. the answer is there's no fundamental reason why we would be up 200 points. it's a technical rally. put up the s&p 500. we started hitting intraday historic highs on the dow right after the open about 9:45. 1848 was the old closing high. you got to 1850. you see the move jump up right after the open. that's a technical move as we hit new highs, people started covering, volume picked up. y

it is a page out of jimmy carter's playbook. >> let me tell you what secretary hagel is going to say and what we believe he will argue for. he argues coping the military at the level of 13 years is financially unsustainable. >> you don't need an military who will fight wars two wars right now. but you need i military capable of defending this country. what he have seen. it is capable of defeating any enemy. and those kinds of words give you pause. a parentally they didn't do it the way most presidents have done. it jimmy carter is an exception and so is this president. what the military is to look like and force posture is based on your adversaris and your alloys. the obama team started with a number and backed in to the forestructure that is a formula for disaster. >> we are spending 53 percent of our discretionary budget on the military. would you be open to spending less? >> i am open to spending a lot less. but the problem is what you are going to cut. if you go back strategy concepts. what is china korea and venezuela. they talk in terms of having a more agile force and nimble f

. >> well, defense secretary chuck hagel was once an enlisted man. his life long church for a comrade in arms is next. t matte. ♪ at axa, we offer advice and help you break down your insurance goals into small, manageable steps. because when you plan for tomorrow, it helps you live for today. can we help you take a small step? for advice, retirement, and life insurance, connect with axa. for advice, retirement, and life insurance, it never holds my body hostage. it treats me with respect. it may seem strange, but people really can love their laxative. especially when it's miralax. unlike other laxatives, miralax activates water to work in 3 ways - hydrating, easing, and softening, to unblock your system naturally. so you have peace of mind from start to finish. what's not to love. it's also the #1 doctor recommended brand. love your laxative. miralax. to prove to you that aleve is the better choice for him, he's agreed to give it up. that's today? [ male announcer ] we'll be with him all day as he goes back to taking tylenol. i was okay, but after

hagel wants to clothes military bases and make other cuts. >> u.s. prosecutors want to extradite mexican drug kingpin el chapo guzman, arrest on saturday. >> a mystery illness has affected several children in california leaving them unable to move their arms or legs. as many as 25 children may have been affected. so far, doctors have only seen the disease in california. the supreme court remains divided over how much power the federal government should ever when regulating greenhouse gases. the justice heard arguments over the issue today pap decision is expected later this year. those are your headlines. "real money" is next. >> digital video and the need for speed. i'll tell you why the streaming deal when netflix and comcast could cost you money. also a modern day dust bowl in west texas where a generation cotton farmer tells us why prices are falling and the rain never does. i'm ali velshi, and this is "real money." ♪

secretary hagel saying that we need to reduce. that we are trying to create a force that can adapt and attract . it is going to be an ongoing debate. we do not know what happens tomorrow. it could fundamentally change the discussion entirely if we had another major terrorist event in this country. an emerging threat from north iran. we do not know what is down the pike. we can only prepare for what we think is going to happen, which is what we are trying to do. as far as congress, will you see republicans and democrats fighting against the changes that the secretary of defense wants to make? sides you often see both working together. one of the things the pentagon wants to do is eliminate the a-10 warthog, this one to knows -- blunt nosed plane it is used with troops on the ground. even the air force tells you that they think is the best plane for protecting troops on the ground. secretary hagel says they have got to eliminate them entirely. you find republicans and democrats in congress joining forces saying -- you cannot elimina

. >>> reporter: defense secretary chuck hagel sees the u.s. military of the future as smaller, more focused and more high-tech. >> we are entering an era where american dominance on the seas in the skies and in space can no longer be taken for granted. >> reporter: hagel's plan released monday would shrink the number of troops in the army to its lowest levels since before world war ii. it also calls for the elimination of the air force's a-10 attack jets and u-2 spy planes and the reduction. some military benefits. hagel calls it a reshaping after a decade of war to adjust to smaller budgets. >> the reality of reduced resources and a challenging and changing strategic environment requires us to prioritize and make difficult choices. >> reporter: hagel is confident the military can make do with less with new technology employed to fight the wars of the future. >> we are going to become a drone and pilotless type military. >> reporter: mike lyons says the changes will hurt. >> muscle will be cut, there will be smart individuals that the military

>> chuck hagel said this is the first away things will look like after years of war. the smallest since world war ii, particularly land forces. the army up to 570 tow troops in the army the president promised to end the wars in afghanistan and iraq of course and reduces to levels back to 490,000. defense secretary hagel is talking about more cuts down to 440 to 450,000 in the army. he's not only talking about changing personnel, it is a change in weapons systems and a whole new way of doing business. here is what the secretary had to say. >> after iraq and afghanistan we are no longer sizing the military for long sessions. we must retain our edge over technical adversaries. the military must be able to respond quickly to all contingency anies and be able to respond should any possible emergency occur. >>> sequestration was stayed for a couple of years for the pentagon. he warned congress that if they don't get rid of sequestration it will hurt military readiness. he warned congress and coming back for the third time the defense department is coming back to say you hav

chuck hagel says he must cut the size of the military. the majority in the army. from 525,000 to 440,000. >> we chose strength and structure active and reserve. in order to sustain readiness and technological superiority. >> by cutting numbers to not seen since before world war ii. he'd have more money for special forces and cyber war fair, it means that the us would not be able to fight two wars at the same time. >> this proposal represented a realistic way forward. >> the pentagon is under pressure to cut a trillion in spending in the next 10 years to balance the budget. >> hagel says it means closing u.s. bases. cutting orders for weapons, planes and ships. members of congress do not like any of these options - jobs and promises made to the troops. >> we are trying to solve financial problems on the backs of the military, that can't be done. if it could be done, it shouldn't be. >> despite the political objections, military analysts say congress and the public will have to get on board. >> i don't know of anybody comfortable with the inside that we can carry ou

and i think hagel will use that excuse to fund money to a political strategy. an excuse to get money in the home districts. but chuck, my problem with hagel's sleepyhead speech today is there is no strategy, other than a political strategy. when i look at it, for instance, the vice president just talked about the pentagon's notion a and the obamacare's notion, well, we want to cut the army so we won't be able to do another long-term occupation, that is like cancelling your fire insurance to prevent fires. the most versatile insurance we have for long-term stability and for long-term activities around the world remains the individual or soldier or marine. and what i want to see is a balanced force that makes sense and oh, by the way, you notice hagel didn't mention today, he talked about preserving the industrial base. he did not talk about the defense industry responsibility to the taxpayer. >> to get your reaction, pre-world war ii levels? little frightening. >> it is very frightening. decline is a choice. and the colonel is right. this administration, if ther

this is secretary hagel and the president are in charge of the u.s. armed forces, congress under article i is charged with funding them. you appropriately asked a pushback question about senator rubio. we have no business having the chairman or military spokesman be the lead on this debate. let congress and the media and the american people sort it out. you know, chairman colin powell used to tell us, make military arguments on their merit and let the politicians sort out how it eventually comes out. >> general, then on the substance, then, your views of this kind of reform? >> well, look, the biggest reduction in the armed forces in three-quarters of a century, putting the army back where it was in 1939 when my dad was sworn in prior to world war ii, you can't create a fire department after the fire starts. we're moth balling navy ships, we're standing down all the a-10 ground attacks air force planes, we're slashing the size of the army. this is a budgetary argument, not a national security argument. they need to step back and think what are we actu

chuck hagel has sent a proposal. william: served as secretary of defense -- william cohen served as the secretary of defense under william clinton. he also served in the house of representatives. toning us now to discuss the state of the military and the state of politics. you get that money, you figure out how to spend it. what is your take on the budget. >> it is the devil made me do it. the congress of the u.s. has mandated that the defense department take a half $1 trillion out of its spending programs. chuck hagel is now fixed on the problem. he has come up with a proposal to cut back on the number of personnel and that is where you get the quickest spin down in taking money out of personnel because that is where you have a very high costs involved. he is reducing the size of the military by some 70,000. some 30,000 out of the marines. he is cutting some old systems, retiring them and putting more money into new systems. if congress doesn't like it and congress controls the purse strings, the president proposes,

. >> chuck hagel is purposing a leaner and meaner army. cutting the active-duty soldiers to sq was 400,000. after iraq and afghanistan we are no longer protecting large -- conducting large operation, and putting a premium on smaller forces that can defeat technologically advanced adversaries. as outdated, costly cold war remnants, in favor of drones , many planes are being called -- areuite in this will being called to halt in this proposal. we need to defend our country and our interests around the world. >> chuck hagel said the obama administration will propose a new round of domestic literary base closings in 2017. congress has rejected such requests before. today's announcement comes a week before the president submits his new budget plan to congress. greta kreuz, abc 7 news. >> new at 5:00 p.m., arizona senator john mccain has joined a growing number of opponents outraged over a state will allow a business owners to reserve service too refuse say they refuse the right to serve there's a legislators. they do not say whether or not they

we're waiting for comments on chuck hagel. he's expected to recommend stiff budget cuts for the army specifically. i'm jenna lee. jon: and i'm jon scott. the pentagon expected to slash the number of troops in the army to less than half a million. that's a drop of at least 120,000 from the post 9/11 peak. chief congressional correspondent is life in washington with more on all of that. >> even those who say it's time to cut says there's risk in a dynamic and increasingly dangerous security environment. let's take a look at the manpower proposal for the army. today there are 520,000 active duty soldiers. the army had planned to reduce by 30,000 to $490,000 troops. secretary hagel is expected to announce a reduction to somewhere in the range of 440,000 to 450,000 soldiers. >> when i took office nearly 180,000 americans were serving in iraq and afghanistan. today all our troops are out of iraq. more than 60,000 of our troops have already come home from afghanistan. >> with the drawdown in afghanistan expected, some have argued uni

among the other recommendations: hagel also proposes freezing salaries of generals and admirals. and limiting pay raises for military personnel to one percent. he said delaying such decisions actually hurts morale. >> it needs to be done once so that our men and women and their families in uniform, those who have served and those who are thinking about serving don't constantly live under this cloud of uncertainty and threat, of well, "what are they going to do next year?" "are they going to take this out next year?" i don't want that. we can't have that. >> ifill: the pentagon budget proposal goes to congress next week. >> ifill: today's announcement was just the first salvo in what is likely to be a prolonged battle about policy and priorities. here to weigh those choices, are thomas donnelly, a defense and security analyst at the american enterprise institute. and gordon adams top white house budget official for national security during the clinton administration. he now teaches at american university. gordon adams, how significant are chuck hagel's proposal today and how neces

check hagel wants congress to fire -- follow him like a good soldier. politicians are sure to push back against cuts. we debate the future of the u.s. armed forces and home -- how much at all costs. buying 50,000 twitter followers. we will tell you what that means and it was worth it or not. has received how he quite a following which includes the music mogul jay-z. all that and more over the next hour. but first headlines from carol massar. >> after the close of u.s. training, lower fourth-quarter profit. the company's declined from the power plants it is building in the southwest. falling to $65 million from 150 $4 million earlier. the stocks are falling in after-hours trading. dreamworks posted fourth-quarter revenue that missed analyst estimates. video sales fell short and fourth-quarter results including a charge of 13 point $5 million related to the performance of turbo which was released in theaters. morgan stanley has agreed to pay $275 million to probe into the sale of mortgage backed securities in 2007. this hour, the u.s. senate panel is rele

hagel should be ready for some pushback. we heard from congressman mike turner this morning. >> that is right. a preview of what is to come from chuck hagel. a variety of forces from capitol hill. he will try to sell it on capitol hill. decembert deal back in , a continuation of sequestration, forcing hagel into tough choices. this budget represents the administration's best use of shrinking defense dollars. here are the highlights. the topline number -- $498 billion. he cannot go beyond that. he will propose to reduce the u.s. army troop levels to 440,000 from the current 480,000. that is the lowest we have seen since world war ii. two spy planes would be terminated. 1%ompensation increase of and significant benefit changes, including housing allowance changes, the benefit reductions over time, and there are some winners. the f 35 among them. it will be controversial up on the hill. >> what can we expect from congress? >> they absolutely will make changes. that is the history here. the defense department proposes and then c

chuck hagel wants congress to follow him like a good soldier. politicians are sure to push back against cuts. we debate the future of the u.s. armed forces and how much it all costs. and buying 50,000 twitter followers. we will tell you what that means and if it was worth it or not. victor cruz, how he has received quite a following which includes the music mogul jay-z. all that and more over the next hour. but first headlines from carol massar. >> after the close of u.s. trading, lower fourth-quarter profit. the company's declined from the power plants it is building in the southwest. falling to $65 million from 150 $4 million earlier. the stocks are falling in after-hours trading. dreamworks posted fourth-quarter revenue that missed analyst estimates. video sales fell short and fourth-quarter results including a charge of 13 point $5 million related to the performance of turbo which was released in theaters. morgan stanley has agreed to pay the u.s. sec $275 million to probe into the sale of mortgage backed securities in 2007. >> at this hour,

hagel is the guy to do it. he brings republican credentials to the table that makes it a little interesting for folks on right. keep in mind, going back to 2001, this is exactly what george bush wanted to do before 9/11 happened. so now the past is prolonged in the sense we're here at that point. you're going to hear a lot of screaming from both democrats and republicans, particularly those of military bases and industrial military interests in their states. >> you mentioned hagel's republican cred and your republican creds. >> and lack of republican creds. >> happy to have you on. >> thank you for that weird moment, it is awesome. >> super real. let's check back in on today's battle of the day. you remember, we ask you to weigh in on who has been stronger on ukraine by picking one of two hashtags, rfd obama or rfd putin. here's the latest breakdown. 55% said rfd obama. 45% said rfd putin. i'm surprised it evenly split and chuck chose rfd obama, tweeted, i think obama has expressed our opposition to what the go

secretary hagel defended the budget yesterday at the pentagon. >> these recommendations will adapt our defense enterprise a we can continue to protect this nation's security in an era of unprecedented uncertainty and change. if we continue on the current course without making his modest adjustments now, the choices will only grow more difficult and more painful down the road. we chose further reductions in troop strength and more structure in every military service, active and reserve, in order to sustain our readiness and technological superiority and to protect critical capabilities like special operations forces and cyber resources. sequestration requires cuts so deep and so abrupt that we cannot shrink the size of our military fast enough. under sequestration, spending levels, we would be gambling that our military will not be required to respond to multiple major contingencies at the same time. this is a budget that recognizes the reality of the magnitude of our fiscal challenges, the danger of the world we live in, and the american military's unique and indispensable role in the

secretary hagel defended the budget yesterday at the pentagon. >> these recommendations will adapt our defense enterprise a we can continue to protect this nation's security in an era of unprecedented uncertainty and change. if we continue on the current course without making his modest adjustments now, the choices will only grow more difficult and more painful down the road. we chose further reductions in troop strength and more structure in every military service, active and reserve, in order to sustain our readiness and technological superiority and to protect critical capabilities like special operations forces and cyber resources. sequestration requires cuts so deep and so abrupt that we cannot shrink the size of our military fast enough. under sequestration, spending levels, we would be gambling that our military will not be required to respond to multiple major contingencies at the same time. recognizesudget that the reality of the magnitude of our fiscal challenges, the danger of the world we live in, and the american military's unique and indispensable role in the security of

chuck hagel announcing the cuts and acknowledging a smaller force means a greater risk. it means the army will have a smaller capacity. they would be able to fight one major ground operation but not two as we have been able to do in the past as we were able to do in iraq and afghanistan simultaneously. it will cut down our capability and increase our risk. all 11 aircraft carriers will be maintained. some members of congress aren't

so much so that secretary hagel has said they're goi to be tough choices made in this. our folks ready to see some of the tough h choices the pentagon might be making? >> am not sure. i think you are exactly right. what we ended up with was flat defense budgets.. the challenges we are facing around the world are not flat. they are growing that means some tough choices have to be made. i'm not sure all members of congress recognize that. that will l be part of our challenge as we go through the committee process and out onto the floor. i think it's going to be clearer to people, and i hope they are ready. they need to understand the consequences of these flat defense budgets. >> over t past several years, congress has authorized more funding than the pentagon has asked for. is congress going to abide by its own spending caps this time? >> yes, and i think that's the big difference. last year, we dinot know how much money would ultimately be spent on defense. this year, we know. it is set. authorizer zen appropriators know what we have the work with, and while that is a m

and hagel said special forces will be revamped to deal with counterterrorism operations, and regional conflicts. he also proposed retiring old bombers and manned surveillance aircraft and shifting financial resources to unmanned drones and cyber warfare. >>> members of the u.n. security council have seen dramatic changes over the last week in the leadership of ukraine. lawmakers removed president viktor yanukovych from office after months of protests. and now they're trying to launch a transitional government. but u.n. delegates don't agree on how things are being done. representatives debated the situation in ukraine as part of a session on security across europe. protesters hit the streets in november after yanukovych backed away from a trade deal with the european union in favor of closer ties with russia. >> we have consistently advocated a de-escalation of violence, constitutional change, a coalition government, and early elections. >> the russian ambassador didn't agree. he said setting up a transitional government by force would solidify the change of power and he warned it wou

. >>> meantime, the president's defense secretary, chuck hagel, will preview the new pentagon budget today, and it includes painful cuts that, among other things, will shrink the army to its lowest, smallest fighting force since before world war ii. >> that's a big headline. >> it really is. pentagon officials say the budget cuts will result in a military that's too small for any protracted foreign occupations. the hagel plan also calls for slashing military benefits, limiting pay raises, increasing health care premiums and reducing housing allowances. he is also recommending a one-year pay freeze for top military brass. >>> the obama administration is still weighing its options for a continued military presence in afghanistan beyond this year. one of four options reportedly being considered by president obama will leave 3,000 troops behind based in kabul and the american installation of bagram. they have recommended 10,000 troops remain in afghanistan. defense secretary hagel expected to brief his nato counterparts in brussels this week on what the u.s. is currently thinking. >>> in

without these cuts, hagel predicted dire consequences. "we will inevitably have to cut compensation more deeply or deprive our men and women of the training and equipment necessary to succeed in battle." hagel says brace for more cuts after this, including another round of base closures in 20-17. facebook founder mark zuckerberg "stole the show" with his keynote address at the mobile world congress in barcelona. the event runs through thursday and gives major tech companies the opportunity to roll out hot new gadgets. facebook recently sealed a deal with what's app. zuckerberg talked about buying the texting and messaging company for around $19 billion dollars. he defended the price tag monday, calling the deal a bargain. also monday-- nokia introduced its first android- powered smartphone. samsung also was a show stopper with it's new galaxy s-5. this new phone from samsung its water resistant, it's got a fingerprint sensor, a heart rate monitor, a slightly larger screen at 5.1 inches measured diagonally. it's got a leather like feel to

officials including defense secretary chuck hagel about russian intentions. we're monitoring this situation closely for our viewers. >>> other news, the obama administration today unveiled a plan to overhaul nutrition labels on the foods all of us buy. this would be the first upgrade since the government started requiring the labels back in 1990. the first lady, michelle obama, says the idea is to make it easier for all of us to eat a bit healthier. >> as consumers and as parents we have a right to understand what's in the food we're feeding our families because that's really the only way that we can make informed choices by having clear, accurate information. and ultimately that's what today's as you heard today for the first time since the nutrition label was developed two decades ago, we are overhauling the labels to make them easier to read and understand. >> bringing in the chief medical kor respondent sanjay gupta. you had to chance to compare them to the old labels. what are the major differences? >> the most important thing is the type of information

hagel is talking about reducing the military from where it now is. and that's the first time i can remember secretary of defense doing that in a long time. so i would -- i would take it at that and say, okay, yeah, i'm glad you recognize that we are way overstaffed and are spending way too much, but let's go and follow the logic of this. and that's why i said within the context that we've had, hagel at this point, the first secretary of defense in a long time under democrats or republicans, they're talking about reducing the military budget he inherited and i'd like to work with that. >> yeah. and, see, having this be day one of the debate, i think it's a fascinating place to start. i honestly have no idea where it ends up. former democratic congressman -- >> the american people can influence this. they don't want to see everything we do to promote the quality of life at home, devastated on the deficit reduction, they have to say, you know what, this reduction in military that hagel is talking about at the current level is a good start, but it's only

defense secretary chuck hagel is recommending billions of dollars in annual budget cuts that would limit pay raises and increase health care premiums. under the plan, the army would shrink to the smallest force since the world war ii build-up. likely to face fierce opposition on capitol hill. >>> the nation's governors at the white house again today. they had dinner with president obama sunday night as part of their winter conference. and today the president will urge them to team up for what he calls a year of action. the message, if congress won't act, then the white house will work with the states directly to get things done. >>> some bad news this morning

. >>> today defense secretary chuck hagel is expected to propose deep cut s to the u.s. military. new york times report the plan includes shrinking the u.s. army to its smallest size since before world war ii. secretary hagel also plans to eliminate the entire fleet of air force a-10 thunderbolt 2 attack jets because of their limited capability. the plans will be laid out in hagel's first defense budget which according to "the wall street journal" also includes limits on military pay raises, higher fees for military health care benefits, and less generous military housing allowances. officials tell the journal the cuts will save billions of dollars needed to protect other critical areas of defense spending. >>> a call for a year of action -- president obama making another call at the white house. in a nod to governors in the audience, possibly eyeing to replace him, come 2015. >> tonight we want to make sure that all of you make yourselves at home, to which i'm sure some of you are thinking, that's been the plan all along. >> all right. got to take note of the seating arrangement.

the afghan president has not signed that deal so now chuck hagel is going back to brussels. he's going back to meet with these defense ministers tomorrow and there's no deal like he said he thought there would be. and if there is no deal to keep u.s. troops there after the end of this year as the chairman of the joint chiefs said to jim miklashevski today, if there is no deal, there will be no u.s. troops in afghanistan come january 1st. the white house double underlined that saying we cannot and will not have troops on the ground without a signed deal. the president, himself, apparently triple underlined that today in a direct one-on-one phone call with hamid karzai, president of afghanistan, after which the white house released this statement. frankly, if you're used to reporting on this longest war in american history, this is kind of a breathtaking thing to see. look. the president asking the pentagon today to ensure that it has adequate plans in place to accomplish an orderly withdrawal by the end of the year should the united states not keep any troops in afghanistan a

defense secretary chuck hagel pushing for them. who is your guests today? >> up preemed allied commander, wesley clark, retired u.s. general. we had another retired nato supreme allied commander. i like those supreme allied commanders. so what is going on? they are going to cut a bunch of troops, eliminate some pretty sophisticated weapons systems. there's a whole new thought going on that chuck hagel will announce and we'll take a closer look at what is going on with the d.o.d. >> wolf blitzer -- i'm trying to give you a new title. you're resisting it. >>> you recognize him from ghost busters and "stripes" but some of his best work happened behind the camera. the amazing career of ak are ct writer, and director harold ramis. that's coming up next. wow, my headache is gone. excedrin really does work fast. not gonna happen. excedrin ends headaches fast. in fact for some, relief starts in just 15 minutes. excedrin. headache. gone. gone. an entirely new menu created with your busy schedule in mind. pronto lunch starting at $6.99. handmade italian sandwiches, f

defense secretary chuck hagel is set to have billions of cuts. it will limit pay raises and reduce benefits for service members. it will likely set off an epic fight on capitol hill. we're getting wind of that. we have more from general jack keen coming up minutes away. >>> also developing this morning, russia apparently ready to flex even more muscle in ukraine after days of violence in that capital. >> they've called a threat to moscow to russia's interests. what will they do about that? good morning, everybody. i'm martha. >> good morning, everyone. good morning, martha. >> i'm in for bill hammer today. the current government issuing an arrest warrant for the president, viktor yanukovych. he's wanted for the killing of more than 80 protesters last week. many of whom were cut down in cold blood. he disappeared yesterday as the violence came to a head. no one knows where he is. he was turned back at the border as he tried to flee russia. >> what a story this is. amy's been following this. streaming live from moscow for us. where do things stand

here are some of hagels other proposals. eliminating the a-10 attack aircraft, which is known commonly as the ward hog, and possibly closing some military bases. president obama is expected to propose a 1% pay hike next year for federal workers. the president is scheduled to include the pay raise in his budget proposal next week. the federal government civilian workers got a 1% raise in january after 3 years of pay freezes. the white house says even a modest increase will help keep the best and brightest in public service. >>> in the midst of the drought, the south bay neighborhood watched as up to 1 million gallons of water was flushed into a dry creek today, most of it going to waste. only on 2, ktvu's robert honda reports, santa clara officials say their options dried up. >> reporter: water gushing into saratoga creek in santa clara is an unexpected sight during the drought. especially after the santa clara water district decided it would no longer release water into creeks and streams. so after seeing water being pumped

that is why for many parts of the military secretary hagel chose to reduce capacity, the quantity of forces available for global engagement deterrence and crisis response. in order to ensure those forces were properly trained and clearly superior in arms and equipment. i also know mckinsey and others have written about the need to pare back the department overhead costs in the proverbial back office. the idea being that squeezing more savings out of that dock office copy the need to shrink the military further. during last year's skimmer we did take a hard look at the pentagon bureaucracy the office of the secretary of defense headquarters joint staff and agencies in field activities and found that some reductions are necessary in some savings are possible however achieving savings in the military proverbial tale takes several years and produces significantly less in bankable savings than is commonly believed. furthermore analysis shows that dod's headquarters structures comprise just over 2% of its personnel and 1% of its budget. one always said and done an enterprise of the u.s. mi

the afghan president has not signed that deal so now chuck hagel is going back to brussels. he's going back to meet with these defense ministers tomorrow and there's no deal like he said he thought there would be. and if there is no deal to keep u.s. troops there after the enof this year as the chairman of the joint chiefs said to jim miklashevski today, if there is no deal, there will be no u.s. troops in afghanistan come january 1st. the white house double underlined that saying we cannot and will not have troops on the ground without a signed deal. the president, himself, apparently trip l underlined that today in a direct one-on-one phone call with hamid karzai, president of afghanistan, after which the white house released this statement. frankly, if you're used to reporting on this longest war in american history, this is kind of a breathtaking thing to see. look. the president asking the pentagon today to ensure that it has adequate plans in place to accomplish an orderly withdrawal by the end of the year should the united states not keep any troops in afghanistan aft