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tv   CBS Evening News With Scott Pelley  CBS  January 13, 2016 5:30pm-6:00pm PST

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travelers get a break? captioning sponsored by cbs this is the "cbs evening news" with scott pelley. >> pelley: this is our western edition. we're going to begin tonight with the spreading epidemic of lottery fever. americans have been buying tickets at a rate of $13,000 a second for tonight's drawing. since saturday, they have spent nearly $835 million for a chance at that elusive jackpot at the end of the powerball rainbow. it's now worth a record $1.5 billion. carter evans is at a store on the california-nevada border. >> reporter: there's just one reason to stand in 30-degree weather in the middle of the desert-- or, in this case, a billion and a half reasons. >> you get nowhere in life for not trying. >> next! >> reporter: thousands have been waiting to buy a ticket just
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valley lotto store in california because nevada is one of only six states that does not participate in powerball. mark mershant says this is his first time playing the lottery. so, you live in vegas now? >> yeah. >> reporter: you know a little bit about odds. >> a lot. >> reporter: these odds aren't so good. >> i don't know about that one. but you are a hater! >> reporter: it's no accident the jackpot soared. back in october, powerball changed the rules in an effort to boost ticket sales with a bigger payout. powerball started offering 69 numbers to choose from instead of 59, but that decreased the odds of winning the jackpot from 1-in-175 million to 1-in-292 million. the outlandish odds should keep people away. >> we're going to have a winner here tonight! >> reporter: instead, the lure of a life-changing jackpot is too much to pass up. how long did you wait in line? >> an hour and 40 minutes. >> reporter: to malcolm o'quinn,
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>> $20 for a billion and a half. >> reporter: there is one sure way to win, and that's to play every possible combination of numbers. but, scott, to do that, it would cost you $584 million. >> pelley: carter evans thanks. a little bit later in the broadcast, we're going to take you to the secure location where the winning numbers will be drawn. well, maybe a lot of those people are lining up after watching their life's savings shrink on wall street. today, the broad, continuing sell-off accelerated and all three major market indexes fell to a level more than 10% off last year's highs. the dow industrials have lost more than 7% in just two weeks. our market watcher, jill schlesinger, is joining us now. jill? >> reporter: this has been a rough first eight days. the dow is down by 7%; the nasdaq by 9.6%; and the s&p 500,
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so, it's been rough. >> pelley: why is this happening? >> reporter: you know, the broad concern is around global economic growth. the fear is that if things slow down around the world, it will impact us here in the u.s. we're only growing by about 2%, 2.25% right now, and, frankly, any kind of hit to that is going to hurt quite a bit. we also know that oil is trading at around $30 a barrel, another sign, perhaps, of global weakness. and finally, we're starting up with earnings season, and there's a real concern that this is going to be a bad quarterly earnings season. a lot of companies, pretty sluggish by the end of the year. part of the reason is, they had to hire more employees and that took a bite out of their profitability. >> pelley: so, tell us, when is this going to stop? >> reporter: i wish i knew, but here's what we do know: the hope is that the market sell-off really does sort of get a little bit of legs underneath it when we get some more information. so, maybe those corporate earnings are better than
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if we get another quarterly earnings where it's a negative earnings, it will be the third in a row. it hasn't happened since 2009. also, we would like to see oil prices stabilize. they don't have to go up by a lot, they just have to stop falling. and finally, of course, what we need to know is, how is the u.s. economy doing? if we have more information to prove that we're on the right track, i think things will calm down. in the absence of information, fear dominates, and that's when we get nasty days like today. >> pelley: jill schlesinger. jill, thank you very much. slumping oil prices are one reason the oil-producing nation of qatar is shutting down the cable news channel al jazeera america. al jazeera's arabic language channel has a reputation for being anti-american. also in business news today, general electric said its corporate headquarters will be leaving connecticut after 41 years and heading up to boston. g.e. blamed an increase in connecticut business taxes.
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schools were shut down again as teachers called in sick in a continuing protest that has seen nearly 70 schools shut down this week. the teachers claim that the health of 46,000 students is in danger, and anna werner shows us why. >> reporter: some of these classrooms are cold? >> very cold. >> reporter: at the spane elementary school today, some kindergartners wore their coats in class. in several rooms, it's just too cold for five-year-olds. >> you can smell the mold through the hallway. >> reporter: school counselor lekia wilson lead us on a tour. >> this is where the gym is. >> reporter: an entire section of the school is closed off, including the gym. >> you are seeing the result of rain coming right into the school. >> reporter: water leaking from the roof warped the wood floor. now, the smell of mildew fills the air. >> you could have some champion swimmers come out of here. >> absolutely. >> reporter: the school swimming pool has been waiting for repairs for five years.
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how do you teach gym without a gym? >> well, we do conditioning in the hallway. >> reporter: so, they walk the halls? >> or run. >> reporter: the state took over financial management of detroit public schools in 2009. the district is still $515 ivy bailey is interim head of the teachers' union. >> we kept talking and talking and talking and talking, and it was going on deaf ears. nothing was changing, and teachers were just fed up. >> reporter: darnell earley is the emergency manager appointed by the governor to fix the problems. >> certainly, if we don't get the money that we need to deal with the debt situation, that's only going to make it worse. >> reporter: and one of the things earley says the district cannot afford is a new roof for spane elementary school. doesn't that cry out for sort of immediate repairs in your view? >> well, it cries out for the immediate action, and my understanding is that there is a plan to do that. >> reporter: without an infusion
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scott, the district says it will run out of money come april. >> pelley: anna werner reporting for us tonight. anna, thank you. today, iran released those ten u.s. navy sailors we told you about last night who were detained when their boat sailed into iranian waters in the persian gulf. tonight, david martin explains how a potential crisis was defused. >> reporter: in video released by iranian television, the boarding of the two navy boats seems peaceful enough, but this tells a different story. the navy crewmen look like they're being held prisoner. then, the lieutenant in charge is asked what the boats were doing in iranian waters. >> it was a mistake. that was our fault, and we apologize for our mistake. >> reporter: that contrasts starkly with vice president biden's account on "cbs this morning" that one of the boats had engine failure and drifted into iranian waters where they were, in his words, rescued. >> there's no apology. there's nothing to apologize for. when you have a problem with the
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had a problem? no. and there's no looking for any apology. >> reporter: the crew was held for about 16 hours, and u.s. navy doctors have now examined them and found no evidence of mistreatment. so, at least the incident came to a quick and satisfactory end, which, as secretary of state kerry pointed out, is saying something when it comes to iran. >> i think we can all imagine how a similar situation might have played out three or four years ago. >> reporter: iran's foreign minister tweeted: what really may have resolved it is iran's desire not to derail the nuclear deal between the two countries. as part of that deal, the u.s. is expected to begin releasing about $100 billion in frozen iranian assets in the next few days. scott? >> pelley: david martin at the pentagon. david, thank you.
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road to sell the ideas he raised in last night's state of the union address, his last. the first stop was omaha. the president spent 40 minutes meeting with high school teacher lisa martin, who moved him with a letter in which she had expressed a sinking feeling of dread and sadness about climate change. mr. obama's address took a number of jabs at the rhetoric of donald trump, and then many were surprised when the republican response did the same. major garrett is on the campaign. >> as frustration grows, there will be voices urging us to fall back into our respect tribes, to scapegoat fellow citizens who don't look like us. >> reporter: following the president, south carolina governor nikki haley, the daughter of indian immigrants, echoed his message of tolerance. >> during anxious times, it can be tempting to follow the siren call of the angriest voices.
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no one who is willing to work hard, abide by our laws and love our traditions should ever feel unwelcome in this country. >> reporter: today, donald trump, who has called for a ban on muslims entering the u.s., hit back at haley. >> she's big on amnesty but very weak on illegal immigration. and so, therefore, we have a disagreement. i mean, she comes up to my office when she wants campaign contributions, and i've given her tremendous contributions over the years. >> reporter: trump has given haley's campaigns at least $7,000 since 2010. haley acknowledged today that she was in part speaking about trump. >> i understood that when i hit republicans and democrats, i was going to upset people. but they gave meet the opportunity to say what i think, and that's what i did. >> reporter: republican national committee chairman reince priebus told us he thought haley was making a broader point. >> i wasn't sitting there listening and thinking about fighting within the republican party. i was just thinking about just the political rhetoric in
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and i've always said things like that. >> reporter: conservative firebrand ann coulter said on twitter trump ought to deport haley. scott, priebus told us the republicans have had their fair share of drama and intrigue but predicted they would unify, create a presumptive nominee by april and do so, he said, before the democrats. >> pelley: major garrett on the carolina coast. major, thank you. the first votes in iowa are 19 days away. a poll out today puts ted cruz ahead of donald trump by just three points. marco rubio was third. success in iowa always depends on getting to know the people there, and dean reynolds has this. >> reporter: burrowed within the wintry landscape of western iowa between moville and sac city is the town of holstein, population 1,300. it's where you'll find the
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proprietor anne petersen. the place was buzzing this week because a candidate for president was stopping by. are you responsible for the coffee and cookies? >> i am, i am. >> reporter: do you know how many are coming? >> not a clue. >> reporter: so, you don't know how many cookies... >> i don't know how many cookies to bake. ( laughs ) >> reporter: there's a great frequency and urgency to such events in iowa now as the caucuses draw near. the candidates, camera crews andts correspondents are all part of the traveling show. >> i realize that a lot of other states feel we get a little special treatment, but, you know, we don't have times square. we don't get the ball that comes down here. this is our little thing. >> reporter: the remaining republican candidates have spent between 11 and 68 days apiece in iowa over the last year; the three democrats have spent over 30 days each. anne petersen has seen many over the years. like who? >> i can't remember because none of them won. ( laughs ) >> it's cold! aren't you cold? >> reporter: it was two below when carly fiorina came in from the cold.
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about 75 people, including 22 kindergartners, braved the chill to take her measure. >> i know you iowans are tough, but it's really cold. ( laughter ) >> reporter: mark leonard is a regular at anne's place. >> we have that privilege here in iowa, and, if you've not met the president of the united states, it's because you didn't really care to. it actually forces candidates to come here. >> reporter: holstein is heavily republican and energized. they know they may have a profound effect on u.s. history, and they relish the opportunity, as fleeting as it may be. >> you know, all you have to do is put forth a little effort and you can meet all of these people and it's really nice. >> reporter: and one of them-- >> could be. >> reporter: could be-- >> reporter: the president? >> yeah. >> reporter: there's a story here in iowa about an older gentleman who was asked if he'd made up his mind yet. he said he was leaning toward one candidate, scott, but he
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only eight times. >> pelley: dean reynolds covering the iowa caucuses for us. dean, thanks a million. airlines are saving billions, so why don't they cut their ticket prices? that when the "cbs evening news" continues. look, the wolf was huffing and puffing. like you do sometimes, grandpa? well, when you have copd, it can be hard to breathe. it can be hard to get air out, which can make it hard to get air in.
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the rollover consultants give you step-by-step help. no set-up fees. use your potion. sorry, not you. my pleasure. goodnight, tim. for all the confidence you need. who's tim? td ameritrade. you got this. >> pelley: airline profits are soaring, so why are passengers still paying a fortune? here's transportation correspondent kris van cleave. >> reporter: in just the first three quarters of 2015, u.s. airlines made almost $18 billion in profit. during that time, they were on pace to pass 2014's record of $3.5 billion in baggage fees. their planes flew 85% full, and the steep drop in fuel prices have the carriers cashing in. passenger rita moss. >> everything from the seat to the baggage being added on as extras, and the prices are still not decreasing.
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thing anybody heard about the airlines in january was, they raised fares. >> very modestly, and that was the first raising of fares in a very long time. >> reporter: jean medina speaks for the airline industry. >> what's good news for consumers is when airlines are profitable, customers, communities and investors and employees win because they're reinvesting that money back into the business. >> reporter: the airline business boom and bust. since 1990, the industry has landed in the red 11 times; in 2005, it lost nearly $29 billion. >> first class is getting more luxurious, but in the back they're squeezing us tighter than ever. >> reporter: charles leocha is the chairman of the travelers united. >> the price of oil has dropped to such a low level has really given them a windfall profit. and some of that you would think might be shared with consumers, either in the forms of lower fees or lower airfares or perhaps by giving us a couple of extra inches in the airplane. >> reporter: the airlines say
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about 3% last year, but, scott, that pales in comparison to the drop in oil prices. >> pelley: kris van cleave at washington airport. kris, thanks very much. the rams are about to prove you can go home again, after this time-out. time-out. your path to retirement... may not always be clear. but at t. rowe price, we can help guide your retirement savings. for over 75 years, investors have relied on our disciplined approach to find long term value. so wherever your retirement journey takes you, we can help you reach your goals. call a t. rowe price retirement specialist or your advisor see how we can help make the most of your retirement savings. t. rowe price.
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>> pelley: for two decades, los angeles has been without an n.f.l. team, but now it may get two. last night, n.f.l. owners gave the st. louis rams the okay to move back to l.a., and the san diego chargers may join them. john blackstone's on the story. >> l.a. rams! >> reporter: some l.a. football fans have waited 21 years to get this happy. finally, n.f.l. football and the rams are returning. >> it's more than just football. it's a history, it's a tradition. >> reporter: l.a. will get a new $2 billion stadium privately financed by rams owner stan kroenke. >> who let the rams out? >> reporter: kroenke is a hero in l.a. but a traitor in st.
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the city's mayor, francis slay: >> stan cronke was on his way out of here. he wasn't going to stay no matter what we did. >> reporter: the mayor estimates st. louis will lose nearly $4 million a year in tax revenues alone, but the bitterness of losing a big sports franchise can last for decades. nearly 32 years ago, the baltimore colts loaded up moving vans in the middle of the night to take them to indianapolis, something many baltimore fans still haven't forgiven. in los angeles, naming rights for the new stadium could be worth $25 million a year. work is already under way at the site of the new stadium that local officials project will create 12,000 permanent and part-time jobs. john blackstone, cbs news, los angeles. >> pelley: and we'll be right
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but can it help support all the jobs needed here? we dig through the numbers to find out... coming up at six./// >> pelley: now, david begnaud behind the scenes of tonight's powerball drawing. >> tonight's powerball jackpot is a guaranteed $40 million. >> reporter: for two months now, we have watched the jackpot jump. >> $949.8 million. >> reporter: this studio in tallahassee, florida, is where millions of wannabe millionaires and now billionaires see their dreams drop in less than 60 seconds. sam arland will host tonight's drawing. >> i'm thinking about the possibility that i may completely transform someone's life. >> reporter: with more than $1 billion on the line, this place can feel a lot like fort knox. there's a red plastic lock with a bar code that must match a code kept only by an auditor. there are eight security
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the secretary of the florida lottery, has muscle agents on standby. what's a muscle employee? >> the multi-state lottery which is in charge of powerball. >> reporter: nobody with big muscles. >> nobody with big muscles, no. ( laughs ) >> reporter: two of the four machines and even the lottery balls are selected randomly. >> they are x-rayed, they are weighed to make sure that they're all right, and then they're sealed into a case. >> reporter: as an added precaution, the handlers aren't allowed to touch them with their bare hands. they have to have gloves on because we don't want any oils on the ball or any moisture on the ball that could affect the draw. >> reporter: at around 9:00 p.m. eastern time tonight, two powerball machines inside this vault will be selected at random. they will then be rolled into this drawing room where we're told 13 people behind that glass will be allowed to watch the drawing. scott, we're told within an hour of the powerball jackpot happening, we could know if there's a jackpot winner.
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winner, the jackpot goes up to $2 billion. david begnaud, thanks very much. and that's the "cbs evening news" for tonight. for all of us at cbs news all around the world, good luck and good night. captioning sponsored by cbs
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access.wgbh.orgfor a gigantic jackpot: ((rosario abuyo: "i know i will win. i know i will win. i promise." )) we take you live to the state line... "i already got a little bit of the irish luck." just two hours before the one- and- a- half- billion dollar drawing... to find out what powerball hopefuls would love to spend the money on. ((paula francis)) and is tourism enough... to keep our local economy rolling? we dig through the numbers to find out why higher employment... might not be a good thing for all workers. ((dave courvoisier)) > does he have what it takes to turn
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