Protests against political moves by the president , Mohamed Morsi, have turned deadly. Tanks, armored personnel vehicles, all stationed outside the president ial analysis cairo. Not only are they guarding the palace, theyre also keeping apart supporters and opponents of morsi. Hundreds of his islamist supporters already taking to the streets in cairo this morning. Opponents are gathering not very far away. Last night the two sides clashed right outside the palace. The violence killed at least five people. Hundreds of other people were injured. Opponents are demanding that morsi dial back on those sweeping powers that he has granted himself. Cnns reza sayah is live for us in cairo this morning. Whats the latest . Reporter soledad, were getting the first signs that maybe, just maybe, cooler heads are prevailing and peace could be extraordinary in front of the president ial palace. Within the past 20 minutes, weve seen about a few thousand of president morsis supporters move away from the palace area and the crowd seems to be thinning out. Were getting reports that this was a call by the revolutionary guard, the military, for the crowds to withdraw, and it looks like its happening. Its too early to tell if things are going to remain calm in the coming hours, but certainly this is a good sign. Later in the day, president morsi is scheduled to address the nation. Were not sure what hes going to say, but this is a president thats under tremendous pressure to calm things down and unite this country, that at this point, is divided. Based on what the opposition is saying, based on what their position is, anything short of the president saying that hes going to annul this constitution, this draft constitution, and start the process over, anything short of that, is not going to satisfy the opposition. Opposition leaders came out and made that demand yesterday. In the meantime, opposition factions applying the pressure on the president. Last night, of course, you had these ugly clashes. More than 400 people injured in front of the palace, where you had literally a brawl between these two sides. The supporters of the president , the muslim brotherhood, the islamists, and on the other side, the opposition factions. The liberals, the moderates. In many ways, this is a fight for egypts identity. Both sides want their vision to be the future of egypt and thats what this conflict is unfolding. And these pictures are just remarkable, as you look at those tanks right from the president ial palace. Reza sayah for us this morning. Thanks, reza. Appreciate the update. Our other developing story in the middle east this morning. Fears that syria could unleash nerve gas and what could that mean for u. S. Military involvement. Nbc news is reporting that syrias military has loaded the component chemicals for the deadly nerve gas sarin into aerial bombs that could be dropped from fighter jets. Cnn reported on monday that Syrian Forces started combining chemicals that could be used to make sarin gas for weapons. Mohammed jamjoom is in beirut. Hes got more on the story for us this morning. Good morning. Reporter good morning, soledad. This latest report only increasing concerns about the intentions of the Syrian Regime when it comes to their chemical weapon stockpile. Now, why are there so many concerns . Not just because people are worried what Bashar Al Assad might do with these chemical weapon stockpiles, as there have been for months, but more as rebels are advancing on damascus and the battling are getting more heated and pitched around the capital, there are concerns that if damascus were to fall, what would happen to chemical weapon stockpiles . Could they get into the hands of groups that are fighting with Syrian Rebels . A big concern, and weve heard more calls from the u. S. Administration, warning that Bashar Al Assad if we were to utilize chemical weapons against the population of syria, that would be a clear red line, they would face consequences. We must add one more thing, that the Syrian Regime has repeatedly said, including today, they have no intention of utilizing chemical weapons against syrian. Mohammed jamjoom for us this morning, thanks for the update. Lets turn right to Zoraida Sambolin. Shes got a look at the rest of the days top stories. Good morning to you. Breaking the ice, president obama and john byron finally discussing the fiscal cliff. They talked by telephone yesterday. With just 26 days remaining to get a deal done, there are signs of compromise on the republican side. Oklahomas republican senator tom coburn a leading conservative saying he is okay with raising taxes on the wealthiest 2 of americans. In a few moments, Soledad Obrien will talk with oregon senator is jeff merkley. He sits on the Budget Committee. Naeem davis now charged with murder for allegedly pushing a man off a new york city subway platform. Davis was arraigned last night on a seconddegree murder charge. Police say he pushed 50yearold kisuk han on to the tracks and into the path of an oncoming subway train. Internet Security Pioneer john mcafee could be deported to belize as early as today. Guatemalan officials detained mcafee yesterday. They accuse him of entering their country illegally. He turned up in guatemala on tuesday after disappearing from his home in belize. Police there want to question mcafee in connection with a murder, his neighbors murder. He says he is innocent, but that he went into hiding because he feared persecution by police in belize. The duchess of cambridge has discharged from a london hospital. She is nearly three months pregnant and was being treated for acute morning sickness. She was smiling when she left the hospital this morning with Prince William by her side. Kate is headed to kensington for a short period of time of rest. She looks good. She does. And some familiar faces leading the field for the 55th annual grammy awards. Kanye west and jayz each received six nominations. One of the newcomers, the indy pop band fun also got three nominations, including one for best artist. My kids will be so excited. They love fun. Ive never heard of them before, but they love fun. Zoraida, thank. Kind of a big old pot party in Washington State now. Take a look at. Two, one thats because at midnight, possession of up to an ounce of marijuana for personal uses is legal thanks to a landmark Ballot Initiative that passed last month and took effect at midnight. To celebrate, pot smokers have been lighting up in the shadow of seattles iconic space needle. Cnns Miguel Marquez is in seattle for us this morning. Morning. Reporter good morning there. This was only one of many parties across the state with people just taking the first step as this new law is implemented. Reporter the moment recreational pot, anything less than an ounce, no longer illegal in Washington State. Its amazing. Im not a criminal anymore. I cant go to jail for small amounts of marijuana. You know, its im free to be free. Reporter several dozen hardcore smokers showed up here to the base of the space needle, the symbol of the city and of the state to light up at the stroke of midnight. And while the new law does not allow smoking in public places, Seattle Police and Police Departments across the state are turning a blind eye tonight, allowing celebrations to light up. This is what youd assume the stores will look like or something along these lines . So, yeah, our stores are going to have the feel of a fine cigar shop. Jaymon shively, once a highprofile executive at microsoft, now preparing to open as many as two dozen highend marijuana shops in washington and colorado. And yesterday hed be called a drug dealer. Today, an entrepreneur. Our target market is actually baby boomers. So these are folks who may be tried it in college a couple times, maybe they didnt inhale, but now its actually safe to inhale. Reporter hes already working on packaging and attractive displays for future clients. The state liquor control board has a year to regulate and license the growing, processing, and retailing of marijuana here. All of it taxable at a very high 25 . Were looking at the potential of bringing in more than 500 million each year in new tax revenue. Reporter the big question still, what will the federal government do . Pot still illegal federally. Today, a legal toke of revolution burning here and soon colorado. Now, colorados law, almost the exact same, will get going by january 5th. And the federal government has only said so far that they are reviewing both states programs and they remind them that federally, at least, it is still illegal to possess marijuana. Back to you. Miguel marquez for us this morning, thanks, miguel. Lets get right to alan st. Pierre, hes in washington, d. C. , the executive director for the Group Fighting for the legalization of marijuana since they were founded back in 1972. Nice to have you with us. You heard miguels report. There are strict rules, its going to be heavily taxed, still considered to be illegal by the feds. Whats your reaction to what happened at the stroke of midnight . Well, thats a celebration to be sure. Thats pentup 75 years of marijuana prohibition in america, even though the law technically doesnt allow for public use. Lets acknowledge it was just a public celebration. So if you think that this is the end of prohibition, were looking at just two states, do you think that this is kicking off what could be a National Trend . And if, yes, is that in the next year, two years, ten years . Indeed. Look at decrim. When marijuana was decriminalized in 1973, ten more years, it was decriminalized. In 1996, when californians voted for medical marijuana, ten years later, we now have 18 states that have medical marijuana. And i think it passes prologue, the same thing will happen with legalization. Almost the entire west coast and all of new england is going to move in this direction. It will take decades to infill the middle of the country. So what does it look like . Walk me through. Because i think for a lot of people who have concerns, theyre worried about what it tangibly looks like on the streets and in the communities. Its going to bring in potentially millions of dollars for the state, because of high taxation. Will it also change tourism too . To be sure. Why go to amsterdam . Why go to jamaica . I love trout fishing and skiing, so i think ill be making more trips this year to colorado and washington, and i expect a few hundred thousand other people will be doing the same. Particularly once the laws kick in in a year, when an adult can go, just like to a restaurant, to a bar, to a liquor store, whether its a private license or whether the state controls it, and purchase the product and use it responsibly. Alan st. Pierre, joining us this morning. Hes the executive director of the National Organization for the reform of marijuana laws. Nice to have you with us. Thank you. Coming up next hour, well hear from steve sarich. Hes trying to overturn that new law. Well tell you why, straight ahead. Also ahead on starting point, president obama and Speaker Boehner talk on the phone about the fiscal cliff. But will they be meeting face to face and will they get anything done before its too late . Up next, oregon senator jeff merkley. 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Its another reason more investors are saying. [ all ] im with scottrade. Your soups are so awesomely delicious my husband and i cant stop eating em whats. That. On your head . Can curlers tomato basil, potato with bacon. Weve got a lot of empty cans. [ male announcer ] progresso. You gotta taste this soup. Welcome back to starting point. Im christine romans. Minding your business this morning, markets in a Holding Pattern as fiscal cliff talks continue in washington. But the s p 500 is up 12 so far this year. And a 20year veteran Investment Strategy at goldman sachs, abby joseph cohen, she estimates stocks could rise another 10 to 15 next year. She says the fundamentals of the u. S. Are solid, despite the fiscal cliff concerns coming out of washington. She says stocks could get hit in the early part of the area if we go over the fiscal cliff, but the fundamentals of the economy are still good. All right. Apple stock dropped more than 6 yesterday. Shares were down about half a percent in premarket trading this morning. No concrete news pushing them down, but today theres another hearing in the patent case with samsung in california. And a Tech Research report generatored a lot of buzz that apples tablet competitors could eat into its market share. Interesting. Thanks, christine. Well, the good news is, lets do the fiscal cliff and the good news. And its not very much. But at least the two sides are talking, by phone. Not face to face. House Speaker John Boehner and the president are hoping to break the fiscal cliff ice. Now were just mixing metaphors, left and right. Speaking on the phone, 26 days left, of course, until we tumble over the cliff or slide down the slope or fall off the precipice or however you want to put it. We could, of course, face massive tax hikes, spending cuts. Thats what the fiscal cliff is all about. It would all start with the start of the new year. I want to get to senator jeff merkley. Hes a democrat from the state of oregon. Hes on both the Budget Committee and the banking, housing, and urban affairs committee. Nice to have you with us, sir. Thanks for joining us. Youre welcome. Thank you. Before we get to fiscal cliff, lets talk a little bit about syria. There are now reports that they may be loading the components that would make up sarin gas. And im curious to know and i think a lot of people are watching this, does this mean that we are headed, the United States is headed into military action considering what we know about the red line, if you will, that Hillary Clinton laid out pretty clearly . It was very important for her to draw a very clear line. Because any use of chemical weapons has to be responded to internationally. Im sure the secretary of state is immersed with russia right now, is in negotiations with russia for a united front against this absolutely unacceptable possibility. Okay. So shes laid that out. But then the next step, of course, if, in fact, theyre putting together the components that create sarin gas and theyre leading these into weapons, are we going to war insider to stop this . The United States. I think that the u. S. Is going to be laying out a series of actions in partnership with some other states that will be taken, should they use these chemical weapons. And it is my hope and i think the hope of everyone on this planet that a fierce and United International response will ensure that syria does not actually consider using these weapons. Lets talk about the fiscal cliff. We now know, and its kind of a slow news day on that front, right. The news were reporting, the speaker and the president spoke by phone and nothing came out of it. And thats the headline. We know that weve been talking about the fiscal cliff, in nearly a month, well get over it, but really its nine days, because everybody is supposed to break in just nine days. Do you think everybody in congress fully understands just how frustrated and annoyed the American Public is on this, seeing everybody go off, you know, to their home states for the weekend while this looms for the rest of us . Well, certainly when i was home in oregon, i heard about it from everyone and every meeting. There is an expectation that we come together with these big National Issues and address them. Right now, what we have is a very unspecified proposal from the republicans, just basically saying well find revenues somewhere, well find cut programs somewhere. Meanwhile, well be very specific about cutting medicare and social security. Thats an extremely unacceptable response to the president s initial proposal and quite frankly, its not acceptable that this game of chicken continue right on down the road. The needs will be very specific in negotiations, if they need to keep them very private and contained for a while, to get the details, so be tit, but action is required. The game of chicken is being on played both sides, isnt it . The president s side and the republicans as well . The president has laid out a very clear proposal, consistent with his campaign, that its time to end the bonus breaks for the best off. Recognize that if youre very wealthy in america, you would get all the breaks that anyone would get up to 250,000. I get it, taxes is a Sticking Point, but the spending is also a problem, and both sides are playing chicken. Democrats are not so willing to cut spending and republicans say theyre not going to raise taxes for anybody. Thats a Sticking Point with nine days to