core and china closed down 3.8%. and the nikeii and the hong kong hang seng fell 2.8%. here in the u.s., the dow and s&p futures are each down about 1.5%. this does follow the u.s. market's worst week since 2008. market analysts are now scrambling to find that proverbial silver lining. >> the good news about the downgrade, if you can see any good news in it, is that it will focus the mind of policy makers to deal with long term problems. >> as for the major markets in europe, they fell less than 1% today. investors there were calmed down a bit by a pledge from the european central bank to support the unstable bonds of italy and spain. we will have to see what happens. again, in an hour and a half. frank? >> all right, stephanie trong, thanks so much. live in our newsroom. >> 5:00 now, and a big announcement about the san francisco mayor's race. it comes this morning. unter hudson is in san francisco

where ed lee is expected to jump into the race. everyone has been asking this question, unter. >> reporter: that's right. and today, it is going to be answered. will ed lee run for mayor? there has been a lot of speculation surrounding his bid over the past couple of months. in an interview with the chronicle, he announced he will officially make that announcement later this morning. ed lee was appointed interim mayor back in january when nume nume was elected lieutenant governor, the first asian american mayor of the city. and he says he is able to accomplish a lot over the past seven months as interim mayor and balanced almost a $7 billion budget, hired a new police chief, there is pension reform, and he has kept twit ner the city, and even brought the america's cup race to san francisco. lee says it has been stressful but worth it. and he told cbs 5 phil matier on friday that he has received a lot of praise and support for the community which helped him

make his decision. >> especially right now, that's what resonates with people everywhere i go. they want to see city government doing the work that we've done. i've demonstrated that for seven months. i feel good about the things we've done and i will continue to work really hard to do it. >> reporter: but lee is not without his critics. some say he is breaking his promise not to run. which is why he was appointed interim mayor in the first place. and the city still has its problems. ongoing problems with muni. numerous fees with small businesses. and problems that the police are having in the bayview district. still, an exclusive cbs 5 poll, 59% say they would vote for lee as mayor but it won't be an easy raáeut race for lee. nine other strong contenders and serious candidates. and all nine candidates will meet in the first mayoral forum which will happen later tonight in the castro. but later this morning at 9:00 a.m., at least he is going to make the official announcement he will run for mayor.

grace? >> that race is getting crowded. unter hudson in san francisco, thank you. 5:02 now. a fire late last night in san francisco sent an elderly woman and her care giveer to the hospital. the fire broke out around 11:30 at a home on jackson street. and the firefighters finding two women unconscious inside. one victim is in her 80s. and the other is in her 60s. and they are now in a hospital being treated for severe burns and smoke inhalation. investigators think the fire started in the upstairs bedroom. and maybe linked to cigarettes. we are learning this morning that the father of one of the navy seals killed in the chopper crash in afghanistan lives in san jose. kevin houston was among 30 americans who died when their chinook helicopter was shot down saturday. and houston lived in virginia with his wife and three children. and u.s. military sources say the seals were on a mission to help another ground team when they were shot down and work continues to recover their remains. the taliban is claiming responsibility for that attack.

5:03 now. a sacramento man blames sacramento county jail officials for the fact that a mentally disabled man is now missing this morning. and alexander smalltrop is 50 years of age, but his family says he has the mental capacity of a child. smalltrop has not been seen since he was released from jail around 3:30 on friday morning. all by himself. he had been arrested for inappropriately touching people at a store. the previous night. pg&e was warned months before the san bruno explosion about the risk of disaster. documents filed with state regulators show the utility management group all but predicted a problem. they say a gap created an unacceptable risk of disaster and raised questions about what top executives should have known and had known. 5:04 on your monday. let's get a quick check of your weather and one word sums up the weather report. >> it will be all about the fog.

the next five to seven days. it is very thick again this morning. we're seeing drizzle and dense fog out toward the coach. and some areas inland concord and fairfield, those are the places to see the sunshine and the warmer temperatures too. and 57 degrees and cloudy skies in live more. and 59 and cloudy in san jose. and 50s near the coast lipe and wet out to the beaches as well. this afternoon, the temperatures warming up 80s in the interior valleys and upper 80s in places like brentwood and antioch, and mid-70s, san jose and redwood city and out to the coastline, 50s and 60s. and yes, that fog word once again. time for traffic with elizabeth. >> thank you, lawrence. we're getting word of a new accident now. if you're coming up northbound 17 through the santa cruz mountains as you approach the summit, there was an accident, a car hit a deer in the roadway. one lane is blocked. a little bit of slowing on the sensors past summit road. in the east bay, i mentioned this earlier, a police chase that ended, crashing one of the cars, near the 66th avenue off-ramp. for a while they had the

off-ramp blocked. well, they just reopened it. within the last couple of minutes or so. so right now everything looks pretty good. nice smooth ride along the nimitz and the coliseum up towards the downtown oakland exit. if you're continuing up to the macarthur maze and the bay bridge toll plaza, this is ha it looks like. traffic nice and light on this monday morning and no road work to contend with all across the upper deck. lower deck a little bit of ongoing road work toward oakland and the mass transit remains on time with. bart running 30 trains all on schedule. that is your traffic and your weather. back to you. >> and we will take it, elizabeth. thanks. time now is 5:06. he was hit by a car while leaving a giants game on thursday night. up ahead, an update on the condition of the 9-year-old victim. a turf war on san francisco's waterfront. why some pedi-cab drivers say their competition is not playing fair. and the phillies manager reacting to friday's big bench-clearing brawl. why he says his player almost had to start a fight at at&t park. more on that, coming up.

,,,,,,,,,,,, [ man ] i got this new citi thankyou card

and started earning loads of points. you got a weather balloon with points? yes i did. [ man ] points i could use for just about anything. ♪ ♪ there it is. [ man ] so i used mine to get a whole new perspective. ♪

[ male announcer ] the new citi thankyou premier card gives you more ways to earn points. what's your story? citi can help you write it. good morning, here is a live look. through pleasanton, as you approach the dublin interchange. westbound 580 traffic. free flowing all the way out of livermore this morning. we are following though an accident involving a deer coming out of the santa cruz mountains. we will update you on that. plus check mass transit in a couple of minutes. back to you. >> already a busy morning. 5:09. a woman arrested in santa rosa, faces felony hit-and-run as well as drunk drive charges. 22-year-old lee on thatoncola was arrested for a crash on highway 12 yesterday morning. police say she ran away from the scene on foot leaving an injured passenger behind and arrested later after she went to the

hospital for treatment of minor injuries. the young baseball fan hit by a car while leaving a giants game is making small improvements. but he does remain in critical condition this morning. and 9-year-old ryan white of philadelphia was run down in a cross walk as he and his family left at&t wark -- park thursday night. andrew vargas of hayward is charged with driving drunk when he hit ryan. traveling by pedi-cab is popular in many parts of the bay area but competition is taking an us pleasant turn in san francisco, some local drivers say a san diego pedi-cab company started operating in town and they claim the company drivers are overcharging passengers and not following some of the san francisco rules and regulations. >> we have places where we're supposed to be, and places we're not allowed and they're just going everywhere. >> they're calling on the san francisco officials to make the newly arrived pedi-cab drivers to play by the rules and to get the proper permits. for you parents out there apparently it is okay for kids

to play sports in hot weather. and as long as precautions are taken. according to the nation's largest pediatrician group, the american academy of pediatrics, out with new guidelines aimed at preventing heat illness among young athletes an the recommendations include adequate training and drinking lots of water and time-outs as well as access to emergency treatment on the sidelines. got to be careful out there. >> it is hot. especially in the south, with 100 plus degrees with three weeks straight. >> awful. >> and to play football in that? >> and the pads. 5:11. could the giants finally score another win? a recap of the game against the phillies coming up. and why the phillies manager is dwinding his player who sparked -- defending his player who sparked the bench-clearing brawl. travel times if you're headed out, low clouds and fog at sfo today. about 66 degrees. and not expecting any major delays. maybe a few this morning early on. by the afternoon, you're looking at hot weather into houston.

95 with some partly cloudy skies. but it should be a pretty good flight getting in there. if you continue traveling on toward atlanta, we may run into some changes. as we're seeing the possibility of some thunderstorms, 94 degrees. so it could get a bit bumpy if you're pulling into atlanta today. more on your local weather coming up. ,,,,,,,,,, ,, ,,,,,,

welcome back. 5:15. a check of the morning's top stories. major asian stock markets fell sharply partly in response of the standard and poor's gown grading of the u.s. credit rating an the dow and s&p futures are down this morning. an elderly woman and her care give remember in the hospital this morning after suffering severe burns in a fire in san francisco. and investigators believe that it started in an upstairs bedroom. possibly caused by cigarettes. and ed lee is expected to make it official at 9:00 this morning. that he will run for mayor of san francisco. the chronicle reports that lee has decided to seek election to the office to which he was appointed. good morning, bay area. just getting up on this monday morning. we've got gray skies, again, no big surprise there and i don't think we will have major surprises all week long as we see more clouds and low fogs

along the coastline and onshore overnight and pretty thick toward the coast with some drizzle, too. and by the afternoon, plenty of sunshine inland and in the 80s in some spots and inside the bay, a mixture of sunshine and clouds and 60s and 70s toward the coast and socked in with the low clouds and fog. and 59 degrees in san jose. and 54 degrees in santa rosa. and clear in fairfield at 56. and if you plan on traveling around the state, you will find sunny skies in the central valley and 89 and comfortable this time of the year and 97 hot in fresno and 78 degrees in lake tahoe. still it looks like high pressure is holding on, probably going to start to build back in the bay area and it is the ridge that is over the desert southwest. and that starts to work its way into california. and some slow warming throughout the week but really just a degree or two each day as we head in toward the next weekend. and with that in mind we know what to expect. starting out with clouds early on. lots of sunshine in the bay by the afternoon. 76 degrees in san francisco. and 74 in fremont. the warmest temperatures well inland about 89 degrees in

brentwood. and 88 in antioch. and 81 degrees in concord. as you head to the north bay, sunshine in the afternoon. very comfortable in the napa valley at 76 degrees. and about 75 in petaluma. and next few days, we are expecting some warmer weather and 90s making a return, at least in the far interior reaches of the bay area. and it looks like the temperatures will continue to warm, and not only thursday and friday but right into the next weekend. it is traffic time with elizabeth. >> thanks, lawrence. right up to the south bay, we have a photographer standing by live, near the 101, allen rock exit. and everything is nice and free flowing on the northbound and southbound 101 and over to the maps and show you the problem stops santa cruz mountains northbound highway 17, and approaching summit road, an accident out there still blocking the right lane. and that is car versus deer. to they're out there right now. and in the meantime, the rest of the south bay, it looks great, coming out of downtown san jose and you can see a couple of headlights, several headlights

approaching the 880 interchange. pretty good on 280 and the live look at 101 no big issues to the south bay and much better news in the east bay and following a police chase for a while. they had 66th avenue off-ramp blocked to northbound 880 passing the coliseum. all of that is completely cleared and a nice smooth ride from hayward to the macarthur maze. and the peninsula commute, a live look at 101 traffic near bay shore. it looks good all the way through palo alto and all the way up to san francisco. and 280 moving fine as well and fog, the big story, the golden gate bridge camera, and you can really see it out there, visibility once again an issue. and slowest stretches as well southbound 101 between novato and san rafael, ongoing road work. watch out for that. that is going on until september actually. and san mateo bridge. no issues here. the commute direction westbound 92. problem free. that should actually be a 13-minute drive out of hayward and foster city and the

peninsula. remember kcbs our radio partners and find them at 106.9 f.m. that's your traffic. back to you. elizabeth, thanks. 5:19 now. the giants are able to hold on to first place with a big win yesterday. the giants were down 1-0 in the 4th with an eastbound single here. it ties up the ball game. and the pitcher tim lincecum shut down the phillies offense. and great work. jeff keppinger had a sac fly to make it 3-1. the final score is 3-1. giants win behind that guy right there, pirates are in town tonight. first of three. they have lost 10 in a row. so things are looking good. and you know you saw this. but the consequences from the brawl during friday's game still unknown. >> that hits victorino in the back. and he is thinking about something. and now we have action. >> thinking about a lot apparently. >> major league baseball has yet to hand down punishment for that

bench-clearing brawl. it started after the giants pitcher ramon ramirez drilled the outfielder shane ricket reno. and the phillies manager charley emanuel is suspending his player. >> he hit vic and then he come off the mound at him. if you go back and look. that's what i saw. it wasn't like -- vic almost has to go. unless he wants his teammates to call him chicken. >> no one wants that. >> and no one was hurt during friday's uproar on the field. >> look at the catcher. whiteside, he is like come on, come on, who am i going to take down? >> apparently lingering animosity between the two teams since last year. which the giants win? >> they did win, and won the world series. >> and always a little bad blood between the two teams. >> and i know shane is from maui and his parents were at the game and his mom apparently was

horrified by the ordeal. >> a little temper. >> that's right. ash 20. smurfs versus apes versus cowboys and aliens. getting crowded. we will tell you who won the weekend box office. and don't mess with granny. the amazing accomplishment by a 98-year-old san francisco martial artist, coming up. ,,,, sure, pulling the mold, mildew, and grime from out of the porous caverns of grout takes the right tools, but it also takes a gentle, caring touch. before you can deep clean, you learn to get a feel

for its trouble spots. and hey, if you can't listen to grout, you can't truly know its wants...its needs...its dreams. ♪call 1-800-steemer. i may be mud, but i have standards. mops? please. some of them have bacteria. ♪ and they try to pick me up? ew. i'm really hard to get.

uh! ♪ what about love?! [ male announcer ] swiffer attracts dirt. used mops can grow bacteria. swiffer wetjet's antibacterial solution eliminates 99.9% of bacteria that mops can spread around. i like your pad! [ male announcer ] swiffer cleans better than a mop or your money back. it can also lead to serious dental problems. [ male announcer ] new act total care dry mouth is alcohol-free and has fluoride to strengthen teeth. stronger teeth and dry mouth relief.

20:13:33 "stupid monkey! you'll learn who's boss soon enough!" the "rise of the planet of the apes," opened at the top of the box of lion 5:23. apes ruling the theaters over the weekend. >> monkeys. >> we will learn who is boss. >> the rise of the planet of the apes opened at the top of the box office, taking in $54 million over the weekend. the smurfs, stayed strong and came in second place. while cowboys and aliens dropped to third place after opening on top last week. the change-up and captain america, rounding out the top five for you movie-goers out there. >> popcorn. and 5:24. entertainers are showered with surfboards. and the teen choice awards. >> the one, the only, your summer choice movie star male award, daniel radcliff. >> thank you very much. >> how are you doing, guys? >> he sounds like liam may clem

from ao "eyen the bay." >> last night's show had a farewell tribute to the harry potter movies. and we had selena gomez and justin beber. >> where do you put the surfboard? it is not a little trophy. >> big homes. >> big surfboard. 5:25. you probably spent the night in a more relaxing night that diana did. the 61-year-old american endurance swimmer is somewhere in the florida straits and she jumped in the water around cuba and hopes to get to the florida keys. and i have an idea, take a boat. the first person to swim the distance without a shark cage. good luck. >> you tell me when to stop. >> and bring the cage. speaking of incredible feats don't try this at any age. samat ashen successfully traversed a steel cable stretched between two hot air balloons in china. the wind gave her some trouble.

but managed to complete the first attempt 100 feet in the air and a second attempt at a higher altitude was not so successful. i hope he is still with us. yikes. a bay area woman who has accomplished something in judo that only three other people have ever done. by the way, she is 98 years old. and she is from san francisco. also the first woman ever awarded a 10th degree black belt. don't mess with her. judo's highest possible level. and a big celebration is planned for her in october. >> what is she, 98? >> i don't know. what are we doing? >> that means we've got about 50, 60 years yet to go. >> i don't think we're going to make it, frank. >> they've added a few for me, but that's okay. >> it is 5:26 now. could your kids' lunch box be a breeding ground for bacteria? the mistake most parents are making. and we are learning more about the navy seals killed when their chopper was shot down in afghanistan. the bay area connection to one of the victims. we're now an hour away from

the market open. it is the first time investors are reacting to the s&p downgrade of our nation's credit rating. we will check in with the asian and european marks to get an indication of what we can expect here. live in san francisco, where a guessing game is over. there is a new name on the race for the city's mayor. who he is and his decision to run, just ahead. ,,,,,,,,,,

save them. presenting woolite complete. it cleans your jeans, and won't torture your tanks. so your clothes stay looking and fitting like new. woolite. long live your wardrobe.

we're just talking about in and out burger, getting hungry here. good morning, everybody. it is monday, august 8. i'm frank mallicoat. >> i'm grace lee. i could go for a double-double. >> really, you're a double-double girl? >> i can't do it but it sounds good at 5:30 in the morning. >> double-double animal style sounds fantastic this time of the morning. grab a cup of coffee if you're heading out. and it is dense out there near the coastline. we're hoping for sunshine coming our way. more on that in a few moments. first we will check on traffic with elizabeth. >> word of a new accident. it is in pleasanton, westbound 580 before 680 in the dublin interchange and it sounds like at least one lane blocked there. we will update you on this accident. it could cause some slower speeds coming out of livermore. and in the meantime, back to you. >> thank you. 5:30 your time and it could be a wild day of trading on wall street today. and the market opens in just

about an hour. and stephanie trong joins us from the newsroom with more on what investors can expect because it has been a rocky road everywhere else this morning, i guess, right, stephanie? >> that's right, when you check in with aish why and europe. our markets are not open just yet but they are expected to tumble. this is the first opportunity for investors to react to s&p's downgrade of u.s. debt, and that removes the country's aaa status for the first time, and asian markets were the first indicator, opening lower and staying down, and the major exchanges in south korea and in china, both closed with a 3.8% drop. and japan's nikeii and hong kong heck seng both fell about 2.2% and not as severe as friday's 3.7% drop for the nikeii. here in the u.s., the dow and s&p futures are each down about 1.5%. and now, s&p's downgrade follows last week's debt ceiling agreement, and the ratings agency had also blamed the partisan bickering that led to the debt ceiling crisis in the first place, and leaders in washington are now pointing

fingers. >> i believe this is without question the tea party downgrade. >> this president has failed to lead in any other private sector enterprise. he would be fired. >> now, u.s. stock futures had slight gains after europe posted games but they slipped as they neared the market open. just yesterday, the european central bank indicated it was on the verge of buying italian government bonds and expected to calm the rising panic over the crisis, but really so far it doesn't seem to have made a big difference. frank? >> all right, stephanie, we're out watching our 401k's today hoping it heads north instead of south. stephanie, thanks. 5:32. severe burns have put an elderly woman and her care-give ner the hospital. after a fire in san francisco late last night. and it broke out around 11:30 at a home on jackson street. and the firefighters found the two women unconscious inside. and one victim is in her 80s and

the other in her 60s. and investigators believe the fire started in an upstairs bedroom. and maybe linked to cigarettes. on to solano county now, firefighters are trying to determine what sparked a brush fire that threatened several homes. the fire broke out yesterday afternoon. in benecia. and quickly spread to several acres. and the flames came close to homes on rose drive. but crews were able to put out that fire before it reached the building. the biggest question about the mayor's race in san francisco, all gets answered this morning. and although the cat is out of the bag though. unser hudson in san francisco, where the appointed mayor will apparently try to become the newly-elected mayor. he joins us with more. good morning. >> reporter: good morning. to run or not to run. is he, isn't he? those are the questions that have been surrounding interim mayor ed lee for the past couple of months. in an interview with the chronicle, he is making it official. yes, ed lee will make his announcement later this morning. for his bid for san francisco mayor. lee was appointed interim mayor back in september.

or rather back in january. by the board of supervisors. when gavin newsom was elected to lieutenant governor. making lee the first asian american mayor of the city. lee is a former city administrator. he says the past seven months he has been able to accomplish a lot including balancing the $7 billion city budget, he hired a new police chief, there is pension reform and even brought the americas cup race to the city and he says he is happy with the results, results which he told cbs 5 phil matier last frey friday he was able to achieve with little political fighting an lots of community support. >> a lot of personal friends who have been so encouraging and so supportive about what we've been doing. i got a lot of people still calling me and i haven't been able to answer that phone. >> but not everyone is calling. many of his critics say he has broken his promise not to run. but lee says he simply changed his mind after spending time in office. and after the encouragement from

senator diane fine stein. in an exclusive cbs 5 poll, 59% of voters say they would vote him in as mayor, but despite hit accomplishments and community support, analysts say it is not a guaranteed win for lee. there are nine other strong contenders including the supervisor and pierre beven duffy and dennis herera, all popular candidates and campaigning for the past couple of months. the first mayoral forum happening tonight at the cassco theater and ed lee will be there as a candidate. and he is expected to make his official announcement around 9:00 a.m. this morning. frank? >> thank you, live in san francisco. the big question for mayor ed lee, a big question for lawrence karnow, when will the fog go away? >> i think september. how about that? >> that would be great. >> no, you're looking at a better time of the year with the offshore winds blowing and that fog clears out but not today,

folks. we're socked in with the low clouds and fog and dense out to the coastline. there is some drizzle, too. temperatures right now, 59 degrees in san jose. and 60 in mountain view. and 54 degrees and cloudy skies into santa rosa by the afternoon, we will find sunshine with low clouds retreat toward the coast and that means temperatures as high as the 80s inland and 60s and 70s around the bay and 50s and 60s toward the coast. the next couple of days, high pressure will slowly begin to build out of the desert southwest and bring warmer weather and 90s far reaches inland as we head to tuesday and wednesday. and much warmer as we head in toward the next weekend. and all right, time now for traffic. with elizabeth. >> thank you, lawrence. and we're just getting video into the newsroom. of this earlier police chase and crash in oakland. check this out. for a while, the 66th avenue off-ramp was completely shut down. a high speed chase involving an oakland police department and it sounds like speeds reached 90 miles aen hour or mo. the -- an hour or more.

the car crashed near 66th avenue. and they had to block the off-ramp for a good while, at least a half hour or so. and we want to let you know that everything is back open. even though the driver ended up fleeing on foot. we're not sure if they caught the guy. but as you can see they got the car out of the way. tow crews are gone now an the off-ramp is reopened and everything is moving up and down the nimitz freeway okay, all the way through oklahoma. and to the maps and more live cameras, also. a live look at pleasanton near the dublin interchange. westbound 580. a little sluggish approaching 680. an injury accident right there. and it is blocking one lane. so watch out for that. we are seeing slower speeds. as we go to the maps, and we can show you the drive out of the altamont pass. 16 minutes right now in those westbound lanes. you can see a few brake lights as well. heading out of the altamont pass, and heading through livermore. and we will show you one more live camera. a live look through the san mateo bridge. westbound 92 in the commute direction. this is a 13-minute drive out of

hayward. heading to the other end of the bridge, heading to foster city. that is your traffic. back to you. >> thanks, elizabeth. 5:37. vallejo police are looking into the murder of a man who was found shot inside his suv. officers responded to a report of a hit-and-run. this was about 8:40 last flight. at sonoma boulevard and mini drive. they found the victim dead in the florida ex pourer which had rolled over a -- explorer which had rolled over a center median. san jose police are asking for help in solving the city's 30th homicide of the year. a man stabbed and died in roosevelt area in the downtown area early yesterday morning. police are trying to determine a motive for the killing but they have no suspects. a break-in, in an east bay homicide case, for more than 20 years ago. this morning pleasanton police will announce an arrest in a cold case. police officials will be joined by almeda county prosecutors and the fbi, when they make the announcement. this is happening at 10:00 a.m. and 5:38 now. we are learning the father of one of the navy seals killed in

that chopper crash in afghanistan on saturday lives in san jose. kevin houston was among 30 americans who died when their chinook helicopter was shot down in eastern afghanistan on early saturday. houston lived in virginia with his wife and three children. u.s. military sources say the seals were on a mission to help army rangers who had come under fire. and when they were shot down, the taliban is claiming responsibility for the attack. and troops have now secured the crash site. as the investigation proceeds. looking less likely that the two cal grads held in iran will be released quickly. an iranian ambassador yesterday down-playing reports that shane bauer and josh fatle would be freed this past week and the two have been held for more than two years on espionage charges. their trial ended a week ago and a verdict was expected by now. well, time now is 5:39. a little double trouble on the roads. the warnings about safety problems with two very popular

car models. >> are you concerned about what happened if someone gets injured on one of their cabs and how that reflects on our industry as a whole? >> a fair fight over the san francisco pedi-cabs and the company who is accused of trying to pedal past the competition. you know when something's bad -- but you do it anyway? that's me with the blow dryer and the flat iron until i see smoke. so pantene said, "breakage and split ends? no problem." they gave me this pantene called breakage to strength. [ female announcer ] the keratin protection pro-v system helps prevent then repair split ends. zero fear of breakage, 100% more strength. no regrets, just health. i'm not giving up the heat. [ female announcer ] the breakage to strength system from pantene. you guys are exactly who i had whoin mind when i createdg!m

my new jumbo breakfast platter. it's a ton of food: 8 of my new mini pancakes, hash brown sticks, scrambled eggs, plus bacon or sausage, all for only $2.99. it's just the kind of breakfast hardworking guys like you need. ...yeah. they're here! ladies, you have the right to remain sexy... not that long ago, many families were priced out of an overheated housing market. but the times have changed. get the facts at remax.com. it's a great place to see all the listings in thousands of cities and towns. with lots of houses to chose from and down-to-earth prices the dream of owning a home seems more attainable than ever. find out what an experienced re/max agent can do for you. nobody sells more real estate than re/max.

downgraded. 5:42. trading begins within the hour on wall street with the credit rating being downgraded. >> ashley morrison from cbs money watch joins us from new york. good morning, ashley. >> we know the world markets took a beating. does it matter that treasury secretary geitner came out saying the s&p did this prematurely? >> certainly having an effect. and he came out to say that it

is important to note that it is only one of three major credit agencies that have come out and done anything about that. and they've actually -- it is only standard and poor's, and the other two, moody's and fitch and have not indicated they are ready to do so. at least not yet. the s&p have take an lot of heat for their action. the head of the ratings agency says if the u.s. does not clean up its fiscal act soon it could be downgrading america's credit rating again as soon as within six months and then we have treasury secretary timothy geitner immediately attacking the s&p for the decision and he acknowledged that partisan bickering in washington did not help but says the rating agency had no solid basis for its downgrade, and before the u.s. downgrade this weekend, you will remember the dow took a huge hit last thursday losing 500 points partly over debt concerns in europe, and now we've got the european central bank saying they will implement a bond purchasing program to prop up italy and spain's shaky economies and timothy geitner talked with the g7 leaders

pledging to cooperate this weekend. that will hopefully soften the blow a bit today. but so far, we're seeing a bit of a slide on the market. >> can you tell our viewers just waking up, i know the nikeii is down, and the hang seng is done and europe is down, across the board, it was a very tough day today, wasn't it? >> it really is. this is the first day of course of trading since standard and poor's downgraded america's credit. and this is the first time that this has ever happened. and yes, so things so far, things have not been good. we have seen asia, in asia the market tumbled falling 2.2 and hong kong's hang seng plunged almost 4%. and stock futures here are sharply lower and the dow futures are down by 200 points already. one small good news here, gold is topping $1,700 for the first time ever as investors are pulling their money out of the market and looking for safety. now the downgrade will likely mean that borrowing money will become more risky and that rates will go up. it will also mean for consumers, you know, mortgage rates will go up and car loans will go up.

so yes, it is the reaction, it is a little scary today and we will have to see how it plays out as the day goes on. >> it really does trickle down when you think of people waiting to get a mortgage and their rate goes up a point. plus they may not buy that house. >> that's right. >> crazy. >> very tough. >> ashley morrison in new york, thanks for joining us this morning. >> thanks. >> tough out there. >> all right, folks, are you headed out the door? we are looking at gray skies to start out with. and dense fog out to the coastline and again some drizzle. and fog moved well onshore and it looks like slow to burn off but we will find plenty of sunshine in the valleys and temperatures in the 80s. and inside the bay, 60s and 70s. and mostly sunny this afternoon. and out to the coastline, plenty of clouds continuing. 59 degrees right now in san jose. and 60 in mountain view. and 54 degrees and cloudy skies with drizzle in san francisco and it looks like high pressure is going to start to build in out of the desert and back up toward the bay area over the next couple of days but only slowly. so each day, the temperatures are going to be warming up a few degrees and other than that, no major changes in the long range

forecast. except toward warmer weather as we head toward next weekend. the temperatures, how about this. 76 degrees in santa clara. and sunny there and 73 in san mateo and 59 degrees in daly city. and east bay temperatures well up into the 80s. into the interior. as you see 89 degrees, in brentwood. that's about as hot as it will get in the bay area and 81 in pleasant hill. and 62346 berkeley and 66 -- 66 in berkeley and richmond. aágt and north bay and the interior valleys. and out to fairfield, to the coastline, 50s and 60s for highs. and the next couple of days, we are expecting warmer temperatures. most of that inland, plenty of low clouds and fog to start out the early morning hours. less fog thursday and friday. as the high pressure continues to build in and it looks like next weekend, some low temperatures mid-90s in the hottest spots and some clouds out to the coastline. and it is traffic time. with elizabeth. >> thanks, lawrence. we will go right out to the bay bridge toll plaza. and they have turned the camera around to so he -- show you the

incline. crowded to the upper deck and the s curve. metering lights are still off. no real backup hine the pay gates but pretty crowded headed into san francisco. golden gate bridge, here is the fog lawrence is talking about. all across the span. a lot of fog reported along stretches of highway 1. and san mateo county and you will notice the drive time is pretty slow on southbound 101 near novato and all the way into san rafael. and again, ongoing road work. in those southbound lanes. so watch out for that. and the visibility is obviously an issue there as well. and antioch bridge, the bridge itself looks great, like we typically seen and not seen the slowing that we see through antioch. and right now a pretty smooth ride on highway 4 all the way out to pittsburgh and on into concord. and same thing for the drive out of the altamont pass. a few brake lights here but overall your drive time is still holding steady at 17 minutes. from the altamont pass out towards 680 and the dublin interchange. i mentioned the earlier accident in pleasanton. that is completely cleared and

280 traffic looks great in san jose. that is your traffic. back to you. >> elizabeth, thank you. nearly 5:48 now. let's take a peek at some of the top stories on this monday. ed lee is expected to announce this morning that he will run for mayor of san francisco. lee of course appointed to the position last year after gavin newsom was elected state lieu tenant governor. it looks like mayor lee would like to be mayor lee again. the 9-year-old boy who was hit by a car leaving a giants gail game on thursday making small improvements but ryan white is still in critical condition here in a hospital here in san francisco. and police in britain are vowing to get even tougher on the rioters there after a weekend of looting in london that began over the fatal shooting of a man over a confrontation with police. pg&e was warned months before the san bruno explosion about the risk of disaster. documents filed with the state regulators show the utilities risk management group warned that gas in the company's

management created an unacceptable risk of disaster and raised questions about what top executives quote had known or should have known. tomorrow, east bay park officials take up a settlement for clearing hills of dangerous vegetation. at the center of the debate is the fate of nonnative eucalyptus trees. defenders say the australian imports are visually pleasing, provide homes for raptors and trap greenhouse gases but the critics say the eucalyptus are invasive with an unacceptable fire danger and the tree removal is restricted on 75-acres. >> they smell good, too. 5:49. two popular cars are under investigation for potential safety problems. some 2011 and 2012 ford mustangs reportedly have problems shifting into gear. meanwhile 2011vw jettas are alleged to have leaky fuel lines. as many as 66,000 vehicles could be affected. take note. the national highway traffic safety administration has not

announced any recalls. at this time. thousands of verizon workers expected its picket lines again today, and 45,000 employees went on strike yesterday, after contract talks over concessions broke off. the workers say the demands are unfair, given verizon's hefty profits, and the walkout affects land line customers only, and not verizon's 100 million wireless customers. well, pet pedi-cabs have become a popular way to travel in several local cities but here in san francisco apparently things are getting a little ugly. >> local drivers say a san diego pedi-cab company has started to operate in town. and it seems that this company's drivers are overcharging passengers and not following san francisco rules and regulations. >> we have places where we're supposed to be and not allowed and they're going everywhere. >> they're calling on san francisco officials to make the

newly arrived pedi-cab drivers get the permits. a hidden hazard lurking in school lunch boxes. the mistake that could be making your kids sick. and it is not quite snakes on a plane but it has passengers a little upset. something is flying there. the mystery object on the delta flight. when we come back. after 40, my skin looked tired. ultimate restoring lotion with coq10 to help skin renew itself. gold bond ultimate restoring.

[ birds chirping ] ♪ mmm! hot fudge sundae?!? ♪ new wild strawberry?!? ♪ [ female announcer ] over 25 flavors of kellogg's pop-tarts®... and they're all for fun & fun for all. pop-tarts®. made for fun™.

welcome back. ash 5:53. dangerous bacteria could be lushing in your child's lunch box. a study of the journal pediatrics found that when parents used an ice box in the child's lunch bag, the temperature of the food was too high by the time the child ate it. in a test of 700 kids only 1.5% of perishable items were found to be safe at a safe temperature. apparently it is okay for kids to play sports in hot weather as long as you take precautions according to the nation's largest preed tritions group. the -- pediatricians group. the american academy of pediatrics is out with new guidelines aimed at preventing heat illness among new athletes and it includes adequate training and drinking lots of water and making sure they get time-outs and access to emergency treatment on the sidelines. 5:54. it is not easy for most baby boomers to stay in shape but most baby boomers are not american endurance swimmer diana nyad either. look at this.

yesterday, there she goes. she began her attempt to be the first person to swim from the florida straits without the aid of a shark cage. she is 61 years old. the 103-mile swim from havana cuba to the florida keys is expected to take about 60 hours. >> boy, that is scary. >> i did the mile swim 1,000 years ago and done. but good for her. well, you think that a bird would not have to board an airplane because it already has wings, roit? >> try telling that to this bird or bat. we're not sure what it is. it is going to fast. no one can tell. a passenger took this video. awakened by the raucous on a delta airlines flight. the flying animal was finally trapped in the lavatory but apparently the flight crew went back later and couldn't find it. so it has disappeared. >> a stow-away. >> didn't want to pay baggage fees. >> can you imagine being on a plane and having that thing? >> i would freak out. >> yes. >> and they didn't find it

though, right? >> i would not be calm. >> that thing might be coming back and we could be doing another story tomorrow. and the next flight. >> that's right. >> lawrence played with his x box all weekend. and the kinect. >> i am so sore. >> i had so much fun but my hands are stiff, too. it is unbelievable. >> just use your clicker, though. >> that's right. that's all i have to do and that will get me through. low clouds and fog out there right now. it looked like it is going to slowly break up throughout the day and temperatures this afternoon, 80s inland and 60s and 70s inside the bay and out to the coastline, 50s and some 60s there. and it looks like warmer days ahead. more on that in a moment and time to check the roadways with elizabeth. >> and thank you, lawrence, and we have photographers doing all of the work this morning and set up over the bay area, and first, we have edgar, and live in the south bay, and through san jose, showing us 101 traffic near the allen rock exit and everything looks great through there and then we have don in the east bay showing you live traffic conditions through berkeley,

another ashby. where, so far, so good about an 18-minute drive in the westbound lapes as you make your way off the carquinez bridge and toward the macarthur maze. if you want to ditch the roads and use mass transit, everything looking great there as well. everything is on time. so we're off to a pretty nice start on this monday morning. >> done getting up early on this monday. >> all over the place, yes. >> all right. >> good stuff, thanks, guys. >> 5:57. in the next half hour, they died heroes. family from all across the country are grieving for the navy seals killed in the helicopter crash in afghanistan. the bay area connection, to one of those victims. and pulled from the flames. two women seriously burned in an overnight fire. this morning, the possible cause. we are now just about half an hour away from the market open. and we will see how investors react for the first time since standard and poor's downgrade of the u.s. debt. and we got a taste of what the asian and european markets and what they did coming up. i'm unter hudson live in san francisco.

where ed lee will announce his canada dacy as the next elected mayor of -- candicacy as the next elected mayor of san francisco. that story just ahead. ,,,,,,,,,,,,,,