over the u-s debt brace yourself. it could be a rough day on wall street. stocks are expected to stumble this morning. how fears over the u.s. debt crisis are arn the globe. an elderly woman and her caretaker seriously burned in a house fire overnight. what firefighters think may have sparked the flames. good morning, everybody. it is monday, time to get up and get back to work, august 8. i'm frank mallicoat. >> i'm grace lee. let's get your day started with a little bit of carn can and some weather. >> a little lawrence karnow is always good. >> not bad for monday morning. gray skies out there guys and it looks like it will slowly burn off. 60s in san francisco, and oakland. and some sunshine into concord. about 81 degrees. more on the weather coming up. let's check on traffic with

elizabeth. >> okay, thank you, lawrence. and we've been pretty much hot spot free for most of the morning. and in fact here is a live look at conditions at the bay bridge. i think we will show you in a second. bay bridge toll plaza, so far, so good this morning, metering lights off. and more traffic in a bit. back to you. >> thanks. 6:01 now. and the stock market is expected to open in less than half an hour. all eyes expected to be glued on that big board. and stephanie trong joins us from the newsroom to explain how the rough trading has started overseas. >> good morning. we have nervous investors here. they're preparing for the first full day of trading on u.s. stock markets. and since standard and poor's cut the nation's credit rating, stripping away that coveted aaa title. the impact was definitely felt overseas. and in asia, the markets took a big hit again today. and the major exchanges in south korea and in china. each closed down 3.8%. and meantime, japan's nikeii and hong kong heck seng both fell

about 2.2%. here in the u.s., the dow and s&p futures fell an average of 2%. signaling a sharply lower open. this follow the u.s. market's worst wake since 2008. some market analysts say had is just the initial shock and that the downgrade will not hurt the numbers in the long run. >> 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 the long term problems. >> as for the major markets in europe, they fell less than 1% today. and investors there were calmed down a bit by a pledge from the european central bank. to support the unstable bonds of italy and spain. but after early gains, european markets slipped a bit again. so a lot of people are looking to see that big board in less than a half hour. >> grace? >> let's hope he is right about the long-term effects there. stephanie trong in the newsroom, thank you. 6:02. oakland police are searching for a driver who led them on a high

speed chase this morning. the suspect's car ended up crashing on 66, and 880. they're towing it away now. police say the driver got out of the car and took off on foot and police are now doing a yard search for that suspect. and still unclear why police were chasing the driver. all roads have just reopened. an elderly woman and her care giver have severe burns from a fire in san francisco late last night. it broke out at 11:30 at a home on jackson street. firefighters found the two women unconscious in the dwelling, one victim in her 80s and the other in her 60s. they're at a hospital being treated for severe burns and smoke inhalation. investigators think the fire started in an upstairs bedroom, maybe linked to cigarettes. . a big announcement about the san francisco mayoral race, it comes in about three hours or so, unter hudson in san francisco where ed lee is expected to throw his hat in the ring. he joins us with more. good morning. >> reporter: good morning, frank. there has been a lot of speculation surrounding ed lee

over the past couple of months. will he run for mayor? that guessing game is over. in an interview with the chronicle, ed lee says he will officially announce his candicacy at a fluce conference this morning. he was reported as interim mayor when gavin newsom who was elected as lieutenant governor. and lee says hey pw-pbs able to accomplish a lot over the past search months, balanced the budget and hired a new police chove and pension reform and kept twit ner the city. and lee says it has been stressful, but it is worth it. he told cbs 5 phil matier on friday he received a lot of praise and support from the community, which helped him make his decision. >> and 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 after seven months, i feel good about the things i've done and i will continue working really hard to

do it. >> now despite his hard work, lee is not without his critics, and 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. issues with the homeless, and the ongoing tension between police and residents in the bay view district. still, in an exclusive cbs 5 poll, 59% said they would vote for mayor lee, but it won't be an easy race. there is nine other contenders, and strong competition from the supervisor and others. and all of whom will participate in a mayor forum tonight at the theater, including ed lee this time as a candidate. again, that announcement to come at 9:00 a.m. this morning. frank? >> coincidence there that they've got a debate tonight and he is throwing his hat in the ring this morning? >> well, i think that's why he had to do it, make the announcement this morning, so he can get on that list for tonight. >> absolutely. and i think you're right.

live in san francisco, thank you. 6:05. vallejo police are looking into the murder of a man found shot in his suv. officers responded to a report of a hit-and-run at sonoma boulevard and mini drive. they found the victim dead in the florida explorer which had rolled over a center median. we're learning that the father of one of the navy seals killed in that chopper crash in afghanistan lives in san jose. kevin houston was among 30 americans who died when their chinook helicopter was shot down. this was in eastern afghanistan. 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 a team of army rangers when they were shot down. the taliban is claiming responsibility for the attack. coalition troops have now secured the crash site, as work continues to investigate this incident and recover remains. my sister-in-law in town from boston. and she learned what mark twain said was right, the longest

winter i ever spent was a sum ner san francisco. >> boy is it true. >> here is a taste of it, guys. and we will take you outside right now and this is what the bay area is all about in the summer time. the low clouds and fog. can't see the top of the transamerica building this morning. that will break up through the early morning hours. and you get the idea. socked in with low clouds and slow burnoff. dense fog along the coastline. drizzle. temperatures in the 50s and 60s. by the afternoon, we will see some sunshine in spots. and 80s inland and 60s and 70s inside the bay. and 50s and 60s, and cloudy out toward the coast. it is traffic time now with elizabeth. >> thank you, lawrence. and in traffic, it looks great on this monday morning. no big issues out there. and we will show you a live look in berkeley, westbound 80 traffic near ashby avenue. and getting more crowded now on the westbound lanes and drive times are still about 18, 19 minutes from the carquinez bridge down towards the maze. and elsewhere, we can show you what it looks like for the drive out of the altamont pass, a few

brake lights but the drive time has not changed in the last half hour or so. still about 17 minute drove out to pleasanton. and south bay, we have had no issues all morning. 101 looks fine. and 280 heading out the downtown san jose and a snapshot near the 880 interchange and mass transit on time and the silicon valley commute and westbound 287 and looks great as you exit millipitas. that's your traffic. back to you. >> thanks. 6:08. a dismal warning. just months before the san bruno explosion. why pg&e was told to prepare for disaster. and protests erupt on the streets of london as well, for the second night in a row. how anger over a police shooting turned very violent. >> and that's victorino hit in the back. and victim remow is thinking about something. now -- victorino is thinking about something. now we got action. >> thinking about a lot. a fallout between a bench-clearing brawl between the giants and the phillies and how the phillies manager is defending his player.

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down-played reports that shane bower and josh fattal would be freed over the weekend. two men have been held for more than two years on espionage charges. the trial was last week and the verdict was expected by now. after a weekend of vandalism and looting in london, mayhem began as a protest over the fatal shooting of a man during a confrontation with police. more than 55 people were arrested. and 26 officers were injured. >> what we see behind us is very painful. the heart of our community has been ripped out. >> it was meant to be a peaceful protest. and the police made it worse. >> i hope the people are happy. but they are discontented. i think the system is cracked. and these are signs to show it. >> the riots took place not far from the main seat of next year's summer olympics. and now there are concerned raised about security during those concerns. 6:12. pg&e was warned months before the san bruno explosion about the risk of a disaster. documents filed with the state

regulators show the utility's risk management group warned that gas in the company management created a quote unacceptable risk of disaster. and raised questions about what top executives quote had known or should have known at the time. time now is 6:13. have you probably seen. it an all-out brawl at at&t park this morning. the phillies coach, or manager, rather, is defending his player's actions. plus, hit in the cross walk. while coming home from a giants game. how the 9-year-old phillies fan is doing this morning. travel time in the bay area. low clouds and fog this morning. by the afternoon, just some patchy fog. 66 degrees. if you're headed across the country, we are going to see some thunderstorms erupting across the country's midsection but then as you pull into chicago, well, we will have a few clouds there, and yes, it looks like the possibility of a few thunderstorms, too. and 79 degrees. and very comfortable for a high. and continuing on toward new york. it looks like a few more clouds. an the possibility that we could see some activity as we head to

the afternoon as well. and 90 degrees and the possibility of thunderstorms. the rest of your forecast is coming up. ,,,,,,,,,,,,,,,,,,,,

welcome back. on this monday, 6:16. let's take a look at today's top stories. asian stock marks took a tumble today. this is in reaction to standard and poor's downgrading of the

u.s. credit rating. and here in the u.s., futures are down as well. trading is set to begin in a few minutes. two women are hospitalized with severe burns. this after a fire at a home in san francisco late last night. investigators believe cigarettes may have started that fire. at their house. on jackson street. ed lee will run for mayor of san francisco. that's what the chronicle is reporting this morning. and lee was appointed to that position last year. and promises to announce his future plans later this morning. weather time, we've got low clouds and fog around the bay area this morning. and socked in. drizzle out to the coastline. some dense fog out to the beaches and can't see the top of the bay bridge right now and as we have clouds extending well onshore at this hour but more sunshine coming our way in toward the afternoon. jut got to get through the summer fog. that's what we're seeing right now. pretty typical pattern, gray around the bay area, to begin with. plenty of sunshine in the valleys and temperatures in the 80s and upper 80s in the far reaches of the east bay, as you get inside the bay, 60s and a few 70s toward the santa clara

valley and 50s and 60s toward the coast and mostly cloudy skies toward the beaches and 50s and low 60s in mountain view and 57 degrees and cloudy skies in livermore and 57 degrees and cloudy in oakland. and around the state, you will find some heat in the central valley, and 97 degrees in fresno, and about 78 degrees in lake tahoe. and so high pressure is trying to build in. it will take some time and really coming out of the southwest. it is building back toward the bay area, and so it looks like a slow warming trend over the next few days, and not going to be able to get rid of the low clouds and fog and late night and early morning hours and some of the dense fog out to the coastline. temperatures not bad. 76 degrees san jose. and 78 in los gatos. and 73 and mostly sunny in union city. well in the 80s inland and so places getting close to 90 degrees in antioch and brentwood but getting into the try valley and upper 70s and low 80s. and inside the bay, you will see 60s for highs for the most part in toward oakland and richmond. and in the north bay, it will be cloudy out to the coast. and 50s and 60s there. and lots of 70s showing in the valleys.

and as we head into the next few days, we are going to see more of the same, nice morning low clouds and fog, and dense in the morning hours and sunshine in the afternoon and then it looks like maybe some mid-90s as we head in toward next weekend. that's a look at weather. let's check out the roadways with elizabeth. >> we will start in the south bay and go right out to san jose where our photographer is near the allen rock exit, here all morning long and showing slightly more crowded conditions in the northbound lanes of 101. so far, not too bad of a morning commute. let's go to the maps and show you a wider view of the south bay and what it looks like on the sensors. mostly green. green is good. in traffic talk. so right now, you're looking good on 101 and 280. this is 280 traffic, heading out of downtown san jose. and approaching the 880 interchange and a nice ride through there. let's go up to pleasanton and the dublin interchange. word of an accident, westbound 580 and it is right here, right before you reach 680 and it sounds like it is involving a big rig. so not sure about lanes blocked.

and possibly cleared to the right shoulder. there is some confusion right now. but we are seeing a little bit of slowing right now in those westbound lanes of 580 as you approach the dublin interchange. this is the second accident in the same spot since 5:00. 21 minutes is your drive time now. and westbound 580 coming out of the altamont pass and heading to 680 and the dublin interchange. and let's take you outside. back outside, a live look at the bay bridge toll plaza. no metering lights, you can see in the fast track lanes, cars are cruising by and slight delays, not too bad, backed up to the very end of the parking lot it looks like and the drive near the east shore freeway a nice and light 21 minutes from the carquinez bridge to the mays and fog especially across the bridge of the golden gate bridge. hard to tell where this is, this morning. and seeing some fog reported in stretches of highway 1, and actually a minor fender-bender through daly city and highway 1 near skyline boulevard. watch out for low visibility and

the drive time is sluggish southbound 101 through novato and san rafael and mass transit and if you want to ditch your car and get to work, mass transit remains on time. kcbs at 106.9 f.m. 6:21 now. the young baseball fan hit by a car while leaving a giants game on thursday may see some small improvements but he remains in critical condition this morning. 9-year-old ryan white out of philadelphia was run down in a cross walk as he and his family left at&t park thursday night after a game. andrew vargas of hayward is charged with dui. when he hit ryan. and that hits victorino in the back. victorino is thinking about something. and now we got action. >> they got a little action. and a decision on punishment still pending following that bench-clearing brawl between the giants and the phillies. it happened on friday night. when giants pitcher ramon

ramirez drilled victorino and charley emanuel is defending his player saying he had little choice but to respond. the giants meanwhile host the pirates tonight first of three at at&t and the pirates have lost 10 in a row. that should be fun. >> it is always a fun game at at&t park. 6:22. one of the best known landmarks in the world but why hollywood is suddenly turning its back on tourists. plus this. >> i'm concerned about what happens if someone gets injured on one of their cabs and how that reflects on our industry as a whole. >> we have a little war on the waterfront. why some san francisco pedi-cab drivers say their competition is not playing by the rules. ,,,,,,,,,,,,,,,,,,

back now at 6:25. this morning, officials in san mateo county are rolling out a plan for double rebates for people who make their homes more energy efficient. homeowners will be eligible for up to $8,000, that's because the county is now matching incentives of $4,000 offered by pg&e. the double rebates are available through next march. well, traveling by pedi-cab has become popular in a lot of parts of the bay area but the competition in san francisco is getting unpleasant. some local drivers say a san

diego pedi-cab company has started operating in town. and they claim 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 places where we're not allowed and they're just going everywhere. >> they're calling on san francisco fishes to make the newly-arrived pedi-cab drivers get the permits. there are three words that some of the feelings of a lot of people who live near the hollywood sign in southern california. >> you lived down there for a while. tourists, go away. that's ha it says right there. that's what a new sign on the hollywood hills say. and tourists cannot walk to the famous hollywood signs and a lot cruise the narrow streets and cul-de-sacs with a better look and a photo or two and that keeps neighbors worried about noise and trash, too. >> you know people will come. that is like the landmark in l.a., right? >> they have alarms on there, now. and my friend in college changed

the sign during his days. >> with lots of colleges down there. two women badly burned in san francisco. coming up what is believed to have sparked the house fire. a car chase starts a high speed police chase. where this happened and the latest on the search for the suspect. it is almost here, we're minutes away from seeing how wall street reactions after the s&p downgrade of the u.s. debt. which was felt overseas this morning. how the asian and european markets and wall street numbers are coming up. ,,,,,, ,,,,

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hold on, everyone. trading has begun on wall street for the first time since the s&p downgraded our country's credit rating. the dow was down 6% last week and lost about a trillion dollars in value. that's just last week. money watch reporter jason brooks will join us in a little bit. to tell us what is going on. good morning, everyone. i'm grace lee. >> hi, everybody. i'm frank mallicoat. it is august 8. it is monday. >> yes. >> i got to remember that. >> and happy monday, everybody. and 6:30 your time. let's get you out the door with traffic and weather. mr. lawrence karnow. >> yes, fog out there right now. and it is very thick across the bay area. dense fog showing up especially near the coastline. foggy inland. by the afternoon though, we will see some sunshine in the valleys. mild temperatures. more on that in a moment. let's check out the roadways

right now with elizabeth. >> we have a slight backup right now at the bay bridge toll plaza. lawrence looks intrigued. yes the metering lights lights are on. pretty sluggish from the incline to the s curve. we will update you on the earlier accident in pleasanton coming up. am the meantime, back to you. >> thanks. 6:31. the wild ride on our roadways may pail in comparison to the cruise on wall street today as we showed you moments ago, the u.s. markets have just opened moments ago. not good. stephanie trong is keeping an eye on the big board and keeping track on how markets worldwide are doing and i guess wall street is limping out of the gate so far. right? >> reporter: yes, it is. so far. down just slightly. we will take a look at the numbers in a bit. but the markets opened a minute ago and this is what many people have been waiting for and the first time investors are reacting to standard and poor's downgrade of our nation's credit rating. taking away our aaa status for the very first time. asian marks were the first

indicaters. they opened lower and stayed down throughout the session. the worst-hit were in south korea and in china both bell 3.8% and the nikeii and the heck seng also dropped but not as badly. and 2.2%. here in the u.s., the dow and s&p futures, they showed about an average of 2% drop. now, s&p has a downgrade that followed last week's debt ceiling agreement. the ratings agency has blamed the partisan bickering that led to the debt ceiling crisis in the first place. leaders in washington are now pointing some fingers. >> i believe this is without question the tea party downgrade. >> this president has failed to lead. and any other private sector enterprise, we -- he would be fired. >> reporter: looking live at the numbers. down 230. so far this morning. a drop of about 2%. again, this is of course just the very beginning. and we will have to see what happens throughout the day.

the market sectors most vulnerable to the economy like the natural resource and banking sectors are expected to get hit the hardest. not everyone is banking on these numbers. some market analysts say this is just the initial shock. and that the downgrade will not impact the numbers in the long run. so here is hoping that those people are right. frank? >> yes, fingers crossed and here is hoping in a big way. a slow start thus far. stephanie trong in the newsroom. thanks. 6:33 now. oakland police are searching for a driver who led them on a high speed chase earlier this morning. and the suspect's car ended up crashing at 66th and 880. and police say the driver got out of the car and took off, on foot. and police are now doing a yard search for the suspect. and still unclear though why police were chasing the driver. all roads in the area have reopened for new commuters. and a fire late last night in san francisco sent an elderly woman and her care-giveer to the hospital. the fire broke out at 11:30 at a

home on jackson street. and firefighters found the two women unconscious inside. and one victim is in her 80s and the other in her 60s. and they are now being treated for severe burns and smoke inhalation. and investigators think that the fire started in an upstairs bedroom. and maybe linked to cigarettes. well, you know one of the biggest questions right now about the mayor's race in san francisco is getting answered this morning. >> i think it may have been answered over the weekend and we're getting wind. anser hudson is in san francisco where the appointed mayor apparently trying to become the newly elected mayor and he joins us with more with mayor ed lee's big decision. >> reporter: that's right. there is a lot of speculation surrounding ed lee for the past couple of months, would he run for mayor. officially the announcement will come this morning that yes, he will run for mayor. he has made that announcement to the san francisco chronicle over the weekend. mayor ed lee was appointed interim mayor back in january when gavin newsom was elected lieutenant governor making him the first asian american mayor

of the city. he has worked in city government for the past 22 years and says he is proud what he has been able to accomplish the last seven months as mayor and with little political fighting and able to balance the budget and a new police chief and pension reform and the america's cup to the city. he says it has been stressful but it has been worth. it and he told cbs 5 phil matier on friday that he received a lot of praise and support from the community which helped him make the decision. >> i have been working really hard. i have never worked so hard before. but i will tell you at the end of the day, the sacrifice is work. it this city is worth everything we can do for it. >> the mayor for the city and county of san francisco. >> lee is not without his critics, some say he is breaking his promise not to run. and which is why he was appointed interim mayor in the first place. and the city still has its problems. ongoing problems with the homeless. complaints from small businesses about the numerous fees. and rising tension between police and residents in the bay view district. still, in an exclusive cbs 5

poll, 59% of respondents say they would vote for lee as mayor, but still, it won't be an easy race. there are nine other candidates, including strong competition from supervisor mikala pier and beven duffy and the city attorney dennis herrera. all of them will participate in a mayor forum later tonight. and again, this morning at around 9:00 a.m. mayor ed lee is to make the official announcement for his bid for elected mayor of san francisco. frank, grace? >> i don't think we're surprised after his chat with phil matier on friday. >> not surprised but interesting to see the debate tonight. >> thanks for joining us. a little traffic and weather and get you out the tor. >> out the door. >> if we can find lawrence karnow in the fog. >> a glimmer of sunshine from the mount vaca cam. patchy fog down below. plenty of sunshine in the valleys as we head to the afternoon. but that fog is thick once again

folks and slowly burn off. and temperatures today down just a bit as well and plan on cool numbers toward the coastline with the fog sitting there the better part of the day and drizzle out there and 50s and a few 60s by the afternoon and 50s and 60s toward the coastline and maybe some 80s showing up in the valleys. and lots of sunshine there. let's take a look at the roadways. with elizabeth. >> thanks, lawrence. and our longest drive time with traffic out of the altamont pass pass through the dublin interchange, a little difficult to see this morning, a little foggy out there, but westbound 580 traffic, we've actually had two accidents right there through pleasanton. approaching the dublin interchange. and everything is now cleared. so all lanes are now open. but let's see what it is doing to the drive times. it is making it pretty lengthy. and that's where the accident was. and coming out of the altamont pass, 32 minutes now in the westbound lanes, and take you out toward 680, and pretty heavy traffic all the way through livermore as you make your way out toward pleasanton. and elsewhere, looks pretty good. along the peninsula. 101 traffic, near bay shore. still heading into downtown san

francisco. and the drive looks nice and quiet on 280 and 101 and your bridges, we showed you the bay bridge a couple of minutes ago, and metering lights on there. and san mateo bridge, looking great heading out of hayward. >> thanks, elizabeth. 6:38. vallejo police are looking into the murder of a plan who was shot and found -- a plan who was shot and found in a sports utility vehicle. officers responded to a report of a hit-and-run at 8:40 last night at sonoma boulevard and mini drive. they found the victim dead in the ford explorer which had rolled over the center median. san jose police are asking for a little help in solving the city's 30th homicide of the year. a man who was stabbed in roosevelt park in the downtown area early yesterday morning, police are now trying to determine a motive for the killing. at this point, they have no suspects. 6:38 now. we have learned 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 in eastern afghanistan early saturday. houston lived in virginia, with his wife and three children. coalition troops have now secured that crash site. and efforts are continuing this morning to recover remains and investigate exactly what happened. u.s. military sources say that the seals were on a mission to help a team of army rangers when they were shot down. and the taliban has claimed responsibility. well, back here at home, there is a move in san jose to recover money used to subsidize military reservists. >> and this comes during a continuing budget problem, and with overseas conflicts dragging on nearly a decade. kcbs investigator mike hogan on the telephone to explain what a city council member is proposing. good morning. >> on the program, city employees on active duty are paid the difference between what they make in the military which isn't much and the city salaries but many overpaid because of administrative errors and with the city demanding that the money be paid back and in some

cases we're talking about thousands of dollars. a san jose city councilman, pete constance. >> there are people who have become extremely frustrated. the city has inadvertently overpaid a large number of reservists. oftentimes their spouse and children are at home and the money comes into the account. and gets spent. and when they come back, they don't have the money to pay back. so we have to work with them to get the repayment. >> now, the new policy seeks to change the payment method to avoid these overpayment errors. out of the change, reservists will have to pay their own retirement contribution, which they don't have to do now. but they will because the city closed a $115 million budget deficit and the ongoing budget deficits for the next year, they're already talking about another 80 to $100 million deficit. and now most of these reservists are police officers. live in the silicon valley burough, cbs 5. the time now is 6:40. be careful when you pack a lunch for your kids going to school.

aheads the dangers often lurking in the lunch boxes. they may surprise you. and thousands of verizon workers are asking, can you hear me now? why they are making noise, and how their strike affects service. and the market open, 10 minutes ago, and let's take a look at the numbers. well, it is better. it was down over 200 points at one point. 156 and some change right now. we will chat with kcbs money watch reporter jason brooks and see if he has a crystal ball that puts it all together when we come back. stay right there. ,,,,

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all right. here we go. off and going on this beautiful monday in the bay area. a little gloomy outside this morning. fog out there right now. it looks like coit tower trying to show up. it will show up later on. dense fog and drizzle especially out to the coastline. it looks like ha is slow to break up throughout the day today. so temperatures running below the average for this time of the year. and especially toward the coastline. very gloomy there. plenty of sunshine in the valleys this afternoon. and moving well into the 80s. even upper 80s in some of the hottest spots well inland and inside the bay, 60s and 70s. and mostly sunny by the afternoon. out to the coastline, 50s and 60s and not much clearing there. 59 degrees in san jose.

57 in livermore. and 56 degrees in fairfield. partly cloudy now in the fairfield area. and if you do plan on traveling around the state, upper 80s in toward the sacramento valley and 90s getting hot in fresno. and plenty of sunshine there. and 92 in yosemite and about 78 degrees in lake tahoe. and so the high pressure is trying to build in. but it is going to be a slow mover. it is backing from the center of the u.s. making its way back into the california area and as it builds in, a low warming trend the next few days. still not able to get away from the low clouds and the dense fog in the early morning hours, especially toward the coastline and then it looks like the warmer temperatures will be showing up in the valley. with that in mind, we know what to expect over the next few days. today, mid-70s. in toward san jose. and mid-70s in santa clara. 83 one of the warmer spots in the south bay in morgan hill and east bay temperatures, as high as 89 degrees in brentwood. and 88 in antioch. and 85 in pittsburgh. and in the north bay, you will see temperatures in the 70s. an even some 80s toward fairfield and 50s and 60s toward the coast. it looks like the next couple of days the temperatures start to

warm up and 90s tuesday and wednesday and at least inland warmer weather as we head toward next weekend. it is time for a check of your traffic. for that, we head to elizabeth. >> and lawrence, are you jealous? we have photographers around the bay area this morning. >> we have traffic. let's slow you what it looks like out there. the first one is don out of berkeley, 80 traffic out of ashby avenue. and so far, so good and not seeing many hot spots this morning and everything looks pretty nice heading through berkeley and richmond. elsewhere we will show you the south bay. 101 traffic. this is the allen rock exit. and starting to get more crowded. but again, no major problems across the south bay. 101 and 280 both moving fine. to the maps, we will show you what is going on. this is the slow spot. a couple of earlier accidents and everything is gone now, cleared but your drive time unfortunately is still pretty heavy and 33 minutes coming out of the altamont pass. and out to 680 and the dublin interchange and two separate accidents including one involving a big rig through pleasanton.

but again all lanes are open. and we will see things recover. pretty slow in the meantime. silicon valley commute. no backups here. westbound 237, still nice and light. exiting millipitas through san jose and problem free this morning. and elsewhere, the bay bridge, the usual stuff through here unfortunately and metering lights are on. turned off before 6:30. it is backed unto the end of the parking lot. and overall not too bad. a 10-minute wait. and sluggish, the slow traffic from the incline to the s curve. the drive time is only 21 minutes. if you're using the east shore freeway from the carquinez bridge to the maze and mass transit, this looks great. bart has more than 44 trains running on time. and ace train, 1, 3, all fine. and muni, cal train, everything on schedule. remember, kcbs, radio partners where we pool all of our information with them. so once you're done listening to us, once you hit the road, you can tune to kcbs at 7:40 a.m. or 106.9 f.m. that is your traffic. >> back to you.

>> no more fighting down there, plenty of cameras to go around for everyone. >> thanks, you guys. 6:47. wall street not reacting well this morning to friday's decision to downgrade america's credit rating. >> i should say down over 200 points. and here is jason brooks with kcbs money watch .com. you're not dressed in black. that's a good sign. >> it could be worse. let's put it that way. we will save the black arm band for a much worse day which we hope we don't see any time soon. as we expect the markets selling off in the wake of standard and poor's decision friday to downgrade the u.s. credit rating from aaa to aa plus. and the difference between the two ratings is not all that much. aa plus still considered a high grade investment. where as aaa is considered prime. and it is a real psychological blow for the u.s. economy. and the white house is not happy. the treasury department is not happy about this. but standard and poor's said all along they wanted to see $4 trillion in cuts in the spending cuts, reached in the recent debt

deal, which only came to $2.5 trillion. and standard & poor's basically saying it doesn't have a whole lot of faith in the current political makeup. the united states. the bank of america saying it thinks standard and poor's will issue yet another downgrade in the next few months if that bipartisan committee that is going to be put together through this debt deal doesn't come through with bigger cuts than what is expected. and that would further royal the markets even then some. and the interesting thing the treasury is expected to hit hard. bond, the u.s. yields on u.s. treasuries, they have not moved that much and in fact they have gone even lower so interest rate, the very theme that is impacted by a credit rating downgrade is still very low. there is some hope, they don't go up a whole lot. and interest rates at extremely low levels, not a lot of borrowing. home sales very weak. and banks have been holding on to their money quite tightly. it is lard for consumers and

businesses -- it is hard for consumers and businesses to get the loans they want. if the economy continues to slow, it is not going to help. but the psychological blow is felt on the market. and worldwide the markets sold off. the same thing on wall street. the dow is lower by 221 points and the massachusetts is down by 61. and the -- and the nasdaq is off by 61 and s&p by 27 points. the big haven is gold, $1700 an ounce. and just shy of that right now. oil prices falling by the wayside. the economy slows and lower demand for gas and oil. oil is down about $4, under $84 a barrel. grace and frank? >> i guess it is all about perception, isn't it? that's the market in a nutshell. >> it is. and we've seen a big selloff. the markets are in correction form. a 10% selloff in the three major indices over the last two weeks and so really investors to some degree have already figured this was going to happen so some of the results have been baked in. and now we will just see how much more selling continues before the market stabilizes. at least we hope so.

>> think of the bargains out there. >> a good way to look at it, frank. >> hopefully they will drive the market a little bit. thank you. time now is 6:51. two popular cars are under investigation for a potential safety problem. some 2011 and 2012 ford mustangs reportedly have problems shifting into gear. meanwhile, the 2011 volkswagen jetta, they've got some problems. they allegedly have a leaky fuel line. as many as 66,000 vehicles could be affected. and national highway traffic safety administration has not announced any recalls at this time. thousands of verizon workers are expected to hit the picket lines again today. 45,000 employees went on strike yesterday after contract talks over concessions broke off. the workers say, well, the demands are unfair, given verizon's hefty profits. the walkout affects land line customers only. not verizon's 100 million

wireless customers. parents, something to think about. there could be dangerous bacteria lurking in your child's lunch box. a study in the journal of pediatrics found that even when parents used an ice pack in their kid's lunch bag, the temperature. the food was too high by the time the child ate it. in one test, 700 kids, only about 1.5% of perishable items were found to be in a safe temperature. and it is okay for kids to play sports in hot weather. as long as they take precautions. >> that's according to the nation's largest pediatrics group, the american academy of pediatrics is out with new guidelines aimed at preventing heat illness among young athletes and recommendations include adequate training of course, and drink a lot of water if you're out there, and some time-outs on occasion and access to emergency treatment. on the sidelines. in case you need it. all right. 6:52. here is the big question. will he run? >> yes, coming up. speculation surrounding that man right there. ed lee. a big announcement this morning. talk about that when we come back.

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♪ [ male announcer ] who's your car's best friend? gasoline that cleans. chevron with techron. care for your car. francisco mayor's race comes about two hours from now. ssan is in san back at 6:55. a big announcement about the san francisco mayor's race comes in about two hours from now. anser hudson is in san francisco where ed lee is expected to jump

into the big race. he joins us with more. good morning. >> reporter: good morning, frank. yes, months of speculation are supposed to end this morning, when interim mayor ed lee will officially announce his bid to run for his first elected term as player of san francisco. lee was appointed interim mayor when gavin newsom left the position to become the first lieutenant governor. lee promised not to run for mayor. but he insisted he changed his mind after reflecting on all that he has been able to do since january. some of which includes successfully passing pension reform. and balancing the city's budget. and keeping twitter here in san francisco. but lee is not without his critics. some say he is flip-flopping on his word. by announcing to run. and also the ongoing problems such as the homeless issue, and problems with muni and rising tensions between police and residents in the bay view district. and still in an exclusive cbs 5 poll, 59% say they would vote for lee, but it won't be an easy race. there are nine other candidates, many of whom have been campaigning for months. and now later tonight, the

castro theater will host the first mayoral forum this evening, which we suspect will include candidate ed lee as well. >> frank? >> no big surprise. thank you, live in san francisco. an elderly woman and her care give remember hospitalized this morning with severe -- care giver are hospitalized this morning with severe burns. firefighters found the two women unconscious in a home on jackson street. one victim is in her 80s. the other in her 60s. they're being treated for burns and smoke inhalation with the fire. and investigators say the fire may have been caused by cigarettes. let's go back to wall street. and see how it is doing. down 190 at this hour. the dow is down more than 200 points when it first opened. that's roughly 2%. the tech heavy nasdaq down more than 60 points. and asian markets took a big hit today. the major exchanges in south korea and china both closed down 3.8%. japan's nikeii and hong kong's

hang seng fell 2.2%. getting painful out there. >> 190 sounds good after thursday. it went down 500 and something. we will keep an eye on that all day for you. 6:58. we have to talk to this guy, and find out about traffic and weather. >> temperatures are down. stocks are down. fog outside. >> we will see some sunshine. we will talk about that this morning, we will see some sunshine in the valleys. but it will take some time for the gray skies to break up. 80s in many valleys. 60s and 70s as you make your way arn the bay. pretty gloomy out to the coastline with the patchy fog. and some drizzle. the next few days, it looks like high pressure will begin to slowly slide back into california. and allow the temperatures to warm up. at least in the interior valleys. not going to be able to get away from the low clouds and fog entirely. but i think by the end of the week, maybe mid-90s in the hottest spots inland. elizabeth? >> sounds good. thanks, lawrence. let's go out to hayward. westbound 92, we have an

accident there, blocking one lane. you can see a couple of yellow sensors there. it is a shrill sluggish as you pass -- a little sluggish as you pass the scene. a look at the san mateo bridge, a live look past the toll plaza, you're cruising but foggy out there. patches of fog all over the bay area in a lot of the traffic maps. westbound 580 definitely the slow spot of the morning. up to 34 minutes coming out of the altamont pass. that's because of a couple of earlier fender-benders near the dublin interchange. >> we have one more story. this is going to freak you out. >> yes, i know. i would be the one screaming in the back. >> when you think of birds, in an airplane, it has wings of its own, right? >> try telling this bird, i think it might be a bat, actually, going so fast, no one can tell. and this passenger took a video after he was awakened by the raucous on a delta airline flight. the flight animal finally crashed into the lavatory and the flight crew could not find it later. i hope they got it. >>