♪ ♪ ♪ captioning sponsored by cbs >> o'donnell: tonight, there's several big stories as we come on the air, including worries about the state of the american economy, as prices soar. and, queen elizabeth returns home. breaking news-- tens of thousands pay respect, as the flag-draped coffin of queen elizabeth returns to buckingham palace one last time. cbs's charlie d'agata is in london. >> reporter: they waited for hours in the rain for this momentous occasion. >> o'donnell: plus, why king charles grew frustrated today during a signing ceremony. shock on wall street. the dow tumbles 1,200 points, as the price of food, rent, and electricity surge. cbs's nancy cordes is at the white house. >> we're making progress. we're getting other prices down as well.

but we have more to do. >> o'donnell: ukraine's counteroffensive. russian forces on the run, as president zelenskyy says ukrainian troops have liberated thousands of square miles of territory. cbs's debora patta reports tonight from kharkiv. california mudslides. a tidal wave of mud, as thousands are evacuated or ordered to shelter in place. cbs's mark strassmann is at the scene. >> this wall, plus sandbags underneath it, is what saved my house. this is the "cbs evening news" with norah o'donnell, reporting from the nation's capital. >> o'donnell: good evening to our viewers in the west, and thank you for joining us on this busy tuesday night. as we come on the air, the coffin of queen elizabeth is now at buckingham palace. it was an emotional return home, as thousands lined the streets of london to catch a glimpse of

the only monarch many of them have ever known. the late queen arrived at the palace for the final time, her official residence during her 70-year reign. the day began in scotland, as her coffin was carried from st. giles cathedral and driven to edinburgh airport for her final journey home. also arriving at buckingham palace tonight-- prince william and princess kate, as well as prince harry and his wife, meghan, for a private family gathering. we'll take you to buckingham palace in a moment. but first, the big story here in the u.s.-- another disappointing report on inflation, as prices unexpectedly rose in august and remain near a 40-year high. the consumer price index for august was up 8.3% compared to one year ago, as the cost of almost everything keeps going up. wall street reacted with a major selloff, with the dow and s&p 500 suffering their worst day since june of 2020. the tech-heavy nasdaq dropped more than 5%. well, we've got a lot of news to get to tonight, and cbs's nancy cordes will start us off from the white house.

good evening, nancy. >> reporter: good evening, norah. today's report dashed hopes that inflation had officially peaked and was on its way down. instead, the prices of nearly all goods actually crept up, and wages can't keep pace. government figures confirmed what most consumers already sense-- inflation isn't easing. groceries, up 13.5% since last year. electricity, up 15.8%. car repairs, up 9.1%. rent, up 6.7%. the bottom line, according to moody's? the average household is spending $460 more a month to buy the same goods and services as last year. >> just a catastrophically high inflation rate. >> reporter: that rate sent stocks tumbling today. the s&p sank by more than 4%, as the markets braced for more interest rate hikes from

the federal reserve, in a bid to cool the economy. >> the reason is clear. the fed is much more concerned about prices right now than it is about the labor market. >> reporter: typically, lower gas prices bring down the cost of other goods, but so far, that hasn't happened, even though the average price of a gallon of gas fell 26 cents in the past month. >> i will not make as much as i was hoping to. >> reporter: robin fields runs a toffee company near chicago. ingredients are her biggest expense. >> for example, butter and chocolate increased anywhere from 8% to 15%, and it doesn't look like it's going down any. it's just, my butter just keeps going up. >> reporter: and, while president biden celebrated the new inflation reduction act today, many of the law's health and energy savings do not kick in until next year, or beyond. >> we're making progress. we're getting other prices down

as well. but we have more to do. >> reporter: a new u.s. census survey revealed today that income inequality hit a new record last year. but there was one bright spot, norah. it also found that childhood poverty was nearly cut in half last year, thanks to covid-19 stimulus payments and an expanded child tax credit. >> o'donnell: nancy cordes at the white house. thanks very much. well, the tributes for queen elizabeth keep pouring in, with her daughter, princess royal anne, saying in a statement today that she was "fortunate to share the last 24 hours of my dearest mother's life." cbs's charlie d'agata is outside buckingham palace. >> reporter: the queen left her beloved second home of scotland for the final time late this afternoon, after the last of the mourners paid their respects in edinburgh. a royal air force jet waited to receive its precious cargo, before spiriting the queen into

the late summer sky for a short flight back to london. the bearer party delivered the coffin to a waiting hearse, and then the courters left for buckingham palace. arriving early this evening, to cheering applause from thousands of the queen's most loyal, royal subjects. they've waited for hours in the rain for this momentous occasion. for this final homecoming. to witness history unfold. inside, the coffin was received privately by king charles and queen consort camilla, and all the queen's children and grandchildren, plus spouses. ( applause ) before dashing back to london, the new king made an historic first trip outside mainland britain as monarch, visiting northern ireland, the first visit from a king in around 80 years-- part of the tour of countries making up his kingdom.

crowds of well-wishers, including excited school children, lined the route. >> oh, boy. >> reporter: later, a more mundane incident interrupted the proceedings. a leaky pen. in a nod to the violent past in northern ireland, he said his mother saw the country pass through "momentous changes." >> through all those years, she never ceased to pray for the best of times for this place and its people. >> reporter: but from belfast to buckingham palace, today was a day to reflect, and to pay tribute to her majesty. the atmosphere has become more somber here, now that the queen has returned to london. that private reception for the queen that took place behind us involved just about every senior member of the royal family, including prince william and kate, and importantly, prince harry and his wife meghan. norah. >> o'donnell: charlie d'agata, thank you so much.

now to ukraine, where the dramatic advance of ukraine forces and a russian retreat may suggest a possible turning point in the war. president zelenskyy said his army has retaken or is battling for control of more than 3,000 square miles of territory previously held by russia. well, that's more than the size of delaware. cbs's debora patta is in kharkiv. >> reporter: ripping up and tearing down every trace of the occupying forces, replaced with yellow and blue, pretty much the only colors flying across this region. joyous reunions like this are everywhere. in just a matter of days, ukrainian forces have blitzed through russia's gains, taking back nearly all the territory seized in kharkiv since the start of the war. and ukrainians claim, in these unverified videos, that russian soldiers are surrendering en masse.

"they ran like mice," said this ukrainian fighter, "abandoning everything, even shooting one of their own wounded men just to get away." and ukrainian civilians have born the brunt of nearly seven months of occupation. "it was terrifying," said slover. "i was scared somebody was going to shoot me in the back." for vladimir putin, losing this region is a crushing defeat, and a decisive blow against his army's ability to resupply its forces through liberated izyum. putin now faces tough questions on state-run television. "you say everything's going according to plan?" exclaimed policy expert viktor olevitch. "you really think, six months ago, we planned on leaving and repelling a counteroffensive?" kharkiv remains a city in darkness, after russia blew up a pwer plant, but the mood here is defiant, even as heavy shelling in other parts of the

country remind ukrainians this war is far from over. norah. >> o'donnell: debora patta, thank you for your superb reporting. well, back here at home, thousands of residents east of los angeles are under evacuation orders after heavy rains caused fast-moving mudslides that damaged homes and buried cars. cbs's mark strassmann is on the scene. >> reporter: on a mountain road, eeping--urgento a river of muoulys s. mearg. tre karel. reporter: s ni showed us protective rete ber she built that saved her house. >> and it looked like fast- flowing lava. and it literally filled up that entire ravine within three minutes. >> reporter: that mudslide came after a weekend deluge, remnants of a tropical storm that, for a

time, targeted communities in the san bernardino mountains. nature's fury... and nature's backlash. all made worse by the el dorado wildfire in these same mountains two years ago this week. so, all this mud and debris washed unimpeded down the mountain, and slammed into the oak glen steakhouse, where volunteers pitched in with an epic cleanup. karen pierce's family owns it. >> you can see, all of this mud came up over the wall and into the roof, into the building. and so, we've lost the dining area, part of the kitchen. you know, everything is gone. >> reporter: this is the back of the restaurant. that's nine feet of mud, right up to the roofline. what are the odds, right? well, listen to this-- the family bought this restaurant with their winnings from a $180 million mega millions jackpot. $180 million. so, in 2014, they won the lottery. this time around, norah, their

luck did not hold. >> o'donnell: wow, what a story. mark strassmann, thank you. let's turn now to congress, where a cyber-security expert who was fired by twitter earlier this year gave explosive testimony on capitol hill today, saying the social media platform had a suspected chinese spy on its payroll. cbs's nikki battiste has more on the whistleblower's allegations, and what twitter is saying tonight. >> reporter: twitter's former security chief, peiter zatko, today claimed the company's cyber-security system is in shambles. >> they don't know what data they have, where it lives, or where it came from, and so, unsurprisingly, they can't protect it. >> reporter: zatko, who worked for twitter for 14 months before being fired, said the company can't shield users data from a rogue employee. >> it's not farfetched to say that an employee inside the company could take over the accounts of all the senators in this room. >> reporter: iowa republican chuck grassley said twitter

users were exposed to foreign intelligence agencies. zatko was asked about the f.b.i. informing the company that one suspected chinese agent was on its payroll. >> i'm reminded of one conversation with an executive, when i said, "i am confident we have a foreign agent," and their response was, "well, since we already have one, what does it matter if we have more?" >> reporter: committee members were astonished by what they heard. >> what i heard there today made me want to throw up. >> reporter: senator grassley said, if zatko's claims are true, twitter c.e.o. parag agrawal, who refused to appear, should be removed. >> many of the allegations directly implicate mr. agrawal. >> reporter: for zatko, he said it was dangerous coming forward. >> i determined it was necessary to take on the personal and professional risk, to myself, and to my family... of becoming a whistleblower. >> reporter: twitter responded

to zatko's allegations, saying that they're riddled with inacuracies and inconsistencies. also today, twitter shareholders approved elon musk's $44 billion bid to buy the company, but musk wants out, and has sued twitter hoping to unwind the deal. norah. >> o'donnell: nikki battiste, thank you. well, another blow to the country's fragile supply chaini. that story now, in 60 seconds. e. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire (geri) i have copd. because i smoked. so i have to pace myself. my tip is, if you're having people over for thanksgiving, start cooking in october. (announcer) you can quit. for free help, call 1-800-quit now.

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negotiations continue as at least three cabinet secretaries and president biden work to end the stalemate. >> the shutdown is not acceptable. >> reporter: the two sides are at odds over sick time and attendance policies unions say penalize workers. the looming strike would idle 7,000 trains and 140,000 miles of track across 49 states, prompting amtrak to cancel some long-haul service, and warnings for commuter rail riders to make backup plans before friday. >> i have been commuting from the suburbs to chicago now for over 30 years. i could never remember this happening. >> reporter: already, freight railroads are refusing some cargo. >> there's just no question it would be extremely devastating. this is sort of one of those things that is a main artery for the entire u.s. economy, and if you cut off that artery, you get a stroke. and you can't afford that. >> reporter: nearly half a million extra big rigs would be needed to replace the idle

trains. the first rail strike in 30 years could cost the economy an estimated $2 billion a day, disrupting agriculture, automotive, energy, and retail businesses. the railroads have agreed to substantial raises and bonuses. the holdup really is that sick time. now, the union representing the engineers tells cbs news it is willing to fly to washington as soon as tonight to try to make a deal to continue those negotiations with the cabinet secretaries and the railroads, to avoid a strike. norah. >> o'donnell: such a huge story. kris van cleave, thanks. coming up next, could a federal abortion ban be coming? coming? your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials

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>> o'donnell: health officials have confirmed the nation's first death from monkeypox. the patient from los angeles county was severely immunocompromised. another person who had been diagnosed with monkeypox died last month in texas, but it's unclear what role the virus played in that death. big story-- the owner of the phoenix suns and phoenix mercury was suspended from the n.b.a. and w.n.b.a. today for one year, and hit with a $10 million fine. an independent investigation found that robert sarver had a history of racist, misogynistic and hostile behavior. and, we will be right back. a hif

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crowd, no matter where she was in the world, would be able to spot her andeel s's h repter: the queen's signature looked barely changedn shoes, and practical handbags. a uniform, and a lesson in female power-dressing later adopted by others. i suppose what it projects is a sense of purpose. she was a working woman. >> she was a working woman. and every single time she went out in the public, she was there in her uniform, to work. >> reporter: for centuries, british monarchs have projected grandeur with their clothing, and at times, queen elizabeth did the same. but she also had an off-duty style-- a country girl at heart, according to those who knew her. >> that self-confidence in her identity, that i think i will always remember as her legacy in fashion. >> reporter: holly williams, cbs news, london. >> o'donnell: and that is tonight's "cbs evening news." i'm norah o'donnell in our nation's capitol. good night.

captioning sponsored b cbs i believe prop 27 is the right thing to do. i had experienced being in shelters at a young age. having nothing. prostituting. we don't choose this life. i never knew what safe was until i came to city of refugee. people that's coming through these doors are trying to break the cycle. prop 27 will help provide more funding for places like this and help people get off the streets. it feels good to have a place to call home. support prop 27. want a permanent solution to homelessness? it feels good to have a place to call home. you won't get it with prop 27. it was written and funded by out-of-state corporations to permanently maximize profits, not homeless funding. 90% of the profits go to out-of-state corporations

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