Transcripts For CNNW American Morning 20110714

this is ali. >> chris seen on a well-deserved vacation. we have a lot going on today. let's get to it. high drama and high stakes over raising america's debt ceiling. we are now just 20 day ace way from the treasury deadline. president obama will meet again today with congressional leaders for the fifth straight day of negotiations that ended abruptly yesterday. republicans saying the president stormed out of the talks. this morning, democratic source is telling cnn president obama shut down the meeting after house majority leader eric cantor continued to push for a short-term extension of the debt ceiling. something that the president categorically opposes. that's when sources say the president got agitated saying, quote, this could bring my presidency down but i will not yield on this. end quote. then he added, talking to eric cantor, eric, don't call my bluff. i'm going to the american people with this, end quote. let's go live to dan lothian at the white house. differ accounts of what actually happened. cantor saying the president stormed out of the meeting. the white house saying something else. nobody disagreeing there was a whole lot of tension to end that meeting yesterday. >> oh, boy. just a whole lot of tension in that meeting yesterday. as you pointed out. there's always two sides to every story, democrats, white house in particular saying the president did not storm out of that meting. instead he became agitated because he believes that republicans are using the talks for political gain. but the confrontation happened, according to democratic sources inside that meeting when, as you pointed out that cantor started arguing for this series of short-term deals. this is essentially backing off of what he had previously agreed to or talked about. and the president said according to the officials that what is going on inside of that room is essentially confirmed what most americans think about washington. there is a lot of frustration as these negotiations move forward and so far no agreement. >> they go back into this, the fifth day, going back 4:00 eastern time. i'm puzzled as to why they leave it so late in the day and tensions are already high. any sense things will be different? do they come back to the table today and say let's cool off from yesterday? or are we further ahead with these two sides digging in? >> well, look, first of all, there is this sense that both republicans and democrats are digging in. they are pointing fingers at each other and saying look, you are unwilling to compromise. there's still this issue of how you get to the receive now side of it. democrats saying that you have to have these tax increases on the wealthy. republicans saying that simply can't be on the table. if they continue to dig in like this, it seems unlikely there is going to be any real progress here. but some democrats saying they hope when all parties return to the table today, that the tone will be much different than it was yesterday. >> they are copping back to the white house today to talk. any idea if we can expect anything different than this impasse they have been dealing with? >> well, you know, yesterday we are told by sources inside that meeting they took a look at, you know, where they found common ground. about $1.5 trillion in cuts, they will start looking at that today. in today's meeting, they will continue looking at that, additional cuts they can find as well. they will come back again to how you get to the revenue side of this. republicans saying the best way to do this is make the economy better and create more jobs, that's how you get the revenue. democrats saying you have to be able to raise these taxes. so that's something, again, they are going to take up today when they get to this meeting and, you know, day after day after day they will continue meeting until they get a deal. >> dan good to see you. it is going to be a busy day for you. busy days ahead. >> our question of the day, president obama's outburst, i guess you would say, don't call my bluff. will it help resolve the debt debate? we want to know what you think. tell studded send us an e-mail. we will be reading your comments later. as we know there's so much uncertainty going on over this deal before the treasury's august 2 deadline. will they get one in time? credit rating agency, moodies, putting america's triple-a rating on notice for a possible downgrade. what exactly does that mean? triple-a rate sing like having the best credit score you can have. we are able to borrow money at the lowest cost and means there's almost no chance the government will default on its debt. a double-a rate sing like having pretty good credit. thought to be more expensive to borrow, though. it means that there is an increased risk of default. let's bring in our business news correspondent felicia taylor. when we talk about this triple-a rating which we enjoyed, is it really threatened by moodies n. >> yes, it is. they put us on a -- warning a couple of months ago. this is the normal course of action. it is a serious thing to do. as you can see in the overnight markets in asia, they are trading on that idea that this idea of a short-term dash which is what the -- congress is looking at, short-term extension is not enough. i mean, we need to actually lift the limit p n time in order for america to meet its payments. if they don't, we then are not able to do that. we will default. that makes everything riskier in terms of the government and more expensive for the government to pay. that makes it more expensive for the rest of us. yields can go up on everything, including credit cards and government debt, whatever. >> i guess this is the larger conversation about not -- any kind of default. the fact is that's the ultimate issue for the people watching us at home. other than investors. that your cost of doing business could go up, cost of borrowing for your car, mortgage, all of this could go up. >> you bet. no yes about it. if we are that double-a rating dip which is very serious and people have to understand why it is so serious because if we do that, we are no longer considered one of those premier rating governments. therefore, everything gets more expensive. the government is more expensive to pay off its debt. that means it is more expensive for us as well. everything gets just ramped up a little bit more and will take longer to meet those debts. >> world markets clearly reacting to this. a lot of concern over what is going on here. how is it affecting the markets? >> there's no question the futures will be lower about this idea. investors don't want to see a short-term solution. they need to be assured that washington is going to do what it needs to do. this idea of wrangling going on and on until the 11th hour is not reassuring. uncertainty is the premier thing with what the government is going doing the markets don't like. we continue have this and it will continue to be a problem. >> we will be watching it closely. felicia taylor following this. i will tell you, surprising that the -- futures are not up as much as possible. which leads me to believe the smart money thinks that these guys know they have to get a deal done. >> it is interesting because you are saying before, you were talking about how the bond market seemed to be okay. there is a belief this was going to get resolved. i wonder if that belief is eroding as we see this drag out. >> that's exact there problem. there's this hint of uncertainty and hint of doubt. if that continues, you will see it play out more and more and more. you are right. i mean, mart money believes there's no question that we will do it. just the problem of why do we have to keep it going on and on until august 2. just do it. get it done. >> thank you. five prominent u.s. lawmakers demanding to know in newspapers in britain broke any laws in the united states. not only for alleged phone hacking and privacy violations, but those that might involve 9/11 victims and also possible violations of america's foreign corrupt practices laws. one of the lawmakers calling for the investigation is republican congressman peter king of new york. among the four democrats of new jersey, senator lautenberg. >> they have no right to break the laws. they are an american corporation. it wouldn't matter if they were selling tires or selling roofs or what have you. those are the rules, those are the laws that we have to obey. >> we are getting reports this morning scotland yards made an arrest in connection with the news corporation's phone hacking scandal. london's top cop is going to be in the hot seat today. let's bring in dan rivers. he has the latest live in london this morning. good morning, dan. >> reporter: good morning, yeah. another arrest this morning in this police inquiry. we understand that may be a former editor of "the news of the world." that's according to sky news here. he has been arrested this morning, taken into police custody. no comment from the news international themselves. the bigger picture here is there's still confusion about this request for the embamted chi chief. they are all being told to come and report to a committee here on tuesday. the deadline for them to respond is this morning. so far the committee had no response. this is pretty serious stuff. they can't force rupert and james murdoch to appear but they can force rebecca brooks to appear. if she continues to refuse to respond, issue a summons to her, they receiptcally they could send their security apparatus of the house behind me down to actually force her, you know, arrest her effectively to come along. >> all right. dan rivers for us. thanks so much. we will continue to follow this, of course, every day, new development and more troubling development. still to come this morning, high ask dry. first lost their paychecks and now there may not be any beer to help pass the time during the government shutdown in minnesota. >> that's the part -- no beer. >> big problem. a lot of beer that won't be on the shelves. the president's right-hand man on jobs. jeffrey immelt talks about how they plan to get america working again unchlgth fire under fire. >> gunfire all around us. we are rushing out of this area. with dha and essential nutrients also found in mother's milk. purina puppy chow. right now, go to priceline for a sneak peek at recent winning and better than ever! hotel bids to find where you n save up to 60% on hotels. * we'll even email you other people's winning bids, so you'll know what price to name. *á with new hotel bid alerts, from priceline. welcome backing to "american morning." all enemies of india possible suspect this morning after three bomb blasts rocked the country's largest city during rush hour yesterday. 18 people were killed. that's down from 21. and now yesterday, 131 are wounded. officials say these attacks were coordinated by terrorists. but there have been no arrests. india is denying that they were -- missed any warning signs. >> the fact the blasts took place within minutes of each other, separated by eight to ten minutes, shows that it was a coordinated terror attack. >> today's attack is the first in mumbai since the 2008 terror siege that left 164 people dead. to a cnn exclusive. a cnn crew caught in the cross fire in libya. they p ended up in the middle of a battle for a town the rebels lost and then retook in a five-hour fire fight and are lucky they made it out thereof. take a look. >> you guys! wait! [ bleep ]. >> get in there! [ bleep ]. >> wait! wait! >> get in! >> wait! >> i'm in. >> okay. calm down. [ bleep ]. >> we are leaving this area. there's gunfire all around us. and we believe that gadhafi's forces are doing april round-about movement. so we are rushing out of this area. >> wow. they are all okay. we got to witness that close call for you. do you know exactly what's happening? >> reporter: we had gone to the edge of this town and let me actually stress one point. there are no communications in this area. no cell phone system. so you -- oftentimes will go somewhere and you don't really know what you are getting into. we got to the edge of the town to a checkpoint which was manned by two boys probably in their late teens. they told us that gadhafi's forces entered that town. so our drivers went to the top of a hill to go see into the town itself. when they got to the top of the hill, they saw just about 150 yards from them two carloads of gadhafi soldiers. the shooting started soon thereafterwards. they came rushing downing the hill. we tried to jump into the car and get away. later that day, the rebels were able to retake the town and there was a lot of rocket fire and incoming mortars as well. we did spend a lot of time just sort of hunkering down as that battle went on. >> who is in control of the town now? >> reporter: at the moment the rebels are in control. they were able to take it by about 6:00, 7:00 p.m. last night. they pushed -- taken new territory. they have gotten a big close -- bit closer to this main strategic highway that links the southern part of libya with the capital tripoli. that's their goal in this area, to cut off that important supply line to sort of tighten the noose on tripoli itself. >> when you guys were in those situations, obviously have you no idea. but i mean, is it just a crap shoot whether or not you are going to find yourself in the middle of that? you guys take great pains to -- to cover this and stay safe at the same time. but seems that it is impossible at times. >> reporter: sometime it is the roll of the dice. and certainly even though it was -- hairy moments, we -- we got out and nobody was injured. nobody was hurt. and because of this lack of communication, you don't really have the ability to call ahead and find out what's going on. what you do is every checkpoint you reach, you ask, you try to get as much information as possible. but in that area it appears that the checkpoints were lightly manned at best. some had been abandoned altogether. so really is just a question of luck and fortunately luck was with us yesterday. >> yes. fortunately it was. ben, you do a lot of things. you don't normally look concerned. you looked concerned in that video. safe and sound in libya. it is 19 minutes after the hour. let's check in with rob and see how things are looking around the country. >> the heat we have been talking about past couple of days is beginning to shift farther to the west and abating and cooling down a little bit to the east. places like shreveport, oklahoma city, they had their slew of 100-plus degree days as well as texas under a heat advisory for this area. now we are building the heat up towards the north as well. watch posted. northern plains today, closer to the weekend. we expect actual high temperatures of 100 degrees or better in dallas today. it will be 95 degrees in jackson. might not even hit 90 in atlanta. cool front that's still across northeast, it is trying to get farther down to the south. and that will also be the focal point for seeing thunderstorms at least in the afternoon. and snaking its way back towards the northern plains. those are the areas we think we will see some afternoon poppers. 91 expected in memphis. 82 degrees in chicago. 83, new york city. good couple of days weather across the northeast. we don't expect any travel delays there. atlanta, minneapolis, miami, orlando, eventually seattle as well with lighter rain expect some travel delays there if you are moving. this guy is on the move. rare green sea turtle was rehabilitated in miami and released back into the biscayne area yesterday. you go, boy. there you go. it had a fishing hook caught in its mouth. the turtles were getting into the area where fishermen fished rather than the deep ocean during the oil spill. this guy was probably not related to that. nonetheless, a gorgeous looking creature who at least right now in that video thinking hey, you know, i was getting three squares a day in that pool had you me in. i don't know. >> more paparazzi photos, posing. he is okay, though. they got the hook out and he's going to be fine. >> they do a great job of rehabilitating turtles. he should be good to go. hopefully he will survive and live a happy life. >> needed an extra push. >> i'm in the water. rob, we will check in with you later. >> if you heard about this carmageddon. drivers all over los angeles are beginning to break into a cold sweat. we will tell you why they may be forced to leave their cars parked in the garage this weekend. you probably heard by now the tough talk about the president. the alleged tough talks from the president yesterday's heat debt talks. warned house leader, majority leader eric cantor don't call my bluff. that brings us to the question of the day. will that tough talk help resolve the debt debate? we want to know what you think. send us an e-mail, tweet. let us know on facebook. we will be reading your comments later. you are watching "american morning." there's another way litter box dust:e purina tidy cats. tidy cats premium line of litters now works harder on dust. and our improved formulas neutralize odors better than ever in multiple-cat homes. so it's easier to keep your house smelling just the way you want it. purina tidy cats. keep your home smelling like home. t the motorola expert from sprint. its powerful tools help you work faster and smarter so you can get back to playing "angry birds." it lets you access business forms on the go, fire off e-mails with the qwerty keypad, and work securely around the world so you can get back to playing "angry birds." it's the android-powered phone that mixes business with pleasure. so let's get our work done, america, so we can all get back to playing "angry birds." the motorola expert from sprint. trouble hearing on the phone? visit sprintrelay.com. u.s. stock futures flat in pre-market trading. surprising but investors are shifting their focus away from europe and back to washington today. that's after moody's warned if debt talks fail could it downgrade the u.s. credit rating as the debt ceiling debate continues. the dow, nasdaq and s&p 500 all snapped three-day losing streak yesterday but gains were muted after federal reserve chairman ben bernanke said the fed could be open to further stimulus. that injected more uncertainty into already uncertain markets. the fed chief heads back to capitol hill today and speaks in front of the senate banking committee. about 30 minutes after the opening bell at 10:00 a.m. eastern time. a new report says there were about 30% fewer foreclosures in the first half of this year than in the first half of last year. here is the catch p the realty track study says as many as 1 million foreclosures that should happen this year are being delayed until 2012. in reality, many more homeowners are dealing with foreclosures or might be soon. 11,000 borders employees could lose their jobs after $215 million deal with from a private equity firm fell through p np increase it is chance it is bookstore chain will need to close its 400 sthoors remain open. thirsty for a miller lite? if you live in minnesota you better stock up. shut down before miller koors brewing company could renew the brand label registration in the site. they are pulling their beers from bars and liquor stores and restaurants. "american morning" will be right back. yoo-hoo. hello. it's water from the drinking fountain at the mall. [ male announcer ] great tasting tap water can now come from any faucet anywhere. introducing the brita bottle with the filter inside. the debt talks getting down and dirty. agitated president obama getting up and abruptly ending yesterday's negotiations. the high-stakes test of wills on this "american morning." 30 minutes past the hour right now. good morning, new york. it is thursday, july 14. this is a live look outside of our studios here in new york. >> a little chilly this morning are. >> our version of chilly. our version of chilly after much of the country -- >> i wasn't sweating within three seconds walking out the door. >> welcome back to "american morning." i will tell you where they are sweating. that's in the halls of congress. they are trying to figure this thing you on. they seem just as far apart as ever. the talks pick up again today following a very tense session yesterday. president obama apparently abruptly ending that sitdown after house majority leader eric cantor continued to call for a short-term extension on the debt ceiling. something the president said he would veto all along. the president told cantor that this may bring my presidency down but i will not yield on this. >> another story. we are going to get back to the debt story for sure. another story, five u.s. lawmakers want the justice department to investigate rupert murdoch's newspapers. they want to know if he broke privacy or corruption laws here in america. >> they had no right to break the law if they are an american corporation. it wouldn't matter if they were selling tires or what have you. those are the rules. those are the laws that we have to obey. >> police in london say they arrested a man in connection with their investigation. so far all we know is the guy arrested is 60 years old and not been named and don't know what charges are against him. hunt for terrorists on full force in india after three bomb blasts rocked mumbai. it is the country's largest city. it happened during rush hour yesterday. 18 people were killed. more than 130 others were wounded. jayceee dugard's book shattered records. simon and schuster says tasz new ebook record for company. as you heard, she talks about her kidnapping in 1991 when she was just 11. her 18 years of terror at the hands of convicted sex offender philip garrido. i'm troubled by the book. it must be compelling. >> a lot of people want to know how she came through that alive and stay sane through it all. the u.s. women's soccer team advancing to the world cup final. you know what, they got to do it. another dramatic victory and beat france 3-1 in the semifinal game. they will now play japan sunday in frankfurt, germany, for the world cup title. we are going to be talking to three of the stars from the u.s. women's team coming up in a few minutes. >> let's talk about jobs. jeff immelt, ceo of ge, was called in by president obama to lead a group of business thinkers about how to deal with the jobs issue. he heads what is called the white house council on jobs and competitiveness. our poppy harlow got a chance to talk to him about what to do. >> especially the -- poor unemployment numbers we got. overall unemployment rate climbing up to 9.2%. what does he think is the answer? >> this is the man the president is putting in charge of leading the council to fix that. a lot of people are looking at him for answers. we sat down at plant that employs 3200 people down there about why you care what this man says is because he is a republican, the president and democrat. other republicans on that counsel sthal are advising the president and pushing back on the administration on some fronts especially regulation when it comes to creating jobs. we talked about the all-important debt sxreeceiling what happen it is washington can't come up with a deal to trays debt ceiling by august 2nd, what happens to jobs? how critical is that? here is what he had to say on that front. >> i would ask people don't think about ge so much. think about a small business person who really do create a lot of jobs in the country. they are petrified now. >> reporter: why what do they hear? >> what happen if the government doesn't rom over its debt? why would you invest into that? if the budget deficit means super high tax rates for them, things like that, again, that to me is the piece that is missing. there has been bad new business generations, small businesses have gotten hurt coming out of this recession, guys like us that have a global footprint and global demand, we will power through this. >> he said look, where ge is, and ge employs 60% of their workers outside the united states and shed jobs which he has been criticized for. 35,000 jobs. but look, demand is overseas. not necessarily here in the u.s. guys, we also talked about the fact that there was a chamber of commerce study that came out this week that said only 19% of businesses, 19%, planned to hire this year so what do you do? he talked about small businesses. small businesses employ more than half of americans. he said, look, we are a wealthy big company and we can get through this. you are freaking out small business 'fess you don't give them the confidence that america can pay its bills. we talked about jobs. his take on what do you do about bringing jobs back to america, not in a year, not in two years, but right now. take a listen. >> what we want to do is start with things that can be implemented. we have an eight-week cycle. our competitors have a one-week cycle. we lost half our market share and people coming into this country. that can be changed very quickly and the market share responds very quickly. and we hire more people in the travel and leisure industry. you can argue maybe that's not a sexy as one of the factory jobs or engineering jobs but it is a job. >> that's one of the things he said i asked him, you know, what if you push back on the administration on. what regulations have you said look, we need i am-to-implement this now. that's one. making it's easier for people to travel to the country and spend more money, tourism industry down 50% in this whole jobs. that was an interesting point. what really stood out to me is that he said look, companies, private companies, that are sitting on trillions of dollars in cash have a lot of money overseas and don't want were cash coming back into this country. they have no excuse now not to be hiring. people are going to watch him very closely, watch the company and see how much they bring on. but it is obvious the government initiate -- government is not going to be hiring. lit have to be these companies, big and small. >> poppy, thank you for that. >> still to come this morning, they say it is a woman's right to change her mind. first she accepted the offer. now there is a buzz that she may be backing out on her acceptance of the invitation to the marine corps ball. >> what did i tell you yesterday? >> you suspected this would happen. >> but it is not totally resolved. tough talking president. yesterday's heated debt talks. he warned house majority leader cantor don't call my bluff. brings us to our question of the day, will they cover rhetoric from the president actually help solve the debate? send us an e-mail, tweet, let us know on facebook. we will be reading some of your comments after the break. 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[ grunts ] welcome back to "american morning." president obama shutting down yesterday's debt talks when house republicans warning house majority leader eric cantor don't call my bluff, he says. after he continued to push for a short-term extension. cantor continued to push for a short-term extension to the debt limb. >> it which wouldn't solve the problem. >> markets don't like that idea. investors don't like that idea. guys, you have to settle this one way or the other. >> we want to know what you think. president obama's outburst, don't call my bluff will it help resolve the debate? here is what you are saying this morning. ronnie writes -- unfortunately the republicans aren't negotiating in good faith for the american people. obama knows this and decided he's not playing with these dirty republicans. i would have an outburst myself dealing with idiots. >> warren says on facebook, negotiations aren't over until the bill or deadline passes. politics is all about posturing and pseudo chess-like strategy. the front is always propaganda. extra points for using whilst. >> send us an e-mail, tweet. we will read more of your thoughts later in the hour. you remember marine sergeant scott moore serving in afghanistan. he mosted a video asks mila kunis to go to the marine ball with him. first she said yes and then took it back. mila has a scheduling conflict. she will be filming two movies in november and can't go. but she says she will still hang with him another time. >> do you think that's better or worse, hang with him another time, go to a movie or something like that. you don't think this is happening. you think she is not. why do you think she's not? >> i think that she probably doesn't feel comfortable going on a date with this guy she never met before. and she seemed a little pressured into it by her co-star, justin timberlake. >> now let's see what j.t. says. another marine corps post ad video asking justin timberlake to be her date to the event. she even had a facebook page for it. here is her proposal. >> so, justin, you want to call out my girl mila? i'm going to call you out and ask you to come to the marine corps ball with me in washington, d.c. if you can't go all i have to say is cry me a river. >> that was good. now justin timberlake is in a tough spot. he kept nudging mila to say -- in this discussion, to say -- >> yes to the marine. >> do it for your country. right? >> yes. he has to say yes. he can't back out now either. >> there is another reason. >> because she is a black belt. she's a mixed martial artist. here she is cage fighting. >> ow, ow. >> okay. operation octagon event. i wouldn't say no. >> you saw the six marines standing behind her as she did the youtube. we will keep you posted on this pressing story. your top stories just a couple much minutes away. hey, the new guy is loaded with protein! really? 25 grams of protein. what do we have? all four of us, together? 24. he's low fat, too, and has 5 grams of sugars. i'll believe it when i--- [ both ] oooooh... what's shakin'? 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[ major nutrition ] new ensure high protein. it's actually a connecting rod coming out to the side of the block this is a big piece of the engine block that was blown off. it's not because they ran it out of oil. they didn't change the oil. as your engine produces different particulants, you want to pick that up and take it down to the oil pan to the oil filter. so the moral of the story is, if you don't want to see your engine in a commercial with me and jim, make sure you get the works done. the works. oil change, tire rotation, $29.95 or less after rebate. only at your ford dealer. this good. this not 467 minutes past the hour. a look at your headlines this morning. today president obama and congressional leaders will sit down for a fifth straight day of debt talks. yesterday's negotiations ended on a tense note with house majority leader eric cantor saying the president shut down the discussions after he proposed a short-term deal. police in london say they arrest ad man in connection with their investigation into the phone hacking scandal that involved rupert murdoch's media empire. several members of congress are calling for a federal investigation over concerns that journalists may have targeted voice mails of 9/11 victims. india looking for suspects responsible for a triple bombing that killed 18 people in mumbai. yesterday's attack shocked three separate neighborhoods during the busy evening rush hour. more than 130 people are being treated for injuries. heat advisory is in effect for parts of texas, oklahoma, and georgia and south carolina. they still can't get a break there. forecasters are warning this weekend there will be new hotspots in sections of kansas, missouri, and arkansas. counting down to the prime time emmy nominations. they take place at 8:40 eastern time. you can see them live right here on "american morning." you are caught up the day's headlines. >> we spend six months of the year touring. >> on average. ♪ >> the things we cannot leave home without, ipods are a big one, now you have a whole world on your phone. >> twitter. >> twitter is the most amaze thing where you have like -- instant connection with your fans. >> reading david byrne's book "bicycle tires." that book is rad. it opened my eyes to spoke stuff about being a tourist, being somewhere for one day, admits you have no idea about but finding a purpose in it. >> my collection is pretty mean. it is growing. visual art. >> i buy a lot of posters on tour, print guys. our manager hates that. they get ruined and i get stressed out how to take them back on the airplane. >> thanks for spending the day with us. thanks to the venture card from capital one, we get double miles on every purchase, so me and the boys earned a trip to dc twice as fast! oh hi! we get double miles every time we use our card. and since double miles add up fast... one more chariot please. ...we can bring the whole gang! i cannot tell a lie. he did it. right... it's hard to beat double miles! read my lips -- no new axes! [ male announcer ] get the venture card from capital one, and earn double miles on every purchase, every day. go to capitalone.com. what's in your wallet? so, you're a democrat right? i know you're worried about making your savings last and having enough income when you retire. that's why i'm here -- to help come up with a plan and get you on the right path. i have more than a thousand fidelity experts working with me so that i can work one-on-one with you. it's your green line. but i'll be there every step of the way. call or come in and talk with us today. beautiful shot this morning of new york harbor. lady liberty. a nice day in new york. we are not struggling. >> you are judging that on the fact it was comfortable this morning. >> yes. we are not struggling with triple digits like a lot of other states still are. >> fortunately a lot of the country is cooling down. nothing is cooling down in washington. not temperaturewise. >> no, no. >> tension. >> lot of tension. five u.s. lawmakers demanding to know whether rupert murdoch's newspapers hacked any phones here in the united states. >> now some families of 9/11 victims are demanding the truth, too. here's brian todd. >> reporter: as he face it is investigative music in britain, critical mass builds into the look into rupert murdoch's companies into the u.s. several lawmakers are calling for investigations into whether murdoch's tabloids hacked the phones of americans. powerful senator rockefeller is leading that charge. he especially concerned over reports 9/11 victims' phones were hacked and told cnn that his bet is they will find, quote, criminal stuff. i caught up with rockefeller. >> you know the department of justice and other federal agencies will be going after this very hard. we will, too. i mean, this is -- it is -- it is really repugnant that one man can control so many. >> reporter: do you have specific information that americans that 9/11 victims had their phones hacked? >> we will find out. >> reporter: at least two relatives of 9/11 victims are joining in this call. contacted by cnn, the justice department wouldn't comment on whether an investigation has been launched. rockefeller called for the probe after victims of 9/11 were reported to have been among the targets of british papers. the daily mirror, rival of murdoch's papers, assert ad new york private investigator said he was asked by news of the word journalist to hack victims' phones but turned down the job. it is not clear if the tabloid journalist went after the phone records of american or british victims or both. murdoch's company, owner of some of the london papers the focus of the outrage is based in the united states. the outlets include "the wall street journal," "the new york post," and fox news channel. it is too early to tell if those operations will suffer legally from an investigation. what kind of public backlash could there be against rupert murdoch and entities in the u.s., do you think? even if this doesn't come to full fruition, these investigations? >> we know him through fox news, "wall street journal," new york post and tv stations he owns in 24 country. he has -- plenty of enemies in this country and this could be, i stress the could be, the moment when they get a lot more ammunition to use against him. >> reporter: we contacted news corporation to ask if they would respond to the calls for investigations. if they could shed any light on the alleged attempt to hack americans. and if they launched their own investigation. a spokesman there wouldn't comment. brian todd, cnn, washington. here's what's new this morning. rhode island cracking down on teen sexting. new law makes it a crime for a teen to send a sexually explicit photo of himself. there are tougher penalties for anyone that receive as photo of a minor and sends it to someone else we will see how that holds up and see how then force it. the son of former washington, d.c., mayor, marion barry is facing drug charges. according to documents marion christopher barry was arrested in late may when police came to his apartment to investigate a domestic incident and found pcp on a table. carmageddon is coming. 53 painful hours this weekend, los angeles shut down a stretch of northbound i-405. to demolish part after bridge. they are predicting gridlock on steroids. los angeles county telling drivers stay the heck out. jet blue, by the way, has been quick to cash in on carmageddon. the airline is getting a lot of valuable pr for offering a special deal on flights from burbank to long beach saturday. $4 each way. that doesn't include taxes. >> even with the tax and fees. >> $40. >> something like that. >> well, for an extra buck you can get a seat with extra legroom. >> you could. you see the big soldout sign. >> flights are sold out. how long did you estimate this would flight -- >> 737. it can't be a five-minute flight. >> you will spend more time taxying. >> but you will spend less time than you would on that dreaded 405. >> okay. >> all right. just when it looked like christian lopez may have been better off not catching derek jeter's 3,000th hit, two yankees sponsors are stepping up to the plate with a guarantee of at least $50,000 to help -- >> a happy ending to the story. >> that's what you meant. stepping up. i thought perhaps you were on a different story. they are offering up to $50,000 to help with student loans and any taxes. lopez received a 2009 yankees world series ring and getting his own baseball card. all is good until the irs comes calling. >> bunch of guys giving him more money. >> the point was the whole -- reason it wasn't great to catch the ball is because "the new york times" just sort of said if he has great awesome box seats, how much would he owe them? 14 grand. he's already $100,000 in debt. >> he is a student. >> wiped out. >> if ever i do something like that if i catch one of those balls, could you do me a favor and not start asking around? >> exactly. thanks. >> anyway, happy ending. we will be right back. what's this option? that's new. personal pricing now on brakes. tell us what you want to pay. we do our best to make that work. deal! my money. my choice. my meineke. tempers boil in the moss intense round of debt talks yet. the president squaring off with house majority leader eric cantor before shutting the entire heated negotiations down last night. spin wars are under way. we are live with the fiery debate on this "american morning." good morning. thursday, july 14. welcome to "american morning." i'm ali velshi. >> i'm kiran chetry. christine soft today. we have a lot going on. let's get to it. we are talking about washington and whether or not the high stakes are going to change anything. the pressure is building and tempers are flaring over the raising of the debt ceiling. they still can't get that hammered out. we are about 20 day ace way from the treasury's deadline. president obama will meet again today with congressional leaders for another round of negotiations. they abruptly ended yesterday. republicans reporting that the president stormed out of the talks. >> this morning, democratic source telling cnn that president obama shut down the meeting after house majority leader eric cantor continued to push for a short-term deal. not a permanent deal. that's something the president very clearly opposes. that's when sources say the president got agitated saying, quote, this could bring my presidency down but i will not yield on this. then he added talking to eric cantor, eric, don't call my bluff. i'm going to the american people with this. >> let's go live to dan lothian at the white house. differing accounts of what happened. cantor saying the president stormed out of that meeting. what's the white house saying? >> reporter: democrats, white house, saying that the president did not storm out of the meeting. but he was agitated because he believes cantor and other republicans are using these debt talks for political gains and, you know, what's interesting is that here we are on day five of meetings with the congressional leaders and everyone certainly expected that with -- what's at stake here, what the treasury department has been talking about, about what will happen if the debt ceiling is not raised, there would have been more progress than we have seen so far. this confrontation we are told by democratic officials familiar with the talks happened when mr. cantor suggested these series of short-term deals, this would be the reversal of position he held for several months and the president has been opposed to these short-term deals. he made that clear. also said he would veto it. a frustration inside that room and the president saying that, you know, what's happening inside in a room sort confirms the worst that americans feel about washington. >> are they getting anywhere? according to cantor -- well, look, by all accounts no significant progress here. both sides pointing the finger at each other saying that, you know, republicans, democrats, unwilling to compromise. sticking point continues to be how do you get to the revenue side of this, you know. democrats saying you have to be able to raise the taxes on wealthy americans in order to get the revenue. republicans saying no, the way to get revenue is to make the economy better and through job creation. there is some optimism that when -- at least among democrats when they return to the table today, that the tone will be much different than it was yesterday. the hope is they can make progress. >> dan, any sense that -- that they are going to do something substantially different? could that have been a breaking point? could what have happened last night be a breaking point where everybody has to come back and say all right, clearly this is not getting anywhere? >> look, as you know, sometimes in negotiations you have to be get to that point where there is a lot of frusztation where people storm out of a room if that's what happened. and then you come back to the table and say okay, we have gotten this out of our system. now let's get serious about this because i think one thing that everyone has in common here, both republicans and democrats, for the most part, they do understand that there will be a whole series of things that would negatively impact the economy and americans who are out there struggling. so -- that's one thing they have in common. there's the hope they can build from that today. yesterday they focused on $1.5 trillion in cuts. they hope to continue focusing on the cuts today. >> dan, we will follow it closely with you today. dan lothian at the white house for us. so much uncertainty over the deal. the august 2 deadline is approaching. credit rating agency moody's putting america's triple-a rating on notice for possible downgrade. we heard it. what does it mean? >> triple-a rate sing like having the best credit score. because we have it, we are able to borrow money at the lowest cost. it also means that there is almost no chance the credit agencies believe the government would default on its debt. >> double-a rating or anything lower than triple-a rate sing like having a good credit score. more expensive to bother and a that means there is an increased risk of default but has an impact on you whether or not you have that. >> let's bring in our business news correspondent, alicia taylor. we talk about that, implication of this threat being downgraded to rating we enjoyed for the beginning of time, it seems. >> since the beginning of the century. >> beginning of the century. >> 1917. >> time flies when you are having fun. what happens? >> what we heard dan loetdsian say there is no significant progress. moody's is saying and they warned news june this was possibility they would officially downgrade the united states' credit rating. what this means is that they are watching us, they are looking at the fact we are not making any progress. that's a concern. what it means is that we aren't able to clean up our own mess. they are saying to washington get it done. it is time. it has to be done. if we were to see a downgrade it makes government borrowing more expensive and makes businesses more expensive to borrow money and that means the 401(k)s, roth i.r.a.s, everything gets more hit in the sense that equity markets have a sell-off and it will be a reverberation around the world. >> that's a good way to think about it. two things happen. one is it could affect your earnings on your stocks. on the other side we talk about the government not borrowing more or making more expensivexp. if the government's cost of borrowing goes up that could affect people taking mortgages and car loans, business loans, student loans. >> it gets more expensive for everybody. if the government is spending more money because we are riskier at that point, we as a government become a riskier investment for those around the world that buy our debt. if the government gets more expensive we get more expensive in terms of whatever debt we have. it is the same thing as a credit card. if you don't pay your credit card on time, you get penalized. same thing will happen to the u.s. government. exactly the same idea on a much grander scale. everybody is watching us. why can't washington get this done? the longer it takes, the more repercussions it will have. interestingly enough, in the overnight markets, there isn't that much of a reaction. that's because nobody really believes that the u.s. government is going to actually have a default. but there is a flight to safety. gold is flirting with all-time highs. people are hedging their bets just in case this continues to play out in washington. >> all right. thank you for that. we will be talking a lot about this over the course of the in ex-two weeks. felicia taylor. now to a cnn exclusive. a cnn crew caught in the cross fire fighting in libya ended up in a middle of the town the rebels lost and regained in a five-hour fire fight. >> this team was lucky to get out thereof. take a look at what ben and his crew went through. >> you guys, wait! [ bleep ] wait! wait! wait! wait! >> wait! >> i'm in. >> okay. calm down. [ bleep ]. >> get down! >> we are leave thing area. there's gunfire all around us. and we believe that gadhafi's forces are doing -- a round-about movement. so we are rushing out of this area. >> you know, we have seen ben covering these north african unrest in various places for a long time. never seen a look like that on his face. >> no. terrifying moments. everyone is okay, thank goodness. ben joins us live from libya. as we saw in o tape a very close call. what happened that we didn't see on tape? what was going on when that happened? >> reporter: essentially what we know from our drivers that went to an adjacent hill to look down is that there were several carloads full of libyan soldiers who had just entered the area and, of course, they were the source of that gunfire. the rebel forces in that area had more or less disappeared. there were two or three young men maybe in their late teens with machine guns in the area. we don't know what happened to them after we left. and this was, of course, the beginning of a long battle around the town which that morning had been taken by libyan forces. and it was just later in the afternoon that many sort of hundreds of fighters from this town arrived and they had this battle involving are mortars, rockets, and a lot of small arms fire. they managed to retake the town and they are now further on the way on the road that leads to this strategic highway that leads southern libya with tripoli. >> ben, this has fallen off some people's radar. how sit that the rebels are able to could that, particularly in west libya? how is it the rebels are making these advances? >> reporter: there has been an ongoing battle in this part of the country now for three, four months. what they started off was -- really fighting gadhafi's forces with hunting rifles and things like that and gradually they have been able to capture more and more weapons from the enemy. they have taken over several arms depots so they have handful of tanks, armored personnel carriers. and they are moving ahead. unlike other parts of libya, they are gaining ground but it is very slow and painful. comes at a high cost. yesterday that battle, eight rebel fighters were killed, more than 30 were wounded. but they have by dogged determination managed to gain this ground and they are defending their homes. and so any time word comes -- goes out and of course, cell phones don't work in this area. but they hear that gadhafi's forces are moving in their direction. really byword of mouth, people go back and tell their friends let's go to the front, grab your weapons, and we need to push them back. that's essentially what happened in this area yesterday. >> sounds like stories you read about the american civil war. and how that happened, people would call up and say let's get involved in this particular push. hey, ben, we are glad you and your crew are safe because you brought us such good reporting on this and plus we like you anyway. continued good wishes to your crowd and stay out of as much danger as possible. >> ben, thanks so much. still to come this morning, it is a pill that could make a.i.d.s. disappear in a few generations. doctors talking about a major breakthrough in the fight against hiv and a.i.d.s. we are going to go live to london to get the latest developments. >> the debt talks rocking tempers, making ultimatums and no deal in sight. lawmakers come together before this august 2 deadline? we are going to ask republican jim jordan. you are watching "american morning." chronologically i'm sixty years old. is it the new forty, i don't know. i probably feel about thirty. how is it that we don't act our age? 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[ laughter ] [ shapiro ] we created legalzoom to help you take care of the ones you love. go to legalzoom.com today and complete your will in minutes. at legalzoom.com we put the law on your side. 14 minutes past the hour. welcome back to "american morning." did news corp reporters in britain break any privacy or corruption laws in the united states? five u.s. lawmakers want find out and are calling on the justice department to investigate reporter tactics at rupert murdoch pop for possible violations of foreign corruption laws. here are the lawmakers leading the charge. peter king of new york. among the four democrats, new jersey senator frank lautenberg. >> they have no right to break the law if they are an american corporation. and it wouldn't matter if they were selling tires or what have you. those are the rules, those are the laws that and we have to obey them. >> right now we are getting reports scotland yards made an arrest in connection with the phone hacking scandal. the top police officer will be in the hot seat today. dan rivers is in london and is following it for us. what's the implication of the new development? who have they arrested? >> reporter: i think it just builds the picture of this police investigation. sort of closing in on anyone. they think knew about the phone hack even if they were associated with the paper, seven, eight years ago. as this -- we understand has been arrested was. there has been other important developments in the last few minutes as well. and -- the three main figures at the center of all of this, rupert murdoch. his son james murdoch. rebecca brooks, chief executive. they were asked to come and appear before a committee here at the house of commons. now, we have been told the last few minutes rebecca will attend but rupert murdoch will not. james murdoch has said he can't attend on the date they asked him but could attend at a later point in august. and now as a result of that, that committee has issued a summons for rupert murdoch and james murdoch trying to force them to turn up on tuesday. they can't really do much about the fact that they don't want to come. both of those individuals are american. therefore, they have no real power to compel them to turn up. it is a real escalation in this. the fact that they dispatched, as they say, the sergeant at arms, deputy sergeant at arms, which is the security apparatus of the house of commons. to go and deliver this summons to the murdoches saying look, you have to come and you must come and explain yourself before this committee. it is -- pretty sensational turn of events. >> dan, we will continue to watch it. seems to be new developments in this every few hours. dan rivers for news london. still to come, a special treat on "american morning." u.s. women's soccer team punching its ticket to the world cup final with a victory over france. our resident soccer guru took in a match with some of the team usa faithful here at home. we are going to talk about soccer. we haven't seen this much excitement since they won in 1999. >> it will be good. final is on sunday. dustup during debt limit negotiations. president obama warmed eric cantor don't call my bluff. that brings us to our question of the day. has this heated-up rhetoric done anything to help solve the debt debate? we want to know what you think. send us an e-mail, tweet. we are reading your comments throughout the show. t the motorola expert from sprint. its powerful tools help you work faster and smarter so you can get back to playing "angry birds." it lets you access business forms on the go, fire off e-mails with the qwerty keypad, and work securely around the world so you can get back to playing "angry birds." it's the android-powered phone that mixes business with pleasure. so let's get our work done, america, so we can all get back to playing "angry birds." the motorola expert from sprint. trouble hearing on the phone? visit sprintrelay.com. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. i never really thought i would make money doing what i love. [ shapiro ] we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side. it's schwab at your fingertips wherever, whenever you want. one log in lets you monitor all of your balances and transfer between accounts, so your money can move as fast as you do. check out your portfolio, track the market with live updates. and execute trades anywhere and anytime the inspiration hits you. even deposit checks right from your phone. just take a picture, hit deposit and you're done. open an account today and put schwab mobile to work for you. investors shifting their focus away from europe and back to washington today. that's after moody's warned that if debt talks fail in the u.s. it could downgrade the u.s.' credit rating from perfect to less than perfect. u.s. stock futures are trading flat on that news. the dow and nasdaq and s&p 500 all snapped the three-day losing streak yesterday but gains were muted after federal reserve chairman ben bernanke said the fed could be open to providing further stimulus into the economy. that injected more uncertainty into already uncertain markets. and the fed chief heads back to capitol hill today. he speaks in front of the senate banking committee about 30 minutes after the opening bell. that's 10:00 a.m. eastern time. there were about 30% fewer foreclosures in the first half of this year than the first half of last year. here's the catch. realty track study says that as many as a million foreclosures that should happen this year are being pushed back. they are being delayed until 2012. in reality many more homeowners are dealing with foreclosures or might be soon. this just in. oil giant con company phillips is splitting up. the company announced it is pursuing plans to separate into two separate companies. one is focused on oil exploration and the other on refining and marketing. both of them will be publicly traded. thirsty for miller lite and live in minnesota, stock up. the state government shutdown came before miller coors brewing company could review its brand label registration in the state. the company is being forced to pull hits brands from restaurants, bars, and liquor stores. for the latest news about your money, check out the all-new cnn money.com. 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[ major nutrition ] new ensure high protein. ensure! nutrition in charge! ♪ [ cat meows ] ♪ [ whistles ] ♪ [ cat meows ] ♪ [ ting! ] [ male announcer ] travelers can help you protect the things you care about and save money with multi-policy discounts. are you getting the coverage you need and the discounts you deserve? for an agent or quote, call 800-my-coverage or visit travelers.com. when an investment lacks discipline, it's never this obvious. introducing investment discipline etfs from russell. visit russelletfs.com r a prospectus, containing the investment objectives, risks, charges, expenses and other information. read and consider it carefully before investing. we inspect your air filter, cabin filter. there's bugs, leaves, lint, crud. you'll be breathing that. i do believe it's part of a locust. make sure your alignments good. your brakes are good. you've got all sorts different things that you check off. your fluid levels. pretty much everything you could need. it gets done. it gets done quickly. and it gets done correctly. the works fuel saver package, just $29.95 or less after rebate. only at your ford dealer. you're a doctor. you're a car doctor. maybe a car doctor. what did i tell you, came out this morning -- >> you said it was downright cold. >> i could have used a jacket, vest. >> you could have used a second vest. you can remove at least one of your vests later. it is going up to a high of 83 here in the city. actually will feel great for july a july day. there's still many parts of the south, places that are dealing with triple digit heat for what's been going on for ten days in someplace. >> when do i remove the first vest the one underneath it, is going to say usa in honor of the u.s. women's soccer team. big splash for them. big win. >> 3-1. there were concerns would they be tired after their big long game against brazil. but no. scored another dramatic victory. this time over france in the world cup semifinals and advance to the championship match. they are going to be play bring japan sunday afternoon in frankfurt, germany. u.s. women have never lost to japan. so what did you say before? they had a really good record when it came to beating france. >> richard roth. >> asleep in the studio here. >> resident expert on all things from the united nations to world cup soccer. >> anything international. except certain food delicacies. what did i say? i thought they were going to lose. even though i was forced to make a prediction on the air from one of our sister channels. >> we didn't do that to you. >> i said the u.s. would win, 1-0. they had a struggle but suffering -- that's what i said yesterday. essence of soccer. i happen to be talking to some fans at the moment that the key goal, when the -- the tie. >> coincidental. >> you never get that look. usually you are lucky if the camera is on fans when the goal is scored for that moment of eruption. let's take a look as i watched in the australian bar in manhattan. what's your reaction if -- it is a goal. it is a u.s. goal. >> america! >> usa! usa! usa! >> there was also a french man in the crowd who wasn't as happy. he was a little giddy because really france had the u.s. on the ropes and then it was abby the captain, the header at the far post. then we also have video of the fans watching the third goal. two goals came and about 14 minutes left, it could have gone either way again. that's the actual goal. we are not allowed to show the goals actually when people are watching. you can't show the monitors. the magic world of million dollar contracts. after all of the goals i did ask the fans their reaction to the u.s. win. >> i out in it was ain't credible match. the u.s. seemed a little bit nervous. they are here and ready to play. it is time for a victory. >> i think everyone is expecting germany to win. when they crumbled under the apprecia pressure, they said u.s. has heart. >> it is going to be in frankfurt. >> on sunday excite. >> do you want to make a prediction here or wait for the other -- >> i will wait. i will wait until the morning of the match. >> if you were a bookmaker dash. >> u.s. is favored. china in 1999. these games could go either way. the goalie made almost a major bobble. gave the ball back. a french shot that hit the post. >> you talk a lot about whether or not soccer -- why it is so popular around the world and here it doesn't catch on as much. after 1999, that women's team winning, i mean, mia hamm, brandi chastain, they were heroes. they inspired a lot of young girls to get into soccer. >> women's professional league failed. i don't think there is a team in the new york market here. western new york. it is always that four-year cycle. because the demographics, because of events like this, it is a slow process. maybe 40 years they will do be doing why is baseball so popular. >> what do you remember most about the winning gold in 1999? >> i remember when brandi chastain ripped off her jersey, spun it around, threw it and went like this. you know. >> you wanted you to recount the story. >> we are going to be talking to some members of the team later on. >> i love this. hope solo, the -- incredible goalie. she's trending on twitter. the hash tag mary me hope solo was one of the trends on twitter yesterday. >> she said she doesn't mind if it is her appearance, whatever it takes to gets fans on the bandwagon. what do you remember most about the 1999 world cup? >> the part where -- >> is this the end of the -- >> we are in a struggle with the producers whether to bring it on or not. >> i did a good vuvuzella. >> tweet me if you don't. >> tweet me if you want ali to re-enact brandi chastain. >> with my vest. >> go back to sleep now under the desk. it was his joke. all right. 31 minutes past the hour right now. five u.s. lawmakers are asking the justice department to investigate news corp. then want to know if rupert murdoch's reporters broke any american laws. not only for alleged phone hacking and privacy violations that may involve 9/11 victims but also for possible violations of what's known as american foreign corrupted practices law. >> attention over the debt ceiling are red hot. president obama and congressional leaders resume talks this afternoon. yesterday the president abruptly ended negotiations after house majority leader eric cantor continued to call for a short-term extension on the debt ceiling. something he said he would veto all along the stakes could not be higher. moody's is putting the triple-a credit rating on review. the credit rating agency said it is worried congress will not raise the nation's debt ceiling before the country defaults on some interest payments. >> with no debt deal in sight, the only solution may be for both sides to bite the bullet and come up with a solution that no one likes. but are they prepared to do it? joining me now live from capitol hill is republican congressman jim jordan. chairman of the republican study committee. he also wrote an op-ed in yesterday's "usa today" calling for a balanced budget amendment to the constitution. representative jordan, good to see you. thank you for being here. >> good to be with you this morning. >> handicap this for me. you have been hearing the same news we have been hearing about a hostile end to the fourth day of talks yesterday. we have a fifth day of talks scheduled today starting this afternoon. is it as bad as it sounded? >> probably. i mean, no one knows where this is going to wind up. what i do know is if we don't do some bold dramatic things, this country is headed for a greek style debt crisis in the next two to thee years. virtually consensus now exists among if that's where we are headed. we are advocating that take this rare opportunity to fundamentally clang things and for the first time in american history require a balanced budget amendment to the constitution and get it passed the house and senate and get it out to the states for ratification. fundamentally clang things. >> let's talk about that in a minute. i have to tell you, i am the chief business correspondent when you say things like there is a consent amongst economists headed towards a greek style situation. there really is. but i get your point. it is serious. let's just talk -- >> very serious. david walker says it. >> we are actually on the same page. there are a lot of reasons we are not in greece. let's talk about august 3. there's a lot of discussion what happen it is we don't raise the debt ceiling. i want to put this to you. this comes from the bipartisan policy center that this government because it runs in debt doesn't have a lot of extra pocket change. on august 3, money comes in is about $12 billion. the social security payments alone do that day are $23 billion as a total of $32 billion due that day. are you okay with being in that position? whether or not you completely agree with that math, are you comfortable with being in that position? >> look, is there going to be political -- some uncomfort politically speaking? certainly there will be that. is it a default? no. there will be enough money to meet the debt holders. there have to be priorities and decisions made. again, keep your eye on the ball. the ball is the bug problem that's coming. again, everyone knows we are headed for real problems. can you not sustain this. while i don't want a problem to come on august 3rd, ideally we get the right things put in place to -- so we don't have a problem august 3 and we make sure we don't have a big problem coming in two, three years. i would rather have a problem now rather than risk putting -- >> what do you think about mitch mcconnell's suggestion that would allow the president to raise the debt ceiling in installments without attaching it to the spending cuts that you and your fellow conservative republicans want? >> i think in many ways that punts the ball and we -- we have given -- give all the authority to the president. i just don't like the senate minority leader's plan. i think most americans don't like it. what's wrong with saying we need to cut spending and cap it as the percentage of gdp going forward and let's use this opportunity to -- leverage we have to get a balanced budget amendment. the one entity that doesn't have a balanced budget requirement is the one -- the one that has the $14 trillion debt. everyone else has to do that. >> i want the viewers to understand what we are talking about here. most all zats have a balanced budget amendment. it can issue bonds and it can borrow money. what do you want -- when you say up want a balanced budget amendment, this is a constitutional amendment. this is not just a deal you can get out of the president. what sit you are looking for? some we want balanced budget amendment passed through the house and senate. obviously it will take 38 states to ratify and we think that will happen and think the fact there's conservatives all over this country that sent us here to do these things, they are going to go out and work the state legislatures and get it passed in the state. it will take time but never happened in american history where it passed both the house. it is always interesting and requires a supermajority vote in both bodies. there always seems to be 66 votes in the senate. they never quite get the 67th vote. let's use this opportunity to say no, now we need to pass this and send it to the states and fundamentally change things. >> i have 30 seconds and i want to show you a poll, gallup poll, that says most republicans are okay with some tax -- 68% said they are okay with some tax increases. 26% of republicans say they only want spending cuts. what do you think? >> well, i mean, look, we want our economy to grow. you don't tax the job creators and small business owners out there. we are not going to raise taxes. that's just a nonstarter with republicans. we think -- we think it hurts economic growth. >> even the polls showing a lot of republicans would be okay with some, some -- >> yes. >> that might mean some tax increases, closing loopholes, eliminating credit. >> we are not going to raise taxes. we think that hurts the economy. >> jim jordan, thanks very much for coming out and talking to us. jim jordan, chairman of the republican study committee which is a group of republicans, conservative republicans, in the house. we want to know what you think the house majority leader, eric cantor, part of that group of -- discussing these things at the white house says that president obama yesterday afternoon warned him to, quote, not to call his bluff. the president then said that there was too much posturing and positioning. and he then stood up and abruptly left the meeting saying enough is enough. >> will it help solve the debt debate? the president getting tough. e-mail us. give us a tweet and tellous facebook. we will be reading through some of your comments in a couple of minutes. also later today, lawmakers on -- >> they are going to come out swinging. today is the 50th annual congressional baseball game at the nationals park. now republicans lead the all-time series, 38-34. democrats have won the past two games. all of the money raised today goes to charity. bat out their frustrations and not take them out on each other. >> female marine is firing off her own shot in the dark inviting superstar justin timberlake to the marine corps ball. do the right thing, justin. jeanne moos is all over this story. goodnight, stuffy. goodnight, outdated. goodnight old luxury and all of your wares. goodnight bygones everywhere. 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[ male announcer ] the audi a8, chosen by car & driver as the best luxury sedan in a recent comparison test. handle more than 165 billion letters and packages a year. that's about 34 million pounds of mail every day. ever wonder what this costs you as a taxpayer? millions? tens of millions? hundreds of millions? not a single cent. the united states postal service doesn't run on your tax dollars. it's funded solely by stamps and postage. brought to you by the men and women of the american postal worker's union. you should be working this story. >> why? >> you are so negative about it i'm negative about it because i didn't believe mila kunis would take up this marine on his offer. i believe in love i just don't know if this was love. one marine has started a trend on the web when he asked mila kunis on a youtube posting if she would go to the marine ball with her. first she said yes and then she said actually i have other plans. >> another marine followed in that one's footsteps a. here is jeanne moos. >> reporter: the female marine is asking justin timberlake out on a date hoping to take his own advice. >> do it for your country. >> reporter: that's what timberlake told his co-star after a male marine tilted his shades and asked mila out via youtube. >> what? >> i just want to take a moment out of my day to invite to you the marine corps ball on november 18 in green i will have, north carolina, with yours truly. take a second and get back to me. >> reporter: the last time kunis was asked out on a semi blind date is when wolf blitzer invited her to the white house correspondents dinner. wolf is more famous than sergeant scott moore the sergeant had justin timberlake on his side during a fox news interview. >> this needs to happen. >> okay. >> do it for your country. >> i will do it for you. >> yeah, well, you do it for your country, justin timberlake. because now this marine wants you. >> justin, you want to call out my girl mila? i'm going to call you out and ask you to come to the marine corps ball with me on november 12 in washington, d.c. >> reporter: the corporal is the only female marine in the martial arts for excellence in quantico. she is an inspector with a black belt and sometimes does cage fights. she got the idea to invite him to the marine corps ball after seeing him so enthusiastically tell mila kunis to go, her friends set up a facebook page called let's get justin timberlake to the marine corps ball with kelsey complete with an array of photos so impressive, well, how could timberlake tell her to go jump in a lake or even a river? >> if you can't go, all i have to say is cry me a river. >> reporter: hey, the corporal has a tattoo, too. tees just the one we can see. when we asked the friend who helped set up the facebook page, she said oh, yeah, for sure, this marine isn't looking for a few good men, just one. >> do it for your country. >> reporter: jeanne moos, cnn, new york. >> upping the ante. what's your prediction? is he going to go? >> i believe in love. >> this isn't love. they want to go to dance together. is he going to say yes? >> i don't know. no expert on these things. just report them. >> all right. switching gears now. scientists reporting a breakthrough in hiv prevention. if you take a bill daily, it may keep an uninfected person from catching hiv. this could be huge in places where the spread of hiv is rampant. we are talking to one of the study's doctors just ahead. it moves effortlessly, breathes easily. it flows with clean water. it makes its skyline greener and its population healthier. all to become the kind of city people want to live and work in. somewhere in america, we've already answered some of the nation's toughest questions. and the over sixty thousand people of siemens are ready to do it again. siemens. answers. you know, the ones who do such a super job, they're backed by the superguarantee®? only superpages®. wherever you are, wherever you're going, you'll find the super business you need. so next time, let the good guys save the day. get the superguarantee®, only at superpages®. in the book ... on your phone or online. 47 minutes after the hour. here are your morning headlines. several u.s. lawmakers asking the justice department to investigate news corp. rupert murdoch's reporters allegedly hacked the phones of 9/11 victims and bribed law enforcement officials and correct me if i am wrongal leaders want to find out if american laws were broken. today president obama and congressional leaders will sit down for a fifth straight day of talks. yesterday's negotiations ended on a tense note when house majority leader cantor saying the president shut down discussions after he proposed a short-term deal. because of the lack of progress when it comes to raising the debt ceiling the credit rating agency moody's put it on review for downgrade. u.s. futures are trading flat. stock markets closing lower on that news. r. kelly having trouble paying his bills. foreclosure filing has been issued for his $2.9 million home outside of chicago. we are counting down to the prime time emmy nomination hosted by joshua jackson and melissa a mccarthy. they take place an hour from now. you can see them live right here on "american morning." "american morning" is back after the break. 50 minutes past the hour. one pill that has the potential to prevent a.i.d.s. two studies in africa shows kit reduce the transmission of hiv by three-quarters, 75%, among heterosexual couples. joining us with more on the breakthrough is the director of the cdc's division of hiv-aids and prevention. thanks for being with us this morning. >> great to be here on here on . >> just tell us in a nutshell how this treatment is used. you're talking about medication already given to people who have a diagnosis of hiv, correct? >> yes. after 30 years of the worst pandemic of our time, we now have encouraging news where taking drugs that are normally used to treating hem with hiv can now help people avoid getting hiv. and that is good reason for people to wake up this morning with a bit more hope than they did yesterday. i should say that it's not time for people to throw away their condoms and good judgment. a 60% to 70% reduction in acquisition was found in these studies is important, but no single intervention will stop the hiv epidemic. >> first of all, you have to get people to be willing to take medication when they don't have a diagnosis. how does that work? how would this program be implemented? >> well, it's important for us to determine when, how, and among whom these drugs would be most effective. we have to look at the currently available data and develop guidance for practitioners when they are at high risk for infection. tens of thousands of heterosexual couples in the united states where one person has hiv and the other doesn't. not transmitting hiv to the negative spouse is a concern for these people. >> you say this is good news for women. why is that? >> most of the current methods for reducing the chance that one would get hiv like condoms require male involvement and taking a pill doesn't. so this is one of the few methods that we have that are women centered. >> you say you don't have to rely on your partner to use a cond condom, you are able to control that by yourself by what you're taking? >> yes. >> is it costly? these hiv/aids medications are not cheap. and what about side effects? >> hiv drugs are expensive. in the united states this pill costs about $6,000 per year. and determining ways to reduce the cost will increase access to this potentially life-saving intervention. however, the lifetime treatment cost for a person with hiv is almost $400,000. so most effective prevention is either cost effective or cost saving. >> just to give people a perspective. around 33 million people worldwide are living with hiv right now. the majority of the cases are in africa and in asian countries. a lot of people are wondering does this breakthrough in prevention put us on the path perhaps to a vaccine that could be easier to distribute to people around the world? >> it's helpful to the pipeline of interventions we currently have. in addition to condoms and avoiding sex that has a chance of transmitting hiv, we now have treatment both for people with hiv and people who don't have hiv to help them avoid getting the virus. currently, no vaccine available that is highly effective and safe and no cure for hiv available to people in the united states or the rest of the world. but this is a step in right direction for turning the tide on the hiv epidemic. >> one other question for you. the cdc study and washington study focused on heterosexual couples. for gay or bisexual companies 53% of hiv infections in the united states. would this treatment work for them as well? >> yes, it would. in fact, a study presented earlier this year among guy and bisexual man that showed a reduction and cdc helped interim guidance to help guy and bisexual men who make up a little over half of hiv in the nation and many of whom would have a high risk. cdc's purpose is to help all americans live longer and healthier lives and this is one step in that direction, a new hiv prevention tool. >> certainly promising news. thanks for joining us. dr. jonathan merman, appreciate it. >> my pleasure to be on the show. to our question of the day. president obama stormed out of a meeting warning eric cantor, quote, this is what he said he told him, eric, don't call my bluff. we want to know is this tough stance by the president saying that he is going to be uncompromising at this point, are they going to help solve the debt debate? jeff says i think we should fire all of them. i think they forget sometimes they work for us. >> shelley says, no shame on us. the last few days have been surreal. what is wrong with him? scaring seniors and now this. there is a a lot of frustration. most of our e-mailers blaming republicans and a couple blaming both sides and the president as well. people are angry the fact this is continuing to drag on and there doesn't seem to be any room for compromise. >> 20 days to go of people getting angry remember. top stories after the break. alw, ever since i was fourteen. i could not make working and going to school work. it was not until the university of phoenix that i was able to work full-time, be a mom, and go to school. the opportunities that i had at the university of phoenix, dealing with professionals teaching things that they were doing every day, got me to where i am today. i'm mayor cherie wood, i'm responsible for the largest urban renewal project in utah, and i am a phoenix. 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[ female announcer ] tell the politicians: cut waste and loopholes, not our benefits. ♪ ♪ i'm back in the saddle again ♪ ♪ out where a friend is a friend ♪ [ gulps ] ♪ where the longhorn cattle feed ♪ ♪ on the lowly gypsum weed ♪ back in the saddle again see how affordable an rv vacation can be. visit gorving.com and watch a free video. go affordably. go rving. good morning. ominous new warning as tengs flare during debt talks. i'm kiran chetry. the credit rating agency moodys putting america's top-notch credit rating on notice and tell you what it means for your money. under fire in libya. i'm ali velshi. the most riveting video you will see guaranteed. owner own ben wedeman and his crew caught in the middle of a tense fight for a town in libya. foot on the pedal and fear on their faces. all that on this "american morning." good morning to you. thanks for being with us on this thursday. it is july 14th. i'm kiran chetry. ali velshi is with me. christine is taking a well-deserved vacation. >> she is missing a lot of news. this is going to affect you. the federal government's credit rating is on notice. moodys investor service, one of the credit rating agencies, is moving closer to a unprecedented downgrade of the u.s.' debt. president obama abruptly walking out of a key meeting with republicans late yesterday. >> let's bring from right no our business news corinth felicia taylor. when we talk about the aa credit rating it means we can borrow cheaper and it's helpful not only for the government but for businesses and individuals. what does this mean if they go through with this threat? >> if we were to downgrade borrowing gets more expensive for government and small businesses. it has a trickle down effect to basically everybody. think about it like your credit card. if you don't pay your credit card on time, fees go up, you get a penalty charge. exactly the same thing is going to happen to individuals and small businesses as well as the government. so this is a very serious threat. keep in mind, nobody actually believes that the government is going to have this -- miss this deadline august 2nd but any time between now and august 2nd, moodys or any of the other rating services could put this official notice as a downgrade. >> you were saying earlier, the idea that gold is hitting new records means somebody is worried that it could happen. they are thinking about not having their money in stocks. >> they are hedging their bets. if this were to happen, you're going to see people raising cash in the equities market and read that as a sellout. that means roth iras, pension funds and any investments people have will see a vast sell jaw in the equities market. this is serious. people need to pay attention. this wrangling in washington is not to be overlooked. they need to get their act together. this is a warning sign from any ratings agency that enough is enough! there is a deal on the table. they need to agree on it and get this moving forward. >> one thing we talk about is that markets don't like uncertainty. and we have seen markets hold throughout some of this debate. could that be changing? >> absolutely. this is the big looming, you know, gorilla in the room that if this doesn't happen soon, certainly there is going ton to be uncertainty in the marketplace. today, look. the markets are a little fickle in the sense that they have a short-term memory. >> sure. >> looking at other things. the markets are looking for an upward open but because we have an earnings season right now. jpmorgan chase came in better than expected. the markets are looking at other things with you doesn't mean we wouldn't pay attention in days to come. we have put ourselves in the same category as italy, spain, portugal other euro zones facing the same kind of pressure. >> you work in international business a lot. we don't know -- we are talking about stocks and equities and things like that. what happened after lehman brothers collapsed was a freeze of the debt market. a freeze of the ability to get credit. that is almost more serious than whether stock markets are going up and down? >> well, no question about it. we're not talking about that kind of a situation here. i mean, that was a much more catastrophic idea than what is happening here. >> right. >> again, i want to emphasize the fact that nobody really believes that the united states is going to miss this deadline. however, it puts that uncertainty back into the conversation. >> right. >> that people can't seem to get it together quick enough to agree on something. >> right. >> that is sustainable and that is a problem. because with that kind of uncertainty means that everything trickles down again. >> yep. >> it elongates the conversation. >> right. maybe come to an agreement the collateral damage in the meantime may be significant? >> sure. looking at a government with no sustainable footing. watched the president get upset and walk out of discussions yesterday. not a good sign for anybody. >> they have a few more days to get it together. president seems to think we have about a week to get this done. we are having this conversation, if we are next friday. >> it's a problem. >> well, the other big thing out there is the concern for people that they aren't going to get their government paychecks. social security isn't going to get paid and a major fear for anybody out there expecting those payments to come on august 3rd. >> to pay their rent or mortgage. >> those things will default. >> thanks so much for this. >> debt talks we have been talking about going on now. the president has said to have gotten agitated after house majority leader eric cantor continued to push for a storm deal yesterday. >> something the president said he is not going to do. according to eric cantor when he did this the president said to him, eric, don't call my bluff. i'm going to the american people to this -- with this. then he added, quote, this could bring my presidency down but i will not yield on this. dan lothian is at the white house. dan, negotiations ended with a bang. little unclear who said what. the democrats seem to be downplaying the seriousness of the president walking out of the room. bottom line, they have to meet again this afternoon. what goes on before that meeting? are they all going to decide to play nice and get something like that done. >> reporter: the hope is to get something done. the fifth meeting in a row and still no real progress. but, you know, the thing is that there is this talk yesterday from mr. cantor about these short-term deals and that is something the president has been opposed to and said, according to democratic officials familiar with the talks, that this is something he would veto. the reason the president doesn't like this is because, first of all, he believes that a long-term big deal through at least 2012 elections will essentially be the most healthy thing for the overall u.s. economy. the best long-term deal for the u.s. economy. and, secondly, the president believes that if you have to then deal again with this in the throes of the political season, how in the world are you going to get anything done? i mean, if you have a difficult time getting it done now, how will you be able to get anything done a few months down the road? the president believes pointing the fingers at republicans saying they are using this whole debt talk for political gain. >> dan lothian for us at the white house this morning, thanks so much. will the president's tough stance help resolve the debt debate? e-mail us, give us a tweet, tell us on facebook and we will read through some of them later in the show. cnn crew ended up in a middle of a battle for a town the rebels just lost and retook in a 5:00-hour firefight and lucky they got out of there as they did. take a quick look. >> get in the car, harry. >> you guys! wait! [ bleep ] [ bleep ]. >> get in there. >> wait! wait, wait, wait! >> wait! wait! >> are you in? >> yeah, i'm in. okay, just calm down. we're cool. [ bleep ]. >> get down! >> reporter: we're leaving this area because there is gunfire all around us. we believe that gadhafi forces are doing a round-about movement. so we are rushing out of this area. >> they are all okay. ben says the rebels are advancing this morning but it came at a cost. eight rebel fighters were killed and over 30 wounded in those fightings. syrian forces reportedly storming a protest in the capital staged by some of the well-known people in the country. actors and actresses and famous writers and inteckllectuals calling for an end to the security crackdown and release of detainees. reports say a famous female actress and many activists were among those detained after that. all enemies of india are possible suspects after three bomb blasts rock mumbai. 18 people were killed. the number by the way, has been revised down from the 21 that were announced yesterday. 131 wounded. officials say these attacks were coordinated by terrorists but no arrests. india is denying they missed any warning signs of this attack. how to search travelers for explosives. republican congressman jason shave it's argued that canines are less invasive than body scanners. >> you're suggesting the body scanning machines are cheaper than using the canines? i would love to do this! i would love to do this! you take a thousand people and put them in a room, i'll give you ten whole bodying machines and you give me 5,000 people in another room and give me one of those dogs and we will find that bomb about before you find your bomb. i think the challenge is we got to increase the security. we have to become more secure. but we can't give up every civil liberty. we shouldn't be looking at every passenger naked in order to secure the airplane. you don't see that in kandahar but you see dog teams. their lives are on the line every day. that's what we should be doing. >> now the tsa is saying that the dogs have their limitations. that they require frequent breaks and that they are costly. and an official saying one dog can cost hundreds of thousands of dollars. out of london, scotland yard confirms the rest of 60-year-old man in connection with the news corp phone hacking case. his identity has not been released. this marks the seventh arrest in britain since the scandal broke. five members of congress calling on the justice department to investigate murdoch' reporters and find if any u.s. laws were broken when they reportedly hacked the phones of 9/11 victims. murdoch's publications accused of bribing police for information. a possible violation of u.s. foreign corruption laws. 20 minutes we will joined by iowa congressman bruce braley. he was asking to launch an investigation into news corp reporting practices and whether they broke any u.s. laws. a final memorial service is held this morning in grand rapids, michigan, for former first lady betty ford who died friday at the age of 93. a plane carrying her casket from california landed yesterday in an airport named after her husband gerald r. ford international. you're looking at a live picture this morning of the morning service. mrs. ford's funeral is scheduled for 2:00 eastern this afternoon. she will be buried alongside of her husband, america's 38th president, gerald ford. still ahead, call it carmageddon. why it could come to a still tarch. texting in rhode island. what is the penalty and which part of the sexting can you get in trouble for? >> karma wins. handing over the home run ball that derek jeter hit for his 3,000th. is now paying off. his other big rewards is coming up next. 11 minutes after the hour. with diabetes, it's tough to keep life balanced. i don't always have time to eat like i should. that's why i like glucerna shakes. they have slowly digestible carbs to help minimize blood sugar spikes, which can help lower a1c. 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[ male announcer ] glucerna. got the mirrors all adjusted? you can see everything ok? just stay off the freeways, all right? i don't want you going out on those yet. and leave your phone in your purse, i don't want you texting. >> daddy... ok! ok, here you go. be careful. >> thanks dad. >> and call me--but not while you're driving. we knew this day was coming. that's why we bought a subaru. want to take you for a drive ♪ 5:00 in the morning. 5:14 actually in l.a.x. later, sunshine and 76. >> perfect to live in l.a., right? >> my buddy out there said it was triple digits last week, but things are back to normal and nice and beautiful. >> it won't really matter. >> it will because it doesn't matter how nice the weather is, the traffic is going to be a mess. on edge in southern california because of carmageddon. for 53 hours this weekend a ten-mile stretch of i-405 will be shut down because of a bridge demolition project and everybody is predicting unprecedented gridlock because of this. the l.a. count supervisor telling motorist, quote, stay the heck out. thousands of californians will be forced to endure two entire days without their precious cars. >> not my car! >> you know how much they love their cars. >> jetblue is cashing in on the carmagedd carmageddon. offering special flights from burbank to long beach this saturday or vice versa. >> i wish we had a map. >> they are on either side of l.a. $4 not including taxes and fees. for an extra buck you get a seat with extra leg room. can you see on the screen they are all sold out. jetblue flies 737s and big planes that go several miles per hour. this has to be a short flight. longer to check in and get in there and taxi out. the bottom line such gridlock even when parts of the 405 is not closed that if you need to get from the south side to the north side. >> you have to pay for parking and go through the whole rig a ma roll. >> stay home! >> you can make it. 53 hours. rob marciano has more on this. would you take one of those flights? >> four bucks, why not? you have to have a friend on the other side i. your motto, i have a friend on the other side. >> exactly. leave it a at that. hopefully, more than one. heat continues to wane. the good news across the northeast and the northeast which has fairly comfortable weather. places like mississippi, northern louisiana, oklahoma, texas, kals and oklahoma city, a string of a hundred plus days like, you know, we're working on records here. now we are starting to extend this up towards the north. central northern plains under heat watches now the next couple of days and places as far north as the canadian border seat heat up to over a hundred degrees closer to the weekend. today, high temperatures in the shade without humidity, a hundred plus in dallas and austin, 95 and jackson and 89 in atlanta. 85 expected in d.c. and 83 degrees and low humidity in new york. pretty nice. the front. along the front we will see triggers of thunderstorms in the afternoon. atlanta as far north as minneapolis as well but north of that pleasant stuff. if you're traveling today, atlanta and minneapolis are the problem spots in the afternoon. miami and orlando as well and plain old rain in seattle. speaking of the west coast where it doesn't rain that much this time of the year. we you take to san diego where they have that world class zoo and they have some polar bears. it doesn't snow very much in san diego, especially this time of the year! there is kaluk rubbing himself over that snow. they brought in 18 tons of. guys, for the polar bear exhibit yesterday. some donors got together and raised five grand and brought in the snow, i assume, from the sierra nevadas somewhere. >> they should always have snow there for them. they are polar bears! >> i know, but it's a difficult thing. i can imagine a lot of folks on the eastern half of the country making that exact face. >> totally! >> if there was snow around here right now. >> you were here yesterday. you watched the show. you know they are used to this type of nice weather, the cold and the arctic temperatures in ireland! >> you're not going to say that, are you? don't do this again! >> they all descended from one polar bear in ireland. >> first of all, no way that all polar beared descended from one polar bear, right, rob? >> it takes two to tango but maybe in ireland guinness book record they could do that. >> thank you for making that a two-day conversation. teen sexting in rhode island makes it a minor for them to send a photograph of themselves and even tougher punishment if you send it on to somebody else. a man is wearing a spaghetti strainer on his head for a driver's license photo for, quote, religious purposes. he is an atheist and claims he belongs to the flying spaghetti monsters. according to the church website, they have one, yes, calling themselves pasta farians and only rejection is dogma of dogma. >> it doesn't look as bad as i thought it would. i expected to have like -- >> he got a sleek one. not a clunky pasta strainer. >> i would have gotten a bigger one because they are cheaper. grand old fashioned meats have 40 different kinds of bratwurst. check this out! gummy bear brats! >> brat so you can see the gummy bears! still weird. so weird to put them in the stuffer and you see all of these gummy bears in it. everybody is so intrigued. you have to try it. kind of sweet and sawyer! >> looks fantastic. first of all, i don't know how many people want to get sausage getting made, but then made with gummy bears doesn't make my stomach grumbling. a joke played on the owner is how it started. he kept sending his -- kept sending them. >> not much you can say about that. >> he kept demanding gummy bears and they called his bluff and cooked them up. do people eat these? are they popular or a joke? >> or is it a joke? yeah. >> why minnesota? minnesota government shut down may affect your berg habits. >> you want to know about this if you're in minnesota. the new "harry potter" movie is making magic already at the box office. >> look at that! vietnam, 1967. i got mine in iraq, 2003. u.s.a.a. auto insurance is often handed down from generation to generation, because it offers a superior level of protection and because u.s.a.a.'s commitment to serve the military, veterans, and their families is without equal. begin your legacy. get an auto insurance quote. u.s.a.a. we know what it means to serve. 24 minutes after the hour. "minding your business" this morning. the credit rating agency moody's raising a red flag and putting america's aaa rating on review and hinting at a possible downgrade if congress fails to raise the debt ceiling in time. the markets u.s. stock futures trading a little higher on better than expected earnings from jpmorgan chase and in a few minutes, several economic reports are coming out, including the number of new jobless claims filed last week. this just in. oil giant conoco phillips is splitting up and planning to separate in two separate companies. one on oil exploration and the other for refining and marketing and both will be publicly traded. miller lite, stock up. the state's government was shutdown before they could renew their brand label registration in the state. the company is forced to pull 39 beer brands from all restaurants and bars and liquor stores as a result. a new "harry potter" movie antisow yet and raking in big bucks. how much? $25 million in advance ticket sales! the movie opens in the u.s. on friday. good to be christian lopez. two of the new york yankees sponsors are donating $50,000 to him. he caught derek jeter's 3,000th hit, a home run. the money will help him pay student loans and taxes he may owe on gifts from the yankees and he now has a 2009 world series ring and getting his very own baseball card! next the u.s. soccer team wins a crucial man in the women's world cup match. richard roth is live on that next. "american morning" back after the break. boy, i'm glad we got aflac huh. aflac! oh, i've just got major medical... major medical. ...but it helps pay the doctors. pays the doctors, boyyy! [ quack ] oh yeah? what about your family? ♪ we added aflac, so we get cash! it's like our safety net... ♪ to help with the mortgage or whatever we need! so my family doesn't feel the pain too. ha! [ male announcer ] help protect your family at aflac.com. [ pigeons ] heyyy! hooo!!! ♪ they are america's new dream team. no matter how cynical you are and no matter how much you tell me you've never watched soccer, everybody is watching this. u.s. over france in a berth in the world cup final for the first time since 1999. >> who could forget 1999. those were our heroes, brandi chastain and mia hamm. the american women will play japan for the title. >> i don't want to toot my own horn but i forget it downstairs. the u.s. team was fortunate to win. they had a tough time with france. experience won the day. and two late goals. i happen to be with fans in a bar in new york city when the second key goal was scored. paulette, what is your reaction as this ball comes in close. it is a goal! it is a u.s. goal! >> woo! america! >> usa! usa! >> reporter: what? >> they didn't look particularly rowdy. seemed like they were drinking ice water. >> no the focus is the game. i don't know where you go after the show. the third goal was scored by taylor, youngest player on the team, that was, of course, what made them go into really high spirits at the bar. but looked good. they are now the favorite. it's a strange team. they were unnoticed, even though they have been winners and got to every simi final. yet the u.s. wasn't following it. now the stirring nature of the wins that is what is really doing it. i also asked fans afterwards about their impressions about the match. >> i thought it was an incredible match. the u.s. seemed a little bit nervous but they are here and ready to play and it's time for a victory. >> i think everyone was expecting germany to win and when they kind of crumbled under the pressure, everyone said, oh, wow. this u.s. team really has some heart. >> what is their chances? >> i think sodlo will be a star. >> it was unclear whether they will win. >> japan knocked out host, germany. pretty convincing win over sweden, the other semifinal. >> we will be watching. >> you will be too? >> i will be watching with the fans. >> you didn't bring the horn? >> i forget it downstairs. >> in that case, this conversation is over. >> i didn't want to wear you out. did you get any tweets? >> no. >> that is why he was asking for it. >> richard, talk to you later. the game is on subjectnday. lawmakers calling for an investigation to find if any u.s. laws were broken in the phone hacking scandal. braley has asked the reform committee to get involved in this case. he joins us live from capitol hill this morning. thank you for being with us. >> great to be on the show, ali. >> tell me what you would like done. what are you asking for? >> i've served on the oversight capacity in some capacity since i was elected to congress. our committee has the responsibility to look into the troubling allegations from news corp and find out if any federal laws were violated. such as the corporate act that prevents people from bribing foreign officials or other type of criminal violations. one of the reason this is important is congress has important oversight responsibilities to make sure that these laws are being followed. >> let's say you found something wrong. i don't want to presuppose the work of the committee. what would that mean? what is the implication? >> well, when we do any type of oversight, the whole purpose is to get to the bottom of an issue and make findings that can be followed up by law enforcement officials or-- congressional ac needed to propose some type of legislative solution. right now, the big issue is getting to the bottom of this and make sure there is accountability. >> congressman, how do we know -- how is this going to go down on political lines? the chairman of the committee, definitely an activist as a member of congress. have you heard back from him and what is the response of republican members of congress? we will have hearings today in the oversight committee and i will be talking to the chairman and other members of the committee. ali, when i was a journalism student shortly after watergate, we were taught the bedrock of journalism is accuracy, objectivity and ethics. one of the things we have seen as a blurring of the distinction between reporting the news, opinion, and political advocacy. now it appears that news corp is getting into the field of political espionage or personal espionage and that is one thing we need to be very concerned about. >> you can see how this could start to go down political lines, right? with fox having certain conservative commentators and analysts it might start to go down the lines of democrats, more democrats already calling for investigations into rupert murdoch and news corporation and fewer conservatives, right? >> well, but chairman of the homeland security committee and the house peter king, a republican, is very concerned about this. he mentioned the fact that 150 of his constituents died during the attacks on 9/11 and the possibility of them having their voice mails hacked is a serious concerns to all americans without regard to political party. >> he has called for the fbi to look into this as well. who do you think is best equipped to handle this? if everybody gets on board and says somebody has to look into news corporation and what it's done in the united states, should be it a committee? would you rather it be the department of justice or the fbi? >> well, i don't think that those investigations are mutually exclusive, because congress has a responsibility. it's based on the constitution to conduct oversight of these types of violations. at the same time, these law enforcement agencies are set up to pursue criminal investigations. i don't think that our moving forward on an investigation will jeopardize that investigation in any way. >> have we got a record in the united states of actually following up on investigations that possibly are breaches of the foreign corrupt practices act? as i was saying to kiran earlier, not something we hear much about. >> well, in my first term on the oversight committee, we did hold hearings into a variety of different things that were happening in iraq as part of our rebuilding effort. and we held hearings to look into those type of violations. when we find evidence of wrongdoing, we refer it out to law enforcement officials for follow-up and i would expect that to happen in this case if wrongdoing was found. >> in the last few years the justice department has looked into violations of the foreign -- like siemens and others. we haven't heard about it a lot. thanks for being with the show. >> good to be with you. in three minutes the emmy nominations live. bring them to you when we come back. exciting day. >> are you really excited? >> yeah. >> you want to see the awards ceremony. the nominees are announced and announced by joshua jackson and m melissa mccarthy. 45 seconds to go! what should we watch out for? >> one big category the drama category. last year "mad men" took home the big prize and see what happens this year. so many exciting new shows being thrown in the mix. hbo's boardwalk and em pir and another big hbo hit games of throes. they are 20 seconds away so we will listen. comedy, steve carell's last year. he has been nominated five times and see if he gets the big nomination! let's hit the stage as they are announcing the nominations for this year's emmy. >> i'm john shaft ner. welcome to the 63rd prime time emmy awards nomination announcements. television is always been at the forefront of innovation and creativity and this past year has been no exception. our members have worked extra hard in selecting this year's emmy nominees. joining me now for the presentations this morning are melissa mccarthy who stars in the cbs series "mike and molly" and josh out was jackson who stars in "the fringe." >> thank you both so much for being here so early in the morning! >> well, it's our pleasure. our pleasure. >> melissa, ladies first. >> okay. quite a gentleman. the nominations in the drama series category are boardwalk empire, dexter, friday night lights, game of throes, the good wife, and mad men. >> the nominees for the lead actress in a drama series are kathy bates, connie britton, mireille enos and elicit is a beth moss and julianna margulies. >> for lead actor in a drama series the nominees are steve buscemi, kyle chandler, michael c. hall. jon hamm and timothy olyphant. >> for outstanding minuty series or movie, the nominees are cinema verita. kennedys. mildred pierce and pilars. nominees for lead actress. are. >> the nominees for lead actor in a miniseries or a movie are -- >> the nominees for outstanding host for a reality or reality competition program are -- here are this year's nominees for reality competition program. >> the nominees for variety music or comedy series are. >> the nominees for lead actress in a comedy series are. >> oh, my god! yikes! oh! >> okay. keep it together. wow. the nominees for lead actor in a comedy series are. >> melissa, let's complete the emmy announcement by bringing back john to announce the final category. >> wow! >> hello again! the nominations in the comedy series category are. melissa, the academy congratulates on your nomination and joshua, thank you for helping us complete this. >> my pleasure. >> tune into the fox network on sunday, september 18 nfor the live telecast for the 63rd emmys and find out who will take home the emmys. have a great day, everybody. yea! >> there you have it, ali and kiran. i'm sure a gazillion of your favorite shows were called, right? it was so cute. you heard it a few minutes ago where the presenter on stage, melissa mccarthy, she actually got a nomination. her first for "mike and molly. >> she was the standout star in "bridesmaids." so she is going up in that comedy category. a little bit of competition there for her, but, again, she was elated and she got through it. let me run down a couple of other big categories. mad men won last year. they are going up against dexter, "the good wife." and "boardwalk" and "friday night lights" and friday night lights" a popular show. so many contenders in that category. not sure how much time we have to blab this morning! we are just blown away by the new shows in the mix this year and some of the long time favorites coming back and they are going to be tough to beat when the show airs in september, september 18th, guys. >> good showing on the good wife. i thought that showed -- i was surprised kyra sedgwick doesn't show up for "the closer." >> that's true. many people were saying she would be duking it out this year with julianna. perhaps a big surprise on that end. one of my favorite categories is reality tv. we can't get enough of it and the big buzz going into this is whether "the voice" they did not make it in the mix. in terms of reality competition we are seeing top chef and dancing with the stars and amazing race and "american idol." fantastic morning in hollywood. >> "the amazing race" always get a lot of accolades. >> they do. so popular. >> see if it goes to a cooking show. that would be interesting. >> kareen wynter, thank you for taking us through that. >> thank you. >> i hope she gets back home because the 405 will be closed. morning headlines when we come back. automotive performance is gone. and all we have left are fallen leaves and broken dreams. oh. wait a second. that is a dodge durango. looks like american performance is doing just fine. ♪ carry on. ♪ no, it's just for new people. hey ! chocolate, vanilla or strawberry ? chocolate ! chocolate it is ! yeah, but i'm new, too. umm... he's new... er... than you. even kids know it's wrong to treat new friends better than old friends. at ally bank, we treat all our customers fairly, with no teaser rates and no minimum deposit to open. it's just the right thing to do. . here are your top stories this morning. a final service this morning in grand rapids, michigan, for former first lady betty ford. she died friday at 93. you're looking at now at live pictures from the public viewing. mrs. ford's funeral is scheduled for 2:00 eastern this afternoon. she will be buried alongside of her husband, america's 38th president, gerald ford. several u.s. lawmakers are asking news corp to be investigated. they reportedly hacked the phone of 9/11 victims and they want to find out if u.s. laws were broken. today, president obama and congressional leaders will sit down for a fifth straight day of debt talks. yesterday's negotiations ended in a tense note with house majority leader eric cantor saying that the president shut down discussions after he proposed a short-term deal. and because of the lack of progress when it comes to raising the debt ceiling, the credit rating agency moody's put america's aaa rating on review for a downgrade. world markets took a hit from that news. u.s. stock futures trading up right now, getting a boost from a better than expected jobless claims report that was just released. 22,000 fewer people filed for unemployment benefits for the first time last week compared to the week before. you're caught up on today's headlines. "american morning" is back after the break. just in to cnn. 22,000 fewer people filed for jobless claims last week for the first time than they did the week before. that is better than economists have expected. >> yeah. a lot of people are still out of work. 405,000 people filed for initial unemployment benefits for the first time last week. u.s. so to stock futures ticking up ahead of the opening bell on the news it was fewer than expected. >> well, yeah. this morning, they turned and down and then news out of jpmorgan chase they had good earnings turned things upwards and more than specked and more than we would like. fewer than expected. he is the president's sort of adviceor on jobs. jeff imelt. >> poppy harlow sat down with him and she joins us now. still, we are not in the right territory with people filing for unemployment claims. >> not at all. what ali said is an interesting point here. general electric and jpmorgan have cash sitting on the sidelines. trillions and money. the government is asking them to start hiring in a major way to turn around this unemployment crisis. jeff runs one of the biggest corporations in the world and head of the president's council on advising how to get jobs. we sat down at the factory and we took a tour yesterday in south carolina where they employ 2,200 folks. especially this failure to reach an agreement on the debt ceiling what does it mean for jobs. he had an interesting answer when it comes to small businesses. take a listen. >> i would ask people, don't think about ge but think about a small business person who create a lot of jobs in this country. they are scared right now. if the government doesn't roll over its debt, why would you invest into that? if the budget deficit means super high tax rates for them. to me is the piece that is missing. there has been bad new business generation and small businesses have gotten hurt coming out of this recession and guys like us have a global footprint and global command, we will power through this. >> he said the concern is lack of confidence in hiring but he said -- i said do you push back at the president ever on certain points and, you know, he's a republican as are a lot of business leaders. the obama administration is a democrat. he said, yes, on all of the red tape. the only way we will create jobs is get rid of the unnecessary regulation and you hear this and you might think rhetoric. if we can get some of this red tape he says we will push through. what is interesting this is a guy whose first role is to run a company. what if he has to cut jobs in the u.s. a lot more from our interview is on cnn/money. >> great job you got to talk to him. >> interesting focus. >> nice. thanks. >> sure. 57 minutes after the hour. we will be right back. stay with us. check out the miles per gallon. the length of the power train warranty. and the horsepower. only ram delivers this kind of muscle. that'll thin out the herd real quick. guts. glory. ram. yoo-hoo. hello. it's water from the drinking fountain at the mall. 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