in minnesota a budget deal is finally struck after a painful two-week long government shutdown. the hacking case has left the pond. rebekah brooks has resigned in the wake of the growing phone hacking scandal as the fbi looks into allegations murdoch's employees tried to hack into the phones of 9/11 victims back in the states. all of that "early" this friday morning july 15th, 2011. captioning funded by cbs >> good morning, a beautiful start to the friday, july 15th in new york. >> i'm chris wragge. >> i'm erica hill. a lot to talk to you about with the budget crisis not the only one in washington. minnesota managed to resolve their issue last night. a small sigh of relief for folks there. as we mentioned this happened in week two of a statewide shutdown. you see a diner there in st. paul the uptown diner. we'll speak with some folks at the diner who are fed up not just with their state government but also with washington. we'll see if they have some ideas for the lawmakers trying to come to some sort of consensus. also rocket roger clemens, hall of -- may be hall of famer, he gets a walk at this point for the famous pitcher, he walks away from his federal perjury trial after a mistrial was declared two days in. we'll see what's in his legal future, is he off the hook or could he possibly say we'll get you back to court after a later date. first the runway collision between two jets in boston last night, nearly 300 people were on board two delta jets preparing to take off from logan international. both departures became to an abrupt start. sera congi is from wbz in boston this morning. >> reporter: both were preparing to take off when this collision happened. no one was seriously injured. the passengers we talked with say they felt a jolt and that was pretty shocking but overall, everyone remained calm. it happened about :40 thursday evening, the wing of delta flight 266, a jumbo jet, clipped the tail of a delta commuter flying as atlantic southeast flight 1904 heading for raleigh, north carolina. those in the cockpit remained car. >> we're gonnaena have to wait for a moment. i think we clipped the flight of the other plane. >> reporter: the smaller plane was stationary and received the most damage as the left wing of the larger plane sliced through the tail of the commuter. >> did he hit you in the tail of the wing? >> absolutely. >> reporter: the 767 headed for amsterdam and the regional jet carrying 74 were quickly evacuated. . >> the most important thing here is there's only one injury a male person who claimed that his, he has a pain in his neck. >> reporter: the impact jolted those on board and drew more than a dozen emergency vehicles. >> worst experience of my life. i will never fly next to me again. >> the girl next to me was right by the wing crying and the guy next to me was trying to jump out of the emergency exit. pretty calm other than that. >> reporter: a bombardier regional jet was hit at laguardia airport, no one was hurt in that still under investigation. ground collisions like these cause an estimated $11 billion worth of damage each year. as for what went wrong here at logan, what caused this collision, well the faa is now investigating. delta has taken both planes out of service for inspection and all the passengers have been rebooked. live at logan airport i'm sera congi for "the early show." >> thank you so much. here's erica. a tale of two capitols, the heated debate on debt cutting. in st. paul minnesota, leaders struck a budget deal to end a painful government shutdown. the impasse had crimled the state. meantime in washington the other capitol you see there, talks to raise the nation's debt ceiling remain deadlocked. a second credit agency is threatening to downgrade the standing of the united states of america. we begin in washington where president obama will hold his third news conference in 17 days, he plans to lay out his case for a compromise but we should point out again at this juncture, still no agreement. cbs news senior white house correspondent bill plante joins us with the latest developments. good morning. >> good morning, erica. at yesterday's meeting the president tossed this whole mess back to the congressional negotiators, told them it's decision time and suggested they go off and find out some solution in the next 24 hours or so. but he said that he and his staff will be on call for another meeting if they can't come to an agreement by tomorrow. both sides say thursday's meeting was calm cordial and productive, unlike the day before, when as the president told cbs philadelphia station ky we're peeled for order. >> what i did say to them was very bluntly the american people expect us to stop political postures, to stop playing games teen solve this problem and i was very blunt with them. >> reporter: officials say the group examined all the pieces of a potential big deal spending cuts entitlement reforms, savings from the tax cut and employment insurance. the big deal is his preference but he'd accept a small $2 trillion deal. there's also a proposal by senators harry reid and mitch mcconnell to give the president the authority to extend the debt ceiling through 2012 without the consent. >> he described it as a last ditch effort in case we're unable to do anything else and what may look like something less than optimal today if we're unable to get to an agreement might look pretty good a couple of weeks from now. >> reporter: that fallback agreement is looking more and more likely. sources say that the person who made the most of the argument on wednesday, eric cantor didn't even open his mouth yesterday in the meeting, and they say that they expect things to move forward, but they don't know how fast. there's no meeting today, but we will hear from the president at a news conference later this morning. >> bill, thanks. we will be carrying that news conference for you here on cbss apart of our special coverage that begins at 11:00 eastern time again right here on cbs. in minnesota, there is a deal, a deal reached that would end a 14-day government shutdown, the longest state shutdown in this country in a decade. you may recall it began just before the july 4th weekend, state parks and rest stops were closed thousands of state workers furloughed. jamie yuccas from wcco joins us from minneapolis from a diner there with some folks with a little bit more on the deal that's been struck. jamie good morning. >> reporter: good morning, erica. it is the talk of the town this morning, as the two-week government shutdown a partisan shutdown, the governor and state legislators yesterday came together, struck a deal to end that unprecedented government shutdown. the deal that ended the stalemate was announced by grim-looking state legislators. >> we've got a framework agreement, and the next couple days will be very busy trying to expedite and move details. >> reporter: it came together because first year governor mark dayton did a sudden aboutface agreeing to a republican demand the budget have no tax increases. >> i have to look myself in the mirror and say this is what i believe is the right decision for the right reasons because it's right for the most people in minnesota i can live with that. >> reporter: republicans gave up their demands regarding new restrictions on abortion and stem cell research as well as a plan to cut the state workforce by 15%. the government shutdown idled more than 20,000 state workers and closed state facilities like parks and government offices. the new budget will borrow from the state schools and tobacco settlement fund to close a $5 billion shortfall. now the shutdown is not officially over yet. lawmakers have to come back to a special session to vote on it. the price tag of the two-year deal $55.4 billion. >> it is a step. jamie yuccas, thanks. in our next half hour you saw a number of folks in the dine we are jamie. we'll speak with them and find out how they feel now about the shutdown, about this deal and also how they feel about the stalemate in washington d.c. coming up later here on "the early show." here's chris. britain's phone hacking scandal reached the u.s., in washington there's word an fbi investigation is under way into whether 9/11 victims were targeted in the phone hackings. whit johnson has the story in a moment. in london a top executive in rupert murdoch's news corp has resigned. cbs correspondent dana lewis in london with more. >> reporter: the murdochs appear to be in full retreat. james murdoch statements acknowledges wrongdoing. his company will take out full newspaper ads apologizing to the nation. james murdoch arrived at the london headquarters of news international silent. within hours rebekah brooks his chief executive resigned. for 22 years, rupert murdoch last week showed his public support during a phone hacking and bribery scandal of his "news of the world" she's been embroiled in as far back as 200037. >> have you paid police for information? >> i have paid the police for information in the past. >> reporter: parliamentarians, they indicated they won't be answering all answers but the committee says murdoch and brooks will be compelled to answer because they're note criminally charged and james previously said parliament was lied to. >> he has stated parliament has been misled by people in his employment and we want answers to questions about this. >> reporter: in an interview with his "wall street journal" newspaper, rupert murdoch said in agreeing to appear he wanted to address things said in parliament which he called "total lies" adding it's important it's absolutely important to establish our integrity. brooks acknowledged it's responsibility to establish the integrity of the people. >> reporter: they were issued formal legal summonses to come to the panel and said yes, the questioning next week chris, is expected to be fierce. >> cbs's dana lewis in london thank you. mentioned a few moments ago britain's phone hacking scandal reached this country. the fbi opened an investigation yesterday into whether news corp employees tried to hack into the phones of september 11th victims. cbs news correspondent whit johnson joins us from washington with the latest oen that angle of the story. good morning. >> good morning to you. these allegations were first reported by "the daily mirror" another british tabloid and top rival of requesting news in the world." here in the u.s. pressure from lawmakers prompted the fbi to take action. >> reporter: it was pressure from the lawmakers that "news of the world" may have sought to hack the phones of those victims of the 9/11 attack. king cites published reports that journalists working for the paper solicited a new york police officer to gain access to the phone records adding "it is revolting to members of the media would seek to compromise the integrity of a public official in pursuit of yellow journalism. >> it's disgraceful, during a time when the country was in absolute trauma family members didn't know if their relatives were dead or missing. >> reporter: john cartier lost his brother in the attack. >> you might want to think about this individual walking into your house and going through your private belongings, private paperwork. >> and the allegations from "the daily mirror" came from an anonymous source and cited no evidence that phones of 9/11 victims had actually been hacked. chris? >> cbs's whit johnson in d.c. whipt thanks. we'll see what happens. a new development every day and the big development is rebekah brooks finally stepping down. >> how about and we can bet there will be more development over the weekend and we'll follow it into the week as well. jeff glor standing by with a check of the other headlines on this friday morning. it's a friday my friend. >> special friday because it's erica hill's birthday. >> it's not my birthday. >> in a week. >> i'm on the 20th but i love the early celebration. >> did i just get caught. >> because you're away. >> holy cow. he just blew the surprise on network television. >> good morning, guys. >> i love you, jeffrey. get to the news jeff. >> yes in our news here this morning, right here in new york city the man accused of kidnapping and killing an 8-year-old boy in new york is being held without bail. yesterday levi aron appeared in court, a judge ordered a psychiatric evaluation and outside he faced outrage. kletzky was abducted monday while he walked home from camp alone the first time ever. the boy apparently fought for his life. >> there was some indications of scratches on aron's arms and wrists. i think it's reasonable to say at this time based on the marks on the defendant here that there was some struggle. >> investigators say it appears the boy was tied up before he was killed but he tried to fight off his captor anyway. in orbit overnight shuttle astronauts were jolted away by an alarm. an on board computer failed. it took some time but they got it running again, the second computer on the last shuttle mission but nasa says there are no safety concerns. today they're transferring more supplies from the "atlantis" to the space station. if you're hoping for ap. envelope envelope, hoping for an nfl season it looks pretty good right now. insiders say the four-month lockout could be over within 24 hours. at the british open a golf legend turned back the clocks. 61-year-old tom watson look at this, second round tee shot 6th hole, ball goes up single hop, boom, in. tom watson hole in one, very nice see p many golfers waiting their lives for the first hole in one, watson this is his 15th. >> wow. >> one number i actually got right this morning. >> only one. marysol castro i got your birthday wrong too, a couple days ago. >> you sure did but we all got your birthday right. >> boy we need to move on. weather, weather. >> good morning, let's turn to the videotape and show you a line of severe storms that ripped through denver colorado yesterday, bringing a lot of rain. you see the metropolitan area got about two inches of rain in a very short period of time and denver international airport it was rain wind and hail 41 planes were damaged, with quarter-sized hail at its height the wind gusts clocked at about 68 miles per hour. same area experiencing rain hail and wind for today, billings denver, and then in the southeast, folks there get >> thanks so much. that's your latest weather. over to chris and erica, official good morning to you. >> official good morning. tune in next half hour when he gives away the birthday presents we got for erica. next half hour is the rocket off the hook for good? >> we'll get you some answers. you're watching "the early show" on cbs. bacon! smokey bacon, meaty bacon, tasty bacon! bacon? ohh, la, la... oh, i say is that bacon?! oh, good heavens! bacon! bacon! bacon! bacon! who wants a beggin' strip? meee! i'd get it myself but i don't have thumbs! yum, yum, yum, yum, yum... 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