let's go to the markets here in europe. they're gaining some ground here, about 90 minutes into the trading session. markets on the other hand, in asia, mostly lower. here in europe, it's a mixed picture. the only market that's down at the moment is the cac 40. there's a reason for that. the large french retailer and supermarket company, its shares are tanking to the tune of 10%, amid concerns about a deal in brazil that was pivotal to the growth of the economy, analysts said. in the meantime, we have the fat ftse pushing higher, up by 18%. and it's a similar for the dax at the moment. let's look how asia fared. it couldn't shake off the uncertainty we've seen, leading to some of the albeit modest losses today. we've seen losses around the asia-pacific region. mainly, from china's central bank, signaling a possibility. also, australian's central bank, after it decided to keep interest rates on hold as expected. it did lower its growth outlook for the economy. the s&p asx 200, down. nikkei up. but only slightly. the shanghai

in europe we've got two up, two down, as you can see. we've got currently the s&p 500 poised to open in negative trading whether it starts trading later on today. >>> starting today a free trade agreement between south korea and the european union will begin to eliminate almost all tariffs between the trading partners. the move is expected to generate tens of billions of dollars of new business and could see american company lose market share in south korea as the u.s. lags behind in striking its own free trade deal then. cnn's paula hancocks is live with what this means for consumers and the economy over there. hi, paula. one thing i was really interested to find out, when doing research on this, is that the e.u. is south korea's second biggest trading partner after china. this deal could be really important for it, couldn't it? >> reporter: absolutely. this deal here in south korea is being hailed as the best deal, the biggest deal that's ever been done, and politicians and economists alike want this to be the model if you like for any

here in europe we had a down beat start to the day. european stock markets have been open for slightly more than an hour at the moment, and as you can see, most of them firmly stuck in the red at the moment. >>> and let's have a look at the currencies because on the currencies front the euro is down by three-tenths of one u.s. dollar. a little under 81 as you can see at the moment. 80.80 is where we stand. in asia it was a mixed day on the stock markets. in tokyo the nikkie closed up 1.10%. not only did the index hit the highest level since the earthquake on march the 11th, but today's gains gave the nikkei the longest winning streak for two years. it was a different story for hang seng and the shanghai co composite index. they sold $3.6 million worth of holdings in chinese banks. this came just after a warn of a downgrade in the sector. elsewhere as you can see at the bottom of the chart, we did see the asx 200 in sidney inches up one-sixth of a percent. >>> on wall street it was a slow start after a three-day holiday weekend with a l

we start in europe where the they're just over an hour into the trading day and this is how things stand at the moment. all major indices down in negative territory. there's a lot of caution there ahead of the results of the stress tests. those will be released at the end of the day. these stress tests are the third in three years and there's a lot of concern about which banks have the most exposure to debt from greece, ireland and portugal. so that's the main focus right now. and also the recent warning from standard and poors about u.s. -- the u.s. credit rating. nina? >> pauleen, let's bring you new that's come out just in the last couple of hours. credit suisse has not confirmed that it is under investigation by the u.s. department of justice. it issued a statement saying that the investigation is focused on the private banking services that it offered to u.s. citizens and that it will fully cooperate with the authorities to try and resolve queries linked to those particular services. >>> here's what's happening in the asia pacific markets. the markets were mixed on this friday as in

and a positive start to today's trading in europe. >> absolutely right. we're seeing markets hanging out a little bit. we've got a couple of interest rate decisions. so, we are higher as of -- well, as of right now, as you can see. but only by about barely at all. interest rate decisions, european central bank, it's widely expected that the ecb president will raise interest rates for the second time in three months. with euro inflation expected to rise 25 basis points. 0.25%. that would take the lending to 1.5%. >> interest rates in asia as well. a mixed day after the markets, after china announced late yesterday, that hong kong and shanghai, moving in different directions. one thing analysts agree on this is likely to be the final interest rate rise in the current cycle in china. it's the third one this year. most say it's the last. inflation is expected to peak. we're seeing slower economic activity as a result of the rates to tackle inflation. in the other markets in japan, the nikkei ending a seven-day rally. it edged down by a couple of points. down

the libyan leader is vowing homes across europe could be potential targets. the u.s. takes gadhafi's threats seriously and will continue to support gadhafi's mission in libya. >>> a violent mexican drug cartel plans to target americans for robbery, extortion and carjackings. nuevo laredo is just across the border from laredo, texas. >>> prince albert of monaco is celebrating his marriage today to charlene woodstock of south africa. >>> because of dry conditions many states are going fireworks free, wow, this holiday. meteorologist karen maginess here to tell us all about it. >> all about about 12 counties in the state of texas are reporting fire bans. in west texas, they desperately need the rainfall there, already in the state of texas, 3.2 million acres have burned. we have heard about the fire right around los alamos, they are saying this is priority one fire in the country. and we have seen this already burn 177 miles square across the gion. but not just fires there, but also into arizona, right along the arizona-new mexico border. but look at these temperatures w

renewing alliances both in asia and in europe. engaging in positive or constructive relationships with purposeful work with great powers from a platform in which we can operate. developing relationships with emerging powers like india, brazil and others. and rebalancing our efforts in the world. which is an absolutely critical thing for to us pursue. >> explain what rebalancing means. >> we looked at where the united states footprint was, where the united states face to the world was when we came into office in january 2009 and we asked ourselves where are we underweighted, overweighted, where are we not putting real work into the future. we've been acting on those conclusions. we needed to finish our military work in iraq. we're on track to doing that. by 2011, to have 150,000 troops out of iraq by the end. we saw ourselves as needing more strategic attention and focus in counterterrorism. we did that against al qaeda and associated groups. we really considered ourselves, fareed, underweighted in asia. as we looked at the world,

does he have any capacity of sending attack marttiers into europe? >> john, any time they make a threat like this, you have to take it seriously. he sent people to kill servicemen in berlin and brutally brought down pan am 103 in 1988 so he's done this before but this threat things hollow to me. there aren't tens of thousands or hundreds of thousands of libyan citizens willing to go to europe. most want to overthrow him. it doesn't make sense what he's trying to accomplish. he wants to cut a deal, stay in power or exit gracefully without an indictment. if he does he will anger the governments to want to bring him down more aggressively. this one is gadhafi at his rhetorical worst and rings hollow to me. >> it begs the question does he want a negotiated deal or perhaps unstable? >> i haven't met him but always believed he's unable but nick is right. this is a guy having done these attacks -- these kind of things before. you've got to take it seriously. i do think now he said he wants to be a martyr. wants his blood on libyan soil but i think if they c

it is a president who, in europe, for example, we had a summit last november. where the president led the effort on missile defense, on getting a common way forward in afghanistan, on a new concept for europe and alternate work there. it is a president who took the lead on taking the g-20 and making it the premier and principle global financial management agency in the world. time after time i have seen the president come in the situation room and i have been in there hundreds of times and sit down and make these kinds of decisions where american is leading and again the entire effort here is to have america restore its influence and power and authority in the world. of course, i also had the privilege of working closely with this president as he made exceedingly difficult decisions, leading up to the final decision to go after osama bin laden in what was a quintessential presidential moment. by experience with president obama and i'm not, fareed, you know me well enough, i'm not prone to high her bolly. and i work on complicated problems every day and don't se

libya's leader vows to move the battle to europe. moammar gadhafi vowed libya will retaliate for the bombing mission. >> translator: people of libya might exceed your houses and offices and families. all of them will be fair military targets. the same way you turned our house and offices and children, you turned them into military targets. we will treat you the same. eye for an eye. ear for an ear. a drop for a drop. a family for a family. a house for a house. a headquarter for a headquarter. if we decide to move to europe like locust and bees. >> u.s. secretary of state hillary clinton says gadhafi should put the interests of his people first and step down from power. >>> return to michigan for a landmark decision. a ban on affirmative action has been overturned. in 2006, voters approved an amendment to the state constitution to ban affirmative action in college admissions and hiring. in a 2-1 decision this week, a federal appeals court struck that down. michigan's attorney general says he will appeal that court ruling. >>> also in

a day of anger, as he called it, and certainly as he said, he made a direct threat towards europe. he said because of the nato campaign here, that nato says is bombing targets to protect civilians, he's saying that they're going to target houses and families in europe. that it's a fair military target. it will be an eye for an eye. he likened the response of the libyian people to a swarm of locusts. we're hearing from his only daughter. she did an interview with french television and one of her quotes, we are ready to alie ourselves with the devil of the rebel army. what do you make of what she's saying now? >> there hasn't been any proof of direct talks with the rebels. devils, as she put it. not the best way to call the side of the conflict devils. so much rhetoric between these two sides. and people day i dying, it would be very difficult for them to sit down at a table right now. she said gadhafi is in his place, she called him a figure head and the rebels are saying the complete opposite, that he has to leave power, leave any kind of office if they're going to talk. >> next, a

europe had the scarlet pimpernell. here they have superman. even nature and gravity couldn't keep them on the ground. they were invulnerable and could fly through the air and create worlds, anything that you could ever dream about. the new heroes were all invented here. so superheroes, movies, physically and literally invented right here. the cars you drive, you know, the telephone you talk about, even the night is no longer off limits. somebody invented light. americans. >> i came from africa, and africa, like my dad, i use him as an example. he walked through all his life without having a house to his name. but in america it totally is different. i came here to the united states about seven years ago. within seven years, i got two degrees. i got an undergrad degree and my mba. this is not something that happens so easily every other place. i'm a proud olympian. i have a paralyzed left leg. for the past several years i'm here i've been holding the u.s. record. now i can sit comfortably. and i'm the u.s. record holder in shot put and discus. i

they have this great manager, sir alex ferguson, he's a legend in europe. not that well known in america manchester united soccer fan which is about as bad as life gets. they have this great manager, sir alex ferguson, he's a legend in europe. not that well known in america but in terms of his leadership, is he someone that inspires you? >> yeah, definitely. i think especially with the crop of players that he had in the late '90s, david beckham, gary neville, ryan giggs, for all those players to be so loyal to him for so long, it shows what a great leader he was. >> when you lost the masters and you had to wake up to all these headlines, rory chokes and so on, so on, do you get depressed when that happens or do you have a side to you that just fires yourself up? do you sink in to a kind of temporary oblivion of despair? >> no. if anything, it made me more determined to go back and to prove to a lot of people, not just the media but just everyone. and prove to myself as well that i wasn't this person that they were making me out to be in the press, a choker

and europe. >> the great thing is you're giving people specifics. these are places where indexes don't do the job. you want a manager and it might cost you higher than an index but you want somebody who know the difference between this company and that. always a pleasure to see you. he is managing director at zephyr management. >>> enough is enough with these debt ceiling talks. something has to happen now. [ male announcer ] this is larry... whose long day starts with arthritis pain... and a choice. take tylenol arthritis and maybe up to six in a day... or choose aleve and two pills for a day free of pain. happy chopping. >>> time now for the xyz. nearly three months after after a last-minute deal averted a government shutdown, i pleaded with the president to never take us to the brink again. here we are barely a month to go until the u.s. government will begin to default on its obligations if the debt limit is not raised. this game of chicken has become so engrain in the our politics that our elected officials would risk economic catastrophe by dr

if we decided, we are able to move to europe like locust, like bees. >> a man who flew across the country without a ticket remains in jail this morning. a federal judge refused to set bail during a hearing yesterday. the suspected stowaway was caught traveling from new york to los angeles using someone else's boarding pass. when he got to los angeles, police let him go. he then tried to board a plane from los angeles to atlanta a few days later using the same trick. he was arrested that time. >>> also, this morning, a live picture, hartsville-jackson international airport in atlanta, georgia, air traffic controllers in atlanta and nationwide are getting new rules in an effort to keep them awake on the job. besides new scheduling guidelines controllers are now being allowed to read or listen to the radio to keep them awake, but only when there's not a lot of air traffic. they can also take sick days if they're too tired to work. this all in response to several incidents this year where controllers fell asleep in the tower. controllers are still not allowed to take naps, though, while on br

he says homes and offices across europe could be potential targets. a state department spokesman says the u.s. takes gadhafi's threats seriously and will continue to support nato's mission in libya. >>> texas authorities are urging americans to stay away from the mexican border city of new a oh laredo this weekend. the warning indicates a violent drug cartel plan to target americans for robbery, extortion, and carjackings. nuevo la raid so across the border from laredo, texas. >>> help may object the way for fatigued air traffic controllers. the faa is out with new rules that should help them stop falling asleep on the job. there must be at least nine hours between shifts. during overnight hours, controllers can read or listen to the radio, but only when there is not a lot of air traffic. they can also take sick days if they're too tired to work. the controllers still can't nap on breaks. >>> rhode island has legalized civil unions. governor lincoln chafee signed the bill into law today. it will give same-sex couples a bunch of new state tax breaks, h

in europe, markets are all pointing north as well, charles. >> let's look and see watts going on in europe. here's where the numbers stand now. we have been seeing some decent gains from the banks. if we can look at the numbers, please. any way, here we are. up. this is decent. on top of the rally we've been seeing, it's, i suppose, heartening if you're a bullish investor to see these continuing gains. nothing too spectacular. 0.8% for the if thecy. more than 0.1% for the dax. zurich up 0.23%. we had that quarter of percentage point interest rate hike on wednesday that was effectively in the price we may see lingering optimism from thursday when the ecb said it would still use portuguese debt as loan collateral, despite the rating being cut. so the european authorities, if you like, sticking two fingers to the idea that portugal is producing junk bonds at the moment. they will accept these junk bonds, andrew. >>> a positive day here in the markets in asia to round off the week. it looks like the risk game is back on. it began last week. there has been quite a lot of money starting to come

and europe. so it's a great growth story. >> the great thing here is you're giving people specifics. these are some places where indexes don't do the job. you want a manager. it might cost you a little higher than an index. but you want somebody who studies and knows the difference between this country and that, this company and that. >> yes. >> jim award is managing director at zephyr management. >>> enough with the debt ceiling talks. something has got to happen, and it has to happen soon. we'll get in to it next in my xyz. come to meineke for our free fuel-efficiency check and you'll say...my money. my choice. my meineke. >>> time now for the xyz of it. nearly three months ago after a last-minute budget deal averted a government shutdown, i stood in this very spot and i pleaded with congress and the president to never take us to the brink again. here we are, barely a month to go until the u.s. government will begin to default on its obligations if the debt limit is not raised. this game of chi

-- shouting at support, libyan leader moammar gadhafi says he will in his words move the battle to europe, says he'll target homes and offices against nato air strikes. >>> i'll be back at the top of the hour with more live news. right knew time for "your bottom line." >>> the first good news in months for homeowners. a rare sign of life in the spring selling season. good morning, everyone. i'm christine romans. but the fact remains, the value of your biggest asset is down some 30% over the past few years. the housing market has changed and so have you. what you need to know if you own a home, want to buy one or rent. plus, is it ever okay to walk away from that mortgage even if you can afford to pay? let's start with the american dream of owning a home. if you're a buyer it's a dream market, only if you can get the loan. with ten of the nation's largest mortgage lenders denying almost 27% of loan applications last year, that's up from 23.5% in 2009. this is according to "wall street journal" analysis. if you're a seller it's a nightmare. home prices rose slightly for the first time in ei

investors on edge over financial stability in europe. moodys has downgraded portugal rate to go junk. >>> members will have access to movies and shows in spanish, portuguese and english by streaming not by mail. >>> almost half of all flat panel tvs will have internet by 2015 according to a new study. by the end of this year, 25% of all tvs shipped will have some sort of interconnectivity. >>> coming up next an exclusive on the ground in al qaeda. "american morning" back after the break. i grew up wearing lots of hand-me-downs. bell bottoms in the '80s? not pretty. then she found them. she loved them, so i washed them in tide with downey and they're still soft and fresh. right? i'm blogging. really. i'm talking. that's my tide. what's yours? control your budget? yes. our "name your price" tool shows you a range of options. you pick a price that works for you. perfect. only one thing could make this better. both: '80s montage! ♪ progressive '80s montage ♪ he drops some boxes, but it's okay ♪ ♪ we keep dancing ♪ hey! it's that gu

let's get to europe. nina, how's it looking? >> well, european stock markets, an drew, seem to have been taking their cues from asia, but starting out, generally speak, of an optimistic note. the eu's approval has eased some investors' worries. we'll have more of that in just a moment, but taking a look at the markets as you can see, it's broadly speaking a mixed picture. the cac 40 down but we have pretty modest gains from the ftse 100. >> modest indeed. certainly here in asia, nina, things getting off of the a stronger start. the trading day is, of course, winding down. concerns are high, the european debt crisis being pushed aside. the nikkei up by nearly 1%, just at that 10,000 yechb threshold. it did cross a little earlier in the day and has pulled back from that. and that was thanks in part to tokyo electric power. shares up by 0% today. the company at the center of japan's nuclear troubles is getting very good news. senior government officials have proposed a plan to take up tepco. it puts the nuclear operations under gov

the libyan military could be like locust and bees in europe. targeting homes and offices. the leader still has many loyal followers, including a number of female fighters. cnn's david mcsenzy has this report. they have an unusual accessory at hand. the women have come in to prove their loyalty and to show off their weapons they are not a phrase to use. these are people's sisters and grandmothers. they are a fighting force. from a young age, girls get military training in schools here, but with the war on libya's embattled leader, they call for fresh volunteers. women of all ages are signing up. this 40-year-old textile worker. i train after work at 4:00. i got to train on using weapons i like it and i like the training and defending my country. now i'm training other women to use the guns. they learn to defend the country they said. they train to use it and assemble and take it apart and they shoot and get excellent scores. many are them are still unfamiliar with the rifles the volunteers were bust out to meet us. it's tempts to dismiss them as a military force. consider t

. >>> a warning from gadhafi to europe. he says the border of could be a target. the u.s. takes his threat seriously, and he plans to support them. >> texas authorities are earning americans to stay away from laredo this weekend. they plan to rob americans for robbery, extortion, and car jackings. >>> there's news from iowa about a pair of republican presidential hopefuls. congress woman michele bachmann is on a multicity bus tour, trying to build on her strong showing in a recent state-wide poll. iowa kicks off with the iowa caucuses earlier next year, and a shift in the iowa staff for republican herman kane. two top iowa staffers have resigned. the cain campaign downplays the changes and insists new players are coming onboard. >> iowa has legalized civil unions. it will give same-sex couples a lot of tax breaks, health care benefits, and legal perks but it falls short of same-sex marriage. the bill sales through the state. the senate earlier this week despite strong opposition, and before we go, have you heard about this presidential sell-off? the side of the white house

. >> when you travel around europe, asia and other countries, not many americans do. when you do, what do you think the perception of your country is? >> misunderstood. we took a lot of flak. maybe some of it just for the iraq war. a lot of things bush did. i wasn't in bush's shoes. i don't know what that was like. they kind of looked down. i think they forget. that's what gets me angry. people forget the first time there's a natural disaster in the world, who is the first to send money? it's our tax dollars. when a country is invaded, we go first. it's been like that for a lot of years. go to kuwait and people are like thank you, thank you. in one sense, we did save their country from being attacked. saddam hussein was a bad, bad man. i think we could have taken them out better than devastating their country but what do i know? i sing rock and roll songs. usually, i share these beliefs with friends and family not the whole world. >> you are not a democrat. what does being an american mean to you? >> having the freedom to do whatever you want without taking advantage.

of supporters, gadhafi advised to withdraw otherwise promising to retaliate against his enemies in europe with an eye for an eye. >>> and it seems like the taste of freedom has italian flavors. former imf chief dominique strauss-kahn left his new york city townhouse tonight just hours after a judge released him from house arrest. he then went to an italian restaurant on manhattan's upper east side. the sexual assault case against him is in jeopardy after prosecutors called the accuser's credibility into question. but they haven't dropped the charges against him. now back to "murder abroad, the amanda knox story". >>> one of italy's most notorious murder trials, the case against amanda knox and her boyfriend was getting under way. basing his case mainly on circumstantial evidence, the prosecutor, giuliano mignini would begin to present witnesses. one said they saw the couple near the murder. two others said they heard a scream. another hearing footsteps running the other direction. mignini now presents scientific evidence he said proves amanda and raffaele's guilt. meredith dna on amanda's

bring your challenges. >>> a practice common in several countries in europe is gaining steam right here in the united states. the practice of selling alcohol in fast food restaurants. in a bid to boost business, two sonic restaurants in south florida will start selling beer and wine at the end of the summer. the move follows selected burger king locations that are selling booze as well as seattle-area starbucks where wine is sold. pronoponents say it can help bot typically slow evening business. so, here's the question, should fast food restaurants in the u.s. sell alcohol? oh, yeah, it's a big question. lisa bloom is an attorney and the author of "think straight talk for women to stay smart in a dumbed-down world." jennifer koppelman hutt, a sirius radio host. i want to ask you, first, jennifer, should fast food restaurants be selling beer and wine and alcohol? >> absolutely not. i think it's absurd, so now we're going to make it supereasy to be fat and drunk? come on! >> okay. i think she said it there. lisa, what do you think? >> look, alcohol is a legal product. it's sold in many ca

it's a first of its kind in europe. what we're talking about here could be a model for us here in the u.s. as well. this is a grown-breaking project, it was unveiled in belgium where a high-speed train traveled from antwerp to an ste amsterdam, about 80 miles, powered by solar energy. what makes this ground breaking is the source of that solar energy. the train was getting its electricity from a one of a kind solar tunnel. now, the tunnel is about 2.2 miles long. now, more than 16,000 solar panels were installed along the tunnel's roof. that's about eight soccer fields' worth of solar panels here. that alone is enough to power 4,000 trains or 1,000 homes in europe. now, heading up this project is solar developer infinity, and infinity's cno joins now from belgium via skype. i hope i explained that fairly well, how this thing actually works. you help me with the tunnel part of this. how does that part of it work? how do you get the energy from this tunnel you built to power the train? >> okay, well, typically what we do,

. >> when you travel around europe and asia and other countries outside of america, not many americans do, but still when you do, what do you think the perception of your country is? >> misunderstood. you know, we took a lot -- a lot of flack and maybe some of it just for the iraq war, and, you know, a lot of things that bush did, and i wasn't in bush's shoes so i don't know what that was like, and -- and they kind of looked down, but i think they forget, you know, and that's what kind of sometimes gets me a little angry is people forget first time there's a natural disaster anywhere in the world, who is the first people to send money, and those are our tax dollars? when a tragedy happens somewhere, someone invades another country works goes first. those are our guys and girls that go in there and die and it's been for a lot of years. it's nice, when you go to kuwait for instance, you go to kuwait, when you're american, people are like thank you, thank you. in one sense we did save their country from being attacked and overtaken from saddam hussein. saddam hussein was a bad, bad man. n

. >>> i'm ali velshi, accused of the worst massacre in europe since the nazis, war crimes suspect ratko mladic in court, disruptive and combative. the judge throws him out of the courtroom. we'll explain on this "american morning." >>> good morning, ali. welcome to "american morning." >> good morning. >> it is monday, the fourth of july. i'm hoping you're having a wonderful day off. kiran is off today. >> she's enjoying the fourth of july. we're following breaking news. six people are missing after a small boat carrying mostly americaning sank off mexico's baja, california, peninsula. officials say 44 people were on the boat when it left the port of san fell lee pe. we're told the boat hit rough weather and sank almost immediately. 37 people have been rescued and reports one person has dead. joining us is a petty officer from the u.s. coast guard. we spoke last hour, you told us 37 people had been rescued and i know the sun is not up yet, so i don't know if you have any more information since last we talked but give us the situation. >> good morning, ali. yes, the coast guard is prepari

. >> tonight in the last hour or so tonight, europe time -- it's late evening here or late afternoon, rupert murdoch put out a statement. he described the paying of the police, and he calls it deplorable and unacceptable. to give perspective to you, suzanne, we're not talking about little newspapers, the news of the world is the biggest selling english newspaper in the world. he has the times of london, and the new york times, and the sun which is britain's biggest selling national newspaper. and in the states, it's the post and fox news and fox channels, and in australia, it's the australian newspaper, and it's the sunday mail. so on and so forth. when one of the prime properties is caught up in such an egregious scandal, that's why this is making news. >> richard, are the advertisers starting to pull out now? >> yes. and this is really fascinating. ford motor company straight out of the bat canceling their ad in news of the world. one or two others, the halifax buildings -- banks savings and loans are dancing around it. but there are a number of advertisers who are wishy washy, and

we have differences definitely, it's a cultural gap between united states and all europe, between united states and france in particular. the french still have in their mind the pictures of television, when strauss-kahn arrested by the police, by two policemen. having the handcuffs and everything pushed into the car. the impression they were working at the new york police department theory on television. and all of a sudden now they say, come on, prosecute events, the men who pushed into rikers island prison now comes up and say the house -- the maid at the soffitel hotel is not reliable, she's lying. so the french say, my god, what kind of justice do america have? >> sure, but like you say, it happened here in the united states. have you to respect the u.s. justice system. i want to point out this poll coming out tomorrow, saying 54% of the french do not want strauss-kahn to run for president. back to the socialist party here, why is it that the socialist party seems willing to bend its own rules? maybe change that july 13th deadline to allow a little more time to determine whether this

i go to europe every year, when i am in italy, i do rock the mankini. let's call it something else, speedo is a corporate name. equality, women get to be comfortable, that sand gets just as uncomfortable for men as it does for women. america needs to get over its obsession with masculinity and let us wear tight shorts at the beach and the pool. >> well, skinny bikinis, aren't you supposed to be able to wear skinny bikinis at the beach? >> well, you know, i'm seeing just as many of the gentleman out there who could use a bikini top as the ladies. i think if we all just had a healthier notion about bodies and what is right -- a lot of people look somehow less scandalous naked than they do when they're wearing a bikini top. it all dependses on the body image. >> it's not what they wear, it's what they do. i was just at the public pool, a lady with a clipping her finger nails. if i'm at the beach, give me about six feet of space. wear whatever you want but don't do whatever you want. that's the problem i have. you can always look away otherwise. >> you stil

the problems in greece and europe along with uncertainty over whether the debt limit here in the united states will be raised have also made businesses hesitant. the economic challenges that we face weren't created overnight and they are not going to be solved overnight the american people expect us to act on every single good idea that's out there >> joining me now, our senior economist at the liberal-leaning center and the eastern economics writer for the "wall street journal." i want to start with you the president points out there a lot of reasons for these numbers. i want to show you a recent poll. asking americans who is most to blame for the condition of the economy. the bush administration it top at 26%. wall street, 25%. congress, 11 well%. obama administration, 8%. does that size up where you think the blame falls now? >> well, look. there is no question that barack obama inherited this crisis and george bush deserves some of the blame if not all the blame for getting us into the crisis in the first place. the problem for president obama is all the things he has done to get us

for at least five hours and had asked for an egg sandwich, asked for coffee, said he wanted to call europe because he had a meeting with the german chancellor angela merkel the next day, never asked to speak to a lawyer. said his handcuffs was too tight. why didn't the new york city police department with those very fine and experienced detectives of the special victims squad attempt to ask dominique strauss-kahn whether he had attempted to rape or sexually assaulted the victim. it does not make sense. it is policing 101. that when you have a suspect in custody for a very serious crime of rape, murder, robbery, one of the first things you do is you try to get them to make statements. they didn't do that in this case. instead, for five hours, he sat there and no one had the guts to go up to him and ask him whether he had committed these acts. on his own at 9:00 that night, dominique strauss-kahn said, i want to speak to my lawyer. can i have my cell phone. >>? and he spoke to his lawyers, hung up and at that point, detectives said, do you want to talk about the incident? he said, i was all

look what's going on in europe. so we've got to keep our eye on the ball, and we've got to cut spending, we're negotiating spending cuts right now. so this thing will play itself out. it's a little fluid right now. >> i want to be precise. if in fact they do reach a deal, the leadership, are you one of those republicans at the house who will theory kale vote in favor of raising the debt ceiling? >> i'm not one of those people who says under no circumstance will i vote for an increase in the debt limit. those of us who voted for budget before, debt element increases were done, that's how it used to be done. if we get a decent package, then i will vote for it. i've been saying all along, i think it's dangerous for the credit markets and the economic to raise the debt limit without any spending cuts. at the same times, nobody is looking to see it default. we have to get a down payment and that's our deficit the debt. the more we can do that, the better off our economy can be, because we can remove this huge cloud that'

free, and they didn't want a repeat of what happened with movie director roman polanski who fled to europe after pleading guilty to having sex with a minor. the former head of the sex crimes unit said while there are hard lessons learned, she doesn't find fault with the way the case is handled. >> seemed like they had a credible witness, believed by co-workers, police, medical personnel and social workers. they found her very credible and supported by forensic evidence. and they were in the unique circumstance of having a foreign national who could leave the country and go to a country that has no extradition agreement with us. the d.a. could have faced criticism if straus kahn fled the u.s., but says regardless there is damage. >> i think in the end, strauss-kahn's case is dismi dismissed, i think the hopes of a lot of people who thought this case would be an example of how a democracy brings even a rich man to justice on the charges of a very poor woman, that sort of view, very flavorable view of our system has now been destroyed. >> he says, though, on the other hand, the fact that the

coli outbreak in germany and france. 49 deaths have been reported in europe. >>> well, talk about the right place at the right time. this is an amazing story. a toddler tumbles out of a 10th floor apartment window in china. a woman passing by catches the girl. witnesses say she kicked off her high heels and ran to catch the baby when she saw her dangling. the toddler is in critical condition with internal bleeding. the force of the falling toddler knocked the woman out and left her with a broken arm. >>> back to our lead story and the most-watched murder case in years. the jurors are considering seven charges against the florida woman accused of killing her 2-year-old daughter. david, any sense of how the deliberations are going today? >> reporter: they are going just as they are supposed to be if that quietly, behind closed doors. we do know at this point that the jurors have not asked for any additional information from the court. they have not had any questions of the judge. they have not asked to see if any audio or visual evidence that they would have to go to the courtroom to se

. >>> doctors in europe may have hit on a medical breakthrough. an artificial organ grown in a lab using a man's own stem cells. >>> here's a reminder about your choose the news stories today. you can vote for your favorite. text 1 for injured vets skydive, a disabled war veteran encourages others to stay fit. 2230 russian radio in d.c. russia reaches out to americans by hitting the air waves, or 3 for japan's carnivore girls. how a raw meat sushi fad mirrors changing gender roles in japan. winning story will air in just ten minutes. >>> well, a cancer patient who was given less than a month to live now has a much better outlook thanks to an artificial organ grown with his own cells. senior mel correspondent elizabeth cohen is here to explain what it all means. what did the doctors do? >> this man was really at the end of his road. he's 36 years old. he had this huge tumor on his trachea, but like many, it was caught really late. they treated him, but they could do nothing more. they said you need a trachea from that cadaver, that line is so long,

the problems in greece and in europe, along with uncertainty over whether the debt limit here in the united states will be raised have also made businesses hesitant to invest more aggressively. >> you hear the president mention the debt limit there. as you know, he's searching for a grand bargain with republicans in congress to slash future deficits while raising the amount of u.s. can borrow. if not raises by august 2nd, the u.s. risks a first-ever default on some of its obligations. as for unemployment, the bloomberg poll from last month shows 38% of americans approve of the president's efforts to create jobs. almost 6 in 10 disapprove. >>> other stories we're keeping a close eye on now. alabama, civil rights groups filed a lawsuit today challenging the new immigration law. the law, which is seen as the toughest in the nation, signed by governor bentley last month and is set to take effect september 1st. the lawsuit claims alabama's law would subject residents to criminal penalties for innocent daily activities ump such as giving a ride to a neighbor, hiring a day laborer or rentin

the problems in greece and in europe along with uncertainty over whether the debt limit here in the united states will be raised have also made businesses hesitant to invest more aggressively. the economic challenges we face were not created overnight, and they are not going to be solved overnight. but the american people expect us to act on every single good idea that is out there. i read letter after letter from folks hit hard from this economy, and none of them ask for much. some of them pour their guts out in the letters, and they want me to know that what they are looking for is that we have done everything we can to make sure that they are rewarded to living up to the responsibilities, and they are doing right by their communities and they are playing by the rules. that is what they are looking for, and they feel like the rules have changed. they feel that leaders on wall street and in washington and believe me no party is exempt have let them down. they wonder if their efforts will ever be reciprocated by their leaders. they also make sure to point out how much pride and faith they

like somalia and yemen will al qaeda is on the rise and making a lot of effort to try and strike in europe or in the united states. so these new secret operations, the war on terror 2.0, front and center, for both of these men. but for panetta, also, he has to find a way to cut $400 billion from the defense budget' get u.s. troops out of afghanistan and out of iraq and speaking of iraq, june has been the deadliest month for u.s. troops in iraq in two years. a fact not lost on the new secretary of defense. >>> a few minutes away from this. barbara, leon panetta will do things his own way and a little bit different. i love this. he is going to bring his golden retriever to work. >> reporter: there is bravo, the wonder dog, who we will introduce everyone to i'm sure the coming weeks and months. bravo is an absolutely gorgeous golden retriever! you see him there with panetta and mrs. panetta at a ceremony. this is just the world's most gorgeous dog! bravo went to staff meetings at the cia, around the secret hallways with the director when panetta was there. he is described by cia operatives as

similar to what we're seeing happening in europe. but definitely a bigger reaction than the one we've seen in europe so far. banking stocks really pushing to the upside. among them hsbc and standard chartered putting on a very good showing. china's biggest bank is expected to post a profit exceeding $31 million this year. they made that prediction on thursday. he also said the bank should deliver earnings growth of at least 21% for 2011. he said the bank's business is booming thanks to its diverse revenue sources and surging economic grouchlkt his projection is pretty much in line with expectations. icbc's shares closed 2.1% higher. >>> on wall street they had plenty to digest. alison kosik has the latest. >> the across-the-board gains came iowa after a big headline. it helped offset lackluster read on the jobs front and that deal on the greek debt crisis provided a spark as well. at the close, the dow surged 152 points to and at 12,724. the sixth triple-digit gain in three weeks. 29 of of the 30 companies ended higher. the nasdaq an