good morning. it's tuesday, july 26th. this is your a.m. wake-up call. i'm ali velshi joining you live this morning from new york. one morning i'm going to tell you this whole debt ceiling mess is over. this isn't the morning. the president and the house speaker made their cases to the

nation last night. two men and two parties clearly are not on the same page. it's possible they're not even reading from the same book. here's the president, the speaker of the house and then a quick word from cnn's senior political analyst david gergen. >> temporarily raise the debt ceiling will force us once again to face the threat of default just six months from now. in other words, it doesn't solve the problem. >> i want you to know that i made a sincere effort to work with the president. in a manner that could secure bipartisan support and be signed into law. and i'll tell you, i gave it my all. unfortunately, the president would not take yes for answer. even when we thought that we might be close to an agreement, the president's demands changed.

>> you got the two plans that are out there. are ultimately horses that you can ride all of the way to the finish line and the issue becomes, what comes after them? and can you get it done before monday or tuesday next week? i i think we're heading through a two-week, three-week extension of this fight. to allow this fight to play out. >> so, the president asked people to pressure their congressmen or women to compromise. what happened? websites crashed. left and hand. republicans and democrats. senators and representatives. including house speaker john boehner and minority leader mitch mccon mel. you're going to hear some amy winehouse news as the day goes on. her funeral is today. it's a private and small event, with family and friends. it could be weeks before we know how the 27-year-old died.

her big comeback last month didn't go so well. hln's dr. drew said that she needed more time outside of the spotlight to get her life together. >> what they need to do is drop out and not worry about their job. if many months or years before they return to something like touring for a musical performance. >> okay, let's talk quickly about the suspect in the norway killings, anders behring breivik. he reportedly admitted that he carried out friday rampage. he claimed that the attacks were necessary to combat the colonization of norway. he said that his son must be mentally ill. >> translator: i'll never have more contact with him. in my darkest moments.

whether than killing those kids, he should have taken his own life. now i'm going to put a monster sum on the money on the screen and i'm going to use the viewer discretion line. because the figure is shock ingly big. $130 billion. roughly the gross domestic product of new zealand. it's the amount of u.s. businesses will spend this year during with data breaches, cyber crimes. the security research company said that's more than tripled than companies spent five years ago. do you want to hear the transportation secretary of the united states get mad? well, this story did it. you might not appreciate it, either. congress hasn't reauthorized the faa the agency is losing about

$200 million every week in taxes. many airlines have increased fares, now listen to ray lahood. he's madder than a first class passenger who gets a warm mimosa. >> they're charging the public for a tax that doesn't exist. and putting it on their bottom line and almost every airline, except for one, made money last year because of baggage fees, because of pillow fees, because of blanket fees, because of food fees. >> it appears that investors aren't allowing the debt stalemate in the way here. checking the markets today. the hang seng and the nikkei opened up. the markets are up despite no good news in washington. what's the talk in hong kong.

>> green arrows across the board here in asia. as you mentioned, hong kong hang seng closed up half a quarter. the same time the yen reached its strongest point against u.s. dollar since the march 11th quake and tsunami. in europe, there was a positive start to the day, it's a mixed picture now. gains for the ftse. switzerland's biggest bank reported its profits were down about a 1/2. >> smart money is bting that washington will do the right thing. an interesting headline from forbes magazine contributing writer, saying friends don't let friends become chinese billionaires. >> it's a great headline. this comes from a most

interesting article from the china daily. according to the paper, unnatural debts have taken the lives of billionaires in the past years. 19 died from illness. seven died from accidents and 14 were executed. so, according to ray's math, a chinese billionaire dies every 40 days. ali, there seems to be a replenishing supply. last year, china had 64 mi billionaires. >> let's go to jacqui jeras live from atlanta. we need to worry about the flight delays. a lot of them today. our weather headline this morning, there's going to be a lot of pop-up showers and

thunderstorms across much of the eastern part of the country. they'll produce some really heavy downpours. we're started out this morning with low clouds in new york city and boston. so, some delays expected there. thunderstorms expected for new orleans and atlanta. denver, boy, you have had it pretty much the last week or so with these pop-up thunderstorms in the afternoon. that will be the case again today and san francisco has had quite a few delays the last few days with that morning fog. so, as we take a look at the big picture, you can see we're expecting showers and thunderstorms, we have to be concerned that some are going to be severe. and some of that will probably happen in the northeast, too. the heat, oh, yeah, it's still out there. mostly focused on the nation's midsection as we head into the

number of consecutive days, 20, where numbers are in the triple digits in dallas. 96 in kansas city. there's a nice 81 in boston. but you got some rain to deal with. under the grips of the heat wave for two weeks, longer than that into parts of the plains states. it's hot in other parts of the world, in japan, where they're still dealing without electricity after the tsunami and earthquake there. people are getting creative in trying to stay warm. there's been a huge surge in products, a fan in the knot of that tie and the shirts are the most popular ones. they cost about $130, u.s. dollars, anyway. >> that is brilliant. >> and then it protects you from the sun, too. >> the japanese are good at that. when they're here the women are

wearing those par sols, nicer versions of umbrellas. they're used to it. thank you so much, jacqui. safe for the environment and safe for the people inside. the crash safety test. but here's our quote of the day -- there's something profoundly wrong in washington. end quote. find out who said it coming up after the break. ten minutes after the hour. it pays to switch, it pays to discover. [ male announcer ] get ready for the left lane. the volkswagen autobahn for all event is back. right now, get a great deal on new volkswagen models,

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like new splenda® essentials™ no calorie sweeteners. this bowl of strawberries is loaded with vitamin c. and now, b vitamins to boot. coffee doesn't have fiber. unless you want it to. get more with new splenda® essentials™, a small boost of fiber, or antioxidants, or b vitamins in every packet. same great taste with an added "way to go, me" feeling. new splenda® essentials™. get more out of what you put in. look in this sunday's paper for a three dollar coupon. it's 13 minutes after the hour. now back to our quote of the day, there's something profoundly wrong in washington, quote, end quote. mayor michael bloomberg said this about the debt ceiling. >> the united states of the america has come this close to defaulting on its debts, a failure that would have

disastrous economic consequences, especially for new yorkers. there's something profoundly wrong in washington. just the fact that we're talking about the possibility of default is putting doubts in minds of people around the world that will stay there for a very long time. is captain america going to save us from debt. >> captain america the good news, it made 65 million there are. the bad news, captain america owes captain china $14 trillion. can a deal be reached. or is this atmosphere just poison snd captain america! [ cheers and applause ] >> we raised the debt ceiling 17 times under reagan. five times under h.w. bush. seven times for george bush.

it's as effortless as this. >> there's nancy pelosi, john boehner. okay, go over there. there's harry reid. mitch mcconnell. freeze it right there. harry reid and mitch mcconnell can't agree on a budget? they obviously agree on everything else. why can't you agree on this? all right, time now for your political ticker with tim farley host of morning brief on sirius xm. joining us live from washington today. i don't even know the question i can ask you this morning. what is it going to take? what are they going to do? >> you know, i kind of go to the david gergen because he's so smart about this because there's going to be some sort of

short-term thing. the president has to sign something to avoid the default. i also think when jessica yellin reported last night, something that the president did not say last night, he did not use the word veto n some ways he's got an escape clause if he has to sign something a bit distasteful just to avoid the worst that could happen. so, i do tend to lean toward that short term. how we get there is still a question mark. that i think pretty much is the consensus in washington, d.c. we just don't know. >> one thing is complicating this particularly on the republican side, given the innuance of the tea party, there's a presidential campaign nomination campaign still going on. it's heating up in iowa right now. >> exactly. we heard a bit of partisan ship

last night. some things to watch. michele bachmann and tim paw lenty have been trading barbs. the straw poll is just a couple of weeks and there will be an open ballot. governor perry, not a declared candidate, perry from texas could wind up getting some votes. lot of fund-raising and campaigning in iowa. mitt romney is in washington, d.c. at a lawyers for romney lunchon. >> we'll keep on talking to you, tim farley. tim v a good show this morning. even if lawmakers come to a debt ceiling agreement, two major credit agencies threatening to downgrade our

credit rating. what would that look like? treasury and bond rates could go up. it could affect your house, credit card. one slice of the pie. your home loan, assuming you got a variable rate loan, you might see interest rates go up on your mortgage. more homes may end up sitting on the market. prices on old homes could slide even further in this already depressed market. if you want more information about how a debt downgrade or a debt default in the united states could act your, your car loan, your student loan. the all-new electric leaf won the top crash safety rating. that puts the leaf on par with

its main competitor the chevy volt, which is a plug-in with a gas backup. both cars have been named top safety picks. two out of every three new york city roof tops are thought to be suitable for solar panels. city hall say there is a slew of nirnt ti initiatives on the table. building to building. financial incentives on top of existing state and federal subsidies. if you're looking for that exlewisive facebook ipad app, it's closer than you might think, tell you about iphone. but first, it's national day of all or nothing. so, go big or go home. 20 minutes after the hour. really?

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22 minutes after the hour. here are three things you have to be on your radar waiting for developments on capitol hill. the debt negotiations don't seem to be going anywhere. as soon as something happens we'll bring it to you. at 10:00 a.m. eastern, the postal service is expected to list the postoffices to be

closed down. all right, let's go around the world. a big human trafficking raid in mexico. over a thousand people arrested. 20 girls rescued. this is huge. what happened? >> it is. police basically raided bars, hotels, boarding houses and they arrested a thousand people about 500 men and 500 women and they rescued 20 female miners. all part of mexico's amber alert program, dedicated to trying to find missing children. this happened just on the border with texas. >> which dan brown book i read about, there's reality, so-called search for the god

particle? apparently this is developing. not just the stuff of novels. >> they're looking for the god particle. scientists deep under ground in switzerland, they want to crash two beams of particles in opposite directions at the speed of light. they say they're pretty close to finding it. by the end of 2012, it could happen. if it does happen it would be incredible. what is the universe made of? who are we? how did we get that? all of that stuff that you like to think about all the time. >> and a huge source of energy is this what we expect to be a huge renewable source of energy. i think it was angels and demons, my producer told me.

hey, listen, they haven't tried it. consumers are getting excited about the iphone 5. more half those asked plan to buy the new smart phone in the first year it's out. when is that going to be? apple is not saying. so, hopefully, some time soon. see what those gloved hands are holding. that is a transparent lithium ion battery. researcherers at stanford came up with it. fear not, you can call it to help you find it if you lose it. waiting for that facebook ipad application, the wait is over, kind of.

techies who have seen it it looks more modern than the old iphone version. the official slaunch still down the road. all right, moved down to downtown detroit. sounds pretty good? there are some requirements the deal on the table for thousands of motor city workers. we'll spell out the plan in a minute. today's businessman special is a rubber duck. we'll tell you why after the break. for broccoli, say one. for toys, say two. toys ! the system can't process your response at this time. what ? please call back between 8 and 5 central standard time. he's in control. goodbye. even kids know it's wrong to give someone the run around. at ally bank you never have to deal with an endless automated system. you can talk to a real person 24/7. it's just the right thing to do. but i did.

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good morning. it's tuesday, july 26th. i'm ali velshi joining you live from new york. it's 30 minutes after the hour. president obama versus house

speaker john boehner. the debt ceiling hit primetime last night. they sparred over competing plans. president obama still wants a long-term solution. speaker pushing a two-tiered plan. >> you know what people are fed up with most of all, they're fed up with a town where compromise has become a dirty word. >> the sad truth is that the president wanted a blank check six months ago and he wants a plank check today. this is just not going to happen. >> in one week on august 2nd, america may not be able to pay all of its bill. here's chief white house correspondent jessica yellin's take. >> it was about point scoring for both of them. playing to their base, trying to get their own teams to fight the other. and all of this spells impasse with about a week to go.

this doesn't move the ball forward. coming up in the 7:00 hour of america morning, i'll speak to gene sperlg. i'm going to ask him what is next in this fight. the hotel maid of accusing dominique strauss-kahn of sexual assault will meet with prosecutors tomorrow. the 32-year-old woman is speaking publicly for the first time. about what happened in that sofitel hotel room. dominique strauss-kahn said that the encounter was consensual. anderson cooper talked to the news week reporter who interviewed the maid. >> i thought she was very believable when she was talking about the incident itself. the alleged attempted rape and sexu sexual assault. she told that story many times and also, we know almost all of

the physical everyday supports her case. >> strauss-kahn is charged with sexual abuse, pleading not guilty on all counts. a small private funeral is planned for singer amy winehouse. still no indication what killed the 27-year-old five-time grammy award winner. toxicology tests could take weeks. but if you need proof of winehouse's worldwide impact. here it is. there's been a 37-fold increase in her album sales since saturday when she was found dead. she has a reportedly unfinished third album. >> the demand would be absolutely huge. >> winehouse hadn't released an album in four years. innocent spouses who didn't

know their spouse cheated on the taxes. if they failed to file for relief within two years. moving to a apartment in downtown detroit, $2500 in rent. that's the deal on the table for thousands of workers at five major companies in the motor city. bulk the population of downtown detroit. let's get to christine romans live here in new york. a whole bunch of people are saying, if there's no deal tomorrow morning, markets are going to be tank. asian markets closed higher. why? >> well, you know, markets think that's something going to happen. they think that washington is

not going to shoot itself in the heart even though they're very concerned about the long-term fiscal health of this country. also when we see markets, what do we mean? stocks? bonds? currencies? all of these markets are acting differently depending on the mood of the moment. we're looking at stocks index futures right now. they're moving up a little bit. that's because, markets watching carefully to see what happens next. a two-tiered deal. or harry reid plan may go through. but still waiting. >> on top of that, we have earnings. report cards for companies in america. >> what they're reporting many of the companies, their profits are going up. their rev news are going up. they held cost down to the bone for a very long time.

they're concerned about the economy. we'll be watching today for, let's see glaxo, ford, radio shack, some 41 different companies. amazon also on here. we'll be hearing from those different kinds. different pulse on different parts of the economy later on today. >> going back to your distinction about markets, stock markets seem to be doing okay. dollar and treasury, however, are sinking. >> that's right. i think that's where you're going see the whole reaction. a ten-year note yield hovering around 3%. 3% for ten-year money. can you imagine -- you would have thought in all of these months of concerns about our fiscal problems those yields would have moved higher. one of the reason, this is a fascinating discussion going on for the past couple days, what happens with yields if there's not a deal? do you see yield spike higher

and bond prices tank? that's kind of an interesting thing that's playing out. >> which leaves it -- makes it clear that we don't know what's going to happen. christine, good to see you. now back to today's businessman special. the rubber duck, it helped a colorado couple bring in million in sales. $2 duck into a multimillion business, you grab on to people know and love and leverage that. ♪ rubber duckie, i'm awfully fond of you ♪ today's get smart question, what percentage of american men are not working? 10, 20 or 30%.

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40 minutes after the hour. now back to our get smart question, what percentage of american men are not working. 10, 20 or 30%? the answer is b, 20%. one out of every five men are not working according to fortune magazine. they're quote, either collecting unemployment or getting by on paychecks from wives or girlfriends. dan, you were watching it last night as we were the president's speech, then john boehner's response to it. what do you make of it, whether a deal is within reach? >> it looks very difficult now for this deal to happen. at this point, you would expect that there would be some kind of compromise, leaning towards an

treatment, it almost feels like there's a broken record here. that the narrative hasn't changed really over the past few months. republicans are digging in, they don't want any kind of plan that calls for tax increases and the president is saying that you need some kind of revenue that wealthy americans need to carry some of the burden here that any kind of deal should not impact a hardworking middle class americans and senior citizens. so, what you have now is essentially two different plans. harry reid's plan, looking at raising the debt ceiling through the end of 2012. john boehner's plan, which is looking at a two-tiered system. raising it this year and raising it again in 2012. you have one side calling it an impasse. the president saying that last night. the speaker saying it's not a

impasse. a difficult situation. but one thing that everyone realizes that the clock is ticking. time is running out. the consequences of not acting is immense. >> could be catastrophic. dan, we'll continue to talk to you throughout the morning. dan lothian, our white house correspondent. three things have on your radar. 10:00. new home sales numbers for june are expected to be released. the united states postal service expected to release its lists of offices to be shut down. 10 a.m., july's consumer confidence report will be released. consumers are going to be less confident than we anticipate. more football players and owners in washington, this deal may get done. the nfl ended its lockout. here's the head of the players

association. >> i believe it's important that we talk about the future of football as a partnership, but i'm proud of the men that you see behind me, i'm proud of the former players that stood with us and most of all, i dig our fans who love our game. >> and if you thought talladega nights was just a movie, listen to this prayer before a race at nashville speedway. >> thank you, goodyear tires that bring performance and power to the track. lord, i want you to thank my smokey hot wife and our go children. may put on a performance worthy of this great track.

>> amen. as a matter of fact, the pastor did get the idea from the movie talladega nights. that was a prayer. on this date in history, july 26th 1948. trueman signed a racial segregation ending in the armed forces. he's low fat, too, and has 5 grams of sugars. i'll believe it when i--- [ both ] oooooh... what's shakin'? [ female announcer ] as you get older, protein is an important part of staying active and strong. new ensure high protein... fifty percent of your daily value of protein. low fat and five grams of sugars. see? he's a good egg. [ major nutrition ] new ensure high protein. ensure! nutrition in charge! 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

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47 minutes after the hour. good morning. this is your a.m. wake-up call.

i'm ali velshi joining you live from new york let's go around the world with zain verjee, what a remarkable story developing a big human trafficking ring in mexico. >> this happened in ciudad suarez. they managed to rescue, ali, about 20 female miners. all part of a big operation on human trafficking that mexico has been pursuing. they called it operation amber alert a program created to find missing children. >> let's talk about another topic that we're dealing with today, amy winehouse, we're expecting her funeral to take place. it's going to be a small event. still results of her death not conclusive. >> what the police are saying, it will take any time between

two to four weeks to get the results of further toxicology reports. she's jewish. they do funerals as soon as possible. it's going to be today. there only going to be family and friends. it's not clear any of the specifics about it. but it is going to be today as what we have been able to confirm. ali, her album back to black is shooting very rapidly up the charts in the u.s. as well as here in the uk. ali. >> everywhere you go, you're listening to news, you're hearing her music now. lot of it being played, it's so distinctive, you know it's amy winehouse. she doesn't sound like anybody else. and her distinctive sound is being played a lot.

all right, one morning i'm going to tell you that the whole debt ceiling mess is over, sadly this isn't. the president and the house speaker stated their cases to the nation last night. the two men, the two parties aren't on the same page. they may not even reading from the same book. here's the president, the speaker and then a quick word from david gergen. >> the plan that boehner unveiled today, temporarily raise the debt ceiling, will force us to once again face the threat of default six months from now. in other words it doesn't solve the problem. >> i want you to know that i made a sincere effort to work with the president to implement the principals of cut, cap and balance. i'll tell you, i gave it my all. unfortunately the president

would not take yes for answer. even when we thought we might close to an agreement the president's demands changed. >> ultimately, horses that you can't ride all of the way to the finish line. the issue comes, what comes after them and can you get it done before monday or tuesday of next week? i think we're heading toward an extension of this fight. i think the president will accept some sort of an extension for two to three weeks to allow this fight to play out >> in his speech, the president asked people to pressure their congressmen or woman, what happened? house and senate websites crashed left and right. most are back up this morning, however. the suspect in the norway massacre, anders behring breivik hes spending his first day in solitary confinement. he reportedly admitted that he carried out friday's rampage, he claimed that the attacks were to combat quote, the clonization of

norway by muslims. >> translator: no, i won't more contact with him in my darkest moments. whether than killing all of those people, he should have taken his own life. okay, i'm going to put a monster sum of money on the screen with lots of zeros. $130 billion. you know what that is? roughly the gross domestic product of new zealand. the amount u.s. businesses will spend this year dealing with cyber crimes and other virtual violations, that's more than triple what companies spent just five years ago. let's go to jacqui jeras live in atlanta. >> most of the flight delays are in the afternoon and mostly due to thunderstorms that are going to pop up and bring some heavy downpours.

new york and boston, expecting some low clouds this morning. atlanta, new orleans, those at least could be heavy this afternoon. miami, tampa and orlando, 30 minutes or so. and denver looking at thunderstorms. a little fog out there in san francisco. some of the thunderstorms could be severe later today across the upper midwest and the northeast. hopefully, they'll steer clear from some of these biggers cities. temperatures stay hot across the country's mid sx. ali a little off the beaten path, but do you have dog? >> i have had dogs in the past. >> do you think they're smart you know what, dogs have the developmental ability of a 2-year-old. they can learn as many as 165 words.

>> the dogs i have had -- >> you can teach it right. commands up to 165. we're not -- man's best friends, they're not living up to their ability. >> living in atlanta, a lot of my colleagues have dogs. people have space more than they do here in new york. love dogs. 165 words. we'll see you on american morning. a look at the word of the day. two words, bond auction. find out what it means and why you need to know it right after this short break. it's 53 minutes after the hour.

57 minutes after the hour. now back to the word of the day, bond auction. it's the regular process by which the government raises money. investors basically buy up a chunk of government debt in competitive bids. uncle sam has to unload bonds at a place that will make buyers willing to bite. if prices deep because demand for u.s. bonds go down, interest rates spike. that costs the government more money and ultimately it costs you and me more money. two credit agencies are threatening to downgrade u.s. debt. if that happens, brace yourself for a big-time drop for the value of our bonds. what's in store for u.s. markets today. let's go to carl evans. earnings and economic

indicators, carter. >> the house price index, expected to see a decline of 4.5% and how people are feeling about the economy with consumer confidence numbers and new home sales we're expecting a slight decrease there. of course, this is the lead story on cnnmoney.com. you're probably going to see debt ceiling on the front page at least for the next couple of days. ali, it's basically we're hearing the same thing over and over again. lot of people are saying that the politicians are using the debt ceiling in order to get their political needs fulfilled. >> i'm telling people as much as i can these days, go there, it's a lot of the same, but a lot of very specific explanations as to what happens to your money, investments, loans and all of those things in the event that there's some sort of default.

it's helpful information for everyone to have. you're watching a bunch of earnings today. a busy day on wall street. >> yes, we also heard from netflix after the closing bell, you know this stock has been on fire for the last year or so, it reached 300 last week. but last night's numbers, yesterday's numbers disappointed investors. revenues came in short. netflix customers are furious with the company, because the company just raised prices by 60%. finally, today, gold at an a all-time high, $1624. ali. >> carter, one of those netflix customers, not only did they raise prices, you have to opt out. carter, we'll check in wit