>> alan: theres anxious anticipation as we wait for the impact america's downgraded credit rating will have on wall street. >> as the asian markets opened, world economies waited with anxiety about what the u.s. credit downgrade means. the white house spent he weekend pushing back, but standard & poors, the defended its move. >> we've been saying for some time about the fiscal trajectory of the united states was on a bad path. >> reporter: two of the three major agencies which highlight

investment risk give the u.s. a aaa score. s&p issued a aaa-plus, siting the debt. >> the political gridlock in washington leads us to conclude that policymakers don't have the ability to put the public finances of the u.s. on a sustainable footing. >> many policymakers and analysts say that's wrong and question standard & poors' credibility. the agency said mortgage-backed securities, the same one that brought the u.s. economy to the brink, as safe. >> now they come in as if they're this bastion of contributingness when they're wrong. >> the government can't pay its debts. >> the government points out there was a $2 trillion mistake in s&p calculations and told abc

news the downgrade was, quote, amateurish. >> there's concern that fannie mae and freddie mac could be downgraded as well. abc news, washington. >> alan: today, timothy geithner told president obama he will continue his job as treasury sect. he released a statement confirming he was staying onboard. lawmakers are having a war of words over who is to blame for the country's lower credit rating. some top democrats are blaming the tea party, and some republicans are praising the antitax group. >> i believe this is without question the tea party downgrade. the tea party downgrade because a minority of people in the house of representatives, countered even the will of many republicans in the united states senate who were prepared to do a bigger deal to do $4.7 trillion. >> tea party's come to

washington talking about reducing spending. thank god we're here. this is the first time we raised the debt ceiling and tried to reduce spending. >> alan: the credit downafraid sparked fears in europe where they're dealing with their own economic crisis. officials agreed to implement a bond purchase program in italy in spain. the program could boost both countries bond markets. italy and spain are trying avoid financial catastrophes in greece, ireland and portugal. >> governor jerry brown criticized washington's partisan politics today. >> it's obviously dysfunctional, and more than that, the washington of today is suffering and experiencing a governability crisis. you can't govern when you have two parties so diametrically opposed. that's an ominous sign going

forward. >> alan: governor brown faced a similar problem after failing to get republican lawmakers to let voters consider tax hikes. he says those will result in cuts to highways, hospitals and schools. >> abc 'has learned a patient as napa state hospital has attacked another staff member there the litest attack took place last night. the union representing psychiatric technicians tells us the worker was punched and choked but did not need to go to the hospital. the hospital kept unit t-3 under lock down until this morning. a union representative did not know if the patient had been arrested. this comes after a patient killed a staff member last fall. the patient was found guilty just last week in the murder of the psych tech don in gros last october. napa state hospital houses many criminally insane patients. >> in san san jose police say

they arrested a man who admitted stabbing and killing his girlfriend. he was arrested at his apartment this morning. officers found a woman they identified as his 43-year-old girlfriend, with multiple stab wound. she was pronounced dead at the scene and police are still investigating the motive. police are investigating another deadly stabbing in san jose's roosevelt park. it happened within minutes of the other attack. officers received a 9-1-1 call from a man who said he had been stabbed. he was pronounced dead at the scene, and no suspects have been identified. the stabbings are the 27th and 28th homicides in san jose this year. san francisco's interim mayor ed lee is expected to announce he will be a candidate for a four-year term. the san francisco chronicle records lee will run even though he said he would not, and he will do it without using any public money to finance his

campaign. he says using public money is not something he feels comfortable doing right now. campaign spending reports show that the other nine candidates have collected more than $3 million in public funding. you've probably seen them pedaling along the embarcadero, the pedicabs with tourists. now a war is brewing between the licensed pedicab companies and new company accused of operating illegally. here's more from the embark dare row. >> reporter: this is a slowly escalating pedicab war. this pedicab driver behind me and those like him say they have to pay more than $300 in licensing fees in order to operate a pedicab. now they claim a new company, west coast pedicabs, is hiring unlicensed foreign students to operate its cabs and now they claim that company is endangering tourists. they pedal back and forth every day, ferrying tourists to popular sights.

these italian tourist loved their ride to pier 39. >> wonderful, wonderful. enjoy with the bike. >> reporter: but established pedicab operate yard say an upstart company is allowing unlicensed drivers to transport tourist in their pedicabs. >> all pedicab operators in the city pay over $300 to get a permit to operate, and it's my understanding the other drivers don't have those permits, so i start to wonder, why did i pay $300. >> reporter: three companies operate on the embarcadero. the san francisco pedicab, cabrillo, and golden gate pedicab. he says there are specific rules of operation, including licensing the cabs, getting a permit, and license like this for the operator. but most importantly, there are special fares they can charge. >> they charge $100 for a couple to go about a mile, which we can

charge 20-$25 for. >> the alwayses and accusations have been level at west coast pedicab since they showed up on the wharf last month. the owner says it's sour grapes from other companies and they're legal. >> they don't want anyone else coming on their territory. i applied for the permits, carry the proper insurance and have done everything i need to do, and the drivers have applied for licenses and paid all thunder -- all their fees and have done everything they need to do. >> many of his droifers are foreign exchange students from turkey, they have done all they should to continue working legally so they can continue their studies back home. he says no one his people charge anyone for a trip $100. he also showed me some threatening e-mails he was getting from another pedicab owner. there's a permit meeting on

tuesday where he hopes he can work everything it with the other pedicab owners and they can work together peacefully. >> alan: we have some breaking news to report from the north pavement firefighters are on the scene of a three alarm grass fire in benecia, in the benecia community park and is threatening homes. firefighters from vallejo, coast contra costa have been called to the scene. >> coming up, thites of -- i'dtys of some of the navy seals have been released. after hopeful comments from iran's foreign minister, another official is back-pedaling whether the two u.s. hikers will be freed. >> leigh: yes, it has been a rather cool weekend across much of the bay area. signs that some warming will take place.

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>> alan: less than a day after iran's foreign minister said he was hopeful about the tropical of two u.s. hikers detained in iran, the country's ambassador had a conflicting statement. he said iran's judiciary is still investigating the case. yesterday iran's foreign minister gave his support to the uc berkeley hikers detained and said the verdict should be out soon. we are getting new information about the u.s. navy seals and other troops onboard the helicopter that was shot

down in eastern afghanistan. u.s. officials say the team rushed to the area to help an army ranger unit under fire from insurgents. he the crew completed the mission and was flying out of the area when it was hit. the taliban is claiming responsibility for the attack. 30 americans and eight afghan troops were killed. some of the 22 navy seals who were killed have been identified, including michael strange from philadelphia. he was on his third tour in afghanistan. >> protecting our country, and graduated from north catholic, very proud of him. and he succeeded with the seals. he became an e-6 in four years. four years. that's how dedicated he was. >> i just -- something he was trained for, something he wanted. >> alan: the crash was the single deadliest day for u.s. troops in the ten-year long conflict in afghanistan.

>> san francisco was filled with the sounds of the grateful dead today. why thousands were celebrating the life of jerry garcia, and clouds in the bay area today but the sun could be on its way. your week-ahead forerererererere

♪ >> alan: grateful dead fans celebrated jerry garcia's legacy with san francisco's ninth annual jerry day. the mayor absoluted garcia. he would have turned 69 on tuesday. and it was pretty cloudy out there once again. >> leigh: get to see all the tie-dye. >> alan: brighten things up a little. >> leigh: we've been in this very cool weather pattern.

looks like things will start to adjust as we head into wednesday and thursday. so folks get ready for a little warmer weather for you out there. it's been a mild day. that shot from the high definition mount tamalpais cam, and you can see the fog rolling through the golden gate. it has been mild in antioch. the current reading is 83. 74 in livermore. we saw the clouds part and the sun shine for concord today. they're current reading is 79. 59 right now in san jose. some sunshine there. here's a look at the weather highlights for you. it sounds like a broken record but fog and drizzle will move back inland overnight tonight. we'll keep the clouds sitting near the coast tomorrow and break out with the mid-day sunshine inland and then things will change mid-week, that's when the high will build in and we warm up. we actually had a little pullaway of some of the clouds at the coast, at sonoma, a

little sunshine, even had some sun towards santa cruz, so some patchy clearing and all of that is going to move inland, and at 11:00 this is how our forecast picks it up. you can see that penetrating, pushing back inland so the commute tomorrow morning will be a gray one, and we're also going to put in that mist and drizzle. a lot of that last night near the coast and bay, and probably deal with that overnight and tomorrow morning. generally in the mid-to-upper 50s for most locations by early tomorrow morning, 54 for san francisco and napa. livermore, down to 55 degrees. all righty. this is the setup for at least one more day. we have been watching this upper level low. this is our water vapor imagery. keene keep your eyes right there there it goes. just sitting to the north, starting to sag. there it goes. and this bubble of cool air mass is actually going to stay to the north for at least the next couple of days, but it's close

enough to keep temperatures below normal for this time of year. by wednesday, high pressure to the south is going to push this well to the north and that's when we start to warm things up. tomorrow still not a bad day. look for 70s in the south bay. 77 for san jose. at the coast, half moon bay, cloudy, 61. 75 for palo alto. san francisco, 63 degrees. north bay, a lot of 70s. 72 for petaluma. oakland tomorrow afternoon, some peek-a-boo sun for you. 68. interior east bay, 80s. 85 for antioch, 82 for concord, and 70 tomorrow afternoon for watsonville. the next seven days, monday, tuesday, things turn around a little bit. the high will move in wednesday, thursday, and friday. the marine layer thins and means warmer temps. inland temperatures in the 90s, and 60s at the coast.

>> alan: the streak is over, thankfully. >> well, thankfully the phillies are out of town, too. the pitching staff, the giants had their fill of that pitching for sure. this was the last chance for the giant bats to wake up against the phillies as they look to salvage one game in their four-game set with the hottest team in baseball.

>> you got cliff lee, cole hamels, not ease to get out of a hitting slump against guys like these, but the giants' chances

improved today because roy oswalt was making his first start since a lengthy stint on the d. l., and the giants had them on the ropes every inning. giants collected 12 hits off oswalt in six innings. giants finally broke through in the fourth. chris stewart, rbi sickle to center -- single ties the game at one. giants take the lead with this sac fly. 3-1 san francisco. scary moment in the eighth. utley loses his bat and clips tim lincecum in the right knee. he would leave two batters later. said he is okay. one of the better brian wilson impost imposters looked concern, but the real one closes the door. the pirates who have lost ten straight, come to town tomorrow. >> more fallout from friday's

fight. bruce bochy ripping philly radio host. he called bochy a coward because of the bean ball but what ticked off bochy was him referring to ramon ramirez as, quote, an illegal alien pitcher. bruno has now apologyeesed but not without bochy calling the tweet racist. >> tampa bay, the a's facing the rays. they get a little help from godzilla, a two-run bomb by hideki matsui ties it up, step his hitting street to 15 games. evan longoria hits a seventh inge shot. game tied at four. now to the tenth. still 4-4. josh willingham stepped in, and his 17th home run is the difference. 5-4, the a's off tomorrow and head to toronto to play the blah

jays on tuesday. >> while golf fans followed tiger woods' every month in akron, ohio, little known adam scott displayed this greatness. tiger woods, not so much. found himself in the woods on sixth. gets worse. goes from forest to beach. it's a double bogey. 1-over for the day for tiger. winds up in 37th place. adam scott buries the long put on 14, a birdie, and with tiger's fired caddie, stevie williams, on his bag, adam scott wins by four shots. williams pumped up because you know what they say about what comes around goes around. >> at the poconos, brad keselowski was driving with a broken ankle, but his damage -- dodge number 2 card took the lead on a restart and keselowski

took the win. see you at 6:00 with interviews from tim lincecum. >> coming up, thousands of swimmers of all ages braved the cloudy weather for a chance at a championship trophy today. we'll take you to a place where swimming fever h@h@h@h@h@

>> alan: coming up in half hour at 6:00, a three-alarm fire is burning close to homes in ben nearby -- benecia.

a new warning about the economy and how the u.s. credit rating could go down even more. so join us at 6:00. finally, a sign that summer is winding down. there they go. the 55th annual championship meet this weekend at the aqualityic center in moraga. 2,000 swimmers between ages four and 18 competed in one of the largest championship meets in the country. the onpa has produced a number of medal winning swimmers. aways today advance to a meet on august 13th and 14th. that's it for abc-7 news at 5:00. thanks for joining us. world news is next. we'll be back at 6:00. captioned by closed captioning services inc.