apple ceo says the company is work is its butt off to fix things. >> they were respondin to complaints about antna flaw that results in dropped calls. terry mcsweeney is live at apple's headquarters with more on wht he had to say. >> quite an event going on inside the apple headquarters. he is taking questions from the media. a lot of media from all over the country want fog know wh he was going to do to fix the problem. he says the answer is free bumper cases for anyone who owns one of the new iphone 4's.

you start applying for them on monday but there was more than that. people provided entertainment and it was at the media for hyping antea gate. ♪ ♪ >> we're not perfect. we know that. you are know tha phones aren't perfect either. >> and with that jobs showed videos of other phes including the blackberry and samsung showing they fl problems with antennas, too, dependin on where you puyour hand. he says apple was picked out because e spot is easily spotted because a gap in the casing. the staiess steel case sitting antenna on the pne.

he says .355% of phone owners have complained. he says it's minimum reconcile and he has solution. >> let's give everybody a ca. we have a bumper case here. we want to give everybody a free case. every iphone user is going to get a free case. one for ever iphone 4. if you boug one, we'll give you a full refund per bumper. >> the goal is to make everybody happy. free bumper case for everyone. they can't make enough bumpers but go on line on monday and pick one off the apple website and if you have a phone you have it for free. you if after tha you are still not happy with the phone, return it. you have people from around the country, a quick check on apple

stock says it's down .4% -- is that right? .35%, okay a minuscule amount. he is expected to hit and on until apologizing to investors, he says he is sorry about that. we have wayne freedman possibly asking questions. that for you tonight at 5:00 and 6:00. terry mcsweeney, "abc 7 ws." now computer giant hewlett-packard plans to close its campus in cupertino. they will be transferred to palo alto headquarters over the next two years. the campus in coup teen has been home to a personal comput division and hardware and softwa units. the announcement is a big blow to the city says the mayor.

chief administrative officer received a memo saying that consolidating employees will make a more flexible and highly energid work environment. >> california's unemployment rate i down slightly. developmendepartment says the rate decreased to 12.3% last month from 12.4% in may. employers cut nearly 28,000 jobs in june. most of those losses were temporary federal census workers. here is a break down of the bay area. solano has the highest at 12.2. alameda countys next at 11.5. lowest rate is in marin county 8.2% >> a judge is expected to rule today on state controller john chung's effort from imposing minimum wage on state employees. governor swarzenegger wants t cut their pay to 7.25 an hour

until the state has a new budget. workers would receive of their full back pain once it signed. >> toyota and tesla will develop a electric version of the car. we reported earlier that tesla was working on the electrical power systems. they have built a prototype and plans to deliver more to toyota to evaluate sometime this year. both companies have plans to sell the versions. in may tesla and toyota announced they would build electric cs at nummi plant. >> a.c. trang trant employees. they ruled in favor of the more than 1700 employees. they were in court challging a labor contra a.c. transit

imposed last month month. it was to go into effect on monday. they are urging bus driver the to keep working and providing vital public services while they revisit contracted negotiations. transit agen is trying to close a budget gap. by this fall the first california national guard troops will be head to the border of mexico to help keep out illegal immigrants. governor swarzenegger signed an order assigning troops to help with border security and drug surveillance. they are asking for volunteers and they wa them to be in place by october 1st. in june president obama said he would send 1200 national guard troops to help with border security. the governor supportedhe idea. >> this morning, law enforcement is responding to a major terrorm incident in the east bay but is is a test. the terrorism response exercise is happening at the concord

naval weapons station. they are participatingn this exercise and testing and evaluatingesponse plans, procedures and capabilities for a terrorisincident. exercise is being sponsored by the northern california regional intelligence cenr. >> local produce you want to take out of your fridge and throw away. >> but first, concert they are lining up for in oakland. >> and nation's capital shook some morning, a small earthquake that rattled some nerves

(speaking in international langua) and he said unto them go ye into all of the world and preach the gospel preach the gospel ♪ every creature in the world. (applause)

undreds are lining up outside paramount theater hoping to get tickets to a tribute walter hawkins. oakland native passed away on sunday from pancreatic cancer. free concert a hot ticket. artists as yolanda adams and mary mary is scheduled to perform. some fans have waid until 7:00 last nht. >> he was a great man. he was great musician. that is why we're here to show our respect. >> concert is next tuesday night at 7:00 at the paramont. it will b followed by a

memorial on wednesday at the thear. >> president obama are warning americans there is still work to do even though the cap is holding in gulf mexico 24 hours after it was installed. bp's underwater cameras show that no oil is leing at the moment. but nobody is ready to declare victory just yet. john hendron joins us from louisiana with the latest on this. good morning, john. >> good morning, eric. you're right it appears to be holding pressure but 's not clear it's holding enough pressure to ke the integrity tests. if no one wants to jinx. >> it there were reports come out of the media, maybe this thing done. we won't be done until we actually know we killed well. >> the well that currently stopped leaking left him cautious but hopeful. >> i just hope it's done.

>> it's holding at 6700 pounds per square inch but that is lower an 8,000 to 89,000 they were expecting -- 8,000 to 9,000. >> it's premature to open champagne bottles. >> the momen came about 2:25 local time. they sealed the valves. here is what it lookelike. oil slowing to a total sp. >> ts is merely an intermediate step to contain the zbliol the positive step is bittersweet where the economic harm is largely done and environmental damage isell under way. >> anything that would shut it off would be better than nothing. i think it should have been done earlier. >> there is still a lot of oil out there. there is still going to be enormous cleanup job to do. >> a cleanup that will not be measuredn days or weeks but in years. >> now if those integrity tests

are deemed successful, authorities could cap that well and just leave it capped keeping the oil insi. if they are not deemed successful, they will siphon the oil to the surface and simpl waiting until a relief well is drilled so they can cement closed that oil field. president is in residents in washington, d.c. area was shaken by a minor earthquake. it was centered in maryland area. no injuries or serious damage was reported. this is the strongest quake to hit within 30 milesf washington, d.c. by mid-morning, more than 11,000 people reported feeling the quake. some from as far away as pennsylvania and west virginia. >> it woke me out of bed and

jolted me. >> it shook the bed t thpoint i thought i was going top to the bottom. it shook me a coupl of inches. >> meanwhile, at thehite house president ama was asked if he felt anything, he said he didn't 3.6, well. >> mike is ahead th the forecast. it's a hot one. >> definitely inland. another trie dital jump to temperatures that could be

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