shakeup. as bp reports record losses following the gulf oil spill, tony hayward is on his way out. damage control. a huge leak of military secrets has the white house and pentagon scrambling to tighten security and save face. and up in arms. after getting rid of three top officials, angry voters in california go after the city council. >> you failed to do your job. you failed to listen to us about our taxes. and you guys do not deserve to be running the city. this is the "cbs morning news" for tuesday, july 27th, this is the "cbs morning news" for tuesday, july 27th, 2010. captioning funded by cbs good morning, everybody. thanks for joining us. i'm betty nguyen. we begin with a change of

command at the top of bp forced by the oil spill at the bottom of the gulf. tony hayward who said he wanted his life back will have a chance to find it in russia. he'll be replaced by an american. let's get the latest from charlie d'agata in london. good morning, charlie. >> reporter: good morning. bp has finally given boss tony hayward the boot, though the company said it was deeply saddened hayward would be stepping down, but he walks away with a year's salary plus benefits plus a retirement worth a million dollars a year for life. tony hayward won't be bp's ceo much longer. early this morning, the company announced he'll step down october 1st and will be nominated for a new role at bp's joint venture in russia. the energy giant released this statement saying the decision was made by mutual agreement. for nearly two months, hayward was the face of bp's response in the gulf. >> i'm devastated by the accident. absolutely devastated. >> reporter: but he came under fire after his many missteps and

misstatements. >> nobody wants this thing over more than i do. i'd like my life back. >> reporter: bp also announced hayward's replacement, current chief operating officer and mississippi native bob dudley. >> it's tragic. >> reporter: dudley is a newcomer, joining just 18 months ago. he was considered for ceo in 2007 but lost out to hayward. he'll be bp's first american ceo. >> he's not only american, he is someone from the district, from the gulf area, which is a big thing. he is someone who is actively involved with cleaning up the mess. >> reporter: personnel shakeup may also help bp's bottom line. the company reported a loss of $17 billion for the second quarter and plans to sell up to $30 billion worth of assets to cover damages and claims in the gulf. bob dudley has risen quickly at

bp since the oil spill. as analysts put it, he has two things going for him. he speaks with an american accent and he's not tony hayward. >> we know the reaction here. but what's the reaction there? >> reporter: there's been a great deal of sympathy to the disaster in the gulf and the ecological situation there. but not to put it callously, there's a lot of brits who have their pensions tied up in bp, so the sooner bp can get past this disaster, get past the cleanup and get to a healthier bottom line, the better for everybody. >> charlie d'agata in london for us. thank you. in other news, in afghanistan this morning, nato confirmed it has recovered the body of a u.s. navy sailor killed in a taliban ambush. he's identified as petty officer justin mcneley, age 30, the nephew of a colorado state legislator. he was one of two americans who went missing on friday.

their shot-up vehicle found 80 miles south of kabul. the taliban claimed they captured the other sailor alive. also this morning, continued fallout from a nato air strike friday in southern afghanistan. nato command is denying afghan government claims that the helicopter attack killed 52 civilians. a nato spokesman says it investigated the incident and found that six taliban fighters were killed, but no civilians. in washington, the obama administration is in full damage control mode following that huge leak of military secrets. more than 90,000 field reports from u.s. troops in afghanistan were released by the wikileaks website which says it will post even more soon. david martin reports. >> reporter: most of the reports document what is already well known. for years the u.s. has not had enough troops in afghanistan. resulting in this record of a remote outpost calling for help as they are nearly overrun. we are taking casualties. enemy in the wire. the afghan government has been corrupt and inefficient.

according to this document, the general view of the afghans is that the current government is worse than the taliban. american air strikes and commando raids have killed too many civilians. this report describes a raid that was intended to take out a high ranking al qaeda operative, ended up killing children instead. the pentagon says it will take days if not weeks to determine the damage done by the massive leak of classified material. bruce rydell who directed a review of the afghan war at the start of the obama administration says the site of so many secret documents on the web is likely to discourage afghans from risking their lives to help the u.s. for fear of winding up on the internet and becoming targets. >> intelligence collection in afghanistan has been hard from the get-go. and to the extent this makes it harder, it makes the challenge of winning in afghanistan even harder than it was. >> reporter: military officers assume this was done by 22-year-old private first class bradley manning who has already

been charged with downloading this classified video of a helicopter gun ship killing civilians in baghdad. that video subsequently showed up on wikileaks. and there's more to come. wikileaks claims it's getting another 15,000 documents ready for release. david martin, cbs news, the pentagon. a short walk from the pentagon is arlington national cemetery and the scandal there is growing this morning. arlington is the resting place for more than 300,000 americans. and a u.s. senator investigating the cemetery now says thousands of graves may be mislabeled. she calls it, quote, heartbreaking incompetence. on "moneywatch," it was downhill for most stocks in asia this morning. alexis has the latest on that. >> reporter: we'll begin with the asian markets where stocks edged down today. the nikkei lost a fraction and the hang seng saw a late day rally.

today wall street gets the latest on consumer confidence. on monday, better than expected news about home sales gave stocks a boost. in the end the dow gained almost 101 points, its third straight triple digit rally. the nasdaq added nearly 27. both indexes are now in the black for the year. bp has set aside $32 billion to cover the costs of the gulf oil spill. that led the company to post a record loss of $17 billion for the second quarter. bp stock rallied nearly 5% monday after the company said tony hayward will resign as head of the oil giant in october. iphone owners can now legally jail break their phones. jail breaking means changing the electronic locks to download apps and other software not sanctioned by apple. millions of users have already been doing this without permission, but monday the government changed its copyright

law to allow the practice. the ruling is seen as a major victory for consumers, but apple warns if you damage your phone trying to unlock it, your warranty probably won't hold. and continental is the first u.s. airline to introduce self-boarding. it's testing the procedure at a gate in houston. instead of handing their pass to an agent, travelers can scan their tickets at an automatic boarding gate that opens a door to the jet bridge. self-boarding is common in europe and transportation officials say it doesn't impact the safety of the public. i don't know about you, i'm all for getting on the plane quicker, but i think i'd actually like a person to be there for this part. >> and when you think about it, so we go online and book our tickets. when we get there, we check in by ourselves. now we can board by ourselves. so does that mean our ticket prices will go down? >> somehow i don't think so. >> unfortunately. all right. alexis, thank you. just ahead this morning, new pay cuts for a city council in california, plus sister act. french nuns score a big record deal.

first, though, katie couric has a preview of tonight's "cbs evening news." it's not just happening in the state of arizona. why a town far from the border is also pushing for controversial new immigration laws. we'll have that story and more tonight only on "the cbs evening news." jirk until you feel fully awake. walking, eating, driving or engaging in other activities while asleep without remembering it the next day have been reported. abnormal behaviors may include aggressiveness, agitation, hallucinations, or confusion. in depressed patients, worsening of depression, including risk of suicide, may occur. alcohol may increase these risks. allergic reactions such as tongue or throat swelling

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we're all striving for it. purina cat chow helps you nurture it in your cat with a full family of excellent nutrition and helpful resources. purina cat chow. share a better life. in california, a wildfire has destroyed six homes northeast of bakersfield. the former gold rush town is near the sequoia national forest and is a popular whitewater rafting destination. the fire has grown to 2,000 acres and forced some evacuations. but no injuries have been reported so far. outraged residents have forced the overpaid members of city government in bell, california to slash their pay. but that's not enough to satisfy some of the town's voters. sandra hughes reports.

>> reporter: an angry mob gathered outside city hall ready to face off with city officials. this meeting is packed because four out of five of bell city council members, including the mayor, make $100,000 a year for their part-time jobs. the bell city manager who made almost $800,000 a year and his assistant resigned last week. so did bell's police chief who took home an annual salary of more than $450,000. this crowd wanted more resignations. >> you failed to do your job, you failed to listen to us about our taxes, and you guys do not deserve to be running the city. >> reporter: the council unanimously voted to take a 90% pay cut. >> and i'm willing to deal with my pay, too, to zero. >> i will resign to my salary, but i will not resign to my position. >> we don't want you here and we aren't your people. >> reporter: california's attorney general is investigating how a community

with 16% unemployment could legally give such salaries. >> we want to find out exactly how they ever came to the conclusion that city officials should make so much money. in one case, in two cases, more than the president of the united states. >> reporter: over the weekend, residents marched through town to the council members' homes demanding action. they didn't get it, so they showed up here at the meeting where bell city council members had said they would discuss the future of the city. instead they ended up deciding their own. sandra hughes, cbs news, bell, california. >> and we will continue to follow that story, but in other news, a group of french nuns has signed a record deal with lady gaga's label. ♪ >> they sound pretty good. the nuns sing gregorian chants and they were chosen over 70 other convents from around the world. they live in seclusion from the

world and any contact with the sisters is made through a grill. they have taken a vow of poverty, and so royalties from the album will go into running their abby in southern france. straight ahead, your tuesday morning weather. and in sports, in the year of the pitcher, another no-hitter. f i missed. as long as i get all the stuff i see, it's fine. [ male announcer ] no one really wants plaque left on their teeth, but ordinary manual brushes can leave up to 50% of plaque behind. that's why you want an oral-b power brush. inspired by dental tools, they clean away plaque in ways a manual brush can't for that dentist-smooth, clean feeling every day. fight plaque with real power. oral-b power.

and get this year's colors up on the wall...this year. let's get better prices... and better paint. let's break out the drop cloths, rollers, brushes, and tape. let's start small. then go big. no matter what the budget. and when we're done, let's take a bow. more saving. more doing. that's the power of the home depot. behr premium plus ultra. the only interior paint and primer in one that's rated number one. here's a look at the weather in some cities around the country. new york, sunny, 90.

miami, sunny, 91. chicago, sunny and 90. partly cloudy in denver, 95. and los angeles, sunny, 78. time now for a check of the national forecast. the latest satellite picture shows storms moving across the southeast while clouds stretch from the rockies all the way into the northern plains. later today, severe thunderstorms will roll through the northern half of the country. high heat and humidity will be felt from the southeast through the plains while back along the west coast, temperatures are cool and comfortable. in sports, the fifth no-hitter in baseball this season. tampa bay's matt garza got a fly ball in the ninth inning for the last out of his no-hitter against detroit. he faced only 27 batters in the 5-0 win. garza says he was happy to pitch the first no-hitter in team history. >> it's the first no-hitter i've ever had, so i'm very pumped about that and it's great that, yeah, i was the first one to do it. it's a young franchise. i have a feeling that they'll

have many more to come. >> tampa bay's first no-hitter leaves only two major league teams that have never had no hitters. the new york mets and san diego padres. the yankees' curtis granderson blasted a two run homer to right field against cleveland and new york pulled out a 3-2 win over the indians. and boston's david ortiz hit two home runs against the angels in los angeles. newly acquired angels pitcher dan haren was hit by a line drive and had to leave the game. red sox beat the angels 6-3. when we return, another look at this morning's top stories. and national security challenges in the wake of the wikileaks controversy. controversy. you'll never go back to your old duster. [ funny voice ] hey, duster! wanna attract dust like swiffer 360 duster? then try the magnet hat! ♪ whoa!

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residents. coming up at five: the proposal the city council agreed on last night that will not only help save jobs of police officers... but also help close next year's projected 50-million dollar deficit. san francisco has a new plan for dealing with non- violent crime. hire ordinary citizens. how it will work... and what the job duties include. put out that cigarette! contra costa county is clamping down on smokers. the tough new restrictions being proposed... where you may no longer be able to light up. and... the future of cars at san jose's "plug-in 20- 10" conference. join us for cbs 5 eyewitness news early edition ... beginning on the "cbs morning news," g here's a look at today's weather. sunny skies and pleasant conditions will prevail across the northeast.

in the southeast, the weather remains hot and humid with a chance of thunderstorms and parts of the northern plains could see severe thunderstorms. here's another look at this morning's top stories. bp shakeup. the ceo is on his way out and an american will take over the job of trying to make good on the gulf oil spill disaster. and more secrets. the obama white house faces new troubles in the already troubled afghanistan war after a huge leak of secret pentagon documents. the leak of classified documents marks the latest chapter in the age old conflict between freedom of the press and national security. jeff greenfield takes a closer look at the issue in the age of the internet. >> reporter: the massive release of documents came not from a news organization, but from wikileaks, a 3.5-year-old online site with no headquarters, no

physical presence anywhere, and with a history of releasing secrets of all sorts, from rule books for guantanamo, bank records, sorority initiation rituals. wikileaks founder, 39-year-old australian julian assange, acknowledges that he has an agenda. >> we hope the release of this material will result in significant reforms in u.s. and allied policy in afghanistan. >> reporter: traditional media outlets don't talk that way. but then wikileaks is completely unlike traditional media. for instance, newspapers often consult governments before publishing potentially damaging secrets. >> i think it requires a lot of judgment on the part of people who are gatekeepers. >> reporter: wikileaks released its afghan war diary with no consultations. and there's another key distinction. back in 1971 when the nixon administration tried to stop the "new york times" from publishing the pentagon papers, classified history of vietnam, the public had the paper's history and reputation as a measuring bar. wikileaks is anonymous. >> we're moving towards a

society in which no secrets are safe. even though there is a need for some secrets. and to some extent, we're just going to have to get used to that. >> reporter: the press used to describe itself as a gatekeeper deciding what information is solid enough, reliable enough to make public. now there are no gates. jeff greenfield, cbs news, new york. on a lighter note, what's up, doc? how about a birthday. bugs bunny, the wise-cracking cartoon rabbit turns 70 years old today. the carrot chomping looney tunes staple made his starring debut in a short in 1940 called a wild hare. since then bugs has been in more than 100 cartoons and even a few hollywood movies. for many kids, though, he is simply the highlight of saturday morning cartoon watching. i know he was for me as a kid. well, this morning on "the early show," julie chen takes on her dream job and goes to work at one of the world's best

restaurants. i'm betty nguyen. this is the "cbs morning news." i'm from the gulf coast. my family spends a lot of time here. i have a personal interest in ensuring that we get this job done right. i'm keith seilhan. i'm in charge of bp's clean up on the gulf coast. bp's taken full responsibility for the clean up, and that includes keeping you informed. over 25,000 people are included in the clean up operation. our crews are cleaning the gulf beaches 24/7. we're going to be here as long as it takes to make this right.

in cuba, fidel castro made a surprise appearance at a wreath laying ceremony monday on the anniversary of the beginning of the cuban revolution. the 83-year-old castro has reemerged in recent weeks four years after emergency surgery forced him to step down. meanwhile, the european union and canada have adopted new sanctions against iran. richard roth spoke with iran's president monday about accusations that his country is helping insurgents in afghanistan. >> reporter: an aide sitting out of camera range gestured his irritation at our questions. the president himself just flatly rejected the explosive charges in the leaked documents.

you don't deny, mr. president, that iran supports the taliban. >> translator: we do not support any group. we just and only support the afghan people. we support and we want to strengthen security in afghanistan and we think the afghan people should run their own country. we think the root cause is related to the intervention of the united states and nato. it's been for about 20 years that the americans are interfering in afghanistan. >> reporter: afghanistan's not the only issue iran's confronting with the international community. its alleged attempt to build a nuclear bomb has drawn new sanctions. let me ask you about sanctions, if i may. does it concern you that the people of iran may be feeling the effects now of sanctions that result from iran's nuclear policies?

>> translator: i think the policies by europeans and americans are ridiculous. they think they're going to influence the life of the iranian society. if fact, they're imposing sanctions against themselves. iran is a great nation with a great population. we have vast and rich resources and it's very much easy for us to overcome all problems. >> reporter: one unsolved problem is the 31 year freeze in relations with america. five years into your presidency, i sense that you feel an opportunity was missed for a reconciliation and accommodation with america. but you clearly don't feel that you missed the opportunity. >> translator: please pay attention. i sent the letter to bush and that letter was a golden opportunity for the u.s. administration in order to change policy and they should

not continue hostility. during my visit in new york, i said i was ready to talk to president obama and after the election of mr. obama, i sent a message and on different occasions in meetings we said we would support changes. we are ready to help. >> reporter: i asked him could that be in new york at the u.n. in september. the president's reply, god willing. richard roth, cbs news, tehran. and that's the "cbs morning news" for this tuesday. thanks for watching. hope you'll join us for the "early show." hope you'll join us for the "early show." i'm betty nguyen. -- captions by vitac -- www.vitac.com

to rehire oakland cops and to your realtime captioner is linda marie macdonald. caption colorado, l.l.c. comments@captioncolorado.com good morning. it's tuesday, july 27. >> there is a new