prosecutop prosecutors in strauss-kahn rapepquestion hqu. >r dep debt bat cancercancels itp canca to deal with the debt crisis but tr the tthe two sidep t. nba lockout, with contract contracts stalled, the nnbr nnba ownerp nba o threatening t threatening the season. captioning funded by cbs good morning, happy friday. i'm betty nguyen. a startling turn in a rape case that made headlines around the world. over a month after arresting the former head of the international monetary fund, prosecutors are now questioning his accuser's

story. dominique strauss-kahn is due in court in manhattan today. terrell brown is at the courthouse. >> reporter: betty what stands out is police investigators have over and over again touted how credible the hotel maid's story has been. we learn everything she's been saying may not be adding up and it could mean a big break for dominique strauss-kahn. strauss-kahn could have his bail reduced or lifted because of of his accuser's possibility. prosecutors initially stood by the woman's story. now the "new york times" reports investigators have caught the accuser in a series of lies surrounding the case. they suspect she may have been involved in drug dealing and money laundering. the maid apparently had a phone conversation with a jail inmate discussing the benefits of pursuing the charges against

strauss-kahn. once considered a leading contender for the french presidency he saw his political career and financial krublble after his arrest. forensic evidence confirms there was a sexual encounter but defense attorneys always insisted it was consensual. >> once the evidence is reviewed it will be clear that there was no element of forcible compulsion in this case whatsoever. >> reporter: after posting a $6 million bail, strauss-kahn was confined to house arrest. the arrangements are costing him $250,000 a month. after today's hearing he could be released on his own recognizance. if strauss-kahn is released on his own recognizance, he will no longer released on his own recognizance and free to travel the country. >> terrell brown joining us live, thank you. the senate canceled its july 4th recess and resume work tuesday on a deal raise the debt ceiling. so far there is no sign of compromise but plenty of

contentious debate. joel brown is in washington with the latest. how bad could this situation get? >> reporter: if there is not a deal in the next four weeks the unimaginable will happen. the u.s. will default on its loans for the first time ever. so far there's no indication of any progress. yesterday the senate republican leader offered an invitation to the president, it was promptly rejected by the white house. >> the president wants to get working, wants us to get working. i can't think of a better way than to have him come right on over today. we're waiting. >> what the senator invited the president to do was to hear senate republicans restate their maximalist position. >> reporter: democrats insist any deficit cutting package include revenue increases. the democratic proposal calls for a limit on deductions for anyone making more than $200,000 a year, raising $290 billion

over four years, the elimination of oil and gas loopholes good for $45 billion and the elimination of interest deductions for hedge funds another $20 billion. republicans say that plan is dead on arrival. >> congress isn't going to approve hundreds of billions of dollars in tax hikes. it's simply not going to happen. >> reporter: at a fund-raiser in philadelphia the president says there has to be a deal but the right deal. >> we would be mortgaging our future if we don't do anything about the deficit and it would be irresponsible if in the process of reducing our deficit we sacrificed those very things that allow us to grow and create jobs and succeed and compete in the future. >> reporter: standard & poor's the credit rating service says that if no deal is reached it will drop the u.s. rating from triple "a" to "d." betty, that's the lowest rating. >> joel brown in washington thank you. minnesota residents are already experiencing the kind of

trouble you get when governments cannot pay their debts. the state's government officially shut down at midnight. republican lawmakers and the democratic governor are at odds over taxes and a $5 billion deficit. state workers are faced with mass layoffs protested outside the capital in st. paul. the shutdown means putting highway projects on hold. and closing state parks on the july 4th weekend. on the "cbs moneywatch" stocks were up on asian markets. ashley morrison is here with that in new york. good morning to you. >> good morning to you, betty. asian markets advance today. nikkei hose 0.6% and the shanghai composite gained 0.4% and hong kong's hang sang was closed for a holiday. wall street also gained ground. the dow had a triple-digit rise finishing 152 points higher and the nasdaq was up 33. treasury secretary timothy geithner will stay on the job for now.

there has been speculation that geithner might leave following the current round of budget talks. when asked about his plans yesterday geithner said "we have a lot of challenges as a country" so he'll stay for the foreseeable future. weekly jobless claims were down. the labor department says 1,000 fewer claims were filed for unemployment last week but the number of claims filed over the last 12 weeks remains above 400,000. borders, second largest u.s. book store chain, has agreed to sell itself. borders is under bankruptcy protection and the sale to investment firm for $215 million is tentative. and betty, the trend for fast food restaurants to serve alcohol is growing. burger king started selling beer at so-called water bars in miami and kansas city and two sonic restaurants in south florida will start selling beer and

wine, so now betty it's burgers, fries and a beer but that's only when it's a fancy date. >> that's right, you spend a little extra on that one, ashley, joining us live here in new york, thank you for that. the government is beefing up airport security this holiday weekend and this follows the arrest of a nigerian man who managed to board a plane and fly cross-country without proper identification, due in los angeles federal court today. bob orr has the story. >> reporter: virginia america flight 415 had taken off from new york and already in the area and headed for los angeles when a flight attendant found something strange on board, a man in 3e, a seat that was supposed to be empty, when asked for his papers the man pulled out a day old boarding pass issued for a different

cross-country flight the previous day and the name on the boarding pass did not mass a university of michigan i.d. bearing his real name. nwebe made no threats, carrying no weapons so the flight crew determined it was safe to fly on to l.a. the pilot gave controllers no hint of a problem. >> clear to land, 2-4 right. >> reporter: upon landing the mystery passenger nwebe was questioned from the fbi. the nigerian national told he was in l.a. for his software business. he found the unused boarding pass and admitted not buying the ticket. the rightful owner confirmed he had lost the boarding pass on a new york subway and simply printed another one at the airport kiosk. when the fbi found no apparent connections to terror, nwebe was turned loose but only for four days. fbi agents arrested him yesterday, found him back in l.a. trying to board yet another

plane, delta 46 to atlanta with a boarding pass that was not his own, at least ten more boarding passes in various names. he's now charged with being a stowaway on an aircraft. the tsa says nwebe was screened for explosives and weapons and in that sense presented no threat to the flight. the lapse by the screener checking i.d.s is serious and he could face disciplinary actions. >> just ahead on the "morning news" the latest from los alamos where things are looking up for firefighters. plus tropical storm arlene lashes mexico and sends flood producing rains to south texas. first scott pelley has a preview of tonight's "cbs evening news." >> the crops are ready but they're rotting in the field, that's what's happening to the harvest after one state's crackdown on illegal immigrants, that story on tonight's "cbs evening news." k9 advantix ii.

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mexico's central gulf coast before moving inland overnight. the storm brought down trees and a few signs but overall, damage was light. arlene, the first named storm of the hurricane season, also pushed flood producing bands of heavy rain into south texas. in northern new mexico firefighters appear to have stopped the wildfire from reaching the los alamos nuclear laboratory but the fire is not out and the hot, dry windy weather expected today will not help. sandra hughes reports. >> reporter: fire crews are working around the clock to stop the flames from reaching the los alamos national laboratory. >> this is the primary line here. >> reporter: controlled burns around the lab cleared trees and bushes to get rid of the natural fuel feeding the wildfire. >> the anchor the team is putting in is working, it's holding. we're hitting the hot spots. >> reporter: winds started to push the flames away from los alamos thursday. officials wash this wildfire is unpredictable.

>> we're seeing extreme fire behavior, things we haven't seen in our careers. >> reporter: the goal is to keep the fire away from homes and the western edge of the national laboratory complex. while the los alamos lab remains closed work has been put on hold, that includes experiments on two super computers and research into extending the life of a 1960s nuclear bomb. crews at the lab are also clearing vegetation so the fire doesn't have a chance reach the site. doug mcdonald says years ago there were lessons learned. >> the risk isn't the same. >> reporter: scientists continue to wait to see where the massive wildfire moves next. sandra hughes, cbs news, los alamos, mexico. weather battered southeast wisconsin before moving into northern illinois.

the storm brought heavy rain and high winds. power was knocked out for about 35,000 customers but no injuries are reported. in the rio grande valley of south texas a tornado caused some damage but no reported injuries in the town of farr. witnesses say the twister crossed the river into northern mexico. straight ahead your friday morning weather and in sports, another sports lockout after contract talks collapse. this time, it's the nba. smile, the wte up to 90% oftwo weeks, e.

here is a look at the weather in some cities around the country. new york going to be sunny 86 degrees. miami thunderstorms there, 90. chicago sunny and windy, 99. dallas a hot 100. los angeles 84 degrees. time now for a check of the national forecast. the latest satellite picture shows clear skies on the west coast and much of the southeast. bands of thunderstorms are rolling across the northern plains. tropical depression arlene though is slowly losing strength in mexico, but sending bands of rain to texas. later today the great lakes will see daytime highs in the 90s and 100s. it's pleasant up and down the west coast but the gulf coast will see storms building through the day along with plenty of heat and humidity. in sports the nba has locked out its players. contract negotiations collapsed thursday and when the contract between the league and the players ran out at midnight the lockout was under way.

the two sides are far apart on salary issues and revenue sharing. nba commissioner david stern says 22 nba teams are losing money and insist the league's offer was good from both sides. >> we've made a proposal under which the average player compensation will be $5 million at a time when the league is losing money. >> the lockout puts in jeopardy the pro basketball season's schedule to start in the fall. in tennis the women's single's final at wimbledon is set for saturday, a big comeback for maria sharapova who won easily in straight sets advancing to her first wimbledon final since she won in 2004, she faces petra kvitova, in her first major final. in baseball a dramatic walkoff win for the cubs, in the bottom of the 13th inning in chicago, giovanni soto

blasted a three-run homer to left field, and that gives the cubs a 5-2 victory over san francisco. when we return, another look at this morning's top stories. and scorpion on a plane? what you don't want to meet on your next flight. these are ocean spray sparkling juice drinks. they have bubbles. it's real fruit juice; crisp, sparkling water; and no added sugar. and they come in these really cool cans. you want one? i'll wait a bit. all right. mm. refreshing. [ female announcer ] we all want cleaner laundry. we all want a world with fewer chemicals. we all want the best of both worlds. introducing all free clear oxi-active. a powerful new detergent without dyes or perfumes that helps get out your toughest dirt and stains. its added natural cleaning boosters help get your whole family's wash incredibly clean. tough on stains. gentle on skin.

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,,,, on the "cbs morning news," here's a look at today's weather. summer heat is moving slowly from the northern plains into the great lakes. the northern plains will also see some strong storms. it's nice up and down the west coast and in the northeast. here's another look at this morning's top stories. a major turn in the sexual assault case against former imf chief dominique strauss-kahn. prosecutors are questioning the story of the hotel maid who accuses strauss-kahn of rape. the budget battle in washington drags on.

the senate canceled its post fourth of july holiday in hopes of reaching a deal to avoid defaulting on government debt. venezuelan president hugo chavez revealed that cancer surgery took place in cuba. chavez looked pale as he addressed his nation from havana where he underwent two operations. chavez did not say what kind of cancer he was battling or when he returns to return to venezuela. on their first official royal visit, prince william and wife kate are in ottawa, canada, this morning. each placed a wreath at the national war memorial and later attended a reception for young canadians. we have word this morning of a scare on an airline flight to alaska, not snakes but a scorpion on a plane. the recent incident was on an alaska airlines flight from seattle to anchorage. the scorpion was apparently a stowaway from texas.

passenger jeff ellis was taking a nap at 30,000 feet but woke up to the burning sting of the scorpion on his arm. ouch. >> my tray table was down, i grabbed a napkin, picked that thing up and just held onto it, it was just like a natural reaction to grab it. >> that's one way to wake up from a nap. jeff has a mark on his arm but suffered no other ill effects. now we want you to meet ethel learum of wisconsin. take a listen. ♪ can you believe this lady just turned 95 years old and not only plays the piano but also the organ and the accordion and now she is taking up the violin. pretty sweet. this morning on "the early show," maria sharapova's amazing wimbledon comeback. i'm betty nguyen. this is the "cbs morning news."

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at the height of the recession, congress boosted medicaid funding by $100 billion, but no one expected high unemployment to go on for so long. and now that extra medicaid money has run out. bill whitaker reports on how that affects needy patients. >> hi. >> reporter: we met sharon brown and her 10-year-old daughter, rosa at the arroyo vista family health center, a nonprofit community clinic in los angeles where rosa came for strept throat. with a family income below the poverty line, rosa's treatment and sharon's checkup cost just $1 each. >> are you still taking the antibiotic? >> yeah. >> reporter: the rest paid by the joint state/federal low income medical program medicaid. >> i depend on it a lot because

i have three children. i use it for their yearly physical, for their eyes checked. >> reporter: with the temporary infusion of federal funds to medicaid running out, california is taking a $4.8 billion hit, so like most states, california is scrambling to reduce costs, cutting services, cutting doctor's payments, raising patients' copayments, $5 for office visits, $50 for emergency rooms, $100 to $200 a day for hospital stays. you might think that's not much. >> but you know what? you're wrong. >> reporter: sharon lost her job as a cafeteria worker when l.a. schools made drastic staff cuts a year ago. she's made no luck since. her family lives on the edge of downtown and on the edge financially, renting out the front of their modest house to pay the mortgage, they all live crammed here in the back. >> we have bills to pay. we have food for the children, their clothing.

>> gasoline. >> gasoline, the light bill, the water bill, the gas bill. >> everything's going up. >> going up. >> reporter: sharon is one of 7,650,000 californians on medicaid, 42% of the patients here at the arroyo vista clinic rely on medicaid. ceo lorraine estrada says with the cuts -- >> our revenue will go down which means potentially cutting on services and layoffs which is unfortunate. >> reporter: pediatrician annal dasai worries about her patients. >> end up in the emergency room? i don't know. we're talking about cutting costs here. >> reporter: california already is struggling with a budget crisis of its own and doesn't have the funds to make up for the federal cuts to medicaid, with unemployment here near 12% among the highest in the country, the arroyo vista clinic and others like it don't expect to see any reduction in need. bill whitaker, cbs news, los angeles. coming up a little bit later on "the early show," the latest

on the dominique strauss-kahn sex assault case, why prosecutors question his accuser's story. then the race to beat the federal debt deadline. the senate canceled its holiday recess but will that be enough? and the royal tour, william and kate kick it off with canada day. that's the "cbs morning news" for this friday. thanks for watching, everybody. i'm betty nguyen. have a great fourth of july weekend. -- captions by vitac -- www.vitac.com -- captions by vitac -- www.vitac.com