reacting to the u-s downgrade. investors brace for the worst on wall street. this morning, how world markets are react can to the u.s. credit downgrade. the waiting is almost over. what we expect to hear from ed lee this morning about his potential run for mayor of san francisco. good morning, everybody. it is monday. august 8. i'm frank mallicoat. >> i'm grace lee. happy monday. >> whoo-hoo! >> i love getting started today. >> getting dressed. >> happy monday. oxy moron. >> that's right. we will make it work though. >> early morning. >> and i had some house guests tand has been foggy. >> i don't see major changes in the weather pattern.

i think it improves through the week but we have the low clouds and fog and the drizzle at the coastline and the fog continue through the afternoon. and we will see sunshine, and warmer spots in concord. and 76 in san jose. still cooler temperatures in san francisco. with a few clouds floating on through. and looks like we are going to see a warming trend. we will talk about that in just a bit. right now let's check on the roadways with elizabeth. >> thanks, hraurpbsz -- lawrence. no major hot spots. lower deck road work on the bridge this morning. and construction on the east shore freeway through richmond. we will break it down in a couple of minutes. in the meantime, back to you guys. >> looking good so early in the morning. >> i know, 4:30. no major backups. >> yet. >> that's right. >> thanks. 4:31 now. brace yourself. that's what investors are doing for the first full day of trading on u.s. stock markets since standard and poor's downgraded the nation's credit rating. asian markets took bit hits today. the major exchanges in south korea and china each closed down

3.8%. and japan's mi nikeii and hong's heck seng were down 3% and the s&p futures are down 1.5%. this follows the mark's worst week since 2008. it opened up a new round of partisan sniping in our nation's capital. >> i believe this is without question the tea party downgrade. >> this president has failed to lead in any other private sector enterprise, and he would be fired. >> and as for the major markets in europe, they fell less than 1% today. investors there were calmed down by a pledge from the european central bank to support the unstable bonds of italy and spain. fingers crossed. 4:32 now. the biggest question about the mayor's race in san francisco gets answered this morning. unter hanson is in san francisco where the appointed mayor will apparently try to become the next elected mayor. he joins us with more. good morning. >> reporter: is he going to run or in the?

that's the big question the last couple of months months with mayor ed lee. he will run. and he will announce the candicacy later this morning. he was the interim mayor when gavin newsom was the lieu tenant governor and the first asian american mayor of the city. lee who is a former attorney says the past several months he has been able to accomplish a lot, balancing the budget, hired a new police chief and passed pension row form and brought the americas cup to san francisco and negotiated to keep twitter here in the city. he says he is happy with his results. and results which he told cbs 5 phil ma tear last friday, he was able to achieve with little political fighting and loss of community support. >> a lot of personal friends that have been so encouraging and so supportive what we've been doing. a lot of people are still calling me, i haven't been able to answer that phone. >> but not everyone is calling.

many of his critics say he has broken his promise not to run. and lee says it is simply a matter of him changing his mind after spending time in the office. and an exclusive cbs 5 poll, 59% of voters say they would elect lee if he was to run which he says to run. but it is not going to be an easy victory many analysts say. there is strong competition from known candidates including the supervisor mikala pier. and beven duffy and her rara. all nine candidates including mayor ed lee will be in a forum tonight at the castro theater. the first debate later on tonight. and a big announcement at 9:00 a.m. for the mayor and it looks like he will run for mayor of san francisco. frank? >> thank you. i know phil asked him six times on his program on friday morning, he dodged it every time but a pretty good indicator he was going to run. i don't think any was super surprised. 4:34. an elderly woman and her

care giver have severe burns from a fire in san francisco late last night. the fire broke out around 11:30 at a home on jackson street. firefighters found the two women unconscious inside. one victim is in her 80s. the other is in her 60s. they are now in the hospital being treated for severe burns and smoke inhalation. investigators believe that fire started in an upstairs bedroom. and maybe linked to cigarettes. we are learning the father of one of the navy seals killed in that chopper crash in afghanistan lives in san jose. kevin houston was among 30 americans who died when their chinook helicopter was shot down saturday. houston lived in virginia with his wife and three children. u.s. military sources say the seals were on a mission to help another ground team when they were shot down. work continues to recover their remains. the taliban is claiming responsibility for the attack. 4:35. a sacramento man is fissing and his family blames authorities at the county jail because of that. alexander smalltrop is 50 years of age but his family says he

has the mental capacity of a child. and they're upset that he was let out of jail at 3:30 friday morning, all by himself, and he has not been seen since. >> he is can do things for his own and make decisions on his own. >> unless they're able to exercise due care for themselves, greatly disabled, at the time of release, they're sent out and processed out just like everybody else. >> smalltrop was arrested after shoppers at a costco store complained he rubbed his chest up against them. and his family says he doesn't know any better. pg&e was warned months before that san bruno explosion about the risk of disaster. documents filed with state regulators show the utilities risk management group all but predicted an incident. and it warned that gas in the company's management created a quote unacceptable risk of disaster. and raises questions about what top executives said, quote, had known or shouldn't have known. in solano county,

firefighters are trying to determine what sparked a brush fire that threatened several homes in the area. the fire broke out yesterday afternoon in benecia. you can see the smoke quickly spread to several acres. the flames came close to rose drive but crews were able to put out the fire before it reached any buildings. crews in southern california contained a wildfire that burned almost 1,000 acres in riverside acre, it happened saturday marino valley and jumped highway 60 briefly trapping about 50 drivers. there the fire fueled by dry winds and 90-degree temperatures but still not clear what caused that fire in the first place. back here closer to home, a little bit mistier. >> oh, my gosh. >> did you notice it? >> the fog, yes. i needed wind sholde wipers. we've had fog for a week here. >> isn't it beautiful, guys? fog everywhere around the bay area. it continues this morning. folks. thick again. toward the coastline. and dense fog toward the beaches and more drizzle outside.

it is going to break up with nice places arn the bay area but very to search and head further inland. 57 in vallejo. with some fog there. and clear skies as you head further inland into fairfield and concord. and that's where are you going to see some of the warmer temperatures by the afternoon. plan on highs in the 80s in many spots inland. and 81 in concord. about 84 in fairfield. get over to brend wood and antioch, upper 80s. out to the coastline, 50s an 60s. guess what? some more fog and low clouds out there. not much in the way of clearing. the next few days, i think we will see more of the same. just a slow climb in temperatures over the next couple of days. and maybe warmer, maybe even mid-90s as we head in toward next weekend. that's a look at weather. let's check out the roadways with elizabeth. >> and we're talking road work. i mentioned some road work off the east shore freeway. through richmond and we have some road work from palo alto, actually east palo alto. and northbound 101 as you

approach university. a stretch from university to willo, and to about 5:00 this morning. and various lanes blocked. no major delays because of it. looking good all the way through the south bay. if you're commuting no san jose, a live look at traffic, heading out of downtown san jose, and the northbound lanes of 280. and let's get a check of the east bay. actually we will check the golden gate bridge. marin county ride, so far, so good. they should be doing the lane change very shortly across the golden gate bridge. we have our san francisco tradition. fog all across the span. so watch out for limited visibility as you head into san francisco. and now, let's head out to the east bay. the nimitz, 80 through oakland, a quick trip from hayward towards the macarthur maze. a snapshot near the coliseum. we will continue to keep you updated. and a check of mass transit coming up. in the meantime back to you guys. >> thanks much. it is 4:39 now. a shooting spree leaves eight people dead. the latest on the killings coming up. and it is a popular way to tour the san francisco

waterfront. why some of the city's pedi-cab providers say the competition is not playing by the rules. thousands of verizon workers plan to hit the picket line again today. what it means for the company customers when we come back. ,,,,

. back now at 4:42, investigators in ohio are trying to figure out a motive for a shooting rampage yesterday that left eight people dead and injured another. police in coply, a little south of cleveland, say the gunman shot his girlfriend, ran to the next door neighbor's house, and shot five more people inside. then he chased several people through backyards. shooting two of them. soon after, the gunman died in a gun fight with police. a woman arrested in santa rosa faces felony hit-and-run and drunk driving charges. 22-year-old leon jancola was arrested after she showed up at a santa rosa hospital with minor injuries. police say she crashed her porsche on highway 12 early

yesterday morning and ran away on foot. the passenger in her car was injured in that crash. the young baseball fan hit by a car while leaving a giants game is making small improvements. but he remains in critical condition this morning. 9-year-old ryan white of philadelphia was run down in a cross walk as he and his family left at&t park on thursday night. andrew vargas of hayward is charged with driving drunk when he hit ryan. 4:43 now. pedi-cabs have become a popular way to travel in several local cities but in san francisco the competition is turning rather ugly. some local drivers say a san diego pedi-cab company started operating in town and they claim the company drivers are overcharging passengers and not following san francisco's rules and regulations. >> we have places where we're supposed to be. places where we're not allowed. and they're just going everywhere. >> they're calling on the san francisco officials to make the newly-arrived pedi-cab drivers to get some permits and play by the rules. two popular cars are under

investigation for some potential safety problems. some 2011 and 2012 ford mustangs reportedly have problems shifting into gear. meanwhile 2011 volkswagen jettas may have leaking fuel lines. as many as 66,000 vehicles could be affected. the national highway traffic and safety administration has not announced any recalls just yet. 45,000 verizon employees are expected to hit the picket lines again today. the contract talks broke off yesterday over the company's demand for concessions. and the workers say the demands are unfair, given verizon's hefty profits. the walk outaffects land line customers only. and not verizon's 100 million wireless customers. >> do people still have land lines? >> i know. i was still thinking the same thing. >> i have one. i don't even know the phone number. i have had it for six months. what's your land line number? i don't know. >> call me, i will give it to you. >> exactly.

4:44. some pg&e customers could get thousands of dollars in rebates. who is eligible? that's next. violence, looting and hundreds of arrests, what sparked a weekend of riots all across london. coming up. . and as your kid brings lunch from home to school, there is a good chance there is something potentially dangerous in the lunch box that you don't want to pack. travel time, if you're headed out, got to get away from the low clouds an the fog, and 66 degrees expected at sfo today and expected to head to stormy weather as you make your way eastward and as you pull into chicago, the possibility of thunderstorms there, a very comfortable 79 degrees though, and if you are continuing on, making your way in toward new york, we are expecting the possibility of a few thunderstorms there, too. and much hotter at 90 degrees. more on your local weather, coming up.

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neighborhoods in london early this morning. masked and cked riots spread to more neighborhoods in london earlier

this morning. masked and hooded young people attacked officers, looted shops and set cars on fire. that violence started saturday night in north london. ha is just about five miles from the site of next year's olympic games. reuters were angry about a fatal police shooting. but authorities say the newest violence of work of copy cat criminals. police arrested 160 people in the past two days. it is now 4:48. on your monday. another weekend and to release for the two cal grad students being held in iran. an iranian ambassador down-played reports that shane bower and josh fattal would be freed soon. the two men have been held for more than two years on espionage charges. their trial ended a week ago and a verdict was expected by now. another bay area headline, the santa clara county d.a. will not charge two men in separate cases that involve a delayed death. one of the victims was lowell noble who died january 12 years after a beating that left him severely injured.

the d.a. says it would be difficult to convince a jury in noble's case, and in the case of felix guba reflex a -- gubara that their injuries earlier were the exclusive cause of their death years later. san francisco may follow san jose's lead in putting a cap on the number of medical marijuana dispense ryes. there are currently 26 licensed to operate in the city. the board of supervisors will consider relaxing rules regarding where the pot clubs are located. and some complain that current regulations have resulted in a high concentration of dispense ryes in certain neighborhoods and would like to change that. 4:49. officials in san mateo county will announce double rebates for people who make their homes more energy efficient. homeowners will be eligible for, get this, $8,000, and that's because the county is matching incentives of $4,000 offered by pg&e. and those double rebates are available only through next march. folks, if you're headed out today, would he have gray skies

around the bay -- we have gray skies around the bay area again. the drizzle and low clouds continuing out to the coastline. dense fog showing out to the beaches again this morning. it looks like we will row play this pattern over the next few -- replay this pattern over the next few days and continue into the week. it looks like the weather should improve. plenty of sunshine in plenty of spots inland and upper 80s in the far reaches of the east bay and 60s and 70s around the bay. mostly sunny this afternoon. out to the coastline, rather dreary. mostly cloudy skies. and cool there. and 50s and some 60s. and you will see drizzle, low clouds and fog, on and off the better part of the day. numbers right now, 59 degrees in san jose. 57 in oakland. 54 in san francisco. and 57 degrees in concord. and we are looking at some hotter weather as you make your way in toward the central valley. 97 degrees in fresno. and 92 degrees in yosemite. headed up to lake tahoe, beautiful again today, 78 degrees, mostly sunny there and it looks like 94 degrees in reading. and all right, as you make your

way in to the ocean here, we will see that ridge of high pressure off the coastline. that's not going to have a big effect on us. as this one is sitting over the desert southwest, it starts to build back in toward the bay area so we're looking at slow warming, that's going to compress the low clouds and fog. and actually fog may be getting a little more dense the next couple of mornings here as the ridge starts to build in. temperatures expected to work out like this. 75 and sunshine in mountain view. 74 in tproeplt and sunny skies -- fremont and sunny skies in morgan hill. and 59 degrees in daly city. and 66 degrees inside the bay. just some partial clearing there. into richmond. and out toward the north coast, you're looking at 50s and 60s. heading into the valley, more sunshine and some warmer weather with highs of 77 degrees in santa rosa and 76 in the napa valley. next couple of day, 90s returning to the interior valleys. a slow warming trend over the next five to seven days, right into the next weekend, and maybe some mid-90s by then as well.

but really, no major changes in the forecast. all right, it is traffic time now. with elizabeth. >> thank you, lawrence. >> let's go out to the nimitz. we're getting word of a car chase. and because of the car chase, it is a crash at the 66th avenue off-ramp and they had to shut down the off-ramp completely. opd is still out there roit now. apparently searching for the driver, the driver of the cars involved in the chase, ended up leaving on foot. so again, they're doing a yard search right now. in the meantime, that's the 66 off-ramp, it is closed and police have it completely blocked off. and use haggenberger in the meantime. they should be opening the off-ramp we understand pretty shortly though. off to a nice start at the bay bridge toll plaza. no delay approaching the pay gates. some lower deck road work. it should be wrapping up shortly. but no road work on the upper deck. and the commute direction if you're heading to san francisco. and other bridge, the san mateo bridge, the commute direction of westbound 92. so far, so good all the way to foster city and the peninsula.

and fog, as lawrence was mentioning, through this shot of the golden gate bridge, you can really see it across the span. heading out of marin and no san francisco, a little sluggish on that southbound ride as you make your way out of novato to san rafael. mass transit, so far, everything is off to a great start. for bart, muni and cal train. and check in with our radio partner, when should you hit the road? if anything changes you can tune to kcbs and find them on your radio dial at 106.9 f.m. or 740 a.m. that's your traffic, back to you. >> thanks, elizabeth. 4:53 is it okay for kids to play sports in hot weather. as long as precautions are taken, yes it is. according to the largest pediatrics group. the american academy of pediatrics is aiming at stopping heat-related illnesses with athletes, and adequate training and a lot of water and time-outs

and access to emergency treatment on the sidelines. >> a couple of kids passed away down in the texas area because of all of their heat. and dangerous bacteria could be lurking in your child's lunch box. a study in the journal of pediatrics once again found that even when parents used an ice pack in their kid's lunch bag, the temperature of the food was too high by the time the child actually ate the tpaoát food. in one test, of 700 kids only 1.5% of perishable items were found to be safe. and that's the temperature that they were eaten. that's a little scary. and pneumonia-related hospital deaths are dropping. a government report found the death rate among adults hospitalized with a condition fell by 45% between 2000 and 2007. and in '07, the states with the lowest ray raid of pneumonia related deaths were arizona and maryland. economists at wells fargo securities estimate there is a one in three chance that the country could slip back in into a recession.

the foe federal reserve could take steps to prop up the struggling economy. the board meets tomorrow. later this week, the investors will get the latest figures on retail sales and give an indication how much consumers are spending. and in these turbulent times, diamonds may be the investor's best friend. diamond prices have been on the rise. because of lower supplies and higher demand in china and in india. and now, several funds based on diamond prices are trying to lure investors who are looking for a safer place to put their money. bargain hunters were out this weekend at the word's longest yard sale. the annual event stretches for 675 miles. this is along highway 127 from michigan all the way down to alabama. and there is the 25th straight year that the sale has been held. >> you're from that neck of the woods. did you ever shop on that at all? >> i didn't. but i know people who go there to find vintage stuff. >> from town to town to town?

>> along the road there. >> quite the shopping. two women are recovering this morning from severe burns. >> coming up, what is believed to have started the overnight fire in san francisco. (( )) it's th get ready. the stock markets open in just an hour and a half here. it is the first time u.s. investors will react to the downgrade of the nation's credit rating. we will take a look at how the asian an european marks did and show us what we can expect. we're live in san francisco where the race for the next city's mayor begins this morning. the full story, just ahead. ,,,,,,,,,,,,

markets around how will wall street respond to the u.s. credit downgrade before our trading session starting? and how markets around the world are reacting today as well. >> did he change his mind? the speculation surrounding ed lee's scheduled announcement this morning. good morning, everybody. it is monday, up and at them, august 8. good to have you on board. i'm frank mallicoat. >> i'm grace lee. get you started on monday, a little traffic, a little weather, a little fog, a little mist. >> a lot of fog. some mist. what is nice this time of the

year we know exactly what we're going to get, we get the low clouds and fog. and that is pretty thick through the coastline. a little sunshine. and 60s in san francisco and oakland. and 80s in concord. mid-70s san jose. and let's check out the roadways with elizabeth. >> thank you, lawrence. still following police activity in oakland where they still shut down the 66 avenue off-ramp coming up northbound 880. so we will continue to follow. this and they should be reopening streets in the area shortly but in the meantime, back to you guys. all right, guys, thanks. it is nearly 5:00 on your monday now. it could be a rocky ride for the stock market today. stephanie trong joins us now from our newsroom to explain how the rough trading day began overseas. and it wasn't good either. good morning. >> good morning, you're completely correct, it is not good. and investors are preparing for the first full day of u.s. stock markets since the standard and poor's downgraded the credit rating. and in asia, the market hit big hits again tod