and out of the blue, a wild ride and a narrow escape caught on video. how it happened, coming up. captioning funded by cbs >> and good morning, everyone. appreciate you joining us. i'm terrell brown in for betty nguyen this morning. we begin with the stock market sell-off that started yesterday in europe and sent wall street into a sharp decline. this morning the downturn reached asia and today we could see round two in europe. this morning alexis ope. christoforous reports. >> reporter: panicked investors unloaded stocks thursday. the dow shed 419 points. of the 30 stocks in that index, only one, walmart, was up. renewed worries about european banks triggered the sell-off. germany's dax index lost more than 5% of its value amid news

that economy has stalled. >> we have still a very negative environment. >> reporter: analysts at morgan stanley say both the united states and europe are dangerously close to a recession. >> everyone's feeling it. you can't put your head in the sand and think that we're immune to a recession. >> reporter: the losses on wall street wiped out nearly all of the gains over the past five trading days. some investors who bought stocks recently turned right back around and sold. the impulse to sell was also fed by news that more americans joined the unemployment line last week, 3,000 people waited outside for hours thursday at a job fair in atlanta. about 20 were treated for heat exposure and exhaustion. adding insult to injury, consumer prices jumped last month, which means americans are paying more from everything from gas to clothing. existing home sales were down in july and manufacturing has weakened in mid-atlantic states. as stocks slid downward, money flooded into u.s. treasuries and gold.

>> everyone's jumping on this gold wagon. >> reporter: gold reached another high of $1,822 an ounce as investors look for a safe haven in a stormy market. alexis christoforous, cbs news, wall street. >> to the outlook now on overseas markets. charlie dagata has that part of the story, over to you. >> reporter: i hate to say it, here we go again. european markets slid back between 1% and 2%. investors are bracing for another bumpy ride to say the least, after huge losses yesterday and another back slide in asia overnight. asian stock markets sank again following thursday's big losses on wall street. japan's nikkei opened down 2.1%, hong kong's hang seng sled 2.4%. at one point south korean stocks tumbled more than 6%. analysts say there's still room to fall. >> we think that the full implications of the slowdown in growth in developed markets is not yet fully reflected.

>> reporter: a barrage of bad economic reports collided with fresh worries about the health of european banks triggered a global sell-off in stocks. european markets suffered huge losses on thursday here in london, leading shares lost $100 billion in one day. european banks are taking the biggest hammering, plagued by continuing fears italy and spain may not be able to pay back the huge debts they owe. european traders say it's crucial governments start finding real ways to solve the debt crisis. >> it makes no sense for financial markets just to have talking politicians. we need more long lasting solutions. >> for now analysts say the only thing that's predictable about global markets is that they'll remain unpredictable. investors are looking for a safe haven. they're snapping up swiss francs

as fast as they can and there may be another high for gold again today. the grounds shook and nerves were rattled this morning in northeast japan. a strong earthquake shook the same area devastated by the quake and tsunami this spring. the magnitude 6.8 was located in the pacific near the same location near the disastrous quake in march. no significant damage was reported. in afghanistan the taliban is claiming responsibility for a major attack on a british compound in kabul. at least seven afghans were killed and the fight was going on hours later. mandy clark reports from the afghan capital. >> reporter: the insurgents attacked at dawn, detonating a large bomb outside the british office in kabul. suicide bombers followed. armed with machine guns and rocket propelled grenades they forced their way inside the compound. what did you see? "i live across the street. this morning there was an explosion and i walked out to

look at the bomb side when a second white corolla exploded" says 18-year-old mustafa. police are battling to clear the explosion. nato troops are on the scene but afghan police are leading the operation. gunfire and explosions rattled through the compound. there are reports one suicide bomber detonated himself inside the building. a number of afghan security forces have been shot in the exchange of fire. the taliban has claimed responsibility for the attack to mark the anniversary of afghanistan's independence from great britain nearly 100 years ago. mandy clark, cbs news, kabul. in libya, nato war planes bombed targets near moammar gadhafi's compound in tripoli. in what could be a major turn in the six-month war the rebels claim they've seized the last operational oil refinery that was still in government hands.

israeli war planes struck targets in gaza this morning, at least one person was reported killed, more than a dozen others injured. the raid comes one day after multiple attacks inside israel killed eight. the attackers apparently were palestinian militants from gaza. and syrian president bashar assad pledged he'd stopped the crackdown on pro-democracy protesters will be tested today, as they are expected to stage more big rallies calling for his ouster. president obama said on thursday assad had lost credibility and should go. the president is beginning his vacation this morning on martha's vineyard off the massachusetts coast. the first family will stay there until august 27th, but there's no time off for the republican presidential candidates, they're on the move. joel brown is in washington this morning with the latest. joel, good morning to you. >> terrell, good morning. we're told not to expect any public events from president obama over the next nine days. in his absence you can expect the republican field of presidential hopefuls to be eagerly trying to fill that void.

president obama touched down in cape cod, massachusetts, before heading to martha's vineyard. as he greeted well wishers, the devoted chicago white sox fan held a baby decked out in red sox gear. >> you know i don't usually hang out with red sox fans. >> reporter: this is the president's first full day on the island with his family, but with sagging approval ratings and a slumping economy, some critics don't think he should be there at all. >> he said he wouldn't rest until people went back to work in this country. >> reporter: the president has taken less time off at this point in his presidency than either ronald reagan or george w. bush. >> presidents should take vacations so in that sense he needs time off. it's mental energy, it's mental work. >> reporter: aides stress it will be more of a working vacation with the president mapping out the jobs plan he'll unveil next month. for those going after president obama's job there isn't a lot of time for relaxation. gop hopefuls are sticking to the

campaign trail. >> we don't need an excuse maker-in-chief who assigns blame instead of taking responsibility. >> reporter: rick perry continues slamming the president in new hampshire tuesday. today he'll take his fight to south carolina, where minnesota congresswoman michele bachmann is already trying to win over voters. >> we've been to south carolina many, many times, but we intend to be in south carolina many, many more times. >> reporter: and with the state holding one of the nation's first primaries it's clear she won't be the only one coming back. both perry and bachmann are already heavily courting the support in south carolina's new governor nicky hailey. hailey has a strong base of tea party conservative support. at this point she's not endorsing any candidate any time soon. >> cbs's joel brown in washington, good to see you. thank you. one republican candidate, jon huntsman is taking a fellow candidate texas governor rick perry to task over the question

of evolution. perry says evolution "has some gaps in it" and told a boy in texas they teach creationism too. huntsman said he believes in creationism and trusts scientists on global warming, too. the government will do case by case reviews on immigration court and focus on deporting criminals or those who may pose a threat to u.s. security or public security. those who don't have criminal records will be able to stay in the u.s. and apply for work permits. some republicans are calling it a back door amnesty program. up next on this friday morning, a new round of layoffs at one of the country's biggest banks. and here it comes again. phoenix, batons its hatches at another huge sand storm rolls over the city. i'm phil mickelson, pro golfer.

if you have painful, swollen joints, i've been in your shoes. one day i'm on p of the world... the next i'm saying... i have this thing called psoriatic arthritis. i had some intense pain. it progressively got worse. my rheumatologist told me about enbrel. i'm surprised how quickly my symptoms have been managed. [ male announcer ] because enbrel suppresses your immune system, it may lower your ability to fight infections. serious, sometimes fatal events including infections, tuberculosis, lymphoma, other cancers, and nervous system and blood disorders have occurred. before starting enbrel, your doctor should test you for tuberculosis and discuss whether you've been to a region

where certain fungal infections are common. don't start enbrel if you have an infection like the flu. tell your doctor if you're prone to infections, have cuts or sores, have had hepatitis b, have been treated for heart failure, or if, while on enbrel, you experience persistent fever, bruising, bleeding, or paleness. get back to the things that matter most. good job girls. ask your rheumatologist if enbrel is right for you. [ 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. new all free clear oxi-active.

thunderstorms packing winds of as much as 60 miles per hour soaked the phoenix area and knocked out power on thursday, then came a huge dust storm, the third of these enormous walls of sand and dust a little more than a month. air and highway traffic were disrupted. "cbs moneywatch" on a friday, wall street's latest stumble made for a down day on asian markets. ines foure here in new york, good morning. >> good morning, terrell. asian stocks were sharply lower this morning. tokyo's nikkei and hong kong's hang seng were down over 2.5%. and as we've also been reporting, wall street got slammed yesterday. the dow was down a whopping 419 points. the nasdaq 131 points. reports of large scale job cuts at bank of america, the "wall street journal" and "new york times" report bank of america is cutting 10,000 or more jobs or about 3.5% of its worked force, 3,500 of them this quarter.

b of a is trying to recover after being hit hard by the housing crisis. vice president met with china's vice president this morning. china's vice president expressed confidence in the u.s.'s strength and believes the u.s. can overcome its problems. biden's trip has been overshadowed by the u.s. economic uncertainty. and large employers expect big increases in health care costs in 2012. that's a result of a new survey by the national business group on health. members say they expect their 2012 costs to be 7.2% above this year's and they plan to pass those costs on to workers. terrell, how about a computer that thinks just like you. ibm is working on computer chips that behave like the human brain. they supposedly process data the same way humans digest information and can adapt to

changes they weren't programmed to anticipate, terrell. >> sounds a little bit like irobot or the beginning of it. thank you so much. coming up, your weather forecast. and look out, a terrifying moment on a comeback line drive in chicago. [ female announcer ] now, give dry, damaged hair a whole new life! with aveeno nourish plus moisturize. active naturals wheat formulas target and help repair damage in just 3 washes.

for softer, stronger... ... hair with life. [ female announcer ] nourish plus. only from aveeno. always infinity. while most pads contain fluff, always infinity is made with a revolutionary material, infinicel, that forms to your body and absorbs up to 60% more than kotex regular ultra thin. always infinity. here's a look at the weather in some cities around the country. thunderstorms and 85 in new york. 89 with thunderstorms in miami.

sunny, 83 in chicago, 108 and sunny in dallas. sunny and 86 in los angeles. it's time for a check of the national forecast. the latest satellite picture shows a few areas of scattered clouds in the southeast and northeast, a big batch of thunderstorms producing heavy rain and the west coast is clear. later today the central rockies and central plains could see heavy rain, hail and a chance of tornadoes. scattered showers and thunderstorms range along the east coast from the carolinas to new england. the west coast storm free. texas and the southern plains remain hot and dry. sports this morning a scary incident in chicago, white sox pitcher phil humber hit in the face by a line drive to the mouth. he got up and was okay but he was taken out of the game. that ball was hit by indians kosuke fukudome. he later tripled into the right field corner for the go ahead run. cleveland beat chicago 4-2.

bottom of the ninth in anaheim, angels walk-tough two-run homer off texas. even with the 2-1 victory angels behind the rangers in the a.l. west. fill phil's john mayberry smacked a two-run homer to the delight of the phillie fanatic, that homer added to the best record in baseball. philadelphia leads the n.l. east by 8 1/2 games. this was supposed to be a goodwill game in china during vice president joe biden's visit to beijing, when a foul called between georgetown university, a violent brawl erupted. the game was called off. the chinese fans pelted the american players with bottles and other debris. the two teams are scheduled to play sunday night in shanghai. so much for goodwill. when we come back, another look at the top stories. this is not the proper way to pull into a gas station. a wild ride and a close call in texas. ride and a close call in

texas. the only hair color that's clinically proven to be less damaging. for a healthy look... look no further than natural instincts. it's all good. it's pro-cool technology releases armies of snowmen masseuse, who cuddle up with your soreness and give out polar bear hugs. technology. [ male announcer ] new bengay cold therapy. the same technology used by physical therapists. go to bengay.com for a 5-dollar coupon. excuse me? my grandfather was born in this village. [ automated voice speaks foreign language ] [ male announcer ] in here, everyone speaks the same language. ♪ in here, forklifts drive themselves. no, he doesn't have it. yeah, we'll look on that. [ male announcer ] in here, friends leave you messages written in the air. that's it right there. [ male announcer ] it's the at&t network. and what's possible in here is almost impossible to say.

but a spike in gold prices is leading to a brazen new trend in the bay area. where thieves are literally ripping jewelry from their victims' necks! dropping the ball in the bryan stow case. l-a's police chief speaks out for the first time. why he has no regrets. and.. a northern california woman could be rich.. just for cleaning out her storage locker! the historic treasures found right under her nose. join us for cbs 5 early edition ... beginning at 4:3,,

on the "cbs morning news," here's a look at today's weather. severe weather headed back into the central rockies and central plains, light showers and thunderstorms move into the northeast this afternoon. in the west it will be cool and sunny along the coast with warmer temperatures inland. here's another look at this morning's top stories on a friday. investors and analysts around the globe are wondering how long the current stocks slide will last and how far the markets would fall. at least nine are dead after a daring double suicide bomb attack at a british compound in the heart of kabul on afghanistan's independence day. good samaritan in philadelphia is being praised as a hero for saving a little girl's life. on tuesday a 2-year-old ran into the street in front of a car. a neighbor named david lee reacted quickly and pulled her to safety.

>> it was hot so i said let's go down to the park. good thing we went down to the park because i was right there to do something. i didn't know what i was doing but i was doing the right thing. >> the little girl has a scrape on her arm and lee injured his leg. no charges were filed against the driver. two people aboard a u.s. airways plane from new york to charlotte, north carolina, were overcome by fumes. the plane landed safely in charlotte. the two were taken to the hospital for observation. the source of the fumes has not been determined. in less than a week after five people were killed when a stage collapsed at the indiana fairgrounds there was a similar tragedy in belgium, five people were killed at an outdoor music festival east of brussels, this happened thursday when a violent thunderstorm flattened tents and brought down trees. at least 73 others were injured. two men are lucky to be alive in texas after a wild accident caught on video. they walked into a service station when an suv comes tumbling into the picture and

slams into the cars at the pumps. watch again. the two men barely had time to jump out of the way. everyone though is fortunate to have their lives this morning. no injuries were reported. then there's this guy in illinois. look carefully at the left side of the pickup, trying to slowdown flintstone style dragging his feet on the ground. he finally stopped by hitting a couple of cars. he was arrested for reckless driving. not surprised. this morning on "the early show" we wrap up a busy week in campaign 201 from the iowa straw poll to the president's vacation. i'm terrell brown, this is the "cbs morning news." [ groans ] you okay? i'm not looking forward to my flight. try this. bayer aspirin? i'm not having a heart attack. it's my back. no, this is new bayer advanced aspirin... clinically proven to relieve tough pain twice as fast as before. what, did you invent this or something? well, my team did. i'm eric first, lead scientist at bayer.

wow. look. it has microparticles. it enters the bloodstream faster and rushes relief right to the site of pain. better? great! thanks. [ male announcer ] new bayer advanced aspirin. extra strength pain relief. twice as fast. test our fast relief. love it, or get your money back. ♪ [ female announcer ] nutri-grain -- one good decision... ♪ ...can lead to another. ♪ ♪ with real fruit, more of the whole grains your body needs, and a good source of fiber. nutri-grain can help you eat better all day.

with the slumping stock market and lingering unemployment, the housing crisis in this country has been pushed out of the headlines lately but it's still with us. mortgage rates dropped this week

to their lowest level since the government started keeping track in 1971 and that's no help to the millions of american homeowners who are still struggling to avoid foreclosure. elaine quijano reports. >> reporter: suzette paris spent her retirement savings trying to stay out of foreclosure. >> i expected to be here for a very long period of time but unfortunately it didn't work out that way. >> reporter: the taxes and fees on her condo in suburban new york went up, but her paycheck stayed the same. you tried to modify your loan. >> i did, i tried to modify my loan numerous amount of times with my mortgage company and they kept saying no, no, no, i fell behind, i called them, they said sorry, we can't help you. >> reporter: she couldn't find a buyer so she turned to realtor mark boyland, a specialist in short sales. >> 2008 it was 1% of my business, last year it was 36%

of my business, this year it might surpass 60% to 70% of our closed business. >> reporter: in a short sale a bank agrees to let a homeowner sell for a price below what's owed on the mortgage. homeowners avoid foreclosure. banks avoid being stuck with another foreclosed property. but short sales are notorious for complications like paperwork delays and banks pulling out of deals at the last minute. >> initially the short sale system if you could call it that really wasn't a system. it was broken, each lender had their own process, each investor had their own guidelines so it was a mess there for a while. >> reporter: that mess only contributed to the glut of distressed properties in the real estate market. so last year, as part of a push by the obama administration to reduce foreclosures, the treasury department unveiled a program to simplify short sales for struggling homeowners. banks must respond to a short sale request within 45 days. homeowners are also eligible for

$3,000 in aid to move. suzette paris has already started packing as she waits for a short sale to come through. and how do you feel about that? >> i have a lot of mixed emotions but i think that because i've gone through this for so long i'm just at peace with saying listen, whatever we have to do, to try to start over, that's what i'm going to do. >> reporter: by one estimate, short sales could prevent another 275,000 foreclosures this year alone. elaine quijano, cbs news, white plains, new york. coming up later on "the early show," what's up with the markets? new york city mayor michael bloomberg looks at how to ease unemployment. and a record summer for hollywood, we'll look at the box office winners, all that later on, on "the early show." that will do it for this friday morning's edition of the "cbs morning news." i'm terrell brown. have a great day, everybody and a great weekend.

-- captions by vitac -- www.vitac.com

,,,, a your realtime captioner is linda marie macdonald. is it may not be a