the opening bell rang 30 minutes ago. what is certain to be another wild day. we'll go live to the floor of the new york stock exchange. investigators are at the scene of an early morning fire trying to determine what the source may have been. it's a jail break in reverse. someone tries to break into a california jail. also, trash talk at one bay area neighborhood. the messy yard that's now led to a lawsuit. mornings on 2 starts right now. good morning. welcome to mornings on 2. i've dave clark. >> i'm tori campbell.

in the news for you an investigation is underway into an early morning fire in san francisco. this started about two hours ago in the neighborhood known around the world. ktvu's paul chambers joins us. >> you can see crews are coming in and out of the area. the call came in at 5:00 of a structure fire. once on scene they could see flames coming from the building. investigators believe the fire was in the rear of the belding that's shared between a clothing store and the people's calf fai. nearly 75 firefighters were working the incident and checking for hot spots. >> the fire quickly got into the attic seas and spread towards the bravo building, mean the delta building to the right.

>> reporter: no one was injured as of right now. people evacuated themselves from the area because of heavy smoke in this area. i just spoke with one of the battalion chiefs. he told me last week there was a problem with electrical wiring in the back of the building. they needed a new source. they have an auxiliary source. that part of the commute has been fixed. we will stay on top of it. reporting for ktvu, channel 2 news. it's already been a volatile morning for the market. what's moving the markets today? >> reporter: let me start with good news because i don't often get to do that. the weekly unemployment numbers

are in, down to 395,000, the number of people filing for first time benefits, about 7,000 lower than the week b the 400,000 number is the key mark. we need to be consistently below that when that first came out, investors weren't worried too much because they were worried about the debt crisis in europe. that faded. stocks are going like a ping pong ball. the ask you to up 121. the nasdaq up 38. the s&p 500 up 15. so what is the fear over in europe? it's the debt crisis. what is that all about? the debt crisis is france today. the idea is -- we're eat united states of america. we're one country, many different economies in each statement of the euro is a bunch

of different countries, a bunch of different economies, a bunch of different political systems. some have the countries have indebted themselves so much that they need hoght every countries to help out. if they go bankrupt, someone has to eat it on all of the bailouts and each of the small countries faces that. someone will have to eat this. it's unclear who would be left holding the bag. that's the fear creeping over from europe to our side of the pond. >> it's hard to predict this. usually august is lighter trading. not many traders. you think the volatility may slow down in the days and weeks to come? >> reporter: you're exactly right. usually people take a break in the summer, kind of like

congress. unfortunately, congress is the only one out on vacation right now. investors are back. talk to e trade and others, and the volatility is here to stay for awhile. >> you can get continuous coverage. just go to ktvu.com. a fer started around 11:30 sunday night on jackson street. 84-year-old marilyn postally and her care taker connie yim died on tuesday. firefighters originally thought cigarettes started the fire. yesterday they said the exact cause is still under investigation. a smoky fire at a sacramento

recycling yard broke out. while firefighters positioned their trucks, a company manager jumped into a tractor and started pulling apart burning debris. firefighters said there wasn't a water pressure problem. they just needed to get their trucks closer to the fire to increase the pressure. one firefighter was injured and was hospitalized overnight. the finance manager for a santa rosa grade school will be charged with embezzlement. she stole all $500,000. she wrote checks for as much as $30,000 to support a drug habit. school board members said they're shocked. they're funded by grants and donations. classes will resume on monday as

scheduled. town officials are hoping to get a judge's decision to lay off six employees. they want to outsource. a judge issued a restraining order. today the judge will decide whether to lift the order or keep in in place. a therton planned to outsource. the republican presidential candidates are scone verging on iowa. we'll have a live report from our washington, d.c. newsroom on which candidate is expected to be the focus of tonight's debate and the two big name republicans who have not officially announced their running but they are still headed to iowa. a san carlos homeowner faces a public nuisance lawsuit because of too much clutter on the lawsuit. the city filed charges

against'sster adet. she failed to remove garbage, weeds and overgrown shrub ri despite repeated notices. adet said the city is wasting its money because there was no trash in her yard on the date the law south was filed. we'll have a live report in about a half an hour. authorities say they have just called off a search for someone trying this break into fulsom prison. the officers patrolling the dam spotted him doing it with night vision equipment. this happened about 1:30 in the morning. after about a four and a half our search with police dogs, no one was found. the trees presser -- trespasser

did leave behind a bike. bart has a warning for riders. protesters may try to disrupt the system as early as today. bart's website said the demonstration is tied to last month's fatal shooting. that shooting prompted chaotic protests in san francisco last month. bart said the repeat of those demonstration cost force it to temporarily shut down some bart stations or make other changes on short notice. we want to check in with sal and see what's happening on the roads. >> good morning once again. traffic is going to be okay if you are driving in many areas. the sensors are showing it's busier but not all that bad getting into the main part of the valley. san jose, we're off to a decent

start. it doesn't start getting crowded on 280 until later on. 280 at 380 is a choke point. we have slow traffic. nimitz is getting busier. give yourself just a little extra time. i know that's in the easy to do. this is 880 near the coliseum. there's a raiders game tonight. we'll start seeing traffic earlier in the day. some of the raider nation shows up to tailgate. let's go to steve. sal, we have some sun for some but there's a lot of fog. inland areas already getting the sun and temperatures will cool

down, lows in the 50s. highs instead of 90-degree temperatures low and mid-80s. fog and sun. sunny and breezy at times. today, tomorrow about the same. looks like everything is poised for a cooldown, a rather strong system for mid-august is developing and will take shape and dive into northern california and probably early next week as well. fog has been there all week long but it was compressed, which means more fog and low clouds. highs 50s and 60s by the coast. should be around 67. we're going 64 for would the -- downtown san francisco. the low clouds are from eureka to los angeles and san diego. cold in the mountains. truckee is 34.

38 at tahoe. the nights are getting cold fast. 50s already. 53 to 59. 59 in hayward. 55 san jose. 56 fairfield. getting an increase in the fog. west, southwest fairfield at 20 with a gust at 30. that is double what it was. that's a shine that inland temps are struggling. high pressure is building in the pacific right there. as it does that's driving this system deeper. as it does it gets the fog and enhancing it. more fog and wind now still 80ss. it looks like a rather significant cooling trend along with local drizzle as that system begins to get closer. cooler, sunny, a little breeze. that's the winds out of the west, southwest. 60s, 70s, 80s, ukia, clear lake.

79 wall nument creek. alameda 66. 82 danville, pleasanton, livermore all close. 76 san jose. redwood city close. 50s, 60s along the coast, in the city and south san francisco. low clouds and fog and with your weekend in view, it does look cooler. why a big battle is heating up between safeway and folks who gather signatures outside the grocery store. >> plus, an about face by rupert murdoch. the special challenges facing some in china after a new round of flooding.

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good morning. sunny, breezy with low to mid-80s but closer to the coast and bay dealing with 60s, 70s and 80s. tonight republican presidential candidates will be debating in iowa. as alison burns reports they're all trying to take down the front-runner. >> reporter: we just found out that minnesota congresswoman michele bachmann has canceled her lone event in iowa presumably to prepare for tonight's big debate. it comes a few days before the closely watched iowa straw poll. gop front-runner mitt romney is not participating but his rivals will trito present themselves as his toughest competition. this week they have all been talking about the country's economic turmoil. >> we have to lower the tax rate

on the job creators. >> you have to tell people the truth. >> former alaska governor sarah palin is not eve in the race or -- even in the race but she's taking her bus to the iowa state fair. rick perry will be in iowa starting sunday. reporting live from washington, d.c., alison burns, ktvu channel 2 news. a uc berkeley graduate claims standard & poor's made a mistake when downgrading the nation's credit rating. he said s&p based it on projections of the u.s. debt over the next 10 years but he claims those projections were wrong. s&p has reportedly acknowledged the error in a private conversation with the u.s. treasury but as no plans to --

has no plans to change the downgrade. the heads of jpmorgan chase and citigroup -- investors are worried about the exposure. analysts say the banks have undergone changes and are safer. california court employees are bracing for the possibility of more layoffs and reductions in the number of lours they work, but judges in the state do not have the same worries. the state constitution prohibits reducing judges salaries, a provision designed to protect judges who might make an unpopular ruling from backlash. a battle is brewing between safe way stores and the people who are paid to gather signatures on petitions. safeway said signature gatherers

borgt the customers, block the store entrances and ignore the store's solicitor rules. however, the signature gatherers are accusing safeway of violating their free speech right. safeway said they will go after the signature gatherers. media giant ruche proof -- rupert murdoch said he will not step down but he is offering some new details into his succession plan. according to reuters, his son is not the top choice but instead his to lieutenant. heavy rain is causing a new round of flooding in southern china. some streets are completely submerged, blocking entrances to bus station.

some drivers are being forced to push their vehicles and shops are closing up to get rid of the water. the flooding short-circuited many homes and businesses. so people are forced to clean up in the dark. president obama heads to michigan today. he will be visiting a factory that he says holds the key to future job growth in america. it's a special treat at the iowa state fair. the well known politician said she can't wait to try the butter on a stick. >> traffic looks good on highway 24 driving past lafayette. we'll tell you more about the morning commute straight ahead.

the dow is up almost 200 points, big reason jobless

claims it. was below 400,000. that's considered a good level. of course, there's still ongoing concerns about the didn't crisis. the s&p is up 23. this morning president obama heads to holland, michigan, to showcase a hybrid car battery plant that was built with stimulus funds much the president will tour the plant that received a $299 million stimulus grant. the plant will employ 500 people. last year the president attended the ground breaking of another battery plant in holland. the white house said innovative technologies will play a key role in creating high quality jobs. sarah palin is along forward to visiting the iowa state fair this week especially to eat a

you neck treat -- unique treat. that's deep fried butter on a sphifnlgt hoeffel, not for people who of what their cholesterol. they dip it in batter, deep fry it and serve it on a stick. >> whenever you say butter on a stick, they think of butter running down. >> it tastes like a cinnamon roll. >> they use an eighth of a under of butter for each serving. >> so it mixes in with the bat are and becomes part of the cinnamon roll. he'll pass. check in with sal. some delays with ace trains. >> we had a switching problem or they had a switching problem i should say. we as commuters are delayed if you're taking ace train number five and number three. number one got to san jose on time. we have slow traffic in the usual spots on highway 4 in

antioch, pittsburg. pleasant hill to walnut creek a little dicey there. 80 westbound pin ole. slowing down to central san rafael. interstate 880. there's a raiders game tonight. well, a lot of people will be at the coliseum. the game is at 7. they will probably be there at 12. traffic is looking good getting up the highway 17. weather for tonight's game, steve? >> i think some will be there at 9:00 this morning. it will be cool. temperatures will be in the 60s, a little breezy. outside might be a little cool. we vair a bigger fog bank -- have a bigger fog bank. this will take us into the

weekend. today and tomorrow probably about the sai. we topped out on those temps on tuesday. we had a lot of 90s. yesterday they came down two to four. by the way, i was talking to a friend and colleague of mine, tahoe 38. truckee 34. usually august is a pretty good month in the mountains. feels like fall's in the air to me. another system is digging into the pacific northwest. they're getting stronger. maybe by next tuesday our first cold front of the season could come in. 60s, 70s, low to mid-80s. for most of the bay area a cooler day. this pattern is with us for the next five to seven days. a bizarre bay area story. police round up a cowboy at a

ham store. we're live in san carlos where the city is butting heads with this homeowner. also, a raid on video pirates. the big hall of bootleg dvd's here in northern california.

neighbors say it is not a pretty sight. neighbors are complaining. ktvu reporter tara moore are a thy has more. >> reporter: it appears the homeowner has cleaned up the yard, but neighbors have been filing complaints for years. neighbors said it had three foot tall weeds, garbage piling up and leaning fences. the only real problem appears to be the overgrown bush. if you look at some of the other homes they're very well kept. city leaders say people pay a lot to live here, so it's understandable why people are upset. the homeowner is esther adet.

she has told a local newspaper ones that the city is being heavy handed that show's a single moghts are of triplets and thinks the city is wasting time and money. >> i would like to see it brought up to a good condition where repairs are fixed, where weeds are pulled out, where shrubby are taken out that's overgrown. it brings down housing values, the aesthetics of the neighborhood. >> reporter: the city attorney said the city rarely files suits like these. he said the intention is not to issue a fine or penalty but to get this cleaned up. the city says it may press forward with the suit anyway. i'm tara moriarty.

federal investigators are looking into what they say is a large scale dvd pirating operation. they searched the elk grove home fooling u.s. postal service investigation. the people had been receiving count are fit dvds out of china and selling them. most are disney movies. >> looked like people weren't getting what they ordered. secondly, if they got something, it was damaged. from the looks of the complaints, looked like they were gray marketed items. >> authorities say the johnsons operated several websites which had been suspended. the investigation is ongoing. police in marin are investigatingen alleged fraud

attempt. yesterday a woman reported getting a call from a plan claiming to be an fbi agent investigating a sweepstakes fraud. the caller said she had won $600,000 but she needed to send him $3900 to get it. he also reportedly said that a twin cities police officer would call to confirm the story. a short time later she got a call and the caller i.d. displayed the police department's number. when she called the police department herself, she realized this was all a scam. this morning a ?or man is -- santa rosa man is in jail for breaking into a honey ham storm. the. when police arrived they found mark edward church filling bags with food and other goods. another bay hear business

will hold a fund-raiser for missing student michelle le. she was last seen at the hayward kaiser hospital. 20% of all sales will be donated to the le family but only if guests bring a missing flier of her. police are treating le's disappearance as a homicide. they said there are indications they will have the case solved soon. oakland police are tracking down to find out who killed a 3-year-old boy. a gang feud led to the shooting of 3-year-old carlos nava. they said they have a person of interest in custody. a big drop in the stock market is hurting a lot have

portfolios. cal per is the retirement fund for california employees and it has lost $18 billion since the beginning of july. employer contributions may go down if the economy continues to decline. that has a lot of people worried. >> i took a significant pay cut to come and work for the state. for me the retirement was a good incentive. >> the state controller wants to reassure state employees and says there's no reason to panic. last year about 30,000 state employees retired. >> the super committee is charged with coming up with a plan to reduce the nation's deficit. republicans picked their sick, three from the house, three from the senate. now we are waiting for house minority leader nancy pelosi to announce her three choices. the committee has to come up

with a vote by thanksgiving. three south bay projects, a plan to extent bart and hundreds of millions of dollars. jade hernandez has more on what the change will bring to commuters. >> reporter: we moved to southbound 880 just before the montague exit. there aren't any car fuel lanes yet but if threngs go as planned -- things go as planned, carpool lanes will materialize. initially the funding had hinged on selling states bonds but the commission voted yesterday to give the money immediately to the project. so where's funding head. the majority is going to freeway improvement. $85million to merging lanes from palo alto to mountain view.

more than 71 along 880 to san jose so additional carpool lanes could be added. we informally asked drivers. >> i always look at it as good for the economy, especially locally. >> i think that would be awesome. traffic is so horrible in the morning. all day. traffic starts at 3:30. that's awesome. >> reporter: this is an artist's rendition of where the rest of the money will go. $40million to bart's 10-mile extension $10 million along the past the bart extension would take. the cato is expected to be the

fourth to start. reporting live, jade hernandez. let's get right to sal. how are we looking, sal? we're doing okay. we have slow traffic. we have slow traffic in marin county on southbound 101 heading down to the 580 interchange. it his getting slower, especially on novato. if you're driving on the peninsula, 101 and 280 -- 101 is the slowest. 237 traffic. that traffic is going to be slow crossing 880 and continuing. we also have slow traffic in parts of 280 but not here downtown. let's go to steve. sunshine for some. had low clouds making it to san

jose. it will be sunny, nice, 76 for the high side. warm towards care though ga, los gatos. it was warmer on tuesday. that's not so much the case. hold on. i have to go over here and do a little dance, tori. i have to fix the computer. there's a bigger fog bank and temperatures will start to come down a let bit. as we see that fog bank move inland. the big news as we head towards the weekend. more of the same today, tomorrow, although temperatures tuesday near 90. more fog and drizzle. the fog bank has been there, but it was held in check. this squashed it a little bit. it's lifted and allowing it to move. so coast and bay stay in the 50s, 60s and 70s.

not much change here. 50s on your current temperatures it. looks like these will not be going anywhere soon. a system coming down out of the gulf of alaska. so fog, sun, cooler, windy at times, tooters san pablo bay. 80s for some. 60s and 70s. mainly inland areas. looks like about the same friday and cooldown and we'll carry that into early next week. it is 20 minutes before 8:00. bay area fans are clearing the kickoff of another pro football season. the raiders are hosting the cardinals. the game comes a few weeks after the settlement that ended the four-month-old lockout. we'll air the game on tape delay

beginning at 9 p.m. it's in the being shown live because the game is not sold out. last night giant fans hit the hear for a slumber party. tickets were going for $200 a person. fans were also given a chance to have their picture taken with the world series trophy. everwill have to be at the field by 9:00. a dramatic rescue at sea. we'll go to san diego to learn how two marine corps fighter pilots were saved. we'll find out if the streets of london were quiet and how they're using technology to catch looters.

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stocks are rising after fewer people joined the unemployment line, below 400,000. cisco reported profits. the dow, by the way, has moved more than 400 points every day this week, the first time that's happened for three days in a rope since 2008, down about 500. rote now it's up 244, getting close to this 11,000 mark. meanwhile, apple is hoping to hold on to its new title -- most valuable company inmark it. s with worth $38 billion. the previous one, excommon mobile, $331 billion. apple stock is up, exxon stock

sup 2 own 7%. exxon has held the top spot sense 2005. less in oakland moving ahead with their investigation to capital of gunman who shot and killed a 3-year-old boy. maureen naylor has more. >> reporter: police say they are in the middle of the investigation and they are confident they can wrap the case up in a few days. officers are looking for who shot and killed 3-year-old carlos nava. they have a person of interest in custody. the oakland man is being held on an unrelated charge. police say he mr. not be released anytime soon. >> the investigators are working dim jptly to connect the dots and find out what his role was. >> reporter: the little boy was shot and killed while riding on his toy car along international

boulevard monday afternoon. he and his mother had just left a pizza parlor. police said a gang feud led to the fatal drive-by shooting. now they want to impose a curfew and ban gang members from con gre gaiting. the family wants justice for the little boy. maureen naylor reporting. british authorities are now using facial rec negs technology to identify looting suspects involved in riots. earlier this morning british prime minister david cameron said the government will be reaching out to the united states police department who face similar challenges with street gangs asking for device. >> of course the problem is not just gangs. there are people who thought it would be okay to go in and steal. it's not okay, and these

peernlings too, will have to face the full consequences of their actions. >> british officials also said they are preventing people from using social media to start riots. one person created a blog called catch a looter. it shows pictures like these of lay ledged looters, urging people to call police if you recognize anyone. police are also releasing photos taken from security cameras. we're following overnight news from the san diego area. the u.s. coast guard has now rescued two crew members from a fighter jet that disappeared overnight over the pacific ocean. good morning, matt. >> reporter: the good news in all of this, those two marines

are recovering. they're at the naval hospital in stable condition after their fa-18 hornet jet crashed. it crashed southwest of san diego. the pilot and weapons system officer were flying on a mission from mer a mar here in san diego when they lost communication. a second pelt radioed for help and reported seeing debris in the wart. that's when the coast guard launched a so much. the navy helped in the search. around 2:30 this morning, luckily the crew herd marines yelling and using their emergency life jacket whistles much the marines were hoisted into a curt and -- helicopter. the coast guard said it's a scenario they actually train for. >> once they got on scene, the

coast guard cutter was able to hear them calling for help. they spotted them in the water, and they were able to get helicopter crew to the exact spot. from there they were able to hoist them into the helicopter and bring them back to san diego for medical attention. >> reporter: back out here live, parts of the aircraft have been recovered. that's the very latest on the story. i'm matt johnson. >> thank you, matt. five more nato service members were killed in afghanistan today. officials said the troops died in a roadside bombing in the southern side of the country. august has been an especially deadly month in afghanistan. so far, 51 foreign service members have been killed. the taliban is now dispight

the claim by an american general that the taliban fighters responsible for shooting down a helicopter in afghanistan have been killed. yesterday general john allen said the fighters were found and killed. the taliban said they were not those who shot down the helicopter. 30 americans died in that helicopter crash. a hotel stay on the splup may -- peninsula may soon cost you more mony. it's tied to a tax increase.

charming farmhouse. right next to my posh castle! i'm sensing a theme here. well, i am the queen, dear sister. get your annual ikea catalog today.

welcome back. fire crews are close to containing a 200 acre brush fire in santa barbara county. it started yesterday afternoon in the eliso canyon area.

most of the fire crews have been released, but some are staying behind. san mateo county reports the value of the agricultural crops fell. overall earnings fell 3.7% compared to last year. some of the biggest declines were from artichokes, flowers and potted plants. the number of organic farms increased from 11 to 15 and the total acreage used for organic farming doubled. in november voters in two bay hear cities will be asked if they want to raise money for their cities by increasing taxes on hotel rooms. if the measure on the november ballot is approved, redwood city's tax would increase from 10% to 12%. foster city from 8% to 9 1/2%, still the lowest in the county.

both cities could benefit from more visitors. a candidate for mayor in baltimore is giving his campaign a little edge. see, the song is for frank conaway. he posted this song on his website. he wants to attract a more diverse group of voters. the song criticizes the other candidates running for mayor. most of them are taking it in stride. they say this is conaway's personality and his sense of humor. >> it cuts through the normal political type of campaign. let's check in with sal. >> i'm down with that. traffic is moving along pretty well. no major problems on the south bay, northbound on 17 as you

approach 835-67-8985 northbound getting -- 85. 85 northbound getting up to cupertino. tonight there is an oakland rairds game, an exhibition game against the arizona cardinals. they will start showing up early. it could be crowded at the collie seeming. take bart and hang out at his rig for awhile. that way you don't have to drive. coming up to the bay bridge toll plaza, that's about a 10-minute delay. let's go to steve. >> low clouds, fog, sunny for some. temperatures today inland will come down a little bit. we had upper 80s, low to mid-90s two days ago.

that trend reversed it self. 50s and 60s. also, cool in the mountains larks lot of 30s. 52 santa rosa. 61 at concord. the system dropping down out of the gulf of alaska will get stronger over the next few days. that equals a cooler pattern. cooler inland. 60s and seven-day -- 70s for many. that doesn't look like a big warmup. our seven and 10-day outlooks lean on the cool. a break in the computer theft case on the peninsula. the four young suspects now in custody. investigators are on the scene of an early morning fire trying to determine what caused it. a wild overnight chase through the streets of oakland.

a lot of questions surround the chaos.

good morning. welcome back. i'm tori campbell. >> i'm dave clark. it's thursday, august 11th.

>> a man and a woman are in custody following a wild overnight car chase through the streets of oakland. it began at 11:30 and ended about a half hour later on 11th and webster. it's not clear how the chase started but it involved a chp, oakland police and oakland housing authority. at one point someone threw a gun out of the speeding car. the chase created a dangerous situation but fortunately, no one was hurt. four redwood city boys are accused of stealing computers from a nonprofit agency. the police arrested the boys and recovered the stolen property. the youngest suspect is 112-6789 two are 15. the other is 16. they used a crow bar to break

into the friends of youth. new this morning an investigation continues into the cause of an early morning fire in san francisco. this started about three hours ago in a well-known neighborhood. ktvu's paul chambers has been there all morning. he's in hate hash bury. i just spoke to one of the owners. they're waiting for a pg&e member to turn it off. once on scene, firefighters saw firefighters on haight. the majority of the fire is in the rear. it quickly spread to the clothing store and the nearby cafe. >> it shares the same attic

space with the cafe next door. it's one common building. >> reporter: there are people who live in the apartments near the fire who had to be evacuated. we spoke with the owner of the people's cafe who said he was first told about the fire from a worker. that's when he rushed to the shean. >> everything was burning black and flooded. the floor was all wet, water up to my ankles. the creeling had a big hole. they ripped a hole in the ceiling so the smoke can come out. >> reporter: the fire chief said this will take about two hours to get a determination. pg&e crew members are arriving. we'll stay on top of this and bring you the latest at noon. i'm paul chambers reporting. well, a strong smell of marijuana led authorities in san

carlos to an illegal marijuana growing operation. deputies searched a warehouse on terminal way after getting complaints from neighbors about that smell. they found two men in the process of taking apart an indoor marijuana grow operation. then when deputies searched the house, they found almost 1300 marijuana plants. both of those men were arrested. one minute after 8:00 the san jose sheriff's department will present a plan for jetskies. right now private jetskies are limited. but there's no ban on jet skis used by public ajen spi. earlier this year a wave knocked a surfer unconscious, but he was rescued by someone on a banned jet ski. we're getting new information on the cause of the fatal boat collision.

the pilot of the larger vessel did not see the smaller boat. the crash killed a 30-year-old man when he was thrown overboard. the pilot of the larger boat has not been arrested. police said it appears to have been a tragic accident. watching the economy, it has already been a volatile morning for the global markets. our reporter carter evans is live at the new york stock exchange. i rarely get to talk to you, bue to say. >> reporter: yes. it's an interesting, interesting day on the market. it seems investors are going one way one moment and going the other the next. good news out of the labor market. here this is. weekly unemployment claims. the number of people filing

applications fell to 395,000, 7,000 than the week before. analysts were expecting it to rise. the number to keep in your head is 400,000. we need to be consistently well below 400,000 every single thursday in order to make a accident in the unemployment number. knishlely investors weren't focused on it. they were focused on the -- focused on the debt crisis in europe. things are looking quite a bit better. the dow at one point up about 300 points crossing the 11,000 mark. the nikkei in japan, asian markets closed lower. european markets were flirting with higher numbers. the one thing you can count on is stocks will be bouncing around like a ping pong ball for

some time now. >> what's the mood on the floor? what's the basic mood? >> reporter: i think it's frustration. the pros that do this for a living, they look at the numbers and know what should happen. these types of rock solid facts that we have -- everthey know is out the window because fear is driving the market. >> carter evans reporting live. thank you. why can get continuous coverage. just go to ktvu.com. click on the wall street tab. california schools could be at risk of losing future education dollars from the federal government. the state received a $6 million grant to develop a teacher tracking system. however, governor jury brown cut the funding.

officials took away the grant last week as a result. educators say that could hurt california's chances of getting a spot for the race to the top funding. an east oakland library is joining plate night live to keep kids off the streets on weekend nights. the library mr. stay open until 10:00 p.m. friday and saturday nights through august 27th. the only exception is this friday night because of budget cuts. it was put in place in response to student related shootings. dealing with alzheimer's disease. there's a new bill calling for a new plan. how people affected by alzheimer's are getting a chance how to improve research. bart has an important warning for the hundreds of thousands of riders. protesters may try to disrupt

the transit system as early last today. the planned demonstration is tied to last month's fatal police shooting. that shooting prompted chaotic protests last month. bart says a repeat of those demonstrations could force it to temporarily shut down stations or make other changes on short notice. we brought you these pictures during the situation last time. they will -- we will stay on top of it. let's go to sal. >> we're getting word of a plate accident lear on 237. i'm going to try to show you that picture later on. we'll start off with 80. we had a couple insigh dents on interstate 880. remember, there is a raider game tonight. they're plague the cardinals in

an exhibition football. people will start showing up early and i do mean early. raider fans have been known to show up as early has 9:00 in the morning many i don't know when they open that the parking lot. let's go to the toll plaza westbound. it's backed up for a 15-minute wait. 280 is slow getting into the west valley. i want to move this up a little bit. 237 almost at a complete standstill because of a three-car accident before north first street blocking the two right lanes. they're moving along. it's at a standstill because of that crash. i would use something else. you might want to use the montague expressway.

let's go to steve. a lot more in the way of low fog and a cooling trend. if you like cool weather, everything is setting up for you to enjoy. inland temps, i mean, fresno and sacramento, cooler weather for the weekend. fog, then sun. it looks cooler for inland areas, maybe windy at times, windies have picked up. see the weak systems in the pacific northwest but it doesn't take much. these are getting stronger and stronger, the system that's dropping. coolerring trend will take us -- cooling trend will take us into the weekend. there's a huge push in southern california until you hit the oregon coast. so it's there, large and in

charge. looks like it will play into our weather. cool lows. truckee 34. 61 concord. 52 santa rosa. that is the coolest. it can get hot this time of the year. west, southwest 22 at fairfield. southwest at concord. west southwest oakland. west, northwest napa. tells you everything you need to know. so it's all coming from west going east. that's a cooler pattern. you can get a look at it right there. as that settles in, that will lift the fog. we may get a cold front, one on the weekend and one next tuesday. you look up and see the clouds and go, i haven't seen that in awhile. we are going to really, really enhance this cooling pattern. so more fog and wind.

80s midland. the wind, if you're near the bay or carquinez, 60s, 70s. we'll go 85 pittsburg. 66 alameda. pleasanton, 82. san jose 86. woodside close. 67 san bruno. a lot of low to mid-60s. a big enhancement as we go into the weekend for a cooldown sunday into monday. tonight republican presidential candidates will be debating in iowa and they will all have one target. a hollywood movie about the debt of osama bin laden. why it's causing security concerns. also, the arrest of a twilight star. the charges facing a popular

lacttor.

good morning. an increase in the fog baincht sunny, breezy, cooler. inland warmer than that. 60s, 70s, closer to the coast and bay. republican presidential candidates go toe to toe in iowa. as alison burns reports, their stakes come a few days before the closely watched iowa straw poll. >> reporter: eight republican

rivals will be clamoring to make their mark in iowa tonight. >> these are trying times. >> reporter: it will be the debate debut for jon huntsman, still struggling. but it's michele bachmann and tim pawlenty who seem to be ahead. front-runner mitt romney is not participating but will be fending off the competition. it's a republican who's not in the race who is get ago lot of attention. texas governor rick perry is expected to join the field soon. >> our brightest hour is around the corner. >> reporter: sarah palin takes her bus tour to the iowa state fair after the debate. reporting live from washington, d.c., am son burns -- alison

burns. hollywood is making a movie about the u.s. mission that killed osama bin laden. however, members of congress said filmmakers are being given access to secret information. the same people who produced the oscar winner the hurt locker are make the bin laden movie. the white house said they will only get information that's already available to the public. it's due to hit the movies before the 2012 election. police talked a disturbed man from jumping from a ledge 70 floors up in manhattan. he stood up. police were able to grab him. actually, they say he apologized. an actor from those twilight

love vies was arrested -- movies was arrested in arizona. kiowa gordon was arrested for an outstanding warrant. last september gordon was arrested on dui charges. he did not show up for the court date, so that warrant was issued. a suspicious device found on a side walk caused a bomb scare in fairfield. this happened last night on kingston court. someone reported a tube shape device that appears to have wires steeking out-- sticking out. the device was a tool left by a at&t crew. there was an exclosing on tuesday much the blast blew two employees out of the building, critically injuring them. now investigators say a similar explosion occurred last year.

tuesday's explosion happened when crews were transferring hydrogen gas. the number of homes getting foreclosure notices went down in july. almost 60,000 homes received an knish default -- initial default notice. banks are not taking action as quickly against borrowers who are late. expertses spray it may take years to work through backlog of foreclosed properties. the ocean is calling on investors to buy up thousands of foreclosed properties in bulk suggesting the owners turn the homes into rental properties. that can help boost home values and bring down rental values. families affected by alzheimer's disease are getting a chance to shape a national

plan to deal with the devastating plan. caregivers geared to speak with a federal health official and shared ideas on how to improve dementia research and services and told their stories about finding round the clock care. >> it's a 24-hour job. it's not an eight we want to hear your thoughts, and we'll be sharing some of them -- not an eight-hour job. the information will be presented to the obama administration this fall. and a treatenning attack at a southern california home. this involve last man, his mother and sword. we am a light day.

we'll tell you more about the commute.

a 30-year-old palm springs man is behind bars. robert rays attacked his mother with a sword. she suffered a serious wound to her foot. neighbors say rays is mentally ill and sometimes fails to take his medication. it's not clear if any charges

will be filed. tomorrow a former half moon bay theater star will learn if he will be spending the rest of his life behind bars. john alexander could get more than 100 years due to his earlier legal troubles. he starred in stage productions including rocky horror picture show. you can she him on the right. friends say his battle with drugs led to his life of crime. an internet movement has been launched to pressure the producers of the tv show spes mi street in having -- sees mi street -- sesame street in having better and ernie get married. the nonprofit said they're just friends. more than 900 people have signed the petition on change.org along with asking that they get married and asking for producers

to add a transgender character. we want to check in with sal. any problems, sal? >> it seems busy in the east bay. i want to show you 880 southbound at industrial parkway. there's an injury accident involving a motorcycle. you can see how chloe the -- slow the traffic is with the road sensors turning red. if you want to use the dumbarton bridge, it looks good. let's go to 237. that does not look good because of a crash. 237 westbound at north street. we showed you the dumbarton bridge. i know it's $6. driving up to the tunnel that traffic looks very nice. let's go to steve.

>> $6? that's an outrage. everything is pointing towards a significant cooldown. in fact our 10-day outlooks are on the cool side. you can see some of the fog, the visible satellite starting to show up. it's cooler today. temperatures which topped out on tuesday with some 90s settling into the low 80s. so we're going down two to four. 50s or low 60s. the lows have been stuck for a month. the last time we had across the board weather -- the system is going to get stronger. maybe some rain in northern california. maybe, nothing too heavy. it's possible. we'll keep an eye on that windy at times. not as warm as it was.

60s closer to the coast and 70s. looks like low clouds and drizzle will be picking up in intensity especially as we led into the -- head into the weekend. an overnight blackout in the north bay. what knocked out the lights for thousands of people. also, trash talk in one bay area neighborhood. the lawsuits surrounding this messy yard. it's a jail break in reverse. somebody tried to break into a california prison.

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big cleanup job ahead. the city is responding to complaints about a house on elm street with a public nuisance lawsuit. tara moriarty joins us to tell us how the property looks. >> reporter: if you take a walk down this neighborhood, nans tell us this is a nice place to live. they want the yards well groomed. they want the houses looking good. you see this house with the purple flowery bush, that is the house they are upset b neighbors have filed numerous complaints. they say that this house has been a mess for nearly two decades. neighbors say in the past 12 hours, the homeowner, esther adet has cleaned up garbage,

trimmed trees and moved a bureau to behind this overgrown bush. she has said the city is being heavy handed. the neighbors said she left the house empty for nearly two years and the problem has gotten out of control. >> looked overgrown, messy. used to be cared on the driveway. it's in the nice to look at. >> reporter: the city attorney said the city rarely filed lawsuits like threels but they want the properties cleaned up. the city may press forward with the suit especially since this gave the homeowner repeated notices and she did nothing about it. live in san carlos, i'm tara moriarty. well, the power's back on for 2800 pg&e customers.

about 5:30 this morning the crews finished repairing a substation where the big problem started. pg&e said the damaged peels of equipment needed to be replaced. it began about 10:00 last night. overnight in the sacramento area authorities called off the search for someone who tried to break into fulsom prison. fulsom police said someone jumped over the prison fence early this morning. one of the officers patrolling saw him doing it with night vision equipment. it happened about 1:30 in the morning. after searching four and a half hours with police dogs police found no one. the trespasser did leave behind a bicycle, which was taken away by police. a fire at a recycling yard appeared to spread. it started yesterday at the river city recycling center.

the company manager jumped in a tractor and started pulling apart a pile of burning debris to help get water inside. firefighters said it wasn't a water problem, they just needed to get trucks closer. one firefighter was injured. the finance manager for a santa rosa grade school will be arraigned on embezzled charges. the 42-year-old woman stole almost $400,000 during her five years at kid street learning center. they say she wrote checks to herself every month for as much has $30,000 to support a drug be a bit. school board members say they are in shock. it's funded by grants and donations. classes will begin on monday has scheduled. atheerton town officials are hoping to get a judge's decision

to lay off six employees. the union sued and the judge issued a restraining order. today the judge will decide whether to lift the order or keep it in place. atheerton hopes to save with the outsourcing. the los angeles district attorney's office said it will not charge a woman who was arrested along with the two men charged with beating bryan stove. she drove the two away from dodger stadium the night of the attack but don't have enough evidence to charge hem. they say the woman is cooperating. louie san chess and marvin norwood were in court. they remain behind bars on a

half million dollars bail. today some environmental groups plan to raise the red flag about holding the american cup. they say hundreds of thousands of people drawn to the event could devastate the area. though will address these concerns at noon today during a public hearing at city hall. a high tech crime group is honoring two palo alto officers for solving the murder of a woman. her boyfriend was convicted of her murder and face has possible life sentence on september 9th. the detective and sergeant are now getting a case of the year award from the international hall high technology crime association. the detectives reviewed 4,000 pages of cell phone and text message records to put their case together. a man from hayward will be

arraigned in connection with a hit and run accident that severely injured a young philadelphia phillies fan. andrew vargas was drunk when he hit ryan white a week ago. they say vargas drove off but police arrested him a an hour later in hayward. it has been one year since construction on the new transbay transit system started and they say work is on schedule. the hub will replace the old terminal at mission and first street. the first stage of demolition is expected to be finished by the end of this month. the second stage to instale support structures is already underway. the new terminal is scheduled to open in 2019. a financial boost for south bay projects and the bart

extension plan. ktvu's jade hernandez has more. good morning, jade. >> reporter: there aren't any carpool lanes just yet. we're just before the montague expressway. if all goes as planned next year drivers can see the carpool lanes. this is one of the road projects that was approved for a total of $200 m initially the funding had henged on selling state bonds but the commission voted yesterday to give the money immediately to the project. so where's funding headed? the majority is going to freeway improvements. nearly $85million to merging lanes, 101, palo alto to mountain view. more than $71 million to a project right here along southbound 880 to san jose so additional carpool lanes could

be added. we informally polled a few drivers. >> it doesn't affect me on my daily commute, but i always look at it as good for our economy, especially locally. so i always think that kind of stuff is a good thing. >> i think that would be awesome. traffic is horrible. >> reporter: this is an artist's rendition of where the rest of the money will g $40 million will be fun felled to bart. an additional $10 million to rebuilding cater road. it is expected to be the first project to get underway and the projects to follow next year will be on the freeways. jade hernandez reporting. bart has an important warning for its hundreds of

thousands of riders. protesters may troy to disrupt the transit system possibly as early as today. bart's website said it's timed to last month's fatal shooting at civic station. bart said a repeat of those demonstrations could force it to temporarily shut down stations or make other changings -- changes on short notice. hey, sal, do we have an problems now? >> we're talking about bart and bart would be a great way to get to the oakland coliseum if you're going to the exhibition game with the raiders and cardinals. in contra costa county we have the slow traffic and 680 slow past walnut creek interchange

towards danville. if you're driving on the peninsula traffic is slow. a crash 880 southbound at industrial on the soldier. 237 we have some traffic. let's go to live pictures. 880 check -- oakland. the raiders game is at 7:00. count on seeing people much earlier. looking at 237, it's beginning to get better now that they moved the accident. 8:39. let's go to steve. >> low clouds and fog back in a big way. it just got compressed. that aloud inland temps to warm up. a bigger fog bank, also stronger sea breeze and it looks like we're going into this pattern for awhile. low cloud deck and local

drizzle. sunny, breezy but lot of 70s and 60s as you head towards the west. more of the same tomorrow. cool to mild to warm. the weekend is look cooler as a significant warming trend moves in. high prsh built back on tuesday. well, guess what? stronger system digging into the pacific northwest. it bumps it to the east. still warm to hot but temperatures, they did not warm up yesterday. that was a sure sign that looked like we were on the cooling edge. west, southwest fairfield, gusts of 30, much stronger fog bank, made more of a push. if you have the cloud cover, they're stuck f you have the sun, it's nice. temperatures held in check. they're staying below average. more fog and wind today. as that system and the pacific northwest over the weekend deepens, that's going to really

give us a bigger cooling pattern, maybe only 70s for many locations. fog is cooler. the wind picks up but 80s or 90's. fairfield only 81. 66 alameda. 87 brentwood. the trend is to bring the temps down, dublin, pleasant ton. dublin might be 79. 60s on the coast. 60s in the city. low to mid-70s for much of the peninsula. low clouds and fog will be thickening up. that will take us into a cooler weekend. >> all right. time now is 8:41. oakland police are getting some help. the increased patrol efforts to help solve a disturbing crime. >> this was an unusual pursuit,

one that needed a call for help.

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unemployment claims came in down below 400,000. that's considered a good number. still some concerns about what's happening in europe and the debt crisis. there right now the dow is up 246 at 10,966. it was above 11,000 at one point briefly. the nasdaq is up 3. s&p is up 29. the volatility in the markets is spurring the price of gold to high levels. it's the first time gold as moveed into that territory and higher than the price of platinum, which is used in technology as well as jewelry. gold is now down 1% at $17 --

1761. investigators are looking into the cause of a fire in the haight ashbury area. no word of injuries. pg&e crews restored the power to 2800 customers who lost power in novato. the problem is blamed on a damaged insulatetor. the main republican presidential candidates have a debate in iowa. all of this comes ahead of the ames straw poll in iowa on saturday. in the last hour we got word that police will be getting some help patrolling the streets of oakland, this is as investigators continue to search for the person who shot and killed a little boy earlier this week. maureen naylor has more on the progress and the help for opd. >> reporter: in the last person we spoke with a spokesperson for the chp.

the agency will be helping police suppress crime. it comes after the death of a 3-year-old. in that case police have a person of interest in custody related to the death of carlos nava. however, it's unclear what the person's role was in the deadly drive-by shooting. the toddler was killed by a stray bullet while riding in his toy car monday afternoon. an oakland man is in custody. police say a gang feud led up to the fatal drive-by shooting. >> we do believe two gangs in the hear who live within close proximity were feuding and having some type of disagreement. >> reporter: the little boy was shot and killed after he and his mother left a pizza parlor. police say they are in the middle of the evaluation and are

confident they can wrap up the case in the next few days. when this comes to overall crime fighting, police will be getting help from the chp. the chp said their help has been requested. reporting live in the newsroom, maureen naylor. let's go back to dave. police in concord still searching for a man who rob lad bank on willow pass road. police say the plan went into the first bank and trust just before 10:00. he waited in line and handed the bank teller a threatening note. he quietly left after the teller handed over money. the witnesses described him as a white or middle eastern man with a dark goatee. >> an investigation is underway into the death of a skids phrenic man. police confronted the man.

witnesses say thomas ran from the police. they chased him down, beat him and tased him. he died five days later. some city council members are calling for the police cleave to resign -- chief to resign. a battle is brewing between safeway and people who are paid to gather signatures on petitions. safe way say the signature gathers sometimes bother customers and ignore solicitation rules but the signature gathers say safeway violate thir freely of speech rights. media giant rupert murdoch says he will not step down mass ceo of news corps but for the first team he is offering new details into his success plan.

according to reuters his son james is not his to choice but instead his lieutenant. a uc berkly graduate claims standard & poor's made a mistake when downgrading the nation's credit rating last week. he is the assistant secretary of policy for the u.s. treasury. he said s&p based it on debt over the next 10 years but he claims those projections were off by about. s&p has reportedly acknowledged that mistake in a private conversation with the u.s. treasury but as no plans to change the downgrade. the nation's three largest banks are trying to calm investigators. jpmorgan chase, bank of america and citigroup said the market is

not headed toward as meltdown. investors are worried, in part, about the bank's exposure to european debt. analysts said the banks are safer compared to three years ago. california fish and game department issued an important owl alert. experts report a rapid decline in the burrowing owl here in the bay area. the reasons include a loss of grassland and an increasing number of dogs and cats attacking the owl. the state has launched a campaign to education everyone on how to protect the owls. last week washston state -- washington state police went after a bull. police tried to corner the bu. in the end they brought in a professional wrangler who

managed to bring the animal under control. it's still not clear where the animal came from. it had a happy ending. well, he's back and another major tournament. how tiger woods is playing at the pga championship. >> and how a makeover for lady liberty will affect tourists.

this morning tiger woods is making his appearance at a first tournament since the master. he grabbed a share of the early lead in atlanta. it's pretty hot there. woods birdied and then the wheels started coming off. he came far short of the green in one shot, dunking his ball in the water, a pond that runs along the side. tiger is currently at 4 over. the leader is 5 under through 9. plans are underway at san bruno to mark the within-year anniversary sense the eight people died in the blast.

later survivors will hold a reunion. it comes on the heels of a report that is expected to identify the cause of the explosion. that is due out august 30th. the blast destroyed 38 homes and injured dozens of people. in about five minutes pg&e will conduct tests to figure out how to accurately detect gas leaks by air. three technologies will be looked noo. then they will determine which gives the most reliable results. well, the department of energy released new information on a drilling technique for natural gas known as fracking. the department of energy is calling for more disposal of the waste created by the drilling

and stricter standards on air pollution and greenhouse gases. starting in late october the famous statue of liberty will be closed to tourists for a year. this is a great shot of lady liberty. a $27million renovation is planned. liberty island will stay open during the renovation. also today a pulitzer prize win are will be named the poet lawyer redlaureate of the united states. that job includes giving an annual lecture and raising the appreciation of reading, writing and poetry. he's also taught at several universities, including uc

berkeley. want to quickly check in with sal. >> reporter: 237 reeling from earlier problems. it took one viewer 40 minutes to get through the area. interstate 880. there's a raiders game. >> a little fog, low clouds. temperatures, a lot of 70s, low to mid-80s. looks like low clouds and fog. that spell as cooler pattern. >> all right. that will do it for us. [ male announcer ] using frontline plus shows your pet you care

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