how did these newspaper racks end up in the dumpsters of the san jose news. suspicions that the mercury news has become criminal. good evening i'm ken wayne. >> and i'm julie haener. newspaper racks were found in a competitor's dumpster. matt keller is live now in san jose with how the mercury is explaining itself, matt. >> reporter: julie the

newspaper business in san jose is competitive. but several smaller publications are clamming to be the victim's of death by the largest publisher in time the mercury news. >> i've always had a policy with the mercury news, do not take my racks. >> reporter: circulation management has racks in san mateo, and santa clara. wednesday 20 news racks of several different papers were found in and around of the mercury news headquarters. >> we found them with a few. we want to know why they took them, who took them, how many they took and we need to a assess the damage of all of this. >> reporter: the mercury news did not want to speak to me.

but he said removing noncompliant rack at the request of municipalities and is a long-standing practice and we have not stolen any news racks. daily posts were removed they say by the request of dispatch. they say they are not in the business of directing people to remove news racks. some of the publishers are considering lawsuits. >> this is not a theft of personal property, this is an assault to the first amendment. >> reporter: officers are doing an investigation but they say it's too early to know if charges will be filed. matt keller. new video from the san

leandro b.a.r.t. station. it happened about 5:45 this evening, the pedestrian identified as a 64-year-old man was hospitalized with serious injuries. the elderly driver was hospitalized with nonlife threatening injuries. the man who's vehicle was hit was not injured. a fire in los gatos is now being called suspicious. three vehicles and two storage sheds were destroyed. witnesses said they saw several kids run ning from the area where two kids were playing. invest -- investigators

are trying to find out the identity of a woman and fetus found from a shermantine well. the remains fit the profile of a female ages 15 to 18 years old with mixed ancestry. the fetus was 28 to 32 weeks old. the gas line break happened on early and glen view avenues. pg & e says the contractor was laying a new water line when a backhoe hit a 2-foot gas line. the site was the same where an explosion destroyed 38 homes. >> you're looking down there to

make sure there's no ball of fire or anything like it did before. it brought back memories. >> the line was fixed in 45 minutes. the contractor did not return our calls for comment. paul chambers tell us why some believe crimes in the city's gay community are under reported. take a look at this sketch, san francisco police say this man is a person of interest in a homicide. >> our victim eric escalon was found gagged, and deceased in his apartment. >> reporter: escalon was last seen standing outside of 44 castro with this man. they then got into a cab and went home. many in the community say they have yet to hear about it. >> it's frightening to know there are people running around

killing people in our community. >> reporter: many people meet after meeting on craigslist. >> internalized homophobia. they don't want the people to know they're gay. >> it's terrifying to realize that you got so drunk then you find out somebody took this, took that. >> you will help somebody else down the line. >> reporter: here's the sketch again . the person of interest has a slim build and is between 5'eight to 5'10. he was last seen wearing a t- shirt. the santa clara county commission approved plans to

build a mosque in san martin. a large crowd turned out for a meeting in san jose which lasted about four hours. opponents have 16 days to appeal the decision. if it's appealed, the board of supervisors will make a decision. the bay area is leading the nation in creating jobs. the labor department says silican valley is the hottest market. employment grew by 3.6%. technology is improving both areas. >> reporter: we're here at the mission rock resort. take a look inside you can see this restaurant still under construction. the owners tell us he is b

etting that the job market and economy here in san francisco are both strengthening. >> reporter: bourn is getting ready to open his new restaurant. he says the strengthening economy makes him believe when he opens his restaurant, people will be there. >> reporter: compared to last year it seemed like a lot more people finding work. it's been taking a while but at least they're getting more interviews. >> reporter: job growth in san francisco and the bay area has been fueled by growth in the tech sector. everything from big companies like zynga and twitter to small start ups. >> if you're an innovator, you

want to be with other smart people the place to be is san francisco, silican valley. >> reporter: growth in the sector means growth across the world. like businesses or restaurants grow to service those tech restaurants. randall says it may sound like the tech bubble from the late 90s but this time there's a difference. >> investors are looking for a real business plan, real road to profitability. >> reporter: another key difference that our economic expert points out, 10 years ago, companies would sprout up and rent office space and never fill those offices. now there's 20% more people working in the tech sector. there's concern about facebook's stock slide.

facebook closed today at $20.04 a share. that's the lowest close so far and almost half of its initial closing price of $38 a share. the state of california was hoping far lot better than that. they made a prediction on what facebook was going to do. they predicted facebook would be at $35 by november. california predicted the state would get $1.9 billion from that facebook ipo. that's what lawmakers counted on when they made the budget this year. how much the state gains or losing depends on the rise or fall in the next three months. >> we have to rely on steady predictable sources of revenue and not believe that we're going to be pink unicorns pooping gold nuggets to save

the budget crisis. >> facebook dropped for the sixth straight day. linked in stock rose today. the growth is from ads and fees the site charges for more access to professional profiles. linked in stock rose after the results were announced. the company went public last year. on the broader market stocks retreated as the stock market dropped. the dow lost 92, nasdaq dropped 10. doctors thought she would still be in a wheelchair. how a bay area girl is beating the odds walking the show ring at the county fair. seeing significant changes

in the forecast. it was hot today. and we uncovered big problems with caltrans's road changes. i want a real marriage again. [ male announcer ] this wednesday...

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sensors. we show you a report on traffic cameras. >> reporter: speaking of the maize it is a mess there. >> reporter: traffic on bay area freeways often creates headaches for drivers. >> the traffic backed up in both directions. >> reporter: these cameras are monitoring traffic in realtime for caltrans and some are being streamed live to the caltrans's website to help drivers track traffic. >> i'm relying on it. >> reporter: caltrans says it has 353 cameras in the area, but we've learned only 151 are working that's a failure rate of almost 50%. the agency spent almost $5.4 million on the cameras in the last fiscal year. a variety of problems are causing live cameras not to work but they're shifting a majority of the blame to phone lines. >> we're working on it and our goal is to improve on it. >> reporter: the result, only

80 cameras are working. we checked today and found only seven runs. >> how would you grade yourself. >> it's not for me to grade myself, it is for others to do that. we're proud of the project we're do -- we're doing here in the district. >> reporter: caltrans has set aside another 4.5 million. amber lee, ktvu channel 2 news. governor jerry brown is calling it a generous endorsement from the california nurses association. >> for those who have been blessed the most, it's only right and i think the way to go to say give some back. temporarily for the next seven

years until our economy finally gets back after the mortgage melt down. >> reporter: brown's initiative will levy a temporary tax on people making more than $250,000 a year for seven years. munger's proposition would raise income taxes for most california's for the next 12 years. advocates for gay rights are calling for poem to hold a kiss in. the chain is also getting a lot of support. executives are reporting record sales for yesterday's chick-fil- a appreciate day. police have arrested a man for yesterday's stabbing. adar yamuro wright was take ton jail. police say brigs was stabbed near north second street and east st. john street. the two were involveed in a

fight prior to the stabbing. a 17-year-old boy from oakley has been charge with two counts of attempted murder an attack on a friend. he's accused of going into a neighbor's house then shooting at and stabbing the man in his home. a sonoma county girl who survived flesh eating bacteria is beating the odds again. ktvu's debora villalon reports. >> reporter: she's a proud member of 4h so the stock show here is a big goal. this 12-year-old practically came from her hospital bed to this barn. when melissa kendelton paraded around the barn it was a

fashionable display of wool and courage. people here know what misy has gone through. a month hospitalized, her life threatening by flesh eating bacteria. >> she's probably the toughest girl i've ever seen. i told her if it would have been dad lying on that bed, they would have just put the covers over me a long time ago. >> reporter: missy is off crutches and showing her lam at the fair. her slight limp the only hint her right leg is ravaged. her thigh muscle eaten. >> the physical therapist got down on her hands and knees and appeared to be a lamb to see what she needed to do. >> reporter: missy walked her lam without any assistance. but her 4h leader a nervous

wreck. >> i'm really proud of her that she did. but i told her if anything happens i'm jumping in there and i'm driving you. >> reporter: but hugs was all that was needed. and by the end the ribbon for where missy's sheep placed on the show hardly mattered. she was just glad to be back where she wanted to be. >> reporter: her next goal returning to her favorite sport, soccer and baseball. and stepping out of all of the attention. she just wants to be missy like she was before. a wayward whale is headed back to the bay area. it is being flown to oakland international airport and is expected to arrive in the next

hour. the marine mammal center will return it to the wild. a warning tonight for fremont residents. the serious health risk after officials find two dead bats. it was warming out there today. temperatures got into the upper 90s. not as warm tomorrow. not as hot tomorrow we're going to see more fog as we're seeing tonight. there was more fog tonight than there was last night. shooting across the berkeley and albany. fog when you wake up right along the bay. i don't think you will see it inland. then it burns off. the cooling as it occurred. we're going to find temperatures in the upper 80s. we're going to see upper 70s. cooler still as we head into

the bay area weekend with that slight chance of thundershowers in parts of the bay area. i will let you know when to expect that. we'll see you back here at about 10:45. it was all smiles on the diamond in san francisco today. hundreds of fans headed out on the field to take part of the giant's annual slumber party at at that time park. tickets cost about $225 each and this year the event sold out. a one night stay involves pizza, party favors, midnight snacks, pictures and more. fans young and olds say this is one camping trip they will never forget. coming up in sports find out how the giants did as they faced off against the new york mets. a statute stolen from a church is returned home. >> we hope and pray that we will have the same statute. where it was found and how the church plans to secure it now. a first, a wind whiff wildfire burning toward sacramento and the other fires burning right now in northern california.

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a wind driven wildfire in yolo county is now 100% contained. it started around 3:00 at the junction of county road 88 and road six. that's about 50 miles northwest of sacramento. there are a few homes in the area but calfire says no structures were damaged. the fire burned just over 200 acres. crews are battling two fires further north. the chips fire is burning in the plumas national forest. and the salt creek fire is burning just northover redding. the chip fire has burned over 500 acres and is less than 5% contained tonight. a beloved statute stolen from a south bay church is back

where it belongs tonight. st.bernadette was finally recovered. >> reporter: whether it's a miracle or someone trying to avoid to be arrested. the cherished the statute of st. bernadette has been returned. the statute was stolen late at night about a week ago. it was found this morning wraped in foam material in a parking lot two blocks away. the 2-1/2 foot statute from italy had been on display since the church opened in 1995. >> we're very happy with this end. >> reporter: the church says while they plan to set up surveillance they're not concerned about who took it. >> whoever took it probably felt bad or scared or both. i think when you try to sell something like that it would have been too obvious.

>> we're pretty sure they realized their mistakes and wanted to move forward. >> reporter: the statute was found behind the mama mia rest rant -- restaurant. >> we're happy to find it and have it back in the place where it belonged. >> reporter: the church says at this point it doesn't know when it will reinstall st. bernadette but definitely before sunday's services. in campbell, robert handa, ktvu channel 2 news. it was a historic moment in new york city as the beam sign bid president obama was lifted in place. in june, president obama visited the center. the beam contains the words one world trade center. and the president wrote, we remember, we rebuild, we come back stronger. you can get ktvu news to

go. download the ktvu app. you can watch all of our newscasts live on your smart phone. >> he threatened my family, my brothers and my sisters. you know that if i told everyone my whole family would end up killed. a woman who claims a notorious bay area leader abused her for years talks publicly about finding the strength to come guard. a warning about rabid bats goes out. where two dead bats were found in the last week and why officials say getting bitten isn't the only concern. favorite soup, salad and hot, hearty sub. like the toasty big hot pastrami melt. get to your local subway for some dinnertime deliciousness tonight. subway. eat fresh.

there's a warning tonight about rabies going out to people in fremont. now that testings have come back positive. eric rasmussen is where one of

the animals was recently discovered. >> reporter: someone found the bat in or around a workshop here in fremont. there was another discovery of a dead bat in a swimming pool about 7 miles from here. two mexican free tailed bats like this one tested positive for rabies in the past week. >> yeah it is concerning. because it is fatal disease. >> reporter: is the warning going out to fremont residents including melania chimiklis. she just received a letter from her apartment complex. dan wilson with the vector control says bats are common in and around the fremont area. he says even bats infect with rabies are not likely to bite

humans but they can still pose a serious danger. >> cats are real t bad about picking up things and bringing them inside your home. if you have an ill bat flapping in the home is a danger. >> he goes out in the back and does his thing and, you know who knows if there's a bat back there or not. so yeah it's a concern. >> reporter: and investigators don't think any people or pets came in contact with that first positive bat that was found here in fremont. they're still checking the most recent case. six people in california have died from rabies in the last 15 years. we're live here in fremont, eric rasmussen. contra costa county officials are now focusing their efforts to control west nile virus in the west side of the county. a dead bird found in el

sobrante tested positive for the disease. it was picked up in san pablo road. republican presidential candidate mitt romney spent the day campaigning in colorado following a week long trip over seas. people told people gathered that he has a plan to make the nation energy independent. >> in eight years we're going get a north america energy independent where we don't have to buy any oil from the middle east or venezuela. >> reporter: romney will name his vice president mate later this month in florida. all i'm asking is, that we go back for folks like me for the top 2%, go back to the rates we played under bill clinton. by the way, if you remember that was when our economy

created nearly 23 million new jobs, the biggest budget surplus in history and a whole lot of millionaires to boot. >> reporter: president obama started his campaign day in florida before moving to virginia. he continued to push his tax programs saying so called trickled down plan pushed by romney has not worked in the past. the irs is looking for fraudulent filings. the growth of identity theft related fraud is one of its biggest challenges. already this year the agency has stopped almost $12 billion in confirmed fraud. a woman is speaking out about years of abuse she says she endured at the hands of the founder of the your black muslim bakery. what we tell you what prompted her to go to police after years. >> reporter: the first time it

happened to me i was eight. >> that's how old quana banks says that yuseff senior assaulted her. he was at a sleep over with his daughter. >> he threatened me, he threadened thread -- threatened my brothers and sisters. we live there had so i didn't say a word. >> reporter: she says are that he allowed her family live.

she fathered three children by youseff starting at the age of 13. he tried to molest one of his daughters -- former granada teacher has pled not guilty to sex crimes. she's accused of a sexual relationship with a boy from december 2010 to may 2011. a judge will consider whether to admit the victim's health and school records into the proceedings. johnson remains in santa rita jail with bail set at $150,000. the mother of the late michael jackson is once again looking after his three children. a judge today reinstated

katherine jackson's role as their permanent guardian. the children's cousin t.j. jackson was named coguardian. the ruling come 10 days after the court suspended katherine as guardian because she had been out of communication with the children. three jets coming within 100 feet of each other. how the transportation secretary is speaking out to ensure the public it's not as bad as it sounds. and i'm back here in just 10 minutes. it's going to cool off this weekend and we have a chance of thunderstorms in the area. i'll let you know when that could happen and where. i'll see you back here. >> like a, mechanic not having the right wrench or not enough of them. >> in eight minutes, ambulances short on medications how a national problem is affecting national responders here in the bay area.

one woman is dead and as many as two dozen other people are injured after a passenger bus slam into a concrete bridge in southern illinois. it happened on interstate 65. the double decker mega bus had 67 passengers on board when it blew its tire and hit the pillar of a bridge. the bus was in rout to st. louis from chicago when it crashed. the leader of the search and rescue team says it was the most dramatic rescue he's ever seen. footage came out today of this helicopter rescue on the south side of dog tooth peak. a driver took a wrong turn and ended up hanging on to a cliff. just as he was losing his cliff, a sheriff spotted him and sprinted up a surface to grab him. transportation secretary ray lahood is reassuring the

flying public after reports of a three plane near miss incident near washington, d.c. >> at no point were these planes on a head to head collision course. >> reporter: the situation occurred at ronald reagan airport tuesday when air traffic controllers changed the direction of arriving and departing flights due to the weather. three u.s. airways planes ended up flying too close to each other. the faa, national transportation board and u.s. airways are all investigating. united airlines has upped its fairs for the second time in less than a month and other carriers are beginning to follow suit. on tuesday, united increased flights by $10. so far delta, u.s. airways and american airlines have joined the fare hike on domestic the routs. so far southwest airlines has not joined in on the increase. in news of the world

tonight, former u.n. secretary general resigned today. he's tried for six months to bring peace of the nation. and had harsh words for the syrian regime saying assad must leave office. and also criticizeed the u.n. security office where russia and china have blocked action against assad. there were reports that -- according to japanese media prosecutors can't bring charges until they identify the cause of the accident. so far no one has been able to do that. and in kazakistan a rocket took a six hour trip to the international space station. this was a successful trip of a quicker way to get to the

station. the capsule carried supplies and water. a stanford physics professor was just awarded a prize. the award recognizes linde's work on a modification of the big bang theory. basic drugs missing from bay area ambulances. the big problem that has officials scrambling. also b.a.r.t. prepared to lift a long- standing restriction, what bicyclists can do tomorrow that may lead to long term changes. temperatures may be cooling off, looking at the port of oakland. but chief meteorologist bill martin looks at the danger facing the bay area this weekend. for the best deals. you don't need to run around. safeway gives you real big club card deals each week. this week get whole seedless watermelons fresh off the farm for only $2.98 each. skip the warehouse.

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you would expect that if you need an ambulance it would

carry the basic drugs to handle a basic emergency. that's not always the case. >> this one we're out of for a month and a half. >> reporter: for paramedics, drugs are the tool of the trade. some that are now in short supply. >> like a mechanic not having the right wrench or not enough of them. >> reporter: a national drug shortage created some experts say by a perfect storm of over regulation and under production. suddenly, pain medications like morphine are in short supply. >> we have approval to replace the volume like drug. that drug is also not available. >> reporter: in alameda county, ems supervisors have been scrambling for solutions. so they look for different packages and concentrations of

the drugs. but that's not always good. >> you're going to increase your chances of having medication errors. >> reporter: another measure for conserving drugs keeping a bare minimum on board. >> we may only have enough to treat one or two patients. >> reporter: still at paramedics plus say it's enough that patient care won't suffer. >> over all the patients should not see any type of adverse affect. >> reporter: health fishes are trying to come up with a long term solution in the meantime these shortages have become a fact of life for first responders. in alameda county, anne ruben. ktvu news. more details on how other counties are handling the drug shortage. santa clara says different concentrations and substitutions of drugs are being used.

starting tomorrow b.a.r.t. will partially lift its long- standing restrictions on bicycles. friday during the month of august bikes will be allowed on b.a.r.t. so long as the train isn't too crowded. the biggest concern is that bikes will cause too many delays. but hopes are high that the plan will work out. >> we know that bike ridership is growing on bike and throughout the city. >> reporter: the b.a.r.t. board of directors could permanently modify the ban on bicycles later this year. the transit officials are expected to start a water shuttle service tomorrow. the shuttle is called water blue. and will carry 10 passengers and eight bicycles. the ticket price is $10 for adults and $8 for youngsters under the age of 13. the boat will service tahoe

vista, and tahoe city. and the fog is pushing in tonight that's going to cool things tomorrow. today was the warmest day of the week. or might be one of the warmest. i think a couple of days ago it was nearly this warm. temperatures from here on out are cooling down. we have fog right here. you can see it pushing in through the bay. i'm just illustrating that. that will set up a cooler pattern for tomorrow. as we go into the bay area weekend it's not going to be cold, it's going to be cooler the next few days. the inversion is going to lift a little bit and the fog is going to push inland. when the inversion lift it pushes the fog into the coastal hills. that's starting to happen right now. by saturday and sunday. it'll deepen out enough that it will be getting over most of the coastal hits, over crystal springs out in that area, out toward fremont. we will see more fog hence cooler fore -- forecast highs for your saturday and sunday. these are the highs from today

then there's the drop off. 6degrees cooler in livermore. a mild day tomorrow, still nice. it's just not going to be as sweltering hot as it was today in the inland bay valleys. tomorrow the fog will be a little more prevalent. this is the real weather story this weekend. it's called the north american monsoon. happens about this time every year and just starts to sweep up moisture in the gulf of california and it spawns and thunderstorms. the computer models are suggests for thunderstorms south and east of the bay area going into saturday and sunday as well. the concern there is dry lightning strikes. tomorrow afternoon keeps it at the coast. you see these high clouds coming in, that's not fog. that's tropical moisture in advance of that system. right there it starts to move through. you saw some greens up around lake tahoe. so we'll watch it for you.

it's a big concern. dry lightning is not something you need this time of year. then we will see clouds that will help trend temperatures down. tomorrow cooler, saturday and sunday cooler still with a chance of thundershowers on saturday night into sunday north and east of the bay area: we will watch that. mark tamayo and rosemary orozco will be here. your five day forecast is cooler. we will bring the high clouds on saturday. we'll watch that system very closely but those are the systems that will cause us real problems in the fire season. >> we have to keep an eye on that. >> thank you, bill. the official line up of challengers for the next america's cup has been announced. four teams will complete against oracle. white tiger from korea and luna ross from italy. the number of team social security far lower than what

was originally expected. >> without a doubt the economic climate has proved challenging and that's the reason that you know probably one of the main reasons that there are four challengers and not 11 challengers. america's cup world series races start here in the bay on august 21st in 45-foot wind sailed catamorans. a touch of hollywood in san francisco as work begins on that new woody allen movie.

work has started on woody allen's latest movie which is being filmed in san francisco. a ktvu camera was there to catch a glimpse of the happenings as crews began setting up this morning. the movie stars alec baldwin and andrew dice clay. new team in town, toronto and life as we know wit those

a's. that amounts for decent hitting and pitching. colon drew eight scoreless innings. that's a nice catch. third inning they get the o. josh redding battling an zero for 20 something. brushed it, two run shot number 23 for them they add a little pad in the seventh, bases loaded. inge hit it so hard to left they could only score -- 4-0 lead that's all they get. they do the bernie dance out there. the a's back to being tied for the wild card lead. i hope they were serving some comfort food in the giant's. losers seven out of 10 on this home stand. that just can't happen to a series contender. neither can starting pitching like they saw from barry zito today. 1:00, a couple of men out, a couple of men on. two run shot. and there you go that's how the

day started and continued. ronny sedeno had himself a day. five rbi, can't really say anything about that clank off the glove of cabrera. he's been catching everything out there. he also had a double and triple. pence had the only run. tiger woods was par for the course. not nearly good enough to put him on top of the leader board. tiger nice approach. the back man shaky, even par 70. seven back of this man, the leader. nicely done himself. par4 fourth. he would convert the birdie as well. he has the lead after a star making 63. embarrassment of riches for the united states olympic basketball team. how about this, 156-73 just a

bombardment of nigeria. 156 to 73, no one has scored that in the entire history of basketball in the olympics. and phelps gold in the medially and upping his medal count to 20. that's the sporting life for a thursday night. so lots of gold and that's the sporting life. >> what did you say michael phelps, 20. >> 20 total. 16 of them are the gold type. >> i wonder where he keeps them all. a big vault. >> yeah, they're worth a lot. you see those signs, we buy gold. >> we were reading about them and a lot of them said they kept them in their sock drawer. >> and they get $20,000 for every gold. >> i didn't know that. >> didn't know that. >> not tax free by the way. >> nothing is tax free. >> what is. >> right. >> thank you for trusting ktvu channel 2 news. we'll see you the next time

news breaks. >> our ktvu morning team will look at how that program of bringing bikes on b.a.r.t. will affect commutes. and we're here for you on ktvu.com and mobile ktvu. wow, look at this bed! this nightstand! this wardrobe!

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