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nba lockout, with contract contracts stalled, the basketball season is lockout.

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the proposal includes limited deductions for anyone making $200,000 a year raising $290 billion over four years, the elimination of oil and gas loopholes good for $45 billion and the elimination of interest deductions for hedge funds another $20 billion. republicans say that plan is dead on arrival. >> congress isn't going to approve hundreds of billions of dollars in tax hikes. it's simply not going to happen. >> reporter: at a fund-raiser in philadelphia the president says there has to be a deal but the right deal. >> we would be mortgaging our future if we don't do anything about the deficit and it would be irresponsible if in the process of reducing our deficit we sacrificed those very things that allow us to grow and create jobs and succeed and compete in the future. >> reporter: standard & poor's says if no deal is reached it will drop the u.s. rating from triple "a" to "d."

>> joel brown in washington thank you. minnesota residents are already experiencing the kind of trouble you get when governments cannot pay their debts. the state's government officially shut down at midnight. republican lawmakers and the democratic governor are at odds over taxes and a $5 billion deficit. state workers are faced with mass layoffs protested outside the capital in st. paul. the shutdown means putting highway projects on hold. on the "cbs moneywatch" stocks were up on asian markets. ashley morrison is here with that. good morning. >> good morning to you, betty. asian markets advance today. nikkei hose 0.6% and the shanghai composite gained 0.4% and hang kong was closed to are a holiday. the dow had a triple-digit rise finishing 152 points higher and

the nasdaq was up 33. treasury secretary timothy geithner will stay on the job for now. there has been speculation that geithner might leave following the current round of budget talks. when asked about his plans he said "we have a lot of challenges as a country" so we'll he'll stay for the forefeeable future. the labor department says 1,000 fewer claims were filed for unemployment last week but the number of claims filed over the last 12 weeks remains above 400,000. borders, second largest u.s. book store chain agreed to tell is pef. borders is under bankruptcy protection and steel investment firm for $215 million is tentative. and betty the trend for fast food restaurants to serve alcohol is growing. burger king started selling beer at so-called bars for miami and kansas city and two sonic restaurants in south florida

will start selling beer and wine, so now betty it's burgers, fries and a beer but that's only when it's a fancy date. >> that's right, you spend a little extra on that one, joining us live here in new york thank you. the government is beefing up airport security this holiday weekend and this follows the arrest of a nigerian man who managed to board a plane and fly cross-country without proper identification, due in los angeles federal court today. bob orr has the story. >> reporter: virginia america flight 415 had taken off from new york and already in the area and headed for los angeles when a flight attendant found something strange on board, a man in 3e, a seat that was supposed to be empty, when asked for his papers the man pulled out a day old boarding pass issued for a different cross-country flight the previous day and the name on the boarding pass did not mass a university of michigan i.d.

bearing his real name. nwebe made no threats, carrying no weapons so the flight crew determined it was safe to,, the service was very moving, wasn't it? yes, it was. i'm so glad we could be here for larry. i was surprised to hear there was no life insurance. funerals are so expensive. i hope larry can afford it. i know. that's why i'm glad i got a policy through the colonial penn program. do you think they have coverage for me... something that'll fit into my budget? yes. you can get permanent coverage for less than 35 cents a day. if you're between 50 and 85, your acceptance is guaranteed.

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

we're hitting the hot spots. >> reporter: winds started to push the flames away from los alamos thursday. officials wash this wildfire is unpredictable. >> we're seeing extreme fire behavior, things we haven't seen in our careers. >> reporter: the goal is to keep the fire away from homes and the western edge of the national laboratory complex. while the los alamos lab remains closed work has been put on hold, that includes experiments on two super computers and research into extending the life of a 1960s nuclear bomb. crews at the lab are experimenting with vegetation so the fire doesn't have a chance to reach radioactive spirmgs. >> the risk isn't the same. >> reporter: scientists continue to monitor the air. sandra hughes, new mexico.

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

here is a look at the weather in some cities around the country. new york going to be sunny, 6 degrees. miami thunderstorms there, 0. chicago sunny and windy, 99. dallas a hot 100. los angeles 84 degrees. time now for a check of the national forecast. the latest satellite picture shows clear skies on the west coast and much of the southeast. bands of thunderstorms are rolling across the northern plains. tropical depression arlene though is slowly losing strength in mexico, but sending bands of rain to texas. later today the great lakes will see daytime highs in the 90s and 100s. it's pleasant up and down the west coast but the gulf coast will see storms building through the day along with plenty of heat and humidity. in sports the nba has locked out its players.

contract negotiations collapsed thursday and when the contract between the league and the players ran out at midnight the lockout was under way. the two sides are far apart on salary issues and revenue sharing. nba commissioner david stern says 22 nba teams are losing money and insist the league's offer was good from both sides. >> we've made a proposal under which the average player compensation will be $5 million at a time when the league is losing money. >> the lockout puts in jeopardy the pro basketball season's schedule to start in the fall. in tennis the women's single's final at wimbledon is set for saturday, a big comeback for maria sharapova who won easily in straight sets advancing to her first wimbledon final since she won in 2004, she faces petra kedova, in her first final. in baseball a dramatic

walkoff win for the cubs, giovanni soto, blasted a three-run homer to left field giving the cubs a 5-2 victory over san francisco. when we return, another look at this morning's topper toys. and scorpion on a plane? what you don't want to meet on your next flight. (announcer) while there are some home disasters you can't avoid, there is one you can. septic system breakdowns affect 1.2 million homes each year. septic backups can cost about six thousand dollars in expense, and countless hours of repair. rid-x. help save yourself from disaster.

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

prosecutors are questioning the story of the hotel maid who accuses strauss-kahn of rape. the budget battle in washington drags on. the senate canceled its post fourth of july holiday in hopes of reaching a deal to avoid defaulting on government debt. venezuelan president hugo chavez revealed that cancer surgery took place in cuba. chavez looked pale as he addressed his nation from havana where he underwent two operations. chavez did not say what kind of cancer he was battling or when he returns to return to kate and william are in canada this morning. each placed a wreath at the national war memorial and later attended a reception for young canadians. we have word this morning of a scare on an airline flight to alaska, not snakes but a scorpion on a plane. the recent incident was on an

alaska airlines flight. it was apparently a stowaway from texas. passenger jeff ellis was taking a nap at 30,000 feet but woke up to the burning sting of the scorpion on his arm. ouch. >> my tray table was up, grabbed a napkin, picked that thing up, grabbed it, was a natural reaction. >> he suffered no other ill effects. now we want you to meet ethel learum of wisconsin. take a listen. ♪ can you believe this lady just turned 95 years old and not only plays the piano but also the organ and the accordion and now she is taking up the violin. pretty stweet. this morning on "the early show," maria sharapova's amazing wimbledon comeback.

i'm betty nguyen. this is the "cbs morning news." n soldiers and b,,,,,,,,,,,,,,,,