fitch today cut its ratings on the state's general obligation bonds by two notches. the ratings agency specifically cited california's inability to reach a budget compromise. legislators have been deadlocked for more than a month over ways to close the state's $26 billion budget gap. until a deal can be worked out, fitch says its keeping the state's ratings on watch for downgrade. >> jeff: municipal bonds were once a safe haven for investor cash. but that reputation was tarnished by the problems of muni bond insurors, the credit crisis and the impact of the recession. as we continue our series,"reviving the economy what's ahead," munis are making a comeback. a billion dollars a week, every week has poured into them since the start of the year, despite some ongoing worries. >> reporter: the murmur of voices and telephones. the sound of municipal bonds, being bought and sold. that's what brokers at south- florida-based f.m.s. bonds are focused on. founder jimmy klotz says the phones have been ringing steadily, with a lot more interest from potential customers since las

fitch today cut itratings on the state's geral obligation bonds by two notches. the ratings agency spefically cited califoia's inability to reaca budget compromise. legislators have been adlocked for more than a month over ws to close the state's $26 blion budget gap. until a deal can bworked out, fitch says its keeng the ate's ratings on watch for downgrade. >> jeff: municipal bds were once a safe haven for instor cash. but that reputatiowas tarnished by the pblems of muni bond insurs, the credit crisis and the impact of the recession. ase continue our seriesreviving the economy what ahead," munis are making a comeback. a billion dollars a week, every week has poured into them since the start of the year, despi some ongoi worries. >> report: the murmur of voices and telephones. e sound of municipal bonds, being boht and sold. at's what brokers at south- florida-bad f.m.s. bonds are focused on. foundejimmy klotz says the phones have been rging steadily, with a lot more inrest from potential customers sinclast year's stock-market meltdown. >> they noticed a distct

fitch today cut its tings on the state's genal obligation bonds by two notches. the ratings agency specically cited californ's inability to reach budget compromise. legislators have been delocked r more than a month over way to close the state's $26 bilon budget gap. until a deal can be rked out, fitch says its keepi the ste's ratings on watch for downgrade. >> jeff: municipal bon were once a safe haven for inveor cash. but that reputation s tarnished by the proems of muni bond insuro, the credit isis and the impact of the recession. as wcontinue our series,"viving the economy what'shead," munis are making a comeback. billion dollars a week, every weekas poured into them since e start of the year, despite some ooing worries. >> reporterthe murmur of ices and telephones. thsound of municipal bonds, being boug and sold. th's what brokers at south- florida-basef.m.s. bonds are focused on. founder mmy klotz says the phones have been rinng eadily, with a lot more intest from potential customers since st year's stock-market meltdown. >> they noticed a distinion beeen b

this is the second downgrade by fitch in just the last couple of weeks. bbb is still two notches above junk, and fitch is saying it believes the risk of default remains low. but still, a two-notch downgrade. this as six days into the new fiscal year there is still no solution to the $26 billion budget hole for this year. the governor has said he won't sign off on any deal that doesn't include the structural reforms he has been fighting for since he came to office. for example, all the fraud he says in state programs, something he talked about today while meeting with district attorneys. >> the faster we solve the budget crisis and make ends meet and road out the fraud and abuse that's going on, i think the more the people would appreciate and the more i think the financial institutions will look at us in a favorable way and the more it will help our credit rating. >> all right. ious continue to go out to contractors, student aid programs, non-profits. people still waiting for their income tax returns. because the state has to hoard cash needed to make edu

>>rcrombie & fitch, did they ever lower their problems? >> they're moving away from that mantra maybe they'll do better. that has been aig problem for them. >> yeah. maybe they'll see -- >> exactly. >> thanks. we'll talk to you again. >>> a ladybug invasn is ppening in colado. no, this tree yu're looking at does not have d bark. it is covered in ladybugs. nearbyhomes are alys covered parently the wet spring helped with the numbers. >> i d't know what this tre is thinking. maybe they're in t pce of doing ha work. >> well,obody ems to be particarly worried about the insion. apparently ladugug wl help the crops by eating some pes. d d the $700 cream! for under regenerist crsculpting cream hydrates bettethan 32 of the rld's most expensive creams. fantasc. phenomenal. regenerist. kind of cocoider mself a robinhood of the directing worl buick enclave thee fint luxury crossosor ever. i need some zen imwith this model thk yo [ [ engineowers down ] gentlemen, you booke your hotels on oitz. well, the pricice wentown, so youou're all tting a check th

fitch ratings airline analys william warlick says those expensive fares e how airlines ma money. >> most ofhe global legacy rries would rely on 40% or more of their passenge being business oented. and viously they pay a higher re, they are higher yielding customers and thatends to drive half othe airlines total passenger revenue. >> reporter: the reven hole could speltrouble for the airlines if businessravel doesn't ta off again. nextear, the major carriers along with souwest and jetblue have me than $8 billion in debtaturing warlick says refinancing at debt could be difficult if credit market remain tight. >> i think it's very lely that at least t or three of the big caiers will have a significant cash problem on their has by early 2010. the question is homuch cooperation dohey get let's safrom the banks and credit card processors continue operatinwith very compromised liquidity positions. >> reporter: the airlines e working aggresvely to save mone they're cuing capacity, elinating routes, and furloughing workers. but expertsay it may not be enough to avoid bankruptcies u.s. airways, un

this week, fitch ratings is the latest to cut california's credit rating to triple b - which is 2 notches above junk status. state lawmakers are in the process of trying to close a 26 billion dollar budget short fall... in the meantime... california is now facing a liquidity problem... because it has no budget, it cannot issue short term bonds to continue bringing money in. "the implications are they'll keep getting downgraded until budget gets solved.. we can see california going down into barely investment grade... i don't believe they will default - that would would be a hurdle.. political suicide for california. brian battle of performance trust is closely watching california's fiscal troubles... he believes the situation could get to the point where the feds step in and help stop the bleeding... "i think california is waiting for the government to come in and give a lifeline...i don't think dc has the cash to hand them because every other state will line up too - but a guarantee from uncle sam - will help california sell short term notes with a fed gaurantee and get them liquid again

a total of fitch khoyvs in the area robbed since the weekend. united methodist church is one of them. thieves took a safe with no money in it and 40 dollars in petty casual. safe did contain important papers valuable to the church but worthless to whoever took it. >>> and husband and wife are accused in multiple burglary. 41-year-old man of westminster charged in 14 burglary between april and july. his 2534-year-old tina was charged in 6. they stole thousands of dollars worth of good and property from homes in carol county. >> and howard county police arrested a teen in connection with a shooting near a basketball court. the 17-year-old is charged with assault as a juvenile. police say he assaulted another person who then shot johnson back on july 9. johnson was taken to shock trauma with non-life threatening injuries. police say they are still working on an arrest. to arrest the shooter rather in the incident. >>> and teacher and hockey coach is now facing a federal indictment on child pornography charges. 52-year-old john kovak arrested in mar

of course retailers, limited glands, gap and abercrombie and fitch reporting worse than expected declines in store sales. aig going through the obama government and asking whether it can pay previously agreed to retention bonuses including $235 million pending for emplees. the compensations should give a ruling on that story. and, hey, who comes bottom of the list for the worst tourists? it's the french, according to a new survey of hotel owners across the world carried out by expedia. the french rated the rudest. hey, they come across as the better dressed. the highest ranking was the japanese. they make the politest tourists. the brit and the germans came in tops for the europeans. so that's a ick look at some of the best people to have stomping around your city. dan, back to you. >> all right. cheap but looks good in toe tur. >>> final slots are thrilled on this year's all-star rosters. your early morning sports headlines are straight ahead. >>> and seeing that it's friday, we'll be talking about your weekend fo ccangsmito up. you're watching "early today." >>> good morning. i'm joe kr

i think you just say fitch. porsche's ceo has left the company.ment came after a surprise all-night board meeting. the borden doorsed talks with the government of qatar for a possible stake purchase. the negotiations are unlikely to interfere with porsche's anticipated talks with volkswagen. shares of porsche today have been firmer. for more, we're joined by hans woodnuk. hansfetor, thanks so much indeed for joining us. we've listed some of the uncertainty, but i'm not quite clear exactly what's going to happen between porsche and vw. can you tell us? >> well, if i would only know. remember, we will have the vw supervisory board meeting today and mr. pierre's intention was and i assume still is that vw takes porsche over. with yesterday's decision to collect up to $5 billion in fresh equity for porsche, this is clearly a strategy saying, well, porsche will take over vw. so it seems to me that yesterday in the porsche supervisory board meeting mr. porsche had victory, although he had to dismiss as the official statements said the ceo and cfo. and i

and high-end abercrombie and fitch dropped. investors are more focused on the latest news from the labor market. the number of americans continuing to receive jobless benefits hit a new record last week. on the other hand, the number of new claims dropped to the lowest levels so far this year. >>> and bernard madoff has decided not to fight his 150- year prison term. the 71-year-old money manager was sentenced last week for swindling investors in a $65 billion ponzi scheme. his attorney confirmed madoff will not appeal, but did not say why. for more business news, head to cbs money watch.com. in new york, i'm kathryn brown. >>> a mystery surrounds the winner of a mega millions jackpot worth $133 million. there was only one winning ticket ared. -- issued. when the winner decides decides to collect, they can spread the payments out or take a lump sum of about $40 million. >>> a man's emotional plea. his emotional story and how you may be able to save his life. >>> humidity is making a comeback. we're updating your first warning f

bel air road and fitch avenue. that crash is just outside of the beltway.e. avoid that if possible. 95 southbound, whitemarsh, things cleared out some, some slowing on and off the brakes in some spots but traffic does appear to be looking good at this time. >>> megan has a morning news update next. >>> good morning. i'm megan pringle. the curtain is slowly rising on michael jackson's final show. we're going to send it over to sherrie johnson, who has the latest. good morning. >> reporter: good morning. today, michael jackson will be laid to rest in a few hours. his family will say goodbye at a private ceremony at forest lawn cemetery. he will be laid to rest in a specially designed costume. the world will join jackson's family in a star-studded sendoff at the staples center in los angeles. may mariah carey, the dancers who were going to be part of jackson's final performance will take the stage. and from the sports world, magic johnson and kobe bryant. not coming, debbie rowe, jackson's ex-wife and elizabeth taylor. 17,000 jackson fans will be there to cele

>> i still tnk they're expensive ambercrombie and fitch, the numbers are terrie. >> even bule soloff. you' got to stay away from these. >> that was the "word on the street." here's whas coming up next on the program. >>> oucountry's computer infrastructure is under attack. who are these murky cybertrorists and which stocks are striking back force? and puon your lab coats, "fast money." amn up 10% this week. the ne breakout from the top analyst in the fie. , our best play heading in tomorrow. drum roll, please.r, you get to r concierge aim nters. so i can just dr o my car and you'll te e care of everything? yeyeven the rental. whwhat if i'stuck at the office? ifou can't come to us, we'lco to you in one of our immedie sponse vehicles! then you probay woul'tave had an accident in t first place. anand wee walkin'! anan're walkin'... making iall a bit easier -- now at's progressive! mrmr. anan this is janicece fm m onar. i haha r recved an automatic sigigna yoveve bn in a front-end cra. . you need help? yeah. i'll contatactmemeency serviceses a s stawith you. u u ok? ahah. onststarststanrd

amberomkr ambeberoromb and fitch, the numbers are terrible.. >>>>ououe got to stay away fror these. >> thahawawas e "word on the street." re's what's coming up nextxt o the program. >>> ourur country's compupute infrastructure i iununde aaack. wharare thesese murky cycybeererrosts and which stocks are ststringngack force? and put on your lab coats, , ast money." amgen up10% this ekek e e ne breakout f fmmhe top analyst in t theieield plus, ourr be play head into momoow. drum roll, pleleas >>> julie jujust concluded an interview with the o orae e of oma omomah o oer wise known as rren buffet. hehe d comment on the neeeedfora secocondtitimus plan. julia? t tt's right, melissss did geaa chanceceoo catch u up wh warren buffet.. he said the consusumeisis still very, , ryry st. he said we're e inheheiddle of a moe e th started in september ananhe's not sure how longng ts vie is and when it'soing to end.d. he did say the stimumulupapacke was not t ouough the imulus was neverer degnedo act fast. hoped itit would startrickling inin and d in neral, i thi

has cutspending, but without thehefdic's approva, it may have to can a a t the treasury for h hel fitch has cut the cocompy's rangs, citingources of fundi nding. >>> > emc wins the data wawafof data domain. the two compapaeses had battled for r e e pa fewononth of control l of data dodoma.. it spepeciss inatata technology ich boosts the efficiencyy of storage uipment by dmrooet deleting duplicate fililes let's take a lk at emc today in frankfurt. those shares are e upbobout6%. christine. >> w wheerert's earnings, n new ababouchina, l these viosos d d blblog find them all at cnbc.com. >>>>anand coming up,, the nenewa china has arsted staff from rio o ntnto sent the aussie d dr wn. >> andnd w we'shshowou where we arare the currency markets. >>> weurn our attetentnn to o ee currenencymarkets.s. dollar/yen, 93.35. ro/dollar, 1 the 9. for more,,e're inined by nick hahaings, senior correspononde who has come intoto t cross rates, as ll. i have one q queioio about the g-8 or thehe -5 partt of the g- kekechina, india andnd brazil. ththeye been discussing on t t sidelines whwhheher they shouou h

abercrombie and fitch had been higher. right now lower on the back of the michigan number but macy's holding in as the unchanged rate. doesn't make sense to boost up retailers if consumers aren't ready to spend. let's move on over to the nasdaq and mike huckman. >> thanks, bertha. and we just saw some weakness creep in here at the nasdaq. right now it's up only .3 of a percent. the nasdaq trying to avoid the worst week in about two months. helping it to stay above water though are a bunch of bullish analyst calls in tech. these start with cisco where you have the analyst saying that company's previously announced cost cuts could go deeper than expected. that stock is slightly higher. so much for goldman sachs raising dell to a conviction buy. that stock went negative just a couple minutes ago. we do have credit swisse raising ep estimates on apple. it's up by more than 1%. thomas upgrading yahoo! to the equivalent of a hold rating. novellis is up 1 1/2%. to a needham to buy. that is helping it move higher by half a purse r

james becker was fitch years old when parents say he went underwater for 15 minutes before a lifeguardim. it happened at parkville back in 2006. james was revived but his injuries left him wheelchair bound and he cannot speak or eat. >> the last three weeks have been one word, help. >> james should have been starting college this year, instead he is living a life trapped in his own body. >> the cause of the current medical condition is the heart attack, it's not anything that the pool management company did or the life guards did or anything that they filed to do. >> the $40 million lawsuit is for the estimated cost of care of james for the rest of his life. >>> there won't be any ravens on the field, but football is coming to m m&t stadium, europen football. for the first time the stadium is hosting a soccer game and the game a sell out. joel d smith is live. it's supposed to be a big game, joel. >> reporter: the u.s. is hosting the milan and chelsea. when you're playing here, itguess the turf is not good enough, so we brought out, real grass to play some european football as you say,

there's an accident on the bel air road that is right at fitch avenue.travels. just log on to foxbaltimore.com. and click on the traffic edge icon. you can find that on the upper left-hand side of your screen. that's a look at morning commute. patrice, and megan, back to you. >>> thank you, candace. >>> coming up the wait is finally over. >>> when the american idol tour is coming to baltimore. >>> and next, ice age is back. we talk with star john leguasamo about the surprising role as sid onçÑçÑçÑ with fios, you'll get razor-sharp tv, blazing fast internet and crystal-clear phone service all for just... sign up today. call the verizon center for customers with disabilities at 800.974.6006 tty/v, and for a limited time, get an incredible compaq mini, to get the most out of your fios internet. get it all together with a great deal on fios tv, internet and phone plus get a free compaq mini netbook. just pay shipping, handling and taxes. call the verizon center for customers with disabilities at 800.974.6006 tty/v before time runs out on this astonishing off

chairman and thank ranking member donner fitch for providing me the opportunity to testify about president obama's proposal to establish a financial regulatory agency charged with just one job, looking out for consumers across the financial services landscape. as secretary geithner has said protecting consumers is important in its own right and also central to safeguarding our financial system as a whole. we must restore honesty and integrity to our financial system. that is why president obama personally feels so strongly about creating this new consumer financial protection agency. i understand the committee's concerns that have been expressed today with respect to boundary issues, jurisdictional issues and the role of the ftc. i think as we work together on those issues it's important to keep in mind the central goal we all share, having won agency for one marketplace with one mission, protecting consumers. the new agency will have the authority and resources it needs to set consistently high standards for banks and non-bank financial providers alike. to put the and to regulatory arbitr

and i kept thinking how is he going to catch it with this fitching pole? >> residents in the san andrews development in west palm beach kept their distance as they waited and watched a trapper with florida fish and wildlife go to work. >> we couldn't believe he got in the water. he got in there. >> there he is. there he is. >> he wrapped up his snout and he got him. he got him. >> reporter: it didn't take long for the trapper to snag the seven-foot alligator, and it didn't take residents long to show their appreciation. wildlife officials say the reptile attacked a terrier named mandy after his owner let him out in the back yard saturday morning. >> was out and went back down that little dip and an alligator came out and -- >> for gator then attacked mandy's owner, david, when he tried to stave the dog. >> said, okay, well she's loose but now you've got an alligator by the mouth. >> reporter: neighbors, especially those with pets, are on alert. brown says he's lucky to be alive. >> when he grabbed my hand and started spinning, he was so powerful. i mean, y

chairman and thank ranking member donner fitch for providing me the opportunity to testify about president obama's proposal to establish a financial regulatory agency charged with just one job, looking out for consumers across the financial services landscape. as secretary geithner has said protecting consumers is important in its own right and also central to safeguarding our financial system as a whole. we must restore honesty and integrity to our financial system. that is why president obama personally feels so strongly about creating this new consumer financial protection agency. i understand the committee's concerns that have been expressed today with respect to boundary issues, jurisdictional issues and the role of the ftc. i think as we work together on those issues it's important to keep in mind the central goal we all share, having won agency for one marketplace with one mission, protecting consumers. the new agency will have the authority and resources it needs to set consistently high standards for banks and non-bank financial providers alike. to put the and to regulatory arbitr