i want to pause and go to poppy harlow.e sitting there, they have the apple stock, they've got google. how did they fare today? >> you know, not well at all. general electric down 5.7%. let's look at exxon oil, down 5%. google, you know the company well, down almost 4%. i want to point something else out. alc alcoa, you use its product, biggers loser on the do you. brooke this is a company that tells you about the global economy. you use aluminum for everything. 89s this is a demand picture, but i want to bring jay in for his take on where, if any, the safe havens are. you saw a decline in gold and silver. if you were putting your money in oil, guess what? oil futures dropped 6%, gasoline down 6%. the question, where is the safety? treasury yields dropped as well. so the big question is where do i put mire money to work? jay made an important point, this is not a time to sell your investments. you stay in if you are already in it. however, if you want to put some money to work, this might be the time, but the real thing tha

ali velshi at cnn in new york and poppy harlow from the cnn money set. poppy, something interesting happened and that is that people went much more toward safer things. treasury, bonds basically yesterday. >> yeah. >> reporter: isn't it an interesting transition, deb? when you look at a week ago, we didn't have a debt ceiling deal, we didn't know if the u.s. credit ralt rating would be downgraded. what we saw yesterday people jump out of the stock market as the day progressed, as the losses got worse on wall street and jump into u.s. treasuries. what i thought was so interesting was just the short-term treasury, the one-month t-bill as it's called. that was at one point yesterday issuing a negative return, .01%. that means people were paying the u.s. government slightly to hold their money. they felt that that was safer than being anywhere on the stock market. when i mean anywhere, i mean that because we saw losses across blue chip companies. all of the dow 30 were down from apple to google to the biggest oil company in the world, exxonmobil to general el

in new york, poppy harlow, cnn money. >>> u.s. president barack obama is fighting to keep his job.employment is up. his approval numbers are down and he's running out of time to change the current scenario. as jessica yellin reports now, a new jobs plan might be his best hope with the emphasis on "might". >> reporter: even during a speech to the american legion in minnesota, the president couldn't resist a preview of his highly anticipated jobs plan. >> next week i'll be speaking the the nation about a plan to create jobs and reduce our deficit, a plan i want to see passed by congress. we've got to get this done. >> reporter: it's an effort to jump start the economy and shore up his dwindling poll numbers. a recent cnn/orc poll shows only 37% of americans approve of how the president is handling unemployment. next week he's rolling out a package that's likely to include an extension of a payroll tax cut for workers set to expire at the end of the year. also possible in the plan, businesses could get a tax break for each new worker they hire or even an additional credit for hiring t

right to my friend, poppy harlow. poppy's got the latest. let's send it over to her. >> reporter: reynolds, you've got the wind. i've got the rain. this is the heaviest rain we've got in new york city yet. but, folks, if you're in new york and watching, expect a lot more for a long time. we're at the southernmost tip of new york in battery park city, part of zone "a" that's being evacuated. you'll see a lot of taxis waiting here. they've been filled with people throughout the day. you've got massive, massive apartment buildings here with mandatory evacuations. 370,000 people in new york city, mandatory evacuation for them, the first-ever this city has seen. i myself live a few blocks from here. i had to evacuate at about 4:00 this morning. so this is no joke. just a little while ago, we had a chance to talk to the manhattan borough president. he's in charge of this whole area, right under mike bloomberg, the mayor. take a listen to what he said, especially to those people that are not heeding the warning to evacuate. take a listen. >> you sh

poppy harlow joins us from new york. it does sound like the u.s. has been thrown out of a very exclusive club. >> yeah. you're exactly right. they have in essence. the aaa club. there used to be up until 8:00 p.m., 16 countries including the united states, that meld pristine aaa credit rating meaning that our debt was the safest place for people all around the world to invest. 46% of our debt is held by people outside of the united states. now you see the united states in red on your screen. that is because notices longer part of that club. now you have 15 countries and the isle of man still with that aaa credit rating from australia to switzerland. no longer the united states. to give you some perspective, a aa plus credit rating is still a very strong credit rating. it puts us on par with belgium but below places like the umpbl k and australia. the bigger picture and the bigger question that's getting a lot of focus now is whether or not the united states needed this. what was it that, was it the kick we needed? the growing debt in this country,

. >> our poppy harlow is in new york for us this morning. poppy, good morning to you.e we have been mentioning, rob mentioned a short time ago, when emergency officials said the biggest concern about irene in new york is new yorkers. new yorkers have seen a lot and been through a lot. this is something they will ride out? >> reporter: people are heeding this warning. it is historic, t.j. the city of manhattan and new york city has never in the history of the city been evacuated before. they are listening to strong words from mayor mike bloomberg. i want you to listen to the warning he issued last night to all of new york city. take a listen. >> we hope new yorkers living in the areas find places to stay with relatives or friends who live in safer higher areas. if they can't, we are ready to accommodate anybody that needs shelter. there will be, unfortunately, a serious storm coming in and it's better to take precautions and get out of the way of the storm. mother nature is much stronger than all of us. >> reporter: it is true. the storm is stronger than all of us. even

for now poppy harlow is in lower manhattan. unprecedented mand evacuation. poppy, we've never had a mandatory evacuation in new york city. you live in the area that's being evacuated. what's going on? are people leaving? are new yorkers who are known for their resilience if i may dare suggest stubbornness. are they taking this advice? are they leaving? >> reporter: we are stubborn and resilient but we know when we have to go. as mayor bloomberg said this storm is the stronger than all of us. we're leaving immediately after your show packing up my apartment a few blocks from here and i'm going to go more inland in manhattan. they are leaving, heeding the warning. you got a hotel right over here to me on the southern tip of battery park. ritz-carlton moving their hundreds of guests out to other hotels. some are going to schools that are turning into shelters. 91 shelters in new york city. mayor bloomberg has called in 900 soldiers, the national guard, 100 army vehicles to try to help, police officers will be down here. where i'm standing, piers, to give you a s

poppy harlow is here to break it down. and poppy, a big deal? not such a big deal? do we know yet? >> can i say all the above? this is a big deal in that it has never happened before this country. we have enjoyed a pristine aaa credit rating as far back as we can remember. this is the first downgrade in history. to your point we don't know yet. not a big deal, what does it mean for the people at home? what does it mean for the stock market? since it is uncharted territory, we don't know what it means. it could be dramatic on either side. what is critical here is the timing. this comes at a point in time when our economy is so weak fundamentally. at a point in time when we saw the worst sell-off. i talked to the traders after the close of raiding on friday and this is the one thing that they were worried about heading into monday's session. whether or not s&p would downgrade the credit of this country. a few hours later they did exactly that how many wall street reacts, how the stock market reacts is yet to be seen. historically when we saw the downgrade of canada in the '90s, japan

another day. >> poppy harlow, i'm so glad you did that.y and a little stressed after you and all those guys racing around there. a lot of people, seriously, have been tweeting me this week as we have been watching the dow up and down very dramatically and some very down days on the dow and people are looking at the closing bell and thinking why are you applauding? i'm losing money on my 401(k). why are they clapping, poppy? >> i and the cnn money team behind me have been up there, rang the opening bell. the sense of elation. you're so excited and sort of an honor to be up there. not everyone gets to do that. wow, good job getting the video, guys. also, you know, brooke, a lot of these companies that are filing ipos. if they're going public, they're going to be ringing the opening bell. they're happy about that. a lot of promotions. >> what about the closing bell. >> that's what i'm talking about. you have promotions and different celebrities up there promoting their movies and their products sometimes. they're up there and they're excited

let's bring in cnn's poppy harlow and lex harris. poppy, let me start with you.hich countries are still aaa rated? >> no longer the united states, wolf. that is for sure. we're going to show you on the screen the 15 remaining aaa-rated countries in the world right now. we were part of this club until 8:00 p.m. eastern last night when s&p removed us from it. everyone from australia to denmark, germany, which is your strongest economy, the netherlands, sweden, the united kingdom, and even the isle of man off the coast of the uk. so this is the harsh reality, as one wall street analyst put it in his note, he believes the emperor had no close to the united states. however, i want to put this in perspective and show you other countries and where they stand in their ratings. let's look at china, japan, brazil and india. china right now, which is the biggest holder of our debt, is rated below us. aa-minus. japan, same. brazil, some of these are wrong on your screen, so i'm going to correct them. japan is rated aaa. brazil is a bbb-plus. india is a bbb-plus. japan, i thi

. >> now, let's turn to poppy harlow at cnnmoney.com. what do you make of this? everything we hear about corporate earnings, that sounds strong and the companies are not hiring? >> it's such a great point and such an important point to make, randi. you have the performance of major american companies that is so strong, some record profits we have been seeing lately and then a lack of hiring. a big divide between how we are all feeling and how the corporations are doing by the numbers. just to give you a sense of how much cash these companies have on hand, i want to pull the number up for you because it's astonishing. that's $1.5 trillion, and that's how much publicly traded big companies in this country have on their books. and to put it in perspective, that's the same of the gdp of canada, the entire country of canada, and with that cash they are not hiring right now. and take a look at the screen. it's the small and medium-sized businesses doing the hiring right now. the two red marks represent 2 million jobs at small and medium sized companies have made in the

our poppy harlow of cnnmoney join us now with the very latest details. poppy, at the crux of this, this may be a sad story about a man who is too ill to carry on, we don't know, because we have been told that he will still have a big function in the company, but what can you tell us about this and what it may mean for the apple brand? >> absolutely, candy. it's important to note that the letter that steve jobs just issued to the apple board of directors and the apple community, that is who he sent it to, it's very short, and he said, i hereby resign as ceo of apple. and he said i would like to serve as the board sees fit as chairman of the board, director and -- as chairman of the board, so he's saying that he would like to stay on. clearly if you read through the lines, there are concerns about what does this mean for steve jobs' health. you remember he was diagnosed with cancer a while ago, that he took a leave of absence. he then came back to apple. he took a subsequent leave of absence, but of course still remained integral in the company. this is a m

with our -- i think we have alison kosik who is at the new york stock exchange -- sorry, we have poppy harlowf what is behind the numbers that keep fluctuating. >> it's interesting, fred. when you look at the numbers, you see an uncertainty among investors. we have it right here on our home page. we will pull it back up in a minute. that volatility that we are seeing in the market, yesterday we saw the market fall 512 points, and today we started up about 130 points and then fell significantly down more than 200 points and now we're coming up. this is the new name of the game on wall street. it's all about volatility. a lot of it comes after the jobs report which was a lot better than expected, but we want to point out that the fact that the companies with the biggest hike in the country are not doing a lot of hiring. to give you some perspective, that's the same size as the gdp of canada, but even with all that cash they are not doing hiring right now. i want to show you some numbers so you get an idea of who is hiring and not hiring. when you look at the small and medium companies represent

. >>> a teen idol from the 1970s tells our poppy harlow all he wants is his fair share. >> if somebodys not pay you and you are entitled to a percentage of the profits and you know they're making profits, is that stealing? >> find out who david cassidy claims ripped him off so many years ago. then they gave us an iihs top safety pick and you... well, you gave us your approval. so we thought, why not give a little back. the chevy model year wrap up. get in on our greatest model year yet. and now, very-well qualified lessees can get a low mileage lease on a chevy cruze ls for around $169 a month. our greatest model year yet is wrapping up. the nascar nationwide series, i know pleasing fans is a top priority, 'cause without the fans, there'd be no nascar. just like if it weren't for customers, there'd be no nationwide. that's why they serve their customers' needs, not shareholder profits. because as a mutual, nationwide doesn't report to wall street, they report to their customers. and that's just one more reason why the earnhardt family has trusted nationwide for more than 30 years. nati

bring in poppy harlow to talk about this. who's left in the aaa club now the u.s. is out of it?> you are right. we got booted out of the club 8:00 eastern time last night. it was 16 countries and now it is 15. we have have them we will pull them up on the screen for you. australia, canada, german ny, singapore, switzerland, the netherlands. you see them on the screen. even the isle of man, a tiny country off of the coast of the u.k. those are rated the pristine aaa credit the united states is no longer part of that club. however, i want to put it in perspective. a aa-plus is not that bad. it rates us higher than a lot of other countries, higher than japan, china, much higher than brazil and india. when you put it in perspective, our debt is valued higher than the debt of those countries. an interesting note here, china is the biggest holder of our debt and almost half of the debt of this country is held by foreign entities. that's why it is a global story. it is not just about the united states. >> there's a lot of concern nation how they came up with with this. a lot of folks i

poppy harlow, if you saw her a little while ago, she gave us a tour of mayor of secaucus's basement. falling out of one of these homes. we'll check in with poppy coming up next. t on your phone, which makes it this easy to talk face-to-face with another iphone. this easy to talk with a mac and this easy to talk with an ipad. facetime. just one more thing that makes an iphone an iphone. while i took refuge from the pollen that made me sneeze. but with 24-hour zyrtec®, i get prescription strength relief from my worst allergy symptoms. so lily and i are back on the road again. with zyrtec® i can love the air®. that's how it is with alzheimer's disease. she needs help from me. and her medication. the exelon patch -- it releases medication continuously for twenty-four hours. she uses one exelon patch daily for the treatment of mild to moderate alzheimer's symptoms. [ female announcer ] it cannot change the course of the disease. hospitalization and rarely death have been reported in patients who wore more than one patch at a time. the most common side effects of exelon patch are nausea, vo

let's go to poppy harlow live in see caucus.to me about what you're seeing around you and how big of a concern is flooding in secaucus. >> reporter: the sun is out. this is the first time i've seen the sun since friday afternoon. we've been reporting throughout the weekend. it's deceiving because the think the storm is passed and it is all fine. that's not the case. we are standing here with the mayor of secaucus, we'll go into his house in a minute was it is severely flooded. how many people were affected by flooding here and et cetera? >> two thirds of the town without power. at least a third probably more has been affected by severe to moderate flooding. >> just to situate us, five miles from new york city. we are 100 feet right now from the hackensack river. that literally flowed into the back of the mayor's house. do you want to take us inside and we can see the situation? you have emergency personnel here. we're hooked up to a lot of wires obviously but we're going to go down into the basement, his son's home and give you

let's talk more about this with p poppy harlow, where are the layoffs? jump and it comes at a time of such volatility and uncertainty and the market has been down for eight straight days. the market is down 100 points right now, in part reacting to these jobs number. one, a lack of demand, people are not spending a lot of money right now and companies feel the environment is so uncertain, they've got health care reform, they've got financial reform, they don't know what's ahead in taxes. let's go through the three biggest job killing companies. before i do that, i want to play for you the reason why we're seeing all of these job cuts, this comes from john challenger, who issued that report. take a listen what he says. >> one picture is, we're in this rocky recovery, in one of those entrenchments. but increasing concern that the economy may be heading towards recession. companies making layoffs rather than just holding on to their people. the government's stimulus, both fiscal and monetary is at risk and maybe there's not going to be enough consumer and b

we will check in with alison kosik and the new york stock exchange, and poppy harlow in new york as well>> the dow down 326 points. we're getting close to seeing the market correction. right now we're at 11,571. when we get to 11,521 that's the level of a market correction in that that the past two weeks the dow has lost more than 1,000 points, poof, gone. the reason is we have a combination of factors that work here including the concerns about the possibility that the european debt crisis could get worse and spread here to banks and businesses here at home, and then the litany of economic reports that are weighing on the markets here and weighing on investors and that's why you see the selling today. just an indication of the market fear. we look at the thing called the vicks index, and that shows there's a lot of fear in the marketplace. >> let's check with poppy harlow. that fear, i guess, is kind of cascading as it pertains to jobs. the loss of jobs, and this jobs report coming out tomorrow which is not expected to be very up lifting. >> that's such a good point, fredricka. we were

we are poppy harlow in new york.o talk to schultz about the pledge. >> reporter: i did, kyra. this is a radical movement you don't see this often. howard schultz wrote a letter to fellow ceos asking them to come on board. he is saying washington needs to get it together before we give anymore money to political campaigns. he had 100 plus ceos sign on. republicans and democrats. tim armstrong. the ceo of whole foods. the nasdaq and new york stock exchange. their message is two part. washington, get it together and stop the partisan bickering. he is asking these ceos to hire and not wait for washington to create a jobs plan. take a listen to how he explained this move to me. >> what i'm trying do and i'm so thankful that the other ceos have joined me is send a powerful message to washington that we do not want to impress the status quo. we want to be respectful and be civil in our concern and criticism. we are begging you to please not only go back to work, but end the partisanship and represent the citizens of the cou

poppie harlow has more. >> reporter: you with watch your interest rates on your mortgage go up. more homes are going to sit on the market. prices of homes could fall further. the only silver lining is for long-term investors who see a buying opportunity. expect your interest rates to go up. it will be pretty tough for people with middle to lower credit scores to buy cars and new car sales will fall. the car market is not that healthy. when it comes to college loans, what does this mean for your college loan? when you look at loans, similar story. private loans will see interest rates increase. it will be tough to get a loan in the spring. students will have to work more to pay off the increased interest rate. finally, the only silver lining is most students have the financing for next year already lined up. >> poppy harlow for us. some analysts think the credit downgrade is not having an effect on the markets. listen to the global editor for reuters told our anderson cooper. it could have a positive impact on some investments. >> we are seeing lots of sovereign debt issues in eu

. >>> we're at the bottom of the hour now, and poppy harlow, as we turn back to new york city, she's w moved to battery park city there in new york. hello to you once again. and we keep reiterating, poppy, the clock is ticking if you need to use public transit in new york. >> reporter: yeah. no question about it. one hour and a half, that's all you have if you live in zone "a" in new york city. that is 370,000 people that are under mandatory evacuation. we just moved down here to battery park, here's why. this is, at the lowermost tip of manhattan island. i live a few blocks away from here, i had to evacuate. what you have behind you is ground zero, just what it looks like, the freedom tower right there being built. the city working and the port authority and the construction workers, t.j., they're working to secure the cranes. i don't know if you can see it, but they've got cranes hoisted up on the building. obviously, you want the cranes very secure in the massive winds that we're expecting here. every single family in all of these buildings is being told to evacuate. you can see, t

for now, i do want to go to poppy harlow with cnn money.com. poppy, i understand you interviewed a trader today who had some perspective on the moment the president spoke. what did he say? >> reporter: that's right. i talked to two critical people. one on new york stock exchange. teddy wiseberg. you talked to him last week when we saw the fall on thursday. on the floor more than 40 years. also, chief investment strategist at standard & poor's. we'll get to him in a minute. let's talk about what the trader told me. he said, i remember the president spoke about an hour or so ago. he said as soon as president obama stopped talking, the market tankds 1250 points. it fell 604 points. are you relating the two? do you think they're combined? he said absolutely. he told me i and the traders on the floor did not hear anything different than we usually hear from this administration. he said it was similar to back in 2008. that sort of feeling of chaos in the winter of 2008. the beginning of the president's term. the message that the street wanted to hear,

here is poppy harlow. >> time for the help desk where you get answers for your financial questions.nks for coming in. got interesting viewer questions. the first for you, john, comes from patricia in phoenix, arizona. i am a grad student with $13,000 in credit card debt and considering take k out a student loan to pay it down. is that a good move? >> i would love to say that's a terrible move but i will not say that because believe it or not there are hidden gems of gold within that question. you are converting involvement debt to installment debt, better for the credit score, and not tax deductible debt to tax deductible, and then dischargeable debt to nondischargeable debt. you are borrowing from peter to pay paul, and you are in the same debt but less expensive and more beneficial debt, so if she is disciplined, not a bad move. >> we're talking about 13 grand, and not 300. >> exactly. >>> and david wrote my wife and i both have our 401(k)s set up in the same company, should we keep it simple or have a separate strategy? >> this question comes up in financial planning. people forg

cnn's poppy harlow in new york. poppy, you talked to howard schultz today. what is he saying?: i did. i mean, he's clearly had it with washington. he's fed up. like a lot of americans are. it was that debt ceiling debate debacle if you will that led him to this position. he said washington doesn't have it together. this lack of leadership has led us to a crisis in confidence and he says that in turn trickled into the financial markets which we watched play out live on your show all last week, that it's trickled out to the broader economy and he sent a letter to fellow ceo's asking them not to make political contributions at all, brooke until washington figures it out. i am asking that all of us forgo political contributions until congress and the president return to washington and deliver a long-term debt and deficit plan to the american people. he explained that further to me in our interview this morning. take a listen to what he said. >> when i began to kind of ask the question, what could we do? i uncovered the fact that almost $4 billion was spent in 2008 in the president

poppy harlow's here to break it all down. poppy, this essentially kicks the united states out of an exclusive aaa club, but what does that mean, really? >> it absolutely does and there are more and more that are saying right now that that is a wakeup call that the united states needed, that it wasn't on a fiscal path that was sustainable and it does. let's take a look at the countries that still retain their aaa credit rating, the united states not among them now, countries like australia, canada, france, germany, the united kingdom, switzerland, the united states was part of that exclusive club up until 8:00 eastern when s&p downgraded it. it is no longer part of that. just to put this in perspective for you, we're still rated at aa plus, that's still a very high rating, this puts us right in line with belgium. this is still a high rating, but the concern is what does this do on one hand to confidence, to the american consumer right now, given the high unemployment, given the lack of consumer confidence, what does it do to th

appreciate that, poppy harlow. >>> the debt deal is done, so now what?looking at at look the at what the deal could mean for the stock market. our focus is on small businesses. bill snap is ceo of solar flex tech faulg. his company designs and maintains solar systems for businesses, the government and the military. when you were here last week you described how the debt ceiling deal might impact your business, and now there is a debt deal that has been signed and about to be delivered. what are you looking at in terms of your business plan? how will it impact you? >> as we mentioned last week, the work that we have -- that we currently have under contract, that has been budgeted and allocated, and the familiar tur for us six months out in our government contracts, we don't know what is going to happen. but clearly, there is across the board cuts and defense gets an unduly charge share, that will impact us. >> how much of your business relies on the u.s. military? >> it shifted. in the last two years it has become a great deal of business for us because t

poppy harlow is there in manhattan where a lot of people are not used to preparing for a hurricane.e told, you got a little reminder yourself, not too long ago about hurricane preparedness. you were told you had to evacuate. >> reporter: that's exactly right. yesterday afternoon the mayored said if you live in zone "a," a lot of lower manhattan, you have to move. my apartment is about a block from the ocean. i had to get out after we got off the air late last night, packed a bag, left about 4:00 this morning myself. and 370,000 other new yorkers are now under mandatory evacuation here in the city. it is the first time in the history of this city that the mayor has issued a mandatory evacuation. that gives you an idea of the sbe severity of it. the folks i have with me, the aella, family, from rockaway, from queens, right by the water, elizabeth the mother of these two girls, her grandchildren here, 4-year-old christopher, obviously his first evacuation. tell me about the process this morning, getting here on the subway very early, getting here before public transit shuts down at noo

in new york, poppy harlow, cnn money. >>> record heat in july made life miserable for americans but also the arctic. we will check in with chad meyers who has new images of the ice pack to show us. my hair flowing with petal softness and glistening shine. now, that's paradise. [ female announcer ] clearly, someone's been doing the herbal. herbal essences collections... for softness and shine -- the way nature intended. are you wondering about your options? with over 30 years of medicare experience, unitedhealthcare medicare solutions can help. just give us a call. the annual enrollment period to switch your medicare coverage is earlier this year, from october 15th to december 7th, so now is a great time to review your situation. i'm looking for help paying for my prescriptions. [ male announcer ] that's a part d prescription drug plan. choose a stand-alone plan, or combine it with a medicare supplement plan. it's all in our free guide. is there a single plan that combines medicare parts a & b with medical and drug coverage? [ male announcer ] absolutely. many medicare advantage plans can

and poppy harlow is at one of those centers. poppy, new york a densely populated city.vacuation notice being taken? >> well, you know, drew, it's perhaps most important in places like we are right now, we're at the largest hospital on staten island, wae we're on the south shore. to give you perspective, we're only half a mile from the beach that is going to get hit incredibly hard. what you see going on behind me now, all of these new york city buses, these are evacuating patients. got about 430 patients here. so far they manage to discharge 200. those people have been able to go home. it takes a long time. i've watched patients come out with oxygen tanks on beds. three different patients who were evacuated from the burn unit by helicopter. this is a process that takes a long time. it's a delicate process. and just to explain the magnitude of this for you. this has never happened at this hospital before. the director of ems says they've prepared for this, run through drills but never before has this hospital been evacuated and drew, never before has the city of new york

poppy harlow is in millburn, new jersey, tonight. what's it look like? >> reporter: we are on the main street in millburn. all the residents and business owners were here because it looks like every one of the businesses on main street got flooded. some got flooded badly. maybe you can hear the bell going off. it was obviously set off by irene and won't stop. what happened here is there is a river that runs right through this town. it crested and just flew right on over and washed right into businesses and they are used to this. they were flooded badly in 1999. chris christie said a lot of the rivers are either at record levels or near record levels. there was a lot of rain here for the last two weeks so the ground was soaked with water already. this pushd it over the edge. take a look at this local restaurant here. look inside. it was devastated by irene and all the flooding. we got a chance to go inside with dana the owner this evening for a real sense of just the damage that's been done by irene. listen to what he told us. we're going to see the basem

i want to bring in cnnmoney.com poppy harlow in new york. ppy, let's begin with this report out from morgan stanley because there are two headlines. >> right. >> we know they are slashing its global growth outlook, not just for this year but for next year, but the big headline gaining a lot of traction, the headline here, that we're dangerously close to recession, both in the u.s. and europe. >> yeah. >> what do they base that upon? >> reporter: well, that's what shocked investors. they base it had upon growth projections so let's go to those numbers first. what morgan stanley did, they came out with this that we all have, they said they project the growth of the u.s. economy in 2011 this year and in 2012 is going to be pretty significantly slower than they expected and then off of that they say that at this point, not only the u.s. but europe, both are ding rousely close to hovering close to a recession. technically what a recession means is two quarters where this -- that our economy doesn't grow, where there's actually a move backwards, if

poppy harlow will talk about this now. poppy, who's left in the aaa club now that the u.s.it? >> you're exactly right. we got booted out of this club about 8:00 eastern time last night. it was 16 countries. now it's 15. if we have them, we'll pull them on the screen for you. australia, canada, germany, singapore, switzerland, the netherlands, you see them there on your screen. even the isle of mann, a tiny country off the coast of the uk. those are rated that pristine aaa credit. the united states no longer part of that club. a aa plus credit rating is not the worst thing in the world. it's actually pretty darn good and it rates our debt higher than a lot of big countries out there. we are rated higher than china, higher than japan. those both having aa minus ratings. rated much higher than brazil and india, don. when you put it in perspective, our debt is valued higher than the debt of those countries. an interesting note here, china is the biggest holder of our debt, and almost half of the debt in this country, don, now is, held by foreign entities. that's why it makes it

. >> yeah, i was watching some of poppy harlow stuff out of new jersey, heartbreaking for the businessesand that just the pictures that we showed were multiplied by at least 100 times where 100 businesses that we never got to. the rain was all the way up into vermont but it was centered over parts of north carolina. i've heard a lot of people say it was an overhyped storm, wasn't that big. it wasn't that big because north carolina took the brunt of it. north carolina took the stuffing out of the storm. it never reorganized when it got back over the land. had that storm missed north carolina or brushed the outer banks and didn't stay over for 12 hours it would have been a much bigger deal for new york city, a much, much bigger deal. let's go to new york city, up here, let's go to pine brook and look at the rivers here, still rising in many spots, at record levels. there's pine brook, here's the river, right through here, right over the highway. click on that, still rising. the old record as high as it's ever been, 23 feet. we are over that record right now. a little bit farther to the nor

than employment percentage, we talk about the net gape of 117,000 months for the job of july, poppy harlow, what everyone wants to know where are the jobs? great jobs that people are hiring? >> that's very interesting point. we expect it had to health care, saw 31,000 jobs added in health care last month what we didn't expect were the additions in retail and manufacturing. when you look at retail, 26,000 jobs added. manufacturing, 24,000. this is after some very weak manufacturing reports we like it see that retail, great news, because 70% our gdp in this country comes from consumer spending, like to see the retail numbers higher. i do want to point something else out in this report, brooke, again doesn't get a lot of attention, you look at who is getting the jobs, guess what the jobs were going to people without a high school diploma or just with a high school diploma, not to people with clem degrees. those jobs went down over the moment and that tells us that these jobs respect necessarily the high-paying, skilled labor jobs necessarily, these are more lower-end, lower-paying jobs. so, t

poppy harlow is standing by in millburn now. what do you see? >> reporter: it's died down in terms of the chaos on main street. what you still see bemind me is workers around the clock trying to clean up their businesses that have been decimated by the flooding. we had massive flooding. look at this mexican restaurant. take a close look inside here. it is full of mud and dirt. it was flooded with water. the basement has ten feet of water in it. you've got all these small businesses on main street trying to recover. they went through this ten years ago in hurricane floyd. they know what it's like. we haven't talked about the residents today. we have steve and fran here. what's upsetting you is it will be a long time before power goes back on. tell me your situation. >> the power went off last night. they're telling me it will be seven days before power is back on. next sunday afternoon we'll have power. >> reporter: how does that make you feel? i know you work from home. how difficult is the situation for you and your neighbors? >> it's hard to l

here's what he told poppy harlow. >> let's send a powerful message to washington that we want to seetely, in this case, that change is about the fact that we're not going to contribute any more money until we ask respectfully congress to go back to work, reach a long-term debt ceiling deal that will remove the cloud of uncertainty in the world and i think begin to focus like a laser on the most important aspect of the american economy, which is job creation. >> you can watch more of that on cnnmoney.com. that kind of message, we talk about it. i've seen him on other tv shows. anybody in your circles do politics, anybody care? >> no. and that's utopian viewpoint. i'm sure there's several very wealthy folks who believe that, but they're going to play in the game because they feel they can act change. we see rick perry on the campaign trail, mitt romney on the campaign trail talking about how they can fix the economy. the only way they can win the republican presidential nomination and the only way is if you have money. of course, president obama's got his donors, so while you're see so

we want to check in with poppy harlow, she is in milburn, new jersey where it's not the lights that's a concern but the flooding. how bad is it? >> it is bad. every single small business i can see here has been hurt a lot from significant flooding. the reason is there's a river over there, very close to these businesses. it crested, rose more than six feet. came over, poured over the street and flew into the businesses. tinga eatery got hit. guys, if you look down here. the floor was literally lifted up by the water. tell me how you would assess the damage here? >> i'm trying to look on the bright side. the bright side is all of the stuff that's hard to replace, the decorations, the murals, it's not destroyed. so it's basically the basement is completely flooded up to the ceiling. it's a lot of stuff. >> we'll see the basement. if we can look at floor here, it's full of mud. a lot of sewage, grass, leaves flew into the restaurants. this stuff with be cleaned up, but what dana was telling me earlier t will take about a month and the concern here is that oftentimes flood insurance doesn

cnn's poppy harlow is here. we should have sold off the gold necklaces.ot a few months ago, but changed that! >> i was just saying your gold earrings are beautiful, kyra. keep them. they will be worth a lot more if this trend continues. i want to show folks a chart here to give you a sense what exactly is happening. a complete relationship between stocks and where gold is going. the green line is the dow. you know how your stocks have done lately if you've been watching the markets at all. gold is up 2% out of the opening gait and gold trading at $1,744 an ounce. a record high. if you were just for inflation we have to get up to $2,200 but we are close to that. we just talked to one gold trader who told us something interesting saying usually when you see gold prices spike and you see demand for gold etfs or what have you, investors going into gold you see the price of gold jewelry go down that is not what is happening right now. you are seeing demand for gold jewelry go higher. people are buying to wear it and use it as an investment and buying into gold

cnn's poppy harlow just talked to the global head of sovereign rating and he commented on what the u.sd to do to get the aaa rating back. poppy, you talked to him one-on-one. >> reporter: i certainly did. it was interesting. cnn asked him this morning also, you know, about the $2 trillion quote, unquote error that you heard the administration pointing to, and he called that a smoke screen, essentially deflect the debt problems of this country. as to what the united states has to do to regain the aa accredit rating, obviously, we have to get the fiscal house in order. the s&p would like to see more spending cuts, but one of the more interesting things he pointed out was the issue of taxes. i want you to take a listen to how he addressed increasing taxes. take a listen. >> it's possible also that the administration will be able to persuade by next year congress to, you know, do what the administration wants to do and make for extra revenues from high income taxpayers and that could also enter the vix in which case the outlook could possibly revert to stable. >> so he's talking about the

but first i bring in poppy harlow, this essentially kicks the u.s. out of a very exclusive aaa club. >> it does, don. up in the about 8:00 eastern last nights, we were part of 16 countries to have that pristine aaa credit rating, we no longer do. we still have it from moody's and fitch. i want too talk about the countries that still hold that aaa credit rating. australia, austria, canada, denmark, finland, the united states not part of that anymore. we still have a pretty high rating, aa plus, just knocked down one notch. we're rated higher than china. china has a aa minus rating. this puts us on par with a country like belgium for example. and this by the way has happened to other countries like canada, that have after a few years gotten that aaa rating back, don. >> so which factors did s&p use? i know there was some back and forth about it. but what do they use to come to their decision to downgrade our country's credit rating? >> it's a good question, because there's five main factors, i'll put them up here on the screen so you can see what we're

poppy harlow, thank you very much. >>> who would you choose to run against president obama?he revealing numbers that could turn the gop presidential race on its head next. what do you got? restrained driver... sir, can you hear me? just hold the bag. we need a portable x-ray, please! [ nurse ] i'm a nurse. i believe in the power of science and medicine. but i'm also human. and i believe in stacking the deck. >>> time to check in stories you may have missed. hurricane irene carves a destructive path across the bahamas and has demolished dozens of homes. the category 3 storm now battling nassau. as irene makes its way stateside, amtrak is canceling train service for friday, saturday and sunday south of washington. service for the northeast corridor is not affected at this point, but amtrak says additional cancellations may become necessary. in the meantime, communities along the eastern seaboard are in full preparation mode in case irene is the first major hurricane to slam the coast in years. you're looking at the latest projected path for irene. emergency crews, state and ci

cnn's poppy harlow is in milburn, new jersey, where the river overflowed its banks today, poppy? >> reporter: absolutely. astonishing to see that, martin. let me take out my peer piece. the river, just like the chateau, came over, interest crested about 2:00 a.m. in the morning and flowed over all of these businesses. talk about what you experienced here. obviously, cleanup mode. you said you can't afford to be out of business for very long. what has this been like for you? what happened somewhere. >> it's been a nightmare. it's like floyd all over again. it's really a shame. you know, the mud was like two inches, three inches deep in here. i have to check out my ovens now and make sure they're running. i know the burners have to get drained out and stuff. you know, i've got to get back in business. >> reporter: take us into the kitchen. as we go there, guys, all the business owners that i talked to here tell me this is just like ten years ago. hurricane floyd, that was 1999. a little over ten year ago. that was actually worse. the only thing it wasn't as bad as hurricane floyd w

poppy harlow has a look at business news. >> the federal reserve holds its next policy meeting on tuesdayre the central bank won't raise interest rates there's a lot of speculation about whether or not the federal interest dused a new stimulus program to shore up the economy. this will be the first meeting since the massive sell-off of the stock market and also congress's deal on the debt ceiling. it will likely impact the market. we'll be following it all on cnn money.com. joe, back to you. >>> remember, can you get your financial fix every day on cnn money.com. >>> checking our top stories, we're getting the first results of how the world markets are reacting to the downgrade of the u.s. credit rating. israel's stock market dropped nearly 7% after its open was delayed for almost an hour due to pre-opening jitters. across the middle east, markets are down, markets in the region operate on a sunday through thursday schedule. >>> president obama is offering condolences to the families of the navy s.e.a.l.s killed in afghanistan. he returned to the white house a short time ago from camp dav

we are going to go live now to poppy harlow in lower manhattan near ground zero, and poppy, what's thecene there? go ahead, poppy, can you hear us? >> right now, i'm at the southernmost tip of manhattan at a place called south street seaport and i can hear you, but there is a delay here. it is full of tourists, usually. i have not seen one person on the street. i just want to show you what the local businesses are doing here, guys. you can see how heavy the rain is, and take a look at the local businesses, this is a wine shop all boarded up, sandbagged up, and you will see this at every single business we have been driving to here. we are below wall street to give you some perspective, and nothing is open. i have not seen one person. there are no cars even on the roads down here. and the only vehicles that we have been passing by are the e mj si vehic merge en si -- emergency vehicles, and we are making our way toward ground zero. this is flood zone a and you are right, because it is sea level, and only a block away is new york harbor, the east river. i have never in my ten years of ne