good morning. it is thursday, july 14th. this is your a.m. wakeup call. here's break is news. we just learned that british police have made an arrest in that scandalous phone hacking case that brought down -- that is bringing down parts of rupert murdoch's news empire. i'll get you more on that in just a moment. i wish i could say there's big news about the debt ceiling talks. i can't tell you that. there's more drama than dealing going on in d.c. right now. a fifth round of talks is set for today. but yesterday didn't go so well. house republicans called for a short-term extension and house majority leader eric cantor says this is what the president said in response. quote, don't call my bluff, eric. and then he walked out a few minutes later. president obama said all along he'd veto any short-term measure. ed administration says failure to raise the $14.3 trillion debt ceiling by august 2nd could trigger a partial default on the part of the united states. thanks to that debt ceiling issue and the possibility of default you're on notice. i'm on notice. everyone from maine to san diego is on in. moody's investor services, the debt rating agency plans to review the nation's aaa bond rating and might downgrade it from stable to negative. standard & poors has the u.s. bond rating under review. let's talk about foreclosures for a second. realty track, the company that tracks the foreclosures, their numbers show foreclosures are down nearly 30% to compared to a year ago. that sounds like good news but it comes with a big fat asterisk. realty track says many are being delayed. many foreclosures that should happen this year will happen next year instead. nevada, arizona and cal lead the pack in foreclosures. the city of mumbai is on high alert right now after three separate explosions. they happened in a bustling part of the city during rush hour. 18 were killed, more than 100 hurt. authorities haven't figured out who's responsible yet and no terror group has claimed responsibility. >> every day, every hour but there was an attack in mumbai. >> this is the first big attack on mumbai since the terrorist siege nearly three years ago. new delhi and calcutta are also on alert this morning. gadhafi's forces are strong in the western part of the country. cnn's ben wedeman and his crew got caught in the cross fire, literally. they're okay but think about this if you think you're having a bad day. >> reporter: this is how our day started. ambushed by gadhafi loyalists. >> there's a lot of gunfire. it's continuing to come through. >> all right. he's okay as i said. ben and his crew are fine. a quick note about casey anthony. she could make big money from her story once she's released from jail on sunday. florida doesn't want jurors in future similar cases to profit. the state is planning a new law that will ban jurors from cashing in on their cases. it seemed public outrage has trumped common sense among some people. this is casey anthony, this casey anthony is getting phone calls and facebook messages telling him what a bad person is he. he's from philadelphia. looks nothing like the real casey anthony in florida. it's like people dialing 867-5309 thinking jenny would answer. the markets are worse off on the news of the potential downgrade from moody's and the difficulties with the debt talks but not so. >> it is affecting markets in asia. asian markets have had a down day today. the main concern is over moody's warning that could downgrade its rating as a political impasse over raising the debt ceiling drags on and dealing for doing so looms. >> the general global reaction to this, some sense of how it's going out there? here i talk to people in the u.s. who say they're betting there will be a deal on the u.s. debt ceiling. what's the international reaction? >> well, outside of asia, there's more negative reaction. for example, in europe there was a downward start to the day. that has been going on. debt troubles are on both sides of the atlantic in the u.s., stalled talks to raise the country's debt limit and that moody's warning in europe, italy, italy is planning a $7 billion bond sale on thursday as lawmakers are scrambling to pass an austerity package. the price for gold, the traditional safe haven has reached an all-time high. ali? >> a lot of people are looking to what they do in case things get worse. christy, a little bit of good news this morning. there's a lot of buzz about scientists maybe having found a new tool in the fight against malaria in a very strange place. >> yes, i love these science store prescriptions researchers have a new tool in the fight against malaria, smelly socks. i'm not making this up. this is according to "popular science" magazine. experiments are currently under way to see if dirty socks can act as poison traps for mosquitos. they carry malaria. it sounds ridiculous but if it works ali it's not something to turn your nose up at. malaria kills up to 900,000 people per year. ali? >> it's devastating to economies around the world, because of all the people that it kills. it's a money story, a health story. who knew smelly socks could be such a good thing. i'll catch up with you later on. let's go to rob marciano live from atlanta. rob we're not going to talk about your smelly clothes, because you stood outside all day yesterday. you're in today. let's talk about major delays. >> most of these will be this afternoon, there will be spots where thunderstorms are focused. i think minneapolis and atlanta, two major hubs there. especially for delta are going to see afternoon delays. this is the time of year that if you have the choice, especially down south to plan your travel in the morning, please do so. miami, same deal, although to a lesser extent, as a result, a cool and gentle rain out there in seattle. some of that trying to get down to the south. the bulk of the hot, humid stuff has shifted to the west. still, heat indices will be up and over 100 degrees in places like oklahoma, arkansas, mississippi and louisiana. a little cooler here. i know it's cooler up in new york. summer not over, as you know. >> you gave good advice. if it's this hot, stay hydrated. i want to the share this with you. beer drinkers in minnesota are stocking up on miller lite. the beer will not be available in coming dres. they didn't get a registration renewed before the government shutdown. the government is under a shutdown for budgetary reasons. it has to pull 40 brands of beers from restaurants, bars and liquor stores in the state. that's another casualty of the shutdown that left 22 state employees sidelined from work. stock up on your beer if you're in the minnesota area, rob. >> we've covered a lot of catastrophes this year but that's a state of emergency. that. >> say big one. >> rob, i'll catch up with you later on in the show. an invite to a marine corps ball is suddenly the hottest ticket around. we have the clip for you after the break. it's our quote, can you guess which newsmaker said this about the debt ceiling talk, quote, dealing with them the last couple of months has been like dealing with jell-o, some days it's firmer than others, sometimes it's like they left it out overnight. the answer after the short break. uh, forgot jack's cereal. 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[ male announcer ] jetta tdi clean diesel. the turbo that gets 42 miles per gallon. ♪ the authentic, the rare, the hard to define. to those always searching for what's pure and what's real from we who believe we know just how you feel. haagen-dazs. all right. just trying to check on what's going on right now. 12 minutes after the hour. before the break we asked you what newsmaker said this about the debt ceiling talks. dealing with them the last couple of months has been like dealing with jell-o. some days it's firmer than others, some days it's like they've left it out overnight. that's from house speaker john boehner. it's not just politicians talking about the country's debt crisis. cheedian i comedians are having a field day about it. >> in response, seniors are like did you say "b" 4? "b" 4, bingo, i have beginniing >> i lean toward harder news like duck fashion shows. folks, the president said to the republican leadership, you guys we've got to raise the debt ceiling and the republicans said, no way, nerd. and the president said you guys this isn't funny, cut it out. if we don't raise it, the economy will melt down and we could get in trouble. the republicans said if you're that worried about it poindexter, we might vote to raise it but first we have to make massive budget cuts. the president said, okay, thanks, guys. >> all right. time now for your political ticker with tim farley host of morning briefing. colbert doesn't have it all that wrong, tim. last night eric cantor says something to the president about an extension and from what he told us, the president looks at him and says, eric, don't call my bluff. i'm taking this to the american people. not a great way to start day five of the negotiations. >> no. you talked about john boehner and dealing with the opposition is like dealing with jell-o. this is a food fight now evidently that's taking place. democrats say the president held his ground and was being passionate and republicans are saying eric cantor forced the president to storm out of the meeting. this deadline is not going away. ben bernanke, another day of testimony today, second warning shots yesterday. we saw what moody's did. there are a lot of people watching with trepidation right now in the white house. >> three things that should be worrying our viewers this morning. moody's talking about a debt downgrade. bernanke warning about the economy and you've got the stuff on the right of your screen not happening in washington. all of that should be more of a fear than it seems to be on capital markets, tim. do we get the sense that people think they're going to work this out? >> i think that's part of it. i think it's also partly that some people don't necessarily understand. this is not to cast aversions on individuals. it's just when you're covering this every day, it's easy to see some of the consequences. it's making it tougher for people to follow this story sometimes if you're trying to keep your job or find a job. >> it has incremental moves which makes it hard to get your head around it. >> exactly. >> have a good show this morning. >> thank you. newark mayor corey booker just across the river, he's a democrat, he predicts what this debate could cost you if a deal isn't reached. >> what's going to happen, it's going to send a shock wave through our economy, drive interest rates up. it's going to cripple businesses all around our country. so might prayer is that we put principle and purpose over politics. >> and former new york city mayor rudy giuliani is still flirting with a white house run. today he visits new hampshire which is scheduled to host the first presidential primary next february. he he'll headline a fund-raiser and have some lunch with gop activists. mitt romney is already scheduled to be in new hampshire today. her friends with benefits co-star justin timberlake may have land a date, too. marine corporal desantis is try ing to get a date. >> so justin, you want to call out my girl mila? i'm going to call you out and ask you to come to the marine corps ball with me on november 12th in washington, d.c. and if you can't go, all i have to say is cry me a river. >> no definitive answer by either star. justin, just say yes. corporal desantis is a black belt. if you don't say yes, she can kill you with her pinky. first, as you know when you watch the show every morning, there's a day for almost everything. today it is national nude day. celebrated by the -- please, i don't want to get you arrested. let me tell you about a very important phone call i made. when i got my medicare card, i realized i needed an aarp... medicare supplement insurance card, too. medicare is one of the great things about turning 65, but it doesn't cover everything. in fact, it only pays up to 80% of your part b expenses. if you're already on or eligible for medicare, call now to find out how an aarp... medicare supplement insurance plan, insured by unitedhealthcare insurance company, helps cover some of the medical expenses... not paid by medicare part b. that can save you from paying up to thousands of dollars... out of your own pocket. these are the only medicare supplement insurance plans... exclusively endorsed by aarp. when you call now, you'll get this free information kit... with all you need to enroll. put their trust in aarp medicare supplement insurance. plus you'll get this free guide to understanding medicare. the prices are competitive. i can keep my own doctor. and i don't need a referral to see a specialist. call now to get a free information kit. plus you'll get this free guide to understanding medicare. and the advantages don't end there. choose from a range of medicare supplement plans... that are all competitively priced. we have a plan for almost everyone, so you can find one that fits your needs and budget. with all medicare supplement plans, there are virtually no claim forms to fill out. plus you can keep your own doctor and hospital that accepts medicare. and best of all, these plans are... the only medicare supplement plans endorsed by aarp. when they told me these plans were endorsed by aarp... i had only one thing to say... sign me up. call the number on your screen now... and find out about an aarp medicare supplement insurance plan. you'll get this free information kit... and guide to understanding medicare, to help you choose the plan that's right for you. as with all medicare supplement plans, you can keep your own doctor and hospital that accepts medicare, get help paying for what medicare doesn't... and save up to thousands of dollars. call this toll-free number now. 20 minutes after the hour. here are three things you need to put on your radar today. 8:40 a.m. eastern, primetime emmy award nominations will be announced live from hollywood. back on the east coast at 10:00 a.m. eastern, federal reserve chairman ben bernanke picks up from where he left off yesterday, delivering his semiannual report on monetary policy. and then at 4:15 p.m. eastern, president obama gets back in the room with lawmakers from both sides of the aisle for those continuing debt ceiling negotiations that ended badly last night. we begin with breaking news. british police have arrested a man in connection with that scandalous phone hacking case. they haven't named the man or divulged the charges. he's 60 years old and was arrested in london. that scandal has brown down rupert murdoch's "news of the world" up in and affected the rest of his media empire. let's go around the world right now. zain vergee live in london, picking up on the hacking story. the temperature is rising in london about this and here in the united states on news that 9/11 victims' phones may have been tapped, many of them, zain. >> yes, i had, ali. the pressure is rising on newscorp and rupert murdoch. more powerful u.s. senators have gotten together and are calling for an investigation under the allegations that newscorp and news of the world journalists may have hacked into 9/11 victims. what they're basically saying, this is illegal if it's happened, criminal and that there could be serious consequences. the attorney general, eric holder is being asked to look into this. this violates the foreign corrupt practices act. the temperature is turning up on rupert murdoch and they're calling for an investigation into his u.s. companies, too. >> zain, we're beginning to continue to watch this, and i know you are. if at some point in the next few days you can tear yourself away from world cup women's soccer, u.s. coming out on top yesterday, facing japan on sunday now. in the finals. u.s. defeating france, 3-1, in the semifinal yesterday. it was a nail biter. are you going to dresden for the final match? >> i am. the u.s. team, it will be amazing to see them. they have a magic, ali. they are in top form. they have team spirit, the never say die attitude. they're fit and very, very talented. it's going to be exciting. the other thing, japan, it's a big deal, too. because one of the stories that people are talking about is that the coach shows the japanese team pictures of the tsunami and victims before they play matches and it motivates them to go play. i know you're a football fan or is it socker? the rest of the world has to call it soccer. >> given there's nfl lockout, it's unclear whether we'll have anything to call football in the united states. it could be that soccer becomes our football very shortly. >> yes. >> as you know, americans claim they don't really love the sport except when a game is on, when a soccer match is on it's all everybody's watching. >> yeah, right. you know, the u.s. women's team is doing really well. i mean, we could be reliving 1999 when they won the women's world cup. ali, i learned a really cool fact right now that football used to be called pig's bladder. did you know this. >> this is real football, american football. >> soccer. soccer. and they used to blow up a pig's bladder and tie it on two ends after blowing it up and kick it around. obviously we now have the actual football. >> always learn something, zain. i taught you on the show that it's national nude day. we've exchanged valuable information, both of us. i'll talk to you in a little while. >> enjoy skinny dipping. >> exactly, yeah. all right. a guy who claims he used to be an islamic terrorist is earning big money. however, his story may not add up. he earned $5,000 for this lecture funded by taxpayers. he says he used to be a bomb-throwing terrorist. now he's a christian convert with a blunt message. he says terrorism and islam are inseparable. >> know your enemy. know your enemy. all islamist organizations in america should be the number one enemy. all of them. >> here's the problem. cnn reporters in the united states, israel and the palestinian territories found no evidence whatsoever that he was ever a terrorist. that's not stopping him from raking in the cash. his speeches, books and video sales have earned him over $500,000 in 2009, according to tax records. british scientists are working on a bomb-proof bag meant to protect planes from explosions. it's flexible, light weight a a a blast. first, our businessman's special nugget of the day. pc, we're talking about personal computing. i'll tell you what i have to say about it after the break, 26 minutes after the hour. 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