out. >> now, despite all that, i'm told by my sources there's not a lot of optimism, that this particular negotiating process here at the white house is going to actually end up leading to the real deal, and a lot of effort and attention is now turning to a different process that's happening in the u.s. senate and another alternate deal that's being worked out between the two senate leaders that could instead end up raising the debt ceiling. >> an optimistic late night view from jessica yellin. today president obama will update the nation with a press conference at 11:00 a.m. eastern time, cnn will carry that live. let's talk about the phone hacking scandal in the united kingdom. it might not be limited to that side of the atlantic. the fbi is now investigating murdoch's news corporation. there's an accusation that his employees may have tried to hack into the phone conversations and voicemails of 9/11 victims and their families. rudy giuliani was mayor of new york during that time. he and murdoch have been friends for a long time, so what does giuliani make of all this? >> intercepting communications like that is a crime, it has to be investigated. i think what there shouldn't be and we've learned recently with a bunch of criminal cases of different kinds, don't rush to judgment, give people a presumption of innocence. i think that just how high up it goes is a big question and it's one we shouldn't be jumping to conclusions about. >> speaking of hacking, somebody absolutely plundered the pentagon in the spring, it was one of the worst breaches ever of security. listen to these details. >> indeed, in a single intrusion this past march, 24,000 files were taken. >> it was done, we think, by a foreign intelligence service, in other words, a nation state was behind it. >> now, those files belonged to a u.s. defense contractor, that's 24,000 good reasons why the defense department is looking at tightening up its cyber security. casey anthony leaves jail in two more days, just in time to face a defamation lawsuit. anthony told police that she had a nanny back when the search was getting under way. the woman's lawyers want anthony to sit down for a deposition tuesday. they think it's the only chance they'll get before she bolts orlando and maybe florida. anthony's lawyers say no way, that is too soon after a gruelling trial and she'll plead the fifth if asked questions. governor jerry brown has signed a bill in california that requires public schools to teach students about the contributions of lesbian, gay, bisexual and transgender americans. state senator mark leno is the one who put the bill together. >> the fact is, we have been censoring a very important chapter of civil rights history about a community that has been traditionally demonized and discriminated against. >> the law takes effect in january, but it takes time to update those textbooks, so that probably won't happen until 2015. and if you're going to the airport later on, you're already dreading the tsa tango, relief might be on the way for you. the tsa will test a trusted traveller program. it will let certain frequent flyers at certain airports skip the full body imaging and basically get them through the security faster. the only catch is that they will have to give the tsa extra information about themselves ahead of time. this trial run begins this fall in atlanta, detroit, dallas and miami on certain delta and american airlines flights. right now, the nikkei is up, but all others, the hang seng, the dax, the ftse 100 all lower at this hour. let's go to hong kong, asian and european stocks seem to be reacting to a combination of economic news, including what's happening here in the united states. >> let's fine out why. as you said, european markets are slitding. investors are worried about debt. they are worried about how the u.s. debt talks are in dead lock and stan doord and poo's threatening to cut bond rates. and banks finding out if they're tough enough to take another shock. the stress test results are due out mid-day in new york, as many as one bank in nine is expected to fail this test. so there is a lot to unnerve global investors on this date. >> let's talk about google. i joined google plus the other day. i didn't have an invitation, i said it on this show. one of our viewers sent me an invitation and i joined. you know how many google plus friends i have? >> you have one, because i just added you into my circle. >> oh, mied gy god, i had nobod my circle. thank you. i'm one of the 10 million-plus people on google plus. what an all-star second quarter that company has had. >> you said it. i mean, google beat the street, up 36% from a year ago. a profit rose as more people are clicking on google's ads. i never click on them, but people do. it's been a busy quarter as well, it spent $900 million on infrastructure, launched its laptop and google offers, google's answer to groupon. as for its answer to facebook, google plus has gone to 10 million users in two weeks. it's not even open to the masses yet. it's kind of fun. >> now that i have one friend, i probably have a circle. so i bless you for that. great to see you, i will talk to you later on tv and on google plus. let's go to rob marciano live in atlanta. he's not in my circle of trusted friends or whatever they call it, but the day is early yet. good morning. what have we got? >> well, for one thing, you'll always be in my inner circle, regardless of whether it's google or facebook or whatever. a number of storms down across the southeast, in through and building also parts of the plains. if you're traveling to those areas, there will be some issues. but another gorgeous day in the northeast, just beautiful stuff. atlanta, minneapolis, will probably see thunderstorms this afternoon, and high temperatures will be decent, 85 in new york city and 93 degrees expected in memphis, but the heat's going to be building, and we'll see a heat wave, you know, of pretty decent proportions over the weekend as far north as the canadian border. let's go to ukraine zoo where a two-headed snake seems to be the highlight of this thing. if you can imagine, two heads on one snake body. >> oh! >> now, when one of the heads gets hungry, they sometimes fight over food. but when one head gets the food, the food goes into the same stomach. >> that's a good point. >> the other head says, i'm full, but apparently they have quite an interesting. >> i like the experience of eating. i like it to go through my mouth. that's interesting. it's kind of gross for the morning, i have to tell you, rob. that's kind of -- >> we've shown worse stuff than that. at least we haven't shown them eating rats. >> we'll save that for the next time we talk. we'll check in with rob. big breaking news right now, the chief executive of the news of the world, of the news corporation newspapers in news international is the name of the company, rebekah brooks has resigned. this is a message from rebeka brooks, which we're working to confirm, the ceo of news international has said she has resigned because she feels a deep sense of responsibility for the people we have hurt, that's her quote. that's rebekah brooks. she wants to reiterate, she says, how sorry i am for what we know to have taken place. she is resigning as the ceo of news international, which is the parent company of the news corporation newspapers. she's been there for 22 years. she's been under a great deal of pressure. she was one of the three people who has been subpoenaed to british parliament to testify. she is the one, she's a british citizen, so she is compelled to go, although we do have news this morning that both rupert murdoch and his son, while rupert murdoch is not a british citizen, will in fact testify before parliament. there she is, rebekah brooks, being supported by rupert murdoch, she has offered her resignation and has left the company. can you guess which newsmaker made this statement about media mogul rupert murdoch and the news of the world's alleged hacking of 9/11 victims here in the united states? quote, he is a very honorable, honest man. this can't be something that he would have had anything to do with. we'll tell you who said it right after this quick break. nine minutes after the hour. 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[ male announcer ] flick, stack, and move between active apps seamlessly. only on the new hp touchpad with webos. 12 minutes after the hour. before the break, we asked you if you could guess who called rupert murdoch an honorable and honest man. here is former new york mayor rudy giuliani. >> are you confident enough in him? >> oh, gosh yeah. he's a very honorable, honest man. this can't be something he would have anything to do with. the fact is that they're doing it is a bad thing, it shouldn't be done. i don't know what it is in england but in the united states it's a felony, and i've prosecuted people for that. >> murdoch and giuliani are long-time friends, by the way. murdoch attended giuliani's wedding in 2003, he endorsed him in the 1993 mayoral race, and according to filings, a law and lobbying firm received $100,000 in lobbying fees from news corporation in 2005. a looming debt ceiling deadline is a very serious matter, so serious that comedians can't get enough of it. >> the good news for president obama in the last three months his re-election campaign raised $86 million. the bad news, if he gets re-elected he's got to come up with $14 trillion more. the tsa is now charging extra for happy endings. that's how bad it is. today, warren buffett was turned down for a discover card. that's how bad. they're bringing in unlicensed contractors to raise the debt ceiling. that's how bad. >> america will be plunged into despair. governed by roaming bands of outlaw vigil antes. they've been in nonstop meetings, how are those going? >> temperatures began rising after house majority leader eric cantor suggested the two sides were too far apart to come to a deal. that's when the president got very agitated. >> he said, don't call my bluff, eric. >> boy, the name eric really takes the urgency and steam out of an argument, doesn't it? don't call my bluff, eric. really. it's a name only rivaled by craig and susan. i will destroy you! craig. you can't handle the truth! susan. >> time now for your political ticker with tim, the host of morning briefing on sirius xm, live from washington. good morning, tim farley. >> good morning. sheldon. that's an old billy crystal line, i couldn't avoid it. the name game, is that what they're calling names now? actually, it seems there may be some idea weather they're going to be doing -- i know the president is speaking today. there is no meeting of the octomob, and nancy pelosi said yesterday let's not go beyond the pale. we don't want to go to camp david. there may be a way out of this and we'll be seeing this at some point out of the day. we're looking at this back up option which may be the mitch mcconnell option, we'll have to see how it turns out. i don't think anyone really knows, by the way. >> he's there in the middle of the octomob, i will always remember you started that. the president is holding a press conference at 11:00 a.m. eastern which we'll cover. you went to the baseball game last night, which i didn't think was -- i wouldn't have advised anybody being involved in a competition between democrats and republicans that involved bats and balls but how did it go? >> it was actually a nonviolent event. the freshman congress highly touted coming out of the new orleans district pitched an amazing game. it was a no-hitter until the very end. he struck out 13 republicans and just a fantastic night on the mound for him, 8-2, the final score. and it was a chance to sort of escape what's happening, a couple babe ruth shots of the building. but no humidity. kind of strange for july. and a lot of people raising money for the boys and girls club which was really the purpose of the game. >> good. i'm glad some good activity is going on in washington, and take the no humidity when you can get it. it's going to be a hot summer for you guys. tim, good to see you as always. tim farley. baseball, apple pie, "playboy" love it or hate it, it's a slice of americana. who better to sound off on american business than hugh hefner? he tells piers morgan we have to stay global to stay competitive. >> i think it's the wrong attitude. i think the reality is we live in a very small world and i think that we need to deal with reality. i think there are a certain amount of delusion going on here in terms of the notion, we're no longer in first place. and we're falling further behind if we don't start taking care of real business. >> by the way, "playboy" publishes 23 international editions. speaking of international stuff, big breaking news this morning. we have news that reck beck beks has resigned, she has quit news international under the cloud of accusation that she's been under. she is one of three senior executives who have been called to testify before the british parliament. she is a british citizen and had agreed to testify, but she has now resigned from the company. we'll have more on that with zain verjee who's standing by in london after this break. but if you're putting cream in your coffee or on your cheese or your putting cheese on your egg sandwich this morning, any of that stuff, you have a cow to thank. so pony up. it is cow appreciation day around america. 19 minutes after the hour. [ male announcer ] to the seekers of things which are one of a kind. 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. but not your wrinkles. new neutrogena® rapid wrinkle repair. its retinol formula smoothes wrinkles in just one week. why wait if you don't have to. neutrogena®. look at beautiful new york city this morning on july 15th, 2011. that's the view right outside our window. that's central park, by the way. that's central park and the upper east side just in the distance. it is 21 minutes after the hour. here are three things for your radar today, what exactly would happen if there is no debt deal? at 10:15 this morning, some members of congress will push forward on the so-called prioritized spending act. it would prevent defaults, pay our troops and keep promises to seniors. at 11:00, the president has a news conference, and you've been hearing about it all week, carmageddon is set to happen at 10:00 p.m. eastern, 7:00 p.m. pacific. the 405 in l.a. is being shut down for a weekend reconstruction. stay home if you're in l.a. or get out of town. let's go around the world with zain verjee, breaking news right now in the hacking scandal, a high profile resignation at news corporation. what do we know? >> reck beck ka brooks, chief executive of news international has decided to resign. she is stepping down. she has been over the past few days under so much pressure to step down. and finally, it's happening. take a look at the statement that she said. she said as chief executive i feel a sense of responsibility for people that have been hurt, and then she also went on to say that i'm becoming the focal point of debate, and it's detracting from trying to fix the problems of the past. rupert murdoch had really been resisting calls for her to resign. rebecca brooks was the former editor in -- of news of the world at the center of the phone hacking scandal that is not only rocking rupert murdoch's media empire and outraging this country, but in the united states, too. there are questions and now criminal investigation that the fbi is going to launch into the phone hacking scandal to see whether victims of 9/11 and their families were hacked into. this is a very significant, very dramatic development. >> now, zain, what this doesn't do is get her out from under the investigation. and just because you understand how it, would works here in the united states when they subpoena people, it's similar in great britain. parliament has issued the equivalent of subpoena to her, and to rupert murdoch and his son. they've all agreed they're going to testify. what's the implication of that? >> well, she's a british citizen, so she has to get there, go there, and she has to testify. she's said she would appear in front of that parliamentary committee. she's going to answer tough questions, what did she know, when did she know it and does she personally bear any responsibility for what happened. she was editor at the time when a teenager was new murdered ands of the world was deleting voicemail messages that for a brief time allowed her parents to believe she was alive. that's really what set this whole thing off. this woman was editor at the time. she's got tough questions to answer, but this whole scandal is by no means over, both in this country and in the united states. it has rocked the relationship between the police, the media, the politicians, and it's uncovering some pretty dirty, uncomfortable messy stuff that's hanging out to dry. >> as you said, it is spreading here to the united states into an fbi investigation, into news corporation, and whether or not it hacked the e-mails of 9/11 victims and their families. zain, you'll stay on top of this, we'll come right back to you. also some breaking news in this news corporation, has now announced rebekah brooks' replacement as the head of news international, tom mockridge is now going to join, he's going to take over the role of chief executive officer. he was the chief executive of sky italia, also part of the news corporation empire. he was also part of the european television, of news corporation, so he's part of the company. he's now being elevated to the ceo role as rebekah brooks resigns. news corporation stock has lost over 10% in the last five trading days. i should tell you the stock is trading lower in futures trading now. we'll keep an eye on it. first today in today's businessman special, we're going to get you small business owners out there and want to be owners paid. we'll get you the top ten microfinance companies coming up after this quick break, 25 minutes after the hour. hey, dad, you think i could drive? i'll tell you what -- when we stop to fill it up. ♪ ♪ [ son ] you realize, it's gotta run out sometime. 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[ female announcer ] nourish plus. only from aveeno. good morning, it is friday july 15th. this is your "am: wake-up call." president obama is giving congressional leaders until saturday to come to a debt agreement. saying it's decision time. he's giving us an update on where things stand, the president has scheduled a news conference for 11:00 a.m. eastern. time is running out, 19 days until we hit the debt ceiling, or we run out of the ability to pay our debt. if there's no deal soon and the country goes into default and armageddon ep sues, who gets the blame? this poll shows most voters would blame republicans. most believe obama's proposals will affect the middle class, not just the wealthy. take a look at this. these people made a mad dash to be the first in line to apply for section 8 housi