well, good morning to you. welcome to "mornings on 2." i'm dave clark. >> i'm tori campbell. it's thursday, july 22nd. we begin with developing news in fresno. we've just learned that six people are now confirmed dead following a sacramento-bound greyhound bus. it happened just after 2:00 this morning on northbound highway 99 just outside of downton fresno. california highway patrol officers say the bus driver swerved to avoid another crash. the six people who died were passengers on the bus. more people have been taken to hospital with injuries. greyhound says the bus left los angeles last night and was headed to its next stop in madera when the crash occurred.

35 passengers were on board. many say they were asleep and jolted awake. >> the gentleman asked me off the bus and i'm wondering if i'm gonna be okay, if i'm gonna die or what? >> right now, northbound lanes of highway 99 are closed while the investigation continues. this is a very busy thoroughfare. greyhound has set up a hotline for friends and family. just call 1-800-972-4583 for more information. officials at sfo are trying to reach the owners of seven cars that went up in flames there overnight. ktvu's claudine wong is at the long-term parking lot there where a -- where an arson investigation is still underway. >> reporter: good morning. the scene is in the process of

being cleared. but this investigation just getting underway. they are focused on this toyota siena. you can see how hot this fire burned. look at the front wheel. the tire just melted off. take a look on the inside of the vehicle and look near the dash. there's nothing left. the fire making its way through this car. it's just melting there. even the front air bags have melted. firefighters believe this car caught on fire first and spread to six other cars here in the long-term parking lot. at this point, no idea how this first started or if someone started or it accidentally started on its own. i want to bring in the airport spokesperson. i know you are trying to get ahold of the people here who own these vehicles. how concerning is this for you? people come here, they leave their cars, they expect them to be okay when they get back. >> we want to find out exactly what happened, we're working with the arson investigators and san mateo sheriff's office

in the investigation. this is gonna be very disappointing for a family coming back from a very pleasant vacation to find their car destroyed. that's not the image we want to have for the airport. >> reporter: nothing suspicious seen before that. but you are looking at surveillance cameras to see if that gives you any indication. but at this point, nothing to suggest this was something intentional? >> it's far too early. but it is suspicious. the car has been parked here. it's been a cool damp night. we have to figure out and why arson investigators are looking into what caused these cars to catch on fire. >> reporter: thank you for the update here at sfo's long-term parking lot. a lot of cars in here. still in the process of clearing the scene. the investigation just getting

underway. claudine wong, channel 2 news. >> we'll check back for an update, soon. a richmond intersection is closed at this hour following an overnight with water main break. kraig debro just spoke with neighbors and has new information about the extent of the damage to nearby homes. >> reporter: good morning, tori. the home right here, the garage door just went up. there is a private cleaning through taking pictures of the damage there. the homeowner actually lives inside a room behind that door. you can see there's some water there but it has receded mostly. look on the ground in front of the home. look at this mess that the water main kicked up. it looks like a grayish mixture here. it's kind of nasty. no visible sign of activity but indoors there's about 50 homes trying to live without water in their lives. a 6-inch water main broke around 4:00 a.m. this morning. this is video we shot after

east bay m.u.d. crews turned off the water. the line had to be reclosed again. east bay m.u.d. says the 6-inch main is 50 years old. crews say about 4200-gallons plus leaked out before they could shut it off. since this all happened in the middle of the night. residents found out about the main through their morning routines. morning break, plus the toilet. no water filled the tank back up. >> reporter: can you hold out for eight to 12 hours? >> yeah, because i keep water in my refrigerator in bottles. >> reporter: now, this is a pg&e crew member. that crew member came out to find and then mark where gas lines lay on the ground. they are trying to find a fix

in the line. the gaslines, there is a potential for the rupture of a gasline. when they do get out here, typically it takes out to 12 hours to fix something like this. crews are not out here. they are supposed to be out here, probably around 8:00 in the morning. once they get here, it could be around 8:00 at night when the line is fixed. that's how long it takes to fix one of these things. residents in 50 homes could be without water that long. kraig debro, ktvu channel 2 news. >> thank you, kraig. 7:07. well, you ac transit riders, you can expect more frustrating delays as a workers' sick-out goes into the fourth day. 250 drivers did not show up for work yesterday. muni says a newly-imposed contract has caused drastic delays and workers are call in sick for safety reasons.

the riders are caught in the middle of this. they say the buses are either late or don't show up at all. >> the bus that was supposed to show up at 1:45 -- 11:45 because they serve lunch at noon, it didn't show up. >> you missed your meal? >> oh, yeah. i went hungry today. >> i just think they are not using logic. why push us? >> a spokesperson for ac transit denies allegations that drivers are being placed on unfamiliar routes without any training. ated enof the month, a judge will rule on this contract. if it's thrown out, ac transit says $5 million in training will be lost and jobs will have to be cut. there will be a final vote by the b.a.r.t. board of directors for temporarily rolling back the fares. b.a.r.t. has a surplus of $4.5 million thanks to state funding that was restored. b.a.r.t. asked riders about how they

should spend the surplus money. many said instead of fair redictions. they want to see the money used to clean up b.a.r.t. trains, extend the service or put it away for a rainy day. we want to check in with sal. you are keeping an eye on an emergency water repair on lum -- lumbard. >> that's right. this is down to one lane. it's been there overnight. they were doing repairs and the repairs became more complicated. at one point, customers were without water. but it does look like they are getting ready to open it right now. they are putting their tools away. they've been out there a long time. it was a water valve they had to repair. down to one lane. it looks like they may be fixing up the cones any time now.

these are live pictures causing a traffic jam. let's take a look at the bay bridge. that traffic is backed up to about the middle of the parking lot. not a -- in fact -- not a big delay at the toll plaza. maybe five minutes. this morning's drive on 237 westbound that's going to be okay as you cross 880. 7:0. let's go to mark tamayo. >> hi there, sal. good morning. we're taking a live look in san francisco. once again we're talking about fog in san francisco and the bay area. today we'll begin the warming trend. san francisco is just a little bit warmer compared to the chilly 56. we'll stick with the theme of cool temperatures. temperatures warming up as we head into friday and saturday. current numbers across the area, santa rosa just updated 52. san francisco has warmed up 1 degree in the past hour. livermore, 56. san jose, in the mid-50s, at 55. if you are not a big fan of the

cool temperatures, this is the cause here. this is the area of low pressure up to the north. this will gradually move out. as a result, high pressure rebuilds. can you see the net result and as we move into the weekend we'll warm up 4 to 8 degrees warmer. that means fore80s out towards concord, livermore, antioch. we're thinking mid-80s. we still have the fog hugging the coastline. here is our forecast model, showing you the overcast this morning. 53 to 58. uponbly drizzle out there. into the afternoon hours by 3:00, plenty of sunshine inland but still some coastal fog. we could sill hold on to patchy fog into the afternoon hours. these numbers are up a little bit compared to yesterday.

the look ahead to your five-day forecast, you can see temperatures up a little bit into friday, into saturday. warmest locations inland on either side of 90 degrees. we'll things back off again. dave and tori. police are looking for two men who stole a lot of money from the california state fair. this caused a huge inconvenience for people trying to leave that fair last night. the efforts to plug up bp's broken oil well is just a couple of days from completion, they say. but right now, the work is at a standstill. we'll tell you why.

police hope this surveillance video will lead to answers into the shooting death of a virginia man in town for a job interview. this shows a man and a woman walking toward the scene where 45-year-old jinghong kang was shot and killed during a robbery. this happened sunday night, around 11:30 on webster street. police describe the man and woman as african-american, in their late teens or early 20s.

go to ktvu.com for more on this. crew members are preparing to evacuate because of an approaching storm. this has prompted bp to shut down work on a relief well. the tropical rain storm will not enter the gulf for at least a few more days. still to be decided whether the bad weather will require reopening the cap that's contained the oil for nearly a week. "the new york times" is reporting that workers on the drilling rig were concerned about the platform's equipment before it exploded and sank killing 1 1 workers. in the reports, the workers said the nine-year-old rig had never been in dray dock and the

well had not been fully ned since 2000, even though call guidelines call for it every three to five years. today, a federal judge in phoenix will hear arguments for and against arizona's new immigration law. just a week before this new law is set to take effect, the judge will consider a request by the justice department to block its enforcement. alison burns is live in our washington, d.c. bureau with that story. good morning, alison. >> reporter: good morning to you, dave. i've been reading through the complaint this morning in the united states versus arizona. the bottom line argument for the justice department is that arizona's law is unconstitutional and undermines federal authority. the arizona law makes illegal immigration a state crime and gives police authority to request a person's immigration status if they are detained for another crime and there's reasonable suspicion. today, the justice department and more than 100 civil rights group and individuals,

including the aclu, are challenging it in federal court. here's how one arizona sheriff is responding. >> the aclu? who are they? they are the ones suing me? why are they concerned? why don't they wait until i put them in before they talk about it? why are they going after me when nothing's happened yesterday. >> reporter: the law has sparked intense feelings across the country and an arizona boycott in san francisco. polls show most americans support it, saying the feds are not enforcing immigration laws. allison bus, kut -- alison burns, ktvu channel 2 news. 7:18. you could soon pay less at some stores if you pay cash. that's because of the new financial reform laws. amanda west runs a berkeley restaurant. she says it costs her more than diddle 200 a month to allow

customers to use debit and credit cards. >> if someone pays for a $75 cookie with their debit card, we might be charged up to 14, 20-cent for that transaction which we're not making money. we're losing money on that transaction today. >> and the law hey lous reasonable -- allows reasonable fees to use the credit card. coalition of banks and credit card companies are washing counsel consume -- are warning consumers will probably pay more when they use the credit cards. netflix announced earnings increased 34% which exceeded expect tases the that was -- expectation. that was not enough and their stock dropped 9% at the closing bell. analysts say there's concern

that customers are flocking to the cheaper subscriptions. ebay reported income of 12 million. the san jose-based company credits record high performance from pay pal. nearly 3 million new pay pal accounts were open in the fiscal quarter. 7:19. maybe it's not safe to go into the water right now. we will tell you where warning signs are been posted in the bay area and where a surfer had a real close call. plus -- if you're pregnant wait until you hear a new report about drinking that cup of coffee in the morning. westbound east shore freeway looking pretty good heading to the bay bridge which is getting more crowded. we'll tell you more about the morning commute straight ahead.

pregnant women are being given the okay now to drink their morning cup of coffee. a review of research by the american college of ob-gyns has found that moderate caffeine consumption probably won't increase the risk of a miscarriage or premature birth. until recently, studies have had conflicting findings on this but this review finds drinking one cup of coffee a day does not appear to cause any harmpolice have posted shar warning signs at the main beach at capitola. the signs went up after there

was reports of a great white spotted. there have been at least four sightings since last week. we spoke to one surfer who said he had a close encounter with a great white yesterday moving. >> as i'm paddling over, i see the tip of a fin break the surface and i see that triangular zigzag just ike you see on "the discovery channel." i looked over and i saw like a torpedo, like a gray torpedo silhouette in the water. >> the beach remains opened. but officials are warning enter at your own risk. marin county has had more shark attacks, with 11 since 1976. there have been nine on the

beaches of san mateo county, eight in sonoma county, six in santa cruz can county and four at san francisco's ocean beach, one fatal there. but this is all since 1926. 7:4. sal's watching the commute, especially our bridges, right in. >> it's getting busier at the bay bridge. westbound traffic is going to be backed up to about the middle of that parking lot. in fact, now a little bit more than that, backed up to the 880 overcrossing. we have a little more robust delay here. moving along to another live picture. let's take a look at 880 north and southbound. that traffic getting busier. northbound traffic does move okay up to the downtown oakland area. but 880 heading so the south bay, an accident -- to the south bay, an accident on stevenson. traffic has been moved out of the lanes but traffic is still pretty slow and southbound 880 at hayward, there is another crash there. 880 is not in good shape.

7:25. here's mark. >> good morning of we're starting off with the this morning. this has all of the numbers from yesterday. yesterday one of the coolest days of the week. today we'll begin to change things up a little bit. you can see up toward the oakland area. right now we do have mostly cloudy skies. in fact, pretty much the same observation across the entire region. as far as the spot forecast toward mountain view, we had the clouds at least in the short term. as we head into the afternoon by 12:00, partly cloudy. a little bit warmer for today. for this morning, mostly cloudy and cool, 53 to 58. you can see the forecast model by 3:00 pulls out closer to the -- pulls out the fog bank closer to the coastline. 59 to 86 degrees later on today. these numbers, up a few degrees over yesterday's highs, especially out towards fairfield concord and antioch. san jose tops out at 76. your five-day forecast,

temperatures up a little bit for your friday. by saturday, warmest locations inland approaching 90 degrees. dave and tori in. >> thank you, mark. we're following tragic overnight news from a central valley freeway. >> i was just wonder if i was okay. we'll hear from passengers who witnessed that deadly bus crash in san francisco. >> reporter: good morning. i'm jade hernandez. we have new information from the santa clara police department this morning about a rash of burglaries. find out what they are warning residents about -- straight ahead. and why next year's season opener for the san francisco giants could be unlike any other.

welcome back. 7:30. we're still following developing news coming from fresno. that is where six people have just been killed in a crash involving a sacramento greyhound bus that happened early this morning. look at these pictures. this happened about five hours ago on northbound highway 99. greyhound says the bus left los angeles last night. it was headed to its next stop in ma tetra. the chp says the bus was just a

mess. >> you have the greyhound bus -- you've seen the pictures, it hit the eucalyptus tree and really just mangled. >> the greyhound spokesperson said there were 35 people on bus. six of the people killed were passengers. more are being treated at the hospital for their injuries. police are looking for suspects in a overnight shooting. witnesses reported hearing at least four shots. police found the male victim lying on the street with a gunshot wound to the head. he died at the scene. it's still not clear what led up to the shooting and police have not released the name of the victim. investigators are working to determine what sparked a fire that destroyed seven cars at sfo overnight. ktvu's claudine wong is at the long-term parking lot where crews are still removing the

vehicles. >> reporter: the cause of this fire is still a mystery. we have been doing some investigation of our own and have found a little bit about the cars involved. the one that's already on the tow truck right now, that's a toyota siena. that's where firefighters believe this fire actually started. we have learned that that siena is actually leased to a gentleman who we believe works for a capital firm out of menlo park. we're looking into the car that was parked right in front of it. we can tell you that this infiniti as well over here that they are about to tow away was actually owned by a gentleman. we're trying to figure out if he lives locally as well. these are three of seven cars involved in this early-morning fire. it happened right here in sfo's long-term parking. the parking attendant spotted the flames about 12:30 this morning. firefighters got out here, got it out pretty quickly but the damage was already done.

certainly this is a big concern for the airport. >> this is very disappointed that something like this would happen. that's what we want to find out what happened working with the arson investigators and the sheriff's office through the investigation, it's gonna be very disappointing for a family coming home from, home from, a pleasant vacation and they find their cars destroyed. >> we don't know if the police have been able to contact the owners of the car. they may be out of town and may be more difficult to reach. we do know that the sheriff's department is leading this investigation and they will be taking the toyota siena, where the fire started, to a secure location so they can conduct a full investigation to try to determine how this started. obviously, there are concerns because, you know, you got a parked car. that's cool on a damp night, overnight. those don't usually catch on fire. at this point, they are gonna hope surveillance cameras around the area may provide

more information. but the investigation continues. live here at sfo, claudine wong, ktvu channel 2 news. >> thank you, claudine. 7:33. the police just released new information about a string of early-morning burglaries in santa clara. let's go to jade hernandez. she's at right one of the -- at one of the crime scenes. jade? >> reporter: dave, this apartment complex behind me is where two of the burglaries took play. the santa clara police department was very helpful last night. they want to send out a message to the residents in the city -- lock up your place before you go to bed. a burglar is on the loose. in the last ten days, six residents have been hit. the strangest similarity, the residents had been home asleep at the time of the burglaries. no one was home at the time, fortunately. the burglaries are all spread out in the city. the burglars are sneaking in

and carrying out easy-to-carry electronics, such as laptops, gaming systems and wallets. >> like any other community in the bay area, crimes do occur. you have to be aware of your surroundings and you have to be conscious at night that you should lock your doors and lock your windows. >> reporter: we're told a woman did wake up in one of though burglary -- one of these burglaries. police are warning anyone to report suspicious activity in their neighborhood. reporting live in santa clara, jade hernandez, ktvu channel 2 news. >> thank you, jade. it is 7:35. hayward police are asking for your help in locating a 14-year- old autistic boy who walked away from his school. police say mathew bonds was excused from class yesterday to use the restroom. the teacher saw him leaving the school ground. police say he's run away from school several times in the last few years and has usually

been found riding b.a.r.t. trains. he's described as 5'7", weighing 180 pounds and having the expect capacity of a 6-year- old. anyone who sees bonds is urged to contact police. 7:35. the number of people filing for first-time unemployment benefits jumped by the largest margin since february. 464,000 people filed initial jobless claims last week. that's a jump of 37,000 which is nearly twice as much as economists had forecast. continuing claims fell by 223,000 to just under 4.5 million. a major silicon valley company plans to cut hundreds of jobs in the coming months. applied materials of santa clara says it is restructuring its solar panel business. they are gonna eliminate as many as 500 positions. some of those workers may transfer to other divisions within the company.

applied material says the job cuts will happen in november. this is part of their plan to make the energy and environmental unit more profitable by next year. president obama has his pen ready to sign a bill extending unemployment payments to 2.5 million americans whose benefits have expired. today, lawmakers in the house are expected to approve the bill and then send it to the senate, send is -- send it to the president for his significant. california's unemployment development department says 400,000 californians whose benefits ran out at the beginning of june will now receive retroactive payments next week. ziprealty.com will release their report where there's hot codes. that's where the homes sell for more than the asking prices. half of the list, right here. zip says the 94703 neighborhood

in berkeley that tops the list. there are two in oakland and san jose that has two neighborhoods in the top ten. plans to expand the san francisco museum of modern art have taken a big step forward. museum officials announce they've selected an architect our -- architecture firm to do the work. we're expecting to get the first glimpse of design plans for san francisco's museum next spring. 7:38. you may have to travel overseas to go to next year's giants' season opener. the team is considering starting its 2011 season in taiwan. under the plan, san francisco would play the diamondbacks. in late march, they would go to arizona for the last week of spring training before resuming

the regular season. this wouldn't be the first time a baseball team has done this. the oakland as opened their see on in japan against the red sox. we want to check in, once again, with sal castanedo. we're now reaching the peak of the commute. >> we are. it's getting busier on the east bay the if you are driving on 80 westbound or getting to the toll plaza, lu see some slow traffic. also on the east shore freeway, 80 westbound. it's backed up in richmond as you get to berkeley. it does get better. but by the time you reach the toll plaza you will see some stop and go traffic getting into san francisco. no major problems on the bridge. this morning on the commute, heading to the south bay, 880 southbound is very busy and 680 is taking a beating heading south. they are still clearing the accident. it's out of the lanes. but any are out of the shoulder and traffic is still slow. 7:39.

here's mark tamayo. >> hi there, sal. good morning to you. the tree getting a little bit of a workout here with a bit of a breeze out here, winds around 10 to 20 miles an hour. pretty muff the same start as yesterday at this time. the fog will continue to pull back to near the shoreline as we head into the afternoon hours. weather story, we have the clouds. we begin our warming trend and the warmest locations by saturday could be approaching 90 degrees out towards livermore not the case for today. by 8:00 only in the upper 50s, 12:00 o'clock lower 70s and on track to reach the lower 80s. concord 55. oakland, 57. san jose in the mid-50s. san francisco downtown, only 53 degrees. this weather system up to the north has been responsible for the cooloff the last couple of days. this will gradually scoot out to the north and the east. as a result we'll warm things up about 4 to 8 degrees from

yesterday's highs. that means more 80s inland for today. but we still are the fog hugging a good portion of the coastline. the beach not warming up too much. here is the plan throughout the day. you can see the clouds out there. by 12:00 clearing inland. still some patchy fog and then by 4:00 this afternoon. partly to mostly sunny. temperatures ranging from the upper 50s to the80s. also for san francisco into the afternoon hours. santa rosa, 78. antioch at 86 degrees. as you can see, mountain view at 73. los gatos tops out at 82. a look ahead at your five-day forecast, temperatures up for your friday. by saturday, warmest locations inland, on either side of 90 degrees. but the clouds will continue to be a factor, eventually pulling back to near the coastline. find out why californians might have to cut their water use in half. it's all because of what is not happening in the delta. find out what happened when

a giant whale leaped on to a yacht with two taylors on board.

check it out. good news on wall street right now. the dow up significantly, mainly because of another batch of strong earnings, specifically caterpillar, u.p.s. and at&t, all beating analysts' expectations, encouraging signs of europe that's offsetting disappointing news on home sales and a weak jobless report. so right now, the dow is

currently up 205. the nasdaq is up 57. s&p, up 25. it's 7:44. shirley sherrod said she is considering whether or not to accept a new job at the department of agriculture after being forced to resign earlier this week. sandra endo is in washington, d.c. request the latest on -- with the latest on this developing story. good morning, sandra. >> reporter: good morning. all of this could have been prevented if someone just listened to shirley sherrod, her story, her explanation, and listened to the videotape where her comments were recorded. well, now that everybody has heard exactly what's on the tape and her story, the tables have turned. the ball is now in sherrod's court. her former boss, tom vilsack, apologized to her wednesday for forcing her to resign earlier this week. then he offered her another job back at the usda. >> he told me he would send the

offer in writing. i haven't had a chance to see that. >> reporter: the forced resignation were about comments made taken out of context and construed as discriminatory towards whites. but when all of the facts came out, officials were red-faced about how wrong they were about sherrod. >> a disservice was wrong for which we apologize. >> reporter: secretary vilsack says it was his decision alone and not pressure from the white house how he dealt with sherrod. >> this was my decision and i made it in haste. >> reporter: the new position would put her in the department doing outreach. >> i'm not sure going back to the department is the thing to do. it was so easy for them to make a decision to throw me under the bridge. you know, without looking, i was asking them, please, look at the entirety of this.

no one was willing to do that. >> reporter: sherrod said she would like to talk to president obama about what happened to her. as for the conservative blogger who posted the videotape about her in the first place, she says she might file a lawsuit against him. back to you. >> thank you. 7:46. an investigation continues now into an deadly officer-involved shooting. it happened during a raid on a suspected pot growing operation. now, this happened yesterday morning in a remote area off mines road, right near the santa clara/alameda county line. deputies say when they approached the pot farm, they were approached by a man they believe was armed and opened fire on him. no one was hurt. the name of the man was not been released. deputies moved syka actor

to a jail in irvine, texas last night -- to irvin, texas last night. police found her and her daughter strangled inside an apartment on monday. they say the woman called 911, saying she first tried to poison her children because they were autistic and she wanted normal children. she said when they wouldn't drink the poison, she used a wire to choke them. a new ktvu field poll shows most californians support the death penalty. 70% of voters surveyed said the death penalty is an appropriate punishment for severe violent crimes. when given the choice of punishments for first-degree murder convictions, 42% said life in prison without parole and 41% chose the death penalty. 3% said it would depend on the circumstances. executions in california have been on hold since 2006 because of legal challenges to the lethal injection procedure. part of san jose will be

sprayed for mosquitoes tonight. this is part of the ongoing effort to prevent the spread of west nile virus to humans. the area to be sprayed is highway 17 and rincon and bud avenues. santa clara county vector control says mosquitoes foarea positive for the west nile virus. the fogging begins at 11:00 tonight. it will go on for several hours. water use in california might have to be cut in half to keep the sacramento delta healthy for the future. state water officials say 75% of the snowmelt and the rain should be flowing through the delta into the bay. but right now, only 50% of that water actually drains into the bay. the delta supplies much of california's drinking water and the new findings could affect water supplies here in the bay area and other parts of the state. 7:49. it was a whale of a surprise

for two south african sailing instructors lucky to be alive t was caught on camera that's now circulating on the internet. it shows a 40-ton whale breaching the water just outside of cape town bay. the mast was broken the fortunately, the sailors were not hurt. the whale swam off the deck and -- slid off the deck and swam away. >> what do you think they were saying? we can't say it. >> no. >> we can imagine. [ laughter ] up next we're gonna find out about a brief comeback involving an historic bar. but this one was just too good to be true. and we'll tell you about the three-year odyssey involving the unusual piece of san francisco history.

the missing boy has been found. this 14-year-old autistic boy. he's safe this morning. as we get more information, we'll bring it to you. 7:5 it 2. federal officials now extending a travel warning from mexico all because of continued drug-related violence. now, the warning is cautioning travelers that cities along the northern border are especially dangerous. they include juarez, tijuana and monterey. the warning also says major resort areas and other parts of mexico should be safe with common sense precautions. those drug wars have killed almost 23,000 people since 2006. most were involved in drug trafficking in that border

region. it's been three years since a mannequin arm just disappeared from san francisco's restaurant, lefty he duel's. this week it's been reunited with a plastic replica of the famous baseball player. it arrived in a package. it came with photos showing where the arm had been. apparently they took it on a three-year joyride in the midwest. >> he has a new family back there. went on sleigh rides, went to the state capitol. >> quite a trip. >> yeah, quite a trip. >> they held a reattachment ceremony any yesterday afternoon. the owner will ensure the arm for a million dollars now. let's check in with sal

castanedo. a cash on highway 4. >> that's right. highway 4 in bay point. there was an accident -- let me just update it here. it's highway 4 -- we have a map of it by the way. i want to show you the area. highway 4 as you come up towards the willow pass grade, you will see very heavy traffic. the accident at bailey road, multiple cars has it moved to the shoulder. at one point, the chp did stop all of the traffic temporarily to get those cars to the side. traffic is backed up all the way to hillcrest avenue. that's a pretty long delay. if you are driving to the livermore valley, westbound 580, pretty slow coming up through livermore. let's go to live pictures, westbound 24 traffic is looking okay, getting up to the tunnel. there are no major problems there, as you can see. this is a look at the toll plaza bay bridge, that's backed up to the 880 overcrossing. here's mark tamayo. >> good morning. we're still tracking quite a bit of overcast across the bay area. you can see the latest on the

updated satellite. looking out towards the oakland area everything we have mostly cloudy skies. still dense fog. possibly drizzle out there as well across parts of the bay area. as far a the satellite, you can see -- as far as the satellite, you can see we have the strong onshore flow. it's really cooled off over the bay area the past few days. that's been the one interesting development, as the intrusion of the fog -- is the intrusion of the fog. we'll back the maps out towards the bay. a solid bank of overcast for san francisco, earth and even up to the -- oakland and even up to the north bay. still reporting some patchy clouds out there. the overall weather story for today, in the 50s. around 53 to 58. in the afternoon hours, partly to mostly sunny. we are going to be a little bit warmer compared to yesterday. that will mean more 80s out

towards concord, fairfield and antioch. san jose upper 70s and morgan hill will top out around 85 degrees. temperatures up a little bit for friday and saturday, primarily away from the coastline. that means the inland neighborhoods by saturday, right around 90 degrees. kits 756 -- it's 7:56. we have new information on a tragic story from the central freeway overnight with a greyhound bus. and they are still working on the water main break in the east bay. these had are live picture. we'll show you damage to homes in the area. and that's trouble at the state fair. we'll update the manhunt for two armed robbery suspects.

welcome back to "mornings on 2." i'm tori campbell. >> i'm dave clark. it is thursday, july 22nd. we begin this 8:00 hour with developing news in the central valley. we just learned the driver of a greyhound bus that was involved in an early-morning crash is mock the six people confirmed dead. the sacramento-bound bus crashed just after 2:00 this morning on northbound highway 99, just outside of downtown fresno. california highway patrol officers say the bus was demolished after the driver swerved to avoid another crash. these are live pictures right now of the scene. you can see a lot of battered

cars there and crews are standing by. in addition to the six fatalities, chp officers say several people are injured. some of them critically. greyhound said the bus left los angeles last night and was headed to the next stop in madera. many passengers say they were asleep and were jolted awake. >> one of the gentleman helped me off the bus and i'm goffed wondering am i okay -- and i'm just wondering am i okay? am i gonna die or what? >> greyhound has set up a hotline for friended a family. you can call the number for any information if you are related or know someone on the bus. 8:01. was it arson or was it an accident? an investigation is underway at sfo right now after seven cars were destroyed in an overnight

fire. ktvu's claudine wong has been getting updates on the investigation all morning long and is back again with the very latest. good morning, claudine. >> reporter: yes. all but one of the seven cars has been taken away. you can see the volkswagen behind me. that's the last one. it will also be taken away in a short bit. then the cleanup and the investigation does continue. this fire was spotted just after 12:30 this morning by a parking lot attendant here at sfo's long-term parking lot. he called firefighters and the fire was out pretty quickly but the damage was done. six cars suffered significant damage. a 7th car was melted by the heat. police are still trying to trash down the owners of those vehicles. >> we are seeing if we can get ahold of someone. some of these people are on a trip some place. some are home. it will be a big disappointment for people when come back here

to find out their car is destroyed. >> reporter: what happens now? the cars are being towed to a different location. a toyota siena minivan is the focus of this investigation. still trying to track down more details about that. now, police are investigating. we're told they are looking at surveillance tape. nothing that focuses specifically on this one spot in the long-term parking lot. but certainly they will look at that tape and see if it shows any kind of suspicious activity in and around the fire. if you are headed to sfo and wondering whether the long-term parking loot is a place to -- is a safe place to park your car, the parking lot is fenced. it has the attendant but obviously we expect there will be meetings. they say if that changes, they will let us know.

claudine wong, ktvu channel 2 news. >> thank you, claudine. well, hayward police are telling ktvu they are heading now to oakland. that's where a missing 14-year- old autistic boy was found safe just a short time ago. there were concerns about this young man, matthew bonds and his safety after he vanished yesterday. but this morning, a station agent at the 12th street b.a.r.t. station recognized the teenager from fliers posted in the area. that agent was not able to stop the young man before he boarded a bus. however, b.a.r.t. police caught up with him in the lake merritt area. hayward police are still investigating where the young man was overnight. 8:04. the first repair crews just arrived on scene following an overnight water main break in richmond. kraig debro is there now with an update on the situation. good morning, kraig. >> reporter: good morning, tori. the estimate for the repair crews to get here was 8:00. they arrived about 7:56. right on time. this is just the first wave, if you will, if you want to call

one person a wave. but he's been out here sort of documenting the scene and also figuring out where to put the trucks when they get here. even after the trucks get hering it will take 8 to 12 hours to fix the problem. crews have turned here. they've turned off the water. the break was reported around 4:00 a.m. east bay m.u.d. crews arrived about 30 minutes later. for now, families are getting through their morning routines without water. >> i have a 1-year-old baby girl and a brother and sister- in-law visiting from north carolina with four kids. a lot of business needs to get done and we can't do it. >> reporter: now -- so this water main is about 6-inches. it's about 5 years old -- 56

years old. even if this is not your street, can you tell by what happened here that it's very possible anywhere throughout the system. east bay m.u.d. cannot begin to dig up the treat until they fix the line. there was a worker out here. she's marking and when they start the work, they will know to work around the gas lines. now, earlier -- like i said, pg&e was out here, eight to 12 hours, they said after they get out here depending upon what they found. you can tell this part of the street was already dug out. i you can see a little buckle in the street there. the water main is on that side of the street. the water main is definitely over on this side of the

street. kraig debro, ktvu channel 2 news. >> thank you, kraig for the update, up to the second. appreciate it. ac transit riders, can you expect more frustration as a worker sickout moves into its fourth day. now, 250 drivers did not show up for work yesterday. union officials say a newly- imposed contract has caused drastic changes to routes and schedules and workers are calling in sick for safety reasons. 230,000 ac transit workers were caught in the middle of this. they say buses are late or they don't show up at all. >> the bus that was supposed to show up at 11:45 becauseny serve lunch at noon, it never showed. >> reporter: you missed your meal? >> oh, yeah. i went hungry today. >> i'm not mad. i just think the riders are not using logic. why punish us? >> reporter: drivers are being placed on unfamiliar route,

it's reported, without any training. at the end of the month the judge will rule on the imposed contract. ac transit says $15 million in training and jobs will be cut. butte has a projected surplus of -- b.a.r.t. has a projected surplus of 4.5 million. b.a.r.t. asked riders how they should spend that money. money said instead of fair reductions. they want to see the money put away for a rainy day or for extensions. sal joins us with more from the traffic center. >> that's right, tori. right now, traffic in the approach to san francisco from the bay bridge, not doing that well. it's backed up for about a 10- minute delay. once you get on the bridge,

there's also more slowing. b.a.r.t. is on time into the city. no major problems. if you are driving on the east bay commutes, just driving there may be slow here and there. 880 is slow coming up to oakland. if you are driving to the south bay, 237, that's some slow traffic there. 101 is also slow trying to get into sunnyvale. the good news, the major accidents seem to be clearing now. it's just routine commute traffic. 8:09. let's go to mark. >> hi there, sal. we're still tracking the clouds. over san francisco bay, still mostly cloudy skies. san francisco's been very chilly only in the 50s yesterday. today, barely making it up in the low 60s. we're talking about a warming trend that will begin today. really kicks in by the weekend. this is not a major heatwave and it will primarily happen away from the coastline. of course, we have the clouds this morning and warring up beginning today friday, into saturday but then beyond

saturday they could cool down beginning by monday next week. here is the spot forecast for livermore in the upper 50s. by 12:00, 72. by 3:00, lower 80s. yesterday, livermore was only in the 70s. current numbers acro the bay area -- as could the bay area -- this area of low pressure has been cooling off a good portion of the state over the past few days t will gradually lift out and high pressure will rebuild. you can see the result today. temperatures are warming up about 4 to 8 degrees from yesterday's highs. that will translate to some mid- 80s inland. but we still have the patchy fog hugging a good portion of the bay area short line. as a result, the beach is not warming up too much. over the next few days, the beach is evenly in the lower

60s. this morning the clouds are a factor. possibly drizzle. 53 to 58 degrees. in the afternoon, we'll increase the sunshine but still some patchy coastal fog. forecast highs today, everybody up a few degrees from yesterday's highs. antioch at 86. fairfield at 83. san francisco lower 60s and san jose 79. morgan hill tops out right around 85 degrees. here is a look ahead to your five-day forecast, temperatures trending upward a little bit for friday. by saturday warmest locations right around 90 degrees. we begin to cool things off by next week especially for monday. dave. well, the earth shook this morning in a remote part of northern california. this was shortly before 5:00 a.m. a magnitude 3.8 quake was centered about 10 miles east- southeast of mammoth lakes or about 30 miles northwest of bishop. so far there's no word of any damage or injuries. 8:1. it was no fun at the state fair in sacramento. coming up find out how two

armed robberies made off with $100,000. also -- oakland is already making national news with its groundbreaking decision on marijuana and another big vote is set for tonight.

welcome back. two armed robbery suspects are

on the loose right now after stealing $100,000 from the california state fair m sacramento late last night. witness say the two dressed up as food service workers and targeted the offices of the catering companies as workers were wrapping up business for the night. reportedly, the men were armed during the attack. police searched cars leaving the car but those suspects got away. oakland are hoping this new surveillance video will lead to answers in the shooting death of a virginia man who happened to be in town for a job interview. investigators say -- look at this footage -- you see a man and a woman walking toward the scene where 45-year-old jinghong kang was shot and killed during a robbery. it happened sunday night about 11:30 on webster street. police describe them as african- american, in their late teens or early 20s. you can see the whole video at queue.com. look under the "right now"

section. 8:15. a tropical depression has formed in the bahamas. we've just gotten that confirmed from the national hurricane center. it's moving in the direction of that massive gulf oil spill. crew medicals on board dozens of ships in the gulf are preparing to evacuate and bp plans to shut down work on a relief well even though they are just days away from completion. still to be decided whether the bad weather will require reopening the cap that has contained the oil spill for nearly a week. and "the new york times" is reporting that workers on the "deepwater horizon" drilling rig were concerned about the condition of some of the platform's condition before it exploded an sank on april 20th -- and sank on april 20th, killing 11 workers. the commission on tabeed two reports from -- obtained reports from transocean. 8:16.

today, a federal judge will listen to argument for and against arizona's new immigration law. that law is set to take effect one week from today. alison burns is live in our washington, d.c. bureau with all of the detail. good morning, alison. >> reporter: good morning to you, dave. republicans here on capitol hill made a last-ditch attempt to try to get the justice department to stop going through with this lawsuit. but they failed in the 55-43 senate vote last night. the arizona law makes illegal immigration a state crime and gives police the authority to question a person's immigration status if they are detained for another crime and there's reasonable suspicion. today, the justice department and more than00 civil rights groups and individuals are alcoholling it in federal court, saying it's uncon city

frugal. republicans say -- unconstitutional. republicans say cities like san francisco should be challenged. >> it's interesting that the obama administration is suing arizona for enforcing federal law while ignoring many sanctuary cities that openly flaunt their resistance to federal law. >> reporter: now now, the feds want to block arizona's law before it takes effect next week. it's unclear if the judge is going to issue her ruling during today's hearings. reporting live from washington, d.c., alison burns, ktvu channel 2 news. >> okay, alison. tough. oakland ski counsel is due to discuss the tax on -- city council is due to discuss the tax on medical marijuana. this is all for a plan to license four-mile-per-hour cultivation facilities which would be a first in the whole

country. tonight, the city council will start discussions on taxing them and whether to increase the current tax on medical marijuana dispensaries. you could soon pay less at some stores if you use cash because of the new financial reform laws. amanda west runs a berkeley restaurant and says it costs her more than $200 a month to let passengers use debit and credit cards. >> if someone pays for a 75- cent cookie with their debit card, we might be charged up to 14, 20-cents for that transaction which means we're not making moi. we're losing money on that transaction today. >> the law allows individual retailers to set individual purchases for customers who use credit cards, something that's already common here in california. but they are likely to pay

higher fees when they use their credit and debit cards. still ahead, oakland police are investigating an overnight homicide. we'll bring you an update. and a san francisco nightclub gets the book thrown at it because of violence linked to the club. we will tell you what's next.

[trumpet playing "reveille" throughou reviving the economy means

reinventing the way we do business. here's to the owners showing us the way. [trumpet playing "reveille" fades to silence

welcome back. 8:22. we have an update for you right now. police have identified the victim of a deadly overnight shooting in oakland. now, this happened about 1:30 in the morning on harmon street near seminary. they say jonathan lee scott was shot in the dead. he died there at the scene. it's still not clear what led up to the shooting. there's no suspects in custody. the port of san francisco is canceling the lease of a waterfront nightclub after a deadly shooting last month. jelly's is located on pier 50 near at&t park. a few weeks ago, lee farley of richmond was shot and killed during an argument outside the club. it was the second fatal shooting there in two years. the port plans to terminate the club's lease on august 18th. a homeless man in placer county is behind bars after police say he broke into a bar that had been shut down, told

people he was the new owner and began selling drinks. 29-year-old travis faces charges of burglary and selling alcohol without a license. he put an open even in the window the -- sign in the window and spent the next few days selling drink to customers and made $1400 during his four- day stent. a mother and child were sen rated at a -- were separated at a light rail station earlier this month. the mother who happened to be on a vpa train said she realized her toddler daughter was not with her and alerted the train operate. through the surveillance cameras it allowed the cameras to spot the girl. they could see she was okay. the train was given permission to go back and the two were safely reunited. >> he very happy reunion the we want to check in with sal

castanedo, keeping a close eye on the bridges. rye now, traffic -- right now traffic crossing the spans. but there is a bay. on the step left you can see that -- top left you can see that. golden gate bridge looking good. the fog may be a problem for people coming in from marin on the walter grade. the richmond bridge traffic moves well after a brief delay at the richmond bridge toll plaza. 8:25. let's go to park. good morning to you. the overcast is over a good portion of the bay area. we have hearing skies out towards fairfield. that trend will continue. a live look outside looking across the bay. some areas of fog, a solid bank of clouds some drizzle showing up. taking a look at the map. we can show you this at live storm tracker 2. there we go with the fog bank. somebody accused me of drawing poor arrows this morning. i guess it's not that great. the overcast is pushing into

the area. livermore still reporting patchy fog. we'll move the maps up to the north. as can you see, right around concord and beyond this point out towards antioch and fairfield. the cloud bank, not as thick there. we have machines right around fairfield. here we go closer to the bay, still the overcast skies. there we go with the overcast conditions. the forecast in the short-term is this, clouds out there, temperatures in the 50s. into the afternoon hours, partly to mostly sunny. that cloud bank pushes back near the shoreline. today will be a little bit warmer than yesterday, especially inland. fairfield, 83 degrees. antioch will top out at 86. san francisco will make a run into the low 60s after yesterday just topping out 5 degrees. san jose, upper 70 the and morgan hill in the -- 70s and morgan hill in the 60s.

dave? >> thank you. well, the death toll this morning has climbed to six in that greyhound bus crash in fresno. we're gonna go live to the scene. you are looking at a live picture there of the wreckable. we have new information from the -- new information from the chp about what may have caused this overnight tragedy. >> reporter: and i'm jade hernandez. police have a warning for residents this morning. that story -- straight behind me.

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welcome back. 8:2. we're getting new details this morning about a string of early- morning burglaries happening in santa clara. ktvu's jade hernandez is at an apartment complex that was targeted by those criminals. good morning, jade. >> reporter: well, good morning, dave. we spoke to police this morning. we showed you an apartment complex -- complex about an hour ago where two of the six burglaries here took place. now we've moved to another location. this is where one other burglary took place in the last ten days. all very safe areas but the strangest similarity in all of these burglaries is that the residents have been home asleep at the time they were burglarized. now, earlier this morning we showed you this apartment complex where two of those burglaries happened. the santa clara police department was very helpful this morning the they want to send out a huge warning to residents in the city. lock up your place before you go to bed. within the last ten day, six

residents have been hit. fortunately, no one has been hurt. the thief or testifies are targeting houses and apartments in southern slay but the burglaries are all spread out. we understand the burglars are sneaking in and carrying out easy-to-carry electronics, touch as laptops, gaming devices and wallets. >> santa clara is safe but like any other area crime occurs. you have to be aware of your surroundings. at night you should lock your doors and windows. it is unusual. what stands out to me, the people are home. this is something that we take seriously. there are a lot of people working on this right now. >> reporter: we're told that one woman did wake up during one of these burglaries but all she saw was a shadow leave her place. residents are being asked to report any suspicious activity

in and around their neighborhood. reporting live from santa clara, jade hernandez, ktvu channel 2 news. >> okay, jade. thank you. 8:3. police in palo alto are investigating a burglary team reportedly made up of two adults and a child. investigators say they targeted three homes in the past month on lighten avenue and embarcadero and east charleston roads. police say a boy who appears to be about 0 years old is trying to break into the houses while two adults act as lookouts. the suspects were able to get away -- to get away with some items before the homeowner found the boy. police are telling everyone lock your doors and lock your windows. the number of people filing for first-time unemployment benefits jumped by the largest margin since february. 464,000 people filed initial job claims last week. that's a jump of 37,000, which is nearly twice what economists had forecast. continuing claims, though, fell by 223,000 to just under 4.5

million. a major silicon valley company plans to cut hundreds of jobs in the coming months. applied materials of santa clara says it's restructuring its solar panel business and will eliminate as many as 500 positions but some of those workers will transfer to other divisions in the company. the job cuts will happen in november as part. 400,000 californians who have unemployment benefits that ran out could get an extension. president obama a said will sign the measure as soon as it et goes to his desk. now, on its website, call's employment development department says people's whose benefits ran out at the beginning of june will receive retroactive payments beginning next week. right now, president obama is just about to sign a bill that's aimed at reducing

wasteful government spending. we're going live to the white house. there is the president live speaking right now, getting ready to sign. the white house has said what they are calling improper government payments reached almost 110 billion last year. federal auditors say ten of millions of dollars in benefits were paid out to dead people, to fugitives and others who were not eligible for such compensation. again, president obama is about to do that signing live at the white house. we wouldn'ted to show you him there. all right. 8:34. right now we want to show you sal castanedo, who is keeping a close eye on the commute for us. how's it going, sal? >> you know, things have calmed down, which is good, because we've had a busy morning. but things are getting a little bit better now. as a matter of fact, if you are going to the toll plaza, we did have a backup that that extended beyond the 880

overcrossing. it's still slow backed up to the parking lot. there are no major problems on the bridge. that's certainly good news. if you are driving in the east bay along interstate 880, the traffic is going to be busy as you drive past the coliseum the we're doing much better than the latest with the chp, nothing on 280 in the south bay. northbound 101 at hellyer avenue nearby, there is an accident on the shoulder. that one just came in. we don't know too much about that. also, northbound 101 has been busy approaching sunnyvale. here's mark tamayo. we do have overcast skies. san francisco yesterday was only 5. today, at least rye now, 54. we're gonna make a run to the lower 60s this afternoon. today will be warmer compared to yesterday. you can see the fog bank, pretty impressive as we come in

tighter. if you want the clearer spots, we have mostly sunny conditions out towards fairfield, concord and antioch but just to the west there's the fog bank moving in, at least fairly consistent around tiburon, berkeley and into oakland. a quick update on the tropics, we have this tropical depression, tropical depression 3. winds are at 35 miles an hour. once the winds kick up to 35 miles an hour, this will be a tropical storm and it will be tropical storm bonnie. here is the forecast track over the next 72 hours by the national hurricane center. remaining a tropical center and moving into the gulf of mexico. the track and the intensity forecast could be changing so this is something we will be watching at leaf over the next three day. back here in the bay area, we do have this, cloud cover and temperatures in the 50s. santa rosa, 52. livermore, 56 and hayward in the upper 50s, 58 degrees. this has been the source of the cooling. this area of low pressure dropping into the state over the past few days.

it will gradually lift out being replaced by this, the area of high pressure. you can see the result. we'll warm things up about 4 to 8 degrees compared to yesterday. that will translate to some mid- 80s inland. still, the fog bank hugging a good portion of the bay area coastline. the beaches really won't warm up this afternoon, only in the upper 50s to right around 60. we'll continue to warm things up. here we go. temperatures this morning, mainly in the 50s. can you see the temperature range, a big range by 2:00 and 3:00:00 this -- and 3:00 this afternoon. there's the 90-degree contour. that will gradually approach the bay area as we head into the weekend. here we go with the plan for today with the timely. you can see clearing skies inland, some patchy fog at 12:00. by 4:00, partly to mostly sunny. the eventual temperature range, upper 50s to 86 degrees.

san francisco, still some patchy fog. san jose, 79. morgan hill, 85 degrees. keeping it cool for the coast right around the bay side for today. inland back up in the 80s. we'll warm things up a little bit by friday and into the weekend. tori? >> thank you, mark. it's 8:37. part of san jose will be sprayed for mosquitoes tonight as part of an ongoing effort to prevent the spread of west nile virus to humans. the area to be fogged is bordered by highway 17 and marin avenues. the vector control company says the mosquitoes found in the area tested positive for the west nile virus. the fogging will start at 11:00 tonight and will last for several hours. water use in california may have to be cut in half to keep the sacramento delta healthy for the future. state water officials say 75% of snowmelt and rain should be flowing through the delta into the bay. but right now, only 50% of that water actually drains into the

bay. the delta supplies much of the state's drinking water and the new findings could affect water supplies here in the bay area and other parts of the state. 8:38. a whale of a surprise for two south african sailing instructors. very lucky to be alive. look at this. caught on camera, a stunning photo is circling all over the internet now. a 40-ton whale breaching the water right next to their sailboat. the whale then slammed into the boat's deck. that's what's left of the deck and tore the mast, just broke it. luckily, those two sailors were not hurt. the whale slid off the deck and then just swam away. >> wow. governor schwarzenegger tried his hand at standup comedy, talking about the controversy surrounding mel gibson. >> but the good news is that bp has contained the oil leak. that's good news, finally [ applause ] >> finally.

[ applause ] the bad news is no one has figured out how to contain mel gibson. [ laughter ] >> the governor talked to utility workers in sacramento. mel gibson, of course, has been under fire since recordings came out of him using sexist language, towards his former girlfriend. still ahead -- mixed news about real estate. plus, five of the hottest zip codes in the country, they are right here in the bay area.

the chp now says the driver of the greyhound bus that crashed in fresno early this morning was swerved to avoid an overturned minivan. reporter brian hickey is live where the bus was headed and has the latest information. good morning, brian. >> reporter: good morning. there were 48 passengers on that bus en route from los angeles to sacramento. nine people ended up making it here to sacramento. the bus crashed in fresno. there were six fatalities. the rest all went to the

hospital. just a tragic scene down there being described by even the most veteran of emergency responders, just describing the chaos down there after this bus was trying to avoid a crash in the middle of the freeway and ended up in eucalyptus trees head on. the speed limit in they're you a yaw is 65 -- in that area is 65 miles an hour. those who survived, describing the scene as terrible. one man finally made it to sacramento and is reunited with his family. he described everything from a bloody nose to a broken pelvis, back and spine injuries, neck injuries. just a terrible scene there as they started to triage the passengers. within the past hour, a bus arrived with only nine passengers on it. those were the people who turned down a trip to the hospital and survived that crash unscathed. the story they tell is just horrific. for the families on this end as well, equally trying.

they were not able to get information on -- anything about the crash or who was injured in that crash. we talked to one man who until he saw his brother step off that bus in sacramento did not know if he was gonna be among the dead and you can only imagine the relief for that family once they saw the bus step off in sacramento. it's been a little tough from the but company, getting information from them, but they are doing what they to help those who injured. a terrible crash. our hearts go tout out to the families who lost a loved one or has an injured loved one. brian hickey, ktvu channel 2 news. >> thank you, brian. let's bring you up to date on some of the other top stories we're following for you right now. transit officials will meet in about an hour talking about the impact of ac's newly-imposed contract on workers. ac officials say drivers have been staging a sickout to protest the contract but the union says new work rules are

putting the public safety at risk. investigators are trying to determine the cause of an overnight fire. the damage was to a half-dozen cars in a long-term parking lot at san francisco international airport. most of the cars were totaled. luckily no one was hurt. crews are on the scene of a water main. it flooded francisco way and hazel avenue. there's good news and bad news this morning about the real estate market. pam cook has a look with the new reports and what they mean for the economy. good morning, pam. >> good morning. new numbers out this morning show home sales dropped last month and na analysts say that's -- and na lists say that's slowing down the recovery. sales were down 5%.

analysts sales continue to be slow because of the high unemployment rate and tighter lending standards. there are reportedly 4 million homes on the market right now. now, the bright side is sales are up 1% from the low set in january of 2009. another new report that could help things, mortgage rates are at a new record low, dropping for the fourth time in five weeks. according to freddie mac, the average fixed loan for 30 years is 4.52%. that's the lowest since the firm began tracking rates in 197. a 1-year fixed is 4.03. now, part of the reason is investor worries over the debt problems over europe which is causing people to shift money to treasury bonds and that forces rates lower. however, again, real estate analysts predict another few months of slow home sales because of the number of people out of work and the number of banks restricting lending for

both new loans and refinancing. i just saw a new survey coming in. moments ago, two-thirds of americans asked now think the economy has not hit bottom. that's issuing thoughts after double-dipped recession. back to you. >> thank you. ziprealty.com is releasing its quarterly home lunter report -- home runter report with the hottest zip codes. those homes sale for more than the asking price. and six of the top zip codes are here in the bay area. two of the other are in oakland, another in san jose, and one is in rodeo. >> well, in the 2nd quarter which ended in june, there was a government incentive, the tax credit for home buyers. a lot of people wanted to buy homes and there's not a lot of

homes for sale in the bay area. that's driven up prices and things are going for over- asking. >> the report will provide information on the coldest zip codes where homes are selling well below their asking price. expansion plans for the san francisco museum of modern art took a big step forward. museum officials have selected an architectural firm to design a new wing. this firm is based in norway and new york. but it's best known in the states for designing the national 9/11 memorial museum. we're expecting to get a glimpse of this next spring. you may have to travel overseas to go to next year's giants' season opener. that's because the team is thinking about starting its 2011 season with a two-game series in taiwan. now, under the plan, san francisco will play the arizona diamondbacks in late march,

they would then return to arizona for the last week of spring training before starting the regular season. this wouldn't be the first time a bay area baseball team has played in the far toast -- far east. the oakland opened their season in japan against the boston red sox. 8:47. hue lid packard and -- hewlett- packard and general motors will continue their relationship. hp will help manage the strict through the went services unit. that will include network, workplace as well as gm's n- star system. for the five time an american automaker plans to sell a hybrid car for the same price as the gasoline car. the automaker charges nearly 9,000 more for its hybrid suvs

an japanese automakers charge nearly 3,000 more for the hybrid of its most popular cars. industry analysts say this could lead others to follow suit. 8:50. we've got breaking news. the u.s. embassy says three foreign contractors have been filled in a mortar attack on baghdad's green zone. that's all we know right now. we don't know names. we don't know anything else that's happening. this is just coming in. but this is the latest from baghdad in iraq. three foreign contractors have just been killed. more details as they are available. and we have more breaking news. this time from the east bay. police activity has shut down a busy roadway. sal will have detail. we'll be right back.

the international monetary fund is lending a big helping hand to haiti. they've cancelled haiti's $268 million debt. it will lend them another $60 million to help with reconstruction after yarn's devastating -- after january's devastating earth. they are hoping this will encourage international donors who promised aid to haiti to deliver on the promises so the pace of reconstruction can be increased. there are more lawsuits filed against bp. the latest from new york and ohio pension funds.

government leaders in the two states say pension funds there have lost almost $200 million and claim investors have been misled by the oil company. three california pension funds already filed claims saying they've lost nearly $11 million and asked for lead plaintiff status but new york officials say they should have that position since they've lost more money. lead plaintiffs handle negotiations and settlements for the group. the double lin hills regional park is opening this evening. it's about two miles west of san ramon in dublin. a dedication ceremony is set for 5:30 this evening at the donnie lin staging area followed by a short hike. there's excellent rues for hikers. into -- views for hike snores the berkeley city council voted to extend the hours of a local pool.

the move is to compensate for the loss of two other pools in the area. so the west campus will be open friday evenings for lap swimming and weekends for general use. a connecticut judge has ruled cheerleading is not a sport. the question came up after a college eliminated its vol i will -- volleyball team. the volleyball team sued and the judge ordered that the volleyball team be reinstated. now they will replace the volleyball with rugby and push for cheerleading to be recognized as a varsity sport. twitter is tweeting and will open a new data operations center in salt lake. the social networking site has posted a message announcing it is moving their site to utah.

8:56. we want to check in with sal for an update on some breaking news in san leandro. sal? >> that's right. east 14th street is lows closed in san leandro between la fayette and california for some police action there. some of the buses may be rerouted on east 14th. very busy street in san leandro. we're looking at 880. some people may use 880 instead. 880 northbound and southbound doing okay. when you get to the bay bridge toll plaza, it has been light. now in the last few minutes, just about a five-minute delay. no problems in san francisco on southbound 101. northbound a little bit heavy getting to downtown area. here's mark. >> the clouds are back with us this morning. but already some sunny reports out towards antioch and fairfield and concord. the fog bank will gradually clear back to the bay as we head into the afternoon hours. still some patchy fog for the coast and san francisco. we begin a warming trend today. in the weekend, warmest

locations inland approaching 90- degree mark -- the 90-degree mark. we'll try to get san francisco into the low 60s. yesterday, they were stuck in the 50s. we'll try to warm things up a little bit today. >> coats and jacket. >> almost like winter out there. >> that's not unusual for san francisco. >> yes. that will do it for us. thanks for watching, everyone. >> bye now. >> ...berber carpet. it was a whole bowl of stew. nooo. why? i could have saved this one. i could have saved this one. ♪ call 1-800-steemer