tv CBS 5 Eyewitness News at Noon CBS August 18, 2011 12:00pm-12:30pm PDT
"...opening bell" wall street in a tailspin.. the dow plunging hundreds of points right now after the opening bell. and they're off. it's not good. wall street in a tailspin down hundreds after the opening bell. good afternoon, i'm frank mallicoat. >> i'm grace lee. after a few days of calm, stocks are plummetting worldwide. at one point the dow was down more than 500. let's get to jason brooks with kcbs and cbsmoneywatch.com. what are the danger signs that have investors worried throughout? >> reporter: pretty much
everywhere you look today, bad news. the numbers are ugly. the dow down 480, below 11,000. nasdaq down 138. s&p down by 59. more money going into the safe havens, gold at a record high $1,822 an ounce and more money with u.s. treasuries with yields at record low sending people to refinancing. getting to what's causing the market to drop, there are things in europe and the u.s. starting with europe, they got the ball rolling this morning. there are several countries in the eurozone that now want greece to put up collateral for their second bailout. if greece defaults, then you will see all sorts of european banks with heavy exposure to greek debt have big-time problems and many u.s. banks have a lot of exposure to those european banks. everything is tied together. the u.s. economy got a report today that u.s. jobless claims
spiked back above 400,000. we got a report that existing home sales fell by 3.5% in july. the housing market is depressed. then a key manufacturing report says that the federal reserve's philadelphia region fell to an extremely low level, a recessionary level. that has people worried about manufacturing falling back. and one more note. a company out of sunnyvale net app that specializes in data storage lowered its forecast for the current quarterback and fell last quarter. people are worried that business investment in i.t. is going to be pulling back. so the news is bad from so many angles. that's why wall street has taken a pummeling today. >> there are so many companies taking a big hit today including hp but they took a bounce as reports that there could be some changes coming for them. >> reporter: big changes. hp, one of your iconic pc makers out there, reported to be selling its pc business. now, hb is not commenting on that. it's reporting its earnings
after the closing bell only told me to stay tuned to the closing bell. there have been reports -- bmo capital analysts said yesterday that hp should sell its pc business and there are also reports that hp is interested in buying an enterprise software company called automatom in england. they say they are in talks with hp. we could find out what hp does. pc sales have been weakening in the face of tablet and smart phone sales of late. >> well, we still have a little time. hopefully. >> reporter: we'll see. maybe that late bounce rally. >> thank you, jason brooks with kcbs and cbsmoneywatch.com. we continue to follow an intense police standoff in its second day now. a man is still holed up in a marin county hotel holding his girlfriend hostage. anne makovec is in san rafael with more. >> reporter: police say they have been continuing to negotiate with this man on the
phone. he is still holed up in his room here at the hotel behind me and about 70 officers are rotating with about 70 on scene at any given time and they have been for more than the past 24 hours. 580 was re-opened overnight after they installed a safety measure an 8 by 10 metal plate suspended by a crane blocking the window of the room where the man is holding his girlfriend as hostage. if he decides to fire a shot at the highway it won't go far. the standoff has been going on since 11 a.m. yesterday. no telling how long it will go on. >> our ultimate goal is public safety for the people in the room as well as out here. we are going to respond appropriately, take our time and aand do this the best way possible. >> reporter: the standoff began yesterday when police got a tip that a stabbing suspect was in
the extended stay hotel in san rafael. police say he locked himself in, reported his girlfriend was there, too, and fired a shot out of the window toward i-580. the chp shut down the freeway and the richmond/san rafael bridge. >> we weren't willing to risk the safety of the public and allow motorists to drive in that area when there's the potential for gunfire across the freeway. >> reporter: they re-opened the bridge after an hour but 580 remain closed until1:00 a.m. a traffic nightmare for the evening commute, some drivers out of gas, and one road rage fight. police believe this is a surveillance video of the suspect at united supermarket in san rafael sunday. police say he was shoplifting and then stabbed the clerk so they were trying to arrest him yesterday morning. 40 guests were evacuated from the hotel, sent to other area hotels. this morning, some came back hoping for access to their belongings. >> just hang out and wait a little bit and perhaps we'll get my medication and if it
doesn't get resolved in the next few hours then we'll hopefully get our stuff shipped to us. >> we're blessed. we weren't in trouble. we'll see our grandchildren tomorrow and be very happy people. >> reporter: he has a good attitude. right now, police are working with the hotel to get people's belongings especially medication, things that they need. again, no telling when this is going to end. live in san rafael, anne makovec, cbs 5 eyewitness news. >> thank you. the search is on for a missing canoer last seen near treasure island but that was about 18 hours ago. stephanie chuang with what has his friends so worried today. >> reporter: grace, his friends say he has a lot of medical conditions. the u.s. coast guard says he is 42 or 43 years old. here on the north end of treasure island is where he was last seen going into the water here in his canoe. and his friends say according to them, anyway, he was missing for at least a couple hours before the coast guard even knew about it. >> the water was pretty choppy. >> reporter: it was the first
time michael butler took his new canoe into the water. but canoeing was something his friends warned him not to do since he bought it last week. >> i think he was on medication taking for pain and things so it's a possibility that he didn't have the strength because he is small. >> he was pretty weak. he was disabled, blind in one eye, a bad back. >> reporter: his good friend and neighbor richard says butler went out with two men including richard's son who lived with butler at his treasure island apartment as his caretaker. the three took the could knew out on the north end of treasure island sometime between 3:00 and 4:00 yesterday afternoon when it flipped right at shore. >> canoe had capsized, you know, and they righted it and he said he was going to go out and get the oar and he pushed the boat out. >> reporter: he adds, the two men left butler in the canoe for 10 minutes and when they came back, he was gone. the coast guard says it didn't get the call that butler was in
trouble until after 6:00. richard says he wasn't prepared. >> he was dressed warmly, you said, but did they have life jackets? >> they were supposed to bring but none of them had them. >> reporter: he told you to wear one. no, he told me he would wear it because i asked him about it and he showed me the life jacket. he said yeah, i got two or three. i said oh, okay, great, put it on. wear it all the time. he said, i will. >> reporter: the coast guard is still out there searching with vessels. the chopper is flying overhead right now. other agencies are involved also. rescue officials caught a break this morning when they got reports that a pair of gray sneakers were found at pier 39 believed to belong to michael butler but that's unconfirmed. >> thank you, stephanie chuang with the latest in san francisco. san jose panda express is accused of racial discrimination in a federal lawsuit. the u.s. eeoc is checking out claims that a latino worker -- that latino workers were forced to clean toilets while asian employees got a lighter work
lawsuit and says the manager disciplined latino employees more often than others. the restaurant isn't commenting. in other bay area headlines, the oakland school district's police chief accused of using a racial slur resigned after a complaint was filed against him for allegedly using the "n" word after a charity golf tournament. pete sarna led the police force there for two years. in his resignation letter he apologized for his actions. the university of california has been hit hard with budget cuts so why is it handling out millions in raises? >> president obama is ready for r & r on the east coast. the luxury vacation destination that has republicans accusing him of being out of touch. if i say this is what i want to talk about, that's what we should address. >> plus the dramatic exit for tea party activist christine o'donnell. ,,,,,,
yeah, i'm married. does it matter? you'd do that for me? really? yeah, i'd like that. who are you talking to? uh, it's jake from state farm. sounds like a really good deal. jake from state farm at three in the morning. who is this? it's jake from state farm. what are you wearing, jake from state farm?
president obama is back in ay wall street down 466 after bad economic reports. president obama is back in washington after a three-day economic road trip. he won't be there for long. this afternoon the first family leaves for a ten-day vacation but with the economy and the markets in turmoil as you saw, the president is taking some heat for the timing. it's a luxury fit for a president. 10 days at a multi-million dollar 28-acre beachfront martha's vineyard estate. >> sometimes there are days in washington that will drive you crazy. >> reporter: but president obama will unwind amid fears of a second recession and cries from republicans that he is out of touch. >> he said that he wouldn't rest until people went back to work in this country.
and he has been on vacations and golfing and campaigning nonstop. >> reporter: according to our cbs news count, since taking office, president obama has vacationed for all or part of 61 days. at the same point in his presidency ronald reagan had taken 121 days off. president george w. bush, 200 days, much of that time at his ranch in crawford, texas, where he was criticized for spending the night following hurricane katrina. bill clinton took the at least time off just 28 vacation days at this same point. >> it can be controversial, you know, if the economy is struggling. but a president should take vacations. so in that sense, he needs time off. it's mental energy, it's mental work. >> reporter: president obama told anthony mason, canceling his trip would do nothing to solve the crisis here. >> if all we're doing is the same posturing that we saw before the debt limit vote, that's not going to encourage
anybody. that's going to discourage people. >> president obama may have asked for this criticism because back in july he berated congress for planning to take a break during the heat of the debt ceiling talks. tea party activist christine o'donnell losing her cool on live tv. the former senate candidate walked off piers morgan tonight after he asked about her experience with witchcraft and views on same-sex marriage. >> i'm just asking you questions based on your own public statements and now what you have written in your own book. it's hardly rude to ask you that, surely. >> well, don't you think as a host, uhm, if i say this is what i want to talk about, that's what we should address? >> not really, no. you're a politician. >> yeah. okay. i'm being pulled away. you know, we turned down another interview for this. >> well, there you go. morgan invited o'donnell to come back to his show tonight. o'donnell tweeted her response. thanks for the invite. schedule is already packed.
maybe another night. no hard feelings you cheeky bugger. [ laughter ] >> i guess they're all friendly again now. >> they made up. all right. $9 tickets to vegas. the cheap way to jet away but there is a catch. and most fans only dream of getting a foul ball. the incredible thing this 4- year-old royals fan did that crossed the boundary. hi, i'm meteorologist lawrence karnow in the cbs 5 weather center. big changes in the weather, we'll talk about that coming up next.
the university of california is in the midst of its worst financial crisis ever. but thousands of faculty and staff tting raises - to the university of california is in the middle of its worst financial crisis ever. but thousands of faculty and staff are getting raises to the tune of $140 million. the merit raises are the first in four years. they are going to employees who make under $200,000 a year. the money will come from increased student tuition, general fund money and other sources. president mark yudof says it's a necessary step to keep talent from leaving for other universities. ever since frank heard about this story he has been in need of a little vacation. >> maybe a little. now you can afford it. you can jet off to vegas for $9. spirit airlines just launched nonstop service between oakland and vegas. there are two nonstop flights a day to lure in the customers. the airline is offering $9 for one-way tickets but there is a
catch. you have to sign up for the fare club for $60. spare charges for carry-ons and to book the middle seat, too. >> why would they charge to book the middle seat? >> more leg room? could be wrong. >> i like the window seat. >> i'm an aisle kind of girl. >> i'll sit anywhere for nine bucks. fog in the bay area, big changes coming our way as we'll see more low on the way, drizzle developing along the coastline later on so enjoy the day. out there right now, beautiful shot for you in the inland areas. mount diablo sunny and bright right now. those temperatures heating up in a hurry as we speak. and yes, we are looking at beautiful weather as you make your way even inside the bay. mostly clear skies there, too. but things are going to change. so enjoy the afternoon. summer sunshine continuing for at least this one more day and then we'll see more clouds thickening up overnight tonight. we could see 90s well inland, patchy fog with 60s at the coast. tonight low clouds and fog
going to thicken up, probably drizzle at the beaches. overnight lows in the 50s and 60s. but you see the fog pulling back toward the coastline right now where it's going to stay the better part of the day. so really around seasonal normals but this cooler air is going to make its way into the bay area, this low drops in toward the coast. that's going to help to take those temperatures way down. numbers though today will be as high as 90 degrees in morgan hill. 80 san jose. 77 in fremont. and you're looking at 90s well inland today. some 70s and 60s around the bay. 70s and 80s into the north bay. and 60s at the coast. next couple of days, we are going to watch those temperatures drop off below normal friday, saturday and sunday. monday looks like we'll start to heat up. by the way, we have a game coming up, yup, the raiders and the 9ers this weekend cool and breezy, game time 5:00. pre-game 4:30 right here on channel 5. back to you guys. >> at least you acknowledged the 49ers this time, lawrence. >> this time, yeah. [ laughter ] thanks a lot, lawrence. >> all right. >> when this week's jefferson award winner first came to san francisco, he knew he liked to
volunteer. as kate kelly shows us, it has now been 22 years since he first began making a big difference for local teens. >> reporter: phil estes is comfortable navigating his way through the streets of the financial district. in 1989 he left wall street and co-founded a private equity firm in san francisco. in the 22 years since, life has grown. highs family, more employees -- he has a family, more employees, you but never forgot the first day he volunteered. >> it's impossible. you see the kind of circumstances that these young people have to deal with, and you know, they are 13 or 14 or 15 years old. they have come from awful places. they are trying their level best just to hang on and survive. >> reporter: for the last two decades, phil has volunteered with larkin street youth services from doing outreach on the streets to fundraising in the board room, where he currently serves as chair. >> he brings a huge passion and commitment to young people.
>> reporter: she is the executive director. >> it was a little drop-in center when he started and now we're this, you know, 25 programs and 14 sites, the full continuum of services for youth 12 to 24. >> reporter: services that now include residential facilities, medical treatment, educational and vocational support. >> it's all about helping these people find hope again. >> i was living in golden gate park and had nowhere to go. i couldn't even find food. looking in trash cans for food. >> reporter: david dropped out of high school in ohio before ended up at larkin street. >> i came here just looking for a meal like maybe somewhere to get out of the cold a little. but i if you find like something a lot better. >> reporter: he is now a college student working toward a career in personal training. >> they encouraged me to do things and pushed me, like do things that i would have never done on my own. >> reporter: in the 27 years larkin street youth services has been operating in san francisco, it has grown to become a national model. with 25 programs that have
helped 70,000 kids get off the streets. >> i couldn't look myself in the mirror in the morning if i didn't do something. so i try to do something every day. ♪ [ music ] >> reporter: which includes weekends. phil recently formed a band anding to, they play at charity events. but even with his many commitments, he is mindful another 3500 kids will need larkin street services this year. >> i look forward to the day we work ourselves out of business when there aren't any more homeless kids though are abused. that would be fantastic. so we'll keep working until that happens. >> reporter: so for working for over two decades to support homeless youth to reach their full potential, this week's jefferson award in the bay area goes to phil estes. kate kelly, cbs 5. ,,,,
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proposal either....something much better a little baseball love in kansas city last night t wasn't a ballpark marriage proposal. it was something much better. yankees visiting the royals and something special happened. watch the ball boy get the ball and manned it to a little girl. >> the little fan runs over to mom gets a little hug. there is something extraordinary. she walks to the young boy and says, would you like a souvenir? hands it over to the yankees fan. did you see this? >> what you don't see is he going to walk back over around say, what's your phone number?
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