CONGRESS IS MOVING AHEAD TODAY ON AN AGREEMENT TO AVOID A DEBT DEFAULT. THERE’S BEEN RELIEF AROUND THE WORLD WITH ASIAN SHARES ENJOYING ONE OF THE BEST SESSIONS IN WEEKS. THE SENATE SEEMS LIKELY TO VOTE FIRST ON THE MEASURE WHILE HOUSE GOP LEADERS WORK TO GAIN SUPPORT FOR IT.

THE OPPRESSIVE HEAT WILL COVER THE COUNTRY’S MID-SECTION THIS WEEK AS HOTTER THAN USUAL TEMPERATURES PERSIST. PARTS OF KANSAS, MISSOURI AND OKLAHOMA ARE UNDER EXCESSIVE HEAT WARNINGS. MORE THAN A DOZEN CITIES FROM TALLAHASSEE TO MINNEAPOLIS HAVE SEEN ALL-TIME HIGHS.

AND INJURIES FROM WOOD SPLINTERS OR OTHER MATERIALS HAVE TRIGGERED A RARE FUNGAL INFECTION THAT MAY HAVE CONTRIBUTED TO THE DEATHS OF 5 PEOPLE IN JOPLIN AFTER MAY’S DEVASTATING TORNADO. THE CDC SAYS IT HAS SEEN MULTIPLE FUNGAL INFECTIONS AFTER OTHER NATURAL DISASTERS BUT NEVER AFTER A TORNADO.

HOUSE REPUBLICANS ARE TRYING FOR A 3RD STRAIGHT DAY TO PASS A DEBT-CEILING BILL. YESTERDAY HOUSE SPEAKER JOHN BOEHNER HAD TO POSTPONE A VOTE ON HIS PROPOSAL TO EXTEND THE NATION’S BORROWING AUTHORITY WHILE CUTTING FEDERAL SPENDING BY NEARLY 1 TRILLION DOLLARS. LAWMAKERS HAVE UNTIL NEXT TUEDAY TO AVOID A GOVERNMENT DEFAULT.

THE ECONOMY EXPANDED AT A RATE OF ONLY 1.3 PERCENT IN THE SPRING AFTER HARDLY GROWING AT ALL IN THE FIRST 3 MONTHS OF THE YEAR. THE COMBINED GROWTH FOR THE FIRST 6 MONTHS OF THE YEAR WAS THE WEAKEST SINCE THE RECESSION ENDED.

NORWAY WILL HOLD THE FIRST FUNERALS TODAY FOR VICTIMS OF LAST WEEK’S MASSACRE THAT KILLED 76 PEOPLE. ANDERS BREIVIK WAS TAKEN TO JAIL TO BE INTERROGATED FOR A 2ND TIME TODAY. AN OPINION POLL SHOWS SUPPORT FOR THE LABOUR PARTY JUMPED 10 PERCENTAGE POINTS IN THE DAYS AFTER THE ATTACKS.

AND POLICE SAY AN ARMY SOLDIER ARRESTED WITH SUSPECTED BOMB-MAKING MATERIALS NEAR FORT HOOD TEXAS WEDNESDAY WAS HATCHING A TERROR PLOT TO ATTACK MILITARY PERSONNEL. THE 21 YEAR OLD WAS ARRESTED IN HIS MOTEL ROOM IN KILLEEN. FORT HOOD WAS THE SCENE OF A SHOOTING RAMPAGE THAT KILLED 13 PEOPLE IN 2009.

HOUSE REPUBLICANS ARE GOING AHEAD WITH A VOTE ON A MODIFIED PLAN TO AVOID A GOVERNMENT DEFAULT NEXT WEEK. BUT THE BILL FACES A WHITE HOUSE VETO THREAT AND SENATE DEMOCRATS ARE OPPOSED. UNLESS CONGRESS ACTS BY TUESDAY, THE GOVERNMENT WILL NOT BE ABLE TO PAY ALL ITS BILLS. THAT INCLUDES 23 BILLION DOLLARS IN SOCIAL SECURITY BENEFITS DUE NEXT WEDNESDAY.

THERE IS SOME GOOD NEWS FOR THE ECONOMY TODAY. NEW CLAIMS FOR UNEMPLOYMENT BENEFITS FELL MORE THAN EXPECTED LAST WEEK, DROPPING BELOW THE KEY 400,000 LEVEL FOR THE FIRST TIME SINCE EARLY APRIL.

THE HEAD OF NORWAY’S POLICE SECURITY SERVICE SAYS THE RIGHT-WING EXTREMIST RESPONSIBLE FOR THE BOMBING AND YOUTH CAMP MASSACRE APPEARS TO BE A SOCIOPATHIC LONE-WOLF. SO FAR THERE’S NO INFORMATION SUPPORTING THE NORWEGIAN’S CLAIMS THAT HE’S PART OF A MILITANT NETWORK AND THAT OTHER CELLS ARE READY TO STRIKE.

A CROWD OUTSIDE A HOLLYWOOD FILM PREMIERE LAST NIGHT THREW BOTTLES AND VANDALIZED CARS AFTER THEY WERE FORCED TO LEAVE AN OVERCROWDED THEATER. 2,000 PEOPLE WERE INSIDE GRAUMAN’S CHINESE THEATER FOR THE PREMIERE OF A DOCUMENTARY ABOUT THE ELECTRIC DAISY CARNIVAL RAVE. A CROWD MAY HAVE BEEN DRAWN TO THE EVENT BY A TWITTER MESSAGE ABOUT A BLOCK PARTY.

HOUSE SPEAKER JOHN BOEHNER HAS BEEN FORCED TO POSTPONE A FLOOR VOTE ON HIS DEBT LIMIT PLAN. THE CONGRESSIONAL BUDGET OFFICE SAID BOEHNER’S PROPOSAL WOULD CUT SPENDING BY $850 BILLION RATHER THAN THE $1.2 TRILLION ITS PROPONENTS CLAIMED IT WOULD SAVE. THE MOVE MEANS THE HOUSE CAN’T VOTE ON THE PLAN UNTIL THURSDAY AT THE EARLIEST.

THE U.S. POSTAL SERVICE HAS LISTED ALMOST 3700 RETAIL POST OFFICES CONSIDERED FOR CLOSURE OR DOWNSIZING, INCLUDING MORE THAN 200 EACH IN TEXAS, ILLINOIS, MISSOURI AND PENNSYLVANIA. THE POST OFFICE HAS BEEN HIT BY THE WEAK ECONOMY AND A MOVE TOWARD E-MAIL. IN MARCH IT ANNOUNCED THAT 7500 JOBS WOULD BE CUT.

AND HEAVY RAINS AND FLOODS ARE BATTERING THE NORTHEASTERN PHILLIPINES FOR A 3RD DAY WITH THE DEATH TOLL RISING TO 25. 31 OTHERS ARE MISSING AFTER FLOODWATERS SWAMPED THE HOUSES OF ABOUT HALF A MILLION PEOPLE. MANY DOMESTIC FLIGHTS HAVE BEEN CANCELLED AND 1600 FERRY PASSENGERS ARE STRANDED.

REPUBLICANS AND DEMOCRATS ARE STILL DEADLOCKED OVER COMPETING PLANS TO RAISE THE DEBT CEILING, WITH JUST 1 WEEK TO GO BEFORE A DEVASTATING DEFAULT. IN LAST NIGHT’S ADDRESS, PRESIDENT OBAMA WARNED A DEFAULT WOULD INFLICT A TAX HIKE ON ALL AMERICANS BY PUSHING UP BORROWING COSTS ON CREDIT CARD LOANS AND MORTGAGES.

A C-130 MILITARY TRANSPORT PLANE HAS CRASHED INTO A MOUNTAIN IN MOROCCO IN BAD WEATHER, KILLING 78 PEOPLE. 3 SURVIVORS WERE SERIOUSLY INJURED. THE PLANE WAS CARRYING 60 MEMBERS OF THE MILITARY, 12 CIVILIANS AND 9 CREW MEMBERS.

THE LAWYER OF THE NORWEGIAN MAN WHO CONFESSED TO THE MASS KILLINGS IN NORWAY SAYS HIS CLIENT WILL NEVER WALK FREE AND THAT ANDERS BREIVIK IS LIKELY INSANE. IT’S UNCLEAR WHAT CRIME BREIVIK WILL BE CONVICTED OF FOR KILLING 76 PEOPLE. IT COULD BE TERRORISM BUT ALSO CRIMES AGAINST HUMANITY.

AND FRIENDS AND FAMILY ARE SAYING GOODBYE TO AMY WINEHOUSE AT A PRIVATE FUNERAL IN LONDON. A BEE-HIVED KELLY OSBOURNE IS ONE OF THE MOURNERS. WINEHOUSE, WHO HAD BATTLED ALCOHOL AND DRUG ADDICTION, WAS FOUND DEAD SATURDAY AT HOME. WINEHOUSE RELEASED ONLY 2 ALBUMS BUT THEY’VE RE-ENTERED CHARTS AROUND THE WORLD.

WITH THE AUGUST 2ND DEADLINE JUST OVER A WEEK AWAY, DEBT TALKS COLLAPSED AGAIN OVER THE WEEKEND. PRESIDENT OBAMA HAS CANCELED 2 FUNDRAISING APPEARANCES TO DEAL WITH THE CRISIS. HOUSE SPEAKER JOHN BOEHNER HAS TOLD REPUBLICAN LAWMAKERS THAT TO GET THE DEBT CEILING RAISED BY AUGUST 2ND, THE HOUSE MUST VOTE ON LEGISLATION BY WEDNESDAY.

NFL OWNERS AND PLAYERS HAVE AGREED TO THE TERMS OF A DEAL TO END THE LOCKOUT. PLAYERS WILL BEGIN THE VOTING PROCESS LATER TODAY. THE SIDES WORKED THROUGH THE WEEKEND AND WRAPPED UP TALKS THIS MORNING. NFL CLUBS COULD START SIGNING 2011 DRAFT PICKS AND ROOKIE FREE AGENTS TOMORROW AND TRAINING CAMPS COULD START OPENING THIS WEEK.

AND THE HEAT AND HUMIDITY THAT’S BEEN COVERING THE EAST THE PAST FEW DAYS IS STARTING TO FADE. TEMPERATURES IN WASHINGTON AND NEW YORK HOVERED IN THE 90’S YESTERDAY, DOWN FROM TRIPLE DIGITS EARLIER. BUT THERE’S NO RELIEF IN SIGHT FOR THE SOUTHERN PLAINS WITH TRIPLE DIGIT HEAT STILL ROASTING KANSAS, OKLAHOMA, TEXAS AND ARKANSAS.

EXCESSIVE HEAT WARNINGS ARE STRETCHING FROM KANSAS TO MAINE AND THE CAROLINAS AS THE HEAT WAVE SPREADS INTO THE NORTHEAST. TEMPERATURES WILL REACH TRIPLE DIGITS THROUGH THE WEEKEND. THE HIGH TEMPERATURES AND HUMIDITY ARE FORCING UP HEAT INDEXES TO 105 IN BOSTON, 114 IN PHILADELPHIA AND 116 IN WASHINGTON D.C.

PENTAGON CHIEF LEON PANETTA WILL END THE BAN ON GAYS SERVING OPENLY IN THE MILITARY AND CERTIFY THAT REPEALING “DON’T ASK DON’T TELL” WILL NOT HURT THE MILITARY’S ABILITY TO FIGHT. AFTER PRESIDENT OBAMA SIGNS OFF, REPEAL OF THE BAN COULD BECOME EFFECTIVE BY THE END OF SEPTEMBER.

NFL OWNERS APPROVED A DEAL TO END THE LOCKOUT YESTERDAY. BUT THE PLAYERS STILL HAVEN’T VOTED ON THE PROPOSAL, SAYING THEY WON’T BE RUSHED INTO A DEAL. OWNERS INSIST THAT TIME IS RUNNING OUT TO GET IN A FULL SLATE OF 4 PRE-SEASON GAMES AND 16 REGULAR SEASON CONTESTS. THE HALL OF FAME GAME HAS ALREADY BEEN LOST.

NEW CLAIMS FOR UNEMPLOYMENT BENEFITS ROSE MORE THAN EXPECTED LAST WEEK. INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS INCREASED 10,000. INITIAL CLAIMS HAVE NOW BEEN ABOVE THE 400,000 MARK FOR 15 STRAIGHT WEEKS.

THE SPACE SHUTTLE ATLANTIS LANDED EARLY THIS MORNING IN FLORIDA, ENDING NASA’S 30 YEAR SHUTTLE PROGRAM. ATLANTIS WILL NOW GO ON DISPLAY AS A MUSEUM PIECE. DETAILS OF A FOLLOW-UP PROGRAM ARE STILL PENDING BUT THE PLAN IS TO BUILD NEW SPACESHIPS THAT CAN TRAVEL BEYOND THE SPACE STATION’S 250 MILE ORBIT.

THE CHAIRMAN OF THE SENATE BUDGET COMMITTEE SAYS IT’S IMPOSSIBLE TO ENACT SPENDING CUTS, A TAX CODE OVERHAUL AND CHANGES IN BENEFITS BEFORE THE AUGUST 2ND GOVERNMENT DEFAULT DEADLINE. DEMOCRAT KENT CONRAD, PART OF THE GANG OF 6, SAYS A SHORT-TERM EXTENSION IS THE MOST LIKELY SOLUTION FOR CONGRESS AND THE WHITE HOUSE.

AND AT LEAST HALF THE COUNTRY CONTINUES TO BAKE UNDER A RELENTLESS HEAT WAVE THAT’S BLAMED FOR AT LEAST 22 DEATHS THIS WEEK. 141 MILLION PEOPLE IN MORE THAN 2 DOZEN STATES WERE UNDER A HEAT ADVISORY YESTERDAY. TRIPLE DIGIT TEMPERATURES ARE FORECAST TO REMAIN ACROSS THE EAST THROUGH SATURDAY.

PRESIDENT OBAMA AND CONGRESSIONAL LEADERS ARE READY TO SEE IF AN 11TH HOUR DEAL IS POSSIBLE TO AVOID DEFAULT. A NEW PLAN UNVEILED BY A GROUP OF SENATORS CALLED THE “GANG OF 6” AIMS TO SLASH THE BUDGET DEFICIT BY 3.7 TRILLION DOLLARS OVER 10 YEARS AND BOOST REVENUES BY CLOSING TAX LOOPHOLES AND ENDING SOME TAX BREAKS.

FORD MOTOR COMPANY IS RECALLING MORE THAN 20,000 PICKUP TRUCKS AND SUV’S BECAUSE A DEFECTIVE SWITCH CAN CAUSE THE TURN SIGNAL, TAIL LIGHTS AND BRAKE LIGHTS TO FAIL. BUT NO ACCIDENTS OR INJURIES HAVE BEEN REPORTED.

SCIENTISTS ARE CLOSING IN ON A BLOOD TEST TO SCREEN PEOPLE FOR ALZHEIMER’S DISEASE. AUSTRALIAN RESEARCHERS REPORT AN EXPERIMENTAL TEST DID A GOOD JOB OF INDICATING HOW MUCH OF THE TELLTALE ALZHEIMER’S PLAQUE IS IN PEOPLE’S BRAINS. 35 MILLION PEOPLE WORLDWIDE HAVE THE FORM OF DEMENTIA.

THE HIGH TEMPERATURES AND HUMIDITY STIFLING THE MIDWEST SHOULD LAST THOUGH THE WEEK AND WILL SOON SPREAD TO THE EAST COAST. THE WORST CONDITIONS ARE BLANKETING A STRETCH FROM TEXAS TO MINNESOTA AND THE DAKOTAS. 17 STATES WERE UNDER HEAT WATCHES OR WARNINGS YESTERDAY. THE HEAT INDEX HIT 126 IN IOWA.

LONDON’S DEPARTING POLICE CHIEF SAYS 10 OF THE 45 PRESS OFFICERS IN HIS DEPARTMENT USED TO WORK FOR NEWS INTERNATIONAL. BUT HE DENIES THERE ARE ANY IMPROPER LINKS BETWEEN THE FORCE AND RUPERT MURDOCH’S COMPANY. TODAY MURDOCH, HIS SON AND A FORMER CEO WILL BE GRILLED BY U.K. LAWMAKERS ABOUT THE PHONE HACKING SCANDAL.

SAN JOSE BASED CISCO SYSTEMS IS CUTTING ITS WORK FORCE BY ABOUT 9 PERCENT TO REDUCE COSTS. CISCO WILL CUT 6500 OF ITS ROUGHLY 73,000 WORLDWIDE EMPLOYEES. TWO THIRDS WILL COME THROUGH LAYOFFS AND THE REST THROUGH EARLY RETIREMENT. EMPLOYEES CAN EXPECT PINK SLIPS DURING THE FIRST WEEK OF AUGUST.

HOUSING STARTS HIT A 6 MONTH HIGH IN JUNE AND PERMITS FOR FUTURE CONSTRUCTION UNEXPECTEDLY INCREASED. HOUSING STARTS INCREASED 14.6 PERCENT TO THE HIGHEST LEVEL SINCE JANUARY.