TROPICAL STORM BONNIE IS THREATENING EFFORTS TO PLUG BP’S OIL LEAK FOR GOOD IN THE GULF OF MEXICO. VESSELS WORKING ON A RELIEF WELL ARE BEING FORCED TO EVACUATE WHICH COULD DELAY OPERATIONS BY 10 TO 14 DAYS. BUT THE BLOWN OUT WELL WILL STAY CAPPED. BONNIE IS EXPECTED TO MOVE INTO THE EASTERN GULF TONIGHT AND TOMORROW.

THE JUDGE WHO WILL DECIDE WHETHER ARIZONA’S NEW IMMIGRATION LAW IS CONSTITUTIONAL ISN’T SAYING WHETHER SHE’LL PUT THE STATUTE ON HOLD BEFORE IT TAKES EFFECT NEXT WEEK. IN YESTERDAY’S HEARINGS U.S. DISTRICT JUDGE SUSAN BOLTON REPEATEDLY QUESTIONED A JUSTICE DEPARTMENT ATTORNEY TO EXPLAIN HOW THE LAW INTRUDES ON FEDERAL AUTHORITY.

FEDERAL CHECKS COULD BEGIN SHOWING UP AGAIN AS EARLY AS NEXT WEEK TO MILLIONS OF PEOPLE WHO LOST UP TO 7 WEEKS OF UNEMPLOYMENT BENEFITS IN A CONGRESSIONAL STANDOFF. THE INTERRUPTION CUT OFF PAYMENTS OF 300 DOLLARS A WEEK TO 2 ½ MILLION PEOPLE WHO HAVE BEEN UNABLE TO FIND WORK DURING THE RECESSION.

NORTH KOREA IS THREATENING THE U.S. AND SOUTH KOREA WITH A “PHYSICAL RESPONSE” TO PLANNED WEEKEND NAVAL EXERCISES. TENSIONS HAVE BEEN RISING AFTER THE SINKING OF A SOUTH KOREAN WARSHIP BLAMED ON THE NORTH. SECRETARY OF STATE HILLARY RODHAM CLINTON, IN VIETNAM FOR A SECURITY FORUM, SAYS THIS TYPE OF THREAT ONLY HEIGHTENS TENSIONS.

6 PEOPLE HAVE BEEN KILLED AFTER A GREYHOUND BUS TRAVELING TO SACRAMENTO FROM LOS ANGELES CRASHED ON HIGHWAY 99 IN THE CENTRAL VALLEY EARLY THIS MORNING. THE BUS DRIVER SWERVED TO AVOID ANOTHER CRASH AND SLAMMED INTO THE CENTER DIVIDER AND A TREE ABOUT 2AM JUST OUTSIDE DOWNTOWN FRESNO. 6 PEOPLE DIED INSIDE THE DEMOLISHED BUS AND THERE ARE MULTIPLE INJURIES.

PRESIDENT OBAMA’S ADMINISTRATION HEADS TO COURT IN PHOENIX TODAY IN A SHOWDOWN OVER ARIZONA’S CRACKDOWN ON ILLEGAL IMMIGRANTS. DISTRICT JUDGE SUSAN BOLTON WILL HEAR ARGUMENTS IN A LAWSUIT SEEKING TO BLOCK ARIZONA’S TOUGH NEW IMMIGRATION LAW THAT’S SCHEDULED TO GO IN EFFECT 1 WEEK FROM TODAY.

CREW MEMBERS ABOARD SHIPS IN THE GULF ARE GETTING READY TO EVACUATE. A TROPICAL STORM BREWING IN THE CARIBBEAN IS DISRUPTING THE EFFORT TO PLUG BP’S RUPTURED OIL WELL. THE ROUGH WEATHER WON’T ENTER THE GULF FOR AT LEAST A FEW DAYS BUT THEY NEED SEVERAL DAYS TO CLEAR THE AREA. AND THE CAP MIGHT HAVE TO BE REOPENED, ALLOWING OIL TO GUSH INTO THE SEA AGAIN.

PRESIDENT OBAMA IS READY TO SIGN A BILL TO RESUME UNEMPLOYMENT PAYMENTS TO MILLIONS OF PEOPLE WHOSE BENEFITS HAVE LAPSED. THE HOUSE WILL VOTE ON THE BILL TODAY. 2.5 MILLION PEOPLE WHO HAVE BEEN OUT OF WORK FOR 6 MONTHS OR MORE AND HAVE SEEN THEIR JOBLESS BENEFITS LAPSE WOULD RECEIVE BACK PAYMENTS WITHIN A FEW WEEKS.

THE SENATE IS READY TO PASS LEGISLATION RESTORING JOBLESS BENEFITS FOR MILLIONS OF PEOPLE UNABLE TO FIND WORK. AT ISSUE ARE PAYMENTS AVERAGING 309 DOLLARS A WEEK FOR ALMOST 5 MILLION PEOPLE WHOSE 26 WEEKS OF STATE BENEFITS HAVE RUN OUT. THOSE PEOPLE ARE ENROLLED IN A FEDERALLY FINANCED PROGRAM PROVIDING UP TO 73 ADDITIONAL WEEKS OF UNEMPLOYMENT BENEFITS.

STOCKS OPENED HIGHER AFTER STRONG FINANCIAL RESULTS FROM APPLE, COCA-COLA, MORGAN STANLEY AND WELLS FARGO. BUT NOW INVESTORS ARE BRACING FOR TESTIMONY FROM FED CHAIRMAN BEN BERNANKE. CURRENTLY THE DOW JONES AND THE NASDAQ ARE BOTH OFF BY 10 POINTS.

A RELIEF TUNNEL SHOULD FINALLY REACH BP’S BROKEN WELL BY THE WEEKEND, WHICH MEANS THE GUSHER COULD BE SHUT FOR GOOD WITHIN 2 WEEKS. AFTER EARLY CONCERNS ABOUT THE LEAKY CAP KEEPING THE OIL BOTTLED UP, ENGINEERS NOW SAY THE RISK OF A BIGGER BLOWOUT IS MINIMAL. MEANWHILE THERE’S A REPORT THAT BP CEO TONY HAYWARD PLANS TO STEP DOWN IN SEPTEMBER AFTER A SERIES OF PR BLUNDERS.

SOUTHERN CHINA IS BRACING FOR ITS SECOND POWERFUL STORM IN LESS THAN A WEEK. THE DEATH TOLL FROM FLOODS AND LANDSLIDES CAUSED BY TORRENTIAL RAIN HAS CLIMBED BEYOND 700 WITH HUNDREDS STILL MISSINIG. A TROPICAL STORM IS EXPECTED TO MAKE LANDFALL THURSDAY AND THE GOVERNMENT IS TELLING PEOPLE TO STAY INDOORS.

AND OAKLAND IS CLOSER TO BECOMING THE FIRST CITY IN THE COUNTRY TO ALLOW LARGE POT FARMS. LAST NIGHT THE OAKLAND CITY COUNCIL APPROVED A PLAN TO LICENSE 4 PRODUCTION PLANTS WHERE MARIJUANA WOULD BE GROWN, PACKAGED AND PROCESSED. SUPPORTERS SAY IT COULD GENERATE MILLIONS OF DOLLARS FOR THE CITY IN TAXES AND CREATE HUNDREDS OF JOBS. OPPONENTS SAY IT WILL DRIVE SMALL GROWERS OUT OF BUSINESS.

OIL FROM BP’S BLOWN OUT WELL IS AGAIN SEEPING INTO THE GULF OF MEXICO. BUT THE GOVERNMENT SAYS THE SLOW LEAK ISN’T A BIG DEAL AND IS GOING AHEAD WITH BP’S PLAN FOR FINALLY SEALING THE HOLE IN THE OCEAN FLOOR. SMALL AMOUNTS OF OIL AND GAS STARTED COMING FROM THE CAP SUNDAY. BY NEXT WEEK CREWS COULD START BLASTING MUD AND CEMENT TO BLOCK OFF THE WELL FOR GOOD.

ELENA KAGAN WILL SOON BE A STEP CLOSER TO JOINING THE SUPREME COURT. THE SENATE JUDICIARY COMMITTEE IS MEETING TODAY TO TAKE UP KAGAN’S NOMINATION AFTER A WEEK LONG DELAY REQUESTED BY REPUBLICANS. DEMOCRATS HOLD A 12 TO 7 ADVANTAGE ON THE COMMITTEE AND HOPE TO CONFIRM KAGAN BEFORE THE SENATE’S AUGUST RECESS.

MILLIONS OF PEOPLE STUCK ON THE JOBLESS ROLLS WOULD RECEIVE AN EXTENSION OF UNEMPLOYMENT BENEFITS AVERAGING 309 DOLLARS A WEEK UNDER A SENATE BILL. DEMOCRATS HAVE STRIPPED THE UNEMPLOYMENT INSURANCE MEASURE DOWN TO THE BARE ESSENTIALS FOR TODAY’S VOTE WHICH IS EXPECTED TO PASS. THE HOUSE WOULD TAKE IT UP TOMORROW THEN SEND IT TO THE PRESIDENT.

FORMER ILLINOIS GOVERNOR ROD BLAGOJEVICH IS EXPECTED TO FINALLY TAKE THE WITNESS STAND AT HIS CORRUPTION TRIAL TODAY. BUT FIRST PROSECUTORS HAVE TO FINISH CROSS EXAMINING HIS BROTHER. YESTERDAY ROBERT BLAGOJEVICH TOLD JURORS HE HAD NO PART IN ALLEGED PLANS TO TRADE BARACK OBAMA’S FORMER SENATE SEAT FOR A CABINET POST FOR HIS YOUNGER BROTHER.

AFTER AN OVERNIGHT CONFERENCE CALL, THE FEDERAL GOVERNMENT IS ALLOWING BP TO KEEP THE CAP SHUT TIGHT ON ITS BROKEN WELL FOR ANOTHER DAY. THAT’S DESPITE A SEEP IN THE SEA FLOOR. BP IS PROMISING TO WATCH CLOSELY FOR SIGNS OF NEW UNDERGROUND LEAKS AFTER COAST GUARD ADMIRAL THAD ALLEN SENT A SHARPLY WORDED LETTER TO THE COMPANY ABOUT THE SEEP.

ROD BLAGOJEVICH’S BROTHER WILL TAKE THE STAND THIS WEEK ON CHARGES THAT THE 2 SCHEMED TO SELL A U.S. SENATE SEAT. ROBERT BLAGOJEVICH SAYS HE DID NOTHING WRONG IN CONNECTION WITH HIS BROTHER’S ALLEGED SCHEME TO GET A HIGH-PAYING JOB OR CABINET POST IN EXCHANGE FOR BARACK OBMAMA’S SENATE SEAT. THE FORMER GOVERNOR ALSO IS EXPECTED TO TAKE THE STAND.

A SPEEDING EXPRESS TRAIN HAS PLOWED INTO A STATIONARY PASSENGER TRAIN IN EASTERN INDIA, KILLING 61 PEOPLE. THE CRASH WAS SO POWERFUL IT SENT THE ROOF OF ONE CAR FLYING ONTO AN OVERPASS. THE ACCIDENT DESTROYED 2 PASSENGER CARS AND A LUGGAGE CAR, TURNING THEM INTO TWISTED METAL. OFFICIALS AREN’T RULING OUT SABOTAGE.

POVERTY IS THE MOST IMPORTANT FACTOR IN WHETHER INNER-CITY HETEROSEXUALS ARE INFECTED WITH THE AIDS VIRUS. ACCORDING TO A NEW GOVERNMENT STUDY, POOR HETEROSEXUALS IN POVERTY-STICKEN NEIGHBORHOODS WERE TWICE AS LIKELY TO BE INFECTED AS HETEROSEXUALS WHO LIVED IN THE SAME COMMUNITY BUT HAD MORE MONEY. RACE WAS NOT A FACTOR.

BP IS ENCOURAGED BY RESULTS FROM THE EXPERIMENTAL CAP THAT’S SHUTTING IN OIL FROM THE BROKEN WELL IN THE GULF. EVERYTHING IS HOLDING STEADY 17 HOURS INTO THE EFFORT. THERE’S NO EVIDENCE OF A LEAK IN THE PIPE UNDER THE SEA FLOOR WHICH WAS ONE OF THE BIG CONCERNS. PRESSURE CONTINUES TO RISE INSIDE THE CAP, A SIGN THAT OIL IS GUSHING INTO IT, INSTEAD OF OUT THROUGH ANY CRACKS.

FEDERAL AUTHORITIES ARE CONDUCTING THE LARGEST MEDICARE FRAUD BUST EVER IN 5 DIFFERENT STATES, ARRESTING DOZENS OF SUSPECTS IN SCAMS TOTALING 251 MILLION DOLLARS. SEVERAL DOCTORS AND NURSES HAVE BEEN ARRESTED IN MIAMI, NEW YORK CITY, DETROIT, AND HOUSTON, ACCUSED OF BILLING MEDICARE FOR UNNECESSARY EQUIPMENT, PHYSICAL THERAPY AND HIV TREATMENTS THAT PATIENTS NEVER RECEIVED.

A 3.6 EARTHQUAKE DOESN’T SOUND LIKE MUCH TO US CALIFORNIANS BUT A MINOR EARTHQUAKE SHOOK PEOPLE AWAKE IN THE D.C. AREA EARLY THIS MORNING. THE QUAKE HIT JUST AFTER 5AM. IT WAS CENTERED IN THE ROCKVILLE MARYLAND AREA AND FELT AS FAR AWAY AS PENNSYLVANIA AND WEST VIRGINIA.

SOME OF THE BAGGED LETTUCE FROM SALINAS-BASED FRESH EXPRESS IS BEING RECALLED BECAUSE OF POSSIBLE E- COLI CONTAMINATION. THE VOLUNTARY RECALL INVOLVES FRESH EXPRESS ROMAINE SALADS WITH USE-BY DATES OF JULY 8^TH THROUGH 12^TH AND AN “S” IN THE PRODUCT CODE. THE FDA SAYS NO ILLNESSES HAVE BEEN REPORTED.

AFTER THEY HAD TO FIX A LEAK ON A CAP DESIGNED TO PLUG UP THE GULF OIL SPILL, BP ENGINEERS ARE GETTING READY TO SEE IF THE NEW TOP IS ENOUGH TO CONTAIN THE GUSHER. THE TEST WILL INVOLVE CLOSING OFF ALL 3 OPENINGS THEN BP WILL MONITOR THE PRESSURE UNDER THE CAP. BP EXPECTS TO KEEP THE OIL TRAPPED IN THE CAP FOR 48 HOURS BEFORE IT KNOWS IF IT’S GOING TO WORK.

NEW APPLICATIONS FOR UNEMPLOYMENT BENEFITS FELL SHARPLY LAST WEEK AFTER GENERAL MOTORS AND OTHER MANUFACTURERS SKIPPED THEIR USUAL SUMMER SHUTDOWNS. THE LABOR DEPARTMENT SAYS NEW CLAIMS DROPPED TO THEIR LOWEST LEVEL SINCE AUGUST 2008.

PRESIDENT OBAMA TRAVELS TO MICHIGAN TODAY TO PROMOTE THE ELECTRIC VEHICLE BATTERY INDUSTRY. HE’LL ATTEND A GROUNDBREAKING CEREMONY FOR A PLANT THAT WILL MANUFACTURE ADVANCED BATTERIES FOR CHEVROLET AND FORD ELECTRIC CARS. OBAMA HAS PLEDGED TO PUT 1 MILLION PLUG-IN HYBRID ELECTRIC VEHICLES ON U.S. ROADS BY 20-15.

AND A FEDERAL JUDGE IN PHOENIX WILL HEAR ARGUMENTS TODAY OVER WHETHER ARIZONA’S NEW IMMIGRATION LAW SHOULD TAKE EFFECT THIS MONTH. IT’S THE FIRST MAJOR HEARING IN 1 OF 7 LEGAL CHALLENGES. THE LAW REQUIRES POLICE, WHILE ENFORCING OTHER LAWS, TO QUESTION A PERSON’S IMMIGRATION STATUS IF OFFICERS SUSPECT THE PERSON IS IN THE COUNTRY ILLEGALLY.

BP HAS TEMPORARILY HALTED DRILLING ON A RELIEF WELL MEANT TO PERMANENTLY PLUG THE GULF OIL LEAK WHILE IT GETS READY TO TEST A TEMPORARY CAP. BP IS DELAYING DRILLING BY UP TO 48 HOURS ON THE WELL THAT’S SUPPOSED TO REACH THE BROKEN ONE UNDERGROUND AND PLUG IT WITH MUD AND CEMENT. BP HAD EARLIER POSTPONED TESTING OF A NEW CAP BY 24 HOURS.

4 NEW ORLEANS POLICE OFFICERS COULD FACE THE DEATH PENALTY AFTER BEING ACCUSED OF GUNNING DOWN 2 UNARMED PEOPLE IN THE CHAOS AFTER HURRICANE KATRINA. 5 FORMER NEW ORLEANS COPS HAVE ALREADY PLEADED GUILTY TO HELPING COVER UP THE SHOOTING ON THE DANZIGER BRIDGE THAT LEFT 2 MEN DEAD DAYS AFTER THE 2005 HURRICANE.

OAKLAND CITY OFFICIALS AND POLICE UNION LEADERS WERE NOT ABLE TO REACH A LAST-MINUTE AGREEMENT YESTERDAY TO PREVENT THE LAYOFFS OF 80 OFFICERS. THE TALKS HIT AN IMPASSE OVER JOB SECURITY. POLICE CHIEF ANTHONY BATTS SAYS POLICE WILL NOW FOCUS ON RESPONDING TO 9-1-1 CALLS AND WON’T RESPOND TO MANY NON-EMERGENCY CALLS.

STATE AGENCIES IN UTAH ARE INVESTIGATING WHETHER ANY OF THEIR EMPLOYEES LEAKED SOCIAL SECURITY NUMBERS AND OTHER PERSONAL INFORMATION AFTER A LIST OF 1300 SUSPECTED ILLEGAL IMMIGRANTS WAS CIRCULATED AROUND THE STATE. AN ANONYMOUS GROUP MAILED THE LIST TO SEVERAL MEDIA OUTLETS AND LAW ENFORCEMENT AGENCIES, FRIGHTENING THE STATE’S HISPANIC COMMUNITY.

BP PLANS TO BEGIN TESTS IN A FEW HOURS ON THE NEW CAP OVER THE GULF OIL LEAK. WE SHOULD KNOW WITHIN 2 DAYS IF IT CAN HOLD BACK THE GUSHING OIL. BP WILL STOP SIPHONING OIL TO 2 SHIPS AND THEN CLOSE VALVES TO SEE IF ALL THE OIL SAYS INSIDE. BUT BP EXECUTIVE KENT WELLS CAUTIONS THERE’S NO WAY TO KNOW YET HOW WELL THE CAP WILL WORK AND ADDED THAT THIS IS “NOT SIMPLE STUFF.”

NEW YORK YANKEES OWNER GEORGE STEINBRENNER HAS DIED FROM A MASSIVE HEART ATTACK. EMERGENCY CREWS WENT TO HIS HOME IN TAMPA LAST NIGHT. STEINBRENNER WAS 80 YEARS OLD. THE YANKEES HAVE WON 7 WORLD SERIES TITLES SINCE HE BOUGHT THE CLUB IN 1973.

OAKLAND CITY OFFICIALS AND POLICE UNION LEADERS WILL GO BACK TO THE BARGAINING TABLE TODAY, TRYING TO PREVENT 80 OFFICERS FROM BEING LAID OFF. THE CUTS ARE SCHEDULED TO TAKE EFFECT BY 5 THIS AFTERNOON AND WOULD AFFECT ALMOST 10 PERCENT OF THE CITY’S 776 OFFICERS. THE NEGOTIATIONS HAVE HIT AN IMPASSE OVER JOB SECURITY. OAKLAND WANTS OFFICERS TO PAY 9 PERCENT OF THEIR SALARIES INTO THEIR PENSIONS.

FRANCE’S PARLIAMENT APPEARS READY TO APPROVE A BAN ON BURQA-LIKE ISLAMIC VEILS. IT’S A MOVE THAT FRENCH VOTERS APPROVE OF DESPITE CONCERNS FROM MUSLIM GROUPS AND HUMAN RIGHTS ADVOCATES THAT THE LAW WILL STIGMATIZE MUSLIMS. BELGIUM AND SPAIN ALSO HAVE SIMILAR PROPOSALS IN THE WORKS.

A NEW, TIGHTER CAP IS READY TO BE PLACED ON TOP OF BP’S BROKEN OIL WELL TODAY BUT THERE’S NO GUARANTEE IT WILL BE ENOUGH TO FINALLY STOP CRUDE FROM GUSHING INTO THE GULF. “TOP HAT 10” WAS ABOUT 300 FEET FROM CONNECTING WITH THE WELL SAID BP’S DOUG SUTTLES IN A NEWS BRIEFING. ONCE THE CAP IS IN PLACE IT WILL TAKE DAYS TO KNOW IF IT CAN WITHSTAND THE PRESSURE OF THE ERUPTING OIL AND FEED IT TO SURFACE SHIPS.

THE SWISS GOVERNMENT IS DECLARING OSCAR WINNING FILM DIRECTOR ROMAN POLANSKI A FREE MAN AFTER REJECTING A U.S. REQUEST TO EXTRADITE HIM ON A CHARGE OF HAVING SEX WITH A 13 YEAR OLD GIRL IN 1977. THE DECISION COULD END THE UNITED STATES’ 3 DECADE PURSUIT OF POLANSKI, UNLESS HE TRAVELS TO ANOTHER COUNTRY THAT WOULD BE WILLING TO APPREHEND HIM.

SUSPECTED SOMALI ISLAMISTS HAVE CARRIED OUT 2 BOMB ATTACKS IN THE CAPITAL OF UGANDA, KILLING 70 PEOPLE. THE EXPLOSIONS RIPPED THROUGH 2 BARS PACKED WITH SOCCER FANS WATCHING THE FINAL MOMENTS OF THE WORLD CUP FINAL. ONE AMERICAN IS AMONG THOSE KILLED AND PRESIDENT OBAMA SAYS WASHINGTON IS READY TO HELP UGANDA IN HUNTING DOWN THOSE RESPONSIBLE.

FIDEL CASTRO WILL APPEAR ON CUBA’S KEY PUBLIC AFFAIRS TV PROGRAM TODAY. THE 83 YEAR OLD CASTRO IS SET TO DISCUSS HIS CONCERNS ABOUT THE MIDDLE EAST. IT MAY BE THE MOST PROMINENT APPEARANCE BY THE FORMER PRESIDENT SINCE HE BECAME ILL IN 2006 AND HANDED POWER OVER TO HIS BROTHER.