**President Obama
*According to Gallup, "Obama averaged a 61% job approval rating for the month of June, down from his 65% average in May, and one point below his previous monthly low of 62%, recorded in March."

*AP: "The G-8 meetings may lack the intrigue of Obama's sit-downs earlier in the week with Russia's top leaders, or the emotion of the reception the first black American president surely will get in Ghana Saturday. But they won't lack for ambition, on the surface at least, as the world's most powerful officials discuss the problems threatening the planet."

*One focus of the G8 Summit is climate change. But en route to Italy, Robert Gibbs "declined to say whether Obama would endorse the drafted G-8 statement on climate reduction goal," Newsweek reports. Instead, he said "they are focused more on getting a bill through Congress, not on what an international summit can accomplish."

*In Russia, some Obama aides "said they were struck by the low-key reception here, especially when compared with the outpouring on some of his other foreign trips," the Times reports. "Even Michelle Obama, who typically enjoys admiring coverage in the local news media when she travels, has not had her every move chronicled here."

*Dan Balz argues, as the AP did earlier this week, that "Nothing may be more important to public assessments of President Obama's leadership than the state of the economy, and at this point there are political warning lights flashing." Senior officials tell him that they think the stimulus plan is on track, "despite criticism from Republicans and grumbling from some Democrats. Which is why they say it is premature to decide whether a second stimulus package is needed."

*Is the problem in the states? USA Today reports on a GAO report that says, "many states are using the federal funds for short-term projects and to fill budget gaps rather than spending on long-term improvements."

*The Hill notes that MoveOn.org "was so perturbed" by Rahm Emanuel's remarks about health care in the Wall Street Journal "that even after the White House issued Obama's statement, the liberal group sent a message to its massive e-mail list encouraging supporters to 'call the White House switchboard and tell them you're disappointed in Chief of Staff Emanuel's comments supporting the 'trigger.'"

**Congress
*"Al Franken, the funnyman who wrote the best-seller "Rush Limbaugh Is a Big Fat Idiot," was sworn in as the junior senator from Minnesota on Tuesday, without doing one single funny thing. ... Franken stepped into the ornate Senate chamber to take his oath of office in a charcoal gray suit from Men's Wearhouse, Bible in hand, surrounded by political allies eager to cast him as a serious addition to Congress," L.A. Times reports.

*Murtha: "The Justice Department this week filed criminal charges against a defense contractor who has received millions of dollars worth of earmarks from Rep. John Murtha (D-Pa.), bringing together two parallel cases that are swirling around a host of firms with ties to the Congressman," Roll Call reports.

*House Majority Leader Steny Hoyer "said Democrats are open to looking at a second stimulus package, but said it's still to early to judge the success or failure of the $787 billion package passed earlier this year," The Hill reports.

*"Even as they continue to look for a smoking gun in the record of Supreme Court hopeful Sonia Sotomayor, leading Senate Republicans acknowledged on Tuesday that they have had a difficult time building widespread opposition to President Barack Obama's first high-court pick," Roll Call reports.

*Harry Reid, meanwhile, "abruptly waded into health care reform negotiations Tuesday, telling Finance Committee Chairman Max Baucus (D-Mont.) that Democratic leaders had serious concerns about a bill that would tax health benefits and nix a strong public insurance option."

*Milbank sat in on the Judiciary subcommittee hearing on the BCS, led by Sen. Orrin Hatch.

**Sarah Palin
*Politics Daily's Carl Cannon: "Sarah Palin's rambling abdication speech was hard to follow, let alone acclaim, but in her abrupt announcement that she is withdrawing from public office, the Republican governor of Alaska was hardly the only player in a 10-month drama who demonstrated a lack of self-awareness. ... But the true villains in this political morality play may have been the press."

*Washington Post's Kathleen Parker: "...can we stop pretending that Palin is interested in anything other than her own ambition? Can we also stop nodding assent every time she says the media are to blame for her self-inflicted wounds? The media invented Sarah Palin."

*Gallup: "Palin herself has argued that she has been unjustly attacked by the news media, and most Americans seem to agree. The new poll finds 53% describing the news media's coverage of Palin as 'unfairly negative,' while just 9% say it has been 'unfairly positive' and 28% say it has been 'about right.' "

*Politico: "Leading Republicans on Capitol Hill see Sarah Palin's bombshell announcement last week that she'll resign as Alaska governor as a potential win-win for her and their party. Their thinking: As a private citizen, she'll be free to raise big bucks for 2010 candidates and at the same time restore her credibility and stature within the bruised party."

**Sanford: State lawmakers tell CNN that resignation no longer seems like a possibility. "If he decides to open his mouth again, and starts telling us about other revelations, then maybe something will come up," said Democratic state Rep. Boyd Brown. "But right now I don't see it."

**Campaign Stuff
*Campaign Finance: "Decades of lawmaking and court decisions restricting the flow of cash into U.S. elections are on the verge of coming undone, placing President Barack Obama in the unexpected position of presiding over the possible demise of the modern campaign finance regime," Politico reports.

*Marco Rubio is slowly picking up steam with endorsements from key conservatives, but his second quarter fundraising report did not impress -- $340,000, compared to an expected $3 million haul from Gov. Charlie Crist. "It's hard to call him credible when he only raised that much in his first quarter. ... No candidate wins if they're outraised 10 to 1," Republican consultant Jamie Miller tells the St. Pete Times.

On the Democratic side, Kendrick Meek raised about $1.2 million for his Senate campaign over the past three months, AP reports.

*CT Sen: Greenwich millionaire Tom Foley (R) raised $530k in 26 days; Rep. Rob Simmons (R) raised more; and state Sen. Sam Caligiuri raised $125k, the Hartford Courant reports.

*NY Sen: The Hill: "Rep. John Lewis (D-Ga.) says that GOP New York Rep. Peter King was 'off the wall' in calling Michael Jackson a 'pervert' " referring to a now-viral video clip of King from Sunday. Roll Call: "A spokesman for King said Tuesday that the office has gotten 'several threatening messages and turned them over to police.' "

*SD Gov: "Rep. Stephanie Herseth Sandlin (D-S.D.) is running for re-election to her House seat, passing up an opportunity to run for governor of South Dakota," Politico reports.

*In an interview with the Union Leader, Attorney General Kelly Ayotte confirmed that she had committed to serve out her full term when reappointed. "I would say that at the time of my reappointment, no one could have predicted the political future. The political landscape has changed drastically since then. Clearly, the intent was to continue serving," Ayotte said, "but I think in fairness no one could have predicted the changes that have occurred on the political landscape."

*Concord Monitor: "Ayotte's announcement yesterday didn't clear the field of other Republicans who are openly looking at the race. Former congressman Charlie Bass and one-time gubernatorial candidate Ovide Lamontagne both reaffirmed yesterday they are still considering running."

--Mike Memoli and Kyle Trygstad