**President Obama
*Gallup: With a 56% job approval rating, Obama has reached a new low in the Daily Tracking Poll.

*In a CNN poll conducted over a week ago, Obama has a 61 percent approval rating. Seventy percent call him a strong and decisive leader, down from 80 percent in February.

*The G-8 nations agreed to cut their emissions 80 percent by 2050, "but failed to reach an accord on shorter-term targets -- a setback that could have repercussions for a major meeting on climate change in Copenhagen later this year," the Wall Street Journal reports. "Their failure prompted a larger group of nations -- including China, India, and other developing-country polluters -- to backtrack from their own commitment to numerical targets they had planned to announce Thursday."

*Obama announced he will host a nuclear security summit in Washington next March. http://www.cbsnews.com/blogs/2009/07/08/politics/politicalhotsheet/entry5145531.shtml

*Future GOP talking point alert: it's going to cost $18 million to redesign Recovery.gov, the Website that's supposed to track recovery act dollars.

*Two new reports on the stimulus: USA Today says "billions of dollars in federal aid delivered directly to the local level to help revive the economy have gone overwhelmingly to places that supported President Obama in last year's presidential election."

Meanwhile, "according to an analysis by The New York Times of 5,274 transportation projects approved so far -- the most complete look yet at how states plan to spend their stimulus money -- the 100 largest metropolitan areas are getting less than half the money from the biggest pot of transportation stimulus money. In many cases, they have lost a tug of war with state lawmakers that urban advocates say could hurt the nation's economic engines."

*Cincinnati Enquirer explains why Biden is coming today: "The Factory Square development in Northside, which will turn a vacant factory into apartments and retail space, was suggested by the city for the vice president's stop because they say it is a good example of a how stimulus dollars can help rejuvenate a community."

*Health care development: "An income tax surcharge on highly paid Americans emerged as the leading option Wednesday night as House Democrats sought ways to pay for health care legislation that President Barack Obama favors, several officials said. ... In addition, key lawmakers are expected to call for a tax or fee equal to a percentage of a worker's salary on employers who do not offer health benefits." But Senate Democrats have "edged away from their goal of passing ambitious health care legislation by early August amid heightening partisan controversy over tax increases and a proposed new government role in providing insurance to consumers."

*Brazil's president twisted the knife, presenting Obama with an autographed soccer jersey weeks after a crushing defeat in the Confederations Cup.

**Sotomayor
*"A red-state Democratic rebellion based on gun rights may be the Republicans' best shot if they want to derail Sonia Sotomayor's nomination to the Supreme Court. But so far, even the National Rifle Association has yet to engage in a serious lobbying effort to pressure centrist Democrats to oppose Sotomayor," Politico reports.

*Washington Post: "Supreme Court nominee Sonia Sotomayor's opinions show support for the rights of criminal defendants and suspects, skepticism of corporations, and sympathy for plaintiffs alleging discrimination, an analysis of her record by The Washington Post found. And she has delivered those rulings with a level of detail considered unusual for an appellate judge."

*Wall Street Journal quotes key senators on Sotomayor, judicial philosophy and the Court.

**The Parties
**In an interview with the AP, Chuck Schumer predicted an immigration bill to be on the table by Labor Day. "Schumer said the way to get the bill done is to be very tough on future waves of illegal immigration. He declared himself pro-immigration and said the U.S. should encourage legal immigration and find some kind of path for people now here to find a way to legal citizenship."

*"Sen. Dick Durbin (D-Ill.) has taken the job of shadowing Senate Republican Leader Mitch McConnell (Ky.), mimicking a strategy from the National Football League, where teams often assign a "spy" linebacker to key on the opponent's offensive threat. McConnell's staff says they have noticed Durbin taking a more forceful approach against the Republican leader in recent weeks, culminating in a pointed reproach of McConnell on the Senate floor this week," The Hill reports.

*Roll Call writes that "change has come to the Republican Conference, where Sen. John Thune's (S.D.) rise to chairman of the Policy Committee and Sen. Lisa Murkowski's (Alaska) election as vice chairwoman of the Conference have marked a sudden shift to a younger generation of leaders."

*"Public anxiety over the economy, stocks in decline, rising unemployment and a string of expensive Democratic initiatives are all encouraging high-caliber Republicans to compete in 2010. The GOP is enjoying its best candidate recruitment streak in years," The Hill reports.

*"For a party that wants to dream big, Democrats keep tripping over the small stuff. This summer's agenda is historic: health care, climate change, financial regulatory reform. So why can't the White House -- with a 60-vote majority in the Senate -- win a simple fight over a $12 million bus security program targeted for termination?" Politico reports.

*WSJ: "Central Intelligence Agency Director Leon E. Panetta has told lawmakers that the agency 'concealed significant actions' from Congress, according to a letter released Wednesday from seven Democratic lawmakers. The letter also contends that Mr. Panetta said CIA officials have misled Congress since 2001."

**In the States
*IL Sen/Gov: Atty Gen. Lisa Madigan's statement yesterday: "Over the past few months, I've thought about how I can best continue to serve the people of Illinois. The progress we have made and the work that can still be done have been foremost on my mind. ... So today, I am announcing that I will seek a 3rd term as Illinois Attorney General."

Washington Times: "Rep. Mark Steven Kirk, Illinois Republican, has decided to run for President Obama's former Senate seat, after a top state Democrat turned down aggressive White House efforts to recruit her for a race shaping up to be a major battleground contest next year."

*NY Gov: "In an unprecedented move, Gov. David A. Paterson Wednesday night sought to end the State Senate stalemate by appointing former MTA chairman Richard Ravitch as lieutenant governor. However, it was unclear how having Ravitch preside over the Senate would break the 31-31 deadlock that has stalled passage of key bills for four and one-half weeks," Newsday reports.

NPR's Rudin points out one of those anomalies we love: the new lieutenant governor, if seated, would be the fourth statewide official who was not elected to that post (also Paterson as governor, DiNapoli as comptroller, and Gillibrand as senator).

*MA Gov: "Charles D. Baker Jr. announced yesterday that he will resign as chief executive of Harvard Pilgrim Health Care to seek the Republican nomination for governor, a move that infused more drama into an already chaotic political week and paved the way for a potentially momentous 2010 campaign," Boston Globe reports.

*Chicago Sun-Times on Lisa Madigan's decision: "Madigan did not relish a primary fight, and by staying where she is, she avoids one. She would have had to beat Quinn for the gubernatorial nomination and was not able to clear the field for a Senate bid."

*Attorney General Jack Conway (D) in Kentucky raised $1.3 million in the latest quarter for his Senate campaign, what they're calling a record for state Democrats. Lt. Gov. Dan Mongiardo (D) has not announced his total yet, the Herald Leader adds.

--Kyle Trygstad and Mike Memoli