had this to say. >> i think that overall most of the countries that we are focusing on are quite strong. for example, we focus on the six key markets outside of hong kong which is asia, malaysia, singapore, india, and china. they had good gdp in the first half of the year. some of the other countries, small countries will look at the function regarding -- >> coming up, what began as these two graduate internet stars team up. we'll look to google and speak to the man who saw its rise to to top, eric schmidt. that is next.

welcome back. live from cnn hong kong and london, you're watching "world business today." google has long had a reputation of unveil iing new products and pushing innovation, but the company's executive chairman eric schmidt says any company can take steps toward creating a culture in a nation, any company. he spoke to cnn's kyung lah in this week's executive insider. >> reporter: the story is well known. it's the late 1990s, and two grad students named larry and sergei come up with an idea, to improve the way we search on the internet. they start google, a company

which today is also, of course, a verb. it's grown into a tech empire, including cloud-based service, global and even social networking. eric schmidt lead google as ceo from 2001 to 2011. but earlier this year he handed back the google reins to google founder larry page. >> as you can see from the june results larry is going to be an excellent ceo. he's very focused, disciplined, sits in the office all day to get our products to work as freely as possible. this is going to free me up to work on government policies, global issues and frankly i can travel more than he can. >> reporter: google has tried so many different things. is failure something that going sl not afraid of? >> i should hope we're not afraid of. if you only have winners, then

you're obviously not trying hard enough. almost everything has been very successful and we relatively quickly clean up the things which don't work out because we need to take the resources and put them on something else. it's part of our innovation culture. >> reporter: is it something important for other ceos twhachg interview to pay attention to? >> it's easy in google's case bus we don't have the capital outlay that traditional people do. we can try something and if it doesn't work, we haven't spent a billion dollars and have a huge capital loss. so to some degree we get to play by different rules. what i can tell you is every industry can adopt a more aggressive innovative culture by listening to young people and ask the question why again and again why can't we do this, we have a future competitor coming up here, why are we not working with that. and if executives took that, which i think they should,

they'd run their businesses much, much more aggressively and much tighter for the benefit of them. >> reporter: three people are either in or out of the business who you personally admire. >> secretary treasury rubin. he was able to deal with all the political stuff around him but was able to artist late a really clear set of principles of things he actually pulled off. he maultly took america into -- into surplus for the first time in many, many years. that's case where you have all of this stuff rolling around you and you have good judgment. another one is one who works at google and is the father of the internet. he and bob kahn invented it but what vint did is he spent the entire rest of his life of pushing, pushing, pushing in his friendly way for adopg because he didn't have any power.

there's an example of someone who's a missionary. he understands. and then i'm obviously a supporter and admirer er of president obama, first because of his race, what he's faced in his life, but second because he approacheses problems with the kind of discipline and diligence that you would want a u.s. president to do. >> he's a member of u.s. president obama's on-sight technology. andrew? >> on that note we'll wrap it up. you've been watching "world business today." we'll be back. for now i'm andrew stevens in hong kong. >> i'm charles hodson in london. you're watching cnn, the world news leader.

good morning. et it is tuesday, august 2nd. this is your a.m. "wake-up call." i i'mally velshi joining you live from new york. let's start with a story. it's tropical storm emily. take a look that weather track. there's chance it could pick up strength and approach south florida by friday. we're going to talk to rob marciano about that in just a few minutes. for those of you in florida, you may want to change some of your plans. the senate votes on the bills today with just a few sand

granules left in the hourglass, and all the dithering and delaying didn't come for free. this might make you spit out your coffee or trip on your treadmill, so get ready for this. the price tag, more than 1 $.7 billion. that is how much extra interest the government will have to pay investors because it had to sell treasury bills to finance its operations in the middle of this mess. if the mess had been worked out even two weeks ago, that money would have been saved. now in the bizarre world of washington u you spend money to save money. here's some wisdom from gloria bo borger who is part of a panel. >> look. if you look at this down the road, we have some other landmarks that are coming up in november and again in december, and he said, look, this could frame the debate for the white house for 2012. if republicans are only for cuts and entitlements and not for any

kind of revenue, that's something that our public opinion show the public does not support. >> yes, i was part of that panel late last night too. so did the tea party act like hobbits or terrorists? well, critics can't have it both was. terrorists have much smaller feet, for instance. democratic congressman mike doyle from pennsylvania was quoted as saying the tea party acts like terrorists threatening to blow up the economy,ent quote. now, some republicans didn't appreciate the analogy. senator rand paul says he refers to himself as a freedom fiert. anderson talks with him a few hours ago. >> some people would argue that by add 2g trillion more in debt to our country that that adds a temporary inconvenience. >> has this been a victory, do you think, for the tea party? >> in some ways, yes. we didn't win the legislative

battle. i didn't get what i want. but i would say the public debate now, everyone comes up to me and says whether you're with me or not, they say the debate is all about cutting spending and before it was where to spend the projects, where's the ear mark s going to go. >> it's disappointed. let me e say this. i want to give kudos to the tea party members because they pretty much had their way. >> the second man you heard from was -- the second man you heard from was the chair of the congressional black caucus. his name is emanuel cleaver. pew researcher surveyed americans about the debt ceil and they asked them to sum up the whole thing in one word. the bigger they are, the more they were used. you see ridiculous, disgusting, disappointing, stupid.

one of the big ones was assine was in there, not a whole lot of kudos in there. 72% used negative words to describe the talks and disgust was one that crossed party lines, a whopping 2% uttered something positive. i'd be curious what the 2% are thinking. take a look at this kid. british authorities say 18-year-old jake davis is the notorious hacker e known as taupeaire. he's accused of several crimes including a conspiracy to take a british agency offline. look at this little guy. that's him? they say dave's laptop had a folder with passwords of 750,000 people on it f how did that happen, jake? he's free on bail, not allowed near the internet arngd he gets to keep the cool shades.

ford says it's aware of three fires and one injury from the problem. we're talking about f-150s, f-250s, and some lincoln blackwood, modelle years 1997 to 2003. ford says dealers will fix the problem for free. time now for your punch line. after all that to real a deal on the debt, someone's going to take the heat. who is that going to be? >> obama changes from yes, we can, to yes, we cave. president obama turns 50 this week. if you'd like to get him a gift he's registered at bed, bath, and can i still blame bush. >> the president has got to be pretty upset about what's taken place here. >> i want to thank the american people. ite been your voices, your letters, your e-mails, your tweets, your phone calls that have compelled washington to act in the final days. >> let me just stop you right there. you're not piping this dirt on us.

>> time now for a check on world markets. the nikkei and the hang seng both closed lower. right now the ftse and the dax are also down. let's go right to kristie lu stout live in hong kong for a market check. good morning, kristie. >> good morning, ali. the initial relief over the resolution of the debt deadlock, that's given way to pessimism as they focus on the fundamentals and those are weak manufacturing data from the u.s. which exporters around here in asia and a strong yen which is hurting japanese exporters. it is a similar story in europe. all the gains yesterday, all in the reverse. it's a very weak session across the board. >> we got first quarter results yesterday -- or today, i guess, from toyota. we've been hearing from the major auto manufacturers in japan after the earthquake and tsunami. what's toyota looking like? >> yeah, i hate to say i've about got more gloomy news for you. toyota has just posts its first

full quarterly result ares since the deadly earthquake and tsunami back in march. ali, the numbers don't look good at all. toyota made a net profit of $14 million in the first quarter. that's it. to put the number in per expect fiv for you, a year ago they posted $2.25 billion. the next headline sounds like it came straight out of a movie, robots in, humans out. >> they plan to replace half a million worker with robots over the next three years and it soud like the stuff of sci-fi, but it's apparently true. terry told the china business news he plans to use up to 1 billion robots to do simple work. now fox con, this is a company that most likely makes your ipod, maker of computer components. it's been hit by a spate of

suicides. activists have blamed those deaths on tough working conditions so you've got to wonder about this latest announcement. >> kristie, thanks so much. let's go back to rob. what's it like. >> a couple of obstacles, that's a good thing, ali, it has to overcome before it gets to the mainland, specifically florida. it's got to go through the caribbean right now. it's 250 miles southeast of san juan and puerto rico. it's banging around in the northeastern caribbean islands be tu waves are only 40 miles an hour. barely a tropical storm. it's got a ton of heavy rain with this. this thing, already, though, is much, much larger than don, and we think that will be the case going forward. hates to go over the island of hispaniola which has many mountains and that may knock it down a touch. this is our forecast computer

model which shows the track going toward the dominican republic and eventually toward the southern bahamas and likely toward the state of florida, at least the east coast. the models this morning have nudged a little bit farther to the east, so not guaranteed to make landfall in miami, that's for sure. so just prepare right now mentally and then we'll update this forecast going forward, but certainly the southern tip of florida all the way up to the carolina coast and even the northeast will have to watch this one very, very carefully and be prepared to act. heat indiceses, up and over 105 again and skpangd the heat across the central plain. our streak continues in dallas, texas, oklahoma city, little rock, hazy, hot, and humid, a little bit of relief across the northeast with the cool front coming through yesterday, but i use the term lightly. i will be # 2 degrees in new york city and 96. chaurk detroit, you'll probably see delays later on today. minneapolis, morning thunderstorms as well. all right, you know our producer here's in atlanta, i

try to find you bits of science that surprise u, and this one, quite frankly, a little bit disappointing. apparently there's a researcher, ali, has discovered that letting off steam by swearing is not healthy. you know, the long held belief that if something goes wrong -- >> yeah, yeah, expletive, expletive. >> that makes you feel good. >> not healthy? >> no. it apparently makes you more healthy. i'm going to have to change my actions if i want to live longer. >> what are you supposed to do? do they give you an obvious thing? you know if you smoke and you try to smoke they tell you to occupy yourself, eat carrots or apples. what's the thing? >> breathe. >> really. instead of swearing i just -- >> i feel better. >> i'm going try it all day and report back to you. >> let's do that. >> good to see you. rob marciano. >> lady gaga comes to the defense of hillary clinton.

i can tell you it's got nothing to do with her job, every bit to do with her sense of style. first you've got to see this. quote of the day. this deal is a sugar-coated s satan sandwich. find out who said that. ♪ ♪ introducing purina one beyond a new food for your cat or dog.

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this is your a.m. "wake-up call." back to the quote of the day, quote, this deal is a sugar-coated satan sandwich. representative emmanuel cleaver tweeted that. she told diane sayier she was going to say it. there's a recipe for satan sandwich that was posted on wiki.org.

butter, bread, a slice of ham, mayo, two spoonfuls of bleeping darkness. i'm serious. i didn't make that up. the debt deal, was that a bunch p of broken promises? here's jon stewart's take. >> they must have forgot to ask reduction forged by rational adults there are revenue increases closing the bucket gap while preserving government functions. let can we roll the clip of that, please? can we have the -- there must be revenue increases in this compromise because i was told just how crucial that was to this negotiation. >> we would have revenues. >> revenues should come from the people who can most afford them. >> serious cuts balanced by revenues. >> if you don't have revenues it means you're putting more of a burden on the people who can least afford it.

>> really? all right. [ bleep ] just roll the clip. >> reporter: no tax increases if you will. >> there are no tax revenues in this. >> i was hoping that clip wu going to be a lemur stuck in a tub of mayonnaise. >> time now for your political ticker with tim farley, host of morning briefing on sirius xm live from washington. we get the point, tim. there are no representative news in this, and theoretically, that committee, that super powerful committee might add some but nobody believes that's going to happen. that's in the future, tim. let's talk about today. the senate going to vote on this bill today, right? they're going to do it. >> it's a done deal. it's pretty much going to pass. there can be nothing quite so inspiring as gabrielle giffords showing up as she did last night. that was truly an amazing moment. but skungs, lemurs, whatever animal you want to choose,

whatever's in the room and all the work you had before associated with this process, it goes through today, gets signed, that extra billion or so in interest rates, it all happens. the key i think you hit on whork's going to be on this super committee, this six-member committee because they have a very difficult time ahead of them they're going to make suggests that the cob is going to either have to accept or they're going to see triggers go sbee effect which will cut spending automatically. i'm really, really fascinated to see who the choice is going to be. >> i think they're clamoring to be on it. but you know the danger, the number of deficit hawks and people i spoke to, if they don't get it done in those triggers, activate cuts across the board, those are not going be strategic. let's talk about something else that's supposed to be happening today at the senate. supportedly a hear on the strategy going forward in afghanistan. is that still happening? >> here we are almost on the tenth anniversary of 9/11.

people are still getting shot at, people are dying, and unfortunately because of what has been quoted as debt ceiling-related craziness, although that's an off-the-record nonatributable quote there are people who can't get this work done evidently. so chewing gum and walking at the same time might be too much of a challenge but the senate arms committee is pushing this off until after the recess. >> all right, what's going on? what does lady gaga have to do with hillary clinton? i don't know. bill gunn said something about hillary clinton and her predisposition to often wearing pant shoe. lady gaga felt on "the view" she had to come to the defense of the secretary of state. >> and she just sort of said it's okay? pants are already? >> she said she's got more important things to worry about. she's got more important things to worry about than whether or not her wardrobe