february 9th, iran produces new information about its nuclear program. in our signature segment, we'll take you to india, hot spot for tech entrepreneurs. why some americans are headed there. >> sure, we'd be making much higher salary in the u.s. we'd still make it there. this is a once in a lifetime opportunity. >> what growing income inequality means for business. next on pbs "newshour weekend." >> pbs "newshour weekend" is made possible by --

good evening, thanks for joining us. after two days of meetings with international atomic energy agency officials, iran today agreed to seven new steps to shed light on its nuclear program, including aspects long thought to be military in nature. the next round of negotiations between iran and the world's leading powers will take place in vienna the weeks after next. we'll have more on this right

after the news summary. turning to afghanistan, there's word tonight the obama administration will announce a new $300 million aid package to that country tomorrow. the money will go to farmers, promote international trade and improve opportunities for university students. the gains once foreign troops leave. peace talks between assad regime and rebels that seek to overthrow it tomorrow. hundreds had been stranded with little food and scares medical supplies evacuated from the besieged city of homs. for a second straight day aid workers came under fire. married owners of a bangladesh factory where 112 factory workers died in 2012 have surrendered to authorities. the two who were charged with homicide in december were denied bail in jail. if convicted they could be sentenced to life in prison. bangladesh is the second leading

exporter behind china. in europe today swiss voters narrowly approved quotas on immigration from european union. 2 million of the 8 million residents foreign born, many of them muslims. one campaign in support of the quotas that predict aed a woman under a veil, with 1 million soon. edward snowden used inexpensive piece of software to gain access to security documents he later leaked. the downloading of the documents they say should have been detected easily. this according to a report in the "new york times." during an interview, greenwald who published hinted others leaked to him as well. i have to doubt there will be other sources inside the government who see extreme wrongdoing and are inspired by edward snowden. a major meat recall is under way, recalling 9 million pounds

of beef parts distributed in california, texas, illinois, and florida. federal officials say the diseased beef, including liver, ox tail and tripe was shipped at the first of the year without being properly inspected. officials say the meat should not be eaten. there may have been another major security breach. barclays launched an investigation following newspaper reports that personal information of 27,000 of its british customers was stolen. confident information about customer's earnings, health and passports. sunday mail which broke the story said data worth millions of dollars on the black market. now, more about those talks going on this weekend between

international atomic energy agency and iran, talks ultimately designed to make it impossible for that country to produce a nuclear weapon. joined now from washington from david albright, one of the leading experts on iran's program and president of science and international security. so without being too technical for a wider audience, what's noteworthy about these steps iran agreed to take. >> there are several steps that are quite interesting. one, there's a couple steps that have to do with this iraq heavy water reactor that's been in the spotlight. it appears iaea is not getting the information it needs from iran yet. two of the steps are so they can get that information so they can then inspect the reactor effectively. there's information, one of the steps centers on what was an old secret laser enrichment facility iran shut down prior to 2004, operated outside of the iaea's

inspection system and a violation of their safeguards obligations. the facility is not thought to be involved in laser enrichment but they like to go there to see what's going on. still does laser research and development, so it's going to get information about the activities and then visit the site for the first time since 2008. probably the most significant step is to try to open the door a little bit on getting iran's cooperation on the military dimensions or alleged military dimensions. iran has agreed to provide information they need to talk about exploding or trillion bridge wire experiments and developments. again, that's a part that if used in a certain way is very important in the development of a nuclear weapon. they have information that suggests the most likely purpose

of these experiments that were done by iran were related to a nuclear weapon. iran has denied that and said, no, no, it's nonnuclear purposes. they have additional information that has cast doubt in their minds on iran's statement so it's an outstanding issue that needs to be addressed. if iran wants, it could actually use this opportunity in the next couple months to change its story. one possibility could actually say, yeah, yeah, was related to nuclear weapons development and open the door to a more fruitful set of discussions about military dimensions of its program. at the same time it could decide to continue with its previous story, that it had nothing to do with nuclear weapons and could again lead to nothing. >> so it seems there's two tracks here. one is to try to figure out what iran used to do in terms of trying to develop a nuclear weapon or weaponize it.

then there's another track about what they could do in the future. >> that's right. they are linked, though. it's very hard if you're an inspector or analyst to say we can give you confidence there's not a nuclear weapons program today, if you don't know about the past. you don't know what was done. you don't know what they accomplished. you don't know where they did it, who did it. therefore that whole infrastructure created could pop back into existence in secret and move forward on nuclear weapons. so the history is very important. i think they have made it clear in this case and others that it really can't give iran a clean bill of health until it understands the history. >> in the weeks leading up to these talks, it seems positions have gotten more hardened in terms of the u.s. wants the entire nuclear program dismantled and iranians want all the sanctions gone.

>> the u.s. is willing to give on the size of the program. it's willing to accept the size of the program that accepts nuclear reactors. that's a major concession on the part of the united states. certainly the iranians want all sanctions removed. but the trouble is that's not going to happen unless they make concessions on the u.s. side and haven't shown willingness to do that. the chance of these negotiations working right now is high but it's seen as an attempt. sides to change. >> david albright joining us from washington. thanks so much. >> thank you. and now to our signature segment, tonight the growth of high-tech entrepreneurship in

india. instead of fleeing for silicon valley or new york, many indian tech engineers, including those educated and worked in the u.s. are deciding to build businesses in india. they are focusing on the growing indian domestic market but also looking to compete globally. some young americans are following them there. i recently reported from mumbai and bangalore. >> in india, known as silicon valley, where leading companies outsource jobs to educated indian workers, who earn much less than their american counter-parts. that lesson hasn't been lost on indian high-tech entrepreneurs. many of whom have faced visa hurdles in the u.s. despite rolling power outages, rampant congestion and developing of country, many indians are returning home after being educated in the united states. they are benefiting from a

culture change around startups but think india presents new opportunities. >> going after upstarts. >> an entrepreneur and investor in early startups devoted to helping software startup companies in india. >> the culture here is inherently risk averse. when people say go get a job at a big company. that's what we prepared you for and put all this love, atexas, money, school into you. what's changed in india so people are now turning towards startups as opposed to big established company. >> at least one company that has a billion dollars valuation. that's changing perception. you can go from a zero to hero in a startup. there's examples of that. since there's examples, there's really smart people willing to

do that. >> we met entrepreneurs willing to take that changes. co-founder and ceo of a travel startup used to browse itineraries already taken by people, customize them and take their own trips. >> moving to the world of travel planning, a billion dollar plus business. >> 36-year-old left a job at google in new york to launch the company. >> we love how fast it moved. honestly, the toughest position my wife and i have ever taken, aside from marrying each other was leaving new york. >> why come back to the india. >> travel planning is a hard, complex problem. i didn't think it would be solved in three month's time. given the approach we were taken, very human intensive and engineering intensive.

the one geography i could think of where those come together, india. >> the $2.6 million he's been able to raise from investors has gone a lot further in india. instead of a small time in the u.s., has he a staff of 17, including 10 engineers. he said thanks in part his silicon valley-like perks he hasn't lost a single engineer in three years. >> you walk in. there's no cubicles, foosball, free food. free food costs exceptionally less in india than anywhere else. >> when it dos developing a software product, it's truly a flat world. location is irrelevant. >> we're not focused on indian market alone. indian market is only a quarter of traffic of our users. the markets in india allow you to take on global markets more effectively. >> but marketing his business

here, especially when competing with orbitz, price line, expedia just isn't as easy. >> in reality travel is exceptionally hard. i wish somebody would have told me when we started but here we are. >> after four years in india, he and his wife and five-year-old daughter are moving back to the united states. he thinks more people will discover his business once he's able to build partnerships with other travel sites. >> i love being in india, onbut i love about the in the u.s. as well. as the business arises, i see myself going back and forth. i think you'll see high-tech companies out of india much more often than you've seen in the past. >> other entrepreneurs like this man who did graduate work in new york said india's rapidly growing middle class is too tempting a target to resist. by some estimates, they will quadruple over the next decade or so. perhaps as many as a billion

people. >> it's a very exciting time to be in a young business in india. >> ceo of bang bazaar.com, online marketplace conceived by his brother who worked for amazon in seattle. the 6-year-old company allows indians to compare, obtain mortgages, car loans, credit cards and even insurance online. >> when this opportunity came up, i hadn't planned it or timed it that way but it was a great idea and i decided to make the jump. that's how i ended back in india. >> the company has grown to 200 employees with offices in three cities. he says being in an developing economy gives the ability to innovate rapidly. >> for example, in six months we've actually launched a product with a large bank, out in the market. now, could we do this in america? i think it's arguable? could i go to citibank, hey, i have a platform that will help

move business faster, might be more difficult. >> the decision means he could be close to family members he might otherwise see once a year. he wants to be part of his generations growing awareness and embrace of entrepreneurship. >> feel that, a, i can get a job with a bank or insurance company or microsoft or google if i wanted to. the rein i'm doing this, i've done that. i want something more challenging. >> a small community of american entrepreneurs have pulled up stakes and moved to india as well. you said graduates from the university of pennsylvania, one attended harvard law school and they dropped out to start zoom, zip style car service in india. >> the size is staggering. >> urban density is the biggest predictor of car sharing success. if you're looking at large, dense cities where people don't

own cars, the fact that car sharing that not been done in india already is shocking. >> it's estimated there will be 68 cities in india with a million people or more by 2030. that's compared to nine today in the united states. since launching almost a year ago zoom has sold out every week and the company is hoping to expand to mumbai and new delhi. >> aside from the business you made personal sacrifices to be here. you could be making money possibly on wall street, in the u.s. is it a risk worth taking? >> there's no question that it's worth taking. sure, wooeld we'd be making much higher salary in the u.s. being separated from our parents. for me, being separate freddie my girlfriend for a year and a half. that's the opportunity cost. it's worth it. the scale of the opportunity, this is a once in a lifetime opportunity. >> no question.

i think it helps. we are still young. we're both under 30. we're not married. we were very fortunate in the fact for us it was the perfect time in our life. >> they are mitted to being in india for at least the next couple of years. >> crazy how efficient it is. you come back to us in five years, there's a chance at least we could be a billion dollar company and we could be hugely disrupting the way that people in india cities get around. >> besides those challenges, unreliable electricity, congestion and corruption, the biggest worries are the same ones startups face no matter where they are based. >> most startups fail. the numbers are stacked against you when you decide to take on a venture like this. is there anything different about the entrepreneurship climate here? >> much higher. >> in 2012 only one indian company among 500 firms acquired by the biggest tech companies in the world. >> as this wave of

entrepreneurship in india increases, what does the u.s. stand to lose? >> you know, there are irritants like these issues but i think in some sense u.s. has positioned itself as a fountainhead p. >> many from silicon valley venture capital firms to international tech giants like microsoft are betting on indian entrepreneurs and on india itself emerging as a huge center for innovation. meet an entrepreneur in india using cell phones to find people better jobs. how well do you know fast four history? visit us online. while the conversation about income inequality in washington takes on political dimension, to businesses it's all about the numbers, how much consumers do

or don't spend. the latest suggest the middle class isn't spending as much as it used to, certainly not near as much as the rich do. here to explain what the income divide means for businesses, in your story you look at refrigerators to hotel rooms, what are businesses telling you? >> basically things are pretty stagnant in the middle of the economic sphere, if you will. basically upper end restaurants doing well, middle tier very different story. i looked in the restaurant space, olive garden and red lobster having a hard time whereas capital grill is doing very well. they are owned by the same company, darden. it's very, very different trends. it's not as if people don't like the food at olive garden or red lobster, we're seeing the same thing in hotels, casinos, stores, loman's going out of business, jcpenney having a hard

ti time. >> why are rich spending more and milling class spending less and less? >> i think a couple of things. primarily people own assets like real estate or stocks are doing very well. stock market up, housing market big rebound in 2008. if you're justing depending on salary, though, there's really no growth in in come, that's a big factor. cost of education going up. what are middle class going back on, going to restaurants, shopping for clothes, that kind of thing. i think that's really driving it. >> what's the long-term consequence of the purchasing power of the middle class eroding? >> the problem is the economy can grow based on consumption growth at the very, very top. i'm putting aside questions of fairness or social mobility, the

economy can grow, but it can't grow that fast. lets say the economy is growing 2%, which isn't enough to bring down unemployment very substantially. it can grow at that pace. we'd like to see growth at 3, 3.5% like we saw in the '90s. that's not going to happen when the bottom p are left behind. >> the bottom 80% is spending the same as the top 5% are. >> the growth. basically we found working with economists at washington, st. louis, federal reserve of st. louis, that basically if you looked at how much of consumption growth came from different categories, basically the top 20% consumption increased about 17% whereas consumption has only grown about 1% from the bottom 80. that increase is really driven by households. >> thank you so much.

>> great to be here. >> this is pbs "newshour weekend" sunday. finally today marks the 50th anniversary of the beatles first appearance on the ed sullivan show, one of the most watched moments in television history. with them photographer harry benson. >> reporter: they just heard they were number one in america the same as ed sullivan wanted them on their show. while beatles celebrated with a pillow fight, a young fleet street photographer was there to capture the image. when the fab four arrived in new york half a century go, harry benson was there again on the same plane on assignment to record the moment. >> got off the plane. i tapped ringo and said, ringo, they aren't coming around. he went and told them to come around. >> and you got the picture.

>> i got the picture. >> not bad. >> if you like it. >> captures a moment. >> ladies and gentlemen, beatles. >> the band liked and trusted harry benson. they invited him onto the ed sullivan show and on the rest of their u.s. invasion. a photo shoot sets up with a young untested boxer known then as cashious clay didn't go well. >> what was interesting he wouldn't talk to me after that, made us look childish and stupid, all your fault. >> now 50 years on, he's showing his pictures at the london gallery and remembered the assignment that changed his life. >> music story overnight became a news story. >> there you were front seat.

>> yes, i was. >> join us online and on hair on the "newshour." we'll be bringing you the latest on the next round of syrian peace talks. that's it for pbs "newshour weekend" i'm harr harry. thanks for watching.

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