. right now on the wall street journal report, making america good again, making choice decisions and a rocky path. pulitzer prize winning author tom friedma >> we either are going to have a hard country. >> investing in europe and in greece. why they see opportunity where others see disaster. and google is looking for answers. what's the next big tng and w will the searchh engine giant plplow the road ahead? we talk to google eric schmitt.. >> this is the wall street jonal report. now, mia bartiromo. >> hi, everyone, i'm sue

herrera. maria will be on witthe rest of the show in a moment, but first let's talk about some startling news with americica's economy. the final reading coming in at 1.3%, slightly better than expectations, and higher than the 1% previously estimated. that's still not very stng, however. a 3 or 4% growth rate is considered healthy. the market rapid up a dismal third quarter friday, the dow rising 140 points on thursday but breaking a three-day winning streak on wednesday on what else but the rries about europe. home prices rose for the fourth straight month in july. the s&p home price index showed an increase in the peak of thee summer buying season but prices are expeed to decline again and home sales are on pace for their worst year since 1997. two important products made their debut this week, boeing's

long anticipated 787 took off in washington state and was released to japanese airline aia. amazonon strig take o on apple gettingnto the tablet game. they are introducing the $199 kindle firire, which uses googls android operating system. now here's maria with more of the show. thomas friedman is the "new york times columnist and the co-aut r of "that used be s" good to have you on the program. >> good to be here. thank you. >> you described yourself as a frustrated optimist. what did the united statessed to be that we aren't anymorore? >> thehe book has a backward looking title but is really a forward-looking book because we believe america had a formula for susuccess that we've gotten away from. that was built on five piars. educate our people up to and beyond what the cucurrent levelf technology is, whether it's the

cotton gin or the laptop computer. second, have the best infrastructure, roads, telecom. we track the most energetic and talented risk takers. have the best rules on emphasis and have the best govevernment funded research to push out the best technology. that was our formula for success, and what argued at the beginning of the end of the cold war, we got away from that formula. our real challenge, and i think our real opportunity,, is to ge back to who we were that used to be us. >> everybody is having this discussion right now. it really is the conversation of the day, because at this moment in time, while we are looking at what we used to bend you write about it so eloquently, the rest of the world is growing. so you'veot china embarking on those values, and india and brazil. so can america come back and

shift values back to the foundation o public and commerercial life? do you thi it's possible to restore those lost values? >> i do, marie a but it's going to take some real leadership because we've had a breakdown also over theast 12 years. we shifted from a generation that really believed in save and invest and was inspiredy values. we shifted to a baby boom generation that was much more borrow and spen and its values were much more situational values. just do it. do whatever the situational l z situation allows. this ia leadershi challenge, not just a government stimulus challenge. >> it seems the people are frustrated. the american p people want chan. they're trying to figure out whereoes america fit into this new normal. how do we push ourselves to innovate? you've got the russians in the kosovo project right outside moscow, they want to become the new silicon valley.

you've got t the chinese producg solar panels not to use but to sell to the rest of the world. do you think that we are going to be able to have a new sputnik moment? >> you know, our vision in the ok is actually not a new sputnik moment per s a new moon shot, as it were. our vision is very simple. we want an america of the 21st century to be to the world what cape canavaral was to arica in the 196060s. what do we mean by that? cape canavaral is the place where we launched our moon shot, our single project. i don't think that's the way forward. what we want is for america to be a a launching pad because we have the best education and the best infrastructe, the best rules, the best rule of law, the most government-funded research, that everyonee in the world wil want to come and launch their moon sho we want to start something, fix something, rair sgrkromething, innt something, that if we can be that lauaunching pad for everybody, there will be plenty

pof jobs for the butcher, the baker, the candlestick maker. >> you make a good point because this is a way for policy to come together with businessss. erybody talks about integration. we have the brightest andhe best coming to our universities, but then because of immigration policy, we've got to send them right back to wherever they were born, and then they use the knowledge that they gained in the u.s. and they create these great things and innonovate outside of the u.s. you write about the divisive stalemate of the political leadership. all we hear about is this bickering in washington. >> we hear the country is no more divided than by politics or politicians. there is plenty of research to back thiup. there is a huge middle that feels vastly underrepresented. what we also argue is we need a grand bargain rightnow, the one obama and boehner trieded to strike, that basically has three parts: cuts spending, raises revenue and invests in our

formula for success. we need to do all three. we need to do them in the right sequence so we get the bump in the economy going forward, but that's what we have to do. our argument in this book is very simple. we're either going to have a hard decade or very simple. we're either going to get back to work with no shortcuts. it will be hard decad but it will make upfor two dades where we really partied. i think we'l'll unleash all the natural strengths of america. we're just going to be kind of a big, long jan for the rest of the century. >> you told me a couple of months ago that the american people wanant it, though, erybody out. they want to see a new pararty emerge. it's not the tea party, but it's some party that is disruptive. do you really think we're going to see new leadership come out of that momentum? >> well, what we argue in the book, myself and my co-author, is that weon't have a candidate. we have an agenda. an agenda is just formula for success that we think requires

cutting, raising revenue and investing in our future right now. any candidate, whether it's barack obama or one of the repuicans now in the imary who advances thatt agenda, we ae for. what we are also warning, though, is that we think a lot of other people are for that, too. an if the two parties don't produce candidates that push th agenda, we predict they're going to get a shock. we think the radical center will eventually find a cdidate who will. >> once again, tom friedman, your finger on the pulse of what's happening in the world today, great to have y onon the program, tom. >> thanks, maria. wel seyou soon.. >> tom friedman of the "new york times." up next on the wall street journal report, not everyone thinks investing in greece and the rest of europe is such a bad idea. who is putting moneney inn the eurozone and why. and later, google on the go. how the search giant plans to harness the power of mobile phones. maria opposites down with executive chairman eric schmitt. we'll be right back.

qatar is a tiny country with a big bankroll thanks toan abundant supply of gas and oil. its sovereign world fund has been busy of late investing in, of all places, the eurozone and even greece. maria spoke recently with the country's prime minist about where he sees opportunity. >> qatar holdings has spent

heavavily on a variety of holdis in t the sector zone. tell us your thinking on this. why are you investing in this area, uthe ur he zone, during a time when everyone is so worrird about default? >> i think we did this durg 2008, and it looks like we did well. and wbelieve that it is companies which have value and they are down because all the maet is down, not because they have something wrong with them. and for us there is a possibility to build a stake in big companies in germany, france, britain, and this is what we did especially last two months when the market was really in a problem. we spent around 5 to 8 billion euros in the eurozone in the last eight weeks. we believe that the market will stay in this shape for a long

period and we think not because all the market is bad, but i think the politicians have to work together in europe and in the united states to try to solve the problem. it's not all technical. it's partly a political roblble. the eurozone, if you see the economy and you see the debt and you compare it with, for example, the united states, you see there is a way out. we are doing something in greece now. we are underegotiation with them in a deal. we believe tha greece has been some companies or some propties is undervalued and maybe it is good opportunity now for entry level. i believe that greece will have difficulty for many years, but i believe that they will come out of it. >> and does anything change for you if, in fact, we were to e a default? you look at what the mkets are expecting, 98% chance that

greece daults. are you expecting a default? >> default is in our consideration, but i have the hope that europe will not allow this to happen. >> what about the banking sector? i know youou have stakes stitil barkleand other banks. do you think the banks need to raise more capital? >> they need to raise more capital. not all of them, some of them, they neeto raise more capital. they need also to focus in their expees, to reducee their expenses. >> are you interested in banks in the u.s.? >> we did some banks, especially -- i think we did in bank of america. we have a share in bank of america, maybe over 1%. last fewonths we've stuck by them. >> do you think they need to raise capital? >> they say they don't need to raise capital. this is what they said. >> what has been the impact of the eurozone upset to the economy of qatar?

what are you expecting in terms of the qatari economy in terms of growth this year d next? >> this year it will be in excess of 16%, definitely, and next year i thinke will do the same. the challenge will be afterwe complete all our oil and gas sectors, we have to find where will be the growth and how can we increase e the growth in the country. when it comes down, it has to be a soft landing, because what has happened 20%, 18% last six, seven years in greece, that's not normal, but that was needed to develop all our sectors in qatar. now we will develop their infrastructure, and thawill make a good amount of income, but after that, we have to think about the serces.

because we need to have the growth, but whwhat percentage o growth is the normal one? is it 3%, is it 5, is it 8? we think it's 8% for qatar, later for long time is the right level. >> f real stability? >> s. >> 8%. 16% is really amazing, actually. is the underlying strategy to invest in foreign places to link foreign asset diversification with support for foreign policy? in other words, you know, many people are wondering if you're seeing any inflation as a result of the sales of l and g, and is this another way to allocate capital international? >> no, this is in excess of incomerom the gas and oil in qatar. our strategy is that we have to use that excess of money by invevesting capital, soo we hav test from the oil and gas, and

secondly, within ten years from now, we should he enough income to run the country out of the oil and gas. >> youour excellency, thanks so much for your time. up next on the wallstreet journal report, does google get it?? it?? executive chairman eric [ kristy ] my mom is well...weird. she won't eat eggs without hot sauce. she has kind of funny looking toes. she's always touching my hair. and she does this danci finger thing. [ male announcer ] with advanced technology from ge, nonow doctors can diagnose diseases like breast cancer on a cellulelar level. so that women, like kristy's mom, can get personalized treatment that's as unique as she is. [ kristy ] she's definitely not like other moms. yeah, , my mom is pretty weir. ♪ thisis is not how witness prprotection works! when we set you up with that littttle hardware stor we dididn't intend for your face be everywre. but fedex office makes it so easy. not only do they ship stuff, they print flyers, brochures -- everythihing i need to get my me out there.

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. . to google is to search. now thee senate anti-trust subcommittee is searching for answers about the dominance of a company with the market share more than ice that of its next competitor. with offerings as diverse as mobile phones and restaurant reviews, google's executive chairman eric schmidt told maria how the search site is getting down to business. >> we've shohown over and over again that if we can get the answer to the user faster, zero clicks or one click away, it's better for them. our competitors do the same stuff. >> but do you have to really be more conscious of sort of how you approach business an how

you expand given the law off numbers that the c company has gotten much bigger? it is reminiscent of where bill gates was with microsoft so many years ago and that's why he was also targeted. >> but google has not been microsoft andever will be microsoft. we just run under a different set of principles. it's true that because of the role google plays, we're much more careful with that. my view is as long as you're on the side of the customer, and remember, our products are mostly free, so it's hard to complain a about pricing, i thi we'll be just fine. >> that's a great point, the products are free. >> we could pay you t to use it. >> such an importantpoint. let me ask you about some of the products and what the stragy is. you recently acquired motorola ability. is this s about patents? talk about the assessment. >> i think it's reallyy about both. if you look at motorola, it's a fantastic company. we looked at the future products

they have, and it's really amazing. we're very happy with their road map and what they're doing. there's some understanding of the hardware, better software and so forth. there is alsothis patent portfolio which isis second to none, a we face significant patent challenges from people who wanto stop our products, and it's a bit too much. so i would argue that the motorola acquisitiois pro consumer simply because it means customers will hav more choices. >> whe does mobility go next? for a long time, you've been saying mobility is the biggest trtransion, the next big thing, however. w many legs does it have? how sustainable is this and where do you see the gwth coming from mobility next? >> think about when you're at a setting and you and i are in a lot of the same places. everyby has a phone. if you took their phone, they would go absolutelyy crazy. we're already dependent our phonones in a way we never woul have thought of 20 y years ago when motorola and others invented the cell phone.

our algorhythms and cell phones can help you with so many things. there are a whole gegeneration apps that will combine all those features, modern gaming and society in a way we only would have imagid a few years ago. >> going back to the patent, what's your take on the new patent law that was just signed in? a few peopople were debating th, that the administration went the wrong way on this. that it's going to cutenture capital returns and it's also going to make it hararder for th start-ups. >> we generally support the patent reform bill but it did not gogo far enough on a lot of important things. so it was a net improvement. the fact of the matter ise still have a problem in our industry where too much overbroad patents arare being ud to shut down a lot of companies. a company like google can afford to buy a company like motorola, but what about a start-up who

can't enter the market because it's so patentful? >> i have loved being on google plus. what's the strategy for google plus? is this to go after facebook? what is the growth strategy here and why do google plus? >> google plus last week wass opened up for general use. wee seen fantastic growth the past twoys. we think we're on our way. what it is is you having an identity on the web and you telling us through various mechanisms who your friends are. you have to choose to do this, you can choose not to, you can remain anonymous, which is very important. if you choose to use google us, you can get more personalized search results, more youtube recommendations and those sorts of things. that's its primary reason. what we also want to do is invent new ways in which people can usee networks. we have a product called hangout, which is a quick way to put together a small social video chat. >> what's your take on the economy right now? where does the growth for google come from in the world in terms of geography?

>> google is doing well, and i've learned we le in our own little ecosystem, that people are moving from non-internet to th internet, they're moving dollars and pounds and euros and so on. i ththink that wl continue for a long time. it's true for most of the tech companies. we may be relatively insulated from the generaral shenanigans that have been going on around the world. e policymakers have not yet figured out a way to get sustained growth above some baseline.. western growth is essentially flat to small with the exception of germany, whereas asia ntinues to outgrow us. we need to fight this, we need to make sure we're competitive. ultimately in america, jobs are created by private companies. we need to focus on wt do private companies need, how do they get growing faster, what t will cause them to hire more emoyees? >> it's basically creating an environment for business so they can create job eric, it was great talking to you. thanks for joining us. >> absolutely. up next on "wall street

journal report," what will have an impact on your money this next week. and a look at the stock market end of week. in america, we believe in a future

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here are the stories coming up that may impact the skmarkts move your money this week. a look at health manufacturing which moves the index of that sector. total auto sales of last month are out on monday as well.

tuesday federal chair ben bernanke speaks to congress's joint economic committee, and wall street's eyes turn too silicon valley as apple is expected to announce the launch of the iphone 5. on friday, they launch the employment figures. we'll find out if the e economi lost or gained in the last month. ththat's the show for today. thanks so much foror joining me. maria will be back next week. her guest and economist jeffrey sachs. keep it here where wall street keep it here where wall street meets main str it's about building cars in america.

it's all about jobs. it's all about respect. security. the american dream. [ jamaul ] good jobs in tough times. a chance to move up and do better. [ delaunta ] excellent healthcare. [ caletha ] beautiful benefits. what they used to call the american way. it still works here. [ jennifer ] not a singlgle layoff of a u.s. manufacturing worker. [ glen ] not one. not one. doing things the right way. quality. [ jimmeka ] building cars that americans want. [ jamaul ] right here in america. hyundai is an all-american success story.. ♪ i'm a curious seeker. hyundai is ai am a chemistry aficionado... diphenhydramine. magnesium hydroxide. atheletes foot. yes. i'm a people pleaser. if elected, i promise flu shots for all. i am a walking medical dictionary. congratulations virginia. inflamed uvula. i'm virginia. i'm a target pharmacist and i'm here to answer your questions.