., working on investment in i.t. and, in fact, lived in china for several years working on investment, is that correct, and how does the chinese market compare to the u.s. market? >> guest: oh, who. [laughter] that is -- wow. that is a conversation that could probably take hours. yes, i have spent quite a bit of time here in the united states. in fact, i was the cfo of global internet services for pccw which is one of the largest telecommunication companies in asia where i did a lot of joint ventures for them in china. you know, i think, i think the entrepreneurial spirit in china is starting to evolve. you know, one would say probably one to two decades ago it's primarily still in the manufacturing and low tech, perhaps more hardware than software, but i see that trend starting to, starting to shift where quite a bit more are now into software, more of the high-tech investments. there is always a little bit of a competition between india and china in that regards where india's known for the software technologies and

our focus is purely i.t. we do not do biotech or health care. we have seven partners on the investment side. all we do is i t investments. that incorporates digital media all the way to mobile and telecommunications, semiconductors of materials, software, the whole gamut. >> is it fair to say that most i.t. venture-capital lists are based in california? is it rare to find one in the washington area? >> the mac is obviously silicon valley. -- the mecca is obviously silicon valley. we do have pockets out here. this region is quite prolific in terms of ideas and talent. we have a lot of government labs. there is a lot of talent in the research and labs here. there are a lot of great universities here like the university of maryland school of engineering and virginia tech. we do get to see a lot of young entrepreneurs. >> what do you look for when you may be recommending an investment in i.t.? >> we are always looking for great ideas, fantastic risk- takers, in high-growth and emerging markets. those are a given. particularly in this time, we look f

i.t. services team withrow beats forecasts of a first quarter rise in profits. i.t. revenue weakened for the third straight quarter with the company giving a cautious guidance for the current quarter. still, we're seeing signs of stability in its business. shares in the mumbai-based company are looking like this. they are off by 176%. let's now head live to bangalor and speak to the executive director and cfo at withrow. sir, good to see you. let me ask you, how is your orders pipeline looking? >> i think so far quarter one was concerned, we're in a strong quarter with all kinds of operational excellence delivered on guidance numbers, improved operating parameters and we are guiding based on the fundamentals we have, which looks better than when we started the quarter or started the financial year. therefore, we have given a guidance which is about $2,035 million which is 0.2%, despite the fact that the economic environment is still a little cautious in terms of what the outlook is looking

when we scored the health i.t.provisions, we included the effects not just of the direct financial transactions to encourage the adoption of i.t., but also the indirect effect on the number of medical tests order. we concluded that there would be fewer tests ordered and procedures done. you could see -- we incorporated the effects of that on future medicare spending. we also incorporated the effects of those changes on non-medicare patients. we looked at the effect on cash compensation. we incorporate behavioral responses. >> it is a specific estimate, though, because we do not know how much of the arrival of arrivali.t. -- rival of health i.t. would do. it is hard to judge. the sort of thing is included. we do try 8 to bring all the evidence that we can on health care quality. it depends on what you are looking for. we do cost estimates and then we try to provide information larry king. we do not agree -- and for a nation where we can. we do not report on how healthy americans will be. that is beyond our scope. th

in asia, india's number two i.t. services company's emphasize beats expectations and raise is its full year profit forecast. >> i'm ross westgate in europe. in the end, the g-8 has debated the currency question after france supported china's call for change. >> yeah. they couldn't resist. after 40 days and 40 nights, the new general motors will emerge from bankruptcy today as a leaner company, but under the government's thumb. >> right. welcome to the program. we just got some data out of the uk. we've got producer prices, june, nsa output prices, minus .2% on the month. the consensus was for it to full minus .8%. sorry, that is weaker than the consensus from minus .8. that is the weakest since dose 2001. the core output prices minus .8% on the month. that is weaker than expected. that's the lowest annual rate since june 2004. and the nsa output prices, down 11% on the year. the consensus was for that to be mean was 12.2% on the year, so slightly better than expected, and the weakest rate since april 20201. james shu

thatould mean big trouble for hundredsf thousands of small to medium sized firms that depend on i.t. for loans. c.i.t.s the nation's largest supplier of facting, a lifeline of the retail indtry. if c.t. goes under, the national retail federation's mallory duncan ss shoppers will fl the impact. >> if suppliers cannot provi merchaise, then that means that t retail shelves are esntially empty. you walk into a retail stor now, you'll see there isery little merchandise. but we know that with the christmas season cominup, it's imrtant that that merchandise there to help the economy g back on ack. >> rorter: but many small nks say don't worry, ty can pick up the ack if c.i.t. goes under. chricole at the independent community bankers associion says his mbers are chomping at the bit. >> i tnk most needs will be met. i think there y be a transitioneriod. there may be a period e commities banks will need to get up to speed with the kds of lending-- that very specialized lending th they do. i thk we can do that. >> reporter: wl street doesn't seem too worried aut the impact of a c.i.t.ankruptcy

s assistant secretary for i.t. the purpose of the briefing was to provide the committee an update on a thorough analysis the v.a. was undertaking to review their i.t. portfolio. they revealed there are a number that are behind schedule, and more than 50% over budget. we asked for the list of these programs along with the 2009 and 2010 costs for them, more than three weeks have passed and the v.a. has yet to show the costs for the projects. that's an example of how increasing the funding if the checks are in place to get the checks where they're supposed to go. it's not just increasing the fund but making sure the veterans benefit increases funding, to make sure the bureaucracy is held accountable. and that the money flows down in a timely manner. and then, the national cemetery administration. i want to note the increased funding for this amount. $20 million above the level of $230 million. that will go a long way to meet the current needs and giving the ability to look at cemetery expansion in areas where expansio

from videoconferencing to new voice-over i.t. phones, eryone needs to beomfortable with t technology. let me put you through to t conference room. one ment, please. >> we commied a l of time to training and coaching. go to these users' homes and making sure they're -- they have theirach and their wospes figured out is one thing. after about two weeks evebody was comfortablewith videoconferencing and they wer mfore with document shing and soon and so forth online. they took toit a lot faster and soon than i aicipated. >> allof which leads another g benefit, happy employees. >> what's happening as a result of telecommuting is i'm saving a whole day's work byot aveling back and forth. that extra five to eight hours i savextra every week i get to work on a novel that'v been working on for quite a long time >> a yar ago i had a 70-mle comme. i spent 30 years doinghe 70-mile commute. still, this is great opportuny. i love it. >> eve couple of weeks the staff t ther at a local panera bread to catch up and brainstorm about up cming proje

budgets continue to be tight yet river bed's products makes things move faster, saves i.t.udgets money, i think that's a good reason to own it, as well. a lot of money, a lot of cash on the balance sheets for sisco, ibm, and hewlett-packard, and they'll be making acquisitions before we see any meaningful recovery in i.t. spending. >> jim, i think you're right. i didn't think the quarter was that bad. i've got to tell you, sometimes we get these tech companies and they believe they're going to explode. river bed was fine, i would be a buyer here. i agree with your judgment. holly in virginia. holly? >> caller: hey, cramer, this is holly from an achievable dream, a big boo-yah to you from all of our student body here in virginia. >> i love it. i love it. the reporter that we met there when we were doing university of virginia was the first guy to kind of understand that the show was watched by younger people, which i think is terrific, congratulations to learning about money, most of the classes in the country do not teach about money, you get to college, you have no idea wha

a small business owner, alexis if baltimore owns a small software production company that oversees i.t. for the city of baltimore. he competes against larger companies for business. he wants to do the right thing. so he has health insurance for his employees. he has 20 employees. and he pays half of the costs for the employees' coverage. well, some of his employees came in and said, look, can't you help us with family coverage. and he would like to provide fell coverage for his employees. he just can't afford to do it and be able to compete against larger companies. he goes on to tell me his premiums are increasing much faster than what is happening with the larger companies he has to compete against. he doesn't have the options that the larger companies have. well, the status quo discriminated against small companies and their health care plans. what we need to do in health reform is deal with these issues. and that's why, mr. president, i come to the floor. i know there's different views as to what we need to do with health care reform. i would hope the one option that would not be o

i.t. is your big winner. and if they have indeed delivered a good set of numbers, they've upped their guidance, as well, for the next quarter in dollar terms. so the entire i.t. pack is holding out quite well. meantime, more updates coming in on r & r and reliance industries is gas stocks. the government gets involved and we understand that r&r is cleared for an early hearing is what government and reliance industries also are sort of supports after that letter that was written to the prime minister seeking for an early hearing. the supreme court will be hearing the case on september 1st now. meantime, sunfarm has been sul canning in trade. it was down 5 odd percent even though the management is expecting a 5% growth in fy '10. the company says they believe accusations are without medicine the class action lawsuit. similar is the case with sahansan and sulon energy. the numbers came out which is why you are seeing dampening in counters. meantime, the market just sort of struggling with that 455 mark while i.t

we're seeing some life there, we're starting to see i.t. spending. but generally what we saw in the second quarter was kind of a recovery, inventory restocking. think about notebooks, netbooks, consumer desktops. >> great to have you with us, patrick wang, from wedbush morgan. we are monitoring the conference call. it is underway, actually gets underway in a half an hour's time. jim goldman will be on the call and he will be tweeting for us and we'll check in live in the second half of the program. >> melissa, one of the great reactions tomorrow is if guy's right and it does start to show a pullback, but still like intel long term, they will crush the volatility. they will take every bit of premium not just the july, but even the august that was already coming in, they will bring that even lower, the protection you can bite in the form of puts if you're willing to go long intel will be extremely cheap for the next month, next quarter. >> so keep that? mind if you're watching it and hold it. >>> next trade, goldman sachs flexing its muscle. certainly

so from now until then, i.t.s a very good sector to be in and it's very hard to be short and it's one of the leading sectors now. we're very much overperforming in that area. >> well, we talk about cash on the sidelines. how much potential do you think is wrapped up in that theme that you pick out there? and what will it take to draw that out? >> i think one key factor is expectations of when the fed starts to raise interest rates. because if i'm sitting in a money market fund at the moment and my yield is somewhere between 0 and 25 basis points, i'm happy to do that, sit with that position on the expectation that yields may go higher in the near term. now, i think what is going to drag money out of money market funds is the increasing expectation that the fed is going to be behind the curve and it's only going to move very slowly. and i think a central case, if you ask the question, when does the fed start to raise interest rates again?? when do we go from this abnormally easy monetary policy, i think we're talk

when we scored the health i.t. provisions, we included the effects not just of the direct financial transactions to encourage the adoption of i.t., but also the indirect effect on the number of medical tests order. we concluded that there would be fewer tests ordered and procedures done. you could see -- we incorporated the effects of that on future medicare spending. we also incorporated the effects of those changes on non-medicare patients. we looked at the effect on cash compensation. we incorporate behavioral responses. >> it is a specific estimate, though, because we do not know how much of the arrival of arrivali.t. -- rival of health i.t. would do. it is hard to judge. the sort of thing is included. we do try 8 to bring all the evidence that we can on health care quality. it depends on what you are looking for. we do cost estimates and then we try to provide information larry king. we do not agree -- and for a nation where we can. we do not report on how healthy americans will be. that is beyond our scope. t

it's agree for i.t., this is what we needed.. we need to fold up with goldman sachs. it was the man as far as the financials, these guys are truly the man as far as the tech. >> let's bring in an analyzi, webb busch morgan analyst, patrick wang is on the line. great to have you with us. >> thank you very much. >> you heard the trader on the desk. did that mean with a 10% gain, does that translate into the -- what do you recommend? >> i think guys short of term, i think taking profits probably makes sense. longer-term investors will like what's happening, but clearly intel showed up to the all-star game, too. >> in terms of the conference call in about half an hour's time, what is the number one call that you will ask the management? >> i'll give you two. first will be what do we think about p.c. demand in the back half of the year. we saw a nice inventory correction. the question really is what sell-through it, is what management thinks and how they think of the back half. i think the second thing obviously will be the gross margins. we saw a nice recovery in the seco

we're waiting to see corporations put money to work in terms of information technology, i.t. and r&d. so far we're not tenecessarily seeing the business there in microsoft's quarter. >> microsoft has come a long way here in the last month. psych soft has been rallying. microsoft today is trading 25 1/2 on the close. they basically had to hit the green with their tee shot. the expectations for microsoft heading into the earnings release were extremely high. is microsoft trading 23 1/2, 23.75, wherever it will come in tomorrow. where do you believe the next move is? i tell you i believe maintaining microsoft at this level is the trade. going forward you'll see microsoft within the next six months with a print back above $30. >> i guess that means you would put new money to work right here. >> absolutely. i believe in microsoft, believe in the model. i believe in technology and i believe the entire model of the market is getting better. >> maria, i think he owns the stock ch. i get that sense that he's going to stay with it. >> joe, thank you. great weighing in. we appreciate it

got was ainancial system that is still working danaate, "nightly business port," washington >> susie: i.t. is inching oser to bankruptcy e small business lender is expected to file f chapter 11 protection as on as tomorrow. and that will leave hureds of thousands of firms scraming for financg. erika miller has more abt the impact of a c.i.t.'sailure on small and dium sized businesses. >> reporter: the diffence of just o letter makes all the difference. citi is too big fail. c.i.t. is not. the vernment has decided that c.i.t.s not important enough to the financial system to se and the coany is expected to file for bankruptcy as soon tomorrow. that cld mean big trouble for hundreds othousands of small to medium sized firms that depend on c.t. for loans. c.t. is the nation's largest supplier of ctoring, a lifeline of the retailndustry. c.i.t. goes under, the national retail federati's mallory dunc says shoppers wi feel the impact. >> if suppliers cannot prode mercndise, then that means thathe retail shelves are sentially empty. if you walk into a retail ste now, you'll see there very little

when we scored the health i.t. provisions, we included the effects not just of the direct financial transactions to encourage the adoption of i.t., but also the indirect effect on the number of medical tests order. we concluded that there would be fewer tests ordered and procedures done. you could see -- we incorporated the effects of that on future medicare spending. we also incorporated the effects of those changes on non-medicare patients. we looked at the effect on cash compensation. we incorporate behavioral responses. >> it is a specific estimate, though, because we do not know how much of the arrival of arrivali.t. -- rival of health i.t. would do. it is hard to judge. the sort of thing is included. we do try 8 to bring all the evidence that we can on health care quality. it depends on what you are looking for. we do cost estimates and then we try to provide information larry king. we do not agree -- and for a nation where we can. we do not report on how healthy americans will be. that is beyond our scope. t

there is hope that appear moore -- peter moore, their i.t. specialist, is still alive. they were kidnapped more than two years ago in may, 2007. 14 men wearing uniforms of the iraqi police drove up, surrounded the building, taking the hostages to a secure location. four month there was no news. in november there was a video. three months later, another. they called for the release of nine shia iraqis being held by the americans. one year ago, allen asked the british government to try to get them home as soon as possible. it was a low-profile approach. although the families spoke out from time to time, but nothing until last month. thousands of suspected insurgents are being held in iraq and are slowly being released. june 7, one of the nine referred to in the appeal was freed. 12 days later, the two bodies were recovered and they had been shot sometime earlier. there is no known connection. there is a hope that peter more is alive with a chance of being released. >> with me now is our diplomatic correspondent, paul adams. as this news is digested, i suppose we are tryin

bullishness and what they're expecting going forward if they are in fact putting more money to the i.t. budget. and microsoft's going to see that right off the bat. the revenue fought fourth quarter at microsoft is $13.1 billion. and again, that looks a little light here because the estimate calls for revenue of $13.37 billion. revenue coming in at 13.1 billion for the quarter and 34 cents a share for the quarter. this is the company's fourth quarter at microsoft. seasonally i do think that the fourth quarter is a little lighter, but i want to get dan's buy-in on that in a moment. i know that dan morgan owns microsoft. so we'll check in on that in a moment. but the revenue a little lighter, 13.1 billion versus the estimate which calls for 14.37 billion. and 34 cents a share versus an estimate of 36 cents a share. we are looking at the stock trade down as you can see down about 2 3/4%. right out of the gate, once these numbers are all released. and the stock of course has been very strong today, and it's been strong leading up to these numbers. so i'm unclear whether this is actually a

so far, no comment from i.t. on the repor of a funding de. >> suzanne: joining me now wh hithoughts on that c.i.t. deal as well as his outlook for t stock market is stuart schweitzer, global rket strategist at jp morgaprivate bank. stu, welcome back to the program. >> thanks so muc sues n. >> suzan: tell me about this c.i. deal. how importt was it tod, do you think, in continuing is overall potive tone that 've been seeing in stocks? >> oh, i think it was really important. c.i.t. hasbout a milon customers in ameri. and so fincing from c.i.t. is really important partularly as you said a moment ago to smaller businessesll across america. >> suzanne: not only the c.i.t. deal but beer than excted earnings were ao out ere again. they have been for the last week or so. helping to sort of set this ce tone for the maet. when you talk about earnings, yore not really talking aboutrofits beingetter th expected. you say we should focus on revenue. tell me why revenue is so important to this story right now. >> sure thing. i

they have given everybody a primary care physician, and then used the health i.t. system to coordinate care among specialists. this hassed added virtue with the electronic medical record, researchers can go back after the fact and find out which procedures actually work and which don't. the va was among the earliest prescribers to pick up on the dangers of vioxx, for example, a drug that killed more american that's died in the vietnam war. they picked it up because of all of the clusters of heart attacks in their electronic medical record. >> now, one of the things that happened to me when i was governor is that we tried to allow nonveterans to use the va system, and the veterans objected to it greatly, thibing that if you let more people in, it would wreck the system or hurt it in some way. what are the pros and cons of allowing -- of expanding the va system to cover more americans? >> well, first of all, among veterans, the politics has changed very much. the va has the highest patient satisfaction level of any health care provider in the united states. and i did

you make at call then work internally with your i.t staff.en after do you that you start reaching out to your partne in a collaborive fashion wch i was involv with running the tional cyrsecurity center which wasuch a collaboratn center on security. icanas global internature cporation that handles th naming and adress for every mailbox in the internet globally over 200 million, we have relationships with every sine country the world and play somewhat of s low mat particar role when they occur. partularly if they affect the naming and addressinsystem which doesn't yet but ivolves multiple countrie there's a ole lot of different networking that goes on, ganically as well as in somewhat structured fashion. that can contribu brown efly, randy, the obama administering is trying t come up with its own poli on th well? >> s. the oma administratio in fact has gon further i the area of cybeecurity than any other administration in terms of cusing onthe issues,utting togethe a comprehensive cyber-policy review, e 60ay review as itas known that was comple

i.t. was the second best performing sector in the s&p 500 since the march 9th lows from standard & poor's. rich peterson there. and financials, number one, up 80% from the low. i.t. up 32% from the low. do i want to be putting new money to work here after a 30% rally? >> it's better than a 100% rally rally you got in the financials. >> that's true. >> so i think you've got to keep it in perspective of how much the market came up from the low. and to the other guest's point of view, bruce's point of view, you've got to see where the fundamental outlook is going to be a year from now. it's going to be difficult to argue the economy's going to boom when consumers are saving and business loan activity is shrinking at a record pace on a year over year basis. >> you're an investment manager. you've got to look at all at set classes. what are the asset classes i must be exposed to in the second half of 2009 and 2010? it's not just stocks, is it? >> no, it's not. you need to be in emerging markets

ganer says i.t. budgets are still being cut, and dsn't see e trend changing until businesses a consumers feel confident about the econy. >> jeff: t i.r.s. is giving a break to small businessehit with big tax fines. the agency todayemporarily stoppecollecting penalties against small busisses using questionable tax shelters. e fines came out of a 2004 l aimed at big cporations using elters to avoid taxes. lawmakers asked thi.r.s. to stop the collections whi they work to chge the law. the tax nes can run as high as $300,000. >> susie: here's a looat what's happeni tomorrow: the weekly repor on mortgage applications, and inntories of crude oil and galine are released and, as we mentioned, do mponent alcoa kicks off earnings sean with second quter results after the bell. tonight's commentor says, when the cession's finally over, there'lle a new set of ecomic rules. he's alfred edmond, jr e inhief at blackenterprise.com. >> we're not out of e woods yet, but sooner orater, our economy will recovernd this la

health i.t., comparative effectiveness research and importantly, a b propos that we've put on e table, a change in the way medicare policyis set so that we move more decision ming out of theands ofoliticians.... >>ose: away from coness into the executive anch? >> well, io what wre caed the mack, independent medicare advisory council. and that's important because health care rkets are dynamic, and ts imack body would help us take into account new infoation and orient towards quality, which is a key part of what wneed to do. >> rose: the next guest on this program makes thatery point in tes ofuality of service at an effective means what's happenedn your own analysis to make the cost of dical care so onerous? >> well, there are a variety of things that are happening. anthe way i like to think about its we have this huge variation howealth cars practiceacross the united states. even here inew york if u look at n.y.u.medical veus columbia presbyterian versus other hospitals in the city, let alone those hospitalselative to mass general or stamford, there are dramatic fferences. so for examp

goldman's thesis on hardware is that a corporate i.t. turnaround, spending turnaround will occur next year and that the hardware makers will be the very first beneficiaries. we heard a similar theme in the software space coming out of infosys. this is the indian software services company on its earnings release saying that it sees an i.t. spending turnaround in the middle of next year. but that stock up 5%. finally, moving on to the internet stocks, we've got yahoo up on an upgrade at thomas weisel. and finally, ebay and general motors announced today that they' they're going to test out in california a new feature online to buy new cars. sharon, i buy a lot of stuff online. i'm p sure i want to buy a new car on the internet. >> people are buying cars and demand is why we're seeing such depressed energy prices. keep in mind demand is the big story here and why we're $87 lower than we were on the second friday of july in 2008. that's when oil prices peaked above $147 a barrel. today we settled below $60 a barrel. keep in mind the decline

you make that call then work internally with your i.t. staff.en after do you that you start reaching out to your partners in a collaborative fashion which i was involved with running the national cybersecurity center which was such a collaboration center on security. icann as global internature corporation that handles the naming and address for every mailbox in the internet globally over 200 million, we have relationships with every single country in the world and play somewhat of sip low mat particular role when they occur. particularly if they affect the naming and addressing system which doesn't yet but involves multiple countries. there's a whole lot of different networking that goes on, organically as well as in somewhat structured fashion. that can contribute brown reefly, randy, the obama administering is trying to come up with its own policy on this as well? >> yes. the obama administration in fact has gone further in the area of cybersecurity than any other administration in terms of focusing on the issues, putting together a comprehen

that's the world's largest i.t. company out there. it's going to take a lot to move the needle there. we think it's fairly priced. google, on the other hand, we do have a buy rating there. we think that's an attractive asset, obviously market leader in a growing space.. we'd put our money on google. >> gentlemen, we'll leave it there. great to have you on the program. thanks so much. we appreciate it. we'll be watching those numbers and have you back to weigh in. a ray of light in the newspaper business? yeah. find out why gannett was a big mover today. then some late-breaking developments regarding bernard madoff. and we're watching a very, very serious situation for cit group. back in a moment. who can give you the financial advice you need? where will you find the stability and resources to keep you ahead of this rapidly evolving world? these are tough questions. that's why we brought together two of the most powerful names in the industry. introducing morgan stanley smith barney. here to rethink wealth management. here to answer..

of revenue, that does basically if she a, making hospitals more efficient, sort of this healthcare i.t. stuff. most of the companies who do that trade at much higher multiples. it's sort a hidden gem. the company trades at 12 times earnings and i think it's the fear of ready cal healthcare dissipates. you're going to get a lot more pop out of the stock. brenda: gary b.? >> well, i think it's going to drop from here. if you do like, it i think you'll be able to buy it cheaper than right now. brenda: eric? >> remember nancy pelosi's mouse was going away. guess what, it's not. $16 million slated for thatman mouse. guess what you need. you need aloft mouse traps. wal-mart, number one seller of mouse traps. >> i feel like johnny carson, i did not know that. that is wild stuff. brenda: prediction? oh!

. >> where is the growth in i.t. and electronics? >> it is not a business or an industry -- there are very few growth industries these days, but i would say we feel there are some opportunities as it relates to making things simpler. if you look a lot of the products and services that will be coming out, we believe the emphasis will be on value and simplification of things. some of the voice-over ip type of products i just talked about are the focus of it. making things affordable and easy to use. we see an interesting opportunity as it relates to digital media. obviously there's a transition going on. how do you actually make money with all the different constituents within the ecosystem, and can we build a business model around that? >> we have talked to a lot of folks about mobile technology. is there a large growth there, in your view? >> if you look at the press, we have made a pretty bold statement in saying that we are going to substantially accelerate our mobile business. the real question therefore consumers, we will grow ou

. >> i too met black watch >> i.t. met black watch servicemen on saturday in people who have contributed greatly to our armed forces and i can assure him the tradition to talk about will be maintained as long as the army exists. >> david cameron. >> thank you mr. speaker. can i welcome what the prime minister said and agree with them about the queen's new recognition for armed forces. we should be incredibly proud of what they do on our behalf. last week that think it was demonstrated for everyone to see that capital spending under labor will be cut. now i want to turn to total spending for the will the prime minister accept that his own figures show that once the treasury is forecast for inflation, the total spending will be cut after 2011? >> no mr. speaker, total spending will continue to rise and it will be at 0% rise in 2013 and 2014. in 2011/12-- [laughter] in 2011/12 and 12, 13. >> order, order. the prime minister's answer must be heard. speak the prime minister said very clearly no, it will rise. can he explain

include the savings we are going to get from prevention or the savings we are going to get from health i.t., because in using congressional jargon, which i am never supposed to do because nobody understands it, it is not scoreable. that means the budget office can't identify exactly how much you would save even though everybody believes that it will end up saving a lot of money. we can't put a hard number on it. so we will get additional savings that will drive down costs. in the meantime, the costs of reform will be paid for with hard dollars that we've identified. here is the bottom line. i am almost done here. this is a big complicated topic, so i hope you forgive me. we are starting to make progress on capitol hill. we are identifying ways not only to reform the system to make it smarter, more efficient, no user friendly, better for american families, but also ways to pay for it in a way that doesn't bloat our deficit. but the hardest part is yet to come. because everybody here knows that the easiest thing to do when you're looking at big policy questions like health care is can't be d

. >> host: where's the growth in i.t. and in electronics? >> guest: that's a good question. i mean, it's not a business or it's not an industry -- well, there are very few growth industries these days, but i would say we feel that there are some opportunities as it relates to making things simpler. so if you look at a lot of the products and services that will be coming out, we believe the emphasis will be on value and simplification of things. so, for example, some of the voiceover ip kind of topics that i just talked about, that's making things affordable, simple and easy to use. we also see a pretty interesting opportunity as it relates to digital media. obviously, there's a transition going on. the key question is how do you make money with all the different constituents within the ecosystem and can we build a business model around that? >> host: we've talked to a lot of folks here today that have talked about mobile technology. is there large growth there, also, in your view? >> guest: clearly, if you look at the press, we've made a pretty bold statement in saying that

>> i.t. the issue first of all ages the change in approach of the taliban campaign in afghanistan, and i think there are defense experts far better equipped than me to explain the nature of what has happened. but clearly the afghan taliban and associates are operating in guerrilla tactics and using roadside bombs and electronic devices to cause maximum damage. they are not in the same way as happened in the past taking on the troops had on. they are hoping that by this method and to cause dismay and loss of life -- >> so did this come to surprise to you? >> this is a tactic the taliban have been pursuing obviously. it was a tactic pursued by others in iraq and obviously the military have changed their tactics to deal with that in a far more engineers dealing with the bomb threat and equally our tactics have had to change as a result of that. the number of taliban involved in these activities do not need to be massively high for them to have an affect through the use of these devices, and i th

. >> guest: if you look to the federal government is the single biggest i.t. customer in the world so they spend billions every year. and depass cybersecurity got a fraction of that and that is the reason we are having those problems now. that started the chain to the last period of the bush administration and change in this administration. >> host: what keeps you awake at night when you think about a cyberattack? >> guest: if i was going to be worried about it, for me this has always been more of an intelligence problem and it is an espionage problem. we have as the nation suffered mightily from the ability of our foreign opponents to access the sunsetted request of information and take it further, so what worries me the most is that we have had a counterintelligence disasters in the u.s. and we are just now starting to fix it. >> guest: what about the financial side? what i hear from intelligence officials is their most worried about the impact this is having in terms of death by 1,000 cuts on the financial side. >> guest: we use the death by 1,000 cuts, whi

in other words, how can we improve the buildings to be much more energy efficient by using i.t.etworking capabilities. how can we improve learning processes, how can we improve health care. all of these are opportunities for us, and cisco and other internet companies, i think, will play a strong role in the future. >>thank you so much for joining us today. >> thank you, carlos. >> good to have you. >>> up next, turmoil on the streets of iran. a memorial for those killed during post-election violence boils over, sparking new clashes with police. and do you have an opinion about what we're talking about on today's show? let your voice be heard. just send your tweets to twitter.msnbc.com, find my picture there on the screen, click it, and let me know what you think. i'm robert shapiro. over a million people have discovered how easy it is to use legalzoom for important legal documents. at legalzoom, we'll help you incorporate your business, file a patent, make a will and more. you can complete our online questions in minutes. then we'll prepare your legal documents and deliver them

why are civil servants and politicians so obsessed with outsourcing public sector i.t.racts when the logic and economics of extra costs and complexity point in precisely the opposite direction? >> i think my honorable friend is actually factually wrong on a number of those points. the budgeted costs certainly haven't increased 300% as he is suggesting. there's been a much morely. ed increasing -- increase of 180 million pounds out of the 7.1 billion but i have to say to my honorable friend, first of all this project is going to save money in relation to legacy methods of fulfilling the same role. that is very important. second, it's an absolutely essential part of modern warfare that we do have effective, secure communications linking all aspects of our armed forced at home and abroad in theaters. it's part of the network capability to which we're committed >> mr. speaker a pilotment oring scheme is in place at chatwick garrison designed to help them transition to and cope with civilian life. in addition to the normal support given when leaving service, the pilot progra

>> originally we came into the year saying it would be flat, that i.t. be down, wiping out all of television's gain. we now see i.t. is not down as much as we thought and clearly television much stronger. so we came in saying flat. we're now saying the worldwide glass market for the year will be up 15%. >> jim, i'm just trying to figure out -- i'm a little c confounded. you've gone from a low from 7 back to 17 but the stock is down 3%, 4 ar%, 5%.ao could you point your finger to anything that an analyst or someone that follows it closely might be pointing to for why the stock might be a little weak this morning? >> our stock often runs up before announcements and then drops after. there really is no weakness in what we're talking about in our results. we're talk, about quarter three volumes and lcd, very strong. we'll be able to get flat pricing. i know price decreases to our customer in q3. we're looking for improvement in our dow corning. so no weakness. >> fair enough. we appreciate your time. >> thanks. >>> still ahead, weekend at bernan bernanke's -