is huawei; huawei is not china. >> kroft: bill plummer is the american face of huawei, the company'sident of external relations and the only executive the home office in shenzhen would let us speak to. we met him at huawei's north american headquarters in plano, texas. >> plummer: we have the responsibility to clean up ten years of misinformation and innuendo. >> kroft: what's the misinformation and innuendo? >> plummer: the suggestion that a company, by virtue of its heritage or flag of headquarters, is somehow more vulnerable than any other company to... to some sort of mischief. >> kroft: plummer told us that huawei is just another multinational corporation doing business in the united states, no different than siemens, samsung, or hyundai. >> plummer: this room is a clean room. >> kroft: he says huawei buys $6 billion in components from american suppliers every year and indirectly employs 35,000 americans. and he says that the latest telecom gear huawei hopes to sell in the u.s. poses no threat. one national security expert said that, if you build a network like this in another c

congressional report naming huawei a national security threat. now the company has come out swinging, defending its practices. bill plumber is the vice president of external affairs of huawei, and he has some very harsh words for congress. he is going to be here straight ahead. liz: yeah. we'll ask him about the competition too. so much to talk about there. but first, we're going to tell you what drove the markets with today's data download. stocks started to slide after that first hour, couldn't recover. all three major indices lower following a weak economic growth forecast from the imf. the fund saying it's going to be worse than they expected but still seeing three plus percent growth there. the dow crossed the unchanged line 20 times in the first hour of trading. but slipped into the red for the rest of the session. technology and consumer discretionary today's worst performers, and as we said, energy the only sector to end in the green. palladium, this is the metal that helps catalytic converters convert. it was the sole gainer among the me

and huawei. huawei says the report relies on rumors and speculation, and the company warns a trade battle could cost the jobs of thousands of workers in the united states. but, as darren gersh reports, there is growing bipartisan agreement that this is the right time to get tough on chinese cyber-theft. >> reporter: in unusually blunt language the bipartisan leadership of the house committee warned u.s. companies not to buy their broadband networking equipment from z.t.e. and huawei. >> our advice to the private sector is this: your obligation is to consider larger data protection and national security implications of your business decisions and we would not advise doing business with these two companies. >> reporter: washington has become increasingly alarmed by cyber-security threats believed to have been launched from china. cyber theft of american trade secrets is estimated to cost hundreds of billions of dollars a year. >> if huawei wants to do business in the united states, then they've got

grady, will cisco benefit from this report bashing huawei? >> so these security concerns and concerns over how huawei works in the u.s., they're not new and cisco's market share in the u.s. is very high and huawei has very little market share in both service provider and enterprise routers in the u.s. i don't know that this will really lead to incremental revenue growth for cisco. it does, however, just highlight a key challenge that huawei faces as it tries to penetrate the u.s. markets. >> let's say you're gigantic corp., inc. have you a $500 million purchasing budget. you're in a meeting, you're like well, maybe we'll spend a lot of this on huawei. someone says, no, did you see that report? did you see "60 minutes," did you see cnbc? you're not going to spend money on huawei. >> i absolutely agree with that. but these issues have been in place for many years. the other issues that huawei faces is penetrated the value-added resale channel. if you're a ceo, trying to allocate shelf space to network vendors, are you going to allocate your she

. >> we've had information from former and current huawei employees. we have both classified information. our foreign partners, australians and the british and others have passed along information they've seen whether it comes to huawei's activities which i think is a very clear indication i have no problem saying i would not use huawei equipment. i'd find other vendors. if you care about your consumer's data and the national security of the united states you need to look elsewhere. >> of course if you do believe, as i do, given my reporting on it, that the chinese are incredibly aggressive when it comes to cyber espionage, sue, and then you believe much wlaf of what is in this report, you certainly come to the conclusion if there is a telecommunications company that's becoming somewhat dominant around the globe that has the backing of or certain connections with the chinese government, it might not be the best thing to do business with. >> so where does this go from here then, david? obviously it seems as though this story is -- has got some legs to i

we should mention, too, i mean, there was a lot of talk at the london olympics about huawei. wiring many african nations, many other nations -- david: which is of concern to a lot of people. in different ways that you can listen in. liz: competitors like cisco, that's for sure. david: it is amazing the breadth of this one company. they'll be looking into all this. well, earnings season as we mentioned before today, tomorrow it all begins with alcoa. we have an analyst who's going to tell you the four companies that are surprise investors. two on the upside, two on the downside. you cannot, literally, not afford to miss this. liz: his record is unbelievable. plus, watch out, cisco, we're talking to the ceo not of huawei, but polycom about the company's new product launch and how they are managing to eat away at the big guys' market share one conference call at a time. ♪ i know the name of eight princesses. i'm an expert on softball. and tea parties. i'll have more awkward conversations than i'm equipped for because i'm raising two girls on my own. i'll worry about the economy

i'm not sure i buy his line i think that the chief executive of huawei is himself a former member of the chinese people's army has very high level connections to chinese government and through the chinese communist party. and you know i think that the decisions that are made at the executive level of that company or any company are merely about business business but politics do come into play and if you do have those sorts of connections with chinese leadership it's the same for u.s. companies that have connections with u.s. leadership you know there are conflicts of interests that may run against legitimate interests to do business as a business doing business and and so i'm not sure i buy that line i think that that was a is does there are some real concerns there's a lack of transparency there they chose not to be listed on markets in hong kong and overseas because they didn't want to comply with disclosure requirements in order to do that so so yes there are real concerns now whether they're spying on the u.s. or not it seems that the that the white house through this investigati

national security issues posed by chinese communicate telecommunications companies huawei and zte that was put together by the intelligence committee in the u.s. house of representatives at the center of the findings a potential security threat posed by the chinese telecommunications companies with potential ties to the chinese government or military in particular to the extent these companies are influenced by the state or provide chinese intelligence services access to telecommunication networks the opportunity exists for further economic and foreign espionage by a foreign nation state already known to be a major perpetrator of cyber espionage we want to break down the findings in the report and also try to read between the lines. a little bit with jim carr senior director of strategy with free press a there are ten times i first about this report i just the nuts and bolts what's the most compelling evidence laid out in this report that chua way and would threaten national security well i think that the house intelligence committee looked at the the history. in particular the founder

government i mean do you think that this is one of the concerns that huawei would be more difficult to convince to play by certain rules well you know it's a good point you know the concern was that while he's too closely linked to the chinese government but here we have u.s. telecommunications companies like eighteen d. and arise in that we're working with the u.s. government the national security administration while back to wiretap overseas phone calls without legal warrant at the time so i think when you whenever you have government and corporate interests colluding liked is it's not it's not only concern for national security but it's also a concern for users consumers who are privacy has often been been hacked into phone calls have been tapped so so we need to watch all sorts of telecommunications companies especially ones that get too close to to any government yeah it's almost one of those things where you don't want to adopt a misbehaving child one that won't follow the rules and you know do what all the other kids kind of you know do in terms of what what's expected last week

as for the huawei allegation, we'll see. we haven't seen the report yet and the specifics. >> the reason why the issue has been treated with -- this has been going on over the course of a decade at least. it's not just in technology. it's in other areas of business where intellectual property in general is being stolen, allegedly by chinese hackers and chinese corporations. think of how many u.s. companies we talk about who want to make inroads into china and they fear retribution, being locked out of a market, that's a bottom-line fear. when i heard that these companies were being invested and could face some sort of punishment or blocked from entering the u.s. market, i thought immediately, is cisco going to feel the same impact in china? are other companies going to feel the impact of being able to do business in china? >> chinese cyber espionage has only ratcheted up dramatically over the last decade. ten years ago, it was a minor thought for most. now it is a major issue and should be a board-level issue for many u.s. c

the report warns of potential of cyber attacks from huawei and zte. both deny they are security threats. the action sequel took in $51 million. the movie," hotel transylvania" was second and "pitch perfect" came in third. >> extreme sky diver. a daredevil hopes to make history when he takes a big leap 23 miles above earth. this is the morning news. [ male announcer ] we put a week's worth of bad odors in a home. some aerosols may just mix with them. can febreze remove them? [ moderator ] describe the smell. it's very pleasant. some kind of flower maybe? ♪ awww, oh yuck! [ male announcer ] febreze air effects doesn't mix, it actually removes odors so you can breathe happy. you'd think i want to stay away from it at night. truth is, i like to stay connected with friends. but all that screen time can really dry me out. so i use visine. aah. it revives me, so i can get poked, winked, and -- ooh -- party all night long. only visine has hydroblend -- a unique blend of three moisturizers that soothe, restore, and protect to keep me comfortable for up to 10 h

one is called huawei and one called zte. what do they suspect these companies are able to do? pretty scary, frankly, but, of course, naturally the chinese companies are not agreeing with the report. it was prepared by house intelligence committee over the past year, and basically hauwei and zte are two of the largest chinese telecom companies, and they want to expand here in the united states, but both are big tech companies that make products like reuters and other internet gear. the report says that china has the means, the opportunity and motive to use telecom companies formal -- for malicious purposes. the report is especially critical of huawei citing alleged ties to iran, and breaking -- and a pattern in practice of potentially illegal behavior in the u.s. both companies are disputing the findings. huawei says the committee ignored our prooun track record of security but also paid no attention to the large amount of facts that we have provided. zte says that it's set an unprecedented standard for cooperation by any chinese company with a congressional investigation. so i

both companies deny the allegations, huawei saying the findings are politically-motivated. cracker barrel is playing defense. the restaurant chain is defending its newly appointed chairman, james bradford. earlier this week the chain's owner, biglari holdings, said bradford had lied on his resume. cracker barrel claims there was a misunderstanding. apple prices are climbing far from the tree. at the retail level, apple prices are on the rise. it's due to fluctuating temperatures that hit the crop last spring and killed apple blossoms across the nation. this will reportedly cause prices to rise by as much as a dollar a pound. the price of apple juice could rise by as much as 20%. former ge ceo jack welch is out at fortune magazine according to reports. last week, welch questioned the drop in the unemployment rate to 7.8%. he famously tweeted, "unbelievable jobs numbers. these chicago guys will do anything. can't debate so change numbers." the comments caught widespread traction. critics, however, included a fortune manager. fortune.com posted an article highlighting that ge

is huawei.ave with the state, the government of another state or vice versa has nothing to do with my company and my company should not be held hostage to someone's political agenda. >> reporter: it's one of the biggest information communications providers in the world. a $30 billion firm with 120,000 employees worldwide operating in 140 countries. with 1,700 employees in the u.s., it provides telecommunications infrastructure as well as phones and tablets. it's founder is an officer in the chinese army but they deny a connection. the congressional committee huawei says made up the mind even before the hearings began. a statement on the company's website says the committee's report not only ignore e ed our proven track record of network security in the united states and globally but also paid no attention to the large amount of facts that we have provided. the congressionally created u.s.-china economic and security review commission found that huawei receives funding of the chinese military for

house intelligence committee warned private and public sector organizations from buying products from huawei, but -- alleging that they pose a security risk, which the company is humanly denies. this has put defense contractors in the middle of two political forces. they want to -- giving a 60-day report -- notice from the sequestration. senator mccain said the notice is politically noted and seeks to stop it. political forces prevented the merger of two enormous contractors, eads, and bae. do they need to keep an eye on business opportunities as well as the political forces behind them? for this and david smallwood: maryland money needs to stay in maryland.d. it's just that simple, i mean, it's a no brainer. anncr: every year marylanders spend five hundred and fifty... million at casinos in west virginia, delaware... and pennsylvania. one west virginia paper calls it a "cash cow" for them. but its cost maryland over one billion dollars. money that could have created good jobs and... better schools for us. question seven keeps maryland money in maryland. david smallwood: question seven, i th

oz disturbing conclusions about zte and huawei. the companies failed to prove that they are independent of china's communist government. >> we're not going to stand for the chinese government have any influence on our networks in the u.s. if you do business you need to give information. they have not done that. >> that is why he joined mike rogers to urge american businesses to steer clear. they believe if those companies get contracts, hackers or saboteurs could access critical information. >> the critic -- the public is not aware of how serious these attacks are. they could attack a major bank or a stock market. >> imagine not having access to your bank account. imagine hospitals having fluctuating power systems. >> an economist agrees but he cautions it will cost more to telecom work around the two chinese mega-corporations. >> we might be paying more for the work if it had not been done by a chinese firm. we want security but i would suspect many will want to pay the lower monthly bill. >> paying more will protect americans fro

they named two companies and they believe they should be wary of huawei and zte. the two companies deny the allegations and have the support of the chinese government. >> when china in the u.s. benefit from the business we do in america are, we hope the congress will monday's their opinions on prejudice but on the facts so as not to hurt bilateral trade relations. >> this is just the latest battle in a war of words over trade and economic practices. the u.s. has accused china of unfairly subsidizing renewable energy and the auto industry in china expressing complaints to the wto. clogs let's get to the u.s. election campaign. romney accused obama of failing to lead in the middle east. is going to frame his positions ahead of the next presidential debate next week. we have some analysis from our russian and correspondents in just a moment, but first tier are a few clips. >> it is our responsibility and the responsibility of the president to use our greatest power to shape history, not lead from behind the. destiny at the mercy of events. i will put the leaders of i

reuters did say the report did find huawei's equipment substandard. >>> also the magazine "newsweek" will no longer being a magazine. they announced it is going all digital. "newsweek" has been around since 1933. >> that is very interesting. >> sign of the times. digital world. >>> 5:56. let's get a check from christina loren of our friday forecast. >> get it while it's hot, guys, because temperatures are going to tumble tomorrow. 94 degrees, near record warmth inland today, 83 bayside and 80 degrees even at the coast. i'm talking about pacifica at 80 degrees. by tomorrow a return of the low clouds and then the rain moves in. we'll detail your full forecast coming up. 5:56. first, mike has some issues out on the road on a thursday morning. >>> yeah, both side of the bay, folks. this is 101 right through palo alto into menlo park northbound. at the top of your screen i've been watching all the way on the right shoulder a very slow-moving tow truck arriving, a couple more needed to clear these lanes. only one lane northbound is open at willow avenue and that's why on the maps we see al

the panel concludes in a report zte corp and huawei technologies should not be trusted with access tocomputer networks that support everything from power grids to the u.s. finanical system. "it could be a router who turns on in the middle of the night and starts sending back large data packs and it happens to be sent back to china." the recommendations followed a year-long investigation. general motors is revving up employment. (broll) the carmaker plans to hire 15- hundred high tech employees for a new information center just outside of detroit. and 500 at center in austin texas. the i-t innovation centers are intended to help the car company improve performance and drive down operation costs. move over jewelry and hand bags. toyota is proving to be popular on hsn, the channel formerly known as the home shopping network. for the first time, hsn pitched a car company. according to reports, toyota used 3 one-hour blocks to explain its hybrid lineup to an audience that is mostly female. the cars weren't actually sold on hsn because of dealer franchise laws. walmart and american express

this is how the company huawei responds.nationwide carriers across every continent, save antarctica. the security and integrity of our products have been proven. these are facts, political agendas aside. they say it's not true. but a house intelligence committee says, we don't think they should be allowed to expand in the u.s. >> a fight worth watching. >> oh, yes. >>> 28 minutes past the hour. gone in six seconds. coming up, a crash on the last turn of the last lap, takes out almost the entire field at talledega. >> wow. [ female announcer ] born from the naturally sweet monk fruit, something this delicious could only come from nature. now from the maker of splenda sweeteners, discover nectresse. the only 100% natural, no-calorie sweetener made from the goodness of fruit. the rich, sweet taste of sugar. nothing artificial. ♪ it's all that sweet ever needs to be. new nectresse. sweetness naturally. [ slap! ] [ slap! slap! slap! slap! ] ow! [ male announcer ] when your favorite foods fight you, fight back fast with tums smoot

huawei is also giving bad advice.i told them four years ago, you're never going to have a major telecom market share in the united states, it's never going to happen. why are you spending all this time doing this? but they keep doing it, and they keep complaining. there are certain doors that are closed in the u.s. technology is not available for chinese firms. on the other hand, land is. a lot of countries in the world don't like that. the u.s. is land rich. take the country for the opportunities that it has; land, resources, huge consumer market. don't try to take it for opportunities that are not going to be open to you and have never been open to you. that's the advice to chinese firms. and, you know, very similar advice is handed out to foreign firms in china all the time, only there are far more restrictions which is we're only giving you this, just accept it. i think there's an element of false crisis here. chinese investment in the u.s. is doing fine, and if chinese firms know where their opportunities are, it

from what i've seen, huawei has done a pretty good job of trying to develop greater confidence in their products in a place like the uk market by investing in a large rchl and d facility and by being more open about at least to outsiders about the technology that they're employing and the reliability and security aspects of the technology. and they haven't been able to make that progress in the united states. and i think that's really the market that they want to crack. it's not the only one. they've been denied access in australia. but the u.s. is the big market that they want to crack so to speak and they haven't been able to do that. it's not just telecoms. we've seen it also in natural resources. chinese companies trying to bid for oil and gas or mining resources in north america, not just in the united states, but also canada have been turned back. so there is definitely a distrust there of companies linked or based in china in a couple of key sensitive sectors. >> and we're seeing zte shares down 5.5% this morning. is that because this decision may end up impeding business not jus

huawei and z-t-e communications have been accused of having ties to china's communist government.report did not find any proof of wrongdoing but says the companies failed to respond completely to lawmakers questions. called the report baseless. even in these tough economic times, the real estate market in some cities is still holding strong. and it seems london is certainly one of them. c-n-n's richard quest shows us one tiny apartment with one hefty price tag. next, details on a plan to expand chicago's riverwalk. and later in the medical watch >>there is no more. 10 ft 4 by 8 ft 4. >> this as the length of the flat. the apartment is a converted cloak room. i would point out the high ceiling and natural light coming through. i would point out the location. >> the original asking price of $145,000 has been well exceeded. the top offers are believed to be around 280,000. this tiny apartment is in the best part of london. next to the top people's. >> you're going to get a hell of a lot of interest. the demand for this unique property has been intense. more than 100 viewing. a dozen

a congressional report out today says huawei and a second firm, zte, have equipment that could be used for spying. >>> el universal says venezuelan president hugo chavez won a third term on sunday. the socialist got 54% of the this national weather report sponsored by bp. >> crooks are stealing more smart phones than ever but it's the phone companies and what they won't do about it that's frustrating police. we'll talk about john miller. >> in 1972 president richard nixon makes it clear he doesn't want to do any more debates. we'll hear from these just revealed white house tapes and we'll see how one mistake in a debate can linger for a lifetime on cbs "this morning". online outfit piccolo headphones buy now broadway show megapixels place to sleep little roadster war and peace deep sea diving ninja app hipster glasses 5% cash back sign up to get 5% everywhere online through december. only from discover. just begin with america's favorite soups. bring out chicken broccoli alfredo. or best-ever meatloaf. go to campbellskitchen.com for recipes, plus a valuable coupon. campbell's. it's ama

interestingly this report is especially critical of huawei. it points to intellectual property violations, allege ties to iran and what the committee calls, quote, a pattern and practice of potentially illegal behavior in the united states. of course, both companies pushing back. they're disputing the findings. they are expected to release more detailed statements later on presideon huawei is calling report baseless. saying it's a dangerous political distraction. zte says it sets an unprecedented standard for cooperation by any chinese company with the congressional investigation, that coming from zte, the smaller of the two companies. carol, i think as this plays out, it certainly will, it's important to note here that this congressional report found no proof of wrong doing by the companies. they have suspicions. they think there are enough things that line up here. but no solid proof. that really stood out to me, carol. >> poppy harlow reporting live for us this morning. >>> a word about sports before we take you to break. it's about the tal

companies should stop doing business with china's top two telecommunications firms, huawei technologies and z.t.e. the house intelligence committee reported both have close ties to the government of china. it said using their components in u.s. computer networks could let them steal trade secrets or even shut down vital systems in a time of crisis. the two firms denied any such association to the chinese government. venezuela's leftist president hugo chavez will serve another six years after winning reelection sunday. his margin of victory was ten points, the narrowest in his 14 years in power. it was a bitterly fought race against challenger henrique capriles, who conceded defeat. chavez welcomed that concession last night, as supporters poured into the streets and surrounded the presidential palace. he addressed them from the balcony. >> my gratitude to the right wing candidate and his campaign managers who announced to the country that they recognize our victory. this is a very important step for peace in venezuela, for our coexistence. >> sreenivasan: chavez is expected to step up h

huawei and zte, following an 11-month investigation of the two firms.ely budged, despite california's price hike. putting the average price $3.84 per gallon, up a half cent. other than the west prices were down about 3 to 12 cents. joe? >>> hi, andrew. you're kind of interrupting me right now, i was talking to dr. davis. >> you were in can frgs? conversation? >> yes, i was. i thought we had the headlines and needed to -- >> you were talking cancer research. >> serious stuff here. >> what i was saying, dr. bob weinberg in that group postulated the existence of an onca gene and said we will find one and we know how many have been found at this point. dr. ken davis president and ceo of mt. sinai hospital and it's good to see you and just in passing we talked about a couple of things, the prospect for alzheimer's, and preventative medicine and using what we're learning on the lab bench to tackle health care we could do unbelievable things if we found a couple of things that could be more than just palleted. >> i think you're right. if we could begin to alig

the review reportedly concluded relying on huawei was risky for other reasons. but remember when that report when we first started hearing things about it, we had carly fiorina on the set. >> we'll dacall it huawei. >> convenience store is wawa. >> i've been there. i thought barbara walters would have to deal with that. there's a column about -- >> senator johnson was very -- >> drought spoken. >> a bastion of liberalism. although herb seigal there. >> you both seemed to corner the columnist. diane said that -- >> oh, no, he wanted to based on last week when chris knoff was there giving advice to president obama on the next debate. you're dealing with a lying cheater, here's what you can say. do you know his story? an amazing story. ron gave a speech about you how obamacare would hurt his company and they said should you run for senate and he announced in may and won in november. he was ceo of a company that does quite a bit of sales. >> we talked to him and he'll come back and talk more numbers. >> he's distraught that -- he said what do these people -- are the

chairman of the intelligence committee recommended american companies shouldn't do business with huawei or zte. >> venezuelan president hugo chavez won a third term on sunday. the socialist got 54% of the vote and enough to keep him in office until 2019. >>> "usa today" reports two justice department agencies say the atf and dea don't know how often informants are given permission to break the law. the strategy is under scrutiny after the fast and furious program. >> florida today reports on the launch of spacex falcon 9 the unmanned cargo ship rocketed into orbit sunday from cape canaveral. it is the first private spacecraft to resupply the international space station. >>> and much of the country is waking up to much colder temperatures this morning. it is a bit chilly this morning. isn't it? >> when you get up at this national weather report sponsored by bp. >> crooks are stealing more smart phones than ever but it's the phone companies and what they won't do about it that's frustrating police. we'll talk about john miller. >> in 1972 president richard nixon makes it clear he doesn't

and as aaron alluded, companies like huawei and zte do provide special challenges, um, because of the possibility of impact on our telecommunications infrastructure risk factors. this is something that needs more study before we can think about opening that spigot too wide. >> dr. bader, i'm going to direct the fourth question to you, and we've touched upon these issues already, but they're important, so i wanted to delve into them with a bit more time. with 70 president of the world's -- 70% of the world's intellectual property, ipr loss is exceeding $250 billion per year due to piracy and cyber espionage. both candidates expect both countries to live up to their treaty-based obligations. how does president obama see china as an actor in the ipr and cyber espionage, and what future cooperative or unilateral measures would he take to address this issue? >> well, china is, frankly, a problematic actor in both areas. um, in ipr the last numbers i saw something of the order of 80% of all seizures of counterfeited goods but u.s. customs authorities are chinese origin. this is a problem th