>> simon: '51. >> carlsen: wow. >> simon: you see, mem... not... it's not what it used to be. ( laughs ) >> simon: chess players are pretty poker-faced. but occasionally, magnus will flash the smile of someone who knows it's all over but the handshake, while nakamura dives deeper into doom. magnus was playing brilliantly and he knew it. is there anything in life more satisfying than that feeling when you're playing brilliantly? >> carlsen: i don't know. but it's... it's really, you know, up there. ( laughter ) >> simon: it's pretty good. >> carlsen: yes. >> simon: the spectators seem as mesmerized as the competitors. they're all chess players, of course. if they weren't, it would be like watching paint dry. worldwide, 100,000 are watching on their computers. the suspense keeps building until endgame, by which time, it's cutthroat. but do you enjoy it when you see your opponent squirm? >> carlsen: yes. i... i do. i enjoy it when i see my opponent, you know, really suffering when he knows that i've outsmarted him. if i lose just one game, then

simon, i'm grateful to you.s late at night in scotland. >> i wish we were talking on happier circumstances. like i said before, you're going to hear a lot of not very nice stories over the next few weeks, if not months. but i think it's really important that she was a troubled lady. i don't want to go into too much detail why she got there. but let's remember her for what she was when she was at the top, that she was one of the greatest artists of all time. i don't know whether we're going to find another one like her again. and i'm just incredibly sad. i'm glad i got the chance to talk to you about her to tell you how much she meant to me. >> simon, i'm very grateful to you and i know you'll be extremely sad about this. and you've given us fantastic insight into the issues surrounding whitney houston. it is a seismic shock to the music industry and the world. you can just tell by all the social media tonight, twitter, i think the top ten trending subjects are all whitney houston related. this is a bombshell and

simon. >> thank you very much, courtney. let's get to it then, facebook with the ipo filed, what is now next for that social media giant? it's clear to many that that growth will depend on its relationships with other companies. so who is facebook intending to friend? our julia boorstin is at facebook headquarters in menlo park, california. julia, over to you. >> simon, two of those friends are paramount, music studio and american express. facebook gave them a call out. but would frankly like to friend every major advertiser. facebook success in hinges effectively connect with customers. s-1 mark zuckerberg describes utopia marketing on facebook. doing good that's also good for business. saying "we think a more open and connected world will help create a stronger economy with more authentic businesses that build better products and services." in the s-1 the company lays out how its combination of free facebook pages as well as paid ads allow companies to not just reach their target audience, which is people who are already i

simon. >> thanks, diana. >>> straight ahead as simon and i continue, markets have the greece jitters today. but stocks still up sharply for the year overall. the economy seems to be improving. so is it risk-on or risk-off? should you bet on upside action or be more cautious? >> update you on three stocks we talked about yesterday on "power lunch." linkedin earnings came through beating expectations. look how it rocketed. activision down. true religion certainly disappointed with its results today. a bad miss there. lost almost a quarter of its market capitalization. i love that my daughter's part fish. but when she got asthma, all i could do was worry ! specialists, lots of doctors, lots of advice... and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's different. we have access to great specialists, and our pediatrician gets all the information. everyone works as a team. and i only need to talk to one person about her care. we're more than 78,000 people looking out for 70 million americans. that's health in numbers. unitedhealthcare. so -- tell me again

now, when you listen to nina simone doing "mississippi god damn," you think back to the disillusionment that ann moody describes at the end of coming of age in mississippi, and i think you can understand simone's anger which, of course, she's responding to the assassination of medgar evers and -- ♪ ♪ everybody knows about mississippi god damn ♪ ♪ >> the song of is simone's response to the murder of civil rights workers, the bombing of the 16th street baptist church in birmingham. ♪ ♪ they try to say it's a communist block ♪ ♪ but all i want is equality for my sister, my brother, my people and me ♪ ♪ my people and me ♪ you lied to me all these years ♪ ♪ you told me to wash and clean my ears and talk real fine just like a lady ♪ ♪ and you stopped calling me sister sadie ♪ ♪ my country is full of lies ♪ we're all gonna die ♪ i don't trust nobody anymore ♪ they keep on saying go slow ♪ yeah, that's what they say, go slow ♪ ♪ well, that's just the trouble ♪ ♪ desegregation, go slow ♪ matched with anticipation, unification ♪ ♪ go slow ♪ i don't see it ♪ i don't feel it ♪ i don't know i don't

>> i think not so hot, simon. mean, this company projected much lower than projected subscriber growth for 2012 despite the fact we're expecting some good auto sales. the company raised prices for the first time. and that drove some subscriber losses. and i think they're going to be facing increased competition from pandora. >> hot or not, john kacarney. >> i said not as well. the low growth subscribers is troubling for the company at this stage. they should be able to boom and move ahead especially with car sales picking up. and they don't see that happening. so neither do i. >> switch to linkedin. julia, what do you think? this one hotter than sirius? >> i think this is hot. linkedin reporting after the bell i think it's going to benefit from the jobs market picking up. two-thirds of revenue -- more than two-thirds of its revenue from company payments. a lot of that is recruiting. linkedin will benefit from a hotter job market and the fact it's stealing market share in the recruiting business. people are just mo

>> big news here in tech, simon.isco basically suing in europe to stop microsoft's acquisition of skype. they say their end goal is not to actually stop the acquisition, but to get europe to attach conditions to it. mainly they want europe to make sure that skype is interoperable with other video calling systems. cisco has several of these itself. its telepresence, tanberg, they want to make sure that various systems are able to talk to each other. microsoft has bought skype and is trying to integrate that consumer product also with its enterprise link offering. talking to people in the industry here, this is a very interesting move from cisco. especially because cisco's products in video conferencing haven't always been the best at interoperating with others. but europe did atta tach a condition to cisco buying tanberg, saying cisco had to interoperate. saying what's good for the goose is good for the gander. >> josh brown, we've been here before with rulings for microsoft, have we not? >> this is what microsoft has

>> well, simon, under the u.s. practices act a subsidiary of a global company that has operations here in the u.s. if there is any sort of payment to officials that would be under the fbi's jurisdiction under the fcpa. and that's something that could come to light. one of the lawyers for the hacking victims is expected to come to the u.s. in the coming weeks to explore that idea. so that's definitely something that we could see happen here. >> ladies, we'll leave it there for the moment. thank you both, sarah and kayla. >> thank you. >> just over two hours left in the trading day. our charts of the day and which dow stock will be the biggest winner if the dow does hit 15,000? you sent us your picks. we'll have the names next on "power lunch." tdd# 1-800-345-2550 let's talk about fees. tdd# 1-800-345-2550 there are atm fees. tdd# 1-800-345-2550 account service fees. tdd# 1-800-345-2550 and the most dreaded fees of all, hidden fees. tdd# 1-800-345-2550 at charles schwab, you won't pay fees on top of fees. tdd# 1-800-

thank you simon, thank you robert. a pleasure. captioning sponsored by rose communications captioned by media access group at wgbh access.wgbh.org

ty, back to you. >> simon, thank you.p next, businesses sitting on tons of cash and paying historically low taxes overall. is the time right for corporate america to really ramp it up and start hiring big time? "power lunch" debate on deck. >> and at least one iconic american company is doing just that. they are highing and jane wells is live at a caterpillar plant in arkansas with the story for us. hi, jane. >> hi, sue. i have my mandatory gear on. the cap, the safety goggles, my steel toed clogs. more americans are going to be wearing this gear in the coming months, but do they have the skills to do the job? we're going to talk about that after the break. i love that my daughter's part fish. but when she got asthma, all i could do was worry ! specialists, lots of doctors, lots of advice... and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's different. we have access to great specialists, and our pediatrician gets all the information. everyone works as a team. and i only need to talk to on

it's simon. you mentioned glencore may have more acquisitions in mind. does that mean the other big players are going to have to look to go out and buy more players and more competitors and does that mean more consolidation in the industry, how much pricing power will they have in future contracts? >> that's the great question. the trend has been consolidation and you end up with one mining company that produces the world's commodities and no one wants that because they'll have tar too much pricing power. diversification and size does help to balance out the risk. the problem is that regulators don't like it. ngos don't like it. customers don't like it. you saw the fearsome opposition of a merger. they will take a tough line with this merger, too, even though there isn't the sale overlap. everyone will want to buy everything they can get their hands on, there are some severe head winds against that, worries about competition and worries customers will get squeezed too hard. >> speaking of custome

>> i agree with simon. i think in the early stages of the market recovery we see the sort of like the lower rate, lower ranked stocks play catch-up. that's what we saw with bofa, that's what we saw with city. i prefer to stay with the quality which is jpmorgan and wells fargo. the other issue i'm worried about in terms of citi is they still have to raise capital. if you take a look at the cds spreads on banks since the beginning of the year, they've come in, in a major way. which means that the credit markets feel a lot better about them. that also is not completely reflecting stocks. and contrary to what zach says i still think they're defensive. multiples are dirt cheap on the quality names like jpmorgan. >> yeah. all right let's move on to our next trade. amazon the 900 pound gorilla in the retail roompy. which brick and mortar stores are most vulnerable to amazon and which can hold up against the online retailer? david gober out with a detailed breakdown. good to have you on the program. >> thanks for h

talks to the you pull it off head of political science at moscow's higher school of economics and simon shuster time magazine's moscow correspondent he asks what's next for russian democracy. well. science technology innovation all the latest developments from around russia we've got the future covered. hello again to welcome to spotlight the interview show on our team the now we're not and today we're talking about of lattimer putin's view on democracy during the last twenty years russia has been going through a democratic transition success has been made by the way wasn't easy and there were ranters through as the presidential election gets closer many speculate on how this process will continue if either of the candidates is elected this week the favorite in the race prime minister putin expressed his opinion in an article seen as part of his electoral benefit so is he planning to make russia more democratic and how discuss it with the head of the general political science department at the high school of economics mr coffee and mr simon schuster head of the time moscow bureau. over

simon, do you know? but the numbers are much higher than ours. they were all put in place after those earlier chris's, as a lesson from those chris's. and it seemed to have paid off fairly heavily. >> do you know the answer? >> 20% is not an unusual number of capital in these conservative systems that have previously faced serious crisis. >> 20% pressured -- do they measure on a risk weighted asset basis as well? >> that is a deep problem across all these systems, but they are much more careful, have been much more careful. the europeans made a huge mistake, because we made a huge mistake. >> we just had a company go down in part because of bets on sovereign debt. dr. lerrick. >> i echo simon's comments about the basel rule. i would raise two points. first, there's one true law of economics. that was first enunciated by the governor of the bank of england in the 19th century. every regulation will be circumvented. when you start setting out very precise rules, you are setting in motion an entire system of people. certainly spending their lives th

let's talk about we want to start with simon cowell i guess. >>> yes, simon. >>> blowing up the showg they are just wiping out the show clean, starting over they have fired paula abdul, they fired nicole, and they also fired steve jones the host of the show, so the only people left are now simon cowell and l.a. reid and simon was the head man behind this and for him to fire paula abdul is a pretty big shot but never the less she did respond yesterday saying look, this is the way tv goes some times you got a gig some times you don't she says i have been around long enough i will find another job and move on and simon said look i wish everyone the best of luck it didn't work out on the show but he does feel like he wants to work with paula abdul once again in the future i am just thinking i am not sure i would trust him he takes her on shows and she gets fired in the long run i don't know if they gave the show a long enough period to build up those viewers american idol when it first debuted wasn't the number one rated show instantly you had the build up that audience so i think maybe

the head of the general posner sounds department at the high school of economics mr coffee and mr simon schuster head of the time moscow bureau. over the last two months russia has seen the biggest really since the time of yeltsin an active electorate and they did political debate is what makes the current presidential race different from the previous two it all started with protests over the stay do my election results last december when the ruling united russia party won which triggered ballot riggin accusations ever since the opposition has regularly how this rallies and has become exceptionally active online demanding changes that would make the election process more transparent last weekend however the protesters had to face the fact that the . government supporters are also ready to defend their point of view on the streets according to the data he should by the police the pro-government rally even outnumbered the anti government one in their position addressed both sides shortly after the meetings in the other of his pre-election articles the prime minister's manifesto published

our political correspondent simon young as in the -- is in the studio. "i am sorry."hat is one of the messages we heard. how important is this? >> i think it is tremendously important for the senior representatives of the german state to show that germany takes these killings, this unprecedented series of cold- blooded murderers, especially seriously because of the racist motivation behind the. today, of course, the focus was on the victims and their families, some of whom suffered personally, and then they were objected -- subjected to police questioning. so, today was a moment of reflection for everybody. i think it was important to show the state takes these crimes especially seriously. >> simon, the government sent us special message, but what lessons are learned? >> the main lessons that have been learned are by the police. they have excepted there is a major failure here, particularly in sharing information between the different law enforcement authorities around germany. the problem is, you have a decentralized system. they did not always share information opti

learned simon welcome to the share thank you for being with us well first of all did this article give you an impression that putin really considers the civil awareness in russia his own achievement or it's more important for him to make others believe that one of his main goals is democratic is ation in russia. well of course yes to make democratization part of his pre-election strategy and image because he realizes now after the protests that have been going on for two months little bit more that a huge portion of the population in the electorate demand that kind of democratization they had some hope of it being achieved under british presidency. in his rhetoric if not in his actions gave some hope that democratization was on its way but after they made their switch and put in so he's coming back to the presidency there was no there was no certainty among among the liberal middle class segment of the electorate this was happening so yes britain has to offer this how genuine it is it's a big question you know you have to you have to wait for actions to back it up the debate is this is

next, we have simon crosby. he is an entrepreneur, who has just launched his latest company, and he might tell us a little bit about it. before that, almost just about a month ago, he was the cto of citrix systems. he got there by selling his last company to them. that company has developed some of the key virtualization technologies, which enable the cloud. he made a big contribution. thank you for that. last but definitely not least, we have jeanette tomlinson, the cto of our very own, dear city of santa francisco -- gina, and sen. she has had a very daunting task of taking the legacy infrastructure of the city and moving that to a professional data center. but also, setting up a virtual private cloud and making a foray into the public cloud. she offers a unique perspective as a large government user on cloud computing. she was also the cio of the san francisco municipal transport station at 40, and she was also managing clorox's data centers previously. thank you for being here. with so much brainpower and pr

roger simon joins me now to talk about his article.for your time. >> thanks for asking me. >> well, obviously, we've had many republicans on and you see them on msbc and michael steele and the west say they're really happy this is a weed out process. this is how you get the best candidate to face off against the president in november. >> well, that's what they say on tv. that's how it's supposed to work. it's supposed to be darwinian, the survival of the fittest. the strong eat the weak. but we've eaten the weak for quite awhile now. and we're still looking for that strong republican. the race has gotten down to ron paul, newt gingrich, rick santorum, and mitt romney. romney was the front-runner for week after week after week. now rick santorum is. but you find me a republican leader who privately will say, rick santorum is going to be the next president of the united states. they're not saying that. they're saying if we nominate rick santorum, we're going to lose 35 states. >> you write in your article that "mitt romney is hoping that

maybe simon would address that. i think time will heals the wounds from the financial crisis down the road. >> i think we have the exact po sit of all clear coming from europe. we had a meeting of the coalition government in greece, and it would happen that from that today, importantly the man that may be the next prime minister of greece, has refused to sign the documentation that was demanded by the rest of the euro zone that he would continue us austerity. they were supposed to sign off, or starting that process that would lead to their debts being paid at the end of march. now we have a crunch, tomorrow they really need to announce on their conference call which will take place instead they are starting the terms of the private sector greek swap, the debt swap. if that doesn't start tomorrow mari maria, the end of the time frame they can get it through before march, that was a pre-cursor to getting the money out. a very power full game on the way that if they get it wrong, could have very serious consequences fo

simon, we'll see you later for the european close.r starts right now. >>> most americans really can't afford to retire and funding trends today by buying longer assets priced near zero. so heavily invested in the u.s. >> in particular china and the opec nations, i felt the stance was by far the strongest. >> we wanted a cyclical bounce to translate into a secular bounce. that's what the markets need to sustain this wonderful return so dpar this year. >> people often prepare coke and protecter. this is opening rebellion, and this is a quarter you can count on for coca-cola. >> if they come back, i think citi's earnings can come back. as far as the dividend, i think it's clear that they're often under the control of the government, and i think like bank of america, until you deliver, you don't get that dividend. >> prepare for the opening bell. there they go at the big board. >> i just made a commitment to keep rates low for three years. you know, we've had one month of strong data. i wouldn't expect him to back away at all. >>> good mo

one of the last things simon said, listen, there are going to be a lot of horrible stories that willbut let's hope there is a lesson, a positive lesson from all of this. you have had to deal with yourself being in the press. your daughter being in the press in the tabloids. whitney houston. what is the advice, what is the takeaway as you see it here? >> well, you have to understand something. we live our lives every day in the public. more so now than ever. and just there used to be a time when all you had to do was survive your own craft. they didn't know anything about your personal life. we didn't know about elvis and the back ground. we didn't know about all these tragedies that were happening. and now we have every single day there's a tweet, a blog, there's a blurb about some part of your personal life. now, from a stand point of an artist, we're a business of psyche. how can we hold ourselves together and still maintain the voice, the psyche of who we are and how do we maintain that? can you imagine the pressure of trying to be who you want to be and still with all this swirli

>> simon, obviously i know you're back in britain. going to be one of these times, piers, where you're going to remember where you were when you heard the news, it's that significant. i must have had 100 text messages already. i am absolutely devastated by this news. i'm so sad for her. she was undoubtedly one of the greatest superstars of all time. one of the greatest voices, you know, in our lifetime we're likely to ever hear. and to hear this news, it's really, really upset me. it really has. >> simon, where do you think whitney houston will rank? tony bennett came out and tweeted that for him, she was the greatest singer that he ever heard. what do you think? >> i always looked at whitney and mariah, they had this fantastic rivalry, but massive respect for each other. but for me, whitney, mariah -- whitney, ever since i've been doing this job, particularly talent shows over the last ten years, the number one singer anyone wanted to emulate, if they really wanted to be a superstar, it was always whitney. we would hear whitney songs

simon cowell touched on this and lionel richie. it got harder and harder to be a superstar in the music business because of the ferocious attention from the media and the internet and so on. do you feel that? do you sense it's becoming ever more pressurized with the environment to stay at the top? >> it's ever more pressurized, the thought of having a body of work that is compelling this somebody wants versus one song that somebody wants to download with the music competition and it's different than when whitney arrived on the scene. now with all of the media and the internet and twitter and all of the television exposure and the pressure is outrageously enormous. then be able to survive everything that will come at you. >> you knew whitney well. what kind of woman was she? most people earning you the caricature of the newspapers and the magazines and so on. what was she like. >> the whitney i remember was this absolutely stunningly beautiful young girl with this golden voice. smiling, laughing all the time. a church girl who came

you're right. >> isn't that true, simon? if we get a really big number, you could say, well, the first ltro worked out really well, maybe this one will. on the other side of the coin, you look at it and say, this number is so huge, maybe the banks are a lot worse off than i thought. >> a lot of the big houses have put out notes talking about the lower diminishing returns around whether or not longer term the money will go into the sovereign debt market where people will book profits on the huge gains we've had. i think the question on the greek cds, it is the unknown unknowns that are a real danger. if on thursday we're now suggesting that they will trigger cds, we know that the naked exposure there is about 3 billion. it's neither here nor there. we know also, of course, that the ratings agencies are downgrading in separate developments, greece to default status. what we don't know is in the trillions and trillions of over-the-counter derivative markets whether that has any implication, for example, or not. it's now we're r

happy valentine's day. >> you, too, simon.t's only fitting to take a look at some names that could give your portfolio a little love on this holiday. $17.6 billion will be spent on valentine's day. that's an 8.5% increase from last year. lovers will spent $4.1 billion on jewelry. want to profit from those purchases? tiffany could be a winner. last year shares of tiffany rose 4.7% in february. lately the stock's been squeezed by rising commodity prices with shares off 3% year to date. want to profit from the $1.8 billion in flowers expected to be bought? take a look at 1-800-flowers.com. shares have been volatile in the past. but year to date, shares up 40%. trading at just over $3 a share. and who doesn't want a sweet treat? $1.5 billion could be spent on candy today. shares of hershey gained nearly 12% last february though commodity costs are being felt here, too. hershey's down 3% so far in 2012 partly because of higher cocoa prices. roses are red, violets are blue, i have a stock for you? $1.1 billion will be shelled out on

simon johnson, sr. fellow at peterson institute and professor of entrepreneurship at the sloan school of management. dr. johnson has testified before this committee on several occasions and we welcome him back this morning. we also have dr. fred berkston, director of the the peterson institute. he recently announced after 13 years of ably leading the peterson institute, he steps down as director and focusing more of his time on research and writing and i commend him for his year of leading at the institute and wish him well in his further endeavors ppd he's testified many times before the budget committee as well. we also have with us this morning, dr. adam larrick, visiting scholar and someone deeply knowledgeable on european affairs having spent the last two years there. we look forward very much to your testimony and welcome you to the senate budget committee this morning as well. i'd like to begin by briefly reviewing the situation as i see it in europe. to be clear, what is happening in europe to b

simon, do you know? but the numbers are much higher than ours. they were all put in place after those earlier chris's, as a lesson from those chris's. and it seemed to have paid off fairly heavily. >> do you know the answer? >> 20% is not an unusual number of capital in these conservative systems that have previously faced serious crisis. >> 20% pressured -- do they measure on a risk weighted asset baas

we'll start with simon johnson. dr. johnson, thank you, again, very much for being here. please proceed. we'll go right through the witnesses. and then we'll open it up to questions and we'll dozen-minute rounds and -- we'll do seven-minute rounds. dr. johnson, please proceed. >> thank you, senator conrad and johnson and thank you also for placing the conversation today in the context which you just did of the u.s. budget and our unsustainable situation. i think that is absolutely correct and i'd like to frame my remarks very much to responds to that. i'll make three points. first of all, the eurozone has already failed. the eurozone was established as a abc onof the build a large and more powerful economy that this hadn't worked. as you said a moment ago, fiscal mismanagement lies at the heart of their problems and i completely agree. they're trying to solve fiscal problems through, i think you might call it, monetary solutions. i might call it monetary innovations, a less positive word. i don't think this is going to end well. for them or for us. and with regard to your