they have suffered terribly from chronic underinvestment. roads three major u.s. are in mediocre conditions. one in four bridges are either functionally obsolete or structurally deficient. the federal highway administration estimates that $170 billion is needed annually just to fix our crumbling roads. most americans are chunking water infrastructure is nearing the end of its life. there is an estimated 240,000 water main breaks per year. reports say the water system needs one trillion dollars and improvement. america's electric grid is no better. ilionperately needs a 760 dollar shots in the arm by 2020 to keep it from failing. the number of massive blackouts? have increase. were 76 major blackouts. .n 2011 there were 307 can you imagine if the internet blackout 300 times a year? no. it does not. the internet is not regulated as a public utility. thrives, watered by private capital and a light regulatory touch. it does not depend on the political process for its growth rate. this is why broadband is the facet -- fastest t in our country. the speeds have increased

he argued that true public utility suffer from chronic underinvestment -- and that the internet thrived precisely because it is not treated as a utility. >> because the internet is not regulated as a public utility company grows and thrives in a watered by private capital and a light regulatory touch. it does not depend on the political process for its growth or the extended drought of public funding. this is why broadband is the fastest deploying technology in world history, reaching nearly every citizen in our expansive country. driving speeds have increased 1500% in the last decade. america's internet providers $1.3 chilean since 1996 to make america's internet world class. % of thetry has 4 world's population, but attracts 25% of all global investment. regulators overseas have begun to envy this level of investment . >> so that is the former fcc chair, now represents major industry, michael powell, son of colin powell. your response to what he had to say? you certainly had run-ins with him as head of the fcc. those under michael powell that the broadband business was listed as an in

we are in this situation largely because we have suffered from many decades of underinvestment in our infrastructure. and as we look towards the future and know that we expect hundreds of thousands of workers and residents in the city in the

we are in this situation largely because we have suffered from many decades of underinvestment in our infrastructure. and as we look towards the future and know that we expect hundreds of thousands of workers and residents in the city in the next 20 years, we can assume that the situation can only get more acute. even though we had great deal of success after 2011 adoption of street bonds of fixing our streets. we are still in a situation that over 50% of our streets are in need of paving. that has impact in safety and costs. people spend several hundreds dollars a year repairing their cars from our streets. and as people move around on foot and bicycle they have difficulty. on the transit side we know that our reliability issues stem from the infrastructure. we have many facilities over 100 years old. they have never had a full complete overhaul to accommodate today's fleet. we have a situation where our fleets don't fit in our facilities. what would be most efficient is to raise a vehicle on a lift, to get underneath it to fix it. instead we have pits in the facility that people hav

they underinvested in the product line. it took them longer than they would like to. they had to push their laser line longer than they wanted. they are not seeing a significant demand on the inc. side to offset the deceleration they are seeing in toner. that is the old-school current market. they also released the print management services game. they come into companies and they help them consolidate their printing so that they can have 50 people using the same printer. now the product line is stronger. they are consolidating and they have the services growth earning to happen. when they get that engine going, they will have higher margin inc. sales as opposed to toner sales. before that, they had too much inventory and supply. it is still a little bit of a problem. i believe that print can reemerge and be a area for growth going forward. >> it all comes down to ink and toner. thank you very much. we appreciate it. still ahead, why you cannot order the latest j.k. rowling novel on amazon. there is a big battle against the book publishing giant. you can watch us strea

they underinvested in the product line, it took them longer than they like to get in the color laser space. they had to push the laserjet line longer than they want. they are not seeing a significant enough demand on the inc. side to offset -- the ink side to offset the deceleration in toner. relate to the services game, which is the business of coming into companies and helping them consolidate their print so they can have 50 or a hundred people using the same printer. is their product line stronger, they are consolidating, they have the services growth starting to happen. when they get that engine going, they will have higher margins ink sales as opposed to toner sales. this is a transition business. for that, they had too much inventory and supplies, they have that more and control now. i believe the print can reemerge, and be an area of growth for the company going forward. >> it's a trick that that comes down to toner. thank you very much, we appreciate it. still ahead, why you can't order the latest j.k. rowling novel on amazon.com. with theattle publishing giant hachette, next

in our and the relative to our main competitors, underinvesting in upgrading our infrastructure relativeto main competitors. any comment about what value it would be to our economy and recovery significantly increasing short-term investment and sustaining long-term way our investment in infrastructure and research development? >> spending in the short term on infrastructure would tend to create jobs or stimulate aggregate demand. from a long run perspective i believe it has benefits for long-term growth. studies of the factors that determine long-term growth consistently point to r&d which influences the pace of technological change, productivity growth as well as investment or capital spending both private and public. >> thank you for your testimony. >> senator portman. >> thank you, mr. chairman and thank you for being here today, chairwoman. you have had to answer a lot of questions and a lot of things have been discussed. one that i have always been curious about is when you say you will reverse this quantitative easing which i view to be at historic levels, one thing you talk about

we have underinvested in education, that is obvious. we have to reverse that.he other source of skilled training are businesses, and businesses also pulled back on the amount of resources they are devoting to raising the skill levels and educational attainment of their workers for lots of reasons. that's something we need to focus on. we have to get more creative. there are ways for a government and the private sector to partner, to put more resources to work, it raise the educational team. at the end of the day that's the only way to address the problems the middle and income groups face in the future. >> i read an oped you wrote about a pull-back in the one thing that america generally speaking does better than most place, and that is entrepreneurship. what is that about? >> yes, i do worry about this. it goes to the 20 somethings, i think, that have been locked out of the workforce because of how bad things have been going. those 20s are very, very important to getting the experience and skill set necessary to start new companies when they get into the 30s.

saying they don't like the market should also have to reveal how they're going for the year and how underinvested they are. someone screaming bubble with a 50% or 60% gain is called wrong. it's not early. it's just wrong. maybe the bubble talks are wishful thinking and still others characterize the market as a bubble because they don't understand there are different kinds of markets and many different kinds of overvaluation that aren't bubbles. there are, indeed, lots of different variations of bubbles. they're not all the same. for example, there can be stocks that have established cultlike status as was the case with twitter. that was just one of those i love twitter so much i'm going to tbuy the stock retail bubble. twitter didn't prove up to the task, way too expensive institutionalwise. maybe tesla down badly on a quarter that didn't suit the growth enthusiast which is have more rigorous parameters is no longer up to the task either. then there are the sport squeeze bubbles, stocks guys decided to short and because of the peculiar nature of the way short selling works you first have to borro

they won't make progress without the security to make brave political choices and we're underinvesting in that. >> anyone else? last 17 seconds. >> one specific reform that i would recommend is that while the libyan islamic fighting group which dr. weary referred to, issued divisions breaking from al qaeda, i think it is important for the u.s. to be aware whether some figures within government are also helping jihadist groups. one thing i think we learned from our experience in egypt is that can be very damaging. one figure in particular i would draw attention to is abdul hodge. former libyan fighting group member whose media was member of the global islamic media forum which is jihad it forum. they celebrated his advances in government. according to regional media he is providing shelter to the amir ansar al sharia, a jihad it group in that country. wheel we're helping libya it is great to be aware and -- jon: you may have caught them over the last hour. bombshell developments on capitol hill concerning benghazi terror attacks raises serious questions about the obama administration ac

recognition -- there is a great brand name here, but it is a very old brand name and it has been hugely underinvestedes. investments needed are significantly greater than what the plan is at this stage. >> on valuations, this is a lot cheaper because they have gone through such a tough time. is it fair to compare it with bmw? bmw has been outperforming. it has had a head start. this is a ceo that is smart to rid he has the guts to do the changes that many others would not have done, especially in italy. >> look, he is going the right way. the problem is simply that he does not have the money. that is the problem. they're both automotive investments. has a tendencyny to lose money, one makes. european optimism is pretty extreme at this stage. if you look at the free cash outflows and the returns the company is making, it is difficult to conclude that the stock is good at this stage. >> what would you expect to be coming down the road as a credit analyst? >> something from the presentation yesterday is that a ones forecasting billion improvement in net income by 2016. there also forecasting four billio

underinvested in the u.k. and we are encouraging our business clients to invest.ood place to invest and me has made massive investments to help accelerate growth. >> when is the first rate hike? >> probably 2015. >> nigel, thank you very much. >> we will get more insight into the latest earnings from sain sbury. stay with us. ♪ >> welcome back to "countdown." sainsbury has released its earnings this morning. at the numbersok with the cfo john rogers. thank you for joining us. let's talk about how the business has performed. the numbers beating estimates as market share has stayed at a peak. you were talking about how the price war was a bit of a phony war. are the headline still being overdone? >> the reality about our sector is that there is always a price war, lots of competition on price. we often see often headline -- lots of headline announcements about ourselves and competitors cutting prices. we have seen heightened activity over the last few weeks. >> rivals have been suggesting that they will throw a certain amount of money at pricing over the next months

we believe the industry is still a little bit underinvested, and there is potential for the market tolier. how do you go up with the spiders? >> you want to play out of the money call option, what i have on here is a problem that is complicated if you're thinking about options strategies but i want to sell this, so i am going out to all of the options and the spiders and i want to sell the strikes, and by three times as many at the 198 call. i am wanting to buy three of them. this is a leveraged trade with an upside. you can get this right now for almost no money so if the market really does decide to back off and sell off all of the options expire. and you can regain anything that you want. but the market does decide to go higher, and it starts to go higher in a quick fashion, out of the money calls -- which are very cheap around eight or nine can get thatu exposure to the upside a much more leveraged way. >> what was your time frame? >> this is august x -- expiration but if you look at how the numbers -- and how this traits before july, the real downside is on one dollar. but if you

they have thrown to the ends of pounds upgrading the business trying to invest after decades of underinvestmenthing, and signs of a that was the best ever in the first three months of this year. the quality is getting that are in they said they will increase prices. >> they have also been bringing in a new team. those who defend them say you have to wait till the third or the fourth quarter to see what their impact will be on the clothing and underlying performance. this is an area that is far more profitable. sales are not doing as well. they have to find out how they can lure in the female fire in particular. interestingly they are focusing online as well. that is where the expansion plans have been made. trying to get us to buy online. 150 million pound website they hired from tech city. they have movers and shakers and they do target big. one billion pounds of sales. they can draw in more than their stores that they have 800 of. the distribution center is not paying off. you have had your three-year land of investing, when well investors get money back with the worlds eyes trained on the ca

what would you see is underinvested in right now?ill now, the multiple retail is still -- there is a lot of negative sentiment. it has to be set right. that is number one. number two is power. of money percent invested in india comes into power. the country needs power. without power, no investment in growth, no business can grow. then logistics. one third of what india produces goes wasted. agriculture doesn't always reach the market. we have to control inflation as well. we have to put logistics in place and put the warehousing and place. we have to put the roads in place. areave to make sure we doing this for inclusive growth. the first thing i would say is it has to be inclusive growth. are below theple poverty line. that is not good. decrease the gap between poor and rich. in one sense you see the extreme wealth, and the other you see the extreme poverty. yet the put a system in place for health care and education and sanitation in making sure that everything that is happening in india is being handled rightly so there's not so

terest is terribly misguided as a country, we are greatly underinvesting in research. and i thank the gentleman for standing up for the -- for n.s.f. research. mr. fattah: i reclaim my time and yield to the gentleman from north carolina, as much time as i have left. and there will be another amendment on n.s.f. you can speak to. >> can i inquire how much time is left? the chair: 45 seconds left. mr. fattah: we yield -- reserve -- i mean -- the chair: the gentleman yields back. for what purpose does the gentleman from alabama seek recognition? >> strike the last word. the chair: the gentleman is recognized for five minutes. >> yes, madam chair. i rise in opposition to the amendment of my good friend from georgia because it would negatively impact a range of n.s.f. activities. first amendment would hamstring n.s.f.'s main operational account that funds activities like grant oversight and procurement. i know the gentleman cares very strongly about protecting taxpayer interest and i don't believe that making it more difficult for n.s.f. to monitor and oversee its funds hel

it's just flat-out underinvestment in the public sector. >> he would argue the government argueng andprivate investment? investment is important but is theson it's subdued government below where it needs to be. >> this is too much, we need this to be algebra-freight. >> let me explain -- most people think investment means private investment. there is a hugely important public-sector investment component. partition between private and public is key in the goes to the angst we get when we talk about infrastructure. meth?escape velocity of >> no, but you don't want to pick one model or another. animal spirit matters. rejecting confident -- injecting confidence into the system and getting a sense the trajectories different is important. so is creating the rock-bottom foundation on which an economy generates growth. that is human capital, infrastructure, and then follow-on private sector investment. >> water banks doing? getting out of certain market activities but does debt -- but does that reduce risk? it probably does not change the risk profile. business is a response to an unstable fi

and again, the american society of civil engineers estimates that underinvestment in this inland waterway system costs our businesses $33 billion in 2010 and that could rise to $49 billion in 2020 unless we act. this wrrda bill acts in the inland waterway trust fund, clears out some of the backlog, clears out some of the things preventing important projects under that trust fund from getting done. another very, very important category, mr. president, that i certainly care about deeply, considering the state i represent, is flood protection and levee safety. not only does wrrda authorize critical flood protection projects, but also it strengthens levee safety initiatives to provide critical funds to state and local agencies to make sure that levees and flood protection systems stay up to par. there are over 15,000 miles of federal levees, almost 100,000 miles of nonfederal levees, protecting communities all around the country. however, many are graded in an unsatisfactory condition. these levees protect nearly 43% of the nation's population. so we need to make sure they're strong, they're

so looking back to the late 70s, early 80's, we had huge underinvestment in our infrastructure, hugebacklog of maintenance required. and so had recession public sector deficit. i'm sure that sounds familiar. so margaret thatcher launched an innovation program which included privatization of our rail reas but also the private finance initiative, which is the most commonly used p 3 in the u.k. i'll explain a bit about that in a moment. but traditional procurement had led to massive budget overruns and delays. an example is the scotish parliament which was budgetted to cost 67 million, in fact it cost 725 million. a hospital wing budgetted for 60 million cost us 209 million. so clearly something had to change. so the private finance initialtive in the u.k. is a procurement of the service on a long-term basis which is capital investment partially by the private sector, financed by bank loans, corporate banks. the private sector designs, builds, finances, maintains, and operates that asset and the public sector pays for it with either annual unitry charge of 20-30 year period or pay conce

as a country, we are consistently underinvesting in research. there's no substitute for the federal government to play the vital role that it has done in the past with the development of the semiconductor, the internet, the basic role it has played in dealing with health and medical research. now, i don't like how this legislation's been handled. this is an issue that should have been characterized by bipartisanship, by working together to make the research tax credit more effective. we could consider making it refundable to help smaller emerging businesses. we should take a hard look at constructive criticisms that have raised questions about how we could make it work better. that should be our job. luckily, this is the start, not the end, of the process. there will be more work that will be done with our friends in the senate under the leadership of senator wyden and senator hatch on the senate finance committee who already started down this path. what is very likely to emerge in the short term is not yet permanent but rather a one or two-year