ibm works witthe top 10 u.s. hospitals and at the net estates, the top 20 health care insurance companies, the top 30 pharmaceutical companies, and 18 of the top 25 techs. we have similar relationships in western europe, china, singapore, and i could walk you through latin america. we have a point of view, needless to say. we have validated a lot of what is required it in the smarter health care system. that is not about a computer chip. that is not about a device or server or robber. it is not even about the eleconic medical records which everybody wants to define as nirvana. it is not enough. it is important, but not enough. it is about the data. on this planet, it is becoming more instrument and interconnected. we are capturing data in unperson added volumes. in three years, i.p. traffic is expected to be one, followed by 21 zeros, bytes. they're coming in multiple forms through rich media, not tags, cell phones, cameras, capturing it from every system or event imaginable. from the farm to the shelf. billions

again, go back to amazon, southwest airlines, a ibm. what all of those folks to do is get the right information and the right incentives. that is what this is about to get the right information and the right incentives, and then tell people, go ahead. go do it. i would be open to new organizations helping out. this fall, the government will launch council care organizations. this takes medicare beneficiaries, it takes care of them better, it takes part of the savings and gives it to the federal government. it will set up the homes like the ones sam was talking about in vermont and other areas. a private firm is partnering with the largest hospital in michigan. a lot of innovation can be about how you actually run something well and how do create and take care of a complicated relationship. one other example of how to think of this. i have shown you, and i can give you a list, all the people who are billionaires' out of health care. everyone who is a billionaire in health care, with only one or two exceptions, everyone on this list made

ibm works with the top 10 u.s. hospitals and at the net estates, the top 20 health care insurance companies, the top 30 pharmaceutical companies, and 18 of the top 25 techs. we have similar relationships in western europe, china, singapore, and i could walk you through latin america. we have a point of view, needless to say. we have validated a lot of what is required it in the smarter health care system. that is not about a computer chip. that is not about a device or server or robber. it is not even about the electronic medical records which everybody wants to define as nirvana. it is not enough. it is important, but not enough. it is about the data. on this planet, it is becoming more instrument and interconnected. we are capturing data in unperson added volumes. in three years, i.p. traffic is expected to be one, followed by 21 zeros, bytes. they're coming in multiple forms through rich media, not tags, cell phones, cameras, capturing it from every system or event imaginable. from the farm to the shelf. billion

beginning with ibm, and it impacted by 2%, and u.s. steel, it turned a profit into a loss, and mattel, it reduced sales growth by 3%. so how much is at risk for shareholders? >> if you're looking at that impacting it, it is pretty negative. i think that there are companies doing a very good job making that predictable. if you don't have it ac predictable, you see -- ibm was a 4% to 5% discount on the share. this is a surprise they weren't made aware of aus the shareholders, and therefore got negative impacts. you have another companies making it very predictable, and therefore not have negative impacts on the share prices. >> tom: how do you assess a firm's interest and even ability to manage this kind of risk? >> what you're seeing more and more, as you're reading these analysts' reports and, quite frankly, their discussions on these earnings calls, and that's a great source to look at, analysts are asking the questions to all c.e.o. and c.f.o.s, how is that impacting your organization. if the answer is not succinct, they're going to

ibm works with the top 10 u.s. hospitals in the united states, the top 20 health care insurance companies, the top 30 pharmaceutical companies, and 18 of the top 25 [unintelligible] we have similar relationships in all western europe, china, australia, and i can walk you through latin america. a lot was required and what i would call a smarter health care system. it is not about a computer chip. it is not about a device or a server or a router. it is the even about the electronic medical records that everybody wants to find the path to nirvana. it is important, but it is not enough. it is about the data. this is becoming more instrumental and interconnected. we are capturing data in an unprecedented volumes. we are receiving these enormous strains in real time. they're coming in multiple forms for rich text and rich media, from self phones and cameras, from just about every system available, supply chains, water systems, traffic, poultry from the farms to the shelves. the most important point about this is not how

the ibm results came out weaker than expected. investors are also waiting for earnings reports restrain companies including goldman sacks. will see what that does to the numbers. for the first time ever kindle the books are out selling current card books by almost 50 percent. in his son says it sold 143 books for every 100 regular books over the last three months. on the motor co. says it plans to sell a plug and hybrid vehicle and a battery electric model in 2012. as part of its strategy to bridge the front. as we have reported senate democrats are report to try and break a filibuster clearing a path for unemployment benefits russian millions of people would receive an extension of unemployment benefits averaging $309 a week if asked. >> the senate judiciary votes today on the nomination of the lane and kagan. the only question is the margin of the vote that will approve this nomination democrats are united in backing taken and republicans so far your anonymous in opposing her. there is little doubt there to will not be confirmed

ibm fell 4% after hours. however, business is booming at halliburton after reporting an 83% profit surge, the oil company predicted high demand for land-based drilling will offset the current deepwater ban. >>> more fuel for the energy sector. china has efficiently surpassed the u.s. as the world's biggest energy user, a strong sign of continued growth for global energy demand. >>> investors shook off crumbling confidence from the nation's homebuilders yesterday, but today could be a different story. fresh data on housing starts are expected to hit a new low. >>> boeing boosted optimism on the street yesterday, landing more than $6 billion worth of sales for its wide-bodied planes. today yahoo! and goldman sachs are on deck to report earnings. keep an eye on chairs of amazon, the online retailer says sales of kindle e books now outpaced hard cover sales. no mention of specific models with steering problems. >>> and, finally, divers in the baltic sea found an unexpected treasure hidden in an 18th century shipw

ibm services solutions. different markets, different problems. >> susie: and since it is selling, since apple is selling to consumers, can we draw any conclusions about consumer spending, or is apple a special case, people will pay the money because it is from apple. >> people will pay the money because it is apple. it is the cool product to have right now. no question about it. i'm sure everybody else in the consumer electronics sphere of things would love to emulate that brand success. >> susie: thanks a lot, scott. and that's scott gurvey reporting. >> thanks. >> susie: well, it's an interesting view turn on wall street today, tom, with the dow coming back on the positive. it will be very interesting to see what happens. we were just talking about apple, if that sets the tone for trading tomorrow. >> tom: absolutely. lots of positivey. and negative around yahoo. among those things we'll get to in tonight's "market focus." it is the peak weak for earnings, giving the markets plenty to digest. a weak start

we heard from ibm yesterday after the close and goldman sachs this morning. both disappointing. that's dragging down both the financial and tech sectors. goldman sachs reporting a profit 83% lower than a year ago due to lower trading revenue and also that more than half billion dollars settlement with the sec over fraud, and also with ibm reporting afghanistan yesterday's after yesterday. revenue from cautious business customers and the impact of the european debt crisis because the euro fell it made the dollar more expensive for products to buy for europeans and ibm got nailed there. that's dragging down the market quite a bit. right now, dow down 124. apple should probable report nice numbers after the close today. looking for profit increase of around 54%. revenue up 77%. basically, all their product lines should have gotten a nice boost, with ipads sales for the full quarter for the first time. iphone sales will be interesting. we saw the 4 go on sale at the end of the quarter but there are some supply constraints there impacting the margins negative. but what's more interes

ibm and texas instruments have been under expectation, so this all soured the mood here on the floor, and stocks went down under 6000 points. >> let's get a look at how stock markets ended the tuesday session. similar for the euro index. new york and wall street, the dow in late trading, 10,230 right now and our currency versus the euro down just a tad, 28.86 u.s. cents. not making the grade. sources say germany has failed europe's bank stress test. tuesday, reports emerged that the real estate company owned by the german government is not healthy enough to withstand another crisis. >> germany's real estate company invested nearly 8 billion euros in greek bonds, and they say that is why it will not pass the eu stress test. 91 banks have undergone the test, and many are in germany. they are tested on their ab ility to withstand stocsk with at least a 6% capital ratio. early, only 4% was considered sufficient. it is unclear how much will be required to stay afloat, because risky securities will be spun off for bad bank assets. >> french air traffic controllers are beginning a one- day s

our first like to introdu the chairman and president and ceo of ibm ibm is the largest corporate employer in vermont. i have had the pleasure of working with the company, with sam, and members of this team. the company is a key supporter of our blueprint for health program, changed the waye provide and pay for health care in vermont. i know that this is exactly the kind of forward-looking project that sam would champion. he was appointed chairman and 2002, best knownor leading o of the most ambitious transformations in the company's 99 year history. ibm has made tough calls to get out of legacy businesses that the company itself invented and enter new ones, leading to future growth and novation. he did this not by the flashy path, but through the far more diffict and lasting path of reinvention from within. while running a state incorporation are different endeavors, i think we can all relate. another difficult task anyone in leadership struggles with these days is being able to adapt to an ever-changing economy. four years ago, sam offered a forward-looking piece on foreign affairs ident

ibm and texas instruments have been under expectation, so this all soured the mood here on the floor, and stocks went down under 6000 points. >> let's get a l lk at how stock markets ended the tuesday session. similar for the euro index. new york and wall street, the dow in late trading, 10,230 right now aour currency versus the euro down just a tad, 28.86 u.s. cents. not making the grade. sources say germany has failed europe's bank stress test. tuesday, reports emerged that the real estate company owned by the german government is not healthy enough t t withstand another crisis. >> germany's real estate company invested nearly 8 billion euros in greek bonds, and they say that is why it will not pass the eu stress test. 91 banks have undergone the test, and many are in germany. they are tested on their ab ility to withstand stocsk wh lst a 6% capital ratio. early, only 4% was considered sufficient. it is unclear how much will be required to stay afloat, because risky securities will be spun off for bad bank assets. >> french air traffic controllers are beginning a one- day strike exp

i worked at ibm a lot of years and a couple of tech startups. in 2000 i moved to france i learned about wine. i just started drinking wine there and learning about it, so when i came back to the u.s., i took some classes at uc-davis, and i also work of a bunch of different local wineries. last year i was an intern. that is when it really hit me that california wine is not well-represented in california. there is a lot of wine documentary's out there, and they portray european wines and the time-honored family-owned wineries. that is not the case. there are a ton of small wineries out there. we hear more about french wine than local wine. this is something i can contribute. i am keeping wine shop hours. it is local, small production lines. i feel for the project to succeed, i really need a tasting room, because it is probably something they have never seen before, never heard of before. that is how i got to the point where i am. in terms of why it would be good, i have a lot of community support. i am not sure if you got these letters, but i have

goldman sachs revenues were bound, ibm also in this morning. johnson and johnson posted higher soaked quarter net income but that was despite some recalls that effected things. right now taking a live look at the big board on the new york stock exchange the dow jones down 116 points. the nasdaq and s&p 500 also down. the nasdaq down 1.5%. >>> amazon.com reports sales of its kendall e reader has boomed since the price was cut. company executives say when it cut the price tag from $259 to $189 kendall sales, reached a tipping point. amazon has never released any sales figures for the device and still refuses to do so. amazon also announced it sold more e books during the last three months than it did hard cover books. >> 6:51. coming up on the ktvu morning news we will find out why some nail technicians are providing free many sciewrs today and where you can get them. >> plus music fans waited in a long line for a chance to honor a bay area gospel music icon. we will have the details of the special tribute today. >> good morning. right now traffi

. >>> on wall street investigators took off shaking earnings from ibm and johnson & johnson to send into positive territory. they overcame early sell off and broke 75 points. nasdaq gained 12 points. >>> after the closing, apple announced earnings and they grew 78% one year ago and they earned 3.50 per share we look closer propelling profits. >> at the same time apple was announcing their third quarter earnings, jill was going into this apple store to find her first mac computer. >> it got my hooked. >> apple says half the customers coming into thinker stores are like her, new to the brand. they credit their 78% jump in quarterly net incomes with ipad and the iphone 4 which came out last month. they report selling 8.4 million iphones and 9.4 million ipads and 3.7 million ipad. >> the numbers are outrageous. they're selling a million ipads a month. >> after highly publicized probr antenna for iphone 4 users. he says that issue has had no effect on sales. >> it basically says that since then they've shown no slow down in demand, and in fact they're selling every item that they can make and

. >>> late today ibm reported earnings of $2.61 a share beating forecasts but revenues totalling $21.7 billion fell slightly short of what analysts were hoping for a. shares were off about 4% after the close. >>> the doubt and nasdaq started the week with gains. the dow industrials closed 56 points higher and nasdaq gained 19 p this is a big week for corporate earnings and a strong report from halliburton led the energy sector. >>> san francisco could expect an economic boom if it hopes posts the next america's cup race. it came out today. the race would be held in 2013 or 2014 and could pump $1.4 billion into the bay area's economy and that is three times more than what the super bowl would bring. the report says the race would generate 9,000 jobs. >>> coming up on bay area news at 7:00, a fire in the south bay reasons concerns about safety. parents react to a new report that could be cause for alarm. details on the looming deadline for dozens of people who use 88 area transit center for their nighttime it shoulder. >>> cold temperatures in the forecast. i will have the details in the

tech stocks leading the way higher and among the stocks to watch tomorrow, ibm. higher profits but not enough to please investors. they share falling with after-hours trading tomorrow afternoon and apple reports its quarterly earnings. to washington, a faceoff over jobless benefits. here's how the rhetoric is rising between the president and the republicans. president obama marched out of the white house to charge republicans are 408ding unemployed workers hostage. >> it's time to do what's right. not for the next election, but for the middle class. >> reporter: the president brought out these laid off workers from new jersey and one from virginia and they could lose unemployment benefits if an extension is blocked tomorrow by republicans. >> the same people that didn't have any problem spending hundredless of billions of dollars on tax breaks for the wealthiest americans are saying we shouldn't offer relief to middle-class americans like this, who really need help. >> reporter: republicans say they are ready to help, but not increase the deficit by 34 billion. >

ibm fell a day after reporting quarterly revenues that missed estimates and was the dow's top drag. texas instruments also fell after missing revenue expectations. >>> also johnson & johnson's earnings came in below expectations. the company blames several recent recalls of popular nonprescription medicines and announced those recalls are the subject of a federal criminal investigation. >>> after the bell, yahoo! dropped sharply after weak advertising led the internet company to miss net revenue expectations. >>> as expected, bp announced it's selling various assets to the apache corporation for $7 billion to help pay for oil clean-up spill costs. nokia siemens won an eight-year u.s. contract worth more than $7 billion, what some say could be the largest cell phone order ever. >>> and, finally, a new poll shows in terms of customer satisfaction, thanks to constant changes and privacy concerns, facebook is despised by consumers as much as airlines and cable companies, two of the most perennially low-scoring industries. >>> the usc trojans react to ncaa violations, the nhl says no way

. >>> the european union opened two antitrust investigations against ibm monday accusing the technology giant of abusing its dominant position in the mainframe computer market. and, finally, "the hollywood reporter" reveals an unusual gift from 87-year-old viacom executive chairman sumner redstone to 29-year-old heather naylor, the lead singer of a struggling female rock band, the electric barbarellas. over $100,000 worth of his viacom stock. a spokesman for redstone who ordered mtv execs to develop a reality show about the band refused to comment on the gift. >>> well, garza throws a no-no, haren flops with halos, and the twins gang up on the royals. >>> plus, if he's not careful, ichiro is going to become better known for his glove than his bat. your early morning sports headlines are straight ahead. >>> in your tuesday weather, the 90-degree heat is once again spreading across the country. your regional forecast is coming up. you're watching "early today." >>> good morning. if you're just waking up, this is "early today." in sports last night, tampa bay's matt garza threw the first n

we compute consumer prices not a lot of inflation its earnings season some earnings are coming upper ibm and texas instruments a little less than usual pure the summer of discontent as wall street starts to say what our job is going to come. it's an important commodity rate now is jobs. weren't source short supply. here's the kicker is the job still, protect the election to swing to the republicans this year and create gridlock. wall struck street will pardon what happens. it's way too early to see. it's always about the economy typically president hasps starts to serve in the second turn they tend to lose their agenda when that happens wall street tends to party. >> this talk about disperse company web box trotted to conflicts with the web strategy. >> the demographic that you and i want more content from our internet devices on a lap tops, on our tv is and not necessarily the whole tv that's going the way of the dinosaur western industry more television shows and movies in lieu of that physical dvd or the blue or edt. read box are set ups in drugs stored cbs's you can go and get a movi

some big companies falling short on revenue expectations including johnson & johnson, ibm, yahoo and amazon.com. but most companies did come ahead of analyst expectations, apple had a blowout quarter for one, coca-cola, wells fargo, morgan stanley all beating earnings and revenue estimates. as did 3m, caterpillar, at&t, american express, microsoft, all dow components, by the way. meanwhile, federal reserve chairman ben bernanke spooked the marks with the semiannual testimony before the senate banking committee. bernanke said we are seeing, quote, an unusually uncertain economy. he did say though, that he did expect a moderate economy. about bernanke said the federal reserve was prepared to take steps, any steps needed, if the economy did take another leg down. he did not say what those steps would be. chairman bernanke may be concerned about an unusually uncertain economic outlook, but nigh next guest says he feels like the last optimist standing. he isser is me segal, professor of finance at the wharton school and uthor of "stocks for the long run." always great to have you on the p

and you remember this 1984 video, apple computer going after ibm. i am told did this in his basement and threw it up on youtube. what do you think when you see that? you have to be proud on some level, and not that you are an obama or clinton, but the significance of this? >> yeah, you said of the numbers, the surprise to me and all of us internally, the amount of media coverage this received. the number of people, the numbers of people that watches this from all over the world, that watched this video. i think it goes to illustrate again, this is something that people wanted. and across this phenomena of youtube, i think has more so that people were wanting a vehicle to distribute content. they wanted to share content they felt strongly about and there was no way to do that before. after the first iterations of videos on their computers, you started seeing more professional content being shared online. other thing i was really surprised, we recently did the debates for cnn for the democratic and republicans. from what i recall, we received record n

a tremendous amount of companies from ibm and hp and oracle announcing things like that and that's the kind of things that can be done and we're inviting to have a meet iing. >> what about perception of doing business in mexico? it doesn't have the greatest of reputations. >> that's what i was just going to say. this is going to be your second point. much of what mexico is doing, every country wants to draw in american investment i think but in this case mexico is coming out of the country and coming into silicon valley as well. but then that goes to your point. what sort of roadblocks are you having? >> in fact, the focus is how to go outside of the country and learn how to do things and we can learn how to do business here and establish in the u.s. and then seek venture capital. the idea is how to bring that foreign investment into mexico and provide the capability to do the high tech abilities and use the people and use the benefit to be close in technologies for example solar energy is hard to bring things from far away and do that closer to the u.s. and that's a strong advantage.

the main reasons ibm end goldman sacks reporting earnings that were less than expected on wall street. the commerce department says home construction of fell last month sold that weighed on ♪ [ horns honking ] ♪ [ male announcer ] come into an at&t store and experience tv like you've never seen before. ♪ for a limited time, get u-verse tv for only $29 a month for 6 months with dvr included. for a limited time, get u-verse tv the rally in support of the hon johannes mehserle and a counter protest against the former police officer ended peacefully with no injuries and no rest take a look at the scene yesterday it started as a group showing support for johannes mehserle it was the officer found guilty of involuntary manslaughter a counter protests started later with people shutting down opinions. here's what will sides said. >> * for the family of foster grant i feel sorry for them but i'm also for johannes mehserle it was our ran this mistake. does he have to be accountable yes but it was a mistake it was an accidental killing. >> 11 make a point make them understand your badge in

. >> reporter: after reporting a spike in profits, ibm now has $12 billion in cash. but the tech giant has cut more than 12,000 jobs in the past year and a half. corporate profits are surging. together the top ten u.s. tech companies are sitting on nearly $250 billion in cash. that's enough to pay more than 6 million workers $40,000 a year. but corporate america still isn't hiring. while profits are now nearly 6% higher than before the recession, the number of jobs ij nearly 6% lower. economist ellen zentner says consumer spending is still weak and businesses are worried about higher taxes and the strength of the recovery. >> the picture is getting cloudier and corporate america knows that. so they'll hold off on making capital investments and hiring until they're more sure of what the financial future will bring. >> reporter: but a new nationwide survey of businesses suggest the picture may be improving. it shows nearly a third of companies hiring in the second quarter. only 6% said the same a year ago. and nearly 40% say they plan to add workers over the next six m

we got disappointing earnings last night from ibm which saw a drop in i.t. services contracts and texas instruments lost business from a key customer nokia. asian markets are mixed overnight. europe is lower as well. we'll get data on housing starts this morning as well as earnings from johnson & johnson and goldman sachs in about 15 minutes and as you mentioned apple and yahoo report results tonight so expect to see sort of a reaction from them tomorrow morning. the dow gained 56 points monday to start trading at 10,154. the nasdaq was up 19 points to 2198. well, seeking a mortgage? don't get pregnant. i'm not joking. the "new york times" says lenders are taking a harder look at prospective borrowers whose income has dropped temporarily even if new parents plan to return to work in a few weeks banks may not approve the loans. experts say they're dealing with guaranteed income so be prepared to jump through more hoops. you may have to delay your purchase or buy a home you can afford on just one salary. interesting stuff when times get a little tougher. >> we

ibm and goldman had disappointing so the dow is up to them we will keep tracking it. >> a look at the weather shot of the golden gate bridge different than yesterday less often i know we are expecting more of coincidence i don't know. >> does that have something to do with the warm-up. >> were talking a couple of degrees are suit and that will continue through the work week. it will war against more today we are still seeing low clouds not quite is foggy all around most of the peninsula so could burn off quicker than expected san jose 55 by noon getting to 72 high today proper '70s back down to 74 by 8:00 p.m. satellite shows as were the fog is this morning said pushing for the bay incumbent selling most of the north bay through these days well but the peninsula is actually looking better than yesterday we will continue to see that fog along the coast but rain now through the 6:00 and some of what are we continue to see a bit more widespread than as we head towards 8:00, 9:00 it is receiving by about 12:00 we will see low clouds just finding the coast. your temperature strain on the '

delta airlines, ibm are among those due to report second quarter results today. six shares of boeing rose more than 5 percent after the company received a $9.1 billion order from memorex for 30 of its 777 aircraft. the visas the cost of dealing with the os will has reached nearly $4 billion in new business survey finds that although the price of the are the cases should say is slowing the economy did grow during the second three months of this year the survey found that 31 percent of businesses added workers between april, and june which is the highest level in three years and 39 percent of those surveys expect to hire more workers. the most since genera of 2008. manufacturers did the best will finance, insurance and research sectors of slows growth. 67 percent believe that 2010 growth will be more than 2%. 36 road party could win will become the youngest senator when he takes the office tomorrow to see the longest serving one robert byrd. that means democrats will beget a crucial vote in the senate to use that to pass the extension of jobless benefits. republica

. >>> stocks fell about 150 points after disappointing earning reports from ibm and goldman sachs. but the market recovered after news that bern bernanke will take steps to restore the economy. the dow rose 75 points, the nasdaq rose 24 points. for more financial and consumers news, go to our website ktvu.com and click on the business tab. >>> police force out homeless advocates who took over an empty building in one bay area city. >>> also ahead -- >> reporter: a vietnamese community activist attacked a pop singer on stage during a concert in the south bay recently. he says the attack is part of his personal crusade against communism. and here in the bay area, that activist may look familiar, see and hear from him coming up next. >>> and the gulf well cap may be okay. woman: did you bring the camera phone? man: i did. do you wanna go first? i've been waiting for this all day. ok, this is from... aunt stacey. introducing chase quickdeposit. just photograph the front and back of your check using the chase mobile app on your iphone, and hit send. it went through. this is so cool. thi

disappointing results coming out of goldman sachs coming out of ibm. they weren't awful but just not showing the recovery that we want to see. we'll get yahoo's financial reports after the bell as well as apple. we'll talk with john forbes of cnbc in just a minute. >>> playboy has launched a new website called the smoking jacket.com. it is supposed to be a safer work version of playboy, just the articles which is of course why you read playboy anyway. now it was supposedly safe for work. we looked at the website and decided it was too racy for television. we put these pictures on instead. yes the website is actually racier than what you're seeing here. their version of safe for work is not ours, at least i don't think so. i looked at it on my work computer. if i'm here tomorrow it's safe for work. >> we'll see. >> you can always say it's for research. >> i can do about anything. video games, x box. >> if you show up in a a little smoking jacket like hugh heffner, a little ascot. >> two chicks on each side. >> you didn't notice the little horns on his h

there's a resent ibm poll of 1500ceo's they identified creativity as the number one leadership competency of the future. for years commissioner wisdom has held that america's creative age would ensure it's global primacy. but maybe not. a to study indicates that creativity scores among both children and adults have consistently inched downward for the last 20 years. to consider all this now joining me from los angeles, ashley merryman, she's coauthored of the story and written extensively about child development. also from boston aaron berkowitz of harvard studies creativity and musical awe cheaflts. bruce alberts is a well-known bio chemists and former two term president of the national academy of sciences. i am pleased to have them here to talk about this important subject. let me begin with you brewing alberts. what is creativity. >> it's an important part of science and i actually thought about this a lot in terms of a scientist. you can't be creative without knowing things. and really creativity comes in science by taking different fields of knowledge, different approaches to problem

of ibm, we had health care economist, they all said the same thing. the data was crucial to this. so a state, for instance, can pass legislation, which we have done in colorado that requires an all-payor data base. so you have a sense going into the data to see what people are paying. now, where the federal government comes in is that's not all that good if you don't have any access to payor information around medicare. so here the federal government has the data base that we need the access to, and why you're going to have to have sort of a shared solutions approach to that. but the starting point has to be for the state to be willing to go in and do the hard work of gathering the data, and then trying to glean from that data where the savings are. your first question was about fmap. that was the short term thing. 30 states have balanced their budget youing that prom. but to solve this over time. if you look back to 1992, no other start of state government spending has increased as rapidly as medicaid. and so it is important for us to get our arms around that. we're not going to

at ibm, it is our path to support and implement these ideas, as i know it is for many of you. the aspen security form alliance profit with our commitment to help secure our nation and provide leadership to help lead a small planet. my colleagues and i are participating in events throughout the course of the form and appreciate the opportunity to be able to -plisten, to learn, and to engae with you in these important discussions. this morning, we kick off the event with a discussion with the deputy secretary of the department of homeland security. she has more than 30 years of military and executive eeperience in the united ssates government, and prior to joining dhs, lute serred as the assistant secretary for the united nations. and the national security funds is that under ppesident george h. w. bush and president clinton, executive vice president and coo of the united nations foundation any better world fund. she also had a carnegie commission on preventing deadly conflict and was the senior public policy bellow at woodrow wilson international center for scholars. secretary

stocks are falling after revenues from goldman-sachs and ibm came in he lower than investors expected. this is the latest sign of weakness in revenues in the corporate earnings season. the dow is down 80, 0,073. nasdaq down, 75. s&p down, 7. >>> this afternoon sunnyvale based yahoo analysts are predicting good news. sales could go up 7% from the same time last year and will be the company's biggest improfit in -- improvement in two years. this is putting more pressure on the community. texas instrument stock is down 4.5%. after yesterday's closing bell, t.i. reported the sales coming in at 3.5 billion. that matched what t.i. had forecast but analysts had been hoping for more. >>> 7:36. let's check in with sal. he's watching everything, especially contra costa county, right? >> that right. it's pretty heavy there on highway 4, westbound as you come on through the willow pass grade and also you are gonna see some slow traffic as you drive on highway 4 and 680, also 780 getting to the benicia bridge area. you can see here in bay point, it's thick. it's even thicker in antioch. 24 through

overnight construction is in effect, closing a couple of lanes and south ibm traffic is so light not really affecting your ride just eight minutes in the foot of amazing to fremont. over to red december's sale is required on the stand a couple more cars to resolve the bay bridge toll plaza the stillness come easy ride the golden gate you can see a couple cars on the road traffic is doubly moving at a limit to read from hiring 37 is just a short eight minutes. shot of the south bay, san jose, 101 traffic is moving well barely in occurs on the road 12 minute and your ride from downtown san jose hub of the santa clara. james bridge >> thank you, 418 is the time the second subsystem and the bay area murder of a virginia man will be accorded a first suspect is in court yesterday the to george huggins and althea houseleek the night of the murdered they were seeing here is the night. he was in the bay area for a job interview at google he was arraigned yesterday on charges of murder, written and the use of a firearm. huggins' his arraignment is scheduled for this afternoon. a judge has orde

he was an engineer for ibm. he served on a small business committee. he is one of 16 members in the house who voted against the bill -- bailout. please welcome congressman taught a can of missouri. -- todd achan of missouri. he is not here? someone is giving me the wrong signs. do you have any other questions at this time? yes. give him the microphone. >> the congressman is talking about dependency on government. i wondered if he regretted his vote for tarp. >> i think most of them that photophore it do regret it. it has become a campaign issue. it was the beginning of the bailout. no question about that. it was time to stand and fight. >> a representative was talking about the number crunching. i was considering what could be the effect of the numbers on ever foreign relations and military and how will it affect us internationally when the crunch and starts happening? >> i am not exactly sure what you mean by that. do you mean reducing expenditures across the board? >> windows debt become full- fledged and we are putting that 40 cents of every dollar

start futures or funding celtuce morning we had a weaker than expected results from ibm, investors are waiting for earnings report from a string of companies including goldman sachs. will see that changes the numbers. kendall e books are out selling hardcover books by almost 50 percent the amazon saying this morning it sold 143 votes for every 100 regular books or the past three months honda motor co. says it plans to sell it plugging and hybrid vehicle in 2012, as part of its strategy to push to the front of the fact in the race to develop more fuel-efficient cars. democrats are said to try and break a filibuster clearing a path for an unemployment extension millions of people start on the jobless rolls will receive an extension averaging three and $9 a week. again of course if the legislation passed. new this morning toyota says it has been subpoenaed by a federal grand jury in new york to submit documents related to problems with the steering really rob, second of subpoenas from federal grand jury system says ritter goes georgia and california were hundreds of lawsuits have been fil

at ibm, it is is our passion to support and implement these ideas as i know it is for many of you. the aspen security forum aligned perfectly with our commitment to help secure our nation and provide a broad leadership to build us mortar planet. my colleagues and i are participating to route the forum and we appreciate the opportunity to be able to listen, to learn, and to engage with you in these important discussion. this morning we kickoff the event with a discussion jane holl lute, the deputy secretary of homeland's security. prior to joining dhs, she served as the assistant secretary general of the united nations responsible for peacekeeping operations on the national security council under both george h. w. bush and bill clinton, an executive vice president of united nations foundation and the better world fund. she also headed the carnegie commission on preventing deadly conflict and was a senior public policy fellow of woodrow wilson international centerrfor scholars. secretary lloyd is an engaging leader and we're fortunate to have her here with us this morning. facilitati

we also have what i like to say is the ability to change such that when microsoft came along, ibm hired these two nobes to put their essential -- nobodies to put their essential programming ahead in their pc. that never would have happened in europe. and europe had a conference saying could microsovet, sissco, intel have happened in europe? and they agreed that it wouldn't primarily because people like to keep their relationships. where as in the united states venture cam tallism, try something new. >> we like to take risks. >> we like to take risks. and that's why we're going to get out of it. we're risk takers afplt and when you want to get out of a recession that's a good thing. >> the numbers will be on your screen. first call for our guest, kansas, robert on our independent line. go ahead. caller: i've got a lot of friends that are out of work right now. i want to know where your economic rebound is at. i mean, we just had this big old disaster in the gulf. there's goes our gdp. where is the big economic rebound. tell me? guest: first of all, in the united states more than other co

we also have what i like to say is the ability to change such that when microsoft came along, ibm hired these two nobes to put their essential -- nobodies to put their essential programming ahead in their pc. that never would have happened in europe. and europe had a conference saying could microsovet, sissco, intel have happened in europe? and they agreed that it wouldn't primarily because people like to keep their relationships. where as in the united states venture cam tallism, try something new. >> we like to take risks. >> we like to take risks. and that's why we're going to get out of it. we're risk takers afplt and when you want to get out of a recession that's a good thing. >> the numbers will be on your screen. first call for our guest, kansas, robert on our independent line. go ahead. caller: i've got a lot of friends that are out of work right now. i want to know where your economic rebound is at. i mean, we just had this big old disaster in the gulf. there's goes our gdp. where is the big economic rebound. tell me? guest: first of all, in the united states more than other co

. >> at this meeting we had the ceo of ibm, health care economists and they all said the same thing. the data was crucial so they give pass legislation which we have done in the colorado which requires a database. you go into the did it and see what feebler bank where the government comes in again is that is no good if you have no access to their information around medicare. the had the that of as many access to. the state has to be willing to go in and do the hard work of gathering the data. your first question was about t short term. 30 -- in the states to balance their budgets using the extension to sell this over time. if you look back in 1992, nothing has increased as rapidly in the budgets as medicaid. it is important to get our arms around. we will not do it without cost containment. adding states have absolute responsibility to see were cost containment can come from without impacting. >> i want to be clear. states knew that the money probably were not wearing a calm >> i do not know if that is accurate. the speaker of the house, the majority leader, the administration includ

we also have a researcher at ibm and at the rand corporation. we will be also discussing with the director policy research at the carnegie foundation. he also served as the founding member of the rand to spurred office. -- the rand pittsburgh office. he will be followed by a director of public policy at the ucla school of public affairs. his latest book is "windproof force fails -- the wan jetblue to forc -- when brute force fails. we are also glad to have the formmr attorney general who has a lot of law enforcement aspects to make a presentation. we have the administration pause drugs are -- we have the administration's drug czar. if you have cellphone's, please turn them off. >> for those of you that have tte handouts, i will try to alert you to the most important pages that have the useful data and figures. >> those of you who don't, you will have them by the end of the presentation. >> talking about options for counter not comics policy -- for counter narcotics policy, we're here today because our current policy which is justified largely by