followed, it turned out they were hosting on amazon, and when amazon pulled that, anonymous launched an attack on a bunch of different web sites. everybody who was running their own data center was down in a heartbeat. so statement one -- if you are running your own thing, you will be taken out much more easily than if you are running as part of a much larger aggregated whole world that provider can defend the property much more rigorously. and goodness me, they care about defending it. but more importantly, through automation, you get to get an assurance that data is less accessible. so people will say to me that if they build a private cloud and surround it with people, they are much more secure. that is patently false because people tripped over cables and things fail. but people also have usb cheese and walk off with your data, and this is highly known. again, the data should never have been there and the guy should not have been able to download it. that is a human problem. a failure human systems. there is alerting and people not looking at a human log. humans are bound to make

-- i will pick on brother amazon -- amazon's innovation was not technology. it was not technology. they have to use virtualization technology to enable what they are doing, but their innovation was not virtualization. for the old people in the room, ibm did this in 1972, right? their innovation was 12 cents an hour. 12 cents an hour. and transparently. we could go right now and look it up. you can buy it for 12 cents an hour. that ability to sell you -- and they are not the only ones. other people are starting to do this. so transparent, by the way. but that innovation to give you computer for 12 cents an hour. that is a business innovation. they were economically not possible before. let me give you a simple example. some of you may not know this. a couple of years ago, and they may not want to talk about this, but 350,000 people could not file their taxes on tax day. not very good. you may not know this, but the number one day for ecards on the planet is valentine's day. by a long shot. hallmark processes more on valentine's day. this is because you do not

how big a bite is amazon poised to take? >> people saying, i don't need a tablet might now say, i'm not sure i need a tablet, but it would be nice to have one, and this one is really affordable. >> reporter: it might seem like a no-brainer. if the kindle looks like an ipad, works like an ipad and costs $300 less than an ipad, why would you buy an ipad? >> just what kind of affection you have for that brand. >> sharon ann lee, a culture trend analyst, says apple has acquired a certain cachet and has a base of super fans who would buy its product no matter the price, no matter how long they have to wait. also there's almost a cult of personality around apple's founder steve jobs. jobs was seen as the david to ibm's goliath when he first started the company. and that legend has endured despite apple's tremendous success and size. >> and because they're always innovating and still behaving like a young, feisty company in the products they're launching, we still feel that way about that company. >> reporter: but amazon might be a

amazon stunned investors with a big miss today. after the market close, amazon reported a 73% drop in quarterly earnings and the stock plunged as much as 20%. the company earned 14 cents a share, ten cents below analyst estimates, even though amazon reported strong sales of its popular kindle tablet. revenues surged 44% to $10.9 billion, but that was also below expectations. amazon also warned that the earnings outlook for the rest of the year will come in lower than previous forecasts. earlier in the day, 3m disappointed investors as well, saying sales growth will be sluggish in the current quarter. that warning from a dow component was one factor weighing down the blue chips. the dow tumbled 207 points, the nasdaq lost 61 and the s&p 500 dropped by 25. one reason investors are nervous these days is the growing number of large u.s. companies issuing profit warnings. as erika miller reports, even though the third quarter reporting season is only about a third of the way through, more companies than usual have negative outlooks for

in amazon web services, you have more than 3.5 billion objects. they have to know which one to go for it here that have to break your access. then they have to break the description on the of jets. the probability of stealing your data and getting away with an attack is vanishingly small. >> i think you address one of my concerns, which was the security of my data out on the cloud, but you raised a new question -- who owns my data? what if i do want it to go away? >> there are very challenging concerns. certainly, governed by state boundaries. for example, numerous canadians do not want their data in american dissenters. under a land the vessels, that can be subject to inspection and seizure. all the regulations relate to national boundaries there as well. a cloud providers actually end up having to meet numerous diverse regulatory requirements related to where data may resign and how it may be encrypted. there are different purchase centers for different christian center's and countries -- there are different encryption centers for different regi

between amazon's tablet and an apple i-phone announcement, will they top the wish list or there other surprises in store? >> a hundred thousand movies and tv shows. 17million songs. >> reporter: no coincidence here, amazon unveiled its entry into the tablet market with a release date just in time for holiday shopping. it will come out november 15th, right when the holiday season is ramping up, a couple weeks ahead of black friday. >> reporter: the kindle fire will be a simpler, smaller competitor to apple's i-pad, currently tops among consumers. >> it's attractives, but i don't need everything or maybe i can't afford it. >> reporter: the price tag on amazon's, $199, half the i- pad's starting price. >> i can't imagine other manufacturers aren't looking at cutting the prices of their devices to be more competitive. >> reporter: came days before another big event, an announcement by apple on tuesday, october 4th that's expected to reveal the latest i- phone. before you put those items at the top of your list, remember the season for new gadgets is just getting started and more big thing

amazon has been real clear. it makes lots of money but is spending its money on new products like the kindle fire to compete with apple. the idea being if you buy a kindle fire, you'll buy more content from amazon. investors are looking at the short term. they just heard we made no profit and they bailed on the stock. >>> here's a video you'll be hearing about from your friends. the founder of twitter and marisa meyer from google say ed lee, the interim mayor, who promised not to run for election needs to be elected because he's, in their words, too legit to quit. take a look. ♪ too legit too legit to quit ♪ ♪ too legit too legit to quit ♪ >> ed lee. ♪ too legit to quit ♪ ed lee ♪ too legit too legit to quit ♪ be honest, folks. if your last name is lee -- vote for ed lee ed lee too legit to quit. >> tommy lee, sara lee, motley crew. >> too legit to quit. >> ed lee. >> how about that? the gauntlet has been thrown down. somebody else has to come up with an amazing video to counter that view. >> her

i mean amazon among other companies i would suggest disappointed. amazon was investing a lot in their tablet technology, kindle and what have you. so there is a lot of investment in there. numbers were not so great. netflix are losing customers left, right and center. i would say perhaps the third part of this is important as well and that is 3m. it is a dow component. very disappointing miss from them. sent their shares down. plus the fact that the consumer confidence data was the worst in 2 1/2 years. i think that conspired together and the european news to create a down beat session. that said, the market is still up heavily for the month. >> all right. we'll see if things change today. steve sedgwick, thanks so much. >>> businessman herman cain now leading the republican presidential field, inching past mitt romney in the latest cbs/"new york times" poll. the national poll shows cain is 25%. that's up 20% from about a month ago. romney remains steady at 21%. but look down the list there. in fifth place, rick perry falling 17 points from the last

leaving for amazon. he was not planning to work directly with rubber but planned to help build a railroad to transport it. native of the amazon basis, the tree is on the border lands. sending rubber to ports means carrying it across high mountains, after doing that, shipping the latex to england would involve dispatching ships around the tip of south america arkansas long and dangerous trip of 12,000 miles. the entire reduce was so difficult that they calculated in 1871 it would be four times faster to ship rubber to london by transporting it to the amazon and then the it theric. the problem was that waterfalls and violent rapids blocked 229-mile section of the lower madera. east of it was the white amazon and then the atlantic. the downstream end or the impassable stretch was a brazilian hamlet. my an zest you're went there to build a railroad around the rapids. craig got his undergreat degrees engineering at yale. five years later, seeking excitement, he joined collins, philadelphia railway constructio

east of it was the amazon and then the atlantic. the downstream end of the impassable stress was the san san antonio. my ancestor built a railroad around the rapids. he a fine student and was hired by the u.s. coast survey before graduation. five years later, seeking excitement, he joined a philadelphia railway construction firm that obtained the contract to build the railroad. two collins brothers believed their considerable experience with railroads trumped their utter lack of experience in the amazon. [laughter] in january 1878, they sent out two ship loads of eager engineers. craig was in the first vessel. as he later recounted, winter gails plagued the journey. the storms wrecked the second and last much seaworthy ship. more than 80 people drowned. company officials had trouble replacing the lost men. philadelphia shocked by the disaster lost their enthusiasm for the venture. he hired a new work force from the the slums of several of our large eastern cities and people with striking evidence of the soundness of darwin's theory.

but just how big a bite is amazon poised to take out of apple? >> people who were saying to themselves, i don't need a tablet. might say i'm not sure i need a tablet but it would be nice to have one and this one is affordable. >> reporter: it may seem like a no-brainer. if the kindle fire looks a lot like an ipad, works a lot like an ipad and costs 300 less than an ipad, why would you buy an ipad? >> it's really what kind of affection you have for that brand. >> reporter: sharon ann lee, a cultural trend analyst, says apple has acquired a certain cachet and base of super fans who would buy its product no matter how big the price and no matter how long they have to wait. also there is almost a cult of personality around apple's founder steve jobs. jobs was seen as the david to ibm's goliath when he first started the company and that legend has endured despite apple's tremendous success and size. >> and because they are always innovating and still behaving like a relly young feisty company in the products they are launching, we still feel that way

amazon later today will come out with quarterly results. analysts predict the online profits will be cut in half in the third quarter. this is after the development of an appeal amazon's kindle readers ate into its margins. it will be selling the kindle .ire tablet at a loss people will be able to refinance no matter how much their property value has fallen. the wells fargo ceo is applauding this move. it could lead to consumers with more spending money, $200 a month on average, which would help boost our economy. is looking to hire workers this season as more shoppers web.to a i will have a closer look at next report. is business news for now. linda bell reporting for abc 7 news. back to you. >> thank you. 4:35.rees, >> still ahead, loved ones prepared to honor a germantown mother and her 11-year-old son both murdered this month. details on the for jane andice william mcquain. >> some help for homeowners struggling to pay their mortgage. plan president obama proposed during his trip to the west coast. >> ♪ [ gasp ] [ mom ] my husband --

you like amazon. >> amazon is the best on line retailer and every start up i talk to is built on amazon. >> you are total low right. >> you are right and great buy and it is up 22 percent. inted go

that stuff doesn't matter to amazon. they are too smart. know their customer and their spending limit and know if they can get the customer in the door they'll make money off him in other area. they have their own app store. their own music service and tv service and all of these things. t.j., one big thing people of missing beyond the price tag is parents can't afford to buy these things for their kids. had i think how people were interact, this is a great opportunity to get kids into a tablet that can have information, educational and entertainment topic at a low price point. >> is the wi-fi part key for a lot of people? you can only do wi-fi with the kindle fire? >> yeah, you're right. only wi-fi, not 3g. here again that would have meant they had to get in bed with a carrier, brought in all of those problems and all of those issues and probably raised the cost a little bit. granted, they'll probably come out with something later on, end of this year or next year, maybe $50 or $75 that might have that built in. right now they're saying, l

. >> susie: let's skip ahead to amazon. they are going to be reporting tomorrow. we are expecting some good numbers but you don't know. the stock as you see on this chart has been rising. it was up today, up last week. so what are your predictions for what happens tomorrow? >> i think it follows the same pattern that it did like ibm did as well. this thing is bid up way into the print. even with a $12 tumble it took last wednesday i think valuations is incredibly rich and what investors are going to look for when the company reports is how fire sales are guided. what is the company saying. they better be really strong if consensus has to be happy with that or else the market is going to take this stock down. >> all right, got to go. thanks so much. any disclosures. do you own either amazon or apple. >> i do not. >> okay, great, nice having you on the program. >> thank you. >> we've been speaking with jill malandrino of the street.kovment back now to the housing picture. the real estate industry calls them "broken developments" or "red-field" sites. some homeowners

started with amazon joe lieberman staff all of amazon said you know you should be hosting these people and then after amazon kind of agreed the next day joe lieberman went on t.v. and said well i hope other companies follow suit and so you saw the piece and mastercard almost immediately cut off all these. processing servers and they didn't really say why they said well they violated terms of service this was a legal but it hasn't actually done anything and i think they're just kind of rushed to judgment thinking that publishing classified information is legal when we know that newspapers do it all the time in this country every day the wall street journal or the new york times the washington post classified information that has nothing to do with x. . and they just assume because the government is using words there could be something legal facts wrong now so clearly pressure must have played a role here because you know people always mention as well you can still donate to a lot of corporations that have broken the law as numerous times in this country you know that have lawsuit after

what is amazon spending money on? well, of course the new kindel fire tablet coming out this fall, and more content for video on demand. ceo is hoping aggressive pricing on products means customers will spend more on merchandise, e books and movies on the kindel fire, question is will it pay off? we spoke with ken sena from nork thinks it could pay off say the kindle fire will bring new opportunities to amazon. and will use tablet to cute compete with media outlets. and the net flix horror show continues, shares of the video rental service dropping by 35% today. shares were trading at $298 back in july. and tonight they're down 77eds. bloomberg data shows net flix lost $11 billion since july. we told you net flix lost 800,000 u.s. subscribers following a price hike and on top of that the company predicts more cancellations over the price increase and nkt losses because of costs to offer content in the uk and ireland. at least five analysts down graded ratings. the broader market disappointed today closing lower after

amazon says it doesn't have to since it doesn't have physical presence. connecticut says it will push for the taxes amazon should have connected. california has passed a law requiring amazon to get sales taxes. >>> drivers are breathing a sigh of relief as gas prices have dropped 25 cents a gallon in the past month. the national average is $3.36. in san francisco you'll pay $3.90. prices in oakland and san jose are about a dime cheaper. a year ago we were paying 70 cents a gallon less. >>> nba players and other thans plan to meet this afternoon. how much each side wantsane new deal. >>> a bay area city where hundreds of red light tickets have been dismissed. >>> find out what could slow your trip. i am a face unclogger. i am a nose coach. i am a throat untickler. i am a human cough suppressant. and i am the sniffles worst nightmare. i am a target pharmacist. ask me about cold and flu remedies. and these are the ones you'll love as dinner. grands! mini pizzas. grands! biscuit dough... plus 3 ingredients make an easy dinner everyone loves grands! mini pizza

biography steve jobs is already the no. 1 best seller on amazon. it is projected that more than half of the book sales will be electronic versions. something that certainly would have pleased jobs. >> actually bought it through my e.reader that is barnes & noble so i got it this morning. >> have you started reading it. >> just a couple of pages. >> well he has a long way to g go. book nearly 600 pages and there are predictions it could become the best seller of the year. jobs created theism pad and his biography could become the best selling back on the i.pad as well. remarkable. >> well that book is shedding new light on the world steve jobs occupied including parents biological and otherwise that same his destiny. here's bill. >> if his birth parents had kept him steve jobs would have grown up in green bay, wisconsin. if the couple at the top of the adoption list had kept him he would have been raised by lawyers. >> except when i popped out they decided at the last minute that they really wanted a girl. >> instead he was placed in the hand of 2 h

amazon indians trying to stop a massive dam project. so, the guy who has made a fortune through modern progress found himself rallying around the most prim tent people, as critics howled. who are we to tell these people who live in rivers, in the amazon, hunt with bow and arrows, that they can't have a flat screen tv. >> yeah. >> reporter: why should we deny them the first world lifestyle to which we've now become accustomed? >> they don't want it. they want what they have but who are we to them them they can't have the people they've lived in for 1,000 years. >> reporter: how would you grade the obama administration on the environment? >> i think their are hamstrung by the divisiveness, the partisan divisiveness over these issues, over energy and, you know, climate change and all that. i think they've tried to make good on their promises. >> reporter: but he is critical of the response to the bp oil spill. after brainstorming with his ocean ocean employering colleagues, he says he gave the government a plan to stop the blown well and w

amazon and agree the next day joe lieberman went on t.v. and said well i hold other companies follow suit and so you saw abuse and master card and a public i was immediately cut off all of us. processing services and they didn't really say why they said well they violated the terms of service this was a legal but says it hasn't actually done anything and i think they just kind of rushed the judgments thinking that i was in classified information is illegal when we know that newspapers do it all the time in this country every day over the last return or the new york times the washington post post classified information is nothing to do with us. and they just assume because the government is using words they're looking to do something new when the facts are now so clearly pressure must have played are all here because you know people always mention as well you can still donate to a lot of corporations that have broken the law as numerous times and in this country you know that had lawsuit after lawsuit but yet for some reason wiki leaks that

his video is available on amazon. and he is a big irritation with declining circulation. good to see you, pinch. >> due to the religious holiday that is rosh hashanah, there will be no saturday paper. and sunday's magazine will have half a cross word and dude -- doodles found on the notepad. here is hoping the choosen people will return to work soon. please come back. >> what is your background? >> protestant, white an grow -- anglo-saxon. >> interesting. >> you are interesting. >> i am. >> thank you for being interested in me. >> i am not really. >> all right. >> they no longer inspire thanks to deadly hell fire. his death to america droning has been silenced with a drone. on friday, a day of the week, president obama called the killing of the radical muslim claire rirks seen here, maybe not -- cleric, seen here, maybe not. it is one of the most active operational affilliates. when the terrorist wasn't plotting mayhem he wrote for al-qaeda's magazine "inspire" and he was killed by the cia missile strike in yemen alongside the publisher. so who could have predicted this j

they offer through amazon prime or on demand or whether it's apple with itunes, those businesses in and of themselves are not self-supporting. hulu for instance is not successful enough it recently took itself off the auction block. they were trying to sell it and ultimately decided that there wasn't enough interest there. simply because the business model isn't there yet. we still don't know whether advertising or pay-per-view or subscription is going to be the way that people want to pay for their on-line video content. >> warner: so bottom line here, cecilia, is netflix still in good position to move forward? >> sure. it's still the 800 pound gorilla in this space. and there aren't many competitors that are doing exactly what they do. they have subscribers that are still very loyal to the company as well. so competition is encroaching in their space but in a year we might say that that was actually a good decision, that they are moving into on-line prurly but maybe too fast. >> well, a future that we definitely can't foresee. cecilia kang and eric rasmussen-schumacher, thank you.

amazon will add 3,500 full-time jobs at new distribution centers in the state. the deal with tennessee will also allow the online giant to collect sales tax there in two years. amazon has struck similar deals in other states, including california and south carolina, but the company still wants a national standard on sales tax collections for online retailers. >> tom: one of sports and entertainment's most visible business partnerships is over. hank williams, jr., and espn's monday night football have parted ways. williams says he quit. but espn says it sacked the singer and his song with the classic line, "are you ready for some football?" it had been a monday night staple since 1989. the song was dropped from this week's game after the singer used an analogy to adolf hitler while discussing president obama during an interview. williams saypullg the song ts week violated s frdom of speech. >> susie: as we mentioned, steve jobs played a huge role in shaping silicon valley and technology as we know it. but as commentator harry lin explains, and broadcasting from h

but now amazon has the nerve to unveil the kindle fire. it's all fancied up with color and a touch screen. oh, my sweet original black and white kindle. i will hold on to you. but now i have the feeling that, once again, our love was fated not to last. anita. >> and he really has all that stuff. thank you, derek. >>> washington national cathedral is now set to reopen november 12th, but there is still a lot of repair work to be done. ooert quake damage closed the -- earthquake damage closed the cathedral. they're trying to raise $25 million. >> it's so sad because they finally finished it. if you lived here, they have been building it for years and years and years. it's going to take a decade to fix. >> wow. and the 15 million bucks. >> and the 15 million bucks. >>> we hit 70 today. we should drop balloons quite frankly. >> exactly. >> and tomorrow we're going to be about average. and we're kind of losing sight of what average is. 74 or 75 which is average. it's nice. [ laughing ] >> 60 in dc. sorry to interrupt tv here. 60 downtown. 57 in

amazon will add 3,500 full-time jobs at new distribution centers in the state. the deal with tennessee will also allow the online giant to collect sales tax there in two years. amazon has struck similar deals in other states, including california and south carolina, but the company still wants a national standard on sales tax collections for online retailers. >> tom: one of sports and entertainment's most visible business partnerships is over. hank williams, jr., and espn's monday night football have parted ways. williams says he quit. but espn says it sacked the singer and his song with the classic line, "are you ready for some football?" it had been a monday night staple since 1989. the song was dropped from this week's game after the singer used an analogy to adolf hitler while discussing president obama during an interview. williams says pulling the song this week violated his freedom of speech. >> susie: as we mentioned, steve jobs played a huge role in shaping silicon valley and technology as we know it. but as commentator harry lin explains, and broadcast

. >>> amazon takes a beating. those stories and more let's go to emily change from bloomberg west with today's after the close report. >> yesterday we reported on amazon's earnings. today they got punished big time for the bigger thanings myth. shares ended down nearly 13 percy racing 13 billion from the market cap. jeff bazo says he's investing in the future. the tradeoff is slim to no prophets. he will lose $50 for every kindle fire tablet. that's the only way to get customers to buy it instead of ipad. it's a strategy that worked for amazon before see if it works this time. for the next quarter it is possible. they could lose 200 million in the 4th quarter as costs mount. as for the broader market things look much better. we saw a nice turn around today on positive news about the fund. bloomberg posted slight gains with shares of 8:00 p.m. apple among the leaders. netflix it has been a rough week to say the least. the on-line video service has cut more than 15 jobs after losing 800 thousand subscribers in the t

as i said, i teach a class in beijing, and the amazon boys are very nice to me. they gave me $3,000 worth of computers and storage, so i showed up in class and said, "you get $3,000 of computer and storage." turns out that buys you about 2 1/2 years of a server, you can pick northern california, virginia, ireland, right? most of the kids in the room are looking at me saying that it is kind of boring. they can get a server in beijing. what difference does it make year or $3,000 buys 10,000 computers for 30 minutes. nobody has ever been given 10,000 computers for 30 minutes for $3,000. it is in the question that they looked at me at that stage and went, "what would i do with that?" that is the seat of the next step. there are lots of examples already happening around us, but this is the magic. as soon as the smart kids out there start figuring out what you do, we ignite this thing with a rocket ship. this has nothing to do with total cost of ownership or any of that. it has to do with being able to do things we economically could never do before. i will conclude i

she is hoping to extend the restraining order. >> an actress is suing amazon. >> girls like us don't have to worry, but she signed up to a site and she applied for the imbp pro service and used the credit card to generate more work for herself. she is claiming she they used her credit card to obtain her real age. >> they're published her real age? >> they published it and she is suing amazon for $1 million because she said this caused severe damage to her work and ability to generate jobs. >> she said revealing her age? >> approximate are she said that in the over the hill category, it is nearly impossible to get work. it gets better. she is claiming that she is too old to get young roles and too young looking to get old roles and she is stuck with no work. >> we should all be so luck to have the problems. >> now to susan sarandon. this is a big one. >> first hank williams jr. refers to the president as hitler and now pope benedict xvi as a nazi at the hamptons film festival. she was speaking with the actor and talking about dead man walking and sent it to the previous pope and not t