shelter and not willing to step out the risk spectrum at all. that's what i'm watching. outperforming, i'm not in yet. >> that will do it for "power lunch," sue. >> all right, see you in a few minutes, ty. "street signs" begins right now. and welcome to "street signs." i'm brian sullivan. apple's next move. you have heard the headlines all hour just on "power lunch" but do these mean mig in the stock? we'll get the core of apple's new news when it crosses. is it possible to completely euro proof your portfolio? forget spain. we're going to talk about what could be the one big event that every american investor needs to watch. plus, warren buffett's big guns, literally. the personal security team and an incredible new report that ties together a ceo's spending

habits to the likelihood their company commits fraud. >> stay tuned for that. meantime, news of the spanish bank bail yut triggered a rally early and didn't last very long. and going for its first five-day winning streak and now down on the day. as for the s&p, the fifth gain in six sessions but that, too, is in question at this point of the day and the nasdaq had the dubious distinction of losing the gans. all three are coming off their biggest gains of 2012 so far. back to you. >> thank you very much. well, we are going did give you apple headlines when they cross. still waiting for maybe the big reveal at the end of the show. we have carl on stand by. everybody's out west. apple fan people, do not worry. we will have plenty of news for you. right now, we have to talk about the big news going in to this morning and still is the news out there. and that is the spain bailout.

aka, the spailout, right? could be down big if we didn't have it. what we want to point out right now is the month that's been so far in about seven trading days in june and where we stand so far in europe. because the market may have clearly anticipated some help. here's how we know. the ibex 35 essentially spain's dow intelligendustrials is a be performer. focus on a one month chart. over the last month or seven days of this month, i should say, it's up 7%. the other markets not doing as well. the dax is down 2% so far in june. the athens 20 which is the greek dow if you want to call it that down about 5.5%. over seven days, the spanish

market is best performing market and compared to us with the dow up 1% in june. the market clearly anticipated something coming for spain, driving spanish stocks up in the last few trading sessions but as we know the big daddy story, almost called it deal, it's a combo, is coming on sunday. and that is, the greek elections, june 17th. mark it down. highlight it. circle it with a sharpie everybody. that's the big story. let us bring in bob and rick. mandy, back to you, as well. >> absolutely. bob, down to you. as brian said, the markets look ahead to the next thing. whatever. done with that. doesn't really solve anything. how do you think the market trades this week? >> i'll tell you something. i was just talking to michelle about this. normally this is a quadruple witching expiration. index and futures and options. here's the important thing. we should be seeing pretty heavy

volume. we're nearly not seeing it right now. there's rebalancing. on friday. i don't think we're seeing a lot of volume ahead of it because people are so uncertain of what's happening with the weekend headlines. this rebalancing and the quadruple witching expedition happening friday. somebody will have to make some decisions but the point here is waiting until the last minute because nobody's quite sure what's going on right now and the volume today, not particularly titanic. >> meantime, rick santelli, the bailout, not necessarily make it cheaper for spain to borrow, right? what's going on with the wonds? yields are still blowing wider and what kind of affect on our market? >> it's not only the spanish tenure that is are blowing out. you know, they're up about 50 basis points from low to high. around 650 or higher on their 10-year but the fact of the matter is we have had 95-degree weather in chicago all week and the positive effects of the

proposed bailout for spain lasting as long as an ice cube on the walk in chicago yesterday. i really think the issue with spain is real estate and that's hard to fix quickly as we know in this country. which gives me slight hope that what goes on in italy and perhaps even greece are more reforms for whom the bells toll, more reform that is are low hanging fruit but we still see how quickly the microscope of unyeez moved to ase moved. >> the great hemming way book by the same way written about in spain by the way. and joe stiglitz pointed out very good last night or this morning which was essentially, this is a circular bailout. the money's going to come from ecb or whatever it is, through the spanish government to the banks which then theoretically back do the government. it's as if the same bailout dollars seem to be being used on

a number of different entities, does it not? >> yeah, no. it's correct. reminds me of the same daisy chain with when the treasury in this country issues paper to the federal reserve. there was a tweet earlier attributed to bill gross and said something whether you agree with t.a.r.p. or not, at least it's positives in the preferred stock. to just add more debt the way the current bailouts in europe are going, versus equities, seems like it falls flat. >> let's talk about the headlines of europe. next guest says take a look at the euro. it's only getting better from here. so do the headlines signal that europe is going to be headed in a positive direction? now ceo of w a mbia capital. why are you so positive that things get better from here? >> thank you very much for having me on there. i believe that we have seen the worst of the euro. the markets pricing the euro with greek exit and potential

default. i don't believe that is going to happen because the euro is not only an economic but a political project and that's the markets have signaled in the last week, spain has seen the worst and they only shoe remaining to drop is greece and i believe over the weekend that greek election will put in a center right, center left government that will have the mandate for reforms. the debt will be socialized in european born and the greeks will swallow hard medicine they need to do and stay in the euro. >> i want you to square something for the viewers which is that you believe the market is pricing in a greek exist and you don't believe we'll get a greek exit. so if you're right, what happens to our equity markets? what happens to europe's equity markets? >> i believe after the elections next week and when the uncertainty has exited the market, we could see a rally. in the market. >> just a short-lived rally? what kind of rally?

>> the rallies have been short lived and hard to pronounce it's long lived but in the long run, yes, we'll have the markets will be much higher at the end of the year than now but i can't say with any certainty as to how long the rally will last because it probably affected by the next day's news. >> joseph, we have to leave it there. thank you very much for joining us. joseph wambia joining us live. >> thank you very much. meantime, everybody, the apple developers conference is still going on. and as soon as all the headlines come across, don't worry, we'll bring them to you about the big reveal and for now let's bring in the managing director at think equity partners and just out from apple's worldwide developers conference and where no doubt mark will run back in. mark, is is there going to be a big steve jobs-like reveal from tim cook and get something big? if so, what do you think it could be? >> we're not calling for anything huge but highlighted the mac book pro, gave a

notebook update. they talked about a mountain lion updated and waiting for the ios6 update and you might get a one more thing type of announcement. we are looking for an update on the i tv. our guess is not. maybe just a software update on the apple tv. but we shall see. >> i mean, you have a buy ratding already on apple. if we do get more details about i tv and the market likes it, how much more upside could that mark for your forecast? >> that's right. so for our forecast, we don't have a lot built in for the itv. so it would be helpful to get that. right now i'd say the stock at 580 pretty attractive level. 11 times earnings here with a good pile of cash on the balance sheet. >> are we running out, mark, of the big wow to really drive the stock? i mean, siri was a big launch. i understand that.

now ios6 and incremental improvements with the retina display to the ipad and a big deal engineeringwise but to the consumer does it make that big of a deal? are we running out of the big things to move this stock? >> i think, really, the biggest thing we're looking for and it's a good point, we are in a pause right now. we had a piece last week trimming the iphone numbers and waiting for the iphone 5. a new form factor for the iphone. lte, bigger screen, what have you. i think in the meantime, you know, you're in a bit of a holding pattern. of course, the itv is brand new market they're not playing in and look for any clues on that side. >> you know, if we get a pile of details, you know, souped up software and hardware, you name it, how much will this help apple in the battle against google particularly in the mobile space? >> well, yeah. i mean, it's definitely a two-horse race for smartphones and tablets between apple and android and google w. the ios

launch, looking for some kind of details on what they're doing on the mapping. the ecosystem, important to play on all three screens. pcs, smartphones and ultimately tv on the content side enit's a battle between apple, google and i'd say amazon in that group. >> this apple tv thing is a real weird story, mark, because as apple people know, there already is an apple tv. you plug it in and you can watch apple shows and netflix, whatever. now talking about a physical television set, reports out of china, foxcon may have begun trial production. do you believe those reports that an apple tv, the physical set is actually being built? number two, if so, does it matter? >> so, on number one, i do believe that there's activity there. our industry check suggests there's activity. we don't know when it hits the end markets but we are seeing

end market activity. does this matter and move the needle for apple? >> i think it's a similar set-up as trying to get in to the iphone and people said it's a low margin business dominated by certain people and now apple controls a majority of the profits right now so i think they probably do a similar type of transition in the tv space. the apple tv started out as a hobby. i think tim cook talks about it appropriately as a hobby and not keeping it there for too long. >> we believe that tim cook is currently starting to talk about the new operating system, the new ios. what in particular do you want to hear on this point? and i'm going to double barrel this question and say, what would make you disappointed at the end of today and perhaps change your target for the worse? >> i'll tell you what. ios6, the big catalyst to look for is a new iphone, iphone 5. i don't think we're going to get that today. i didn't expect to get that

today. i have been pretty much -- pretty clear on the stock that we think it's going to be range bound until you see that catalyst so, you know, i'm not really -- based on what we have heard today, i don't think there's anything to change my mind. i don't have really huge expectations going in to remaining presentations here today. >> i guess not to be, you know, beat the point of the apple tv, mark, but the point is this. i'm the target market, right? so why would i swap out a $99 apple tv box for -- i'm going to make up a price. a $1,500 or $1,600 new television? what makes make me make that so extra payment? >> super good point. replacement cycles of tvs, the screens and what have you, much higher priced device. we wonder if the carriers may subsidize the product but i think what apple is up to, what they're up to is apple tv is a

hobby. almost in the range of the geeks a. lot of friends who aren't -- >> easy with that, easy, easy. i've got it. >> yeah. yep, yep. >> i admit it. >> give the geeks and the rich guys these days. it's a good thing to be a geek, right? >> i think -- >> by the way -- >> completely. >> by the way, we should also say that apple officially announced the ios6, as well. just getting that in there. sorry, you were saying, mark? >> if you have a -- my point on the apple tv is that, you know, jobs' book, it's not ready for the mass markets. this apple tv is still a little geeky, harder to set up. for your average person or maybe even your above average person who's not a tech geek so the sense on what they think about on the itv would be a plug and play type device that just works out of the box. >> okay. share price there of apple currently only barely holding on to the gains and lost some of its gains from earlier this

morning and, guys, we have our very own john forte inside and listening to the excitement and listening to him as soon as he's out. thank you very much for that, mark. also i believe in a nod to all the youthful developers and entrepreneurs. they lowered the entry age for the conference from 18 to 13. >> you got a lot of app developers probably that age. >> yeah. >> buy and sell us. >> they have to take a parent chaperon. >> maybe there's an app for that. find a parent.com. >> i'm a brilliant young entrepreneur and i need my mom along. let's get out to brian shactman. >> riding my huffy to baseball practice an they're writing apps. boeing, the stock up in a down market. they're telling reuters they want to get a thousand commercial plane orders in 2012. a huge number. they usually talk about deliveries. but that's the pledge they're making. a battle with airbus.

lost a lot in 2011. looks like they want it back. >> brian shactman with the holy grail of diabetes drugs. we're going to hear from the chief medical officer straight ahead. if a ceo buys a yacht, builds a huge home, should you short the stock? look at a new study that says the flashier the ceo, the bigger the risk. you don't want to miss that.

diabetes and obesity rates are skyrocketing in america and big pharma seeing opportunity in the battle of the bulge. >> that's right, mandy. drug makers are tapping in to the industry. an estimated 26 million americans are afflicted with the diseases and a new study at the american diabetes association meeting showed a 21% jump in type ii diabetes. top player reported a real world study of patients that diabetes drug provided greater reductions in blood sugar levels. we'll be talking to novo's chief medal officer in a few minutes. analysts expect it to be the top diabetes company by revenue but eli lily to overtake as a number two player by 2017.

they see the market reaching $54 billion by 2020. what about the payers? roughly $200 billion a year treating diabetes exceeding cholesterol drugs in 2011 and expect health care costs to reach $500 billion by decade end. i know i threw a lot of big numbers out there. bottom line, a growing market. a big opportunity for a drug giant and a big scare for america. as you know, diabetes is a precursor to many other diseases. >> and emerging markets doubly so. thank you so much. let's dig deeper in to the fight of diabetes and the role in that. the stock up about 17% this year. joini inings now, dr. moses, gr to have you on the show. we're going to ask you about what we're calling the holy grail, a pill opposed to injection. something i'm sure many sufferers are really looking

forward to. you started developing it six years ago. now how much closer are you to making this a reality? >> i think, first of all, thank you for having me on the show and from a diabetes perspective, it's been in the business for 90 years and innovation is the core of what we do, trying to make medications to work better for patients in terms of helping them control blood glucose more safely. the concept of turning insulin in to a pill opposed to an jex is one that's been around for a long time but there's significant impediments to doing that. we believe that we're starting to crack that nut. in terms of understanding the technology that needs to be put in place both on the insulin side and on the mechanisms of getting it across the gi tract from the stomach in to the bloodstream and work and going to be a slow and exciting process and pretty hopeful of the possibilities. >> are you the first to crack

that nut or do you feel there's some pet or thes or rivals who might beat you to the chase? >> we believe we have our focus on the insulin molecule and our knowledge about that molecule gives us an edge in terms of coming up with a particular molecule that can be formulated, put together in a pill form, if you will, in such a way that we'll be first out there. but it's going to be a race. it should be a race and drives innovation and what we thrive on. >> santa fe is a big competitor in the market and going after you, doctor. saying the numbers you're portraying on their drug are not necessarily fair. are there room for both of you in the global long-lasting insulin market or does one of you have to come out as a winner? >> i think certainly there's room for both of us. the novo nordisc idea is to put

the patient at the center of the plan. this is core to what we do. we are very confident about the clinical profile and certainly the bio mechanical profile of the new insulin which is under fda review now and review in europe and japan, as well. so, the profile of the insulin -- >> how do you get people off landis? that's the point. you want to get people on to this from landis. how do you do that? >> no. what we want to do is have physicians recognize the advantages of degladek and consider which patients are appropriate to switch. we are not looking for a mass switch or saying that landis can't be used. it's a very good insulin and our long-acting insulin and we are confident we have come up with a better long-acting insulin.

>> we have to leave it there. thank you for joining us and best of luck in your efforts. we have some breaking news. siri will be available on the new ipad. brian? >> it's impressive, mandy, when you see the impact of what goes on apple with stocks. look at yelp. a deeper partnership. look at the intraday of yelp if we have it. boom. spikes up. look at open table. you can do restaurant rez la reservations on ios. look at that. that's incredible. stocks moving on what's happening out west. back to you. >> big spike there. thanks very much. just ahead, tight wad, tight ship? a new look at the link of a ceo's personal spending habits and the company's performance. >> we're going streaking. why not? >> why snot. >> find a little sunshine. a big old basket of old-school

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this is big news. all right. take a look at shares of at and t verizon, trading up today.

at four-year highs. but why exactly mentioning phone stocks? >> e.t. -- >> e.t. turns 30 years old today. hit in 1938 and at the time became the highest grossing film of all time. >> yeah. he lived to be -- >> discussing amazing it didn't bring out a sequel. >> facebook integration. mandy talked about open table and yelp. and siri on apple. integration to ios6 with public api facebook integration and basically a development tool, right, you will have all of your stuff, birthdays, calendars, phone numbers, appearing better in the contacts and calendar on ios. you have been waiting for this. >> the stuff you want and don't want. everything. >> free of my two friends are on facebook? i stole that line from somebody else. >> it's a good line.

disaster strikes for one of our stocks. what is happening with diamond foods? >> missed the already exfended deadline to file and then said the obvious. unless it gets another extension from the nasdaq it could be delisted. as i said this morning on twitter, you know, the bigger issue is why is this taking so long? the march, the company said what it said today. substantial progress toward a restatement of two fiscal years and additional three quarters of the 2012 fiscal year in there. originally, you know, we're just really talking about the timing of payments to walnut growers and wonders when's going on here? also talking about a company where there was a suicide of a board member when all of this first came out. you come in here and you say, look, there's a big investigation. taken a long time. much longer than anyone ever expected. will this be a symbol that ends up with a q behind it meaning

delisted. >> have you met anyone defending the stock or the company at this stage? >> no. but analysts said it was time to load up the truck. >> back up the truck to the back door. okay. we are going retro for today's sunshine stocks with some old-school names hitting new highs. disney, sherwin-williams, levels not seen since 1964. southern company at the highest level since it began trading by the way back in 1949. >> the stocks -- >> no. i have to say one thing on sherwinwilliams. analysts say priced for protection here. sell the stock. remember that. this thing is really trading at all-time nose blood levels. everything has to go right for the paint manufacturer. paint. >> okay. >> watch it dry. except the stock. >> what did steven wright say? it's a small world but i wouldn't want to paint it? stealing everybody else's line. >> it is your line.

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i'm sharon epperson here at the nymex and looking at oil prices that settled at the lowest closing price that we have in eight months' time. keep in mind we did see a low below $82 a barrel on friday but that was intraday. this is the lowest settlement day here for crude oil below $83 since october of last year. now, of course, there have been some investment banks saying now's the time to go long

commodities. goldman sachs mentioning the september contract for wti by technically speaking, other analysts say the corrective rally so' in oil is short lived and they're looking to sell the rallies over the short term. keeping your eye on technical levels around the $80 mark. some analysts are saying. continuing to watch, of course, what happens with the fine product, as well. not a great downdraft there with refinery problems, particularly in port arthur, texas. back to you. >> thank you so much. meantime, let's get to julia boorstin. a big move in zinga stocks. when's doing it? >> down 6.5% earlier today and now 6%. two factors. comp store sales numbers revealing facebook's growth slowed in april and raises concerns of zynga's growth in the u.s. this second factor is that if

you look at app data, the games have lost 1.8 million daily users today. >> wow. >> the numbers fluctuate widely but brings new games canalizing players of old games. it comes down to how much people spend to play their games but we did see negative numbers today. back over to you. >> thank you very much for that. another ouch today out in the markets. ak steel. what's going on there? >> goldman sachs downgrading to a sell. slapped a $5 price target on the stock. it's been an ugly year for steel but the second half of the year could be uglier. scrap prices are down. >> they say sell. a bunch of hospital stocks however on the move. >> really interesting citigroup note today. not a lot of play out there but citigroup upgrading basket of

stocks and citi actually saying, get this, folks, the most favorable rules for the hospital stocks is an upholding of the law because think see earnings powers surging but they say the most likely outcome is individual mandate unconstitutional. >> another upgrade for time warner. >> moving up. they say the outlook is less pessimistic. >> i don't know what this stock does -- >> i don't know, mellanox. whatever. they got a big contact from intel. that stock, yes, thank goodness, still up nicely. in fact, up 55% over the last 3 months and more than half of the percent. >> okay. centene. >> texas-based health insurance disaster.

centene saying higher claims in texas and kentucky, that stock getting whacked 23.1. should have been the disaster. herb went through the nuts story. >> herb gets what he wants. >> yeah. herb does. all right. let's talk about something more fun. formula one. the most watched regular sport in the world, you have the world cup and olympics but now formula one making waves in emerging markets, a was el sechlt to finally cam back to the united states in november in austin, texas, and force india driver is coming to us. paul, happy to have you on the program. sorry you couldn't make it in to the studio. how excited are you about coming back to the united states in austin with united states grand prix? >> it's almost a very exciting times for formula one to come to the new venue, new grand prix. it's something that the drivers look forward to and me being relatively young to formula one, hopefully you get an advantage over the old boys with the

experience. >> yeah. they don't know that -- by the way, tough time at canada. didn't get the result you wanted. but are you guaranteeing victory in austin, texas, right now? >> i'd love to say we can but no. obviously relatively new team. this is the fifth season and, you know, they battle to get to the top isn't quite there but we'll set ourselves high. you know, we have had a good season up until now. misfortune yesterday, didn't get the strategy and tires right but we'll look forward to an exciting year and hopefully a strong end to the year and austin being part of that. >> this is an indian-sponsored formula 1 car if i eemg not wrong, the first i'm just wondering to what extent to see more sponsorship and more money from the emerging markets in the future to this. >> yeah.

obviously, the corners of the team, you know, they're there to represent their brands. india's a huge market and, you know, our job to try to get people's attention away from cricket and just focus a bit on formula 1. last year that helped with the india grand prix and we'll continue to do that but a great part of -- feeling very much a part of the family and the future may be bright for these guys. >> making one change to formula 1 right now, what would it be? >> i don't really want to change it. i'm relatively new. i'm young. i'm ready for it, up for the challenge. i want to be a winner and world champion and until the goals are achieved, i won't give up. >> a man of the world. best of luck. thank you, paul, for coming on. also coming up, manufacturing in america. and the rather surprising force behind its growing resurgence. and how the mega rich protect themselves. eamon will take us inside warren

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i'm bill griffith. at the top of the hour, big u.s. banks are still bracing for potential credit downgrades. maybe this week, maybe today. will the bark be worse than the bite for investors? we'll look at that. can apple's just-announced software and laptop updates reignite that stock? we'll have a debate coming up on apple. walmart shares just off a 12-year high. despite that retailers' big mexican bribery scandal. has that stock come too far too fast? michelle is here with me today. guys? >> bill, thank you very much. all right. some good news to start your week. u.s. manufacturing is on pace for a major turnaround this year. the idea, though, is who's behind it and can it continue? let's ask our own phil lebeau. how big of a resurgence are we seeing? >> not a huge one but we're

seeing perhaps an inflection point. let's take a look at a key metric. it's the planned openings versus closings in the united states going back to 1998. that top line there, that's the number of closings and you see that the gap shrunk considerably. in fact, the rate of manufacturing plant closings in the united states is slowing down. just 3.3% of manufacturing plants closed in the third quarter of 2011 but overall we are seeing fewer plants here in the united states. take a look. it's dropped from 372,000 all the way down to roughly 305,000. so, the question now is, what are we seeing in terms of plant openings in they're increasing at about 3% year over year looking at the third quarter of 2011. that's the most recent data l m. evering capacity utilization rate at 78%. that's close to prerecession levels and finally u.s. manufacturers have added about 500,000 jobs since the end of

2009, brian. keep in mind, they lost about $2.3 million looking at the entire recession. it's good news. not a huge change but good news. >> it is good news. let's get to scott paul. in terms of what you are seeing here, i mean, obviously, the auto sector giving a condition tri bugs in terms of manufacturing and plant openings but what else is driving it? is this reshoring or the moms and pops feeling more confident? >> it's a little of both. clearly, that autos has played a role. you do see some multiple national companies reshoring work in the united states. for two reasons. the cost equation is shipping. fuel costs are up, wages are up a bit in china. the currency has leveled off although it's deteriorating a little bit this year and energy costs, particularly in natural gas, are coming down in the united states. so you see some of the big companies like ford, general electric are reshoring work. you also see strength among the

smaller mom and pop shops, tool and dye shops, they're getting orders because consumers are back buying things again. i think phil was right to point out that we're not yet at prerecession levels in terms of employment and a couple of other metrics but very, very good to see this positive movement. in fact, the manufacturing job growth we have seen we haven't seen anything like that since the early 1990s and so for folk who is thought manufacturing was dead and gone, we're getting a wake-up call and welcomed and no guarantee it's going to continue. >> how much -- sorry about that. >> how much does lower wages account for this? >> it is true that both in some of the union contracts that have been restructured by the uaw and in the job that is are opening up that you are seeing some leveling off of manufacturing but manufacturing wages are still very, very good. they're better than the rest of the private sector and i would be quick to point out, brian,

that labor intensive manufacturing is a very small part of manufacturing. now, i mean, these are not your grandfather's factories. these are very automated, highly skilled workers. labor intensive factories likely not coming back to the united states and moving inland to china. also moving to vietnam. but we can get a lot of this high value manufacturing back. >> right. >> chemicals, transportation equipment. even steel. i mean, we're highly competitive on a global basis. >> absolutely. >> if we take advantage of it. >> phil, i don't want to rain on this parade but nonetheless what i'm seeing, as well, in the auto parts sector in particular, a surge of chinese imports in to this country taking away jobs. is this something to be -- >> i don't think a ton of jobs away, mandy. ultimately seeing the auto sector, you manufacture where you sell and as the chinese move in to the country, they'll want suppliers they're oriented to. it's the replacement cycle we're

starting to see here. a lot of them were not replaced in last two recessions. companies manufacturing saying we need more efficiency, smarter about how we operate. we need a new plant. >> phil and scott -- scott, i called you paul. you look at things and that's what we do. i apologize. >> i'm proud of both my first names. >> easy. good on checks, too. send me one. thanks. >> thank you. the super security of the dangerously richment we'll meet warren buffett's protection detail. living the high life, what it may say about the odds their company will commit fraud. we'll tie yachts and fraud together. you will not want to miss it. stick around. w, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more so your money can do more.

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♪ for most americans p. beefing up personal security, an extra deadbolt the door or an alarm system but for the super uber rich it is a high-tech

panic room or anti-missile defense system on their private jet. as you might imagine there is an entire industry out there ready to sell them the very best protection money can buy. an inside look at warren buffett's security team. ♪ >> reporter: this is firearms training. they are using real bullets today and most of the officers are using glock handguns like this. her standing right up close to the targets today because they expect in a real-life situation they will be as close to the assailant bass seven feet. key to maintaining control of the situation -- >> look, look. >> reporter: tension to every vulnerability. from every direction. >> looking for more. >> reporter: one of the most important skills they learned is how to clear the protectee out of the way and still hit the target. >> what's the craziest things you ever found out with regards to security for the super rich?

>> i think it was super yacht that actually had pressure sensitive deck that if you step order the deck the cam ruse the yet would immediately turn to face you to see who the security guy could see who was coming on the yacht. some incredible stuff there. i want to just say a word about dan clark who is warren buffett's chief security guy. he's just an incredibly discreet guy. we couldn't get a word out of him about the personal details of the people he protects or particulars of their security. what you saw there and what you will see tonight in the documentary, he did let us come out and see the training his team at clarkber national goes through so you can see all of that stuff in action. i got to fire that glock 40 which was fun, too. >> sounds like a lot of fun. we are going to be watching your dangerously rich documentary at 9:30 p.m. eastern and pacific. >> all right. aside from spending on security, what do the spending habits of ceos tell us about the likelihood their company will commit fraud? new report on just that. robert frank is here with some of the fascinating reports.

i got it here. what are some of the things in this report? >> this is a report from the national bureau of economic resear research. they looked at ceos who were either frugal or non-frugal. non-frugal being those that bought a house that was twice the cost of the average. either a boat more than 25 feet long or a car that cost more than $75,000. they found that the non-frugal ceos had more problems at their companies vis-a-vis financial statements or fraud. >> i want to ask you, how accurate an indicator is this? obviously not every ceo has got like a massive yacht or a lovely new jag or whatever will be committing fraud. >> of course not. they did find that more than a third of the ceos with a big boat or a big house had companies that experienced problems. there is a material difference here between these two groups. >> right. it gets to the culture of the companies. the company culture, especially sales or yemted company, starts at the top. you know, lot of the guys like to live large. one of the great exceptions -- we talked about this.

it is and not exception. larry at oracle. they haven't ever -- they have had some restatement issues in the past with aggressive revenue recognition. you know, that's about as far as it has gone. >> of course they will there will be exceptions. will are two possible explanations. one is the distraction of having a boat. in other words, you can't run a tight ship at the office if you are sailing in the care bind on your yacht, number one. number would, the expense of all your toys places demands on the company that may not be sustainable. ties are the two explanations we need to find out why it is the non-frugal ceos had problems at the office. >> thank you. >> thank you. coming up next, we are wrapping up the latest developments from apple's developers conference. the stock is off its highs from the early morning. last time checked that stock was only marginal. >> what we are going to do from now on because we know apple has been rolling out a stock's yodel every time we talk about apple. that way you will know at home that apple news is coming.

we are back after this with more yodelling.

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all right. insert yodel here. big news coming in important the apple worldwide's developers conference. new io-6 operating system. developer has a preview of and it it will ship in the fall. >> the io 6 will bring siri to the ipad and allow easing integration with facebook and in the mac war with