>> grasso? >> abercrombie. $29 stop in case it doesn't work. >> doc? >> hot. >> anthony? >> get long verizon, vz. >> that's all for us. follow me at twitter. "power lunch" starts now. "halftime" is over. the second half of the trading day gets under way right now. and "power lunch" is all over it. >> all right. thank you very much. big comeback for the markets. we were down by now the rally is back on. maybe you call it a rally. nine points on the dow. where has the fear gone as we go nine points higher? look at the vx. it's way down lately. as iran beefs up its military exercises. like this. standard charter accused of doing business with the islamic republic. banking regulators here in the u.s., we'll talk to a member of congress responsible for many of

today's sanctions to see whether they're working and how banks should be punished if they break the rules. and, a 75% income tax? oh. what's the impact? that's the proposal in france. and they may be about to find out. but we start with sue at the nyse. where'd the fear go, sue? >> not evident today and we start out with the markets. up a little bit this afternoon after being down this morning. but, this is a big but, of course, we want to reinforce how far we have come on the dow. more than doubled since march of 2009. we certainly hope that's the case. also take a look at the etf. the vxx. it tracks volatility to some extent and down 2.63% today. in week, almost down 11%.

as of today, doesn't seem to be a lot of fear out there. traders i had a chance to talk to a few minutes ago saying because we're seeing a bumpy and somewhat consistent improvement in some of the economic data and earnings. back to you. >> thanks very much, sue. now the housing market. the key many say to rebuilding the economy. and while there have been some signs of improvement from the housing bottom, the new c eo of fannie mae say there is's a very long road ahead. >> i think it's too early to declare that national housing recovery and what's driving our results is home price improvement and we expect that prices have stabilize but, you know, they could go up a little or down over the coming months. we are not expecting to see huge improvement going forward. we could expect to see that over the long term, perhaps. near term we are not so sure. >> home builders doing pretty well lately and let's take a

look at how they're doing today. as you see, they're up by about a quarter dollar each. that was, of course, timothy mayopoulos with diana olick and talking to diana in a bit but rick, first. 10-year auction. hi, rick. >> for those that are able to interact with the mortgage market. the yield 1.68 on 24 billion 10s. go through the metrics. average bid to cover is 3.13. this auction, 2.49. you have to go back to august of '09 to find an equally low bid to cover. you have to go back several more months in '09 for a lower one. the yield, 1.68 was well above the highs of the day and the wi market which were around 1.65

and that was the bid side going in to the final moments of the auction. indirects, 40.6 which is a little better than 38% 10 auction average but the metrics in this one are sloppy. we give this one a "d," tyler in terms of demand at 1:00 eastern. back to you. >> all right. rick, thank you so much. all right. die why that olick on deck and you did have an exclusive interview this morning. when's the connection of fannie mae doing and the housing market is recovering? >> reporter: well, of course, fannie mae is completely dependent on the housing market and what the ceo told us. look, he said, home prices are appearing to be doing better and saying he didn't expect any kind of huge surge in home prices and admitted that prices could fall further. on that, he said that fannie mae, although paying a dividend, may not pay a dividend back to treasury over several quarters

and entirely depends on that recovery. >> all right. diana, thank you very much. jim iourio is here with us for the week. so, if you have a -- some belief of a housing recovery afoot, how do you play it? >> i do believe it but the problem is slope of that recovery. there's a shadow of inventory and that's people, particularly older people, who have thought about selling the homes over five years and lack confidence. so i think that slope's low. >> they have confidence or negative equity. >> just people perfectly healthy. we do studies on people negative equity but the people that are healthy and didn't sell the home. that being said, the home builders are impressive to me. they have ways to make money in times far worse than that. i like toll brothers and ryland and kb homes. >> thank you.

we'll be back with you throughout the day. sue? >> brian shactman with a market flash. hi, brian. >> hi, sue. look at "the new york times" up about 6.5%. the reports are going to sell about.com. the key to sell for $270 million. i don't know. if you think about apple, not a big deal but the market cap, that cash infusion is a big day. back to you, ty. >> thank you very much. shares of standard charter, that big british bank, number five over there, accused of doing business with iran, today you see it moving a little bit higher right now there. if that's the right quote on it. the ceo taking questions in a media call and asked about that now infamous statement attributed to one of the employeeing saying you blanking americans, who are you to tell us, the rest of the world, that we're not going to deal with the irani

iranians. sands said we are still in the process of analyzing whether we recognize the facts, we are in the process of analyzing the interpretations of those facts. hmm. as for the u.s. investigation, that's a big political football with officials sniping back and forth. senior economic reporter steve liesman is working on that today. are the people at the fed not amused by what the new york state banking regulator is doing? >> interesting comments of regulators commenting about what he's been doing. serious allegations of money laundering, iranian funds and doctoring official banking documents overshadowed of a state regulator overstepped the bounds going public with charges. some regulators criticizing benjamin lawsky's action saying he jumped the gun and in the words of one regulator hijacked the investigation in to standard charter and how -- saying that could have an affect on the

outcome of the case and the office would not respond publicly to the allegations. officials said there was an ongoing multi-year investigation to standard of several investigations and lawsky went public and took the lead with little or no notice. one official said the order threatens to pull standard's banking license as overly colorful and said the investigation turned up serious issues and more complex and specifically there's a question about so-called u-turn transactions that didn't end or originate in iran and cleared by standard's new york branch. the complexity is such transactions were legal. unclear why as is alleged in the order, standard stripped the two clients off of the documents. another official said set mmentes have yielded $1.8 billion recently. the person said, especially with charge that is are difficult to prove in court, can diminish the

government's leverage in negotiations, tyler. a question about style and substance, as well. >> quite a few banking organizations have paid fines to settle allegations this they violated the sanctions. >> barclays and as described to me meaningf fuful fines on the s and the point is as big of a fine as possible and perhaps avoid going to court and may be difficult to prove the charges. >> sue? >> indeed, ty. let's bring in representative gary ackerman on the phone with us right now. a new york drt and instrumental of federal laws to crack down on iran's banking connections to the western world. welcome. nice to have you here. let's begin with standard charter and assumed perhaps that the allegations that from the new york department of financial services are correct, if that is, indeed, the case, do you think the bank should lose the new york state license? >> well, there's an awful lot

going on here, sue. not only am i on financial services committee, but i also cheered the subcommittee on the middle east in the foreign affairs committee. this isn't just about negotiating the size of a fine and what should be done to a financial institution that violated the rules. speaking as a new yorker, not just an american, but specifically, as a new yorker, there's an issue of terrorism here. now, the sanctions are on iran. it doesn't have to do with just violating a financial service regulation and hiding the fact but this is doing business with the number one rogue terrorist state and we have to look at this for the seriousness that it presents. >> so do you think that if indeed the allegations are proven correct or proven true that there -- it sounds like you there should be a heavy fine, but do you think taking away the license is the appropriate remedy for that? >> i think london should be more

interested not by an attack from new york but by an attack from teheran. i think anybody who trades with the enemy is doing just that. and this has to be stopped. i think new york, although they might have jumped the gun and that remains to be seen, it seems that the federal government is negotiating over the size of the personalinalty similar cases in the recent past. this is about deterring terrorists and those who would act with them to try to clean up money in to foreign currencies such as u.s. dollar that iran desperately needs. new york understands that very, very well. and if they pulled the license, if these charges prove true, it wouldn't be severe enough. >> okay. what about the federal government's efforts? we know that the sanctions are in place. we know that there are strict rules and that are supposed to

prevent this sort of alleged infraction from taking place but is there more you think that the government should be doing to prevent these types of incidents or other incidents from occurring? >> certainly we are doing more than anybody has done in the history with regard to sanctions specifically on iran. in current day terms. the object is really to get iran to reverse course and not to pursue developing nuclear weapons and to put the most tightening sanctions as possible to make them go to their balance sheet and put a cost analysis benefit as to whether or not it's worth it. strangling sanctions can possibly get them to change course in pursuing nuclear weapons. they're suffering severely. their currency depreciated over 50% since we started this. it's starting to bite and take hold.

hopefully it will work. it's certainly going in the right direction. >> thank you very much for spending time with us. we appreciate it. we'll talk with you again soon. >> thank you, sue. >> ty, over to you. this midwest drought getting the attention of the restaurant industry. say what they're saying about corn and the impact on their business and your bill. the ceo of bloomin going public today. we have the c eo now that that stock is trading. up a buck 60. should be happy. let's look at five big wednesday movers. we'll be back in two. hey, follow us on twitter. @powerlunch. find out what's coming up and everything else you need to know. @powerlunch on twitter. [ male announcer ] at scottrade,

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welcome back to "power lunch." brian shactman here. looking at airlines doing better than you might expect. particularly locking at u.s. airways, lcc. they came to an agreement with a flight attendants union. 6,8 0 flight attendants. you see that afternoon spike in the stock. sue, back to you. >> indeed. up better than 4%. thanks, brian. speaking of things moving up, check out this look at corn. up 15% in the last month. now, 16.5% in the last month. it's up almost a full percent

today alone but now one group is saying watch for it to keep going up. big time. jane wells is live with the details. hi, jane. >> hi, sue. no one watches more grain prices than the restaurant. how expensive? association today released what david maloney calls a down-right scary moment. the green line is short-term moving average on corn. the blue is long-term. corn usually rises 21% meaning we could see $9.50 corn. corn has been up and down today as everyone waiting for one of the biggest usda reports of the year. this friday, the first projection based on field surveys of how bad the crop is going to be. back to you. >> jane, thank you very much. it's restaurant week on wall street. outback steakhouse making the

public debut on the nasdaq today. parent of hardee's going private on friday. look at where the stock is right now. $12.62. a 14% move higher today. "power lunch" exclusive now, liz smith. welcome and congratulations. >> thank you. >> very exciting day for you. you're happy with the opening, i'm sure. >> it's a bloomin wednesday for us. >> look at what jane was just mentioning and that is corn prices. how do you expect that is going to affect your costs and do you expect that you 'll be passing on some of those higher costs to consumers? >> sure. well, as jane said, we are all watching the corn situation and we have about 3% to 5% food inflation baked in to the plans for each of the next threeiers and takes in to account that so

we feel we have great plans to be able to absorb that -- >> absorb it, not pass it? >> we're going to be absorbing most of it and really just continuing to give the customers innovation versus, you know, price increases. >> let's talk a little bit about what's really working for you. you've got outback which everybody knows but i was surprised that it's really only about a fifth of your revenues. you've got -- what is growing the most? what are the biggest parts of your business? >> yeah. you know, it's great. outback is still over 50% but you're still right. it's a portfolio of five differentiated founder inspired brands. >> 50% of revenues. i got the -- i misread this. >> 50%. you're right. the rest of the portfolio is growing rapidly. people are surprised to hear that with carraba's and bonefish and they hold the number two share in their category.

bonefish is number two in seafood despite being in one third of the population. >> outback was a public company for a listening time. it was taken private. largest owner of it was bain capital, a name that's been out in the public sphere recently. and now you go public again. talk to me about why. >> sure. >> and the relative appeal of each being private, being public. >> we went private five years ago because we had amazing brands, so as you said, tyler, everybody knows and loves our brands. unparalleled quality. we had some work to do. we hadn't updated the brands -- we hadn't updated the menu and ambience. we had a positive brand imagery and needed to contemptorize that. >> why go public? you have to answer to shareholders.

>> you know what? the brands are in such a healthy place, all five brands, nine consecutive quarters of comp store sales growth. well above the industry and the team is in an incredible place. we had a group of operators that were unbelievable. 20 years plus and we needed an infrastructure and core disciplines we didn't have before. we're at a great place before of balancing the head and heart that is our compass and the time is right to come back in to the public arena. >> a final question because the owner was bain. you are not a bain person. you worked at kraft. >> yep. >> but i have to ask you. business bain a good steward of this company and how do you feel hearing the name in vain? >> bain is a tremendous partner for this company. the revitalization of bloomin brands is investment in people and brands. we've grown our brands. we have grown the number of

people. we're opening new restaurants again. so their whole strategy is to restore us to growth and back opening restaurants, back driving people in to the brands. it's been a great partnership. >> got to say nothing to me is better than walking in to an outback, a big 24 ounce beer, a steak, a -- love it. liz, congratulations. >> we thank you for that. >> continued good luck to you. >> thanks so much, tyler. >> don't mess it up. all right, sue? >> i'm sure she won't, ty. all right. when we come back, the analysts are very busy today. up next, we'll analyze their calls and on the docket, groupon, cvs and verifone. five more movers with the dow up 17 points. we're all in the green for dean foods, international flavors and fragrances, sprint, macy's and bed bath & beyond. because it matters. at hp we don't just believe in the power of technology.

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now they tell me! >> 100% agree with the late l late part. anyone on twitter knows that this is one of my favorite topics. this would have been much shorter and simpler. we have discovered that groupop peddles coupons. doesn't seem durable business model. wouldn't google plus, facebook, twitter start to compete with them on that? >> you agree with the downgrade. quarrel with the timing. cvs to outperform from market perform. saying, quote, reflecting increase increased earnings power and margin improvements. what say you? >> there's one question here in the whole cvs debate. does the walgreens and express scripts bring back the clients to walgreens? i say, no. it's hard to switch prescriptions. i think they do well with that and lasting impact. i like it, finishing over yesterday's highs, i would buy

it. >> moving on. ubs downgrading verifone systems noting it rebounded after overshooting to the downside on growth fears. >> interesting to talk about this today with competition with starbucks and paying in different methods. if the market thinks and one of the things that the analyst said is medium term new technology competition is a problem, the market thinks that, for sure. closing below 35, then this is an actionable trade. this is the one i'm most interested in. >> thank you very much. when we come back, a 75% income tax. what would that mean to anyone to pay it? coming up, the wednesday metals market close. the countdown is on. we'll be back in two. tdd# 1-800-345-2550 let's talk about fees.

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just a moderate advance in the gold market right now. sharon epperson is tracking the action from the nymex. >> hi, sue. not a ton of volume in the action and seems investors want to hold on to gold and the dollar and they want gold more than any other metal at the moment. the gold is the only positive performer here in the medals complex. the fact of seeing gold prices

above $1,615 an ounce they say is significant. folks seem to went to hold on to gold right now and anticipation of a central bank action and folks looking ahead to what the bank of japan may do and maybe give some more of a momentum upside push to the gold market. we are also looking at the etf action in the gold market. andhe fact that that seems to be holding steady and physical demand back to gold. that also may keep prices supported here but right now we are kind ofn a sideways session here for gold. back to you. >> thank you very much. all right. down on the stock exchange floor here, a gain of about 15 points. mary thompson joins us with the details on that. at least we bounced back a little bit from this morning. >> we did but not an overly convincing rebound here in the markets. the dow up 15 points. if you take a look at the euro

that tells the story as it came off the lows of the session, so, too, the broader markets. the s&p above the critical 1400 level. look at the sectors we're watching today because along with concerns of the outlook of the european economies, these are the other thing that is are moving the market. consumer staples, strong performance there thanks in part to dean foods. energy also higher after that inventory report which was bullish. materials higher and disappointing outlook from priceline as well as orbitz. also a watch on the transports because despite this rally in the broader markets, the transports haven't confirmed that. they're weaker today in large part of weakness in some of the airlines. you heard brian talking about, i believe it was one of the other airlines. i think u.s. air earlier and united continental under pressure with disappointing monthly passenger flows. that stock under pressure.

but the dow's up 16 points. back the you. >> thank you, mary. nasdaq's in the red despite bloomin did pretty well today. bertha coombs is following the big movers there. >> we're seeing a little bit of a pullback. hp helping hardware and rim still among the best performers in that sector after an analyst says maybe samsung is a white knight and buy the company and company confirming as it did on the conference call yesterday it is not in the market to buy the voice transportation service. express scrips bouncing up 8.5% after better than expected earnings and raised the outlook saying the integration going faster than expected. priceline, the big loser. european hotel bookings down sharply. that is hurting priceline but not just priceline. orbitz saying similar things and

the online travel stocks leaving today. sue, lobster rolls here. >> excellent. excellent. you know, you get all the good stuff over there on the nymex some days. thanks very much. we have weak economic data. uncertainty in washington. knight trading glitch keeping investors on the sideline. what might restore confidence? joining us is don drapkin. very drugged in gentleman. good to see you again. >> good to see you. >> i'm good. the question is you like the u.s. at this point. >> yes. >> an you've been around the world recently why is it that the u.s. is a more compelling place to be? >> the businesses are healthier than the european businesses despite recent moves by the ecb i don't think the fundamental problems are attacked in europe and i think the united states

corporations are doing better but we have a ways to go. >> how much do you think europe's lack of ability to organize and resolve some of their issues will continue to impact the u.s.? i mean, seems like we're more immune than a year ago but how much more? >> i think if you look at the beginning of june and july, we weren't very immune at all and i think we are in a lull period right now. we have heard some nice things out of the european ministers but just as god made little green apples, we'll hear things we don't like and affect the markets again. >> talk to me about the deal making environment here at home. we have heard anecdotal of some people that you really have to have all cash to do deals. that the debt markets are still kind of tight and other people say that's not the kiss. >> kind of an anomaly. i talked about it with a number of people in the last couple of days. on paper, u.s. balance sheets are stronger than they have ever been. there's tons of cash. debt levels are down. stock prices are down.

ought to be good buys. but yet i talked to m&a people and evenly divided about the deal making market to come back. i focus on activism. it's very active. from the ackmans to the icahns. that doesn't take the leverage of a leverage buyout or a regular deal takes so will we see return to deal making? i think the banks have money and want to lend. you need more equity than before. but on paper, there should be a lot more deals. there just aren't. >> yeah. ty, you want to get in? >> yeah, i do. a lightning round with you. quick questions, very quick answers. yes or no. knight trading glitch. matters, doesn't matter long run? >> they had a very good reputation. i don't think the average investor knows whether their trades are getting done. $400 million deal. according to paper this morning,

another $500 million deal. i don't think anybody cares. it's a glitch. >> fiscal cliff, worried, not worried? >> the fiscal cliff, are you worried, not worried? >> you bet i'm worried. i think washington is stymied until the end of the year and whether they carve a deal to keep us in good shape is problematic at worst. >> fed should act or not act? >> what do you think the federal reserve should do? >> oh, should the fed act? i think the fed should continue on the path they're on and step in if there's weakness. at the end of the day we have to create jobs. we have to put people back to work and drive the consumer and our economy. >> do you think the market and maybe investors in general are putting too much faith in the fed? aren't they limited? they can't necessarily get companies to hire. they can try to prod them to hire. >> well, you know, in years past

we have had job incentives. all kinds of legislative action that would create jobs. i think people are putting a lot of pressure on the fed because there's nobody else to put pressure on. there's nobody else to turn to. >> how do you think they should best fix what ail it is country? there's talk of extending the long-term program they have in place. there's talk that they could do other things. is there something you think is more effective for them to do than others or snot. >> i'm a big believer in not allowing tax cuts to expire. i don't think creating a gap between so-called rich and not rich profits anybody. i think our country founded on a notion that people should be able to make money and keep it if they get it. i think congress should act to increase job incentives. housing incentives. the prices are going up i guess this morning. the price, housing prices up a little bit. but we got to put people back to

work and that's got to be the main focus. we have to put people back to work. enough rhetoric of taxes and the twist and all of the rest. at the end of the day we have to put people back to work. >> that's a big issue in europe, as well. you were just in europe. >> it's a nightmare. >> well, that's what i want to know. what did you see and what concerns you the most, if it indeed in quotes a nightmare? >> the places i was at are enclaves so i don't know how much you can derive from that, but i was talking to people from spain and 50% unemployment amongst the major working class, 25% reported unemployment. housing prices down. land prices down as much as 80%. i don't see that anything including the ecb action attacks that fundamentally. what's going to bring back business and make it better? this morning's papers say that the french are chafing under now

higher upper echelon tax. i don't see where that's going to create industry and i don't think the germans have a sovereign impact on the spanish or the french or the italians so until they get that resolved why is germany going to pay for everybody else? >> right. that's the conundrum which is why you like the u.s. better, right? >> i don't know that i'm smarter than anybody else but that's why i like the united states better. at least we can act and once the election is over and things are clarified, i think whoever makes it to office takes remedial action and start things up. >> okay. don, always good to see you. come back soon. >> always a pleasure. >> brian shactman, time for a market flash? >> we talked about fossil yesterday. a huge spike after earnings. today it's down. you take a look at the one-week chart. it is amazing. some of it, yes, profit taking. dragged of what happened with ralph lauren.

interesting from citi, downgrade from neutral to buy but raised the price target to 100 from 88 so they still see some upside, just not as bullish on that run-up they just had. >> thank you very much. coming up in today's yahoo! finance poll, whether you think the housing market in your area is recovering. the results will go up very shortly. plus, what kind of cars do you think the richest people in america are driving today? what are they buying? results may surprise you. the top ten models will be revealed next. w york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world.

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coming up on "street signs," we'll take a look at three of the biggest rallies of all time to go bust and whether our current march back towards four-year highs is the real deal or is history about to repeat itself? the perils of the borrow now,

pay later society. just a symptom of our addiction to spending? how do we stop it? we have results of a shocking new survey of the 1% and how they feel about taxing the rich and whether it's time to hide our money in our mattresses. lots of things coming up. top of the hour, guys. back the you on "power lunch." >> thank you very much. starbucks announcing a bold, new deal with mobile payments star-up square. julia boorstin has the details on this innovative investment. julia? >> reporter: tyler, starting this fall, starbucks customers charge lattes without signing a receipt. the square mobile app links to a card. users can scan a bar code and it will eventually be able to pay by saying their names thanks to gps technology. the mobile payment system which until now focused on small businesses gets a boost of the first national chain and advantage over rivals from

google and paypal. meanwhile, starbucks benefits from lower transaction fees than credit cards. charles schultz says it will improve customer experience and boost results. it's investing $25 million in square at $3.25 billion. square said it's on track to process $6 billion in annual transactions with twitter co-founder at the helm, square could be the next big ipo candidate. over to you. >> that sounds revolutionary. thanks. jimiourio is with us. how do you play starbucks? >> i think this is a big deal. to be mentioned with the cutting edge technology is good and down today. as a matter of fact, starbucks down from 62 to 45 over the last couple of months and i made money on some of that down move but i think it's time to buy starbucks now. they have a good product still and can only help them.

i would get in right now. >> all right. jim, thank you. sue? ty, what cars would you expect to find in the country's most expensive zip codes? the answers may surprise you. phil lebeau is in chicago with the details. you piqued my interest. >> this is a study from truecar.com. the wealthiest zip codes in the united states and going right to left, top five. no surprise, mercedes, bmw and lexus and there is a toyota model and this is where the study is interest. after you look at the top of the list and what you would expect there, you come to toyota and say, really? the prius is in the top five. look at the other cars in the top ten. the most popular autos according to true car and the ten wealthiest zip codes is jet that, crv, camry. being bought this those wealthiest zip codes. this is when people say why are they being practical? in fact, if you go to a luxury

show room, you see that sales are up roughly an pace of the industry. 13.7% year to date. that's in the entry level market up 18% year to date and looking at shares of bmw and mercedes, not as though we're saying the wealthy are dumping the bmw, the hear say dose. we're saying, tyler and sue, they have a practical side and clear from the list when you welcome at the other models there they're buying the practical cars. >> indeed they are. >> and real quick, sue. >> long live the minivan. >> reporter: a123. look at the stock. a dramatic fall. since it went public. reason to point this out, awarded a department of energy grant a couple of years ago. people said this is the future in terms of jobs an growth and alternative energy. today a chinese company bought an 80% stake in a123 and the future is tied to a chinese corporation and now having control of it. >> was that correct?

i think i saw 97% fall? >> it was a $28 stock and now trading at 45, 47 cents? >> 47 cents and the move today puts it up 1%. phil, thanks a million. >> you bet. all right. coming up, are you still looking for shelter from the market volatility? if so, it seems bob dylan may help with that. interesting to say the least. the full story is up next. it's something you're born with. and inspires the things you choose to do. you do what you do... because it matters. at hp we don't just believe in the power of technology. we believe in the power of people when technology works for you. to dream. to create. to work. if you're going to do something. make it matter.

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welcome back to "power lunch." i must have airlines on the mind today. s skywest. regional jets is a tough, tough business. up 24.5%. they beat on the q2 numbers. one of the largest providers of delta. reducing capacity and not as big of a hit as expected and still down 33% year to date even with today's gains, tyler. back to you. >> all right. thank you very much. power rundown time and with us today, co-pilot brian sullivan and net janis smedins, co-pilot? we have it all working.

square, now going to handle credit and debit payments at 7,000 starbucks. guys, is this, john, start with you, the end of cash as we know it or just one more chink in that -- >> one more chink. i mean, right now, with the deal, you will have to present your phone to the starbucks cashier who are scan it and then that will count as a payment. not really the full promise of square which is that you just walk in to a store, the store knows you're there. you don't have to have a transactional interaction. not reaching in for anything. i'm not sure this is more convenient than a credit card. >> brian? >> i'm walking around with three days for $3 in cash and i had a car service on uber last night. everything arranged on the phone. paid through the phone. cab's taking credit cards. cash may already be dead. >> i have $10 that i have had for about a week in my wallet and that's it. >> 1%-er.

>> an article you wrote, brian. president hollande wants a new tax, a move to prompt maybe a mass exodus of france's wealthiest residents. brian, weigh in here. >> i wrote the piece, right, not talking about 75% here, tyler. we'll learn if they do this at what point the donkey dies and stop pulling the cart. how much is too much. hollande says everybody needs to kick in. this isn't 40 years ago. you can live anywhere you want. i've been to singapore and dubai. those are nice places. right in they have problems but they're pretty good living with the tax rates. i think we could see some real think french people say au revoir, paris. >> john? >> i predict that almost no one pays this tax. if you're earning that kind of money, you can relocate. nobody is going to put up with 75% of the income in taxes if

they can avoid it so i predict zero people ever pay this tax. >> hollande got elected. this was not a surprise. he was talking about this all along, right, brian? >> yeah. but think about it, tyler. politicians get elected by what they're going to give not get. >> wealthy investors, a $300 million bond backed by money from the right's performance and radio to bob dylan songs. john, you buy this bond if you could? >> you know, there's no way. one music is a troubled business as it is. the bond is backed by the royalties for selling songs. i'm not sure that's a risk to take. two, any time the credit market starts to produce the kind of funky products i get worried that maybe they're going nuts. >> maybe you do, brian, i don't remember the history of the bowie bonds of 15 years ago and this is like that, right? >> yeah. a man with a pig pen once $11

bills but you got 10, tyler. i don't know where they come up with the cash. i can't tell you successful or not because they came and went. little bit of modern love there. >> all right. thanks very much, brian, john. appreciate it. sue? guys, coming up in the next hour of cnbc, on brian's show, is it time to buy the banks? accusations, trading losses, regulation concerns. some names taking it on the chin lately. a manager specializes in banking stocks. "power lunch" is right back after a quick break. [ male announcer ] every day, the world gets more complex.

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♪ ♪ a check on wall street right now and the market is proving pretty resilient after being down earlier this morning. we have clawed our way back several times to peek in the green. s&p 500 is up and holding that 1400 level nicely. nasdaq composite under pressure and the russell 2000 is down 2 points. jim, maybe you first, it seems as though everybody's talking about the fear that's in the market. that people are afraid of equities.

yet, we keep pushing higher and holding key levels in the s&p 500. it's curious, is it not? >> it is. greater than people staying on the sidelines, the people in it know what the real story is and we see 100 handle down move in the s&p. and then starting to talk about fed liquidation again and that's what they do. i mean, they note asset prices when they speak. >> so, your thesis here is sort of ignore the vxx. i'm putting words in your mouth which is what i do best but basically you're saying that the smart investors understand if the market begins to crumble, the fed will come in. >> that's what i think. if the volumes are down, there's less positions than protect. vxx is misleading, too. that's a complicated issue. >> do you think the individual investor risks coming in to late? >> of course. the individual investor always