psx, phillips 66. >> that does it for us. follow me on twitter as always. have a great weekend. see you next week. watch "power lunch" which starts right now. welcome to "power lunch" with an update on the shooting outside new york city's empire state building. two people are dead, nine people injured. one dead is the gunman, a new york city resident who lost his job at a women's apparel company last year and roughly 9:03 this morning, across the street from the empire state building and fatally shot a 41-year-old former co-worker. mayor bloomberg saying police approaching johnson shortly afterwards. >> the police were there on their usual counter terrorism assignments, saw this, went after him, construction worker helped identify them. they approached. the guy pulled a gun and tried to shoot the cops and kill the

cops and the cops returned fire and he is dead. the perpetrator is dead. >> nine others caught in the cross fire and some of them may have been shot by the police. the mayor saying the injuries don't appear life threatening. back to you. >> thank you very much. see the spike in the middle of that screen? that's the dow just before noon. and here's why the market jumped. this line from a letter sent by fed chairman bernanke saying, quote, there's scope for further action by the fed to ease financial conditions and strengthen recovery, end quote. also today, the gold standard. it's coming back perhaps. really? what does that mean? we have a great explainer coming up. and then, of course, there is isaac. a story and a storm that we are watching very, very closely. will it hit tampa during the convention? and is the rest of florida in danger? all of that is straight ahead on "power lunch." tyler is on vacation.

>> good afternoon to you, sue. ben bernanke moving the markets and based on a letter dated two days ago and you could say the comments lukewarm but spiked here. bob pisani has more but first to steve liesman. okay, steve. when the fed really matters. >> yeah. an interesting comment and maybe more interesting reaction. a lot of what he's been said in the letter he said in testimony. he said elsewhere. but it's a bit like that one sentence that stands alone that there's scope for further action by the federal reserve to ease financial conditions and help the recovery. he said the benefits of further action in a separate sentence is ambulanced against cost and not as definitive perhaps as the market is taking. these are all in response to a request of representative issa. bernanke adding it's not a panacea and urging lawmakers to take actions on the deficit to support the economy.

he also added operation twist is working through the financial system. and then also defending the way the federal reserve makes policy as economic forecast which is another question that issa made. now the ecb also may be helping things along. more comments leaking out about how the european central bank could potentially buy bonds. a reuters story quoting a central bank official saying that it's considering targeting bans of bond yields and unclear to target a yield or a bond spread. the european central bank insisting no decision is made. is that back to sue or simon? >> back to me. which is kind of -- you would expect that, steve, would you not given that marrow draghi said he was sending the ecb staff on a venture of nonstandard measures and 2nd of august and probably all is in pli. >> that is right. i'll add i don't think there's anything new in the story because if you're not telling me if you do it with a yield or do

it based on a spread, that's really the question that's out in the market and reading in to the fourth or fifth graph of the story not getting new information. we know they're going to do it if somebody asked for it, european financial stability fund and how. >> the spanish had a cabinet meeting and specifically said no negotiations at all. >> not yet. just on the subject to might have known i could argue that what the letter that bernanke has said is, in fact, less dovish than the statement. >> why, simon? why? >> there's a caveat in that you so rightly said and didn't the statement say there's a majority that were minded now to move towards doing something in the near future? >> yeah. >> this just says it's a possibility. i mean, the markets moved and separate entities. remember. okay? there's the statement and the minutes from the meeting and then this letter. this is not part of the making of policy and i wouldn't go too far with the letter.

i think what's happened is gym bullard of st. louis may have distracted the market a little bit of what's been -- what i'm calling the consensus view and the fed is very close i believe to be able to do quantitative easing. >> he's not a voting member but let's talk about the move on the market then. we are at -- >> from the markets guy, if this letter to issa moved the markets it's a slow day in august because i agree with steve. there's not much here. look, pasting press releases essentially together. additional acome decision as needed the fed will provide. we heard this before and did move the market. the dow went up, moved about 50 points just on that. happened a little after 11:00. there's the move to the upside and a couple of predictable things happened. the dollar still up today checking, yes. a little bit. see the drop there. the dollar dropped and commodities briefly rising. copper still down on the day and see the spike up there.

commodities moved to the upside and unusual. dividend payers today, tell come and generally to the downside all week as the risk on trade tries, struggled to come ahead. there's people trading around portfolio strategies right now and not making a lot of sense at the moment. >> for the moment, thank you very much. sue, back to you. >> thank you very much, gentleman. steve stays with me and talk about gold, specifically the republican plan to bring back the gold standard and we are talking about the economic impact with steve and the political impact with john harwood who will join us in a moment. first, steve, your great explanation an what it means for you and the country. >> under a gold standard, a country fixes the value of the currency to a given quantity of gold. the nation's paper money is redeemable at the central bank for that quantity of gold. here in the united states, 1834 to 1933 the price of gold was fixed at $20.67 per ounce. another way to think about it,

one u.s. dollar gets you 1/20th of an ounce of gold. at the time, u.s. paper currency freely exchanged for gold upon request. it was an international exchange rate system. if the u.s. dollar and the pound sterling fixed to a quantity of gold the value is fixed to each other. countries also stamped gold coins like the romans did out of solid gold or mixing a certain percentage of gold in to each coin. in fact, what was meant by debasing a currency to reduce the precious metal content of the coin adding more base metals. roman emperors debased the currency regularly to maintain the lavish live styles. today, a gold standard is touted to control inflation and asset bubbles since no currency can be issued without the physical gold to back it up. but take the california gold rush in the 1850s when all that new precious metal hit the market so even on a gold standard, countries are subject to shocks.

they also risk high unemployment, governments are powerless to print more money and stimulate the economy during recessions. that's a key reason why the united states and most major currencies abandoned the gold standard in the heart of the great depression. >> all right. nicely done. we're going to talk -- >> i need to mention kelly limp, producer of that, worked with an illustrator to put that together and ready for disney after this. >> there's the voice of a hedge hog or something in your future. >> yeah. economics thing doesn't work out. >> yeah. it's working out pretty well for you by the way. >> thanks. >> john harwood is in washington. john, the republicans talking a lot about a possible return to the gold standard. do you think that actually might become a policy discussion or is it simply politics given the campaign cycle? >> reporter: it's politics. not going to happen any time soon. think of the gold commission that the republican platform is calling for as a sugar cookie to

republicans who are highly concerned about that. maybe a stiff drink for larry kudlow. but no. this is something that the ron paul forces are quite interested in. they were pushing for this. the romney campaign wants a smooth republican convention and one way to do that is to throw something to people who want policies that you don't support so you have a commission. when richard nixon went off the gold standard, criticism of conservatives. when ronald reagan was nominated in 1980, the republican platform then called for a gold commission which, of course, in the end didn't end up changing policy for some of the reasons steve articulated in the piece. >> republicans talking about the gold standard and shown no love for mr. bernanke and the policies of the past. where does it go from here? mr. bernanke shown relung tans to discuss the gold standard in a meaningful way. >> i give sympathy for the idea. i think the idea economically is not necessarily all that sound but i understand people's concerns.

you have a central bank to print as much money as it wants and people say what's the basis of my money then if the government can essentially inflate it away. ? we don't have inflation now and there's concern some point in time to get inflation so, yes. it's on the back burner and i think it sounds like a commission in a platform is the equivalent of saying go stand over there and smile. that's what it means for now but let's not dismiss the undercurrent in american politics right now who have serious concerns and an expression in the republican policy and concerns. ultimately, i think the federal reserve can act to stem inflation but that's not entirely clear to everybody. >> all right. >> sue, i just wanted to say circumstances can also make ideas that don't look reasonable or politically feasible at one point. ron paul said the financial crisis fueled his campaign of 2007 and 2008. it is possible that if the debt crisis becomes more of a looming, clear and present threat to the american standard

of living this idea could become more popular. >> indeed. gentlemen, thank you very much. we appreciate it. we want to know what you think. should the u.s. go back to the gold standard in vote on that. finance.yahoo.com. simon? part of that gold standard conversation in tampa next week could be washed out by isaac. the storm hitting haiti. yesterday, the dominican republic felt isaac's wrath. this video just in to the newsroom. as you can see, let's get an update now with the weather channel's todd santos. >> well, thanks. want to get the very latest as far as where isaac is right now. a quick look at the system. you are talking about a tropical storm max sustained winds at 60 miles per hour. it is stronger than this time yesterday. it is tracking off towards the west/northwest around 14 miles per hour. one thing to stifle some of the development short term would be that track over western portions of haiti and towards southeastern cuba. that's in through saturday evening.

that point you're still talking about a tropical storm. once you get past that and in to the eastern gulf of mexico, that's the window for the system to reach hurricane strength and notice the areas at least on the edge of the cone and still for the potential for the center track of the system and even if the system made it through the western side of the gulf some of the areas in the eastern portions of florida with squally quns through the weekend and still the rnc a big question. looks like isaac headed to eastern to central gulf this week. >> thank you very much. we're also keeping an eye on the tobacco stocks after a big win in the courtroom today. brian shactman covers that industry and more, of course. he has some details on that. hi, brian. >> hi, sue. a blow to the anti-smoking movement. just how big of a win remains to be seen. the u.s. court of appeals ruled 2-1 the federal government can't require graphic images on the

pack. you can see what it looks like. it's basically designed to show what can happen if you smoke and scare them in to quitting. the fda nine of the ages and the decision comes on the heels of the tobacco companies suing to block the mandate to use the warnings. look at the stocks today. major domestic ones. realtively muted. they weren't involved in the suit and did hike their dividend another 7%. and of course, they can appeal this to the supreme court. two years ago, a global look at tobacco and from poland saying smoking kills. this is from canada, actually. i don't know if you can zoom in on it. they have that kind of label on it right now. this was two years ago so in terms of ahead or behind the curve, look at that. that's nasty. >> that's graphic and why the anti-smoking advocates want it pointing out some drop in smoking incidents in other parts of the world so we'll see.

brian, thank you very much. >> you're welcome. next on "power lunch" this afternoon, two guys who were in mark zuckerburg's shoes before anyone heard of mark zuckerburg. how do you balance your board, your shareholders, silicon valley creativity and wall street's big money? talking about that next. but before the break, five big friday movers and they include on the trading session 1% move to the upside in travelers. back in a moment. okay, here's the plan. you have a plan? first we're gonna check our bags for free, thanks to our explorer card. then, the united club. my mother was so wrong about you. next, we get priority boarding on our flight i booked with miles. all because of the card.

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stock market in rally mood. up 76 points on the trading session after ben bernanke told issa there's room for further fed action if needed. reaction of the power player katie nixon at northern trust. good to see you again. >> nice to see you also, sue. >> you kind of agree there's more room for it if the markets warrant it. correct? >> clearly. and you're right. the market is in a good mood today based on the fed's statements and bernanke's been very consistent. he'll do whatever it takes and at the ready to make a move possibly as early as september. >> that's why you favor u.s.

equities over other parts of the world? >> it's one of the reasons and not a major regular. we see the u.s. as being the best house in the neighborhood right now with very strong corporate earnings. had a great second quarter in terms of bottom line results. we're also seeing fortress balance sheets. big u.s. companies with cash hordes and reserves to provide them some dry powder for the uncertainty. >> how would you design or how are you allocating capital for your clients right now in terms of u.s. tech is versus high grade corporates and things like that? >> we have been fairly consistent and we've been over-allocated to u.s. equities favoring them substantially over internationally developed and we're pretty much equal weighted in emerging markets right now. clearly said before many times before, we're waiting for ratification stability in terms of economic growth and looked at the china pmi data for instance yesterday as a sign we're not quite there yet and maintaining

a neutral stance. in terms of corporate bonds, we favor high yield and this yield hungry environment, high yield does provide a very nice income return of clients and we don't find the risk/reward that compelling. >> you also have a slight overweight in the gold market. and, you know, the timing on that is pretty good. we have seen a move in gold in the last couple of weeks. why do you like it? especially if we have further easing coming. >> it's particularly if we have further easing coming and i think you have seen the recent rally. the rally over the last 11 days in gold. pretty much a function of the fact that whether it's the draghi whatever it takes announcement or the bernanke whatever it takes announcement, central bank easing is on the way. and gold certainly benefits from any kind of fear around the debasement of the currency. >> sure. what would you stay away from? because making money for clients and making money in your own portfolio is also staying away

from the wrong things. >> it is going to sound boring but the one asset class we're shunning right now is cash. certainly -- >> do you have anything in cash? >> on a tactical basis, a zero weighting in cash. clearly for private clients, it's necessary and going to be some percentage of cash in client portfolios but what we're doing now is talking to clients about what the use of that cash is and to the extent they don't need it today or in the near future, trying to push it out on the duration spectrum for yield because we'll be in the environment at least through 2014 if not beyond. >> last question. a lot of people are very worried about the fiscal cliff. are you worried and the impact on the market? are you anticipating any bumps in the road? >> of course we're worried about it. certainly we see it as a high risk scenario right now. however, we're hopeful that congress will get its act together and at the very least will kick the can in to 2013 and let the new administration or the currently re-elected

administration however that goes get a game plan around how to deal with the fiscal issues so our base case scenario is push the issue in to 2013 and clearly affecting corporate risk appetites right now. >> right. okay. katie, thank you very much. good to see you again. >> you, too. >> back to mary thompson with breaking news for us. mary? >> we want to update the viewers on the preparations taking place as the gulf coast prepares for isaac to hit the shores or possibly off the shores. a couple of rig operators saying they're starting to evacuate nonessential personnel of rigs and platforms with diamond offshore, evacuating these personnel from one of the three rigs operated in the gulf of mexico. transocean also evacuating nonessential personnel from one of the 14 in the gulf. bp evacuating nonessential personnel from two facilities and shell also evaluating the situation. one thing to note is low said it's deployed extra materials in

about 50 to 60 stores along the miami's or florida's east coast and along the panhandle and alabama, as well. i think we have some video also of some shoppern home depot in atlanta. of course, preparing for the approach of isaac which continues to be a tropical storm and expected to turn in to a hurricane over the next couple of days. according to the most recent forecast. sue, back to you. >> mary, thank you very much. getting you more updates as they warrant. now to brian shactman. >> so, we had disappointing results and guidance in the software to do with stuff in three dimensions and sxwresing to watch two 3d companies. stratasys and 3d dragged down i guess in relation to the autodesk results. over to you. >> thank you. dual milestones and big money. one to do with apple and one with warren buffett.

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almost a 20% jump. kayla tausche has the latest. >> the idea came to him in the bathtub and gave the bank ceo moynihan a day to decide whether he would guarantee upside for the oracle of omaha. first 50,000 shares of preferred cumulative equity at $100,000 apiece. worth $5 billion total and a 6% dividend. but then just for kicks buffett gets additional $700 million warrants he can convert to stocks any time in the next 10 years. now, in the last year, buffett collected around $300 million on the stock dividend alone. the warrants considering the current price of roughly $8.20 a share, in the worth a total of roughly $700 million for that gain there. and if he cashed it out now, he'd get a $250 million premium on that preferred equity, as well. giving you a round total for the

investment above $11 billion. now, according to second quarter filings they had a carrying value of $18.6 billion for all its fixed income investments and similar injections at goldman sacks and ge and first half of 2012, $1.9 billion in investment income and that b of a dividend paid quarterly and paper gains of $1.2 billion in just a year, simon, not too bad. >> absolutely. thank you, kayla. don't forget to follow warren buffett 24/7 here at cnbc. go to buffettwatch.cnbc.com. remember tim cook named c eo and concern of exkating like steve jobs? shares up 76%. snot shabby at all. tim cook, one year as ceo of apple. the metals market is about to close shop for the day and indeed for the week.

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gold finishing higher for the week and interesting week for bouillon. jackie deangelis tracking the action at the nymex. jackie? >> hi there, simon. gold prices trading and closing a hair higher today but in a close range. below the ceiling traders told me we wouldn't pass through this week. silver best performing this week, up 10%. there's are trading in a close range. uncertainty of monetary policy and keeping us here. in addition, traders talking about the gop and the potential to call a commission to restore the gold standard. you guys mentioned it before. that's not really impacting prices. copper trading a little bit lower today. platinum also getting a little bit of relief on the situation in south africa. there's a labor minister meeting today and watching for headlines

on that. that's the action here. simon, back over to you. >> thank you very much. up 78 points on the dow down here at the new york stock exchange. these bernanke comments turned us around, bob. >> it's very interesting because really he's not saying anything new at all. in fact, pastes some comments he's made previously, previous fed minutes in to the commentary. nonetheless, the dow moved 50 points. it's a slow august day, people are interested in qe3. the dow just off of the highs for the day. not a very good week for the stock market. the risk-on trade, the materials, the energy stocks done nothing this week. looking at the stocks up, health care defensive market here. financials are even on the upside a little bit. there's the health care stocks and tech all of those groups are to the downside. a thing to note here is transports have gone nowhere for a while now and this is a real nonconfirmation and traders telling me for a while never close to new highs on the

transports. a problem for the market. >> thank you very much. let's check with rick santelli in chicago and heading in to the week. rick? >> well, thank you, simon. just like earlier comments, you know, with regard to helping hands through programs from the ecb side, the response in the marketplace during the comments of bernanke predictable. not necessarily long lasting. 10s and 30s, 11:12 eastern, both spiked up and met with counter trade. if you look at the euro versus the dollar, still down on the day and the euro has had some strength and definitely popped. that pop met with some selling. dollar index, the mere image, same thing. the dollar index is really under pressure as of late with pretty decent volume and moved lower and even though it's bounced a bit seems like sell rally mode in dollar index. this's the view on the floor. of course, the last chart we want to pay attention to here is what's going on with gold. jackie talked about it. gold very responsive that

anything that moves the dollar. simon, all yours. >> thank you very much. a close eye on drug make earls at the corporate level today. specifically eli lilly. the company saying its drug disappointing clinical trials but it is not all bad news. seema mody joining ussimon, her. failed to meet late points in the studies but the stock up the companying it shows slowing decline dpirs for alzheimer's drugs and what's next? that's the next question. bernstein analysts say all possibility are on the table including the filing for approval and additional studies most likely be requested by the fda. alzheimer's is a tough target and an area of tremendous unmet development of a drug. some analysts say that's another reason we're seeing shares of

lily outperform today because there's hope the drug will continue to progress. now, alzheimer's experts will meet in october to analyze and discuss the data and expect some more details then. back to you. >> thank you very much, seema. okay. if you've just joined us, welcome. the top story this friday. we start with that shooting outside of the empire state building this morning. two people are dead including the gunman. he was killed by police officers. the nypd says this was not a terror attack. instead, it had to do with a long-running labor dispute. joining a news conference after the shooting, the mayor says it's possible some of the wounded were hit by police bullets after they were caught in the cross fire. other business headlines, altria boosting the quarterly dividend. stocks hitting new highs. sherwin-williams at all-time highs back to levels not seen since the ipo in 1964. disney considering a possibly

buyout of the french company that manages euro disney after two decades of weak financial results there. sue, i always think of euro disney as a new business. i'm showing my age again. back to you. >> no, never. simon, never. >> 20 years. >> 20 years. i know. doesn't seem like 20 years, does it? all right. let's look more near term. it's an up and down week for facebook. a big product launch yesterday and the stock hammered overall today down just another fraction. and it's shares dropped nearly 50% since the may 18th ipo. peter thiel this week and a board member sold most of the very sizable stake. with us two tech pioneers and both in mr. zuckerberg's hues and here to talk about the battle of silicon valley and wall street. steven paterno former ceo and cofounder of the original social network the globe.com joins us

and greg ryan of double click. thank you very much for joining us. appreciate it very much. kevin, i'll start with you if i can. the reaction to the selling of that stake and now remaining on the board. it seemed to us looking from the outside in that that was an extremely bold move and highly unexpected. >> well, i think the question is really do you view him as an angel investor, independent director or a vc? it's understood when investors, you know, professional investors invest they distribute or sell the shares with a fund to do that. and you expect it and know it. i think that part is appropriate. the question of staying on the board is another one. i think it's difficult for him to be effective on the board and i think most vcs should not be on the board of publicly traded companies. that's not the expertise. >> stefan, you have taken your company public and you had vc and angel investors. what is yourl reaction to what he did, one?

and two, do you think that to kevin's points vcs or age euna lees should stay on a board and do we need to redo the rules? >> well, putting the rules aside for a moment, i think peter made a very long term investment. he's been in the facebook stock for seven-plus years so it's absolutely natural for him to want to take some risk off the table. as a board member, it might have been, you know, he should have maybe been more cautious and selling 80% of the holdings after the lock-up expires is sending a mixed signal to the market. i hope it's with a blind trust and reasonable to sell a certain amount but maybe a slower pace but he's an early stage investor and angel investors in general in it for the long haul and the public markets are a casino. people looking to buy, sell, make a quick buck and freaking out when there's any news up and down and people need to think long term. >> kevin, weigh in on that. it's interesting.

he is on the board. so you have information about the company that most of us don't have. certainly. so i think that's one of the optics that just doesn't look right is that fact that he is on the board and sold such a large percentage of his stake. being an angel investor or a vc, naught aside. you have a board member that has inside information on the way that the company works, legal inside information, and yet, you sell the majority of your stake. the optics just don't look grood. >> it's difficult to be an effective board member and persuade you to join facebook at today's valuation when the first point is, why did you sell your shares? other hand, don't forget, in most cases they distribute the shares and sometimes room on the board and this is not the first time and looks bad that the price dropped so much in the meantime. he had a fixed program set in and not responsible for this. >> do you think, stefan, that the lock-up period, the whole concept of how long the lock-up period isser and how long to

sell your shares needs to be addressed? do the rules need to be rethought given this? >> i think the lock-up period is a hold-over of a legacy system. everybody's hoping the stock will really pop, for all of the people that have held the stock for the seven years before going public, if in the case of facebook and the globe it was also maybe four or five years before we went public. all the major institutions got to pile in. we didn't benefit at all. the people working the hardest to benefit at all and the people in the stock flipped the stock in 24 hours. so i think there's -- it really depends on what type of stock it is, how big the discount is and it's in the company's interest to really attract long-term shareholders, large ins institutions. not to bring in as many small investors looking to flip the stock. i think the rules need to change to better protect the company and prevent major institutions from flipping out the first day

or week. >> what about the board, kevin? it almost seems in mr. thiel's case he got the exception, right? he was treated differently than other board members and certainly different than the other shareholders. isn't it the board's responsibility to look out for all of their shareholders? >> yeah. but we don't know the trade-offs they were making. when you think about whether peter should stay on the board, part of the conversation is he a valuable board member right now? coming out of the meetings saying, thank goodness he was here. but in the situation, i don't think that the regulations need to be changed. you know, the reality is that most ipos are going okay and there's a six-month lock-up. two quarters to report and then investors, the problem in facebook is investors priced it too high. >> stefan, last time you thought there's a disencentive out there to go public. do you still feel that way? >> yeah. i think the markets have

fundamentally changed. used to be that major institutions held stocks for years. now it's three months. that's why firms like second market address the issue, to help act as a bit of a pressure relief mechanism and people holding stock for a listening time start to get out in small increments and the management keeps things under control. there wasn't this mania trading on second market. it was much more controlled. i agree that the valuation was as hyper inflated as it possibly could have been by the time it went public and didn't serve anybody well and now that it's going on to address mark zuckerberg, he needs to absolutely drown out the noise, ignore what's being said in the media and the shareholders are saying and stay focused on the long term growth of facebook. >> well, they came out with the product launch just the other day so we'll see. nice to have you both with us. thank you so much for joining us. >> thank you. >> simon, down to you. >> interesting conversation. thank you, sue. pancakes, bacon, eggs,

coffee. how do you start your day? jane wells looking at food inflation impacting your breakfast. jane? >> simon, we are trying to keep the bee away from the food i cooked. we have new food price numbers from the usda today. big jumps in certain things. i'm going to kill that thing. but up next, we'll find out how much is the price of corn impact in food? i want to eat that bacon. i don't want that bee on it. we'll have it after the break. [ male announcer ] eligible for medicare?

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threat to the oil rigs in the gulf? we look at the concern in the market and the impact of already spiking oil and gas prices. plus, herb's investigation in to the loan shark rates charged by payday lenders and one is here to defend the business. should be really good. showing you how to buy private islands on the cheap and to get your butler to do the dirty work for less. super things coming up. top of the hour. sue, simon, back to you on "power lunch." >> thank you. a new report on the impact of food inflation and guess which way prices are going? jane wells is live in l.a. reporting on the cost of a typical breakfast, a typical west coast breakfast. >> reporter: oh my gosh, simon. still doing battle with the meat eating bee. for a lot of things prices are going way up and paying more. for example, in this power breakfast or lunch as we should say, sirloin prices up 15% a

year. whole chicken up 16%. ham up 8%. bacon up only less than 2%. cheddar cheese up 13% and milk and egg prices down. $8 corn in the meantime. the new normal. we are trying to find out how much the cost of corn goes -- how much corn in the products. i asked livestock producers how much corn to feed an animal over the life span and how much product out of the animal? start with the steak. okay in the 16-understand steak averaging $6.90 an ounce. over to the eggs 5 cents worth of corn. 3% of the overall retail price. 16 cents worth of corn in a half pound of bacon or 7% of the retail price. smaller percentage of the overall price in beef because pigs are more efficient with the feed and milk, 32 cents worth of corn in the gallon and average darely cow produces over 5,800 gallons of milk in the life and eat nearly 13,000 pounds of corn. about 10% of the cost of this meal is a cost of the corn that

went in to make it. finally, guys, sue, it is not this corn. this is the corn you and i eat. sweet corn. it is not $8 a bushel. doing much better in the drought. this is feed corn in this. we talk about corn prices, 90 plus percent of the corn in the country grown is that kind of corn. not this. >> i'm so glad you mentioned this. people in the grocery store think the prices go up. it's completely different. thank you, as always, my dear. all right. the stock is sitting at all-time highs chlts but how's apple's ceo tim cook doing one year after taking over for the late steve jobs? we'll give him a grade on the progress. plus, prince harry and vegas. my, my, my. is this rupert's revenge against the royals? more "power lunch" after a quick break. [ male announcer ] while many automakers are just beginning

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brian shactman here. take a look at amazon hitting an all-time high. and look at the 20-year chart. that's 12,481%, folks. pretty unbelievable. simon, in 1996 in graduate school buying books, i should have bought stock but i had no money. >> hindsight is 20/20 on so many

things. thank you very much. prince harry is seen naked around the world. the uk to be lloyd "the sun" publishing the photos today in britain causing many other british media outlets to follow suit. here, the city of las vegas turning the prince's naked escapade in to an ad campaign. asking people to learn, live and protect the code of what happens in vegas stays in vegas. and to sign the oath. sin city also telling the prince to keep calm and carry on. that brings us to the power rundown. with me is bob pisani and john carney. >> heavy hitters for this one. >> i shutter to ask this of two gentlemen of your caliber but should everything, john, that happens in vegas stay in vegas? >> i'm glad we didn't use the word hindsight in this. it's a totally different meaning in this case. >> or crown jewels. >> i think prince harry's

probably won himself some fans. you know, i have talked to some women who had never really expressed much interest in the young prince and now they're a little bit more interested. >> are we mad because of the photos or mad because he had a $5,000 hotel room and playing strip billiards? i want instructions. >> 27 and single. >> 27? >> this is done more for the british monarchy to connect to a younger generation of males than any other over the past 50 years. no question. >> good for him. >> potential problem in china. or the latest potential problem in china. "the new york times" reporting the country's struggling with a build-up of unsold goods cluttering shop floors and clogging droip dealerships and filling warehouses. what does this say about the chinese economy and how much should we fear it here, john? >> it is another sign that the chinese economy is built up on a lot of supply and very little

demand. they're producing city that is are empty. now seeing stuff sitting on shelves unsold. they don't have the demand they need to support the economy at the rate it's been growing and seeing this dramatic slowdown and it is going to be slowdown for the entire global economy. >> for sure. >> and the chinese economy is clearly weaker than people said. >> you started your report today, first report on the floor of the exchange, with the shanghai market. >> that was very important. we are at multi-year lows on the shanghai market because people smell this out. they took a dig at the economic stats, as well. ministry of car registrations stopped announcing. you have a problem with the stats, stop reporting them. tim cook marking the first year as apple ceo today. guys, how would you grade him? >> an a-plus with honors. one of the best in america. this stock is up in the year he has been the ceo, 77%.

that's incredible. it was already -- >> that was the legacy. that surely was the legacy. >> no. a lot of people thought once steve jobs is gone, we have people on the air telling us this company's in trouble. tim cook proved them all wrong. >> it's an a-himinus because th stock's up 40%. may close at a historic high but jobs did work on the iphone 5. everybody says it's coming out. don't know if it's successful. that's still a legacy. i still give it more time. >> but it's freshman year -- >> so far he's been great. >> top marks. >> i wouldn't argue with that. >> thanks. have a great weekend. mitt romney using staples as a metaphor for america. but the stock's down 20% this year and off 50% over 5 years. was this a mitt romney mistake? , i'm totally focused. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 gives me tools that help me find opportunities more easily.

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turning out to be a strong day on wall street so far. dow jones industrial average was just up 100 points. given back a little bit. up 92. s&p 500 up 9 points on the trading day and the nasdaq is up 19 points on the trading day. but, you know, simon and bob, i'm a little skeptical of the

rally only because we haven't seen the move out of the bond market in to stocks that you would think we would on a triple digit advance. >> it does change the conversation, doesn't it? >> absolutely, it does. >> this morning at breakfast, a clear reversal and the question of highs for the summer. you know, that's not the headline of the week anymore. >> i think the problem for the market now is no leadership at all this week. all of the risk-on trades or energy, materials, industrials basically did nothing this week. they're all down on the week. dividend payers are flat to slightly down on the week and nothing churning up, pushing up the market right now and i think that's a problem where the market doesn't really know where it's going to go right now and whether it's positive european headlines or negative. >> a vacuum until jackson hole of news or drivers potentially, sue. >> what about the transportation average? is it confirming the move seeing in the market today or not? >> talking about it all week. going absolutely nowhere. never close to the highs or the