>> hasbro. new product cycle story. catch more "fast money" at 5:00 p.m. tonight. follow me on twitter. "power lunch" starts right now. scott, thank you. teachers in this country's third largest school district taking a hike. walking off the job. it is a local story with national implications as president obama's former right-hand man takes on the union in his, president obama's, hometown. second, there will be war with iran? only a few people know the answer. only a few have a hand in the decision. one of them is with us today. and one of the biggest names in the business of hip-hop sends a message to occupy wall street. leave the 1% alone, says jay-z. that's all coming up but we

start with sue at the nyse. indeed, if you're a parent in chicago watching us while you watch your kid today, welcome to "power lunch." a major teachers strike is on in the nation's third largest school district. that is chicago. take a look at this. a picture of one of those kids on his way to work today with his parent at the goldman sachs office in chicago. indeed, some are calling it drag your kids to work day. nbc's kevin tibbles is live in chicago with those protesting teachers. >> reporter: hey, sue. behind me is quite a boisterous demonstration outside the ray school in chicago. those people who were taking their kids to work with them are probably the lucky ones. some 400,000 kids are out of school today and a lot of parents are having a difficult time trying to place them. this particular school is 1 of the 140-plus schools that did open its doors. doors will stay open from about 8:00 until 12:30 and children

are going to be fed breakfast and lunchal these schools. but a number of the parents that we have spoken with said that they have had a really difficult time finding a place to take their kids. some local churches as well are being treated as safe havens. good news is of course that the talks have resumed today. they went very late into the evening last night before the strike mandate came down. the teachers have been on the picket lines at this particular school since 6:30 this morning but again the good news is that the talks have resumed. yesterday they were saying that they were very close. interestingly enough, it sounded like the school board thought that the talks were a lot closer than the teachers union did. that's probably one of the reasons why these people are marching behind me now. >> indeed, kevin. thank you very much. kevin tibbles in chicago. phil lebeau is a native of chicago. phil, you've seen the strikes and the threats of strikes over the years there, but this time it's different. you have a democrat and perhaps the most union-friendly

president ever and that complicates the situation somewhat. so what's the feeling in chicago? >> rahm emanuel may be somebody who served with the president who perhaps the most pro-union in a while but he's been very tough on unions here in chicago. he went to the wall with the sanitation workers and said, listen, we need to have some cost cuts come in here. he's had a lot of popular support for holding the line with the teachers as well. the problem is for rahm emanuel, chicago has gone through a very violent summer. the murder rate was higher and a lot of parents are looking at this and saying, okay, a day or two of a strike, we understand that this is part of the negotiating process. if this goes on for a long time, sue, rahm emanuel is going to feel a lot of heat because a lot of parents are going to say -- i don't want my kids not in school. they have to be in school. that has to be part of the solution here in the city. he's threading the needle holding the line against the teachers especially on issues like accountability, giving principals more ownership in terms of removing those teachers who are not performing, having teache erers make the grade in s

of student test scores and that's tough to do in this day and age. the issue is less about money and more about accountability. rahm emanuel is trying to hold the teachers to a strict line there. >> do you have a sense, phil, as to how long this strike will be able to continue before parents draw the line in the sand? >> only a few days. you can already see it. there is a palpable feeling in this city from a lot of parents who are fed up with the mayor, but also fed up with the teachers. they're looking at this and saying, come on, really? you can't come to an agreement? you've known for some time when school was supposed to start. you should have come to an agreement by now. i think after a couple of days both sides will really feel the heat that they're going to have to come to a deal. >> right now just a lot of posturing. sue, if you have a democratic mayor in the nation's third largest city with very close relations to president obama, was his chief of staff, after all, and he is, by some accounts, the most union friendly president in a long time with big support from those very same unions, including the teachers union. so the question in the campaign

season -- will there be national implications? chief washington correspondent john harwood, weigh in here. this is a president who had a lot of support from the teachers union and has reciprocated in his stance generally towards those unions. this in a campaign season where public employees unions are a hot button issue. >> they are. i wouldn't expect it to have national implications though, tyler. president obama and his education secretary arne duncan have in fact had a bit of a mixed relationship with teachers unions. yes, they are wholeheartedly, those unions, are in support of president obama's re-election as compared to mitt romney, but as arne duncan has implemented the administration's education strategy, teachers unions don't like some aspects of it. at some level the fact that a high-profile ally of president obama is seen taking on the teachers union, that deals, in some small way, with the

criticism that president obama gets from republicans as being too pro-union. the other thing to consider in terms of the potential electoral implications is the state of illinois is not a battleground state in this election. it is safely in the democratic column so i suspect president obama is going to be content to let rahm emanuel work this out. as phil lebeau and kevin tibbles were suggesting, think they'll probably work it out in the next few days. down here at the new york stock exchange, i'm looking up at the board -- the dow is up seven points on the trading session. doesn't seem like much but if you look deeper there are some bullish signs down here. pay attention to the dow jones transportation average. those who follow the dow theory know that you -- in order to confirm a bullish up trend in the dow jones industrial average you need confirmation from the transports. today, although it is only. 75% to the upside, the transportation average is up 36 points, up almost 2% in the last week alone. now it far trails the s&p 500's

gain. however, those who are bullish on this market point to this as confirmation that the bull trend remains intact. you have the likes of delta airlines. a lot of the airlines are on the way up today. delta's up better than 2%. united continental is up as well. conway is up 1.25%. and it is a fairly broad-based advance with fedex also participating. they're all on the upside today, ty, and a lot of dow theorists and think there might be more legs to this move in the dow jones industrial average are pointing to it as proof of that. aig one of the big stories over the weekend, down more than 1% a day after the treasury department announced an $18 billion offering of stock it owns. that's the biggest stock sale since the government took over aig in 2008 and bumped $182 billion of yours into the insurer. the treasury will become a minority shareholder now cutting its stake from 53% to around 20%. the offering is seen as a

victory for aig's ceo robert benmosche. he took the helm in 2009 and said the government could pull out by 201. shares of advance microdevices up 2% after getting off of goldman sachs sell list for the first time in 5 1/2 years. the chipmaker was upgraded to neutral. goldman says, "we do not see a near-term catalyst for an additional decline." but goldman says there could be a better entry point at which to sell amd stock. brian schactman with a market alert. one frt draof the drags on 500 and nasdaq could be apple. that's a pretty big smackdown off a level there. obviously the s&p and nasdaq sensitive to big names like apple. >> perfect segue, brian. thank you. because in the tech world

there are few bigger names than facebook's mark zuckerberg and apple's tim cook. we'll hear from them in the next 48 hours and what they say and the moves they make will have a profound impact on the rest of the tech sector. jon fortt is at one of the most anticipated tech conferences of the year. these typically drive the train and as a result the nasdaq influence. >> reporter: absolutely. but a little bit of context for this time of year in tech. we're about to see a big launch from apple. phones that apple puts out into the market particularly in q4 drive a huge number of app downloads, a lot of service usage in the beginning of the year so the entrepreneurs here certainly have that in mind. on stage just a few minutes ago we had ben horowitz of andreessen horowitz talking about how much the landscape has changed recently in mobile. listen to what ben horowitz had

to say. >> amazon's latest announcement, its hardware, software and content integration. soin creasingly to play in that field, if you don't have great access and great pricing and great availability of content, you probably can't compete in the computer business. >> reporter: that's the reality that a lot of these start-ups here are facing as you can see. quite a few will be here for the next couple of days covering all that, including tomorrow with facebook's ceo mark zuckerberg. guys, back to you. >> all right, jon fortt. should you be buying apple ahead of that iphone 5 news? fy own it, what do i do? if i have's got it on my buy list, is now the moment or not? >> probably. the only negative argument anyone ever makes about apple is that it's run too far too fast. everyone agrees that the fundamentals are outstanding. normally product launches are greeted very well by the market, but not always. so i like apple.

remember the key thing here is that the more people buy it, the more people are tethered to that ios system, so in some ways it is kind of an addiction stock. down to you, sue. some big news on foreclosures coming in today. diana olick is live in washington with the details. >> investor demand for foreclosures is still running hot and now the american taxpayer is the big winner. that is the fhfa, which is the conservator of fanny may and freddie mac announced the first winning bidder in a pilot contract to selling fanny mie m in investors. a silicon investment company got 699 florida properties on fannie's books for $78.1 billion. great news is that this is nearly 96% of the current value of the homes. so no big bulk discount. on average, pacifica paid

$111,000 for each property if you do the math. interesting though, the program was also supposed to sell hundred atlanta properties but the fhfa said no deal on that. sources tell me the bids that were received on the atlanta pool did not present fannie mae with an economically viable transaction which means they didn't get the prices they want. atlanta's home prices are still plummeting. atlanta could be in a future deal or they could be sold directly from fannie mae if prices continue to recover. >> diana, thank you. just because summer is over, that doesn't mean the great american drought is over with. we have some exclusive details on just how harmful it is going to be to our economy. and general motors ai' big problem. great sales. phil lebeau is live at chicago. >> talking about the chevy volt. headlines today that the volt is aen monoloser.

how much per vehicle? that might surprise you. and why is gm saying, listen, this map is way off base. we'll have numbers when "power lunch" returns. uh, i'm in a timeout because apparently riding the dog like it's a small horse is frowned upon in this establishment! luckily though, ya know, i conceal this bad boy underneath my blanket just so i can get on e-trade. check my investment portfolio, research stocks... wait, why are you taking...

oh, i see...solitary. just a man and his thoughts. and a smartphone... with an e-trade app. ♪ nobody knows... [ male announcer ] e-trade. investing unleashed.

welcome back to "power lunch." looking at packaging stocks. they actually had a pretty good rally late last week on the heels of upgrades from goldman

sachs. today deutsche bank putting a little bit of rain on that parade, downgrading the whole sector basically saying assumed price hikes should not be assumed. they're selling off sharply. rock tenn, still up 3.33% on the day. very tense week for the bond market. time to check in with rick santelli at the cme. we got a 1.67 handle on the ten-year. how's it looking? >> reporter: i find it fascinating. 1.67. about 30 basis points above our historic low yield close on july 24th, which is around 1.38, 1.39. 1.6 1.67 happens to be unchanged so not a lot of action. but the bastion of potential trading profits seems to lie in the yield curve. whether it is bill gross' tweets or the fact that there could be

an unlimited order of quantitative easing. ten-minus-2 is obviously steepened. in spain, really get a large example -- it's gone from 100 basis points in july to about close to 200 basis points steeper today. it is about long maturities in the reflation trade and it is obviously reflected in the weakness against the euro which today is a little bit weaker but still hovering close to the highest level since the third week in may against the dollar. the drenching that parts of the united states got last week, including tornadoes out in queens, not really helping parched farmland. there are no farms in queens, are there? this afternoon we're going to get exclusive details on the economic impact from our senior economics reporter steve leisman. he's here live. >> in about three minutes we're going to get an e-mail from the guy that runs the farm in queens. it is a big impact from what's a

small sector of the economy and it could even have an impact on the presidential election. in a detailed study of the summer's drought which scored soybeans, corn and other crops across the nation, macro economic advisors out of st. louis estimate it could shave as much as a half point off gross domestic product this year. that's a big hit to a $13 trillion economy from a total farm sector that accounts for just -- wait for it now -- 1% of the nation's output. ben herzon is the economist who did the study. pe explai he explains the drought's outside impact. >> even though it only accounts for 1% of the economy, big changes in farm output can show up in the headline gdp numbers as we're talking about something like a 45% decline at an annual rate of farm output in the third and fourth quarters. >> the trouble for the u.s. economy is it doesn't have very much growth to give up. we have averaged just 1.85%

growth this year and expectations are roughly the same for the rest of the year, even a bit smaller. a half point then is a meaningful hit. good news is herzon doesn't see much impact on employment, saying the workers have to be employed to run the harvesters and combines for things that have grown. as more cows are sent to slaughter because of rising feed costs, prizing would surge next year on lack of supply. jpmorgan pointed this out in a recent study. food inflation has been trending down but still running ahead of the increase in overall prices. the biggest parts of food prices are labor, packaging and transportation. herzon says the u.s. economy will get back losses from this year assuming normal rainfall next year. however the next gdp report which will show the first effects of the drought comes october 26th. that's 11 days before the election. so let's say president obama was going to get his final gdp report, it was going to be 1.75.

it now 1.5. a quarter-pointless. it is a little unclear how it is going to be accounted for. may not be until next year that we understand what the full effects of the drought were this year. gm firing back over reports about costs to make the controversial chevy volt. shares of gm last trade now down .66% at $23.21. stock is up almost 15% though this year. phil lebeau is back live with us from chicago. what are they disputing? >> it is the math. the methodology behind the math. what we're talking about is a report that came out this morning saying, listen, general motors is losing massive amounts of money producing the chevy volt. this is the extend range electric vehicle that's gotten so much attention from the company. the questions revolve around how much money they are losing. according to the report, gm loses at least $49,000 per volt. how do they get to that math? you look at the r & d that's

gone into developing the volt, $1.2 billion. that's the best estimate in the industry. total sales of the volt right now, 21,500. that means they've lost per volt at least $55,000. gm is saying this report from reuters, the estimate of the current loss per unit for each volt is grossly wrong. in part, because they allocated product development costs across the unit sold instead across the lifetime volume of the program which is how businesses operate and in fact most people that you talk with in the auto industry, say this really is a cheap shot when you look at how many volts they might sell over the lifetime of the vehicle. probably is more about pricing. they sell it for just under $40,000. that includes a $7,500 government rebate. gm is pushing volt leases, however, for as low as $199 a month. why? because selling the volt at almost 40k is a tough sale right now especially when people are looking at the prius or other alternative fuel vehicles,

alternative powered fuel vehicles at far lower price. take a look at shares of general motors. real question is whether or not the volt will be a money loser, three, four, five years from now when we have a better sense of how many volts are sold. we're really only early stages of the volt sales. while they have not taken off, people at general motors are saying this is too soon to say that it is a complete money loser. >> very interesting story. i know one you'll be following because it isn't over yet. a rap and hip-hop icon has a message for occupy wall street. he says buzz off. that's coming up. plus, france's wealthiest man says good-bye. is it because taxes are too high? that's the poll question today. vote at finance.yahoo.com. ty is analyzeding the animal lirss. on deck -- wells fargo, amgen and kraft foods. some big monday movers --

hewlett-packard is up 2%. back in a moment. [ male announcer ] what if you had thermal night-vision goggles, like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. is i can follow all my sports... catch the latest breaking news... keep in touch with friends... follow the financial headlines... find a great restaurant... and with siriusxm i can get weather forecasts... all from here. in my mercedes-benz. [ male announcer ] introducing mbrace2.

the most comprehensive cloud-based telematics system on the road. it's your world, from your car. mercedes-benz. the best or nothing. now we need a little bit more... s at humana, we believe there's never been a better time to share your passions... because the results... are you having fun doing this? yeah. that's a very nice cake! [ male announcer ] well, you can't beat them. [ giggles ] ohh! you got something huh? whoa... [ male announcer ] humana understands the value of spending time together that's a lot of work getting that one in! let's go see the birdies. [ male announcer ] one on one, sharing what you know. let's do it grandpa. that's why humana agents will sit down with you, to listen and understand what's important to you. it's how we help you choose the right humana medicare plan for you. because when your medicare is taken care of, you can spend more time sharing your passions. wow. [ giggles ] [ male announcer ] with the people who matter most.

i love you grandpa! i love you grandma! now you're a real fisherman. [ male announcer ] humana. now you're a real fisherman. why they have a raise your rate cd. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally. welcome back to "power lunch." brian schactman here at the markets desk. gtat, gt advanced technology. used to be gt solar. piper jaffray came out with some positive comments. basically some of their solar technology could be transferred into the smartphone space

reducing the cost of smartphone covers and the analyst says this could be a big time positive for the stock in 2013. stock is up 12.5%. time to analyze this. let's jump right in here. goldman sachs removing wells fargo from its conviction buy list replacing it with regions financial. it says, among other things, a self-help story for rf management to enhance returns by repositioning its branch network or divesting parts of its franchise by rating on wells and rf but wells off the commission list. >> i like wells off the conviction list. it's run too far so it doesn't have as much to run. this is interesting. i agree with it. i read their segment three times. it says basically in layman's terms they want to rearrange their branches and sell some stuff. that's kind of ambiguous to me but i like the fact that it looks like it's broken out of a trend. who am i to argue with selling some stuff? >> up 90% on the year. wouldn't you wish they said that

about a year ago? ubs upgrading amgen from buy to neutral increasing the price target to 96 m$96. "take a more constructive outlook ahead at ph2 data." what do you say here? >> i was long a week and a half ago hoping this would happen. stock didn't do very well. i like it. amg45 is a lipid lowering drug. if you believe that the current trends in health and nutrition in this country will continue, those things are gold mines. the profit potential is amazing. as long as larry the cable guy keeps having that commercial where he says you can eat whatever you want and take a pill to make you feel better, my guess is we'll need cholesterol lowering drugs. >> kraft foods, going the other way from the lipids to the v velve. eta. >> i like the methodology.

it broke 5%. these boring stocks have these huge positions. any down move is exacerbated by positioning. this is probably a good place to pick up kraft. >> next half-hour, one of the few people in the world who will get to decide whether there could be a war with iran over its nuclear program. that person is with us live. his comments could have a major impact on the oil markets and beyond. you don't want to miss it. gold also really skyrocketing in the past several months and we will show you what's driving the metals market as they saunter to the close in 1:35. we'll be right back. with the fidelity stock screener, you can try strategies from independent experts and see what criteria they use. such as a 5% yield on dividend-paying stocks. then you can customize the strategies and narrow down to exactly those stocks you want to follow. i'm mark allen of fidelity investments.

the expert strategies feature is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

welcome back to power lunch. brian schactman here. take an interesting look at wellpoint. it's dropped sharply since it was positive for the first hour of trading. cfo saying no exact timeline on a new ceo and investments could hurt profits in 2013. the whole basket of managed care all to the downside. back to you, sue. let's take a look at the gold market. it had a stellar week last week.

prices are closing right now. sharon epperson is tracking the action for us down at the nymex. >> hi, sue. gold is still near a six-month high. we've seen a little bit of profit taking today but gold is still above the $1730 level. the focus is going to be on wednesday and thursday. germany's constitutional court, the decision there on the eurozone bailout plan on the esm. that's a key factor for the momentum of gold and the euro as well. the fomc decision on thursday. that's what traders are waiting for. we've seen a lot of etf action. we're looking at holdings in gold etfs near highs we've ever seen as of last week. also looking at significant action in the copper market. we had that spending deal, china had announced last week, $150 billion. that's helping copper and palladium. the biggest gainer on the chinese car sales data today. the trading action here, bob pisani is right next to me on the floor of the nyse.

think it is a pretty positive day given the big move that we had last week. >> that's exactly right. you'd think after the big gains on thursday and friday they'd sell them at the open and see how far you can press them. they tried. it didn't really go anywhere. within 20 minutes the market kind of turned around here. i agree, consolidation, moving sideways after the big move up on thursday, look at the s&p 500. not bad. sitting at four-year highs. to hold those gains and not sell off or take profits is a good sign. major sectors, transports up today. they had lagged recently. the russell 2000 has put together a great series of days in the last five or six days, generally outperforming the big cap. the s&p lagging a little. small caps continuing to play a little bit of catch-up in the last few days. the etf action in the metals. if you look at the xme, good way to get exposure to metals and

mining stocks at all once. very heavy volume today. big up day. russell 2000 value index is largely financial and energy stocks. this is the 1000. having a nice little move to the up side on a day generally we were flat. >> and a week with a lot of potential pitfalls still ahead of it. >> going after financials, metals, builders, insurers. >> bob, good to see you. let's go to the nasdaq. >> big announcements this weekend. not just talking about the fed. september 12th is when we expect the iphone 5 to be unveiled. will it meet analysts expectation? will it wow not only investors but customers? that's the big question on the street. amazon hit an all-time high today slightly repairing gains today after announcing it will allow customers out to opt out of advertisements of new kindle fire devices. that's a stock to watch. intel moving lower after cutting its q3 outlook on friday.

stock right down better than 3%. as investors here get ready for possibly more fed action this week, italy's prime minister says his country has no plans to access the ecb bond buying program. mario monty speaking to cnbc's maria bartiromo about it. >> the issue is simply if the eurozone market comes down because of the announcement that this new instrument is available, probably the interest rate on italian government securities will go down gently and nicely, and we will not need to use the instrument. >> maria will have more of her ig interview with mr. monti on the closing bell this afternoon. spo

spoke. let's see how investors are playing the european markets right now. $1.7 billion under management. take it one step further on mr. monti and the bond buying program. you make the case that europe is a good place to put some money now. >> didn't we learn under qe1 what happens when the fed first moves accommodative? you had a big rally. 61% rally from the low in '08 -- >> when the fed started buying bonds. >> now we're seeing that for the first time in europe. think we're seeing the history. >> so qe1 in europe is what you are expecting to see, and you are arguing that -- >> exactly. >> -- the stock price moves could be commensurate. >> the point is at the end of '08 when we first introduced qe1, the spread between the safe stocks, staples in the financials and cyclicals was very wise here in the united

states. big moves were in those cyclicals. that's exactly what's going on in europe today. everyone's hiding in all the safe stocks. >> if i buy your argument -- hiding in the safe stocks. the heinekens, the nestle's -- >> staples and so on. >> are you arguing for max profit you should get unsafe? >> exactly. risk is on. you want to move more aggressively in europe and out of those safe stocks -- >> let's say i don't have the nerve to put all of my money into a deutsche bank or whatever. how do i do it? >> well, again, going back to qe1, the market was up 60%. financials were up 80%. materials were up 90%. i think you can simply buy the sectors, buy an etf or whatever on the european financials. that's going to be a big play. >> an ishares -- >> that's right. you take out the single stock risk but you're trying to play a very depressed group. financials in europe are trading within the boss tomorrbottom.

>> let's talk about the prospect for easing here in the united states. you point out that qe1, we had a big pop. qe2, we had a less big pop. if there is more easing on the part of the fed here, is it likely to have a really marginal impact on equities. >> marginal. you've had a 10% rally since ben bernanke first indicated it. could we have another up to 10%? i think that's max. so i don't see as big a move here. and also, that spread between the risky stocks and the lower risk is not nearly as why here. so for our strategies, i don't think you have to move from a growth overvalue. but in europe, it is definitely going to be a value trade. >> you had an interesting aside as we were watching mr. monti there. he said -- need to access this lifeline. why is that the case? >> because rates have already dropped by over 100 base points

in italy. so the fact that the ecb is going to back up bonds is -- that's giving confidence and that's what's key. lower interest rates. when rates drop, that's whether it really kicks in for equities. >> let's talk a little bit. you pointed out also that look at spanish bond yields, down 1 1/2 points in just the past week or so. this is an indication -- >> confidence. >> -- the tonic has started to go to work, even ahead of it being really administered. >> exactly. europe is only up about 10% as well since july 26th. there could be a lot more up side. >> how about the u.s. market? >> i do think that we've had a very good move here. qe3 could help further. but i think that the spread is pretty wide and probably europe will be a better place to invest going forward than in the u.s., which doesn't necessarily mean the u.s. is going down. we're still -- you know that saying, don't fight the fed.

right? that's what the bears really forgot. the bears forgot that when fed policy is accommodative, you want to be long equities. >> we look at three that you like there, including apple. was it bf -- cf industries -- >> cf industries. so i think overall you want to have growth bias. but cf is a fertilizer name. it did very well under qe1, qe2. i think that's a great hedge against qe3. >> andrew, thank you very much. come back soon. tomorrow on "power lunch," michael lewis, the writer, is going to join us for the entire hour to talk about his groundbreaking profile of president obama in the new "vanity fair." he will tell it as only michael can. we'll get his viewpoints on a variety of other issues, topics, economic and beyond. plus, what he thinks of europe, and its debt crisis over there. we'll see whether he agrees with you, andre. michael lewis tomorrow on "power lunch." >> one of our favorite guests, to say the least, ty. will there be a war in the

middle east with iran? one of the few people in the world who gets to decide is going to join us next on "power lunch." you don't want to miss it. bob... oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign.

looks good. [ male announcer ] fedex office. now save 50% on banners. to provide a better benefits package... oahhh! [ male announcer ] it made a big splash with the employees. [ duck yelling ] [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. ♪ ha ha! 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. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 and with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime... tdd#: 1-800-345-2550 until i choose to focus on something else. tdd#: 1-800-345-2550 trade at charles schwab for $8.95 a trade. tdd#: 1-800-345-2550 open an account and trade up to tdd#: 1-800-345-2550 6 months commission-free online equity trading tdd#: 1-800-345-2550 with a $50,000 deposit. tdd#: 1-800-345-2550 call 1-866-294-5373.

take a look at mcdonald's. mcd. it's had a pretty rough year but having a decent day today. august numbers look better than july. people trade on the comps so that's positive news for the stock. back to you. >> indeed it is, brian. thank you very much. the u.n. is trying to ratchet up the pressure on iran. it wants greater access for investigators as they look into allegations that iran is trying to develop a nuclear program. the lead u.n. investigator says he's frustrated and is sick of moving in circles. the finance minister of israel, and also a member of israel's cabinet, and if israel uses military force to stop iran's nuclear program, he will have a

vote on whether or not to make that move. that and how he is trying to keep israel's economy afloat despite those threats of war and the war of words, amid a proxy war. first on cnbc, thank you for joining us. if it does come to a vote of the security cabinet, would you vote to attack iran and how close do you think we are to that type of a vote? >> let me keep it to myself, but with regard iran, i can say only one thing -- iranians are getting closer and closer to producing nuclear weapons. this is one of the most serious threats, not just to israel and the middle east, but to america and to the rest of the democratic world. and i think that this is high time to put a very clear limit, a very clear deadline to the iranians that -- the sanctions are good. they are about to clip at the iranian economy but they are not so sufficient. it is high time we need to rid

it but also iranians need to hear a very clear deadline with a very clear timetable, either you change your behavior dramatically, or brute force might be used against you. i think time is running out now. >> okay. an israeli official -- we don't know who that is at this point -- is being quoted on the dow jones news wire as saying that statements are useless without a red line on iran. give me an example of what you would consider to be a red line for iran. >> the prime minister of israel, benjamin netanyahu, put it very clear -- that the deadline should include any further progress toward fissle material toward a nuclear weapon by iran. i want to add that it is very important to put a very clear timetable. they are cheating the world for years after years.

they are making one progress after the other. they are trying to gain nuclear weapons. it will be the first time it happened that the religious state, a religious regime, fanatic religious regime, will have nuclear weapons with long-range ballistic missiles and high time to put an end to this, to the program. and this can be done, if you want to avoid brute force, the only chance to avoid brute force is if the democratic free world and leadership of the united states will put very soon a very clear ultimatum with a very clear timetable to the iranian regime. >> what timetable would you and would israel be satisfied with? what do you think is an appropriate timetable? >> timetable means that in a few months if you don't change your behavior, upside down, you don't expose yourself to inspections

on day to day basis, brute force might be used. this is the only thing that might convince the iranians to change their attitude to their position and i think this is very important to the entire world. >> let me turn you to syria. there is also a report on the news wires right now that according to a russian minister, russia's president might be willing to step aside if an election by the people voted someone else in. now we know iran's ties to syria. we know iraq's ties to syria, and we know russia's ties to syria. do you believe that report, that if indeed an election was held and the president was voted out, that he would indeed go? or not? >> it sounds very tricky.

it sounds quite inconceivable to conduct a truly democratic-free elections in syria. but you know, as israel is, we are focusing on the israeli economy, on israeli education, on promoting and developing the israeli economy into the future. and this is the main reasons that we are here. we are surviving in this difficult surrounding of the middle east for 64 years now and we still are promoting our people, promoting our economy, and this is the reason for my visit here. >> yes. i know you are in town this week because of the big conference. israel has always been a country of entrepreneurship, and indeed you have some very successful publicly traded companies that are in israel. but given the fact that you basically are on the brink of war with iran, how are you attracting new companies, new capital, new entrepreneurs to

israel and how hard is it? >> first, let me tell you that in the last three years since the beginning of 2010, investment, both domestic but also many global investments in the economy in israel grew 40% since the beginning of 2010. i think that this is very interesting. this help us to overcome the global crisis and to reduce unemployment in israel to 6.5% which is below the pre-crisis figures. and we are here in order to tell investors, potential investors, that israel has something to offer and what israel have to offer is a very special human capital with a very special capacity or tendency to creative thinking, to innovate, to think out of the box.

many international companies have already established centers 2 in israel. more than 100 international companies have established some of the significant center in israeli and most of them are very satisfied from their investments and lately, we took many measures, including some incentives from the government in order to continue to develop the economy, to continue to attract investments in technology, in high-tech, in biotechnology -- >> minister, i hate to interrupt you but we have to run. best of luck with the conference and thank you for spending time with us. >> you are most welcome. sue, the young and the deluded. most american teens, it seems, think their parents will leave them enough money to retire on. really. we'll explain the disconnect after this. [ male announcer ] for the saver, and a big first step.

for the spender who needs a little help saving. for adding "& sons." for the dreamer, planning an early escape. for the mother of the bride.

for whoever you are, for whatever you're trying to achieve, pnc has technology, guidance, and over 150 years of experience to help you get there. ♪

john carney, robert frank, rapper and business mogul jay-z dissing occupy wall street

saying he didn't support it because he didn't understand what they stood for. you need to declare yourselves clearly because when you say 1%, that's not true. >> another reason why we shouldn't listen to celebrities when it comes to politics. here's a guy who produced t-shirts saying occupy all streets. he's already involved in a big scandal at the time around occupy wall street. he supported it, now he's against it. another reason again not to listen to these guys when it comes to politics. >> i say it takes a lot of koun courage. we have not seen a celebrity out there standing up against occupy wall street. i think he made a good point -- you can't juxtapose the 1% or people just because they made a lot of money. he's an entrepreneur and he's clearly in the 1%. you guys should not be protesting me because i'm the kind of person that makes america great. >> but it is safe to do that. occupy wall street is dead. maybe it will come back but the fact that they didn't have a clear message has hurt them. i think it is safe to go back in the water and take that on.

>> another -- the entitled 1%. "usa today" reporting nearly 40% of generation z 13 to 22 expect to get an inheritance and they aren't saving for retirement. >> what's happening right now, they have very little opportunities. they are burdened with debt and so their only hope is that somehow some great uncle who they've never heard of will come along and give them a bunch of inheritance. >> wishful thinking or clueless thinking? >> very wishful thinking. half of all millionaires don't plan to give their money to their kids. they will give the money to charity but a lot of their kids will become charity cases if they don't get jobs. >> it is a grim testament to the shape of our country we have young people sitting around waiting for us to die. >> is it the tax on the super

rich in france? >> if he remains a tax resident of france, which he said he will be, i think it is about the exit tax. no one's paid attention to the new tax that they just passed in france. if you leave the country, more than one-third of your total assets get taxed. he's setting himself up to do that eventually. >> tho this shows us taxes will change where people live. not necessarily where they live but where they're legally domiciled. if you change people's tax rates, you raise them too high, people will find a way to get out from under them even if it isn't directly connected to the 75%. >> if you tax them, they will leave. >> full report on belgian tax law. we're sitting on a bunch of shale gas.

there's natural gas under my town. it's a game changer. ♪ it means cleaner, cheaper american-made energy. but we've got to be careful how we get it. design the wells to be safe. thousands of jobs. use the most advanced technology to protect our water. billions in the economy. at chevron, if we can't do it right, we won't do it at all. we've got to think long term. we've got to think long term. ♪ central bank intervention, the big story. >> not just the feds, bank of chin