to be right. >> he didn't say bang, which is good. >> power lunch begins right now. >> hi, everybody. tyler is out today. larry kudlow is in the house. we have a lot on our agenda. who knew what? and when did they know it? after the irs. >> we have the latest. that's coming up. and it's still the economy, stupid. really. china, of course, and the fed all playing tug of war with your

portfolio. here is president obama just a few moments ago. >> i first learned about it from the same news reports that i think most people learned about this. irs and were intentionally targeting conservative groups then that's outrageous.

>> as you know, larry already has a lot to say. >> all right. welcome. we're going to start with irs gate. what do you think about this. >> now a tea party and patriots. any applications from these 501 c-4s. associated with israel groups. you were put under the mike scope. that's a new revelation.

a second memo came out in july of 2011. >> it certainly doesn't make it right at any level. >> it's stupid no matter where it started. see which people are really legitimate. if you apply for that status you can do some political work. too late for them to be saying outrageous. of course it is.

>> how about the treasury department? where is the treasury department? >> they should have said it friday. >> overseaing obama care. that is huge. waivers and regulations. the entire tea party movement was basically a revote against obama care. that means they were going after obama care right then and there. and that conflict has got to be resolved. >> this is connected to obama care. >> do you agree that he came out too late? >> i don't know that it matters when he came out.

>> what are your thoughts? >> i think neil hit the nail on the head. it's really about the messaging. and hit with a flood of these applications. you can conceive that civil servants decided that the way to whittle down the pile was to come up with parameters. and what we know is that their higher ups said to stop it. it will be the revelations of that cover up. >> it's steadily a mess.

>> don't you think that the time line will be absolutely crucial? there were official memos and circulars put out. they have got to explain that. who wrote those memos. who saw them. why did the commissioner say that none of that was true when memos had been written and he should have known about that. people have got to dig in to how this time line played out and who ran this operation. >> i think it's a possibility. i think it's unlikely. you have to wonder if this vote

comes from shareholders, they are basically saying we don't trust you. how does he hear that and say okay, i'm going to stick around and have somebody looking over my shoulders. he will have to think about it. he has to stay. >> what do you think? >> i know jamie dimon rather well and i consider myself an admirer. my suspicious is purely speculation. if they vote to split up chairman and ceo, he will leave.

he has got plenty of life with them. i may just feel compelled to -- he might go ahead. >> if you're jamie dimon, don't you want the possibility heading out there? don't you want shareholders thinking about the possibility? seems to be exactly the kind of uncertainty you want to introduce.

>> that is a real problem for this bank. >> the other thing is who -- >> the election hearing basically saying that if you do this, i'm going to leave. >> i just think that another bank that could use a really first rate chairman and ceo that would put that bank on better footing. that bank has gone under about four times. >> you're with the american banker.

you are supposed to name those names. >> one of them got a new ceo and they're bored and exerted themselves like chairman are supposed to do. >> i don't know if i would want to be the banker that followed them, either. those are big shoes to fill. a wall street journal report that the fed is going to start pulling back. >> i don't see the fed pulling out. they would take it back if it's doing better. if that's a new strategy, it has been in place since the

statement. not five and $10 billion. the more likely way to go, sue. your attitude to the statement is hawkish or tof it should be taylored. >> it's a saw tooth economy. retail sales came in better than expectations. you have lousy factory orders. >> these stories don't happen by

accident in the wall street journal. we don't think it's bad enough. >> i think you're wrong. >> you do? >> i don't think there is a message in this story. i think look, if the market was too far one way. maybe this is a redirect but this should not be seen as being some new policy and that the strategy and reaction are the same. the question that everyone should be asking is can they do that? or is something surprising and outside the expected going to force their hand?

>> the last statement with the addition of that, we will give you the impression that they are somewhat neutral. they are talking a lot more about tapering and not how they are going to increase. >> we are back to the game plan six weeks ago. >> steve, i just want to say, i don't think i have said this to you directly. the bernanke policy i'm saying

that bernanke has done it right right now. >> this just adds to it. >> all the time. look at the numbers. >> all right. thank you so much. a pleasure. really appreciate it. we're going to take a quick break. as we move ahead we're going to analyze the analyst. did wall street make the right calls? we will talk about that. and michael bloomburg's first chance to react to the breach. kudlow report is back 7:00 p.m.

eastern time.

>> the special committee of dell's board has asked carl icon about details about who would run the company. right now dell has traded up.

shares of one moving up higher as well. could aid in its defense of a $6.7 billion takeover bid. >> let's analyze some of the analysts. cnbc contributor is at the cme and barclays is upgrading from overweight to equal rate. so far this year the shares have climbed more than 25%.

>> aig was the stock that we love to hate. the ceo said himself they will be very prudent moving forward. >> all right. thank you very much. in the meantime, ubs upgrading from buy to neutral. >> we like this here and one thing i really focused on is getting new folks in the door.

i think they have a shot and we will see if david can take down goliath. >> the stock right now is up 2 and 2/3%. what do you think? are they right? >> well, we have seen a big move in this space. >> 4 million prescriptions. we're going to see this upticks. i think you can.

>> all right. it's up a full percent on today's trading session. good to see you again. have a good rest of the week. >> still ahead here, a story about our competitor, bloomberg, that has many in washington looking over their shoulders. you never know who is watching when you log on. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] [ telephone ringing ] faso you want to save on autoofm insurance?.just a room. drive a hybrid. get good grades. lose the bling. go paperless. combine policies. make automatic payments. and of course, talk to farmers. hi

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>> gold >> gold prices are tracking now. >> good afternoon. modestly lower gold prices ahead of the close, down about $3 at the moment. a couple of reasons for the selling pressure. you have stronger dollar and strong retail sales figures and the exchange traded for products are liquidating more gold. i do want to highlight copper's move as well. that would stimulate demand for the base metals.

>> mary tompson joins me from the floor. >> we had the lower open on the floor. take a look at the leaders. j.c. penney just had a very nice run recently. well or maybe not so well. we are seeing strength in health care financials. the dollar a factor within the

materials sector in part because it makes for weaker commodities and traders saying they are really watching for the 105, 110 level. carl icon who wants him to step down or wants changes at the company and the board. he is the latest chairman to be pushed out in large part because of investor activism. >> back to you. hi, seema. >> despite the moves that we're seeing in the dough, the nasdaq actually posting a gain.

google did hit the new all time high. blackberry shares on the move. that's blackberry live. the street is expecting some type of update on how the q10 and z10 phones are selling thus far. this is its mobile device management platform. so i will be reporting live at the blackberry live event. be sure to get you all of the updates. >> look forward to it. thank you. >> we're watching yields of many different countries. if you look at our yield you can see its elevated a couple of basis points in a sell off that was started by a rumor that

proved to be accurate. you are breaking the long term subsidy and it isn't easy. >> the 80 basis points. this is a market to watch. markets move substantially on thursday. the last chart is the most fascinating going all the way back to october of '08 the last time you it doesn't matter. it certainly seems as though the doll dollar.

>> we're going to talk about my love for japan. you are used to hearing about china. now another asian nation is under the mike scope. that's next. it's monday. a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure,

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>> the news bloomberg caught in an embarrassing situation. more now with kay la in just a second. but first about the controversy on a different topic. what did he have to say? >> well, the mayor was here talking about the war infrastructure problem. at the end of that news conference, i asked him for his reaction to the revelations here is what he had to say. >> do you think it was a violation of users trust to have access to proprietary information?

>> i don't know what you're talking about. you have to talk to the company. i can't discuss this. >> it was under your watch that it began. >> thank you very much for your generous question. thank you all. >> the mayor saying he is not involved in day to day operations. as matthew, the editor in chief, in an op ed. >> journalists accessing confidential client information for decades. just for wall street. it first sold 20 of these

machines which are loaded with pricing for stocks and bonds to merrill lynch. bloomberg bought back a third of that. to get users to spend more time on the machine they built a news wire. the following year, magazine and radio stations were launched, although extensions of that terminal. they became addictive for traders. bloom berg stepping down to become new york city's mayor. after buying out merrill lynch for 4.5 billion. a high powered trading platform.

all along, news has come secondary to the product. the machines filled with economic data. never properly erected, allowing access to proprior tear information that's a practice that editor in chief called almost as old as bloomberg news. trade book registered with the sec. central bankers and officials monitor their own terminals so a prifcy breach could have far reaching consequences. >> what do traders have to say

about the breach? both are terminals. you know, i will go to you first. does it affect the way you use your terminal? >> i would have to say that the story, the timing is atrocious when you think of the biggest issue is trust. it's another breach of frus. i'm not sure that i ever had a complete expectation of privacy. yes it comes as a little bit of a surprise, too. i'm northeastly on my own. >> jeff? >> well, sue, we are a group.

this really underscores how we communicate with our clients. this really makes people rethink the way they communicate with their clients. >> i was under the impression it was never about our communication. it was just about what we were clicking on. >> they had access to unique users. that tells you something right there. that's a hint of who is doing what to whom. they had access they may have had access to the federal reserve and the treasury. i didn't hear matt issue a real

apology. i heard a non-apology apology. i think bloomberg has a lot more explaining to do. that didn't answer a bloody thing. >> there is no doubt. there're was or wasn't something there. the question is are they breaking laws? >> we're on the same wavelength. >> everybody wants an edge. okay? bloomberg news reporters are not supposed to get an edge relative to the users.

now question, you are market professionals. you use bloomberg. are you satisfied right now this morning that bloomberg has in fact changed its policy to respect to the access of that information? >> no. not completely satisfied. if we do want more, we haven't gotten that. >> i want to know more about what they divulge. jp morgan is a great example and i want to know more. >> he strikes me as the news equivalent of front running. >> okay. if i understand this, they looked at unique user ids.

no small things. that could be the federal reserve. that could be the federal government. that could be the trading floor. that's got to be stopped. they should not have access to unique user ids. until he does, you guys are not going to be safe. you are not going to be safe. >> i agree with you 100%. i'm just saying that i wasn't particularly surprised about this. >> how much different is it than actual twitter hack? >> all right, men, thank you very much. >> the twitter hack does not get into the kinds of trading details and information details. bloomberg -- >> it's different. >> it's similar but doesn't go to the heart of the issue.

my friend has not ruled that out. he has not slammed that door. >> a story we will continue to follow, obviously. today on the big data download does the scandal highlight the need that double as news organization? you can see it today. >> he is with us with his wisdom. >> waiting patiently. >> i thought it was interesting that bloomberg restored everybody's youth. people all have an invisible friend again. >> the bond yield, i wonder whether or not we are pushing up against 2%.

in the dpas of all out easing, that sounds like they may be moving back. >> if the rise in yields if you're right and nose trends continue, is it based on a better economic growth? real growth, real yields might not be bullish for the stock markets in that case? >> i would buy that if it were occurring in one country at a time. we have to watch japan. if it goes back to following the easing pattern it's there.

the other thing i would suggest to you and the viewers if it's happening in two or three nations, it hints slightly resurge in fear of inflation. i have only seen one day of the japanese yields going up. >> speaking of yields, thank you, arthur. a new suspect may be popping up in asia. steve? >> thinking and seeing when it comes to the plunging currency in the land of the rising sun. next up on power lunch. i want to make things more secure. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting

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better or worse off if jamie dimon leaves? ee i'm sure they will be talking about that on street signs as well. >> and many, many more big stories. one of the questions we're also asking you're not going to believe where lax ranks in the world where many of the major air hubs in the united states rank. it's time for a nice vodka cocktail. you have got to stick around. guys, back to you. >> we will. thanks mandy. >> that looks like the chart. that's the dollar yen trade.

look at the run up and up and up. that may soon change to japan, land of the singeing currency. on the defensive regarding this huge move. >> you know, interviewed on london. it seems as though they are he would not endorse it beyond what the g-7 has said pubically. >> japan has growth issues for a long period of time. we have encouraged japan to address. growth is an important priority. >> i have to ask, are they within those bounds? >> i will refer back to the ground rules and the fact that we have made it clear.

>> the strategy seems to be to monitor impacks carefully. >> japanese officials hunting for higher wages. a negative impact. there won't be much political impact. the key to the u.s. policy will be that longer term, the u.s. economy will benefit from a turn around in japan. >> that's the thing. i think you hit the nail on the head.

this is about moving out. i don't see this as a collapse of the japanese yen. i also think i would say that japan could go to 125 or 150. i was around in the reagan years when the dollar bought 250 yen because the usa was growing and japan was not at that point in time. >> right. >> and both will benefit. and japan gets the benefit. that's what the treasury is

worried about. >> if you talk to japanese policymaker policymakers what they will say is the expansion of the japanese money supply and reduction of the yen, all that does is increase consumer demand. they are still getting over that tragic tsunami we should not worry. this is not zero sum. they are missing the boat. >> but remember what's going to happen is both are going pivot around the united states if it becomes a matter of not

increasing demand. >> last word. somebody's got to give the european central bank a push to reali reality. they are falling, not rising. they should be going for growth. >> all right. thank you guys. appreciate it. today we have another report circulating saying that deal is not happening.

short interest here. 32% down more than 14% right now. sue, back to you. >> that is an ugly chart. thank you very much. big story out of the crime and punishment file. another wall streeter going to jail. his story next. which would be fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on his portfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade. ♪

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>> >> a big legal win for monosan toe in a case closely watched by the biotech industry. he bought soybean grain typically used for animal feed but planted it instead. >> all right. former global portfolio manager his attorney is requesting that

he serve in a prison outside of new york city. i don't know it. >> i think that's a good thing. >> i will try. >> i really do. >> yum brands moving lower after reporting 29% drop in april sales in china due to a flu outbreak shares. >> well tonight in new york, wall street's biggest players fight poverty. the line up looks pretty good and amazing.

that's just a few of them. tickets are $250,000 per table. the gala typically calls in $60 million over a single night. so, who says wall street has no heart? the board and the organization pays all the administrativadmin >> we're coming right back.

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usaa. we know what it means to serve. >> are stocks cheap? a rule you have probably never heard of says they are. you will hear about it here. the bloomberg breach. the developments on the story that has rocked wall street. why america's lousy infrastructure is making los angeles look really bad today.