. . stuart: tropical storm isaac could hit florida during the convention. and they're ready for it. and president obama, many of the businesses are boarded up. stuart: it was funny and that was jay leno and the tonight show. and that particular talk show host, i get the impression that he's taking the kid gloves off when it comes to the president. the gas price story today. $4 gas in the big population states and $4 gas in five of the the big cities and the spike in

florida continues because of hurricane isaac and the national average for regular is now 3.73. let's bring it oil watcher andy lipow from houston. $4 gasoline, makes news, there are five big cities, okay, we've got that. can are we going to see $4 gasoline as a national average this year? >> i don't think so. i've been of that opinion pretty much all year long and we have got enough supply to make it through the labor day weekend of course, tropical storm isaac is a concern and might impact the oil production in the gulf of mexico. what we're seeing in the northeast and california a number of resigning problems and tight supplies, gasoline prices are the highest that we've ever seen for this time of year. >> okay, here is what seems to be happening, we go up sharply and then come down to another,

sort of a plateau, and then we go back up again and come down to a higher plateau and what i'm asking is, are we constantly creating a new former? used to be 3.20, is it going to be 3.70, 3.75. that the pattern. >> i believe the prices rising, if you look around the world. demand is increasing and an impact of supply. >> let me ask you about ethanol. congress went off on vacation, i guess you call recess is the correct word. they didn't change the ethanol mandate and going to turn our corn into burned fuel and is that having impact at all on gas prices or what i pay to get my car going? >> well, it is having an impact, but it's quite small, only about six cents a gallon since the beginning of may, which pales in comparison so crude oil prices

rising from below $80 to over $95. adding 35 to 40 cents a gallon to the price of gas. stuart: now, governor romney yesterday came out full swing with the comprehensive new energy program and basically saying get out there and drill, off shore, on shore, drill. we want all the oil we can get. if he were to be elected president and repeated that comprehensive energy program. do you think it would have any short-term impact on the price of oil? >> i don't think it would have any short-term impact, but on the longer term, a good thing because we'll improve our supply in the u.s., and create a lot of jobs along with it. >> to summarize, you do not think that we're going to have $4 as a national average for regular gasoline this year in this country, correct? >> that's right. >> 3.80 maybe? we're at 3.73? 3.80? >> i think that 3.80 is close to happening as we get into labor day. >> all right, andy lipow, always short and to the point and always appreciated, thank you

very much indeed. good luck. >> mitt romney has been criticized for his time at bain capital. up next, how he's touting his experience there and a reason why you should vote for it. plus, encouraging news eli lilly, and we'll check the stock and talk to dr. ceiling what it means for patients, he's coming up next. first, the national debt clock, rising close, ever closer to that 16 trillion dollar mark, just in time for the republican convention.

>> all right. 20 section to the opening bell. when i saw the headline, durable goods orders up looked like good news and maybe good for the economy. dig deeper, if you take transportation or orders of planes out of that number, turns out durable goods actually came down. if you look at strictly business spending on capital goods again,

outside defensive planes, down 3%. and that's how the market took it, not a wild positive, kind of a neutral story and basically the economy continues to fumble along at a very low point. in terms of low economic growth. all right, the bell is ringing, when it stops, you will see the stock trading and we're expecting a really flat opening today. maybe 5 points down, 5 points up. we were down over 100 yesterday. so a flat opening is expected. down 7 in the early going maybe take us to challenge 13,000, don't know. so far a flat market to report for you, i want to move on to the eli lilly story. check the share price of eli lilly. the new alzheimer's drug is showing what many people are calling positive signs and it's opened 5% higher, go. >> it's up 5%, it's at a new 52-week high right now. so, this is the news on eli lilly. and they have a new alzheimer's drug for people with mild forms

of the disease and it actually showed promising signs although it failed in two late stage trials, but alzheimer's is a disease that's affecting 5 million americans, so many families out there, this news is received as very positive. stuart: it is. and investors are taking this as a positive, as you said, lauren, the stock is up close to 6%. let's he bring in doctor -- can i segue away for a second. i want to show you video just getting it in. a shooting incident close to the empire state building and several people shot. i don't have an exact number for you. moments ago, we saw police taking away someone in handcuffs, i do not know whether that person is a suspect or not. and live pictures you're looking at right now, down very close to the area around the empire state building in manhattan, new york. and some people shot, don't know the seriousness. and we're going to keep our eye on this one for you. now, let's get back to this eli

lilly alzheimer's drug, let's get a professional medical opinion on that new drug. bringing in please, dr. marc siegel. doctor, may i just give you my understanding of this story so far? 'cause it's developing, very technical. it seems like there's a new class of drugs being tested, anti-amyloids, i think i've got that right. they may be able to block the formation of plaque in human brains that clogs up memory. may be able to arrest the progress of alzheimer's, have i got it right? >> almost. stuart: good. >> let me wheel it back for you a little. stuart: please. >> in alzheimer's disease there's something called beta amyloid you referred to, it gums up the works in the brain. a study in iceland recently showed that a population that didn't make that protein as much had seven times less chance of developing alzheimer's. i consider that study the holy grail because now instead of thinking that beta amyloid is

sitting there, we think it's the cause of alzheimer's, that's a big deal. along comes something called targeted therapy, stuart. and this one targets the amyloid. it's literally like send ago guided missile into the amyloid exploding it, and might imagine the earlier in the game you do that the bet are off you are. in mice it's had an extraordinary effect. now we're starting to study it in humans and eli lilly is saying in mild to moderate alzheimer's, i think as a preventive, before you even develop it, it's going to be enormous home run with 5 million people having alzheimer's and families, ab everybody worrying about it, with the technology to find alzheimer's before it occurs, if you use this drug earlier in the game it might be-- >> i want to recap, that's the big positive in my opinion as a total outsider. >> absolutely. stuart: before you show any symptoms of memory loss in alzheimer's.

>> way before then, if you start using this drug, there is a possibility that it pre empties the arrival of alzheimer's, it's preventive medicine done way in advance. that would make it a blockbuster. >> you better believe it. because i have to add to this one little bit of science, mri's have now progressed to the point that we can pick it up before it occurs clinically, before it gets you sick, about of you see memory loss we can start to pick it up on an mri. so, there you have it. it's coming down the pike, you know you're going to develop it in five years and hit with a preventive that target the amyloid and prevent the disease from developing, very exciting stuff. stuart: i'm going to make a prediction, people like myself, late middle age if you want to call me that, i forget names, i'm a little forgotful, i'm being serious now, i can see the day when i would come into your office, doctor, i'm beginning to forget a few names, how about that drug, please? >> how about mri. stuart: mri. from a business point of view,

pfizer and j&j are working on similar drugs, haven't had the same in clinical trials. lauren was referring to that. but other companies besides lilly. stuart: am i right the anti-amyloid treatment system. >> it's called ahmano clonal antibody and shoot in. stuart: doctor, very exciting news for our audience today. dr. marc siegel. thank you very much. >> thanks, stuart. stuart: facebook, let's get strictly back to the markets and the social networks, releasing a new app that makes it easier to use its be website on the iphone. so, lauren, any impact on the stock? >> no, things are trading flat today and considerably down from the price. and it's a huge challenge for facebook and trying to make it an opportunity for seeing the app, twice as fast if you use facebook on your mobile device. you can also like comments on

photos now, stuart, i know you're very excited and like other people's comments. stuart: lauren, i'm about as excited as investors, that stock is dead flat. you brought us the news and we like that. and president obama continues to attack mitt romney's role in bain capital. the president is the not only defending the role, but embracing it. here is what romney says, a broad message emerges from my bain capital days, a good idea is not enough for a business to succeed, it requires a talented team, a good business plan and capital to execute it. and today, the romney campaign's in commerce, michigan, challenging president obama's record on the economy. and the top union guy, richard trumka beating up on grass roots union people. ten immigration customs enforcement agencies and members

are suing the obama administration saying the amnesty policy makes them violate to uphold the law antrum ka says this about the lawsuit. these agents are working with some the anti-immigrant force ins the country and long showed division and destruction and these ten agents do have their own union behind them by the way. this is unusual to see trumka attacking another union. do you remember this? >> shovel ready was not as shovel ready as we expected. [laughter] >> that was president obama joking about the failure of the stimulus to create so-called shovel ready jobs. right next to him, ge's chief jeff immelt perhaps the president's biggest ally in the business world. or he was. is he still on the president's side? the full story about that one coming up new at 10. we do have more signs after slowdown in china, manufacturing hit a nine month low according to the latest survey from hsbc.

joining the company now is asia economist gordon chang. all right, gordon. for some time you've been predicting the coming collapse of china and use that word, collapse. >> is this it? >> we're getting very, very close to it, because the economy is at plus one, negative one and the hsbc purchasing managers ineconomy shows not only the direction of the economy, late spring surplus to start showing up. august looks like it will be worse. and i thought maybe a dead cat bounce the fourth quarter, but the cat just looks dead. stuart: can't they just spend more, a foreign reserve, 3 trillion dollars. can't they spend some of it? >> they're trying to spend, but don't have money, they're running out of money in china. and if they've got 2.3 trillion

dollars in foreign exchange reserves, but in a local currency crisis, foreign reserves don't help that much and remember that the central bank's foreign reserves are balanced almost by the recommis reflective of an external problem namely europe in recession, slowdown in the u.s. and almost everywhere in the world? >> europe triggered the problems last august and september and started showing up in the export belt in china, but the problems china had are structural. it was going to happen sooner or later, it might not have been europe, then it would have been something else and right now chinese leaders don't have the same tools they did in 2008 and 2009. when they did spend a lot of money. >> and i'm looking at a headline today, front page, new york times, china confronts mounting piles of unsolved goods. a drag on its economy, exports slow, but not factors, problem

masked in data. >> yes, definitely. stuart: that could be agreeing with you. >> the data clearly has been wrong for quite some time. they're talking 7.8% growth in the first half and it probably was closer to one. and we're probably now at contraction. stuart: you're not really talking about collapse, you're talking about a little contraction of the economy, and maybe a recession, and-- >> no, this is lockout. this is structural and chinese leaders don't have the tools to deal with it. we're talking about a decades long trend. the major thing that created virtually ininterrupted growth. those conditions no longer exist or disappearing fast and a political crisis at the same time and all sorts of problems showing up in china, converging and that's why it makes this economy so difficult for the leaders to deal with. >> all right, gordon chang, thanks very much indeed. appreciate you being with us today. an update to the story we brought you moments ago, we're now told that eight people were shot at the empire state building in manhattan and

according to the new york fire department, two are dead, including the, i believe, including the shooter. and that's according to the ap. eight shot, two dead including the shooter. happening now in manhattan. a bunch of seven early movers for you, design software maker, auto desk lowered the outlook and boy, the stock has taken a hit. and 18% down. and this is networks, better than expected and up 14 cents, okay, salesforce.com, and posted a loss and lowered its guidance and that thing is down just 2%. a closer look at lilly's alzheimer's drug, it does show some promise and that's a big company, up 4%. significant gain for a company like that, that have size. madison square gardens profits more than tripled, a new high of 43.48. chili's parent, brinker-- the chili's the restaurant

chain, brinker international, and hardly any movement to the share price. facebook shares under $20 despite that new and improved app for getting facebook on your iphone. we've got the dow down 12 points and a major ruling for poker and poker players, a federal judge says poker is not gambling, it's a game of skill. what does jeff ma think, won millions in vegas playing blackjack and here is what our judge said about the case. >> it's pro dominantly skill because things like bluffing, holding and folding, remember that song you've got to know when to hold em and know when to fold em, it's actually a skill. [ male announcer ] at scottrade, we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations, where our dedicated support teams help you know more

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connection to terrorism in this shooting, which occurred outside the empire state building in manhattan, new york. eight people were shot, two are dead, including the shooter, that's according to the ap. and a federal judge ruling this week that poker is not a game of chance. not gambling, it is a game of skill and therefore, not gambling under the law. and joining us now is jeff ma, the author of "the house advantage" and founder and ceo and an expert on gambling and games of chance with cards. all right, jeff. the judge says this is not a game of chance, it's a game of skill, under the law it's not gambling and you say? >> i mean, i would agree that it is -- the question isn't whether it's completely a game of skill or a completely a game of chance, the question is predominantly a game of skill or chance. there's a ton of skill involved. studies shown 75% of the time cards aren't shown and has to do

with bluffing and playing cards and don't matter what cards you're dealt, but there is a certainly a the lot of luck involved, also. stuart: i tell you, jeff, if wri to play poker, and do i not, it would be pure gack i have no skill in that direction whatsoever. the significance of the ruling is, it might open up the door to on-line poker. i think you would agree with that, this opens up the door, this is a possibility. it's not gambling, why can't you do it on-line? and this is the possibility here for on-line gambling, isn't it? >> yeah, it's another one of the pillars that needed to fall that helps on-line gambling, you know, businesses the opportunity for it. i mean, the person back in january had the ruling that, you know, that the federal wire act doesn't really apply to sports-- i'm sorry, doesn't apply to poker, only to events and now you have this saying that poker is a game of skill, so is it gambling?

these are two big things that fall on the sabre at least saying hey, we want to do this and take the chance on this, and two that don't apply to it. >> which state do you think might be first to jump in here with on-line gambling? >> we're got nevada, we've got delaware, illinois and california and i think all four of those are, you know, obviously, nevada, delaware, aggressive, but illinois and california, are states that need a lot of money that have shown they can be very aggressive in gambling and i think those are the ones that will fall. stuart: would you have any role in on-line poker playing or as an investor or any company that does this? >> no, i probably wouldn't. it's not what i want to do as a business. if you i wanted to get in that world i would move to nevada and work for the casinos in las vegas. for me that's not necessarily the business i want to be in. stuart: real fast. are you a professional gamblered today? >> of course, i'll always be a

professional gamblers, they wrote a book about me, and how i beat the casinos, and what i believe, the way that we gamble was not gambling, taking advantage of the system because the odds were always in our favor and there was a lot less luck involved than there is for the average poke are player. stuart: jeff ma, always a pleasure to have you, thanks again, appreciate it. 9:50 precisely. your morning gold report. 1669 this morning, okay we're down 3 bucks, but at 1669 per ounce. lance armstrong, disgraced and will cost him millions and millions of dollars. and it's a major financial story as well as sports. and in our next hour, another person comparing mitt romney to ronald reagan. would you agree that romney's choice of paul ryan is as courageous as this? >> mr. gorbachev, tear down this wall. . [cheers]

>> lance armstrong drops his fight defense doping charges and they stripped him of titles, including the seven tour de france wins, he says he's not admitting guilt, just tired of

fighting the accusations. and is he a liar a cheat or a fraud, what do you say. >> me, personally, i'm the not sure. officially he will be, i remember chris cotter and i got into this a couple of years ago and he said, listen even if he's for doping, and a yellow bracelet and he should get a pass and asterisk, that's wh we are, we love the guy and no, and we know that it's rampant particularly in that sport-- >> and passing harsh judgment. i mean, come on, this guy is using performance enhancing drugs it's obvious, many people in that sport do, let's see who is the best not just the person with the best doctor. >> ten people came forward and said they will be prepared to testify in court that he was cheating. charles: oh, yeah, everyone has turned against him. no doubt about that and you make the point, every year the guy

who wins, six months later strips the title. stuart: and he's lost the prize money, everything in prizes all the way back-- >> he's got to give back the money. stuart: yeah, he lost it. charles: 100 marketing. stuart: the endorsements in the future, i don't know about that. new the at ten, here is what we've got. fox business has learned that president obama's most well-known corporate ally has found him and he will vote for romney. we'll tell you who it is next. you see us, at the start of the day. on the company phone list that's a few names longer. you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy. lending more so companies and communities can expand, grow stronger and get back to work. everyday you see all of us serving you, around the country, around the corner. us bank.

stuart: a big loss for obama. fox business has learned jeffrey immelt will vote for mitt romney. a major ally of the last four years but now going to the other side. says the recovery began average income has gone down. is it really recovery? now we're off 129 points. in his friday morning. we have gerri willis, charles payne and

from the new york stock exchange we have a war in. >> eli lilly has the alzheimer's drug that is promising although it did fail stage iii trials. eli is the big winner today the. >> we will have more coming up to design software what is wrong with it? >> trying to convert to the cloud as a mobile aspect it is down 13%. the worst performer almost wiping out all gave us.

-- ganes. stuart: thank you. remember when jeffrey immelt were friends with shovel ready projects? >> show already was not as ready as we expected. [laughter] stuart: he was sitting next to the president. now charlie gasparino says he may vote for mitt romney? >> i am not surprised. business leaders, they have been begging the president, we have seen earnings reports that are a direct speech to the white house. the president does not get it. she makes a lot of money

from the president's policies. >> he was insulted. reading the jobs council president refuses to meet with him. he is feeling ignored. >> people felt they sold their soul in he ignored them anyway. >> it is a major loss of this allied. average income in america fell 4.8 % since the economic recovery began. that was bigger than the recession itself. >> this is shocking. we learned net worth has fallen dramatically. 28%.

it makes every bet be vulnerable to the inflation. people are hurting even more stuart: there is a political angle that the president made it worse. >> yesterday they said whose fault is it? 62% said congress 40% said banks and only 34 percent said obama and 8% of the middle-class civic they are giving the president of free ride. >> he is not taking responsibility for this economy. shocking. a part -- 8.2 percent unemployment, gas prices are

up, they do not blame the president. stuart: but in some states they said it is the basis. do believe them? >> i do. he used the bully pulpit it is not his fault. with the media it has worked >> it is class warfare. it is resonating with americans. stuart: don't get me started. it is bad news. >> what do we care about mitt romney? he paid 6 million and half the opinion don't pay any thing. how do have the gall about a percentage he makes when you pay o%?

stuart: the audience like it when you get wound up. [laughter] >> day you need coffee? [laughter] as you heard america's middle-class is shrinking. >> hello. i am sitting here. [laughter] that does not mean americans are getting poorer but percentage of wealthy rose 14 of at 20%. the author of how rich people think joining us from atlanta. this point* of view, what do

you make of that? >> we're not to the point* people understand they have to do something learn how to sell or produce and come and be on to producers. it is coming. stuart: do you believe that income has declined from the end of recession until now? it has gotten worse? it is accurate? >> i think so. people will wake up and realize they cannot retire on $93,000 net worth. that came out yesterday. they have to take responsibility for their future. it will happen. stuart: your book is about to going out on your own?

you cannot be in favor of the obama policies? >> i really am praying mitt romney wins. stuart: what will it take to get this back to the prosperity of america? >> i think we need to feel enough pain if i am 65 years old with 93,000 in the bank i cannot live on that. i have to take control and not rely on the government. i have to get up at 4:00 in the morning to take control. do not rely and government. stuart: is there a shift one america is about? are we more of the "entitlement nation"? >> 100 million people. 33% some form of public

welfare. that is not what built the country. we have to get back to that. we will feel paid until we do. stuart: will there be a crash of personal income and that is what it takes? >> it will be a wake-up. whistling past the graveyard right now. think that we can retire on the money we have. there is no way. the numbers don't work. you cannot live on $10,000 per year. stuart: how do you make your money? divx selling to rich corporations. [laughter] corporate america is sitting on 2.5 trillion dollars in cash mores since 1959.

corporations are rich. they don't know what to do. their lost. stuart: u.s started a business and sold it. >> i have been doing that for 16 years. i give speeches to the sales teams a critical thinking. stuart: u.s started a speaking business? you sell yourself. >> yes. and writing the book. stuart: very interesting. the title of your book? >> rich people think. stuart: that is a good one. steve siebold. supervalu shares is the big winners. >> up 9%. bloomberg looking for buyers

part of a supervalu bought albertson's and saddled with debt because of that. stuart: getting back to the company, steve siebold said we have shifted. the financial culture, the basis of america has shifted entitlement nation versus the entrepreneurial nation. has obama forced that shift? >> that seems to be his agenda. move on welfare was critical. to tell you where he is coming from. people the the freedom and not me guided. ease the regulation.

stuart: he says we have a terrible recession and government did to took care of basic needs. >> but we worse than the recession. >> look at the company's that were great 1929 through their depression. this is when people go to the broad. you don't walk away from a job if you don't have one. you have less to lose. 8% say it is the middle-class is fault. how many times did use the security guard listening to books instead of reading books? they wait fed blame somebody else. if the rich are the same people the bracket got

bigger but the people are different. megatron 20 years ago making zero no $80 million per year. it is a complement to america. >> people feel they don't have the chance. accompanies that are succeeding are big. >> they say a meritocracy has broken down. >> that is a cop out. the government takes it from me any way. why try? >> we need to drill. environmentalists who defended the energy policy with one minor exception. >> [laughter]

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stuart: how will the dow ended? we are dead flat right now. down more than 200 point*.

durable goods orders up 4.2%. in europe, greece asks germany for wiggle room to implement the budget cuts to get the bailout money. look at madison square garden. revenue is up 74% because the made the playoffs last season. we will be back in 90 seconds. with obama's energy plan.

stuart: mitt romney making energy policy. approve the keystone pipeline. more offshore and onshore drilling. these federal regulations and natural gas and coal mining. i will send a national goal with energy independence by 2020. [cheers and applause] wrote we produce all the energy we use. stuart: as there is the candidates plan.

bob, adjoining us from washington d.c.. if you go back four years and implemented then romney's plan to drill and mine and frack our dependence today would be far less than it is? >> i don't think so. it is about bidding our future on the fossil fuels of the past in keeping us addicted to oil. stuart: i have to stop you. you are entitled to your opinions but not your own fax. the people do not bided check to $4 billion to the accompanies. answer the question.

ego back four years and implemented romney's plan we would be importing more oil? it would be less. >> we're "on the road" now with the obama taking office importing 57% now it is 42%. stuart: because of drilling for oil on private land in north dakota. nothing to do with the obama. he has clamped down on production. >> we drilled 9,000 new oilwells a new one every 19 minutes. we're drilling faster than any time. stuart: that is not true. >> look at the liberal agenda on energy.

wind it is a pipe dream. the government's goals you have to cover 10 new jersey's with windmills at a cost of 45 billion over 10 years. the option new layout is fantasyland. >> we help american business to have a competitive edge we will get 20% in about 15% of energy from wind. >> desk at energy come from the federal government? it is fine if it is the private sector. >> it is. there is said to cent subsidy that is helping farmers. stuart. you are cooking the books.

the largest subsidies go to win the company's per unit of energy. don't give me $0.2. it is a massive subsidy look at her energy unit produced. >> the law is 2.2 cents per kilowatt hour is helping to transform the country to increase options. that gives the competitive edge 87 it is a pipe dream. it will never supply the significant amount period. give the members. >> 10 in new jersey's with windmills then you pay as much as $45 billion every year. you wind subsidies and the government.

talk about solar energy. per household the system does not pay for itself. people move out before they realize the cost. even with the subsidy. >> the last word is we need to invest energy efficiency efficiency, renewals like wind and solar to move forward. this is drill baby drill. stuart: we disagree. thank you for joining us. >> thank you. stuart: samsung building a $4 billion expansion not in silicon valley but austin, texas. why? no unions? low taxes? what did they give them to get that done? next.

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u.s. appeals court ruled cigarette companies do not need to comply mcgrath thick new labeling requirements. the fda wanted to for tobacco companies to the ugly pictures on the pack like diseased lungs and rotting teeth. this appeals court in washington d.c. says you don't have to do

that. the second down for the obama administration from the same court. earlier the same court smacked down the epa on e emissions rules. two blows against obama. big news. eli lilly's new alzheimer's drug showing a positive signal especially for those diagnosed very early in the game. where is the stock? >> we talk about the stock a lot. i don't know how i did but because of problems resulting from that drug, 3%, huge volume for eli lilly. we were showing bigger gains than a 52 week high earlier so we are not as much as we were but a nice gain for eli lilly. stuart: very important move in the medical community and that stock reflects it. very rare that a big company like that on that volume.

good stuff. thanks very much. earlier this week samsung announced a $4 billion investment to update a smart phone chip factory in austin, texas. what did austin give samsung to bring them in. dan quarter from the chamber of commerce joined the company to answer the question. i know texas is a good place to do business but did you give something to samsung to come in the air? >> good morning. actually samsung select austin in 1996 to put their first semiconductor plant outside of korea in the united states and in austin, texas. in 1996 there was an incentive package provided to them. stuart: what kind of things? >> fairly small for the type of

investment. property-tax rebate. a certain percentage in 1996. stuart: i am not trying to sideline the role of the chamber of commerce or the business climate in texas. far from it. i want to point out that texas has a wonderful tax regimen in place and very educated labor force in austin, texas. you were a high tech center to start with. one of my company members raised the issue that in texas health care provision is very good because in texas health care liability -- >> i am not sir 9 can address all the health care issues. samsung announcement is a continuation of their expansion as a direct result of a strategy we have in place to diversify and grow the regional economy. it is funded by the private

sector. $33 million in the local community about expansion opportunities image we promote austin as a great place to do business that it is good to have an intense manufacturing project. stuart: we got it. thanks. tracy: if you're going to retire next ten years look at texas have a place to retire. there are outlook for taxes is fantastic. they will be a place that will continue -- dagen: net for workers and retirees. charles: before you get to retirement to million people live there because of great jobs. these are smart, amazing people moving to texas. low taxes and friendly

environment. stuart: texas is the anti calif.. people in california shift to texas for the regulatory climate, tax climate and health care climate. texas has and california lost it. mitt romney's election of paul ryan as his running mate is being picked over for two weeks and we have someone who compares romney's selection to this moment in history. to you agree? >> mr. gorbachev, teardown this wall.

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stuart: an update on the shooting outside the empire state building. a source says the incident appears to have been a workplace related incident. we have reports of two people did in this shooting eight others injured. one of the dead is reportedly the shooter. that is a medium ayers state building in new york city. right back to the markets now. joining the company from chicago is jared kid. i want to know why commodity prices are almost across the board and the stock market until the last couple days has been at a four year high. give me the number one reason. go. >> number one reason is the u.s. dropped. it has far ranging implications

probably more so than a lot of people believe. stuart: i you linking the drop to the stock market rally? that is a stretch. >> not the stock market rally necessarily but in terms of the commodity space in general it certainly is. of course you have the immediate one of them packing grain and oilseed prices which of gone crazy over the last two months. you had a 50% increase in corn, 40% in soybeans. that lifted the entire commodity complex and an effect on gasoline prices as well. stuart: there is no back off from that. we saw that spike the last few weeks but it is not backing off at all at this point. >> not quite yet. there's more pain to come. another 10 to $0.20 a rally in gasoline at best but as you get more into the fall months the seasonals will kick in and work their magic and you will see a break in gasoline prices heading

into the winter. change thanks very much. i hate to put it like this that there's a lot of silliness in the presidential campaign but our next guest says mitt romney's pick of paul ryan and his decision to tackle the medicare issue head on is courageous and sirius. dan henning sir of the wall street journal joins us now. i thought we were going to roll the tape. you are comparing president reagan's statement at the berlin wall, mr. gorbachev, teardown as well, you are comparing that wonderful moment in history with the paul ryan pick by mitt romney. is that a bit of a stretch or what? >> let me briefly set the scene. before taking our upcoming deep dive into the presidential campaign i had to clear my head. i went to europe and berlin and germany and i went to checkpoint charlie and the berlin wall. the 70s and 80s we wrote a lot

about the cold war. i got to know the dissidents and so i saw a close-up what was going on in those years. in the museum they have a room dedicated to ronald reagan and the famous speech. this was an era of deep seriousness in politics. everyone knew what the stakes were and try to be serious about them. that is not always the case in our politics. i thought how does this relate to our politics and the biggest event in the campaign recently was mitt romney taking paul ryan against the conventional wisdom. paul ryan represents the determination to reform medicare and entitlements. this is a similar act of seriousness by mitt romney challenging the status quo that you can't touch medicare or entitlements in a campaign. it is all about winning. romney deserve some credit for stepping up and putting on the

table and issue that is a clear and present danger to the american future. stuart: he is getting that credit. there has been a modest bounce in the polls but the seriousness of the campaign has been raised several notches by that thick and hitting medicare head on. >> it relates to the other serious subject which is obviously the economy. we have had 8% unemployment or more for the last three years. no growth in the economy. people are hurting out there and now we have the cbo predicted the possibility of a recession next year and employment above 9%. what could be more serious? charles: who is goerge of? president obama or the american public that has been indifferent or not prepared for the serious problem? >> gorbachev was thought to be a reformer. he knew that the system couldn't hold. i would not relate him to barack obama who clearly is defending the status quo system. he wants to spend more money.

in this case perhaps it is some element of the public who have in their head the idea that something has to change and they have to be pushed by somebody the way reagan pushed at the brandenburg gate. stuart: are you saying romney -- paul ryan is reagan-- >> paul ryan particularly has been reagan lichen's challenging the status quo when ronald reagan did. tracy: reagan got rewarded. things went his way. is possible things won't go mitt romney's way because of his challenge to medicare. >> that is entirely possible. by taking this issue of it may cost him. is a risk but reagan was a politician who was willing to take risks and there's a question of whether mitt romney has the political skills to put it across the way ronald reagan did. i think that is an open question. stuart: is america prepared to bite the entitlement bullish?

>> if it is presented in the right way. let me is another analogy the way chris christie presented the economic reality to the people of new jersey. he told them we are heading towards a state it simply can't function and if romney levels with the american people in that way and put some facts behind them they are going to think about it and it could go his way in november. tracy: compassion is missing in his presentation. stuart: thank you for being with us. always a pleasure. president obama touting the stimulus saying the republicans blocked him from doing more of it. to help the economy. turns out incomes are down since the so-called recovery began. how will the democrats defend that? find out next. [ male announcer ] if you have to take care of legal matters.

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stuart: it is august. it is friday. very quiet day on the stock market. the dow's six week winning streak, who knows whether it ends today? dow industrials are up 22 points and the dow is down 2 and the points of 5 this week. eli lilly's alzheimer's drug shows some promise in its trial run. its lows a decline in patients with mild forms of the disease. it is hoped it could treat people in early stages of alzheimer's. another drug company moving hire today is watson pharmaceuticals which got regulatory approval to begin selling a pain medication

next year. e.u. better off now than you were four years ago? you are not as far as income is concerned. does that mean mitt romney will win the election? i don't know but we're back in 90 seconds. mcnabb an answer for you. ♪ [ male announcer ] to hold a patent that has changed the modern world... would define you as an innovator. to hold more than one patent of this caliber... would define you as a true leader. to hold over 80,000... well, that would make you... the creato of the 2012 mercedes-benz e-class...

quite possibly the most advanced luxury sedan ever. ♪ join mercedes-benz usa on facebook for the best summer sweepstakes. stuart: a new census report shows annual income for the average person is down 4.8% since the so-called recovery in

2009. this means incomes have dropped more sins the recovery than they did during the recession. i you better off than you were four years ago? democrat strategist wreck under is here to defend the president's economic policy now and going forward. welcome to the show. i can give you very easily 20 seconds of what mitt romney's plan is for the future of the economy and how to get it growing again. give me 20 seconds on president obama's plan to grow the economy. >> hard to do but can i hear one point before you get to it? there is something very telling about this statistic that came out. household incomes are in the down. no one is up? every year in the past three years corporate profits. [talking over each other] stuart: it is irrelevant. [talking over each other] charles: apple get 67% of their profits outside the country.

you are complaining of the domestic economy or the global economy and that is wrong. >> if corporate profits are up and i'm not talking about employment. your point is why are not people getting put back to work. that is where your argument rests. we are talking about people who are working and their incomes are going down. if their incomes are going down and corporate profits are going up how does that -- [talking over each other] stuart: give me 20 seconds on how president obama in the future is going to get us out of this mess. >> i would argue the seeds have well been planted. i know you will disagree. we have seen it going back to we're going to hate the stimulus lose the stimulus set the stage. two years from today -- i am calling on television, we are going to see a very different economy. if mitt romney is president he would get the benefit of that.

stuart: you are telling me the stimulus program enacted in march of 2009 will bear fruit with a bigger economy -- >> much as you don't like it -- [talking over each other] >> everything we have been doing has set up the economy for return. [talking over each other] tracy: the obama administration says wait. [talking over each other] charles: obama gets credit -- [talking over each other] >> do you believe that president romney could change economy? [talking over each other] >> i will answer first and then charles. stuart: here's what you do. lower tax rates. abolish some deductions, raise the money going to the treasury

and reform the litigation and regulation we have got and very quickly within months -- wait a second. you will restore confidence on the part of private enterprise and that $2.5 trillion they have got in reserve will come into the market and make a huge difference. charles: 12 months. tracy: doing nothing to help economy. [talking over each other] >> the only one going on record. [talking over each other] >> get rid of obamacare and the nonsense reforming the financial system and the epa a off our backs and start drilling and producing america's energy and you will have a rip roaring economy in 12 months. >> take what you said. if that is the case let's give it to you that that could be what happens. you are saying that business is sitting there poised to let loose if only they had the right

policies. all that money is in the bank ready to go. let me ask you a question. if all the money is sitting in the bank that means business is valuing the assets, that money far more than their value in their employees who keep seeing their incomes decline. stuart: no no no. looking to the future. [talking over each other] charles: majority of that money is outside of america with a majority of profits being made and they don't want to pay another 35% tax on it. >> the majority of profits -- [talking over each other] >> you are saying -- stuart: i have got to take a commercial break. my take was supposed to be next. i will drop it. back in a moment.

stuart: democrat strategist rick unger is still here. i asked before and i will ask again. give me twenty-second on how president obama will restore prosperity to america. >> make a fair situation for workers to make a decent living and here's why it will pay off. people get paid more money.

they pay more taxes. we can leave you alone. leave the wealthy alone when we start paying the american worker enough money. the american worker as wages -- stuart: how does president obama force corporations to pay more in wages? >> you can't force them to. all you can do is continue to do what he has always done which is point out to them you can visit it now or later. you can an honest wage -- [talking over each other] charles: u.s. corp.'s highest taxes in the world. punish them more that means less workers making more money but you have the same arithmetic. won't be anything to the economy. >> at effective rate unit is not a heist corporate tax and world. actual rate -- [talking over each other]

stuart: it was a great pleasure. the highlight reel is next. ♪

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stuart: will the highlight reel. >> i think we will have to feel enough pain before we realize i am 65 years old and i have money in the bank, i cannot live on that. i will be eating dog food. stuart: the audience likes when you get heated. >> how do you have an opinion, how do you the gall to even to be upset about how much this guy. when you paid zero. >> class warfare. stuart: do not get me started. we do not have time to turn around the argument. you got class warfare in there. what do you have, then