♪ ♪ imus in the morning ♪ >> it's not elegantly stated,

let me put it that way. i'm speaking off the cuff to a question and i'm sure i can state it more clearly in a more effective way thandy in a setting like that. stuart: that was the response. so what did he say in the first place. i'll tell you, america has become an entitlement nation, he said it, the media goes berserk, good morning, everyone, at a private fundraiser in may, romney talked about victimhood, the 47% who pays no tax and the government handout that president obama encourages. part of the tape made public. the media response has been highly critical. late last night the governor did not back down. apple $700 a share, the company is most valuable ever, more than 650 billion. the iphone is now a clearly smashing success. but, what are investors to make of yet another very sudden and so far unexplained market drop. in a matter of moments, oil went

straight down. does the little guy get a fair shake on wall street? "varney & company" about to begin.

>> good morning, "varney & company" viewers, today is tuesday, september 18th. and the story of the day. romney coming big time attack after comments at a fund raise ner may. >> 47% of the people-- there are 47% who are with him who believe they are victims, hobble that a government has the responsibility to care for them and entitled. the health care, housing, you name it, entitlement that the government's given to them and they will vote for this president no matter what. so my job is not to worry about those people, en-- personal responsibility and--

>> part of the tape secretly recorded and leaked by mother jones. the mainstream media. >> new york times. >> mitt romney shows blunt talk on dependents. washington post in a video. romney disdanes, a dependent 47%. in the l.a. times, romney showed dismissing obama voters, but despite that, the governor isn't backing down. here is his response late last night after the video leaked. >> i believe the point i made is the president starts out with a large number of voters, 47, 48, 49%, something like that, these are people who are in his camp. and they'll vote for him almost no matter what and i also have a large number of people who will vote for me almost no matter what, at least i hope so. and that my campaign effort is to focus on the people in the middle. stuart: the romney campaign will respond more in the the next hour, romney economic advisors glenn hubbard joins the condition and that's at ten

o'clock eastern. the middle east isn't the only place we're seeing violence. wild scenes in china, china and japan go at it over dispouted islands, not good for the sinking economy. and got that after the opening bell and talking about fedex, it's an economic indicator, how the shipping business is doing? hint, not good. and this is apple's world record orders for the iphone 5, the stock the at $700 and the marketing machine keeps that buzz going. next, why consumers get sucked in by apple. monarch of marketing analysis. with the ability to improve roi through seo all by cob. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. i'm going b-i-g. [ male announcer ] good choice business pro. good choice.

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together we'll go far.

. stuart: the opening bell is ringing, when it stops, they'll trade and we're expecting a loose in the early going, in other words, fairly flat this tuesday morning. that's the opening trend, dead flat. i believe we're down .7 in the first nine, no, down 3 points in the first three minutes, one minute-- make that 14 seconds worth of business and i've got a couple of stocks that i want to concentrate on right from the start. fedex, when it announces its results, it tells us a lot about the whole economy. it is an indicator and fedex has cut its forecast once again. all right, nicole, where is the stock? >> i'm glad you say cut its forecast once again because that's the case, it's down

2 1/2% this morning, right now, at the opening bell, it's taking ups down with it. the truth of the matter is, we heard it in early september. we covered it here on varney, talking about the tough global economy. and the sales, they lowered the outlook and doing the same thing again today. stuart: i think their business, they're looking for a 5% drop in the united states which is a pretty bad indicator for america's economy. i think that's actually 5%. so, i really want to move on fast to apple. is it at 700, yes or no? >> no, a nickel, pull out a nickel. that's how far away we are 699.95. stuart: am i right in saying that during regular market hours it has yet to hit 700. pre-market, post market. >> correct. stuart: but-- >> i saw it over 701 overnight. so iphone 5 has been obviously breaking all records. stuart: i here by guarantee, the trumpets will sound when we hit #00. >> i thought you were guarantee

700. stuart: no, not. nice dry, nicole, nice dry. the dow industrial is down as we suggest. i'm going to stay on apple and bring in branding strategist, the author of the book "break through branding". katherine, welcome to the program. >> thanks for having me. stuart: now, i want to talk about the buzz that apple creates, very, very cleverly. did they deliberately produce fewer iphones, just restrict their production knowing that they were going to get huge orders so they could go out and say we've broken all kinds of record, saying we can't keep up with incredible demand? >> sure, i mean, they could have produced more phones, but wouldn't have had nearly the buzz. when you have a sense of scarcity, the illusion of scarcity, it fuels desire we want it all the more. look at, you know, the friday after thanksgiving, you know, all the sales, there's a limited supply, there's stampedes at some stores, but it's really a

great strategy for luxury brands and look at the perks, they have those, celebrities can get them, the best customers and the rest of us have to wait in line. >> i'm not detracting from the quality of the product, i'm sure it's a wonderful product and i talk about the marketing and the buzz. does anybody do it better? >> well, twitter does, you know, twitter is a brand that was introduced and in less than a year, it was a global name. very few brands have that kind of awareness that grows that quickly. but, i think apple is in a class by itself. they also create a sense of mystique and intrigue. it's like a cliff hanger. >> how do you create a sense of mystique? >> you don't tell people much about it, and even when they were announcing it last week, they didn't say, initially, what the announcement was going be to be. there was no press release, iphone 5. so, it's really bottomed out and top up. a lot of what fuels it are all

the bloggers. for months, thousands of bloggers, all across the country, have been speculating, what's the iphone 5 going to be like, what are the characteristics, et cetera. they've not not only the buzz they've created by the he creasy, but bloggers are writing about it. >> i think we in the conventional media are being used. get that buzz going. >> right. >> and go out there and say we'll sound the trumpets when we hit 700. >> a way to drive the stock price more, sure. they spoke on day one, the first hour they were sold out. you know, so, you have the-- you can't even-- you didn't walk out of the the store with the phone. stuart: they don't need conventional advertising. >> no, they spend very little money. the ipod, there was some advertising, but now they've got so much bottom up marketing from the bloggers, from the the buzz, from the media that's free. why pay for it. stuart: but, isn't it a bubble that eventually bursts?

because people begin to realize, we're being had here, we're taken for this marketing ride, so to speak? >> well, i don't think so. if you create a cult where there's excitement. stuart: a cult, wait a minute. >> they have a cult. a cult you say? >> i think so. you know, it's like an eco system. once you get one apple device, you feel compelled to get the others then you don't have to sync, it's synced automatically and i-cloud, the echo system works together and there's a part of your identity, who you are as a person. don't you look at what phone other people have. stuart: i've got a blackberry. what does it make me? >> i think you're a little out of date, stuart. stuart: and now one last question, your book is "break through marketing". >> "break through branding". stuart: do you think that apple is a break through brand? >> it is. i talk about apple, but not too much. apple has been covered so much it won't be news so i'm doing a

lot of the smaller, newer companies, but apple is a genius at branding and it's the company we should pay attention to. stuart: at $700 a share yet, i don't think we are. looking, no, we're down a little bit and see what i can do about that. and kathleen, thank you very much. >> thanks for having me. stuart: back to nicole, alcoa, not much interest in altoa even though it's the leading aluminum producer. >> no interest in a dow component? >> i do have interest. how many people buy alcoa on any given day versus how many people buy amazon, microsoft or apple? >> okay. i understand your point. that some people at home want to get into amazon or apple, sexier per se, however, so many of our viewers, stuart, buy mutual funds or funds that follow the dow 30, alcoa is in there and it's a big loser today because they've got a downgrade because there are concerns about all

kinds of material, aluminum and steel for that matter and jeffries came out and cut aluminum maker alcoa and the deals-- >> it occurs to me it's a bit like fedex, an economic indicator he. it's the aluminum big producer. if they're going to produce less, that means the economy is not as great as we thought it was, it's like fedex shipping less. it's an economic indicator to some degree, isn't it? >> i wish i could make a really big sign that says the economy is not as good as it was or something to that effect. yes, that's absolutely correct. >> nicole, thank you very much indeed. the dow is down 26 as we expect. right now, the way to take a look at the price of oil. crude fell roughly $4 a barrel, very, very suddenly yesterday afternoon. nobody's been able to explain why that happened. unexplained moves like this really get to investors and with everybody waiting on news that the strategic petroleum reserve may or may not be tapped, there's suspicion that some

traders will learn the news well before others. so, did somebody leak something or speculate something late yesterday and make that market drop like that? i don't know. we'll talk about it more with a former oil trader, sandra smith. she's on the company and she joins us shortly. several japan companies suspended in china after anti-japanese protests turned violent there yesterday and today again. toyota, nissan, honda, say that production has been halted at select plants after they attacked over the disputed islands in the east china sea. and sony and say they've of the suspended factories after this violence. and the latest on entitlement in america, a huge spike in social security disability payments. exactly what mitt romney was talking about in the video that the mainstream video is now roasting him for.

we have the news for you at 10. it's a shocker. time is money, here is what else we have for you today. if somebody takes a picture of you on private property without your consent and wants to sell it for big bucks, can you stop them? are you listening kate middleton? all rise, the judge will join us shortly. and the new element that sheds light on what one mayor is up against to cut the workplace. we'll talk to a union representative on that one. and i'll give my take on what mitt romney has said and how the media has reacted with glee. what do you think by the way, we always want to know. varney@foxbusiness.com is how you reach us. seven early movers this tuesday morning. the office furniture maker, hn 1 lowered its forecast and it's down 11%. never heard of them, but it's down. the chip maker, the chief financial officer is resigning and that's down nearly 7%.

fitch, humana's rating and outlook for the stock, it's down. and dole food is selling to a japanese company, and 4%. and fedex, here is an important stock and story, it cut its profit outlook, therefore, it's an economic indicator, the stock is down 2%, big move from big company. oracle agreed to require the

>> it's a go nowhere day thus far this tuesday morning. and as for the price of oil, sudden unexplained big drop yesterday down to 95 a barrel as of this morning and the national average for a gallon of regular fell slightly overnight and now quoting a regular average across

the country of 3.85, diesel is holding still right there at 4.12. and diplomates of the u.s. embassy in lebanon now destroying important documents as those anti-american protests continue outside and they spread to their roof. and blaming the chaos on an amateur movie, the obama administration is blaming. and later this year, a feature film, hollywood feature film is scheduled to be released and could spark a reaction, listen to this. >> if they're angry with a silly movie with guys with dish towels on their head, can you imagine the reaction in the muslim world about the killing of bin laden throwing american servicemen pulling the trigger. >> and joining us now is kelly jane. i'm not going to speculate about impact, but shows the obama team organizationing the killing of osama bin laden. am i accurate in saying that?

who made this movie? >> the movie was made by katherine bigelow and written by mark bohl responsible for the hurt locker, the iraq war film that did well, won best picture, best director, did very well, and the administration, based on how well that film did, gave a lot of cooperation for them making a film about the killing of bin laden. and you've got e-mails, freedom of information requests and e-mails came out where the ceo had one of the spokesperson had said, this is the movie we need to work with. and a lot of people wanted to make a movie about the killing of bin laden and they said this is the one that we've got to work with, the two oscar winners, a lot of money behind this this is the movie. stuart: the administration is almost taking pride in this, opening up its people to talk about the killing of bin laden and that's what will come out of this movie, that's what the arab world will take away from this movie, that it was the

president, his administration, organizing the killing of bin laden. i'm looking for what impact this movie might have. >> well, it's interesting, because we've seen with this amateur video that the administration has been really distancing themselves, hillary clinton and others saying we had nothing to do with this. they're not going to be able to make that case with "zero dark 30" which is the name of the bin laden movie coming out later. as you said earlier, you're right. this movie doesn't aim to, you know, insult muhammad or any flash points like that, but think about this, now, these attacks took place on september 11th, the anniversary of al qaeda attacks. i don't think that any sensible person thinks there wasn't some pre-meditation for at least part of the attacks and found in egypt, during the-- when they took control of the embassy, they raised the al qaeda flag and on the scene was a younger brother of the new head of al qaeda since usama has

been killed. clearly, al qaeda was involved in these things. egypt is an interesting place, that's where it started and now, when i was in cairo, i found is such an odd place, you've got on a single block, men that look like they're out of gq. modern men and further down the block, men who look like shepherds and people are talking about the fact that al qaeda's popularity has gone down in the middle east. even last year, there was still one in five egyptians had a very favorable view of al qaeda, now that's-- >> real fast, sorry to interrupt. when is it going to be released, is it october? >> it was going to be october, but there were a lot of complaints that it seemed to be an election ploy. stuart: after the election? >> exactly. december 19th. stuart: december 19th. which studio made it? >> i believe you know what? i believe it was universal or columbia. sorry, i-- >> okay. december 19th. that's when it comes out. >> exactly. stuart: okay. >> and one side is going to be

distributing. stuart: who. >> harvey weinstein is distributing it. stuart: thank you, kelly jane, we'll see you. >> thanks, stuart. stuart: 9:29. almost 9:50. your gold report says this, 1769, little changed, but we're still up there way into the 1700 level per ounce. the obamacare propaganda machine is go to go into high gear and the message will be told by, drum roll, popular shows like grey's anatomy, they have been asked to include story lines about the health care law, obamacare. and they're going to pay hollywood people to love obama? don't they do that naturally? what do sandra smith and charles payne think about that? they are on the war, here they come. ♪ [ male announcer ] let's say you need to take care of legal matters.

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>> california is getting ready for obamacare. what is the state's plan. spend a million dollars on a public relations firm to pitch pro obamacare themes to popular shows like grey's anatomy and modern family and the pr firm plans to pitch a reality show based on families living without medical coverage. you know, everybody, welcome sandra, and welcome charles. sounds to me like my taxpayer money is used for propaganda

purposes to promote obamacare and i don't like it, how about you. >> of course i don't like it. the crazy thing, hollywood, you've got to promote hollywood on this, where you've got to pay them? >> you've got to pay hollywood? who the heck came up with this one. this guy was good and selling firewood eskimos, are you serious? >> and the fundraisers and now money back. >> anti-capitalists themes for the movies the last 15 years have layered it on and that's why movies are down so much, why people stopped going. stuart: don't let him take over. >> for everybody, this is a 900,000 contract and going after people who speak dozens of languages, 11 media markets and talking about pitches a reality show about the trials and tribulations of families living without media coverage. >> and trials and tribulations, no coverage, let's go with obamacare. and pay for it. the new at 10, the latest don

entitlement of america, disabilities payments. exactly what mitt romney was talking about when he said this. >> there are 47% of the people who voted for the president no matter what. there are 47% who are with him and believe that they are victims, who believe that the government has a responsibility to care for them. [ engine revving ]

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stuart: a senate report shows fraudulent or mistake laden social security payments. florida appears rampant. rubber stamping billions of dollars of planes. more than a quarter of disability payments made to the improper between 2006 and 2010. this is the entitlement america mitt romney was talking about. look at this. no change for stocks. the dow is down. charles payne is back. nicole petallides still on the floor of the stock exchange. have to check on the share price of apple. 700? nicole: yes. we crossed the 700 mark on apple

today. there it is. 773. a gain of 0.1%. stuart: i am glad the trumpet sounded. alcoa is the big loser. nicole: big loser in the dow. the aluminummaker was downgraded. great economic indicator as you noted with aluminum stocks coming under pressure and analysts have been showing that and that is why you are seeing it down off of the close down 1% and earlier u.s. they question. stuart: refresh my memory? nicole: what was your question? stuart: how many shares of alcoa are traded on any given day at any given moment. nicole: why do people care? [talking over each other] nicole: they do because brains at fox did some research here. microsoft is most heavily traded. alcoa, 15.8.

than apple, $14 million and amazon. stuart: hold on. apple trades fourteen million shares a day to $1,700 a share. that is billions of dollars more trading value than alcoa which make trade a few actual shares. nicole: amazon. stuart: $250 a share. nicole: today alone alcoa has traded three million shares. amazon 319,000. [talking over each other] stuart: i made my point. apple at $700 makes the company worth $657 billion. trumpets please. nicole: 44 is the new high. stuart: we will take it. good stuff. back to that new at 10:00 story. according to a new report the social security administration

improperly awarded disability to 25% of those people who apply a to disability payments between 2006, and 2010. what do you make of that? nicole: charles: it is a huge scandal that has in going on for a while. in some places they call it crazy check. 29-year-old man says the economy is driving me crazy and i can't do it. you are on social security disability. we have an army of these people in the country right now. stuart: an extra three million in the last three years doing a million-a-year. charles: is easy and people talk about getting checks. [talking over each other] >> those that are deserted are they getting it? tom coburn from oklahoma said that is his primary concern. one oklahoma judge ordered $1.6 billion in lifetime

benefits in three years. stuart: he rubber-stamp it. and apparently administrative judges are not reviewing medical evidence properly and in many cases just say yes or no. you get it or you don't without any kind of hearing. stuart: you can't tell me how much anxiety i have. not something you can put a thermometer in my mouth. stuart: you can get disability view our feelings dressed and view our feelings dressed and alcoholism? [talking over each other] charles: the crazy checks. [talking over each other] stuart: when you get it for life. >> lifetime disability award is $300,000, one person. stuart: this report said that the fund from which this ability is drawn is teetering on --

[talking over each other] stuart: teetering on financial bankruptcy. >> led his major concern that if we are shelling out this much, 90%, we are not looking at these hearings. being held on many of these. are people who are deserving of this get it? charles: a lot of people have legitimate illnesses and have to be out of work for a couple years who legitimately have to wait while young able bali -- focusing on men out there getting these checks is an atrocity. stuart: that is what mitt romney was talking about. this leaked tape that came to light last night. charles: his delivery was bad. [talking over each other] stuart: running for the new york times these days. charles: trying to be honest. >> we were chatting about this.

stuart: the senate report on social security is exactly what mitt romney was trying to convey in that leaked video that is making headlines. listen to this. >> 47% of people who live in who leave it to believe the government has a responsibility and believe they are entitled to health care and housing to you name it. that government should give it to them and they will vote for this president now matter what. not to worry about that. take personal responsibility and care for their lives. stuart: the media says mr. romney is disdaining the entitlement society and those people getting something from the government. how do you describe the financial culture that president obama has created? romney economic adviser glenn hubbard is with us this morning.

thank you for being with us. my standing question, howell would glenn hubbard described -- you were part of the romney campaign. how would you describe the financial culture president obama is creating? >> the question is about economic growth. if we want to improve living standards of all of us wherever we are in society is about getting growth up and the president's policies that the enemy of economic growth. that is the question. stuart: is this an entitlement society? >> all americans would like to work hard and prosper in this country. what is missing for many people are the growth opportunities to do so and the present half of public policy is consistent with joblessness and low growth. stuart: if i suggest president obama has created an entitlement financial culture of i can describe it like that how would you describe the financial culture which mitt romney would create if president?

>> we want to meet these aspirations of all americans by providing growth. that is about tax reform, riding the fiscal shift to get the size of government backed down and regulation would promote jobs instead of discourage them and unleashing america's energy potential. we could have a faster recovery. we could have twelve million jobs. we have done it before. stuart: the key to all these jobs and the key to growth is what? tax reform? >> tax reform with lower marginal rates on all businesses, corporate and non corporate, bringing the size of government down so we can afford to pay for it so we don't have a ever escalating tax burdens. getting regulations that make finance the servant of mean streets rather than the other way around and making sure the american energy sector can create the jobs it can. stuart: i understand where you

are coming from. i hear the message. i am not sure mitt romney has articulated that message in a way breaking through media resistance. >> these are important messages for the american people to understand. governor romney and paul ryan save them. the important thing is these messages meet the aspirations for work and success of all americans. stuart: if we lower tax rates as you are suggesting, tax reform, how does it broaden the tax base? >> we need to do both. we need to get tax rates down because it will promote saving and entrepreneurship and pay for it and make sure the tax system is fair. it is about tax reform. by contrast the president says let's raise marginal tax rates on business owners. really hard to square that with a message of economic growth. stuart: people who don't pay

tax, 47% to not pay federal income tax. some of those who don't pay tax now will pay tax under romney administration. >> depends how congress and a president romney would do tax reform. governor romney has said everything is on the table in terms of base broadening and this plan needs to be fair. stuart: may i suggest there is a little more fire for tax reform. you got to get some fire here. you got to confuse people because you're getting clobbered by the establishment me and a very aggressive president obama. >> i appreciate the lecture. stuart: i am not lecturing. i am really not. i am not doing that. i want to see the message of tax reform be put out there in a more aggressive fashion that communicates itself to the voters. i am not seeing it.

>> nothing more important than tax reform. if we had tax reform we could have 1/2% to 1% gdp growth for a decade. i argue nothing else could come close. stuart: appreciate you being with us. appreciate it. here is what you are saying about mitt romney's comments. john says he needs to say it again and again. hammer obama in the debates with it. he said what most thinking and working americans have been saying. diana makes an excellent point. how is what romney said any worse than the bidder clinger comment from obama in 2008? what obama said was disparaging. what romney said was fact will. she is referring to is this.

>> by government, get claiming to that. they explain their frustrations. stuart: where is the media piling on to that clinging on to comment? great stuff. we added contents to the show based on what you said. follow us and get involved. we want your thoughts. facebook right now. check the latest rasmussen tracking poll. mitt romney still in the lead. 47% of the vote. president obama 45%. at five days in a row mitt romney is leading in the resin used in poll of likely voters. very important. you may remember the story of jim wreckhigher who told us how he was pulled over for supposedly drunk driving. that was the wrong accusation after he took on a police units. listen to this. >> one of the final things on

their playbook to tell you what to do as a police officer or union representative to get what you want focus on the individual and avoid spreading your injury and focus on city manager and council person or mayor and police chief and keep pressure up until that person a shores his loyalty and move on to the next victim. stuart: over the weekend los angeles times backed him up with a feature story outlining the very tactics of the law firm he is talking about but when we ask our resident union defender about it he wanted proof that the union did anything wrong. >> show me the cases where that intimidation has been shown, not claimed to have existed. stuart: later this hour phil will join us again. is this true enough of the tactics used by unions to bull the local officials? is it enough? 10:35 we will have it. more bad news for the coal industry and this will cost jobs

because the coal producer alpha natural resources says it is cutting production by sixteen million tons. it will eliminate 1,200 jobs companywhy including the closing of eight mines in virginia, west virginia and pennsylvania. more out rage and embarrassment for the royal family. topless photos of the princess -- the duchess of cambridge were published by a french magazine. should she expect some level of privacy? should she get it? would she get it in america? the judge is next on that. hmm, it says here that cheerios helps lower cholesterol

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stuart: federal express is an economic indicator and according to the latest release the economy slowing. federal express says they fell 1.1% and grow slower moving ahead. check the share price. it is down 1.87. the other big corporate of the day apple sold two million i founds in 24 hours and it is all about stock. check the price. once again stock actually did hit another all-time high when over $700 at $6.99. just out at:00, more signs of

the housing recovery. home builder sentiment rose for the fifth month in a row and that is at a six year-national association of home builders says they are still a long way to go. next a royal scandal and the judge will pass judgment in 90 seconds.

with the fidelity stock screener, you can try strategies from independent experts and see wh 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. stuart: chicago teachers strike ended its seventh day. a judge will hear rahm emanuel's request to end the strike.

teachers' union delegates meet to discuss an end to the strike. chicago kids remain out of school. we know the story by now. semi nude pictures of the future queen consort of england key to middleton at the center of a massive legal battle. my question, could the duchess of cambridge expect better legal protection in the united states. judge andrew napolitano is here. don't laugh like that. dealing with the royal family. judge napolitano: i am laughing because the answer will please you and displease you. it will please you in that she could sue for damages here. will displease you because in the british system there are caps on the damages and the caps are pretty reasonable. in america where she would sue there are no caps. stuart: back to square one. if this was the duchess of cambridge who came to the united

states and exposes herself foolishly and somebody takes a picture of her can she go to us should be court? >> she would not win. in the united states, prior restraint is unheard of in a situation not involving a sensitive national security or military secret. movements of troops. [talking over each other] judge napolitano: she could go to court and ask for a fortune in damages. even a fortune that would dwarf that which her husband has inherited by virtue of being the grandson of the queen. she is unlikely to get it but she could ask for it. she can't even ask for that in france and italy because they don't award damages for violations of privacy beyond a nominal amount. stuart: in france where the legal action was brought they did put limits on the publication of these photographs. judge napolitano: in france she

gets limits on the awards but no money to compensate. here she would get some money to compensate depending on the fact that no prior restraint. stuart: wes privacy here than you do over it there. judge napolitano: you could make that argument or also that she intentionally exposed herself on a private place from which she could be viewed from other private and public places so she ought to have known. not to sound crass but she is an international figure. there's a public interest in looking at her. stuart: i agree with you she should have known better. judge napolitano: a photographer -- [talking over each other] charles: this photographer was over half a mile away. with a camera lens that cost no less than $25,000. she is supposed to -- she was in a private home. judge napolitano: your argument is an understandable one. she is at a private state at the

balcony of the apartment and her husband is saying who is going to see you? if he had broken into the castle to take a picture of her obviously there would be a course of action but he is in a public place. sandra: simply depending -- [talking over each other] stuart: cavs lining and and scotland. in france is a chateau. [talking over each other] stuart: can i get a word in edgewise on mild program? it would be a the lot. [talking over each other] judge napolitano: this would be commonplace. stuart: the picture was taken for by someone who worked with sylvia balance the need -- judge napolitano: owned by the former italian president. stuart: thank you very much. we keep hearing promises that

mitt romney can make strides with the latino vote. we are about to ask someone making those promises next. [ male announcer ] you are a business pro.

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suddenly yesterday. that was yesterday afternoon. nobody has explained exactly what happened. sandra smith, commodities trader. any idea what is happening here? you can't explain it. sandra: this is the way markets work and anybody who thinks the commodity markets are volatile should never be participating in this game. oil prices have gone up 25% this june. the sell-off we saw yesterday -- stuart: in a matter of seconds. at sandra: at hour span with a $5 drop. investors and traders have been piling into the long side of the oil market even in the stocks. [talking over each other] sandra: be efficient markets and no technical glitch and when the white house come out and say we have our eye on this, they want to talk about oil land speculator is that we keep a close eye on. they have been caught backwards

in this entire energy speculation argument. if it wasn't for oil was heating oil and natural gas and gasoline fell went down. let's not over -- [talking over each other] stuart: you make a point and i am listening. [talking over each other] stuart: is that the way investors want free markets to work? sandra: market can't keep going. [talking over each other] sandra: people get nervous in the final minutes of the trading session and a seal little selling and all of those skip ahead. stuart: can i occasionally have the last word? wide don't want it. let's move to a developing story. a serious one. japanese auto companies have suspended all the operations in china at the japanese anti-japanese protests turned violent in china. toyota and nissan and honda said production is halted all their plants after demonstrators attacked a.

this followed japan's purchase of disputed islands in the east china sea. sony and panasonic close factories following the violent protests. this could develop into something of real importance to the global economy. that is serious stuff. charles: serious stuff. we have a budding trade war going on. america versus china. i know versus japan. there is lingering resentment. japan is brutal in the pacific during world war ii. when they were in control of china as they led a brutal swath no chinese person will forget. stuart: has america retreated from the pacific? less influence? a week and fire -- charles: japan is trying to get out of there. get closer bases in ocala. we don't have influence and russia after these tiny disputed islands as well but behind the

economic aspect is this lingering resentment that could boil over into something ugly. there are $340 billion worth of trade. for those who go to this trade war or something worse is crazy. stuart: it is a troubling thing. i want to get back to the november election. according to the latest fox news poll 60% of latino voters support president obama. 30% for governor romney. i say president obama's appeal to the latino vote with his work permit program trump's anything mr. romney can do. jennifer horne of the hispanic leadership network is here. we had this discussion before but i want to repeat my point of view. i don't think governor romney can make serious inroads into the latino vote because president obama is offering amnesty and that is the key issue for hispanic voters. amnesty. they want to stay.

that beats out any lack of jobs hispanics feel. >> good morning. thanks for having me. i would have to be at odds with you. this call corral that says the number one issue is the economy. they care how they will pay their bills. will they keep their jobs and how will they pay for their homes? they will be voting with their pocketbook. stuart: if that is the case and the american economy is in dire straits how come 60% of latino voters vote for president obama and 30% for governor romney? >> if you look at the polls look at the series of polls obama had 68% romney started in the teens. down 30% so he is making inroads and hispanics are looking at obama and saying he broke his promises to me and even when talking about what he passed without any congress or senate

approval, that is a cynical way to handle immigration and it was vote for me. obama broke his promise and didn't address immigration at all in the first three and a half years of his presidency. stuart: i want to break this poll down even a little further and look specifically at florida. there are a large number of cuban-americans, they are hispanics, they vote in florida. florida is a key 29 electoral college vote state. i believe the cuban vote will go overwhelmingly to governor romney and not to president obama. in the state of florida the hispanic vote will go to the right as opposed to the left and president obama. >> well, florida is definitely different. but what you have is a window of opportunity. i'm not saying that romney doesn't have a challenge. it is an uphill fight but we still have almost 50 days left till the election and so he

still has the opportunity to talk about the issues that hispanics care about and he did that just yesterday by going to the u.s. hispanic chamber of commerce, and he did get an overwhelmingly a good response from them. stuart: we hear you, jennifer. governor romney is making progress and chipping away at president obama's leadership amongst hispanics. we appreciate you being with us. thank you jennifer. >> thank you very much, have a good day. stuart: you need to raise a point about what romney also said in that release. charles: part of the tape, he sort of mentioned his family having lived in mexico if he had been born of mexican parents running for president would be a lot easier. stuart: that's what he said? charles: spin will be put on it obviously. here's a guy who was born with with silver spoon not understanding the plight of hispanics or whatever. stuart: okay. next new evidence in the case of the interim mayor of costa mesa california who battled the police union and then was falsely accused of drunk

driving. a union defender will respond to a l.a. time's report that backs up the mayor's claims. will he change his tune this time? >> show me the cases where that has been shown, not claimed, to have existed. [ male announcer ] if you believe the mayan calendar, on december 21st polar shifts will reverse the earth's gravitational pull and hurtle us all into space. which would render retirement planning unnecessary. but say the sun rises on december 22nd, and you still need to retire. td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, mayans? can youlyric can.aid do this? when you open a new account or roll over an old 401(k). lyric can.

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stuart: i have breaking news for you, it is a court victory for conservative groups. reuters reports that the u.s. appeals court in d.c. has thrown out a lower court ruling on campaign donations. tax-exempt organizations that pump millions of dollars into election ads will again be able to keep the names of their donors secret. they do not have to reveal who gave them the money. got it. the interim costa mesa mayor says the police union tried to set him up for drunk driving because of his plan to cut the city's workforce. he says the union actually had a play book to attack anyone who opposed public workers. listen to this. >> i will tell you one of the final things on their play book to tell you what to do as a police officer or union representative to go ahead and get what you want, focus on an individual, avoid spreading your energy, focus on a city manager, council person, mayor or police chief and keep the pressure on up until that person assures his loyalty and then move on to the next victim. stuart: regular varney & company guest and union defender phil

dine demanded proof that the union was actually involved. listen to this. >> show me the cases where that intimidation has been shown, not claimed, to have existed. stuart: see where we're going with this. now the l.a. times finally gets around to covering h story. -- this story. here's the paper's description of the law firm that the police employed at the time that the mayor was falsely accused of the dwi. stuart: phil dine author of state of the union is again with us in d.c. is that enough concrete evidence for you, phil? >> good morning, stuart. first let me commend you for sticking with this issue. i think too often tv shows flip from one issue to the next.

i want to applaud you for sticking with this. it shows you're serious. that doesn't however mean that you're entirely right. i hope to be able to help you on that. last time i was here, the way the mayor presented this about his altercation with police -- not with police, but with a law firm that supposedly made a call that he was driving drunk and then he talked about move on to the next victim from the play book, it made it appear to me as if he was saying that the police on the job were intimidating public officials and looking for victims until they agreed with them. having read what's in the l.a. times, what it seems to be is more of a political campaign. they take out billboards. they write letters to the editor, and they make their views known. that's entirely different. stuart: two points, the police union employed this law firm which in turn employed this

private investigator who in turn made the false charge against the mayor. that is a fact. second, the mayor -- the play book that the mayor uncovered is a story about how to intimidate your opponents. that may be legitimate, but intimidation is exactly what it is. i don't think this is a moment where the unions should be proud. i think this is a moment of disgrace. >> let's be nuanced here. intimidation by police -- >> no, this is the play book for them to intimidate public officials. i think that's wrong, phil. >> let me finish my point please. if it's intimidation by officers on the job arresting people and threatening them, that is 100% wrong. if it's intimidation of the kind you're talking about, i'm also not entirely comfortable with that, if it's happening, because police are in a position of responsibility.

i'd like to see however where that's happened. and the fact that there's some play book -- let me give you an example of why people shouldn't be held responsible for somebody else's play book. hundreds of corporations around this country employ union avoidance law firms, and in their play book is the way to win a union election in your place is to avoid letting workers have the vote in the first place. and here's how to go about skirting the law. i don't blame the companies that hire those law firms, because that's in the law firm's play book. stuart: all right. i hear you, phil. i have 30 seconds left. i'm glad you are here to represent your side of the argument. you do it very well. i appreciate that. i've got 30 seconds left. i want you to tell me and our viewers what you think of the chicago teachers union. >> oh, boy. i think that unions have not done a good job in this country communicating with the public about what they are trying to do, and i think until they do that, a lot of people are going

to think that unions are in it for themselves. they are not necessarily doing that, but they've got to do a better job communicating why in this instance it's for the kids that they are partly fighting. stuart: i don't think they are fighting for the kids, frankly, phil, and i don't think most of our viewers think that they are really fighting for the kids. they're fighting to control the education, and it's a poor education they're offering those children. that's my point of view. phil, look, we always come to you when the unions are at issue, and you give us a fair accounting of your side, and we appreciate that. phil dine, everybody. thank you. >> pleasure to be with you. stuart: okay. the mainstream media will blur what mitt romney was caught on tape saying about americans taxes and entitlements. it is the latest example of the difference between the two candidates when it comes to the economy. next, a new movie about to hit the airwaves that has a clear message on obama's america. >> i voted for obama.

>> my husband, my family, we voted for barack obama. >> the party is over. the smoke has cleared. >> he didn't come up with any solutions. >> he didn't make good on any of his promises. >> he promised to change. [inaudible]. ♪ ♪ [ male announcer ] how do you engineer a true automotive breakthrough? ♪ you give it bold new styling, unsurpassed luxury and nearly 1,000 improvements.

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to go. alpha natural resources say it is cutting production by 16 million tons, that includes the closing of eight mines in virginia west virginia and pennsylvania. that stock is up a little. the latest rasmussen swing state poll has romney ahead of president obama 47, 46. the swing state poll, that is. and today marks the third day in a row that the governor has been in the lead in that 11-state tracking poll, which hold by the way 146 electoral college votes. speaking of the election, can an anti-obama movie actually change voters' minds? a very important discussion because that is the topic of debate by mitt romney. next.

stuart: a new senate report says that 25% of social security disability payments were improper from 06 to 2010. meanwhile, mitt romney coming under harsh attack from the mainstream media after a leaked video shows him saying that 47% of voters are dependent on government entitlements and won't vote for him. but now a new anti-obama movie by citizens united will air on television. it shows voters disappointment in the president's record on the economy. here's a clip: >> i voted for obama. >> i did vote for barack obama. >> my husband, my family, we voted for barack obama. >> the party is over. the smoke has cleared. >> he didn't come up with any solutions. >> he didn't make good on any of

his promises. >> he promised to change and -- [inaudible]. >> david bosse from citizens united made that movie and joins us from washington, d.c. david in the clip from governor romney that was released, the privately and secretly recorded clip, romney says i can't get this group of people to vote for me, 47% of them, they don't pay taxes. they depend on government. they are not going to vote for me. your movie says the exact opposite. go. >> well, really, stuart what we have found is a group of people, this film is made up of 40 democrats and independents, all of whom voted for barack obama in 2008. and over the last year have decided much more in sorrow than in anger that president obama has failed, and in fact his policies have failed. that's really what their gut check is telling them. that's what our film says. these people, these democrats and independents who we met

across the country in these battleground states really articulate the hope that these 47% have. these 47%, and i believe what mitt romney is saying, and i didn't hear the exact footage -- i've heard it paraphrased, but the bottom line is i think he's saying, barack obama has grown welfare, has grown the unemployment rate, has grown food stamps, so he is putting more people on the government -- more people who drink the water than carry the water. i think that's an important distinction. americans, all americans and this is what mitt romney i think is trying to articulate want the opportunity to do well, want the opportunity to make a better life for themselves and their families, and become part of the 53%. stuart: you're saying that americans are still aspirational, half of us may be getting something from the government, but we don't necessarily want that kind of america, we want the aspirational america. >> that's right.

stuart: let me ask you about the people that voted for president obama and now they've turned around and won't vote for him. was it hard to find them? did they come to you or did you have to go around to get them? >> we hired two democratic strategists and pollsters to help us find democrats across the country. we did focus groups across the country with thousands and thousands of people participating. we got it down to only 40 stories. we thought we would have fewer. we had so many that didn't even make the movie, but 40 independents and democrats from these battleground states, and it is really a cross-section of america from their social or economic place -- economic place. it's truly a cross-section of america. i hope people get a chance to watch it. we have secured -- stuart: how is it going to be released? >> we are going right to television. this evening on hd net movies i hope a lot of people have that as well as five other cable networks in five local broadcast

stations are putting this film starting this evening on television. people can go to the hope and change.com and look in their local area where the film will be playing, in their homes. stuart: david bossie, we hear you, thank you very much for joining us sir. we appreciate it. >> thank you for having me. stuart: my take on mitt romney, the mainstream media and the truth. my take on that is next.

stuart: all right. here it is, my take on the mitt romney tape. i think it has done two things, one, revealed the truth about the nature of president obama's america. and two, revealed the truth, yet again, about media bias. governor romney is dead right, there is a victimhood in america today, there is a feeling of entitlement. you have got it. i want it. and the government will take it from you and give it to me. that's right, president obama has encouraged that. that is why mitt romney expects the voters, the takers to vote for the president. isn't this the key issue in the election? what kind of america do we want? governor romney has told us the truth, and he's gone right to the heart of the debate we should be having. then comes the media. there has been an almighty rush to condemn mitt romney, not the entitlement nation, oh, no, they are beating up with glee on mitt

romney. he is denigrating the people, they say, he should back down. remember those reporters colluding on how to attack him after romney's statement on the mideast? they think that telling the truth about our food stamp dependency nation will lose the election. they want romney to lose. they want him to lose. the elites again go left. they are for the president. no question about it. i think this will be seen as a win for romney. we should be discussing what kind of america we want. and we should tell the truth even if it hurts. tdd#: 1-800-345-2550 when i'm trading, i'm so into it,

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