david: off the kefk. desk. they are lowering four cases of their wine one of their best to the bottom of charleston harbor. the look how sway motion of water, temperature, impacts the aging process and of course the taste. they will retrieve the wine in three months and have it chemically tested and tasted by experts. i wouldn't mind trying that, sandy. sandra: the number one thing to watch will be the markets. s&p is on track to break six weeks of gains. the longest winning streak in more than two years, david. david: "money" is next. >> i'm adam shapiro in for melissa francis. here's what's "money" tonight.

red alert from wal-mart pound its bottom line and customers. with consumers are pulling back should more businesses duck for cover? we have a "money" power panel of business executives to give the real story. plus, now just seven days until the sequester. the economy already lies in its cross-hairs. is your 401(k) even more at risk? why you may want to check your portfolio. and we'll drink about anything to score a caffeine kick but you would rub jell on your skin to get a bigger energy high? a breakthrough hopes to revolutionize a multibillion-dollar industry. shark tank's damon jobs is one of the guys behind it and he is here in a fox business exclusive. even when they say it's not it is always about money.

adam: melissa francis is on vacation. i'm adam shapiro. we'll start tonight with a warning from bellwether wal-mart t says they're facing a sluggish start to the year because higher payroll taxes and higher gas prices are weighing on sales. here's what one wal-mart executive said in an e-mail to his colleagues. in case you haven't seen a sales report these days, february, month to date sales, are a total disaster. the worst start to a month i have seen in my roughly seven years with the company. now we all know that when wal-mart gets hammered, it's not good for everyone else. so today we have a business executive "money" power panel to get to the real stories bottom of all this. tom stenberg, cofounder and former ceo of staples. can thin montan ceo of fastsigns and clint greenleaf. founder of greenleaf book group. i want to welcome you all to "money". let's start about the payroll tax increase. let me start with tom first.

clearly they said it was having an impact. they said it is a small increase but even that small increase is hurting average americans. >> remember, it is not just the payroll tax increase. overall tax rates are going up on a good portion of the middle class who works for small business, who gets taxed at the sub-s rate. you have the obama tax, obamacare taxes kicking in and you have worries about how obamacare overall will affect your health care costs and what the employer will do to you. when you create that uncerttinty people every time in my long years of retailing cut back. adam: let me go to catherine, your employees, are you seeing them pull back? are they complaining about the less money they take open in their paycheck because of these tax increases?. >> well, certainly taking 2% off of anybody's paycheck will have some effect on them. there is no doubt that rising gas prices are having an effect as well. but at fastsigns we're not going to pull back because

what we do, we help local businesses generate new customers and sell more to existing customers. so our franchises around the country are getting ready to help their local business owners drive new traffic and get new business. adam: are you seeing the local business owners you do business with, are they very concerned have new business? the word that wal-mart executive said was, disaster. >> we're up over 4% over a strong january last year. we're not actually seeing the effect yet. if you look at our preliminary february numbers they're strong as well. but as any good ceo i'm concerned about the macroeconomic situation and am, you know, watching and seeing what we could do to support our franchises if we get into that horrible double-dip thing we're trying to avoid. adam: clint, let me go to you at this point. a quote from that e-mail that was leaked, several e-mails from wal-mart. at end of one of them, they

say where are all the customers and where is their money? this is a valid question. are you seeing this among your clients, and among your customers? >> thank god we haven't seen it yet. i can tell you, adam, if wal-mart is going to feel it we're all feel it. they're a great bellwether for this. if they're starting to see this on the horizon we ought to be very frightened about that. adam: let me ask you this. if i'm a business owner and i'm worried about demand and i see consumers not spending money, i may not want to expand right now. we're hearing that loans from banks are actually up. they were up in the fourth quarter. snl financial actually put out some statistics where they talked about 1.45 trillion in business loans on the books in the third quarter. and loans in the fourth quarter up 4.4%. you think businesses might hold back? are they having trouble getting loans? are they going to be more discouraged by this lack of demand by consumers who have less money. >> i'm kind of flummoxed by the fact that banks are giving money.

doesn't make any sense why they would. if you're a small business and so one is offering money at low rates i say take it. because you will not get it much longer. i think this will change very quickly and we'll start to see rates skyrocketing up. adam: tom, i want do ask you about rates skyrocketing up. i recall over and over again hearing from business owners that they couldn't get loans. now there are articles are in different papers they're getting so manyyoffers for loans that people are worried that perhaps the qualifications for a loan are being overlooked. is this a danger that we face? >> well i think you have to really segment what you're talking about. when you talk about large, profitable enterprises, there's a lot more loan availability there today in the markets becoming quite competitive. for smaller businesses particularly those with customer profitability, we have some portfolio companies at the consumer fund that fit into that bill it is still challenging to get loans. it is more accessible than a year or two ago. it is much more challenging

than over long periods of time. that is a problem. adam: let me ask you. would you agree with clint, now is the time to strike if you're a small business, get that loan while the get something good? >> absolutely. in general we tell our companies and, i learned this at staples and other companies i was involved with, raise money when you don't need it. when you do need it is when you can't get it. adam: let me go back to katherine. why would you raise money if you don't need it, if demand, i realize your clients, that demand is good. but look, wal-mart's demand, they're talking about demand, knot not destruction but people pulling back. why would you risk having debt at a time markets may not be growing? >> well the interest rates, the interest rates being offered on debt are considerable low if you look at the historical perspective. i also think in weak economies or sometimes down economies that's the time to strike to advertise, to build your brand and to get market share from your competitors. so, while i might be concerned about the

macroeconomics i also think it might be a great opportunity for us to grow market share. adam: so, let me ask you, clint, is this an anomaly, what we saw out of wal-mart? do you think we're going to see a pullback across all kinds of retail outlets as well as into the next quarters, people not spending money because of tax hikes? >> i think it is highly likely we'll see this continue to get worse before it gets better. as long as there is a war on business and taxpayer we'll have serious troubles before it gets fixed. adam: i want to turn attention to something that got a lot of headdines regarding the u.s. worker, the most productive worker throughout the world. according to labor statistics, bureau of labor statistics, average american works roughly 34.4 hours. a lot of us work more than that. there was a comment from a ceo recently about doing business in france and he was very, well he pointed out that french unions make it very difficult. but we actually asked a

question and found out in france the average employee is working 37.5 hours. take it for what it is worth. the source of that was the labor force survey. but at end of the day the american worker is very efficient but is getting squeezed. i mean, tom, what does the american worker do? 20 more dollars a week for gas. 2% off the paycheck in taxes. where do you cut because that's what is happening? >> i want to come back to something you showed on your screen which i know is per se wrong. in france, as a matter of fact, in law, if your employee works more than 35 hours a week you go to jail. who ever people working 37.5 hours a week they're on your way to the clink because you can't do that in france. >> i'm glad you pointed out. most statistics the american worker is most efficient, most productive worker on the planet. the american worker is getting squeezed. as i wrap this up, i will

give each of you one last question. let's start with tom. what happens in the future? does the american worker make it through this? we have more tax hikes coming from obamacare. >> ooh i am worried about taxes and also worried about regulation. at job creators alliance we're looking all aspects how do small emerging enterprises begin to create jobs. to do so, we could talk about taxes. we could talk about simplifying taxes but we also have to talk about regulation. i mean regulations of all kinds. sarbanes-oxley, dodd-frank, epa, osha. we have to talk about getting an environment that does not resemble france in that aspect of business life. adam: clint, what about you? do you think the american worker, we need a tax cut or you think the american worker is in for a worse go of it? >> i think france is reading the same book we're reading. we're a couple chap terse behind them. as long as you have unholy marriage of government and unions. it is government and unions

versus government and unions. adam: catherine, you get to wrap this all up. do you see this is getting better for the american worker? >> i will always believe in the american worker and american people and i will remain the optimist. we have an election coming up in two years. maybe we can have a sea change and get some better heads in washington making some better pro-business, pro-growth decisions because it is all about growth. it is not about --. adam: all about growth. >> by allowing businesses to unleash their growth potential and hire employees. adam: absolutely. thank you all for joining us here on "money". have a good afternoon, good evening. call it an unintended consequence of obamacare. by offering cheaper health care for the elderly, the sick and poor, the logic says insurance rates for the young, for healthy people are likely going to jump. now some estimates by as much as 30%. which means we might see a lot more young people decide not to buy insurance all together. even states and individuals that supported the bill are sounding the alarm.

that changes need to be made. or health insurance will get a lot more expensive for a lot more people, a lot sooner than expected. joining us now, maryland congressman andy harris. and for instance, congressman harris. oregon's insurance commissioner supported the affordable health care act but now says you might see insurance rates go up as much as 30% over the next year. they're calling this rate shock. is there anything that can done done -- be done to prevent it? >> adam, you will see rates go up especially on younger workers because the law sets a maximum ratio of the highest insurance premium to the lowest. those young workers will choose not to buy the insurance. they will choose to pay the penalty. strangely enough, the number of uninsured young workers will actually go up. adam: young invincibles a group that supported the health care act brought this to the attention of the administration in a letter they sent back in december. most young people will receive protection from those increases through

subsidies but coverage such as dependent coverage and catastrophic plans but for those who don't get that, those subsidies, and roughly one million young people, they're the ones they are worried will actually not buy insurance. now what is going on is a rule change. what is it? now you can charge an older person five times what you charge a younger person but the administration wants to change it three times? >> no, it is three times now. the ratio is limited to three to one. so it brought down rates for older insured and brought up the rates for younger. there are bills before congress that would increase that to five to one ratio. keeping it affordable for younger workers. adam: doesn't seem fair to put the burden on backs of younger people, 18 to 29-year-olds, 60% voted for the president. >> they will figure out this insurance deal is not good for them. in the end that's what happens when the government goes into the marketplace and begins to set rates. younger folks really don't

have as many medical expenses so their insurance shouldn't be expensive if we want to encourage young are folks to buy insurance you have to keep rates low. the rates have gone up by double digits. some places here as much as 22%. affordable care act hasn't even kicked in. adam: cbo says by 2016 on average nationwide premiums will go up ten to 1%. i thought this whole thing the affordable care act was supposed to drop the cost of insurance. >> that was the promise. every american knew you can't insure tens of millions of new people for a lower cost. it doesn't work that way in the real economic world. adam: so what are the chances that congress will fix this if it can be fixed? >> well i think we might be able to adjust that ratio, but even if you get past the ratio, all the other problems with the affordable care act, from whether or not the exchanges are going to be stood up on time this fall, to the, again the increase in insurance rates, even before the affordable care act kicks in, a the are

of those promises will be broken promises. adam: do you think young people might come midterm election remember the fact that they're paying a greater health care burden for the elderly than they are actually right now? >> i think what will happen, young people will not just buy the insurance. no, they will not see the difference. the only difference there will be fewer younger people insured, exactly opposite what the intended affect was. adam: representative andy harris from maryland. thanks for joining us on "money". >> my pleasure. adam: we want to turn our attention to the market moment. fears the fed will roll back the monetary stimulus weighed again on stocks. worst than expected initial business activity and jobless claims took a bite out of the major indices. the stocks pared back from session lows. but dow, s&p 500 and the nasdaq closed at the lowest levels since february 4th. coming up on "money", don't think the sequester could hit you where it hurts? meat lovers could be left hungry as congress cuts the

fat. a nationwide shutdown of meat and poultry plants could be looming. that is coming up next. can a breakthrough give you a bigger jolt thanned are bull? it could turn the multi-billion dollar industry on its head. the two men behind it join us exclusively with details. "money" and another cup of coffee coming up. ♪ all stations come over to mission a for a final go. this is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one.

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adam: jimmy buffet here on "money". here is something to think about right before dinner. how will you be affected by the sequester cuts? we would see 2100 fewer food inspections this year, according to secretary of agriculture tom vilsack. still want to eat the meat? vilsack said big furloughs for usda inspectors could result in ten billion in production losses for the meat and poultry industry. that is a small piece of it. this sequester hits every aspect of the u.s. economy including your most important economic indicator. the balance of your 401(k). how bad will things get if budget is slashed, we're at $16 trillion gdp and talking about cutting the budget $85

billion and which have all of these threats, right? here to talk about this is oppenheimer fund chief economist, jerry webman. i want to start with the possibility, is the administration trying to scare everybody or is this legitimate when vilsack says, the meat industry could lose ten billion worth of business? >> i think both sides are trying to set themselves up so they can blame each other because sequestration will start happening. doesn't happen all at once. it will take place over some period of time. i think both side are trying to set us up so we'll blame the other one for whatever they did or didn't do. adam: so we see how it will hit our dinner tables. how will it hit the retirement investments or investments in general? >> interestingly enough, if you look at what fiscal tightening we saw at end of last year did, the tax increase, the stock market loves it. the stock market loves a combination of tight fiscal policy and easy monetary policy. you and i might not like it but turns out the stock market kind of does. adam: the past few days we've seen a pullback in the

stock market that might have to do the federal reserve and i don't want to talk all about that. >> another time. adam: another time. are you telling me investors have priced in sequestration? >> i don't, well, i would have told you they priced in the fiscal cliff and the market went up 6%. so i think that investors have learned to pay less and less attention to the noise that comes out of washington. you and i love to talk about it, but the market has recognized there are companies out there in the u.s. and around the world that can make money in times when the fiscal policy, whether it is in the u.s. or western europe or wherever, doesn't make a whole lot of sense to rational people. adam: what is it? in this quarter the earnings are 70% of the companies if you believe their accounting are beating expectations. but let me ask you about that. >> sure. adam: as a potential investor. i keep hearing from some analysts that this stock market, my 401(k) and my mutual funds are overbrought. that we're going to have some kind of correction. you believe that, don't you?.

>> i don't thhnk it is wrong we've gone up a lot. things don't just go straight up even if they go up over time. sure we'll see some kind of correction. we may be seeing that right now. i'm fearful saying that too loudly to my investors and oppenheimer fund investors i don't want to see the correction happen from 100 to 1500. don't make big bets on short-term stuff. adam: getting back to sequestration, do you think there will be a back-room deal and a last minute fix to thing? >> i'm not sure there will be one before the 1st of march. i think what is going to happen, is some of this stuff will start happening. you willlsee meat inspectors. you will see long lines at airports. and then, you're going to start seeing instead of the meat axe, remember sequestration was designed to be so ugly that they would never do it. it is a meat axe. then what starts happening you start seeing more surgical cuts. i think we'll see cuts that look pretty much like sequestration through the rest of this year. adam: it seems counter intuitive people will lose

jobs through the cuts but in the long run is there potential sequestration could be a good thing? >> good, sound, fiscal policy. the government stopping spending things on, and by the way it is not just stuff other people like getting from the government, it is stuff you and i like getting from the government. i like security guards at the airport. you know, over time, if we're going to get that in line, that will be good for investors over, you know, over this year, over next year and in the future. we've got to get this under control. i think this is a step in that direction. adam: thank you very much, jer, thanks for joining us. chief economist at oppenheimer fund. melissa will be fun. you might have more fun talking with her. >> i like talking with you. adam: thank you, sir. oil futures plunged to the lowest levels of year. crude stockpiles rose much more than anticipated last week. the 2 1/2% dive was the biggest since november. it settled at $92.84. but oil's plunge has yet to

break the epic rally for gas prices. they have climbed 35 straight days in a row. aaa says the average price for a gallon of gas went up a penny overnight. it hit $3.78. oil demand felt 2.4% in january compared to december. data from the american petroleum institute demand dropped to below 18 billion barrels a day. that is lowest demand for oil in january since 1995. next on "money", is that quadruple expresso not hitting you hard or fast enough? a breakthrough product hopes to send energy junkies soaring. the two men behind it including one of the infamous sharks joins us exclusively. speaking of soaring, a proposal from president obama could send health care costs even higher. how new wage standards for home care workers has the industry bracing for the impact of that. do you ever have too much money? friday nigight, buddy.

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search, compare, and apply at creditcards.com. first round's on me. ♪ . adam: i'm about to tell you that you can forget downing five cups of coffee in the morning because people like me, i'm already on my 15th of the day, right? all day energy could be as simple as a single drop, a single drop of energy under your tongue. fuse science, up-and-coming company makes it that easy to get energy and vitamins. the breakthrough technology could end up revolutionizing the entire medical industry. more than a dozen pro athletes are already on board and is fubu founder dame -- damon jobs, from shark tank an brian from fuse science. they're both here in fox business exclusive. a pleasure to meet you both. brian, where did you get the idea to do this? explain this technology. how is it revolutionary? >> the team of scientists

involved with this company have been working on this for years, throughout their entire careers and the technology is, we think, groundbreaking in the fact that we can take actives and deliver them subliminally or transdermally. adam: in english, an active is the thing that gives me energy? >> exactly. it can be energy. it can be any type of nutrient or mineral. adam: the word sub lingual? >> sub lingual. under the tongue. you can deliver it that way. you can deliver transdermally. adam: a jell? >> exactly. adam: these are the products right here, right? >> these are the examples that use some of our proprietary technology. each one of these. this is our entry into the energy segment. power fuse product. new to the market. it absolutely represents the evolution of energy. and then in the sports drink category we have a electro fuse product, it delivers electrolytes. it helps an athlete prepare for their performance. >> i will give you to in a

second, damon. how is it better than gatorade? >> if you think about the materials of delivery of the technology, and this is what is special about our company. we have proprietary technology allows you in many cases to bypass the gi track and go directly into the bloodstream or provide a concentrated dose of an mineral or active that allows you to get the benefits much faster than it would be say, if you took a pain medication and you had to wait 45 minutes to work. adam: damon, how did you get involved in all this. >> i'm partner in many gyms and everything connected to it. my partners started to use the jell. they said unlike the topical, you know, products that, it soaked into the muscle. i tried it. and immediately, my pain went away. then i tried the electrolytes. everything from, when i have a bad hangover, it went away. i got immediate results. i could do something with it. you have a bunch of athletes working with you, tiger woods, david ortiz.

i said, i can get the public to like this and put it into popular culture. adam: you know, we have an advertiser here, five-hour energy drink, very popular. this is different than that. how so? there has been some criticism of some of those drinks. are you concerned that that criticism would impact these products? >> you know, that is a perfect question. this is why we sort of dub it as the evolution of energy. you know, in this technology actually we have half the caffeine that are in those products. we have no torin or any things associated with any other negative side-effects of that nature. it delivers it in a way that has no crash or no after side-effects. we're very happy that these products allow people to perform at their natural best. we're excited about that and the differ rented ages. adam: the technology allows you to cut the dose in half to get same effect. >> exactly. adam: than the older products. >> get it immediately. >> no one goes into anything

unless they can make a profit but i would imagine the implication for this just as it is are great but medically, pharmaceutical companies. if you have a faster delivery method for medication are you looking at this? are you looking at merging with a pharmaceutical? >> well, i think this is the first stage of it. i think this is the proof of concept and get people to understand the proof of concept and i think obviously brian has big, big, you know, goals for this. yes, this could be absolutely a game-changer with what it is currently doing, but, i mean -- >> to that very end. adam: you're talking to, you can't name but you're in talks to this kind of discussion? >> well, late last fall, in october we announced proof of concept. that we've been able to within our matrix actually deliver insulin through the eppy determine must and paxol, a host of different actives. we believe in our operation that we're only limited by our imagination.

so we announced in december a strategic licensing and m and -- m&a process we're with leading otc and pharmaceutical players. that is part of our strategy. this is stage one. >> so i kind of favored brian during the discussion, damon, i apologize. you get the last word. what is the most important thing you want people to know? >> i want people to know that i don't work with anything that is not a great product. the truth. i think i can make this a life-style product. i think everybody will know about it very shortly. it goes all the way back to the product. then he will have a lot of other extensions, licensing, branding. adam: love the idea of it. i thank you both for being here. i don't know if i can give up the 15 cups of coffee a day. this is intriguing. you both the best. take care. >> take care. adam: next on monn i, if soaring health care costs are not bad enough a new move could make it worse. a new minimum wage for home

health care workers could wreak havoc on the industry. china's cyberwarriors have penetrated the biggest institution. the white house promises to strike back. a former nsa official is here how to do it. "piles of money" coming up. ♪ to grow, we have to boost our social media visibility. more "likes." more tweets.

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♪ . adam: i remember when minimum wage was 2.35. that dates, me, doesn't it? white house has new prescription for health care workers and they are going full steam ahead to put wage and overtime standards in place for the industry. there could be a ruling next few months but the bottom line, is it necessary? why is the government getting involved in this right now? let's ask kirsten powers columnist with the "daily beast" and fox news political analyst. why are they getting involved right now? is it politics or sound economic policy? >> well, i have to say i was surprised to find out that the minimum wage didn't apply to these workers. i think that the better question to ask is why wouldn't it? these are people who are working hard. the minimum wage applies to a person who works in mcdonald's but yet it is not supposed to apply to a home health care person? adam: that's a good point. the exemption came about,

the staff prepared research in the '70s, when we didn't have as large a elderly population and need for as many home health care aids as we have. we're not talking about registered nurse, potentially we are, but they get paid far more than minimum wage. we're talking about people, my dad had heart surgery a year ago, somebody came by literally for 15, 20 minutes, and it wasn't every day. >> right. adam: but i always assumed the cost of that person what they were being paid was probably, when i heard that it might not have been minimum wage i was kind of surprised. i want to show you real quick, kirsten. we got some statistics about this. roughly 10% of the workers. this is unskilled. someone helped clean the house for my father, brought a meal, 10% get paid $7.89 or below. 50% of or more get over the $9 and that what is we're talking about raising minimum wage over $9.

the problem, criticism of doing that, a lot make a lot on overtime. there are concern businesses cut back on overtime, that they would lose extra income they're already getting from overtime. >> well, i mean those are fair points to raise but, i mean i think the unions are arguing in favor so they get the minimum wage. i don't know why unions would have any interest in their workers making less money. people shouldn't have to, i mean, it was better if they could work shorter hours for more money than working overtime to make up the money if that makes sense. the minimum wage is a floor. doesn't mean you can't make money over it. if you will have the floor, if you believe in that, which i do, you will have that floor for unskilled workers at mcdonald's i don't know why you don't have the floor for someone taking care of your dad. adam: listen, you're raising a good point but on the other hand, the flipside, 35% of these people are not getting what would be the

minimum wage. they're getting, over the currenn minimum wage but might their companies let go of some of them if the minimum wage is raised to $9 an hour for them? >> i tend to think this is such a growing industry and they need so many workers. this is the growth industry, the elderly population, that needs health care and needs assistance. i hardly know anybody who doesn't have a story like you have about your dad, whether it was my stepfather or my grandmother. so, i think that there is, you know, plenty of jobs, and they should just be compensated a fair amount and, you know, they should be paid for overtime and i think there should just be a floor on how much they make. adam: and i would point out from the registered as well as the unskilled person who helped take care of my dad he received excellent care including me cleaning out the refrigerator and cooking for him. >> much bigger issue you need 15 cups of coffee a day. do we need a intervention.

adam: i get enough lectures. thank you. next on "money" the cyber war on china heats up. new revelations that most washington institutions have been hacked a former top official with the nsa tells us how the united states could strike back. at the end of the day it all about money. ♪ we know all your investments may not be with fidelity, but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason serious investors are choosing felity. now get 200 free trades when you open an account. ♪

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adam: so the white house is taking the gloves off and threatening china over all of its alleged recent cyber attacks on american companies. those companies include gm and dow chemical. protecting american innovation is a top priority but pressing foreign leaders just isn't enough. we need to do more and joining me now is colonel cedric layton, former national security agency director and a cybersecurity analyst. welcome back to the show, colonel. it is good to see you. when people say we need to do more, how do you do more with a country that almost has us by the economic stranglehold? because the chinese, i will get to the statistics in a bit. they own a lot of our debt and we don't want to make them upset, do we? >> that is part of the problem, adam. great to be with you again.

you have a situation where they not only have us by the economic stranglehold but they also have a situation where they are trying to really go ahead of us in a developmental sense. so that is why they're stealing our intellectual property. what we're looking doing here, we have to respond in kind. and that doesn't just mean trade sanctions which in essence what is the white house is talking about. they can be increased by a substantial amount if the need is there. but it also calls for an active defense, an active way of approaching them and making sure they understand that the minute they attack us, either they're going to be attacked in the cyber realm or other consequences will occur to them. >> let me show the viewers exactly what i mean by economic stranglehold. the chinese are still the largest foreign holder of u.s. debt. december 2011, $1.15 trillion. the december 2012, it was 1.2 trillion. the japanese are catching up but the japanese are not nearly as much a cyber threat perhaps as the

chinese. if we were to retaliate, i got to imagine, correct me, if i'm wrong, that our security forces kind of do the same kind of cyber stuff back at them, don't we? and if we do, wouldn't they perhaps threaten us with those treasury, maybe dumping them and tanking our economy. >> well there is certainly a risk for that kind of tit-for-tat in this business, adam. what you're looking at, yes, we do have the capability to go after them what is basically a kinetic, not a kinetic but a computer network type attack attitude. if we engage in computer network attack, that comes an area we need to focus on and have some specific targets to go after. now, is something, while we have the capability of doing that, we don't do that unless we get presidential authorization to do that. and that in its big sense has never really happened. adam: so our options as you said earlier, trade sanctions. but do we even have the ability, as the biggest trading partner with china,

europe is their biggest trading partner, but such an important part of our economy, do we have the ability to do trade sanctions without hurting ourselves in the process? >> that is always part of the problem. there are certain good, for example, t-shirts or something like that, they will come in, you know, from china at a very cheap rate but there are other countries that produce the same kinds of goods. if you go after it. shirts, say get them from vietnam instead of china, then you have an alternative supplier and you can circumvent the chinese system. there is a way to do that. but in terms of cyber attacks, you have to really look at what is happening. what you have to do is you have to make it more difficult for them to go after our networks. that includes increasing our defenses. making sure our defenses are not only adequate, but also a step ahead of the game. that becomes very difficult. but the chinese as evident by the report that the mandiant corporation released earlier this week, the chinese are not a ten foot tall gorillas. they're basically just

humans like you and i. they do make mistakes. adam: you have to stand up to a bully. you have to stand up to a bully when you're being attacked. >> that's right. that's right. adam: colonel cedric, layton i have to cut it short and let you go at this point. really appreciate you being here to discuss this issue. >> my pleasure, adam. thanks for having me. adam: coming up on "money", who would think a $6 latte from starbucks would actually be a great deal of the company set as new record for its most expensive drink ever. here is the most unsettling part, it includes bananas. stay right here for this one. you can never have too much money. ♪ . tdd# 1-800-345-2550 you should've seen me today.

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♪ . adam: what song is this? time for a little fun with spare change. we're joined by a power pair. my usual "spare change" partner in crime, monica crowley, the goddess as melissa calls you. fox business's david asman. thanks for being here, david. loose lips. straight shooting ceo of tight nan international is not holding back his opinion on france's work ethic. he was not france's industry minister to

operate in a country where workers are paid out which is for basically only working about three hours a day. can you believe the backlash. by the way, going to be speaking to him. up to your button to second. should recall about? >> i wages for three hours of work. as nice work if you get. 100 percent correct. we go into these other countries with an american work ethic and expect that same performance. >> must protect workers in the world. >> i know. and what he is seeing is an industry dominated by the french unit, in this case which is an actual -- back by the communists and france's communist back unions. no surprise their saying that they didn't even want to save jobs, even at the price of extending there work hours. it would not do it. >> also, in power by the french government, but the leftist french government which is a big fan of socialism. it also communism. they're not going that far, but what is beautiful about this, is

delicious to see a french minister, an entrepreneur ship, wherever they call him, trying to lower this guy back. oh, please come back. will up to deal with this. and the guy says, forget about it. there's no way of going to be doing it. this is only the tip of the iceberg. this is happening time and time again of. a lot of companies are moving out. might happen here. wait a minute. when did they lose their way? >> the country that we're following. it lost their way it when they went for national health insurance, when they went in the san direction that we're now going. we are at risk of becoming what france is now if we go in that direction. our industry is lost as well. >> and plenty the last word because after remind everybody, going to talk to the man himself, maurice taylor, ceo of tighten international on her show coming up at 6:00 p.m. no, i love it because of coffee.