dagen: playing nice. i took some more mins from your office earlier. thank you for those. i sat in her chair also. i am dagen mcdowell. forget about it. some people think gasoline prices are not high enough. new standards expected to drive prices even higher. arrested. michael steinberg was arrested. he worked closely with stephen. he is expected to be arraigned today. paying off the debt. the north korean threat is growing. troops preparing missile for lunch and cutting out communication with the south. senator scott brown. the pitch today on spending more

on infrastructure. senator brown wants to know how we pay for all of this. those stories. who is your daddy? syracuse, that is. ♪ dagen: that orange shout out was for stage manager who did manage to show up at work today. we are open for business on the fox business network that is good friday, but the markets are closed today. pain at the pump. announcing a new rule that calls for cleaner gasoline that would cost you more in the next time you clean up your tank. peter barnes has more on this story. peter: the epa has just released this proposal. it is a plant officials say will

lead to cleaner air and better health, but also higher gas prices. the proposal will be available for public comment and the epa will hold some hearing on this together further evidence and input from the public. congress is planning to review this as well. ed whitfield suggested he will be holding hearings on it. he said it is out of touch for raising prices at the pump as families continue to struggle with high gas prices. it would reduce sulfur in gasoline by more than 60%. it would reduce nitrous oxide by 80%.

it would go into effect in 2017. dagen: thank you so much for that. peter barnes in washington who knows more about gasoline prices than anyone in this country? tom kloza. he is joining us now on the phone. what do you make about this move? how much do you think it would drive up prices? >> i think both sides are right. refineries have been pretty prosperous. under normal circumstances, just a few cents. it is one of more moving parts that can okay so late send prices up by tens of sense per gallon. the good news is it does not happen until 2017. we will have flying cars by then. dagen: let's hope. in the near run, what do you

expect about the direction of prices? the average price right now is $3.64. >> it is lower. there are a lot more deals. if you are really out there shopping for gasoline, you probably pay 30-$0.50 less that what you did last year. we are probably paying $150 million less per day than we were last year. the interesting thing is, we have had this price break for gasoline for the last month, yet demand has dropped. dagen: demand is going up? >> demand will go up as we get into this, but versus last year, demand has dropped. something happened in march. may it is the bad weather. maybe it is some bills to pay

for tax refunds. people are not doing as much discretion all driving as they were last year and that is considerably less than a few years ago. dagen: gas prices that are at a high level and kept there, sustained high, if you will, demand has fallen significantly since the financial crisis. is this the way to get us to use less fossil fuel? >> well, we are using less. i am not sure if this is the way. it may take a more significantly high pricing point if you are looking conserve by making people pay more and that is where they will cut back. this is part of the clean air effective and it may be too much

about nothing. the industry may be crying wolf. it is a puppy that can turn into a wolf in the right circumstances. dagen: thank you. have a good and. >> you to. go florida gulf coast university dagen: you have to go on chap chair for syracuse. the "wall street journal" catching the arrest of michael steinberg this morning. a close adviser of sat capital billionaire founder and head steve cohen. he was arrested on insider trading charges.

these are criminal insider trading charges. s&p released a statement saying mike has conducted himself professionally and ethically during his long tenure at the firm. we believe him to be a man of haggerty. a judge has said that one of those settlements on hold. a wrench thrown into that settlement. we will continue to bring you the details on this story as we get them throughout the day. again, criminal charges on insider trading usually a very high bar for prosecutors to me. the fbi and justice department moving ahead here and to stay out of the slammer yourself, you better pay your taxes. this is the amount that goes unpaid, unreported.

a deficit of $17 trillion that that is no drop in the blog. joining us now is scott hodge. why isn't anything done about it? >> it is so hard to get that last dollar of income. you have to raise the compliance costs on everybody in order to get the people in the sort of cash economy to fess up and provide all their income to the irs. this would further increase their compliance burden. a lot of people think that is far too much to get that last dollar of taxes. dagen: even though we talk about these big numbers as a nation, we have some of the highest compliance levels in that entire

world. we are complaining about, well, nothing. speak it is a bit ironic. we have seen attempts in the past. most recently, with the affordable care act which had the increased requirements for businesses to provide 1090 nines to people they pay more than $600 for services. that created a huge backlash in the businesscommunity. we can see that even these small towns to try to get at the underground economy are met with a lot of complaints by the business community because of the higher compliance costs. dagen: who are the biggest barters of tax laws? who are the biggest cheats?

couldn't the irs focus on certain routes of individuals? there are lots of people in the cash economy. they often get paid in cash or by check and simply do not report all of that income to the irs. it is really hard to get at that. you really do not know how much is out there. it is simply unreported. do you believe if you made it easier to file your taxes, would that help in terms of overall collections by the government? >> it really would. the cause of a lot of this is the high rates and complexity that brings a broad a lot of this avoidance. we have seen in other countries that have moved to a flat tax where they have seen the amount of revenues go up because of the

incentives to avoid the attacks go down when you move to a similar tax with a lower rate. dagen: scott, it was great to talk to you. have a good weekend. be well. former senator scott brown standing by. the cyber threat. how safe is your mobile phone? we have the best and the worst when it comes to keeping your information private. ♪ how do traders using technical analysis streamline their process?

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dagen: welcome back, everybody. president obama heading to florida today to push for a plan that calls for increased

investment in infrastructure. former republican senator scott brown of massachusetts wants to know just how the president plans to pay for this. it is good to see you this morning he keeps hitting the infrastructure spending. it came up during his first four years. he will get it, will he not? eventually. >> here we are in sequestration. they cannot come up with the money. the sky is falling. all the faa towers are closing. he wants to put another 30-40 billion into infrastructure. the problem is, they do not prioritize. they need to have a test. number one, will this help create an environment to help create jobs by businesses

wanting to relocate there? is there a public private partnership used to maximize those dollars question they need to make sure it is a good plan and solves a real problem. dagen: some of the ideas do evolve trying to bring small businesses into this. encouraging the private sector to spend more on highway projects. do you think, though, people and the republican party would get on board with something like that? >> first of all, my question is where has the president then on last four years with these issues? trying to get dollars out the door. we did a stimulus bill, do not forget. it did not work. for all intensive purposes, it did not work. now he is calling indirectly for another stimulus.

i think it hit those parameters. does it solve a problem? i agree with the president, there will be -- everybody has some in the game. make sure you done it timely, properly and get a good value out of those hard-working tax dollars. dagen: the imf idea of a global gasoline tax. to that point, our gas taxes have not gone up. do you think that the democrats and the white house will ever be bold enough to stand up and say, i want to spend money, but i want to pay for it. >> i have to be honest with you, before the federal government

takes another penny out of my pocket, i think they need to reestablish trust with the american taxpayer. federal government is not a good steward with your money. let's fix these things first. let's look at entitlement reform. then let's come and say, by the way, if we do this, we will this amount of value which will create more jobs and revenue. dagen: it is regressive and it is the one tax and the one tax increase that makes every single voter angry. senator, it is good to see you. former senator, scott brown. good to see you. j leno can stop talking about the executives at nbc.

more people keep watching his show. the latest on the very public issue going on at nbc. when it comes to cyber threats, odds are you are walking around with a phone that causes threats. ♪ i'm a conservative investor.

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>> just about 23 minutes past the hour. i have your fox news minute. russian president attended an exercise with the military. they say the exercise was intended to check quick response capabilities. reports from south africa say former president mandela is in good spirits and make progress during his treatment for a recurring lung infection. he was admitted wednesday night. it is his third trip to a hospital sent december. owners cut off from their homes

following wednesday's massive land slide. the landslide displays 200,000 cubic yards of earth. owners are afraid of looters and want to know when they can get back into their homes. the sheriff's office providing extra security. that is your fox news minute. back to dagen. dagen: happy either. happy easter. >> how about this? happy mardi gras. dagen: that is february. thank you. yesterday, we spoke to one of the bigger bulls on wall street. our next guest only sees the s&p going to 15,075.

that is not very bullish of you. why are you not very optimistic? >> at the beginning of the year, we were very bullish. we are still overweight equities at this time. you had this huge liquidity rally. you the story. you have not seen a transition to more of an earnings driven rally. in fact, for q1 of this year, you will have roughly flat to negative earnings rose. q4 and q3, last year, they were lackluster as well. we are seeing improvement in the economy. it is limping along. it is below trend. dagen: are you more positive about u.s. equities versus the rest of the world?

>> and was certainly amplified by central bank intervention. it was not an economics drawn rally. what we are trying to do here, as portfolio managers, we now hit our price target, we are moving up the quality spectrum. it is more quality kind of bonds. dagen: you talk about the federal reserve and you talk about joe banks around the world. investors will not know. do you believe they will get caught by surprise when the fed decides it will backing off all the juice it has pumped into the

economy? everyone talks like they will see it coming and they will startling stocks and everything will go smoothly. it just never does. >> when they start paring back their buying program, that the economy will already have the get up and go of a self-sustaining rally. unfortunately, you have not seen that. the fear trade came back in. i suspect, julie well into 2014 and start to wind it down into the mid- part of 2014. dagen: a show of arms and

cutting off communication with the south. more on the growing threat with north korea. you'll cyber threat. the best and worst phones when it comes to securing your information. we keep you safe and we keep you mobile. coming up. ♪ [ lisa ] my name's lisa, and chantix helped me quit. i honestly loved smoking, and i honestly didn't think i would er quit. [ male announcer ] along with support, chantix (varenicne) is proven to help people quit smoking. it reduces the urge to smoke. it put me at ease that you could smoke on the first week. [ male announcer ] some people had changes in behavior, thinking or mood, hostility, agitation, depresd mood anduicidal thoughts or actions while taking or after stopping chanti if you notice any of these stop taking chantix and call your doctor right awa

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dagen: north korea after the rockets join south korea in military drills. taking the jazz is better ratings at least for jay leno. he was useless in the post season but the yankees alex

rodriguez is set to make more than one entire major league baseball team and that is pathetic. more breaking news on s ac capital, new video from a false street journal, catching the arrest, michael steinberg, happening again when it was still dark outside on park avenue. steinberg, billionaire founder and chief steve cohen was arrested in his apartment early this morning and insider-trading charges. sine die is charged with conspiracy to commit securities fraud, counts of securities fraud. as ac released a statement saying mike has conducted himself professionally and ethically during his ten year term. we believe him to be a man of integrity. steve cohen agreed to pay a $616 million civil penalty plead to weeks ago to settle two

lawsuits, a judge has put the settlement on hold them added that the a lot about the case the justice department has built against michael steinberg. north korea's leader kim jong and moving missiles into place after the u.s. joint military drills in south korea. what to make of this? an adjunct fellow at the man had an institute and fox news contributor joining me now. he is like peer old dad but scarier. how do we read into this? we have taken the step of sending those stealth bombers in a flyover of the korean peninsula and now we get reaction from north korea. >> everyone understand we have to take these threats seriously even though in the past it has been a lot of hot air usually,

but not always. this is a different young leader. we still don't know enough about how this young north korean -- he may have dilutions of grandeur. what we do know is north korea definitely developed their arsenal. they conducted their third nuclear test in february, they have launched satellite into space even though it didn't succeed, they did manage to launch a payload. they are steadily progressing and moving forward. they have a very nasty habit of welcoming every young south korean president with some kind of display of military force. they may be testing in to see what he will do. that is very dangerous because since 2010 when the south koreans lost 46 sailors they're not going to turn the other cheek anymore. dagen: what about our action and reaction to this? defense a kerri check hegel said

the mission was not a provocation but the white house is worried about what they're seeing >> moving in a new direction should signal american concern, the flights, missions beyond that. what the americans are really worried about is what message the south koreans and the japanese will draw from this because if they believe the united states will not defend them, it is very likely that those in their own countries who have been saying their own nuclear weapons will become stronger, the united states does not want to see that happen. dagen: that is how we read into military drills we have been conducting with south korea. we stand with them and that is a show of support. >> we have their back.

president obama wanted to have the. i don't think this is what he had in mind that it is being forced upon us by north korean behavior. dagen: kim jong un's father when he would be paid in similar fashion during his leadership, wasn't it meant to extract aid from the united states? could that just be what the leader expects to get out of this? >> we don't know what he expects to get out. dennis rodman may have a better sense of hat is on his mind. it is the most dangerous period when you don't know what their reaction is likely to be to a test or a normal girl rescheduled exercise. if you don't know how he is going to interpret that the prospects or potential for miscalculation really escalates sharply. we have to be very very careful that people don't misread

signals here. 2010, the north korean attack on south korean navy ship, that was not just fun and games and hot air. 46 south korean sailors died. dagen: it was not fun and games when dennis rodman was sitting next to kim jong un and. i never found that amusing. that is going to be our ambassador and tell the president to call me, the entire thing -- >> very scary. his father always understood that the cost of any confrontation greatly outweighed whatever benefits north korea could achieve. we don't know the sun is making the same calculation. dagen: great to see you. have a terrific weekend. the consumer financial protection bureau reporting bank of america account for 30% of mortgage complaints by borrowers since december of 2011. fifteen thousand complaints reported with two feared the filings related to bank of america's handling of loan

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down latest and greatest devices. what i they targeting now? shibani joshi has interesting findings in a new study. shibani: we may not know where that hackers are or where they come from but we know they like to be where all the smart phone users are and a new study distilling the smart phones with the greatest number of vulnerabilities over the last 25 years and a big surprise to myself and a lot of viewers is iphone topped the list.

according to the study of 81% of vulnerabilities, vulnerable these means security flaws over the last 25 years, and pull it at number 2 and windows and the blackberry round out the bunch. as far as trends go you may be surprised both blackberry and windows phone had seen a decrease in the number of laws that they have seen. part of a reason is it has to do with security but also an interest of the hacker, more interested in exploiting flaws with the greatest number of users, more android phone is out there than the other phones. i did speak to the author of the study this morning and one thing he wanted to clarify was vulnerability don't necessarily mean a successful attack. commanies like apple pass the data and fixed the flaw and apple has become a market leader when it comes to security saying apple didn't focus much on security when they first released the iphone.

they made significant improvement and can be considered the current market leader. there you have it. attacks don't necessarily mean that. dagen: shibani joshi in our newsroom. cyberthreat in the palm of your hand, your phone is vulnerable but a new study suggests your iphone is not the worst. android attack skyrocketing in 2012 and expected to climb higher this year. tom kellerman is joining us from washington. of the major phones that we know, are android phone is the most vulnerable to malware? >> they are in particular because of the fact that 23% of the apps for the operating system are either high risk apps developed for information stealing or they have these things called premium services which allow the attacker to use applications on the device to charge high rates for text

messages or phone calls and monetize the system on your device. dagen: a google operating system and phonemakers themselves? >> not so much the operating system even though the operating system can be made vulnerable as you saw with apple statistics. company the beginning to build security technologies that allow you to validate and that the security of the applications that are running on those devices so easily you could insulate the devices from attack that could be leverage from the apps and that is called mobile application reputation services. most users should recognize the need the added layer like when you buy a pc or apple in today's environment you should have a virus scanner and software based security but most mobile users are not aware of the fact that they too need this and they're being targeted as well. dagen: talk about your safest

devices, blackberry, small consolation to people who are using them at work particularly if you are talking about the z 10. >> your viewers are very concerned with security and privacy of their conversations i am sure and blackberry is by far and away the most secure operating system out there. they have invested heavily in that and evolve that. you need to be aware in today's environment if i hacks your mobile device like internal microphone because your calendar says a board meeting five minute. if your location set your any sensitive facility i can turn on a microphone or video camera because i have friends on. or some applications that allows you to communicate with work but your data can be stolen. i can hack your life from your device. dagen: it is the ball in the middle somewhere? >> it is probably second. second by a significant amount. blackberry far and away you are

serious about security if you do finance for a living and work for a fortune 100 organization i recommend you appreciate their security. dagen: thank you for being here. great to see you. have a terrific weekend. all right. for all you yankees fans, alex rodriguez, the list as highest paid athlete in major-league baseball for the thirteenth consecutive season. the third baseman will raise in twenty-nine billion this year but hasn't taken the field yet. recovered in hip surgery and isn't expected to play until the all-star break midsummer. a-rod will make more money than the houston astros roster combined. the total budget is $25 million, and and that is first baseman who is slated to earn

$7.2 million this season. can you say overspaid jerk? i can because i like the mets and i cry in to my pillow every night. fighting for your job is ratings if you are jay leno. details ahead. on this good friday before easter jeff flock is talking bargain-basement. jeff: pour in the budget bad, poor in the oven for easter big business. look at the line outside the honey baked ham store. when we come back on the fox business network, will introduce you to the grandson of a man who invented the spiral ham slice. only your. stay tuned. you don't want to miss it. . stay tuned. you don't want to miss it. here . stay tuned. you don't want to miss it. . stay tuned. you don't want to miss it. friday night, buddy.

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dagen: they say no breath is bad breath and after taking it on the shin jay leno is watching his ratings hit the seven week high. nielsen reporting three million viewers tuned in, the highest since the end of january. surrounding controversy of weight with news that jimmy fallon is said to replace jay leno next year but he has taken shot after shot and nbc executives, makes it fun. the show topped its rival, david letterman for 18 weeks and jimmy kimmel in nine of the last 11. two upset in n.c.a.a. swede 16, third seeded marquette's upsetting no. 2, miami, to clinch the first sweet sixteen victory in a decade. the golden eagles started strong right from the gate locking in a double-digit lead in the first half and never looked back.

and you -- a bigger upset than florida gulf coast. forcing 19 turnovers in a victory. up next, syracuse takes on marquette saturday in the and beat a. who is your daddy? the first thing he said to me. he was going to kick my butt for saying it was an upset. it was created in a guy's baseman, honey baked ham, jeff flock live in illinois with more. jeff: i did not expect this but

they keep coming. look at the line outside the honey baked ham sttre. an incredible story, an american success story. put up the hog prices. it is a baagain right now. hams are a bargain. >> that is why people us standing in line. jeff: his grandfather invented this spiral slicer. >> in the 40s reinvented spiral slicers and went into business in 1947. jeff: look at the company's he tried to sell it to, the big meat companies. let's walk inside and show you what this looks like inside. big returns for the meatpackers but lou schmidt's grandfather sold it in place of the carmels of their day. they didn't buy it so he started his own ham co.. >> didn't see the value and a spiral slice machine. they told him thanks but no thanks and went into business. >> 400 plus outlets, they do pop

up stores and even more. how much ham will you sell this holiday? >> this holiday alone this year probably six million pounds. jeff: how many boxes? >> a lot of hogs. they will be serving honey baked ham to tens of millions of people. don: ken duke schmidt jr. grandfather on the wall up there. that is him. in a garage in detroit invented the spiral slicer and the rest is holiday history. dagen: i am more of a southern ham person, steward, salted, so salty your feet grow, you know what i'm talking about. >> i wanted sweet. >> salty ham and sweet tea. good to see you. thank you so much. great work covering the new york auto show. more on a breaking news on at ac capital, the arrest in early hours this morning of michael

steinberg and it was caught on tape by the wall street journal and the government rolling out new fuel standards that could cost you more at the pump and one adviser says the road ahead for retail would be a tough one. share casone has the story coming up and much more. twins. i didn't see them coming. i have obligations. cute obligations, but obligations. i need to think the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors

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cheryl: i am cheryl casone and the first quarter in the books for 2013. the argument for buying stocks in the second quarter. despite high gasoline prices but epa ruling out fuel standards that will drive prices higher. arrested. colleagues at the wall street journal are there for the arrest of michael steinberg who is closely worked with steve cohen is scheduled to be arraigned today. and stocks breaking records left

and right in the first quarter and in queue in 2 we should start to truly separate the men from the boys when it comes to stocks. c e o and chief investment officer joining me right now. robert, we were looking at a chart of the dow raise is the s&p. consumer staples really led the way this past quarter, that sector up 13%. are you still buying into it? >> consumer staples are the big surprise and that helped drive the index to the levels they are. kind of what you said we're looking where the men will be separated from the boys and the market of stocks necessarily not a stock market is what you have to look at here, look at stocks like general mills, procter and gamble, pepsi, up 14%, 15%. i don't think that is sustainable and valuation on those names are overstretch to. those are the names investors

should be taking profits on unless we move into the underperformers. cheryl: if you look at names that won in the first quarter, the dow and the s&p and how they have done and look at the names that have been big winners, consumer staple names, you have to talk about a company like hewlett-packard, one of the big winners in the first quarter so you have a technology name popping out. what happened and why are we moving into a company like hewlett-packard in the first quarter of 2013? >> hp is the dog of the dow fly, stock significantly underperform down 50% as we saw the s and p rise and you have a lot of shorts in the name but now people are starting to take a look at meg whitman and what she's doing to make a turnaround and it is that traditional short squeeze as well so this is a name we have had calls on thinking it got too oversold but this is a name we see some

resistance at 25, 10% above where it is now, not a name if you are not in already if you don't want to jump in at this point. cheryl: other consumer names were big. looking at best buy, the three month chart especially this last four weeks of best buy. what an amazing run up this company has had. not only best buy but bad, bad and beyond, these have been big performers, you are picking these guys right now. >> we don't like best buy. best buy is a stock, and if you are going to do that, based on the short interest out there, options shorting the equity. and best buy, a model, and a showroom for online retailers like amazon. when you look at bed, bath and beyond this company has zero-just acquired cost plus for

$490 million in cash which we think is clear for earnings this year, very diversified unique retailer, value-added programs to the investor out there and they are hitting on all cylinders. this stock is 12 times forward earnings and a prime example of retailers that should be selling and we should be buyinn right now. cheryl: can you are looking at emerging market plays, companies that are u.s. multinationals that have that emerging-market exposure. we heard that before but the emerging market space is something we need to pay attention to. >> looking into the second quarter, the s&p right now at 10% for the first quarter no one is predicting a 40% rate of return. to ca pull back would make sense. what you want to do is look at names, sectors, ideas that are lagging the overall market and play catch up and emerging

markets have done that. they have underperformed. in the e emerging-market we like a frontier markets. these are the smaller companies, latin america, asia, africa that are doing well year-to-date and we think there's a lot of catch up to be played. cheryl: braking is to bring to our viewers. thank you very much. we are getting more breaking news on the sac capital store. portfolio manager michael steinberg has just pleaded not guilty to insider-trading charges. want to show you this new video from the wall street journal, strasbourg catching the arrest of michael steinberg this morning from our partners, he is a close adviser, billionaire founder steve cohen, a arrested at his park avenue apartment early this morning about 6:00 a.m. eastern on insider-trading charges. he is charged with conspiracy to commit securities fraud, four counts of securities fraud. s ac released a statement saying

mike has conducted himself professionally and ethnically during his tenure at the firm. we believe him to be a man of integrity. that is a quote directly from them. steve cohen agreed to pay a $616 million civil penalty two weeks ago to settled two sec lawsuits and the judge has put that settlement on hold in the middle of all of this. we will let you know breaking news he did just plead not guilty. the r raymond happening today, a not guilty plea from him. we will follow this throughout the afternoon. markets are closed but a lot of news is happening today. we did get good news on the consumer front. consumer sentiment, spending and personal income all rising in the past month but our next guest says there is money to be made in consumer stocks but the road ahead for retail is a difficult one. rec schneider joins me right now. great to see you. you make an interesting points

about the retail sector. this is good friday going into easter weekend. last year we had a later easter, it was warmer. it is pretty cold outside. >> if you compare the two periods, the best way to describe it is it was the best of times and the worst of times. the year starting off very badly and there was talk about a difficult comparison from last year. cheryl: consumer sentiment at 78.6, especially the second half of march the consumer got more positive and more data we are looking at and tracking and retail sales in february coming in strong and personal income looking fairly decent. this tells me these retail names are actually banking on a better spread. >> the staples are doing better. the apparel companies, a lot of them are saying the first quarter will be very bad.

and most of them seem to think it is because of the weather. cheryl: consumer sector the best part of the s&p. and some especially retailers that you do like and one thing you really like is macy's. >> macy's is far ahead of everybody in multichannel selling. this holiday season they were shipping online orders from 292 stores in addition to online pcs. they told us 292 was going to be the number. after one season they said it would be 500. has to be good. it makes inventory more mobile. takes full price selling that helps sales in the gross margin line. and micromanaging their inventories. they know that people in syracuse are wearing orange so

they shipped a lot of orem. i -- you also, we showed a couple of names, the white house market label which is doing rather well. >> it has been doing very well. i look at the stock and people have forgotten about garth investing which we used to talk about. they are within the sweet spot on the growth curve. i also think we get gross margin from better sourcing, going to lower-cost countries away from china and the stock is trading five times ebitda. cheryl: a great time to look at retail stocks but you don't like j.c. penney. >> still have a sell on it. they have severe cash flow problems. the merchandize looks better but doesn't connect with their customer. cheryl: thank you for coming in. when the markets are closed investment for our viewers, i loved it. i don't know why i am saying

that. now to the crisis happening in cyprus. banks are open for the second day as people continue to protest the government's bailout deal. the president of cyprus saying today, quote, the deal is without a doubt painful. everyone will have to make sacrifices as the financial situation will oblige all of us to share the burden. ashley webster joining me right now on set. people keep saying who cares about this small island but the entire euro zone at stability. >> the way they sold the problem has struck fear around not only the euro zone but elsewhere as well. for the very first time, bailing out a country by taxing the big deposits in the bank's, having those bank customers help bail out the situation which is very unique. the euro zone members overall said this is one up, only in cyprus. don't forget the dutch member of the foreign minister said we

think this could be a blueprint. cheryl: i completed royal field -- european markets. ashley: another member of the european central council backed up what he said in the first place, it is still on the table. just another example of how the euro zone got its act together when it comes to a unified statement. cheryl: the worry this will spread into italy, portugal, spain, they had the same protests we had in cyprus. >> cypress is a very unique case. this has become a haven for money. when the soviet union collapsed in the 1990s all this money came flowing out of russia and the buildup the cyprus banks, some from dubious origins but that hasn't happened these big economy like italy or spain. they had far greater level of stability and size.

however there are questions about whether you would feel safe to have your money in these banks seeing what happened in cyprus. there has to be confidence restored. we have seen many coming out of space in spain and italy but not to the level it would raise hhge alarms but certainly something to keep an eye on. cheryl: you have been in the region several times. i am glad you are here. good to see you. thank you very much, ashley webster. coming up at 1:00 hour coverage of the crisis will continue. nicole petallides, a special live report from cyprus. our president greek. the epa wants cleaner gasoline and lower pollution vehicles nationwide. translation, higher gas prices for you. what is in a name? companies like carnival can bounce back from disaster keeping reputations intact and keep shareholders happy. stay with us. so let's break down this play. charles?

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cheryl: we want to bring you up-to-date on breaking news on sec capital. portfolio manager michael steinberg has just pleaded not guilty to insider-trading charges in manhattan. this is why you need to watch fox business. we want to show you this new video from the wall street journal the arrest of michael steinberg at 6:00 eastern time, a close adviser of billionaire founder steve coin. he was arrested at his park avenue apartment early this morning charged with insider trading. he has been charged with conspiracy to commit securities fraud. he is pleading not guilty to all of this. we did get a statement that i want to read to you. mike has conducted himself professionally and ethically during his tenure at the firm.

we believe india man of integrity. steve cohen agreed to pay $16 million civil penalty two weeks ago to settle two lawsuits and that settlement is on hold because development happening today, we will bring you details on the story as we go throughout the afternoon. we are on the air. our competition is not. we want to show you this exclusive video, steinberg and arrested early this morning. we are live today. our competition on tape or not. we are working the story and we will bring you more throughout the day. and a special extended edition of charles payne talking about manufacturer, he and i had a longstanding relationship about crocks. it is about this company that we have some any disagreement about. >> it is one of these things

where i want to like and have tried to like it and tried to get involved and the last couple years, one bounce, but hasn't done that well but here is the interesting thing. so many ways of analyzing a stock you think the stock would do well but from a few re-evaluation point of view, you compare to wolverine world wide, price-to-earnings ratio is the lowest one. price to book ratio has the lowest one, and it is short 5% stock, not like we have a big battle out against its own no axe to grind, obviously very cheap from traditional valuation metrics. how has the execution been? let's look at the same companies and compare again. the revenues were up 42%. becker is up 41%, wolverine 41% but here is the thing. the operating income is up 87%. the other guys have lost money

and stock is lingering. and recommendations on it, one of these things where i bring in the chart. fundamentals look good, the story is good and management executing greenwell. you will probably consider buying this with a close above 16 on better than average volume. cheryl: we diverged in our opinion of this company, i followed it obviously, not picky here at all. if you look at the company, the expansion story has been fascinating. this was six years ago, the street -- charles: it is the fattest thing, and suppressing stock, looking at all kinds of different ways your point is validated except the stock price again, i have tried it on a couple false breakouts above 16, strong volume and might pull the trigger. cheryl: you mentioned wolverine as well. you are right about the

operating income, very respectable memory of 7%. charles: very respectable. they have a strategy that is working. we will see about the stock. cheryl: charles payne, the picks that keep on coming. i like that we agree on something. bank of america called out by customers over mortgage related complaints. the epa wants cleaner gasoline and lower pollution vehicles, charles talks about that. translation this is higher gas prices for you. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that'a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age.

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>> 24 minutes past the hour your fox news minute. renewed a threat from north korea. that country's leader kim jong and ordered his troops to be on standby to strike the u.s. mainland, south korea, guam and hawaii, this after u.s. stealth bombers took part in joint military drills with south korea in which dummy munitions were dropped on a south korean island. reports from south africa's a former president and anti-apartheid leader nelson mandela is in good spirits and making progress during his treatment for a recurring lung infection. mr. mandela was admitted to the hospital wednesday night. it is his third trip to the

hospital since december. good friday tradition on the streets of jerusalem. hundreds of christians march through the old sea carrying wooden crosses and tracing the steps jesus took on the day of his crucifixion. that is your fox news minute. back to cheryl casone. cheryl: good soldier on this good friday. the epa announcing new gas standards that will cost you more the next time at the pump. peter barnes in washington d.c.. >> this proposal will clean up gas and car emissions and lead to cleaner air and better health but also higher gas prices. wes than at any gallon, $0.06 to $0.09 a gallon. and public hearings on this proposal. acting administrator bob dishabille says these

common-sense cleaner fuels are another example of protecting the environment. house republicans planning to review these proposals. the chairman of the house subcommittee on energy and power blasting the administration out of touch as family struggled with high fuel costs. >> let's call a time out. time for a time out. and see what happens to gasoline prices and the economy and requires this costly investments, the benefit that is only in the eye of the epa modelers. >> if approved these standards will go into effect in 2017. >> peter barnes live report out of washington, thank you.

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>> more on the breaking news that we've brought you at the top of the hour. michael steinberg pled not guilty today.

it happened at 6:00 a.m. eastern time right here in new york. the arrest happened at his park avenue apartment. 6:00 a.m. eastern time. he is charged with conspiracy to commit securities fraud. mike has conducted himself professionally and ethically during his long tenure at the firm. they believe him to be a man of integrity. a judge has since put the bowman on hold from last week. this is why we are live on the air today. our competition are on tape. they are taking the day off, we

are not. my steinberg is expected to be released on a $3 million bond. he did plead not guilty to those charges. the landscape of wall street is vastly different than three years ago. no one could argue that not much has changed on wall street, but how about the public views on these wall street changes? joining me now is jonathan, a professor at yale law school. wall street used to be respected and trusted. >> right. melissa: that did not happen now. that is not the case now. >> there are greek buildings.

they look designed to give people confidence and make people think these are venerable institutions. now they are in strip malls. it is not just obviously architecture, but the ways that they deal with their clients. these clients are expected to fend for themselves. melissa: do you fault the media? do you fault us for what has happened? do you think that we are a piece of the story as well? >> i think it is more a problem with the way that government regulation has affected people's expectations about what they can expect from business. melissa: carnival cruise lines,

it has been a big pr disaster for this company. do you think that company can recover from what has happened to them? >> i am not sure that they need to recover. i do not know anyone who has taken a carnival cruise. i do not know anyone who knows anyone who has taken a carnival cruise. they are not taking carnival cruises. the people who are taking these cruises are people that go into travel agencies and are told that this is the cheapest cruise. melissa: you are saying that they do not read the newspaper. >> exactly. melissa: you write about this in the book. talk about years ago. you've said they were unharmed because a person eat at taco

bell does not really care if that turkey is healthy for them or not. >> taco bell is getting a ton of bad publicity for using ingredients that were not told that not fit for human consumption, according to the department of agriculture. there were reporters think how could this happen? the analyst said people who eat at taco bell are not really concerned about nutrition. the fact that it affects someone like you who is a news person or someone write myself who is a news junkie, does not mean it affects the company. melissa: there are other examples as well. thank you very much for coming in. it is good to have you here. the consumer financial protection bureau reporting that

bank of america accounts for 40% of complaints by borrowers. debt collections and also foreclosures. the company announced 98% of those complaints have been resolved. t-mobile cutting jobs at their seattle headquarters. the impact on their local economy. it is not just good investing for your child or grandchild. up next, the tax benefits for you. ♪ dad, i'd put that down.

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>> bar on the breaking news we brought to you at the top of the hour. michael steinberg pleaded not guilty. we just got into fox business. it is a courtroom sketch. he is expected to be released on $3 million bond.

he is a portfolio manager. a close advisor to steve cohen. the "wall street journal" was therefore this. this is their video. he is charged with four counts of securities fraud. a judge has put that settlement on hold. this is why we are live on the air today. our competition took the day off. they are on tape. we will keep updating you throughout the afternoon. grandparents are opening savings plans to help kids play for

college. quite a story. >> it is amazing to see the big moves we are seeing with credit cards. >> the 529's are great tax structures. you are saying back grandparents are now getting more involved in that. >> as long as those dollars, they come out tax-free. melissa: really 50 and above. that is the age for grandparents i would think that also is a big reason why they are doing this.

>> grandparents are involved for the most part of the state planning. they allow you to take large amounts of money outside of your estate. you can get $14,000 a year. this allows you to get five years up front. melissa: .grandparent, again, 50 and over. if they are still working, they are getting a tax benefit on not. say i want to retire and do something completely different. if they wanted to do that, they could actually do that for themselves. >> you can name yourself a beneficiary and a 529. you could go to college and youth savings put away to do that. melissa: and, again, it is

tax-free money that you have put away. has the structure changed in the last couple of years? i know taxes overall have changed. are the rules engine at all? >> the risk are much broader than they were in the early days. it certainly has been making 529 an attractive place to be. melissa: roger, thank you very much. it is interesting. all about saving money on taxes in any way we can. thank you. time for your west coast minute. t-mobile usa is confirming hundreds of jobs cuts at its

headquarters. t-mobile is preparing to go public after it mergers with the dallas-based company. from firing to hiring. facebook to break ground on a second menlo park campus. they will build a cross from its campus. it will be one story with a parking garage underneath and a roof park on the top. mark zuckerberg requested it be somewhat modest. finally, in phoenix. during home prices are 4% higher. prices are sitting at 2004 walls.

that is west coast minute. speaking of the west coast. the west coast is rebounding and leading in job growth the keys to their success coming up next. what is at the heart of the affluent investor? we will have that coming up. ♪ my mother made the best toffee in the world.

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melissa: investors beware. our next guest says hi worth

investors are being ripped off. >> thank you so much for having me. melissa: your book really focuses on the fact that there are high net worth investors now. there are more millionaires in the world. they are being targeted by wall street. >> wall street goes where the money is. wall street wants to get rich. the high net worth investors want to get rich. wall street gets a hold of them and it is a slow drip system transferring money. they end up with more of your money than you do. melissa: it is these and riskier investments. >> trading bonds for their own portfolio to you.

it is a dangerous business. >> even if i do have $5 million in investable assets, you are saying that i still need to investigate what is going on and portfolio. that is like a portfolio manager, basically. >> hopefully less. i would try to negotiate hard to get it for less than not. melissa: i was looking at a pool, the amount of high net worth investors is more bullish than they have been in three years.

>> it is unintentionally hilarious. we have been in a bull market for five years. these people are just now being told by their supposedly very wise investors that maybe you want to increase your allocations to equities. this is an example of the kind of mismanagement that high net worth investors receive. melissa: you are also a big fan of warren buffett. you say we should follow his infinite. >> he has done sensationally well for investors over time. i think retirees are well advised. if you had dividend stocks, they may have gone down 23%.

one is less horrible than the other. melissa: i need to look for advisors that are portfolio managers only. okay. that is the gist of all of it. the book is called the affluent investor. thank you very much for coming in. the west coast is making a comeback after taking a hard hit during the recession. what is helping the rebound out there? >> you have housing, energy and tech. california and texas are expected to add a million jobs in the next five years. those areas hard-hit by the bubble, they are coming back.

36% in phoenix. about 12% in los angeles. 15% in nevada. the mac we are able to foreclose very quickly. we go down much more quickly than the east side of the country. we are able to rebound much more quickly as well. >> investors are helping fuel the fire, if you will. and in arizona alone, they are holding. there are bidding wars in sacramento were used to have over 8000 homes in the inventory. now it is below 1000. >> the west coast has and so hard hit in both of those areas. where are they now? >> nevada unemployment is down.

arizona and hawaii are also dropping. not as dramatically, how over. we have 4000 job opening. that is led by technology, software and energy sectors. gps insight in scottsdale. they help employers attract they are fleet of government vehicles, private vehicles and so forth. >> one of the issues that has helped us if it is a great place to live. people are linked to live here as a lifestyle. it has been a concern. the job or not paying what they used to.

back to you. sandra: thank you. the fed are widening the net. a top capital executive arrested on insider trading charges. charlie gasparino has been all over the story. he is coming up next. mortgage rates edging higher. so our applications. quicken loan ceo joining nicole petallides and ashley webster coming up. ♪ ♪ right. but the most important feature of all is... the capital one purchase eraser. i can redeem the double miles i earned with my venture card to erase recent travel purchases. d with a few clicks, this mission never happened. uh, what's this button do? [ electricity zaps ] ♪ you requested backup?

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it is good friday. the markets are close. fox business open for business. you have big names that made big gains. i will be talking about it.