>> good afternoon, here is what is "money" tonight. almost nothing i safe from the eyes of big brother. there is one country tt can shuttout the government for go. the ceo joins us exclusively to tell you how. and america's suchy sushi restaurants ainst tipping completely. and to make moneyoday? les just say investors from one big company have big yellow smiley faces. stay tuned to find outho. even when they say sadis it is always about "money".

>> immodest enroachments on privacy that are involved in getting phone numbe without a name attacheand not looking at coent it meant that it was worth us doing. nnis: just because youre paranoid doesn't mean that there aren't out to get you. the government s atching them d we now kno that for sure. thanks to "the washitopost" and "the wall street journal" and the guardian in the united kingdom. the government is tapping directly into them ofhe ggest tech companies in the world. we are ll getng caught up in this digital record frenzy. joinin me now is a

cybersecurity expert anda assistant editor of "the wall street journal." thank you r being with us, gentlemen. colonel, let's start with you. talk abot how they say that we are trying to be kept safe. but why is this so vstly big instead of going spearfishing for couple of baracuda. >> i love the analogy. >> if you were to director spear, if you don't know where to director spear, it becomea much arder problem and you miss a lot of fish that you're going after. so that was the philosophical and technical dlemma.

they did data mining effectively. the big idea was to find as much data as you possibly could and then pick the relevant pieces out of it. that is when the program was developed as it was. >> you think that they may have out of reach to your? are they okay with looking at your google searches here. >> it will be much better if they don't do that. if they don't look at everything th i do or what everybody else does for that matter. they are you'reealing with a lot of extra pieces of information. this includes the actual contents of the search and the phe conversation. but those are the things that they are looking at. they are looking at patterns of havior. not necesssrily the actual content of the message.

and you have to have a special one for that. >> you are with "te wl street journal"'s editorial page. this is one of the best in t world. they came out with a rather passionate defense of th nsa andts ms digitital dragnet. as long as we are not lking at the contt of the message, we don't have tat right. t what the report that came out from "the washington ost" and walltreet journal in the newspapers later, they say that they are looking out live google searches. e-mails and video chats. that is a lot more than just a phone call. you have a probl with that? >> keepin mind this program at the prison program is looking at what people are doingonline.

simply freigners essentially communating with each othr. not u.s. citiens. >> "the washington post" said wa a mine, they are focusing on milons of aericans. >> im saying at what the government has set up to this point is that we are talking about foreigners communicating with each ther. the question if someone in pakistan is commnicating wih someone elelse in pakistan, but that communication is going through a server in the united states. you kno, there is never a good time to trust big goernment. but i think that we probably should take a breath here and understand that w are a country with a lot of softargets wo cann hden them off. technogy is an advantage that

we have over terrorists. weon't wanto giv the government carte blanche to do this to all of us, b if it i program where it allows them to loo for that needle in their haystack and find the bad guy, as long as we are sure that the rest of he haystacksre not abusing the privilege is. >> there lies the problem. i just wonder if this is akin to monds at the irs. [laughter] the italling of icrochips was shot down and then after 9/11 e are justoing willy-nilly and going way too far. why can't you guys at the nsa, we're used to work, instead o putting out a 50,000-mile wide net and bringing on the fision what you comup with a suspect in andask you about intrusion,

weiser with.net. >> in order to go after someone like ths, which honestly didn't work and time what you have to do is you have to find possibly could be a suspicious nature. so y cannosay that evyone is guilty of a crime until they're proven inocent. thatoesn't work withur legal system. in this particular situation, we have aequirement for data, you' cting the net wi so you can actually have those needles in a haystack as james mentioned. because that is the only way that you can get as many of the needles as possible. you're not goi to t all of them, but you least have a higher license of getting them if you cast a wide net. it beomes a quesion of privacy

versus public safety and that is really what the essence ofhis debate is all about. dennis: the problem is this one that isn't catching anythg. i'm just ohelmed by so much data? >> city ardsley innew york, we are sensitive for all these reass. we were named the number one target and we have a police department in the city that is very aggssive and gathering information at surveillance, you mighcall it. use the right term, checking in on people we he nnt had another attack. and a lot of plo haveeen thwarted. there s ever to blow up the federal reserve bank in new yo. so it is workingn many ways. >> it s because of good old confidential informas. thank you to the both bh of

you. be sure toatch neil cavuto tonight. he gets reaction tonight from mittomney. it is at 8:0m. eastern. you do not want to miss that. it is time for today's report. tropical storm andrea creating a ms. mid-atlantic getting h with 3 inches of ain. hurricane "sparchange" move to the gulfcoast. so areas that have been hit with the worst flooding in history. northbound traffic wil resume after sunset tonight. and oil futures when the market rally todaay. eled by the may jobs report. crude oil settling and $96. next on money, collect a digital panic room. no matter how much the government tries to invade your space, check this out.

a surrise giant that is said to have entered this billion-dollar bidding frzy. bidding frzy. we have more "money" coming up [ male announcer ] is is the age of knowing what you're made of. why let erectile dysfunction get in your way? talk to your doctor about viagra. ask if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressu. side effects include headache, ushing,g, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection laing more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action. viaa. talk to youdoctor.

@%nnis: is there athing you can do to mmake your own personl information government prove and keep it sae? faulted as a data encryption companthat says it can protect you matt what the government does. >> it is not as gathering data from microsoft and oogle. i have this computer. let's saythat i have the product on this computer i have

vaulted software on the computer. it is encrypted even i it is turned over to the government. the onlyeople who can read it are people who have the one and only key to decrypt it. and i would have the key. i amhe owner, ihave key that i can give to other people or keep to self. it appears that if they were ever to open it, you would be protected due to the encryption. >> in t very old days of the 19s you had your personal computer and it wasn't linked to anybody. and u took out your little floppy disk and you walked it over to another guy. now, everything is connected and the tech cters are pushing the cloud. is the cloudmaking us me vulnerable to hacking? >> we brought that p wit oter

people that we interviewed. you know, the cloud is just another server. right ere at the news corporation we have giant servers in the basement. imagine i you take those servers and they are very costly to maintain anyou get rid of them and you do everything to the cloud. the qstion is what kind of security do you have in the cloud. if you have tat and it's no good, it's all the same. if you have the similar software like it then encrypts what you have to thpoint where only someone with the decryption key could read it, it doesn't matter. all th will getis a bunch of gibberish. >> you reay think that this is encryption that is so solid and good that it can stop even the governme? if it got pretty popuar, can they say that we have to get that encryption ky? >> the way they describe that question, that would be easier the easier thing to do is knock off somebody who has the othr computer or a device which has

the key with it and d it that way..3 they would have to crack the encryption code, which you would need the geniusf jesus to do. it would be much easier. but they are tryng to do is make you aware that e government is aking the information. right now is yahoo and google and microsoftd apple. they don't necessarily tell you that it s been done. this way the governmen has to get a subpoena to get the key to read what you've got an used this to know what they aup to. >> someone sewhere c make some money in any controversy. thank you adam. >>ake care. dennis: coming up on "money", it an nexpectedgiant getting into the bidding war thatcould change tv event. we will explain. and unemployment is not 7.6%. that is a bit higher than it was.

we have two with their three uncovered. don't go

dennis: whether it is wall street or main street, it appears that we have made money today. wal-mart's meeting announced a 15 billion share buyback program and the ceo says that sales will hit $10 billion this year. @%vestors embracing that good news. meanile, losing money today, investors and samsung. analyst downgrades for the galaxy smart phon in the same summer stock down $12 billn of t office market

value. making more money day fast and furious six. that haslown past the half biion mark and it is the quickest and surpasses that milestone. it is kind of imppessive. wh what can u buy with a billion-dollar. >> by now there is one hot commodity available. so an online video streaming site named hulu. that is where the bidding stars from a llion dollars. at&t bonds in the action. one of the biggest deals out there. it could be a game changer and maybe for tv. one of the best in the ield. thank you for being with us. there would be reports of ds coming in. directv is interested. tell us who is going to get a? >> this is one of the most

mplicated optionin the landscape. it keepsrowing. you think about the potentil sticking points and you have to think about what has happened after the exclusive content deals. constant pending with amazon and netflix. the parent company has also face some potential decisions. as you know, they are a oe-stop shop. coming back to your estion. i do believe that time warner cable, at&t, each one has he senate comes down to a tategic oprtunity for these companies.

who's going to buy? give meaning. >>ell, dennis, i think i would not rule any of that ou. this includes diectv and the trick pony that yo could see with this mobile video opportunities that hulu has. and launching its own streaming service. we alshave this and this could prove another effort to this online space etting more crowded. a. dennis: at&t's interests, surprisingly randall stephenson told me a couple of years ago that we are a massive carrier and we don't need to own contt at all. isn't is adeparture from that strategy? >> i thik we tal about how rapidly the landscape has olved since that statement was made. this is changing by the day. you have newspapers jumpingn. you have cable companies.

those that are launching and pushing their own tv. this is moving at lightning speed and i would not be surprised if we have all the potential to do that. the question is where to come down to evaluation, right? >> yes. >> we have a lot of hesitation as to what has happened with the parent company. dennis: which of the bidders that you have seen so far means that the most? >> wl, yes,arguably yahoo could do a lot with that. that is not to say that the other candidates won't either. everything is going to come down tohe price. so i would not rule out anything right now. looking at this veryseriously. and y th end of the day, the devil will be in t details of. dennis: so you would nt be ern tomake a wild guess. so that i will do so right now.

it is netflix that i think we will buy. up next on my come and we really have to settle for125,002 jobs a month. that doesn come close to filling the unemployment. we are going to solv it here with two top economists who give us their input. what we can do to light up hiring. in restaurant that does not allow tipping. one of the most celebrated japanese rtaurant habanned it. will customers actually come out ahead? a controversial plan. we have piles of money. coming up next.

>> it's kind of whiny. marcus or higher. the dow closg with its biggest 1-day gain since january. great news even though the jobs report to not hit it out of the pa. every month we see jobs numbers, up, down, revised. we saw unemployment go up. that is just not good enough. real crunch a number. two ofur best economists. three fast job situations. with us now, peter and jeffrey. welcome. but start wi you. let's just look at the number of challenges. we have been averaging about 178,000 prate sector js every month for three years. we need to hundred thousand or

more to massive population, and you say wee need 350 or 360k or more t bringnemployment down to 6% and 3 years. per, fix it for us. give us three fast fixes. >> the person we need to do is get rid of obamacare. rrell of the country of folks tell what tired because of the high cost of fringe benefits. it just the t problem. thers a very high tax that we have. this marginal rate. most businesses are s-corpse. they're ying better than 50 percent of their income i taxes. they're not going to invesfor the all return. finay you ard this befe. we have to do something about the currency problem with china once and for all that is costing us 5 million jobs per year. we should fix that right away. dennis: janet keep tir currency cheap, and weever do that wit the u.s. dollar. you takeover.

telesphere -- your thr fast fixes. >> give afternoon. first and foemost i agree there is too much policy, uncertainty in washington d.c. need to get the rules of the games moved out some investors know what they're dealing with. the best tax policy or a long-term budget plan that is depressing investment and growth. the like an investment as a share of gdp. that's what i would do first. the second big thing is eradicate or eliminate the barriers to new entry businesses. many new businesses to form. many elected the bureau of labor statistics of the net job creation, new businesses. not necessarily small business, but new businesses. need to create as sandbox for these entrepreneurs to try things that annnovator in. for. dennis: third. >>he third thing for me is when you ask where a lot of

these new businesses coming from, who are the enteneurs, about a quarter of the uno benares that a a starting tech businesses right now are foreigborn. the children are foreign-born. soe ne too do is reduce the barriers to emiation, particularly for those high skill type positions. if you want to put a name to which i would just throw o the law must, paypall, facebook, space sex. this is aoreign-born, o of the greatt of bernard's ever. think we need to eourage those fos to want to come here. dennis: we have seen six vast fixes, and i like them. do you think that the current ongoing litany of government scandals and controverersies wih the irs, is it going to stop our federal guy from being able to do any of these fixes? >> for the most part yes. i think that the irs scandal is starting to focus people on the necessity of wondrous solution.

why would the board up the windows of the irs and send the bureaucrats on? we're not going t get that. what we -- we could once we are value added tax sinks. i think there is going to be a movent toward of ftter income tax, an incomeax with less deductis and so forth that would require less of an irs. after all, the less complex the text of the few are those people we need around. >> a tax overhaul the single most important ftest fix. in part you have to wonder what that would do to neutralize the irs. >> it's gre. absolutely in favor ttat. i think t uncertainty of the fact that we don't know if it could change nexuarter or nextonth or later thi year, that is t big problem. lingering concern for investors, what wl happen with the debt ceiling.

let's go out and eliminate that. free up a certain environment that will be helpful. i want to go back if i can to the china question. one of faviteopics because i don't think chinas the great bogyman. in fact, ifou look u.s. exports the fact we are porting more than ever which is he for businnesses in different climate, the top destination in the 21st century in terms of export growth this china. were creating stuff here and sending in up to china. denn: peter, let's remember that gener motors now sells more cars in china than it sells in the u.s. i think china can be ourriend ana great market. >> i do, too. it's a matter of getting the playing field lel, and the degree can do that. china is terribly afraid to revaluits currency. if we did it for them to currencyarket intervention the way they are now, doinghat they do, then i think tt they would find tt they would prosper very niely. terribly afraid of somethi that would not hurt them but is serving as right now.

it would give us a lot mor ports. we would grow faster and be a better market for them. dennis: thank you both for being with us. peter, great new york fed. go night. ving on toovies now, google is spreading out the poprn. thatompany has unveilea study. it can predi boxffice suess. that is like hollywood gold. dole says it could use search data of a film trailer in the four weeks before and other factors toroject opening weend perfmance. joining me now, fox news. i have gone several tim. >> foo performance. i million prey good. key factors.

the film is going to be released. it's a frahise. it's an ironman movie a star tracker twilight it will d well everything i here. see how they can do because for years now the studios and people like myself haveeen trying to figure out a formula for predicting box office. it might just be able to. dennis: gully but has a great forestgachine. yet when i follow-up on this and ask them, your entir study has no specifics, namely because they don't wt to miss any studio that ty want to advertise. that is no rson. we have two examps. magic mike, the stripper movie, it was a huge hit. no one had any idea. they said thatheir trailer search data guy everye thought thatat this movie would do nothing. there trailer search status of the movie would open up 40 million. they came in at 39 million. >> 40 million.

twice the expectations. it was very impressive. we have the great example. if anybody went on t srch aboutha film, the great trailer promoting very entertaining to the women who want to see that film. did very well. that's one reaso dennis: in the other example was. >> exactly. dennis: they predicted -- >> the studios thought that would do very well. they go we will model didn't think it would do quite that well thection sequences. to do that well. the money. nnis: based on the board game. they thoht -- hollywood thought it would open at 40. comment. twenty-five. >> yes. >> more interested in figuring out wh will hit big or figuring out what will be a flop.

>> obviously figuring out what will be big. it's all about making money, b if they ccn tell the movie won't do as well as to of course they can cut their losses where they can and let aovie gde very quickly ifhey want to and ordered cut their losses. dennis: looking at dual searches. social networks generally, they track twitter sentiment. >> 510 million. what they found is that there's been a massive increase in on-line buzz. the past couple of ds. >> the purge. it is a crime jump, futuristic. fascinating. if you see the trailer, the audience is excited about it. it will do very well. it will be number one this weekend. this is all here. very, very important. they could be on to something

teeseven they do a lot better job of predictin stuff that some of our government snoops. thank you very much r being wi us. thank you. good job that guy is really good. ming up, one of the country's top japanese restaurants says no more tippi and all. the restaurant's owners says it is all for the right reasons, and he wl be here to explain why. at the end of the day it is all about "money." ♪

♪ teeseven. dennis: an unhhard of idea a one ofhe best sushi restaurants in t country. in keepingith japanese tradition in new york city, banning tips from custors. that's right. but it is raising the prices to make up f it. the owners say they don't care. they're getting a morenjoyable experience. here to explain. >> co-owner and co-founder. tell us when you did and what has been theesponse. >> we just boughthis a couple of weekk ago. the idea was to bring as much of a pur traditional, classical batting experienc whe it comes

to sushi to the all-breed no tipping. it is not the custom in japan. the united states is kevin anomaly. most of europe and other countries, for us it was about creating a more robust and classical dancing experience. dennis: most americans are utrly unaware that in japan there is that tipping. does it turn of the two-thirds of your customers are japanese and appreciate that or does it turn out most of your customers are americaaand distant they're getting a break on the press? >> i don't think it's eier. most of the people want that re classical experience. to know that you don't have to bring a calculator, do any math and enjoy your sushi, s if the check looks good and if it does your fine. the edback has been att first, well, this is odd because even japanese and other folks in the united states are used to seeing, you know, the tipping is

the norm. the reaction so far has been, really? maybe i will order 20% more sushi next time. dennis: he noticed tha som people a insisting on tipping? ey just wanted to. >> i think the habit, the reflex is so ingrained here that it is almost kin of a reflex to want to put it to appear. but once they see -- we let them know that, you know, following the custom in japan we don't except to the. our staffo our salaried professionals, and what they see that they understand that they're having a more traditional experiee and make that adjustment. there i that initial, when the man caot understand this. dennis: if reelected testing me. now, a lotf restaurants i believe pay their workers lower than market rates or lower than minimum wa because they get tipping. what you do? >> so we do is say our employees

, staff, all professionals..3 on salary. dennis: before you banting? >> always on salary. some get bonuses. they have health insurance. they have paid vacation. we treat our staff as kind of true professionals. they have unique training. a unique background where they cashare this experience effectively wit ourustomers. and so for us it is really about just having that full authentication. dennis: but if i was one of your best waiters beforehand and then you stop stepping you just ge me a 15 percent roughly pegged at unless you give me -- did you increa staff salaries? >> so we did was we took a fluctuation out ofhe equation. traditionally saking see a flucation. some dazes lessons and this is mo. overall your staff can actually,

as you point out, be paid quite a bit less than what they might be paid if there were on a robust salar this is an approach we have always had actually. previously we took the tips and fold them into revenue to pay but we justaid, we will kp its salarieat an even level. as we have always done it. we will sort the restaurants will absorb the fluctuation. now we're justaking e fluctuations out. dennis: ge me a bump up on not? >> the was no change in terms @% the net pay. dennis: we have to go. thank you for being with us. scott rosenberg, next job. next on "money," who needs llywood when you can make bank on broadway? tom hanks making a really nice splash on the stage. we have all the details "spare change." you can never after much "money." ♪

dennis: justin, facebook ceo has actually personally responded to the controver over president says, nt to respond personally to the average as press reports. facebook is not and has never been part of any program to get the u.s. or any otherer governmt direct access to our servers. we have never received a blanket request or court order from any vernment agenc.

asking for infortion or mitt a data like the oneeron rertedly received. if we did, we would fight it aggressively. we had not even heard of prison before yesterday. when governments asked febook for data, zuckerberg says, we review each request carefully to make sure they alwaysollow the correct processes and all applicable ls. they only provide the information conveyed is ruired by law. we will continue fighting aggressively to keep your information six unsecured. we strongly encourage all governments to be much more transparent about of programs aimed keepinghe public safe. it is the only way to protect everyone's cil liberties and create this sa and free soety we all want ov the long term. this frothe ceo of facebook which gets accused of violating privacy and this guy is coming out against the government in favor of privacy. kind of interesti.

we're joined by jared guy ran off and before we start to the first item to my want to hear what you think about katie weighing in on this directly. >> he has that taken the side of the government. dennis: agnst the government. >> someone that i am personally afraid that might have permission is getting out there. its precarious. >> by going public staking his reputation and the repatn of this company by saying that the are representing the they d't release that seventh mission. a nice little bit of jujitsu. he took the controversy and now suddenly he had switched sidides and as arotector of privacy. brilliantly done. dennis: first off, an actress to appeared in the hit show the walking dead hasust been

letters tor allegedly sending president obamand new york city mayor michael bloomberg. reports said she originally called the fbi to implicate her sband and the crime. wh do you say? arroin the walking dead. >> to this kind of frighning. wonder whate did to this trough. her husband is actlly in the process of filing for divorce. this is retaliation for whenever it -- for whatever reason. i mean, howou deal with meone like that? dennisth wld not haveone and arrested did not have some sort of evidence. >> why is your dirty laundry oot ere? for goodness sakes, take your personal stuff and just keep it behind doors instead of acting out and sending a lette is. dennis: feeling jealous tt is tting all the plicity. >> i didhis receny. i believe it was senator.

and they think it is copycat acts. they actually felt that she probably thought it was a good idea in a way get bac and harassment, but this is not the movie. this is real life. you don't send out letters like that. giving our government's massive program, i'm ndering why it has en so hard to figure out the right guy because they origallyrrested an elvis personator and then dropped it . >> you would think that they have all thisccess to our phone records, what we're saying online, potentially facebook. you would think it would be a will to identify that person. dennis: maybe they could have caught the rise in nuys. here is howou make it. >> the updates. dennisnext item, we all eight parking tickets but one government has taken to ebay to ease the pain, but at this parking tickets for sale on that site because it can't aord the fine and said alproceeds will go to pay off pretty low and behold enough people have b on the parking tket they want to buy tt the price he c receive h exceeded the fine he must play to taipei. would you bet on it?

>> first of all, according to the into csumer spending in nexttcommand of spendingix to $700 more han wen. a love that this guy is dng this, but what is next? realit show? could be t jail? it is really -- i think it is a little bit of a joke that he is letting people pay for his sort of free tickets to get this parking tket. dennis: why are they even bidding? >> it is kind of funny. when somebody would pay my taxes for me; ebay and do that. he will take the proceeds in donated to a family. dennis: as we head into the weekend tom sullivan has something to say about the scdal that has embroiledhe irs. >> it's easy to attack them because of the recent disclosures. people alws liked the tax

collector going back to ancient times. but i here you're supposedly smart saying it's time tge rid of the eire internal revenu service. really? even the smallest of small businesses haveo have somebody recording account for the mone coming in. you've hard some of the scandal from this is the perfect opportunity for massive tax overhaul. how does the problems of one subsection of the internal revenue code equal revising all of the sections, thousands? i get it. you're mad and you don't like the tax cut. yes, we shoull simply by answering the irs down to a much smaller government agency, but let's beealistic. let's start with just fixing the section that seems to be open for questions. start more clearly define what it is if you really want to me the irs prick up, aggressively prosecute the individuals who did the targeting since some people to jail. that wl get their attention for what. dennis: thanks. be se to watch theom

sulliv sw ts weekend. you can get to that seven and 10:00 p.m. onaturday, sunday at 70 a.m. and 7:00 p.m. eastern. happy friday, everyone.eeeeeeeet you think they could have broken earlier, tomorrow. john: we're at war against terror. >> this warlike all wars must end. john: so that american is we war on app? apple keeping massive profits overseas, a war on hate crime. >> what tur a normal fat little 8-year-old boy into a vicious hate crime committing rapi? john: to continue the war on drugs. >> this is your brain on drugs. john: start one on food. america's wars on food, terror, business drugs, and hate. >> if you want to ht another human bei, you better make sure they are the same cor as you are. john: thais our