>> finally, scandals take their toll. you are losing trust in government and the president is losing your support. good morning, everyone, benghazi, doj. state department and especially the irs. those scandals are beginning to shift opinioo a lot. the latest fox neww poll shows 6 out of 10 have little or no trust in the federal government and the president's approval level slips to the lowest level in a year. to the markets, a worldwide selloff in stocks, but wall street will open with a small jump up. and the great news this morning, but it's got nothing to do with money. a 10-year-old girl who finally beat the bureaucrats and got the lung transplant doing well. prognosis, good. "varney & company" is about to begin.

>> all right. everybody first, i bring you

this from our boss, president of fox news, roger ailes. >> the ggvernment is about to hire 16, 16,000 more irs agents to enforce health care. 47 new tax increases. no wonder they need guns. now, we already know the irs is arrogant. they waste as much money as other government agencies. they enjoy pushing people around and they can't line dance. [laughter] we don't need 16,000 more people who can't line dance. [laughter] and we don't need more people with guns enforcing our health care. all right, granny, get your hands up, it's time -- we're tired of telling you this, take your metamucil. stuart: that was mr. ailes' acceptance speech after being awarded the prize. and speaking of the irs and your trust in government.

three fresh polls from fox news. 2/3 think the irs targeted overseas, everybody's saying the sky is falling, but our market's going to open a little higher. how come? even with japan's stock market dropping 6%. we went out and asked peoe a simple question:

how old is the oldest person you've known? we gave people a sticker and had them sw us. we learned a lot of us have known someone who's lived well into their 90s and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

♪ been around the world and i can't find my baby ♪ ♪ i don't know where and i don't know why he's gone away ♪ >> scandals galore, trust in government down. the president's approval way down and president obama is jet setting and you saw him from

massachusetts to miami. what's he doing? fund raising. three fundraisers yesterday alone. we're a minute from the opening bell and let's bring in scott shellady. actually let's not get to the white house. outgoing alan krueger, he says that success in america means you are lucky. i'm sure you've got something to say about that, scott? >> i do, you know, he referenced 1979. and first of all, i'd like to say that success, or at least incomes from 1979 for all included have been up. but like margaret thatcher said 25 years ago, stuart, people like mr. krueger would rather have the upper 1% be less well off as long as the other 99% were less well off as well. stuart: yes. >> so, he wants the 1% worse off, even at the expense of the other 99%. stuart: you've got it dead right. you're absolutely right, scott. please, will you stay right there for a second.

you're so good we've got to hold you over. the opening bell is about to ring and all over the world, the stock prices are way down, they're 6%. what are we going to look like when he we get going here? the opening bell is ring. [bell ringing] you'll see the early going soon. i'm looking at futures, and the indication is we're going to open ever so slightly higher. and down two in the first seconds, down three. that's not a big selloff by any means. japan, as i said. down 6%, so let's wait for them to open and we're down a little in the very, very early going and still below 15,000, a big drop yesterday of course, but this is not a widespread selloff of the opening bell. in fact, we may be about to turn positive. let's see. keep that up. now, a big name you know making more headlines. according to reuters, apple is considering releasing a bigger version of the iphone this fall. along with a bigger version, apple is going to release a

cheaper iphone as well in different colors and they're setting their sights on a bigger competitor. check the stock early going this thursday morning and apple is, wait for it. it's coming. wait, not going to have it. a technical glitch. flat, i believe. all right, up ever so slightly. i'm going to return to that shortly. i want you to look at wal-mart, reportedly only hiring temps at many u.s. stores. could this be a hedge against obamacare? here obamacare comes. nicole, the stock please? >> you know, it's a little lower as we see wal-mart here opening down 1/10 of 1%, but it's an interesting concept. i believe starbucks says the same thing, i remember talking to someone and saying that starbucks does exactly that for this real purpose of not having to pay health care. we're insinuating from what we hear, i haven't heard the companies say no, we're only higher because we don't want to pay health care. no, instead they'll say, we're hiring temps so that we have enough staff for the busy

moments, busy times, busy nights, busy weekends, but don't need to carry that many full-time employees. >> at the back of your mind, you're thinking here comes obamacare and all of the companies are making moves before it actually arrives. >> and to your point. they only do this during the holidays and now it's becoming more norm. i mean, this is may, june now. stuart: maybe that's the new normal for wal-mart. hey, nicole, thank you very much indeed. the dow industrials have indeed moved slightly to the upside, not much, but we're very close to 15,000 again. scott shellady is still with us in chicago. and scott, the buzz has been about this global selloff in japan, china, europe, they were all way down. i want you to make a pre ducdic for me. can you tell me how this will close today? any idea? >> i think that the s&p 500 is going to be our key and if we can stay above that level. there's some technological and psychological points between

1600 and 16, 10, i tell you what, stuart. this is a fantastic open considering that we were up 100, and down three figures in the dow and seeing what happened in japan, this is a fantastic opening. stuart: okay, we'll take that, scott, shellady. we'll see you again, soon. wait for it, everybody, we have a press tigious guest, harvard professor, welcome back. i've read your stuff. you say that interest rates are on their way up. how much higher? can you give me a number? >> it's very hard to give a number, but since you want one, somewhere near historic norms i would say, eventually another 200 basis points. >> that would mean. >> 2 percentage points. stuart: that would mean the 10-year treasury just above 2% is on its way to 4%, to put a

tangible number on it, right. >> i don't think it's an unusual forecast. i think most people think that interest rates are very low lately and are going to have to rise. >> why are they going up like this? >> because they're at historic lows. i mean, the last five years have been a very unusual time for the compli in many respects, inflation has been lower than anytime since eisenhower, kennedy administration, but the nominal interest rates are lower than that. so we've actually had negative real interest rates. the real interest rate of course is nominal interest rate adjusted for expectation to inflation and they've been negative recently. that doesn't last, that's a historical anomaly and they have to revert back to historical norms. >> with interest rates as low as they are now. historic lows as you've said. we've got one, 2 1/2% growth. still got a high unemployment rate. what happens to the economy and that mediocre growth rate if we

go back up to 4%? >> well, i don't think that the interest rates will go up to 4% until the recovery is much further along and unemployment is down quite a bit. i think that the fed will make sure of that. i mean, that forecast, and then, you know, i said i don't know when it will happen. it won't happen until the economy recovers, until growth is stronger. i think that's what the fed's job is doing. unless a sign of inflation gets out of control and there's no sign of that now. >> so you're in that camp that says that ben keeps printing what is it, 85 billion a month until such time as the economy staro move up, and then, he may tap on the brakes. so you're saying essentially, i don't want to put words in your mouth, but you're saying, hey, the fed is not going to tap on those breaks anytime soon? >> of course, over the last three weeks, we've seen volatility in the bond market that came when bernanke made a statement about, you know, it's

possible in the economic conditions that they might taper off that 85 billion per month of purchasing long-term government securities, that that might happen within a few, by the end of the summer or something. i think the market overreacted to that. but even if they were to do that, and i don't expect it really this summer. but even if they were to do that, a long way to go before the fed is going to start actually raising short-term interest rates. >> that would be a switch now, wouldn't it, that we've not seen the fed districtly raise interest rates for a long, long time and you don't think we're going to see that anytime soon. can i conclude like that? >> right. not until 2015. stuart: all right, we've got that date in our heads. professor, we hope you'll join us again soon. and we are going to have breaking news on the subject at the top of the hour, the latest read and freddie mac's mortgage rates. what we're expecting is a 4% rate.

we'll see at 10:00, we've not seen 4% for a long time, but we'll see that right on 10:00 this morning. will we see 4%? probably. never mind the backed up toilets and the engine room fire from last february, the carnival triuuph, the cruise ship told out its first two voyages since the cruise from hell. if they're sold out, it looks like vacationers have forgiven and forgotten. >> unbelievable, sold out. if you want on that ship you can't. the other 2700 passengers beat you to it. now, right around florida and texas and it's going to go back out to sea in the gluks. you remember, no electricity, no toilets for that matter nd everybody seems to have forgotten and the stock is up. everybody jumped right back on board and now they've done renovations and they've added some enhancements, sports bar and the tequila bar.

stuart: that's all different. and they've got the passengers back on and sold out and i put it to you, at 32 a share, investors have not piled back into carnival cruise lines, have they? >> no, it's still year to date, a loser. and you're talking about a market that had a great 2013. so carnival remains under pressure and you know, they had several issues, they were plagued by three ships. royal caribbean had one ship that had a tough headline. stuart: i wonder if it's a disaster stock, like toyota goes way, way down and bounces way back. boeing way down on the dreamliner's problems and >> a good intuition and we'll keep a close eye on it for you. >> thanks indeed, nicole. by the way the dow jones industrial average is now down 40 points and that's a follow on from yesterday's decline and we're now at 14950.

we'll keep an eye on that for you. coming up at the top of the hour, the u.s. open has golf and tiger woods is still the favorite to win, but according to the wall street journal don't put your money on it. a harvard educated las vegas odds maker on golf. he will be with us at the 10:00 hour. by the way we've got word they've suspended play at the u.s. open because of the weather. suspension of play, it was-- it got off earlier today, but they've suspended. bad, bad weather down there. check the big board again, please. we're down 34 points, a modest loss. check the price of oil. oil is down just a little bit. $95 per barrel. america, land of opportunity. especially for immigrants like me. but those opportunities we hear are dwindling and it's all because of congress. so says john stossel. he's next. ♪ announcer: where can an investor

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>> look at this, large hail, storms, flooding in the midwest. it's a massive storm that passed through the midwest and forecasters, the derecho, we're telling me that they didn't develop. it's my daughter's prom, this is not good news. and stop laughing, stossel. i bought a big dress. the government is taking extra precautions because of this and given the federal workers option to stay home. the tweet, federal agents in the d.c. area are open to employees having the option to unscheduled

leave or unscheduled telework. and we've got this, too,s u.s. open, the golf tournament, play has been suspended for the day, terrible weather down there. the american dream, i am living proof of it. yes, i really am. no jokes, but john stossel says that congress is killing that dream. he joins us now. john? >> i'm a product, too. my parents were immigrants, but there is he' a website now called entry denied.org you can check with your parents and grandparents getting in today and by and large they would not. and my parent wouldn't be able to get in. it's much tougher. stuart: that's fascinating. i would like to go to this website. i came here in the early 1970's. would i get in if the new rules apply? >> i think there's a special stuart varney rule to keep out. canada put up billboards in places like silicon valley and engineers, we train them, pay

for their education and boot them out and barely issue enough visas. saying you're having trouble with america, go to canada. for a $75,000 investment you'll stay. stuart: are you saying that the immigration process has been politicized so we can't say, hey, we want you guys because you've got the talent and the brains and the education, but we don't want you guys 'cause you don't. we're not allowed to say that? >> that's absolutely true and we have all of these rules, you can bring in relatives, but we really need the skilled workers and the unions said you're going to take our jobs, but look at this. yahoo! google, ebay, liz claiborne, all of these companies that employ americans created by immigrants. these are people who, like you, have the guts to leave your home and try something new. you're a special kind of person to have at that kind of guts and you're likely to contribute to

america. stuart: do you think that the american dream for immigrants, you think, is being stepped on and it's the government that's doing it. well, you're a libertarian and that's your traditional position, right? >> we say open immigration built america, but you can't have open immigration when you have a welfare state and when some people want to murder us. stuart: well said. i want to digress to a different subject. you are a libertarian. >> definitely. stuart: now, the nsa has been collecting and storing a lot of records on electronic communications and i say that's okay. that is okay with me so long as it's just in the fight against terror 'cause i want them to have those records and keep me safe. now, you're a libertarian. and-- >> and libertarians say this is awful and there are all of these people. 5 million people with security clearances and we give all of these people the power to snoop around and government's incompetent, but i have trouble getting worked up. i've given up my privacy to facebook and google and they know where i'm looking around,

but we'll see what-- >> you and i agree on this. you're a libertarian and i'm not. >> still thinking about it. getting nervous. states say they're saving us, but i don't trust them. >> your show tonight, right. 9:00, all about-- >> immigration, what should the limits be. >> why didn't you invite me on the show? or did you? >> because you're already in. actually, i think you did. didn't have time. >> no, it's just late night stuff and i'm dead. john stossel 9:00, great show called "stossel" on the fox business network. let's get to the price of gold. the stocks are down a tiny bit and gold down $12 an ounce, moving further away from 1400. look at the price, 1379 as we speak. what do rock and roll and the economy have in common? just ask the outgoing white house economic advisor. my take on his, what i call outrageous comparison is next. ♪ oh, no, it's only rock and

roll, but i like it ♪

>> there was an ipo that started trading moments ago. it's coty, that's the cosmetics

company. the offering price was 17.50 and dropped, the price is actually all over the place as we speak. it opened below the offering pri price. >> alan krueger is the outgoing chief economic advisor to the president. he had the president's ear on the economy. he made a speech last night. here is my take. in many ways it was an insult to america. he compared our economy to the music industry, he said we had become a winner take all society in which luck plays a very big role. in the music business he says, the lucky and the talented are the winners and it's hard to tell the difference between the two. gee, thanks, mr. krueger. so, it's not hard work that brings success, it's not being thrifty, it's not seizing opportunity. it's not using brains, drive and ambition, no, it's luck. you have to be a winner in life's lottery. that's how you do it, he says,

you are wrong, mr. krueger and you are part of the movement that's changing the very nature of american life. in his speech he goes on to say that president obama's economic policies are giving opportunity to the middle class and those struggling to get into the middle class. wrong again. opportunity comes from dynamic private sector growth. that's something your policies have failed to produce, and worse, you are trapping people in poverty with your handout policies and your slavish support of the teacher's union is trapping poor people in lousy schools. here is one thing you've been good at, mr. krueger. class warfare. you've convinced them it's to chop down successful people and we have to live with this for years. we will only get out of this mess when we return to the central truth of american success. work hard, get an education, compete, aim high, luck's got nothing to do with it.

charles? >> i agree a thousand percent. even if you thought the music was mediocre, the people who get played are typically those who work hard. we've heard tons of stories, people who sold their own cd's out of the trunk of their cars and tried over and over again. america is about busting your butt, i know you don't like that word, and working hard. whether you think the music is mediocre, luck is nothing to do with it. by the way, it was another speech where people who deserve praise didn't get the praise and for some reason the people who haven't lived up to what they could be living up to as americans was seen as victims or pitied by someone who should know better. stuart: thank you, charles. thousand percent agree. the u.s. open play suspended today. but tiger woods is still the favorite. we'll tell you why you might not want to bet on it. plus, one of the big time investors in legal marijuana who will hear pitches from prunes.

a -- entrepreneurs. >> if you don't like the government on your phones, we have the man on "varney & company" next.

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with the spark mil card from capital one, bjorn earns limited rewas for his small business take theseags to room please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businees deserve limited reward here's your wake call. [ male announcer ] get the spark siness card from capital one and earn unlimited rewards. choose doublmiles or 2% cash back on every purchase every day. what's iyour wallet? [ crows ] now where's the ooze button? stuart: tiger woods is a favorite at the u.s. open but we will tell you why you may want to bet against him. set in the odds in vegas on the gulf is here. plus entrepreneurs, they might be made in legal marijuana.

we don't want the government listening to your phone calls, there is an app for that. we have the man who sells it. and the number we are watching that tell a lot of our interest rates and the housing market. here it comes. ♪ stuart: 3.98% is the latest rate on 30-year fixed rate mortgages from freddie mac. as near to 4% as you are going to get. in new york today. not sunny vegas. 4%. is that going to slow down the housing recovery? >> assuming there are houses to buy, i don't think so. people who lost everything will be willing to pay that 4% thinking back four, five, seven

years ago what they were paying. if they qualify for the loans i think they'll still get into it if they want to own a home. the inventory is very bad. in las vegas and florida the hedge funds are buying everything. if you wanted to buy a home right now in vegas you cannot buy it unless it is a newly built home. to buy the short sale properti properties, real estate home properties and private lenders, they are buying everything in droves. what they do is they rented out or they get 20, 25% down, people will pay for that. in lease options, people want to own again. stuart: these are not people buying homes. >> what is happening is you can

go for examples las vegas and buy a new home, financing at themselves. that is a variable. it is very good in las vegas right now, that those are the ones the hedge funds are buying big time. stuart: that was ground zero, the prices have dropped. and then in came the investors. jack price all the way back up again? >> there is nothing out there to buy right now. two things really quick that will happen. in the state of nevada and florida they are changing the availability making it easier to foreclose in another month. the wall will be signed by the governor. lenders will take the homes back, supply and demand will change. florida they're going to nonjudicial foreclosures.

they pass this law were they don't have to go through the court, the judges are fed up with these cases over 900 days closing a home in florida. more inventory, supply and demand will change but things are getting better. stuart: 4% mortgages will not make that much of a difference for first-time home buyers. investors will have more product on the market in florida and in los angeles. >> no question about it. stuart: check the big board now, up 32 points. , in, charles. we have a global set up outside of the united states. you are not worried, are you? charles: i am not worried. 100-point moves on the dow scare people but at 15,000 it is not like dow 10,000 or lower.

for me it has been somewhat orderly. a whole lot of advantages for a pullback particularly if you are bullish in the market. stuart: let's get back the central argument. you say this was built on the back of ben bernanke printing up a storm. you say not so. built on american corporate profits overseas. charles: that has been the main driver. stuart: are you ready to admit you are totally wrong? charles: absolutely not. the stock is up big this morning. the shirt people. they started making options with the coal miners. stuart: you always bring up these little things. charles: people buying those shirts are not buying it because they wonder if ben bernanke is going to cut interest rates or not we ha.

stuart: somebody just said 10% in my ear. what? nobody said anything. they don't want to talk about it. dow jones industrial average up 32 points at 15,027. two stocks in particular our update today. nicole, coming in first. nicole: weight, weight, nobody said anything. false alarm. 23% to the upside, "usa today" owner obviously the big news here is they have agreed to pay $1.5 billion broadcast, it is all about broadcast. making obviously bigger broadcast part. the other thing is that almost doubles the broadcasting assets.

a bigger part of their realm. safeway. this is big news for empire, a canadian grocery chain store. acquiring the assets. this is a big web over in canada. the big story in the state is they got paid beautifully for those assets. the premium is up 12 and a quarter percent. stuart: that is a big gain. we all wear these things in our era, sometimes we hear things. charles: i like it anyway. that gannett move is really impressive. particularly in the make the acquisition the shares go down. pretty interesting. in the old media business. stuart: listen to this, legal marijuana industry startups

headed to wall street, they will pitch their moneymaking ideas to investors. one of the people running this event, and it is an event coming up, the ceo. welcome to the program. >> thank you for having me. stuart: a whole bunch of high net worth investors. you're going to have a parade of people lining up making their pitch for these investors come to me, give me some money and i will make you money, is that how you are going to do it? >> exactly. a whole bunch of new states have come online with washington and colorado to legalize marijuana for all adult use. stuart: this is an event held someplace in new york city, all of these people and you are bringing the pot industry. >> just likeethe show "shark tank."

stuart: i was just going to say that. >> they pitch and pepper them with questions and hopefully there are some deals that get done. stuart: so you are a part industry entrepreneur. you are the middleman. how do you make your money? >> we have membership fees. they pay a membership fee to join. stuart: you milk both sides. >> one of the reasons is because we don't take a piece of the action on the deal, they could make the kind of investments and deals. stuart: i had to ask this first, is your whole business predicated on the idea fully legal marijuana will go nationwide very soon? >> absolutely. many are there in part because it is an impact move. they want to see not a single adult is punished and the development of responsible and

preferable industry as a key aspect. charles: getting a waiver for testing out the product. did you speak to bloomberg about this? stuart: that is a good point. bringing high-grade marijuana and pass it around and say this is good stuff. >> these are all things up in the company that has like a co2 extraction machine for cannabis oil and security firm that does security for retailers and licensed cultivators. they say in the gold rush the people who make money were the ones selling the genes and pickaxes and everything else. the same will be true in this industry. being almost no legal risk to that. in the next six months 12 months wwill see more investments directly in the expenses.

stuart: will you bring together the investors and the pot farmers passing around their products? >> i would think that is not too far off, less than a year. stuart: whhn is the event? >> it is tomorrow. stuart: that was very good stuff. turkey and islamic democracy on the brink, a prime minister issuing the final warning protesters, another arab spring in the making. we will have it for you after this. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪

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stuart: apples reportedly expanding its line of iphones to compete with samsung. apple will release two new larger iphones with a cheaper phone that comes in a bunch of colors. apple shares down to dollars. walmart hiring workers calling them flexible associates. and obamacare hedge, maybe? yahoo announced it is cleaning up old and unused usernames in the system. usernames that haven't been used in a clear year will be clearer deleted.

turkey prime minister send a warning to the protesters, get out now. more on that and the situation @oming up. we gavpeople a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 9. d that's a great thing. but even thgh 're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of the years. ♪ to enjoy all of the years. if you've got it, you know how hard it can be to breathe and man, you know how that feels. copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment that helps open my obstructed airways for a ll 24 hours. you know, spiriva helps mereathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhale for sudden symptoms.

tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swls, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. does breathing with copd weigh you down? don't wait to ask your doctor about spiriva. stuart: charles payne is here, says he will make some money if we buy into research in motion. what quest mar? i did put blackberry on deathwatch. charles: immigration and customs

said we will drop the blackberry after eight years because we think number four in the business and don't even know if they will be in business. those low expectations played a role. but also what you see with suppliers is it is probably better this morning. you don't get that often on wall street. a target of 22. they have an uphill battle but 35% i think breakout in 14. my target is 18. stuart: another five, 10% up if you are right. and a $14 stock is a day trader stock. charles: you may see some people hold onto this. this may be the catalyst to send the stock significantly higher. put it in your blackberry if you have one.

stuart: look at the latest from turkey. five people are dead, 5000 injured. the prime minister has had enough, issuing his final warning. leave or you will be taken out within the next 24 hours. joining us now. welcome back. it is good to see you, but the circumstances are grim because turkey in my mind was always a moderate muslim democracy that was very prosperous and going places and growing. it was a standout in the muslim world. would you make the judgment it is in serious trouble and democracy has to be questioned? >> there is no doubt. this is a natural evolution of getting into power democratically, we will have

this in egypt, waiting to see it in iran, and it is a harbinger of what will happen in the middle east and revolution 2.0 and 3.0. turkey has led the way. it was a stable democracy. but they burs basically saw it a license to do what they want. i rested because of a tweet against islam. more and mmre rest against islam. simply demonstrating to preserve a green area in his temple. this is the last straw. the cyclist, minority groups, they cannot buy a new church, these groups are beginning to say you know what, political islam is not working for us

because it is not compatible with democracy. charles: talk by prime minister at all elected three times these time a wider majority. this has been one of the most incredible miracles in the world. they went to war with grease, have political oppression, it is dangerous in my mind to go after this for this particular group, they are problematic when they promoted democracy, promoted capitalism because alternative will be a lot worse. >> as a muslim i have to disagree with you. i understand political islam. it is not leaving an in preservg the rights of minorities. they will put on the veil of protecting minorities and tolerating them that the end of the day, is a premises ideology

that has never in the end and compatible with freedom. just as europe ended up with others, a lot of times political islam can degenerate into fascism. democracy in america is the protection of minority groups and how you deal with mass demonstrations and how you deal with minorities that want their rights protected. revealing finally the real stripes, which is not about freedom. maybe about democracy, but it is not about liberty. stuart: do you think turkey faces an economic crisis? an economic crisis because they have a huge debt outside of turkey in which they had to finance with the declining turkish lira. economic crisis to come? >> i think so. right now they're one of the strongest in the region but i think we need to follow our

principles, our ideas with economic pressure because as we put more economic pressure we will see change toward liberty while as we are trying to do in egypt the brotherhood, we will give them a pass, economic pressure brings better change internally. stuart: we always appreciate you being on the show, thank you for joining us. >> thank you. stuart: worried the government is snooping on your text messages and phone calls and e-mails? fear not. one company that promises you secrecy. next.

stuart: a big ipo today, it opened, but i think it is lower. nicole: it is down 3%, not good news, but i can tell you they can buy under the koty umbrella. they have so many names. they gave all kinds of things from this.

stuart: they give away a lot, lower than the offering price. nicole: you want it to take off. the market originally flat. stuart: thank you very much. the dow is dead flat. 15,000 right there. i call that flat. are you worried the government snooping on your phone calls, text messages? our next guest has an app that stops it. if i take this app and i am making a phone call or i am making e-mail connection with somebody, you encrypt that message, nobody is snooping and can't listen in. >> yes, we offer encryption.

it is a voice, text message but not e-mail at this time. stuart: you are encrypting my information. the people i'm worried about our the nra and china, supercomputers. >> you need protection. corporations need protection. stuart: are you giving me that protectionism is trying to crack your computer with a supercomputer? >> it might take 30 or 40 years to break the one message. stuart: i log on, i get your app for free. >> free for three months. every time you invite a friend, we give you another month for

free up to a year. had to make some money. stuart: downstream cash flow is what you're looking for. how many do you have signed up? >> we have many thousands and we have doubled the last couple of days. stuart: you just doubled? >> in the last 24 hours. stuart: so that is good news. >> people are suddenly realizing mobile is not secure. they are getting it. stuart: you are based in south africa? >> we are. for good reassn. we don't want to have your server sitting in the continental united states at the moment. stuart: are you private? >> we are a private company. we might eventually one day go public.

it might take us another six months. stuart: suppose you got 10 million users and had them for a year, charging them $3 per month. and your costs are really fixed. >> it is an app, it is a collection of private investors, i am one of the investors. i am getting toward the 10% mark. stuart: i have opened up our entire fox viewership to you for a commercial. charles: it is very interesting. stuart: a guy taking advantage of a scandal, british accent.

rothe chairman, you are the ceo. time's up. you had a great commercial. thank you very much for joining us. >> it is a pleasure, thank you for having me. stuart: it is a rainy start to the u.s. open. play suspended today. tiger woods is still the favorite, but not so fast. according to the "wall street journal," do not put your money on tiger. we will deal with that. vo: traveling you definitely enup meeting a lot more people but

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stuart: the supreme court just handed down a ruling on whether a company can patent human dna. the supreme court says no, he cannot patent human dna. the judge is here. this ruling just came down. >> we talked about this. the court argued back in early april, the corporations are attempting to patent dna they extract including once they can tinker genetically and the court says not patentable. you may have slightly modified. stuart: even though it is a slight modification, you still

can't patent that. >> does not appear in print anymore. stuart: you approve of this? the front page of "the new york times." the lead news story, this is the lead news story. agencies assembling records of your dna. according to this report, you don't have to be a suspect in a crime, correct? to go and track you down, take a dna sample. charles: in the minds of the police you don't have to be a suspect under the constitutions you do. three years ago the police were

trying to get dna about a murder suspect. plenty of evidence against him but not enough to arrest him. an undercover cop sat next to him in a bar, but may drink, took the glass. fingerprints on the glass were enough to get dna at the scene of the crime, evidence introduced in trial and was convicted. a bona fide suspect as to which there was evidence of guilt and suspicion. if the police follow you to the five-star restaurant, sorry about that, and you took your water glass or champagne glass before it went to the restaurant -@dishwasher just because they want information about you without suspicion of wrongdoing, that is profoundly unconstitutional and yet according to "the new york times," it is done thousands of times by the n.y.p.d.

stuart: the n.y.p.d. and other forces are assembling a database of dna. >> they were emboldened to do so by supreme court's decision to be filled in which the court said the government can take dna from you if you have been arrested for violent crime, interpret that you think the government can get dna from you for any reason. charles: we're talking but what the police think his justification. what makes a legitimate target of suspicion by police? >> articulable suspicion. meaning the police must be able to articulate to a judge a valid basis for the suspicion. if they can't, there is no basis whatsoever. they can't just go out and gather evidence on people.

they did that and we wanted to prevent it from happening. stuart: you are making me turn into a bit more of a libertarian. look at what we have here, the nsa picking up all kind of electronic information, records and storing them for a long, long time. assembling a databank of dna. >> we have the cia attaching to the computer chip in your microwave and dishwasher so it knows when you're in your kitchen. when the general was a head of the cia acknowledged as much in a pc thought was secret and somebody taped it and transcribe it and posted the transcript on the internet. stuart: so that means is there to become a police state like that, really, really quickly. >> and since phone information now tells the government where you were when you made the phone

call, they can trick th track eg you do during the day. stuart: you can track anybody second by second just about. >> do we want a society like that? stuart: how are you going to get away from it? >> when people are confronted by fear, shop for safety over freedom. the opposite of that. stuart: have to go, because i'm going to talk golf. the first round of the u.s. open suspended due to bad weather today. tiger woods is still the heavy favorite. but we have a calm in the "wall street journal" that says you should bet against tiger because of where the tournament is being played. joining right now, whe you wento harvard, didn't you?

>> i did, sir. stuart: what an elitist. the 9:2 odds. that is where you have tiger, the favorite, correct? >> yes, that is correct. stuart: what do you make of the "wall street journal" story that says it doesn't play well in the northeast which is where the u.s. open is being played. >> it is easy to say tiger is not going to win because you get 150 players that will. the question is will he be in the top five? i think he probably will be. the reason they "wall street journal" editor said that is because this is a short course with only a couple par five, so this course is more about accuracy whereas tiger has an advantage when you can drive and get to the green in two. that is why he said that.

stuart: number two on the odds list is rory, 15:1. yesterday he did not do a practice round, instead he went to philadelphia and ran up and down the rocking stairs. did you know that? >> if i had known that i would have raised him to 30. stuart: number three is the masters winner, adam scott. 20:1? >> yes, correct. and you are asking me how well he would do. i don't think any of the three guys you just mentioned are going to win. they are good players, but adam scott is one of those guys when his game is on from the beginning he has a good round, and we may find him faltering early. we may see one of these guys 75,

100:1. i don't want you coming in and betting it at my property. stuart: i wouldn't think of it. the long odds on all the playe players. it makes it very attractive. >> we will be updating the odds each and every day. golf is one of my favorite friends gamesto book. today we will not get any action, but we will make it a five day event. stuart: there you have it. always appreciate it. the dow up 34 points. not bad. the rest of the world is selling off, but america modest ground. it is a viable, successful, secure government run retirement plan. not social security, we are

talking the australian pension plan. we will deal with it next. nd td, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. noge200 free trades when you open an account.

you will lose 3 sets of keys 4 cell phones 7 socks and 6 weeks of eep but one thg you don't want to loses any more teeth. if you wear a partial, you are almost twice as likely to lose your supporting teeth. new poligrip and pident for partials 'seal and protect' helps minimize stress, which may damage supporting teet by stabilizing your partial. and 'clean and prec kills odor-causing cteria. care for your partial. help protect your natural teeth. stuart: and economic number owed this morning, the number of people buying first-time jobless benefits down 12,334. let's check the big board, not really related to best news. 34 points higher above 14,000.

the triumph has returned. carnival cruise liner stranded with electricity working back on the ocean after $115 billion worth of repairs and upgrades. to the housing market, the latest read on a 30-year fixed-rate mortgage, 3.98% up from 391 last week. very close the ad coming up, which country's population is a fraction of hours but half of the retirement funds? you will never believe it, but we will tell you next.

stuart: right now we have for you a country with a successful, viable, solvent retirement plan run by the government. ambassador of that country is here. australia's ambassador to the united states joins us now. congratulations, and welcome to the show. >> it is very good to be on your show. while it is true what you said about the government obligation on all employees who pay into the employees. the funds are basically private. you can choose what you want to put your money into. stuart: totally different from social security. in australia if i work in australia have to pay into the pension plan.

but i decide where that money goes. i decide where it is invested, that is correct, right? >> you don't pay it, your employer does. it is not like a pension fund where the employer organizes the pension fund. the employer asks you where you want it to go. the truth is most employees don't actually have a view on that. you find most people would be covered by a fund their employer has established a relationship with. the point is while that would apply for most most of the time, you have a choice, you can go to her employer and say i want to go to such and such a place. he is obligated to ensure that happens. stuart: is that account mine? if you're paying into social security, that is it, the money

goes into a big pool. but is it part of my state? does my spouse or my children inherit the chunk of money i laid up in the pension plan? >> they do. that is part of it. when you go into retirement you may choose to take an annuity as compared to a lump sum. if you take an annuity it is possible, not to a spouse, more broadly is passed on to the kids. mom son passes on with your will stuart: basically a privatized tension system. this mandated by the government, you have the panthers pension plan but essentially it is privatized. >> we have also a government,

heavily means tested, what we anticipate will happen over time. probably anywhere up to 8%, 85% the public will go off any form on the government. there is a backup to keep you okay. the point is not to be off. stuart: my son works and lives in australia and loves the pension plan. he thinks it is absolutely terrific. we appreciate you coming on the show and explaining how it works. how the government essentially runs a successful privatized pension plan.

>> 1.7 trillion in it, and the large amount that is invested in the country, so we depend on the success of that fund on you. don't you go wrong. stuart: we are doing our best. good luck to you. that was excellent. the most important sport in the world that can and in a tie. and the best player is accused of tax fraud. we're talking soccer, also known as futbol over there. in a moment.

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stuart: one of the highest-paid athletes in the world just has been accused of defrauding the spanish government more than $5 million. unpaid taxes. the response on wednesday, they say he circumvented his tax obligations be using tax havens like bullies do you have any idea what we're talking about here? charles: this guy is the best soccer/futbol player ever.

forbes says he is number 10 on the list of moneymaking athletes. people don't like to pay taxes. people work for their money. spain has a serious problem. a huge tax rates. if found guilty 150% of what he owes and there is no jail time. our cases would quadruple overnight and that is what it was like. stuart: we are pointing out is an up-and-coming sport in the united states because americans watched dr. games taking place in europe. charles: it is up-and-coming. stuart: it is not a game, it is a match.

charles: i'm getting there slowly but surely. i remember pele. stuart: and message from roger ailes after this. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your persalized portfolio. find out why 9 out of 10 large professional investors choose ishar for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks,harges and expenses. read and consider it carefully before investing. risk includes ssible loss of principal. investment objectives, risks,harges and expenses.

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stuart: and now this. from our boss. >> federal government is about to higher -- [ laughter ] >> more irs agent to enforce healthcare. no wonder they need guns. [ laughter ] >> we already know that the irs is arrogant. they waste as much money as other government agencies. they cannot line dance. [ laughter ] >> we do not need 16,000 more people who cannot line dance. we do not need more people with

guns enforcing our healthcare. all right, randy, get your hands up. we are tired of telling is. take your metamucil. charles: for the last three years, four obamacare, the irs said he did a budget of 800 million. it is frightening. it is scary stuff. 13 billion from a couple hundred million a year. stuart: that is the overall budget, surely. charles: bottom line, though, they are building an army and it is frightening. stuart: difficult stuff.

dagen: thank you so much, stuart. how do like him now? edwards noted talking to the chinese. leblanc founded an event this he is concerned that our lawmakers pose one of the biggest threats right now. what would it take to get you on board this cruise ship? wicked weather grounding planes across the east coast. most notably in the nations capital. those stories and much more at this hour on markets now. ♪ connell: i know one of the things we agree on is we actually hate these cruise ships dagen: their thinking has to be -- well, they will not let a fowl have been on