people's lives is it not worth it. >> the qualify of care is going to go down. neil: care is a big debate, we'll debate it tomorrow, see you then. we begin tonight with breaking news. obamacare reversal the white house delays penalties for larger employers that don't provideealth care coverage for another year the penalties were to start next year but now are getting pushed off until 2015 with a director of the manhattan institute center for medical progress welcome to the show. it looksks like the federal government must be been

seeing or yielding that the delines are too tough to meet? >> also the realities that business exchanges were supposed to be set up are not ready to be fully implemented. so the reality is they see problems ahead and better to delay thahave an embarrassment. melissa: does this mean a fall on delay for reforms we know whh? >> they could take a breather cback showers and employees that they did not offer crcredible coverage now did not have to worry out it for anotheryear some maybe a boost to the economy gerri: many have already taken steps to comply. maybe you ange the way you do busines they were told don't worry about it? businesses have got to be

happy they will not pay the penalty they already changed business practices but it is breathing room for those who have higr insurance cost and perhaps get rid of it entirely. gerri: that is the thought all of america with the requirements for taxation and think 16 taxes with others to come. ifou look at this it is a positive but if they delay until 2015 what is the possibility from their? >> why not get rid of them altogether? what is the benefit to penalized employers? if ty can afford to it is business competitive why

penalize american in companies? >> there must have been a lot of complaining. and with it jeff immelt paraded through the white house has there been a litany of complaints about requirements for obamacare? >> even in community lleges are dropping coverage is a you have a lot of stories that this is common sense of. >> is interesting to see how what plays outut this is aboutobamacare but the los angeles scol district gets almost $1 million toa the students teach the community aboutbamacare. i don't know about y but

why don't we teach them how to read and write or do math? >> one out of three children is -- unless angeles fail to graduate. so we ould actually learn rather than go home.

23%, how hard is that to do? is that an impossible goal? >> it is a drop in the bucket compared to the billions of dollars the federal government spends on buying stuff,ut if

you look at the government contracting it is not user-friendly. the average small business spends $100,000 per year to compete for federal contracts and it takes aut four to five bids before they win one of those contracts. that is a lot of time and resources. small bunesses don't have that. it takes away from opportunity. we are focused on the work,hey are taking their eyeff and resources off of building other opportunities. another issue for small businesses are contract funneling. gerri: before you get to that, i want to take you to something else. this has been a problem for years. the federal government has mandated this and ignored its own wishes. congress passed a law saying give 23% of these contracts have twto go to small business. when you go back and actually

look at the contracts, what you find is the ones said to given to small business, that is no happening. they are being given to big businesses. >> i think your point is this was mandated, this is a law, not just a goal, and an nice to have. the top coanies, the top 100 companies that got small business contracts, 72 of them were large businesses. those are not small businesses. there are loopholes in the process that allows that to happen. one of the problems has to do with size standards. a small business is anything with fewer than 500 employees and less than $50 million. gerri: that is not my definition a small business. i think of something much, much smaller, and i think most americans do. step back five paces, it is not just the problem with this one.

the problem is with small business generally, a disconnect really you have to say, what is it we can'get with the small business administration to nd to small business. ey have such a poor record. >> they do have a poor record. they tried to do away with it, and the democrats raised up and said we can't do that. in my opinion they spend a lot of money on nothing, a lotf taxpayer money on nhing. we spend our money producing videos telling us what a great job we have in the post them on youtube. we just had small business week with a lot of events going around, the piticians and corporate sponsors could have photo ops because small businesses are participating in that. during the height of the recession, small business lending from the fda went down.

the bank actually specializes in loans, your chances are slim to none. if aank says yes, i guarantee that loan, and the business defaults on the loan, goes back and says cough up your amount, they can review the underwriting policies and if they disagree with something, they can back out. gerri: if you are subject to some sort of external review, why bother? if somebody defaults you want to move on. >> they are not doing the guaranteed lending they should be doing, they are doing a lot of redundant activities that other agencies do really tter. in my opinion you can roll a lot of the acvities into the commerce department and let the

other agencies take over and do what they do best and we don't need them. gerri: i appreciate your time tonight, have a great weekend. >> thanks, you two. gerri: now we want to know what you think. should federal and state governments give more contract to sma business? log onto gerriwillis.com. we will share the results at the end of tonight's show. more and more to come including an answer to t question how do you that. advising knowing who and whwheno tip. and if you attend one of these, you're more likely to default then graduate. details coming after the break. (announcer) at scottrade, our clients trade and invest

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gerri: you have got to hear this new statistic which sheds new light on college that. hundreds of colleges across the country now have more students defaulting on their loanshan they have graduates, that is

right, as a price of college continues to soar. thank you for coming back on the show. it could happen, how is this so? >> to colleges say this because of the social economic status. i think they are right in a way because young people have neve been more worse off. only four in 10 young americans can find full-time jobs and half of college graduates are underemployed. the point is higher education is also offering a diminished product for a higher cost. average tuition in the last four years has gone up 25% and young people cannot find work, you could make aillion dollars more in your lifetime if you got a degree. now that number is down to 300,000. this is just another result of a poor product in a terrible economy. gerri: it is hard to get your brain around these numbers, it

defies logic. colleges have more defaults then graduate, right? as an exple graduation rate is just 5%. default rate 20%, and let me give you another one. university of phoenix in san diego, graduation rates 10% defaulted 26%. no doubt a lot of this has to do with the rising cost of education, we have seen a lot of that play out. if you can fog a mirror, you can get a federal loan for college. >> there is o unlimited access o student loans. the problem is we are setting young people up to fail. the problem is what we're doing is handing people thousands, tens of thousands, sometimes hundreds of thousands of debt to start off their career.

almost worthless. any other industry was doing this, they had raise tir product and it had diminished in vae, there would be a congressional investigation into what the heck is gogoing on. we have nothing that kind of outrage in congress or from the investment either. gerri: we all believe the only way to get ahead is to have a college degree, and it does not matter how good it is, it does not matter if it is on cheap skin or paper or what kind of ink was used, just having it is all that matters, and we have sort of the valued what it is to ve a degree, you know what i mean. what you say about trading a permanent underclass is ght on, what dyou see in this conundrum? >> washington has to realize

they are basically affording along these policies and put us back into position where young people are bei hired. if you have anything less than a great job, 40k or more you can affo your student loans so to get this economy stabilized and going and hiring young people go and do hav have to have competin inserted back into it. right now with the nationalized student loan industry they canut loans, and there's nothing to stop it. gerri: quickly before you go, want to ask about the doubling interest rates on udent loan debt, should it happen? it only cost $7 per month for students, would you want to pay the extra $7? >> we have established the real problem is tuition.

if i want to buy mercedes, the problem is mercedes is too expensive. what the federal government should do, they should not raise the rate, the federa government is making $0.36 on every dollar they landed in student loans, that is outrageous. they should investigate themselves i. gerri: unbelievable story. in a matter of a few hou, when from the green to down aroun 30-point spread they shake off all the good news of home prices andmanufacturing. creeping into the $100 per barrel mark for the second time this year. traders anticipating a sharp drop in u.s. supply and a cause for concern. former ceo losing his bid for a parole hearing.

the 50s israel convicted of fraud for stealing from the coany. his attorney says he will keep trying. federal trade commission has find the trade commissioner in response to complaints he did not submit the required paperwork when he acquired shares of coca-cola. they point out he has since fixed the problem. those are some of the hot stories on foxbusiness.com. more coming up later in the show. china taking over a piece of american seem everybody expecting to see how much do you give, details coming up.

gerri: from the resource to fast food j

gerri: how much should you tip? it is a dilemma we fa every day, but being generous at unusual places can pay off down the road. joining me, pam, welcome to the show, great to have you here. very contestable segment because a lot of people don't like to feel like they are being forced to tip. what do you say are the rules of the road? >> i think we have to look at what are the traditional positions that are out there that you do tip, the wait staff and hospitality industry, those are traditional regular ways to make a wage to make an income,

so definitely we are still tipping. gerri: i feel like i know that, 15 to 20% depending on my experience or less if i am unhappy. there are times i have left no tip at all lot more than 20%. you tip sonic, really? >> with sonic, look at how you are served, if you are being serviced where they come out to you and deliver food to you and bring you the necessity you need for th meal, absolutely. would you tip 20% to sonic? they be not, maybe 10% is fine. gerri: i forget they come out to your car. hotel housekeepers.

>> housekeepers do a lot of work keeping your room clean especially if you are staying there several days, usually two to $5 per day is acceptable. you leav it in a nice note and leave it for them. gerri: tiing the dog sitter. >> they have their set fee, but maybe they took the dog on short notice, maybe they are based when they return them to you, 10, 15% is good as well. gerri: landscapers? >> landscapers you are paying on a regular basis. gerri: i am paying my landscaper like you would not believe, the last tng i will do is give him a tip. >> if somebody does extra rvices for you or something for you like cutting down trees

and those things, there is a payment for it but maybe you have been using him for several years and he is always on time, dedicated and he wants to give him a tip at the end of the year, that is fine. we don't have to tip every time you pay them. gerri: i guess you have to use your own best judgment. in new york city everybody gets tipped and they get tipped a lot, but it is different in different parts of the country as well, right? >> correct. more in the big city and destation management areas is where a lot of theipping oakhurst, florida, new york, higher tip as well. if you are walking up and you are going through and carrying all of your food and filling your drinks and finding your seat, it is not necessary to tip

with the tip jar at the cash register. gerri: thank you for coming on with the rules of the road for tipping etiquette. coming up is an institution and american instituti i could be taken over by china. facing backlash over the buyout. live coming up. and we are back, the u.s. auto industry roaring back after four years of putting on the brakes. we have details coming up. i want to make things morsecure. [ whirring ] [ dog barks ] i want to treat mo dogs. ♪ ourusiness needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the curity you need to get you there. call us.

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>> and the u.s. auto industry is back with a vengeance so much sohe export dynamic the future looks bright exported er three times the amount from

10 years ago. june sales are up big after another strong month is it another sign the auto industry is back on track? let's bring back from kelly blue book, carl, why is this happening? >> a lot of factors. the auto industry was the bright spot for a long time but now the economy helps out with housing and a drop of unemployment everything works together and it continues to push the sales higher. gerri: are the auto plants more efficient? >> they are. there were things in the auto industry was the last five years with restructuring but it did make it stronr and more efficient. the pay structure and cost structure is more efficient that is why they have a better chance on the global scene. there isn't much delineation

>> i remember when they said the american auto industry is dead and never coming backck because of high labor costs. and they were not that innovative. that was a problem for a long time. what happened to change the culture? >>? >> they realize they can no longer assume people will just buy it there were too many competirs and the economy did not work and they had to fix all of that. gerri: in june looked good in partular is there any reason that month did well? >> there were a lot of incentes for theruck market is growing in the manufacturers make a lot of money to establish a foothold so all the domestics put incentives on

the tucks there are too the silverado and is of ram 1500 day are new or substantially updated and really good. they're ready for a new track if they are a contractor. gerri: people have been waiting to buy for so long long, which jews think have appealed to the overseas markets? >> general motors has a foothold in china for some time and you wake has-been's a favor brand and they are growing and ford is coming later but building rapidly. and bolts white bin is strong in china. that is the action and people areumping in quickly. gerri: how have we ameliorate the labor cost problem? has it gone up in other countries? >> i is mostly the two-tier pricing and paytructure

for the plants so those who have been there did not lose the pay but the people coming in were lower by working to a higher pay grade in they also got efficient with time off, vacation, a benefits which is wt it needed to do. you would rather have a smaller will employ a force than one that cannot be sustained. gerri: that is all i have to say aryan glad it i rebounding doing etter. thank you for coming on tonight. one type of vehicle is the most patriotic brand and that list makes up the top five. number five, walt disney. scoring 95 on the patriotic scale of 100. found 1923 the biggest media conglomerate in the world. number four, levi strauss. a good pair of jeans and

cannot get more classic founded 1853. number three, coca-cola. it has seen a lot of branting updatesased out of atlanta. number two, hershey's headquartered in hershey pennsylvania and number one most patriotic period is jeep one of the newer companies founded 1941 in toledo ohio topping the list as a reliable form of a generation with us and said the veure. other companies include gerriwillis.com for the full list. nothing is more patrioti and a fourth of july picnii and some staples come from smithfield foods but a proposed takeover is fanning

the flames of safety concerns and richardson has a date. >> smithfield fits right in with them. it has been american-owned ever since and that is part of the problem with this deal going to the chinese company to purchase smithfield foods but all indications and say we will get it done to the end of the year but there is the upside that perhaps the chinese market will be open to smithfield. the details are $4.7 billion deal of those above $7 billion that is a 31% stock price premium and it is expected to close by the end of this year but with

the price tag one professor says it is a very good deal for the u.s. economy. >> the claimhat we make is we develop these technologies and clear it is of production techniques that the chinese reverse engineer to get access or other surreptitious means. so to pay not on the top dollar but a 20 30% premium for the shares that have developed those technologies? that is global commerce at its best. >> still looking io this next week the purpose of the hearing is to see if the government needs to change the process and they say they will consider what measures should be considered to see what company will maintain operations to comply wi stringent safety and by a security standards to ensure

a taxpayer supported research and development and any resulting intellectual property are safeguarded and also to ensure ongoing integrity of key components of the american food supply. so there is plenty of qutions with the purchase purchase, the largestf a chinese company of an american company in history if the deal goes through if th government give set up okay. gerri: it could fall apart by its being in virginia housing going? i cannot imagine it is hugely popular it is taken over by the chinese locally?3 >> here in end of the virginia you can tell a definite sense of excitement on some levels. that they can rarely extend their operations especially

the local farmers to really expand their business to open the chinese market. but talk about what the company has meant to this community for 80 ars there is a sense of caution they could promise but they are very much weight in nancy for their concerns things are going to operate in much like budweiser in the belgian company purchasing it a foreign company to buy the iconic american company for this part of the country gerri: interesting. thank you for coming on the show. when we come back, looking out for you andermany wth a warning. more than six months later the e money donated to newtow connecticut still, still, still not getting to the victim's. it is the tragedy.

we will look at the we will look at the obstacles coming up. any last requests mr. baldwin?

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what's in your wallet?

gerri: we have been following your charitable donations to make sure they go to the right place but tonight we upper -- update newtown connecticut and millions raised from seven months ago so where is that money now? with us now speaking from a coalition of families, what is the situation wit the many originally held by united way of western connecticut put into a foundation. has a new that been distributed? >> no. thank you for having me. the money still sits in the fund can victims are still waiting to received a gift mon the american public donated on their behalf.

gerri: i. andersonnd there was the meeting between the families and united way foundation? >> there have been lots of meetings and frankly nothing comes of it. they are at a stalemate. e foundation wants to have local control and local people decide how it is dispersed and the families ask that the independent third-party come in with no preconceptions how we should be distributed to come up with a fair and transparent way to be equitable. gerri: what are they fighting over? distribution? >> it comes down to is the foundation has collected the money, the mission was to help the victims and though long term needs of the community. so did its the victims against the community. the community once the money to rebuild the schools, a

memorial, after school programming, and good and worthy things in the community but the public content was to help the families who lost loved ones. so by having a vague mission have set up an issue where they are at odds with one another. gerri: to be fair as statement fromhe sandy hook community foundation spokesperson he said they were private meetings we would like them to remain private and they're not talking about them yet but the last time we quoted those folks we contacted them and they said they expected the money to be doled out soon an a month? have they given any indication of the time line at this point? >> here isthe problem. back in february they

announced they would reveal or release 4.4 million to the victims out of 12 million then there was a huge outcry to say how did you come up with the number? what did you base that on? it is a small portion so they've retracted the statent a said we will give 7.$7 million to the victims and the same questions were asked. how did you come to that conclusion and on what basis is it distributed? who decided this? no answer gerri: we just want to update people to let them know the families of newtown are still waiting and a foundation set up by united way still has not managed to give te money in seven months later after the horrific even to. thank you for coming on

tonight to let our viewers know this issue is still alive and unresolved. thank you so much. unbelievable. still to come a warning to investors and where you should be putting your money ♪ friday night, buddy. you are gonna need a wingman. and my cash back keeps thparty going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com.

gerri: have you checked your 401k? the 64 d makes could take your portfolio as the bond market continues do tumble. fifth out -- how drastic is the fallout and how bad will it get in your view >> talking about long-term bonds it could get pretty bad. we have seen the beginning of the problem in may and june when they took a tumble because interest rates went up the but if they jump significantly like 1994 with x increases in a single year we could see 30 or 40 percent of a loss in one year. gerri: that is the last thing that investors want to hear and unfortunately they would indulge in bonds so is

that a bad idea? >> so loaded with long-term high-yie bonds by emily worried about that that would be much smarter approach inhat environment gerri: it would be frankly because without a tv movie in rates i think people need to know so what type are the riskiest? >> not looking at the screen that you have but generically high-yield bonds , junk bonds and revenue and municipal bonds are all very suspect.

gerri: using a bond of a duration of two years cuckoos to% or 10 years of 10% if rates rise just 1%. wh do you mean by duration? >> everybody is familiar with maturity rates but duration is more technical that's talks about the life of the bonds just use a som bonds because it has a 30 year maturity does not mean it will last that long. judy may is notorious for having a short duration with long maturities. it is simple to find out they publish the average duration in their portfolio if you own the individual bonds you can go to the brok to ask what is the duration? chances areyear bds it has a t r

duration and you are right for every 1 percent change the duration of impact is on the value if rates go up 1% the 10 year duration will have 10 percent if it goes up by% it is 50% loss in those who owned the bonds are retirees and safety conscious and they ran out of stocks and they have no idea what awaits them if interest rates start to rise gerri: so what do you do now? >> go to the three or five or seven year duration they are much less sensitive. used treasuries as opposed to municipal and corporate bonds because they are much safer because the government will never run out of money they just bring more. that is a much smarter approach.

gerri: i think you scared people but i think we do need to put up thelag to tell people what is coming soon if the good news is it is easto protect yourself. gerri: thank you for bringing us that approach.

57 finally asian dishes in this time of year the federal government to breaking the initial promise to hire more small businees to use the business of government. is not of a goal but it is the law. congress established the requirement in the government repeatedly breaks the law to fail to fulfill its. fluid is surprise?

this on the eve of the fourth of july. they can do better than that. that is my $0.2. thank you for joining us. have a great night. >> hello everybody thank you for being with us i in into night for lou dobbs. protesters around tahrir square in anticipation of the military issued ultimatum on president morsi tear keep promises he takes to twitter to demanded the army witraw the ultimatum saying he will not be dictated to ort appearing on the egyptian state television to defend the process to proclaim himself the first demoatically elected leader of egypt by reuters reporting clashes between security forces and protesters with