cutting the irs budget by $3 million. also, the market waiting for bernanke to speak later today. ahead of that, we talk about trading ahead of fear. we told you yesterday about the white house speeding up efforts. a new u.s. base in that country now could be a waste. we also have the man behind dwight howard moved to the houston rockets. all of that and more at this hour on markets now. ♪ connell: basketball and taxes. dagen: hey, baby. what is going on? i have not seen you all morning. upbeat and not angry.

top of the hour. stocks now and every 15 minutes. nicole: good morning. a little back and forth action. we will have to as and p and the dow pulling back. the big story is oil. as a result, you are seeing the price of oil per barrel on the rise. also it is worth noting, the longest since april. the nasdaq yesterday closed to the upside. it closed at its highest level in more than 12 years.

stuart: slashing the budget by 24%. dagen: out of here. will it go anywhere? just start with the budget cuts. any chance that the republicans get a significant cut? >> they could. the irs has been behaving like a democratic political action committee. why one it they want to come from this agency. if democrats to go to that for the irs, i think they should.

connell: dagen asked a key question. will this go anywhere? >> there is some substance to doing this. they added 5000 new agents. dagen: at this budget get bigger for years to come. it is charged with enforcing the health insurance. they may fight this fight today, but this agency will get bigger in size and budget.

>> probably. you just made a great argument as to why they should not. an agency that everyone expects to be acting a politically. i think the public may have some disagreements. connell: the unit is opposed to this. >> they may be a little upset. connell: the union says it would devastate the industry. why do government workers whose jobs are essentially secured for life, why do they need to be in a union? why is this in their contract? >> i think if we elected more republicans in washington, you

would see that the client of union power. there are all these scandals that came together. connell: later we will talk about our relationship with china. one of the effects of this whole irs scandal is the fact that we have been having this conversation. >> short. it also presents an opportunity to educate the public. they have merely been responding to signals.

what is interesting is they have been trying to downplay this scandal. dagen: don't you think that the american people would ultimately want to know how in the heck this went on. i asked yesterday if they would ever find out. >> to the extent that happens, we will find out more. dagen: thank you. we will see you soon. connell: a big speech on fed chairman bernanke.

investors remaining fearful of the tapering. we will focus on fear. something our next guest is worried about. we have plenty to talk about here. you are concerned that we are still fearful of another crisis. tell us about it. >> you got to see a little bit about it in the last couple months. you got to see it in japan when they took a step back away from some of the more aggressive behavior. connell: the fed will come out with the minutes. we will see what they are

talking about. bernanke will speak. what does he mean? what is he trying to say? should we be fearful? you kind of have a level head going into this. >> you always have a level head when it comes to investing. everyone collectively takes a deep breath and hold it until he says tapering or continued policies. we all act vary dramatically. investors need to focus on the long run. the balance sheet has gone from 500 billion to three and a half trillion. that is crisis mode.

connell: you have been negative on the bond market for some time. does the stock market run like it does -- >> i think you have to be extraordinarily cautious in bonds. the fact that the ten-year treasury has has gone to a positive rate of return, that does not give us enough return to justify the risk. i think they will have to push rates higher. i think for stocks, long-term, valuations are okay. if you look forward, you ask this simple question. we think the answer is yes. however, this is the key point, deep-rooted, be disciplined right now. do not let the equities run

away. bring back your equity allocations. connell: always great to talk to you. thank you for coming on. dagen: president bush has been out of office for about 4.5 years now. he is still seen as the cause of our economic problems. a brand-new military headquarters in afghanistan. the military has no plans to use it. the construction of the building

continued for years although it was not needed. now that the u.s. is preparing for a troop withdrawal, the military sees no reason to move into the facility. investors are fleeing municipal bonds. june saw the second largest month. the record only goes back 11 years. nonetheless, the rise in borrowing costs has pushed up borrowing costs for many cities states and towns. connell: just getting started here. we have a lot more to come. we have some more developments and we will update you coming

up. dagen: jack lew talking cyber security. connell: prince versus new media. the trend is to talk up in sun valley. we will take you there live. we know stocks are down a little bit. oil, however, is up a little bit. look at that. ♪ [ indistincthouting ] ♪ [ indistinct shouting ]

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connell: market still got a little bit. we do markets now as we do every 15 minutes. see 20 family dollar right now is up 4%. it is the number two best performer on the s&p 500.

their market share is increasing. they say that customers to remain under financial pressure. overall, the company is doing well. they are saying that they will open 500 new stores this year according to the new ceo of the company. take a look at dollar tree, by the way. a new 52 week high today. connell: there you go. dagen: now it is time for charles payne. we missed him yesterday. charles: profits and coal. today though coal stocks are interesting.

i feel like even though the president has this massive war on coal that these coal stocks were oversold. what is interesting is the one place, i think it was back on, a couple months ago, anyway, it is making a huge move. i woulddstick with this. you look at china, particularly. this stock is up big. i think that it is worth holding. the other stocks that i am getting hammered on, i hope that it is done. dagen: you get fired up. >> it is scary stuff.

charles: i do not think that we want to fiddle around with this. fossil fuel is a main one right now. connell: a measured argument. dagen: related to a story about something very beaux-arts. connell: imagine that. dagen went to the post office and she got mad at some lady. dagen: she criticized by signature and said it was an indication that i had a bad attitude. i bet you good money that that package does not arise.

the latest on not san francisco airline crash coming up. the details get crazy. connell: will go out and get that. inventories came up short today. we will talk more about that. dan, some more numbers in the market today. some weakness up against the euro today. ♪ .

♪ >> 23 minutes past the hour. boston bombing suspect will face survivors and family members of the victims for the first time today. nsa leaker edward snowden said he never gave any information to

the russians or chinese government. he spoke to snowden who denied giving data to moscow or beijing. in san francisco, federal investigators say just seconds before the plane crash, pilots realize the automated bottle was not controlling the speed. those are your headlines. back to dagen and connell. dagen: conor powell is covering this story for us. >> the military continues to crack down.

several more of the former president's advisers have been arrested or a representative warrants have been issued. the supreme leader of the muslim brotherhood. they have lost touch with some of these in the last few days or so. they are continuing to call for a revolt against the military here. in the last 36 hours or so, things have calmed down quite a bit. they now have a new interim prime minister to go with an interim president.

the presidential election expected to be held sometime in the first part of 2014. dagen: the safe. he is in cairo for us. connell: jack lew asking for them to work with the united states. dagen: when does it stop? we will watch gas prices for you as well. looking at this. winners on the s&p. ♪ i want to make things more secure.

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apple in that e-book pricing trial. >> what is interesting is now apple has its own vision here in saying that they did nothing wrong. they did not conspire to fix those e-book prices and they are now in turn going to appeal. what happened earlier today just to back you up in cheese you missed the original ruling apple has been accused of colluding with five other publishers to boost e-book prices beginning late in 2009. the judge said apple conspired to do so and you have apple issuing an appeal. stock is virtually flat at the moment. >> treasury secretary jack lew with harsh words for chinese officials in the fifth round of the u.s./china strategic and economic talks today calling on

china to ensure the country is protecting u.s. firms from government s cyberintrusions. connell: we welcome byron dorgan from north dakota, talk about your book gridlock which is perfect on this topic and before we get to the details of that a political question about what is going on now. the chinese on this, cybersecurity in this, quote, post ed snowden world, you got to stop spying on us. >> we don't have as much credibility anymore. connell: there is a serious problem with china. >> i understand your point ed snowden issue about reviewing people's internet postings and telephone calls and so on and we are doing this to protect our country. i understand the point. connell: from their point of view look at what your doing, has to do with currencies. >> this country is still a pretty open country, free with a

lot of liberty, but with respect to china as you know there are serious problems. i heard your description of jetblue's comments, serious problems of theft of intellectual property, chronic problems in that area, we know there are serious problems with cybersecurity and cyberterror of chinese interests trying not only to do damage to our government but also do damage to private companies doing business in china. jetblue -- jack. is right that it is time to shake. dagen: what will it get us? how many of these speeches we heard from jack lew and the like out of washington and other locations. i want to know and everybody wants to know when is something going to happen? when data going to stop it? what can we do rather than the bigger stick? >> that is a fair point. the second book i wrote was called reckless but the first

and second book have chapters on july. if you or involved in international commerce you are dealing with another country in which there is not respect for intellectual property we are the innovators and they reverse engineer and steal property, grand theft of intellectual property so we have to continue to pressure them. it is the case that we sit down year after year, same problem, same speeches, currency manipulation and other things, time to be a bit tougher, we understand china is a big trading partner but basically fair trade. connell: this question of cyberthreat, and companies, why do you think i'm mentioned it? a huge business story as well which is why we focus un it. you like this book gridlock which has to do with the iranians and russians than the chinese. isn't that right? but how realistic is it in terms

of when you were researching the book to find things that scare you, surprise you what is happening in the real world? >> gridlock is about cyberterrorism shutting down the electric grid and this is electric powers and lights and television and it is the case in recent months homeland security, fbi and others have warned about hackers, to find a way to cause very serious problems with the system. if someone were to take down a federal government agency just did a report that said hackers could very well, cyberterror threat to the electorate power system shut out power for days, weeks or months. that would ruin america's economy. connell: what happens in the book could happen in real life. >> this is about russians creating a virus:by the iranians and used by hackers to shut down

america's power grid. it is interesting, this country needs to be concerned about these things, this is very real. dagen: let's shift gears a little bit. north dakota, when we sat down, in terms of what else the country can do to beef up other natural gas in this country, what do you think the it ministration needs to do? >> we are doing a lot. the biggest oil play in the planet and we are producing more oil, more natural gas. this is transformational, this is unbelievably good news and -- dagen: you said that environmentalists too. >> i was also the one that offered the amendment in the senate energy committee to open part of the eastern gulf of mexico. we can produce more and should and we need to do more in renewable energy and other areas. no one should mistake that this natural gas boom and oil boom is

good news for this country and a lot of ways. that will make manufacturing less-expensive. dagen: get tough with iran on sanctions because we are more energy -- >> make us less dependent on saudis and others as well. we are filled with bad news all the time, hard to accept good news this is good for our country. and leila of jobs for the country. new technology too is interesting. and a personal story. dagen: and the recession, recommend -- >> i thank myself. and gridlock day. they make it was a pleasure seeing you. even though north dakota a great deal more in new york city. coming of the biggest names in media gathering in sun valley in

that part of the country for an annual meeting of the mines, to be in makes a move to print up its print me new media, dennis kneale is on site and will have a live report. connell: the phrase of oil we talked about today with the inventory report and more on that coming. dagen: another reason dwight howard made the move to houston. the tax man, that hurts a lot less in taxes. take a look at treasury markets talking about a hit, yields going up still, 2.67% on a ten year. friday night, buddy.

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>> shares of hewlett-packard are jumping on news of an upgrade, city group raising ratings to buy and the price target to $32. the benefits of $3 billion cost savings will increase in the second half of this year. demand for oil is expected to pick up rising 1 million barrels a day but opec warns political risks moving forward. reorganization says these underscore the focus in egypt and away from the previous attention to ample supplies from

shale oil formation. how much is your data worth. the average wiretaps costs the government $50,000 according to documents reviewed by the associated press. to be federal cases cost as much as 2 pointed million dollars. fox business network giving you the power to prosper.

connell: breaking news from washington, the fcc announcing a new rule that the first time will allow hedge funds to advertise to the general public. dagen: why would they want to do that? rich edson can give you details on the story. rich: an attempt to attract more capital, a piece of the jobs act that passed congress last year, the securities and exchange commission was considering for some time forced the sec's hand, to pass congress, part of a number of market reforms, the basic idea is hedge funds are now allowed to advertise to the general public and attempt to

attract more capital, something the sec finalized within 4-1 vote. get ready. and nadine coming your way. exo tv is going to the dogs literally. dog tv will launch nationwide on directv starting august 1st. not making this a. directv subscribers can receive 30 days of free dog tv through mid september and the cost will be almost $5 a month. the programming will consist of three to six minute video clips and three categories, relaxation, stimulation and exposure. this will calm your dog down and that is my dog who clearly needs calling the. look at that face. looks like he is going to rip my stuff to shreds. doesn't. connell: maybe you can go work at dog tv. dagen: a happy little guy. he loves tv, ricin. it is the sound. he comes in and sits with me

during the race for four hours. connell: if he didn't like it he would have run away from home years ago. we are going to talk about here in this transition print versus new media. of big story not only today, the tribune company announcing plans to break up its broadcast and publishing business but a big story in general will be the buzz out there at the annual allen and co. media conference. dagen: that is where we find dennis kneale live from sun valley, idaho. what is going on? dennis: the moguls are meeting in the 30 first annual contest. the tribune deal no one from tribune co. here but the tribune deal in which have 2, $1 billion year revenue companies, one for tv stations and one for print insisting the companies will operate far more efficiently makes you wonder, why did you ever assembled altogether? spinoffs and break ups are in the mood here in sun valley

because connect jones 18 is the present spent a couple billion dollars in a deal to buy dozens of tv stations to become one of the largest tv station owners and tribune doing this and report murdoch, our boss of 20 first century fox is here just finished splitting off screen from video screens so he certainly knows what tribune is thinking of. caribbean main mean no one was willing to pay the right price to buy those newspapers, they were up for sale, the coke brothers, controversial billionaires', conservatives talking about buying, the didn't make a bid. rupert murdoch just did it, the c e o of time warner the entertainment company doing us than half of their print magazines, then you have got sony's ceo and howard stringer, executive chairman of sony under pressure to unlock a piece of their movie business and put that out for the markets so there's a lot of transition and turmoil going on and on am sure it will be on the tip of the tongues of all the rich guys and

media moguls out here for refusing to talk to the media. i will give you as much as i can get. connell: maybe we will find out what is next, thanks a lot, dennis kneale at sun valley. a quarter until the hour let's go to stocks once again as we do every 15 minutes, ben bernanke and this afternoon, jonathan cortines joins us from meridian equity partners. what do we expect from the fed chairman? >> i don't think we will get a lot today and that is a smart move. last time the fed gave us too much information the market really took it very seriously and it just showed us how fragile the markets are so right now we're just going to get our normal blank its statement that comes out of the fed. we won't get any our dates of any -- we are thinking september. data argue might be later than that this point but ight now it will be straight down the middle. they will not scooped the market.

connell: from your mouth to wherever. thank you as always out of the new york stock exchange. dagen: a former contestant on nbc's the biggest loser is now said to be is being sued for giving some weight back. he appeared on the show in 2009, lost 155 pounds, she didn't win, came in second best f c online marketing which and the kick boxing website hired her in 2011 as a spokeswoman to make public appearances. the company claims it had a fitness clause in her contract and it believes her to be in breach of that after gaining weight which the company believes to be 45 pounds lew she and her attorney denied these allegations. connell: there you go. from that moving on to dwight howard and creating its costs, there he is. he is heading to houston as part of the houston rockets but if you look at the money behind the decision you will understand that may be one of the reasons

why. dagen: we will take a look at oil prices, gasoline prices, unrest around world, the latest inventories in the united states, all of its sending prices higher. how high they going to go for you at a pop? some of today's winners on the nasdaq. i'm a careful investor. when you do what i do, you think about risk. i don't like the ups and downs of the market, but i can't just sit on my cash. i want to be prepared for the long haul. ishares minimum volatility etfs. investments designed for a smoother ride. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes

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dagen: much has been made this

week of dwight howard leaping los angeles lake is pretty houston rockets but did you know this? americans for tax reform did the man behind the decision and found with powered knitting from california to be no income tax state of texas he will be making more than $2 million more. the higher tax liability in l. a include state and federal taxes would leave him with an annual salary of $10.3 million despite what would be a higher paying contract potentially that he would have received from the lakers. in texas where there is no state income tax powered will be receiving $12.4 million this year and that is your difference. connell: that makes sense. one of those -- i am not going to get into it but heard talk about cutter because cutter is hosting the nation, the world cup soccer world cup in 2020 to a long way away but already

planning to spend a ton of money in preparation for the world cup. $200 billion according to the consulting firm goes to 6 new stadiums, upbraids two existing loans and brake down $140 billion for transportation infrastructure with a new airport, roads, metro system, 400,000 at the world cup, spending a ton of money in cutter and there it is, oil-rich nation in the middle east. by iran and iraq and saudi arabia and they get the world cup in 2020 to in brazil, so there you go. dagen: let's talk about oil of 14 month high for a number of reasons but in part because energy reports this morning on inventory all ahead of the federal reserve this afternoon. connell: jeff flock watching it all from the pits of the cme. jeff: if the minutes are any shock the energy department report was, this is going to go

crazy. this is the eurodollar options pit where they deal with interest rates, oil trader, this drawdown was much bigger than anybody anticipated. >> three times larger. last week we saw a ten million barrels and this week expecting a drawdown of 3, complete shock to the system with nine million. jeff: these prices went crazy and the brent crude spread, almost nothing. earlier this year it was over $20. >> bright crude restored to remain tight because of rising geopolitical risks in europe and the u.s. we have large inventories, we have been constantly increasing production, supplies. that is why the spread has been so wide but we had a shock to the system, the drawdowns and supply disruptions. jeff: a big canadian derailment and a flood on a pipeline. >> that was why we thought that would be resolved and we would

see a culture of three million. >> got to talk about impact on gas prices, we're seeing it hiccup, in the indication of what the impact might be on higher prices? >> i have an upside target of $3, trading in the 290s right now, psychological number with lots of stocks ended you look at the chart problem that is the wave in that direction. >> what would the impact if we get high gas prices? >> people ask for a release from the strategic petroleum reserve something like that to prevent that from getting out of control. >> got a nice tan, half of lineman this coming week and, better man than me. connell: thank you. dagen: get back to us when it is a full iron man. connell: come on. whether you are an e-book reader or even if you don't, apple's

stock, you will want to stick around and with greg jarrett, the ruling today from the federal judge that apple conspired to says e-book prices coming. dagen: she will start to the ceo of lloyd's of london on a survey of executives, taxes the number one issue threatening global business.

cheryl: i am cheryl casone. there is a holding pattern after new records for the s&p and the nasdaq. we are waiting to hear from ben bernanke and the fed, traders anticipating more insight on capering top those are two hours from now and we are live today in cambridge, mass. speaking later this afternoon. we will see what he has to say.

a big rise for gas prices at the pump. look at oil right now. 560 as you see on the screen, prices viking after inventories fell twice as much as expected. we will be live with how the estimates were so off today, plus the battle over a chinese company's planned to buy a largest coke producers in the united states. the ceo smithfield foods is a conover $4.7 billion sale and my colleague dennis kneale standing by at the media conference in sun valley. >> turmoil and transition is in the air as they arrive this morning, howard stringer of sony and his successor walking in together this morning. and jack dorsey of twitter, with

an ipo in 2014, and jeff sullivan stepped aside as ceo of zynga to bring microsoft bob, and his mentor, larry ellison, meg whitman of hp came in, meaning forward. and eric schmidt of google, and shooting fish in a barrel even though they are told not to talk this morning and his master's voice, larry page, ceo of google who has that voice problem doing his first public appearance certainly here despite the voice problem which must be on the mend. we will be updating you all day as we get more shreds from the media conference. a lot going on. cheryl: we will see you at the bottom of the hour with a lot more. we will see you in a little bit. top of the hour, stocks every 15

minutes, nicole petallides on the floor of the stock exchange, always talking about the dow, the s&p and the nasdaq on fire right now. nicole: we have seen them doing well, focusing sea levels and down fractionally as you see, the nasdaq composite manages to hold on to those gains and in closing yesterday at the highest level in 12 years with the nasdaq, reminiscent of october of 2000 so you are seeing some gains in mixed market and that is how we started the day, so back-and-forth action, and microsoft and ibm, on the other side of the colin. as we watch oil up $2 a very key story. and in addition to earnings, and

reports coming out to see the draw down on inventories. cheryl: there are some thoughts about what is going to be happening. ben bernanke scheduled to speak today. take questions this afternoon. and after the fed releases minutes from the june policy meeting. we will get those minute that 2:00 eastern time. you will see it on fox business and peter barnes standing by in cambridge, mass.. this audience is full of the biggest economists in the world. these questions will be pretty tough for ben bernanke. >> and listen, we flew into boston into the fog and the fog

has been lifting gradually so we hope ben bernanke will help lift some of the fog around the future of monetary policy, quantitative easing about when the fed will start case during its billions of dollars of bond purchases to keep interest rates low on mortgages and carr loans and business loans, and the first hundred years of the federal reserve and lessons learned as prospects for the future so it is largely a history lesson, not much commentary. and the economy. and the national bureau of economic research and 30 minutes of this is cute and they from the audience and very smart folks here and that is when we expect they could ask about monetary policy, q e capering and the economy. and the f o m c starts to talk

about the press conference afterwards talking about capering, and if the economy continues to grow. hy was up in the lobby, got close to ben bernanke who was chatting away with paul volcker who is speaking right now to the group and so any market-moving news after the history lesson in vacuum and they. cheryl: what do you plan next year? that will be great this afternoon? we will see you later throughout the day. peter barnes in boston. our next guest has whether they taper or not the liquidity strategy has been blonde from the get go, carson advisers president and chief investment officer in studio and from the

reporter in boston, on the defense about the tape during of the liquidity problem. and ms from the beginning. >> the problems they're addressing which is the unemployment rate. and the stimulus that has been poured in, how will they withdraw without having an effect and the equity growth we have seen, the nasdaq hitting the highs we have not seen in a long time, a lot has driven by this liquidity in the market and in this afternoon from ben bernanke, a concern to many people because i run a lot of long distance rates and marathons and in the final stages of that your legs are tired and weak and anything can make you slip up and that is what i would equate the markets to. we are in the late stages of this rally and the liquidity, any news from the fed, and --

cheryl: because the markets are tired, also saying you mention the jobs picture, the employment picture, that is a negative sign for the economy. economy has not recovered. now on news from goldman sachs and estimates on gdp, these are markets negatives but not sure the market prayers of real looking at the dow down 27. and we care about that? >> exactly right, talking about the gdp figures and in the last quarter gdp commentary about reduced consumer spending, that is the bigger picture in the second half of the year. a lot of analysts are talking about how they expect acceleration of earnings growth in the second half of the year. that will be hard to come by with a lot of individuals and to workers with higher payroll tax because it went back into effect jan. first but we haven't seen a lot of high wage earners, those

that will be affected by additional medicare tax for the obamacare that will have an impact in the second half of the year and as that starts to settle in with those investors we will see reduce spending so with reduced consumer spending which is two thirds of the gdp figures i fail to see how this will continue to expand, and market any further. >> you are investing for income later. do you think a lot of equity investors are missing the boat, having said that in taught -- e opposition you are recommending, your portfolio breakdown, alternative, is that reits or quantities? >> we have reits in real-estate and business development companies which are making loans to private u.s. businesses, those are floating rate loans, will and gas are part of it, we are from texas and got to have

that. we like energy. a lot is in the traded space. there are a lot of questions what is an alternative, where is it, we try to look at for example the underlying asset. what are the underlying fundamental investments inside that company and for property reasons the tangible real-estate for business development companies is the actual loans of declassify those. cheryl: you mentioned energy, picked that the stock actually down about 4%. >> we are. last time we were on we talked about that and what we think our longer-term values and we are trying to do, 20% in cash as well. our clients who are near retirement, and trying to be very mindful of deploying that cash in where we see value. and we have good valuation. cheryl: we would love teddy back

with more picks. we will be talking -- and at the bottom of the hour with gregg jarrett. also this story we are following today, pork and politics mixing on capitol hill this morning, smithfield executives will be talking in front of a senate committee over his company's proposed $4.7 billion sale, senate agricultural committee chairwoman, one of the most vocal congressional critics, joined as a couple weeks ago right here on markets now. >> a very spotty food safety record. what happened if they are allowing that branch to go to china before standards are high enough. cheryl: that is her opinion. joining us is research, derek scissors who disagrees. she will be leading the charge, the one that wanted him to testify.

how are the standards going to be changing for smithfield? i don't understand what heard point is? >> she has two points, one which she didn't say but she says all the time which is the united states shouldn't sell large companies to china and that is where she is out of line. it is not the american government's business tel company weather will sell itself to another company. per second point about quality control, it is of real point, after they by smithfield has to obey u.s. law and that is the department of agriculture, food and drug administration, if the senate is worried about u.s. law, that is what they should focus on it is a perfectly reasonable complaint but it is a mass for protectionism. cheryl: you yourself we should mention have provided congress multiple times about the issue of china, this is your specialty. what can use a today? to get him off of his back.

the unions back co-ceo and shareholders back the steel, no one says this deal should not go through but basically that is it. >> you hit the nail on the head. one word china is used you get a lot of posturing whether it is china currency or acquisitions or any issue you can come up with and there is nothing to do to get him behind it and there are other members of congress like that, they are using this to make speeches about how bad china is. there are problems in chinese behavior. this deal is a good deal, a deal supported by stockholders supported by the union. this is political theater. got a chance to talk about china so i will hold a hearing. cheryl: that is what we're doing and we will monitor what is said about the transaction because shareholders and investors are curious to see what happens if there is going to be any fallout but the statement is not. let's talk about the future of smithfield. isn't it true that china and the

chinese consumer are really looking for that pork coming from u.s.-based production to go overseas? wouldn't this be a boost for the company itself as far as its output? >> this is better assets to the biggest in the world because antitrust rules which i think are a good idea, can't really span in the u.s. they can expand endlessly in china so it is a great opportunity for smithfield. execution will be tricky. you don't magically know how to operate in china and the u.s. at the same time because you combine these companies so that is something to watch but if they can pull that off this is a great opportunity for smithfield. cheryl: we have seen consuming countries that ban wheat from oregon because it is genetically modified like smithfield, thank you very much for your take on this, you where the person to ask, thanks, derrick. >> thank you. cheryl: what you read e-books or

own shares of apple, stick around to hear what fox news's greg jarrett who is an attorney has to say about today's rulings, that apple conspired publishers at e-book prices. taxes, the number one threat to global business. this is according to business executives. we will break down the survey, the ceo is going to be here. and the latest on the investigation into what -- and new details from the f i a. and take a look at oil, and inventory down all that was expected. he is coming up as well. the boys used double miles from their capitalne venture card

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cheryl: obviously market participants and traders wait to see what the fed minutes have to say and we are hearing from ben

bernanke, first-time he has actually spoken since, the twenty-second when he talked about capering but we are down right now. earnings season, we are in it to win it. wells fargo and jpmorgan coming out friday, jpmorgan chase and wells fargo, estimates for the stocks, earnings through the roof, we are looking for positive things, stock is down today, hewlett-packard, american and cisco leading the dow 30 right now. let's bring in nicole petallides standing by on the floor of the stock exchange. speaking of technology looking at blackberry. >> obviously and then that has had a lot of volatility and been in the headlines and we are seeing blackberry under pressure again down 3.6%. so many people tell blackberry for so many reasons for their security which has been wonderful. and shoulder meetings, shoring

up cash, the turnaround plan, don't lose sight yet but they have more devices in the next week it months. and another down arrow. >> the story continues. we will see you at the bottom of the hour. time to make some money with charles payne, following up on medical equipment company intuitive surgical. you have done this one before. >> april 2nd, got hammered, wanted to talk about it because when you are making money on this, this is an interesting story. i have been following this stock for a long time and wrote about it in my book in 2007. cheryl: with a foreword by neil cavuto? charles: yes but we didn't get rich today. here is the interesting thing. this company is fighting against a massive, this is just my opinion, a passive effort to crush less stock and whoever is

pulling the strings have great access to the immediate and a lot of other people land in the first quarter when they reported the company talk about bad press hurting them. nevertheless the stock hit a high in january, $583 a share. cheryl: 423 right now. charles: i had it on with you at 490 so we are down big time on this one. this time yesterday the ceo took the high road. we need to get in on sb and for an interview but he didn't talk about bad press, talked about reduced hospital procedures and admissions and things like that. the da vinci surgical machine is amazing, minimally invasive and helped stock, surgeons were difficult surgery operations, they can do it, lest he and, a fast recovery, hospitals statistically fight over this machine and the united states last quarter souls 90. they sold 124 during the same period and you see the negative prayers killing them, you're at 21, japan 20 vs 7, the rest of the world 12 vs 6 of the rest of

the world outside america not listening to public relations stuff, they are buying these machines. people are worried, there is a campaign war, videos out there, crushing of the stock or trying to saying it is killing people, its people. the machine is dangerous or not effective, doctors and hospitals have pulled back. it is a temporary thing. the management this morning by not falling for it this time, didn't talk about bad press, taking the high road was a smart thing but it had a huge impact on stock. cheryl: will you address the story, the more you say anything. good follow-up. charles payne, thank you very much. tensions continuing to rise in egypt with prosecutors and ordering the arrest of the muslim brotherhood. details coming up in your fox business minute. and wall.

oil prices are up, part of it is middle east tensions but also lower inventories coming out today. phil flynn in the pits of the cme will give some ideas what is happening and also why do those estimates go off? i want to make things more secure.

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>> 20 minutes past the hour your fox news mid. egyptian prosecutors are ordering the arrest of mohammed james gandolfini -- badie accusing him of inciting violence. the foreign minister says after president morsi is being treated in a dignified manner. in san francisco federal investigators seconds before the age of plane crash. bosh realize the automated from was not controlling the boeing 787 speed. police are investigating of one of the two young girls who died was accidentally struck and killed by a rescue vehicle on the airport runway. boston marathon bombing suspect dzhokar tsarnaev will face survivors and family members of. scheduled to be arraigned on several federal charges including using weapons of mass destruction, three people were killed and 260 injured in the april 15th blast. those a your headlines.

now back to cheryl. cheryl: taxes are the number one threat to global business. a new survey of business leaders around the world this came out from lloyd's of london companies fail to be more concerned about the growing threat of cyberhacking, lloyd's of london, businesses focusing too much on the short term and he joins me now, good to see you. let's talk about this survey. this survey changed substantially for the past few years, the number one threat is taxes. this is 13 on a list of worries for global companies and why have taxes of predominantly taken ceos and their attention from doing business? >> in part because taxes so

often impress these days, governments around the globe are faced with falling revenues, looking at ways of boosting their coffers, taxation is one of them and we continue to your tax reports of taxation and global companies like starbucks, amazon, in the press, and talk to ceos, it is not high taxation or low taxation but around certainty of taxation, all in the business world needs stability and certainty to plan and there's a lot of uncertainty and the moment. cheryl: one thing we should point out is lloyd of london much of your business is based in the united states that the survey was global. in the united states, executives have concerns about the corporate tax rate which is the second highest in the world's. at the same time a round world taxation doesn't seem to me -- i would think cybersecurity would be more of a threat especially if you are operating in parts of europe or asia.

>> i can agree with that. when you look at the u.k. corporate tax rate it is one of the lowest, it is more reputation risk from taxation more than anything else but cyberof risk is a real threat and it is on people's agenda. in 2009 when we started the search at number 20, years ago, number 12, and now it is up at number 3 and there are various aspects to cyberrisk whether it is a mischievous employee or a hacker or whether it is someone trying to take down the cause or material damage to infrastructure or criminal activity. cyberrisk is a real risk we face in the business world and we need to prepare against it. cheryl: what do ceos need to be focused on in your opinion? >> cyber is one of those risks at the forefront of their minds. the other risks that times we

feel we are well prepared to deal with because we have insurance in place whether it is exposure to natural catastrophe or recover for offices the reality is all businesses need to take a hard look at their risk-management to reassure themselves they are covering the things they need to cover. 5 of the 2011 and the natural catastrophes in 2011 there were significant and cause economic loss of 400 billion usd and yet the insured losses from natural catastrophes was only $100 billion, and uninsured losses that someone has to pick up. cheryl: we have been covering extensively at fox business. richard, good to see you again, thank you. >> thanks very much. cheryl: fox business summertime showdown only two days away. eight stocks going head to head in a month-long competition. this week oh boy, david trainer

versus scott martin. mr shy himself from united advisers, check out the track record of previous picks, david recommended santos last june, it is up 73%. consumer staples, that is only up 15% as the active last july, both winners. scott will get it come friday but each will give us two new stock picks. who will come out on top? you will tune in at 12:35 noon eastern time fox business, the showdown continues, week 4. four weeks of this thing. all right. splitting print from broadcast. the latest to announce a breakup at the top of the sun valley conference. dennis kneale is there live coming up next and apple saying it will appeal of judge's decision that it conspired to

set e-book prices. fox a trend attorney gregg jarrett coming up on what this means to e-book readers and apple shareholders, the legal opinion, we will be right back. it's a brand new start. with centurylink visionary cloud infrastructure, and custom communications solutions, your business is more reliable, secure, and agile. all your imptant legal matters in just minutes. protect youramily... and launch your dreams. at legalzoom.com we put the law on your side. and launch your dreams. everybody has different ideas, goals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different.

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cheryl: bottom of the hour. time now for stocks with nicole petallides. nicole: and exciting day on wall street. take a look at family dollar. they came out and they had some good sales numbers. opening 500 stores. take a look at other movers that we are opening today.

another upgrade by citigroup today. google has an $1100 price target by one of the analysts. back to you. cheryl: we will see you at the top of the hour. announcing plans to separate the broadcast and publishing businesses. the latest to split up the divisions. it is so great to hear about everyone that you run into at this conference. dennis: it sure is. the songwriter had it wrong. breaking up, it is not hard to do at all.

this is the best set up it could do. they will take an elderly estimate and put it out to see. news corporation just split off its newspapers. "wall street journal" now trading separately. i believe that stock as then down. you have jeffrey of time warner.

you have the two top sony guys. cheryl: dennis kneale. live from sun valley. thank you. full complete coverage of this contest. thank you. shares of apple teetering. the company conspired to raise the retail price of e-books. apple saying it has done nothing wrong. you have been looking at this case closely. strong words from the judge. >> this is classic price fixing. apple can see this coming a mile away. the judge thought that the

government had the goods on apple. cheryl: she said that they agreed to work together. apple sees the moment and brilliantly played its hand. >> steve jobs, by the way, was a principal figure in this trial even though he is dead. cheryl: her ruling reads like a novel itself. >> you do not have to have an express agreement to fix prices at a specific level. an agreement to engage in this.

cheryl: this judge appointed by former president bill clinton, this ruling, we should say that we did get a statement from apple. say they deny any of this. they also continue to fight against the false accusations. they are fighting. >> i have not read all of the pages of the decision. it tells you that she was very thorough and probably quite thoughtful. clinton appointee was the bench trial judge. right now, the trial goes forward. the question now is, not

liability, but damages. how many consumers were injured by this and how much apple has to pay. cheryl: their shares are under a little bit of pressure. thank you for the legal perspective on all of this. the word damages comes into play. we will have the implication of what is going on with these prices. we will be right back. ♪

♪ >> i am tracy byrnes with your fox business brief. allowing hedge funds to advertise to the general public for the first time. private offerings do not require registration. mortgage application activity is down for a fourth straight week. according to the mortgage bankers association, the total number last week fell 4% from the one before. opening their wallets a little more this year as they prepare their kids to head back to school.

back-to-school shopping has the potential to set the tone for the holidays. that is the latest from the fox business network. giving you the power to prosper. ♪

cheryl: getting to the recovery of the federal reserve money that was taken a couple weeks ago. 1.2 million turned up missing from a flight that landed at jfk. anyone with information asked to contact the fbi here in new york. get your pencils out. [ laughter ] cheryl: oil surging to a 14 month high. let's get right to phil flynn in the pits of this cme. estimates way off.

>> it is a story of incredible demand. there is so much in here. let's get right to it. it is like three times what people were looking for. u.s. demand is exploding. for the first time we saw refinery runs back to back since the energy crisis began. on top of that, we sell gasoline demand absolutely surge. up 4% over a year ago. a strong demand. problems with supply really demanding the market today. cheryl: thank you for explaining that one to us. let's get to the floor of the new york stock exchange. disappointing housing data.

we also got hotel inventory. how much weight are you putting into the data from today? >> not too much. the market has done very well. i think when investors saw that information this morning, it was an excuse to take profits off the table. cheryl: live at the new york stock exchange. thank you. the conference is underway. a record year for deals in the media and communications

industry. senior analyst joins me now. there has been an impressive amount of deals in this space. >> it is a sign that the industry is growing. cheryl: do the deal now. >> that is exactly right. the reality is, the cable operators, for example, the reason people are talking about consolidation is because they are having a harder time reading their margin expectations. the broadcasters are consolidating because they need more leverage with operators.

they are struggling to find incremental growth at this point. it is harder to maintain. >> it is not just with broadcasting. you have to add telecom into this. this seems to be another issue for these cable companies. >> in all cases, the telephone companies, the wireless business we think of as a growth market. it has never been lower. it is now starting to slow. you are running out of organic growth opportunities so you look elsewhere and you look for deals. i think that is a big part of it. at&t is looking at europe.

cheryl: looking for population growth around the world. great sector. thank you. a huge wildfire is threatening businesses and homes northwest of las vegas. we will have details coming up in the west coast minute. ♪

♪ cheryl: time for your west coast minute. fire crews in nevada are struggling to contain a massive blaze. the fire is within a quarter mile of homes and has burned an

area roughly the size of manhattan. a sales tax on the ballot in california may be a saving grace for the bankrupt city. if it is approved, it could go in effect as early as next april. the company going head to head with taiwan -based china airlines. take a look at hawaiian air. the stock right now trading flat. that is your west coast minute. how many of you like to bike, swim, do you like to run? i have been training along with

two of my colleagues. we call ourselves team fox business. we will be competing as a relay team. there we are on the hudson. i took a long fox business cameras to the site of the swim. we are on facebook. we are on twitter. getting race participants ready for theebig day. the response has been amazing. like i said, we are doing this for a great cause. these are amazing, brave men and women. they gave their all.

join us on donate, building homes for heroes.org is the website. the white house turning up the pressure on house republicans. one of the president top advisers will be joining adam and lori next hour. the gop grapples with the big issue of border security. we will be right back. ♪ (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade.

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what you need to know ahead of the fed minutes. adam: stopping the muslim brotherhood in the attacks. adam: gene sperling will join us this hour. why that will boost the economy and cut the deficit. adam: we are guessing that lou dobbs has a little to say about this. adam: walmart is threatening to walk. possibly canceling plans to build in the nations capital. lori: let's head to the floor