will get on board with tougher sanctions and hold vladimir putin's feet to the fire. >> i would say that is the one to watch. they are the main movers. maria: rich edson in washington, thank you. developing story as we end the show here, disrupting markets as we see, this large part of the russian convoy destroyed by the ukrainian military. i will hand it to stuart varney who continues live coverage of this developing story out of ukraine and russia. >> those reports of a military engagement in ukraine and russia, markets down but coming back a little. we are on that. and now this. they all government all the time presidency, you don't like it. good morning. fox asked this question, what do you want from government? two thirds said leave me alone. one third said lend me a hand. that is a repudiation of president obama's basic policy.

there's more. the treasury says it is collecting more tax money than ever, tax and a record high but the deficit close to half a trillion dollars a year. you don't like that either. one more headline. in the obama years government has spent more than households earned. only weeks to the election and that is the backdrop. voters not happy. government starting to play defense. ♪ stuart: reports of the military engagement send the dow down 60 points with an update in one moment but look at that poll. if you give a message to the federal government, 59% of you would tell the government please just leave me alone. forbes media editor in chief steve forbes is with us. i just said that that to me amounts to a repudiation of the president's all government all the time policy.

am i going too far? >> probably not far enough. the fact of the matter is the failure of obamacare, the huge markup they had in introducing it, the fact that millions of people lost their policies are having to pay lot more for a lot less, the va scandal and the feeling of receive even though that doesn't directly impact people at home yet they feel things are spinning out of control. government can't do it. stuart: does it point to change of political, not leadership but a change of politics? the senate goes republican, th majority in the house come november? that is locked in? >> nothing is locked in in politics especially involving republicans, they wonderful knack of snatching victory -- defeat from the jaws of victory. they did in 2012 and have done it before but the fact of the matter is i think you'll have a huge swing in the senate, gains in the house and the president has to decide what does he want to do for legacy in his last two years.

stuart: a republican congress. could it change the basic policy? could it reverse all government all time? could it? >> it can stop the events of all government all the time setting with the regulatory agencies. i think they will go after the epa, pursue the irs scandals. you don't mess with the american people using a powerful agency to suppress political dissent in this country. it is going to be very interesting. stuart: more on the irs scandal coming up. that is politics, that is policy. look at markets. there is a report ukrainian forces attacked that russian truck convoy. that sent the market down. we were up 50, now we are down 46, stabilizing a little but look where the real action was immediately we got the news of military engagement in russia and ukraine. look at that. 2.32% is the yield on the ten year treasury. it has come way down. there has been a rush to what i call the safety of u.s. treasuries, up goes the price,

down comes the yield. long time since we have seen 232 on that treasury ten year bond. am i making a mistake again? am i saying it is a rush to safety? am i right? >> the default position even though the u.s. has done harm to its own economy, that monetary policy. when the chips are down you go with the biggest country around, deepest capital markets in the world so you pile into treasuries. >> when we get a report from the ukrainian military spokesman who says the russian convoy was attacked on ukrainian territory and partially destroyed. that was the report we got 20 minutes ago. >> i'm surprised at how mild the reaction of the markets have been because vladimir putin has been looking for a pretense to do more military action in ukraine. already even before the troubles in ukraine and what russia did to crimea the western european economies are petering.

italy is in recession, france in recession, germany has slowed down. the only bright spot is the u.k.. stuart: that was the convoy you are looking at prior to this reported attack. still with the market's does the name george soros mean anything to you? he is making $1 billion bet on the markets heading south. i believe it is a $2 billion bet. charles payne is back just in time. i don't like his politics that he has proven to be a savvy investor and he is saying this market is going down and you say what? >> i was talking on my show about a guy who predicted a crash in the next two years. over a 7 year period from the beginning of the bull market over 7 year period we are going to crash typically bear markets happen every three years so this is not one of the search shattering things and to your point he has been very successful but not a day trader. he doesn't fund these positions to work out tomorrow. will the market pullback?

yes. are we ever do for a bear market? yes. they come but i don't know if my own monster energy drink wouldn't sell today. stuart: if you want an index fund, the track, the broad average of the s&p, you still holds, you wouldn't be jolted into a cell from george soros? charles: we were already be jolted into a sale. usually can move markets. this guy destroyed the british pound. i didn't want to bring it up. stuart: he made 1 billion pounds profit betting against the british pound back in -- charles: 1989, 1992. >> he took advantage of the british government destroying the british -- stuart: show me the market again. dow jones industrials down 70 points. let me tell you the swing here. 20 minutes ago the dow industrials are up 50. now we are down 64.

there is a report the ukrainian military forces attacked that russian truck convoy in ukrainian territory. the ukrainian military spokesman said it was partially destroyed. no confirmation, just the report. you are going to comment on of charles pick. >> moving to all-time highs, 30% at the moment, $93.48. and this is a great pick. and the energy drinks, you have coca-cola now taking a 16.7% stake, $2.1 billion deal, analysts are loving it. for monster, 80% of their sales are domestic. they think it is great for the international presence,

distribution of coke, it will build their volume globally. it is a win/win and monster has two, not just energy drinks. stuart: let's leave time for charles to take another victory lap. stuart: they are not a soda company any more. they are not. hold on a second. and coconut water, they have honesty, smart water, minute maid of o.j. vitamin water, that is a short list. charles: they probably should have been diversifying even more. one reason i stuck with this, coupled downgrades, last, mentioned in your show was in june, they are carbonated, poor or business has crashed.

for a long time people made the switch from regular soda to diet soda, making money hand over hand. a revamped this company. this is a move in the right direction. they have to keep doing these things. stuart: they have been literally disrupted in the last half-hour, and the ukrainian armed forces tracked russian armor as it crossed the border. the ukrainians say was partially destroyed, that sent the stock market down. it sent bond prices straight up. the yield on the treasury down 2.32%. that is a flight to safety. totally different story. football, football, real football in china. we have a guest on the show, marty judge who put $10 million of his own money into making football in china a reality. listen to what he had to say.

>> i have been over there two years selling it to china. the first-ever professional football game played in november next to the bird's nest, we had 10,000 people, the place was packed. we had a young boy steal the football away they do in the united states. they need a contact sport. stuart: steve ward still with us. he had an op-ed piece on his web site. the call marty judge, called him extraordinary. we had him on the show yesterday. you saw the clip. he has the rights to all indoor football in shy and the sponsorship of that, paid $10 million for it. >> took a lot of hard work, even though he has an agreement, to get this thing going to get six or eight teams going in 2015 but clearly he has the drive to do it, the horsepower behind him and he is thinking big, he's not talking about six and eight teams to kick this off the

theory seems all-around asia. china has $1.4 billion, we have 320 million people here. huge opportunity for growth and one thing he has realized this with arena football you get higher scoring, more action so he thinks that is going to be more appealing and we may take a page from that here because in the american football the action is only a handful of minutes for the 30 hours you're watching the tv set. charles: some had financial problems which i found interesting. i wish i had gotten in on it. stuart: why is it when you guys talked to me about football you always say american football? everybody understands we are talking about. miley judge is looking to be bought out by chinese billionaire to own a sport or a team or two, that makes a fantastic investment. >> when used with six eight teams, we have 40 teams in the

continent of asia, huge opportunities to existing notice to get cash in, still own your team. stuart: one american, all good. we are down 39 points. now we are down 37. russian armor crossed into ukraine. ukrainians engaged it. we are down 35, that is pretty much stability. ever so slowly, they are getting out the truth in the irs scandal. federal judge's demand investigator, where are those e-mails, lois lerner e-mails? we will deal with it next.

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stuart: dow industrials of their low of the day coming out of

that reporting ukraine, ukrainian forces attacked a russian convoy that crossed into ukraine destroying part of the. waiting for confirmation that that did indeed happen. this is not stabilizing. we are way down, the yield is way down, the price is way up, we have a flight to safety in the ten year united states treasury bond. stay on the markets. charles payne in with another pick. he liked j.c. penney. it was up recently. it is down 2.5%, charles payne is here, still sticking with it. charles: a big spike after the close. they beat it down, they have a tremendous position in this, they cannot afford to lose out. don't keep beating down as much as they can happen at some point to stub their toes because no recovery goes smoothly but you got to give kudos to the management team, they have done an amazing job when everyone had

a long deathwatch four five months ago. stuart: are you referring to me? i did, i think. charles: at $4.90 a think it does. stuart: mike bowman has taken over as ceo. very very sorry. 30 seconds, three friday headlines, billionaire environmentalist times tire promising $100 million to democrats if they push his climate change agenda but those democrats are pushing back saying back off, you will get my take on that at the top of the hour. clinton, doug shoen, on martha's vineyard after hillary had hit out with president obama. is looking for a job with the clinton 2016 team. then there's this question. what did fox and friends host brian kilmeade say to put this look on my face. brian joins the company in the

-- does not describe that look on my face. modified and surprise would be accurate. you will find out. let's get the latest on the i r s. this would be good. a federal judge giving the irs over 1 week to supply answers on how lois lerner's e-mail for a loss. this is a lawsuit by judicial watch. the federal judge said i am going to appoint an investigator. let's get to the bottom of this. >> it is an extraordinary court action. we had fought these irs documents, lois lerner e-mails, we find out after the fact that they have been lost. they didn't tell the court, the court held a hearing and told the irs you need to to give me information under oath about what happened in the e-mails and what steps you are taking to retrieve them. they made that filing earlier this week. we said it was a joke.

they don't care what the court wanted. they didn't give out any information, it was contradictory. but the lot of gaps and knowledge. when an extraordinary step, without any prompting from judicial watch issued an order late yesterday telling the irs you have a week to provide more answers. on top of that he has already appointed a federal magistrate judge to oversee discussions between judicial watch and the irs about the list where e-mails at who knows what other computer documents, e-mails that have been lost. stuart: things are building up here and there is a limit to how long this judge will tolerate the ongoing stonewall from the irs. looks like you are close to a breakthrough of finding out what happened to those e-mails and can we get them back? >> it is easy to stonewall congress but you don't want a federal judge suspicious of you. i have been in judicial watch

for 16 years. we file hundreds of freedom of information act cases. there is nothing like this that i remember ever happening, a judge acting on his own like this. stuart: there is no -- when ever had such a big deal as this. we are looking at the potential of interference with a presidential election in the government agency, maybe or maybe not, that is where we're trying to find that at the instigation of the white house and the campaign to re-elect the president. the stakes are enormous. >> they are. we already have evidence democrats are pushing the irs to go after opponents of president obama. we know about prosecuting the same groups they were suppressing that law was lerner was in contact with other ther than the department of justice and now we know two years of e-mails of this appeared. there is a report the other day about how 20 official's e-mail

and disappeared. how many thousands of e-mail's disappearing equate to the equivalence of the 18.5 minute gap in the nixon tapes? there is that massive ongoing here, the court filing with the court by the irs shows they really don't want anyone to know what is happening and the court is -- it is finished in terms of patience to distract information from the irs that is completely stonewalling the american people. stuart: to you think we will get the truth before this november's election? >> not if the irs has anything to do with it. this course and this case is the best way to figure out what went on in terms of the destruction of key evidence in the irs scandal. stuart: thanks very much for

being with us. keep us up-to-date on what is happening here. update quickly on the situation, the stock market and the bond market straight up. and they engage this truck convoy. the russians say the ukrainians are trying to stop the delivery of humanitarian aid. it is a standoff between the two sides. trying to figure out what happened, how many shots by home or rabbi what. no confirmation from independent sources. the dow has stabilized to some degree. and you have a swing of 130 dotes on the dow, on this program we heard from a ceo of a company who offers his employees $7,500 for unlimited vacation. go take a vacation and here is the money.

charles payne arguably the hardest working man in television, hardly ever takes vacations, how would he react to a company that forced him to go on vacation? >> that is what we call misguided heroes in jerome. your absolutely than necessary because you are not. 9m

speed to the great employee eve. i am very, very this. >> to work, that is what we call misguided hero syndrome. stuart: can you believe that? he forces his employee to go on vacation and pays for them. would you go on vacation and if you did, would you unplug?

>> i would go on vacation and take the family. i try to do sneaky things. if i have a speaking engagement, i will take them. i would never disconnect. absolutely not. i would try not to look at my phone, but i would not totally disconnect. charles: how do you like being called not rich and now being called not significant? [laughter] stuart: i have another retailer in the red. nordstrom. an all stock purchase. it is a man's clothing company.

investors do not like it. then we have samsung. they just bought smart things. you can control everything with your smart phone or your tablet. jo ling kent is here. she apparently agrees that we should all control our homes from the internet. >> i think it is a very interesting proposition. they are all partnering. they are all acquiring these big companies. they raise more than a million

dollars. stuart: now two belgian dollars buys them out. >> that is exactly correct. >> may be turning up the heat a little bit in the winter. there are a lot of concerns. i like and on off switch. so many times when it goes down, then what do you do? >> you probably need an extra backup. stuart: do not get sarcastic with me. this is a big deal.

charles: i was there when they went from that advocates to the laptop. stuart: jo ling kent, thank you so much. sunscreen. we are years behind them on the issue of sunscreen. yes, it is friday. we will have this next hour. new headphones from intel. that is wearable technology. ♪

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stuart: to the story that has moved the markets this morning. all right. here is rich and thin. what exactly are the two sides saying here. >> this comes from the president of ukraine. the machines have been

eliminated, as they put it, by the ukrainian utility at night. ukraine was trying to disrupt moscow's planned aid delivery to a city in eastern ukraine. there are those that are skeptical that those convoys are actually aid. now we have some shooting according to a number of reports. >> we do not yet have an independent report. we have the two sides. we do not have somebody in the middle that is independent. the ukrainians are saying it was a military convoy. we do not know what has been destroyed.

rich edson, thank you very much indeed. thank you. there are almost one dozen sunscreens. can you believe this? they are not available here. why? regulations. the author of a very interesting book. you say that the fda destroys innovation. tell me how they are destroying innovation with sunscreen, for heaven's sake. >> are they saying that this new stuff is dangerous? >> untested. they are far superior. you have a health crisis where

many health policy experts, surgeon general included are declaring this is a problem. they are not moving on these approvals. it is now taking congress to get involved. this is the theme of my new book. stuart: wait a second. what is wrong with the fda. why is it that they have taken all of these years. i could buy this in england, but i cannot buy it in the united states. >> it is ideology. they look at anything new. that ideology is incredible barriers. the fda -- nobody in our

industry wants unsafe products. the amount of testing is enormous. >> let's suppose you broke through this ideological barrier. you have more immediate testing and more immediate approval. one thing goes wrong. one treatment goes through and somebody gets hurt. >> that is what you have. you had three reject did in a row from the fda. it took the senate to say to the fda, by march of 2012, we want to know your plan to approve obesity drugs. >> the problem stopped the development of drugs to treat obesity.

>> right. and then they started coming back. it made many companies not even get involved in that. >> you are a medical doctor. don't you want adequate safe testing for all of the drugs that you use? >> i designed those studies that proved that they are adequate and safe. stuart: great book. >> very important book. thank you very much for being with us. would you trust a complete stranger with your car? walk away? it turns out, they do not ask for that. we will explain it all later. a new season starts next month for downtown abbey. there is something in this

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>> the dow jones industrial

average is two the downside. they are originally posted gains this morning. right now, the dow jones industrials lost one third of 1%. take a look at dear. it will layoff 200 employees. this is on concerns of demand for the product. a big win. this is for hepatitis c drugs. they did have a ruling in the favor. it is up 1.3%. we have much more coming up. we have a creator of an app that will park your car for you. what do you think of that? it is coming up next on "varney & company." ♪ so now we've turned her toffee into a business. my goal was to

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stuart: before the break, we showed you this picture. there is something wrong with the picture. can you spot it? that is a water bottle. somebody left it there during the shot. believe me, there is no such thing as a water bottle in 1920s england. i was there.

i know this for a fact. charles has a pic. it is called gt advanced. it is a winner today on a down day. >> they are rivals. this is a sapphire glass that. more durable. more sensitive to touch. the stock probably should be a lot higher. a young company with execution. a great relationship with apple. stuart: you would like to go on the show. charles: the next move will be $18 i think that will be a big one. >> what day is it today? >> a quick update on the market. we are now down.

ukrainians attacked the russian convoy. that sent the market down sharply. we are still down 66. a swing to the downside in a matter of about an hour. imagine you are in traffic. you are gridlocked. you are running late. there is a solution for this. there is an app. i will explain it along with the cofounder. he is here to explain it. i am driving along in my little car in midtown manhattan. i have got to get to a meeting. i have my app on this. i get your guy. your guy comes to my car. i give him the keys. i go to my meeting. when i want the car back, i go to my meeting.

how much? >> $6 hour. stuart: this is in midtown manhattan. >> the price is dynamic. stuart: tops. >> tops. all-inclusive. that is it. >> that is the beauty of it. that is what we do. >> you are on the right track, charles. we parked on the west side, the eastside. our guys can get to it relatively easier.

>> we brought you on the show because we wanted to show that you are extraordinary ideas are generated by apps on the internet. >> this is more than just an idea. right now, you can sign up for a test and we will send a link to you. you can download it right on your iphone. stuart: you want to expand to all parts of manhattan. >> that is right. allow anyone to drive in the city. >> the drivers that you use. are they employees? >> yes. currently, that is right. we make sure that they pass our criminal check. we go through training programs,

as well as an interview process. the guys are coming to you. they have been screened. >> i drive a tesla town and country van. i am not sure there is anybody. >> you just cannot resist. stuart: who covers the insurance on the driver? i think you are onto something there. would you take $10 million tomorrow morning for me to buy you out? >> no, i would not. >> did you make 10 million? >> yes. stuart: congratulations, young man. clinton insider. doug shoen, he is at martha

vineyard. i will ask him. if you he lining up a job in hillary's campaign 2016. he is on the phone with us. ♪ friday night, buddy.

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♪ >> look at this, please. the market is falling. the dow is down 128. a quick check of the treasury yield. a flight to safety. the price has gone up and the yield has come down. i think you have the latest. charles: we heard that there was a separate column from the white trucks that we have been watching all day long. stuart: armored columns. >> absolutely. you have the uk to clarify reports. military action by russia and

ukraine. we have said over and over again, western allies of ukraine, russia attacking ukraine is an act of war. >> this is ukraine attacking. >> it is getting louder. stuart: look at what is happening. it is pushing the yield down and the price up. they are now down 132 points. they are getting right into the middle of the markets today. >> no question what is going on right now. both sides have nothing to win. we saw it two or three days ago. the rest of europe is in bad shape. this is one of the stupidest things that is going on right now which makes it even more

frustrating. it is a bigger deal. treasury bonds are straight up. $1 pro- climate democrats in november. they are pushing back. new at noon. they will have it. you see that look on my face. that is horror and confusion. the second hour is two minutes away. ♪

stuart: even if you are a billionaire, you expect to get something when you throw $100 billion around. he pledged 50 million of his

own. he said he would raise another 50 billion. he has raised only 1.2 million. he went after a louisiana democrat. back off said other democrats. he then targeted iowa. back off, they said. he is trying to support the democrats in colorado. the senator, the democrat is pro- fracking. the political tide is turning on energy. this is good news. after november's election, it just may be that they would be allowed to go get that energy that is ours. ♪ stuart: look at who is here.

james lacey. you just heard my take. are the tides turning on energy in california? >> it is definitely turning. it was conducted by univision. latinos are very important in california today. 39% of the state is now latino. energy is so important to them. the environment does not even rang in the top issues. they care about jobs. they care about education. they care about government spending. it is definitely shifting. this is very instructive. democrats only want to use these environmental issues to cease power.

stuart: more to the point, it is the possibility of fracking. will it get the natural gas that exist in huge quantities underneath northern california? >> it has already started to a degree. the so-called monterrey shell is located. the deposits are huge. they can solve california's financial problems in an instant if they are allowed to be extracted. it allows for some develop it. it is weak, but it is going in that direction.

it would create full employment in california. it would reduce the deficit. we know that fracking can be done safely. stuart: gerri brown has offered tesla all kinds of tax breaks. he will waive environmental restrictions. what is going on with this? >> that is a $5 billion investment. they have been looking at states in the southwest. gerri brown got together with him and a republican. they are trying to do a job in the legislature right now. basically loosening all that environmental regulations so they can fast-track. you know from the discussions we

had before that manufacturing is in terrible shape in california. gm is gone. ford is gone. caterpillar international harvester argonne. toyota is leaving. chrysler is gone. the campbell soup fact three, the democrats allowed that to close. now, they are picking and choosing. because tesla is green, we will allow all of these benefits to go over to tesla. you know what, stuart, it is socialism. ronald reagan was not in favor of picking winners and losers. >> i am with you all the way, james. it is energy. that is the issue. losing votes from left to right. if we could get the energy,

which is ours, we would have an energy led boom. california will never go for it. well, i am prepared to admit that within my lifetime, i may be wrong. we have to get to the markets real fast now. those reports of ukrainian forces attacking a russian convoy. they attack russian armor. down goes the stock. that is a 10 year treasury yields. 2.30%. a long, long time since i have seen that. that means flight to safety. off goes the price. down goes the yield.

come in scott shalit. >> what i think we have seen is the 10 year rate moving from three to 275. we also have a poll soaring economy as well as a flight to safety. >> i have to say i am really surprised. i never expected to see 3.0% on the two-year treasury. i just did not expect to see that happen. are you surprised? are you shocked? >> we see the headlines ourselves fairly quickly. yesterday, we saw the german 10 year.

how in anybody's right mind do you think that there is the economy doing well enough. i think it goes from 2%. the economy is just not coming through like it needs to be. stuart: always a pleasure. thank you very much, indeed. what are you hearing? >> looking at 52 week cards. the stock right now is down 4%. it had been higher earlier in the day. they are seeing sales. up 6%. home goods. jewelry. that was the good news therefore

jcpenney. s&p noticed the credit metrics. overall, s&p notes a cautious consumer. it will be a highly competitive promotional type market for the fall and winter. you do see it to the downside. stuart: look at these. the federal government has brought in record tax so far this year. they go into roughly 3 trillion by the end of the fiscal year. the deficit, though, still very close. look at this one. 59% of voters would tell the government, leave me alone. if you can say, what do you want from the government, they can say, leave me alone. ashley pratt is with us now.

the numbers seem to point to a golden opportunity for rural publicans. they can shift the image of their party and become the party of opportunity. is this your father's gop? >> i certainly do not think so. i think that that is a good thing. one thing that i would like to point out, six in 10 americans are saying, leave me alone. i think the message from millennial's is, get off why back. 60% of young people disagree with federal government intrusion in their daily lives. i think it is smart to play into that. here is what happens when we over regulate. that is something where it does resonate. i think it is important to engage them.

the government is spend spend spend. take take take. we are doing nothing to reduce the federal deficit. stuart: that sounds like a very libertarian manifesto. >> it seems as though the conservative message does resonate. it is something that really is indicated in the libertarian message. we need to realize the love for president reagan and his policies. it was signed at the reagan ranch in california. a lot of young people went to that. look at how president reagan was able to cut that. little to no opportunity. they are sitting in their parents basement looking at obama posters wondering what

happened to the open change that we were promised. stuart: if there were a vote today, what would the boat before youngsters? >> are you sure about that? >> i am 100% sure. you have seen what happened. they want change. everything is being put on their back and they want federal government to get off of their backs. stuart: i hear you. i am a little skeptical about that. see what you are not supposed to say in television news. only time will tell. thank you for being with us. to the markets. a $2 billion bet on the market going down. let's bring back in scott shalit

deep. i do not think that you like his politics very much. he is a pretty good investor. >> iran into him and his policy in 1992 when he took on the bank of england and one. you have to take it into consideration. another man also echoed the same sentiment. we have two huge ones that are starting to say they are starting to pare back. stuart: yes, sir. here is the lineup. the rest of the hour of parting company. something for a record $34 million last night. it is expected to be broken again tonight. biggio app does one thing.

it sends the message to your friends. a sign of an out double. we will deal with it. we have the next step in wearable technology. your heartbeat brought to you by the rapper $0.50. fox and friends host brian killed me. he ambushed me on his radio program. find out why i have this look on my face. next. ♪

♪ stuart: look at this. walmart cashing in. >> yes. it is great. disney and amazon are fighting. they are not listing pre-sales force or in movies.

between 25 and 40%. they went not only up, up between 40 and 90%. walmart is the winner. very smart move. amazon wants disney to cut prices. look at what happened. >> they went from walmart to get the price to get the product. starbucks. they are changing their policy. it will help workers get more regular and better working hours >> yes. i am going to give starbucks a round of applause. is starbucks for a stuff. she was a mother. she had a son. she was really going crazy. she was not getting her schedule in advance. a couple hours later starbucks comes out and says they are

changing. they will get the automated system. they will give a week notice about their schedule. this is new to me. if you have ever worked in retail, you have probably done this. you stay late at night to close the store and then you have to go back in the next morning to reopen the store. they are ending that practice. we have done that. stuart: that is pretty good. thank you, lauren. now this. look at this. see the face faith that i am making in this photo. i was in brian killed these photo. a late-night talkshow. watch this. look at this. >> it is nice and soft.

>> that was last night on jimmy kimmel. stuart: let me explain. i am going to talk over you. i did not know i was on jimmy kimmel's show. i did not know that that was my voice. he made me sound like i was dropping f bombs all over the place. >> talking about fracking. okay. you got me. are you happy now. >> our producer heard you were on kimmel the night before. for a second, you thought to yourself, they think i am cursing. did you think that they actually thought that you were cursing. >> you can say anything. i did not know anything about

this. when i first heard it, i was on your show. i was horrified. >> how did you not know that you were not on kimmel. don't your followers tell you. stuart: i were light on him to tell me on what i am doing. that was a shock. stuart: i do not do that on television. i do not do that anywhere. [laughter] are we done with this completely? it will never be repeated on air. >> i will not do it again. it is on fox news insider. our whole website has turned against you. and our facebook page. it will not last very long. stuart: thank you very much, indeed.

let's get serious for a second. the joe jones is down triple digits. ukrainians have attacked russian arms. they have come into ukraine and destroyed it. they are delivering humanitarian aid to parts of ukraine. that was a standoff in statements. this could be a serious violation of international law. the market has gone straight down. people have been flooding into american treasuries at the same place. that puts the price up. digg yield all the way down to 2.30%. got it. how can an app be what millions -- it sounds like there is a bubble in the app business. someone that disagrees.

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stuart: sticker shock for some san francisco presidents carley shimkus booked an uber car home from a concert. bad news for uber. the story please. >> some fraught -- price gouging. music festival essentially in san francisco, kanye west, 200,000 people showed up, many wanted to use uber and they did and some got receipt from 292 to $470 to go just a few blocks. stuart: how did that happen? nicole: there was a big demand and uber warranty of the surge in price. you never realize it is going to take as long as it might take so the surge will be huge. last month uber and the new york attorney general reached an agreement this price gouging and natural disasters and other extraordinary events wouldn't happen any more. nonetheless we did see this

happen a few days ago. stuart: that is one of a few back guys uber has received. we are down 97 points on the dow jones industrial average. we have been down 140. the story is ukrainian forces have attacked, reportedly attacked russian armored convoys that made its way into ukraine. that kind of military action sets the world on fire. the united states ten year treasury bond straight up in price, flight to safety, the yield down 230. monster beverage a winner on a down day, coca-cola has brought a stake in the company. of the doe's 27% to 20 bucks. yesterday we spoke with the creator of one of the hottest apps there is. it sends one word, yo.

and $10 million. is worth millions. is this the beginnings of an era when bubble? bin chen is senior vice president at cyber, a company that helps apps developers maximize their revenue, you don't think it is an apps bubble. you tell me how can an apps with a one word message and that is it be worth 5 to $10 million of it is not a bobble? >> if you look at yo is a great example of where the apps economy is going. someone like yo can really accelerate growth. if you look the messaging space overall, where it is playing, it reached over 1 billion users which is quicker than any format we have seen in history.

stuart: it has explosive growth potential and that gives it the value, it transmits just one word. how about what's apps? that is the messaging service. facebook bought it for $19 billion? make the case of that. >> you got to look from the perspective of what an apps really is. if you look at it as a service economy that means we just show the size of the market, not one apps could move at all, they would not spin out messenger as a stand-alone apps oblique ago so what's apps with a sizable market had, the way consumers interact with it, certainly is one apps that will southern segment, and connected devices with market potential, and

tablet and smart phones we barely penetrated the basis of what is reasonable, with personal advantage. stuart: if i want to cash in on this and spot the next superrise in value, it was the most commonly and widely download apps? file again that i see one idea of future value. is that accurate? >> it was a great touch point, when we look at its add fiber, we start up and a lot of 20 somethings in the office and then look at their phones and tablets to see when they are doing and they are on the cutting edge, the bleeding edge and using a variety of apps for all types of utilities and entertainment. we are looking at the consumers

to digest it. stuart: look at those youngsters. i do it all the time. i appreciate you being with us. i got more gee with keck head funds. 8 track your heart rate at $0.50, is that right? >> i grew up in that environment. with a d. stuart: say it again. >> you are going to hurt yourself. stuart: the head sets are here in a moment. [bell rings] ♪

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stuart: the latest on the irs, a federal judge giving them one week to supply answers on how lois lerner at females were lost. portable lawsuit filed by judicial watch. the president tom fenton was on the show earlier. >> there's a massive cover-up coming up, on going. the court filings with the court by the irs shows they really don't want anyone to know what is happening and the court isn't

going -- is finished in terms of trying to extract information. the irs, stonewalling the american people. stuart: when a federal judge gets annoyed and says enough is enough they're going to get answers. >> they were successful than the oversight committee, more successful than ways and means. i will say this. they have to produce the hard drive. they got to show the damage and bring in the technician that will lois lerner i have bad news, lost two years of your e-mail. we get nothing else, the guy comes in, why was the president then? the los lerner i know, didn't really know, would never do something like this. now we have to see the garbage, get the technicians fair and see if they are mentally and intellectually dexterous enough to our run people and outthink judicial -- stuart: the e-mails in the service of the agencys to which the e-mails were sent.

can we get them from their? >> they also have problems with other people you might have been corresponding with. finally because right now nobody cares, they go home, some people chop wood, they don't talk to anybody or think about the irs, judicial watch will do something darrell issa canned and that is have a deadline and legal ramifications to their demands. stuart: we might get an answer, we might get the truth. >> i am hopeful. stuart: let's talk intel, teaming got to develop the first head phones that track your heartbeat. why would i want that? joining us is mike bell, vice president and general manager of intel's new device group. you have these head set, very good headsets, i put them on and they track my heart rate. >> that happen here. absolutely. stuart: why do i want to track my heart rate when i am

listening to music? >> a lot of people listen to music when they exercise but don't know how good the exercise is. is it making a difference? heart rate will tell you that. instead of putting another finger on your body is easy to do all. stuart: i hate to be a skeptic but i can't understand why i need head phones to track my heart beat? >> the best way to do it. >> they never seem to go together. >> it is really cool. stuart: can i talk? you don't hate to be a skeptic. number 2, i run with head that's all the time and i always say i don't need something else to run with. i would love to know if it is accurate. have a real heart beat, one less thing to worry about, i would love it. >> it is invisible, the design is fantastic, the sell quality is great. you pop it in your ear and heart rate on your phone. stuart: why is in tel involved with headsets and earphones?

i thought you which itmakers. >> we are the best chip company on earth. we are trying to make this wearable technology market happen. there's a lot of height right now but it hasn't become that real and this is an example of the way we look at wearable technology. the best stuff is invisible. we at a fantastic feature but there isn't another break on your shirt you have to charge, the best technology is often stuff that had great features in you don't know if there. stuart: when you're carrying the idea of wearable technology, moving one step at a time, moving forward so the stuff we wear, the computing power that we wear fits on us very easily and tells us all we need to know and you want to be at the forefront. >> exactly. instead of adding more batteries we figure out how to get power out of the year phone jack. stuart: on your phone? our batteries are recharged english-speaking take it into the phone. >> $0.50 designed it. >> he and his team are experts

as audio and design and customers. we're that electronics and chips and things, they help us create head phones that sound great, gave us pointers on design and marketing. we made it smarter. stuart: what is $0.50's real name? >> curtis. >> i won't help you with that. stuart: curtis jackson. >> something else about him. he is one of those guys who could sell business equipment. he is fit. >> carmelo anthony is an investor. he is going to help us tested. stuart: do you know where he made his big money as an investor? >> are you dick clark all of a sudden? what is happening? mr quiz show? stuart: vitamin water. $4 billion, $0.50 had a piece of it and made a ton of money. how much are they going to charge for those head phones?

>> they haven't released pricing yet. i can't sneak peek at that. stuart: will you give me those 4 free? >> when we release them and we will make sure you get a pair. stuart: it is a good product. thanks for responding. >> put it on my card. stuart: couldn't do it. are we done? the economy has been taking a back seat in the news cycle. that is going to change and i will tell you why the first time bring you the beach boys. fox and friends at summer concert season. ♪ business, with startup ny. we've created tax free zones throughout the state. and startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure.

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nicole: i am nicole petallides with your fox business brief. earlier in the day the dow was up 60 points but concerns about the green/russia border and tensions building. now we see the dow is down 73 points with all the sectors we were following closely including retail druggists, banks, transports are lower, oil services are higher, we will take a closer look at the sectors. the vix after being downsized, take a look at it now up 11% at the moment so things certainly heating up, this is desperation

friday. the retailers following closely including nordstrom, as a modern and dillards, nordstrom down 4%. estee lauder earnings could jump to the downside. and dillard second quarter earnings fell and stock is down 6%. more "varney and company" coming up.

stuart: the real halftime report. nicole petallides at the

exchange. david weiss in providence, rhode island, brian kelly always here. the economy, back in the news again. interest rates at historic lows. the biggest economies in the world, some of them contracting. you are a professional economist. what do you make of this? >> europe has a big mess going on, we see second quarter decline and everyone else between problems in the middle east and in the ukraine, people are scared to do anything. stuart: are we in america going to suffer because of what is happening in germany and japan and all of europe? >> it hurts us because if they are not buying stuff they are not buying our stuff. particularly capital goods into europe and some in japan, the economy is going to translate weakness in those sectors in the u.s.. stuart: are we going to expand at a mere 2%.

can we break out? >> we will do a little better, this is a half speed recovery, it will be at half speed recovery until europe fixes its problems, and they get more confidence in the united states. stuart: thanks very much for joining us. i kept it short. it is always a pleasure. i want to get back to russia with brian kilmeade, the president will visit the baltics in november, to deter president putin from invading estonia or something. >> he is missing with the baltics and talking to the population big or small creating havoc, a more favorable trade situation at the very least with mother russia. in the financial world, rolling in possibly of russian humanitarian aid they claim into the eastern ukraine after russian separatists to the surprise of vladimir putin are

getting routed. some say they are being blown up by the ukrainians. that could be huge. stuart: they intercepted and all of column, fired on them and destroyed them, that is what the market is down and it has come to 74 down. >> it goes to the baltics. stuart: next up coke buys a piece of monster beverage. you like this deal for who? for coke or monster? >> for both. this is a perfect example of a win/win situation. coke has to diversify away from soft drinks. we are not drinking as much as we used to. energy drinks are the leading edge of the beverage industry and monster is best of breed. monster gets a bunch of cash and coke's distribution system gets a piece of high-margin growing business and further diversify away from plain old coca-cola. stuart: here is a stock that has been beaten down, see world,

buried under a mountain of debt. now they are upgrading their killer whale habitat. that is not going to bring the stock back. nicole: it may bring people back. that will help the company with their bottom line ultimately. the concern for see world which is up 1%, this stock dropped 33% this week and that was on falling attendance. why did that happen? at least they say in part because of a documentary, black fish, there on cn and several times talking about the inhumane treatment of killer whales. to answer to that sea worlds as we are going to -- the won't say how much, maybe $100 million plus, to extend a habitat for these killer whales. they are going to be groundbreaking setting standards around the world and doing this over the next couple years. the new enclosure holds 10 million gallons of water,

extends to a depth of 50 feet. stuart: watch out for as this one. ali baba pictures finds possible accounting irregularities. the chinese amazon is said to do an ipo in mid september. tom, you are going to buy the ali baba ipo. >> if i were offered shares in the ali baba idea which i won't be i would take them. ali baba is an enormous company, 24,000 employees. it did more revenue on the chinese version of black friday by itself that we actually did in the united states of america so that the scale of this is a huge. concerned that the books aren't accurate, this idea is going to be hot if you can get some. i would seriously recommend taking a look at it. stuart: thanks, that is it for the real halftime report. we appreciate you being with us. the billion dollar car auction in california record sale of a

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stuart: 1962 ferrari sold for $30 million at an auction in california. dennis will leave the start. that record may be broken tonight. adam shapiro is in california at the auction site. which car will break that record tonight do you think? adam: the potential of any of the cars, ferrari is really big. ferrari said the record last night, just setting things off. their options will begin on saturday and on sunday and they have one ferrari which could fetch multiple millions of dollars so these figures are crossed but the ferrari last night was a 1962, 250, it is one

of only 36 in the world that exists and if you don't have the $38.1 million to buy that kind of car they are expecting a half billion dollars in sales this year at the four big auction houses, you could get this, remembers these when you wear in the u.k.? pick this up from 30 to 50,000 or someone with your income, this for our you get this for $700,000 to $1 million or this is a throwback to your days as that it be, your days on the runway with angela davis, this can be yours for 100 grand. did you ever think anybody would pay 100 grand for a bmw? these have shot up in value and i will wrap up. if you are looking to get into the industry needs century cars, used to the older cars like packard and rolls-royce, big hulking cause, now is the race is, ferrari, and japanese cars from the 60s won't be on the auction block as well. stuart: thank you very much. we finally got doug shoen from

martha's vineyard. is the lining up for a job in hillary's 2016 campaign? he is on the phone next.

stuart: we have got him on the phone and we will ask the key question. doug schoen, a clinton insider, still the democrat, if you are on martha's vineyard. will you join the clinton campaign in 2016? >> if there is a clinton campaign i suspect i will support it but since i tell the truth and i am still a democrat i think it will be tougher and tougher to be part of an effort that will have to explain away the unexplainable. stuart: do you think she will be the nominee? >> i think she will be the nominee but the president's record makes it really tough for her to win an election. the clintons never ever can be counted out. stuart: doug shoen, have a good

time where you are, martha's vineyard. we will see next week. we are fresh out of time. the markets come back a little bit, we were down 140, now we are down 80. dierdre bolton, you have a deal. dierdre: thank you for the next handout. big-name investors and big dollars, report card day for hedge funds. the public gets a snapshot of where the big managers are putting money to work. their mandatory as for the fcc, wall street journal, and constable has been going through the filings. a fund mimics big investor moves appropriately called the guru fund, a 20% in the past 12 months, 70% in the past two years. happy friday, glad you are here. you and i have been going through the