quarter were lowered so much. it didn't take much to beat expectations. right? nicole: yes, to a certain extent that's right. liz: it is a record for the nasdaq. an all time closing record as the bells ring on wall street and main street. let's see how stocks finished. 5092, the number to beat. we have a win. 5106 for the nasdaq. (?) small caps had a great day. up one and a quarter percent. followed by the s&p. complete reversal from yesterday. >> we should mention we haven't succeeded enough on the dow to win over what we lost yesterday. we would have had to go over 200 for that. but it is still a healthy day nonetheless. we have a business hour straight ahead. after the bell starts right now. david: getting right into today's action, we have george

jr. of the vp wealth preservation fund. he says the energy sector is not out of the woods yet. george bell of shaffer's research. why stocks could give the us a boost down the line. and todd horowitz. our perpetual bear, almost on a day when the market is making records. how do you square your overall belief with what happened in the markets today? >> it would be a new high if i wasn't here to celebrate with everybody. the nasdaq made an all-time high. i'm looking for 5132. i want to see that print taking out. i'll be back to my bearish self. when i look at the overall picture. yes, the markets are going up. you can't fight the tape. all the things we talk about. you have to be a stock picker here. these markets are significantly overdone. the news we're getting out is not supportive of the amount of rally

we're seeing. we can't keep lowering expectations. at the end of the day, some day this will come back to haunt us. too many companies sitting on too much cash. not putting it back to work in the markets. apple sitting on -- >> hold on just a little bit of a correction. apple is sitting on 194 billion dollars' worth of cash. go ahead. >> i apologize. i read 772. >> it's 194, go ahead. >> no problem. they're not putting this money back to work. for people to get real jobs and focus on the economy and rebuilding the economy. they're stuffing their coffers makes a lot of money. they're not producing to the average consumer and rebuilding america the way it should be. >> todd, you're always uncomfortable with what we see. but we got good consumer sentiment joe bell. good hold numbers. ex-transports was not the worst thing in the world. are you bullish on

stocks right now, joe? >> short answer, yes. you look at the charts that todd talked about. when you talk about the stock market, you're talking about expectations. look at the first quarter earnings. yeah, it wasn't a great quarter. we barely broke even on year-over-year earnings per share. the expectations were for dramatic stock. mostly due to the international exposure. the strength of the us dollar. tough winter. i think the market held in there. from a broader theme, you look at what managers are investing in, they're mostly overseas. we're looking at european stocks. japanese stocks. investors and fund managers continued to be underweight us equities despite being at all-time highs. >> it seems we have consensus with joe and todd and the question of expectations. expectations were so lowered so much that everybody is happy when they came in better than expectations. but in real absolute terms, it wasn't a great quarter, was it? >> no, it wasn't a good

quarter at all. the expectations going into the year were plus 4%. revised to minus 5%. we came to break even. break even relative to expectations of minus five is not great. earnings for the whole year are expected to be barely positive for the s&p 500. about 1.5%. the only quarter that's expected to be positive is q4. a lot riding on positive earnings for the fourth quarter for us to get to a year with a positive on it. liz: george, if you were to pick one sector, what would it be for our viewers? >> health care is outperforming by a long shot. look at earnings expectations, it's really the only sector in the entire s&p that's growing above two or 3%. growing at a positive clip. that's the place i would invest. >> i know tiffany did well today. that's certainly discretionary item. look at michael kors. look at coach. i mean, you've got a

tale of two worlds with discretionary consumer items, don't you? >> you're absolutely right. there's -- it's really a stock-picking sector. you'll see a lot of underperformance and a lot of dispersion between the winners and the losers. some names i like is car max. strong earnings report recently. i like the uptrend and overall negative sentiment surrounding that. then gopro. faced a lot of optimism. one hundred dollars after its ipo. loss more than 60% of its value over the past year. all of a sudden, technical strength. higher highs, higher lows. surpassing that 50 level which has been a thorn in its side. higher prices in those names mainly because of the strength, but also the low expectations surrounding the sector. >> let me go back to todd. i brought up greece with one of the traders on the cme. he wasn't biting. he said, that's been on the radar for five years. and it's kind of just there and spinning its wheels. next week is a key week.

there's a big debt payment that's due. does greece make it? >> i think they'll make it. and everything is placed in this market. nobody cares about greece. the bigger concern is not greece. i think merkel would like to throw greece out altogether. the more concern is they let greece default and spain and portugal default. that becomes a problem. it has the gdp of indiana, not a major player. the real problem is what could happen down the road. if greece does default, do others follow suit? that would be a bigger issue. that comes into real gdp and real manufacturing and real goods and services. that becomes a problem. >> and joe, put that into context what happened the first quarter. all this money went over to europe. europe was the darling of all the investors for the firsthe first quarter. their index was up while ours was flat. i'm wondering as things play out in europe and

the situation deteriorates or at least stays the same. whether that money will come back to us equities. >> that remains a definite possibility. you talked about the money flowing in. nearly $90 billion of new assets and elephants. moretfs. most of that exposure not only europe, but also japan, and the common theme is the money is sort of chasing that quantitative easing, looking for a repeat of what we saw a few years ago. i would say the big difference is the trade in europe and even japan, is much more crowded than we saw the us recovery a few years ago when everybody was sort of doubting this, quote, unquote, fed fueled rally for quite some time. >> it is still fed fueled. but don't fight that tape. it is what it is. good to see all of you. >> good stuff, gentlemen. thank you very much. in texas, at least 31 people have died as a result of storms that have ravaged not only texas, but oklahoma as well and northern

mexico. all happened since this weekend. liz: dozens are still unaccounted for. will carr is near the crisis. there's a bridge. all kinds of problems with water and flooding. >> that's right, liz and dave. there's a widespread clean-up effort all across this city. take a look. you can see the work they're doing right now. several hours ago, we were out here, and the water started to dissipate. that's when crews saw a red truck submerged in the water. a short time later, they found a body 30 feet from that truck. bringing the death toll now in houston to six. one man had a heart attack while he was trying to rescue a woman as floodwaters surrounded her car. >> my dad was a hero. he was helping -- he was helping himself get out of trouble. then he was helping another lady get out of trouble.

the kind of person he is. >> the woman who callahan was trying to help ended up surviving. eleven people are still missing in hayes county. there's been controversy -- people who live in hayes county said they did get an alert to evacuate. vacationers did not. the governor has issued a disaster declaration for a number of counties, going all the way from the rio grande up to the red river. the damage is extensive all across the region. back to you. >> will carr, thank you very much. >> thank you. >> elon musk spacex program gaining approval to launch military satellites for the airports, considering his kind of shaky track record on some of this stuff. is this who we want involved in military operations? >> plus a massive corruption scandal hits soccer's head organization. fifa. we have a former soccer player along with a man set to run for fifa

president. maybe he's a little lucky he didn't run. >> i would say so. also, a guy who ran for overstock.com. the chairman and founder. expanding its presence in china. what is the key to doing business in china? how do you remain an even keel with a business partner? ceo patrick byrne joining us live here in studio. >> and the official hurricane season forecast is out. will that be what we face? we have the details for you. how accurate have they been in the past? we'll look into that. ♪ you're driving along,

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and you could save up to $423 dollars. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. ♪ >> hurricane season is on us. it's expected to be less active than normal this year. that's been the case for several years now. forecasters say it can still deliver two storms. noaa's national center said it could deliver two storms. two storms could reach category three or higher. last year, noaa's forecast was right on. eight to 13 main storms. eight ended up forming. one or two major storms right on the money. but it doesn't nail it every year. back in 2012, the year

of hurricane sandy, there were four more named storms than forecasted. two more hurricanes than noaa has predicted. happened the opposite as well. >> we have racketeering. we have bribery. all allegations swirling around soccer. soccer's governing body, fifa in a very harsh spot. loretta lynch announcing charges against five corporate execs. >> in short, these individuals through these organizations engaged in bribery to decide who would televise games, where the games would be held, and who would run the organization overseeing organized soccer worldwide. liz: all these people getting ensnared in this scandal. grant is a fox sports insider. and william, former

ten-year major league soccer goal keeper. where he played for teams. including the columbus crew. to you, william. you were in this business. you were in this league. what was your first thought when you heard about today and all the arrests? >> not surprised. i think everybody within the soccer world knows of the corruptions and the improprieties that have been going on for decades. but surprised that charges have been filed. and even more surprised to hear it come from the us and the department of justice. >> grant, these guys were hauling in the money. 150 million in bribes. but yet, just a handful, just over a dozen have been arrested. and i say just because more than a dozen people, it would take to get $150 million in bribes. could this go wider? >> it could go wider. the attorney general

saying this is only the start of what they want to achieve. they want to take it all the way to the top and to the president. they didn't have enough stuff to arrest him today. the 14 people arrested today, they're hoping they can turn and get evidence that goes all the way to the top -- >> in a way, it was a sting. they were at a fancy hotel in switzerland. i know you heard this, william. they were having a fancy breakfast. the vote is soon. seth who was been the president for four terms was expected to get in for a fifth. suddenly, they're walking out with sheets over their faces and getting arrested. drama here. what do you think happens, next, william? >> i'm not sure. time will tell. i do agree with grant that this is probably the tip of the iceberg. and i do not think this is the end of the investigations. i do overall think that this is a good thing for soccer, especially us soutussoccer. >> yeah, to clean it up. but also in a week, we have the women's soccer

tournament. does this divert the spotlight? >> it certainly did. the women had their media day in new york. they were asked about fifa. it's a big thing. it will be on fox and fox sports throughout the next month. and it will get the attention it deserves, i think. but today was a day that fifa took more attention. >> fifa is in trouble. you actually ran. he did. for president of fifa. a little tongue and cheek. >> i did in 2011. >> why did you do that? >> because the reputation they have is of an unclean organization. fifa has all these problems. it needs to get fixed. no one would run against the president who was in charge during all these problems. so i put my candidacy out there. at that point in time, anyone can run. now they've changed the rules after i've ran. what i found out was that it's a very insular organization where i couldn't even get a nomination to compete in the final election, even

though the fans of the world -- we did an internet poll, they were in favor of me. >> therein lies the issue, it really hurts the reputation. does it hurt recruiting efforts? i'm sure when you were a young boy and you dreamed of playing professional soccer, it was perhaps a little bit cleaner. what does this do now? we have russia and qatar in a harsh spotlight because people feel like they may have been part of the bribery to get it in those cities. we may get it by default in the united states. >> i'm not sure it was cleaner when i was growing up. i think the future is brighter for the next generation of soccer players. it's a growing sport. major league soccer has a strong foothold. it continues to grow. this is a great thing for the next generation. >> you've moved on to wealth management at raymond james. congratulations. grant, what are you running for next?

>> i'm not running for soccer -- >> everyone can watch that on fox sports. good to see both of you. david, to you. >> i'm voting for grant. no matter what happens. elon musk, spacex program getting a contract to enter the military market. does spacex win this contract on merit alone or other forces at play? also, overstock.com expanding operations into china. we'll get a first hand account of what it's like to do business there from patrick byrne. what do you think about our relationship with china? is china more of an enemy or partner with the united states? message or tweet us at fbnatv. your answers coming up.

♪ liz: we have some new developments in the irs data breach. criminals stole personal information and accessed 100,000 taxpayers files.

black burmablake has the latest. blake: congress is demanding answers. orrin hatch sent a letter to john asking for more details by next friday about how cyber thieves used internal revenue service.gointernalrevenf americans. they went to the get transcript portal and plugged in stolen sensitive information along with the answers to personal identifier questions to access tax documents. the irs says up to $50 million in fraudulent returns may have been stolen. and the thieves may be holding on to the information to file bogus returns next year. rob says, the value of personal information for cyber criminals though, in some cases, does not -- and there he said, thieves can also use it for extortion and public shaming and treat it like a product they

can sell. >> these hackers, after they have their way with the data may be selling it to other hackers to perpetrate crime. there's a lot of bad ways this data can be used. >> if you're one of the roughly 100,000 affected by the irs breach, you might not find out for days, liz. that's because the irs says it will begin mailing letters to the victim by the end of this week. back to you. liz: oh, really. i'd like to know sooner than that. thank you, blake. david: so does the latest security breach at the irs really surprise anybody? the irs after all is the mother lode of all your personal information. where else would a cyber thief want to go? does anybody believe that a government agency can outsmart cyber thieves in securing our most precious data? questions for our panel. john. and gary smith. fox business contributor. john, were you surised in.

>> no, not at all surprised. if you work in government, you're not going to be as skillful as the people outside it and want to defraud it. since this will be the norm, the problem is the irs. this is not something you can reform. >> it's incredible. the irs has such gumption. they're blaming turbo tax. it's their fault. not the irs's fault. >> really when you think about it, dave, is there any screw-up that the government does that at this point that we say, oh, my gosh. how could that happen? from construction projects to sinks that cost $500 in the defense department. this is kind of par for the course. yet they come to us hat in hand every year saying, we need more money. we need a bigger government. david: right. and politicians like bernie sanders say we need more taxes. 90% is how much he thinks the top rate should be. >> well, that's the good news about bernie sanders is he may actually convince people that we need to get rid of the income tax

altogether. david: wouldn't that be nice? >> isn't it odd that we live in a country that's founded on the idea that we'll be skeptical about government. nowadays, every year, we have to prove our income to the incompetence of the irs. this is not something that we should be doing in this country. david: gary, lovely thought that he has. might all these scandals make the case for the people in the coming election that we should get rid of the irs? >> i hope so. you know, to bernie sanders' point, he says the 90% can work it. we had it in the eisenhower era. does it matter if it works or doesn't work. i'd like to ask mr. sanders, why is that the government's job to redistribute income? david: exactly. not in the constitution. crony capitalism, defense contracts, they go hand-in-hand. they're legendary. elon musk getting a contract despite some launch and recovery failures. leading people to wonder

whether crony capitalism led a bigger role than it should have. >> i think it probably does. let's face it, he's been involved with this for a while. he has a tight relationship with the government through tesla. my sense is he's a great entrepreneur. he's merely diminishing his capabilities as an entrepreneur in getting in bed with government when it comes to space. david: gary, i must say, if i had to choose between elon musk and some of the russians that the air force is actually dealing with on these space programs, i choose elon musk. however, things haven't been going perfect at spacex. notable launch failures and recovery failures. >> well, you're right, dave. and i view it though from a different perspective. it might be some crony capitalism. but elon musk is the one who sued the defense department to open up the bidding to private enterprise. so i think he's -- david: okay. >> -- in a way striking a blow for capitalism. david: let's hope so. the white house has essentially become its own media production

company, according to the washington post. they said that today. they were describing the administration's plans to communicate through social media rather than the mainstream media. is the obama administration insulating itself from press scrutiny by focusing on social media? gere, what do yogary, what do y? >> yes. and brilliant. if you can avoid criticism and get your message out with only laudatory feedback, yeah, absolutely. why not do it? doesn't make him a good president, but makes him smart. david: but, john, it's one of the responsibilities of the commander-in-chief to allow himself to be grilled by the press. that was one of the hits on nixon, justifiably so. he had ensconced himself inside the white house when all this watergate stuff came out. he wouldn't come out and talk to them. >> presidents are supposed to face the nation. but they invariably try to avoid it to some degree or another. this is the beginning of a trend whereby

presidents hide behind social media. david: gary, do you think that's true? this will be the beginning of a whole trend? >> don't we see it with the current democratic nominee, hillary clinton? what has she done, one press conference. i think we'll certainly see it continue. david: is there any out for people who want answers from their politicians? obviously the final out is the ballot box. right? >> i think you hit it on the head. the ballot box say voting if politicians avoid the press too much in a way that offends voters, they'll be voted out of office. >> don't forget that john and i will be on forbes on fox this saturday and every saturday. 11:00 a.m. eastern time. on our sister network, fox news channel. liz. >> one professor wants to master the art from working from home by using robots. his idea takes off.

you may never have to sit in a conference room again. we're talking to him next. and a huge blow to one of the big email providers as a judge rules that provider must face a lawsuit accusing them of spying? the details next. ♪

liz: yahoo! is heading to court. a federal judge ordered yahoo! to face a nationwide class-action lawsuit. they accuse yahoo! intercepting content of email sent to subscribers from non-yahoo! accounts using information to boost ad revenue. users that received email sun scribers from october of 2011 may sue as a group for alleged privacy violations. david? david: liz, china, just when you think china is acting like any other partner of good wil, it does something that seems more like an enemy than a friend. how do you maintain an even keel with a business partner like that? joining me in a fox business es exclusive, patrick m. byrne, ceo of overstock.com. i've seen that guy in commercials. they increased their operations in china. china is tweaking us with regard to islands it does naval

operations on. what do you think of china, is it our friend or our enemy? >> it is both. to make it an enemy treat it like an enemy. i'm deeply troubled by the south china sea treating it like their bathtub. i'm all in fav of engaging with china economic lilt i'm quite surprised. i guess they sense we're on our heels not capable of taking business. we have to get the filipinos and japanese to start, this has to be confronted what they're doing in the south china sea. generally i'm very pro-china. david: what are you doing? what is your participate in china? with whom are you partnering? >> just this month we opened up warehouse in china. we're starting to carry our goods in china. david: is it your warehouse? are you renting it from the chinese or what? >> you're renting. you can't buy, can only get things on 99 year leases there. we take space in a warehouse. we're selling a major chinese marketplace. and we're starting to take goods from the u.s. there and our

partners in china from whom we buy goods, we're pushing their -- tte chinese really want american stuff. they want american furniture and things like this, even made in china. so we're selling that. david: a lot of people look to china a way similar what happened to japan back 100 years ago when they were trying to avoid being taken over by the west. so they incorporated all the western technical know how but kept out the western philosophy, the stuff that could taint in its minds its politics. that what is happening with chinese government trying to do now? >> absolutely. 100 years ago they had a policy they called the self-strengthening movement. i think it was called the self-strengthing movement. david: this is guy who speaks chinese. so he knows what he is talking about. >> all about study foreigners. bring their technology but they do not want our ideas. our ideas of -- david: will they be successful? are you in a way, i know you don't want to use this word, kind of subverting that by dealing so much with the chinese? by bringing commerce to them?

won't that sort of change their mind-set, their philosophical mind set, make them more open democratically? >> ideally it will. the growth after middle class there, essentially a authoritarian government can only exist in the absence of other strong civil institutions. a bar that the lawyers belong to something like ama or strong, society of editors and newspapermen. so the more you can do to strengthen the middle class and other civic institutions within china, the more it erodes the comparative authority of the state but ultimately i'm not being pan glossian about that. i think there is -- david: did you just say pan glossian? this guy is too smart. leave a little time for your next idea. we have authoritarianism here in the united states. >> to for it. david: people call it the federal reserve board, keeping artificially low interest rates. low interest rates are distorting markets. everybody agrees with that, even

janet yellen to a certain extent. that is causing trouble for commercial banking. even jamie dimon, arguably the most successful banker in america, is saying silicon valley, you folks in silicon valley, you're a part of that may disrupt the whole banking community. how so? >> absolutely. you can take the technology that underlies bitcoin or block chain or generally the krypto revolution, and when you apply it to money you get bitcoin. apply it to the stock market. you can create a stock market they can't rig. you create a stock market all the games we've been hearing about can't be played. david: a nondollar stock market? a stock market denominated in bitcoin instead of dollars? >> no, it is not that. the underlying processes of the stock market, it is still in dollars but there is a whole bunch of loopholes in the system that let wall street be rigged, anyone not living under a rock the last seven years gets that

wall street is rigged in several ways. you can create a krypto technology to create stock market big boys can't game. can't have flash trading or front running or naked short-selling. can't play all the manipulative gains. it is a fair stock market, we will eat the lunch of jamie dimon. david: but jamie dimon and others see this coming. there are to many vested interests in the stock market to let that happen, right? >> you know as other industries around the u.s. gotten disrupted what does wall street say? well, this is just hot, harsh winds of capitalism blowing over your kansas town. guess what? that is about to happen in this town. david: patrick byrne, by the way, is involved in a lot of ventures. when you get involved in something you put your heart and soul. are you taking time out from overstock to focus on some of this? >> right now we're doing it within overstock. let me put it this way. unlike al gore i was not at

beginning internet. i was there within four or five years. we knew the internet would be profound as guttenberg bible, the change it would bring to society. i'm predict the krypto revolution, that the bitcoin is small part, that will be at least as profound as internet. david: changing banking in the country. i had scott mcnealy on yesterday, the founder of sun microsystems. he is talking a little bit about that. are you working with him? >> not with him. i'm talking with major players in silicon valley. they want to come here to eat people's hundred. these are financial tech companies. people who do tech really well are in silicon valley. they want to absolutely march here and eat their lunch. david: stay tuned. we have to have you back here with more on how that progresses so. >> i would love to. david: patrick byrne, thank you appreciate it. liz? liz: massive recall from ford involving hundreds of thousands of vehicles. we'll tell you what the problem is, which models are affected. that's next. can't make it into the

office? no problem. your robot is already there. up next how new technology is making it much easier to work remotely. stay right wherever you are. we're back in a minute. the real question that needs to be asked is "what is it that we can do that is impactful?" what the cloud enables is computing to empower cancer researchers. it used to take two weeks to sequence and analyze a genome; with the microsoft cloud we can analyze 100 per day. whatever i can do to help compute a cure for cancer, that's what i'd like to do. multiple medications, does your mouth often feel dry? a dry mouth can be a side effect of many medications. but it can also lead to tooth decay and bad breath. that's why there's biotene, available as an oral rinse, toothpaste, spray or gel. biotene can provide soothing relief

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liz: ford is issuing a safety recall for 423,000 vehicles in

north america. this recall involves potential issues with electric power steering and follows reports of four accidents. then recall, the recall rather impacts certain 2011 and 2013 ford taurus, ford flex and lincoln mkss and mkts. the 2011 an 2012 ford fusion and lincoln mkz, along with the 2011 america criminal milan. david: -- mercury milan. david: liz, lamborghini, italian automaker confirming hours ago it will build it in italy. we heard rumors. we didn't know it was true. now they have confirmed it is. after its home country offered $87 million in various tax incentives, beating out a rival bid from slovakia. lamborghini expects to make

3,000 suvs every year. this will be begin in 2018. the reported price tag? you will have to pony up about $200,000. mean while missed opportunities. finding the perfect formula to let employees work remotely. that is a goal of a two-year experiment from mit's sloan school of management. liz: we'll coming up look how that works. he is right here. peter hurst is running the program. he joins us now. peter, there are some people thinking to themselves, i want to work from home. i don't want to face boring waits in conference rooms but what are you doing that changes the current perception of what it is like to work at home? >> okay. great. well the thing is, as an organization last year we really made a concerted effort to enable our staffs to work under flexible arrangements remotely or anytime any place. and do that really wanted to make sure that people who were

watching remotely weren't disadvantaged. as you know the old adage and research knows that are remote are are not part of the real lifeblood of the organization. they don't get to be part of the collaboration happening in real time. liz: sure. >> we want to fix that problem. we're looking at a few technologies for that. we tried standard videoconferencing. that has some, that kind of work, you see people as a big face up on the screen and it is obvious they're very different. it doesn't have the human engaging. liz: let me explain to you what our viewers are seeing right now. they're seeing what appear to be tablets propped up on moving sticks. >> right. liz: almost like a moving robotw would this work? >> right. so you have described it perfectly. it is a tablet on wheels. liz: okay. >> one of our remote workers essentially through the website

or through their own tablet log into one of those robots, steer and drive it around one of our office locations in order to take themselves into a conference room or into somebody else's office or up to the watercooler and have a conversation in a much more natural way and much more natural setting to coworkers and with their colleagues. liz: if you could, mr. hirskt, about how this would work. you have some rules how working at home would be very valuable. no meetings before, what, 8:30 in the morning. none after a certain amount of time? >> sure. one of the things that we wanted to do is help, allow people to work flexibly in time and place but of course we still need to have meetings. so we would make meetings, have a principle, all internal meetings within a certain time so people didn't feel that they had to be steered and had their lives driven by folks like me that might like working at 2:00 a.m. say all the internal

meetings need to be if we can do it, 2010 10:30 and 4:30. if we have to work outside of those times by time zones, people remote or different times are fully able to participate in the work life of the office. liz: now let me push back and simply say, there are people who feel they don't get promoted if they're not in front of the boss in person. is there an allowance for that kind of interaction? >> we're very aware of that. actually there is another concern we have. a lot of our work depends on creativity and very innovation driven itself. there might be some evidence that could be impacted as well. what we really find, it is that it doesn't affect collaboration to have the people remote because they're getting so much time back they're wasting commuting and really spending on

their work. morale is improving. as one of the managers in the organization i can tell you people on my team working remotely with me i'm valuing very much the extra work they're able to do and their higher energy as a result of this change. liz: well, hopefully people can still wear their pajama bottoms and the tablet won't pick that up working from home. peter, great to see you. we love of the developments that you folks at mit are putting first. >> thank you very much, liz. liz: peter hirst. david: missed opportunities in the war against isis. air force officials are speaking out publicly about pentagon bureaucracy and how the bureaucracy is slowing down our troops. a story that will make you mad and you can not miss. that is coming next. >> hi, everybody, i'm gerri willis. coming up on my show at the top. hour, new questions about the big takata airbag fix as congress schedules new hearings into the scandal. that is one of the big stories coming up on "the willis report"

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common side effects with tanzeum include diarrhea, nausea, injection site reactions, cough, back pain, and cold or flu symptoms. some serious side effects can lead to dehydration which may cause kidney failure. ask your doctor if adding once-a-week tanzeum is right for you. go to tanzeum.com to learn if you may be eligible to receive tanzeum free for 12 months. make every week a tanzeum week.

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carries out air war against isis over iraq and syria against rules of engagement hindering them from striking targets. they blame a bureaucracy that does not allow for quick decision making a former air force general that led us air campaigns over iraq and afghanistan says today's pilots are being micromanaged and the process for ordering strikes is slow. >> you're talking about hours in some cases which, by that time, the particular tactical target is, has left the area and or the aircraft has run out of fuel. these are excessive procedures that are handing our adversary an advantage. >> reporter: in the first gulf war the u.s. averaged 1125 strikes a day. in kosovo, 135 strikes per day. in 2003 in iraq, 800 strikes per day. but against isis pilots are flying only 14 strikes per day.

one navy f-18 pilot who flown missions against isis voiced his frustration to fox news. at times i had groups of isis fighters in my sights and couldn't get clearance to engage. they probably killed people and because of my inability to kill them and it was frustrating. >> in this particular case the ultimate guidance rests in 1600 pennsylvania avenue. today, and over the last six months we have been applying air power, like a rain shower or a drizzle. for it to be effective, it needs to be applied like a thunderstorm. >> reporter: a central command spokesman pushed back saying sag this is different kind of air war, noting that isis blended in with the civilian population. senator john mccain complained recently, 75% of the pilots are returning without any dropping any ordnance due to delays in decision making up the chain of

command. david? david: jennifer griffin, very important story. thank you very much, jennifer. liz: we have a fox news alert. in light of corruption charges and indictment of senior officials at soccer's governing body, fifa, one of the association sponsors is calling for answers. david: good. liz: coca-cola saying fifa hurt mission of world cup, saying in a statement, quote, this lengthy controversy tarnished the mission and ideals of the fifa world cup and we repeatedly expressed our concerns about these serious allegations. fifa says it is responding to all requests for information and we are confident it will continue to cooperate fully with the authorities. but what a mess, david. david: we've known about it for years. meanwhile we asked you if you think china is more of an enemy or partner to the u.s.? spencer says they are the partner secretly against us in every way. liz: lloyd says china is not enemy or partner but more of a friend my. david: what patrick said.

a leopard does not change its spot. did you catch what patrick was talking about? cryptorevolution in banking sector. maybe silicon valley will step in and fix it. liz: will be very interesting to see. for now "the willis report" is next. gerri: hello, everybody, i'm gerri willis. on the show today, the death toll rises from the texas floods. more rain on the way and there are warnings of more flash floods. also why did the irs wait so long to inform the public of a massive hacking of tax returns? we also have new information where those hackers come from. new questions tonight about the big takata airbag fix. are those replacement airbags just as dangerous? we'll investigate. this is "the willis report," the show where consumers are our business. gerri: the web of the clinton finances became even more entertaining gelled. associated press uncoveredil