133, 140 points, 18,150 is where we are. that's it from me. and now neil cavuto, it's yours. neil: were you there for the magna carta? [laughter] stuart: cheap shot. >> no? i was just curious. thank you very, very much, stuart. in the meantime, forget where stocks are today and whether you want to get in and buy, should you be more inclined to buy a house? more data that shows housing is looking the best it's been since 2009. we've seen mortgage applications on a tear, we've seen a lot of people get off the fence in the face of these rising interest rates. so today we're going to look at housing, we're going to look at whether now could be the time to arrest the naysayers and just say maybe, maybe this housing turn around is real. dagen mcdowell's been toll toking this very -- following this very closely. >> home sales on fire last month. sales of previously-owned homes, as you pointed out, represented at the fastest up 5.1% from the

month of april, a seasonally-adjusted rate that came in above expectations despite the recent move up in mortgage rates which started climbing earlier this year. last week the rate on a 30-year fixed rate mortgage averaged about 4%. but maybe that move up is getting buyers to move off of the sidelines, go out there and buy in anticipation of even higher mortgage rates down the road. also the improving job market is helping, and certainly fueling optimism the fact that home prices have been coming back. from one year ago in may, home prices are up nearly 8%, and 228,700, that is your median home price in this country for a previously-owned home. that is just $1700 shy of the peak hit back, can you belief it, july 2006. so this downturn's been going on almost nine years. and you've got home builders, take a look at the stocks, how the stocks are responding to

this good news today. you have got some of them up, and also your home-building applications, applications for home construction in may running at the fastest pace in nearly eight years. so the home builders see were br days ahead as well. neil? neil: thank you, dagen. and we were picking apart this report, and a couple things we found of interest. it was a broad breadth report, every region was up and up smartly, particularly the northeast saw a better than 11% uptick in sales. every other region of the country was up at least 4%. you don't often see that but again, you know, these numbers come in fits and starts. you have new home sales data, you have the existing home sales which is very, very strong, mortgage applications which were running at a were better than 8p in the latest period. home builder confidence which is close to a seven-year high. so how to dissect all of this and whether you should be inclined to take advantage of this, kendra todd and david lickin' on what they're doing

right now. kendra you're saying, what, this is real or give it some time? >> well, no, this is real. you know, we've been talking about whether or not interest rates were going to really start to go up for the last two years, and from the fed's dialogue, it seems like, you know, that's the direction they're going to take. but as long as the rate increases are done slowly and they're done incrementally, i don't think that we're going to see any type of negative response or impacten the housing market as you just mentioned. all the numbers look favorable. and i think over the short term it was expected to be a hot summer, i think it's going to be an even hotter summer as buyers start to get into the market so they make sure they buy before rates go up even further. neil: you know, david, you always hear about millions of ohs who -- others who can't participate in the rally, those who are underwater, whose mortgages are more pricey than the underlying real estate so that they can't move. how much of a factor are they,

do you think? >> there is a factor there. the fact that the rising tides are helping those people be freed up to move on and buy homes, that's a contributing factor. what's also significant about these latest numbers is that we are seeing an increase in the first time home buyers, a 2% increase over the previous month, but it's still far below the 40% average we have seen. these numbers are real, but is this a trend or the high water mark as it relates to these sales? that's what we have yet to determine. neil: if we are off the map, we tend to think we're off to the races. where are we really in your idea? >> well, i think, obviously, it's going to differ region by region, but i'll tell you this, neil, more buyers coming into the market is really not the solution for a lot of the major cities in this country. it's not just cities like seattle and san francisco that have experienced an uptick. you know how cities like dallas

and denver that have officially surpassed the high water mark from the real estate boom as far as pricing is concerned. i do think we need to pay careful attention to the buyers in that $100-$250,000 range. they account for nearly 50% of all home purchases, and as rates continue to go up, they will lose buying power and effectively be priced out of certain markets. neil: one of the things you always hear looking at this market, david, is a lot of people still can't get a mortgage, or the appraisals are still tough to get them to come in at what you hoped. so a lot of those problems of the housing meltdown remain. is that so? >> well, we are seeing some improvement. less problems with appraisals as we continue to see good appreciation in these interest rates and qualifying for these loans and within the current credit box, and i've said on this program numerous times with you that the credit box is actually plenty good. it's the victorian environment we're in that's been more of the inhibitor of lenders wanting to

get out and lend on the fringe of the current box than anything else. look at this deal. every time an interest rate goes up one quarter percent, it requires $100 more per month income to qualify for that. and so as we see interest rates and all interest rates project and say they're going to be going up to 5% by the year end, that means we're going to have to see someone making a stable amount more -- substantial amount more money. the question is are we going to see those income increases? and i think that is another factor that could inhibit this mark and possibly cause this to be close to a high water mark for these numbers. neil: we shall see. still early, but again, hopeful news on housing again if you just tuned in, a surprising jump in home sales running at a pace we've not seen since early 2009 and optimism this could be a sign of better things to come. we've got a market rally going on right now, and a lot of that buoyed by what's going on half a world away in greece. they think, they think they've got the makings of a deal.

i know you've heard that one before, but they're jumping on this one on the notion that this is at least the assurance that the markets have needed that greece doesn't go belly up. all right, jack mcintyre, john tamny on what this means. john, first of all, do you buy that greece is on the verge of a deal, and do you buy the notion that good for us if it is? >> yeah, i think they're on the verge of a deal simply because they can never leave the euro. no matter what, greece will always be on the euro simply because no global creditor is ever going to raise or issue debt in drachma. so they can take on whatever tin pot currency they want, but they will always be on the euro -- neil: you're making the assumption the euro survives. you could argue this would be the beginning of that club breaking apart and the single currency breaking apart, right? >> yeah, i i think so, but i don't see that happening. let's face it, greece is 3% of the total european economy. it's got an economy the size of

dallas. the idea that it will take down a currency is the equivalent of saying that mississippi could take down the dollar if it left the dollar. i don't see it happening. neil: interesting. you know, the other argument against that argument, jack, is that all of a sudden you've got other countries that could be just as vulnerable. portugal and spain come to mind. so there's the domino effect. the one thing that troubles me about this whole european club, jack, is very few meet the credentials to qualify. i think only germany, technically, has all the things you need to be in the club which is sort of like, you know, belonging to a very elaborate and elite golf club and only one family knows how to play golf. so i'm wondering what that means to this european union even if they cobble together a deal that keeps it going a few more months. >> yeah, you're absolutely right. i mean, the club has changed. i think -- so, yeah, there's a short-term relief, it looks like, on greece. but to me, one of the fundamental problems with greece, italy, spain, portugal is that we've got too much debt,

not enough growth to support that debt. it's just, you know, greece is hitting that wall, that brick wall before any other country, but i think there's other greeces that are out there. so, yeah, this is a short-term solution, and we still have a big fundamental problem out there. neil: one of the things i worry about too, john, on this is what brought us to the table and this tentative agreement, if you can call it that, and here's what gets me. the idea that cyprus, socialist prime minister of greece, out of nowhere meets with vladimir putin with whom he's been doing a lot lately, and that scares the you know what out of a lot of other european members. cait s hdoay let's do a deal ha aason aal me ee ns w ndt'em gece ha be in default for much of its modern existence. so why should we be so nervous this time? i think we'd be so much healthier over the long term, jack brings up how a lot of

countries are overdebted. what a healthy thing for the global economy if a few investors got burned so that they would stop assuming that anytime they buy government debt, that it's not a one-way path to profits. let some investors get burped, that will be great -- get burned -- neil: are you saying it would be great if this ultimately falls apart and greece is out desperae for buyers? >> it's only going tock a partial default -- to be a partial default. that's been the norm for quite some time. we can only get long-term economic growth if investors get burned in the near term so they real better to find better investment opportunities that have nothing to do with government waste. neil: you guys are experts at this, as one goes, others follow. i mentioned, jack, this portugal/spain scenario, even france if you wanted to play this out fully. i think this whole european union is being stitched together through, you know, very rusty needles and virtually no thread. and i'm wondering if that's really such a good sign, no

matter how they stave off crises. >> let me jump in here, yeah, i agree. if you think about what is the ecb doing to help keep things together, you know, they're giving a ton of money to the greeks, so there's not a run on the banking system in greece. that's got to continue. with the sovereign qe program, the ecb can manipulate that how they see fit to make sure that you don't get that contagion influencing italian bonds, spanish bonds, portuguese bonds. >> right. >> yeah, there's a lot of things behind the scenes that are keeping the financial market con contagion at bay. it's the political contagion that i think is the greatest risk. neil: jack, john, thank you very much. another peek at our dow and what's going on. this idea that greece survives to fight another day is what's helping this market, and we got that unexpectedly good news on housing. and now we've got some good news on a takeover battle, the

latest -- now, this one in the drug arena. who cares it's almost $60 billion, cigna is saying not good enough. the the latest battle in health care that is proving very hell hawaii in the m&a market -- healthy in the m&a market. in other words, when you can reject that kind of a bid and say we think you can do better, what does that say about how confident cigna is that it can get a better deal or how agreedty cigna is that -- greedy it is that cigna can get a better deal? ♪ ♪

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♪ get excited for the 1989 world tour with exclusive behind the scenes footage, all of taylor swift's music videos, interviewsand more. xfinity is the destination for all things taylor swift. neil: welcome back, everybody. coast to coast there's always this raging debate is the market

top by, is there a ways to go, and sometimes you get these upside events that make you wonder. when cigna rejects a $47 billion offer from rival anthem is not good enough. cigna's stock is up on this news, ironically, so is anthem itself. lizzie macdonald following this very closely, she and i have been through some of these bull market takeover battles, and it is interesting that 47 billion doesn't cut it when a year ago it would have been half that. >> who would have thought that? this would be a whopper of a deal, biggest insurer, third to medicare, and the cigna kr0u is saying, you know what? your growth strategies are not good enough, and that data breach that affected your customers, anthem, not good at all. and they don't like the anthem guy would have four roles; chairman, ceo, president and head of e integration. no cigna guys in the head office. neil: now, he has said that with looking at all the antitrust

issues, doesn't see them being antitrust issues, i'm wondering, though, these are two big guys, and we're not left with a lot of guys. >> and, in fact, standard & poor's says, yes, there are issued just like you cited, and they put both the companies on the credit watch negative if they merge because it'd be such a tricky thing to get them to come together. neil: by the way, does it matter on how the supreme court rules on the subsidy thing, how it would affect the merger? would these two break talks off? diswrowrntion i think they would be the dominant player. that certainly is so key to obamacare right now -- neil: so deal or no deal on that supreme court thing, this is still a deal that at least in the case of anthem it would pursue. >> here's the argument from anthem, they want it. they want more negotiating power. big is power. that has a lot of power at the negotiating table. also the best doctor network in the world as doctors continue to leave their profession. so that's what anthem says is a good thing to do, why they

should do the merger. neil: let me talk about biotech stocks. they've been all the rage, lizzie, and a lot of it's been on the notion that all these great advancements are going to come fast and furious. again, the health care law, no health care law, do you buy that or whether, you know, whatever, we're in the fourth or fifth year of these biotech run-ups, that this is getting long in the tooth? >> long in the tooth, yes, a signal of an aging all. an aging ball. the guys on wall street say these are the can canaries in the coal mine for when the bubble bursts. many of them are profitless. they're trading at really rich multiples, so they would be the leading edge along with the junk and corporate bonds in any crack-up in the markets that could happen when the fed raises rates or even beyond that. neil: is it your notion too, lizzie, when you talk to that it's the supreme court, if they were to rule against the subsidies, it is death or the

affordable care act remains, these players remain vibrant players? it's not like the thing dies? >> they remain vibrant players, but the gop is saying, you know, essentially, i don't think these changes go away when you look at the gop plans, but if the health reform dice, in other words, if obamacare gets what's going on at the supreme court level, if they say, you know, those tax credits really were only meant for the state exchanges, already, neil, you have seven governors who are prohibited by state law from building exchanges. so that means the federal government would have to step in any and build exchanges for them meaning deficit spending on health reform continues to go up. neil: amazing. no supreme court ruling on this, as we said earlier on, it could come, i guess, thursday? >> possibly thursday. neil: could be next monday as well. we shall see. liz say, thank you. >> yeah, sure. neil: i don't know if you guys are big u.s. open fans. i caught this one, it was an

easy rap, all he had to do was one-putt, he didn't do that, he choked. it happens all the time. i remember at the the 18th trying to get it through the clown's nose, same thing happened to me. [laughter] how is that a lot like hillary clinton? how is that a lot like hillary clinton? i'm going to leave you to think about that during the break, and you better come back with an answer, after this. you wouldn't order szechuan without checking the spice level. it really opens the passages. waiter. water. so why would you invest without checking brokercheck? check your broker with brokercheck.

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neil: all right. take a look at the dow, still up triple digits, a lot of it is built on confidence that we have a deal in greece can. now, i don't want to rain on this parade, but we do not have a formal deal on greece. it would be the equivalent of saying you've bought a home and all you have to do is go to the closing. some of you have seen them fall apart at the last second, you know what i mean. it is not a slam dunk. welcome back, everybody, i'm neil cavuto, and we're just hearing a member of that oversight committee here saying that i want all cards on the table at the eurozone summit on.

furthermore, i think he's french, so if i can say that again in french, i want all cards on the table because there's no deal. humor aside, it is not a done deal because they've agreed to the framework of that, but how many times have you heard of a framework deal ahead of your closing and either the lawyer forgets something or the seller forgets something or they find out that you murdered someone in a prior life? my point is that it is not a done deal until it's a done deal, and i think the reality might be dawning on some of these guys in europe and beginning to hit some buyers here at the corner of wall and broad. again, this market is back under a gain of about 99 points. all right, well, you probably saw this yesterday, dustin johnson, a u.s. open to be won, and then this. >> to win the united states open. [cheers and applause] -- >> johnson's got to make this to force the playoffs.

>> jordan spieth has won the u.s. open! neil: can you believe that? it was his to win. i remember a championship family miniature golf event, all i had to do was just get it in, like, the clown's ear, and i missed. and then there was no free game, there was no victory, and my brother came out of nowhere to win the cavuto family championship. it still, it still sticks with me. anyway, choking is nothing new in sports, but it is very, very prevalent in politics as well. and the hill's bob cusack says hillary clinton is no lock either, and she could three-putt away this entire lead. that's the analogy we built up, bob, you can thank us later for that. [laughter] you always are the first to remind me an insurmountable lead is one thing, keeping that is quite another. and now we see these huge crowds showing up for bernie sanders, all the hollywood moguls for

whom hillary clinton was the it girl not too long ago, now they're showing their dalliances elsewhere. is she in trouble? >> i think she's got to be concerned because she had a big lead in 2008 race against barack obama and lost it. and, certainly, the base loves bernie sanders. it's all -- well, a few months ago it was all set up for her perfectly. clear path to the nomination. certainly, the demographics and electoral college favors the democrats over the republicans. it's still winnable for the gop, but it's easier for the democrats with the demographics of the country. but now bernie sanders is really a phenomenon. he's attracting large crowds, and there's talk of, well, maybe he could pull off a stunning upset in iowa. he's still got a long way to go, but there's no doubt about it, i think they've got to be a little concerned about sanders' rise in the polls. neil: and whether he could be a stunt for other candidates down the road. given the passion around bernie sanders, whether it's even too

late for elizabeth warren, that she might try to waltz in and see herself as the queen's successor, but she's not, bernie sanders is. what do you make of that? >> i think the clinton people are going to have to go after sanders to some degree whether it's his record on gun control or immigration. we've seen a little bit on the immigration side. louis gutierrez, a congressman from illinois, has gone after sanders. so i think that she has to be concerned. i think her major concern is going to be the debates. bernie sanders knows how to debate. he's an authentic guy, he knows where he stands on the big issue, keystone, fast track, he's against both of them. hillary clinton, we haven't heard a clear answer -- neil: but is bernie sanders the equivalent this go round that barack obama was back in 2008, you know? barack obama, gifted politician, gifted orator, you know, bernie sanders maybe not so much. or maybe i'm wrong. maybe it doesn't really matter if they don't really like the front runner, they don't really like the front runner.

>> yeah. i don't think bernie sanders is barack obama, certainly not the orator that obama is. and a lot of democrats wanted barack obama to defeat hillary clinton because they felt like he could easily win the presidency, which he did, of course. neil: but it's hers to lose, right? she could pull -- >> it's hers to lose. neil: she could triple putt -- >> oh, yeah, she could choke this away, there's no doubt about it. especially if -- remember, iowa is the base of the base. they love bernie sanders there and in new hampshire -- new hampshire's right next to -- neil: right next to vermont, you're exactly right. thank you, my friend. all right, well, you know, this says something about the kind of world, the competition we live in. mcdonald's stock has been up on all these reported store closings, and we have jeff flock testing that theory out, whether the fewer stores that are out there are still going to have the same drive-through. we've you've got to watch jeff flock, he's a very thin guy but, man, oh, man, does this dude eat a lot. after this.

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>> all right, i don't to obsess about this up 100 points but urd 100 point gain on the reality beginning to sink in among some not all that this greek deal while they have broad outlines of this one isn't a done deal. a lot of members are saying, you know, not a done deal reconvene on monday. you know, to talk about how we're going to implement a lot of stuff. all of the these meetings are a week away, and throughout this

week they're going to talk about ways to who gets what and what promises come with that but a multitiered agreement with a number of players not just you and your bank, i mean, picture you and your neighbors with multiple banks. that is the best analogy i can make, and all of you are underwater unwilling to payadd that wrinkle there is part of the concern that we're off our high. fleeting but i want to make note of it. i want to make note mcdonald's stock sup. not been happening a lot. but it has been happening lately on this idea that it is going to shut down a lot of productive stores try to down scale. other factors at play but jeff flock in the middle of that eating the story. jeff. [laughter] reporter: an the drive-thru line but trying to run around to get some sense of mcdonald's relevance in this marketplace today and what better way to do that than to sample some of the

new fair. i have some of that take a look at the numbers, though, on burgers, 2014. this is continuing to be a growing marketplace. you know how many burgers we ate last year? 9 billion of them. hang on a minute, neil. yes could i get a new sirloin burger please? >> like lettuce and tomato -- >> lettuce and tomato please. >> the meal? >> yeah, sure make it a meal that is great. thank you. thank you very much. >> at the same time, even though burgers grow mcdonald's share of the pyre, it continues to shrink. may sales down 2% they're not going to pamsly report their monthly sales anymore same store sales. worldwide they're pretty flat last year. an earnings per share not so hot. so -- you know, the question is what sort of growth potential is out here? as you point out stock is doing better at this point. question is, and we've been

sampling these things, i have to show you, neil l you know the big mac pretty well that is what big mac look like. this is what the new sirloin burger looks like tries to compete with a sexier burger. you know, doesn't look bad to me. leave it to the american public to decide. >> earlier today you were top down in that convertible. but yeah please -- you have to go through 250 times expense report from hell. but now i'm wondering what happened whether that is all maybe a metaphor the top is down. sunny things look good. top is up, it is raining. what can you say? >> yeah. not a bad metaphor but sometimes it rains. if you live in chicago hang on to your hat because tomorrow is might get sunny again. that is all they can hope for,

but it is -- my coke got that. >> how many drive-thrus are you going through? just the same guy, a thin, fit guy. >> loving it. >> 14th takeout of the day. can you see that report when it comes in, 7,830. up fast food feign saying carl's jr. comerls he knows that, beyond mail so crucial up to mcdonald's. you know, when you take out everything, you don't have the young mail you don't have a lot of robust sales. you were telling me something interest during the break andy that part of what -- what does it for mcdonald's or could do it for mcdonald's is this push for more franchisee establishments explain. >> really the company traded a higher multiple you look at dunkin' donuts or pop eyes all close to 100% franchise trading 18, 19 times -- >> that is because when the more

franchised you are, more stable your income stream is because you don't worry about minimum wage, you don't worry about obamacare. >> they have toll worry about that. but franchiser doesn't. so franchise orer income now you have less income because you lose some cash. but it is a very consistent income because you're getting percentage of topline sales. you're not worried about bottom line in the restaurant. so market likes that, they've proven that other and over again. mcdonald's announcing you're closing always a good idea if you have a story t store that isn't performing well. however i think going to a higher franchise molds with a much more dynamic stock than anything else. >> what about messing up their menu some do it -- either breakfast all day and other establishments but they're confusing people. are they? >> well, you know we've taken a different approach in mcdonald's. mcdonald's has become -- they have a very, varied menu in other words trying to appeal to kids, to women, to the family it is --

>> you can't be everything to everybody. and i don't -- they're very smart guys. they run a great company not being critical of them. but i think they have a broader focus and i would be comfortable with it. >> you're not known for your salad but they're there. for the big old burger. right that is what people respond to. >> people come in because you have a feel and trying to appeal to youth, but young people in general. i think people know us for that. they know us for big juicy delicious burg ergs we have helpful items but we don't sell valley. >> pumping into supermode. >> do you think there's something to this economy we talked to the housing coming back. things people -- confident again. could be a very nice summer event that everything goes along with that, in other words, how house goes, sofranchisee or does that make sense? >> stimulated the economy.

oil price is dropping was huge for the economy last year. certainly it was huge for up about 5% in sales last -- >> now, in about 4% but those things can have a dynamic effect on the economy. however it is a temporary fact that people are doing more business but not building more restaurants or opening more businesses. we have a situation with where we're not opening as many new businesses as we were ten years ago and businesses are closing at a faster rate. so we really need to make fundamental changes regulatory reform. things to generate growth. >> jobs that every sector of the economy is better. >> everybody looks at the unemployment rate if you don't look at the labor participation rate it is irrelevant and we need to address fundamentals i don't think this administration will do that but elect an administration that will. >> do you have a candidate yet?

you were backer of mitt romney? >> three in alphabetical order bush, rubio and walker. they have each different pluses and minuses, but i think overall they're the three real candidates in this. but i love carly pig -- surging we have a lot more. you remember this back and forth on trade day. they want to get a deal done. obviously, before they head out for their mid-summer recess in july. but it is what is being done to get that done. in other words, to you don't go along with speaker boehner on a couple of these key measures, speaker boehner does not suffer disloyally gladly. let's say you vote no with him, your office is a janitor's closet maybe not a janitor's closet but a closet.

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>> investors seeing shares of general mills heading higher today up about 1%. the cereal maker will strip artificial clearance flavors from remaining 40% of the cereals that contain them. trix reese's puffs first to make the switch something that food companies must do. restaurant chains doing the same young brands pizza hut announcing this prove. panera bread, neil it lees the question where am i going to get my yellow number 5 it is in mountain due that is one place. >> you know what i missed is the fact that -- i'm the only one eating unhealthy on the plan et it is getting to be a lonely world

where do i go? >> you eat -- you eat -- just own what you eat. everybody else is sneak eating. sitting at home eating the twinkies in the bathroom. >> i am who i am. they know what they're getting. >> they're stock piling old craft to get the artificial and colors. trchg thank you darling you said it exactly right. one of the healthiest people on the planet thank you very, very much. we told you about this trade deal they hope to get together before the recess. but then as you knew what was going on behind the scenes it reads out of the episodes of the sopranos in other words republican leaders saying if you don't vote for this thing there's hell to pay. you could lose a subcommittee chairmanship and become a broom closet and mark knows it was stripped of his chairmanship for voting against the original trade bill joining us right now. who told you about that

chairmanship. it ain't happening? >> chairman chaff delivered the because knew but it really comes from leadership. next time going back to my office in the broom closet, neil. but you know really when you door -- >> a lot of broom closets have windows so you might be -- >> that is what i have to look forward to. >> did he tell you sir that it was in direct response to your vote, in other words, you voted against something leadership valued including chairman antiguess extension up to john boehner did they warn you in advance that you do this, this is what is going to happen? >> they didn't warn me in advance. but yeah chairman said that exactly that is the reason for it. i voted against this rule. first time i've done that since i've been in congress. but yet the punitive measures were complete, and if that -- >> what was the rule you voted against? one that made allowances for businesses hurt by trade deals? >> yeah, it was the one that

included the taa force of the corporate welfare part of it. and for me -- >> too far. >> sure. sure. >> in other words they would carve out exception being made an you thought it should be a clean vote for trade authority which you would have supported without that, right? >> i'm a bug protrade guy when we look at that, that is why we need to advance gdp and trade is one of those. we ask when it came down to it with this particular rule we went to leadership, we said we have a problem with this rule. all we want is a meeting of the conference and instead they called nancy pelosi to get votes, andty find that just deplorable frankly not what people of north carolina are across the country really want. >> once more than a few of your colleagues get more than twice shy. obviously they're more than better at leadership. i'm wondering we pay so much attention to democrats is there

a discourt among republicans? >> there's a growing discord. i think where we are with this neil is that speaker boehner when he had a number of people vote against him in january, said he heard the message from the american people. obviously, his actions suggest otherwise. and really when you start to punish people for voting their conscience, i have a real problem with that. >> you know, he can argue i'll give hmm benefit of the doubt that we republicans stick together on this. the greater good is trade which we see as end that justifies whatever. murky parliamentary means, and that trust our instincts on this you come ahead. get a trade deal to show we're not just a party to know. we can work with trade you say what? >> well, you know, we're not just a party of know. but really when i give my voting card to the speaker who represents a different people in ohio, to north carolina, that just gives the illusion of being involved in a process and what

we really need to do is have an honest debate. you know, there's a culture of punishment not a deliberative process here, and enough is enough. >> well good for you. you're own man, you're a own man in a bloom closet now. but let me know how that goes and if not we can get a painted window. >> i have a basement apartment once in college it was like a -- you painted window on it almost felt like the real thing. congressman thank you very, very much. good seeing you. by the way here's all of the proof you need that robots are now pcially taking over. look at that. >> i don't know what you're talking about, hal. >> i know that you and frank were planning to disconnect me. and i'm afraid that is something i cannot allow to happen. when, all i can think about is getting relief. only nicorette mini has a patented fast-dissolving formula. it starts to relieve sudden cravings fast.

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>> all right well first pope now the president. administration just released a report on the whole climate change. by moving on climate action, i quote that a approximately 13,000 deaths in 2015 and 57,000 in 2100 from poor air quality. saying that delaying action on emission reductions will likely reduce these and other benefits. i'm thinking of myself. where do these numbers come from? i'm thinking john lovett. 60,000 all right that is -- what we'll say where is science for that? why is administration always -- everyone accepting without opposition, without support. where do you get these numbers? i'm depositing numbers that they're raising and i want people at home to do homework and say how did you come up with those numbers because i think that same numbers that say -- on earth i'm stumped just

telling you. [laughter] that guy laughing in the backgrounds is none other than our charles -- on the robot takes over that are here. and you know, i'm beginning to wonder whether they're watching -- dishing these numbers. >> they are pushing numbers but i know it is not robot thing but real quick on that. not only interesting how they come up with those numbers but did you know that the value of a death under obama administration is more than any other administration before? so that not only is it 57,000 but each death respects x amount of impact to the gdp. >> dust particle this and that, science, get with it. >> sorry. i have a -- challenge. >> they have the number and they say make it work. prveg every time i see numbers like that in the media we accept it face value. there is the number. i don't know. now these robots are all of the rage. robots with emotional all of the

rage we can't sell them enough. >> they sold how thousand robots with emotion in japan in one minute over the weekend. a robot that learns and as it learns it gets more emotional. one of the robots you know that you can do things with, you know japan way ahead of us with respect to all of a us robot stuff. but we are in a are robot economy. anybody who lost a job within last 10, 20 years -- >> we have emotion. they have emotion and they also have robots that are learning. artificial intelligence. ability for machines to learn, that is the clue. that is right there when you go through the fine print of the terminator when it all went to hell when machines learn how to learn on their own and say you know what, forget isaac three rules i'm going for myself first. these humans they shouldn't control the earth an latest ones don't have a german accent. [laughter] only in movies. but what apparently may be big hit in japan is that they really do seem like almost real people

that nair very sensitive right? >> they are sensitive and emotional. >> they give you friendship and leadership. but two weeks ago, the defense department had a contest. robots all over the world $2 million prize and robot that won had to do a task. drive utility vehicle, get out of the vehicle, open the door, cut a hole into a wall, walk over a pile of rubble. the idea that you're going to run away from this this is farfetched. point is we're in a robot technology right now. i'll tell people how to make money from it before they take over. >> you must have come up with multibillion legislation, and must become a liberal congressman. a final -- joke. thank you make money. make insight, make goods. more after this. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one.

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>> all right at the corner of wall and broadway 111 points

northward as nasdaq goes in and out of old time highs. you know drill and buying lately seems to be this optimism over a greek deal. not a deal yet but i don't to get bogged down with details of that but step become and get the argument where markets go from here. bullet argument that we've been climbing and continue to. the art is we can't do that forever. hold on to yourh, and david scranton is i wouldn't say very bear but bearish. why are you bearish? >> well, first of all if you look back over the long run, there's a historic stock market cycles you find that we've never recovered from the market as quickly as we have appeared to have done this time. seems as though in 2013 we broke above levels from 2,000, and if this were a permanent break as opposed to a temporary fed induced break above that resistance level we do breaking in essence three markets with

the storkt first time we've recovered after only 13 years. it would be first time we recover from a secular bear without having three or more major drops within it, and lastly would be first time we recovered from a secular bear before price to earnings ratios go into the singles. >> lost me at third word. but i think what you're saying is longer -- can't go a foot long. you argue not another all. >> those are patterns problem is that you have to do something with your money, and as long as you can only earn 0% in cash. you have no choice but to have most or at least half of your money in the stock market. >> why the building you're at great risk for a great hit? >> well, because assuming that you can time the hit perfectly which you can't. let's say you can do it, in 1999 when stocks were expensive today in 2007 you could earn 5% in cash. like sit this one out. maybe i won't earn the return of the market but 5%. earning zero waiting for market

to slide unless it happens right when you start, and then you somehow go into stocks after crash and not get scared for whatever causes the crash. safe way just keep passing your money in the bonds. stay away from cash. if we have this disaster shovel it in stocks for the recovery. >> assuming that you have time to do so. >> if you need your money in three or four years. but you have achieve market. >> if people never timed these things right. so what are you doing with your money in the interim? >> i think having some money in cash is a good idea right now. >> for how much money in cash? >> depends where you are in your life and goals so on. >> mid-50s and you're looking to retire in 40 years. >> mid-50s to have 25% in equities. you have maybe 20, 25% in cash. you want to have the rest in fixed income. >> what do you tell young people who say time is my friend. i can do this for a long, long time and then richly rewarded

what do you say? >> sighing pals i mentioned to you before although a lot of words there to use. >> kidding. >> reality is that we have 200 years of market history that says there has to be a 30% pullback in the market. even a 25-year-old takes a long time to make up for that. >> that is right even a 25-year-old doesn't want to take a 30% loss. so i'm telling a lot of those folks to stay more in cash, wait for the opportunity it will be the better buying opportunity down the road. >> do you think that when you talk about young people getting back. to your point they're not really all storming in. many young people have not been participating in this rally. few americans on a individual basis. >> young investors rarely have any money and skeptical of this stock market from where their position is. >> they seem a parent -- >> but kind of a shell game ponzi scheme which it is not. an they're less -- frankly they think by real estate and told you this week there weren't a lot of first home buyers in the group to

scared of investing and do better in stocks than in really. so they don't do the full k in high numbers. >> but you argue time is their friend. >> if you're under 30 and you saved anything you can really make the case for any market being 100% stocks because you have little to lose and a long-term to get it back. >> saying could be looking at 30% hit need a longer amount of time recoup that. : five years you're still making disaster for five years from 2000 to 2007 made zero in the market. >> still 2008 to 2009 to now you're doing okay. >> zero has been cash return the last three to five years, it is close to the cash return for next even if they start raising rates a little bit. zero this year, 1% next year. after you have nothing. so chance of underperforming that guaranteed nothing is pretty high in stocks. >> all right guys i want to thank you both very, very much. just what happens to oil, the argument for a greece deal and iran deal as we get both that

means that demand for oil will push up, oil prices will push up. gas prices will push up, and away we go. still playing on that and what to take of that and make of that i should say. phil what do you think? >> interesting to think that maybe we will get a greece deal and not without iran. that is what market is focusing on today amazing how greece held off the meal for weeks, you know, and every time it looks like we get a deal two or 3,000 and prices go back down. now other thing that oil has been worried about when we talk about iran is if we get a deal that maybe, just maybe we get this wil, you know there's talk that 30 to 40 million barrels of oil sitting in tankers that -- is going to flood the market. but problem is that after that initial surge of owl if it ever comes to the market, they're going to have to worry about their production. their production is fallen pretty dramatically during the

time of sanctions. >> oil prices -- what does that mean in interim for oil prices a lot of people looking to summer, busy driving season you're saying they can go up higher? >> i think they could go a lot higher. you know if we get a deal on greece neil we could see oil prices by 65 by fourth of july that much of an explosive move. by end of the year oil prices at 80. one of the things has been a risk of a recession and in europe, sanctions on russia but quantitative easying that should be good for demand assuming other issues play out. first of all, i don't think we're going to get a deal with iran. i don't think, you know, iranian parliament over the weekend said they would not have weapons inspectors in there. that is beginning to be a no go, we heard from french foreign minister that says you know we should be closer to a deal we're not getting there. so you know we may get a surprise if stocks fall apart. >> good stuff buddy or bad stuff

something like that. thank you very much. still oil watch, now all right you know why we're on the brink of a deal with greece? in this could be a good or bad thing because greece was on brink of a deal with vladimir putin might seem like a stretch to you but at least od that greece social pis prime minister had met with vladimir putin three times over the last three days just recently in st. peters and sending a message saying look at my other buddy. i think that brought us to the table and it might help us see a deal or not. it is not a done deal yet. any way to conduct foreign policy an should we worry not only about greece but how vladimir putin is sticking his nose in this. where is this general richard newton. miraculously, we have a deal only days after -- the prime minister greece shows up in sp. petersburg russia.

last time i was on the show we were talking about the g7 summit. but also on the docket was greece. so we wake up on friday there's a deal on a pipeline that putin has made with the prime minister as you mentioned with greece, so forth. i think it is -- it is what i would call maybe a new era that we're entering in. >> if we get a deal here greece is sending a signal. we have friends in other high places. >> you bet. by the way if you're -- european union won't take of us we run to putin who by the way will be there with open arms. interesting county for him because i know by the way we have got the june 30th decline. iranian nuclear talks so forth, so -- >> by the way we should say we were showing you state house, courthouse was known. capital build and vetoes. this is not going down well and a there are a lot of them who say why count down to europeans

when look at russians all they've been offering to do for us and joint gasline together and a lot of greeks that feel that way. >> they're looking for a bailout and for that opportunity. larger context of this is national security implications for the united states, and just by -- what, you know, secretary of carter, defense ash carter is in european. made an a announcement about the potential establishing a rapid readiness task force that would be used in event that, you know, there were threats placed on europe and nato alliance support. that is another interesting aspect it have. so -- >> so what do you think putin is up to stir up the club or divide the club and got this poll couple of weeks back said because one nato member is hit that doesn't necessarily mean we have to run to that nato member. i'm seeing that, hearing that saying that is falling apart. >> he responds to sphrent and he

seeks opportunity and weaknesses remember the styling and so forth. you know, it is a new era, of for putin as well as he sees understand, and again, violates that the united states leave. vital that they lead in the mideast and other parts of the world particularly europe as well. i think ash carter i give credit announcing here for announcing a new rapid task force that could be laid on an event, you know, that -- there could be force on force that the united states has prepared and gathering. >> forces. >> it would be, you know, participating with nato allies as well as u.s. cape >> capabilities. >> ashton carte ire all right we've got big china u.s. talks going on, but here's what is interesting, they're sensibly on climate change which is the drill and not expected to take up issue with all of that hacking. it is a great unmentionable we're told but i think i that would be tapping into our defense establishment.

but let's put it about climate change. really? you're driving along,

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liberty mutual won't raise your rates due to your first accident. switch to liberty mutual insurance 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. >> all right we showed you the start of this broadcast, the surprising gentleman existing home sales better than expected news in the housing arena. we don't want to take too much away from this but helping stocks which essentially have been helping this notion that maybe this time some of good housing numbers will bsh will stick. and people are really inclined to move now that rates have moved up. every housing rally has been accompanying by rates going up. rarely happening when rates are going down. people who are here to incline

to buy a house and sitting on fence waiting to see if they go lower or home prices go lower. moving up and not taking any chances and jumping in. that is the hope and that has been lifts a lot of builder stock and home builders are seeing confidence levels i would say nearly eight years. all right we'll keep an eye on that. also this, hacking not in the forefront according to pleat sources china and u.s. sit down for a two-day conference that begins today in washington. we're told it that they will be looking at climate change and not so much all of these hacking incidents. says that is mixed up as you can get. democratic strategist tom disagrees. we're told it is not beginning to come up and won't be a priority. climate change is focus of this conference you should be okay with that if the pope is. >> ridiculous neil. we have a u.s. private security report come out and say that chinese have engaged in 140

hacks gns the u.s. government and against foreign governments. this should be the priority. but this is yet another case of the obama administration elevating the bogus idea of climate change which by the way we have a climate change agreement with china going back to november. but yet this is the main focus of our meeting with china. not the cybersecurity hacks that we know chinese government has been involved in. what do you think of that? >> respectfully disagree. >> you don't have to be respectful about it. but sayty disrespectfully disagree that is fine. >> no the truth is that u.s. has said over and over again that they're not going to i tayer over issues and everything is on the table when they discuss this. it is clear when you have view of double negatives earlier to prove that they are saying they're going to talk about cybersecurity. say anythingless is not a purpose. i think that top --

>> whatever views on climate change more -- pressing issue is that fact that china is spying on defense establishment. spying on millions of federal workers than those who apply for government jobs and contractor positions and could be millions more. so i'm just saying -- your prior to priorities now is not the time to put the climate change in front of that. >> you're seeing issues on the table that they can solve and talk about and ones that they're managing to solve also on the table a matter of what they think they can make progress on. and a stocks -- >> talked about back in november there was a allege it had deal where u.s. got shafted china won't engage in reductions until 2030. the united states will engage in that immediately. what more needs to be talked about u.s. has been shafted on climate change agenda. >> if you think it has been

shafted we need to continue the discussion i think you made your own argument there of the reason why -- >> you don't agree to a bad bargain and worse when it is discussed again that seems to be climate change within this administration. >> i wonder why not just call off the whole meeting in other words if you're going to talk about claimant change and you might or might not address hacking, but it will sort of be great unmentionable. you might say hey, we're kind of ticked off about this. but this is a climate change comment. don't you make a bigger point to say things are changed so markettedly now that we can't -- we can't in all good faith and -- all conscience do this now. what do you think think of that? >> that is certainly an idea. their idea is -- rntion more more than an idea. i think that truth is they have to sit down. this is an important, you know, time for them to be able to keep. ties with this country which we have, you know, we can't just walk away at this point. we need to sit down with them

and continue to talk about these issues and try to solve them. we're far from having solution at this point why we need to come to the table to have this going. >> figure out whether any country be it china, iran, be it russia, they seem to have our numbers, you know, the u.s. seems to have its priorities backwards and seem to be run all over them. iran yans can threaten agreements an we want them more than they do. and i think world might have our number so not this particular, you know, conference with the chinese. it is like the whoald whole world doesn't respect us or talk to us. >> that is right we're on heels of the chinese government just packing federal data. they have hacked data of 14 million federal employees, former and current from the heels of that tack and yet agenda is climate change makes no deal. bum's own director of national intelligence called this greatest national security threat and second on the agenda

that isn't comport with the words of the administration. >> you get final word. >> we're not going to taper over any of these issues i think sitting down at the table is first start to trying to solve them. that is happening here. >> let's hope we don't taper over this. ladies i want to thank you both. in the meantime telling you about real estate. everything in real estate what is interesting is every segment of the real estate market is moving. except the one million to $5 million listen. i don't know why that is. but every segment is moving, except one million to 5 million. what does that mean? anything? maybe. that next.

>> all right we've been taking a look at housing stocks today not to saver them on the group but they've been moving on a tear of late on this notion that housing itself could be coming back. we're taking a look at stocks right now all of the premier home builders moving up and

fairly smartly from lanar into upper end of toll brothers but a lot of that is on the belief maybe with the surge that existing home sales. big jump in mortgage application activity and building permits that this is a term to watch. it might very well be a trend to watch. but next guest is watching something else. all sectors each and every one in housing market. their entry level homes just above entry level home. middle homes there's the superhigh end. i guess the 10 million to 20 million plus they go like -- you know, talk in this neighborhood. but then they're the million dollar to $5 million homes and they do not appear to be budging much. so what does that mean? million dollar listings on this one, and what it could mean. what do you think? looking at it, it seems to be a unique marketplace that is not really on fire to the degree others are. why is that? >> you know, it's actually kind of hard for me to speak to that

because majority of my clients here in the san francisco bay area are actually in that one to five million dollar price range. this is where a lot of transactions are happening, this is where most of the multiple offer situations are happening. and this is kind of like that affordability index where everyone is right now. and in san francisco -- >> i should pause that is in your neck of the woods to talk nationally. that group can certainly have that atmosphere but where you are, that is probably affordable, right? >> yeah, absolutely. so you know nationally that average price point right now is $228,000 for a single family home or condo. you know, 25% of those are still happening all cash. so the market is very healthy real estate wise, nationally, in the san francisco bay area, i think especially there's been a very watchful eye on what is going on here as far as real estate as far as investing in real estate goes. so i think it is a very good time to be buying. >> right now, with people who

are buying these properties not just those selling but buying them. who are they, how much and again your market is unique that i grant you. but what are they doing to put cash down and more than, you know, per verve. what? >> we're in a tight situation so we have one month of inventory on the market right now. 994 con dose that you can buy within couple of month and there's about 5,000 rentals being built. so now, what is happening is with these buyers, they're getting into a multiple offer situation on mainly any property that -- is coming on to the market. so what happens is going 100,000 to 500,000 or more over asking in order for someone to win that bid. >> so you know who wins it? just whoever bids more that goes to -- i hear in my neck of the woods near new york city whoever puts down cash. but how does it work out by you?

>> you know, i'll tell you something interesting that i'm seeing a lot. i do a lot of lifting, so what is happening is the seller wants to literally connect with who that buyer is going to be. so what we're doing a lot on buyer side is writing a buyer biography of who this gentleman or lady is, and maybe a photo with them and their dog. maybe a photo of them with a brand new wedding photos. because that for some reason or another wants to connect to who is living -- for ten years. >> seller can get money from anybody. but exclusive difference someone they want to like i guess. : exactly. yeah. you know they want to sell the home to someone that is gong to enjoy it just as much as they did and live in it and take care of it as long as they did. i recently had a transaction where we wrote an offer 80,000 less than the highest offer. but because that person was an investor purely using it as a

rental for some reason or another, that seller decided to go with my buyers and loving it. >> interesting. thank you very much. that is a unique air where you are but interesting to hear the same. thank you very, very much. meanwhile i don't know whether those homes are solar powers let's just say solar is not quite where it used to be. not across the board but enough to make you start thinking rethinking solar? after this. it's one of the most amazing things we build and it doesn't even fly. we build it in classrooms and exhibit halls, mentoring tomorrow's innovators. we build it raising roofs, preserving habitats and serving america's veterans.

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neil: all right. you're looking at a live shot in athens, just outside of their main statehouse, government parliamentary body. the government is protesting this deal, the broadest framework has been agreed to on the part of the greek politicians but it is not going down well with the greek public who feel they are getting shortened of the stick again. feel like they will have to give more sacrifices. they feel they sold their political soul to bankers. they should continue to make friends and inroads with our buddy vladmir putin. many have been arguing the reason why we have this framework of a deal is because the greek prime minister was meeting with vladmir putin over the weekend in st. petersburg. that force ad deal like this. but it is not going down wells. few of these deals ever do. it is not a deal. i want to stress we do not have

a deal. i point out whatever we have is not being greeted favorably by greek voters who feel they keep strung along regardless of the government. conservative, socialist. it is getting antsy there. we have china with all these billionaires, they say a new one is created every week but a big one has just been uncreated, nixed and out. david asman with some very telling signs. what happened? >> well, this is a guy who was, could have been the richest man at least on paper in all of china. there are a lot of rich people in china. that is saying a lot. his company called hahn energy, made very thin solar cells. they were thin, which meant they were flexible. that you could mount them temporarily on rental homes. they had a deal with ikea to do a deal with them, to set them up in homes. they had all kinds of things. look how it jumped way, way up. this is happening on the

upside -- neil: this is his company,. >> most of this trading was him. he would borrow money against the value of his stock in order to buy more stock. that shot it up. however may 20th the house of cards came down. the stock lost 40% on that one day. they closed trading on the hong kong exchange. lord knows if it was on nyse or one of our exchanges would be down to zero. the value of the company has probably gone down to zero. this is cautionary tale. he was visionary entrepreneur who got a lot of politicians about his idea of flexible solar cell. didn't matter whether people were not buying it. didn't matter whether it was efficient, it was not. politicians liked it. they were willing to spend 4 billion-dollars from the state enterprise fund, development bank with this guy. that is what he used to get started. used government seed capital. reminds you of experiments in this country.

neil: i was just saying. >> fister. totally different ways in many way, tesla, a business model at least supported in part on government subsidy. private sector decisions are based on market feedback. you are always getting market feedback. when you have the government involved subsidizing a private enterprise you have decisions that are not market based. neil: where is this guy now. >> he is still there and still trying to make the best of his company. neil: but the government is not saying he is a fraud? >> not, not yet but, you think that something like that may be coming. the big question is what happens to the stock and value of the stock once they release trading. a lot of investors are suggesting that now this stock, hahn energy, which was one of the most valuable companies in all of china will be worth zero. neil: incredible. i'm sure david will have a lot more with melissa francis, at close of trading today. who knows, this guy could finally be much poorer at close

of trading, our trading who knows. we have trish regan. she caught up with rand paul. rand paul is just showing up in these polls, not doing that great but still a lot of time. but what can you tell us, trish? trish: he want as flat tax. 14 1/2% right across the board. so individuals and corporations, neil, would all pay the same here. but you know, i sat down with him and i had a few questions for him. i mean do the numbers really work out so that you have enough growth so therefore you have enough tax revenues so you can pay your bills? my other big question was, this has been tried before, right? steve forbes has given it a shot back in the '90s, and it didn't work out so well for him. here is what he had to say, neil. >> steve forbes was before his time in some ways but he also is still remembered for being for it. he is also looked thoughtful person and he actually looked at our plan and thinks it is a good idea. had steve forbes been governor

of new york before he ran that would have helped. hard to run if you haven't already been elected. that is not any kind of a knock on the idea which he presented which was a lower, flat, simpler tax would be good for the economy. trish: not so good for accountants. do you know we have 70,000 pages of worth of tax code? so if you said we'll make it simple, 14 1/2% across the board, you know, some people, in the accounting industry may not be so happy about it. but the hope is, neil, if you simplified it like this, you would actually have as much if not more revenue coming into the system. neil: we've got to do something. >> get rid of loopholes. neil: the day we can do it all on index card, it has to be there, the will has to be there. look forward to it. trish regan at the top of the hour. we told you about hacking back and forth. one thing when they go into your credit account or start messing with your medical data. what if they start messing with your plane? in other words make it impossible for you to fly?

in fact make it downright dangerous for to you fly? it happened in poland. a bunch of polish planes and polish airlines stopped flying because someone got into their master control. yikes! ♪

>> airline stocks taking off following optimistic report by

"barron's." the financial publication saying airline stocks could jump 15 to 50% for the year, thanks to the biggies. highlighting top four airlines in the united states. american, delta, united southwest. upbeat outlook due to following jet fuel prices, economic growth and less competition. the stocks are weak making them ripe buys for bargain hunters. baron's saying revenue per available seat miles a basic out look of financial health in the airlines is not beginning after downturn. markets losing a little bit of steam but we've still got green. more "cavuto: coast to coast" when we come back.

it's a highly thercontagious disease.here.

it can be especially serious- even fatal to infants. unfortunately, many people who spread it may not know they have it. it's called whooping cough. and the cdc recommends everyone, including those around babies, make sure their whooping cough vaccination is up to date. understand the danger your new grandchild faces. talk to your doctor or pharmacist about you and your family getting a whooping cough vaccination today. neil: here is where hacking matters if they get into your airplane. happened to a number of polish airline flights. adam shapiro. adam. >> we're talking about computer systems at the airport. they were not aircraft in route, not in the air when the cyber hack occurred. what transpired was a hack of computer systems at the airport in warsaw which caused the state

airline in poland to be grounded. attacked the ground processing systems. here what the executive at lot had to say. this is industry problem on much wider cale. for sure we have to give it more attention. i expect it can happen to anyone anytime. earlier in the day, lot airlines had said, that they had sate of the art computer systems, the same computer systems that airlines worldwide, think the united states, that airlines worldwide are using. there might be vulnerabilities here in the states, neil, that make airlines subs acceptable to what happened in poland at airport with computers there. neil: adam, to understand clearly, this would be information the ground would give to an airplane, like flight plan or anything like that that was compromised here? >> that is what appears to have been compromised, but in addition to the flight plans, the passenger processing which means they had access to the passenger list. think about why that could be a problem in the united states.

when you fly-over seas, tsa has access to the passenger list. so we have incident here where hackers were able to ground flights because of what they did. what about the incident where they don't necessarily bring an airline to the stand still but manipulate data on one or two passengers? it raises a lot of red flags. neil: scary stuff. adam shapiro, thank you very much. this is only evolving, the polishing state airline, lot, not anyone else. if they could pull it off easily there, could they pull itself elsewhere. we bring this up with expert david kennedy. how vulnerable are we to something like this. >> the technology industry aviation uses across the world. whether they're a little bit out of date or moving to newer systems. definitely what happened in warsaw could absolutely happen here. same types of technology. the lot ceo said this is global problem everybody is impacted by. i. neil: everybody said this, is

polish airline. couldn't have to one of the major carriers. you say it could. why? what happened here? >> the details have not come out how they hacked, but when it comes to computer systems, they have interconnectivity to the other areas like internet or people browsing the internet which are a direct conduit to getting access to networks and causing types of issues in warsaw. if you look it is pretty easy to actually gain access to these types of systems. we heard about this because they're able to disrupt, you know, traffic patterns and planning procedures for airlines and disrupt the ticketing system for the passengers. the ones you don't hear about, where they have access to the system, not causing disruptions or monitoring or changing things that may not to detected. definitely a problem worldwide. neil: what they would do then, if they could go ahead to disrupt communication from the ground to a plane, as far as a flight plan, when you're disrupting the flight plan, you're disrupting weather, other information, you could go up the

food chain and security chain, right? >> absolutely. if you look at what hackers do, they protect and prod situation. they go into different systems to see what motives they can accomplish. divert planes to certain locations. add people to manifests that get through not in other areas. this is major concern. one that impacts the aviation industry and one we see for most commercial flights. neil: scary stuffed. david kennedy thank you my friend. >> thank you, neil. neil: this is athens, greece, i right now as we head into the evening there. they're just learning about the broad parameters of a deal with creditors in the european union and european central bank about keeping greece an and the money money flowing a at least a few more months. they're hearing about concession they have to make. in the capital of athens those contest con -- concessions are

not going down well. they seem to say the socialist prime minister is betrayed them. he is no different than liberal and conservative leaders before them, who had to answer to the almighty euro and concessions they find not appetizing. they feel, a lot of these voters feel they have got nothing by stick and looking for the carrot. they have not had it. they're saying this goes against everything greece stands for. in this cradle of civilization in much of europe, a very uncivillized response. take this deal and shove it. we'll have more after this. you're driving along,

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thousands of greeks are going to the main square, the capital square right outside of the athens parliament. neil: their central government if you will, they're not satisfied with this deal. it is about 8:50 p.m. their time. they're getting an inkling of a deal apparently cobbled together by the government and it's a deal they don't like. markets worldwide have been up on this notion they will approve a deal but this is a deal the greek people is saying is a big let-down to them. we had been up one hundred on the dow. we had been up as much as 170. we were up 85 earlier in the broadcast. that this would be a good thing and the market was receive it well. they don't have a deal. like when you buy a home, all you have to do is go to closing, for those of you who go to closing something falls through you know what i mean. something can fall through. it is rare and it can happen. those are the experiences, you bet it can happen but not a done

deal. the broad framework of a deal the greeks are saying stinks, though i don't know that the greeks will say take this deal and shove it. when it comes to the deal and sacrifices being called for, they don't like it at all. we'll keep an eye on it. keeping an eye on taylor swift who just took it to apple and got what she wanted. apple will start the apple music. taylor swift says she will not be part of that taylor swift says, you know what? i'm not giving away my music three months time and other artists three months time for free. that is a huge sacrifice. she is speaking on behalf of all them. apple caved in. dagen mcdowell and jo ling kent, what are we to make of that? >> she took apple to the woodshed. neil: she did. >> not just for herself. apple was concerned about this some independent labels came forward. beggars group, name one has a bunch of different labels in europe includes one a dell is

on. adele. taylor swift, reporting on this all day long and wrote tumblr post. eddie queue of apple called taylor swift in amsterdam. neil: personally? that he had her number. that is kind of weird. >> she has 59.2 million twitter followers. kim kardashian less than 33. so think. neil: her argument was it was a three-month trial period. essentially giving away your music for the three months. >> that's right. no royalties were paid to the artists during the free trial. we're not asking for free independednt phones. don't ask us to give you our music with no compensation. she used her platform first time ever in major way. neil: didn't she do this with spotify? >> she did. wrote an op-ed. it wasn't taking on same company of the.

spotify she pulled all her music. no word whether 1989 will be on apple music. think it will. >> has four number one hit singles, 1989. this is the album that is on no streaming music. not clear if she caves to put it on apple. neil: she some coulding from business of strength. >> in tumblr post, i don't need this i can put my music out there for free. in other social circles, producers, writers, up and coming artists working for free for a quarter of the year is really tough. what is so interesting about taylor swift doing this, this is the beginning of her taking her campaign on the road and making bigger carses and leveraging all of those twitter followers and really pushing for causes she cares more about. >> to apple, let's, explain why apple would do this. it is not uncommon when streaming music services launch, if they have a free subscription period, that they don't pay royalties.

but these are companies that weren't apple and are not apple and apple is the great big behemoth in the technology business and music business. neil: do you still get a free three-month trial with it? >> yes. neil: apple will eat the cost of first three months. >> not unclear, you can correct me if i'm wrong, how much they will pay them. >> single subscription. >> how much they pay the musicians during that free trial. because what they are going to be paying on in terms of revenue they bring in is 71.5%. so 71 1/2 cents for every dollar of revenue that this new streaming service brings in, spotify, i think pays 70 cents on the dollar. so a little bit more. that was the argument. neil: just throughout the question. i wasn't interested in the exact percentage. >> it is a business. it matters. neil: holy cow, i just asked -- >> you're doing this to watch video clips of taylor swift. you have a little crush. neil: that is so cheap.

wow, what have you, very thank you very much, ladies. >> shake it off. shake it off the. >> he has no idea what you're referencing. >> there is no bad blood here. don't worry about it. neil: just please. >> just mad love here. i can go on forever. neil: incredible. fine. this is greece meanwhile. this is what old money tells you what when they get angry. tailor swift turns on, we don't like this musical score. what do you think of that, ladies? see the connection. more after this.

neil: all right. we've been telling but greece but another deadline is coming up at the end of the month is this iran deal. the white house seems to say the june 30th deadline for the new talks with iran are firm, but, but, short-term term adjustments may be needed to complete the agreement. does that mean we have a firm end date for this, june 30th, is it firm or not? by that definition there appears

to be wiggle room to iron out details that has just been bothering a lot of folks who look at this deal, it might not be worth the paper it is printed on or guaranties we're committing to. i'm sure my colleague trish regan will take that up in the next hour. trish, it sounds like, wait a minute, deadlines are not exactly firm. trish: we'll see, we'll see. neil cavuto, thanks very much. we have a lot going on. lots to get to in the next hour. cyberattack on an overseas airline. a situation we're monitoring. 1400 passengers are grounded. look how vulnerable we're here at home to a airline attack. markets are up 106 on the dow amid optimism greece will live another day in the eurozone. you know what? not everyone is feeling good. a fidelity bond manager says there is systemic risk in the system that could rival 2008. this is sounds like what