the money,". the market is on edge. and volatility returns and janet yellin dips herb toes into the stocks. >> and a smart move for shareholders? what's the buzz in the world of coffee? why prices are going up. and whether the little guys can take on the starbucks of the world. and a way to save for retirement that you don't know about. a roth ira, how does it work and is it write for you? "on the money" starts right now. here's a look at what's making news as we head into a new week. air nervous week for markets

because of global events. the dow had its worst day in more than two months on thursday falling below 17,000 after the malaysian plane tragedy in ukraine and israel's ground invasion of gaza. and the s&p had its worst day in more than three months and the volatility index spiking more than 30%. but the markets recovered on friday. we're in the thick of earnings's season and so far big financial companies are doing well. jp morgan and goldman sachs and morgan stanley all beat analyst expectations. in the tech work, intel, ebay, google and ibm came in better than expected. yahoo! fell short. and a massive media merger may be in the making. rupert murdoch 20th century fox offered $80 billion for time warner including hbo and the movie studio. time warner so no thanks rejecting the bid but it's likely murdoch will be back with another offer. words from microsoft about big job cuts they will eliminate 18,000 positions over the next

year. that's about 14% of its workforce. many of those layoffs coming in part because of its ak acquisition of kill ch maker, nokia. nervous markets. the federal rechair talks stocks and earning season is under way. what does it mean? we have the chief equity strategist. the world looks a little more unpredictable after what happened between israel and the airliner being brought down. what us does it mean for the market? >> caution. the geopolitical risks never go away. you can't anticipate them and when they show up there's always a pause. this mean for economics and for earnings. until now, the assessment has been correct. not much. and so the markets continue higher. my guess is that's what will happen at this episode as well but we don't know so we'll have to watch and wait. >> let's talk about what janet yellin said this week. it surprised a lot of watchers

when she got into this idea that certain areas of the market could have been a little yooefr valued. she talked specifically about biotecs and junk bonds and some areas of technology. did that shock you? >> it did. that she commented about anything inside the stock market. pretty amazing. >> right. we used the get concerned when a fed chief would say something like that but this was very specific. >> yes, it was. >> was this a newbee mistake? >> possibly buried but properly, the press brought it front and center. a lot of area she is picked on have actually already come down in price. had a pretty hard time back in the spring. so i think what she's trying to say is, look, we're watching. all you people who are concerned about a bubble here and there, got our eye on it. my guess is that was a clumsy way of saying it. >> we're watching but what you and i have both been surprised by is the -- >> looking at smog below 2.5%

this week? that's you're-popping. >> in the wake of geopolitical issues in the short run, i think the bond market is saying, i'm from missouri. if the economy gets better and inflation picks up, i'll go down in price and up in yield. until then, me alone. >> i like that. very much the show-me bond at this point? >> yeah. and appropriately so. >> so what about earnings? to this point it looks like things have been relatively good news? >> they have. we're about a quarter of the way into reporting season. and a little too soon to predict a whole 100%. the initial news good. not just on the earnings' side but revenues are good. the one sector of the ten in the market that analysts expected to have down earnings are financials. but with reports this past week by a couple of big banks that were good they my up. corporate earnings look good. >> and the commentary from some of the ceo's tended to center around the idea that things got better the last month of the quarter? >> yes. >> maybe that's good news?

>> i think it is. it's indicating that they have some more confidence. and i think what that means is the economy is getting finally, a bit better, becky. >> we're just a little over halfway through the year. at the end of last year you put out your predictions for this year. what your score card. what did you get right? >> you already mentioned the one we got most wrong, at least so far, and that's the bond call. our guess is by the end of the this year closer to 350 than 250. it's only july and we could still get there. >> would you stand by it? >> i will. i think when we think about 3% real with for the balance of the year in the u.s. with 2% inflation, that's 5% nominal growth. i don't think 250 ten-year treasury matches up. >> this has been a head-scratcher. tough to figure out. part of it has been with what's happening around the globe. when you see these incredibly low yields in places like europe and beyond, that make it look much more attractive here.

where do you think stocks will be at the end of t they are now. i don't think the second half is as robust as the first half. the first half is basically a percent a month, thank you. if we can get half a percent a month on average for the balance of the year that will be a very good year after 30 last year. >> you had warned at some point this year we're likely going to see a 10% pullback. we haven't seen it yet. still think we'll get it. >> >> whether we get it i don't know. the notion was volatility is going to pick up. of course, that's not been right yet either. thanks to all of the lickity fr -- the liquidity from banks everywhere. >> bob, thainch. up next we're "on the money." u.s. companies seek greener pastures overseas. many relocating their businesses to foreign soil because of the tax rates. where's the economic patriotism? or is uncle sam asking pore too much? later,f you drink one of the 500 billion cups of coffee drunk around the globe you'll

want to hear what rising prices mean for your morning joe. as we head to the break, a look at how the stock market ended the week.

it's the yoplait greek taste-off and we are asking the music city which 100-calorie strawberry greek yogurt is the next big thing. i'm a random lady with a table full of yogurt. want some greek yogurt? can i ask you a question? tell us what tastes best. this one is definitely the winner. that one is good. a is great.

yoplait greek 100! that's the stuff right there. you want to see which one yoplait greek beat? chobani yes! yoplait greek wins again. take the taste-off for yourself! it is a beautiful day for yogurt. we should test the economic patriotism. it's not right to take an american firm to benefit from all the things we do in the united states to make it a safe place to do business and then say, i don't want to pay taxes here and shift my corporate address overseas to pay a lower tax rate or no tax tas. >> the treasury secretary condemning the rash of american companies buying corporations to take van of lower tax rates. is this akinl to being unpatriotic? joining us is our policy priority senior fellow jared bernstein and irs commissioner doug schulman. doug, what do you think? is jack lew right?

>> i think everybody is unhappy when they see an american company leave the u.s. and go domicile somebody else. nobody likes that. i think the issue is, i think perceived or real, people don't think the u.s. has a competitive tax structure so corporations are looking out for their bottom line. 23 they can find a merger that makes sense they're willing to move and taxes are a consideration. >> jared, they're calling them the unfate yotic, they are following the law? >> that's right. this is a tax avoidance, not tax evasion. it's legal. and i agree with much of what doug just said but i also think that jack lew has a point. it does strike one as economically unpatriotic to invert in order to lower your tax bill. >> let's talk about what this actually means, doug, in dollar terms. a recent irs study found

something like $20 billion of corporate taxes would be lost over the next decade because of inversions. what does that mean for the bottom line for the u.s.? >> i think it's hard to put a number on this. there's $3 trillion of taxes that are brought in. the corporate taxes bring in about 10% of that. i think it's very hard to predict how this corporate structuring is going to affect things. where that said, i think there's broad agreement that there needs to be corporate tax reform. >> right. corporate tax reform that does what? right now, the u.s. is at 35% but not everybody pays that? >> yeah. the rate on paper, which not everyone mays as you said, is 35%. not everyone pays, 35%, that's the highest tax rate of any country in the oed. there's vary few things where there's consensus in the u.s. right now but the president, bo cong have said they want to lower rate of corporations, and then get rid of some of the deducksnd the loopholes. the issue is, the deductions and

loopholes were put in for specific purposes and specific industries and they're real dollars so having the debate about how to clean it up and get rid of some of those that's where the money is and that's where the issues are. >> can i add to that? a couple of things. >> sure. >> i'm completely on board as doug said, almost everybody on some of those ideas. the problem is, i don't think that they'll go very far to fix the inversion problem. tax reform is not going to happen in the near or medium-term and these inversions as you mentioned are accelerating as you speak. so we can't wait for that train to leave the station. secondly, how low do we think we're going to take the statutory rate? in ireland, it's 12.5%. we're never going to get anywhere near that. so we are need to do something else to discourage inversion. and by the way, calling these firms unpatriotic isn't going to get it either. i think the best way to go would be to change the requirements in terms of a shareholding.

so instead of the current shareholders continuing to own 80% of the combined value of the new company, it should be moved to 50%. that would significantly reduce the number of inversions. >> the ceo has a lot to say about that issue. listen in. >> 50% of the -- are made overseas. our country had no problem opening the borders and saying, we want all the competitiveness we can get for our consumers, and everything else. what our country failed to do was keep pace and make our country globally competitive for corporations. >> doug, what do you think of that? >> look, i think the point she's making is, global corporations are global. the they are doing business all over the world. they're going to pay taxes in multiple jurisdictions. the question that's being debated is -- are their headquarters going to be in the u.s.? how many jobs will they create in the u.s.? will they be called a u.s.

corporation? even when a company inverts they are still pays u.s. tax under the u.s. operation but they're just out of the u.s. tax net so they're not going to be paying on worldwide operations in the u.s. so i think her point is -- this is a global economy and we ought to have a competitive tax system. >> so jared's point we're not going to get down to 12.5% with ireland. what's the proper solution? >> the netherlands has a 25% rate and they've been attracting corporation. the uk has changed their tax laws and they're in the low 20's. the target that the president put up was 28%. chairman camp put it around 1251225%. the idea is for us not to be the highest on the books. >> thanks for coming in. up next, we're "on the money" the most 'valuable commodity in the morning. inside the coffee business and how the gourmet buzz creates opportunities for entrepreneurs. and later, we demist

what are you doing today? >> talking to the computers. photos, work files, you name it. >> in a few hours! >> you get everything backed up.

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the daily grind. >> it's the bloom. >> and consumers are buying it. specialty producers maintain 37% volume share but 50% value share of american coffee cups. so as coffee transitions from the best part of waking up to an affordable luxury, brett smith joins us, president and cofounder of counter culture coffee as a national wholesaler roaster of craft coffee. brett, thanks for being here. >> thanks for having me. >> looking at the numbers more than 60% of americans drink coffee every day more than any other beverage besides water. where does specialty or craft coffee fit into that? >> well, it's really over the last 10 or 15 years it's becoming a bigger part of that. the trends have shown that people are switching from the traditional coffee we know from the '50s and '60s which was generally lower quality to specialty coffee. a greater variety. more and more people are looking for different coffee and trying

to find the selections. >> so starbucks, you would count as one of the craft types? one of the specialty coffeemakers? >> yeah. they certainly are the largest and most widely known. and they'll really push forward this notion which is valid that there's a difference in coffee. and they were the ones, with some other companies that really pushed forward this idea that there's great coffee out there. they're wonderful varieties and great coffee experiences. while starbucks led the way, it's been a great opportunity for companies like ours to come in and continue pushing the envelope. >> so it's hard to think of them as being small specialty. they have about 500 million pounds a year of coffee that they sell. you have about 2 million pounds a year. you're a wholesaler, a coffee roaster and an educator at some of the independent cafe fays. why haven't you done cafes or retail establishments of your

own at this point? >> that's a good question. we made a conscious decision as a company from the beginning to focus on what we could do best. despite the fact that both as a wholesaler and retail coffee shop would sell coffee, they're very different businesses. they have different capital structure and different management structure and we decided to true to focus on one thing and do it really well. and that is, wholesale. we continue pushing ourselves with that and supporting our customers. and we don't compete with our customers. >> i want to take a look at coffee commodity prices. they soared. at one point they were up as much as 90%. they softened in recent weeks but coffee is costing more than 40% than it was a year ago. what does that mean to you and consumers? what does it mean for a company like starbucks? >> well, for a company like counter culture, our prices, they are affected by the commodity's market. when weapon set our prices we do it by working directly with the

producer. a big part of our company is dedicated to supporting our farmer partners and we literally travel around the world and sit down with them and talk to them about their business. understanding what their needs are in terms of cost of production. and we communicate what our needs are and we come up with a price. so based on that, the prices we've been paying for coffee have been substantially higher than the commodity's market for years. and that means that our coffee will be more expensive but ultimately we think it's a great value because of the quality of the cup and the quality of the relationship so certainly, the swings in the commodity's market affect the overall coffee market. i can't say exactly what it might do to starbucks in terms of their cost, but generally, the consumers will see a higher price but the reality is a great opportunity out there for consumers to seek out coffee that even though they're more expensive provide a great value in terms of the variety and the

experience that they can have. >> brett, thanks for joining us today. >> thank you very much. >> okay. up next "on the money" a look at the news at the week ahead. and choosing between roth and traditional ira's. which one is right for you?

for more on our show and on our guests go to our website. by the way, you can follow us on twitter @on the money. here are the stories coming

up that may impact your money this week. microsoft, apple, mcdonald's and coca-cola will report quarterly results. on tuesday, we get the consumer price index, also on tuesday, we'll have existing homosales for june. on thursday, we'll be getting new home sales and comic book lovers will descend on san diego to be comic-con, the big convention for comics and on friday, the amazon will hit shelves. >> when it comes to saving for retirement you have to consider your asset allocation but your asset location. should you set up a from additional roth ira? let's get to the truth about regular and roth ira's. joining us is sharon epperson. >> becky, they've been around since 199. roth ira's have grown if popularity and are held by 16% of u.s. households. research shows saverers contribute for readily to roth

ira's than traditional ira's. a lot of folks don't know the differen ts why i love have you here. what's the difference? >> a lot of people focus on the tax implications. and with a traditional ira, they are tax-deferred growth is what you're looking at and you also look at the fact that contributions can be tax deductible depending on whether or not you're in an employee's plan and what your nick levels are and you can take the withdrawals out. when you take out withdrawals in retirement you're taxed on the money. >> and with a roth ira? >> with that you're looking at tax-free growth. that's what's atrack to a lot of people. the contributions you put into a roth ira can be taken out tax-free. and even your earnings can be withdrawn tax-free after age 59 and a half if you've had the account for five years and meet other wrooirnlts. >> you mentioned contributions and in terms of your salary. what are the limits? >> that's an important ksh rags t -- important consideration. with traditional ira the traditional income are lower and to have a fully deductible ira

your income has to be below $60,000 if you're single and married couple filing jointly it's below $96,000. then it kind of changes in terms of being partially deductible all the way to $116,000 for a married couple and $70,000 for a single person. >> what about roth? >> that's higher. income limits are a little higher and this you have to have between $181 and $191,000 for joint to make your full contribution you need to have nb below $181,000 for married couples and for singles, below $114,000 to make that contribution. >> so if yao fit in the range where you can contribute to any of these, how do you side decide the better deal? >> a couple of things people consider and why they say perhaps this makes the most sense is they believe that they could possibly be in a higher tax bracket when they retire. and the other thing people may not want to do is take out the rooired minimal distribution from a traditional ira.

you have to do it with the traditional one but you don't have to do that with a lott ira. and the other thing is estate planning. a lot of folks want a retirement account they can pass on to their heirs and you can stech of stretch out those tax-free withdrawals from a roth to your heir some that's something people consider. >> sharon, thank you. i learn something every time you're here. that's the show for today. thanks for joining me. next week, when it comes to your wheels, is leasing or buying the way to go? each week keep it here. we're "on the money" have a great one. see you next weekend!

>> she's emotion and style, hello welcome everybody. weekend edition. oscars of the sports world had the big night and taking a top honest was a man who made his simply by being true to himself. michael is the nfl first openly gay player and his acceptance speech didn't leave a dry eye in the house. >> recently a young woman who was considering killing herself rather than accepting sharing with her loved ones that she was gay. when w