new and welcome to prime interest i'm hearing i'm boring here and washington d.c. and here's the headlines that i've been tracking all day. development than what we've coined the bloomberg eight continue to defy even our expectations our favorite shadow regulator promissory freemium so a group will now be assisting bloomberg and revamping its privacy and data standards. promissory with the same firm that was part of the botched independent foreclosure if you there's no word yet on who our promise to worry will be spearheading the bloomberg you have heard bloomberg broker dealer operations are regulated by that the this is the very agency mary shapiro just left when she joined province story last month. and speaking of the as you see it we're now targeting exchanges the broker dealer regulators for alleged violations of their policing duties the market as you may recall to see a meager was and the global front line regulator they conducted a mini audit just before john corazon blew up the firm now the f.c.c.

is targeting the nasdaq exchange because of the botched i.p.o. facebook last year we're expecting to see a record settlement soon but it will likely have to be approved by a total board and finally apple c.e.o. tim cook released details of his new corporate tax reform plan ahead of his trip to congress next tuesday as we covered yesterday apple currently holds over one hundred million dollars in cash and investments on overseas profits they recently conducted several large bond offerings to get around tax laws now whether you agree with apple strategy or not this will be a heavily watched of them and there are trillions of global corporate money at stake here prime interest will be covering this event next week on the hill and we'll bring you all the details on it so let's get to what's in your prime interest today.

some are calling this a classic example of david versus goliath playing out on the national stage monsanto's herbicide resistant roundup ready crops makes up more than ninety percent of the country's genetically engineered seeds according to monsanto the crops allow farmers to kill weaves without destroying their plant sounds like a good idea but there's a catch monsanto's patent on roundup ready bans users from replanting the seeds from past season which farmers have been doing for thousands of years after a seasons past the farmer has to dispose of the old batch and buy a new one and the price of seeds has in career now vernon bowman who is

a seventy five year old for a farmer from indiana and in one thousand nine hundred nine he purchased second generation monsanto seeds from the grain elevator which included roundup ready soybean seeds he argued the terms of his didn't apply to him because he harvested a mix of seeds over this case went all the way to the supreme court on monday they ruled against the poor old farmer mr bowman citing that his loophole created copies of a patented and he did not respect the rights of the holder monsanto now monsanto supreme court case wends comes less than two months after congress passed a measure called the monsanto protection act this measure would allow months and so would other biotech companies to plant and sell g.m.o. is without oversight from a federal agency this piece of legislation was super headed by a u.s. senator roy blunt two has received over ninety five thousand dollars from month santo and campaign contribution. since one thousand nine hundred six according to

the miami herald and according to politico senator blunt and monsanto work together on this bill critics of the legislation say the bill presents dangerous health because it reduces oversight of genetically modified crops that. end up on shelves however yesterday oregon senator jeff merkley announced his plan to repeal the month santo protection act and earlier setback to the fight against months and came in november when a proposition to require requiring all g.m.o. products to be able to california failed to secure enough votes this is what activists across the world to take matters into their own hands on may twenty fifth activists will lead a march against monsanto in thirty six countries in order to raise awareness of the dangers of g.m. and to hold monsanto accountable and even though the company faces mounting opposition and opposition monsanto's profits rose twenty two percent just this quarter joining me now to discuss this movement's economic implications is our t.v.

correspondent megan lopez and patty lovera the assistant director at food and water watch thanks for joining us so let's first jump into the biggest event that's happened this week and that's of course the supreme court case of boman first monsanto can you just explain exactly what happened here and why once and it was going after this poor and farmer ok well not to get into too much of the specifics so without getting into too many of the nitty gritty details the exam extensions what happened is monsanto created this herbicide known as round up the problem is that the herbicide killed both the weeds as well as the crops so men monsanto invented roundup ready and it's actually a new into the effects of roundup now as a result it can withstand that herbicide it can withstand a lot of other things so they have a patent on those that guarantees the company exclusive rights to those seeds into that kind of an invention for the next twenty years so what bowman did is he actually bought these soybean seeds that were. sold to him by by another third

party and he did they were meant to be used to be consumed not to be planted they were sold to him by a grain elevator and he actually planted them spray them with the roundup herbicide and then planted them and took the surviving sees and planting them now he says that this actually falls under the legal rule known as the exhaustion doctrine meaning that someone who actually sells a patented article cannot force that patent beyond the first essentially the generation but that's not that's not the case the scotus actually ruled that that is not the case that they do in fact have this kind of patent on future generations because it would cut into the company's profit now you have the opportunity to interview mark walked walter as he was bowman's attorney attorney and i had a clip from that i just wanted to share that with you know with you guys. it doesn't matter how they see you they could have bought it on the open market like my client did you could have bought it at a farmers market could have bought it from their neighbor or it could have blown on

their property and now every single time roundup ready seed germinates somebody is responsible for infringement and it's going to be the farmer in all those cases so it makes an infringer out of about ninety five percent of the farmers makes them beholden to one single corporation to dictate the terms at which they can use property that they've purchased and that they own and right. now that's a very how is it possible that ninety five percent of farmers can be infringing on lines and those that just shows how widespread the patents are how much they're covering so you know we have a food system in the u.s. that's really controlled by really not very many crops like corn and soybeans and cotton and then for those seeds farmers on a very many choices and odds are if they're growing conventional crops at this point especially for soybeans and corn odds are that they're growing genetically engineered crops and odds are that that d.n.a. . has a patent by month santa. the center for food safety released

a report and found that the three biggest companies control. your half of the global seed market and that the average cost of planning an acre of soybean has increased three hundred twenty five percent just since one thousand nine hundred five besides most santa what are the other companies that are major players in this game so dupont so the interesting thing is that these were once chemical companies and now they're in the seed business because they're packaging the seeds and the chemicals they make together so monsanto was a chemical company that became a seed company dupont became a seed company when it bought pioneer seeds bear dow i mean these are chemical company names that we know but now they're also selling the seeds that farmers grow and are we starting to see collusion in this market when you consider that. yes. lots of farmers do lots of folks think about antitrust do and it's really not a question of starting it's been happening for a while so you know at this point it depends how you chop up the numbers but you

know itself is flat out controls you know sixty percent of some crops like corn and terms of selling the seeds and if you look at the genetics they actually control like ninety percent of soybean genetics because they license the d.n.a. that they patented to other companies like dupont so they're really beef shrunk in terms of diversity and choices and they really do have a lock on these this huge input market the most critical input the seed and the rising prices are prices and see because it is a do to coalition or is it due to increased demand or a shortage of supply so it depends who you ask for there's a couple pieces involved so in addition to buying the seeds farmers are now every time they open a bag they buy a bag of c they're also paying licensing fees so they're paying a technology fee for that patented d.n.a. and it's in there so that's a big chunk of the escalation in price and also i mean you see companies there's so few of them and they control so much of the market they can really look at what they anticipate the price for. the crops will be in the fall and they'll jack up

their seed prices to match any increase that might happen with the increase of the farmers going to get for that corn so those two numbers track really closely together and they can do that kind of manipulation when you have a big chunk of the market in your control. while also wanting to take a second to talk about what we've done with them on santo protection act it was signed into law in march and there's a provision that allows monsanto to sell genetically engineered seeds even if the court has blocked them from doing so and now we have a clip from jeffrey smith who is the author of seeds of deception here's what he had to say about this. measure tells you that they are mandatory that they are required to go ahead. and wave their fingers sort of. at the courts so we actually dismembers the normal balances of power and balances between the courts and the executive branch now and what was the food and water

watch as a response to this so food and water watch lots of groups really any group that's looking at farmers' rights or sustainable agriculture and even groups that don't do food like groups like the american civil liberties union were concerned about that measure because it really interferes with the role of the courts and how our government works are supposed to be these checks and balances and this really throws that out the window and so we opposed it lots of groups opposed it and the way that it became law was almost probably more offensive than what it actually does it really got done in a secret process not not very public not very transparent and it just shows that you know this this industry can't pass things on its own in the light of day they have to sneak things into other bills and from your work that you've done on this. do you have any additional concerns with them wanting their protection and i know a lot of the people that i've talked to have a lot of concerns about the month protection act but just to back up here it only actually goes for six months so it ends on september thirtieth now the people that i've actually interviewed say that even though it's only sixty. it is still

a huge problem because it gives them six months of essentially unregulated seed growing and marketing opportunities so a lot of the people yet expressed a lot of concerns about how this can sneak into a bill where we now only now are having senators speak out against it and talk about repealing it and then speak to the larger things that might sneak into future bills. so we're going to take a break just for a moment i will continue talking with patty and megan after the break and after the break where i would take three trips through the revolving door with monsanto executive an f.d.a. official michael taylor and then finally private just producer bob inglis and i will whip out our fed magic eight ball to see what the greatest monetary experiment in history will bring us.

she agreed lumbered sure to mccurry was to build the its most sophisticated robot which on fortunately doesn't give a darn about anything to submission to teach the creation why it should care about humans. this is why you should care only on the dog. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize that everything you thought you knew you don't know i'm sorry was a big. and

we're back with patty lovera of the assistant director of food and water watch an r t correspondent megan lopez only last we're talking about the month and protection act now months and so are the owns fifty percent of the world's the market do you think that the passage of this bill is going to allow months and to expand even

greater i mean that's why they wanted it passed and it was doing some of the dirty work for the rest of the biotechnology industry so there are lots of crops have been approved the product that the regulatory process is already too weak but they don't like even any delay and a few times people have managed to say hey u.s.d.a. did it wrong you didn't follow all the rules the courts have agreed and there's been a delay and that's unacceptable to them so they went to congress to try to make sure there would be no delays when they want to bring this stuff to market and you have any numbers on this how big of a market is. so at this point jim ozer genetically engineered crops are really dominating corn and soybean so it's eighty percent of corn ninety percent of soybeans it's most cotton it's most canola so it's like hidden food that people don't even realize that sugar beets alfalfa so it's really becoming kind of like the building blocks of the food supply and then there's others in the pipeline that we don't really think about before like sweet corn apples even genetically engineered salmon they're not all monsanto but they're all you know of that industry and monsanto is really led the way in breaking down the regulatory

structure for it and going back to one santos steve why can't the farmers just choose not to buy it sander see you at this point there really it's really hard to find anything else we've talked to farmers who say i have a choice between dupont seeds and months and seeds so if there's a very small section of the market it's organic you know single digits there's a even smaller section of folks that are going non g.m.o. . oh it's very very hard for them to find the seeds and it's very very hard at this point for them to protect themselves from contamination from what their neighbors are growing so they may do their best to have it be still test positive because pollen or accidental contamination came from their neighbors it's very hard to be an island you know when you're surrounded by this technology and it seems like a lot of people are speaking out about this and that's why we're going to have the months and the march on months and so coming up can you explain you know what exactly people are protesting with this march they're protesting a lot of things so in some part they're protesting the absolute use of genetically

engineered seeds crops is going to be happening in thirty six countries two hundred fifty cities around the world places like washington d.c. and los angeles everybody is planning these huge protests feel a part that they're protesting and that a small group of protesting is labeling them because at this point very few states within the u.s. actually no state within the u.s. california proposition thirty seven that actually denied the labeling of g.m. foods so they're protesting labeling as well but a lot of the people want to go organic they don't want to use these seeds whatsoever but just to go back to your point on just how big these corporations are the top ten seed companies actually account for fourteen point seven eight million dollars when it comes to the global seed markets sixty seven percent of the global seed market and the top three that you are speaking to actually account for forty seven percent of that global seed market so it's a huge amount of people that are being affected by this and a huge amount of money. this was. vera from the food and water watch and meghan

lopez r t correspondent thank you girl. michael taylor started his career as a lowly staff of turner with a staff attorney with the food and drug administration but don't feel bad for him because six years later he traded in public service for k. street where he became a partner at king and spaulding and head of the firm's food and drug law practice and guess who one of his clients was that's right monsanto i would say our first trip to the revolving door we were just beginning to hold on and from the lobbying firm he went back to the f.d.a.

and became the deputy commissioner for policy it was here where he did all the milk drinkers a favor by signing a rule that sells milk produced from cows who've been treated with b.t.h. does not have to be labeled now b. g.h. is a growth hormone that biotech firms they synthesised can increase milk production in a cow up to sixteen percent but it can have all sorts of negative side effects on the animal including infertility and lameness but don't worry i'm sure it's fine because the f.d.a. approved it and guess who got the first patent on it once and so that was his second stint at the f.d.a. he moved to the us department of agriculture and became the administrators of food and safety inspection service and that was his second swing through the revolving door but we're not done because after that he went to work directly with months santa in one nine hundred ninety six and he became the vice president for public policy but he didn't go completely under the radar in one thousand nine hundred

nine a lawsuit was brought up after a jail report was published that revealed conflicts within the f.d.a. during taylor's tenure there and he also had to recuse himself from matters dealing with santo i guess after all this you feel like you need to repair his reputation and he went to work for a nonprofit resources for the future. for trip the reason for the revolving door he went back to the f.d.a. and became the deputy commissioner of food and is now the senior advisor for the f.d.a. commissioner a presidential appointed position michael taylor is one of the best examples we have of the revolving door in washington where the line between service and subservient is blurred monsanto has this boy on a short leash and tight collar. and

it's time for our dual bob thank goodness it's fed day or is it friday or is it both the choice but for us respect dinner ready well with all the talk of the q.e. tapering that's the gradual slowing a federal reserve money printing or bond buying we took the opportunity yesterday we profiled the dallas fed president richard fisher he's one of the five major fed officials who spoke yesterday and there were some market moving events that happened even though he was pretty complimentary of our beloved chairman bernanke. and his unconventional monetary policy we decided that he was in fact a hawk meaning that he tends to be more cautious about money printing exactly and again this is on a relative basis because we are talking about fed officials here so some of them

have to be hawks and some of them most of them are actually dubs but turning it back to you right well we have a few we're names to get to today and we're going to start with eric rosengren he is the president of the boston fed exactly eric rosengren is currently a voting member of the federal open market committee or a forum see the regional food bank presidents wrote. as voting members so there are five voting and five non-voting alternatives in any given year and new york by the way is a permanent voting member because they're the ones who are actually doing all the fed's buying and selling of bonds anyways back to eric rosengren he's been a career boston fed up for a beginning in one thousand nine hundred five and to his voting record we were unable to find a single instance of him voting against a monetary easing not once. over two thousand and seven rosengren made a financial presentation to the f o m c this was the dow and the s. and p. five hundred actually set their high before the market collapsed in two thousand

and eight he said in fact our forecast for residential investment has become sufficiently bleak and that there may actually be some upside rest to it so where's the attendees. according to the reports that we got this wasn't long after bernanke he himself was still talking up the housing market and saying there was there's never been a national slowdown at least nationwide of the housing market he would be proven wrong but i will say if you scan the transcripts for the phrase laughter you'll find some pretty uncomfortable stuff rosengren did make a speech yesterday as we noted and this was what he had to say quote of course some observers and indeed policymakers have criticized the degree of monetary commendation of the united states as excessive however i see it differently the outcomes could lead one to argue that policy has not been sufficiently accommodative. what do you think i'm going to have to say i mean this is a slam dunk here you i agree i would say ok control room. use

definitely very obvious. all right moving on now we have the president of the san francisco fed john williams you know not the guy who composed the music to star wars in indiana jones this is another charge that only you know we can get john williams to come on sometimes. well john williams the for. official now he was one of the later speakers he recently moved the markets after some confusing statements which will visit us in the second period now a little background first williams joined the fed in one thousand nine hundred four and his work for both the board of governors and the san francisco fed he was a voting member of the f o m c in two thousand and twelve and was consistently on board with bernanke no dissent in other words. well in his speech yesterday he first said my forecast is that unemployment will be just below seven and a half percent at the end of this year and a shade below seven burst the end of two thousand and fourteen i don't see it

falling by six and a half percent and a half percent and tell twenty fifteen yeah let's let's back up and see what this actually means here. the fed has given its guidelines of what it's going to actually stop printing money or at least taper and that has to do with the six and a half percent unemployment level it's around it's a little bit higher than that right now by about a percentage point and they're also going to look at price inflation and price inflation is running under their metric so basically he's saying that the fed is probably going to ease into two thousand and fifteen but then he says that if all goes as hoped we could end the purchase program sometimes later this year so what is he saying this seems to be and this was a market moving event i mean the market tanked on this so he wants to have it both ways maybe i don't say anything you just there out a bunch a number is put it in fed speak really confusing so no one really understands what's going on in her like the wizard of oz behind the guy behind the curtain in the wizard of oz but we're going to pull the curtain back and we're going to say

i'm going to say what do you say also a hawk just because you that there are conservative numbers and the control room is . confused perfect. so i'm confused. it's like we've got to end this we will see everybody monday thank you we're on our way out. anabel love hate day here at prime interest we looked at bloomberg coddling up the problem tory financial group in the shadows of the broker dealer regulation but that as you see isn't showing any love for nasdaq which will have to pay the piper for messing with the baby and nevers apple showered its shareholders with adoration

or dividends but it would be organic apples that would get months and those genetically modified knickers all bunched up and i'm still dizzy from michael taylor three trips through the evolving door is on par with mary jo white finally we look at the fed officials who have a real problem with the evening they love the vie their treasury bonds but we love big coins which is why we're off to san jose so gotta go we'll see you back on monday with a full report be sure to follow us on facebook at facebook dot com slash prime interest from all of us at prime interest i'm harry i'm boring have a great weekend.

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