now at the business headlines, cnbc's kayla tausche in the cnbc newsroom with much more.evening. >> good evening, larry. a number of beats after the bell today. yum! brands up 73% on strong growth in china and improvements in u.s. businesses. american express beat estimates on higher card use but increased its bad loan. that stock down slightly after hours. qualcomm also beat on earnings and revenue, but shares fell on the company's outlook. gsa employees are coming forward. inspector general brian miller told senators today. miller said he is getting new reports of wrongdoing from workers following the uproar over the gsa spending scandal in las vegas. >>> and dick clark, he showed boomer teens how to dance on his after school program american bandstand, and helped ring in at love new years in times square. he passed away this morning. he was 82. larry, back to you. >> kayla, i watched a lot of american bandstand. i really did. in fact right around the corner from this studio. we will miss him. kayla tausche, thank you very much. >>> next up on "kudlow," the president wa

let's get now to kayla tausche. kayla. >> brian, yeah. we just announced moments ago we were the first to have it that facebook is listing on the nasdaq. a big coup for what is largely an electronic exchange. big coup for bob. big loss for the new york stock exchain. hope to get color from bob pisani in a minute. if you know anything about the company and read mark's letter to potential shareholders in the s 1 this probably doesn't come as a surprise. a lot of companies really look forward to the moment at the new york stock exchange where they're standing on the balcony ringing the opening bell feeling a culmination of the entire ipo process and that's not what founder and ceo mark zuckerberg has been about. this is not a company. it's a social utility. it's no surprise that the company would choose to be among the ranks of some of the more storied tech stories and to save money in the act as far as trading goes as far as choosing the nasdaq goes. this has been an ongoing pitch for several years of course with the facebook ipo in the pip

for those of you who may not know, a photo sharing app, a postca postcard-type and kayla tausche and ell. kayla, i think last week you reported instagram just closed another round of funding from venture capitalists and the blog tech crunch also noting that that funding has turned $50 million into $100 million overnight. is this getting out of hand? >> so we should clarify that it was in early march. it was a month ago that they were close to closing this round of financing that valued it at $500 million. now, a month ago being close to closing around financing, that can take anywhere from a day to a week to a month to an hour. so what's interesting is that tech crunch piece saying that that money got deposited by a wire on thursday night. i think a lot of us expected that had already closed a long time ago. but think about the numbers. instagram what you're really buying, it's not making money but you're buying a nucleus of users. marc zuckerberg before you saw this posted on facebook's blog or instagram's blog, this was posted as a status update by mark zuckerberg and explaining the

news of which we already heard from kayla tausche may also be looking at an ipo. again, the new york fed spokesman confirming that they have changed their decision strategic decision to explore possible sales of some of the assets in the portfolio of maiden lane iii citing market conditions and a successful sale of the assets in maiden lane ii. send it over now for the beginning of "power lunch" with tyler and sue. >> thank you very much. three hours or a little less to go in the trading day. stocks getting beaten down on worries about europe and disappointment with the fed. investors think qe-3 may be d.o.a. that's because the economic data keep getting better. we'll look for the stocks that will be winners when the fed takes the safety net away. >>> ty, major layoffs at yahoo!. the company trying to become smaller, nimbler, more profitable. but is size really their biggest problem? we'll talk about how to fix the stumbling giant. >> eddie lampert says major retailers have to adapt or die. is he taking his own advice at sears? what about the other big box stores?

kayla tausche has been following this unfolding drama for months now and is here with the very latest. kayla. >> sue, just when you thought the phone hacking contagion couldn't spread any farther came this morning's admissions from "sky news" that it said it hacked e-mails. chief rilely saying in a statement we standby these as justified and in the public interest. we do not take such decisions lightly or frequently and require finely balanced judgment based on individual circumstances. now, there were two occasions he said where journalists hacked e-mails of suspected criminals and two other instances separately that compromised national law around airport security and illegal weapons. exercising loopholes that are riley says a legitimate part of responsible journalism. even with that defense, the bbc is reporting on twitter that the sky editor who authorized the hacking, simon cole, is stepping down. and news corp.'s 39% stake in sky parent ha long been the subject of intense scrutiny throughout the last year. an attempt to take over the remaining 6 1% was abandoned when the phone h

in the meantime kayla tausche has additional insight on this.e been working the phones and could be one of coty's biggest gambles so far in the acquisition path. >> in the morning people were talking about a potential rival bid mainly where they were trading to the offer. it's coming down and the market is starting to digest whether this is a real bid. obviously coty as david said would have the ability to increase that offer. maybe not substantially but at least to a point that might get the avon board willing to talk here. but remember the shares that coty's talking about offering right now are coming from the ben kiezer family. there is some doubt when you have a major shareholder selling their shares as part of a deal like this. they want to take some of the value off the table. as far as some of the other rival cosmetics companies go, think about loreal. they would have a hard time coming to an agreement if in fact they were interested in doing it. there were some rumors about three months ago, but these are trophy assets that these familie

kayla tausche joins us with the latest on the daily deals provider. kayla. >> sue, it was a relatively small figure that got restated just about 2% of those deals got refunded. but the big question on everyone's mind is what's stopping this from happening again? and what is next for the upcoming quarter? that disclosure came friday after market close with a company taking a $22.6 million hit to net income which shaved about 4 cents a share off fourth quarter profit. the company has tapped kpmg auditors to reach compliance in its accounting by july 1st. i'm told this by a source familiar with the matter. but there are two problems at work here. groupon first is moving to a higher price point to beef up margins for those deals where there's a higher refund rate and a less willing customer base to carry through on purchases. the other is hypergrowth. that was a problem well-telegraphed by pre-ipo accounting sna foos. what's followed from the analyst community is a swath of downgrades and price cuts, the likes of b of a, ever core benchmark and credit sui

i'm kayla tausche. let's reset the markets for you. we're off the highs of the day. the lows of the day. the dow faring the best today up just about 85 points to sit at 13,049. you can see the volatility index moving sharply down nearly 6% today sitting at the 17-point level. let's take a look at news corp. a lawyer representing phone hacking victims this morning said news corp.'s newspaper unit is facing 46 more civil lawsuits. this comes as chairman rupert murdoch and his son, james, prepare to take a stand next week. i'll tell you what their shares are doing. up by about 2% today. about 1.5% as we look right here. let's also look at u.s. airways. news just coming out today about u.s. airways moving closer to a takeover of american airlines with the approval of three key unions coming today. no formal bid has been made. that could be the next step because parent company, amr, currently in bankruptcy. that bid must be approved by a judge. you have to put it on the table first. amr that is the liquidated amr down about 6% and u.s. air also down a little over 2% on th

kayla tausche for us today. tune into the "closing bell" to see an exclusively with, there he is, carl icahn, the billionaire investor. >>> coming up, we're trading brazilian markets with the most wealthy men. and why one investors say it's time to buy in may and go away. an investment opportunity you didn't see before. fidelity's next generation ipad app lets you see what's trending around the world, as well as what over a million fidelity customers are trading throughout the day. and advanced charting lets you customize your views and set up your own comparisons. our ipad app can help refine your strategy or even find a new one. i'm velia carboni, and i helped create fidelity's next generation ipad app. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades and explore your next investing idea. what happens when classroom teachers get the training... ...and support they need? schools flourish and students blossom. that's why programs like... ...the mickelson exxonmobil tea

the dow and s&p closed higher but not after a roller coaster ride for stocks, kayla tausche has our stat check. kayla? >> a reversal of roles as far as sectors went this week. consumer staples underperformed recently. this week up as much as 2%. led investors back into the defensive sectors. consumer staples just up over 2% and s&p up the same amount. in consumer staples, let's look at walgreens, up nearly 9% for the week. a few headlines that we're responsible. also the gains coming as walgreens paid $7.9 million for sin i investors there. we've been talking about tech. tech set to close the second down week. currently the only large cap s&p sector in the red for the week. and working in second consecutive weekly loss, that is following a 14-week winning streak for tech. largely lead by apple. apple, the best example of this reversal of roles, having the worst week since july 2010. also set to close down for its second straight week, down for 9.5% during that period. perhaps a normal correction going to earnings. everyone is going to be watching that next week. bob, back to you. >> than

kayla tausche is joining me now. kayla?>> neither nyse or nasdaq has confirmed but we have heard that facebook will list on the nasdaq in times square in may. even though facebook was wanting to be a blue chip, it's no doubt that a large cap name would immediately land a fund in the same way that google and apple has and it will be interesting to see exactly how nasdaq did win this. the race is for nasdaq to lose. not only less expensive but home to other legends and for a company it's not surprising and if you're looking at it right know, showing the social names as far as the nyse, we're hoping to get a comment from them soon. what we're waiting to hear is how nasdaq pitched the 8-year-old social networking giant, marketing for the initial trade and going forward is one of the biggest, if not the biggest considerations of a company's listings and the package was very nice. maria, it will be especially nice to see whether they ring the bell remotely from their headquarters in menlo park and whether they come to do it in na

kayla tausche is there with the latest. ty, the inquiry of rupert murdoch was the most highly anticipated appearance of this -- call it interrogation since it began.the committee to the task at hand. challenging a storied mogul not only on a scandal that's taken on a life of its own but also on claims he kept cozily relationships with the revolving door at number 10 downing street. >> frankly, i welcome the opportunity. i've never asked the prime minister for anything. >> today murdoch distanced himself from prime minister david cameron's conservative party but also for allegations that his news corp only sported candidates most likely to win in order to protect his own commercial interests. now, today that laundry list of officials included former prime ministers margaret thatcher, tony blair, gordon brown, scotland and michael bloomberg who's re-election he supported as well as barack obama. and he said his newspapers in the u.s. took an opposing stance to that. but given 60 years of empire building and political hub nubbi

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let's go to kayla tausche for the headlines. kayla. >> julia, we're just getting a press release coming out this moment saying facebook is going to pay $1 billion for cash and shares for instantgram. they just closed a recent round of fund raising in the last month. it's unclear what facebook was trying to pay last summer, but those talks fell apart and they were obviously not successful as we're getting this announcement now. they're paying cash in shares but the acquisition is supposed to close in the next 30 days meaning likely the shares they're getting are pre-ipo shares. that will be interesting to watch to see how that turns out for the recipients at instagram getting those, but a billion dollars in cash and shares to facebook, this is that vintage photo sharing application that a lot of facebook users use on top of their platform already. a very core business for them. i know you've also been covering this company closely. >> absolutely. i think with the ipo we all knew facebook would be looking at some acquisitions. what

kayla tausche. >> that was a big win against the board nominees by roche going into tomorrow's meetingn the offense with various shareholder meetings planned following the agm. people familiar with the matter tell me illumina has asked jpmorgan analyst to host a dinner for long-term shareholders tomorrow night. peterson has thighest target for illumina on the street even though his 70 buck target was initiated back in january. still higher than the average by 14 bucks. thursday a broader lunch to include hedge funds is also on the docket. that's set to take place at jpmorgan hq. investors are taking it as a sign illumina is taking offense. some investors are taking a b

kayla tausche is here with the story. tyler, nasdaq is the home of tech luminaries like apple and dell. but facebook is not just any tech company, it wanted to be a blue chip. it wanted to be on everyone's portfolio. so nasdaq bent some hard and fast rules on how long it takes to get into its nasdaq 100 index. now, previously the rules said that companies had to be publicly traded for at least two years before being selected for the index except in the cases of spin-offs or biotech companies and until friday night when nasdaq said under new methodology a security must have seasoned the word traded on the nasdaq, nyse or nyse amex for at least three full months excludeing the first of the initial listing based on the current month end data. this was the key that unlocked nasdaq's facebook pitch because like the older dow and s&p indices, roster changes don't happen very often. nasdaq said on friday texas instruments will replace first solar on the nasdaq 100 because that index is weighted by market cap. first solar's value

cnbc's only kayla tausche joins us with the details. all right, kayla, good evening. what can you tell us? >> no secret the bears came out of the woods today causing the worst day for stocks since march 6th, and the worst day for the nasdaq all year with the tech sector sinking 1%. about a percent and a and a half, and the dow holding at 13,74 points. telecom the only sector to close the day in the green. frontier communications getting an upgrade this weekend. at&t reaching a four-year agreement with unions in southeast. you can see that has been good for those two names in particular. also, airlines getting a bid today as well. southwest upgraded at barkley's capital. and delta moving on a report by cnbc's kate kelly that delta is looking to buy conocophillips oil refinery in order to lower its jet fuel costs. you can see delta up 1.5% on the day. sinking $102 a barrel for may crude. you can see after hours it's up just about a half of 1%. the entire commodity complex was in the red except for sugar. you can see now we are seeing some green across the board. natural

kayla tausche is live for us in london. kayla? >> reporter: well, ty, the independent inquiry that was launched last summer into media t ethics in the uk has questioned politicians, celebrities. you name it. today james murdoch was in the hot seat. he faced a harsh grilling over what he knew and allowed under his watch at news international. that was based on hundreds of hours of prepared testimony and countless documents that were pored over for that. the early questions today centered on the stark lack of oversight when he took the reins in 2007. why he didn't investigate claims of hacking and big legal settlements that had happened earlier. he said he had no reason to suspect wrong doing and that the editors had held the keys to the paper. now, the commission took the most issue with the way that news corp. and other senior lobbyists in europe dealt with politicians over the hotly contested and long winding takeover, attempted takeover, we should say, of british broadcaster b sky b. >> i don't know the ins and outs of westminst

we're going to check in with cnbc's kayla tausche. joins us live with more on that and the rest of the day's business headlines. hi, kayla. >> hi, barbara, good morning. markets today are sliding lower on lingering concerns over comments from the federal reserve released yesterday. the fed indicating another round of stimulus is not in the cards. that's leading the dow off almost 150 points. the s&p down 15. and the nasdaq having its worst day of the year, down a little bit over 50 points. economic pressure in europe also weighing on the market, an indicator of eurozone corporate health fell in march. that and spain and portugal both trying to sell more debt to investors. only portugal emerged successful, but even so, an eu commissioner today said portugal may need more financial assistance. a lot coming out of europe. also today, president obama is expected to sign a bill banning lawmakers from trading on confidential information. the so-called stock act has already been passed by both the house and the senate, and it prohibits employ

. >> with brian shactman and kayla tausche, i'm tyler mathisen. put on your rally caps, folks. "power lunch" begins right now. >>> i like mine inside out and backwards. inflation tamed. the bulls battling back from the five-day selloff. it's not too far in the rearview mirror. stocks near the highs of the day. here's where we stand. the dow up 162. the s&p good for 1.25 -- everything's basically 1.25% to the upside. pulse of the markets oil ticking higher maybe on qe-3 home hopes. maybe on rumors of a strong china gdp. a real bid in confidence on signs of better global growth. nat gas we're always keeping an eye on it. it is up but still below the $2 level. hewlett packard biggest gainer in the dow, 6.3%. they basically global shipments of pcs rose in the first quarter. that's true. and two research firms say hp is the top pc maker by volume. mckesson won a $4 billion contract from the government. good for 4% to the upside. and tyler's favorite place to shop, tractor supply. it's actually mine. sharply higher after raising guidan guidance. in the words of steve liesman's favori

i'm kayla tausche at the realtime exchange. markets are bouncing back and forth. can't decide which way they want to go. at least for the moment they're in the red. the dow crossing above and below that 13,000 mark. right now we're at 12, 989. all three down by just about.3%. disappointing jobs claims number taking some wind out of those earnings sales. taking a pulse of the markets where we stand right now, the euro was trading higher despite a weak trading day in europe. you see it sitting right now at 1.31. nat gas hit another 10-year low today. now trading at an astonishing 1.91 down 2%. and the 10-year yield holding below 2% as well right now at 1.95. to our midday movers today we have e-bay leading the way after that strong earnings report. paypal is starting to pay off. e-bay up better than 13%. bank of america also down today down to about 8.87. we'll take a deeper dive in our next half hour about bank of america. and that high flier qualcomm coming back to earth after a disappointing earnings report. qualcomm in the red by 5%. now let's get to the trading

right now kayla tausche -- >> the activist journalist. the hedge fund community fond of the phrase past performance not indicative of future returns. even though they're some of the best performing activists out there, they have a lot at stake this proxy season. we want to start with bill ackman's square. perhaps the winningest in the crop facing a fight over railroads at canadian pacific nominating seven directors and shareholder support for ackman is growing ahead of that meeting on may 17th. and this morning on "squawk box" he says he's never gone into a vote with such a lead, to use his words. but boosted dividend to shareholders and ackman's investment has already made 76% on an annualized basis. stay tuned for what's going to happen in just about two weeks time. >> let's bring in jeff kilburg now. did you know jeff played center at notre dame? >> i did not know that. >> meet an irishman. which one of these activist investors would you be following? can you make money by doing it? >> i think the activist space is wonderful for the am

i'm tyler mathisen along with kayla tausche and simon hobbs. welcome, everybody. "power lunch" teeing off, right now. >>> so earnings in europe triggering another storm on stocks. you can see we're attempting to stabilize here. the dow was down 170 points a few seconds ago. we've now come back from that. investors clearly worried that earnings are going to come up short. the other issue, that the spanish government is potentially losing the confidence of its bond investors. let's just have a look then at the nasdaq, down 1.4%. s&p down 1.3%. the dow down 1.25%. taking the pulse of the markets, the euro is very interesting. it is not getting as hard hit as you might have expected given where we are on yields both in germany and the likes of spain and italy. here we are. we're trading currently at 1.3092. if it doesn't dive, when you reconsider the extent to which asian central banks are supporting it. here in the united states yields on u.s. 10-year dipping below 2%. again today for the first time since march 7, who knew we'd go back down. and the vix as you might

. >>> i'm kayla tausche at the realtime exchange. car sales solid. factory numbers a little softer than expected. markets in a wait and see mode ahead of those fed minutes. here's where we stand now. all indices to the downside. nasdaq fairing the best do down .1%. s&p losing six points and dow losing just about 54. midday movers, urban outfitters higher. an upgrade from citi. express scripts put on the conviction buy list from goldman. cvr energy also higher. carl ikahn. that up better than 6% today. take a look at the downside. moison coors lower. valero energy down about 3.5%. netflix downgraded at barclays. that stock down more than 50% in the last year. even though it had a great first quarter. guys, back to you. >> thank you very much, kayla. >>> all right. right now the president is speaking in washington. he's speaking to members of the associated press who is hosting this event and other media members. our john harwood joins us right now. john, the president had some very interesting comments on a variety of subjects yesterday. it's going to

another story that kayla tausche has been on top of. next on the "halftime report" clarion capital's marc utay joins us with his take on today's ell- where he's investing now and whether he prefers stocks or bonds. [ male announcer ] what if you had thermal night-vision goggles, like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. >>> welcome back to the "halftime report." our next guest is marc utay, managing partner for claire one capital. a private equity fund. he also serves on the board of imax corporation and has teamed up with tom barrack in major deals like the bid for the dodgers. you are fair to say a contrarian investor. i read one of your notes

kayla tausche is monitoring things in london for us. in other corporate headlines today, texas instruments is posting better than expected earnings and revenue. perhaps more notably, the which i am chip maker forecasting growth ahead of wall street's estimates. analysts say the news signals potentially the end of a prolonged inventory related decline in demand. earnings down about 60%, but that was better than the street has expected. it was a different after hours story at netflix. the video rental company is projecting slower subscriber growth for its key u.s. video streaming service. shares of netflix got killed, down about 16%. the company added customers, but that is a business that is critical to the company's future takes moves away from mailing dvd and signature red enveloping. i think they're talking about 200,000 subscriber adds after something like 1.7 million before. so a big rush of people to sign up. the question is whether that growth can continue and the company saying no, probably not. >> was part of the issue here the

kayla tausche. >>> you can see markets pulling back from earlier highs this morning.meback from yesterday. for more on markets, our capital markets editor gary kaminsky joins us on the phone. i have a hard time imagining you think this reversal means more than a one day give back. what do you think? >> it's a nice bounce back after i left you yesterday afternoon i went out to speak to a number of people. i think it's important to remember the key bank index was up 25% for the first quarter. best performing sector. so as it relates to earnings in terms of trying to see we pointed out the correlation between the s&p and earnings estimates. there's so much focus on financials. there's so much focus on one cart in the apple but so much focus on financial, earnings that we'll see on friday and into early next week and whether or not the stocks reflect the improving fundamentals or they don't. we're in a bit of a pause here. a focus on earnings at the financial companies. >> did some comments by alcoa about end markets take you by surprise? >> no. alcoa is one of those uniq

>> kayla tausche covering the news corp. story in london. time for a break.cer ] while others are content to imitate, we'll continue to innovate. the lexus rx. why settle for a copy when you can own the original? see your lexus dealer. how did the nba become the hottest league on the planet?l? by building on the cisco intelligent network they're able to serve up live video, and instant replays, creating fans from berlin to beijing. what can we help you build? nice shot kid. the nba around the world built by the only company that could. cisco. >>> the european markets are closing now. >> and as you can see, it's a sea of green. all major stock markets in positive territory. you can see right in the south of the mediterranean, let me show you what happened during the course of the session. because a lot of that has to do with the fact that we've rallied so strongly here on wall street. this is where we are see how they have rallied also france and it's really here as wall street opens that they get another leg up, just compounding a risk on day if you'd like. s

kayla tausche is on the ground, the very wet ground of the courts of justice.ay two, two days. this is a very long time. what isn't going to be talked about? >> reporter: well, i think they're ruling nothing out, ross, and that's why you're seeing rupert on the docket for a potential two days of questioning. of course, it depends whether they should get everything out of him that they'd like. remember, rupert last testified in front of a parliamentary committee last july in which he said it was the most humble day in july. in the meantime, there was testimony in front of the parliament committee and he had his day of reckoning in front of lever ison yesterday. now, this will be having interesting. of course, you want to get on rupert's schedule and you want to make sure when you have him in the hot seat, you have as much exposure as possible. they'll have questions about his relationship with the government, not only during the takeover of bskyb but also how that relationship evolved overtime, whether they strengthed, got cozier, that dinner of rebekah brooks w

kay wh kayla tausche is outside the courts. look, it's sunny. i hear mr. murdoch's reiterated his statement that gordon brown had indeed declared war on him this morning. >> indeed he is. and the questioning is taking a political line yet again on day three of the inquiry where rupert murdoch and james murdoch were the guests highly anticipated to be appearing here. now, one of the first things he said was that jeremy hunt, remember, he was the culture secretary whose aide resigned yesterday amid allegations that he was leaking information to news corporation during the take overof bskyb, jeremy hunt apparently rupert said he maybe not once or twice, but he doesn't remember and that was one of the key issues brought up, not only for questioning of rue period, but also questioning of james. now, remember, rupert murdoch as been an executive here in the uk for over 60 years, has been hobnobbing with the political scene for over 60 years. so a lot of material to cover and we'red told it's only a half day of questioning today. so interesting to see what will c

kayla tausche is there. what's the key take away for came? >> luckily the rain hasn't set in just yet. we are awaiting the arrival of james for what could be six hours of questioning. remember, the inquiry has gone on for five months, but this is the first time the murdochs have been in the hot seat. they're facing mounting regulatory issues. we'll tell you what they're expected to say after the break. >> we have slightly more time with you, so i'm going to use it. what in particular are you going to be looking out for? >> well, i think that the inquiry took a turning point in february when police dep pew it i assistant commissioner sue acres took the stand and said there was a culture of illegal payments, not only the news international media problem, but all across the uk media industry. and that's after testimony in 2003 where rebeckah brooks did admit they did bribe police to get certain stories. i'm interested in hearing whether it is widespread, what the totals were and what implications that could have not only here in the uk, but pote

desktop.com and kayla tausche is joining us. where are we in this narrative.t what these things are doing on the first day and then compare it with what a groupon is doing now relative to the ipo price. are we getting toppy or what? >> yes. it's around 12 and i always said that was a pump and dump and the problem with them is they run out of cash because they collect money from their clients and then they don't pay it out. yelp is another case where it trades around the same price. what happens is there's a scarcity of top line revenue growth and that's one of the reasons that guidewire is up there. a lot of these are small ipos. the average ipo so far this year is only 116 million. when you have small ipos like that, it doesn't take much for them to go up in the aftermarket. >> it's not always tech, though, is it? >> no, it's not. but investors are being choosy. carlisle is not doing as much as people had expected in order to get the deal done. another thing that companies are doing is if they find that investors are not interested in the ipo or perhaps the p

kay kay kayla tausche is joining us. >> reporter: we're outside the royal courts of justice where the big man is taking the stand. just at a mid morning break. this inquiry was set up by prime minister david cameron last summer to look at the overall ministry in the uk and figure out how endemic of not only the phone hacking but a larger practical question. and rupert indicated the following. this is how he kicked off the morning. take a listen. >> frankly i welcomed the opportunity because i wanted to put certain myths to bed. >> reporter: now, those myths concern his relationship with british politicians. since his arrival here in 1968 rngs , he acquired "news of the world" and then he started the sun. it really devlved deeply into te history. that, of course, is of huge interest to brit here's because that was one of the biggest union-breaking episodes in history. now, we also learned this morning that the uk media arm of news corp. only makes about 8% of its revenue. only about 60% of that comes from news international. even so, with such a tiey piece of the company, how much powe

. >> i want to sent it over to kayla tausche for the latest on the news that james murdoch is resigningurdoch will still remain a director. but this is the latest defection pore the younger murdoch. he released a statement this morning saying, i am determined that the interest of bskyb should not be undermined by matters outside the scope of this company. interesting to note, though, at the november 29th shareholder meeting, murdoch was recollectioned to bskyb's board with 81% support. when he was at that time resigning from the times, he was doing so to put more attention to bskyb. other than bskyb, though, his only other board seat at this time is that of news corporation. shares up as they keep buying back shares, but it remains to be seen whether that is a position he can hold. carl. >> plot definitely thickening over there, kayla. thanks so much. >>> the co-owner of the chicago cubs, todd ricketts will join us to talk about the business of baseball and a lot more. be right back. [ male announcer ] if you believe the mayan calendar, on december 21st polar shifts will reverse the ear

kayla tausche is back at h.q.t this. >> reporter: when these activists aim to shake up strategy, they definite ri don't win them all. but we have some of the most successful of these so-called activist investors, talking about the current boardroom wars they're raging. bill ackman lacks optimism. >> we're in the end game. may 17th is a shareholder meeting. votes are coming in as we speak. independent group, we have 94% for management change, an enormous margin. never been involved in a proxy contest with this grade "a" lead, i would say. >> reporter: canadian pacific has already notched 39% in returns just since ackman filed his 13-d. that's 76% on an annualized basis. but the gains pale in comparison to some of his other investments, including one at general growth properties when it emerged from bankruptcy. he was given the title of winningest activist. valueact has returned 82% on the names it's filed for 13-d or active stakes in and more than 300% on those names. valueact pushed for a sara lee break-up and is