the group has rejected the agreement claiming it still would allow mastercard and visa to control the market. >> the desired outcome now would be for this agreement to get set aside by the class representatives, and for the case to move forward toward a trial. >> reporter: it could be months before stores may charge more to accept your credit card but investors paid more for the stocks of both visa and mastercard. both rallied as the long- standing lawsuit moves closer to a final settlement. sylvia hall, "n.b.r.," washington. >> tom: this week on n.b.r., we are looking at immigration and the economy. the agriculture industry relies on immigrant workers to bring in the crop and keep prices down. happy apples grows and packages apples in missouri. more than two dozen workers were arrested there six years ago in a high profile immigration raid. a new documentary from the nine- network in st. louis called "homeland-- immigration in america" examines the difficulty happy apples has had in bringing immigrant workers to the u.s. legally. ♪ >> whether it's fast food, or fresh fruit, americans

. >>> y el gobierno federal accedio para que usen una base de datos oficial , visa y mastercard , llego acuerdo millonario noticias univisión 14 , comienza ya . >>> (♪ ♪) . >>> (♪ ♪) . >>> buenas noches , bienvenidos a noticias univisión 14 fin de semana , gracias por su sintonia , y la ciudad de okland , enfrenta una ola de violencia , algunos residentes , no sólo lloran por sus familiares , si no que también por la ciudad . >>> esperan que la policía tenga más vigilancia , al salír cada mañana , sólo queda encomendarse a dios . >>> la familia , hoy recuerda en una misa , un asesinato de su hija , el caso rodas fue uno de los 110 homicidio en la ciudad . >>> quiero a okland , por que me abrió las puertas aquí . >>> la ciudad parece estar lejos de recuperarse , en los últimos 7 días , 7y asesinatos , que tiene buscando a los policías una estrategia , uno està todo traumado prácticamente , por lo que la ciudad es muy bonuita , muy acogedora , desean acábar con la violencia , pero no saben como . >>> la policía presentara un plan al concilio de la ciudad y los asígnara a una vigilancia má

>> the argument from visa and mastercard, rick, is the following. they believe they can charge these fees to merchants because people spend more when they use plastic whether it be credit or debit card. we can look at the numbers. i believe it is true, but the fees they charge, the visas and the master cards, it seems as if as i look through the settlement it isy gree jus in nature. >> this is a lot of money, kyle. companies don't hand over billions and billions of dollars willingly, and yet this offer is on the table without a judge's order you wonder if that number is what it ends up being. what else are they skimming off the top? are they willing to put that number through without anybody ordering it to do that? >> rick, you make an important point. i think the issue here is transparency. i think the consumer, the merchant want to see more transparency about exactly the fees they are being charged for using their mastercard or their visa. and so i think the discussion and the narrative is a healthy discussion to provide more transparency on the i

. >> let's move on to shares of visa and mastercard trading lower today. analysts said the new ratings are based on weakening consumer spending. the price is very high right now. john williams is the analyst behind the call. great to have you with us. >> appreciate it. >> in terms of visa and mastercard, was the jobs report sort of the last straw at this point? >> not explicitly. it was a series of data points that have indicated that global growth is definitely slowing. >> let me ask you something. there is consumer growth slowing down. the penetration of electronic payments and visa and mastercard specifically is what we are talking about here. as you see the proliferation of things like square or pay anywhere, do you see that as able to make up some of the growth? >> sure. just to be clear. a lot of our call is a function of what is going on macro-wise. our point right now is that everybody seems to love the stocks, everybody owns the stocks and really what is left to buy. >> probably spot on. let me ask you this. years ago, i think 65, 70% of all trans

the only winners are visa, mastercard and their banks.hey have gotten a hall pass if this deal goes through. it's not a done deal. it's a proposal now. they have a hall pass to continue to raise their swipe fees without restraint and not have anybody be able to enforce the law against them. they have to be feeling good now. >> the swipe fee reduction is only for eight months. what could happen after that. it could go back up? >> i tell you, with the credit card companies, you always have to read the fine print. what you read this is remarkable. they are not even going to reduce the swipe fees for the eight months. what they are going to do is take the dollar value of that and roll it into the settlement. because there's nothing to change the structure of how they do things today, by the time the merchants actually get any of that money, swipe fees will have gone up by more than the amount of that money. merchants are going pay for this themselves. >>> the folks at home are wondering, what does this mean for me? what will it mean for those

right now that's what retailers pay visa and mastercard for the transactions. sound like much but it adds up. it winds up being among the biggest costs of running their business. for consumers, we're until early stages. the government could step in and help consumers. we saw that happen with debit cards. the dodd-frank law cut swipe fees in half. help could still be on the way to cut that 2 to 3% down a bit so consumers don't have to eat too much of the costs. >> how are the markets? >> looks like modestly lower. the dow down 30 points. we're seeing pressure on the markets. retail sells felln june. usually you'd see consumers go ahead and use that disposable income and spend money. it looks like they are paying down debt and trying to save their money. not something that helps move the economy forward. right now we're seeing the markets in the red. >> no, but it helps the people. >> right. >>> not that we need to tell you this, but it's hot out there. the first six months of this year have been the hottest on record. this severe heat wave has had the devastatin

two financial focused stocks to watch next week will be visa and mastercard. after the closing bell the two payment processing firms agreed to settling a lawsuit with retailers over credit and debit card fees. the agreement calls for the two companies to pay retailers $6.6 billion. and in what could have wide- ranging implications for consumers, it also allows stores to charge higher prices for customers using credit cards. both mastercard and visa shares were stronger today, up more than 1% each during the regular session. they each added about 2% in after hours trading. printer and imaging company lexmark is the latest to cut its second quarter outlook. shares fell hard today after last night's warning, sinking 16.3%. volume jumped almost ten fold with the stock sitting at a two and a half year low. weakness in europe get some of the blame for the warning. the concerns hit hewlett-packard shares, falling 1.9%. it was t bigge percentage loser among stocks making up the dow industrial average. wholesale inflation was unexpectedly rose for the first time in fou

mastercard doesn't cover accidents if they happen on a dirt or a gravel road.ub says that visa and mastercard will only cover accidents on roads that are regularly maintained by the government. >>> it is 5:38. we want to get back to our breaking news out of aurora, colorado. 14 people are dead, a total of 50 injured during a mass shooting at the century 16 movie theaters in aurora town center in aurora, colorado. this happened during a midnight showing during a batman movie, the latest batman movie that just came out. these are live pictures from our sister station kusa. we'll update you on the story as soon as we get more information this morning. >>> still ahead, the owner after popular new york restaurant whose name is now standard when it comes to senior soul food is -- to southern soul food is now being remembered. >>> we're back in two minutes with your weather first. keep it here. ?gw?qyjw grz good morning. welcome back. mostly cloudy skies. some moisture trying to move on through. we'll get peeks of sunshine. calling it partly summer. late day shower

visa and mastercard agreed to a man marcellinus that could wind up costing consumers. most major banks agreed to pay $6 billion to retailers. the banks along with the resents mastercard saw conspired to fix these that stores pailin these plastic the settlement also allows stores to charge customers more if they pay with credit card. however california is one of 10 states that does not allow those type of surcharges. apple flip flops and the entire middle rating system the cupertino company rejoin the program called the pizzas which reads the environmental impact electronics the company faced backlash from consumers government agencies and schools when it drops out the maker of goes barefoot running shoes is being sued vibram is accused of deceptive advertising the class-action lawsuit says they claim issues which look like bare feet improve posture and strengthen muscles in feet and lower legs and also says those claims have never been proven. one person talk to says issues held him run longer and faster at the foot surgery. i think they may not be good for everybody i

in addition to a cash payout visa and mastercard will reduce those fees.rine: under a new law, using boys operated technology, drivers will be allowed to text and e-mail. the new laws take effect january 1st. >> temperatures are mild. slightly cooler for saturday. details coming up. as things the >> ice-cream on demand. the san francisco bay staff that is bidding estrin trucks at your fingertips. happy birthday! thank you, nana send money to anyone's checking account with chase quickpay. all you need is an email address or mobile number. you're welcome. take a step forward and chase what matters. you're on timeout leo! some things won't last 25 years. ah! woof. some things will. save up to 20% on an ikea kitchen. >> more police will be added in jack london square. that is where a shooting injured five people last weekend. extra patrols also be in east oakland did the scene of a murder of a 15 year-old boy. more firefighters are being called to the robbers wildfire in placer county. three of the people have been evacuated, this fire threatening 150 homes an

[laughs]. >> jimmy: we were talking to billy about his mastercard commercials.es, i do. i did it for a year. we would like fred to come in and audition for the second year. i went and auditioned. they finally said, we just decided to go with you another year. that's great. >> jimmy: that's good. >> it wasn't like we were so impressed. it was too much bother. let's just go with him. [laughs]. >> jimmy: you have one of those disney or nickelodeon shows. what show is that in wizards? >> i have a whole new audience. little kids -- last year they had a pan mine show. it was all these kids with cinderella. you're on wizards of waiverly place. that's the only thing they know i've done. >> jimmy: of all the things you've done, what is like -- what's the weirdest one that people remember you from? >> i think i did a movie called how high. [ cheers and applause ]. >> it was -- the woo tang clan. you guys must know the woo tang clan. redman and method man. >> my friend who used to write from saturday night live, you have to be careful; those guys are going to beat you up.

visa and mastercard will drop their ban on merchants charging higher prices to those who pay with plasticeporter: it's become second nature for americans. sweeping the credit card but that purchase will cost you more. >> i already want to cut them up. that's another reason to put the nail in the coffin. >> reporter: for years they've been charging retailers a processing fee for each swipe of the credit card. retailers fought back. now a word of a settlement would allow stores to recoup that fee by passing cost to the shopper. stores could charge customers an additional 1.5% to 3% for using a card at checkout. >> arguably, customers paying this. the fact retailers could charge their customers additional on top of that is outrageous. any new fee was not apply to deb intercards, how will shoppers know if they're charged extra? retailers would have to tell customers about the extra fee but the national retail federation says consumers shouldn't panic and most stores will find waste to avoid passing on the charge. >> most merchants compete by lowering prices being cheaper than the next guy. yo

and frankly this is becoming like mastercard and visa.'t tell one from the other. >> and that's a very interesting analogy. peter morici, thank you so much. have a good weekend. >> take care. >>> coming up, in the era of outsourcing, is it possible to preserve the american middle class? we'll meet the man who has the solution. and it starts with paying you more. a party? [ music plays, record skips ] hi, i'm new ensure clear. clear, huh? my nutritional standards are high. i'm not juice or fancy water, i'm different. i've got nine grams of protein. twist my lid. that's three times more than me! twenty-one vitamins and minerals and zero fat! hmmm. you'll bring a lot to the party. [ all ] yay! [ female announcer ] new ensure clear. nine grams protein. zero fat. twenty-one vitamins and minerals. in blueberry/pomegranate and peach. refreshing nutrition in charge! >>> nearly half of all u.s. workers, 60 million americans, work in service jobs. everything from janitors to home health care aides to baristas. the bay remains low. according to anal

it is being called a victory for small businesses across the country, visa, mastercard and major banks will pay retailers close to $7 billion to settle a long running lawsuit alleged issuers conspired to fix the fees for the amount to accept plastic. >> how will this affect consumers. >> elaine quijano joins us, good evening. >> good evening to you, nancy. >> every time a consumer uses a credit card the store is charged a swipe fee, they argued the fees were too high. >> you may not see it listed on your receipt, but you do pay for swipe fees, the amount credit card companies and banks charge stores. those swipe fees have skyrocketed according to the national retail federation. in 2001, credit and debit card fees totalled $16 billion, by 2008, it was 48 billion. which equals $427 per household. >> every time we buy anything, that swipe pee is built into the cost of whatever the product or service is they were buying. >> retailers sued visa, mastercard and some banks, accusing them of fixing those fees and driving up costs. >> the goal of the settlement is to find some means of reducing

he was 36. >>> viva and mastercard agreed to a settlement with retailers.t card companies were fixing the price of swipe fees. now the fees will be reduced temporarily. this could mean more money out of your pocket. if upheld by a court, merchants will be able to tack on a surcharge. next hour, we talk to someone in washington to break down what it means for you. >>> a multibillion dollar trading blunder damages the reputation of one of wall streets most respected minds. the loss was bigger than anyone thought. our business correspondent christine romans has more on the jpmorgan chase fall out. >> it eeps ballooned to a whopping $5.8 billion loss, greater than the $2 billion estimated. with this huge loss, the bank still earned $5 billion in the second quarter. ceo jamie diamond spent two hours answering questions, ad t admitting the mistake saying his bank is stronger for it. >> we learned a lot. it's shaken our company to the core. what happened here is the team went back to make sure we are running a great company. we can never say that we won't make mis

>> visa and mastercard control the retailers and i love both of them for investment.achines, they are not credit companies there swiping companies. you run your credit through thisroad--this road. retailers said we want to be able to charge the customer if they use a credit card and then visa said no you cannot do that. we do not know this means, but we know that they may charge more if we start using credit and debit. they will be interesting to see what happens with this. >> mark: visa was like the biggest ipo a side facebook. >> yes, they're like the consortium. you think of them as kind of a monopoly. i think they have a nice feature. >> mark: what we watched on wall street? >> china says they need some more stimulus, ge has a price target cut. and the new york times article came out that was bashing syria. --it was bashing serious, that was the control of the iphone. google has a better voice driven control with no one knows what it is or how to use it. >> mark: i love apple products, a s buteri stinks . >> darya: my phone operates awful, but i still love sir i.

with visa and mastercard too much of an overhang and i see them picking up share from american expressm going to revisit them. because of the slowing global economy i'm not there yet. >> making a contrarian call on panera, shares up 71%. analysts sees risk to the downside. is the momentum over for panera. senior research analyst joins us on the fast line with her call. nicole, i'm assuming you think the momentum is, in fact, over. >> we do. the company is facing a number of risks. we're standing behind the theme, thesis human capital trumps financial capital. >> in what way? they are obviously going through a bit of a management reshuffling. that's specifically what you're worried about? >> a couple of things on the management side a change in regime. the co-founder ceo is back and he's great. with that came other changes. we just want to see who takes the role. some of it has been filled. it's a different team. when you think about the success, as you outlined, of this company over the last year or two, a cohesive theme. this is different. with that change comes execution risk. >> goi

certainly in boulder encourage other people in other countries to charlie the way in which visa or mastercard have sought to stifle donations to release in effect to cut them off and as you say i think wiki leaks is ported to lost crops up to twenty million pounds in donations as a result of the actions by these companies i hope it will encourage others to take a similar legal action and to challenge these or mastercard in their particular countries because this is a very very important principle of freedom of expression and the right of people to donate to an organization which is not itself until until these leaks is not itself the subject of any kind of criminal investigations or allegations even today. and wiki leaks have not been charged with any offense so to preemptively cut off the finances of a company that has not been found guilty of any crime i think is a very very bad omen it's not what we expect in a free society and it's very threatening a menacing to freedom all going to his ations. all n.g.o.s depend upon public donations and the willingness of banks and credit card companies

of environment. >> thanks so much. >> thank you. >> josh brown, this comes a day after visa and mastercardgraded by ubs. i am sure you're well aware of that and then you have this with amex. >> we like vooes a mastercard better. we like the transactions model and the debit card strength, particularly with visa given the euro subsidiary is its own thing and with amex this is a 14 multiple on 5% top line growth. i don't get it. i don't see them doing anything really exciting in terms of upping the dividend or a bigger buyback. it is okay. i don't love it. >> coming up, tomorrow's fed minutes today. we'll show you how next. and all day cnbc is revealing the exclusive list of the top states for business. here are the states with the best stock performances over the past year. past year. >>> decoding the numbers. are we in a recession? is housing really improving? we'll have new numbers and new analysis. we'll also introduce you to what may not hottest name in silicon valley. it is not a tech start up. it is an executive everyone seems to want, and does europe need a ping? what's behind the nov

doug, you have said it is not the retailers or the consumers, but actually visa, mastercard and their banks that win out in this one. why is that? >> unfortunately, this agreement -- and i want to emphasize that it's not a done deal yet. this would allow visa and mastercard to keep fixing the fees, the banks not to compete and the fees to keep going up. we pay them now to the tune of $50 billion a year. and we just don't know it. unfortunately, that's going to continue if this gets pushed through. >> $50 billion a year. that is a number we don't hear very often. but the credit card companies agree to reduce the swipe fees for retailers for eight months. what else isncluded as part of this settlement? >> well, you have to read the fine print when you deal with credit card companies. and that's true here too. when you read the fine print, it's eye-opening. they're not going to reduce the fees even for the eight months. what they're going to do is give merchants the equivalent of that amount of cash and keep raising the fees. the cruel joke is by the time any merchant gets some of this m

they are losing market share to mastercard. are you concerned about other forms of paypal or essentially mobile payment that may be taking some of the stream away? >> i think it's really premature to start to think about that. the simple answer is i'm not worried about that. we expect visa to be a big part of it. so mobile can still be a net positive for visa. >> so operating margins up i believe 58% is there still room there or are they hitting up against the ceiling? >> we don't think they are hitting a ceiling. this is still a model with significant operating leverage. as long as they are growing the line, we don't think expenses need to grow as fast. certainly the big jump, we will not see the leaps any more. as we look ahead, we see no structural reason why margins shouldn't continue to expand. >> great smith, in terms of visa, what do we do? we had ubs cutting visa and mastercard to a sell. he said a consumer spending slow down is inevitable. >> there is a different story going on. a secular shift and visa is able to cook

forced to go cash only this week saying to customers is due to increased federal pressure these and mastercard are refusing to accept your credit card charges. >>> no other business am aware of is a force to be cash only against their will >>> california's attorney general announced a medical marijuana crackdown. >>> it is unclear that there are federal fingerprints on the cut off the set did not return calls but americans for safe access believe it is the work of the government. >>> it is our view the government is putting pressure on that >>> son dispensaries are installing atm machines others using the card swapping squares with iphones. advocates say the does not address the real problem dispensaries flush with cash could be targets for thieves and soaker their customers. >>> by forcing these dispensaries had it creates a danger that is a necessary >>> customers say of the goals to put dispensaries out of business it will not work. >>> the ability for people to use their credit cards were not effective they can stay open >>> kristyn a year cbs 5 shares of the death of actress natalie wood

visa, mastercard, and some of the country's biggest banks have agreed to a massive $7.25 billion settlement with retailers. the lawsuit centers around credit card swipe fees. merchants a little credit card companies were fixing the price on those fees. that settlement also gives retailers the green light to charge more if you use plastic. i spoke with doug cantor, a lawyer with the national association of convenience stores. here is what he says about the potential impact to your bottom line. >> it means the swipe fees that all of us pay now, without even knowing it, we're going to keep paying without even knowing it. and the big banks are going to make plenty of money and all of us are going to be left wondering why we have less spending power than we thought we should. >> speaking of big banks, jpmorgan chase is now the focus of a federal investigation. after big banks risky trades lost aillion dollars, that's more than initially reported. investigators want to know if traders hid the size of the losses after an internal probe found reason for suspicion. >>> a ceo in the middle of a $200

committed to go cash only this week on its face-to-face due to increasing federal pleasure these and mastercard are refusing to accept credit-card charges. for attorney general announced the medical marijuana and crack down. this is not sent eight idle threat to the set did not recall calls but americans for is it access to leave without a doubt is the work of the government. it is putting pressure on whether its direct and indirect there are ways of on the cash only conundrums some say it's installing an atm machines why but advocates say that doesn't address the real problem this is the cash could become a fresh targets for thieves and soak their cash carrying customers. by forcing these dispensaries to deal with for potentially fairly large sums of cash and increase the danger that completely unnecessary so they say it won't work is going to of a fight said whether they will stay open. kristen theyre cps 50 california's high-speed rail is back on track ceilometer is a final approval $8 billion in state and federal funding today. settled in the 130 mi. of track in the central valley it was a

baek here at home, visa and mastercard fell on a downgrade blamed on consumer spending and sluggish growth. >>> warning revenue would fall on soft chinese and european sales. >>> reduced demand for coal and rising costed drove pave trot coal to file for bankruptcy. >>> bright spots? amerigroup soared $4.5 billion. intel will buy 157 of dutch chip maker asml for more than $4 bill. campbell soup will pay 1 bnt $5 billion. consumer credit expanded at the fastest pace, a sign that americans are still spending. >>> and finally when it comes to flowers, nothing smells sweeter business-wise than a rose. the u.s. imports roughly $1.5 billion a year, easily the nation's top-selling cut flower with most exported from colombia. >>> at baseball's all-star celebration in kansas city, a new york yankee is thunderously booed and a detroit slieger slugger makes home run derby history. your early morning sports headlines are straight ahead. >>> and we all survived monday, so let's take a look at the middle of the week coming up. you're watching "early today." quick how many devices in your home use the int

. >>> here in the united states, visa, mastercard and a host of big banks agreed to pay more than $6 billion to settle a huge anti-trust lawsuit. it has to do with alleged price fixing of so-called swipe fees charged by retailers when they accept a credit card for you. don't celebrate just yet. that means the deal will mean they can pass the charge to you. that deal still needs to be approved by a judge. >>> one of the world's largest banks is saying today, sorry. ba barklay's apologized for the scandal that dominated business news this month. see the road, don't drive down it. but that's not stopping drivers in houston who seemingly have no choice at this point. as much as 10 inches of rain fell in the past three days. flood warnings remain in effect throughout the city. >>> a boston area community in shock today after learning that a local pastor and one member of his church are in the hands of kidnappers. not a lot of information available, but it happened in egypt in the dangerous area of northern sinai. we're told that he was on a tour bus in egypt. he was stopped and taken host

to another landmark settlement you may lose money which total about the settlement with the visa mastercard stores may charge a fee to pay by credit card but in california state law prohibits credit card surcharges you still need to be my fault and other states. california consumer protections among the best in the nation. dog owners in eight states to offer better protection they believe contaminated chicken and treats from china second or killed their pets. they filed a lawsuit against an arena a the fda has been unable to identify and the specific toxins' responsible for illnesses even though it has been getting complaints against 2007 the fda cannot legally recall a product pet owners want stores and manufacturers to voluntarily recall. the fda inspected the plants that make the streets but will not release the results. it has issued a warning about treats made in china. we should note this is not the only brand facing scrutiny. >>> united states faces the biggest drop in half a century hitting midwest ranchers hard, it will likely drive up food prices, 55 percent of the continental u.s