tv Markets Now FOX Business June 7, 2013 11:00am-1:01pm EDT
the government could be looking in. we want to know what it means for you. will it change the way you use the internet? not bad, not great either. the jobs report. we will take apart the jobs report. the president of russia in a multibillion-dollar breakup with his wife. this is a story. just how much the divorce could cost him. broadway's biggest night will be sunday with the tony awards. we will be talking with one of the board decorated producers on broadway. those stories and more coming up on market now.
♪ dagen: that is right. so much news today. connell: it always is with the jobs report. dagen: top of the hour. stocks now. nicole petallides. nicole: away we go with a rally on our hands. the dow jones industrials are up. the tech heavy nasdaq is the worst of the three. you mentioned the jobs report at the top of the show. it came in better than expected, but, obviously not stellar. it does bring back the uncertainty about what will the fed do, but for the moment, people are taking it and running with it. dagen: another national security
agency bombshell. fox news confirming the program. it started back in 2007. connell: the director of national intelligence calling the leaked details reprehensible. to put it all together for us, we have rod beckstrom. thank you for coming on. give us some perspective here. how big of a deal is this? >> these are allegations for the time being. some of the companies have come forward and said that these things have not occurred.
there will be some process, presumably in capitol hill, to get to the bottom of this. the government has a role to play in national security. private companies have a role to play. we citizens have some rights, too. good news is very significant news. i think there needs to be a very sober national discussion about just where we are and where we want to be. dagen: where are you in terms of the nsa and its ability? we are talking about phone calls, e-mail web searches, even catalog credit card transactions, according to the "wall street journal." does it surprise you that the nsa would be doing this? >> i will not comment on any programs of the nsa.
those need to be authenticated and spoken to or not spoken to. everything we do online now is probably being recorded. our phone records are the corporate records of those companies. these are the issues we have to really look at. where do we want to be in this new age. i have an 18-year-old daughter. to think that every call that she has made since she was 11 years old has been recorded and tracked, why? connell: a whole bunch of separate issues. the digital footprint is what you are referring to. it has been talked about before. did you have the legal issues that have been brought up now. that is also separate from your
role. how much privacy should we expect? do we give it all away now? >> we do not have much right to privacy, but i think that we should. european citizens actually have certain privacy rights that we do not have in the united states. if the government comes and says you have to provide this information, they often have an obligation. they are getting tremendous amounts of data. the fourth amendment protects your home, papers and effects. dagen: the federal courts have largely rebuffed efforts.
>> yes. i think where we are going with our digital footprint is very concerning. we need to come back and visit it. i think we need to have a national discussion. individuals need to know what rights they have. when i was in the government, i can tell you, a lot of time was spent on these privacy issues. where we are now is we need to revisit our constitution itself implacably enhance it for this new age that we are in. dagen: the only thing that is private is if you are in your home and the doors are locked and your curtains are pulled and you are in a dark closet.
there have been issues about the cable boxes monitoring your activity in the real. connell: rod, thank you. dagen: throughout the show today, we want your thoughts on the government, the nsa, the internet. connell: that is our twitter topic today. we're talking about google, yahoo!, elsewhere on the internet. would you change the way that you act online? 175,000 jobs added. the other big story today would be the jobs report. our next guest says the economy should be stronger and it would be if the government just cut spending. brian is joining us from illinois.
>> what we know by looking back at history, what we know by looking at other countries is no more the government spends, the bigger the government is as a share of our national gdp. no more it takes for itself, though less is left for the private sector and the less jobs we create. the average unemployment rate in france has been 8.1%. we are better then back here in the united states. the good news, i believe, is that we have turned the corner. does the quest or has happened. we have begun to slow down government spending. i do not expect a recession anytime soon and i expect the unemployment rate to keep coming down in the united states.
connell: i think this eeidence shows steady as she goes. what will the fed do with this information? >> if you look back over the past four years, all of these kinds of things that were supposed to take us out and in and this recovery, there were four kinds of recession from lots of economists, the upside for this economy is way more than the downside surprise. i think the economy could accelerate from here rather than decelerate. connell: the fed will taper? i guess what i was thinking as you are talking there, the
economy picks up, the surprise may be more of the upside of that. so interest rates would be going up to; right? but for the right reasons. >> yes. exactly. here is the problem that i think lots of people have. they think that the only reason the economy has grown over the last couple years is because of quantitative easing. because of the federal reserve. the reason we are growing is because we have invented new things. all of these new technologies are white that the economy is growing. we are growing in spite of what the fed is doing. in spite of higher tax rates. in spite of a bigger federal government. when the fed does taper, i actually think that that is good
news for the economy. when the market doesn't sell off, that is a great buying opportunity for me. i think people ought not be worried that the fed will get out of the picture. what i am getting to here is we are not living in a sugar high. that is not what this is about. it is about real technologies. i think the wrong narrative has been spun for lots of people. connell: brian says no and we thank you, as always. have a good one. dagen: a big money break up in russia. putin parting ways with his wife. connell: a really high price. the cyber threat.
we started to talk a little bit about it in a different way. the threat to finance and government. president obama meeting with the new president of china. dagen: and the great white way ahead of the tony's. we are talking about "rent" and the like. take a look at the oil market. of almost one dollar a barrel. ♪ this is america.
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nicole: and out of court settlement. that is a complete disappointment to shareholders. here is the stock. down 18% today. the settlement is that tivo will get $490 million. some of the analysts have been expecting up to $1.7 biilion. this is why you are seeing tivo tanking today. it is in negative territory. obviously, this is not good news for today. back to you. connell: to the story about the russian president. he and his wife of nearly 30
years are divorcing. this could cost putin some serious cash. he is believed to have a net worth of about $40 billion. we are assuming peter the great did not have a prenup. dagen: are you still talking? president obama calling for high-speed internet. the project called connect ed looks to improve digital learning in the classroom. officials are predicting that the federal communications will
raise its costs by $0.40. connell: president obama said to make some comments to the media later this hour. dagen: the storm making its way up to the north east. from the northeast to around the world, take a look at how world currencies are doing against the dollar. ♪ in today's markets, a lot can happen in a second. wi fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers
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says he is suspending his crackdown on immigration. in florida, a judge may allow testimony from voice experts in next week's george zimmerman trial. speech identification experts could try to distinguish between the different voices heard on 911 calls. those are your headlines. back to dagen and connell. peter the great and his wife did have a prenup. she got the cars and the house and he got the rest of russia. dagen: that sounds like a great deal. the jobs number is not great, not awful.
scott minerd is here to weigh in. he is the global chief investment officer. he is on the phone with us. scott, sorry we could not see you in person. does this soothes your concerns about the volatility that we have seen lately with the move up in interest rates? >> no, not at all dagen. if anything, it just increases it. the jobs number itself, on the surface, was okay. it was not great. this still leaves a lot of uncertainty as to what the feds will do with qe or quantitative easing. the idea of tapering the program back, you know, that is what has the market concerned.
every economic piece of data changes the perception of that. today's number changes their perception on qe, that qe will probably last longer than what we expect. that is driving the stock or gephardt today. tomorrow, we will get another piece of information and something else will happen. >> this will and horribly. will we see another crisis? i am kind of opening the door for you to quote. for the viewers that do not know who he is, he was an economist that basically propose that the idea of stability ultimately work is stabilized in the and.
their reason was that it gives people a false sense of confidence. people start investing in assets more and more and eventually, they reach the point of the ponzi buyer. you know, in some ways, the u.s. treasury market is essentially become a ponzi buyer or a ponzi market. the only reason today anybody would buy treasuries is not because they represent good value, but because they expect that the federal reserve will buy them and take them off of their hands at a higher price. that is a great game until the fed decides that it does not want to do it anymore. no one can quite tell when that will happen.
the longer this pressure or tension builds, the volatility will just keep rising and rising. i think that we will probably be in for some pretty rough times in the stock market and the bond market for the next six months. scott, the well. i hope that it is sunny and los angeles. connell: president obama meeting with the president of china. we will be talking about mike baker. dagen: let's talk about broadway. you are looking at motown musical. according to a friend of mine, hottest ticket since a book of mormon.
markets now with another edition of stocks now. we are of just about 200. nicole petallides. nicole: one trader just came to me and did a little dance. i will tell you that we are now clocking in a winning week. erasing the losses that we saw this weekend. i want to bring you over to take a look at quiksilver. you think surfing. you think skateboarding apparel. my kids love quiksilver apparel.
their second-quarter loss widened. they have done a lot of promotions in europe and they just are not cutting it in the numbers did not meet the analysts expectations. connell: thank you, nicole. dagen: president obama set to sit down and roll up his shirt sleeves. connell: joline kent is covering it for us. what do we expect? >> it will be out near palms springs california. he has been to iowa as a guild leader. he has made friends there. it is an opportunity, but, obviously, there is a lot of
attention. it may be a priority for the u.s. side, but for the chinese side, they continue to deny it. they say that it does not happen. there is a working group that is supposed to take place about this. i think most of the issues will be set on the peninsula and trade. dagen: something we can agree upon. what about the first lady? >> michelle obama was supposed to go to this summit. it was going to be a double date, of sorts. that is no longer happening. michelle obama is going to stay at home with her two daughters who are finishing up school. the chinese do not like this. face time means a lot and they are not going to be getting it.
connell: dagen is a big fan of the chinese opera. >> oh, really? dagen: thank you. connell: we will talk a little bit more about this with our friend mike baker. he joins us now. mike, i think we have discussed some of these issues in the past, but you are not overly optimistic about president obama's get together with the chinese president. >> taaking is always good. you need to have these discussions. you need to have these meetings. i would not read too much into the idea that somehow this will be an informal discussion. that is not how the chinese work.
nothing is off the cuff, nothing is informal. it is a good idea. they can get a new measure of the new man in china. as long as they go into it with our eyes open and we do not expect that we will eally ship them off of any of their positions -- we like to think that other countries are like us. that is not how it works. sometimes we are the only nation that apologizes for acting in our best interest. connell: let's talk about cyber security. we just worked on a special about cyber security. what should president obama's goal be. i am sure they will probably try to look for some other issues. places where they agree.
it has to come up. >> well, you know, there are so many issues that they could be discussing. cyber security has sort of hit the top of that list. i think the chinese are not keen to talk about it. there are chinese reporting been somewhat mocking. again, i think we need to talk about it, but we need to understand that it will not change the very aggressive, very confident effort by the chinese. connell: they say, hey, you guys are doing this to us. is that just nonsense in your view? >> well, it would be naïve to think that we are not or any other nation is not out there
trying to understand what the other nations are about. the chinese have experienced this economic miracle over the years. in part because they have been so voracious and grabbing information. i think, as long as we understand that they will not change that position, what we need to do is, we need to figure out a way, not necessarily have the federal government issue best practices and standards, but how do we get the private and public sectors working better together. that is wherr we can make a difference. we will not change the chinese perspectives. connell: as always, thank you. mike baker. >> thank you. dagen: the big money on that
way. we will look at the mega- productions. what they cost to produce and basically, how much it costs to get into see one of them. when will those prices come down? producers versus unions. that is the story. connell: the storm moving up the east coast. we are bracing for that. we will talk about business and travel. we are also waiting for the president. dagen: that is right. waiting to address, potentially, the nsa controversy. we will bring you this event live when it happens. ♪
only flood insurance covers floods. ♪ visit floodsmart.gov/pretend to learn your risk. , ♪ >> today's jobs related rally has lifted all of the major markets. the dow is up right now. shares of malan also in rally mode. world peace as it will now pay $13 a share in cash. according to national association of colleges, and annual survey paid interns more
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connell: we are going to talk about the money behind broadway. only one in five broadway productions actually earn back their investment. dagen: we have a guest from broadway with us now. >> we were not nominated for best musical, but we have gotten some performance nominations and some designed nominations. it has been an amazing journey. dagen: i want to know, in terms of the theatergoer, ticket prices continue to go up. at what point do you start completely squeezing out a younger audience and you do not develop them so you turn them into the people that really spend the big bucks on broadway. >> it costs a lot of people together.
we are having dynamic pricing. it means, yes, ticket prices are going up. as a result, we can also create this counting on some of the lesser attended times. sometimes a tuesday night is not as popular as friday. you can sometimes find those opportunities in the pricing. if it is a must see and you have to go tomorrow, you will pay a premium price for the show. if you are willing to wait a little bit, you could buy a ticket for $79. >> is it a good business to be in? >> it is a great business. what it really means is that in that dynamic of one out of five, often times, some of those are
short runs. the lucky guy starring tom hanks will make its money back. the risk is our musicals. you have never heard of the titles. "rent was risky. that one out of five is true on broadway. there are other ways that income comes to a show. a lot of those statisticsre about the broadway run. dagen: take it to vegas. >> i owned a distribution company. we just announced motown's opening in chicago april 2014. we are announcing it today in
the chicago tribune. dagen: if you want to keep production costs down, you have to work with the unions. >> we do. i think the unions have been very good lately. the last ten years, we have really started to work out some economies. i think the unions are listening. it looks successful. our margins are getting squeezed. everyone is in this conversation. it is a business that we love and there is nothing like a business that you love and the prophet sometimes is not there, but the joy always is. i love it. i am lucky enough to do what i love. connell: thank you, kevin. >> great to be here. dagen: kevin, be well. connell: we are waiting for the
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president and ceo of the sound market. you say this is a great job market. it does not sound like it to me. >> they are hiring people. they are bringing people on. >> they need to change their skill set. they either need to get more education or get trained in another area. jeff: the stocks in these companies have had a good year. some of them, better than other. >> absolutely. jeff: more insight later in the day. hopefully not too many college grads in here working as marie stubbs. we will see.
connell: jeff flock, thank you very much. dagen: heavy wind, rain and even tornadoes in florida. >> big storm and a lot of rain for a lot of people across the eastern seaboard. no tornado warnings at the time, but we could see some of those spinning up. that as well as the very strong winds across the shore. a day that you really just have to stay out of the water. it really is not, it is losing any sign to be a tropical storm. it is just becoming a big rainmaker. ran by tomorrow morning across new england.
we start to dry things out a little bit all across the mid-atllntic and across new york city. some areas, three-5 inches of rain. we are talking about localized flooding that we will be watching. we have a little bit of flash flooding going on right now across north carolina. a lot of rain a head for a lot of us. the weekend, not looking that bad. connell: thank you. we are waiting for the president at this hour. dagen: the dow is rallying today. up 173 points. coming up, a guest who says the federal reserve is not quite ready to stop putting pooch in the punch bowl. connell: we will have president obama live out on the west coast we will bring it to you as soon
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♪ >> looking at my ghouls searches. the bull is back. >> i everyone. the dow is rallying, and it is all about those new jobs numbers and what the fed might do next. scott martin here says he does not think that they are fried bread -- quite ready to pull the plug. dennis: the action is watching. growing outrage over those that snowboard is be nice campaigns against americans by our national security agency, and we want to here from you about it. asked teenine to mike cheryl casone, 41. cheryl: we continue to wait for the president. we are showing you right now live pictures. he is expected to touch on those controversies. a lot of scandals rocking the
white house. you will be talking about health care as well. it will take you to the president and san jose when he begins to. dennis: that conversation with the chinese leader, stop packing america. yet all these revelations that the american government is checking america. cheryl: opposed to be at the top of the agenda. certainly still well as the me tonight, but he has all these other issues including prison which we are now finding out is even broader. dennis: looking at live searches, able to get your live searches are mine. interesting. waiting for the president to start, but we will go check on stocks now. cheryl: i would think you would be loving this right now. dennis: nicole petallides is loving it, too. >> reporter: to love it. love is so much. let's take a look. the dutch as industrials 30 points off of the earlier highs. up about 177. really predicting that when you pull back and go back and forth, that is the action we have been seeing.
what is interesting is we have erased the loss for the week. we had a 260-point down day. actually in positive territory. twenty-seven of the 30 names on the dow jones industrials in the green. boeing american express, a business traveler during very well. walmart has been holding onto an up arrow. share buyback program a 15 billion. intel is under pressure because of the downgrade. the market action that we are seeing today. and we have had light volume. we even saw this yesterday. the back-and-forth action. you know, we are somewhat voluntarily. that is the action we have been seeing because there's so many factors. a jobs report which seemed a little better, but you know that is not that great. quantitative easing is still on the fed mind. we are watching all this together. cheryl: thank you. watching a breakdown on the markets. also watching what is happening out in california.
san jose, the president expected to start speaking at any moment about health care. that is the official reason that we are going to be hearing from the president. certainly many more questions are on reporters minds today as another scandal erupts. we wait for the president. i bring in rich edson standing by back in washington at the white house where i am sure staffers there are trying to figure out which way is up. >> this has been estate of some pretty difficult news for the president to be dealing with. civilly almost to the point of the last month or so. you deal with irs, hhs, ap, fox news report phone records and e-mails. all of that tying into this nsa story. we do expect the president will either address it in his remarks, talking about obamacare that is the intent, or perhaps tick above questions after he makes remarks out there in san jose. that story coming up last night that there was a presence with the nsa. nine different internet
companies and servers providing information to the federal government when it comes to fighting terrorism. administration officials are saying this is all cleared by the courts and they're doing it in a judicious and legal matters. certainly when you compound that with what has been perceived as snooping of journalist records, phone calls. the associated press. you tie that all land. they're is a sense, especially among reporters that the demonstration as something to answer for. we expect to here from the president about this in the next minute or so. cheryl: here we go. let's listen to the president. >> i want to thank everyone who is here. there is only one problem, and that is that my remarks are not sitting here. [laughter] people. [laughter] you know, but on a friday afternoon things get a little challenged. i'm going to have -- i'm going said answer a question at the end of the remarks, want to make
sure that we get the remarks out. people. oh, goodness. [laughter] he's tripping. i mean. folks are sweating back there right now. [laughter] well, good morning, everybody. this afternoon i will be in southern california to meet with the president of china. before i leave northern california want to take a minute to address something that is happening with the affordable care act in this state. and i want to me with a group of people who are doing some very important work on behalf of california's middle class families. these leaders from california's government, the california endowment, and major spanish-language media outlets have joined together to help implement the affordable care racketeer in california. educate folks about how to sign
you jihad have a wide array of new benefits in the butter protections, and stronger cost controls and did not have before. that will over time improve the quality of the insurance the you have got. benefits like free preventive care, checkups to offload shots , mammograms and contraception. you are now going to be able to get those things through your insurance where they previously were not -- did not have to be provided. protections like allowing people up to the age of 26 to stay on
their parents' health care plans, which has already held 6 million americans, including 6 million yen latino americans. cost controls like look requiring insurance companies to spend at least 80 percent of the money that you pay in premiums in your actual health care cost as opposed to administrative costs or in ceo pay, not overhead, but that money has to be spent on you. and if they don't meet that target they actually have to reimburse you. so in california we are already getting reports that insurers are giving rebates to consumers and small-business owners to the tune of $45 million this year. so already we are seeing millions of dollars of rebates sent back to consumers by insurance companies as a consequence of this law. all of that is happening because of the affordable care act. all of this is in place right
now already for 85 percent of americans to have health insurance. by the lake and all of this is what the republican party is now voting 37 times to repeal. at least in the house of representatives. and my suggestion to them has been, let's stop three fighting the old battles us are working with people like the leaders who are on the stages today to make this law work the way it is supposed to. we are focused on moving forward and making sure that this law works for middle-class families. that brings me to the second thing that people need to know about the formal care act. if you are one of nearly 6 million californians were 109 -- ten as of millions of americans who don't currently have health insurance, you will soon be able to buy quality affordable care just like everybody else. here is out. states like california are setting up new online marketplaces where beginning on october 1st of this year, you
can comparison shop on an array of private health insurance plans side-by-side just like you were going on line to compare cars or airline tickets. and that means insurance companies will actually have to compete with each other for your business. and that means new choices. see right now, most states don't have a lot of competition. in nearly every state more than half of all consumers are covered by only two insurers. so there is no incentive to provide you a lot of choices or to keep costs down. the affordable care exchanges that to. beginninggnext year once these marketplaces are open, states will offer a new private insurance choices that don't exist today. and based on earlier reports, about nine and ten americans expected to enroll in these marketplaces, live in states where they're will be held to choose between five or more different insurers.
for example, here in california, 33 insurers applied to join the marketplace. covered california and then selected 13 based on access, quality, and affordability. four of which are brand new to your individual market. so what is happening is, through the four will carry trier greeting marketplaces with more competition, more choice, and so the question is what happens to cost. now, a lot of the opponents of the affordable care at said they had all kinds of the sky is falling, doom and gloom predictions that not only with the law failed but would also see is costs will skyrocket. turns out we're actually seeing that in this case that have committed themselves to implementing this law correctly, we are seeing some good news. competition and choice are pushing down costs in the individual market, just like the law was designed to do.
but 13 insurance companies that were chosen by california have unveiled premiums i were lower than anybody expected. and those who cannot afford to buy private insurance will get help reducing their out-of-pocket premiums even further with the largest health care tax cut for working families and small businesses in our history. so about two and a half million californians, nearly half of, latinos, will qualify for tax credits that will, in some cases, lower their premiums space significant amount. no, none of this is a surprise. this is the way the law was designed to work. but since everybody has been saying how it is that dodger happen and i think it is important for us to recognize in the knowledge, this is working the latest posting. we have seen similar good news, by the way, not just here in california, but oregon and washington, states that are working hard to implement this law properly, we are seeing a work for people, for
middle-class families and consumers. that is not to say that everything is going to go perfectly right away. when you're implementing a program this large there will be some glitches. it will be some hiccups. but no matter what every single consumer will be covered by the new benefits and protections under this law permanently. so the bottom line is, you can listen to a bunch of political talk out there, negative ads and fear mongering geared toward the next election, or alternatively you can look at what is happening in states like california right now. the fact of the matter is through these changes not only are the 85 percent of people who already have health insurance getting better protections and receiving rebates and being able to keep their kids on their health insurance until they're 26 and getting free preventive care, but if you don't have health insurance and you try to give it to the individual market and is too expensive or it's too restricted, you know have these
marketplaces where they're going to offer you a better deal because of choice and competition. and even at those lower rates and better insurance that you are getting through these marketplaces, you still can't afford it, you're going to be getting tax cuts and tax credits to the affordable care act of love you for it. that is so we're going to make sure that the millions of people who don't currently have health insurance or getting a really bad deal of finally going to get it. but. dennis: here is my final point, to take invented of these marketplaces folks are going to need to sign up. so you can find out how to sign up at healthcare dot of or here in california you can sign up that covered see a. because quality care is not something that should be of privilege.
should be right. the greatest country on earth. we have to make sure that every single person that needs of care can get it, and we have to make sure that we do it in the most efficient way possible. one last point of going to make on this because there are a lot of people who currently get health insurance through their employers, the 85 percent are already out there. they may be saying, well, if this law is so great why is it that my premiums still went up? well, part of what is happening across the country is in some cases, for example, employers may be shifting more costs through higher premiums or higher deductibles oo hire copays. and so there may still be folks who are out there feeling increased cost, not because of the affordable care act, but because thoseecosts of being passed on the workers or insurance companies in some cases, even with these laws in place are still checking up
prices unnecessarily. so this does not solve all problems. it moves in the right direction and is the reason we have to keep on implementing changes in how oral care system works. continually driving better efficiency, higher quality, lower cost. starting to see a health care cost inflation has gone up but the lowest rate of the last three years the we have seen in many, many years. so we're making progress in actually reducing overall health care costs while improving@ quality, but we're going to have to continue to push on that front as well. that is also part of what we're doing. but the main message i want for californians and people all across the country starting october 1st, if you are in the individual market peaking get better deal. if you're a small businesses providing health insurance to employees, you can get a better deal through these exchanges. you have to sign of. all right.
thank you very much. i am going to take one question. then remember, people are going to let -- will answer questions when i'm with the chinese president today, so i don't want the whole day to just be a bleeding press conference. i will take jackie paul's question. >> president, could you please react, the secret government surveillance of phones and internet continue also assure americans that the government's does not have some massive secret database of all their personallon-line information. >> you know, when i came into this office i made to commitments that are more important than any other. number one, keep the american people safe. number two, topple the constitution. that includes what i consider to be a constitutional right to privacy.
and an observance of civil liberties. no, the programs that have been discussed of alaska blood is in the press are it secret in the sense that they're classified, but they're not secret in the sense that when it comes to telephone calls, every member of congress has been briefed on this program. with respect to all these programs and other relevant intelligence committees of fully briefed on these programs. these are programs that have been authorized by broad bipartisan majorities repeatedly since 2006. and so i think at the outset it is important to understand that you -- you're duly elected representatives have been consistently informed on exactly what we're doing. let me take the two issues
separately. when it comes to telephone calls , nobody is listening to your telephone calls. that is not what this program is about. as was indicated, what the intelligence community is doing is looking at phone-number this and durations of calls. there are not looking at people's names and they are not looking at constant. but by sifting through this so-called meta data they may identify potential leads with respect to folks who might engage in terrorist plots. if these folks -- if the intelligence community then actually wants to listen to a phone call, they have to go back to a federal judge, just like
they would in a criminal investigation. so i want to be very clear. some of the hype that we have been hearing over the last there so, nobody is listening to the content of people's phone calls. this program, by the way, is fully overseen, not just by congress, but by the fisa court, a court specialist to get to evaluate specialist programs to make sure the executive branch or government generally is not abusing them and that there is being carried out consistent with the constitution and rule of law. and so not only does that court authorized the initial gathering of data, but i want to repeat, if anybody in government wanted to go further than just that topline data and wanted to, for example, listen to the phone
call, there would have to go back to a federal judge and indicate why, in fact, they were doing further probing. now, with respect to the internet and e-mails, this does not apply to u.s. citizens, and it does not apply to people living in the united states. and again, in this instance, not only is congress fully apprised of it, but what is also true is that the fisa court has to authorize it. so in summary, what you have got is to programs that were originally authorized by congress, had been repeatedly authorized by congress. bipartisan majorities have approved them. congress is continually briefed
on how these are conducted. they're is a whole range of safeguards involved. federal judges are overseeing the entire program throughout. we are also setting up -- we have also set up an audit process when i came into office to make sure that we are after the fact making absolutely certain that all of the safeguards are being properly observed. now, having said all that, you remember when i made that speech a couple of weeks ago about the need for us to shift out of a perpetual war mind set. i specifically said that one of the things that we are going to have to discuss and debate is how we are striking this balance between the need to keep the american people safe and our concerns about privacy. because there are some
trade-offs involved. i welcome this debate, and i think it is healthy for our democracy. i think it is assigned a majority because probably five or six years ago we might not have been having this debate. i think it is interesting that there is -- there are some folks on the right and some folks on the left are no word about it who were not very worried about it when it was a republican president. i think that is dead. i think we're having this discussion. but i think it is important for everyone to understand and the american people understand that there are some trade-offs involved. you know, i came in with a healthy skepticism about these programs. my team evaluated them. we scrub them thoroughly. we expanded some of the oversight. increase some of the safeguards.
but my assessments and my team's assessment was that they help us prevent terrorist attacks. and the modest encroachments upon privacy that are involved in getting the numbers or duration without a name attached and not looking accountant that on that it was worth the steering some other folks may have a different assessment of that. but i think it is important to recognize that you cannot have 100 percent security and also then have 100 percent privacy and the zero inconvenience.
we are going to have to make sentences as a society. what i can say is in evaluating these programs, then make a difference. to anticipate and prevent possible terrorist activity. and the fact that day are under very strict supervision by all three branches of government and that they do not involve listening to people's phone calls. do not involve reading the e-mails of u.s. citizens or residents. absent further action by a federal court that is entirely consistent with what we would do for example on a criminal investigation. i think on balance, you know, we have established a process and
procedure that the american people should feel comfortable about but again, these programs are subject to congressional oversight and congressional reauthorization in congressional debate. and if there are members of congress who feel differently than they should speak up. we're happy to have that debate. okay. >> all right. >> we will have a chance to talk further during the course of the next apple days. they keep. cheryl: the monitoring of e-mails and internet activity not applying to u.s. citizens. >> they're is a reason why these programs are classified. yep. i think that there is a suggestion that somehow any classified programs, a secret
program which means is somehow suspicious. the fact of the matter is in our modern history the whole range of programs that have been classified because when it comes to, for example, fighting terror our goal is to stop folks from doing a song. and if every step that we are taking trying to prevent a terrorist act is on the front page of the newspapers or television, then presumably the people are trying to do less harm are going to be able to the get around our preventive measures. that is why these things are classified. that is also why we set up a congressional oversight. these are the folks you also for as your representatives in congress, and they are being fully briefed on these programs. and if, in fact, there was --
there were abuses taking place presumably, those members of congress could raise those issues very aggressively. they are empowered to do so. we also have federal judges that we put in place who are not subject to political pressure. they have lifetime tenure as federal judges, and they are empowered to look over our shoulder at the executive branch to make sure that these programs are not being abused. so we have a system in which some information is classified, and we have a system of checks and balances to make sure that is not used. -- not abused. if, in fact, this information ends up just being dumped out willy-nilly without regard to
risk to the program, risk to the people involved, in some cases on the other of leaks risks to personnel in grave, dangerous situations. it is very hard for us to be as effective in protecting the american people. that is not to suggest that, you know, you just say trust me. we are doing the right thing. we know who the bad guys are. and the reason that is not how it works is because we have congressional oversight and judicial oversight. and if people can't trust not only the executive branch but also don't trust congress and don't trust federal judges to make sure that we are abiding by the constitution and to process and rule of law, then we're going to have some problems here . but my observation is is that
the people who were involved in america's national security, they take this work very seriously. they cherish our constitution. the last thing it would be doing is taking programs like this to listen to somebody's phone calls . by the way, with respect to my concerns about privacy issues, i will leave this office at some point, sometime in the next three and a half years. and after that i will be a private citizen. and i suspect that, you know, on a list of people who might be targeted, you know, so that somebody could read their e-mails or listen to phone calls , i would probably be pretty high analyst. that is not as if i don't have a personal interest in making sure my privacy is protected. but i know that the people are
involved in these programs operate like professionals. these things are very narrowly circumscribed. they're very focused, and in the abstract you can complain about big brother and how this is a potential to, you know, a program run amok, but when you actually look at the details and nothing we have struck the right balance. thank you very much. >> that's it. >> thank you. cheryl: president obama addressing the and as a scandal's not once but twice as he came back to the microphone. the president very clear in saying his defense is strong. the fact that this is the monitoring of internet activity in e-mails is not directed at u.s. citizens or even those that live in the united states. certainly the president was prepared to answer questions from one reporter.
this is a big scandal. certainly a big story today. dennis: the president not apologizing or denying any of the snooping, but instead defending it. the court's new. never mind that a special secret court has approved over 1600 progress by the government party's government to levees dropping his never turn down a single request. let's think about this. tapping into service directly for companies like a book -- facebook, google, microsoft, apple. kent a permanent program dumped prism starting in a seven. joining us from albany to talk about all this. security expert and ceo street crash software. thank you for being with us. start out by telling us what your software helps law enforcement do when they have to track down badass.
>> our software takes information from public sources and law enforcement sources and puts together in a way that helps us narrow the search and a narrow the scope to look for people who have arrest warrants of for them. >> that seems like a very specific approach. i mean, it's almost like you will go under water spear fishing for one predator. our government, instead, is putting them under thousand mile wide, on that and sweeping all the efficiency, including all individuals and helps that they can find one to fish. first of all, why it is a spear fishing a far more efficient approach? >> well, i think that in the intelligence business and law enforcement business it is incumbent upon us to protect people and also protect people's rights. the second part is actually a very sacred responsibility. the president was talking about that. when you get down to an operational level if you are
protecting people's rights them what you're trying to do is look for patterns in information on a very, very broad scale to narrow the scope. investigations always come down to someone speaking to a couple of people. when you are looking to talk to five, ten, 15, these kindd of techniques like analyses. these kinds of things when done with proper respect for your civil rights can help narrow down the scope of the search for millions of people down to 5410. dennis: call me crazy. i thought i never complaining that the guy next door if he was really kind of creepy in saying anti-u.s. things might be a far better to it versus going this way. do you have no problem and always government looking at your live global search is anemone ability to tap into your facebook accountancy private stuff, not just public? >> i would not say that at all. i actually don't know what they're really doing. let me put it another way. what i am looking for patterns
of information that are consistent with something. from looking at a shooting or homicide and i know when a homicide took place and where to place, automatic license plate readers, a vehicle that passed by near where the scene was, maybe five minutes before five minutes after, that could help me reduce the scope of what i am looking for frrm everyone in an entire city down to just those vehicles that were there. is this proof of anything? absolutely not, but it gives our investigators in the ability to go and speak to a few people to start their investigation as opposed to thinking and everyone in the city is a potential suspect. dennis: is in sight that would be a great idea after an event happens, use all your electronics have to go in. from the start to put out that hundred thousand mile matt, if we have been doing this, how does to pull off the boston marathon bombings? why were we will stop that? >> i don't have any opinion at all what i am here to talk about
is the power of lincoln analysis and the power of the ability to take a look at patterns and see people. has been said that it is possible to live next door to mama not to once as a coincidence , seven not twice . we're trying to disqualify people are not of interest and and and and people who are of interest. dennis: thank you very much. cheryl: that brings us to our twitter talk for today. does the government monitoring of the internet through services like yahoo give you pause before you use the web? you can tweet us right now. dennis: and joan is already in with this. they seem to get as at every turn, and we just cannot avoid the intrusion. as dependent as we are by tourists are not. that is a lot of characters and a tweed. cheryl: i am going to use them
less and less and use care in what i write. otherwise audit for iras and hhs and atf records are released to the public. dennis: stocks now with nicole. we have a rally. >> reporter: alcohol, tobacco, firearms. you are these people? if you are being frank and probably running a great, these intrusions probably will be that bad for you. let's take a look. of course it is an invasion of privacy. i get it. the markets right now, the dow %-1707.ndustrials up 160 -- 15,218. all three of the major averages, up 1% relatively for of three. we have erased the losses. positive for the week, but i'm also watching the u.s. dollar which unlike yesterday was tanking. today looking a lot better and a lot stronger. something worth noting.
quayle gained. dennis: the dow closed last friday. we are at 219 and could end the week up. an awfully volatile week. cheryl: certainly the jobs number from today was a big reason that you got this boost in the markets. the fact that we could be higher for the weekend stocks. more jobs added in may than was expected, but didn't plan the raid did take a little bit higher. chief financial economist this year. of course we want to bring in our good friend, united adviser chief market strategist and fox news contributor. i am going to go to you first. the overall, the question is that we were seeing a jobless recovery. 170,000 pluses nice, but it is not great. we were creating a million jobs a month. where are we now? >> we were in another one of those little many slums that we have had as far as the cycle is concerned. we have tended to go three to six months of accelerated job
growth and then follow that with three to six months of decelerated job growth. we are in the latter right now. we have generated almost 7 million jobs since the labor market recovered. so it's not really a jobless recovery. the problem is that we lost almost 9 million jobs. even though we have had pretty good job growth throughout this recovery is, sometimes better than others, it is just taking a long time to replace all the lost jobs. that is why the labor market still doesn't feel as good as you would like it. cheryl: but you talk about -- like what investors are feeling today. the market up hundred 75 points, barely off session highs. >> a bad number last night. that was really what i think play into the market rally. a lot of people came to this number short. listen. i get that point. he's taking vans full approach. the school. the problem is if you look around the globe, manufacturing numbers are around the globe the
economies are contracting even further than they were back in the points we had the cyclical diversion of some acceleration in some deceleration. my concern is that since the global economy is in worse shape toward our job market. much more than it did just a couple years ago when the global economy was stronger restore cheryl: agree or disagree? >> i think the global economy needs is more than we need them. we are not -- our business model year is not to be an exporting nation, although it does contribute to our growth. what is going to get us going is that we continue to give more people working. that means that income growth will continue. u.s. consumers will spend more. the most important piece of the puzzle is already in place, and that is we have a housing market recovery and rising home prices. that is the magic elixir that will keep us going. dennis: income growth, zero average hourly earnings. you know, increase last month.
no increase at all. up 2%. no wage growth. this is a labor markets which has some much slack in it. there are a pair of pants that even kim kardashian could fit in so many guys show up to one job. it's good for them. it have to pay higher wages because they're is a guy and girl next door that will come and take that same job for lower wages. >> average hourly earnings typically runs from 2% to 4 percent over the business cycle. you're dead right, we should be seeing average hourly earnings rise by this point. what that is is an indication that we still have a lot of surplus. if only because we still have not replaced -- still almost 2 million short of replacing all the jobs are lost. that is the downside. the only thing that will fix that is time and continued job growth approaching 200 dozen per month. cheryl: you're on the economy. i have to ask you.
based on what we're talking about. the weakness in the economy, hourly earnings of the continue to seek, why are we up? >> here is a great point. the fact that there is no average hourly earnings increased means the fed is still here because there is no worry about inflation. chasing too few organs because nobody has any. the fed can keep pressing rates lower and not worry about inflation. cheryl: all right. it's one of those days. we like to see the good numbers. thank you. >> thank you. dennis: the dow of 172. chinese checking and president obama's agenda. with china's president this evening. the economic implications. could be an awkward meeting.
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spinoff? >> it is certainly going to be a much more difficult conversation and he was planning. the president will be looking at obama when he complains about cyber hacking and say you guys doing the same thing. you're doing it to u.s. companies and citizens. we don't really have a lot to talk about right now. cheryl: let's talk about what they're going to talk about as you have a new report coming out. reporting that basically the chinese were spying and president obama's campaign. there was spying and senator john mccain. that campaign. getting more and more data that tells us the chinese are looking to us steal military secrets and intellectual property. also political secrets. what is the goal if you are china right now? what is the endgame in your opinion? >> you know, they really have three goals. as you mentioned, they're going after military and political secrets. they go after technology secrets and intellectual property.
they also basically want to have a sense about what people are thinking about china and what they're saying about china. they will often go after former government leaders, think tanks, and the press trying to influence the debate about china and really try to shape the debate. cheryl: chinese military officials and government of the only people with computers. if you like russia, there are certainly other countries that are interested in hacking into u.s. debates. other countries you're worried about? >> there are. the office of counter intelligence name china and russia the main perpetrators of these types of attacks. in the past we have known about france, is real. you mentioned iranian attacks, they have mainly been distributed to nile services tax, to disrupt u.s. businesses, but they also must be trying to engage in espionage. cheryl: as far as the discussion tonight from our reporting from our washington bureau, we are
learning the president is expected to bring up the issue of server security and espionage the same time he won't be more specific. it is more a meeting greek comedy to know you. behind the scenes, whether it is through the secretary of state or other issues in washington, how can the united states effectively start the discussion and change the next? >> president obama is going to want to play good, bad cop. he will do as you say, point to the larger relationship and say the u.s. and china have all these issues. the global economy that we need to work together. people, the american people are upset. the congress is upset. a lot of legislation is being considered to look at specific sanctions. chinese businesses have seemed to benefit. travel restrictions, financial restrictions on individual hackers. obama will say, you have to work with me. otherwise these things will come
down the road. cheryl: all right. well, the discussion tonight. thank you very much for being with us. appreciate it. >> thank you for having me. dennis: still time for you tweet us. does the government monitoring of the internet at your accounts give you pause before you use the web? answers coming up. cheryl: you want to take a look in some of the winners over on the dow. the dow up overall 1504 points. let's make it nicole petallides. dennis: a. al your liking these markets? >> the information that we got out of washington was exactly what this market needed. not great news, not bad news. right down the middle. everyone is happy. nice follow-through in the market. at the grass going to continue to see the momentum heading into this weekend. dennis: what happened to the worries that the fed will tighten and taper.
is that as blowout or will the words be with us next week? >> natural worries and concerns that everyone should have. the look of the economic data, somewhat tepid, i think it just gives the government more time to hold on to the program. they have plenty of both left to use. they're just waiting to use them. at this point investors are happy to see the way in the economy is growing in the inkling that the government is pulling out of the programs the we have seen him and not as close as some people might want to see. dennis: one last question. if the fed starts to raise rates are stops buying bonds, is in that because the fed sees signs of an improving economy and shouldn't traders be happy for that and not scared? >> absolutely. initial reactions would be scared, longer term when you look to take a step back, you should be happy. our economy should be able to stand on its own. we should get interest rates back to a level we feel more comfortable with, and it should be good signs. the initial reaction, we'll see
a lot. the market is very volatile and then after a while we see some sort of smoothing out afterward. we will see when that happens. dennis: there we have it. when you see the fear, take stocks down. by. thanks. cheryl: let's stay on the markets. the unemployment rate taking higher. we have guessed right now that says he has a plan that could create new jobs. financial bank chairman. you are here on this wild day. so many different pieces of news breaking, but the markets are really liking the jobs report. they think the fed is going to stay behind it. stay behind the banks. obviously a would be you. your take on the market overall. >> i think the market is actually outperforming the jobs number. a lot of our jobs that are being created, of the big companies that are on the market are being benefited by lower borrowing costs and by a whole host of factors that are not benefiting the biggest job creators.
small or medium-sized businesses . they create 60 percent of the jobs. for a given growth in gdp they tend to create twice as many jobs as big businesses. so and so we get a policy that helps smaller medium-sized businesses we're going to continue to see the market outperform jobs reports. today is exhibit a. cheryl: you are saying the market is ahead of itself, but the market is betting that the fed is going to continue that program. however, former chairman greenspan coming tapering needs to begin much sooner than the end of the summer, like tomorrow but would that do? >> the idea of tapering, this concept of the fed turning dials with every job report is actually for our clients and against small and medium-size businesses creating another level of uncertainty. i think a plan that is put into place over time, 75, 65, 55,
whenever it is, but shows a phased out tapering with some certainty will be viewed as a positive as opposed to looking at numbers like today and it being just sort of like a major event. cheryl: i know that you are very concerned about the economy. you say that -- may disagree with the economy is on the mend. would you change, the banking system structure, pull back regulation, target the bigger banks, what is your opinion? >> first of all, yes, the economy is ending. it will probably be seven years until we are at the same sort of jobs leveled. one of your earlier guests pointed out, we are still almost 2 million jobs shire where we were in 2007, and we had growth in the economy. at think we need a set of policies from creating a banking system that supports middle-market and smaller companies. we don't have that today. five banks control 65 -- 60 plus% of the assets.
they make not enough loans to small and medium-sized businesses. for example, banks about 50 billion make something like 75 percent of the loans but only something like 30 percent of the loans to small and medium-sized businesses. the more we concentrate into big banks the more we start smaller companies to resources. cheryl: thank you for your patience. a very busy news day and your perspective. thank you very much. >> thank you. good to be here. dennis: and we are still getting reactions from you guys to the u.s. government monitoring of all things on the internet. give you pause before you decide to go on a bases search. your answer is coming up. cheryl: we have talked a lot about the dow. take a look at what is happening as far as the winners go. of the session highs. american express, travelers. we will appear right back. ♪ everybody has different investment objectives,
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♪ dennis: more now from today's twitter talk. does the government monitoring of the internet, facebook, give you pause before you use the web? mike says, i am debating and giving up all social media except for twitter. at post publicly here always. twitter was really conspicuously absent from that list of the government's servers. san says no. nothing to hide. having a son with autism, most of my search is artisan related or medical, being in the medical field. cheryl: this is something that is going to be debated for weeks . nsa program. this really has. you saw the president and his emotions today. he was incredibly offensive.
dennis: one is prompted didn't work. bad luck. this guy is having a real bad luck st. cheryl: that is it for me. dennis will stay with you. coming up in the next hour, games. president obama said to call timeout. it could be tricky timing after new revelations that the u.s. government is doing data mining of its own. dennis: i'll be anchoring the 1:00 p.m. also. stick around. and as a snooping in defending it. will his promise of transparency live up to his presidency? president mike paula's up next on the public-relations fallout. joining lori next door right here on fox business. ♪ this is america.
the fed keeps on printing. where are the jobs? dennis: big brother is watching, listening, and reading. the obama administration under fire after a second massive surveillance project is revealed. president obama is not apologizing for it. he is, in fact, defending it and says is not even directed the u.s. citizens. lori: of course, the president looking to punish hackers from abroad. this case mr. obama will make that china's president in california starting today. former white house stivers are howard schmidt is our special guest. as did you updated on the markets as we do every 15 minutes, add to the floor of the new york stock exchange and nicole petallides. clearing recent losses. >> reporter: an exciting week on wall street. very volatile out back-and-forth action. we get our jobs report, our monthly jobs report which is a little better than expected. that helps stocks along. bring back the uncertainty of whether the fed may tighten said that later. and then that puts a damper on things, but you do have the