Transcripts For FBC Varney Company 20140616

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tonight. stocks up slightly. "varney & company" gets underway. ♪ stuart: the situation in iraq is getting worse. they are getting closer to the capital of baghdad. iraq totally divided. posting pictures of a mass execution of iraq keep troops. as much as 1700 iraq keep soldiers. where is president obama? i will tell you. he is golfing in southern california. giving speeches on climate change. >> it is not whether we need to act, the overwhelming judgment of science accumulated and richard and reviewed over decades has put that to rest. the question is, whether we have the will to act before it is too late. stuart: we have republican senator from wyoming. welcome to the big apple. what do you make of this? >> it is astonishing. the president response is much too late. we still have this coming. we knew that we should have left some troops on the ground. we have troops in japan. south korea. in europe. i thought that that was a mistake. the president really needs to rethink his decision about afghanistan right now. stuart: do you think that america wants further involvement? >> not at this point. i thought a piece keeping force would have been the way to go. >> the president said that things are fine. we left things safe and secure. that just was not the case. stuart: the house moved marines into baghdad to allow personnel to leave temporarily. they are there doing just that. >> i think the president is not being well advised by his security team. we are to be planning for all options. the president has not tried to have wishful thinking. last week he said the world is less violent than it has ever been before. you see videos of 1700 iraq is being assassinated. stuart: isn't the president aware of what they called the optics? a speech like the one you just heard a clip from. what does the world think when they see that happen? >> they see the president with drawing. i think that is an invitation to vladimir putin. in invitation for north korea. now it seems like an additional invitation to iran to move into iraq. stuart: i think america and its policy are in disarray at this point. >> he has announced his vacuum and intentions to continue to with draw. >> i will break away from early monday morning market. stocks are pretty much flat across the board. i get the feeling stocks want to go up. they are being held in check. the s&p 500 is up a mere five points. of the highs of last week. oreo, that is where the action has been. as of now, relatively quiet. we have the price of oil close to $107 a barrel. gold moving higher again. as for the 10 year treasury, that is our interest rate barometer. the medical device maker, medtronic leaving america. heading to lower tax rates elsewhere. the merged company will head over there for those tax break. nicole: this is unofficial for the tax purposes. 42.9. medtronic is huge. the largest sale on medical device maker. over $60 billion. they will take it over. it is at a new high. >> the story really is here. that is astonishing. thank you. they are going over there because they do not like the tax rates over here. universally, you hear support for lowering tax rates. the president will not have it. >> you are absolutely right. corporate tax rates in ireland, 12.5%. we have many companies from the united states that have a lot of money overseas. they have to pay such a high tax rate. i support that money. with the medical device tax, that is and additional incentive to move jobs overseas. >> it felt like that would be the biggest news out of washington. what would the republicans be willing to give up in terms of an infrastructure fund? >> we need tax reform. >> well, we know that. if they said, okay, let's agree. there is $2 trillion offshore. other parts of that money will go to poor job creation. how much of the piece do you think the republicans are willing to take? >> waiting until after the republicans take over the senate. would it make sense would you give it a one off tax holiday? >> you can go either way. >> why won't the president do this? why won't he do anything to bring that money back here? mandates. regulations. right now -- stuart: it is not working politically. i don't know why he does not mind. senator, hold on. there is more to come. >> i will say that it was a big weekend for sports. took the fifth nba championship. listen to what star player lebron james, from the heat, said about this. >> you know, we lost another one. championships any day. stuart: go. [laughter] >> lebron when he went down to miami said they would win many championships. they put together a team. they probably need to talk to him a couple days from now. this is well below what they thought they would do. i think there has been too much attention on lebron. they have a culture of success. we should mimic that. no superstars on the team. >> okay. let's go to the u.s. open. big stars. they did not make it to the leaderboard. i want you to tell me about mr. compton. charles: eric compton playing with a second parts. he went out to practice his swing. he almost had a shot. an amazing story. >> i do not think he could bail out those ratings. charles: he could be the superstar that could bring more into the game. i love the way that he dresses. it was classic. stuart: all right. the world cup. shall we move on. it kicks off tonight. team usa takes on donna. if the u.s. loses, they take on number two germany. number four portugal. the senator is still here. was i was not expecting this, were you. they don't play soccer in wyoming, do they? >> you do not realize, the good senator was waiting for an opportunity to paint me. go ahead. >> my daughter emma has a shirt that says football is life. it is a soccer ball in the middle of it. >> thank you very much, indeed. the irs says it is lost. loss. more than a year into the investigation. no answers. representing the baseball. giants against the rockies. happy father's day to one daddy. watch this and listen. >> how about this? what i like was when i got out into left field on that state, who caught the baseball? ♪ peace of mind is important when you're running a business. century link provides reliable it services like multi-layered security solution to keep your information safe & secure. century link. your link with what's next. let that phrase sit with you for a second. unlimited. as in, no limits on your hard-earned cash back. as in no more dealing with those rotating categories. the quicksilver card from capital one. unlimited 1.5% cash back on everything you purchase, every day. don't settle for anything less. i'll keep asking. what's in your wallet? i'll keep asking. when folks think about wthey think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. stuart: south, but not by much. where is the price of oil this morning? $107 a barrel. yahoo! investors do not like it. we quote them because they have a double stake in ali baba. if you look at starbucks, you can earn and on line degree for free. the irs revealing friday afternoon. a computer glitch led to the loss of two years of e-mails sent by lois lerner to the white house. these were the same e-mails subpoenaed by the house oversight committee. one man is suing the irs on behalf of the tea party group. j, welcome to the program. i am sorry. i am not calling anybody a liar, i simply do not believe that you could lose two years worth of tea, possibly incriminating e-mails. >> no. it is the to formative years. it took them a year to tell that to the united states congress. she sent those e-mails to individuals. to other agencies. that is another way to get at this. the next major client that i have. that irs agent asked for verification receipts. can we still get the deduction? the answer would be no. lois lerner thinks you get the past. there is a lot of news developing. >> it reminds me. i was around when richard nixon had 18 minutes of key tape erased. nobody believed that. there was nothing we could do about it. this time, you can do something about it. they are on a server somewhere. shortly -- surely, your lawyers can handle this. >> we had a lawsuit that is filed did to mandate, number one. the agencies keep the document. she may have lost her e-mail. none of which i believe, by the way. we will actually be taking a deposition. i will get those e-mails. make no mistake about it. >> hold on. hold on. i want to let everyone know why this is important. it is not just the lost of these e-mails. these are him e-mails from lois lerner. those e-mails suggest that they were relating on the issue of targeting. a campaign to reelect the president. a campaign. if there is a connection, if any of those e-mails show that they were ordered to do this, the sky is the limit on what has been going on here. >> stuart, there is one other aspect of this. you cannot have these unauthorized disclosures. there is criminal activity here. we have to get a forensic expert in there. it is absurd. it is outrageous. we are not letting this go. i really appreciate you staying on this case. thank you. >> the situation in iraq. threatening to attack back dad. a commencement address focusing on climate change. a contentious address, two. we will talk about that after this. ♪ [ male announcer ] it's one of the most amazing things we build and it doesn't even fly. we build it in classrooms and exhibit halls, mentoring tomorrow's innovators. we build it raising roofs, preserving habitats and serving america's veterans. every day, thousands of boeing volunteers help make their communities the best they can be. building something better for all of us. ♪ ♪ stuart: disappointing ticket sales from the dreamworks movie "how to train your dragon 2". investors like it. up 23%. let's give more on president obama's commencement speech. he uses the speech to push global warming agenda. >> declared last month. climate change is no longer a distant threat. in some parts of the country, whether related disasters are going to get harsher and they will get costly. that is why today i am announcing a new one billion-dollar competitive font that will help communities prepare for climate change. stuart: you heard it. a billion dollars to help communities hit by natural disasters linked by climate change. listen to what fox news janet dean had to say about that. >> look at this flooding here in florida. this is climate change. that is what i do not like. weather is always changing. it is always evolving. it is always adapting. >> it is linked to climate change. there is a of go out with that speech. charles: the death associated was man-made. therefore we should spend more money. 1900, up to 12,000 people died. 22,000 people died. i agree. we have had natural disasters in the past. every time there is a natural disaster, we should point the finger at ourselves, that is not. stuart: nothing to do with him at all. a shrinking middle class. that is what is killing golf. golf. why the younger generation is not playing. listen to this. >> talking about what tiger woods has done. now that he gets into his middle 30s, there does not seem to be anything that is really behind. i will keep cable because i have to keep "varney & company" and i will cut down on my golf. stuart: too expensive. jeff says it has grown too expensive for middle-class. it has shrunk over the bush and obama years. like a lot of recreational sports, golf has priced itself out of the pocket of significant people. ken says it has nothing to do with pricing. far less money than video games. the galaxy golf as an old man for snobs game. thanks one and all for your responses. speaking of golf, a virtually unknown german winning the u.s. open. some stiff competition in the tv ratings. what will they do about all of this? 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>> first of all, good to be with you this morning after our 114th meditates championship included with and wonderful champion in martin kime her. the numbers make references to tv ratings, much of that is tied to tiger woods international appeal, and we think us along with all the allied organizations in the game as tiger becomes slightly older and in this case did not play because of medical condition, that we continue to promote and elevate the other players. stuart: are you not worried? not concerned about this at all? >> no. we are reacting to it, we have strategic initiatives in connection with our governors response ability to the job we've performed in a golf internationally and worldwide in conjunction with our partners, as we have strategic initiatives to bring more people to the game because if we're going to be good leaders, we will be concerned about the game's health, but golf is ciprical. the national golf foundation will give you all the data. one of those five when people fewer, that data doesn't include is those people coming into the game which offsets some of that number. we can't stand pat, but i don't think we are worried about golf. it has had international charm and appeal for over 100 years. stuart: we are so concerned, fox is going to cover the u.s. open next year, so we want to get those numbers back as well. sorry i'm out of time, thank you for joining us. want to progress with this theme of gold as economic indicator. it is an expensive sport and young people may find it difficult to get the money together. we're joined by jeff foster, "wall street journal" sports guy, i want to comment on whether or not golf really is an economic indicator. >> it is partially a comi commet there are other factors. the crowd is not connecting with the game, the money is obviously a factor but also the fact it takes a long time, five, six hours of your day. stuart: fast-moving youngsters? >> it is also how hard the game is. you know when you play golf the first time you are awful, you are awful. and it is not fun for years. taking that much time in that difficult, you have people dropping it, losing interest in it. stuart: are they calling for a bigger hole to make it easier? >> it is sort of like the bumpers in bolan. you have to make it a little easier to have the kids enjoy it more. me personally, don't think you should, i think you should be bad at golf, that is the only way to learn. stuart: think about what you are saying. not interesting to youngsters because it is hard. >> i do think that is a generational thing. stuart: so you are condemning her own generation. you are saying these kids won't try. >> i think it is you have to play 18 holes or nine holes with a factor. some courses are doing like a punch clock system where you play for an hour or two and are billed on how long you played rather than committing to a full nine holes. there are other ways you can make it more acceptable be at stuart: i think nine holes golf would be okay. >> i don't start playing well until the temple. stuart: you do play? >> i do. stuart: is a polite to ask what your handicap was? >> it was bad, high 80s. now it is hard, it is a time issue. we can't say i will see you in six hours. time, money, a lot of factors. stuart: do you think there is the time for a true star in golf? >> that will definitely help. tiger woods is the sole reason the ratings are so bad. tiger really drives the ratings and they need somebody who can really cap sure america and have them tuning in every week. stuart: but he has to win consistently. it would help if it was american. stuart: you have to have a personality, effervescent, outgoing, or mysterious. >> you need star power. stuart: jeff foster, "wall street journal" public recalling the younger generation lazy. not bad. thank you very much, sir. iraq, terrorists dividing the country, could attack baghdad any moment. the leader of that group was released by the u.s. in 2009, the judge on that is next. now we are here, we just got the news moments ago. what is your reaction to this? >> president obama, thank you. great job, dude. ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ charles: time now to make you some money. i was a first talk about it, the stock exploded after the target thing and it has imploded getting an upgrade. calling it the best in class, hitting the target is 45. i think that target happens to be very low, the short interest on this thing is relatively high. it will grow 55% over the next five years. getting squeezed once it closes above 40. in a quick move up to $50. here is the reality, guys, the security internet security claiming 95% of companies and governments have been compromised. maybe that explains lois lerner e-mails. yes, it is risky but i think you have room to the upside. it's data mayhem. but airlines running hp end-to-end solutions are always calm during a storm. so if your business deals with the unexpected, hp big data and cloud solutions make sure you always know what's coming - and are ready for it. make it matter. [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim from td ameritrade. stuart: brazilians getting extra vacation days this year thanks the world cup. >> you will never believe it. national holidays are nine, optional holiday seven, world cup holidays from june 12 all the way through july 2 you are working four full days. at how may days off, that is how many are working, that is it. a law passed that says if team brazil plays, workers get the afternoon off in one of the host cities, one of them as having a game that day, to have the gamey f stuart: i wonder is that because there have been a lot of protests about how much it is costing brazil, are they buying off the workers to stay home and enjoy it, it is on us? >> it could be to ease up on the traffic jams and transportation issues keeping more people off of them and tonight really bad weather in that area expected to be messy. stuart: a moment ago the video just to decide if you showing the world's greatest player scoring a fantastic goal. there he is. that is soccer at its best. thank you very much, indeed. let's get to tesla, a winner today. i thought it was something else. >> i got so pumped up watching the goal. up 3.5%. that is looking amazing here today. i like argentina, greek loss over the weekend, not good. back to tesla. good news for the patent sharing. they are cooperating together. stuart: i find a world cup far more interesting. i say teen usa wins 2-0, and you say? >> that would be great. i would like 2-0. i like it. stuart: there you go. i have to move onto something very serious, no fun here at all. the head of the extremist group isil sometimes known as isis. some call him the next usama bin laden. was among the prisoners released in 2009 from a u.s. detention center. all right, judge andrew napolitano is here. i don't know how you feel about taking not prisoners, but taking guys and putting them in detention centers, the legality of that. what do you feel about the release of these people? >> i think they should have been prosecuted. the obama administration have thumbed their nose that basically say these people are prisoners like anybody else, tried them or release them. they made a value judgment that if we try them we will reveal the circumstances under which they were arrested. the circumstances under which they were interrogated, we tortured a lot of them. the information they gave us, some of it was valuable, some of it was junk. you have information that shows they have committed serious crimes, put them on trial. the government decided it is better to put them back in the theater of war where they can say i will see you in new york. stuart: he did say that. what about the argument you put them on trial, wanting to put them on trial in manhattan, new york. everybody knows that would have been a travesty. try to turn it into a joke. >> there have been a half dozen, the press didn't even cover. serious terrorist activity that have taken place a couple blocks from where we are now. the resulted in convictions. it has a far better track record than the federal prosecutors in the military at gitmo do. stuart: didn't the trial start a long, long time ago the top guy had been in gitmo for a while. his trial has not started in that. because the military moves at a snails pace and the civilian prosecutors move at a normal expected pace, if they were given charge of these the cases would have been prosecuted and probably would have been convictions. is it illegal to release a person from prison? if they are acquitted, you release them, but released them uncharged and untried when you know they have committed a crime but afraid to promote the case, that is a crime. i condemn the decisions. both presidential administrations to be afraid to try these guys. it is a crime because it provides material assistance to a terrorist organization by sending their leaders back to them. that is a federal crime the bush justice department and obama justice department have successfully prosecuted americans for committing. stuart: you know the administration has done, it killed them with drones. no trial, you just kill them. >> wherever the administration goes, wherever the drones go, the constitution goes. they should work with the constitution instead of being afraid of them. wasn't there another thing we were going to talk about? i forgot what it was. stuart: we ran out of time, you drowned on. >> that was a good one, philip! stuart: if some illinois democrats get their way, the state's taxpayers get a hook for president obama's presidential library. to the tune of $100 million. taxpayers on the hook in illinois for that. the full story after that, but sad news, sad news from a world of baseball. espn reporting hall of famer tony gwynn has died. he had been battling cancer the last few years. he played 20 seasons for the san diego padres collecting 3100 hits. tony gwynn was 54. when folks think about what they get from alaska, they think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america. thank ythank you for defendiyour sacrifice. and thank you for your bravery. thank you colonel. thank you daddy. military families are uniquely thankful for many things, the legacy of usaa auto insurance can be one of them. if you're a current or former military member or their family, get an auto insurance quote e wh9o st fe.current or former military member or their family, stuart: illinois taxpayers be paying up to $100 million to help president obama's presidential library. remember, already in massive financial trouble, so why add to the burden? vice president of the illinois policy institute. why don't they just ask for donations? that is what they did with everybody else's library. why not? >> the president is the mall prolific fundraise fundraiser, he could easily fun racisraces by himself. the foundation would even consider taking taxpayer funds for working class families is really outrageous. stuart: this is a bill that is before the illinois house of representatives, it is before the state legislature, it is a bill that would appropriate $100 million. this is going forward, is that correct? >> today is the day the administration decided we will go to new york, hawaii, it does look like the library is coming to chicago against the proposal coming again. illinois is broke, chicago is broke. we have no extra funds available for this and they can it is something that he could easily fund raise for himself. stuart: you've got 15 seconds, i can't believe this bill passes. will it? >> you'd be surprised. obama is a product of tax-and-spend illinois. they like to cut crony deals, they like to reject it and taxpayers have said no thanks. stuart: thank you very much indeed. the man who invests in iraq says it is a good time to put your money over there if you are adventurous. that is the understatement of the day, yeah, isn't it? 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another big-name company leaves because of high taxes. the irs conveniently loses potentially incriminating e-mails and the president takes a vacation, plays golf, raises money, makes a speech about climate change. here comes the second hour of "varney & company." headlines, here it comes, islamic civil war, sunni versus shiite against the oil patch could end up hurting stocks. the dow is often 40. watch out at the pump as well. how we are paying for obama's failures. iraq a good place and time for adventures investors? we will check that out for you. and would you pay this $25 per trip to ensure against a long flight delay? it is a warren buffett policy. this is the session low of this day, down 45 points, 16730. iraq is a problem for stocks today. a series of records last week down to $19.32 right now. oil on the way up 107 earlier, just a tad shy. the 10-year treasury is an interest rate barometer moving further down in terms of yield, a negative sign for the future of the economy. medical device maker leaving america wanting lower corporate tax rates out of ireland. they are getting together these two companies. a big winner, they are heading out of therefore lower taxes in ireland. of the situation in iraq quickly deteriorating. taking control of another city, and they are headed to baghdad. posting pictures of a mass execution of iraqi troops maybe 1700 iraqi soldiers. all of that going on, where is president obama? he is golfing, southern california be at now just listen to george bush in 2007 when he predicted exactly what we are seeing today. >> i believe we can speak in iraq and i know we must. so we are working to defeat al qaeda and other extremists, aid the rise o iraqi government second protect his people to deliver basic services against these extremist and radicals. but as we will create the conditions lower troops to begin coming home while securing our long-term interest in iraq and the region. stuart: that was then, this is now, and we have what looks like a full-blown civil war across the middle east sunni versus shiite. here chaos. kt mcfarland is here. i am saying, it looks to me, it looks to me like sunni versus shiite all across the region islamic world and absolute chaos and this is a bloodbath. you say? >> absolutely right. it will go on for a generation. sunni versus shiite, to be fueled by arab oil money and could potentially become a nuclear feud in the next decade. we won them, we lost them, now we will get involved again with iran? i think we have to think outside the box, decide what are our strategic interests, how well can we achieve this? stuart: i don't know what else we can or should do, what happens in the future. look at jordan and lebanon being destabilized. that puts it in grave doubt. we don't want the terrorists and it's really want to protect them to exist. what alternative do we have for middle east oil? american oil, develop north american oil and natural gas, work with our allies, canada and mexico. that only self-sufficient in our own, but we can export to the world. stuart: it just sounds obvious, doesn't it? why isn't the president moving in that direction? >> rarely in life to get something this obvious, this easy? in three years we can go for natural gas importer to exporter. lot of experts feel we could have enough for ourselves. the president doesn't want to do it, they will replace all fossil fuel with solar panels and wind mill. stuart: i cannot believe they have that much hold over this presidency. you feel this more money on the other side and want to exploit natural gas is, get the oil out of the ground that is ours? there is a ton of money on that side of the fence, isn't there? >> was going to happen in the middle east is the sunni and the shiite need money to protect the fight. they will target each other's oil refineries, oilfield and if you have a situation where the price of oil, the price of gasoline starts going through the roof, everybody rethinks everything. stuart: you think they will target each other's oil? >> absolutely. they are already starting to see if each other's oil money. that is what the isis, this new rebel group has done. half a billion dollars of oil money in one of the banks and i think what they will do now is, stuart, if you think you can get rid of the other guys funding source, you win the war. throughout the middle east. stuart: it hasn't so far. giving speeches on climate change. get the oil, it is ours. >> is only going to get worse. stuart: you spelled it out nicely. i'm going to stay on iraq. $107 per barrel. gas prices not much of a reaction just yet. chief economist for the heritage people. my basic question is this, are we about to pay for us americans, consumers in america, are we about to pay for the president's foreign policy mistakes? >> i think we probably are, stuart. to add one thing on to what she was saying why would the president do thiscommittee surrounded by the money, i think the answer to this is barack obama is a true believer. look, we know from passes to the last 40 years every time there is an upheaval, gasoline price spikes up. up to $5 per gallon. as we see these turmoil includes the middle east, higher gasoline prices, there is a strong negative correlation as you know, stuart, between gasoline prices and how the economy is doing. a higher gasoline price is essentially a tax on the american economy. stuart: do you see this as a black swan event? zaps you on the side of the head by the economy or the stock market. does this rise to that level, a black swan level? >> i think if you look at the oil price last three or four years, is priced into the price of oil, i agree that this is something that's going to cause real problems for the economy, but it is half expecting this which is why you haven't seen the robust economic growth. if we were to do what katie was talking about, continue to drill for oil and gas and coal, that would be not committing ourselves. that is why it is so important to become essentially an energy freezone. we wouldn't have an economic recovery at all today over the last three or four years but was not for the energy industry. why would you stick a knife in the back of the carbon industry when in fact this is causing the road. he probably would not have been reelected. stuart: image where we would have been if we had a cheap energy policy. it will be cheap. if we had that can imagine with growth rate we would have. >> it would be much higher. the reason we have seen a manufacturing renaissance this country is precisely because our natural gas price has fallen. if you put a tax and natural gas which is essentially what this carbon mandate is, it is going to make things more expensive in the united states and it will cost jobs. there are no two ways around that. stuart: thank you very much. let's stay on iraq. both our previous guests said this oil is and is not going to go away, in fact it may very well probably get worse, what is your take on that? >> i absolutely agree, think it will get worse and staying in the region for a number of years i would also agree with them and as far as a black swan event goes and while you may be surprised the market isn't reacting if back in history look at some of these things that have shaken the market, sometimes we don't react right away. this could be one of the times with the market ignore bad news but ultimately it will crumble. we have thrown everything and the kitchen sink to this economy trying to get some sort of a recovery and the best we can muster up his 2%. now you take that and go back to what i was talking about on oil. what happens when we get $6 per gallon? the opinion poll president is going to change his mind at all the resources. once he gets to $6, absolutely. he will change course whatever the people are saying. when you get to $6 per gallon, that consumption everybody is paying on a weekly basis not only the food prices going up behind me will ultimately affect his policy. stuart: let's just see. we will see you again real soon. back to stocks, yahoo, that stock down, alibaba is the reason. you have to explain all this for me. nicole: yahoo at $35. down about 5%. we know that everybody knows if you have been watching the fox business network, yahoo much of the stock price moves because of the stak state they have in alibaba. today we got some news about alibaba revenues flowing and a quarterly report with slower revenue growth for alibaba that has yahoo has 23% stake in alibaba so yahoo pulls back. a three-year chart of yahoo, yahoo had been hovering around 12, 13, $14 then the whole alibaba thing began and now everybody is eagerly awaiting alibaba and the stock really is running up. almost $45. stuart: germany scored on a penalty kick against portugal, they lead 1-0. a guest who says if you aren't of interest investor, now could be the time to put your money into iraq. yes, she really makes case next. 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(anncr vo) innovations that work for you. that's health in numbers. unitedhealthcare. stuart: the administration is contacting hundreds of thousands of people with subsidized health insurance to resolve questions about their eligibility. elizabeth macdonald is here. let me see if i have got this right. hundreds of thousands of people, millions of people got a subsidy applying for obamacare, and they got a subsidy. now we find out they did in supply the information about income for example about whether they were eligible. >> -- stuart: now the irs is saying we will ask you about did you commit fraud. is that what is going to happen? >> the government has to double and triple check if these people are eligible. the bad news is the health care website, health reform websites are so chaotic and in such disrepair as of the state that they are having difficulty checking whether these people deserve the tax credits to buy insurance. we can't really check whether or not they deserve them, their identity, whether their job gives them coverage. here is the thing, tax credit fraud is an endemic. talking $5 million potentially, i'm sure some of that could be given to the people who didn't deserve it. stuart: they will say we can't object, so we believe you. here is the subsidy. >> we have to wait until april next year to see if they clawed the money back because he was erroneously given out. stuart: don't worry the consumer has been protected, you will get your health care. >> what about the taxpayer? still waiting to see if he will weigh-in to protect the taxpayer here. thank you very much, liz macdonald. let's go back to iraq. says this right now could be the right time for adventurous investors to put your money into iraq. joining us now in iraq. what? you run a fund come you collect money in america and you invest it in iraq, you are the guy who brings it all together and laces investment. american dollars go over there, right? $5 million over there, correct? and you think now is a good time to add to that, now is a good time? >> i think it is a very good time, stuart. we are sitting on a decent amount of tax right now. getting into the market as soon as tomorrow. in the local stock market in baghdad, the iraq stoc stock exe it is called. the market down 11% since the beginning of this recent violence in the middle of last week but the currency has been solid for the last few days. it is an oil currency, remember. irarking the big exrt bm t its a racte uapumy mey io ir esseiallputtg it oil eration essentially, that is what i am doing. can i t my money out whenever i want it? >> we haven't seen any disruptions over the last fe days. stuart: if i give you a million dollars today and you put it into iraq tomorrow morning and i want it back today after, can i get it back? >> we haven't tried it this week i will confess. we will be sending money in the short-term, not taking it out. stuart: is there any question whether i can get it back or not? >> and all did. i have had, dealing with the right people, knowing whoeand we have seen no trouble at all with others. i think it is a matter of getting. of course it is a risk, everything is a risk. stuart: a greater risk i take the greater reward i expected if i give you a million dollars today and you put it in iraq tomorrow, give me a rough idea what reward i can expect. >> i think over three to five years view which is how we look at things we expect to make two to four or more times our money. stuart: so you are offering a doubling of my million if not a quadrupling of my million. >> that is what we are hoping for. most of the money i managed are for those close to the firm or two partners and founders like myself. if things continue to soften this month, soft and 10%, 10% is not much. >> but why double or quadruple, what is the rationale? >> indeed over the long term all of these things are driven by the underlying profit of the company's that you own. we own a small amount of companies to players who prove themselves able to make money in a difficult market. the advances last week have been very spectacular, but we have to look at them closely to understand the real connotation. you can get into the politics if we have time but a lot of this is overblown, frontier market investors are natural contrarians, we go to places other people don't like and usually don't like them for a reason. >> this is a civil war wit terrorists. the terrorist part is accurate, 45,000 of them, half of them are foreign, they don't have a chance of holding any of this new territory. 4000 people a half art tunisian, fat chance. stuart: it is interesting. do you have more time than we were allotting to you in the first place because you are interesting. >> thank you, it was a pleasure to be with you. stuart: my take on the presidential golfing, e-mails and more. that is next. are the largest targets in the world, for every hacker, crook and nuisance in the world. but systems policed by hp's cyber security team are constantly monitored for threats. outside and in. that's why hp reports and helps neutralize more intrusions than anyone... in the world. if hp security solutions can help keep the world's largest organizations safe, they can keep yours safe, too. make it matter. when folks think about wthey think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america. peace of mind is important when so we provide it services you bucan rely on. with centurylink as your trusted it partner, you'll experience reliable uptime for the network and services you depend on. multi-layered security solutions keep your information safe, and secure. and responsive dedicated support meets your needs, and eases your mind. centurylink. your link to what's next. what happened? 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i just don't believe it. the move onto the presidents we can vacation. iraq falling to pieces and he played golf. he gave a commencement speech blasting climate change deniers. you can argue the president is in command of the matter where he is, you can argue that, but are we forgetting how this looks to our enemies and how it looks to our friends? why is he going on about climate change. issues divisive does not inspire confidence. it inspires contempt. they government thinks the unbelievable excuse they computer crash wiped out vital evidence, you lose trust, you lose credibility. when the president these off in california as he asks iran for help in iraq coming know it has become a farce. the wonder we are all tuning out far better to enjoy father's d day, the world cup and all the other pleasures that distract us from the presidents embarrassing failures. my dad has aor afib.brillation, he has the most common kind... ...it's not caused by a heart valve problem. dad, it says your afib puts you at 5 times greater risk of a stroke. that's why i take my warfarin every day. but it looks like maybe we should ask your doctor about pradaxa. in a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...was proven superior to warfarin at reducing the risk of stroke. and unlike warfarin, with no regular blood tests or dietary restrictions. hey thanks for calling my doctor. sure. pradaxa is not for people with artificial heart valves. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke. ask your doctor if you need to stop pradaxa before surgery or a medical or dental procedure. pradaxa can cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding or have had a heart valve replaced. seek immediate medical care for unexpected signs of bleeding, like unusual bruising. pradaxa may increase your bleeding risk if you're 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners... ...or if you have kidney problems, especially if you take certain medicines. tell your doctors about all medicines you take. pradaxa side effects include indigestion, stomach pain, upset, or burning. if you or someone you love has afib not caused by a heart valve problem... ...ask your doctor about reducing the risk of stroke with pradaxa. [ male announcer ] it's one of the most amazing things we build and it doesn't even fly. we build it in classrooms and exhibit halls, mentoring tomorrow's innovators. we build it raising roofs, preserving habitats and serving america's veterans. every day, thousands of boeing volunteers help make their communities the best they can be. building something better for all of us. ♪ stuart: i have a news alert announcement for you. germany just scored a second goal, germany two, portugal zero. this is good news for team usa. go pro teaming up with bmw showing off a new feature allowing you to control your go pro camera from the dash of your beemer. here with social radar, welcome back. first of all, if i buy a new beemer they don't give me a go pro camera, they give me the app. >> that is true, but you probably already have a go pro if you'rif you are buying a bee. stuart: this app on your -, you press it? >> you mount it on your car, plug-in the phone and the consul and in front of you in front of your fingertips you can control where it is looking, domain, to all these kind of manual controls in the car. you are touching one or two buttons and you are either zooming in or zooming out. easier than controlling it on your phone or on the camera itself. stuart: this is their name, their camera lined up with a high-quality german manufacturer who will put this app in all of their new cars. >> it will be on any of the new consuls of the new cars and you just have to upgrade the app to access it. stuart: i could theoretically have the camera pointing backwards and slid my kids are up to in the back. >> you could be doing selfies or whatever you want to do. people love taking a bmw to a track driving as fast as humanly possible and videotaping how fast they got to drive and that is another big huge case for this. on a closed track. called a track day. not like going to the supermarket. is that how you drive? stuart: let's change the subject for a second. it is a big deal because if bmw does it, that will encourage others to do it. it reminds me of sirius satellite radio. when a broken. car market everybody had it on there --dash, every new car had it and that was a huge boost of satellite radio. >> some cars already have it. the video quality wasn't necessarily as great, great brand name of bmw together. more of this coming from other manufacturers. >> i'm just wondering how you can do it. stuart: watching the kids in the back. >> one of my friends via tape his dog coming out of the sunroof of his car. a great sharing experience. stuart: berkshire hathaway offering to travel insurance called air care. you can get paid $1000 if you are inconvenienced by a delayed flight. john, welcome to the program. let's just take me through this. flyi fw rk tloda. hoand missed connen,y two speawas laye the thplanrwoe bin et $10 desiteto your paypal account or to your ectronic funds transfer account immediately. stuart: so i have got to be stuck in the plane for two hours. >> if you miss her conn stuart: no matter what. >> but you can't do it yourself. you can't miss the connection because you want to make $500. stuart: i understand that. a simple claims process? >> it is super simple. in many cases we deposit the $1000 or $500 or $50 into your account before you even make contact with us because we monitor all of our flights, all of the connection flights. when you buy the policy you give us the flight numbers of all of your flights, we track them, we know exactly what is going on and not only that, we take care of you. you will be landing and you will get a text and the text is going to say stuart, your flight is miss connecting, we have rebooked you are a different flight, go to gate number such and such, and if you miss that flight because of a problem with the first flight, we will give you $500. we are a warren buffett company. he is great. he is like the godfather. stuart: you must have done the math on this. you don't just go blindly into this as some sort of charitable operation. you know it'll pay off if $25 per trip a sufficient number of people will fly with no claim whatsoever to make this worthwhile. you must have done the math. >> absolutely, we have spent five years looking at market research, statistics, faa statistics and then we gave it a bunch of actuaries, so the actuaries actually totally did the rate. stuart: suppose i go to newark airport this afternoon and take a united flight to fort myers, where do i buy the insurance? is there a little kiosk or something at the airport? >> you can buy it on your smart phone, you can buy it on the internet. or you can just give us a call. stuart: how to have a prearranged paypal account? >> not necessarily. you can pay credit card. you can even write a check to us. stuart: do people do that these days? >> no. stuart: that is intriguing, that really is intriguing. >> it is about making people happy. what do you think of? stuart: stop. you're not running a charity, not the goodness of your heart, you are trying to make money. you make a lot of money. >>hopefully we will make a lot of money and save you a lot of money in frustration. stuart: all i want is my flight to get there on time. stuart: we help you with those flights in the event they get cancelled because of snow or whether or mechanical problems we help you get on the next flight and you don't have to get off the plane, stand in line, wait for 20 minutes and get up to the counter and they say all the flights are full. we've already taken care of you. stuart: a good salesman, you have my number on this one. it is berkshire hathaway travel protection. >> underwritten by berkshire hathaway specialty insurance specializing in new ways of doing business. stuart: thank you very much, indeed, appreciate it. the dow jones does the average down 21 points. really this is all about iraq, iraq is keeping the market in check, think the market will be much higher of it were not for iraq. is iraq a potential black swan event that will really take it down? 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(anncr vo) that's health in numbers. unitedhealthcare. stuart: the real halftime report, the monday edition. nicole petallides at the exchange, liz macdonald is here. keith, to you first, the events in iraq. some bears think this is the black swan event taking the market straight down. what do you say? >> i think it's more like godzilla walking out of the persian gulf. america is going to pay a terrible price for some badly flawed policies in obama's administration. stuart: but do you think it can take the whole stock market down at some point? >> i do if the conflict spreads. it hinges on whether or not they can stop right now and contained the word. stuart: here's what else we have got for you. $107 per barrel but somehow iraq has not had that big of an impact on gas prices. will it have an impact on gas prices? >> if the terrorist take over the southern oilfields with three quarters of iraq's reserves are according to the estimates. keith makes a good point, could be problematic in the short term but we are hearing from and goldman sachs saying the development, canada oil wrapping up since the arabs brings broke out, the output is about double since the last three years. that is replacement three and half million barrels that had been knocked off-line not just iraq problems but also libya, venezuela and nigeria problematic as well. stuart: could it hit $5 per barrel gasoline? >> i do think the. we, demand and supply. traders are not that aggressive yet. stuart: michael coors in the red, is that the stock is down or the company is not making a profit? nicole: the stock is down. the key when you look at the technicals is below the 50 day moving average. you cannot deny michael kors outpaced its competitors particularly coach, it is a standout, revenue growth over 50% year-over-year, north america soaring, they give their conservatives and their guidance however it still is a stellar performance, you can't deny it is the number one thing people want. stuart: they really do. one last one. medtronic over the merger. can't blame them, can you? >> more power to them. more profits to the bottom line. the only people surprise of the politicians in washington who can't understand why money goes to where it is treated best. stuart: part of a trend. just before we leave you, at the half time it was germany three, portugal zero. bibig-name you know, goodyear up in a down market. this is the barons bounds. phil roosevelt is here. you wrote the column in barons this weekend. you like goodyear, up it goes on this monday morning. why do you like them? >> goodyear is a good play on rising car sales. in the u.s. car sales have gone from around 10 million in 2009 during the recession to about 16 million per year now. what that means is a lot more cars on the road that will need new tires typically every three years people buy new tires. stuart: that simple. >> also happening in europe. stuart: that is astonishing, tell me it was up 4%. you did the math on car sales and tire sales, the thing goes up 4%. >> we look at the stock price, it is quite cheap, a nice time to get in right now. stuart: i am told the average age of cars on the road in america today is as high as it has ever been. 10 years old, the average age. that would factor in, wouldn't it? >> that is a good way to make an old car feel new. by some new tires. stuart: terrific. thank you very much for joining us. starbucks offering a free college education online education, debt free, no need to pay it back. a good story explained next. are the largest targets in the world, for every hacker, crook and nuisance in the world. but systems policed by hp's cyber security team are constantly monitored for threats. outside and in. that's why hp reports and helps neutralize more intrusions than anyone... in the world. if hp security solutions can help keep the world's largest organizations safe, they can keep yours safe, too. make it matter. they're the days to take care of business.. when possibilities become reality. with centurylink as your trusted partner, our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. every day of the week. centurylink® your link to what's next. humans. we are beautifully imperfect creatures living in an imperfect world. that's why liberty mutual insurance has your back, offering exclusive products like optional better car replacement, where if your car is totaled, we give you the money to buy one a model year newer. call... and ask an insurance expert about all our benefits today, like our 24/7 support and service, because at liberty mutual insurance, we believe our customers do their best out there in the world, so we do everything we can to be there for them when they need us. plus, you could save hundreds when you switch, up to $423. call... today. liberty mutual insurance -- responsibility. what's your policy? stuart: work at starbucks, earn your degree for free. that's intriguing. lauren has details. >> 135,000 starbucks workers to be eligible for this. junior, senior year online at arizona state university completely free. there's a catch. there is no catch, that the catch. you don't even have to work at starbucks. paying for you to finish your degree or give a discounted rate to start your degree. and when you're done you don't have to work there. stuart: you work at starbucks, you are eligible for a free online college degree from arizona state via starbucks. they pay. that is going to cost starbucks an arm and a leg. >> $30,000 per worker. it is completely generous by the company but for them they are probably saving money because they're thinking a workers will want to stay and can move up in management and don't have to train. it definitely save them money. stuart: they're holding a news conference as we speak some more details are coming out but it sounds like a terrific deal. the stock is up just a little bit. thank battle brewin chicago betwdonald tru and rahm anuel. what is this all about? >> they don't like the sign. i come to smoothly from the 164 of the trump tower. if you look from a unique perspective we give you, can you see me waving from the top here? the building is beautiful, but they don't like the sign. rahm emanuel says it is tacky, huge 20-foot tall trump letters. he wouldke mr. trump says i got my permit, city council approved it, he can stick that in your ear. it caused quite a debate. stuart: i am flied out in favor of donald come by this one. if he got the permits, put it up, be proud of it. last one to you. >> look at this, wrigley building, tribune tower right there, old man wrigley was pretty successful. he never saw fit to put a wrigley sign on top of his building and everybody knows that building, it has lasted forever. stuart: i am still with trump. more "varney" next. when folks think about what they get from alaska, they think salmon and energy. creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america. stuart: team usa takes on ghana, critical game, ghana knocked america out of contention in the past two world cups. you care about this do you? >> not as much as you do . stuart: now, still with us we have elizabeth mcdonnell. are you watching the big game team usa, ghana tonight? >> no g5 why not? >> i'm not interested. i'm going to watch my game of thrones finale. stuart: please read lauren? >> i'm watching. i'm very interested. go team usa. stuart: halftime score germany three portugal zero. good news for team usa. >> i'm still not excited to that you would be if you were german. now here's deirdre bolton. deirdre: i'm going to be watching or at least taping at three in the meantime medical device maker medtronic buying covidien for close to $43 billion, in part to sidestep us corporate taxes, other companies sure to follow. investors have been calling out for more details about alibaba's ipo, the chinese e-commerce giant getting out some information finally. we will bring it you and go team usa, we were just talking about that was stuart, it is the first match for the american world cup today. the cheap world business officer from new york city will be joining us shortly. in the meantime, investors have been asking for more details on the chinese internet company alibaba, the fact that it's going public. it is huge as we have been covering bigger than amazon and ebay combined to read the e-commerce site releasing data points, sales figures for the shopping site and then it list of power players from inside the company. nominati

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