volker has since been won and every now and then like today, calls that victory into question, at least until the next number comes out. the consumer price index rose 4/10ths of one twice, the largest increase in more than a year with prices for gasoline, food, clothing and just about everything else moving higher last month. a little inflation is not necessarily a bad thing. the goldie locks number for the cpi is 2%. today's figure annualized is well above that, of course. so how will the fed process that number as it he -- begins the two day rate setting today. >> inflation in the united states surprised to the upside in may. immediate concerns turn to the impact on the price to consumers and whether the federal reserve could be forced to raise interest rates. the biggest monthly jump in a year and 2/10ths above wall street's expectations. for the first time since february 2013, the core inflation rate and headline rate that includes everything are at or above 2%. that's close to what the fed aimed for. they began to worry what if prices keep rising beyond the target. >> they talk they want inflation higher but how much? is above 2% bad or is above 2% okay for some period of time? it's unclear as to the goals with their goal to inflation, and those goals are, you know, then unclear to people who are trying to figure out the timing. >> part of the concern, price gains were broad based. airline fairs grew on the month. home utility costs up 1% and prescription drugs, food, and gasoline prices surged. an economist writing quote, with staggering wages in the u.s., price increases will act as a direct tax on consumers and curtail spending if they persist. the fed we began the two-day meeting on tuesday and pledged to keep interest rates low while trying to raise inflation but fed chair janet yellen will be questioned if she and the fed thought through what happen to interest rates if the economy raises faster and higher than everyone expects. i'm steve liesman, for "nightly business report." american business leaders are watching the health of the economy. according to a new survey, more are optimistic about hiring in sales but some say their biggest concern comes from washington mostly because lawmakers haven't made any progress on changing corporate tax laws or business friendly legislation. >> we need an investment climate that has companies wanting to locate headquarters here, not elsewhere a tax structure trade laws. it is effectiveness and we aren't very effective as a government and with a growth strategy where i think trailing miserably. >> the survey found that more than half of u.s. companies don't expect to increase capital spending this year. green hours across the board on wall street today describe the jump and a sizable drop in new home construction in may. bond yields moved higher giving the sector a boost and airline stocks rose after the price of oil dipped a bit. the dow today up 27 points, nasdaq up 16 and s&p popped four, just ten points shy of another historic high. another big top pick of conversation on wall street today, insider trading, an exhaustive new study concludes a quarter of all public company deals involves some type of insider trading. that's one in four. the report conducted by professors examined transactions going back to 1996. andrew wrote about it in today's "new york times" and joins us from new york. this confirms that insider trade sg a lot more common than most people were led to believe, i guess the question is, if it's this purvey save, why are they not on top of this. >> we knew or thought there was a lot of insider trading going on. we seen the oliver stone movies, however, i don't think it was appreciated to this degree, 25% of the transactions and i covered mergers and accusations for more than the past decade. i never seen a study that started in 1996 and got to 2012 and it was remarkable in part by the way, they say statistically the chance for randomness, the chance that the stock loved randomly, three in one trillion. your odds would be better at the lottery. the question then becomes, as you said, why hasn't the scc been able to pursue the cases? i think the answer is funding. it's funding. manpower and resources and the study does a good job of looking at the matt professors did and comparing it to the scc. the scc went after about 4%, maybe 5% of the nearly 2,000 deals that they looked at. so it does raise that question. by the way, it's one thing to see the abnormal trading. it's another thing to then actually be able to pursue it and in a resource constrained environment, you see them go after big deals, big names, big headlines as a detour rant but maybe you need to go further down the chain. >> let me understand, they went after 4 or 5% of the total deals or 4 or 5% of the 25% in which insider trading -- >> there was -- my understanding is there was litigation of some sort involving, i think, between about 4 and 5% of the total deal volume that they looked at. but that is not 25%. >> no, that's -- >> there is still a 20% spread and then the question, policy perspective, do you take a mayor rudy giuliani approach. options are the stocks themselves. >> that's the fascinating part. we often look at stock before a transaction. it's not the stocks where the real action is taking place. it's in the options. it's people taking out of the money options and puts ahead of the transaction where they can leverage the bet and frankly. s fcc isn't as focused on that as stocks and also, not focused on transactions that don't get completed. so oddly enough, there are lots of deals that get announced and not completed. if they don't get completed a 22 times less chance that the fcc will go after them. >> andrew, we ran out of time. quickly, is there a silver lining? can we expect changes? >> the silver lining is the fcc is taking this more serious. they are getting involved with the technologies that helped the u.s. government go after terrorists and really crunch big data numbers and might be able to do it this way. >> thank you so much. grim outlook about oil growth targets in iraq as global demand picks up. the international agency said iraq's targets for growth in the oil industry are at risk as escalating violence and political instability threatened supplies. iraq, the second largest oil producer in opec. the path of violence by islamic rebels reached baghdad today following the seizure of key northern cities but as the report from iraq, no region out country is safe from the unrest of its impact. >> reporter: a car bomb exploded in north baghdad today in a market frequented by iraqi shiites. it could be a thing to come as the rebels from the sunni sector of islam push further south into a province north of the capitol. baghdad is looking like a ghost town as residents flee. a program appeared abandoned and shops with food and provisions with the holy month stood empty. they are trying to escape v violen violence. they are trying to deal with the patients injured and the 35 beds of the city's only trama hospital are not enough for the dozens of patients that need to treat. mosul a city captured is only 20 miles that way, that's why about 2,000 iraqi haves poured into this camp accomplished by the united nations. as you can see, the conditions are brutal. living in tents. there is a couple stops with community running water. they have to line up in the blistering heat to get mattresses, blankets, pillows, portable grills. their biggest issue is they don't know when they are going home. also north of baghdad, iraq's biggest oil refinery was shut down last night. it's foreign staff evacuated. it's one of the price of the oil. the company increased production. >> bp's assets are down in the south, down near the kuwait boarder. they are a long way from the trouble of production being increased per response from the government. it's a long way. we're vigilant. we haven't missed a beat so far. >> reporter: the white house announced president obama will meet with leaders of congress to consult them about the situation in iraq, as administration weighs what the u.s. response should be. for "nightly business report". still ahead, revolutionaries and vis narcoticries, three companies that could alter the way corporate giants do business. general motors ceo mary bar -- barra is set to testify over a faulty switch. the defected is linked to at least 13 deaths. bar barra outlines the policy changes gm has made and a victim's compensation fund that will process claims starti augut 1st. there is a similar defect in 3.4 million cars that causes the engine to stall if the key is jarred. businesses like oobre, lift and wings are getting bigger every day but could be facing a pileup of regulation, including being banned from taking riders to and from san francisco's airport. the california state legislature took up two bills today aimed at making the businesses safer and that includes requiring that the cars are higher to drive passengers that meet all state safety standards and carry commercial insurance coverage for the entire time the drivers have the app turned on, not only when they have paying passengers on board. services like oober are shaking up the traditional business model like limousine companies and today, cnbc that produces this program unveiled its disruptor 50 list of the most innovative, private companies that are transforming business and taking on long established industry giants. julia boorstin looks at the biggest disruptors of all. >> reporter: from spending you to space to incurable disease, the disruptor 50 are ambitious companies taking on the public giant. here with the winners, two of the top three are shaking up retail. in the third stop, epsy is helping independent artists to reach shoppers around the world. with 40 million members buying from many active shops that lists 21 million items. founded in 2005, the company raised $100 million to build on the vision of rei'minreimaginin retail. designs and vintage inspired eyeglasses and sunglasses at a fraction of the cost. four other startups on the disrupter 50 list. >> a lot of these companies are unique. there is not sort of five of them in the category. they are clear market leaders. that's where the premium evaluations come. they are totally rethinking their own categories and have monopoly characteristics. >> reporter: the four-year-old upstart raised $116 million to take on the world's largest eye ware company with over 80% of the market and it's is successful, it spawned copy cats and elon musk, spacecraft and more. >> what we've conthus far is relatively minor. it's revolutionary where what we hope to achieve and perhaps can encourage the rest of the industry to do is achieve full reasonability with rockets. that's never been done. if we achieve it, at that point it's really quite disruptive. >> the 12-year-old company raised a quoter billion in venture capital funding, disrupting the transportation giants including boeing, la kweed martin and more. as musk and other disruptors shoot for the stars, they could be the next high flyers. for "nightly business report", i'm julia boorstin in new york. >> for a list of all 50 companies on the list, head to nbr.com. a senate hering on high frequency trading drove three financial stocks higher. shares of e trade, charles swab and td ameritrade and an exec sieve faced real tough questions from senator carl leaven. despite that and maybe because no da fintive regulation came, shares of e trade popped almost 8%. td ameritrade up to 31.58. the way to sthhip is changi. ups will charge you according to the size of the box, not just how much it weighs. the new pricing model will lower the fuel costs. it's rival fedex made a similar change last month. they edged up to 101.61. the device might have an kp exclusive carrier. at and t will be the only carrier to carry amazon's new phone. shares were off slightly. at&t rose slightly to 35.02. dividend news, shares of bank corp, the payout will be paid to shareholders in july. the stock up slightly $43.13 was the finish. adobe systems reported better than expected quarterly profit and photo shop was helped by strong growth in subscription sales. shares rose after hours, as you see on the graphic. during the regular season, the stock was off at 67.54. some encouraging news abo, americans than ever are donating to charities. more on the surge of generous giving. >> reporter: americans are opening wallets. charitable gifting in the u.s. hit record levels topping $353 billion marking the fourth straight year of increases. the gains came from individuals, not corporations thanks to gifts of $80 million or more from the wealth through but the kwifing was targeted. education, health care and the arts all saw increases while giving to soup kitchens, homelessness and religion declin declined. >> the groups that did the best were education and arts and that's because the wealthiest are giving generously and tend to favor those causes. so we saw mega gifts, multi million dollar donations being made to those causes. >> reporter: many thought the numbers would be bigger. conventional wisdom holds the charity generally follows stocks but the 4% gain in charity was well below the double digit market gains and the gains in household wealth. >> the u.s. remains far and away the most charitable country in the world. the next highest is the united kingdom. for nightly business report, i'm robert frank. >> coming up as country's compete on the world stage of soccer, we continue to look at some of the best global rivals in the business world. tonight, apple versus samsung. soccer fans are still cheering the u.s. teamest victory last night. china plays tonight. they face each other as nbr stages its world cup, the ultimate stock cup comparing corporate rivals that go head-to-head on the global stage. last night it was coke versus pepsi and tonight, apple versus samsung. say the name apple and there is something magical about it for gadget lovers around the world. no wonder it was ranked as the world's largest brand ahead of coca-co coca-cola. since being founded on april fool's day 1976, head quartered in california, apple has sales of more than $170 billion last year. over the years, apple's core has morphed from personal computing to mobile but the mission stayed the same. invasion. it's ipods, iphones, and ipads are not only easy to use but stunning to look at. samsung challenged apple in phone technology and design. over the past two years, it captured the title of world leader thanks to the galaxy big screen phone. it rang up sales of $327 billion last year. it's now building the world's largest cell phone factory in vietnam and expanding into drug making and more. it's already a major player in everything from shipbuilding and construction to finance and aerospace. >> so who has the stronger game plan in this big match? apple or samsung? let's find out from david garrity. what is your choice here, apple or samsung? >> our choice hands down is apple. the september 2014 time frame with the introduction of the iphone 6 which will be a larger screened phone. a product category that samsung has dominated. the expectation, if apple is coming up with a bigger phone, you can see a fairly substantial upgrade not only out of apple's current customers but brands like sum sang. >> david, if somebody has new money they want to invest in a stock, you say put it in apple over samsung. why and how much growth you can expect in your investment over the next year. >> oh, we think bottom line looking at probably an 18 to 20% upside. a price level of about $107 a share including your dividend income but we would say more important, the earnings acceleration coming from the new product introductions and note that ahead of that, we're looking at a situation where for samsung, even though we do look for upside over the next 12 months, for samsung we note the company has been missing expe expectations and ramped down the smart phone production to clear out excess inventory and dealer channels. >> does this mean the fact that you like apple more, does this mean you dislike samsung? do you think samsung is a loser or not as big a gainer? >> both companies are growing because arguably, one or two how you look at it with smart phone categories, if you look at the companies, samsung has exposure to more commodities, whether semi conductors or televisions and you indicated the exposure they are diversifying into. apple is a premium brand and focused on consumer electronics. less risk of exposure. >> so, you know, david in technology there is always the question of who is more innovative one, whose the one that's going to, you know, come out with the jazzy next product. when you look at the leadership, we know tim cook of apple and the ceo of samsung less known, what has the better vision? >> cook is talking about the pipeline of products coming and arguably we'll look forward to seeing what those are. samsung has been a very great creator but not necessarily well-known for bringing in brand-new product categories. samsung is a fast follower. >> you sound very confident there will be a larger screen phone from apple. they have resisted. what makes you so confident? >> apple is responsetive to understanding what consumer pref ranss are. it's time to see from app al larger format phone and checks into the far east where they are building it bare it out. we think there is important capabilities like near field communications and we think will precision apple well in terms of being an innovator with payment solutions on this phone. >> david, thank you very much. match to apple tonight, david garrity with gba reserve. we hear which stock our guest prefers. what do you think? apple or samsung? which is the better buy. vote on our website on nbr.com. now for the results from last week's nbr's ultimate stock cup poll, that's a tough one to say, when we asked you to choose between coke and pepsi and the winner by a wide region in the global soda war is pepsi, which is interesting because our guest that night -- >> picked pepsi. more businesses, possible split up there. >> what do you think the viewers will say? i'm suzy garrib. >> i'm tyler mathisen v. a great evening, everybody, we'll see [ ♪music ] >> creativity involves lots of experimentation. sometimes artists use unusual methods, and unconventional tools. >> john chiara: i kind of made photography as labor intensive as i think it could be. [laughter] >> kara davis: nobody knows really what it is yet. things are always shifting, and you can't get attached. and i think there's a life lesson to be learned in that. >> experimenting, this time on spark. [ ♪music ] major funding for spark is provided by the william and flora hewlett foundation, supporting creativity and innovation in the arts since 1967. and by the kqed campaign for the future pro

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