Tim cook kicking off with a keynote address. Unveiling a new operating system. Shares are down slightly. Not everyone is impressed with this. Joining for our discussion, Charlie Gasparino, James Freeman of wall street journal and john has max farris of max funds. Fox news contributor. Nerd all over the globe converge. Ive been to it. It is so nerdy you wouldnt believe it. What do you mean . Guys walking around, they dont shower . Melissa their pocket protectors have pocket protectors they dont shower . Melissa i tried not to smell everyone as they walk b they pay 1600 bucks to get in each of them why this bashing of all the nerds. Its a nonviolent gathering. Melissa so funny you two are defending nerds. Yeah. No bashing nerds. I just wonder like, do you need to pay 1600 bucks to go to the conference and listen to the new developments . Watch fox business. Melissa newt ios. Streaming, mashable said they thought that would mean Something Big would come out because theyre streaming the speech. So far nothing. Melissa well, i dont know. That is reason you might not want to pay 1600, tim cook is not the show man steve jobs was. Melissa thats true. Looks like the crowd is a little bit underwhelmed with the technology. Melissa 1600 bucks to breathe in the nerdiness and embrace it and rub shoulders did you watch Silicon Valley at all . You get the whole vibe. Turning people against Silicon Valley which is a wonderful place that creates lots of melissa i think you might be a giant nerd. I dont know enough to be a nerd. Something about the company they cant gin up that much excitement about this . This is company clearly in transition, and does cook have the chops to take over for the guy. Melissa he needs drai. If only he hydrea out there on the tank. Dont worry about robots taking over the labor force, speaking of nerds. They are ranting about the topic over two dozen tweets over the weekend. Do you follow Marc Andreessen on twitter . Somebody needs to take his twitter away from him of the guy spends all of his time tweeting. Do you follow him. I did. He said something nasty about me once ant i said something nasty back. I said something nasty about him and then he said melissa there you go. This is completely selfserving in this sense. Marc andreessen invests in robotic technology. That may or may not be talking jobs. He does make a broad point. Melissa many, many broad points. Excuse me good point and the good point is you need people to build these things. So in a sense there is going to be some sort of infrastructure. Melissa not a onetoone tradeoff though. You replace like 10 people, because if you look at Assembly Lines for building cars and stuff you see the few robots they have out there doing it work, it displace as lot of people. Some of his great points, he makes all the Milton Friedman point. Human wants and needs rin fin knit so there is always more to do. He makes a lot of good points. But they will replace the low level jobs. They will expand the economy. Melissa that is a good point as well. Which usually saves jobs. He is right. Around tweet number six. Melissa that is like 25. Wow, are we still talking about this . This round of robotics will be a lot fasterrer than previous innovations there are a whole slew of jobs will vanish. I think trucking, driving, in a decade go away. Robot cars and trucks. Wait until a few of them get into car accident. It will take a while to adjust it. Well all learn to do other stuff. Melissa speaking of robots and technology, spacex ceo, elon musk is taking on the industry saying he can put satellites in space less than half of what washington is currently paying. Instead of lobbying washington and saying can i get in on the bidding, he lobs molotov cocktails at them through the internet. Why i like carl icahn, well talk about him and his troubles later, he takes on the establishment a lot. He points out the problem with innerworkings between Corporate America and these boards and incestuous relationship. I think he is doing same thing. I didnt know until i read a couple of these articles, when a defense contractor get as big bid they hand off part of the bid to one of their competitors to keep everybody quiet. So theres, that type of collusion is usually bad because it usually leads to higher prices. Melissa right. Interior products. Yes. Melissa what do you think, james . If he is offering a lower bid thats great. We should take it if he can really deliver. Im skeptical about this guy, given tesla model which is not some free market alternative to government. Basically a company that exists on taxpayer subsidies. Melissa it doesnt have to. Really wants to be a market competitor that is great. Melissa but he makes a point he doesnt have to take the government subsidies. He builds that into the price and it is smart economics. Youre talking about, talking about taking a loan and paying it back and having credit to buy a carver sus industry existed off the government 100 , remember the days of the, that is beyond just a subsy ditch. That is their whole client is u. S. Government. They have been playing games and overbilling for decades since it started. This is good. Melissa i want to move on to a very important story. The nations capitol is also americas fittest city, did you know that . They are moving forward with a sales tax on health clubs. Talking about washington, d. C. Lets bring in peter barnes who joins us from a fitness club in washington, d. C. Peter, are you getting fit. Im already fit. I get all my pointers from charlie. Melissa yes of okay. Thank you. Melissa what is this yoga tax going on down there . Well, as you said, melissa, the city Council Voted last month to apply the nearly 6 sales tax on goods and products to a number of Services Including fitness clubs and yoga clubs, Bowling Alice, car washes and others in order to raise about 60 million for the city budget. Of course the gym owners including the owners of vida fitness are fighting this very hard. They say not only will the tax raise prices for customers around discourage a healthy living, it will also perhaps cost jobs as well. Melissa pardon me. What i love about this, this is exact situation where washington is taxing the thing that is working. So they want people to be healthy. Wan them to be easier on the health care system. So they get people working out, they decide wait a second, what a great opportunity to tax them i would say that guy on Incline Bench was using very bad form. But i will say this, youre right. I love it when the fact that liberal yuppies get taxed, then they absolutely understand what the welfare state is all about. How you cant move without government breathing down your neck. Im for the yoga tax. Melissa youre all for the yoga tax . Tax on water delivery, storage lockers, car washes and Bowling Alice . These are some yuppy liberals drink water. Dont forget tanning salons. Melissa tanning salons. That is federal obama care. Melissa peter, how is this being received down there . What do people in the gym think . Oh, they obviously dont want this. Right now they pay on average about 100 a month. They would raise their costs in theory to 106 a month. Over 12 months, would be 70 a year. For a lot of members might not hurt them or stop them from coming. For those folks living on a budget, that extra 70 how many People Living on a budget doing yoga . Melissa good point. Not just yoga. Its a gym. Its a gym. A lot of folks melissa weve got to go. Apples Developers Conference happening right now but were expectations too high . Well head out to San Francisco as investors start to come away a little disappointed. Plus what happens when you mix in a billionaire investor, a golfing superstar, into a bottle of bleach . You get a big probe by the fed. You cant make this up. More money coming up. Dierdre shares of apple looking sour as the worldwidevillers conference continues. Nicole petallides on floor of the New York Stock Exchange with more on this one. What are people saying . Over in San Francisco weve been following all the news there. Seems nobody is too impressed with this new outlay of operating systems also, for the not only for the ipad and iphone but also for the mac. That is something were watching. The stock is down at one at 627. 25. Were watching a lot of retailers, melissa, ceo is selling remaining of the shares, ceo steve berk hold. The question everyone is wondering, why . This stock is horrendous. In 2005 this was 30 stock. Got another pop in 2006 and now it is at 3. 43 cents. Hitting multiyear lows for bebe. Some of the analysts are not too hot either. Back to you. Melissa thats incredible, the ceo dumbs his stock. There is no clear sign there. Nicole, thank you so much. So billionaire, world famous golfer and reknowned gambler, sounds like a setup to an easy punch line. Rest assured the investigation into carl icahn, Phil Mickelson and las vegas better, billy is no joke. Mickel for his part is denying all involvement. I have done absolutely nothing wrong and that is why i have been fully cooperating with the fbi agents and im happy to do so in the future to until this gets resolved but, for right now, and hopefully it will be soon, for right now i an really cant talk much about it. Melissa back to break it all down, Charlie Gasparino and James Freeman, along with former federal prosecutor fred tecce. I want to start with you, fred. What do they exactly have to prove happened here . A lot that i dont think they can prove. I mean i think, the government will need a mulligan on this one if i can be so bold. They have to prove basically that carl icahn provided Insider Information to billy waters who gave it to Phil Mickelson if i understand the theory of governments case. That case has more than 18 holes, again if i can be so brave. Bottom line, everything screams they dont have anything to prove in this case, including the fact, melissa fbi agents approached Phil Mickelson at a private airport at teterboro. You gather documents and information. And get someone with criminal liability and squeeze them. Melissa all kinds of problems. They were looking to do wiretap tapping and they realize the phone company that they wanted to use, blogged in part to icahn . That is not true. They didnt have time because they sensed that a story was coming. It turned out our colleagues i think they leaked it. Melissa you think they leaked the story . They leaked the story. Melissa why . I know how these things go down. They never had a case. Back up a minute. Carl icahn talking about Shareholder Activism is completely legal. Melissa that is what the activists guy do. They have the dinners. They tweet like andreessen. That appears all the time. Right. You cant bring an Insider Trading case on that. Now if carl did a tender offer, official action says were tendering shares at xy and z maybe you could get him on Insider Trading if he leaked that. Here is the thing that you will have to prove mr. Walters somehow gave a benefit back to carl. What did he give carl . Melissa why did they leak the story . They have nothing and really want, my view they want to put their stamp down on activist investing. I will say one other thing about this. They did not drop this case because newspaper reports or, they dropped it because did not go forward with the wiretaps not because of newspaper reports or carl owns a telecommunications company. They dont have probable cause. No probable cause. Melissa merck kel son is not squeakyclean guy. He has been linked to gambling debts and whatever comes of this gambling is legal. This is terrible idea for a pro athlete to hang out with professional gambler . Why. People do it all the time. Why . Jim the point is not a mafia figure. I dont think this is putting your stamp on activism to have a case fall apart. It is pretty obvious. I think pretty obvious. Impending news no way. They didnt like the just to one place. They leaked it to multiple melissa let me l back in for a second. Weve been saying this is the year of activist investor whether dan loeb and ackman making a lot of noise and next year would be the year of backlash against the activist investor. Do you think is the beginning of this and do they keep going after folks like carl . Number quite honestly the computer or something saw a bun of questionable trades. Three years ago. They started to look into it was nothing. Sometimes a cigar is just a cigar. The trades were there. Melissa well think about how stupid lets back up. Three years ago they asked carl about these trade, right . It took them three years to go to mickelson. Here is how it usually goes. When you go to someone like mickelson and two fbi agents walk up to you, could take out the dog or laundry, we know you committed x, y and z. Correct. If you dont cooperate with us you will spend a lifetime in jail or ten years in jail. That is what. They dont walk up to you, say wed like you to help us please. Correct. Melissa thanks. Very entertaining. Core question for apple, fresh off its largest acquisition ever. What will apple roll out next . So far, not much. Were live at Developers Conference waiting and hoping. A triumph of human ingenuity puts seven wonders of the world to same. The Leaning Tower of pizza has nothing on the flying drone of pizza do you ever have too much money . Melissa the Apple WorldwideDevelopers Conference is happening right now. Jo ling kent live at the Moscone Center in San Francisco where the event is taking place. Jo . Hey, melissa, it is kind of quiet around here. There are 6,000 developers in the Moscone Center behind me but not a lot of big revolutionary movement from apple. A lot of software updates. Tim cook and the head of product is there, delivering new updates to email on ios and the operating system on desktop. What is really interesting, theres a new app for the iphone called the health kit that is coming soon. That is collaboration between mayo clinic and nike and apple to track all of your fitness and vital signs to Work Together to increase your health. What is interesting about that for investors, that probably indicates there is some hardware coming as we expect later this year. A lot of analysts looking for that to truly revolutionize apples device collection right now. The other thing that are interesting, itunes they will be able to share the movie you buy, your husband will be able to get it as well, for no extra price. Iphoto will be revolutionized. Theyre changing that to organize the photos differently across the cloud across all platforms. Basically, melissa, only most exciting thing that happened here is called dr. Dre which allows you to call from your mac. Melissa let me ask you, when those folks are standing around to go in and there is always a lot of buzz about what to expect. What was the chatter . Well, theres a chatter about the feature ibeacon reported on in the wall street journal this morning that would allow you to move about indoors and basically have a gps indoors. It might help you find a parking spot in a parking garage or auto tour at museum or pay for bill at restaurant. We havent heard anything about that. Theyre maybe hoping for home products. What is interesting is a lot of tweaks and improvements theyre talking about here today are actually what some companies are developing as apps. There is a bit of a conflict as well. Melissa jo, thanks so much. Lets bring in spencer of the ante from wall street journal and our own adam shapiro. People go to these things and expect something. They get dre your fashion geeks but geeks rule the world these days, you know that. Apple is worth over 500 billion. One of the most valuable companies in the world. That is why they get people there my twitter is taken over by apple people. Melissa yes. News out there is Nice Software theyre unveiling connect your phones and tablets with pc. Melissa im falling asleep while theyre explaining these things. People want to she new device, new product categories. Melissa something. They typically announce those later in the year. Theyre playing the same script. Melissa i dont think they announced anything in a while. This is the best thing since die, kitty die, in the mayoral election. Think about this, i can use a iphone as wifi port. If youre in main or montana, have no wifi, with youre cell phone through apple or not buying device from cell phone provider, do it right through. That sort past new operating system. When im on the mac i can answer the telephone through the mac through the operating system. These are improvement as lot of people will really enjoy. Melissa that is why the stock is shooting higher. No, wait, no it is not. I message my brother on the Android Device from the mac where you couldnt do that. Apple is really, its a phone company. More than half of their revenue comes from smartphones. Only 12 of the revenue comes from pcs. If they have a bigger new screen phone which could switch people from android, that is what will get people to switch. Melissa waiting to see it. Waiting to see it. Weve got to go. Im sorry, guys. Got to be cheaper. Got it. Before i let you go, you have to sigh this Italian Restaurant in south mumbai unleashes the 8th wonder of the world, a drone that delivers pizza to your doorstep. Did you see this . This is the innovation civilization has been waiting for. Evidence suggestions that we dont need pizza to be quite so readily available. Witness this gentleman hitting the gym with deep dish pizza as workout partner. Look at that. He is eating and kind of crunching. We know Planet Fitness made a business being jud