tv On the Money CNBC February 15, 2015 7:30pm-8:01pm EST
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bond villains. >> in this episode, our "secret lives" super tally soars to a dizzying $103,295,000. >> in this episode, our "secret lives" super tally soars hi, hi, everyone. welcome to "on the money." i'm reporting from pebble beach, where leaders have gathered. one of them is the man who runs at&t. why it's not your grandmother's phone company, and what new regulations may mean for your cable and cell phone bills. it's a blooming business. this week went we will talk to the founder of 1-800-flowers. speaking of love, the biggest mistakes that couples make, and how to avoid them. "on the money"starts right now. >> this is "on the money." your money. your life, your future. now becky quick. >> for the second month in a row
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disappointing retail sales number. it fell 0.8%, well below expectations, partly due to falling gas but auto sales and other discretionaries fell as well. consumers may up more than two thirds of the economy, so this is always a closely watched number. stocks touched new highs on friday after fears eased in in ukraine and greez. and oil rebounded. and a mixed earnings picture this week. coke and pepsi both beat expectations, as did tech giant cisco. tesla fell well short though. expedia and orbitz are now travel buddies. expedia buying orbitz for about $1 billion. expedia also bought travelocity a few weeks ago. and sometimes it's okay to kick your dog? wait, wait. this is a robot dog designed by boston dynamics. a company owned by google.
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they want people to try and knock over spot just to show how well-balanced it is. by the way don't try it at home. >> it was 100 years ago at&t lines were used to complete the first transcontinental phone call, with cables stretching from new york to san francisco. things have changed a little since then. today at&t is the second largest mobile phone provider. randall stitch seen is the president and ceo, and with the president obama signing a bill about cybersecurity, i asked him about cyberthreats. >> it is a big issue with everything we've seen from home deep to sony. it is proving to be -- the issue is real now. and it's not just something that's a little bit of a problem, it's a make problem. not just for business but national security. i think the implications are that significant. and congress has been talking about this. and the president has been working this issue for quite some time. and we don't feel like we're much closer to a solution for
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addressing this than we were a couple of years ago. and the couple of things are going to have to happen. we're going to have to obviously get a mechanism in place to allow the government and business to share information freely and openly, but to do that, the congress will have to step up and provide liability protection for companies. that's a big issue for companies exchanging information with the government and so forth. so there is a couple of key elements going to be required. and it is not going to be an easy to address, but it is an issue of national security importance, so it has to be dealt with. >> how safe do you think at&t's network is and how safe to you as person feel. >> we believe our network is very secure. but nobody should be too boastful or too proud about their security, because there are people that really have a major interest in cracking security of networks. cracking security of companies. so it is just one of those things you have to invest aggressively and you have to stay constantly diligent about it. cybersecurity.
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you know, you have said very recently that at&t is going to look like a very different company down the road. and there are a lot of things you can point to. the directv acquisition. the big investment you have just made in mexico. and i just wonder, is the new company, the new at&t going to look a lot more like a comcast and a lot less like a verizon down the road? >> i think we're going to be a very different animal from either of those to be honest you. you made the comment about down the road. it is not so far down the road. directv we believe closes the first half of this year. our number one revenue share will come from our enterprise business, so our both wired and wireless services we sell to enterprises. in fact, when you look at our wireless business, virtually all of the growth is coming from the b2b. the business to business sales piece of that. that would be our largest piece. our second largest piece of business, revenues, will come from tv and broadband that we sell to the consumer. it will be a very large-scaled business. today our tv business is not
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profitable, we closed directv, that immediately becomes a very large scale tv/broadband business that is profitable, as soon as we close it. >> let's talk about the regulatory environment. when the fcc's decision on net newt reality, that changes the playing field a lot for you. i wonder how you think that is going to change the at&t of the future? and second, are you taking the fcc to court on this? >> we've been talking about net neutrality for a long time. and net neutrality used to mean preserving free and open internet. customers could get to the content they wanted without any distractions or blocking and without any prioritization. so we've all said that is the right motivation. the right ambition, a free and open internet. we have now under the president's urging with the fcc moved from pursuing a free and open internet to regulating the internet end to end. and that is the part that quite frankly is a little puzzling to
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us. you think about what's happened over the last decade. mobile internet being built out. fiber being deployed as aggressively as anywhere in the world. iphones being launched with unique business models. an echo system in silicon valley the envy of the world. and you ask how do you preserve that and maybe even accelerate that pace? i think most people the first answer would be not to be regulate the enter net end to end. right? so we think there is a solution that can get us there that doesn't go as far as regulating the internet. but it seems like the fcc and the administration are committed to this path. if they are, yeah, there would be litigation. i won't tell you exactly what form that will take. it may take the form of industry, movement and so forth. but there will be litigation. it is quite certain that that will be the case. >> i'd like to talk to you also about another huge initiative that at&t has done and that's trying to make sure people don't text and drive. >> right. >> an initiative i think you have been supporting several
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years. i think you have something like 5 million people who have actually pledged not to, and i want to ask do you think we're making progress on this. >> we're not making enough progress. i still get letters. young kids are dying. and 200,000 accidents a year are occurring as a result of texting and driving. and it is a situation that we just can't sit idly by and allow to go without being addressed. it is probably at some point going to require some type of legislative action. what we're trying to do is make texting and driving as unacceptable as drinking and driving. because it is dangerous. very dangerous. and kids are dying. and so it's something we feel we need to be in front of. we need to continue to push the needle on this, and see if we can get some progress in this area. >> i want to thank you very much for your time today. >> >> thank you becky. >> up next. "on the money." the sweet smell of success. 1-800-flowers is expanding the menu, an why its founder says
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business is blooming. and later, mistakes in love and money. secrets to success in staying together and how to have the hard conversations with your spouse about spending. right now, as we head to a break, take a look at how the stock market ended the week. people with type 2 diabetes come from all walks of life. if you have high blood sugar, ask your doctor about farxiga. it's a different kind of medicine that works by removing some sugar from your body. along with diet and exercise, farxiga helps lower blood sugar in adults with type 2 diabetes. with one pill a day, farxiga helps lower your a1c. and, although it's not a weight-loss or
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but there's always competition around the corner. joining us is the founder and ceo jim mccann. thank you for joining us today. >> good to be with you becky. >> so this is a huge holiday for you. two major billion dollar holidays, valentine's day and mother's day. and there are a lot of things that can go wrong along the way. one would be bad weather. what happens when you get bad weather on one of these dates, and what happens when consumers cut back on discretionary spending? >> we don't like either of those occurrences, becky. >> last we're we experienced a love storm on the east coast of the united states, which crippled most of the united states. and had a tough effect of on business. consumer sentiment is something different. we've had a good run on consumer sentiment improvement over the last five or six months and that's put a wind in our sales. so we are discretionary item. when it comes to occasions like valentine's and mother's day we're not quite as discretionary
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as people might think, but still we prefer to have people feeling good about what economic conditions are emerging to be. >> when you say you have seen improvement in consumer sentiment over the last five or six months that coincide with the lower gas prices. that bev seen at the pump. is that what you think has been helping out? >> i don't think we've seen that impact of the lower gasoline prices. that is the more recent 30, 60 daytime frame we've seen that. >> jim, one of the things i've always been impressed with is how quickly you adapt to now technology and bring in new trends. you founded it nearly 40 years ago, and last year acquired the gourmet gift basket company harry & david. and done things like moving into the internet before anybody else was there. i wonder what kind of changes that you see the next few years for the industry. >> becky you're right. we've tried to integrate changes that might impact how a customers comes the shop.
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retail stores, then the 800 number, and then we embraced the internet. the fourth wave frankly is right now. and i think it is the most impactful and the most exciting. it's a three-head wave. everything about local. everything about social. and certainly everything about mobile. we've been able to invest in those technologies or those paces, particularly mobile. pretty aggressively in the last six or seven years and it is really paying dividends now. because everything about our business now is mobile. so we're omni channel. however you want to come to us and we're multibrand. so we have brands for all kinds of occasions. the acquisition of harry & david that you mentioned gives us a much deeper penetration into the leading gourmet good gift brand harry & david, and broadens the big group of food gifts. so flower has been growing mid single digits with double digit bottom line growth the last few years. the food business growing faster than that, and that's why we felt confident to make the acquisition of a terrific brand
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and terrific products like harry & david. >> you know, 20th century fox recently changed its name to 21st century fox. and in an era of dotcom and mobile and online, i just wonder, 1-800-flowers, is that always going to be the name of the company? >> i'm not good at predicting the future much further than 12 or 24 months out, in terms of technology, but it's just like when tv came out everyone said radio would go away. it still hasn't gone away. and we want to be omni channel, so however it is convenient to reach us at that time, and beyond its practical application, it's become a brand, 1-800-flowers, so we don't see the need to change the name any time soon. >> what is the hottest selling flower over valentine's day? >> roses are always a popular item at valentine's day. and the variety and colors we can make available at valentine's day is so much better than they were even ten years ago, five years ago. the quality, the breadth of
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colors. so roses are very popular. but lilies have pulled almost in parallel to them in terms of volume and value. so lilies can last so long. and you get those really deep and interesting colors. and when you pad them with roses you really have a winner. no one is going to make a mistake. >> plus they smell great too. >> they sure do. >> thank you for joining us. >> becky, good to be with you. >> up next. "on the money." dollars and sense. how to make sure romance and money go hand in hand. the biggest mistakes couples make with money and how to avoid them. and later it's one of america's most picturesque golf courses. and one of the men who hones it is a familiar name. we'll talk to peter ueberroth about the olympics and preserving pebble beach. boy: once upon a time, there was a nice house that lived with a family. one day, it started to rain.
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hi everyone. hi everyone. welcome back from pebble beach. this valentine's day weekend, most people's thoughts turn to love. ours of course turn to money and how partners need to work together to make, manage and invest their money. a lot of people make mistakes on the way. personal financial correspondent sharon epperson joins us to talk about love, money and future. three things we all want to know about sharon. >> that's absolutely right, becky, but the first step in navigating with your partner is to be aware of the common mistakes many
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couples make. >> if you have a secret, whether a hidden account or debt that is out there or spending that you are not telling your partner about, come clean. because it is really hard to have -- have marital bliss if there is not financial harmony. >> ellen rogan is the author of "picture your prosperity" and points out another bigs mistake is focussing too much attention on how you're saving, and investing without first figuring out what you really want from your money, now and in the future, becky. >> what are the dos and don'ts? some of the things that couples shouldn't do when it comes to money? >> ellen brings up a good point. that is don't hide your money. don't hide accounts. don't hide credit cards. we looked at a citi double cash survey that found nearly 1 out of 4 americans who are in a committed relationship have a private account their significant other does not know about. that is not a good thing. >> what? 25%. >> 25%. you don't want to hide money
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from your spouse our your partner. >> no. >> so that is one thing that is a big no no. so the other thing you don't feel like you want to be financially rescued. and this maybe people think would be something that would affect a woman in a relationship but it could be either man or woman. you don't want to get into the relationships thinking i don't handle money that well but they do. so they will handle it. you want to be financially responsible yourself. and also make sure that you don't get overly emotional when discussing money. because that is when you make mistakes. you get so angry when you open a bill, i didn't know they bought it. but you are then likely to get into an argument and not resolve the issue. so don't get overly emotional either. >> let's focus on some of the positives. what are some of the things couples should do? >> this is for everyone. when you're in a relationship, it's especially important. know what you own and also what you owe. so that means going back and finding out what your significant other may owe and student loan debt and other debts. make sure that you understand
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what you're coming to the table with in terms of income and assets, and also know how you want to handle money. because you are going to work together as a team. it is very important that you treat money matters as a team and understand how you each relate to money, psychologically, emotionally as well. that is something very important. and the way you do that is to have regular conversations about money. a lot of people want to avoid an argument so they avoid the conversation all together and it is something you need to sit down and talk about. >> i can completely understand that, but how do you actually get the conversation started? >> the nitty-gritty is that you have to have a conversation starter i think like an actual budget. really like look at what money is coming in. what is going out. have concrete numbers to talk about and sit down and review those numbers. you need a starting point and that is a great place to start. >> all right. excellent advice. sharon, thank you as always. >> sure. >> up next "on the money," a look at the news for the week ahead. and you may remember peter ueberroth. the man who made the l.a. olympics profitable.
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also, then he went on to run major league baseball. now he's one of the many owners of the pebble beach. he tells us how he is preserving and protecting the oceanside golf course. long-acting levemir® an injectable insulin that can give you blood sugar control for up to 24 hours. and levemir® helps lower your a1c. levemir® comes in flextouch the only prefilled insulin pen with no push-button extension. levemir® lasts 42 days without refrigeration. that's 50% longer than lantus®, which lasts 28 days. today i'm asking about levemir® flextouch. levemir® is a long-acting insulin used to control high blood sugar in adults and children with diabetes and is not recommended to treat diabetic ketoacidosis. do not use levemir® if you are allergic to any of its ingredients. the most common side effect is low blood sugar, which may cause symptoms such as sweating, shakiness, confusion, and headache.
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and john deere. monday is presidents day, all the markets will be closed for the hold day. tuesday marks 43 years since president nixon left to his historic trip to china in 1972. wednesday we get housing starts for january. also wednesday the federal reserve will release minutes from its last meeting. that's always a closely watched event. and pitchers and catchers report for spring training. that means the nice weather can't be all that far behind. peter ueberroth has had all kinds of triumphs. ranging from running major league baseball to making the 1984 los angeles olympic games profitable. now he is co-owner and chairman of the pebble beach company. i asked how he's protecting the legacy of this historic golf course. >> when i had a chance to buy this great property, 5 thounz acres from the japanese who had cared for it very well, and it was a dream for me. and put together a group of people. and we're not going to ever sell it.
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and it is going to be number one golf course that anybody can play. not a private course but public course. number one basically in the world. >> i mean, i look around, just when i walk it, and you see the bob hope pictures. bing crosby and the plaques put up for him. you watch bill murray walking the courses today. you, clint eastwood. this place is pretty historic. >> and all the champions. >> yeah. >> any amateur golfer from the public can go walk in the same footsteps that people won the u.s. open here. and played several times. and a amateur, a fan, to participate in a real sport it just doesn't happen. i was baseball commissioner and i never could play one inning. i may not have been very good but i still couldn't play one inning. >> preservation is really tough when you're trying to make sure that you are keeping the golf course up to standards and the lodging up to standards. how do you balance the preservation with the development that has to take place? >> we have patience but we're not going to develop more. you know, it is -- half of this
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is totally open space. and we're -- of our land. and that is the way it is going to stay. this place with the 17-mile drive, the 5,000 acres needs to be preserved for people for many generations. >> you know, speaking of the olympics, i know boston is trying to put a bid together now. i wonder what you think the odds are there and if you think they would be a good place for the olympics? >> okay. that's easy. boston would be a great place for the olympics. super great. secondly i read all this junk in the newspapers about how it's going to be very costly. it won't be. they have private sector people doing it and if they are smart and build things, only things that the public will use forever and otherwise do some temporary things, and they can do that. and it will work. and it won't cost the people of massachusetts anything. they should -- we had a huge surplus after our games. $224 million. and it's all gone -- not to us. we never kept it.
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we never -- we distributed it to youth and sports in the country. so we didn't a penny's worth of donations. and we didn't take any kind of government money. >> our thanks to peter ueberroth. that is the show for today. i'm becky quick. thank you for joining me. man versus machine. who wins? next week we talk about artificial intelligence. should we be afraid or will it smart machines bring benefits we can't even imagine yet? each week, keep it here, we're "on the money." have a great one and i'll see you next week. because it helps me skip the bad stuff. i'm good. that's what i like to call, the meta effect. 4-in-1 multi-health metamucil is clinically proven experience the meta effect with our multi-health wellness line. i take prilosec otc each morning for my frequent heartburn.
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at sleep train. ...guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪ the annual event long history dates back to the late 1800s. with each passing year, the legacy grows, growing even more venerable, a scene admired, loved. tonight, for the 138th time, a champion will be named best in show. >> tell me that dog doesn't know he just won. >> one of the world's greatest events on one of the world's greatest stages, the 138th pres pro plan. soon, just one dog will stand alone as this year's westminster kennel club champion here at the rl
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