tv Markets Now FOX Business January 8, 2013 11:00am-1:00pm EST
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act right now. call the number on your screen now! the two here it is, the highlight reel. this flu season will be the worst. >> you should have a flu shot, stuart. stuart: the doctor is still trying to give me a flu shot. i will again the client. >> i am and excerpt. this is a bad flu season. stuart: the new pandemic. why are you laughing? >> he cleaned it up by saying you are also very smart. stuart: out of time here. dagen and connell, it is all
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yours. dagen: it is your fault washington. our leaders are hurting this country. connell: the one thing that the markets have to fear is in improving economy. dagen: herbalife fighting back against accusations. the stock is recovery. charlie gasparino says the firm is higher. connell: and then she caught the eye of the announcers in last night's game. then, her twitter accounts exploded. dagen: she is just a beauty queen who happens to at the moment date a quarterback. connell: let's go to local
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nicole petallides. nicole: let's take a look at the major market averages. the dow jones is down right now. the nasdaq and the s&p also pulling back. the mix is slightly higher. i want to take a look at names in the news. monsanto came out with numbers that beat the street. target saying that they will match all of the prices. if you find out it was cheaper somewhere else within seven days, bring your receipt back. apple working on a cheaper iphone. particularly aimed over in china. those are some hot stocks to watch. dagen: thank you.
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connell: americans are taking the blame game to washington. dagen: former managing director at bain capital is here now. we are unhappy with the bones, but we elected them. we get what we elect, do we not? where does the cycle end? >> the situation is such that you have these mandatory increases in spending.
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there has been a silent 30% increase in spending. you do not have bills being passed that are raising spending to get the attention of the public. to get the attention of the republicans, they would have to pass a bill. they did not have the votes to do it. they have no negotiating leverage to try to bring this to a head. the crisis is really being created by 30% increase in spending which is raise the $1.1 trillion deficit. you need an increase in taxes if you do not cut spending and the president has been unwilling to cut spending at least so far. connell: a market that has very low interest rates. what happens next?
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do we want this big grand bargain that may at a time when the economy is not in the best shape slow us down a little bit more relaxed i think we do not -- people do not really see risk, they only see the damage after it has materialized. i think that the president has a very strong to go shading position. we believe that war spending is beneficial to the u.s. and he is willing to run up the spending. even if he cannot cut the taxes. eventually we will have to raise the taxes. dagen: you feel some sort of pain from longer-term interest
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rates skyrocketing. temporary payroll tax cut where i have talked to so many people who were angry that their paycheck is now a little bit less. you want it lowered, well, you will have to give up some of the benefit. it goes to pay for your social security benefit. you will raise the age to well over 75 and then they go, wait a minute. they do not want to feel pain in any way shape or form. >> nobody recognizes the cost. he had a four-point increase in spending. that has a big impact on gdp. household incomes have fallen over the last couple years. they have not recovered. our household really feeling the
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pain? yes. they do not connect it. many are not even aware of the increase in government spending. as long as the public does not recognize the cost, that put the president in a very strong position. whether it is inflation, lower wages, higher taxes, i think they will push back a lot harder. connell: always good to have you on. the author of "unintended consequences." cheryl: happy new year. connell: the biggest fear for investors really should be economic growth. it sounds kind of funny. >> unfortunately, it is not funny at all. we had a couple of good economic indicators come out last spring. the bond market sold off rather
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sharply. currently, the government pays only 2% of its trillion debt. the average paid an average of 6% in 2001. if we have a bond market selloff which is what will happen if we get economic growth, well, then, government debt will be unsustainable. we are in worse shape than europe is. the problem is there is too much debt in the world. if we get economic growth, it will matter. we have this economy, this clip, not just on the fiscal cliff, but let this growth happen. connell: we have been saying for a long time, one that does happen, regular people need to
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pay attention in washington needs to act. it is more difficult to act when interest rates shoot up. is there a timetable on that? >> the treasury always goes up. it was an uptick in volatility. it was not anything particular. there has been so much money chasing yield. you just need a bit of volatility. people are taking on the out of bond market. back very quickly snowball into something the filling. connell: what does it look like? once this event that you are alluding to occurs, whatever it may be, to those interest rates just chewed up for is a gradual?
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>> of course, you do not know. not everybody has all the money tied to one particular point in the yield curve. if you have a bond portfolio, you have to shorten because you can lose significant monies if you have all your money in one place. in our world, what we try to do is put the money to hard currencies to mitigate these effects. you do not know the timing of it, but the risk is there. if there is a risk that we are right, you may want to do something about that. connell: great analysis. thank you. >> thank you. dagen: a haven, not so fast. the risk of owning the likes of
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gold. sandra smith has that in today's trade. connell: take a look at this military hardware. worth a quarter of a billion dollars. dagen: she sure did light up twitter last night. she became the top story. more on this alabama and how to wave like queen elizabeth. a book that the oil market today. still very close to $93 a barrel. ♪ ♪
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>> let's take a look at the price of gold right now. it is up by eight dollars. it has been a slow new year for gold. dagen: sandra smith is here now to explain in today's trade. sandra: the big question is when does gold get cheap enough. we are sitting right around $1654. you can see that we are up about a half percent. that has not been the case of late. we have had three straight losses.
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gold has lost 2.5%. so far this year, which has not been not long, you have seen gold prices lose 2%. by the way, i am going to extend this out to a one-year period gold prices down nearly 10%. a lot of gold people are looking at this and thinking maybe gold is now becoming cheap at these levels. over the next one to two months, they are expecting the gold prices, and long with silver, by the way, he thinks silver will outperform gold. the low interest rate environment, the weak dollar environment will come back and boost these battles. silver has lost even more
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momentum. start to look at these battles. after the debt talks are over, he thinks that everyone will go back. connell: listening to you very closely today. you got the alabama game right last night. didn't you pick alabama? sandra: i did. connell: sandra smith. thank you. dagen: and then you have a quarterback who dated a girl who went to auburn. it is a little past quarter past the hour. nicole: we are seeing at&t as one of the big laggards. at&t told more than 7 million smart phones in the fourth quarter. this is a record for them. obviously copying the prior numbers that we have seen.
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these telecom type companies are coming under pressure. here is a look at the broader market averages. the dow jones industrials down about 80 points right now. back to you. dagen: thank you. connell: we will talk to bret baier coming up. dagen: alabama's big moment in the spotlight. oh, the people came running on twitter. connell: joining us from vegas is nick cannon. a lot coming up. speaking of markets, low back current fees. ♪
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violating a cease-fire that has been held for nearly a decade. the outbreak of violence is the second in three days. the area is divided. chicago police have opened a homicide investigation into the death of a $425,000 lottery winner last summer. he died of cyanide poisoning and not natural causes. he had urged medical examiners to re-examine the case. the girlfriend of the alabama quarterback twitter account blew up. she went from 2000 twitter followers to 104,000. alabama pete notre dame 42-14. those are your headlines. connell: thank you very much.
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dagen: i want to know what you think of this whole thing. connell: looking live at this alabama. maybe he was not overly enthusiastic after all. some people are suggesting that was a bit of a weird -- dagen: they are just hiding under a layer of cake stands and fried chicken biscuits and no exercise. connell: let's go to vegas. one is a celebrity and the other quit his job as a micro scientist. dagen: shibani joshi is that the consumer electric show. shibani: let's just say it is good to be a tech geek right
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now. i am at the monster vip booth. no one else is showing you this. remember the days when headphones and earphones were just black or white, long gone are those days. monster has transformed the business. beats by dr. dre. tell me about this new chapter. >> we established what the business would be like. we have a 50% are good chair and a business that did not exist. the retailers and everybody loves it. we found new ways of bringing to the map the meaning of rate music. educating young folks on what it takes to hear great sound. shibani: tell me about the
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business of headphones. like i said, they are now about identity and showing off a personality. they are also very expensive. >> just the business of headphones driven by smart phones and tablets. you can get a full experience with high quality headphones. with our technology that we started with pete's by dr. dre, now we are doing something like pure monster sound. it is a very moving experience. shibani: tell me about the celebrity performance. >> really the people respect the people who are our brand advocates. we have a tyson beckford exhibit here. we also listed drew breese who just signed on with us.
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they can deliver a very powerful message that monster as a company cannot. shibani: let's get these guys involved. they are the partners bringing out the message. tyson, you are bringing the artistic side to headphones. >> yes, we are. we are bringing fashion as well. these are the bands that you can take from the top of this and switch them out. you are feeling -- shibani: you can change it like you change your pants every day. you are going back to the hard-core gamers. what is that about? >> i am very passionate about gaming. that is one of the requirements in order to be a monster. stepping into the realm of gaming will be excellent.
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shibani: it is hot and it sounds good also. any plans to go public anytime soon? >> for your fans, i would say yes. for my personal life, not at the moment. [ laughter ] shibani: this is the party that is happening. we will bring it to you all day today and tomorrow. connell: thank you, giovanni. giovanni josie out in vegas. dagen: bret baier coming in. connell: aig happy to take the government to allow, well, the company needed a bailout just years ago. now, the board may return the favor by suing the government. some of the winners on the s&p 500. ♪ [ male announcer ] where do you turn for legal matters?
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plus get this document shredder free-- but only if you act right now. call the number on your screen now! nicole: iam nicole petallides live on the floor of the exchange. take a look at alcoa. of about .5%. the quarterly report is due out after the bell. that is the latest. back to you. connell: it sounds like a company that just does not know how to say thank you. dagen: aig board will meet tomorrow and consider suing the u.s. government. the same company that yielded out. here with more is elizabeth macdonald and her bottom line.
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>> they are confirming that starr international will make a 45 minute presentation to the board at aig's offices tomorrow. this is about whether or not to join the former chief. in that lawsuit, they are think that the government basically ran a box. they let aig agreed to pay to attend interest rates. that represented a backdoor bailout to help out goldman sachs, deutsche bank and merrill lynch and the 2008 crisis when aig collapse. basically, aig is telling fox business, this is breaking news, that the board members were not there during the crisis at aig. they have to hear out starr international, they have to hear out the lawsuit.
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they will be exposed to further lawsuits if they do not. this is what neil cavuto was told. take a listen. >> as far as i am concerned, that bailout never should have taken place. the way it did take place was wrong. it was a backdoor bailout. >> essentially, what aig is also saying is that -- according to aig, robert does give hank greenberg credit for putting together a great team and a great company, but whether or not the board will join hank greenberg's lawsuit is unknown. aig's board had an alternative choice and it helped restore financial stability in the u.s.
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during a time of severe volatility. that is where it stands right now. as we hear more breaking news, we will get back to you guys. connell: they will attempt to shine some light on dark pool trading. this was an interview that was done at the top regulatory official. we will look at dark pools that have become quite controversial over the last couple years. there has been a fair amount of controversy. dagen: as our own charlie gasparino has been reporting, president obama is expected to nominate white house chief of staff jack lu as the next treasury secretary. with the reaction and what this means for the dead feeling
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fight, the fight over spending and tax increases, we go to bret baier. bret, you certainly know washington. what does this mean about the upcoming fight with republicans? >> good morning. republicans did not think that they had a real great partner in the negotiation the first time on the debt ceiling when they were working with jack lu. in fact, speaker boehner and some of the aids back in the summer of 2011 that he was kind of uncompromising. some called him the know it all. they really did not like the whole exchange with loopback then. democrats say that he is a tough negotiator and a guy that knows all of the numbers. he is kind of a policy whiz when it comes to the budget. he is a former director and not
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obama and clinton administration. he will get tapped to be the next treasury secretary, obviously, if confirmed. he has a very close working relationship with president obama. that really is the biggest asset when you talk about this particular white house, for this particular president. if you are that close with him, that is, that raises your chips in your access and accessibility. dagen: in the first well, it will be a nice and lively confirmation process i would think. the first big fight would be that that feeling increase and again, we had that in mid february. anyway to play that out how that will play out assuming jack lu once again is involved and you have to start talking about
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spending cuts and based on what nancy pelosi said the other day, she has reintroduced the idea of increasing taxes. >> yes. you are hearing that again and again. you are making a point that the president wanted $1.6 trillion that ended up being 600 billion plus. i think you will see democrats calling for more taxes. you will see republicans say we are not going to give you an increase in the debt ceiling until the senate comes forward with a budget. that is pretty simple. that is what they are first salvo be. i think you are seeing the beginning back and forth. when it comes to jack lu, it is interesting. he works for oatmeal way back when. he works on that deal between oatmeal and reagan were they
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worked on social security. yet, the negotiations currently are to change entitlements. he has been pretty tough, according to republicans. dagen: it is that distant of a memory. bret, happy new year. it is great to see you. you can watch bret every weeknight. we will see you soon. the u.s. is planning to send planes and tanks to muslim brotherhood. we have former u.s. navy captain. connell: target will not rival prices all year round. details are ahead. we will be right back.
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>> i am lori rothman with your fox business brief. investors wait for the unofficial start of the fourth earnings season. alcoa will report after the bell today. the dow is down 66 points. superstar sandy will likely cost the insurance industry billions of dollars. the company says the complexity of accepting insurance losses over a wide region has created uncertainty in estimating losses. hospitals uncompensated care cost rose to more than a billion dollars last year. those cost should decline a year from now once broader health coverage is available under the
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affordable care act. that is the latest from the foxo business network. giving you the power to prosper. ♪ like it has for so many people before. when taking lunesta, don't drive or operate machinery until you feel fully awake. walking, eating, driving, or engaging in other activities while asleep, without remembering it the next day, have been reported. lunesta should not be taken together with alcohol. abnormal behaviors may include aggressiveness, agitation, hallucinations, or confusion. in depressed patients, worsening of depression, including risk of suicide, may occur. alcohol may increase these risks. allergic reactions such as tongue or throat swelling occur rarely and may be fatal. side effects may include unpleasant taste, headache, dizziness, and morning drowsiness. ask your doctor if lunesta is right for you. then find out how to get lunesta for as low as fifteen dollars at lunesta.com. there's a land of restful sleep. we can help you go there on the wings of lunesta.
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connell: we are back on the market now to talk turmoil in the east. the deal was struck with the former president. former navy got them chuck nash is here. >> it is largely symbolic at this point. the egyptians already operate some 240 f-16s. they have another couple of areas french manufactured aircraft fires. they have a very large air force and the largest army, i think in the world. it is very sizable. it is a big military machine. the issue is, we struck the deal
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as you pointed out in the lead. we struck the deal with the mubarak government. you now have more's the and there who has essentially ramrod it through the muslim brotherhood agenda. forced through a constitution that enshrines syria and we do not know where this is all going. the symbology is, do we lean forward and honor a 2-year-old deal made with another government in the hopes that it shows good faith in dealing with these people or do we look like saps for arming people that we may end up fighting. connell: they maybe said something similar in other places that the man is known as the blind sheik that is
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responsible. you hear comments like that in people say how should the americans deal with this guy. >> i think it should be a wait and see attitude with this guy. even president obama a while back when talking about egypt said, well, egypt is not exactly an ally. if they are not, why are we giving them all of this. it is the optics, connell. do we really want to be shown in advance taking their word for something when everything they are doing, it looks like it is not in u.s. interest. it is just that the optics are very bad. connell: thank you for joining us today. >> my pleasure. dagen: the european unemployment rate hitting an all-time high in november with more than 26 million people out of work across the eu.
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spain recording the highest unemployment rate. 26.6% followed by grief at 26%. the u.s. peaked at about 25% during the great depression. if you can find it cheaper, target is planning to match that price. the move follows a disappointing holiday shopping season. ♪ dagen: rock legend releasing a whole new single today. his first music in about ten years. it is also his 66th birthday. there is a new album due out in
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march. foley has not played in public in years rejecting many offers to appear including an offer to headline the opening ceremonies at the london olympics. god help us all. it would also be mr. presley's birthday if he was alive. connell: let's go to nicole petallides. nicole: we are taking a look at yum brands. taco bell gets a lot of their revenue from china. you are seeing yum brands down 4.5% here. not good news at 64.83. how about we take a look at the broader market averages. we had five-year highs last
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week. today we are continuing to pull back a little bit. back to you. connell: thank you. dagen: herbalife fighting back against accusations that the company is running a "peer amid scheme." connell: more on that straightahead. first, some of the winners today over at the nasdaq. ♪ ♪ [ 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.
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herbalife. they are holding an investor meeting. he is shorting the stock because the company operates what is described as a pyramid scheme. dagen: they are supposed to higher david boast. charlie gasparino says they are considering legal action. he is seated next to mr. charles payne to talk about this. charlie: bows will be attending this herbalife meeting. the company is putting a stake in the ground saying, if you mess with us, we will come after you. you do not go out and hire me unless you are planning on major legal action.
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sources in there tell me they had not made up their mind. him being at that meeting is putting pressure to back off or we are coming at you. he went after mbia. he called them at the time, i believe a ponzi scheme. mbia was obviously involved in some, they had a bad business model. that does not mean they were a ponzi scheme. all of these words will be weighed. i believe there is a first amendment issue. a lot of this will play out in this battle. this battle will only get hotter. >> there will be a major legal battle there.
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he pulled out a 342 page slideshow to show why the target on this stock should be zero. when people go short, they are never happy. to charlie's point, this is not the first time. ceridian is another company he took on. this is a tough one, i have a real problem, to some degree with these large hedge fund managers who almost get a self-fulfilling prophecy. they show up at the shows that they know people will be at. they get a lot of press for it. a lot of times, at least the initial action is self fulfilling. charles: i agree with some of that. if it was not for the guys like bill ackman and david eichorn,
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the public would have been stuck with the bs coming out from all of those wall street firms. those guys brought it out. the one thing with ackman, though, we have asked ackman to come on. i know feel pretty well. don't be afraid, you can, viewed you have to watch your rhetoric. dagen: he laid the case out, but he did not call the company names. >> i do not think mbia can be considered a ponzi scheme.
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it is quick and dirty money. did you go into this other business of securing prime debt. you can make a case that any bank is a ponzi scheme because they lend out more money than they have at that moment. and that makes them though bernie madoff of finance. he was right about the notion. charles: to train one point, i looked at that slide. you do not need the name-calling . you look at their products versus other consumer goods products and their gross margins of 80% versus 40s and you say, while back, there is something here without necessarily having to go to the next step. most of the time the distributor
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gives the product and they cannot sell it. charlie: they apparently dropped the investigation. they were investigated on a lot of these claims. it looks like they want to reopen the investigation. [talking over each other] dagen: he is not the fairy godmother. charles: ackman will go to congress on this. dagen: thank you. thank you. connell: thank you to both of you guys. dagen: new poll says that 77% of americans believe washington is hurting the country. could the see also hurt corporate profits. connell: cheryl casone is coming up next as market continues. ♪
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cheryl: i am cheryl casone and a new poll says 77% of americans believe washington is hurting the nation but could d.c. also hurt corporate earnings? our debate on how gridlock could affect the fourth quarter reporting season. two men, two parties, one idea. wall street journal, bipartisan political group, no labels, to end the gridlock. continuing coverage of the all-important consumer electronics show, coming the during the hour. shibani joshi has the first-ever north american television interview with sony's new president and ceo, and liz claman has another first on fox business interview, the chairman and ceo will be here. it is top of the hour, stocks
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every 15 minutes and nicole petallides kicked things off from the floor of the stock exchange. another negative day. nicole: we had a five your eye on the s&p 500, watching major averages pulling back a little bit, not too far off, down 1/2% and there's a negative tone to the market. we did improve yesterday, saw significant improvement and the dow is down 67 points ahead of the alcoa earnings. two and she's hitting new 52 week highs looking at finance jewelers, the name is doing well when you talk about that, blowout numbers for them as far as what they earned and sales for the retailer, the jewelry retailer, fourth quarter outlook looking good, raising that number and stock up nearly 9%. cheryl: see you in 14 minutes
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from now. according to a new poll 77% of americans say a political battles in d.c. are harming the country. as we gear up for fourth quarter earnings season how much damage has washington's fiscal cliff battle done to corporate earnings? we have kimberly, president of those joining me now, i want to start with you. you have been pretty bearish, writing about problems in d.c. but is corporate america going to tell us the fiscal click hurt bottom line? >> the uncertainty and dissemination between the political parties and the fact that they can't get along is going to hurt corporate profits because the bottom line is what is pressing the market is not earnings, it is what federal reserve is doing, what the colleges is doing or not doing or what the ecb is doing and i think it is going to have an
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impact on earnings and -- cheryl: what type of impact? i don't know if you agree but if we are going to see some type of negative numbers out of corporate america in these earnings what numbers are we talking? >> at this juncture expectations are pretty low. low single-digit earnings growth expectations on comparative year over year basis and i think we are going to hear some commentary by management relative to the impairment to their earnings due to the fact that basically business grew increasingly paralyzed by prospects of the fiscal cliff leading up to the end of the year. you will hear more of that from companies not so much today in all, but domestically oriented particularly the retailers, nordstroms, targets and walmarts of the world but between now and then you will hear various iterations of the same theme,
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use of head wind to profit growth due to the fact that business began to stall in the second half of 2012. cheryl: a great point about the nation's retailers who came out with a disappointing december numbers so those earnings, also point out consumer confidence and consumer confidence was hurt in december because of fiscal cliff problems. what does that do to bigger names that you follow? >> it will affect all of the -- at&t and the retailers. the reality is markets are still incredibly opportunistic and so i think with corporate earnings being hindered and gdp, these are opportunities to make money. look at the last year. we had a fiscal cliff and at the end of the year the s&p up 16%,
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our 60/40 portfolios were up double digits. there will be opportunity, you just have to be disciplined and be in the market in order to get the rewards of the market. cheryl: if you the bond market performance last year prior and address it in 2013, stocks are the best way to go, she's talking about the world index. i want to get your thoughts on emerging markets. ten get the house together in the united states, may be emerging markets, overseas markets are better way to make some money this year. >> that is exactly right. we don't necessarily think the u.s. equity market isn't going to do for the, on the back of modest, lackluster growth in the u.s. it is fertile ground for corporate earnings in america to grow and fries to advance, better than returns on bonds and cash but better results will be found in international markets particularly europe, japan and
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emerging asia/china. cheryl: you mentioned a couple names, at&t for example. do you think if we stay with big u.s. names we stay with the safe names? we stay with at&t, maybe ge, bigger names, large cap dividend payers? >> we believe diversified portfolio as you know, 44 different countries, 12,000 different securities the we have a home country bias. you need to be a big tech name, dividend tripping dividends of of the portfolio to get a little bit of income there but the big names are solid and they have cash reserves and they can withstand the volatility that we are going to see down the line because the reality is congress gets their act together and makes solid decisions about moving forward on tax reform and spending and expenditures we are not going to see any stability so you have to be ready for that
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volatility but those names will give you that and that will give you the portfolio income that we are looking for. cheryl: i have never seen you so bearish on d.c. but glad you are here. thanks to both of you. appreciate it. they are called dark pools, institutions that trade large blocks of stock outside the public exchanges, orders that are often hidden from the public market. regulators take a closer look at them. adam shapiro has been working on this story for the last hour of markets now with more details from the news room. adam: this was covered by dow jones. richard ketchum, the chief executive, indicated come 2013 now we are in the new year that it intends to expand oversight not only of high-frequency trading and high speed trading but dark pools, quote, trying to move prices or encourage sellers that may advance trading in the dark market attempting to look
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at what is trading and a quick reminder, back in 2009 mary schapiro actually describe dark pools as systems in which participants transact their trades outside public markets and the concern among a lot of people, we had the story, bernie madoff of all people was drawing attention to the fact that dark pools are essentially trading that takes place privately, there is no transparency and those involved may obtain information upon which they could front run, they could trade where you and i and the public markets would be at a disadvantage so that is what this is about. they have been trying to increase regulations or oversight of dark pools going back before 2009 and mary schapiro's tenure and according to the dow jones article nearly 50% of all stock trading now involve dark pools but very simply it is trading that takes place without rules in which you and i can see what is happening, who is buying, who is selling, and ms. involved in the dark
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pool. cheryl: mary schapiro has been very vocal as you mentioned that at the same time day of very difficult not only to regulate but to investigate. there will be a long road in looking at dark pools that they want to come to agreement how to regulate those. it could be years away. adam: you already have the sec putting in place computer systems to track high-frequency trading which they said will take years before those are up and running and then the issue whether people on wall street truly believe it is a watch dog. a lot of people look at it with disdain and came mr. bernie madoff and stanford and whether this is the pie crust promise easily made easily broken, actions speak louder than words but a lot of people on wall street don't look with respect that in russia. cheryl: adam shapiro with breaking details on the latest move, thank you very much.
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samsung will see record profits in the port quarter up 89% from last year and the fifth quarter in a row, success largely fuelled by demand for the galaxy tablet and smart phone. the company sells 500 and set a minute. in an everett to compete with samsung apple is said to be working on a cheaper version of its iphone 5 to be sold in china and other emerging-market. sources said a unit will have a large display and revamped design released at the end of this year. speaking of gadgets, it is the largest new product show of the year, consumer electronics show in las vegas. we are live for the biggest players in town. shibani joshi has the first-ever north american television interview with sony's new president and ceo and liz claimant with verizon's chairman and ceo, a first on fox business interview. as we go to great take a look at oil, down slightly, tight
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trading pits, he is watching oil and natural gas. sandra smith that the data wizard, looking at goal. charles payne with how you can make money on rare earth but first we go to nicole petallides on the floor of the stock exchange where stocks are trading to the down side. nicole: the fear index is high today, it is at 1405, markets are selling off to a certain extent, dow jones industrials are down 1/2%, a ticketing nasdaq lower by 1/2%, we have the telecoms and bank stocks a under pressure, the dow down 65 points. want to look at the retail is making news. let's start with the game stop. holiday sales were disappointing, game stop down 4%, deckers outdoor, you know them, down 3.7%, cutting stock to neutral from an outperforming and you can see this particular
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retailer under pressure and holding down 5% as we speak, the chief executive leaving because of a family member's medical condition and eddie lambert will take over as chief executive officer, the chairman will step into that role, sears is down 5%. that is the latest at the stock exchange. what is going on at the cme? phil: brent crude, spread, bouncing back a little bit but traders are anticipating restart, expansion of the pipeline, 400,000 barrels of w. t. i, out into the world market bringing us the wti more in line with the world price, forget the glut, you have wti prices down in anticipation of another oil inventory and perhaps the u.s. is going to continue to produce more oil the information agency
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came out a few minutes ago and said oil production is going to hit 7.9 million barrels a day next month. natural gas under pressure shifting forecasts going back and forth and with warmer temperatures a lot of pressure on that mark along with record prices, shiny metals to sandra smith. sandra: we are looking at gold out today, has been on the decline three straight sessions and then a negative component to the market, stocks have been going up, precious metals going down. here's the decline down 2% over the past weekend as i broadened this, you to date, should broaden even more, you can see the high in october is down 10% since then, ask sterling smith at city whose as gold is in the throes of a bear correction. coming back it will hit resistance as it approaches its
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200 day moving average. keep that in mind if you are looking to buy at these levels. i want to branch this out to a five year chart. we experienced 12 years of gains in the past four years, gold has outperformed equities, there is a question whether that is going to continue. one area to look at confidence in the gold market if you are a buyer of gold is to look at the largest gold batf in the market to track the price of gold, as you can see i put up one year, you see it that high in october tracking the price of gold that here is the bottom line. there's record amounts of investor interest right now, a record amount of buyers and holders and remember that is backed by the physical metal itself which tends to be very bullish for the price of metal so there are couple ways to look at this. cheryl: if the fed keep that
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watch out for gold in 2013. sandra smith, phil flynn, nicole petallides, time to make some money with charles payne, talking about rare earth minerals. rare earth overseas i would like to say. charles: this was a hot trader year or so ago, nitrate yesterday, stock was up since the year began, there is rumors they will be taken over, here is both thing. they have got the goods, acquired more rare earth mines but the problem is they may not have the capital, they have a capital-intensive business and it has been hurting them and this hurt the stock dramatically but if someone came and took the wherewithal to operate this, probably a big deal. earnings estimates for the next year, $0.14, 3 months ago and $0.92, wall street does not have
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a lot of current management but insiders have bought seven million shares of the stock, insiders buying a small stocks like this, if you are inclined to do this i will say a close above 12 on strong volume would be a buy signal for me but i will ask the caveat that this is a risky play and you want something like a 12% loss. cheryl: all the bullish commentary the report over the weekend, that is good. charles: they might use this as a bargaining chip, they held back before and what was going through between solar, wind and rare earth. cheryl: thank you very much, stay on the news. imagine being named the new ceo of sony. introducing the new all fret hdtv at the consumer electronics show in las vegas last night and
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this happens. >> with dazzling 4 k resolution including this beautiful interface screen. cheryl: bigger name than him. we will talk about this mishap and what is ahead for the electronics giant sony, talking to the ceo, first american interview as ceo. he will be with us. we are live at the consumer electronics show next. as we go to break with the the world currencies and how they are tearing against the u.s. dollar. a little pull back on the road but not much. ♪
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winner after one died of cyanide poisen and not natural causes. relatives of 46-year-old kahn urged medical examiners to re-examine the case, and that's the fox news minutement back to cheryl. cheryl: thank you very much. well, we've been talking about it for weeks now. the consumer electronics show kicking often in las vegas. with the latest and greatest new products introduced. sony unvailing what it hopes are game changers for and new technology. we are standing by with the first ever north american interview since stepping into the job as ceo. no pressure. take it away. >> hi, cheryl, yes, we are very, very pleased to be with the new ceo of sony, appointed a few months ago, the first north american interview, happy to have you here on the network and have you joining us.
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i want to start off saying you've created some gold for the company in turns it around to the glory day. how have things progressed on the job? >> it's been nine months since the took the present position, and we have a lot of corporate initiatives in place to turn the company around, make sure we're focused on core businesses which is digital imaging, gaming business, and, also, the mobile business, and we're making a lot of progress, showing itself here at ces with everything announced yesterday. >> you have a lot of work and have done a lot of work. you are cutting heads, realigning the organization, changing your management style. as you go through the various priorities you have, what do you think is going to be the real key in reemerging the brand in the company? >> the most important aspect of turning the company around is really to make sure that we have great products that really wow our consumers around the world, and think we are making great
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headway bringing the wow back to the products. >> thinking about sony, you think about the walkman, the play station, and i think about the blue ray dvd player. iconic products, but when is that iconic nature going to return? there's been a lot of companies steal your thunder in recent years. will you gain the resurgence of the old sony or not about that right now? >> there's a lot of built in creativity and what we call the corporate sony dna within the research and development coordination and product development folks at sony. they have great ideas, but we need new, aggressive ideas in the forefront and man test itself in the product. >> that's certainly what responds -- what consumers respond to. >> absolutely. >> you talk about the hot new product. you have a few there. >> sure. >> are they the wow gadgets to turn sony around? >> well, you know, i think, for example, so this is new.
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we don't call this is smart phone, but a super phone. we are famous for image quality. this phone actually uses the same technology so it's a very high definition, high resolution screen. also famous for digital imaging business, and we've included one of the most state of the art, 13 megapixel into this phone right here. takes great pictures as well, and it's got all entertainment applications and connects all the sony network services as well. >> and it's water proof. i dropped it in water all morning long. that's key there. >> packing what sony has in terms of technology into a small form factor. >> what do you say to the nay sayers? there were reports last night, a snafu, but people picked up on the moment saying, see, this is
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how sony will have a tough time turning things around. what do you say to that? >> prototypes, and times we have hick -- hickups, but that's the risk you take. doing playstation demos as well, but i think, ultimately, you turn it back on, and the press, you know, they were loving the image quality. >> and laughing the whole way along. >> of course, of course. >> live performances. >> such a fact of life. >> to the critics, what do you say? what's the time frame to say that you have done and put your stamp on sony? >> well, i think, you know, some of the products showing here, the booth design itself, the presentation we did yesterday, that certainly has a lot of the elements that i wanted to incorporate in going forward, more and more products that come out will have, i guess, my team stamp on it, and, you know, we always talk about the tv business and the challenges there, and we've given ourselves two years since -- 2011 to turn
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the business around so hopefully we'll be a profitable tv business by the end of 2013. it's moving forward. >> a lot of work ahead. >> absolutely. >> wishing you the best of luck. >> thank you. >> the newly appointed ceo of sony, thank you for having your first north american interview with fox business. >> thank you. cheryl: thank you very much. don't go anywhere because in moments we're going to take you back out to ces, and later in the show, liz claman sits down with the chief of verizon. stick around for that interview. so take a look at these two faces. can these two men on your screen fix washington? that's next, a group of republicans and democrats that want to deal with gridlock. asking gerri if a divided congress approves this man as treasury secretary, jack lew. as we break, going to the
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cheryl: a look at the markets, a negative day on wall street, with a few things happening as earning season kicks off. nicole, what are you watching? >> hi, cheryl, well, looking here at the dow jones industrials under pressure here, down 70 points down half of 1%. tech heavy nasdaq, same thing. tech names under pressure, and the s&p 500 with a five yearr3 high last week selling off. talk about the names in the health care industry, and they are all hitting some 52-week
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highs. you see down arrows, the major averages, and now you do see the thermal fisher pulled off that, and cvs care mark, i did not check. i don't know whether that hit a 52-week high. the other four are hitting 52 #-week highs today. when i think of gilliad, i think of it being on track for hep titus c, and i think of shell gene doing well with a drug. we are watching health care names doing well in the environment. back to you. cheryl: nice to see a sector performing well with a negative day on the street. nicole, thank you very much. see you very soon. well, two prominent political names trying to do what congress can cannot. former republican presidential candidate, huntsman, and senator of west virginia are leader of a partisan group calledded no labels. they think they might be on to something.
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are they? >> they might be. they might be. i think the idea here is we've seen how badly washington works over the last two years including at the fiscal cliff point a couple weeks ago, and the reality is there's not a center left in washington. there's left and right and not much in the middle. if there's not much in the middle, you need a new attitude on how to solve problems. both sides have to agree they are going to disagree but figure out solutions to frobs, and to do that, you have to talk to each other, and what no labels, the organization of republicans, democrats, and independents is getting together and trying to do is create a place where people can talk from both sides, and that's what joe mansion, a democratic senator, used to be a governor of west virginia, and huntsman, recent presidential candidate, also former governor, are trying to do. as former governors, they know at the state level, you have to solve problems and get past party levels and have conversations, and that's the goal here above everything else. cheryl: a new political activist
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group, if you will, trying to change things in washington. that's one to watch. another thing wes are watching is who is the next treasury secretary. all signs pointing to jack lew who is currently working for the president in the white house already, but at the same time, he took a backseat in the fiscal cliff gerkses. was it a calculated move to keep him out of the spotlight? >> it might have been. it was a less profile role than in 2011 with the negotiations. he was in a different role there, evolving from budget director to chief of staff, and now he's just been chief of staft. he was a lightning rod in 2011 with talks of raising the debt ceiling and backed away. could have been a calculated move to be safe for the expected treasury nomination. it's not certain yet, but that's what everybody expects to happen. it was an attempt to move tim geithner, the outgoing treasury
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secretary forward a little bit. either guy became very important in the final enproduct, but joe biden who was the key negotiator from the white house. how much is planning and how much is just the way things have always been. cheryl: i don't know. you know, charlie, one of my colleagues here in fox business, reported for months that jack lew would be the new name and gilet near would be out. it's months of reporting. seems to me the president knew a long time ago jack would be the guy. at the same time, it's surprising he would take on a fight like this with congress with when he has the chuck ha golf course e -- chuck hagel fight as well. it's like he doesn't care what republicans or nip thinks in washington and does what he wants. >> i don't see a fight with jack. he's not popular with republicans, that's true, but the other side focuses the fire on one main target, and other people get less, and i think the
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fire is going to be devoted to, pointed at chuck as you suggest. i think that jack lew, is not wildly popular among republicans is respected as somebody to used to run the budget office and who spent a lot of time in the career up on capitol hill working as a congressional staffer. he knows the place. he'll be owing in the nomination struggle, not unanimous consent or a love fest, but he'll be fine. cheryl: interesting. we'll continue to get your take on all things drk. thank you. >> sure, happy to be with you. cheryl: next up, back to the world's largest electronic show, and liz claman with the verizon ceo and what your smart phone can do for you. look at the ten-year treasuries. moving more than they were yesterday, down three basis points today. there's the 30 year, 40. ♪
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♪ >> i'm tracy burns with the fox business brief. a down day in the markets ahead of the up official kickoff to the fourth quarter earnings season when alcoa reports after the bell today. small business confidence ticked slightly higher in december. the national federation of independent businesses latest reading up half a point in november from 88, the second lowest reading since march 2010. they blame the weakness in the labor market and pessimistic outlook, and surprising number of owners expect conditions to worsen in the next six months. general motors with a new campaign for chevy with efforts to improve the global image. the new tag line, "find new roads" replaces "chevy runs deep," and that's expected next moments. it's the first global campaign for chevy. that's the latest from the fox business network giving you the power to prosper. d#
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♪ cheryl: look at the purse, your pocket, and you know it's been the year of the smart phone, and as we are glued of course to nfl on fox for the playoffs, wouldn't it be nice to watch the game on the phone while waiting in line to pick up the food? we are with the man who will make it happen live at las vegas in the consumer electronics, show, liz? >> no football game looks good on any phone if it was all smudged up. i want to show you these. these are to gears. ceo of verizon, how many of you have nasty screens? okay, what is on here? fungus? it's growing on the verizon's ceo screen here. take this little thing, and this front part is the part that cleans the phone, okay? it cleans it, the backside polishes it. okay, now it's all better now. >> all right, thank you.
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>> all better. ceo of verizon gets special treatment. the keynote announcement, this afternoon -- >> right. >> is going to be the -- i'll watch any nfl game on my phone which is quite impressive. tell us about the deal, and, in fact, it's so important that roger is coming in for it. >> we're pleased roger joins us in the middle of the playoffs. we developed technology that you can take the different camera angles that you have, there's 17 of them in any one stadium, and if you're in the stands and want to watch the replay from any angle, you can do that and customize content. we are excised about that. we'll take that mobilely so you can do it at your home. >> do you pay them for the content? >> we had a relationship with the nfl for years now so we're a big sponsor. i know you guys are as well, and so it's a great -- it's a great marriage, and so there's not a lot new here from a financial
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perspective, but more leveraging the content available. >> do you foresee striking a deal with soccer or the u.s. tennis association. is this only the beginning of that opportunity? >> yeah, we're a big sponsor with indy car already. at the indianapolis 500, you can pick angle of the turns and watch from each car. this applies to any sport out there. >> let's talk about how you believe people -- you're doing this because you're a businessman. how many people do you think would dump existing carriers, obviously, football fans, for precisely this opportunity to stand in line buying the chips as we said -- >> right, right. >> or be a page in the car. >> well, we hope a lot will. if you look at this year in the fourth quarter that we announced, 30% of the customers are new to us, and they come to us because we got the best network. as we bring more and more of the best applications on to our network, we think more people will want to come to it. >> when you were talking about
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this yesterday, at an event, you said, and i want to get this quote right, "oh my gosh, i watched a certain play within an nfl stadium on my phone while i was driving, and i saw the replay." obviously, the distracted driver is a huge issue. you guys have been focused on safety. >> yeah, exactly. >> to clarify, what did you mean? >> i was in the passenger seat, okay? i don't drive very often by myself, but that's the flexibility we are looking for. one of the things we'll talk about at the keynote this afternoon is that all the things you can do in the car so it's our plan to bring the living room experience or the stadium experience, at least into the backseat of the car, and probably into the passenger seat, and we'll clarify some of that today. >> what a great position you are in right now. it's the year of the smart phone. everybody has one now, but do you worry about penetration levels being, at this point, high for capital events? >> before i became the coo of
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verizon wireless, i was working in europe, and they talked about 50% the ceiling, and 100% the ceiling. we talkedded about 400% and 500% the ceiling. we don't know if that's true. >> okay. when you say that, you mean so somebody buys a phone, and six months later, they buy another? >> the number of devices that everyone has. the theory is that if everybody has a smart phone, you're done. woal, we proved that, and that's not true already. you can have a laptop. you can use your car. you can connect that, our share everything plan are all about putting multiple devices on to the one account. we can see eight, ten, 15 devices if you look at playstations and things like that that peoplement to network. you just see that all over the show. >> okay, there in lies the issue, the pipes, the band wide t. you have it. there's a need to soak up more. the question becomes why not say, for example, by dish's wireless spectrum they bought $3
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billion worth, and nap -- and now supposedly $12 billion. what are you going to do with it? do you want to buy some? >> i like the position we're in now. we bought the c-block in an auction four years ago. just last year, we bought the aws spectrum from the cable companies. we're in a good position where we don't have to do anything. the critical thing was is to make sure the spectrum fits with the holdings you have. i talk about people that have a breakfast, it's difficult to make that work in a network, and when you're about reliability, you got to make sure that stuff all works in harmony. >> not looking to buy from dish? >> it's not top on the list right now. >> here's sprint with clear wire. they want to be a player. >> sure. >> when they grow up, they want to be verizon. you have to be careful of the david's in the world versus you, the goliath. >> i hope we don't view
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ourselves as the goliath, but as entrepreneurs. that's why we are so aggressive in developing applications. one of the things i'm going to talk about this afternoon is a $10 million verizon powerful answers award that we're going to put out there, a million dollars for each winner that brings the next application that helps in things like health care and energy and that sort of thing. that's how we stay on the leading edge. >> getting ipos from everywhere. as we finish up, you were one of the ceos who signedded the fix the debt campaign, a plea and pledge to washington, d.c.. >> uh-huh. >> do you feel we fixed the debt with the deal that we got? >> liz, i'm an operate, not an economist, but i'm very disappointed of what's coming out of washington. i don't see anything that makes us feel we'll get the debt under control, bring confidence back to business, and see that in the investment cycle reignite in the business, and we have to change that. >> look forward to future conversations with you. >> thank you. >> i have to finish cleaning your phone. >> you got it.
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>> he has an iphone 5, let the record show. with this -- how much? $14? , this cleans it up, and it's cute, in boy and girl. >> i'll be back often to have you do that for me. >> thank you. by the way, coming up, as i said, dish's ceo, joe clayton, first on fox business speaking to us first. they have such disruptive technology with ad skipping, and going to the next level. more lawsuits from the networks? all of that and more live from the las vegas of the consumer electronics show. back to you. cheryl: your phone's never dirty. constantly on it, liz. >> i don't want to know what's growing on my phone. cheryl: see you in "markets now," thanks, liz. actually, staying in there it's west coast minute. what is the mogul up to? nothing to do with the electronics show. google ceo on the ground in korea, and what the state
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cheryl: time for your "west coast minute," and investigators preparing to investigate a royal dutch shell driller moved off the coastline of alaska. it ran aground last week, but no oil spilled. the shell president says the company is sorry about the incident and begin an assessment of the vessel to determine their future exploration plans in the area. google chairman now way out west in north korea. she's one the highest profile american executives to ever visit the communism nation.
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despite criticism for the trip, he arrived with former new mexico governor build richardson to meet with the country's military and economic leaders. richardson has been there about a dozen times in the last 20 years. wynn resorts with a new division to develop hotels outside las vegas, but in the country. they will target philadelphia and eve represent, massachusetts, according to a spokeswoman. that's your "west coast minute." melissa and lori up are next with a lot more news. stay with "markets now." [ indistinct shouting ]
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