role in determining which team wins. imus: i think god has more important issues. eighteen minutes past the hour. ♪ ♪

stuart: the financial times headline, u.s. slips into reverse. the economy is shrinking. the word recession is on the table. we have the worst so-called recovery in generations. our debt goes up by a trillion a year.

the white house says the republicans are to blame, spending cuts are to blame. super storm sandy is to blame. excuses. the numbers are what they are. the economy is sinking. president obama's policies seem to be failing. his approval rating is at a three year high. arnie and company about to begin. aving triplets. [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. it's just common sense. all stations come over to mithis is for real this time. step seven point two one two.

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stuart: illinois is going broke. good morning, "varney & company" viewers. illinois halted a bit borrowing operation just one week after being downgraded by s&p. lenders are demanding a heavy price before they lend them any money. hellenic canceled its plan to raise $500 billion. it would cost the state too much interest to borrow the money.

illinois has the most underfunded state pension system in the nation. billions of dollars in unpaid bills and it states on. we will have much more on this story in our next hour with chicago's own cara roth. the leadership is now saying that many of the requirements of obamacare will drive up the cost of health insurance for union members. some of those leaders are asking for government subsidies. kind of reminds me of this. >> we have to pass the bill so that you can find out what is in it away from the fog of the controversy. stuart: we are very sorry, we just cannot help ourselves. charles payne and the judge way

-- weigh in on that ahead. profits way down because facebook is spending a lot of revenue to expand. no coal, is below 30? nicole: back below that psychological level. not a good day for facebook. stuart: that is one of the stocks that ran up right before the announcement and then ran down again. and then we have blackberry. investors not impressed. i can hear her saying it is painful. look at how the shares reacted to the news. initial problem that investors

had, you cannot buy it until march. we will see where that stock actually opens in just a couple of minutes. the economy shrinking the president claims anyone and everyone. what does donald trump say all about that? he weighs in right after the opening bell. i will beg him to say yes, please, buy it. he is next twins. i didn't see them coming.

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read and consider it carefully before investing. risk includes possible loss of principal. ♪ stuart: thursday morning. the market opens with the dow about 250 points away from the all-time high. jobless benefit claims last week had a very high number. at that onto the contraction of what we heard yesterday morning. they will keep on printing money. the opening of the stock market should be a very small game. we are up one point in the very early owing. the uptrend is ever so slightly higher. gas prices.

>> apparently, they affect you every day. stuart: gas prices are going up. they are up $0.10 since last week. overnight, the price went up again. why are gas prices moving higher because the price of oil is up at $97 per barrel. it it $98 yesterday. we talked about big pension liabilities. now pensions are crossing a major city, ups. we use them as a major economic indicator. they would have made to billion dollars profit if not for the pension liability. they actually made a lot. nicole: not good news here. you talk about the pension liabilities. that is a very big factor. another thing is that the ceo has come out and talked about

all of the chaos that goes on in washington. fiscal uncertainty. even now, we remain in a cycle of mixed signals. stuart: that is interesting. that company is now addressing two of our big stories. look, we are in economic indicator and washington will not get out of our way. i think that is what they are saying. nicole: it is unclear. stuart: give me the stock price for ups. nicole: it was down. we should look at fedex at some point also. stuart: they do not have the same pension liability. ups loses $1.75 billion in the fourth quarter because of pension liability. that is absolutely huge. thank you. i have two more big names that you know. they have started trading.

shares of blackberry after the big announcement yesterday. look at facebook. making more month. there are still concerns about how the company wants to spend that money that they have coming in. they spoke opening well below 28.97. not quite to google that they were supposed to be. a big name that you know and you probably use, mastercard. nicole: higher profit, higher revenue, higher stock. it is a very simple recipe today stuart: i remember back in the day, what we first went on the air, that stock was down 130 if i was not mistaking. you are on a series of winners

this morning. keep it going. big news on the economy. it is shrinking. the first time we have seen that since 2009. are we headed into another recession to mark joining us now is donald trump. usually people require big lengthy introductions. welcome to the program. >> thank you, stuart. stuart: are we headed for a recession? >> i do not know. i bought a lot of facebook at 16. at 40 it was not looking so good. i am not much of a stock picker. i do not do it for a living. it just sounded like a good bargain. that is an indication of what is going on in the world. i sell the numbers from yesterday where we are going down. that is not a good number. we can grow out of all of this if we had an economy that was really churning.

yesterday's number was terrell. stuart: jay carney came out and basically blamed the republicans. it was a series of excuses. >> you have to do it from the private sector. if you are not going to do it that way, but, it is very tough when china is taking our business, all of these other countries are just laughing at us and taking our business. they say that is booming again. well, of course they are booming. we bought all of their products. when i build a building, i go out and place it in i buy chinese products because they manipulate the hell out of their currency. stuart: i do not understand why

president obama does not take a firmer stand against china. i think it would be politically popular, but he does not do it. why he does not allow us to drill, why he doesn't allow us to grab all of that energy. also, why he does not a stance against china. i have a great relationship with china. what are the chinese want? any job. you would not believe that, but maybe they respect me. anything trump. china does not respect us. they do not respect our leaders. i am amazed that obama does not allow us to go and get our energies so we can get rid of opec for a change. the greatest abuser of all is opec. the other is why they do not do

something about china. stuart: china has the money and we want to borrow that money. >> if we turn things around, we do not have to arrow the money. we would be a great country again. we are headed in the wrong direction. it is interesting that in 2016 that they say, which will be interesting china will supersede us as a great power a great economic power. if somebody said this ten years ago, it was unthinkable. that is a pretty sad fact. stuart: we had another report out last week that said you were looking to buy the "new york times." i am hoping that is true. >> i think a lot of people are hoping it is true. i have looked at it. their numbers are tremendously

bad. they sold their quarters building for, i think, $175 billion. the guy who bought it flipped it a short time later for $500 million. they bought the boston globe for a billion to and it turned out it took 600 billion to sell it. stuart: is it true? are you looking at it to bought it. >> they have the class a class b stock which makes it very tough. stuart: a lot of us are just praying that mr. krugman reports to you. >> that would be very interesting. that would be a lot of fun. stuart: i pray that the day comes soon. donald trump. what a pleasure. thank you. we also have this story involving the "new york times." for the last four months, it has been attacked by chinese hackers

. last october, the times published an article about the wealth of the family of china's private minister. the paper has managed to expel the repel them, i should say and can help them from breaking back in. correct they should apply in this got him a flight to space and then they penetrate the atmosphere. >> they are everywhere.

to make those commercials. let's get straight to it. three stores that will simply make you scratch your head. first, a group of 150 celebrity chefs sent a letter to new york governor andrew cuomo urging him to plan backing. why are chefs getting involved in the fracking debate. we will ask one of them. number two, a shooting in president obama's hometown. the victim, a teenager who performed at his inauguration last week. where is the president on this story? and third, anti-gay remarks.

the pr machine it cranked up. the response, his comments were misinterpreted it. what? we have the story. what do you think. send your e-mails. here we go with seven early movers. it is thursday morning. better than expected profits. supporting outlook for the data storage provider, that would be huge and i owe. profit is up on qualcomm. what questions say that again. in this online -- invisiline braces. more money than expected coming

in at las vegas sands. that stock is nicely higher. sky work solutions gave an upbeat outlook. not bad, everybody. let's look at the dow for a second. we are down 13 points. we are just below 13, 900. we want to know how the blackberry ten will go over when it finally goes on sale. will corporate customers stay with blackberry push mark we don't know, but we have a guy who knows next. ♪ actly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade.

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♪ stuart: oh, dear. look at blackberry today. down another 6%. before they release the new blackberry ten, i think

blackberry was around $18 a share. now it is 12.86. we have the senior research analyst here. welcome to new york. good to see you. can blackberry, with this blackberry ten, hold on to and expand its corporate customers? >> to hold onto, yes. this is the kind of experience that customers have been waiting for. devices get old quickly. technology moves really fast. here comes blackberry was something now to get the current enterprise users something they can really use. stuart: better than the old one? >> absolutely. stuart: how about young people who like the iphone. the smart phone users of this

world. though google, the android phones, the microsoft phones, for heaven sake. can the blackberry ten compete with those smart phones. >> i think it will be on their consideration less. blackberry has to bring it. stuart: i know that is what they have you do. can they do it without phone. you make a judgment. >> i think they can do it, but it will take some time. stuart: i am told there are bugs. they have to work out these bugs in february and deliver the phones actually in march. >> that is plenty of fine. bugs are nothing new to smart phones. apple maps. that was not just a bug. that was a pure disaster for apple. some of the bugs that i am hearing, these can be done over the air very quickly.

in time you have a new platform and a new device. the two months they have ahead of them, i am confident that they can get it done. we were billed up to the blackberry ten. it was do or die. they have to have a real revolution and it has to be good. is it a real revolution for blackberry? >> i think it is a big huge turning point for blackberry. stuart: if i asked you, would you buy the thing at $12 a share, you will not answer me, will you? >> i am on the tech side. stuart: two years ago, you told me this, i do not actually remember it, but you told me that i said to you that nobody will want a blackberry touchscreen because we want keyboard because that is what i like. >> you can have that keyboard. they have a version for that

also. stuart: that is the touchscreen. >> look at how much content. look at the e-mails, you can read the whole thing instead of having to scroll down again and again. stuart: you think i am going to change? >> you love your keyboard. i know that. stuart: and the guy that keyboard with his thumbs and walks into lampposts. [ laughter ] stuart: bottom line, this will be a hit. it will take time, but you like it. we appreciate you being with us. thank you very much, sir. where are we this morning? we are down $14 as of right now. listen carefully to this. san francisco 49ers makes homophobic comments. the pr machine now working

overtime on that. it is stories like this that keep public relations firms in business. charles payne is with us. he has opinions coming up next. ♪

♪ stuart: it is a pr nightmare for the san francisco 49ers. one of the players said he would not accept a gay teammate. "we do not have any gay guys on the team. they have to get up out of here if they do. cannot be with that sweet stuff. he was quick to backtrack and he said this. the derogatory comments i made yesterday were a reflection of my thoughts in my head, but they are not how i thought. then we have the official pr response "his intent was not that at all. he is one who celebrates the differences of others. all of this was a big mistake. it was interpreted wrong." they really give the pr industry a whole lot of business. it seems to be that pr is damage control around absolutely everybody who is out there that says anything. charles: if you are in the

public light, you have to be correct. you cannot stray from that to matter how you feel. i am sure what he said is probably how he felt, how he grew up, but in this world, it is the tightest change. he is not savvy. he spent the last, you know, his whole life learning how to play football, not deal with public relations. if you say what you think on occasion you require a pr person to make it right with the public. charles: if you hurt the feelings of a lot of people. stuart: thank you, charles. illinois broke. cannot even afford to borrow money to pay its bills. plus, more unintended consequences of obamacare. unions that were for the law and complaining it is driving up costs for its members. another reason for us to play

this. >> we have to pass the bill so you can find out what is in it, away from the fog of the controversy. ♪ all stations come over to mission a for a final go.

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but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. stuart: illinois's in crisis. it tried to borrow 500 million dollars. it had to cancel. here's the story, illinois's broke. it owes businesses in the state 9 billion dollars. it owes its state worker retirees, 96 billion dollars. it cannot pay. it has dramatically raised taxes and it still cannot pay. the big failure is with pension

reform. the unions have blocked it insisting that all the promises made in the past must be paid in full. now, they try to borrow and they can't. at least not at an affordable interest rate. so they are stuck. they are in crisis. we've said many times on this program that what illinois really wants, what it says -- really looking for it is an obama bailout. they want a pay off for voting heavily for the president's reelection. will they get it? more importantly are you in texas, new jersey and all over the country, are you prepared to give them your money? stuart: let's get right at it. illinois at a stand still. they can't borrow money. it is a crisis. wgn radio host is our person in illinois and she joins us now. yesterday they were trying to

issue a bond, trying to raise 500 million dollars. they had to cancel it because the interest they would have to pay would just -- they couldn't afford it. are they now at a stand still unable to pay bills and they can't borrow? >> well, stuart, you know, i have been in corporate finance for many years before i was a radio host, and i can tell you, when a bond issue like this gets pulled, even though the pr says it was because it was too expensive, i'm telling you, there were no buyers here. the reality is i'd like to say we are the heart beat of america. but illinois is the deadbeat of america. and we need to get serious about pension reform. otherwise we are going to be in a real state of crisis. stuart: they could not get pension reform through. they tried. i mean, there were plans on the table. they could not get it done. the legislature i think adjourned was it last week or something? they could not get anything done. so i'm asking, where to from here? >> it's a really tough situation, stuart. obviously they are going to try

and pass it back to the taxpayers, back to the private sector, individuals who are working hard. there are only so many more taxes that can be extracted from the people of illinois, and there's going to be a massive exodus at some point in time. and illinois is really a proxy for what's going on at the federal level as well. i'm hoping that the fact that they are saying this bond auction was pulled. i'm hoping that will be the muscle, the catalyst they need to get serious. we have been down this road on a smaller scale before and there's always unwillingness to compromise here. and it's 100% the government pensions, union pensions, government spending and it just needs to stop. stuart: any hint that they will ask for help from the feds? >> well, you know, rahm emmanuel is already trying to do that in terms of -- he's already trying to shift that back on to the federal healthcare system. so i would say that that is a tactic that they will possibly

look for. the problem is that the united states can't afford it either. at some point the passing of the buck has to stop with somebody because somebody has to pay for it and nobody has any money. stuart: carol, i want you to stay there for a second. this is a nonfinancial story but very much chicago related. just one week after she performed at president obama's inauguration, a teenager from chicago was killed in a shooting. the unintended victim of a stray bullet. she was with a group of friends in a park taking cover from the rain when a man opened fire on the group. she was shot in the back. the white house says that president obama and his family's thoughts and prayers are with the family. carol, you live in chicago. i have to ask, where really is the president on this? thoughts and prayers with the family? okay. what else is he doing? >> well, listen, stuart, you know, if he was going to be here on this, he would have to be here every day because this

story happens every day. sometimes multiple times a day in chicago. we have over 500 people in the city who were killed last year. and i'm sorry that no assault weapons ban, no high capacity magazine ban, none of the things that they are talking about is going to solve this problem. we already have that in chicago. stuart: come on in, charles. this is surely an opportunity for president obama to throw some leadership in this area. charles: absolutely. i have been very upset about this because everyone is focused on guns. nra has somehow become the most evil organization in america when in fact the overwhelming you know largest percentage of victims of this are black people and overwhelming people who are killing them are black people. it's a true violence epidemic. the fact the president hasn't spoken out is -- it's a shame. you know, i've got to tell you -- >> and you know -- charles: carol i was just going to say, on saturday, i think like nine people were murdered. and a woman named share

shirley -- shirley chambers her youngest son was murdered. four people in one family murdered, wiped out. it is a violence epidemic. why isn't chicago is up in arms? i wish black people would get up in arms. we can't give the president a free pass. this is a true violence epidemic that's destroying this nation. >> it's a huge problem. the problem here, it's a gang problem. it is the elephant in the room. i wish somebody would stand up and say let's make gangs a terrorist organization. they are terrorizing our streets. they are killing the young kids of chicago, and so let's take some real serious stands that will actually affect what's going on here instead of cosmetic policies about cosmetic weapons that will not do anything. stuart: but please can we see the president say something and/or do something about what's going on in his hometown? i think we can agree on that one? >> he's going to do it every day. he's going to have to do it every single day. stuart: well then do it. >> it happens every day in

chicago. stuart: then do it. carol, thank you very much indeed. to the big board, let me give you a quick check of what's going on. modest up trend, up 20 points, 13,930 right now. to nicole, blackberry, wall street not a fan of those new phones that came out yesterday. and the stock is -- nicole: not the touch-screen, not the key pad, it is down 7%. this tacks on to yesterday's losses of 12%. we showed that chart earlier in the show and i used the word painful. i mean, everybody had been waiting for blackberry 10 for 18 months. it's here. it was all the rage. and where was -- you know, where was the excitement? where was the confetti? where are the actual phones hitting the stores? there's going to be a big lag between that also. a big disappointment. stuart: the stock has gone from 18 to 12 in a couple of days. now that's a drop and a half. all right nicole thank you very much indeed. fracking -- you have got to listen to this. fracking seems to be the new environmental battleground. even though there is a lot of evidence showing it does not

contaminate the ground water. chesapeake energy, the number two producer of natural gas in america is even letting the epa test underground water at its well sites to see if fracking pollutes. perhaps further evidence that it may be safe. still there are many on the left who are adamantly against fracking. among them, believe it or not, chefs, 150 of them have sent a letter to new york governor cuomo urging him to ban fracking. chefs against fracking. one of them joins us later this hour. we're talking environmental policy with a pastry chef at 10:35 this morning. now this, a republican senator introduced new legislation yesterday that would stop or overturn every decision made by the national labor relations board, the nlrb in the last year. this comes on the heels of a court ruling that said president obama exceeded his constitutional authority by making nlrb appointments when the senate was on a break. all rise, judge napolitano is

here. i don't want to get into the constitutionality or otherwise. it's been ruled unconstitutional; right? got that. my question is -- >> you're talking about the recess appointment. the manner in which he used them this time around, yes. stuart: okay, unconstitutional, that's decided, got it. >> they will appeal to the supreme court. right now that's the law in washington, d.c. stuart: i'm sure you agree with it. >> i do. stuart: now tell me this, all of the decisions made by the nlrb, using those recess appointments, those recess appointees, must they now be reversed, resinded? -- rescinded? >> yes, because the statute enabling the nlrb gives them five board members and requires a quorum of three every time they make a decision. when they only have two who were confirmed by the senate and three who were recess appointees, by definition they haven't had a quorum. so everything done when there were fewer than three confirmed by the senate is invalid from the beginning. stuart: you say it is invalid.

will those decisions be actually reversed? >> that is a very -- stuart: if they are going to appeal to the supreme court, that will take forever. >> it will. it will. and the white house will dismiss the decision of the united states court of appeals to the second circuit even though it is subject to it. the white house will take the position if you don't like the decisions that were made, challenge the decision. every time a decision is challenged, the decision will be vacated. but unless the white house gets a sense of following the law and unless the nlrb gets a sense of following what the courts have said the law means, it is going to require a challenge to each decision. stuart: each decision could be challenged and then vacated because of the unconstitutional appointments. >> yes. charles: i read also where the verdict wasn't just on this particular -- these recess appointments but the notion of recess appointments in and of itself. if that's the case, could republicans be reluctant to push the issue thinking one day we

will be back into power? >> absolutely. great point. here's how it's worked. the president can't get somebody confirmed. i will use our friend and colleague john bolton. doesn't have enough votes in the senate. waits till the senate on recess and makes them a recess appointee. can't do that anymore. now the vacancy itself must arise during the recess meaning the office becomes vacant and the vacancy must be filled during the same recess. that's significantly shrinks the power of the president to use recess appointees. they have been using them for 200 years most aggressively in the past 75. stuart: very interesting. that could be a real change. >> in fairness to obama, with whom i disagree on almost everything, he's used far fewer recess appointees than george w. bush did. charles: one quick question, do we call the people now who got those appointments, are they illegal members or undocumented? [laughter] stuart: that was good charles. >> unconfirmed. what about the salary they have

collected? stuart: let's get to obama care. we've got a story here. a doctor from wyoming, this is what he said on fox and friends this morning about unions complaining about healthcare costs going up. >> these are the unions that actually lobbied for and supported the president's healthcare law. as one union member said, he said i saw the president say if you like your plan, you can keep it. now i'm finding out that i can't. you know, the president promised insurance premiums would drop by about $2500 a family in that first -- by the end of his first term, that hasn't happened. prices have skyrocketed and now unions are saying hey, we can't afford health insurance coverage for these employees, these members. stuart: oh boy, not only can't these unions not afford obama care, they are asking for government subsidies for their lower paid union members. let's bring you into this first, charles. charles: we've said this many times. listen, we can't fund this type of a government, just taxing the rich and even the unions are

going to have to put more skin in the game. i think it is a reality. i'm surprised they didn't realize it themselves. a lot of people found out with the payroll tax cuts and all the other things that this is an expensive proposition that the government is trying to have here. stuart: obama care is not affordable. it is wrecking our finances. >> do the people have recourse when the public officials materially mislead them about the likely consequences of the law? in this case, no. he's not -- he can't run for president again. he couldn't care less. the only recourse really is political. there's no legal recourse. you can't sue because you promised it wouldn't happen. we're stuck with it. stuart: he's not standing for reelection. >> correct, quite frankly i don't think his goal now is to please the unions. his goal is to get that big federal hand regulating healthcare. stuart: i think you are right judge. >> remember the original proposal was single payer being the government. so the more instability there is in the healthcare system as a result of obama care, the more future governments will say well

only the federal government could handle something this big. stuart: they wanted a british or canadian system. judge, excellent stuff, thank you very much indeed. back to nicole. tri-point homes went public today, selling shares for the first time, and i think it is up big. nicole: it is indeed. the original range was 14 to 16 dollars. priced at $17. here it is at $19.76. that's a gain of more than 16%. so this is a home build earl coming into play here, during a time where homebuilders have done very well over the last 52 weeks. the last time there was a home building ipo was eight years ago. and right now it's looking pretty good. had a nice -- had a nice start. stuart: we will take that. thank you very much indeed. facebook says it is making more money off of those mobile ads. can it keep doing that? can the revenue from the mobile side of things go up and up? is facebook still cool? that's next.

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stuart: blackberry stock, blackberry that is still falling more than 24 hours after it announced the release of its all new blackberry 10. a guest said bugs are expected with the new phone, but nonetheless he likes them, but nonetheless we have blackberry down again this morning. it is at 12.75, down a buck. it was at 18 a few days ago.

ups reported that it lost almost 2 billion dollars last quarter because of pension liabilities. if it not for the pension costs, it would have made money. ups a mini illinois? we have ups down, $79 a share there. look at facebook, stock down following an earnings report where the company said it would spend more money. investors do not like that even though it is bringing more money from mobile ads. facebook is down to 29. we are going to discuss that. is it cool? in just a moment.

stuart: oh dear, some bad news for mr. brian kilmeade. i almost beat him in the poll we took yesterday over who had the better interview with emmitt smith. keep in mind i don't know much about football and kilmeade is a sportscaster. here's the results, brian kilmeade 50%. stuart varney 47%. 3% apparently undecided. i consider that a moral victory. i know nothing about football. that's as to who did the better interview with emmitt smith. a moral victory to varney. let's get to facebook, shall we? the stock drops below $30 a share, even though the company is making more money on mobile devices. joining us now is chris ruby, founder and ceo of ruby media group. welcome to the program. >> thank you. stuart: we asked this question about apple, has it lost its cool? i'm going to ask the same question about facebook.

has it lost its cool >> you know, i think it is a very interesting question right now. i think what it is ultimately going to come down is a redefinition of what the coolness factor is for facebook. if you look at the fastest growing demographic on facebook right now is women 33 to 55 years old. stuart: there was old people that liked ipads, that reduced the cool factor of the apple and ipad. young people don't want to be associated with old people. do young people want to be associated with youngish and middle aged women who have gone towards facebook? >> well, not necessarily. i mean that's why you see more of them going towards sites like instagram or pinterest, but i don't necessarily think this is a bad thing for facebook. i think in the end in terms of profitability, i think there's discretionary income in that bracket, women 33 to 55 where that could help them in terms of

profit. stuart: they haven't worked out to get the money out of the people who are using facebook, have they? >> they haven't. that's something they are working on. stuart: value judgment, are they going to find a way to make serious money out of all those users. >> i think they will. i don't think they are there yet. i think they will. stuart: you don't give financial advice but would you buy the stock at 29? >> would i buy the stock at 29? right now i wouldn't. stuart: you would not? >> no. stuart: if you have a long-term horizon, and i have a long-term horizon, would you buy it at 29, 30? >> i would wait. stuart: do you own it? >> i don't currently. stuart: okay. there's the kiss of death from kris ruby right there. [laughter] stuart: i have to move on to blackberry. they are out with the new phone. you have one with you. >> i do. this isn't the newer one. i have both phones. i never got rid of my blackberry. stuart: which one? >> this is the iphone and this is the blackberry. it is not the newest ones, but

they are both. stuart: what do you think? the new blackberry, will it compete well against the iphone? >> i think it's too little too late, unfortunately, as a lot of people are saying right now, you even look at the hash tag blackberry 10 on twitter. there's really mixed reviews about this. i think what they came out ultimately for rimm should have been released seven years ago. stuart: at the moment it seems like it's also rimm. you have android, microsoft, you have the apple iphone. these are really entrants and along comes blackberry as you said seven years late. i take it you are not real keen on blackberry as an on going profitable concern >> you know, it is interesting, i actually am with the key pad. i think the new model they are going to release with the key pad will be good. i think people who currently kept their old phones and have both phones, i think for them they are not looking to have two smart phones just like the iphone. when they think of blackberry, they are thinking of a key pad.

so i think the whole -- people were thrown off yesterday with that launch, and granted the key pad is coming, but it's going to come out after. stuart: yes, but the key pad is what corporate customers want, so you can text and e-mail with your thumbs. >> yes. stuart: that's what i want. and you think i'm going to be satisfied with this? >> i think when the new one comes out with the key pad, but i think, i mean, i think it is not going to be enough. i think you still may need another phone. stuart: okay. lukewarm on facebook and blackberry. that's how i would describe it. >> yes. stuart: kris ruby, thank you very much indeed. >> thank you. stuart: president obama blames everything and everyone for the bad economy except his own policies. that will be my take and that will be next. twins. i didn't see them coming.

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stuart: breaking news for you, fox business confirms that the obama administration is shutting down the jobs council. the president rarely met with the council. the last meeting was nearly a year ago. by the way, the announcement comes the day before the big monthly jobs report that's 8:30 eastern tomorrow morning. do you have any comment on that, charles? charles: the jobs council itself

was a joke. they haven't met in a year. it turns out it looks like he had a whole bunch of business people who were trying to get a few goodies from the president and vice versa. it wasn't about independent p thinking. he never took any of their true thoughts or concerns under advisement. it was a joke from the beginning. stuart: remember the shovel ready jobs? charles: yeah. stuart: i've got to ask you, what do you think about the jobs report tomorrow? could we go to 8%? not out of the question, is it? charles: it is not out of the question. if we go to 8% because people are coming back to the jobs market that's not necessarily a bad thing. we do need to see real job growth, over 200,000. stuart: let me check the big board for you. it's a very modest gain. up 5 points that's it. to nicole, the video game maker take-two interactive is way down, and i want to know why. nicole: i'm taking a look at it. by the way there's a crowd behind me for constellation. i have to see what's going on there. it looked like it was halted. let's take a look at take two.

talking about grand theft auto 5. and the release of this won't be until september. it was supposed to be in the spring. this is by the rock star games. that's the publishing label of take-two interactive. with that 6.2% to the down side. this crowd is here for constellation brands. stuart: constellation brands, wine and liquor, i believe, they have been halted. i want to find out why and we will. nicole you find that out for us. then we have hydraulic fracking you know how you get natural gas and oil out of the shale under the surface, could bring thousands of jobs to new york state. already helped north dakota's economy boom, but a group of chefs, yes, chefs, if they get their way, no fracking in new york state. we will talk to the executive pastry chef, she's among 150 big name chefs who sent a letter to

governor cuomo urging him to ban fracking. she makes her case. chefs against fracking at 10:35. there's always an excuse. for the last four years, every time the economy turns sour, the white house tells us that really everything is okay. it's just that pesky storm or the japanese or the europeans and of course there's always president bush to blame. here's my take, enough with the excuses. the president's economic policies have failed. we have the worst so-called recovery since world war ii. and now we find the economy is actually shrinking, again. so the administration gives out the excuses, the big storm, sandy, a drop in defense spending that's why things are going badly now. in previous years it was the fault of japan's tsunami or the slowdown in europe or those republicans or the downgrade or president bush or the arab spring, the list goes on and on. but what president obama will

never do is admit the truth, which is, we are in a mess because government spending does not produce growth and prosperity. and that has been the president's policy. all government, all the time. spend, spend, spend. take it from this group and give it to that group and he will then vote you in for a second term. the measure of failure is the size of the debt. president obama has added 5 1/2 trillion in four years. that is astronomical. what have we got for it? an economy that is now shrinking, again. enough with the excuses. face reality. change course. the private sector, that's what he should do, but he won't. all stations come over to mission a for a final go.

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so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent. i'm colin beck of fidelity investments. our integrated technical analysis is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. stuart: got to get back to nicole for this constellation brands, they are the wine and liquor company. they were halted. they opened. then they've halted again. give me the story. nicole: the first time it was down 10%. now it is down 20%. it reopened and dropped another 10%. all together down 20%. this is a ruling, the department of justice now is moving to block the merger of anheuser-busch in bev and constellation brands. they are trying to get this thing reopened in the next five minutes. but when you have the department of justice, and this is in washington court, stepping in and basically working to block that merger of anheuser-busch inbev and constellation brands

and so as a result, they're -- there are easily 60, 70 traders around here gathered around. stuart: it has everything to do with blocking a merger. nicole: right. stuart: nicole thank you very much indeed. western states, some of them are truly booming because of fracking. now that's a process which gets more gas and oil out of bedrock and it does indeed create a lot of jobs. in new york state which wants to get in on the action, there is a group of chefs, yes, i'm talking chefs here, people in the kitchen, if they get their way, there will be no fracking in new york. joining us now is executive pastry chef, she's an all around chef and entrepreneur, heather carlucci. she is among the 150 chefs who have sent a letter to governor cuomo urging a ban on fracking. welcome to the program. >> thank you for having me. stuart: point number one, give me 20 seconds, what's wrong with fracking? >> lack of proof that it really is a clean way of getting

natural gas from our shale beds. we have more than enough proof at this point to really question the fact that it doesn't affect our food systems and our water resources. stuart: it affects water resources. >> absolutely. stuart: let me quote you from lisa jackson, the epa administrator, in no case have we made a definitive determination that the fracking process has caused chemicals to enter the ground water. second quote, again epa administrator, i'm not aware of any proven case where the fracking process has itself affected water. that's lisa jackson, ardent environmentalist at the epa. she directly contradicting your point. >> yes, she is. and i know of these quotes very well. stuart: you don't believe them? >> well -- stuart: is she wrong? >> yes, i mean it's a situation where my mother used to like to say -- [inaudible]. stuart: this woman is an ardent environmentalist.

you reject her entirely? >> i don't reject her entirely. i think there are other things to look at. stuart: there's been an extensive study of 11 different regulatory bodies at the federal level, all of whom have looked at fracking. in those 11 they could not come up with one proven instance where water has been contaminated by the fracking process. not one. go. >> okay. in my job, i'm a chef, which to most people seems very limited and elitist in a sense. the fact is, we have to deal every day with farmers, people who are out there who for the last 20 years have really gotten i would say the short end of the stick on any level, whether it be commodity dairies -- wait i'm getting there, give me a second -- and anything else. many of these people have spoken up widely, they do not have government behind them. they do not have big oil behind them, saying pretty much the

minute they signed it and the fracking started, their crops died, they have gotten sick. what we have to really be careful of is up until recently the epa has not -- was an unregulated technique fracking by the epa. this is all very new. charles: i've done a lot of research on this too. and the idea that this is new is not right. it goes back to 1860 when liquid nitroglycerin was first used to breaks rocks and shale. it's evolved a lot since then. by the way, most of the time you are drilling substantially below even where the water bed is. once they do the initial hole, they do the concrete. they cement it. i mean it's -- i mean, it would seem maybe, you know, anecdotally that there could be problems, obviously anything you are dealing with, there could be man made mistakes here and there, but you are talking about taking hundreds of thousands of people who could have a job, heather, and you are saying i don't want you to have a job.

>> i'm not saying no natural gas but you can do it by way of traditional wells. stuart: if fracking was released into new york state, hundreds of thousands of jobs would be created high paying jobs at no cost to the government. you are denying those people the opportunity. >> i'm not denying. we're denying alternate ways of doing this. why can't we use traditional wells? stuart: because you can't get it out of the rock. it's the shale rock formation that goes under pennsylvania and under new york state. >> i know where it goes. stuart: conventional methods do not get the gas out of the rocks. >> we are told all the time read, look, and go out to these people's places. go look at the people who are actually working trying to save their farms, their land. we're talking heartland of america here. stuart: unknown to you, i have done that, because i own extensive property above the shale. i own that property. >> so do i. stuart: i virtually live there and i have met a lot of farmers

who want to frack because they need to save their farms. >> and i agree with that. my own neighbors are -- would like it more than anything. i don't have this conversation with them because i have seen how they have suffered over the years. stuart: they are going to lose their arm. >> absolutely. stuart: and you are denying them the chance to keep their farm. you are. >> no, i want us to be able to question more the list of chemicals that are used in these things. you can't not go drilling into the earth and not -- you're talking about man made mistakes here and there. man made mistakes here and there with chemicals that are not -- that are considered industry secrets. charles: we need it. pennsylvania, it's an economic miracle, hundreds of thousands of jobs, billions of dollars in tax revenues. in north dakota, it is the most amazing state in this country right now. it was a dead state. there was nothing but dirt in the summer -- dirt in wintertime and few sunflowers in the summertime.

it was dead. it's a vibrant place in america right now. >> they are also having problems with health and dying livestock. stuart: here's how we're going to end it. >> it's already over? stuart: one more time, lisa jackson, okay? i'm not aware of any proven case where the fracking process has itself affected the water. that's it. >> may i say one thing? when i was in the green room i was listening to you talking about how chesapeake had done the studies and i feel like chesapeake -- stuart: no, excuse me, chesapeake has opened up one well to the epa -- >> one well. stuart: wait a second. totally opened it up before they drill, during the drilling, after the drilling, there will be extensive tests. >> why not all wells? stuart: numerous wells, this is the study from lisa jackson. they have studied numerous wells. now chesapeake is going overboard saying come on in. look at what we're doing. >> why should we have a boom and bust economy, five years the

land is no good? stuart: heather we appreciate the opinion of a chef on the issue of fracking and we hope you will come and see us again. >> let me talk next time. stuart: come on. thanks for being with us. >> thanks for having me. stuart: the super bowl is big money. a big part of that of course is commercials. ad agencies making top dollars to produce those ads. we talk to a man who made a big-time commercial. how much did he charge to make this? >> dad, where do babies come from? >> uh, oh, well, there's a planet. it is called baby landia. it's filled with babies, uh-huh, babies of all kinds. and when the time is just right, there's a --. ♪

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♪ the 2013 c-class coupe. ♪ starting at $37,800. ♪ stuart: let's move away from fracking shall we to the housing front which i call a bright spot in the economy. the latest read on 30 year fixed rate mortgages from freddie mac, 3.53%. that's up. that's almost a 1% gain -- no it's not. it's not up 1% from last week. it's up from about 3.40 to 3.50. facebook continues to hover around the $30 mark, after releasing its earnings. facebook says it will spend more money. investors not keen on that. and facebook's at 30. gamers will not be too happy and neither will analysts as take

two, the maker of the grand theft auto series took a plunge this morning. take two announcing it will delay the release of the latest game in the series. it was going to be this spring. it will now be in september. that stock is down 6%. don't like delays. we will be back in one moment with a brilliant ad on the super bowl. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. all on thinkorswim. ♪

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the new law hopes to save the country millions during the year. france needs the money. they're in dire financial straits. this is the country where the socialist government is imposing a 75% tax on its wealthiest citizens. lights out in paris. super bowl sunday is this weekend. many of you might be looking forward to the commercials just as much as the actual game. commercials like this one from kia. >> an amazing nine month journey, they find their mommys and daddies. and that, son, is where babies come from. >> but jake said babies are made -- stuart: it goes on. it is really good. that is the space babies ad for kia. it will air in the fourth quarter of sunday's game. joining us now is the man who made that commercial. i'm going to say the man is a genius. david angelo, the founder and chief creative officer at david and goliath. nice name for the company.

brilliance in that ad. congratulatio congratulations. >> thank you, stuart. it's great to be here. stuart: you must feel pretty good that you made one of the very expensive ads that's going to run in the fourth quarter. is this the pinnacle of your career? >> no, i wouldn't say that. it is like any other ad that we have -- any other challenge that we've had. but it does raise the stakes for everybody. we've got to bring our a game. that's what it's all about. stuart: this is a financial program so i'm going to ask a financial question and i believe that cbs is going to get 4 million dollars to run that commercial in the fourth quarter. >> yep. stuart: how much did you get to make that commercial? are you going to tell me? >> how much did i get meaning how much did the company kia motors pay us? stuart: i know this is very rude of me, but, you know, we are a financial program and i'm stuart varney and i'm going to be rude. what was your fee? >> well i can't mention the fee

on tv, but i will say that it's just as important as any other ad that we do out there. stuart: okay. seven figures? >> how much do you make? stuart: oh, no, that's private. come on. come on. [laughter] stuart: let me do this in a roundabout way. let's do this, how much did the agency, the company, david and goliath, can you give me a ballpark your? how much did it cost to make? all the costs thrown in, how much did it cost to make what is a brilliant ad? >> oh, well, i'd say that -- well, we all know how much it costs to run; right? stuart: yeah. >> i'd say any agency out there worth their grain of salt, it would behoove them to come up with an amazing spot because i believe at the end of the day, they get to keep the business because of that. stuart: okay. how much? >> how much? stuart, i can't say that. stuart: is it 10 million? is it 5 million?

is it 3 million? i mean, you know, give me a ballpa ballpark. >> it's a nice amount. stuart: charles? charles: david i wanted to ask, how are you guys judged? are you judged by the industry -- industry saying wow this is a great ad or does kia sales have to go up to have a long-term relationship with them? >> ultimately everything comes down to sales. you could create amazing work but if we're not attracting people in the show room, then, you know, it's just money that we're throwing away. charles: do you get a bonus for that? stuart: good one, charles. >> i get to keep the business. and it's worked for the past 13 years. stuart: you see, david, we always keep pushing. that's the way we are in tv, on fox business. but look, david, i think it's a terrific commercial. i will be watching all of them and i will especially watch yours. it was a real pleasure to have you on the show. you are a creative genius. thanks for being here sir. >> thank you. stuart: a shrinking economy,

more excuses from president obama and his fellow democrats, all of that next. at a dry cleaner, we replaced people with a machine. what?

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stuart: you just can't resist it, we play that graphic in honor should we say of the shrinking economy. and the list of excuses the president and his administration like to put out in response to

that declining economy is endless. here's donald trump on that subject in our last hour. >> very tough when china's taking our business, when all of these other countries are just laughing at us and taking our business, you know, you look at what's being made in this country compared to over there, and now they say that china's booming again. well, of course they are booming. we buy all their products. and i buy their products also because they manipulate their currency and they make it very tough if not impossible for united states companies to compete. stuart: charles, for what it's worth, i think america's economy is in decline regardless of china. charles: well, it doesn't have to be though, that's the point. the excuses, jay carney blaming the republicans for the gdp report. that was absolutely shocking. we have an anti-business agenda. listen, the president seems to be proud of it at times. his inauguration speech he didn't talk about growth. he didn't talk about business. he has a fairness doctrine, a fairness agenda, that means taking from powerful organizations like businesses and giving the power to the people. that means lower profits, lower pay, and an anemic economy.

that's the consequence. stuart: i think you have it right, charles. the highlight reel, that's coming up next. [ male announcer ] how can power conmption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. twe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.