the fox business network, thank you very much. >> until what time, just curious? >> 6:00 p.m. the problem is, if you start as the year why for your husband or your have been or indicating if you're suspicious they're right to stop messing around. [talking over each other] melissa: if i had known about the suggested there would have had some private detective following my has been around. >> the essence of any relationship. >> seas met your has been. he adores you. melissa: it's also -- what is going on here. valentine's day purchases. i mean, so we are all sectors. i get my has been a very romantic star wars that starlike up. >> i love that. melissa: why are you laughing? this is a great gift. death star lego. is that your lovely gift right there? >> i got cards for my husband. chocolates for my kids and my

nanny. yet. melissa: that's it? you are approving the point. he was out here earlier saying that women now spend any money. >> my husband get me cards. that was it. no jewelry. >> i am not giving -- we are taking a nice long ride and a romantic weekend. melissa: i think a jaguar is a wonderful gift. >> on the 13th for your mistress. a more appropriate gift. melissa: a gift to receive got here. >> bits of chocolate is good. >> i love these puppies. melissa: what did we say earlier? this gift is good for two nights, the jewelry, longer. melissa: and going to make nothing of that and let it go. >> you need to ask her why she wants jewelry. melissa: happy valentine's day. gerri: hello, everybody. i'm gerri willis. tonight on "the willis report" less than 48 hours for president obama's bush for spending a great energy democrats unveil a new carbon tax.

also, a growing problem hurting our nation's children. public-school teachers constantly calling in sick and you are paying for it. and the new american airlines. will it mean more fees and higher fares? we are on the case tonight on "the willis report." ♪ we will have all that and more coming up, but first, risky federal programs. by that i mean a new report by the government accountability of this unveiling the 30 federal programs and operations that3 have the highest risk for race, fraud and abuse, six of which have been the lowest ever since it was first released in 1990. with more on this demand editorial board member of the wall street journal. my question was, only 30? >> that's right. this is only the latest lesson.

if you go over the reports from the last ten years are so you're going to find literally hundreds of programs that have been on the watch. by the way, i go back to the early 1980's when you have the famous reports of the regular administration that found huge events of ways, many programs still exist, and the reason i think this story is important is we are coming very close to this point where we are going to have these automatic across-the-board cuts of about five or 6 percent in his domestic programs. the agency heads will say we can't take these cuts. it will require, you know, cuts of valuable services, and vatican support for the american people to know, here is where the waste is in here is where you can make the cuts. >> batch of medicare. the department of defense, position with waste. i think that's a great point. what was entertaining at the very least that this report, and it was sort of funny, this idea the climate change is the problem. that is what is causing some of this waste, fraud and abuse.

this is crazy talk. what we're talking about is that they cannot control the cost. we spend whatever, you know, we want to if there's a hurricane. there is no control. many gets wasted. it is not a bad climaae change. it's that the government doing its job in the best way possible. >> one of the points that the gao made really was because climate change is such a catastrophe and we're going to have more storms and more hurricanes and, i guess, more, you know, snow blizzards to me know, we will need even more money for these agencies which is interesting because, you know, if you just look at the data over the last five years to actually, prior to sandy we had had less severe storms than any time in 30 years. you know, i mean, it is amazing. they pick one storm m1 pinpoint and say this proves something had been trying to talk about by the way, how many programs were there to mecca think, six are seven programs dealing with global warming? mike pantages.

>> host: gerri: here is the interesting thing. g.a.o. points out that these press run of control and just rife with waste, fraud and abuse. yet the president just days ago in the state of the union saying kamal we need to double that of climate change in their spending for climate change. what you make of that? >> well, i discovered a rule in washington. have been here for 25 years. if the program is not working that means we're not spending enough money. if the program is working them into should be spending more because it is. i think that is the attitude. really, truly, that is the attitude of congress. for not spending enough, the president says this program is working, let's spend more. there is always an excuse to spend more money. gerri: even with sequestration we're talking about cutting the growth of the federal government, not about cutting the federal government, right? >> that's for sure. if you look, we wrap up these numbers in our editorial last week. the average federal agency got

about 25% increase in their budget of the last four years. so they can take a 5% cat. the most amazing statistic camino, we spent -- i think the number was close to $60 billion on sandy, most of which, by the way, as you know -- he reported this on your show, most of that was not because of the immediate damage to the store. guess what, the media now we spent was more than the cuts on the domestic agencies from the sequestered. gerri: wow. okay. the big kahuna in my view on this list, it never gets taken off, medicare. that is something that has absolutely got to be fixed. if you're talking about entitlements spending in effect and we cannot correlate and aggro -- it grows in the obligations are huge, as could read the front. had we do that? >> well, i would say that i might take issue with one thing. medicaid may have more fred -- from the medicare. both of those big boulders of the budget have enormous amounts of fraud. people, what wealthy people,

there will take all the assets from their parents and put them in a medicaid nursing home. just why example.

thank you for coming on. >> great to be with you. gerri: over a trillion dollars in the taxes coming in the form of carbon taxes. that is a sweeping environmental proposal unveiled by two of the most liberal members of the u.s. senate. barbara boxer from california and bernie sanders from vermont want to make polluters to manufacturers, and power plant operators pay for the pollution they generate. joining me now with the top republican on the senate energy committee, senator lisa murkowski. thank you for being with us again. great to see you. the carbon tax, good or bad idea >> this is something that is going absolutely nowhere. if what is proposed is something that is going to increase the cost to the consumers, this is just not going to happen. and when you think about the proposal that has been before the cut across, the captain trade proposal, it does not even

take out the democratic lead said. it did not want to touch that. and of the to going to want to touch a carbon tax either. this is something that is just going to increase the cost to the consumer at a time that nobody is looking to increase their energy costs. we should not be looking to increase it. we should be making our energy more affordable. gerri: let me give you some numbers here. the heritage foundation as part of some pretty high-popping numbers on the cost of the carbon tax, above and beyond the tax itself. it would result in a loss of a million jobs. it would raise a family of four energy bill by 500 bucks per year. gas prices would rise by $0.50 per gallon. we're talking about massive economic impact. and that's because of the end of the day, let's face it, senator, energy companies are not going to just pay that tax of the goodness of their art. it will pass that on. >> pass that right on to the consumer. exactly so. and so to suggest that somehow or other that this is going to

be -- i understand that the proposal allows for some kind of a rebate to the consumer, well, if all the cost of around you has gone up this rebate back to you is not going to get suffice. it is not going to even the playing field. the cost is going to be borne by the consumer, and those that will be hurt the most are those who can least afford it, the most vulnerable to pay high energy costs. we are paying five, six, $7 per gallon for home heating fuel. the idea is we will just increase that price and now you need to do is use less. tell that to the people who are facing a winter where it is 40 degrees below. gerri: here is another way of looking at this. what will this do to energy production companies and their ability to fund growth, new investment opportunities? will they shut down, close down? what is the impact the industry?

>> i think the impact is entirely negative. they're going to make that business judgment decision. they're going to go elsewhere. all of these jobs and we have been seeing that have been helping the struggling economy, those jobs in the oil and gas sector coming in not calling to see those. so when we advance policies that, again, increase that cost to the consumer, increased cost elsewhere so you're making business juices is to go elsewhere, tell me how this is good for an economic policy. tommy have this is good for an energy policy. >> well, the attractions are many for people left. they see 1 trillion raised over a decade. what they say in what i would like to respond to is, this will get people off of oil, of of coal, of all the carbon-based fuels. they see that as positive. do you agree? >> you know, i think that there are ways that we can move to that next generation of energy.

and we can do it by encouraging these breakthrough technologies. think about where we are with natural gas right now. not even -- not even ten years ago we were looking to import. because of the technologies they're out there we have shifted dramatically from a time of scarcity to one of the abundance. so this notion that somehow or another we have to do is increase the prices so that we will use less of our resources, it just doesn't pan out. wire we not smart to acquire we not tapping into the american ingenuity and engineer way to the new affordable. gerri: is doing it every day. gerri: thank you for coming on. it's a pleasure to have you on the show an interest in the year take on this topic.

>> thanks so much. gerri: a lot more still to come, including president obama pushing to make preschool available to every single child in the nation. when teachers take coming up. if you're thinking of putting the question, older horses. finally, should be giving to assam after you walk down the aisle. ♪ [ male announcer ] i've seen incredib things.

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♪ gerri: happy valentine's day. are you getting engaged? you thinking about it? well, watch out because you may have to pay higher taxes. that is because americans marriage tax penalty is alive and well, which is to say that when a working wife and working has been married they pay higher rate than if they stayed single. according to the tax foundation

middle-income couples get taxed more for being married. the panel the its families progress of the harder the 28%, 33 and 35% tax brackets. it's just gets worse and worse. learning more than 450,000 as a married couple? you will be hit by the president's new 39% levy. divorce and each partner, living together, can earn up to 400,000 at the lower rate of with a higher one socks and. impact airbag it the other end of the spectrum, working couples often lose government benefits when they marry. then there is obamacare. you knew it would come up. by 2014 the new health care law will mean married couples will generally receive 1500-$10,000 less per year in health care premiums support that couples, of course, living get without being married. the effect according to heritage is greatest on a 60 year-old couple are about $30,000 each. their annual marriage penalty in loss premium reimbursement could be as high as that $10,000 i

just mentioned. even a lower income married couple of the same age earning $15,000 a year each would receive an annual government bonus of more than 4200 bucks if they chose to divorce and just live together. it makes no sense. the tax penalties that the country just as the percentage of in tax married families in this country have all -- fallen to an all-time low. while nearly 80 percent of americans are married in 1980, only 52 percent of adults and mary today. as a marriage penalty caused that? probably not, but it sure does not help. to find out how much of a penalty you are paying, if you are married and both of you working, to cut the tax policies tax calculated. and instead of planning a big proposal when not dinner and a movie, any movie you watch a valentine's day will have to be avram,. for some suggestions era that top grossing romantic comedies of all time. tonight's five to five top five.

there's something about mary. ernie 176 and a half million dollars. a story about ben stiller. does not go too well. number four, julia roberts classic pretty woman for 1990 grossing 178-$000,000. he does not love of modern-day cinderella story? and number three, the story of the day dr., hitch, starring will smith. it earned 179 and a half million dollars and also stars eva mendez. what women want. mel gibson is the ability hear what a minute thinking. that doesn't go well either. nearly 1,803,000,000. the number one top pressing romantic comedy is, of course, my big fat greek wedding. 2002 sleeper of more than 241 million. two could not relate to this? is a great story.

coming up, the latest on the possible merger between two major airlines at what it means for you. despite getting ten weeks of the year, a new report shows teachers are taking off even more time than that, and it is costing you and your kids more and more every year. details coming up. ♪ look, if you have copd like me, you know it can be hard to breathe, and how that feels. copd includes chronic bronchitis and emphysema. spiriva helps control my copd symptoms by keeping my airways open for 24 hours. plus, it reduces copd flare-ups. spiriva is the only once-daily inhaled copd maintenance treatment that does both. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate.

these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd spiriva helps me breathe better. (blowing sou) ask your doctor about spiriva. today is gonna be an important day for us.

you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers. gerri: first of a universal health care now universal pre-k. our nation's teachers are missing in action. the stories in 60 seconds. away.

announcer: get caught buzzed driving, and you could do some hard time. woman: craig. knock it off! sorry, mom. announcer: it could cost you around $10,000 in fines, legal fees, and increased insurance rates, and that could set you ba a few years. buzzed, busted, and broke because buzzed driving is drunk driving. ♪ gerri: teachers missing in action. your child's teacher picking up record amounts of days a year, and it's costing school budgets

big time. starting me now, president of the national council on teacher quality -- teacher equality. thank you for coming of the show. great to have you with us. this is one of those sleeper issues that a lot of people don't pay attention to. and i see from the fact that we put together that one in three teachers this ten plus days in 180 days cool year. that sounds like a big number. what is going on? >> it is a lot, and this goes back decades. and the districts make bargains with teachers that instead of giving them big raises they give them a lot of time off. gerri: well, do you think it does anything for students' performance? and me, was the impact of the end of the day? >> well, the real harm is on student performance. we know that when teachers are absent from their classroom and anyone who has ever been to school will be able to tell you that when you have a substitute teacher, very little learning takes place. gerri: i seem to remember that

myself. apparently this cost schools 4 billion per year, and why hasn't this issue really made its way to the front of the classroom when it comes to things that we need to solve in education? why the people ignore this? >> any superintendent he took this on would probably not be a superintendent for very long. it is a very tough issue. this is something that districts agreed to, like other not, and superintendents these days have a lot more serious issues when it comes to us how teachers are evaluated, how we are going to assess student learning and teaching performance. they are preoccupied. so this is a no-win situation for any superintendent. gerri: just don't have the political will to do it. i want to turn your attention for just a second to another topic redressed in to take a medication, and that is the president's plan to start, well, near universal free-skate. you must have a $10 billion plan

to get younger children in to school. boy, this sounds like, why would you add another program when the schools that we have have some of the problems as it is? >> well, the president is right that there is tremendous benefit from putting children who are living in poverty in to the early school. we know that when kids arrive in kindergarten there are already so far behind than their middle-class peers, very, very hard fed to catch up. this idea of providing schoolteaching children live in poverty makes all the sense of the world. where i don't agree with the president and that think a lot of people take issue with his view is that all children need access. we need tech, instead, look at giving poor kids access, not just at age four, but ages three and even to. gerri: that sounds really expensive. you know, i looked at some of the research on what is happening. it seems like it is next.

a lot of the benefits go away by the third grade. it is not sustainable. why throw more money at this when we all have appeared on the works right now anyway? >> you're absolutely right. but preschool don't have long lasting impact. not high-quality preschool. and a lot of the programs that we have in place in this country are not -- they are not high-quality preschool. they are not attending to children is real academic deficits that need to be addressed. so when you look at head start, which has -- a long history of really not paying a lot of attention to academic deficits of children, it is no wonder that the impact is not lasting through later grades. but more importantly, you cannot expect a great preschool to compensate for a very poor elementary school. so no matter how great the preschool is coming you also need great elementary schools. gerri: you sure do, and i hope we get closer to that every day.

at the dollars to. thank you for coming. appreciate your time. now we want to know what you think. here is our question. should the government april pre "2 cents more" everyone? logitech gerriwillis.com, but on the right inside the screen in a chair results of the end of the show. coming up, ceo of new york apple bees will join me to share out president obama's latest push tight the minimum-wage will impact his business and next american and u.s. air weighs about to become one. does that mean higher ticket prices are on the way? complete coverage after the break. ♪ i'm lorenzo.

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♪ >> from our fox business studios in new york, here again is gerri willis. gerri: american airlines and

usair ways are officially merging to create the world's biggest airline. the new company would have a market cap of $11 billion, much higher than that of united continental which currently holds the title. so who would know who? reports the american creditors would own about three-quarters of the new company. u.s. airway shareholders, about a quarter. notice i said creditors verses shareholders. american has been wallowing in bankruptcy since the end of 2011. this deal brings them out of that all. now many changes resulting from this merger will be felt for some time. the airlines will be able to make changes until after the merger is approved by a bankruptcy judge, and departments of justice and transportation, which could take months. the biggest change you will see is rising air fares. the sensor will be less competition. the big questions around the frequent-flier programs. first off, you will not lose a miles you already racked up. programs and a burst of the past which typically what happens to miles from both the merged into a single account.

since going to remain american airlines, the most likely scenario is americans won world alliance will be the rewards program this is in place. now, that could also mean a serious lack of rewards to availability, something american practices that u.s. air treats as an unwanted expense. for more and what this means for you, let me bring in ceo of fair prepared outcome. always good to have you on the show. this is a big, big, big deal. what does this mean for people's bottom line to back. >> i think for most consumers in the short term it does not mean a lot. think of it this way. there is one less airline to fire on an air fare sale that every airline has to match. there's one less airline to drag its heels on another airline raises prices head for central back. take that multiplied by four, four big mega mergers in the last four and a half years and that's just -- that competition and a daily activity that occurs is going to drive up prices. that is probably a problem for

20-15, 2016 and beyond. right now -- gerri: it takes awhile. >> yes. it's going to take a while. right now airlines are trying to raise prices. they tried three times now in the past five weeks. they have not been able to because people's wallets will let them. gerri: what they do is roll out these price hikes and as everybody in the world does not follow the taken back. i'm going to give you an interesting example of what could happen to ticket prices. after the delta merger on one route between st. paul in atlanta prices went up 20%. that is what we could be looking at. some rich kid just 55 people can get hammered. prices that just go through a roof. do you think will happen? >> there will be -- yes. there will be some winners and losers. big cities like dallas, probably washington d.c., l.a. will have cheaper prices. there will be some cities, like you mentioned on some roads like atlanta to chicago where the prices go up dramatically. the ones they're going to get the worst of the smaller cities

because they don't have a lot of competition. one hundred of the city's right now that american and u.s. airway service. those cities, that is 4900 routes, and they're going to have less competition. when prices go up there is no competition to drive them back down. they will take the brunt. gerri: i want to show folks another picture. all of these pictures. so this is the hub. where we going to have the up? think there will be a total of eight. new york, philadelphia, charlotte, miami, dallas, phoenix, chicago. now, what do you make of this? is this a good list? does this make america more competitive to equity make of it? >> sure. the eastern seaboard as blanket. washington d.c. would be included. i think the loser there is philadelphia because it said so close to new york and between washington. the growth from the new york. philadelphia is a little bit

with u.s. airways rolling back some of its international flights. on the western seaboard electing in los angeles and phoenix being the only ads because alaska has a lock on the pacific northwest. phoenix will lose a little bit. los angeles and dallas and chicago probably gain. the loser, probably phoenix and philadelphia. the indices will get more traffic cheaper prices. gerri: one more quick question that i have to go. frequent fliers will merge. good news for frequent fliers. any downside? >> well, a couple of things. you're merging a huge program. you're talking about a hundred million folks in the combined airline. and all those hundred million people want to get to know why, london, paris, rome, orlando, and las vegas, so there is a big problem. the other problem is in the new model at $100 a barrel while there is no into middle seat. as would typically be given away with rewards. those will be available the folks as well. gerri: we have to find some

bright side. it's a tough story. thank you for coming on. great to see you. >> there will have some new aircraft and other things, so there are few bright sides. gerri: maybe it will serve hot food. your nose. picture coming out. >> thank you. gerri: be sure to tune in tonight at 8:00 p.m. eastern. joined by the ceos of of to these companies. another big deal making is on wall street. warren buffett is buying catch up, all of it. his berkshire hathaway is teaming up with the brazilian backed investment firm to buy h.j. heinz demean of the company. the price tag of 28 billion come including debt. a 20% premium on the company's value the day before. his second biggest deal ever. earlier here he spoke to of liz claman on why he chosen a private equity partner and if that means he may eventually sell. >> one thing i can assure you is that we will own our interest

and maybe even a larger interest over time in hines. my guess is a partner forever. gerri: and the big winner today is that new -- part me, i can't get it out, secretary of state, john kerry, already one of the richest politicians in the country, married to theresa heinz carry and heir to the fortune. unset disclosure records his assets included three and a half million dollars in shares. so he made a 700 does not profit today. not bad working get it. when we come back, investors are asking, where is the love. president obama's call for a hike in the minimum wage is causing maximum of rage. a restaurant owner tells me hello will hurt its bottom line. ♪

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♪ gerri: the minimum wage issue is red hot yet again because of president obama this week. >> tonight let's declare that in the wealthiest nation on earth no one who works full-time should have to live in poverty and raise the federal minimum-wage to $9 per hour. gerri: $9 per hour. that would be a 24% increase from the current $7 in the quarter. but what will it do for the economy and job creation? treading me now, the ceo of new york apple bees. thank you for coming of the show. appreciated. was your reaction? >> concern. concern about the country, not

for me or my sick, but the macro . there are three things in our space that are critical, food, liquor, labor. if you don't control those three you are not in business. gerri: you're seeing costs go up across the board. >> well, food, let's look at that. proteins, cattle herds are getting smaller because of court, price of feed, so they're bringing the cattle to market center. lighter and that raises supply and demand raising price and supply. and then the next as labor. so we raise the price of labor. they have to give somewhere. having said that to my want to say, we employ thousands of people. i do not expect that we will employ less. gerri: really? >> no. we're in new york. gerri: to the pushup labor prices across the board? >> that is my concern, the macro, not about our company. if someone made $7 an hour and somebody else may $15 an hour from and that's a dollar spread. now the $7 guy gets nine.

the guy making 15 says the word i lose $2 worth of my value. gerri: yet to give me more. all of the wages go up. and it's like when you tax something, you get less of it. here is the price on labor, fewer people will have jobs. >> there are many, many marginal companies in aerospace. raising the price of labor while they can't raise a surly the price of the product they're selling, what can happen? and that is my concern. i want to make it clear again, not for our company. we're going to move forward. gerri: he said that. i want to address something that is being completely misrepresented command here this from politicians, news anchors. they said the minimum wage is not a living wage. in reality this was never meant to support a family of four or a family of three. the majority of people who make minimum wage in this country are young, under 25, students, either in college or high school, people who are at home with mom and dad.

>> exactly. it is not meant to do that, but it is meant to be entry-level. for example, if we hire record in the kitchen we may hire him at $7 an hour. within two months to three months he said ten or 12 or 14. he has to come and learn what he is doing first. so if you make the entry level affordable you can bring more people in to enter. gerri: and you know when i read, typically within the when you're the majority of people who start at minimum wage have raised. so they're not been awaiting more. >> and if they are you're probably going to let them go somewhere along the line because they have to demonstrate that they're worth more. gerri: how much, you imply people. it seems to me that when you have these entry-level workers, whether it's minimum wager not because of the market uri, you are giving them almost as much as they're giving you because you have to train them, explain to them how the market works >> absolutely. we bring occur again. we teach him to be embroiled cook. first thing we do is crosstree

him. he takes those skills were he wants to move to california, he is now a full-fledged cut. we bring a minimum. we raise them as they begin to demonstrate the capabilities. life goes on. gerri: life may not go on for some workers. >> my concern is for the companies that have marginal, that are just getting by, and there are thousands and thousands of them. and they employ 100 people, 50 people. let's see where this goes. it's about employment as far as i'm concerned. gerri: i could not agree more. thank you for coming on. great to have you on the show. pushy your time. minimum wage is just one of many things talk tying businesses these days. taxes, and low taxes, not to mention cheaper property values are attracting hedge fund execs from wall street to south beach. our cheryl casone spent the day in miami talking to those making the tax flight to florida in the growing business community is a big sslling point for recruiters. >> what we are seeing is the

florida could become the next manager capitol of the world. we are seeing many hedge fund executives coming down here, opening a shop. you guys been at the new york recruiting new employees basically. how many have you know brought down from the tristate area down to flooida? >> we have been recruiting from the york and other parts of the country actually. florida offers a great quality of life. as you said, it is let it become a financial center also, i gave weight to south america. and with the american trade increasing day-by-day there is an opportunity for financial professionals year to really do well. the end of the day florida where we don't pay state income taxes, no city texas, and an easy commute to work and a lifestyle that is hard to beat. gerri: coming tomorrow, cheryl will be at the miami both show featuring three dozen of his boats on the water. you will want to miss that. still to come, my "2 cents more"

on a ridiculous and expensive practice in hawaii. the same old song as europe once again pushes the market down at home. we are "covering your assets" coming a. ♪

gerri: a deepening recession overseas pulling down stocks at home. we are looking out for you and your portfolio coming up in 60 seconds.

♪ gerri: europe today sinking even

deeper into recession, pulling many u.s. stocks down with it. the dow closing in the red today falling nine points ending at 13,973. the snb and nasdaq switched back into the green decks to better economic news at home. chief investment strategist for fulcrum security is here. rob, you know, you look at what we learned today. the jobless claims actually pretty decent number. we have some great armies going. and yet the market is down. one? >> yes, well, as you said, weekly initial jobless claims, three and 41,000 versus three entered 65,000 expected. that was a great number. but obviously bad gdp numbers out of your. so at the end of the day that gave us the mix markets. gerri: you know what i did not realize until i saw it in print is this is the third consecutive quarter of declining growth for europe. let me tell you, this is ugly, and they are an important economic partner for us. lots of demand for goods and

services coming in europe. this cannot be good news for the u.s. economy. >> well, it's not good news for the u.s. economy. but at the same time so many of the s&p 500 multinationals, they have really come from the distribution and selling standpoint, they are really trying to tap into the emerging markets. that, of course, is where we are suggesting to our clients that they invest. it is a little premature, i think. in early in the game to be putting money into european equities when there is so much opportunity in other countries out there. gerri: when do you think -- did you think the tone in the u.s. markets is changing in any way? it seems like we had some of just incredible weeks of people really excited. it is -- is it coming down, changing, turning? >> well, in january the s&p 500 was up 6%. so, you know, you multiply that by 12 months and you get 72%. that is unsustainable.

i think what we're doing right now is going through that type of consolidation which translated for your viewers is basically stocks are going to go sideways for a time while the earnings catch up to the prices. at the same time, stocks are still relatively cheap. i think i've said on your show before that the s&p 500 hits a record high. it's still only going to be 14 times earnings, so it's very cheap. so as of deposit momentum. gerri: you know, it has been the best thing to do this year. that's for sure. i have that individual investors get on to the program. thanks for coming on. >> thank you. gerri: coming up tomorrow, "the willis report" goes backstage at new york's fashion week. i spoke with two of the world's biggest fashion houses. look at these dresses, my friends. there gorgeous. an inside look at high fashion into our daily lives. here is a sneak peek. ♪ >> at think it is still not easy

out there, you know what i mean. really don't. i think that it is still tough. like us said, i think a woman appreciates something beautiful and there is always a little bit of space for that and her life. but it is still not easy. >> restarted and a recession, so it comes full circle. >> which is a great time to start. i mean, is it ever a good time to start at a fashion house to a pro when not. we weren't even we just jumped into it. you know, we're glad we did. gerri: hard times in fashion. seymour. tomorrow night right here on "the willis report." and then there is this. this stay in business. way back in 1929, one of the greatest milestones in medical and history occurred. penicillin was discovered. having left to play the bacteria uncovered on the other teeseven alexander fleming noticed that mold had killed much of the material.

more than 646 billion units per year were produced by 1945. in 1964 and 1965, he was awarded the nobel prize for the development. until the discovery of penicillin the on the treatments available for bacterial infections were highly toxic and poisonous drugs. penicillin opened the door to a variety of numerical drugs, but it saved millions of lives. today it is used to curb strep caught pneumonia. the most used antibiotic, penicillin, discovered today, february 14th from 84 years ago. we'll be right back with my "2 cents more" and the answer to our question of the day, should the government they crawl pre-k for everybody? stay with us. ♪ what's next?

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all stations come over to mithis is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. gerri: president obama campaigning issue pushing his plan to expand preschool programs, but should the government