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tv   MONEY With Melissa Francis  FOX Business  August 14, 2013 12:00am-1:01am EDT

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and fitness commission. i'll let you know how that goes, twinkies for everyone. we'll see you tomorrow, tha of 12.4 billion. david:hen will earnings be over. "money" wi lori rothman next. >> hi, i'm lori rothman in for melissa tonight. here's what's "money." the government steps in to squash us air's merger with erican airlines. it is creating severe turbulence for the entire airline industry but is it a victory for you and fellow travelers? we crunch theumbers. stepping out the e-cigaret boom. should they beegulated like normal cigarettes? why one ciiy's crack down could be a nightmare for the industry and public health nightmare across the country. >> "who made money today." board cage rattling is all the rage on wall street and these guys making a killing on it. keep watching to find out who it is. even when they say it's not it is always about money.
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lori: our top story, new delopments in the us airways and american air merger. the department of justice in six states filing a antitrust lawsuit to stop the mererger. the airlines were expecting to seal the deal in the next couple months. it could be taking a nosedive in light of the suit. although the justice department suit might kee the merger grounded for a while, the airlines are not taking it lying down. fox business's rich edson is live at reagan national airport with the latest. rich, what is going on? >> they thought they would wrap this merger up, us air and american airlines this quarter. we mayave to go to court because of this one. department of justice, six other jurisdictions filing suit, saying uh-uh, no way. this is from attorney general eric holder saying this transaction would result in
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consumers paying the price. higher air fares, higher fees and fewer choices. today's action proves our determination to fight for the best interests of our consumers by insuring robust compepetition in the marketplace. now the airlines always argued as part of this, in order to compete, american and us air, they hado merge. it would be a win for consumers ifhey were allowed to merge. in a statement rponding to this action by the department of justice today, the airlines say we believe the departmentf justice is wrong in its assessment of our merger. we will mount a vigous defense and pursue all legal options in order to achieve this merger and deliver the benefits of the new american airlines to our customers and communities as soon as possible." and one analyst says, eventually, they will merge. >> i think that it will go through. i n't think that this merger will be blocked. i think that overall the concerns that doj's been be addressed. and that, american airlines will
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emerge as large, number one, carrier in the world. >> lori, in the past there have been antitrust suits filed against mergers for the government to step in to try to move the merger on certain conditions to try to get some conditions that the government finds amenable to allow this mergetory move forward. we asked the department of justice about that today. doj officials said, no, the best thing for consumersn this case for this merger to never go through. again this well could be anopen. back to you. lori: many, thanks, rich. assuming the merger takes flight it would create the largest carrier in the world but experts and travele are worried it would cu competition and service all the while sending fares sky-high. here with h the merger will hit you and your wallet, airline consultant george hamlin. george, do you agree withhe partment of justice, will this result in higher air fares? >> we've we've seen in the recenter, delta northwest,
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united continental, air fares are going up in the industry. on the other hand this industry for the most part was going broke. there has to be a mdle ground here someplace. but what conces me is having approved the other two megamergers how can you not do thne? lori: absolutely. the previous couple mergers that the doj did not stand in the way with, ultimately, didn't it, make it inevitable that us air and amr would get approval? otrwise the two airlines, amr is restructuring out of bankruptcy will not be able to compete in this environment, do you agree? >> i tnk american would emerge successfully from bankruptcy but it would be handicapped long term and it woulde like competing with one arm tied behind your back and tiedo your ankle. lori: reading abouthe story today, a lot of consultants and rline industry exper says this is political. this hinges on us air getting monopoly at reagan international airport which is the closest airport to washington, d.c. lawmakers don't want to pay higher air fare.
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that is why they're targeting this particular merger. could this be as simple divesting some of those landing and takeoff slots? i know there is issue with having monopoly of non-stop flights as well out of that particular airport, reagan national? >> i think yes, they may need to shed some slots. that will be part of a garr baining process. when you say monopy, ignores the fact of almost every airline hub with the exception of chicago with two carriers competing at hub, hub carrier don't have monopoly but they have the vast majority of the traffic. at reagan national here in washington, d.c., us airways is offering service to a number of smaller points just as an example, non-stop to huntsville, al back if the sots for that go away, it is likely that one of the other carriers willse that for service to one of thr large hubs or another large city. plus there's competition in the huntsville market with united at dulles airport, 30 odd miles
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from reagan national, this is a bit after red herring in my opinion. lori: maybe i chose the wrong word with monoly but if the merger approved, us air at rereagan national would control 69% of takeoff and landing slots and likely hold on to those and not give them up to other airlines. what incentive would they have for doing that? the e.u., the european union, go ahead and approved us air and amr's merger on the understanding it would divest landing and takeoff slots at two airports, heathrow in london and the airport in philadelphia. what sort of concession would the doj accept. >> i don't know what they will accept but again this ignores the dominant carrier at a hub, and us airway alone even before the merger was intending to do some hubbing at national, basically have the ma the i don't have operations. it is not unusual. as a matter of fact part of this result of trade with delta that has 50% or more of the slots at laguardia which is a larger market. lori: all right. so air fares going up, perhaps
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not at pace inflation but it is just kind of the new norl and necessary evil consumers will have too accept, given the climate, is that your takeaway, george? >> to a great extent. it is more nuanced than that you have to accept the fact that you let the other twoo it already. how do you handicap the remaining competition? look what wi keep price honest in the market are the low-cost carriers like southwest. lori: thank you so much. george hamlin. okay, ne on "money," surprise, another key provision of obamacare is being delayed and this one could cost you big-time. rmer reagan economic advisor art laffer joins us with reaction. plus should e-cigarettes be regulated like normal cigarettes? one mayor is looking to do that and it could be a calamity for both t booming business and blic health across the countr don't go away. more "money" coming up. ♪
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♪ lori: okay, news out todayf another obamacare delay.
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and this one could cost awe lot of money. there was supposed to be a cap on hhw much we'd all have to pay out-of-pocket for health care but that provision is now in jeopardy and it could hurt big-time. wendell goler is following the story for us with the latest. wendell? lori, federal officials say it turns out some insurers use separate companies to administer medical coverage and drug benefits and their computers don't necessarily talk to each other. fferent companies have different limits on out-of-pocket costs and they say they need more time to figure out a way to keep tra of all the costs that people are incurring. the result is that some people with complex chronic medical conditions could pay twice as much as they would have if the $6300 a year cap was in place former aetna ceo ron williams says president obama was right to warn that obamacare would have start-up glitches. >> they're actually ting to recreate many of the functions at the insurance company have spent hundreds of years getting
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good at doing. what they're going to learn is, this is not so eas >> the president's critics say the change is more proof that the affordable ce act is to complicated. republican senator lamar alexander called it another sign of the obamacare train wreck coming. republican rand paul thinks the administration is overstepping its authority. the president said he warned people there would be startup glitches in obamacare. medicare and social security suffered the se fate. lori? lori: thank you, wendell goler. the new health careawelay is clearly a big blow to consumers. you heard the numrs. since insurers have a extra year before they have to limit on how much we allpend on out-of-pocket costs. here to break it down former white house economic advisor art laffer. great to see you. >> good to see you, lori. lori: seems like obamacare is falling apart. how could it be good and helpful to our nation at this point? >> i think it can be. when you give away somethi for
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nothing, people weill way over consume it. like putting me on a smorgasbord,. someone pays fixed costs and i eat for free and i go rig to the caviar until i throw up. that is exactly what is happening and they have to figure out some way of allocating. you're seeing first cracks in the super structu. delays and some delays that happened. i think lamar alexander was correct it will be a train wreck unfortunaty. lori: bottom line, how much will cost consumers in term of their premiums? it will push them up, it must? >> sure it will push up and push up insurance costs. lori: overall. >> the insurance company will bill federal government for reimbursements. that's going to happen. if you look at insurance companies and look at government, insurance companies are far more intelligent a focused than the government is. they will be able to play the sieve. unfortunately it will work out for the detriment of the country. then we'll have to repeal it three years from now or whatever it wl be. lori: artof course this is the
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president'signature health care, this is h signature legislation. >> i know. lori: he will not let it go down quietly. >> it will go down and may not go down quietly. it will go down and it will cause a lost damage. we hope it goes down sooner rather than later. we can get pack to very good health cre system we had before and correcspecific problems. there was no need for wholesale remaking of health care civi of america. we have a very healthy population. we have a good health care system, great doctors in this country. what we need to do is have good ol' competition, to keep prices and competition in line. people have to pay substanal amount for their own services otherwise they will misuse the resources. that is simple economics. that's aaw you can't break. lori: are you hopeful we'll learn this lesson on health care too late. >> no, we'll never learn it too late. we can always come back from it, lori. it will cause a lost damage in the interrim. that's too bad.
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this country will always come back and i'm sure we'll be a lot better off five years from now. lori: insurance companies and health care stocks have been performing well. is that a contrarian play? >> no, i don't think so. lori: in other wordsdo those investors realizehat obamacare is just not feasible? >> yeah. well i think what's happened with this, they're able to do billings to the federal vernment and reimbursement for these programs and they're able to do better as a result. they're getting far more of these procedures because the people don't have to pay for it and they want to get it. you' able to prescribe all sorts of things that probably aren't necessary, but would be a little it about helpful b surely not worth the cost. you can se the results in the health care stocks. lori: businesses have already implemented expectations for obamacare with, you know, their hiring and cital expenditures. >> isn't it amazeing? lori: how do you, you referenced this earlier in r conversation. it is going to be tough. it's going to be ahallenge and probably a hit to the bottom line. >> many soft ridiculous things. if you have all these rules how
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many hours you work and all that stufwhether you're mandated to have health care, put on to the exchanges and all that stuff, don't think these businesses don't know how to reduce the full-time employment to part-time employment so they don't have the health care costs. they can't keep below the ceiling limit of the health care required companies for the fines. so they can do all of these things and the are going to do it. businesses are vy, very smart. what you should do have them be smart in providing high-quality products at low cost, rather than smart at trying to get around the obamacare laws. that is not the way private enterprise works to make us a better country. lori: no, it doesn't. art laffer, always a pleasure. >> thank you, lori. lori: coming up on "money," sues epa. trying t g -- has it paid enough to get back in the game? we have both sides to debate it. plus one city preparing a crackdown on the e-cigarette boom. should they be treated just like regular cigarettes?
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that is t bng question if you will for the business. it also could create a public health disaster and we'll explain. do you ever haveoo much money? ♪
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lori: on to an oil giant's fight with the feds. bp believes it is being blocked om getti any new government ntracts and is now suing the environmental protection agency. it all stems from the 2010 gulf oil spil and the company says it paid its dues, pleading guilty to criminal chars and paying a staggering $4.5 billion in fines. so now it wants back in the government game and that lucrative business of federal
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contracts. chris faulkner, ceo of white link oil and gas. he says bp is punished enough. here to disagree with him is tyson slocum from public citizen. he says repeat criminals do not deserve government contracts. what do you believe the bp is suing epa, how do you vw this? >> if you look at that there is no ongoing invesgation to bp. if you answer to the question the bp paid enough, the federal government thinks s they close investigation. what i think so the interesting is the fact that the justice department filed a civil suit against bp. they want $11 billion in more civil fines. i think this epa sanction is a way that they're thumping their chest to give the justice department get bp to settle. keep in mind, bp is active contractor today. they have $1.4 billion of contracts with the government. if the lack business integrity which is the example government gave banning them from new contracts, why do they allow them to be a supplier to the government already?
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i think that contradicts their position. i thinthis is suspect that. lori: timing is absolutely serious. tyson, let me let you weigh in here. you disagree. >> well, of course. we at public citizen do not believedonvicted felons whether a corporate entity or individual person should be eligible for government contracts. so the epa is simply following the letter of theaw. in november 202007, bp pled guilty to 14 felony counts, 11 of them for manslaughter for the deaths of left 11 people bp acknowledged in its guilty plea it was responsible for the deaths of those 11 workers. importantly bp also pled guiit i to obstruction of justice for lying to congressional investigators. we at public citizen do not think that a corporate entity that has pled guilty for lying to federal officials should then be allowed to turn around and get government the csider. lori: just begs the obvious
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follow-up, once you paid the price, admitted culpability, paid staggering fines, at what point, how long do you have to be punhed for? this is a company and lot of people out there whore invested in bp a certainly have a right to investment choice and make money >> absolutely. >> under the tms of the guilty pleas, bp agreed to go on criminal probation for a period five years where bp agreed that their internalompliance programs were suspect and they need to have an independent monitor. we ad public citizen believe that it is prudent for bp not to be eligible for n contracts while it is under a five-year criminal probation. lori: why did the interior department, chris, praising bp, improved safety procedures and awarding bpozens of new drilling leases in the gulf? >> that is the thing, since the spill in 2010, they have had 50 new leases awarded to them. theye the biggest producer of oil production out in the gulf.
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they employ 20,000 american people. reality it is not about bp. this is about oil and gas. this is another pledge from the obama administration to try to stymie the oil and gas industry and public citizen is about at that. >> that is ridiculous. >> they're all about getting rid of o and gas. ifhey wanted to sanction, it should have been part of, when they pled guilty should have been part of that plea deal and it was not. it is about $17.5 billion more in fines the government wants. this is anti-oil and g. >> this isbout crime. this is about a corporate entity that pled guilty to felony violations. >> ty closed the case. cases over. >> they did not close the case because the probation -- >> there are no ongoing investigations. >> excuse me a second. the company is under criminal probation for five years. an individual that is on criminal probation has all sorts of rights that are reduced. [both talking at once] >> that's ridiculous.
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ri: we'll going to revisit this issue that's for sure.e. there are some remaining questions. why is bp doing this in the forefront instead of doing negotiations behind clod doors. >> whyid they get new drilling licenses? makes no sense. lori: well-have you back, hot debate. >> thank you,oori. lori: talk more about energy. here is your fuel gauge rort. north dakota's bakken field scoring its biggest oil production increase ern may. that is according to a new report by energy firmemscape. 54,000-barrrls, striking 64,000-barrels today. they say bakken production will hit 1.1 million-barrel as day by end of next year. at the same time libya's oil production and exports hitting the lowest level since muammar qaddafi was ousted from power. labor strikes are paralyzing libya's oil fields and seaports. it can not make promises on september oil delivery for clients. libia' woes and unexpected
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rise in crude inventories sent crude rallying today. crude was up 72 cents. now too the boomingusiness of e-cigarettes and a big potential problem for the producers. is all about whether or not e-cigs should be regulated, similar to normal cigarettes and if they are, what's next? new york city's myor bloomberg seems to be leading the charge according to leaked documents, three tobacco-related bills are making their way to the new york city council that could effectively ban e-cigarettes. is could have huge ramifications for industry as well as for public health. joining me to break it all down, michael siegel, public health professor. and we have a tobacco industry analyst from jeffries. welcome to the show, both of you. dr. siegel, you say a ban on e cigarettes would be a public health disaster, a ban on cigarettes, explain. >> electronic cigarettes are helping literally thousands of people to get off regular
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tobacco cigarettes an for many people, this is a lifesaver. many people found it is very difficult to quit smoking using traditional available therapies but they are successful with electronic cigarettes. banning these products makes no sense from a public health perspective. you're telling people who have quit smoking using these products we want you to go back to the regular toxic tobacco cigarettes. that would be, public health disaster. lori: from what i understand, though, there is no firm, and correct me if i'm wrong, please, scientific evidenc doctor, about the safety of e-cigarettes. so what evidence do you see that you can inform us with that e-cigarettes would reduce the public health risk? >> well there's, there is a lost evidence that electronic cigarettes are much safer than tobacco cigarettes. we know regular cigarettes deliver 10 of thousands of chemicals with more than 60 known human carcinogens. the electronic cigarettes have three or four chemicals in them
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and that's about it. whe there may be true there is small risk associated with them there is no question that these products are much safer than tobacco cigarettes. lori: okay. >> so i think we can do more research to find out exactly what the magnitude of the risk is but there's no question people switching from tobacco cigarettes t electroc cigarettes are greatly improving their health. lori: let's talk about the business side. e-cigarette sales expected to reach one billion dollars this year. what kind ofusiness economic, economic impact would the ban bring. >> e-cigarette industry is a booming industry. it is exed to double every six months approximate. for me as a tobacco analyst, obviously much more interesting than regular cigarettes. regular cigarettes are declining. the business impact of a ban obviously could be disasterous for these companies. you have an industry with 2 or 300 small players. the big tobacco companies have not entered the space other than lorillard. if these products get banned
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obviously very negative. lori: do you agree with the doctor these e-cigarettes are used by smokers of traditional tobacco products trying to quit? >> that is the data the industry shows, predominantly smokers try the products whether assessization device, meaning to quit smoking or alternative when they want to smoke indoors. that i'm not the et on but data to show it is mostly smokers so far. lori: do you have any data how many people are choosing e-cigs over traditional cigarees if demand is falling from the major cigaretteanufacturers? >> at retail, cigarettes are a 730 billion-dollar industry compared to the number you mentioned for one billion dollars for e-cigarettes. it i much smaller percentage but growing rapidly. lori: 15 buck as pack for regular cigarettes? >> e-cigarettes in nework are priced 10 to $12. there is an advantage. e-cigarette is more th one or two cigarettes. there is a pack to 2 1/2 packs
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vapor in there. lori: interesting. dr. siegel, if they b, sigs will other cities follow? what is the precedent here? >> that is the danger. a lot of people are looking to new york city for leadership and what new york cyoes may tell us what other cities are going to do ad they may follow that. i think that would be a real tragedy. these products are helping so mann people to keep off the most toxic consumer product out there and why would you want to take that off the market. lori rht. >> and essentially give cirettes free rein on the market? what we want to do is the opposite. we want to encourage people to use a much less toxic alternative than regular cigarettes. i don't think this is an example of a prosal that tries to treat tobacco cigarettes and electronicigarettes on the same playing field. in fact this is the opposite. @his is making, giving cigarettes free rein over the market, without any competition from the electronic cigarettes.
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that to me is what is so disturbing about it. lori: this is from the mayor who wanted to ban large sugary sodas to protect our health. if this is nice health alternative to regular tobacco it doesn't make any sense of the great discussion, gentlemen. thank you. next on "money," when you are worth $40 billion apparently you can afford to trash apple and google. oracle ceo lry ellon calls apple doomed and google evil. already sparking a storm of controversy but is ellison right? "who made money today?" men's wearhouse is getting plenty o attention lately but one ofts top competitors is grabbing the limelight and riches today. stay where you are. "piles of money" coming right up. ♪ this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone ahead of him
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and win fiy thousand dollars. congratulations you are our one millionth customer. nobody likes to ss out. that's why ally treats all their customers the same. whether you're the first or the milonth. if your bank doesn't think you're special anymore, you need an ally. ally bank. your money ndsn ally. help the gulf when we made recover and learn the gulf, bp from what happened so we could bear energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like aew deepwater well cap and a state-of-the-artmonitorins watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has ner been stronger.
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lori: no matter what time it is money is always on the move. shar of seaworld getting soaked after-hours. reporting a weak stirring on top and bottom line. seaworld primarily blaming costs to its initial public offering and debt related charges. it also lowered the revenue outlook for the year. shares of apple are popping on the other hand after billionaire investor carl icahn revealed a stake in the company. this comes just hours after oracle ceo larry ellison soured over apple's prospects for success. another tech titan battle. who will come out on top? joining me to answer the questionn rob enderle, and tiernen ray. to you first. what did you make of larry ellison? he was quite specific of the current leadership at apple? >> he saidhat he likes ceo tim cook but they will not be nearly as successful. he wasaying similar stuff last fall but was more negative today.
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last fall he said i think the company ill thrive. now he says think they won't be nearly as suck es sesful. the implication they won't throw at all. lori: do you agree, rob? good to sigh at you will. shares of apple have falle 25%. is ellison correct? >> he is. appleas designed around steve jobs unique skillset. each person was selected to do things, including tim ck that steve jobs didn't want to do. steve jobs is ge. they didn't backfill him. they put the guy in to do stuff steve jobs didn't want to do as head of the company. it isn't working well. you like having the mechanic drive the car and you won'tin races. >> he sees shares valued $625, apple shares, calling for initial share buy back from carl icahn. is this interesting about the timing of carl icahn coming in today afterllison made the disparaging remarks?
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>> stock has been on the march for weeks now. lori: good point. >> probably people knew he was in the market amassing this stake which may be over a billion dollars. he is looking, kind of can't lose. it is season of the year when new iphones will come out and new ipads, supposed to happen next month of the he is leaning into strength saying now is my time to buy into this rally and then also get a platform to make some suggestions. lori: rob, what is your take on why carl icahn revealehis stake and his advice for what to do with shareholder value today? >> well, remember he is a corporate raider. so we saw just a hint of, a hint, a hint of him joining hp caused that stock to go up. even though he didn't have a position. he can drive the stock up by participating. it is not good pour apple.. you don't want a corporate raider looking at company. rporate raiders come in. pretty much swipe the assets and leave what results is a shell. just destroyed twa which is what
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he is famous for. while it is nice to speculate on how high the stock will go, with him involved i'm really worried what will happen to apple. he really leaves no good news. lori: do you think of this expected announcement after cheaper iphone five i believe we'll hear? that is what he is was referring to here in couple weeks? >> for me? lori: sorry, rob. >> so, yeah it's always a problem when a company sells premium products comes out with a low-cost offering. steve jobs designed apple around the porsche model of we certainly saw porsche explore lower cost offerings of 914 and 924 and those were not good years for porsche. when you have a premium brand you need to focus on keeping the premium brand premium. remember, tim cook is a guy that sells on price an volume. he doesn't know how to manage a company like that. that is why he is chasing t lower cost market because that is the way he will get more
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cuomers. that is thinner marginsnd samsung owns that market. lori: saturated smartphone market. do you think tim cook, mbe you address it earlier, do you think he has creativity to come out with the next biggest thing for apple? >> he is delegating to people like john any ive and engineers and software team. as long as he follows past history that may not be a bad thing. when they came out ipod. they had one model. then the mini and nano and shuffl in interview at the time steve jobs when these products came out we want these to be affordable to be in everyone's hand. there is history tim cook lived through where the company said we want to bring the pri down topread volume and get it available to everyone. lori: circle back to ellison's comments t wn't just apple, right, rob. he was having harsh words for larry page, evil. oracle losing in courto
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google, right? what did you make of that? >> larry, as did steve, believe google is a thief. ethe stealing intellectual property or books or whatever. steve felt very strongly google used position on apple's boa to steel the ide for the iphone and create a clone which basically they did. larry stepped in because i think he felt a little bit guilty given programing component of android largely comes from java which is the platform he owns. he bought when he bght sun. he came to steve jobs's defense but wasn't really able tokes cute. to him apple, excuse me, google's a thief, a thief that stole from his oldest, closest, now dead friend. lori: interesting perspective. gentlemen, tha you. >> thank you. >> pleasure. lori: well, next money men's wearhouse debuts the first had since pushing out pitchman and founder george zimmer. can it convince you will still like the way you look? a t expert said it is a
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marketing disaster and guaranties it. he is here to explain why. at the end of the day it is all about money. ♪
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lori: no guaranty this time around. men's wearhouse unveils the first ad following oster of founder and spokesman george zimmer. will it be a hit with customers? you be the judge. ♪
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>> for 40 years we've been helping men dress like gentlemen. men's wearhouse. lori: hmmm, what do you think? let's ask marketing guru bruce terkel who says the new campaign is terrible. ally? great to have you on. why do you think it is terrible? >> first of all the key to market something to talk directly to your customer. the men's wearhouse customer and reason the old campaign was so brilliant the customer was not a clothes guy, the guy who knows he needs to look sharp for work or a wedding and george zimmer comes on, says i don't worry about it i wl make you look good, i guaranty it. that makes sense of the they're showing none clothes guys, weird, funky, cepy, history of clothing and telling me i'm going to be a gentleman but the guy who is the gentleman, every time the girl walks by and does a per owe wet and looks at her butt. lori: would you go as far to
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call it sleazy as some other itics. >> i've se a lot of sleazy online. i think it i creepy. roller girl and girl in the catholic school skirt. i don't get it. lori: a little disretechful. -- disrespectful. >> that is the issue. lori: men's warehouse risking $250,000 penalty not using founder and ousted george zimmer. put that in perspective. is that a significant factor. >> the amount oo money they pay to produce the ad and amount of money to pay to run the ad and more importantly opportunity costs whether or not it works or not, quarter of a million dollars is irrelevant. the ad will run its course. ey will try somhing else and someone will have the brit idea bringing zimmer back. lori: wave seen that happen so many times. companies blow it. try something new and right, and theyeer back to what did work.
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if it ain't broke, don't fix it in the fist place. remind us of some of tho mpanies. >> absolut, did this, absolute that. put them on the map. ran a lot of years. they got tired and ran a new campaign, got no traction. ran a second campaign, got no traction, got it back. careeruilder, used monkeys. got a huge response. ran for a while. haven't by fired the agency, got a new agency and tried new things and brought the monkeys back. that i what people new and that is what people responded to. lori: i wonder since we're talking about this, offensive ad men's wearhouse we're giving it sort of the free advertising. >> right lori: it ishe watercooler topic of the day. if in a way the backlash will end up being beneficial to it? >> sure. the backlash is absolutely beneficial, but it is rather
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short-lived. i think part of the other problem is that, by talking about the fact that they have been around for 40 years, they're suggesting that they have 40-year-old suits. if i'm not a clothes guy and i want a 40-year-old suit i want to go to brooks brothers. they have a whole new line. when you start talking about it around the watercooler. what is in it for me? that is what we talk about in marketing and branding. what is in it for the consumer. what does the consumer benefit. we'll get a short tick off all the free publicity. ultimately i think you ee them going backwards. lori: men's wearhouse clothes, ke away the ad, its product, are you satisfied or not s much? is the ad a true reflection what they're offering these days, stodgy old men's suits. >> i'm not a men's wearhouse customer. i'm not a personhey need themselves concerned with. what their customer is not that confident or concerned or ability to look good, either shops with his girlfriend or wife or zimmer said i will make you look good.
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that guy i don't think will feel real comfortable saying to them now. lori: you're clearly no men's warehous customer. too dapper. >> thank you very much. lori: bruce turkel. unpaid internships are a right of passage, right? one enterprising capitol hill intern thinks she came up with a perfect plan to cover her costs. is it clever or craze any we've got it all in "spare change." you can never have too much money. ♪
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melissa::it is time for some fun with "spare change." today we're joined by david asman. all afternoon. well, our "money" talker today, the fund-raising efforts by an ambitious nt to ben turn for senate majority leader harry reid. test get a drone is set to start in the next few weeks, but needs a way to cover costs, like anyone who does the unpaid. so she turned to a crowd funding. hoping to raise money to cover expenses like transportation, housing. now she says even if she can only base for grand she will just take a loan for the rest. so far her efforts abrd and 30400. lovet or hate it? >> when i was tha age and doing internships i had to take unpaid
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internships, but i also was able to have a second job, so i think this is a little on to the menorah for, a great idea. but i don't understand issues working for senator harry reid. i'm concerned. you get something for giving the person morning. get the stock to five or will you be able to take abamacare. teeseven or someone has to get through the senate. >> i think it does make him look bad. melissa: and one to bury my point. as lawyers is going through the private sector. him -- i'm all for it. plus, something similar some time. in my 20's. theponsorship of an that i did to some good couple o
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companies. so go for it. >> you mentioned you did an. and thayou did as well. but the fact is, in not supposed to be paid for them. it's about the experience. >> but she may do that as well. >> to even make the attempt to do the crowd funding and then realize that perhaps she will get the full amount she needs to cover overhead. >> he is the problem, is -- if she does te of alo it wod cost more. put in something like that what is the difference between as david onc did, have a source that may be funded. it. >> not much difference. once again. as long as the taxpayer is not paying, i love it. melissa: up next, who may "money" today. probably fishing and sells for custom suit. we have the answer right after this. you can never have too much "money." ♪
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♪ melissa: whether it is on wall street or main street, here is to make a five today. one of the major shareholders demanding changes to the executive ranks saying that corporate policies are damaging the company's value. experts agree. shares soared more than 12%. meanwhile, losing money, anyone who owns orbitz. second-largest shareholder is selling off one-third of his stake in the comny. it wants to better diversifyts portfolio. the sale of hammer him of his inntion%, not good day. money is practical growing on trees and up. three multimillion-dollar che back to it sold in two weeks. the third when i came forward. we all fought flora was the best
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place. that's all we have for you. i shore up you me "money" today. it has been a pleasure pavilion for melissa. >> the following is paid advertisement from star via entertainment and time life. ♪ you're the meaning in my life ♪ ♪ you're e inspiration >> ♪ that's how much i feel >>♪ feel for you, baby >> ♪ how much i feel >> ♪ well, i need your touch >> intite moments, erished memories, unforgettable romances the language of love can be spoken in many ways. and nothing ignites your emotions like the power of love. >> ♪ i'll alwa love you ♪ for the rest of my days >> ♪ a one in a million

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