you can make money, you can save money, you can protect your money. that's what it's all >> "money" with melissa francis is next. have a good evening, everyone. melissa: i am melissa francis, there is what is "money" tonight. you are new bill. trying to win over new customers. sounds like somebody is doing 10 loads of laundry this saturday. plus, vultures flying in to pick over the carcass ac as the clients flee for the exit. but it could be an investing opportunity of a lifetime. what of the las, commack 1 of the last investors holding on. and the praise hanging on. even when i say this not, it is always about money. ♪

melissa: so money is one of the thing on everybody's mind as a terrible violence in egypt continues and the deadfall rises. lawmakers and experts believe now is the time to cut off all aid to the country. the congressman peter king does not agree. i spoke to him why he says we should send billions of dollars despite what some are calling a massacre. why do you believe that, why do you think we should continue to send aid? >> there are no easy decisions. i want to make that clear up front. as far as the national interest is concerned, we have a better opportunity to deal with the military then we would the muslim brotherhood going forward. it is important for us the suez canal be kept open.

that islamist jihad is a not be allowed to take root in egypt and we have the best chance of achieving that through the military. we saw what happened under the muslim brotherhood, so by keeping the aide, enables us to get intelligence from the military and long-term more chance of making progress with the military. melissa: a lot of people don't realize what a central thoroughfare that is. $1.6 trillion in goods passes through there. withhat much going through there, why have we not heard more from the u.n. or european allies about what should happen in the middle east and in this particular conflict and why they haven't been more involved. >> i think it shows like it or not, we are the world's superpower. basically when there are tough decisions, unless the country

has a self-interest, they basically stay out of it. we are expected to come forward and bring about a resolution. the fact is to be really wants to step in. thwestern allies should be much more assertive in playing a role, but they have done virtually nothing. because we have more influence than any other wester western c, we should assert it. the only way is for the militaries. the military can be difficult but better than dealing with the muslim brotherhood. melissa: we talked about the numbers, 3 million tons of serial travels through there, 15 million tons of fertilizer, 14 million tons of vegetable oil around the world. people talk about the oil and

natural gas that goes through there. from a military standpoint we have the ability to jump the line and get through the suez canal when we have to. how important is it tus and the global economy? >> i can understand americans say why spend a billion dollars to egypt? if the u.s. were not given priority, we are talking about billions and billions of dollars, tens of billions to the world economy and american economy with oil and military. we have to have that leeway and leverage otherwise lose a lot of the military influence in the middle east and countries like russia and iran. the average american says the economy is not doing well, we see people dying in the streets, why we wasting all this money in egypt? every taxpayer dollar is important but with how much we would lose, that is why i am

supporting the continuation of the aide. with strict negotiations trying to get everything we can out of the egyptian military. melissa: thank you for coming on. >> thank you. melissa: as egypt is exploding, a brand-new network is launching tomorrow. it is already making cable news history but not in the way you would think. advertisers are staying so far away from the controversial channel is only going to have six minutes of commercials per hour, less than half the average amount of ad dollars of the competitors including us and the fox news channel. we had a marketing expert and fox news middle east analyst. thanks to both of you for joining us. people are assuming this channel

is going to be anti-american. based on what the middle east has done, airing messages from bin laden after 9/11. some have quit saying it is anti-american. is it fair to say it is anti-american? >> what we know is english has been very professional, certainly very critical of american foreign policy. it is very critical of u.s. natural security strategies. many other channels would do the sa. it is a choice of the editorial board. if they are going to, for example, reflect some of the shows in arabic, yes, that would be a problem. another quick problem, melissa, is inside the middle east today. thiss a channel that will be funded, but the egyptians are at war with al jazeera.

so that is something we have to wait and see. melissa: is this a mess advertisers want to get anywhere near or are they serving up an audience you would only get there, that is an opportunity to sell them dishwashing detergent. >> it is all about the advertisers. probably very good cost. the question is when will the viewers start to tune in. when there is enough of, he advertisers will be interested in buyg a signal. until then, does not matter what the news is, it is irrelevant if people aren't watching, nobody will buy it. lissa: the backers of a channel care if anybody, how many people show up and watch. billions of dollars behind the network. funded, they don't have to turn a profit, or do they? >> the experience we had over the past decade and a half is it

funds self, all the companies, the oil company, gas company, the water companies that give them those advertisement. i am not sure what their strategy will be for american marketing. melissa: is sort of raises the question if they aren't after profit, what are they after? >> it is about of it is promoting that ideology or this is some part of a longer-term process. a bit ironic to talk abouthis on fox when you think about it. fox did not have very many advertisers either and was not even in new york until 1958. now you are the number one news channel on the network. if this is a long-term strategy and they have plenty of money behind them, you may be looking at something that will happen over a longer window then when they open the doors and start broadcasting.

melissa: news corporation is always in the business of making money. very clear why they would open another channel and branch into a new market or by a business because in the long term they want to make money. television is probably not their most promising revenue stream by a lot. bringing into question why are they doing this. is that fair? >> it is an ideological project, it can be compared on a medium level with probably russia tv, but there is something more to it. most likely they will try to project into domestic issues with natural security, if they're going to be popular with those communities but very limited talking about marketing. melissa: they were saying they wanted to focus on america.

they had a ton of journalists we all kw. it's sort of begs the question also why are they doing this? pitching to muslim audience in america or are they just trying to be another news channel like the other ones that are out there? >> you can look at it a lot of different ways. they could be looking at building a message that begins to mainstream the muslim experience in the united states. no different than shows have been doing with other audiences where you begin to mainstream and minority audience and people get more and more used to hearing their side of the story. they could also looking to build an ideological platform or looking to build a long term business platform. you mentioned the american newscasters are going there. they are paid to go there.

however, the ad sales guys, the commission-based people will not move unless they know they can make money there. if you don't have people on the streets with the ability to sell the ads, you will not have advertisers bundle. it is a bottom-line issue. melissa: gentleman, very much thanks for your insight. coming up, a bold plan the power companies to the customers smiling brightly. you are in for a jolt of reality on what you could be missing out on. and a battle in seattle over the $15 per hour. will it make or break the city's workers and businesses i. i'm back. ♪

♪ melissa: so there is a surprising new way to pay your electric bills.

several countries are lighting up and take page from a cell phone companies and offering surprising deals like free nights and weekends. needless to say the response has been electrifying. more than 100,000 customers have switched onto the new plan. michael, thanks for coming on. we thought this was very creative and interesting. you are obviously trying to encourage people to use electricity at different times. how did you come up with this idea? >> it was something we were able to take out of the marketing playbook from the wireless companies who had a fantastic opportunity in the early 90s to promote time of use pricing. it fitted with what our customers are interested in and something we could bring to them with the technology we have in the marketplace. melissa: our twitter followers and facebook followers immediately said are they jacking the rate the rest of the time, trying to figure out how you are making money off of this.

are you making more or less money with this program in place? >> what we are focused is letting customers have the tools they need to control their bill. when you think about a free nights customer, with tens of thousands who can go home tonight and get their energy for free, we teach our customers how to use less energy during the day to get the energy free at night. so we work with our customers. melissa: i know you want your customers to be happy and we are a business channel's whistle but companies going out and making a profit, that is how you stay in business and employee the workers, that doesn't fault you for that, but you have to making more money on this or you would not be continuing to do this. if you are losing money, it is irresponsible for you to do this. you're still a for-profit company. are you making more or less money do you think at the end of the day as a basis for this? >> we're getting more customers to switch.

texas is a highly competitive market. hundreds of different plan choices in the marketplace and for us we want to build relationships with customers that last decades. it is about getting a customer to switch. a slightly higher price he paid during the day but all the electricity is free at night so training customers to use less during the day and take advantage of the free offer at night builds the opportunity to lower the total bill. melissa: we have the problem in new york city when it is very hot, everybody piles on with the air-conditioning and the whole thing shuts down any cost everyone. are you trying to clear the load during the day to take more businesses on and encourage people to give them an incentive to do their laundry at night or on the weekend and clear the way for business users? turn your air-conditioning down? speaker that is what you have to love about texas, it is hot in texas. two-thirds of the energy is on air-conditioning. it is about bringing the load

down during the day, couple degrees difference can save you a lot of money and you can use the energy at night, sleep cool and comfortably do your laundry and run your pool pump and really saved. shift the demand out of the late afternoon. melissa: encouraging more customers to steal the market share. you're able to pick your energy provider, you can do that in tes? wwe're kind of stuck with the gy who sells energy on our block. >> we would love to have you, but you are right. you get to pick the provider. that is what is so important about consumers choosing, we want to have a brand and a product that is all about value added for our customers. we're building product free nights and free weekends backing it up with great tools on your desktop, you can track how much energy you use, it is really

about helping the consumer lower the bill size. melissa: a lot of copycats are doing a similar thing. from 10:00 p.m. until 6:00 a.m. every night.stay home and do laundry. or make your house freezing and let it heat up the rt of the week. we appreciate the time. >> thank you. melissa: how could this not be our "money" question. we got some responses like easy, tap off of your neighbor service. follow me on twitter. i read them, it is really me. oil futures not a succession winning streak, tropical storm activity around the gulf of mexico has weekend according to the national hurricane center. traders keep a close eye on the storm activity fearing it could

be oil and gas. it is the second fire in a week for the refinery. knocking out power for two weeks you can refine 600,000 barrels of crude per day. a promising development in libya's oil crisis, one of the largest oil ports have resumed full operation. worker strikes have crippled production exports from libya for weeks but negotiations are finally bringing protesting employees back to work. coming up it is the latest battle, he hires were courageo . could they be push even higher? are the numbers being crunched correctly? maybe not. plus scandals accusations, not enough news breaking on probe.

all the word on wall street, all the insights details. can you ever have too much money?

♪ melissa: now to the battle in seattle, washington state has a highest minimum wage in the country at $9 per hour. some say it is still not good enough. the new proposed looking the right to increase more than 60% to $15 per hour. hereith the realities of what that would do to businesses, gentlemen, thank you so much for coming on.

i said i want somebody from a coffee shop in seattle, that is one of the things seattle has known about. you are the owner of a coffee shop, have to pay $15 per hour, how does that change your business and the number of employees who work for you? >> it would change the number of employees slightly. it will be wonderful to have each employee make at least $15 per hour because it provides a basic living wage. right now we don't have that, but i would like to make a law for that force and a lot of other employers to do so w. melissa: okay. my does not grow on trees, has to come fr somewhere. so if you pay is to present more than what you are paying them before, where does that money come from? are you able to raise prices enough to make that? our owners taking home enough money they can take it out of

their own pocket? where is that coming from? >> no one solution is going to be a quick fix. the reality is you have to figure out if it is raising prices or service chars or changing employee structure or however you do it but will not come from one spot. i don't think the businesses can bear the weight of this. melissa: if you think this is a good idea to pay $15 per hour you are free to do that right now. are you doing that right now? >> we're doing what we can based on the business structure and our location, location, location. if we have the financial means to do so, we would come absolutely, without a doubt. we pay as much as our continued market allows us to. melissa: how much is that? >> between $12-$16 per hour. melissa: if you want to, why don't you just pay everybody

$15, nobody is stopping you. >> it has to make fiscal sense for s to be fiscally responsible. if we paid everybody $15 per hour, it would affect our business. adversely. it would have an adverse affect on the business. melissa: what would you do if you had to do that tomorrow? we lay people off tomorrow? >> we would have to. melissa: you don't think it can come from just one place? >> is just can't. in addition to creating a fiscal disconnect, that does not even mention the point it creates kind of an uneven balance between cities near seattle in terms of not very competitive.

who wants to open a business in the seattle ea anymo? melissa: i always y the owners of the businesses are taking home so much money. that they can afford to pay this increase. you can make your employees more comfortable by a few dollars per hour, it is not that big of a deal. could you cut the number of workers orhe hours they work? >> we try to provide the best product and the best services,

the mac. melissa: how can you do that? >> and make sure my staff are taken care of before my own needs because that is much more important. unhappy but being to their place of employment. melissa: pupate and $15 out of your own pocket? >> we would have to restructure the way we do our business. melissa: could you pay it out of your own pocket? >> i am the president of the seattle restaurant alliance we represent a wide variety including businesses like brian's. as far as kind of what the structure is, what the margins and the profit margins are. from mcdonald's of two single owner operator. our margins are already so thin, there is no way we can bear this. it has to be a combination. they have to bear some of it but not all of it.

how can we bear 60%, we look at a 40% increase in labor. you talk about the minimum wage folks, this is not deal with those making $15 per hour. melissa: that is a good point. >> paying somebody minimum wage, that is saying i would pay you less if i could. melissa: or it is saying you are a new worker learning in this field, i am giving you an opportunity even though you have nohad a job before and don't have a lot of experience, i'm giving you a foot up. i have worked for minimum wage. i was terrib, they gave me a chance, i made minimum wage. you make more from there. great discussion, thank you both for coming on. next on "money," jpmorgan accused of bribing chinese executives by hiring their kids. doesn't this happen in the u.s. every day?

and news of another probe into jpmorgan breaking this hour. all the word on wall street. we have the inside scoop. plus, who made money today? we will ve the answer coming up. "piles of money" straight ahead. ♪

♪ melissa: no matter what time it is, "money" is always on the move. shares of urban outfitters surging after hours, reporting strong second quarter earnings a short time ago. net profit of 25% with improving margins. in contrast to a lot of other retailers struggling to lure in customers. investors are like what they see the buzz, the whispers, behind-the-scenes stories. we have the mall. today under fire for two new

scandals. knew this very hour, this happening. a new investigation into the vacation energy markets. separately scandalous allegations of bribery. the investment banking accused of hiring the children a powerful chinese officials to win lucrative business deals. it is all the word on wall street. here with all the details, "wall street journal" columnist encer jacob. it is stirring up j.p. morgan base. these skies, there is a witch hunt. it seems like on for them. a star with the first one. this idea that they hired kids of the influential chinese politicians. at face value everybody who sits where i do out in the news reacted the same way. this seems fairly standard. you see it in the u.s. all the time. it's a powerful people being red and various bank. why is there necessarily something wrong with this? >> what was most shocking to me

was that anyone was shocked because china is a culture where you continually hear what the children of high officials, high communist party officials crash in a ferrari since the fight that. the dow makes $40,000 a year in u.s. equivalent. the country is rife with this corruption. so -- melissa: is this really the same thing? did not deserve to work? >> this is a sort of bribery that we have here in the united states were you hired chelsea clinton, someone who just cannot of congress, the person who was just with the sec enforcement division. now you bring them to work at a place like jpmorgan or whenever. the sort of bribery we're familiar with in this country. melissa: how do we even -- a

very smart individual. two brilliant parents. you have to think in her own right if she changed her ne should probably also get a great job. how do we know that these kids don't deserve a job. is there any allegation of anything illegal happening? to we know, does anyone know that this is a bribe? >> it's a probe. it's called a bribery investigation. it just a pro, not a criminal investigation. and it looked suspiit's hypocriy because that's the kind of -- it's not a bag of cash like the pharmaceutical companies, for example, were accused of handing over. these high officials. this just a very soft form of influence-peddling. i doubt those specific children in the country and many bright english-speaking youth would necessarily have been hired for sure. the have some back scratching

going on. melissa: coincidently not the deals that were done on the back of this. a railroad commissioner. it's suspicious. >> a very indirect and soft form that is -- the appearance is it is something that goes on in this country. i'm not condoning it, but it's something we're very familiar. melissa: at the same time we're hearing about another probe of the jpmorgan energy business. they just settled a similar situation. this is one of at least six probes like this. are we talking about this because it's jpmorgan in marin topic of conversation? does this seem like they are being targeted? >> they have very, very bad month. melissa: they have done a lot

wrong? >> and all these businesses. jpmorgan made a big push into commodities. it's a busess where you can't really insider trade on the commodities business, but as possible. that washe accusation for which they paid a very large multi hundred million dollar fine for manipulating energy markets out west. unclear if this relates to that same alleged manipulation of something else. they paid a fine without admitting wrongdoing. maybe th is something entirely different. following upon a different lead. where there's smoke there's fire. but jpmorgan does not appear to be a corrupt institution. th business is open to manipulation. melissa: thank you so much. always great. up next to my clients of sac capital run for the hills. the vultures are circling to pick apart the carcass. it is after all all about

"money." ♪

♪ melissa: we've been following the sac site for years. latest installment is whether they have lost virtually all of its outside capital. one investor is sticking with colin. he joins me now along with our very own charlie gasparino. thank you for being here. you're a brave man. >> why? melissa: you have about a billion dollars under management , assets. don't want to tell us exactly how much you have. have you left it all there? are you getting concerned as the

deadline passes on friday that he should get out? >> i'm not sure what the concern would be because i don't know why, then someone selling and and a half to get out. starting to happen n. there's a firm under indictment, you don't have much of a choice. i think that that day is coming very soon. in terms of me being concerned about the assets being managed to my have no concerns of. >> reporter: we just broke the news on this show. melissa: he said that the day is coming when you might need to. would that signal believe? >> what's happening, this is not the biggest news of all time. the rponsibility that it -- if it put the money with the firm and it comes under indictment deal of pressure digging your money out.

>> my clients are not nervous about how the money is being managed. they want to know if they can stay and are not. looks like the government will shut that down. >> reporter: what he's saying, his lawyers are essentially telling in the gst. he faces an incredible legal liability if he keeps it in there. this is the bottom line. if this lose more money, if there's issue with people in any sort of issue of people getting their money out because of an indictment, close it down, he is held responsible. what he's saying is that his lawyer are telling him he has to get his money out. melissa: you want to respond? >> i feel like this is what my wife does. she talks behind my back. melissa: no. i'm going to -- tommy your side of the story. go ahead. >> i have my money invested there. i have clients that want to be invested.

letters better sign saying they want to be in their kind of have money in on where the other. i love that firm. melissa: let me ask you about this. we are talking about picking over the carcass of what is left a lot of that is employees. these are ladies and gentlemen who were very valued traders. now, you read about them in the post and those were the they're going to headhunters and sank money another job. how are those people being received? tainted are talented. >> mostly talented. the third -- it's a sinkers room environment. that causes people to step over the line unfortunately. many more cases of people stepping of the line then there even were at the galion group. in jail for ten years. i count three or four people associated that have been indicted or cooperating. baron least ten people over sac capital. we will tell you this, that

environment created a lot of great traders. melissa: one of the things they said was he hired people, part of the case about him looking the other way and not being a good manager. hire people who had questions about them at their previous job. melissa: if they hire someone from that firm, are you then opening yourself up later? >> there was one guy that was involved. he was recently indicted, cooperating with the govnment. you know, i don't think that the street, they're looking at some of the fund managers. and they're basically 55 there being receptive. the interesting thing is to would be crazy enough to keep the money in there now? melissa: the last word in before we go. >> i have a lot of words of one to say. and now we're short on time. the greatest traders, best money

managers in the world look at the mont -- look at the numbers. look at the returns. melissa: how do you justify? >> that's a 3% manager feet. 50 percent of the profit. how do you justify that? >> it's simple. after all of that. melissa: go ahead. >> you have to let me talk. the rate of return, standd deviation. you have your money air. perry can i finish? melissa: barre last word. >> these are all returns. they do a great job. melissa: guys, thank you for coming on. i appreciated. next, all the land up.

and the whole business worlis buzzing. why? just because they combine beauty and power. stick around for "spare change." you can never have too much "money" for too much arguing. ♪

♪ melissa: is time for our daily fun with "spare change". thank you for joining is. here is what everyone is talking about around the water cooler.

bristol-myers striking a pose in vogue. all anyone cares about is that she is planned up and fashion forward. my blackberry below. this is all anyone is talking about. why is this such a big deal? >> first of all, is most women streamed to be photographed in his glamorous wife. debt down. she has unbelievable shoes on. it's sort of a fantasy. i have no problem with her posing. i think there's a little bit of an issue here. she's a ceo turning around young who. she wants to be taken seriously on her merits and accomplishments, to be posed like that. >> there's no skin. melissa: is turning our idea of a ceo upside-down. >> literally. what is really interesting about this picture is that marissa meyer is interested. she's talking about --

melissa: she's a brainy and. >> yes. look at this picture. she models, doing this as curve. it's a little bit of in a mosh to the mathematical abilities. this was photographed by a very fashion for photographer. there is no sh position going on. melissa: she's lying upside-down on the shape lounge. there is centralization. one of the things that is very interesting about this, famous for propping up influential people who are also democrats. given $233,000 a democrat since 2008. a star maker for people that can then tn around and hold high-profile events and helped democrats. i'm just wondering if that's the case. >> very political. and she is very active in democratic circles and fund-raising and that sort of thing. i look at it more as ts is a

positive image. it shows young women that they can be -- melissa: she is an engineer. according to the block in website, saleswomen are making a dollar 42 more than men. she's very powerful. doing really well. she's being a great role model. melissa: more power to work. she's brilliant. one of the original and -- engineers. thank you. up next, who made "money" today. breaking even has never sounded so good. don't go awhere. we will have the answer right after this. you can never have too much you can never have too much "money."

at a dry cleaner, you can never have too much "money." we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. your money needs an ally.

♪ melissa: whether it's on wall street or main street, years to

make "money" today. everyone knew loans pandora. a big vote of confidence. the streaming business has lately crossed the break-even point. the significant potential from the push into automobiles. shares gained 4% on the news, closing just below the all-time high. meanwhile, losing money, anyone who owns u.s. treasury bonds. investors are eagerly awaiting that annual conference in jackson wyoming as well as the latest fed minutes. the fed could give new details on when it will roll back the stimulus measures. the yield hit 288%, the highest level since july of 2011. and winning as a master of free tuition. a freshman who drained a half-court shot on his first day of college to win the prize. the pressure. valued at $11,000. that had to avoid college debt.

that's all we have for you. be a teammate "money" today. you will see you back here tomorrow. "the willis report" is the follg is a paid advertisement for starvista entertainment and time life's music collection. >> ♪ wouldn't it be nice if we were older ♪ ♪ then we wouldn't have to wait so long ♪ >> ♪ pretty woman ♪ walkin' down the street ♪ pretty woman ♪ the kind i like to meet >> ♪ i've got sunshine ♪ on a cloudy day >> the '60s was a decade of change, of new hopes and dreams, of new attitudes, and a decade where love and romance was expressed in many new and different ways. >> ♪ cherish is the word i use to describe ♪