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tv   MONEY With Melissa Francis  FOX Business  October 29, 2013 12:00am-1:01am EDT

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happy dreams, to all of you, happy pro isdown. liz: money with melissa is next. melissa: people who work here at mcdonald's cost taxpayers $7 billion a year in food stamps and other programs. is that mcdonald's fault? what do you think? come on, let's follow the money. melissa: have you had your break today? mcdonald's under fire for its mac resources hotline directing an employee to the government dole in order to make end meet. it is another turn in the saga of fast-food giants feeling the heat as hourly workers continue to call for increase in pay. this as the golden arches reported its third quarter revenue rising to $7.3 billion, and just today, burger king's
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quarterly profits whopperred wall street expectations. should big profits equal bigger employee paychecks? here toeigh in, for mac loaded money talker if i ever seen one. jonathan hoenig, monica crowley and tony sayegh. they're all fox news contributors. what do you guys think? is it a disgrace? should they be embarrassed? that is implication by all the reporting if you you have more than half of employees whose families are government assistance you should be embarrassed, what do you think? >> half the country is on government assistance. half the country gets government assistance. mcdonald's is employee and not a parent. i don't know what the woman thinks that grimace will send her a check because she asks for it. 75% of their managers start out behind the counter. my question for her is, what is wrong with her that in all these years worked for mcdonald's hasn't improved her skills.
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melissa: those are fighting words. who wants to go after that? that is harsh. those are fighting words. who wants to go next? >> if you need help and work at mcdonald's and single source of income, you have a family to take care of of course there is safety net. i want you to participate into that. the question here these are two things media loves to do is attack corporate profits and mandate -- melissa: why mcdonald's? not burger king. not wendy's, not mcdonald's. >> billion served daily. huge fast-food corporation. when they make the argument for minimum wage, this is exactly what it is apart of, if you work at mcdonald's you should make more thandollars an hour. that is not really true. that is not what the market bears -- $8. melissa: this was a conversation recorded by a labor advocate group, low pay isn't okay. "l.a. times" heard recording. they said it was edited. couldn't verify it. mcdonald's say they have this hotline you can call thaw talk about, stresses depression, family problems, problems making
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ends meet. this woman called. she was told, here's what's there. my question is though, mcdonald's workers are on food stamps. if they didn't work at mcdonald's would they be 100% on government dole? >> look, it is good thing that this woman is working. i mean there are plenty of people who actually are able to work and are not for whatever reason. melissa: right. >> good for her. it is not mcdonald's responsibility, right? they're trying to run a business. they're trying to make money. trying to make profit as you pointed out. as you point out the left always goes after mcdonald's and also go after walmart. these are businesses trying to turn a profit. that are actually serving lower income folks. melissa: they pay a little bit more, should they is the question? >> so with what they're making billions. they give you a product the at a decent price. a lot of people buy it. they pay employees what the market will bear. tony said it is not the business's responsibility to care for, they're not a charity. you know. they're not running a charity
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here. they're trying, look, as jonathan points out if this woman went and got other skills or went and looked, mcdonald's is actually a business where there is upward mobility. >> correct. >> you start at counter, could end up being store manager or franchise own. >> or ceo. or ceo started behind the counter. melissa: would it kill them to pay a little more from the pr standpoint? think about it from perspective the mcdonald's. they're getting slaughtered. always one that gets dragged through the headlines. why wouldn't they just raise the wage and deflect many so of this and put it off some of someone else? from stock perspective would it be good for shareholders? >> no. first of all they pay more than the federally mandated minimum wage. you raise minimum wage, you essentially kill profitability. kill new stores, new jobs being offered f this woman or any person wants to make more money my hats off to them, but they can't reach their hand out or expect the world or government
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or mcdonald's will give it to them. improve their skills. >> absolutely right. if mcdonald's gives into public pressure coming from the left and raise their minimum wage, whatever it is -- melissa: starting sally. >> it would never be enough. david: >> it is intimidation. >> it would never be enough. raised it 50 cents an hour that is not enough. that is not living wage. you have to raise it $5 an hour, whatever the case may be. mcdonald's is in no-win situation. should stick to their guns. melissa: start an organization where you hire people to serve inexpensive food and do it not-for-profit and make it a charity? you could have your own mcdonald's didn't need a profit and gave people more food than they wanted and take the profits out and serve cheap food? would it work? >> at some point would get subsidies from the government. to jonathan's exact point, these people in mcdonald's have to make decisions based on shareholders, people who invest in them, to return a profit. they create jobs for millions of
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young, low-skilled working americans would be adversely affected groups like prolabor, raise the minimum wage organization have their way through as monica said, intimidation campaign in the media to guilt them. to raising minimum wage or low wage. that is fine from most of the work years argument from the other side you can't make a living, can't feed a family, can't live on these wages. it is not living wage. should be forced to pay a living wage. >> there is much bigger point. that is because we're living in obama's economy. if you actually had a growing economy with economic growth policies in place, this economy would be booming and you wouldn't have this kind of issue. so instead of going after mcdonald's as employer, go after the president and this government. melissa: sit tight, sit tight, hang on, up next, in case you didn't know the reason you're miserable at work isn't because you're overloaded. it is because your boss is a nightmare and we have stats to prove it. part two of our money talker.
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hear big questions coming out of the health care website horrors. why are ceos so clue le r countless about technology? we have harvard professor robert cap plan. cap plan. stick around, this is the quicksilver cash back card from capital one. it's not the "juggle a bunch of rotating categories" card. it's not the "sign up for rewards each quarter" card. it's the no-games, no-messing-'round, no-earning-limit-having, do-i-look-like-i'm-joking, turbo-boosting, heavyweight-champion- of-the-world cash back card. this is the quicksilver cash back card from capital one. unlimited 1.5% cash back on every purchase, everywhere, every damn day. now, tell me, what's in your wallet? help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology,
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like a new deepwater well cap and a state-of-the-art monitoring center, whe experts 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 never been stronger.
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>> hello, peter. >> what's happening? >> ah, we have sort of a problem here. >> yeah, you apparently didn't put one of the new cover sheets on your tps reports. >> oh, yeah. sorry about that. i forgot. >> hmmm, yeah. you see we're putting the cover sheets on all tps reports now before they go out. did you see the memo about this? melissa: yeah, about that memo, well turns out the boss is to blame for that case of the mondays you have. and most of your work place blues as well. forget overloaded. new study says it is not, not too much work but rather a bad boss and toxic work environment that are the main reasons for workplace depression. here for our fun part two of today's "money talker", fox news contributors, jonathan hoenig, monica crowley, tony sayegh.
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i really believe this is true. this study takes it all the way and says it has nothing to do with the workload but basically all about the tone from the top. monica, you're my happy warrior, you must agree with this? >> by the way i'm so happy here at fox news. >> i love my boss, yeah. >> they're amazing. we love them! melissa: we're obviously having fun so that does say something about the work environment. >> generally at fox news and fox business it is optimistic, positive environment. that generally does come from the top. i have worked though in environmts where you have a psychotic boss or boss that is very unfair that promotes people who don't deserve it and general sense of unfairness going on, injustice that makes for a terrible environment. also the psychotic coworkers. not that we have any here. >> no one applies. melissa: management style. i certainly worked at places where the dominant management style to pit people against each other. sort of that fear versus reward mechanism. different from parent or
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teacher. >> how successful were? melissa: terrible. really tough. >> anyone can be ceo. anyone can be a boss. that is really not the case. it is a very unique skill to create an environment which motivates people, where people want to work and want to be involved. so i agree with this study. i don't think necessarily too much work. work is positive. it adds to self-esteem. it is that bad boss that tears us down. melissa: they say when you're in a environment that is negative or your boss doesn't treat you well and look at the stack of paper and automatically seems overwhelming because you're so overwhelmed with the situation. >> what is worse with the inconsistency. if your boss treats coworker great and they're producing less and treats you like crap, sorry for the french, you feel there is injustice in that, but the truth is everyone alluded to it, it goes to the corporate culture. whether 2 people in the firm or 200 people firm it is the boss that set that is culture and you have to motivate and inspire your workers. you're absolutely right, melissa. i love being busy and deadlines. i love a lot on my plate.
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i love being productive. melissa: are you your own bows? >> no, i have several wises including -- bosses including my wife and they're all great. >> the fear mentality has to work. trading desks, aren't there any places where that sort of -- so many work places are driven that way, driven by fear and competition, no? never successful? trading? >> i worked on trading desks, monica, melissa -- melissa: confusing when you're surrounded by two beautiful blondes. >> and names. >> i think to tony's point, work is productive. we think of work hard bad thing. gives you self-esteem and confidence. lets you know that you can cope with things in the world, bad boss and makes them more difficult. not surprised -- melissa: speaking of which apparently when you gets older working gets better. another study published by the associated press. older workers are happier. nine out of 10 workers 50 or older say they're satisfied with their jobs. are they really desperate to be
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in their jobs. >> they're hired. that is why they're happy. melissa: nine out of 10? they love their jobs? >> i think in certain cases where you built a nice little nest egg, then at that point in your life you don't have to work, you want to work. melissa: but nobody's like that in this economy anymore. no one has any money. there hasn't been any kind of a job because they don't have any money saved. >> there may be something to this, where in your 20s, 30s, 40s, 50s, you're striving. you want to constantly achieve on corporate lader. >> by 50 you've given up, [laughter] >> kind of achieved what you're going to achieve, so the pressure is sort of off. >> i agree with that point wholeheartedly. you're out of the rat race. you're not producing that aggressively. you're near retirement. enjoyed your job. decade being in it. you have perspective why you should be happy at work and not necessarily always feel like you're trying to climb over somebody along the ladder. i think that is really a nice point of leisure for somebody who is also working.
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people want to feel valued, like they contribute to something. like they're part of something. even if it is flipping burgers at mcdonald's or greeting at walmart. melissa: why should that be at 50 than you're younger? >> goes to your sense of self. you're knowledge -- >> maturity. >> you're not a young person anymore. more comfortable with yourse. knowing you're part of a team. melissa: you don't think that, is there, and i meep i agree with you. but is my job to be the devil's advocate here. you don't think the people given up? given up, that is what i'm going to do? they're resigned this is best i'm going to do. i will be satisfied if i have even this. this depressing economy where there is no hope of upward mobility. maybe if you're younger you think you can get ahead. at this point you're 50, this is all i can do. >> maybe by and large you're working because you want to and gives you a sense of -- >> all work has value, no matter what you're doing it has value. you can succeed.
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melissa: >> some of the happiest people you ever see is walmart greeters. i'm serious about this. melissa: really? >> they tend to be older. retired. getting paid to do a job. they greet with you a smile. well that is just their job they're being paid to do it. there is real authenticity. they're happy to be there. >> absolutely. >> go to walmart a lot? i need a photo of that. >> how many people get to a point of retirement age, leave the workforce and then elect to come back in to the workforce. melissa: yeah. >> that is because they understand, tre is a lot of benefit to it. to jonathan's point you feel productive, valued and respected that comes with perspective of maturity. melissa: older workers working for good bosses. bring it full circle. maybe like a lot of young people, go ahead. >> retire and find themselves at home and go back to work because they dope want to kill their spouse. melissa: right. there is that whole don't kill your spouse thing as incentive to be happy at work. that makes all kinds of sense. >> think how much difficult we
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make it to be employed or higher minimum wage but regulations to not only get money but self-esteem. melissa: always better than going home and killing your spouse. thanks to all three of you. we appreciate it. coming up, clue countless ceos, why are so many completely incompetent when it comes to technology? is yours? keep watching? is your household morphing into one like mr. mom? many are. marketers are catering to the manfluencers. bruce terkel is
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>> you can contact us by mail, just send a postcard with the word, help, to the u.s. government, attention internet
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problems, washington, d.c. and in six to eight weeks you will receive an informational brochure along with a trial version of encarta enencyclopedia. [laughing] plus 1,000 free hours of aol. [laughter] just don't install any of these programs while our website is running or it will cause an actual fire. melissa: you think your company is ceo up on the latest tech. think about for this a guy who swept in the white house on wave of social media savvy and youth culture, he is handling the ongoing technology disaster like, well a middle-aged dad. how close to home is this for you? believe it or not this outdated view of technology infrastructure is shared by more than a few of the country's top ceos. joining me our david asman and harvard business school david kaplan. let me start with you, robert. so, the about the has tried to break apart and separate, there
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is a problem with the website but it is totally different from the actual business. a great way to run or company or would that not fly elsewhere? >> no, and i don't think he actually thinks that. i think he knows and most ceos know, this is a, this is management problem and it is all integrated and, and so he's trying now to this has gotten messed up, to try to isolate it and to emphasize to people this is not the end of the world but he knows it's completely integrated into the overall program and it's really a leadership issue. it is not a technology issue. melissa: how common do you think this is in this day and age when on one hand, almost every business you have have has an online component? we still have many ceos who, you know, came to maturity and entered the business world in a time when it was a very small part of the business? how common is this phenomenon? >> well, it's not uncommon that
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a ceo doesn't fully understand the technology in a given unit or how online is worked or how a young person would access a site but the reality is, that is why ceo doesn't need to know everything. a ceo does need to put the right people in the right seats. melissa: yeah. >> and give them, clear, authority, and lines of responsibility and generally explain what the overall purpose is. melissa: yeah. >> you don't need to know everything but you do need to put the right people in the right seats and manage them so they can do things so you don't need to know everything. melissa: david what do you think? you talk to ceos every single day. it is, not all ceos, i mean real point is, this could kind of happen to anyone out there today in the sense that you are a ceo. you don't know how to write code. >> right. although people in that business, again, remember there were these technical genius that is were supposed to run this computer system but i think the
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professor gets this right, this is not just a computer technical glitch. this is systemically problem. this is systemically problem essentially do you meaned to failure. he is not only tech-savvy but a good manager. he said several companies in silicon valley had glitches like this and went under. if a system is defined by technology which in a way this is, you can not simply survive. this unfair because at love aspects of government programs are unique to public sector programs as opposed to private sector but he said over and over again, if this was a private sector program it would be out of business. melissa: robert, michael wolff with a great article in "usa today" where he talks about the fact that you can't separate the website from the actual business as president tried to do.
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making analogy, take a flight, really focus on the feet that the airplane is achieving by hurdling you into the air and taking destination, ignore the fact you spent five hours on tarmac. in that situation you can't separate out the product from the process. business today that is just how it is. is that what you would say to students, there is no way to separate it? >> i would say it another way. technology and an online site is another vehicle for distribution for how to interact with your constituencies, with your customers and if that gets messed up and it impede the way you interact with your customers you're going to have a problem. so this is a very high priority for any business and actually, it is a high priority for this administration because this program is so critical, health care reform, and getting people signed up is essential, to having this program work. so they will back up. they will fix this.
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the technology here, while complicated, isn't that complicated. this is integration, coordination issue is what is complicated but that is not technology. melissa: there is some thought that it is not very complicated at all. this is in fact the easiest part. almost every business has a website where you go on and sign up for something. >> yeah. melissa: if they weren't able to set this up right from the first place and weren't able to get rolling and still haven't fixed this and picked people they had to run it, white house so so close to anyone in silicon valley, they could have called up eric schmidt or anyone from facebook and called up and do it for free. >> could i go on with issue of technology is the issue of trust, dealing with health care. picking a doctor, trusting an institution or individual to give what you you need for yourself and your family in a very personal way. melissa: right. >> this has been all about false advertising. the president is saying if you like the system you will stick wit. only thing that will change the. you can't stick with it and price has gone up.
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so the element of trust in this program has also failed. melissa: we'll leave it there, thanks to both of you. coming up, who is the influencer in your house, man or woman and would you both agree? put your money where your mouth is because we'll put that question to the test. who made money today. they're eating up profits after today's great news. keep it here and find out who it
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melissa: is. >> half a pound of a.m. --. actually just give me half a pound of salamis been met by italian, a kosher, pork on? direct just get bloody. melissa: believe it or not to then today's that show
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half of mid to all cooking at home in more than half to all the grocery shopping. companies take a vintage of this to market more to bet after breaking the many decisions. we have our money marketing coup room with us as well. 58 percent do all the pressure shopping? of a single? that is the only way this makes sense. >> 70% of all statistics are made up of the spot. i don't believe that. >> i think it is the possibility on top chefs most of the vendors are the men. >> but there is the trend to
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the men doing more even if you think those statistics if you're the sitting on their radios 74 percent say clipping coupons does this change marketing? that rather than and marketing to women doesn't make sense whether be days or pancake batter? should they go down the center to either gender or met capture the male audience? >> before they know they have to do more research. the articles i read talked-about been considering themselves help we if that is politically correct if you are a helpmate you bring back what your proofread told you to bring back the question is what happens when they start to do this with their own responsibility? then the companies will change the way they market am able, a package products
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because been to buy things differently than vivid. melissa: my husband does have the parenting that i don't think he knows how the chips are the immelt gets into our house for i think he thinks there is a final that comes that drops off. but we see more companies trying to market directly to amend the. >> i think if you talk about yogurts a black and red packaging it is as much above the state as making that head for the women that were in pastels. there may be people it will sell to bridal think it is the majority. melissa: buddies take? you are creative. van burger helper? vivid that would be huge.
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hellman's mayonnaise, potato chips but to put stuff with black labels will vote not work. and then buy products that say protein if you sold granolas bars if you put the word protein you will get more mail purchasers just like the women by calcium but just by taking it is a slim jim is a mistake. melissa: is protean really males all or that we're trade that cards our bad to you think that is the carb but instead of trying to find protein okay that has protein. >> it is a combination. there are ways to market
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they are problem solvers maybe why they like to go shopping or make a list but is not the color of the packaging. >> they are hunter-gatherer's so that makes sense to us. melissa: does that mean you randomly go down the center to shove down the stuff to get out as quickly as possible? you read the labels? or are you just conditioned to buy a the brain and they have seen at home? are the conditions and to get what they have seen at home or is there the opportunity to retract new business? >> you do have the efficiency buyers the same things off the shelf to get in and get out and nobody gets hurt.
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also people enjoy looking at the different products. parts of it is the change of the workplace and with the recession more men are out of work that is why they do it so in that case they are dollar conscious and keep on conscious maybe more so than the women because that is what they care about. it depends on the audience but in general, i think you'll find people our concerned about buying a nutritious food at reasonable prices said that nothing that changes. melissa: is that sustainable trend? more families have the data at school or staying at home because more women have kept their jobs and have taken over the household. does that say? or do we pull ourselves out does that turn back around? >> looked at the same-sex marriages with two men one of them will be doing the
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cooking and cleaning i think it is sustainable. ultimately they are individuals but both men and women want their kids to have clean ) he tell the so it is individual decision making with the marketing. melissa: we will leave it here. up next what is the color behind apple? a top analyst is here. at the end of the day it is all about money.
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melissa: every corner of the globe many has been flying around first it was spain the newspaper reports our national security agency spied on more than 60 million paul calls? in just one month last year? this comes on the heels of allegations that the beloved
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nsa push the boundaries to spy on france and also german chancellor sulfone. -- cellphone now to try the country wall spend less on business travel spending money spent on china business travel is expected to jump 14% this year in an 17% next year. almost all of those will be in asia self korea hong kong and singapore as the top destination america will be number eight top spot for chinese business travelers. also dealing with a sagging sales at home, a consumption is at the weakest level. wine consumption according to the biggest blame going
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to the economic downturn and they have to look for more customers abroad. more than 50% of italian wine is exported up from 28% in 2000. th biggest buyers are the u.s. and germany. are they drinking lessor are we drinking more? the anticipated earnings are out of the call is still going on but apple responded to questions about the fiscal fourth quarter earnings reports that beat forecast expectations making waves on wall street we have the latest, tom, a figure for joining us. what have you heard so far? >> missing to the comments by the company they try to explain their gross margin guidance was not as it as anticipated. a combination of new product and refresh and also differing more revenue fathering their decision to
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give away some software for free. otherwise i hear that the company intends to have potentially new products. the possibility of the apple television or so watch they will not commit but they said they're interested in something that leverage is there unique skills so they are keeping the door open for those products. melissa: but what was the actual five you got listening to it? was mid-80s or did you feel that it was in the pipeline? don't worry? >> that the new product innovation would come in the fall calendar year 2014 so i am encouraged so far hopefully there is more to follow. melissa: to said they did their explanation for the margin direction? >> i do. any time they have visited again product refresh as
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they have right now with the i patted the december quarter there is additional pressure on the margin. melissa: what was the most interesting question? >> see other thing that made me think is when they talk about their strategy of the pricing of the smart phone. it is not intended to be the entry level device but the 4s is the 5c is midyear and five s is the high and i did not expect that. melissa: that is surprising so how does that change your outlook? everybody said it stood for cheap. >> i tried to go color of thursday and cheap but it seems they are using a combination of last generation phones with the newer devices with the five
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series to improve the smart phone market and it could be a workable strategy for apple. melissa: it carl icahn has turned his focus icon to demand the return money to shareholders. west there anything on that front? >> to things that were interesting. they will always be open to here with their shareholders a just and they anticipate making any announcement early 2014. when they talk about their cash, a fair market is overseas with their domestic portion and given the large dividends for the program. >> they said they had held steady? that we don't feel any pressure to give any back? >> yes.
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if the domestic cash were to decrease precipitously there would have more money to buy back shares as a way to say holding firm we're not sitting on 150 billion. melissa: it sounds like bait lay the case they will not do what he once. what happens then? >> the carl icon situation and can be a catalyst that i am looking long term and more interested in what the products might be. melissa: having listening to everything to you feel better or worse about the report as it came out? >> was feeling pretty good with the numbers with the smart phone exceeding expectations and ipad was reasonable but now with a better explanation i feel even better. melissa: good stuff.
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a joke. but it isn't because we talk about vessels that have gotten so big that some are questioning from "the new york times" that it is not safe any longer. water the potential dangers? >> there several but the concordia disaster last year highlighted quite a few of them. one is the ability to muster all the of passengers to get into lifeboats before the ship sinks but then once you get them in the water with the contingency planning because that is a disaster.
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melissa: this is the biggest concern that it is not that reasonable that you could get thousands of people to safety in time so it in 2010 it require that new ships have sufficient redundant systems so that no matter what they go through they can always get back to where they started from but a lot of vessels do not cply. is that true or is it reasonable to think they could have enough redundant system the matter what to get back to safety? >> you're asking for the same thing in 1912 with the titanic that was unsinkable. we do live in a perfect world. we will do everything we can in the industry to make the ship safe with sufficient redundancy that we need to keep her afloat.
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unfortunately through mechanical disasters it is like a fuse blowing or smile -- a small fire in the engine room has a cascading effect they don't have the services we need. melissa: to say that isn't even reasonable? the other major thing is the health problem that makes me the most uncomfortable that you have so many more people in this confined space that viruses spread even faster. is that a bigger danger now that they carry more people? >> is at least as large a danger you're talking about 10,000 people upwards of 3,000 or 6,000 on the larger boats.
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just the amount of human waste in debris that generates it is a daunting task to manage within the health parameters. obviously we have seen the hell breaks of the enterovirus and the disaster with carnival in february, when things don't work the sanitation and health goes downhill fast. melissa: should there be limits on how big the vessels can get? or should we try to step up what they do on board to solve the problem? >> baby should have limits where the envelope then i cannot tell you but we should make sure we should have properly trained crews properly screened management
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the don't jump in the lifeboat at the first sign of disaster. melissa: thank you capt. for joining us. who made money today? it taste good when you have it your way.ñ@ç@çpçpçpç÷ñoxm
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melissa: mother role straight or main street here is to make money today. burger king reported third quarter earnings to hit the expectations overseas sales growth and plunging expenses helped profits soar in a thing as delicious as to have their way. i am sure it tastes pretty good. quincy jones the iconic
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producer is suing michael jackson's estate for $10 million cleaning the entities improperly read edited songs in order to deprive him of royalties and production fees on some of his greatest hits like billie jean and thriller. he also says he should have gotten a producer's credit on the hit "this is it". but hoping to make bank with a brand new range rover it unveiled the most expensive model ever with a staggering two did $50,000 price tag for of course, you do get electrically deployable leather covered in tables and u.s. deports in the we are consul 10 different colors of mood lighting and 80 massage settings if you
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have the means i highly recommend picking one up. hope you made money today. hope you made money today. how they keep to a the following is a paid advertisement for the rock and roll hall of fame dvd collection. brought to you by starvista entertainment and time life. ladies and gentlemen.... good evening... it is star time... better get your tuxedoes pressed... are you ready for star time? this only happens one time. let's get it on! rabble dabble..... savor! woo! ba-dah-dah-dah! please join me in welcoming... into the rock and roll hall of flame... once a year, rock and roll's biggest stars get together for an exclusive party. it's the rock and roll hall of fame induction ceremonies,

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