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tv   The Willis Report  FOX Business  January 8, 2014 6:00pm-7:01pm EST

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report. an american energy revolution and natural gas production hits a record so why are consumers seeing higher prices? we investigate. on-line brochures obverses traditional supermarket where to go to get the best food and price is? how do you do that? making gift cards work for you. tonight. the wallace report. gerri:
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tonight your show your money. your voice. and your skyrocketing energy costs. despite the energy boom feeling the country in record cold temperatures causing natural gas prices to soar. fox business contributor for the price futures group joins me now with the answers to our questions. the energy information administration put out a rare energy market to alert me. they say in new england we will have problems getting be energy to you. natural gas has a hard time are you kidding me? the stiefel nursing and the largest supply in the country with the shale formation. what gives? >> they were slow to move to natural gas. the northeast has traditionally heated homes with heating oil. we don't have the
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infrastructure in place to take a vantage of the cheap prices. the demand for natural gas as people say this is the fuel of the future coming demand has gone up faster than the capacity. gerri: the industry is behind their not cashing in on the opportunity. with the production is expected to increase 56% but because of the cold snap raising temperature iran service that we have seen some of these prices and the stock market rise 20 times. people will get the worst shock ever later when they get the bill for jittery -- j you very. >> but these spikes the consumers will not see this next month.
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of the utilities will eat some of the cost you will not see the prices go up overnight. gerri: no doubt about that it is rising pretty dramatically over the last year because of the bottleneck why can't they get built faster? >> because nobody expected all of a sudden go from a country that had peaked natural gas we could not produce enough to keep up with demand in did two years become the saudi arabia of natural gas. nobody saw this coming. it has been incredible transformation almost miraculously it takes time to get the infrastructure in place. this is a relatively new phenomenon. we will see lower natural gas prices and not all of the country's experience. their prices only go up
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modestly. if you remember where prices were a few years ago, they were at record highs of $15. gerri: into your point, half of america cover natural gas for heating in this country i am one of those who switched over. all these old houses used a real it is expensive we thought we would save money. that is going up. >> the infrastructure will get in place and it is a lot easier to pay the monthly natural gas bill that is 20% higher than selling your tank in the middle of winter this is the first time probably in seven years were skeeting in oil prices have
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gone not gone up as dramatically as natural gas because of the shale revolution. gerri: over and over again and it is so disappointing but i have to ask you this give me one idea if i have to pay that higher bill how do i make money? >> at the end of the day if you paid a higher bill the best way is to insulate your home but in the investment world of natural gas revolution is of beautiful long-term play the long natural gas and other people say invested minimalts -- and mineral rights because this is the tip of the iceberg but even though we have seen a short-term increase when the infrastructure is in place overall prices will be lower
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gerri: that cannot come soon enough. >> a couple years ago we said gasoline prices welcome back down then they go up but the trend is lower to see those prices. there will be growing pains but rabil have been. gerri: i will hold your feet into the fire. >> i am glad i wore my boots today. [laughter] gerri: good to see you. we will see if those prices come down soon. of calcium getting out of your child's lunch box. do you remember these kids? >> ♪ ♪
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♪ gerri: that was so cute now kids can rejoice the healthy lunch crackdown that left the kids hungry is rolled back. republican senator of north dakota and joins me now. i will get right to the story of first half to ask what is going on in the northeast. pipelines hatter compromised people liars seeing bills rise and prices are going up how can this be when we have increased production so much ? >> i have been working very hard to get more pipelines not only a crude oil by natural gas and with this extremely cold weather, at the very same time in my
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state of north dakota and others flare off the gas because we do not be enough pipeline to get it to market. that is why i am fighting to get this illustration to lettuce lay down more pipeline. >> once these folks are to see their bill you will see some complaining. >> we have the energy we need the infrastructure the. gerri: talk about the school lunch program. we have heard a lot of yelling and screaming about this program the government put in place that kids were just supposed to each black beans but now the government is backing off but partially because what you have been doing. what is your role? >> together with senator pryor i put together a piece of legislation called the sensible school lunch act that says look for usda you
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have to back off of the serious restrictions one-size-fits-all federal approach that does not work for the schools. as you showed the reason i started to work on it because students from across my age state were saying we're not getting enough to eat. can you help us? >> you even have a letter? tell us what the students have been saying. >> here is an example. just part of it from liz been note from north dakota. >> schools in the united states neary -- need better ledges i am sure you get the amount of food that you want so why can't we? i am sure you don't starve during the daylight as. do you thank you could change this by convincing the other senators? this is very important. it was really the school kids that got us going. of this bill was set to pass
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into a jury with no opposition and the u.s. and the da made the changes we ask for to lift the limits on grains and protein that the kids could get on a daily basis. gerri: the big fear was obesity the with the federal program was to fight that? >> they can now with a program they estimated would cost $100 million to implement then only provided 50 million to do it. not only does not work with the one-size-fits-all approach from the federal government but all the cost to the schools as well. now we have a big thank-you to the national association of school nutritionist who got on board to the senate offices to get people on board.
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>> the federal government could not ignore the screaming and yelling from schools from all over the country and parents did not like the federal government in the lunch box. great to see you. come back anytime. what do you think? here is our question. should the government get out of your child's lunch box? i will share the results at the end of the show. we're just getting started. more coming including a warning about the gift card in your wallet. supermarket verses online grocers. who comes out on top? the man with the answer. ♪ [ male announcer ] e new new york is open.
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to all my groceries services to the supermarkets. the wall street journal shows by space kicking be cheaper. with more on this date you for coming on the show. also the fear is the selection will not be as good as they will pay more money. are all those worries legitimate? >> we thought the same thing we were prepared to say all my groceries were stuck in the past but we were really surprised. all those fears but the biggest surprise was pricing when retested i found 10 percent last them my local supermarket like to get my groceries on-line and have them delivered. was surprised us the most is the pricing.
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with somebody else choosing their produce everything was mostly okay a couple of brews began as but it was fine. also with the selection but i could compare prices. i could look at one store like i do to buy anything else like a lucky one story tuesday that bag costs $6 and $0.9 but the other store is $12.99 we cannot do that at a regular store. gerri: i want to explain you are actually given las vegas at the technology show that is why we hear the background noise so we appreciate you to make time for us because you did a lot of legwork and checked out prices in how many cities? >> six cities i got my colleague involved with 214
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groceries in different cities as well as other local said we compare the price is with the huge range of $40 from one store that really surprised us. gerri: amazon is to bring their own delivery so how good was it? >> i am glad you brought that up that is the new entry into the market is starting to shake things up. they have their own distribution center, their own produce and they brought some of that say innovation that we have become accustomed to that they brought that to groceries. you could have the amazon fresh apple whatever you needed then it arrives at your door before sunrise the next morning.
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that fits my busy lifestyle. i appreciated that. gerri: what did you buy? what was in the tertiary basket? >> 40 items. we tried to find things available everywhere. starting with us bls and comparisons then we added bananas, milk, a chicken, serial, a body washed yvette and ice cream. gerri: vegas for coming upon judicial we appreciate your time come back when you're in new york city. gerri: later in this show up more flaws of the obamacare website leading to friday and those who'd give or get a gift cards but unfortunately they have a downside.
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♪ ♪
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gerri: and gift cards use them or sell them? what you should do if you don't want them. next.
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37 christmas is over but i bet you received a gift card since it is the number-one requested items seven years in a row but the plastic dash does not have value if you don't use that. from -- welcome back to the short cannot believe how much money people put on these kids cards. 180 billion just last year?
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it is an amazing business but i don't think people understand the downside. >> the gift card remains the most asked for and most given a gift to add only during the holiday season but throughout the year. there are pros and cons but the approach is that you don't get the wrong size or color. the call-in is it limits the use ability to only the one store if you don't use a cart there is the chance the value could diminish overtime. gerri: talk about that. there were saab changes so it is better but still not perfect. there are dormancy fees that can be charged? >> right. prior to the card act it was the wild wild west. if you were given a card it
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could almost immediately diminished because of fees for dormancy. now it has said the card cannot be assessed a dormancy fee of less it is false months in a row -- falls months so they knew of no argument. but the good news is the five years as a safe harbor period they have to leave the boat over five years before they cero out. gerri: is still not perfect i would like to see the dormancy fees go away even american express said we will not charge that trying to keep consumers happy. but what of the problems with a gift cards is you get a gift card ted you never go
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to that store. you have to do something with it. what to do? >> what has happened what has happened is you have been re-gifted. [laughter] there is a pretty active secondary market for gift cards you did go old school to sell it odd ebay or there are a variety of websites where you can sell the card to the site then they turn around to selling directly to a consumer. you do not get dollar for dollar they will offer you something less than the value so they will make money in the spread what they pay you and what they sell it to the consumer. gerri: i have been talking about a gift card gritty all day that will link you to
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places to begin a 70% or maybe 60 percent but the reality is you have to be careful there in and out of business sometimes it works and sometimes it doesn't you have to check them out. >> if we had this conversation in 12 months ago with those who did this exchange you would be surprised how many don't exist today. you have to be very careful. do your own due diligence to see how long does site has been in business. if it is brandon do i apologize away to stick with what has been all around progress cart -- gift card granny has been around some will even forgo giving a cash in instead give you credit amazon or best buy some will even give you airline miles. there is a lot of options to do some research.
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gerri: i wish you did not give me that. [laughter] >> i am so sorry. [laughter] gerri: good to see a. -- you. how many more will pay more for health care and why obamacare is to blame. also the flaws continue we have the latest on health care.gov its issues. don't go away. so ally bank really has no hidden fees on savgs accounts? that's right, no hidd fees. it's just that i'm worried about, you know, "hidden thin." ok, why's that? well uhhh... surprise!!! um... well, it's true.
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>> from our fox business studios, here is gerri willis. gerri: it is warming up out there. onto obamacare. required hospitals and physicians to move away from
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paper records into digital records. the new report from the office of inspector general said the federal government is not taking enough precautions to weed out fraudulent activity. joe, thank you for being with us as our guest tonight. the government is spending $22 billion to encourage the health care community who digitizes this and somehow making more liable to have this information gathered? >> it's not too surprising. it's cheaper on a per unit basis. that is basically what the inspector general this is an
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effort to preventing these kinds of prods when activities that could occur down the road. gerri: here's what i don't understand and that is essentially what happens with these records. and so by virtue of making these digital, it's easier to steal the information. >> absolutely. and that seems like something that we can figure out ahead of time. >> well, yes. and this is not a criticism and
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this is a private industry that struggles on a daily basis. gerri: joe, you are the expert on this one and they could very easily detect the records that have repeated information. and they move very quickly into
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the computer world. gerri: hospital adoption of these digital medical records is 44% up from 2009. and so they are almost there. when you talk to security experts and to people, the private information is indeed private. and so that is because the bad guys pay the most amount of money for health records, even more than your social security numbers. what should we be doing? and how we protect ourselves? and they did a bonanza that and that's really awful. and we have to have agent us go back and when congress and hhs were really in a rush to get the
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hospitals and doctors to adopt this technology, with a basically have done is bought this off-the-shelf with the technology that doesn't have. gerri: was that the problem? >> hospitals and doctors were rushed. the government certainly wasn't rushed. gerri: joe this is a fascinating conversation. thank you for coming on the show. it's great to see you.
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and the white house has bought advertising time during the super bowl, especially where there are a lot of uninsured people. no word on how these ads will look like or how much taxpayer money is going to be spent on it. and when we come back, and obamacare strikes again. a new survey showing how many more of us will be paying for health insurance this year. welcome back. how is everything?
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open to innovation. open to ambition. open to boldids. that's why n york has a new plan -- dozens of tax free zones all across the state. move here, expand here, or start a new business here and pay no taxes for ten years... we're new york. if there's something that creates more jobs, and ows morbusinesses... we're open to it. start a tax-free business at startup-ny.com. gerri: the new reality facing
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americans with employer provided health plans. thanks to obamacare. >> several of this has been about obamacare and these are the people affected by the cancellations. the most common way is to have this. we want to find out what people are feeling and many of them are feeling squeezed. many of them are feeling that money is being taken out of their paychecks for health insurance and 44% say that they are noticing higher out-of-pocket costs, which include the dockable's are also co-pays.
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gerri: who is really getting stunned here? >> we found that the people in the income bracket and this is the group most affected by a cadillac health-insurance plans, higher cost plans. there is a tax. gerri: amen and amen. we are seeing that reported. we are seeing it in our own paycheck. a lot of big changes and those whose plans are typically terrific. having to dial back because of obamacare. more information from your
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survey and we couldn't get enough of that. a lot of folks say they have fewer doctors to choose from. >> 20% said that they are seeing a narrow choice of doctors and about 7% said that they are about being affected and company saying they don't want to cover the employee spouse anymore. when they asked me in september, the results were split evenly a 46%.
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gerri: it is just amazing. thank you for coming on tonight. it's so great to hear from you. gerri: health care costs at expected to skyrocket this year. i have news for you. it is certainly not the only thing that is going to go up in price. the products you will be paying more for. number five is housing. all home prices skyrocketed in 2013, there is still room to go. predicting a 5% jump. the cost of borrowing is also going to be more expensive. mortgage rates are going higher along with the subject of 3% rise in rent. number four is public transportation. commuters in new york city and san francisco have rdc increases of around 5%.
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and number three, for those of you to use the good old post office. the price of stamps is jumping six and a half precent to 49 cents this month. fedex and ups are also increasing their prices. in consumer demand for honey is up and the bee population has been reported to to be dwindling. the number one thing you're paying more for this year is nuts. prices are up about 9% and costs are going up as well. still to come, my "two cents more". a host of individuals making
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their debut at the consumer electronics show. we will have all of that and more and all about coming up next
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gerri: a sneak peek of the hottest things in the market in 2014. are they a good good by? we will have details in goodman country in two
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gerri: the consumer electronics show going on in las vegas. "the willis report" is getting an inside look and a line of high-tech tvs that are poised to hit the market and i know it's
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busier than hack there. we appreciate you taking the time to speak with us. prices are going to come down. tell me about that. >> prices are going to come down for a 1080 tv. but the high-resolution tv, prices will drop about 40 to $50 this year's. gerri: that's a big number. if the ultrahigh definition more that? and something called 4k. what is that? >> yes, they are the same things, but they are called different.
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gerri: so they are saying nobody cares about television sets anymore. you are surrounded by them. >> next year it'll be cheaper if you wait. but the thing is that a lot of people who like to print their purchases may be interested in it. especially if prices come down. the other part that was missing last year was for cake content. in a couple companies say that they will deliver the videos this year's. gerri: interesting. there's a real opportunity here and i want to talk about some actual steps. i understand that you have the new vizio tv. >> we had a chance to look at it.
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and the good news is from vizio they are going to sell a 50-inch tv $4000. if there are people who are in the market for tv like that, it's more portable to go with a smaller screen size. gerri: 120 inches. 6 feet high. who needs that and a lot of people are able to fit them in. >> that's a really great question. aesthetically it is a very definitive look.
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and so we will be getting it this year's. gerri: tell me about the lg 77 and. >> the interesting thing is that it is a new kind of technology. so this is the biggest one that we have seen. gerri: but would you buy that new technology now? would you wait for them to get it perfect? >> you know, one of the questions is manufacturing. there's no way that they are going to have this tv be affordable for most people.
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gerri: so you come home as the your wife is shaking your head and you have no place to put it. >> welcome unfortunately the consumer reports are not allowed to accept anything. and there are so many things. gerri: that is admirable and we appreciate it. thank you for coming on the show. have a great time.
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gerri: the federal reserve meeting shows some parts are worried about a plan to modify the cutback on stimulus. they say the markets might misread the move. and adding the most jobs in the year in december in the business sector for 2013. and sales for november and december was more than 2.5%.
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in san antonio, philadelphia, los angeles, kentucky, and oklahoma. those are the hot stories on fox business.com. i will be right back with my "two cents more" and our answer to the question of the day. should the government get out of your child's lunchbox ♪ [ male announcer ] this m has an accomplished research and analytical group at his disposal. ♪ but even more pressive is how he puts it to work for his clients. ♪ morning. morning. thanks for meeting so early. oh, it's not a big deal at all. come on in. [ male announcer ] it's how edward jones kes sense of investing. ♪ legs, for crossing. feet...splashing. better things than the joint pain and swelling of moderate to severe rheumatoid arthritis. if you're trying to ma, now may be time to ask about xeljanz.
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xeljz (tofacitinib) is a small pill, not an injection or infusion, for adults with moderate to severe ra for whom methotrexate did not work well. xeljanz can lower your ability to fight infections, including tuberculosis. seris, sometimes fatal infections and cancers have happened in patients taki xeljanz. don't start xeljanz if you have any infection, unless ok with your doctor. tears in the stomach or intestines, low bod cell counts and higher liver tes and clesterol levels have happened. your doctor should perform blood tts before you start and while taking xeljanz, and roinely check certain liver tests. tell your doctor if you have been to a region where certain fungal infections are common, and if you have had tb, hepatitis b oc, or are prone to infections. tell your doctor about all the medicines you take, and if you are pregnant, r plan to be. taken twice daily, xeljanz can reduce the joint pain and swelling of moderate to severe ra, even without methotrexate. ask if xeljanz is right for you.
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if you have a buness idea, we have a personalized legal lution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reali. start your business today with legalzoom. gerri: the feds finally heard the students complaining across the country. the usda is implementing its free lunch guideline. here's what some of your posting on my facebook page. the government should just get out of everything. is what one viewer says. and dana agrees. the government is way too involved in choosing and buying the food for children. 95% said yes and 5% said no. here are some of your e-mails. we love to read these. the great state of north carolina. one viewer writes that as far as the demonstration is putting out
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on obamacare, i believe that like i believe i can fly backwards. i don't believe one thing that they say. and rogers says no, i don't believe the government. it was rammed down our throats in the website has been a disgrace from day one. never have i seen such a wasting taxpayer dollars. and finally i am happy to tell you that temperatures have tripled. about 22 degrees. that won't help you later this month when you get your heating bill. the damage has already been done. and even if you think you are sitting pretty, as you said at the top of the show, think twice. because no doubt you have used even more natural gas than you normally would. those are the extremes just like the weather. here in the northeast, despite the fact that we are sitting on the nation's largest natural gas reserves country. cold comfort tonight as temperatures started rising again. and that is my "two cents
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more". and that is it for tonight's "willis report." thank you for joining us and have a great night. stay warm. ♪ ♪ lou: bob gates new book force in the white house to respond to the former defense secretary who has a hybrid trail of obama and vice president joe biden. the former pentagon chief leveling heavy criticism of the administration's foreign-policy decisions. i am lou dobbs. ♪ ♪ >> good evening, everyone. the white house on the defensive today over allegations revealed in a memoir of former defense secretary robert gates. in his book titled duty, the right

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