american express getting a big bump. [closing bell ringing] >> american express is the reason the dow is higher. we're higher for the week. david: unfortunately not all intoday sees are higher today. we'll take a green arrow on the dow. end of today's trading session looks like it is trading up a bit. it has been higher. all the other indices are higher. it is a down week for the dow. but it is kind of a mixed bag on reporting front. american express we reported last night doing extremely well today. morgan stanley as well. we have an interesting hour so stay tuned. liz: time for the front page headlines. consumer confidence unexpect he hadly falling in january, dropping to a reading of 80.4. the thomson reuters university of michigan survey highlighting reduced expectations among lower and middle income families. david: the commerce department says housing starts fell 9.8% last month to an annual rate of

990,000 units. it was the largest percentage decline since april but the drop was less than expected. liz: the federal reserve coming out with a separate report saying industrial production rose at its fastest pace in 3 1/2 years, this in the fourth quarter. the gains suggest there are grow of strength in the economy. david: general electric's stock dropped after its quarterly earnings report disappointed investors. ge falling slightly short of think of the think of the -- 2013 goal for. liz: ups failure to deliver many parcels in time for christmas led to higher expenses. david: president obama said he will end the national security agency's ability to store phone date from millions of americans. the president deliver ad major speech as he tried to damp down controversy over surveillance. busy hour coming up.

"after the bell" starts right now. liz: let's break down friday's action. we have drew kenneally of kenneally trust. drew will talk about, look at him, he is so excited, what he is adding to his portfolio here. we're excited what he has to say. david cued low mainstay capital management with three companies to buy. we have scott bauer in the pits of the cme. we'll begin with you. what might the friday action tell you about what we might see next week? >> a real interesting day today. you had american express and visa. that is why the dow was up. until until the last hour of trading we saw volatility flat. the vix flat. even though broader market was down. what concerns me is that last hour he have about the last rally we saw over the last few minutes we saw the vix increase actually quite a bit from about the 1260 level to about the 1290

level. if you go out to the february futures we got up to about 1450 level. what is very interesting about that, the last four times it hit that level we've actually seen a top in the vix and it has come back off. so what i'm seeing here, and you can see it back here right now, there are lots of buyers here but there are buyers all the time. traders are buyers because they can stay long in the market because protection is still so cheap. so that's really the positions that i'm seeing. but what is concerning to me is that vix heading up to 14.50. david: david kudlow, while vix was going up, interest rates were not going up. we still had the interest rate spike 3% on the 10-year. then it came down to 2.8, 2.9 and it has been in that range for about the past month. as long as that doesn't go much above the 3% mark a lot of investors feel comfortable. do you? >> we do feel comfortable.

certainly where interest rates are now. we feel comfortable for stocks. we think that bond have a more troubling future ahead of them. but as long as rates are only moving up at a steady pace and accompanied by stronger economic growth, ann we saw some of that improved retail sales this week. strong industrial production number, we're seeing strength in the economy. as long that accompanies higher rates, don't move up too quickly, stocks do well, interest rate sensitive bonds will have problems. liz: interest rate sensitive bond. are all bond slightly interest -@rate. will you pick a certain end of the curve? >> there is very good question. and exactly where we focused in the past six or seven months, as we continue into 2014, specifically floating rate notes, that adjust their yield every 30 to 90 days. a rising interest rate environment can do quite well. did very good last seven or eight months of last year

continue to do well. high-yield bond, more about credit risk and default risk than interest rates. they have done well had this environment, with strengthening economy. we think they continue to do well even though spread are narrowing. david: drew kenaly, we love analogieses. you said first quarter of this year we still have the wind in our sales from 2013 which of course was a spectacular year, but, we may be heading for some dead calm area right, the second and third quarter? >> almost seems like it is playing out now. what we'll really see play out this year is a question over top-line growth. i mean are we going to see expanding economies here and around the world? is that going to translate into expanded revenues for corporations. david: hold on a second? i want drew kanaly to answer that. what do you think will happen? >> you will have to be patient. more than likely you will see it the second half of the year where you see expectations for rising revenues.

that's why we think there is probably pretty likely snare yee we get a midcourse correction this year. so, to age you in this your portfolio because you have to stay in stocks, we believe it's a stock-pickers market, we prefer active management other overpass sieve management. we've been a fans of passive strategy. we think 2014 is year you take on more active managers in your portfolio to help you navigate through this year. liz: scott, traders navigate through the next five minutes, mostly on that floor of the it's a very tough game to play but can you tell what you're seeing when it comes to flows? is there any interesting pattern or behavior you're seeing? we had bob doll from nuveen. he said commodities will be anemic. so will gold. is money continuing to come out of those areas? anything interesting? >> funny that you mentioned gold because i'm actually seeing out here a lot of speculation to the upside. traders really thinking that a floor has been put in, at least

a temporary floor. liz: really? >> maybe not here at 12 and 1/2. maybe 1210, 1220 level. so the mentality on the floor is really, that there is probably a much better chance of a 10 to 15% upside in gold than there is to downside which is quite different than just maybe, three, four, weeks ago, the sentiment out there. you mentioned that, and i'm seeing that feel down on the floor for gold. david: david kudlow, i know this, liz knows this but the audience doesn't you were recommending morgan stanley before its pop today. you must be pretty happy because i imagine you invested there. is it still time to get into morgan stanley? does it still have room to the upside? >> i think there is still time to get into morgan stanley. we had another good earnings report today and we're seeing, their investment banking unit has done well and their wealth management division is doing incredibly well, 79% increase in

earnings. we like financial broadly, going into 2014 with net interest margin expanding. within that space we continue to like morgan stanley. it has a good future ahead in 2014 yet. liz: i want to get to some of drew's picks before we go. you like the small growth fund, stevens small cap. we can cycle as you explain what you like. the other you like is joe, international. that is name we always like new names. >> right. so they're both contracting name. one is a growth small cap domestic fund. it is featuring stock selection as its attribute over a passive one. the next one is a johcm and finally the osterweis fund. it is high-yield bond fund but features short duration.

you get best of both worlds. this one appears to be the best position to give you good fixed income returns for returns. david: drew kanaly, david kudla. stay with us. we'll check in with you scott in a couple minutes when the s&p futures close. sound like they're heating up. liz: everybody had great ideas. so that was great. derek jeter and jennifer garner, actress and sportsman joining forces to bring healthier and more tasty food options to freezer, airplane, or hospital near you. have you heard about this company? ceo to be, christine day joining us live ahead for a look how she and the company are shaking up the growing health food industry. david: i would walk through hell for derek jeter. anything he is interested in i'm interested in. a lot of people used to walk through hell for apple but going through hell following apple. even the big debut with china mobile was not quite enough to excite investors.

>> what: is wrong with the company? is the problem at the top? will it ever regain momentum it had under steve jobs? tell us what you think, is tim cook, the current ceo holding apple back? log on to facebook.com/afterthebell. what do you think about apple? we want to know. your answers coming up. ♪ [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the tradg floor in real time. ♪ the shell brought him great fame. ♪

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we're open to it. so ally bank really has no hthat's right, no hidd fees.nts? it's just that i'm worried about, you know, "hidden things." ok, why's that? well uhhh... surprise!!! um... well, it's true. at ally there are no hidden fees. not one. that's nice. hidden fees, no worries. ally bank.

your money needs an ally. david: as we were telling you individual stocks are doing incredible things. electronic arts surged nearly actually% on reports of strong sales in december. liz: head back to nicole on floor of the snorings with more. >> that's right. cowan spoke postively about electronic arts, videogame maker. up about 12% as you noted going into the close. we saw it close at 24.10 today. that was up about 2 1/2 bucks. what they spoke about was obviously strong sales and numbers for the quarter would be impressive. they were not the only analysts to speak postively about electronic arts. we also had crt capital initiating coverage with a way rating. we talk about electronic arts, you think about battlefield 4, madden nfl, fifa 14. my son has that one. you see here what a huge, huge spike today.

it was a great day for electronic arts up 12%. back to you. david: glory days. we love them. nicole have a good weekend. liz: s&p futures are about to close in just about a minute so why don't we head back to scott bauer in the pits of the cme. at the top of the show we were asking you what signals we're getting for next week. what about the futures numbers here? >> if anything, guys are coming in flat. they're not leading short at all. they're flat. there is short-covering right now. everybody wants to go home, watch football since the bear is not in it. sit on the couch with chicago pizza and come back on tuesday. david: sounds like a good idea to me. we'll send some over. liz: thanks, scott. david: today apple's ceo tim cook was in beijing to celebrate china mobile's long-awaited iphone watch. he hinted that apple is working on, quote, great things, though refused to give any details. since the death of steve jobs

all promise of truly innovative products turned into just faster, lighter versions of old stuff. has apple lost the touch to come out with ttansformational products? is that because tim cook is not a transformational leader? brian sole last joins to us tell us why he thinks cook's ability is kind of lukewarm at best in the leadership realm. talk about china first. i was unaware by the way exactly how much some of these services are going to cost in china. the china mobile, getting an iphone on china mobile is not cheap, is it? >> not cheap at all. however, it seems to be expensive to shareholders. david: $906! that is how much a new iphone costs there with two-year contract. i know there are a lost rich people in china. out of 1.2 billion you don't need a very large percent to have a market worth tackling if you're somebody like apple but

still, that's a lot of money. >> yeah, it is a lot of money. i think the market is responding accordingly. i think there was hope this would push the stock forward. i think now we're going back to the same question. if this wasn't going to help push apple forward, what is it going to take? david: what it is going to take, we hinted at it in the intro, some transformational product, some really innovative product and frankly since steve jobs died we really haven't had any, have they? they have been all new, updated, lighter, faster versions of stuff he came out with. >> yeah. i think steve was brilliant putting tim cook where he is because he knew he needed to buy time for apple. he has done a pretty good job holding the stock price where it is. what we have to remember is that rumor is that steve jobs left hyped three to four products in the pipeline. one is going to be wearable. one will be related to television and the other two we're just not sure about.

that is going to make the market think innovation is back at apple which i kind of fear is really isn't. it is buying more time. once the products come out. the stock will jump. we might see innovation and markets created but i'm worried about 2016 and beyond. >> let's talk about 2014 first. sound like you have the inside track. i heard about these two items too, one is wearable and one involving tv do we know anything more about it and specifically when apple will introduce them? >> well, i think, you know, if we go by tim cook's hints, in internal memo and in some of the calls recently, we're going to see at least one of those in 2014, if not two of them. if i had to speculate i think the first will be the wearable. and something related to tv industry. they're both going to be big. we know apple hired away someone from nike which was leading the washable development. not much -- wearable development. not too much around the

television yet. i think we'll see one or two this year that will make the stock pop. david: let's talk about that because just about everybody i talked to have a little bit of apple stock they have never been able to sell off. that means, hold on to your stock until we get therelease of one of these products, right? for all the doldrums apple is going through right now, sound like once the products are introduced or at least one is introduced in 2014 the stock will pop? no yeah, absolutely. it will give that hope. it will give that sense ever excitement. apple is in a pattern of incrementalism. it is improving products and sending the stock up. this is buy and hole. once we start to see the products come out we have to rethink our position. david: that is great advice but let's talk about tim cook. i have got two more questions. one about cook which is he not, you think of the transformational leaders. obviously steve jobs. you think of people like

jack welch, henry ford, our leader rupert murdoch at twenty-first century fox, john malone. he is not that kind of a transformational leader, is he? >> no. i think that is why steve jobs hand-picked him to be where he is at. he needed someone to hold the ship together, steer the course to find out who that person will be. tim cook is operations guy. he knows it. apple knows it. it will take more than internal memos to inrig rate the staff. we need market invigoration. need leadership. david: i'm getting push here by the producers but final question, what should happel do with all of its money now? it has this huge stash of money. some talk about content. do more, buy sony pictures or something. is anything like that in the works? >> i haven't heard anything on that, i do love, i can't remember his maim the analyst suggest that apple do something crazy like buy tesla and get elon musk there they need to do something. they need to ttink different.

raise the pirate flag and need to start moving in a new direction, a bold direction. david: maybe hire you as ceo. brian soly. s. good to see you my friend. have a great weekend. thank you very much. liz: mexican fast-food giant taco bell trying to put a little physician into its menu in one of the biggest expansion of its offerings ever. what is it? we'll tell you in a minute. david: socialite and celebrity paris hilton turned her talents, quite a few business ventures, paris hilton, another story, wait until you hear. you have no idea what this woman has, what she is doing with her celebrity status. she is monetizing it like nobody in the world has ever done. details on that coming right up. ♪ [ me announcer ] this is the story

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liz: time for a quick speed read of some of the day's other headlines, five stories one minute. royal dutch ceo issuing a massive profit warning for the fourth quarter saying earnings will fall 48% compared to one year ago. he said the decline is due to mix of lower production, higher costs and a worst performance by its refining division. ibm planning to invest $1.2 billion to expand its global cloud footprint. they will deliver cloud services from 40 data centers in 15 countries. taco bell is announcing largest expansion ever of its beverage menu.

the mexican food giant rolling out six drinks including three carbonated and three non-carbonated beverages. sales reaching $1.4 billion but on the flip side, nintendo was hit by dismal sales of its wii-u gaming con sell as it struggles against the competition. slashing quarterly console gaming estimate by a third and only expecting to sell.8 million consoles. that is today's "speed read." david: treasurys i believe it or not are on track to beat stocks. first time since august after posting heard straight weeks of gains after housing declines since december. liz: will the bullish sentiments foretreasurys continue. sandra smith, everyone has some treasurys an some exposure in >> if you had a lot of in 2013 you were probably not too happy because you would have lost 8%

in 2013. all the stocks investors would have been yelling nana. dave and i were talking at the break, liz, the fact there was a strong month in 2013, that was august where treasurys outperformed. david: i was surprised to hear that i thought every month stocks outperformed. >> we're now on pace for the year but for the month on pace to see treasurys outperform stocks. that is has everybody looking at this. when we get bad economic news that is what leads to rally in treasurys an drop in yield. if you look at 10-year, there was at one just recent history we saw the yield on 10-year top 3%. we're a far cry from that. 10 year yield now at its lowest it has been in about a month. and this of course as we wait for the next fed meeting. what will they do next for the taper? what will be the pace of the taper. yield on 30-year, that has been coming down, the 30-year treasury on pace for third

straight weekly gain. there is quite a trend developing there. again a big change after we got that very weak employment report on friday. that is bringing a lot of attention back to the treasurys. also real quick, guys. i want to point out, jeffrey lacker, richmond fed president, he spoke earlier today. this is big one for the bond market watchers out there. a couple of comments from him. he has been a big fan of the fed taper but his tune sort of changing today. he is projecting 2% growth for the united states this year. that's lower than the consensus of an analysts and economists by the way. david: janet yellen by the way said it was more likely to be 3%. liz: bob doll said 3% in the last hour. >> so he is way below there. this is really modest projection from him. he said, quote, persistent cautiousness in household spending behavior is one of the reasons for his subdued outlook. david: he is a hawk on inflation. might he change his tune on tapering the taper?

>> that will definitely play a part in their decision, right? the fact he was speaking modestly what the economy will do rest of the year led everybody thinking and that led to another rally in the treasury market. liz: bill gross, the bond king at pimco, he has made a bet for treasurys. makes you wonder what didn't work last year will it work this year? >> for all the stock investors, history is always a good predictor what will happen in the future. we do typically see after huge up years for the stock market, a positive year for stocks. if we only get 6 to 8% rally in the stock market which a lot are predicting those are not great returns. people may be looking elsewhere like the bond market. david: simple straightforward question for former trader like sandra smith. >> what you got. david: would you put all your money in stocks or bond? where will the bet be bigger, stocks or bonds. >> based on history would be safe bet for stock market rally. bonds very unpredictable very

volatile. liz: exactly what bob doll said. david: bob doll, sandra smith you can't go wrong. sandy, thank you. >> never want to be all in one, david. david: of course not. which one, obviously 2013 was the year of stocks. maybe 2014 will be year bonds. who knows. liz: stay for this one. here's a question, what could be less appealing than airplane or hospital food. david: i love hospital food. >> oh god. liz: i don't hate airline food. celebrities likes derek jeter around jennifer garner are hoping to make both a lot better for you partnering with a health ceo-to be joining us straight ahead. david: you love airline food because it is always first class airline food. that is why you like airline food. retail stores, perfume, record deals, get this, paris hilton working as a dj. yes it is happening. wait until you hear how much money she is making.

you may laugh, but we're talking hundreds of thousands of dollars. david: she dated enough of them. welcome back. how is everytng?

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measures the glucose ii human tears. it's the laboratory that works on the moon shot project like the game-changing google glasses. that self-had driving car, and the google robots, which are incredible. one project in the work is a system of hot air balloons that would float in the stratosphere and provide internet service to the entire planet. but does google invest too much money in these pie in the sky prospect -- projects. google is a company that bets on the future company afford to bet on the future. the stock is up more than 55 percent over the past year. like the saying goes, "shoot for the moon land among the stars as long as you can afford the trip. you are eating! >> liz: which is good. yeah. i'm eating super healthy but super instant oatmeal with fruit. okay. from the big screen in hollywood to the playing field in new

york. derek jeter and jennifer garner come from two different world. they are teaming up to promote a new health food start-up. the products are available nationwide could shake up the industry by going where healthy foods don't normally go. we know they are on the shelfs of whole foods. are they in hospitals, stadiums, airports or on airplanes? let's bring in christine day. she's the ceo formerly of lou lou lemon. i have the oatmeal with a fruit. it's amazing. we have the bunch of the other stuff here. you partnered with super star. let's talk about the product itself. who are aiming for, if not your basic health food store? >> i think this is a way of actually bringing what is on whole foods aisles in to the main grocery stores. almost giving them their almost private label for healthy. it means it's more reachable and assessable by every consumer which is what our desire is. >> okay. you are partnering with derek

jeter and he's on the actual executive team map is his involvement, and i'm assuming he's passionate attendant and he's not there to slap his face on anything. >> i was eating brussels sprouts with him the other day. [laughter] it is really about how do we get great healthy food. he's a strategic adviser. this is about eating healthy from the beginning. it's not about fixing problems. it's about teaching people how to eat great food. what looks like great food. he's actually the adviser working with athletes, helping us to develop the menu items and the line targeting that specific group of athletes and bringing it to the stadium and really encouraging kids to eat healthy meals and introducing vegetables to him. liz: it is already entrenched. you costco, whole foods, we rolled a bunch of names that are your partners. the challenge might be to get where food isn't known to be that good.

i'm talking about hospitals, airplanes, where you're held hostage to cookies, peanuts, or pretzels. i mean, we also like delta. it's the free stuff. how is that going? what kind of partnerships are you making? what can people expect here? >> it is so phenomenal. we have a partnership with delta. they are fantastic. we are doing the snack package on the l.a. to san francisco run for awhile. they announced the other day they're taking us on the international flight, transcontinental. you'll be able to have healthy food options that are low sodium. when you travel a lot you eat a lot of sodium and get more bloated. you can have healthy food options. it's going go national and we'll be in first-class and on the buyable items for economy. everybody has access to healthy food. we'll be in the airport themselves. as you said, the most important things is hospital food. we're doing a pilot with the -- three hospitals right now.

and the cleveland clinic is one of them. we've had tremendous response to the food we've been bringing on their menus. they are so happy to see something that is low sodium, low sugar, high fiber, and nutrient dense which is what we preach people should be eating. we have all the locations where health is important. we are serving what say people should be eating. >> cleveland clinic is on board, we know it has to be good. you have the breakfast wrap, rice pilaf, steel cut oatmeal. you have experience in food and retail. people may know you from the workout gear. i love all their stuff. great job there. i need to ask you what you learned at starbucks. before that people don't know that you, of course, worked worked with howard schultz. what did you glean from him? what is the most important thing you have learned from him? he's a great leader that is helping you now? >> so much.

first, a great brand builds around what the consumer needs. it's the emotional energy and part of the magic at starbucks. one is personal station of the coffee. the second was the third place. there's an emotional connection, service, rate yule, and every day and the emotional energy of a brand. i think they have that opportunity to be a trusted food brand where you look at the label and know that you don't have to be a label detective. that this is going to be good for you because that is what the brand stands for. not only in the grocery store but in all the other venues. liz: everybody looks for it on an airport or in a hospital near you. come visit us in new york. we want to batch the company grow. >> thank you. christine day. david: she has great people working with her. are you looking for a better hedge fund return? perhaps you should try a fund

lead bay woman. we'll tell you why paris hilton is back in the spotlight and now taking on some of the biggest names in the music industry. she is not a lightweight, folks. wait until you hear about this. coming straight up. ♪ ♪ [ male announcer ] e new new york is open.

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we have breaking news for you. joseph a bank rejected the unsolicited offer to acquire the company at 57.507 a share. they say it's inadequate from a financial point of view and not the best interest for them. stockholders, men's warehouse say the intentions are unclear. it's commitment is not credible. dave? david: we can see what is happening. the stock going down after hours. we'll see what happeneds on monday. from reality tv shows to

retail, perfume. paris hilton, not just a dumb celebrity. she built a global empire and brand. liz: you're right. she has. she's taking it a step further and breaking to the dj business. okay. [laughter] can she take on some of the biggest names in the industry? joins us now the "the wall street journal" celebrity business reporter. smart businesswoman amounten a losing on the hilton name, if not tallnt. but dj? is she going to become a force here or an embarrassment? >> i don't think she'll be either. someone making a lot of money djing. she's $100,000 to $350 ,000 per appearance. somebody cashed on the idea that electronic dance music is the thing that all the rage now. it's the number one profit-generating part of the business. she's jumping on board with that. >> she's cashed in a lot of the things. the -- she has dozen of these retail

stores. i had no idea. one thing she's done, and it may seem like a little thing, it's important. the film and the jous that go after the celebrities. we see what happens when they go after alec baldwin. she uses them in a way that alec baldwin hasn't figured out. >> that's correct. she was the first break-out reality tv star. she was the person that realized the press are her friends. they take pictures of the celebrity and they put them on the internet. so all of the teen any boppers can see what they're wearing and keep them relevant. david: a good relationship with them. liz: it was stunning to really look through the list of thing she has done. perfumes, she's got more than a dozen of these fragrances. >> 16. liz: sixteen now. they are actually selling. we're running the cyber list. the record label deal, the

boutique stores. she's no dummy. >> since 2004 she generated in revenue $1 % -- $1.8 billion. the partnership enable celebrities to get about 3 to 5% of the licensing fee. she's probably closer to the 5% range so, you know, -- liz: it's not actually doing the hard work, would you say? >> well, she knows her place in the organization. so, for instance, the fragrance. a company that sells the perfume. they are legitimate company in florida with 400 employees and a ceo who is seasoned in the fragrances business. she's the face of that. she knows how to do the appearances and how to get people to come out. david: a side bar to your article, which i found fascinating. how much money djs can make. >> oh, man. >> $20, $40 million a year. how? >> they go the huge appearances. and a lot of them are also producers. so when you think about how that works, all of the royalties

function almost like an annuity. they are making money in the sleep. the number one form of music right now. they can go out to a big music festival where 100,000 kids will pay $300 a pop for a weekend and, hey, they're top billing. liz: david and i still love 8-track tapes. [laughter] david: i remember! >> it's the phenomena. electronic dance music. paris hilton is getting on board. liz: jumping on. thank you, lee hawkins of the "the wall street journal." going to be speaking with christopher ceo and president of hilton worldwide. the actual hotel. they had a fabulously successful ipo. chris will be joining davos. wednesday. david: president obama trying to put out the fire storm over the government's secret surveillance program in a major speech today. did he succeed? a lot of skeptics out there. did he sway them?

we'll go washington. liz: from terminator to governor. arnold knows how to make an impact. he's getting involved in a multibillion dollar event that could give him one of the biggest audiences ever. ♪ ♪ that's right, no hidd fees. it's just that i'm worried out, you know, "hidden things." ok, why's that? well uhhh... surprise!!! um... well, it's true. at ally there are no hidden fees. not one. that's nice. no hidden fees, no worries. ally bank. your money nds an ally.

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♪ ♪ "respect" that's what women on wall street should be getting. a new study released today finds the women hedge fund managers outperformed not just men but the s&p 500 as well as a broad index of hedge funds. over the six and a half years since june 30 -- broad index. yeah. june 30th, 2013, the average woman-owned or managed hedge fund returned 6% versus 4.2% the s&p 500. in the meantime, the hs rx global hedge fund index dropped 1% in the same period. not bad. one major reason women outperformed men is the way they approach risk.

women take fewer risks, they are less likely to be over confident. they trade less often which can add up to steadier returns. david: wow. i'm a believer. take my money, please. president obama making the most formal response to the outcry of a secret nsa surveillance program. the president proposing greater limit on accessing telephone data and privacy safe guards for foreigners. liz: rich joining us from the white house. >> reporter: mixed reviews in washington. you look what the president has proposed here. much is a process that will take place. take a look what the president proposed. the meta data. the bulk data tells you that called which numbers which numbers. to access the data government officials have to go through a court. also, dozen of foreign leaders are exempted from being spied upon. the administration refuses to stay who is exempted. the government must find new d.a. --

data storage locations. perhaps phone companies -- they don't want it. it will be part of the review process. it will take place over the next 60 days with the attorney general, the nsa, and congress. president obama acknowledging that reform in this area is difficult. david: those troubled by the existing programs are not interested in repeating the tragedy of 9/11, and those who defend the programs are not dismissive of civil club liberties. the challenge is getting details right. >> reporter: some applauded him for acknowledging the problem and willing to work with him to make a better system when it comes to privacy. he has the critics. this is from congressman just. who tried to unred light of the system saying, quote, congress must do what president will do not. end the unconstitutional

violation of americas' privacy. see how to plays out. david: rich in d.c. have a good weekend. thank you very much. did you ever imagine some of the most famous painting in the world would look like if they came to light. we'll tell you old art 21st century animation. liz: we asked you if tim cook is maybe holding apple back or doing a bangup great job. we have your answers next. ♪ ♪ [ male announcer ] this m has an accomplished

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liz: let's go "off the desk." there have been a lot of questions who will be appear in this year's super bowl cop meshals. we have some answer. they may surprise you. arnold schwarzenegger landed 3 million-dollar deal to be in a bud light ad despite his personal focus on fitness. david: italian filmmaker brought artists like michelangelo to live. created ripple effects on water, moving clouds and subtle flight of birds across the scene to give viewer idea what the painters themselves would have experienced. incredible. liz: what a sweet little baby. thinking of sweet babies you may remember the demonic baby that

roamed the streets of new york city? terrorizing the public? we showed it to you earlier this week. we could not believe our eyes. david: that is real baby. that is not a fake baby. liz: the baby made its way into the fox business studios. let me tell you, it was very shocking! david: what? liz: should be like -- [screaming] look at that. it smells really bad. got to pinch the face. david: stop it, liz. you will cut off the oxygen supply. liz: it has mucous plying out of its nose. this is part of a promotion by think moto. for the film devil's due. david: twentieth century fox production. so we have a little bit to do with it. this thing, everybody was stopping in the hallways. david: tim cook, is holing apple

back. what do guys on facebook say? put it up. i'm sorry. there we go. lack of new product innovation is tim cook's responsibility. that was the strength of steve jobs. don't forget it. liz: don't forget "forbes on fox" on fox news. melissa: it has been 2 1/2 whole weeks since the state of washington raised its minimum wage, already the governor wants to do it again. will the wage wars ever end? the mayor of sea-tac is here to fight for us. when we say it is not, it is always about money. >> minimum wage should be renamed starter wage because that's what it is. >> people should be paid appropriately for the kind of work they do and for the number of hours they work. >> people working with, they deserve a raise. >> i worked in fast-food. i worked in mcdonald's when i was 16. it was what it was. you don't generally have a