tv MONEY With Melissa Francis FOX Business February 17, 2014 2:00pm-3:01pm EST
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space. ashley: yeah. >> i think it will, you know, get really big and hopefully dog owners everywhere will be able to use this product. sandra: that's great. brooke and chris martin, thank you so much for bringing that story to us. >> thank you. ashley: congratulations. great stuff. adam shapiro is in for melissa francis today on "money." adam, what have you got going on today? >> we'll talk about all kinds of things. obviously uaw vote. we'll talk about where you should invest if you like the way teenagers spend money story get abercrombie & fitch, we've got latest fix. right now the competition is asleep. we're working harder than ever here on "money." we have you covered with the biggest stories that will shape your week it is your cash on the line because even when they say it's not it is always about honey.
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adam: the competition in new jersey is taking a map but money is on the move today. jo ling kent has details what you need to know is happening in markets overseas which were trading, jo? >> european markets closed. look at dow futures. they were closed up 2points this morning. s&p up two points and nasdaq up six points. nice green arrows across the board. in terms of data tomorrow and today nothing today. very little data tomorrow. we're waiting for fomc meeting minutes from ben bernanke's last meeting that comes out at 2:00 p.m. wednesday. looking at commodities right now, oil is trading up .62%. gold was trading at .79%. nice green arrows there. in europe look at markets. ftse was up but the cac and dax were actually down and hang seng was actually up 1%. so good news over in asia. adam, back to you. adam: jo, thank you very very m.
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let's talk about volkswagen and the employees who reject addition to organize at the german automakers plant in chatting into tennessee. that will have major impact on labor unions and their future. rich edson is live in chattanooga to bring us up to speed. rich, i can imagine some are calling this a big victory and others are calling it an important loss. >> absolute live of the fight will continue here, adam. the reason antiunion groups are claiming such victory on this was really the best opportunity for the uaw to organize workers here in the southeast for foreign auto plants. when you look at what the uaw had available to it, almost a partnership with volkswagen of the company agreed to expedited union election. they agreed to have uaw representatives to come and pitch employees directly. still 712-626 the workers here decided they do not want to join
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the auto workers. why that is? one worker says he is doing just fine without union representation. >> i great pay scale, which is more than what the uaw workers are making now and more time off, a car program, the benefit package is out of this world and we produce a quality, award-winning product. why would we need anybody to come in and talk for us? >> as part of this, adam the uaw agreed not to try to union eyes for one year the chattanooga plant. after they can can try to continue unionizing efforts. doesn't mean the uaw won't try to unionize plants around the southeast. they have been trying to unionize nissan plants and mercedes plants not with the same cooperation from volkswagen. it doesn't prohibit another union to organize the plant here in chattanooga, tennessee. as for now this is vick at this for antiunion group, 712-626. a week after it happened.
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both sides say they will continue efforts on one hand, unionize a number of plants down in the southeast. on the other hand to try to prevent it. back to you. adam: rich edson, it is important for the labor unions. for inmanufacturers setting up shop in the south. it started with honda years ago in ohio. that is another story, rich, thank you. what does this vote mean for unions going forward? let's bring in former national relations labor board peter someburg. sir what is the role of a labor union in this day and age? >> that's a question which i think the uaw did not answer. you know, my understanding from people on the ground is that the workers voted against the uaw, one, because of its history. the one common denominator among the detroit three when they declared bankruptcies was the uaw. in fact employees would say to one another, i vote for the uaw is like buying a ticket on the titanic. so the uaw really seems to me
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didn't make its case. i also think it is overplayed its hands. you know, it entered into a neutrality agreement with volkswagen but didn't tell the workers about the neutrality agreement. it promised the workers that it would get them a 40% pay increase but the neutrality agreement has language in it which says the uaw will work with volkswagen to contain costs. adam: let me ask you this question real quick. want to point out for the record, ford never declared bankruptcy. it was chrysler and general motors. >> that's correct. adam: ford did not declare bankruptcy but they lived with the previous contracts they entered into with the uaw. when senator bob corker what they wanted me to know, volkswagen, unsolicited, if the vote goes negative they will announce immediately they will build a second line, was he influencing the vote? the labor union is saying that, statement essentially said if you vote for the union, you don't get the second line at wv. if you vote against it they will announce it. now a two-week clock running to
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see if senator corker is right or wrong? >> i think that is difficult question to answer but the volkswagen was constantly telling the employees prior to the election that the decision as to the second or expanded production would be made without regard to how they voted in the election. immediately after senator corker made his remark, i think it was unfortunate but immediately afterward the president of vw once again he wanted to emphasize the decision would be made regardless how the workers voted, whether they voted for the union or voted against it. i don't think his statement would have impacted the vote. adam: could the senator's statement have any bearing if they try to bring this nlrb to bring revote before the one year period. >> i think the union could definitely try to do that. i don't know how the nlrb would decide the issue. it would be based on facts, based on the fact as i know
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them, both what vw was consistently representing to the workers. i don't think the board would be correct, if it were for example, set aside the results of election. >> finally 11.3% of the population is part of a labor union. a lot of that is the public sector. what is the future for the private labor number? is it essentially overin the united states? >> i don't believe so. i really do think the union movement, and unions play a very productive role in some segments of the economy. however the unions have to make a case. and from my perspective, instead of spending $400 million on politics and supporting social causes many of the workers don't support, they should be out there making their case, responding to the arguments that are made, and answering the question, whether they still have a role to play. adam: all right. peter schaumber, former nlrb chairman. we appreciate you joining us because this is lot of story people will be following. >> if flying isn't bad enough, a genuine shortage of pilots, is
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picks so the regional airlines are facing big financial problems thanks to pilot shortage brought by about low pay, incredibly low pay and increased government regulation. smaller carriers like skywest and republic airways have been forced to ground flights. long-time american airline partners american eagle could be reduced to carrying baggage and providing fuel for other regional airlines. we have the president of the largest pilot union in the country, airline pilots association. he joins us now. this is serious shortage. what will be done to fix it? >> well, adam, thanks for having me. we don't actually have a near term pilot shortage. we have pay commensurate with the experience, training and education that these pilots have. many of these pilots are flying
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overseas right now. they would love to be flying here but they're just not going to fly for$2,000 a year. adam: -- $22,000 a year. adam: nor should they with the level of experience. resulting the shortage in the united states. first year officer makes $224,400. first officer, 50,000 at major airlines. when we talk about the regionals, essentially the same company? republic and they are delta connection, united express, american eagle, those are the regionals are they not? >> what we're talking about is the same passengers, whether they're on united, they're on american or they're on delta, these are the same passengers. to be clearer, we don't have a pilot shortage. we have a market-based pay shortage right now. there are plenty of pilots, adam. they're just not paying them enough. adam: no shortage. i would use terms we all know, delta connect, united express, american eagle, could they make money sufficient to give niece 6
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these pilots an increase? if so, how much? i don't know any airline that hasn't been through bankruptcy at least three types in its life cycle. >> a few of them haven't but they can make money. but what they did, they underbid the contracts for this flying. and really they are a labor arbitrage model. all they do is provide labor for these carriers. they don't, a lot of them don't own their airplanes. they don't pay for their own fuel. and their main concern is, labor costs. they underbid their contracts. they need to go back to the main line carriers and tell them, we don't have enough pilots. we can't pay them enough. adam: when we set this segment up with you, talking about a change in regulation as well, used to be the pilots could begin flying first year, first officer with 250 hours a experience. now is it 1500 hours. isn't that correct? wasn't it lack of experience that led to the tragedy in
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buffalo? >> good point. those regulations were a partnership. they were developed through a partnership with the airline industry, government and airline pilots. we all agreed on them. they went into effect just recently but they have had a year to plan for this. some airlines, as you know, some airlines plan better than others. adam: why yes they do. let me wrap up with you. how, obviously the passengers who are ones going to pay. in fact we just booked tickets yesterday to fly on a regional version of one of the major carriers to a small city this summer. the price was outrageously high. i was shocked as years past it was much less. but pilots are not getting higher wages so how do you get the wages up and keep the airlines competitive? >> wealth bottom line is, the tickets are market-paced and the airlines are selling tickets, the passengers whether they're on the brand or regional connect, the passengers need to fly. the pilot wages alone are not what is causing this problem.
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what is causing this problem is the underbid of these contracts by a few of these regional carriers. they need to rebid them. adam: the underbidding, wouldn't that, essentially big pop airlines, delta, united, american, could they not use their influence to raise those wages at regional level? >> well the, folks that have the contract, they need to come back to them. again, some airlines have done a better job than others. adam: captain, thank you very much for joining us. >> thanks for having me. adam: legitimate marijuana businesses up to now had to deal in cash because they were not allowed to work with banks. the federal government is changing all that and we'll give you the latest who will cash in. it's smokin'. young people are feeling from traditional teen favorites like abercrombie & fitch. so which retail remembers getting their business now? [ male announcer ] there is no substitute for experience.
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adam: legitimate marijuana industry is taking a giant leap forward in the united states after banks in 20 states were given a green light to work with legitimate pot merchants. how will it really work? who stand to gain the most? we have the ceo and president of washington bankers association. elliot klug is the founder of ceo of pink house a marijuana dispensary in colorado. i want to start with you first. this has been an issue for several years. as washington state gets ready to begin the use of recreational marijuana, this has got to be a big relief to those who will be operating legitimately under state law, that the banks can now accept their cash or even use credit cards, correct? >> thanks, adam. thanks for having me.
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not necessarily correct. first of all i would just like to say, this is a new enterprise, a new business entering washington state and we feel that we really need to provide banking services to these folks. the guidelines at that came out last week don't necessarily, in my opinion protect the banks enough and give them enough assurance to bank this industry. because after all the end of the day the guidelines provide guidelines but federal law still remains illegal under federal law to provide banking services. so there is big disconnect. >> that disconnect impacted people who operate legitimate marijuana despen is aeries in state of colorado. elliot, let me ask you, you have had to keep huge amounts of cab on sidelines. you haven't been able to use credit card machines. has that changed since friday? are you in negotiations with banks in colorado to change the
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way you do business? >> adam, thank you for having me on. nothing changed instantly. as james said, there is not a magic watched here and i think banks are still digesting it. i did receive a phone call from the banker. but even the brief conversation about how it is still unfolding and they're still kind of, little bit of wait and see going on. adam: james the concern from the banks, right now under federal law if you take these monies you are essentially helping to launder ill-gotten gain and the federal government could move against your institution. >> that's correct. ion the guidelines, if the banks follow the guidelines to the t, it still does not guaranty protection for them or immunity from federal law. so we know that there is a solution out there. and like elliot said, it's, banks are digesting this now and determining whether they will consider banking the business or not. adam: james is anyone from the department of justice, including mr. holder, himself, reaching out to the banking industry
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saying how could we improve upon what was announced on friday? >> well i know that attorney general holder with the guidelines that came out they were involved with obviously setting those guidelines. i also know that attorney general holder is working, i believe, both with congressman denny heck from washington and congressman perlmutter from colorado to see if they put something together that will give banks the confidence that they can bank this business without, without criminal repercussions. adam: elliot, i would imagine that the unintended consequence of forcing a legitimate business within the state of colorado to have do most of its transactions in cash invites unsavory characters to take advantage of that. do you think doj appreciates the bizarre scenario they created? >> i kind of hope that is what drove the recent recommendation here. the department of justice doesn't want this cash floating around and that what helped us move forward a little bit?
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i haven't met any unsavory characters myself but there is definitely pressure carrying around a lot of cash. as more people watch the industry growing, the greater that pressure is. adam: all right. i want to thank both of you, james and elliot. thanks for joining us. i'm afraid we're out of time. certainly an issue that will be big in colorado and washington but as many other states try to legalize recreational marijuana use. money is flying around the world today starting in russia where the government is negotiating a bartering agreement with iran in exchange 500,000 barrels of oil. russia is considering building a second nuclear reactor at iran power plant and they may provide iran with trucks and railroad equipment and other goods. in tie land, rice farm remembers seizing government offices to ppotest late payments from last year's rice crops. they took over the prime
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minister's temporary office. saying they will stay put until they get their hard-earned cash. the country's finance minister estimate that is they owe farmers roughly $3.4 billion if outstanding pay. landing in hong kong where one company is seeing magical results. hong kong disneyland report as record profit last year driven by an increasing number of chinese tourists. the park is planning to expand adding a third hotel with 750 rooms. up next, chipolte is doing something right. fast-food lovers are giving up old favorites like the big mac and turning to a new favorite, jumbo burritos and mexican rise bowls. rise of the billion dollar storm. wild weather keeps on coming and the cost to the economy keeps on growing with each punch. ♪ we asked people a question, how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last.
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i was trying to,ike, pull it a little further. [ woman ] got me to 70 years old. i'm going have to rethink this thing. it's hard to imagin how much we'll need for a retirement that could last 3years or mor so maybe we need to apoach things dferently, if we want to be ready for a longer retirement. ♪ like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. oh, it's great. yeah.
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chip pot lay. surged more than 9% last year. mcdonald fell by more than 1% in the same time. so what are they doing right and why is mcdonald falling apart? brian, the capital adviser and ceo of "fox news" contributor. are here to herb it out. let's start with you. is mcdodges regetting the fact they sold it. didn't they spin it off? >> they made a lot of money. i don't think so. they have to focus on their business. i don't think they're going catch up to mcdonalds in sales and profits. for no other reason the mexican thing is not big abroad. they'll eventually get enough stores in america. what they're doing right, you know, they deliver what people want which is a high calorie meal under the guy -- the mcdonalds. in fact, you know, you go in there for lunch it's a 2,000 calorie trip. a big mac is 500 calories.
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it's more calories. >> the irony. >> the organic and this and farm-raised that. you think it is great. people want to buy a lot of calories in a healthy form. they deliver well and execute perfectly. >> is that what they doing well or it taste better? >> they lay the beat down. stemming from headquarter interviewed the chipolte one guy wins. the next guy next to you are winning too. there's a clear path to moving forward. >> arrested for -- over 100,000 year. you want the company to do well. secondarily, they're keeping the menu very, very simple. you get the line working very quickly in the stores. that's something mcdonald is not doing. it takes 200 stoke get through a drive through. >> let me ask you, let me start with calories. rice and beans they might have a high calorie count. isn't which poll they than the
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burger and free? >> it's debatable whether it is better for yo puppy say the same calorie count is healthier than but not the problem. having a 12,000 calorie lunch and think it is healthy because it is organic. >> you can't get out for less than $6 or $7. you get out for $1 and drinks. >> it's a relative. you have it off the better experience or better lower calorie count not as bad. by the end of the the products will be nongmo. they are leading in the fast food restaurant in that. i think what is going to be an important topic. not as organic but taking out organizisms many people are concerned about. >> question netically modified organize begannism. >> everything has been question netically modified. there there's no gmo crisis. it's an obesity crisis. it's not the organic they're eating too many calories and not exercises. they are delivering.
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they dough it in a tasty way. the average consumer thinks they have a healthy meal. mcdonalds once a month thing. t not healthy. they go for an upscale customer health conscious. at the end of the day it's not -- why do you think it won't spread outside the cigarettes i would think there's great potential in even china. >> the ones they have in the u.k. taco bell had problems. it's -- >> what do the english know about food. >> it's not a global -- it's american concept so far. maybe they'll pull it off. t early yet. they're in a big growth mode which is the stock has a high ratio. i don't know if other countries will embrace the tex-mex california thing. >> a back mack in france. >> give it to me. the famous movie. >> -- u.k. yes. they are not because the rent are high. the u.k. sales are short. they come out with new two concept. asian concept and pizza
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concept. so also i think they're acknowledging -- two new consent we ink bait and take it. thank you both very much. coming up the wild weather winter is packing a wallop. there's no end in sight. it's costing corporate america billions of dollar. don't move. at the end of the day, it's all about "money."
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a big take over in the health care industry star investment holding is vying health care social securities for a multiplan. run by former aig boss. fox business senior correspondent reports that financing for the purchase will include a massive debt deal likely exceed $1 billion. and working with bankers at jpmorgan to fix the exact size. and a new federal report found bridge port, connecticut has the highest rate. philadelphia second, milwaukee third. world's third largest economy expanded at 1% rate less than half of the forecast. that's the latest from the fox business network. ♪
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mother nature is making her mark and truly hitting hard on the economy. the wild winter has brought record amount of snow and ice to large part of the country. and the upper east side of new york where they're not plowing. it's caused the private and public sector billions of dollars. how bad could it get? what can corporate america do about it? maria from business weather intelligence firm has answers for us. thank you for joining us.
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we hear that retail suffered because the cold weather and people staying shut in. i thought it no longer relied on brick and mortar. why would the weather have an impact? >> it has a huge impact on consumers as well as retailers even though the growth is effectived by a lot of factors weather is a huge factor. we have see the -- the busier the weather will be by gdp by.3%. it will drag if by the amount so far. >> we're talking about 75,000 plus fights canceled by the airline since the beginning of the year. the most in recent history. that is going to have a negative impact on the economy. >> it has a very difficult year for airlines. that's for sure. there have been the most consolations of flights in about 25 years, and last week alone there were about 65,000 flights only on thursday. 14,000 total for the week.
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there have been a harsh week for the airline industry. >> wouldn't it be good news for hotels and restaurants around the airport? >> true. like everything else in life, adam, there's winners and losers. especially when it comes to the weather. for the winners we see it based on analysis that they demand services, restaurants around airports, and services like snowplow and tree cleaning up and -- are have been big winners during the season. at the same time, there are losers and those people will be those retailers that are based in malls as well as entertainment centers like sears and boll -- bowling am lees as well as other sit in restaurants that are not near airports. places people can't get they are snowed in. >> 57d for the regular service call. $152 an hour for the work.
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i'm saying. so i've heard. i want to ask you at the end of the day we have another storm about to hit. when do we get out. when do the economy get back on track. we have more snow here tomorrow. >> yeah. while the u.s. will see a warming trend during the week, yes, more storms will be coming up. now retailers are setting up for spring now. people will feel a little bit of a warmup and begin to go to retailers. the difficult thing tricky thing people will begin to get the bills, the heating bills and they will have to allocate resources to pay the bills instead of getting out there and making purchases. while this week is going to be warmer than normal. we expect colder temperatures to return next week. >> all right. well, we have our fingers crossed. i think the song when i was a kid, -- let's go to the beach. thank you very much. we can't get away from the cold. municipalities big are small
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are blowing the budget for snow removal. for a lot more jeff is looking for answers in long growth, illinois. >> reporter: perfect day for it. take a look what it looks like on the streets of long grove, illinois. as we speak. almost white-out conditions right now. this is a community now considering privatizing itself roads and streets because it doesn't have enough money to pay for the upkeep and stuff like the snowplowing. i've been driven around the village of long grove today by angie underwood, the village president. you've got a strong libertarian history in this town. no property tax, you know, you don't like tax people. you have made reputation on that. but some point you've got to. >> right. that's correct. we don't have a lot property tax here we've had policy of minimal
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government here in long grove. we've kind of minimal services in the village and, you know, we don't impose a property tax to pay for it. >> you said you are willing if people will not agree to a tax increase to take care of the roads, you're going potentially abandon the roads and say, listen, guys you want them plowed and fixed. do-it-yourself. >> we're hoping we don't have to abandon the roads. what we would like to do is get public -- the homeowners on the residential streets to pay for their own residential roads if they drive on. we have a referendum for the public therapy fair but for the private roads, because the majority of communities are already paying for the own roads privately. we're hoping the subdivisions that don't have it set up. we're going work to get the situation in place. >> i know we have the municipal bond fund. one estimate is $17 3 billion come out of it because of towns that, you know, people are afraid they just can't pay their bills. you technically cannot be run a
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deficit a budget deficit here. you have no ability to tax. >> right. that's correct. we're called nonhome rule. our village board does not have the authority to impose a tax unless we ask the voters for the permission to do that. >> the problem is there this is where rubber met road in term of fixing a road. >> that's right. yeah. >> thank you for the tour on a beautiful day. [laughter] i swear, adam, if we get one more inch of snowfall, i think we have about six coming today, i don't know what i'm going to do. but -- >> private station effort i remember when i lived in indianapolis steven was the mayor. he was big time on private station. at the end of the day if you're not going to do the stuff why not be a city or villages if you're not providing the services that keep people unified. >> a contract with people. >> absolutely. >> jeff -- thank you very much. >> and the contract but, you know, this was at way it was
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done back in the day. >> thank you. >> we all died at 42 back in the day -- that was another story. count down to the closing bell is coming up. and cheryl has a preview of what is in store. >> we are going to be talking all about bitcoin. bitcoin losing half the value yesterday on the japanese exchange. you probably heard about this the world's third largest does it prove once and for all that bitcoin is too volatile and unregulated? we have a guest coming up joining me from boston university. here is what he says. he says, quote, this is the threat to global commerce. he said, look, you do not want to trust something like bitcoin. the constitution was based on searchty. what drives nations around the world and currently around the world. that's a safety that we should have in a bitcoin is definitely nothing but safety. and also we may have heard about this. but the founder of -- well, you know, arrested for things he was doing somewhat
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illegally, obviously. it got hacked hit the accounts cleaned out completely millions of dollars worth of bitcoin. you want to put dollars in to bitcoins. that's the debate that is coming up. on "count down to the closing bell." >> i'm glad you're doing it. there were a ton stories in different news outlet about ponzi scheme and bitcoin. it will be good to get through the clutter and the reality of the threat or the investment opportunity. it's good you're going. thank you. >> you bet. up next before you head out on the family road trip. you may want to consider trading in the minivan. scabby do would never allow it. they didn't have a minivan. you can never have too much money or too many cars. i'm all for that. never have too many cars.
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♪ let's have fun with spare change. move over minivan. the family sedan is moving full ahead. kelly blue book unveiled the list of cars. jack joins u from los angeles from best in class. who is number one? >> well, we don't have a number one. we have 12 really great ones. i guess if i had to name a number one is go to that minivan of minivans the honda odyssey. >> okay. when you get to old fashioned cars. the chevrolet impala? >> chef lat impala is toward the top of the list. it's the last vest age of the full-sized sedan on the family cars. we think it does a good job. we tested other ones. there are a few other full size cars available. we tested them and thought the impala was the best.
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>> years and years ago i had a knee is a altima. it's on the list. it's not full size. >> it is not. it is close to the size of the max ma. if you remember the max ma it was essentially the full-sized nissan, and interior space. the altima is right there right now. >> what about the honda accord. i remember when honda anybody who was allegedly hip had a honda. that was back in the '80s. not many people are hip. but they are still on the list. >> absolutely on the list. and the honda ascored a great family sedan. you know, a great safety car. a great economy, and of course, the longevity you expect from honda. >> i have to ask you, i think the vehicle is a ford flex is@ that that kind of retro station wagon. theyydon't like you to call it that. it's cool.
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you either like it a lot or don't at all. >> i know -- well, you can say that about the fond memory aztec. ford flex i have a hunch 20 years from now the california surfer dudes will be riding out in macked up ford flex. i think it's pretty cool. >> if they can put some, you know, wood appliquè on the side they would -- >> let me ask you quick why is jaguar no the on the list. i love jaguar. >> it's a really accommodate. we decided not to test any luxury brand vehicles. we a big enough field as it was. we tested 21 cars in putting this together. these were the cream of the cream of the various segments that family cars. >> and just one last one here. toyota traditional style-minivan. is the minnie van dominance of soccer moms nationwide over? >> i think it is over but i
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think there's a strong market for them. what you have seen is cross over three rows like the chevy traverse, for example. they don't look like a minivan. they often act like a minivan. the i they have the same carrying capacity. >> kelly blue book. do you see any trends. it's a big issue on the east coast especially the city. the teen don't seem hot about getting the driver's license. >> we talk about that. it'' a big issue. and it is interesting part stems from the fact that, you know, from the beginning kids are taught that, you know, cars are polluters. they are bad. i think that is part of it. then there's other things they're interested in. a 17-year-old, 15-year-old, and 12-year-old. i'm in the middle of that. my 17-year-old drives but i'm not sure the others are about it. >> life is about cars and cars are about life. the younger generation needs to wake up. >> absolutely.
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hundreds of customers after it botched delivery flowers and chocolate on valentine's day. they are telling fox business the estimated value of the losses should be 10% or loss of total revenue. the stock is down 1.2%. bundle of money today. the all-star pitcher signing a $42 million contract with the atlanta braves. includes the club option for a fifth year with that plus bonuses. the 25-year-old could make as much as 58d million over the next five years. first facebook. now -- we're talking about teens and their hassive spending power. ditching one cool brand for newer and cooler. marketing expert bruce said he knows with the kids are headed and who is ringing up the sales. our mothers used to play volleyball years ago. i don't think they were wearing
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this brand. >> it's good to see you from south florida. >> okay. if ittisn't it's important to know that kids don't think about public companies. in fact the only public company they don't like is being in the public company of their parent. the easy way to tell what kids are interested in is look at who allows them to feel like individuals. teens want to be individuals just like everybody else. so the number one company five years in if a row said it is nike. why? nike allows them to economize. present the image of themselves they want to present. >> how can they be individualistic if everyone else buys nike. >> that's the way it work. if you change the color, nike, converse and draw them. you create individuality within a safe barrier and border. it's the emotional connection
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that teens are looking for. >> by the way. >> by the way, before anybody says they're kids what difference does it make. last year kids spent $20 9 billion. >> you beat me to the punch inspect is my question to you. we although a can -- over the teen dollar and spending. there is 75 billion baby boomers that control the money. i imagine they spend more. am i wrong? >> you are right. they control 80 percent of the wealth in the country. and the parent unfortunately passing away. we're about to have the largest transforms of wealth in the history of the world. marketers continue to believe act on the belief that people establish brand loyalty and brand relationship in their teen and early adult years. that's what all the marketing money. >> is it true? i can think of some of my
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habit. i'm -- i've ditched a brand quickly and i would be -- i'm not a baby boomer but close. >> yeah. it's not true anymore. but the media the media sales reps the people who out there selling the ads that's what they have been doing for all the years. they're willing to change. what you're seeing is the internet is allow people to change the brand loyalty quickly. they use the name to find the product. they dover whatever is out there and interested in. >> in ten seconds who is going to win teens in the next year. nike and who else? >> nike. forever 21, and coach those are the two big ones. i think they're going to get stronger and stronger. >> we don't have time. i want to ask if coach is going to win teens and teens on the of it show that makes you go oh my god. have you seen in oh my lord. anyway, bruce, great to see you. countdown to the closing bell starts right now.
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