tv Markets Now FOX Business March 6, 2014 1:00pm-2:01pm EST
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and cheryl. cheryl: we will hear from president obama at any moment now. the topic will be ukraine. adam: we will bring that to you as soon as it starts. cheryl: hi, everyone. i am cheryl casone. adam: and i am adam shapiro. cheryl: the white house is reaching for the whiteout. major revisions and delays to the president signature healthcare law. weight -- weight wayne rogers on the expansion. adam: demanding answers about a dangerous admission problem. cheryl: finding the man behind the virtual currency. he is right here.
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in the united states. the bitcoins community is not happy about this one. adam: right now we have a news alert for you. diplomatic tension between the united states and russia is heating up. this happens as congress rushes to impose sanctions on russia. those soldiers still in place despite orders to lead. the heritage .h standing by.
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dennis: crimea is in the middle of the worst standup since the cold war. lawmakers took another aggressive step by declaring their intentions to slip to ukraine and joined russia. crimean lawmakers also voting to set up new ministries which will be independent of kiev. russian forces remained in control of crimea. ukrainian media also claimed that are men captured the operator of television transmitters and crimea. meanwhile, to the north, once again flying over government headquarters. management looking to remove demonstrators. more than 70 people in custody.
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maintaining the protest across the south and east of the country. they have been orchestrated by moscow. in the meantime, in brussels, some 28 eu leaders trying to decide what sort of sanctions they can impose on russia. there is a divide that is growing daily between countries close to russia's borders. most notably, germany. taking a dovish approach. angola merkel should be leaving the negotiations. regardless of who does the talking moscow has threatened to retaliate. cheryl, back to you. cheryl: ashley, thank you so much. let's bring in peter barnes from washington.
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what is the latest on the situation. what is happening there. >> we expect the president will talk about the sanctions that he announced this morning against russia and anyone involved in the military intervention in crimea. the president will also be speaking as the congress gets ready to take its first steps to try to punish russia for the invasion of crimea. the house is expected to vote in the next couple of hours. >> we remain committed to working with the administration to give president obama as many tools as needed. to put president putin in check.
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>> it is not clear when the senate will get to this legislation. working on its own version. we are waiting on what they will unveil. congress is considering additional legislation that would / russia of its additional sanctions. the president ordered the freezing of u.s. assets. they signed an executive order aimed at punishing those russians responsible for the move. the order was announced as the secretary of state -- >> the president is going to the podium. >> providing a brief update. since the russian intervention, we have been mobilizing the international community to condemn this violation of international law and to support the people and government of
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ukraine. this morning, i signed into executive order the sanctions. according to my guidance, the state department has also put in place restrictions of travel. these decisions continue our efforts to impose a tax on russia. and those responsible for the situation and crimea. they also give us the flexibility to adjust our response going forward. we took new steps in close coordination with our european allies. i am pleased that our international unity is on display at this important moment. already, we have moved together. today in brussels, our ally have been in close talks on russia.
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i am confident that we are moving forward together. united in our determination. and to support the government and people of ukraine. that includes standing up for the principle of state sovereignty. the proposed referendum would violate the ukrainian constitution and violate international law. any discussion about the future of ukraine must include legitimate government of ukraine. in 2014, well beyond the days where borders can be redrawn over the heads of democratic leaders. while we take the steps, i want to be clear that there is also a way to resolve this crisis that respects the interests of the russian federation as well as the ukrainian people. leading the monitors into all of ukraine. ensuring the rights of all ukrainians being respected.
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beginning consultations between the government of russia and ukraine. russia would maintain its rights and crimea. provided it abides by its agreement in respect to the property and integrity. they should support the people of ukraine as they move through elections in may. that is the path of the escalation. if this violation continues, it will be part of the united states and our allies. and while, we have taken steps to reaffirm our commitment.
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specifically to support the imf capacity to lend resources to ukraine. the united states is united with our allies. and pursuing a just outcome to global security and the futures that the ukrainian people deserve. that is what we will continue to do in the days to come. we hope we have seen a resolution. thank you very much. cheryl: we just listen to a brief statement from president obama.
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ukraine say that congress needs to support them. there will be consequences. president barack obama making a brief statement. the six the dow is where it was when the president started speaking. we want to bring in heritage foundations. thank you for joining us. does this sound like a strategy that the president is outlining? it would have been great to make that statement before the russians invaded. that would have been a good preemptive act.
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they are doing something reasonable after invading. the imf reform, saving the president mentioned, this is a package he has been trying out for a long time. this is an actual political opportunity. congress is very skeptical about it. those are two big black marks. cheryl: there will be consequences for russia. he also did make the request. it is not an unreasonable request for the russians. again, if you put a marker out before this would happen, you know, it may have been something. what i hear at this point is all
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they really want is a deal that they got in syria. if the president really was interested in resetting them, there is a couple of things that you can do. just because the country does not necessarily have a free trade agreement, that does not mean that we should not open up the exports to them. we should pull out of the new treaty. canceling the treaty -- adam: very quickly. investors seem to think that this is in the rearview mirror. what do you think happens tomorrow?
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>> i think that the investors are probably smart people here. i do not think that the russians are leaving. i think everyone is looking for a way out of it. that means it is not a short-term crisis. a big long-term problem. a real problem for moscow. cheryl: we appreciate your time. a lot more coming up in the next hour. adam: the volatility index has actually gone up. now we want to check for something else. pandora investors. playing the blues. they will no longer disclosed monthly user data.
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why facebook will be the first private company in the u.s. to pay for full-time police officers. adam: the latest delay in the convenient timing. ♪ [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪
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cme group: how the world advances. adam: we heard from president obama. now secretary of state speaking about ukraine. >> i am hopeful. we are supposed to also be joined by the prime minister. he is on his way back from brussels. >> continuing to deepen our economic security partnership. including our share and commitment to negotiating a transatlantic trade and partnership.
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we believe that such an agreement would be enormously helpful to all of our economies. good for europe. good for the united states. creating jobs. helping to create wealth. at this time, the global economy needs that partnership. president obama, as you know-- adam: secretary of state talking about the headlines. the health care battle raging on. the obama administration announces revisions. we want to go to rich absent in washington. he has the latest for us. rich: the president promised if you like your plan, you can keep it. the administration announces
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yesterday that they are allowing the plants to continue on. it is something that republicans say the administration has policies with. >> we are offering people choices. those choices are good choices. >> if they are good choices, why the change? >> administration claims that a small percentage of these folks are faced by this. by allowing the change in announcing this change, they are allowing the plan. they also announced that it will change the risk for the provisions. it takes money from a plan. it allows the government to pay for some of that.
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the administration has changed the map on that to make sure that it does not run at a deficit. insurance companies could get hit by this. they say that the change could result in higher premiums. back to you. cheryl: the health care battle. your freedom could be at risk. you say that because of all the changes for obama care, the country is in danger. >> you said openly i can do this with a pen and a phone. meaning he can write and executive orders. we essentially have slid -- the constitution is meaningless in this man's mind. he does not pay any attention to it. he has changed obamacare as a
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law. whether you agree with it or not, it is a law. he has changed it 38 times. you cannot just stage a law by fiat. oh, i do not like the law i will rewrite it. that is what he is doing. that you cannot do. that is against the constitution. they do not stand up to him or say anything about it. they finally go about it in order to do this. they are just as guilty. the congress says we do not know what this is. the intent of the law is xy or z. then the agency turns around and make their own rules and regulations. you have to comply with that. that is covered by man, not by law. adam: who picks up the pieces of all of this.
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>> i wish i knew. i think, ultimately -- ultimately, the congress should. when the constitution was written and they seem to know what they were doing and you have checks and balances between the executive branch, if you begin to tilt the path did you wipe out that, the people have no choice. ultimately, i think you are getting the streets if you really want to know. he bribed the private companies. a prime example. they say we will cure this. we will have to institute dodd-frank. that is 2200 pages in dodd-frank.
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you now have banks that control over 70% of the banking assets of the united states. cheryl: another segment. you have to come back. it is great to have the onset. wayne rogers. adam: bitcoins. the mysterious creator of bitcoins has been unpublished. the latest on the recall. why they didn't fix a problem back in 2004 when it was first noticed. be right back. ♪
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cheryl: general motors reportedly conducting an internal probe to get to the bottom of its ignition switch recall. this as federal fishes are investigating why it took so long for the auto maker to announce the issue. sandra smith with more on this head scratcher. sandra. >> unusual move. gm ceo, mary barra is personally
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directing recall of 1.7 million general motors cars with potentially fatal law in the ignition switches. one gm has known about since 2:00 but kept using until 2006. -- 2004. they're down this year but up 35% over the past year. general motors not blaming the old prebankruptcy organization general motors for recall. this is telling reporters. this is new leadership team. we're aiming to do things in the right way. gm knows of 31 crashes and 13 front seat deaths in cases where front airbags failed to deploy, possibly because of faulty ignition switches n a letter to employees this week bara, emphasized quote, we will hold ourselves accountable and improve our processes so our customers will in the experience this again. really taking ownership of this. national highway safety tract
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administration investigating whether the gm reported the problem soon enough. nhtsa requires automakers to notify within five days of identify a safety defect and can impose a fine up to $35 million, if it decides automaker took too long to reveal it. berra says shy heard about the problem two weeks ago and has been acting on it. >> thank you, sandra. >> other retail names feeling the pin of much. staples will close 225 stores in north america by 2015. staples says the move is part after cost reduction plan that will save the company $500 million. and the children's place, says it is closing 125 underperforming stores this year. that company's fourth quarter earnings dropped 18%. >> would you. wow. call in the cops. facebook's unprecedented move. why it will become the first private company in the u.s. to
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hire a police officer. >> the markets are holding nicely in the green on some better than expected weekly jobless claims. could it be a sign of more good things to come ahead of tomorrow's big jobs report? we're going to talk about that next. ♪ i ys say be thman with the plan but with less ergy, moodiness, i had to do something. i saw mdoctor. a blood test showed it was low testosterone, not age. we talked about axiron the onlynderarm low t treaent that can restore t vels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18
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cheryl: we're sitting 20 points or so off the session highs as initial jobless claims coming in today better than expected. adam will talk about that in a moment. one negative stock i'm watching here this, is energy play. because of ties to russia and ukraine we really want to keep an eye on this one. that is xom. right now the stock is to the negative. let's head to the floor of the new york stock exchange. nicole petallides, you're
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watching pandora, fascinating company and i love their service. >> we're looking at pandora today of the stock is to the downside. look how it is lower by almost 4% at the moment. there is good news and bad news. the good news they have more active listeners at the month ended february. that is up 11% year-over-year. the hours those listeners are listening also growing, up about nine%. that is all great news. however the out look is little weaker than expected. concerns about costs and royalty payments. another story about spotify, acquiring echo net. that will give them inside track what listeners may be looking for of the back to you. cheryl: nicole, thank you. adam: the s&p 500 hit another new intraday high as stocks rebound from yesterday's losses. economic data helped move markets higher today. brad macmillan, cio of commonwealth financial volatilie as violence in ukraine
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continues, plus we get the jobs numbers tomorrow. brad, which will drive markets more, the jobs number tomorrow or volatility overseas? >> i they're both pointing in the same direction, actually. i think the job number will come in lower than a lot of people are expecting. i would probably say around 125,000 and the market is price in a lot of positive expectations about the resolution of the ukraine situation which i think is probably going to be too optimistic. adam: in fact i think your quote on that is that the reaction yesterday, is the quote the reaction today, but probably more hopeful than rational. would that not apply to today's run-up on the dow? >> i think it will. there's a presumption out there that okay, this situation is over, the europe can now move on but if you look at the energy situation with europe, if you look at the confidence situation with europe, about the best case is that nothing bad happens. and that is what we're expecting in the market right now.
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if something bad does happen, if anything bad happens that could be a different story. adam: stalemate bad or does stalemate allow this thing to drag on until people are distracted by some other news event? russia keeps crimea, the world jumbles forward and markets continue to go up? >> i think stalemate is the best case and i think you outlined what could happen and i in fact i what i think putin is hoping for. what the u.s. is doing trying to avoid that happening some if the u.s. can indeed push things pretty much, any resolution they can come to, other than stalemate, is going to make things more uncertain. that could be bad. adam: let me wrap up with this much. russell 2000 is up year-to-date over 3%. seems like investors are counting on this market going higher, not lower. >> i think that is definitely the trend. i think retail investors are starting to move in with the expectation that we missed last year. we're not going to miss this year. that kind of self-fulfilling prophecy can work for a long
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time and i think that's what we're starting to see. adam: brad, we appreciate you being here. you're clearly more rational than perhaps hopeful in return to some issues but always good to talk to you. >> thank you very much. cheryl: all right. well, facebook is playing it safe. the social media giant hiring a full-time cop to protect its neighborhood. the company offered the city of menlo park, $200,000 to year to hire a commune safety police officer to monitor the area surrounding facebook's silicon valley capus. the move is a first for a private sector company. critics say it is not facebook's place to get involved in the publicly funded police force. what is he afraid of? menlo park. one the safest parts of northern california. adam: maybe something to be afraid of is puerto rican debt. cheryl: there you go. adam:, too good to refuse? charlie gasparino is here on wall street's response to next week's crucial puerto rican bonn offering. >> speaking of good profits, how about a 30% return on your
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investment just this year alone? year-to-date, we're in the pits of the cme. hog futures run wild. adam: we'll bring home the bacon. cheryl: yeah. ♪ up. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again.
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by nearly $10 trillion last year. according to the federal reserve the stock market boom and the recovery in home prices increased net worth of u.s. households by $9.8 trillion. that is a 14% increase from 2012. sabarra preparing to file for bankruptcy for the second time in two years. "wall street journal" said the privately held pizza chain is soliciting votes from private restructuring of it could file for chapter 11 protection this weekend. a ban against older samsung smartphones in u.s. california judge ruled apple did not rule its patent features were a significant driver of consumer demand. that is the latest from fox business, giving you the power to prosper much.
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cheryl: puerto rico has its fair share of financial problems but that isn't stopping people from trying to get a piece of their next bond offering. charlie gasparino is here with exclusive details. what do you know? >> take it from the source, these are underwriting sources so we can debate this all day but from what we understand this large puerto rican bond issue, this is the issue everybody is looking at in the municipal bond market because it is basically a lifeline because of the poor finance financial health of puerto rico. we understand the bond will come next week. what the underwriters are saying that the deal is oversubscribed. remember the underwriters paid to sell it are saying that. what is kind of interesting about this thing, there is enough demand according to the underwriters coupon the deal, that is the coupon that you get -- adam: every quarter. >> six months or every quarter, will be, price it from what i understand, below 10%. the yield on the bond, which is your overall return will probably be above 10%. that is what you got now. it is really fascinating.
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a lot of hedge funds are in this. some high net worth individuals. the lead underwriters, one of them is morgan stanley but the most extensive retail branch network in the country. so what is kind of interesting about this, i will tell you this for the small investor, you are betting that they are not going to go under, they're not going to default if you buy this thing. should point out in very low interest rate environments like what we had in 2006 and what we have right now, you do have bubbles that occur. in 2006, the bubble was people, investors looking for yield and return by buying mortgage-backed securities of the you know how that turned out. in this environment one of the things people might be buying because you get a 10%, triple tax-free yield on this thing, is munis pal bond from puerto rico. take it for what it's worth. people buy stuff like this when interest rates are low. that is why, keeping interest rates this low does have consequences. adam: what it is worth is junk
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according to moody's. they have already preliminarily rated it. these are geobonds. technically you buy this thing you're safe but here is the trouble -- >> not safe. buying full faith and credit of commonwealth of puerto rico. that is not -- adam: you should be the underwriter. here is the deal. they have them hiring subsidiary to restructure not this debt but come on, restructure 50 billion worth of other debt. there is no guarranty in this language that says, should you the holder of these new geobond you go you're coming to new york. you can't write away your sovereignty. >> from what understand the people buying this bond are smattering of high net worth individuals and hedge fund. they read the prospectus. the prospectus on this deal which has been leaked, out there somewhat, the preliminary prospectus, they haven't released many public details about this. it is still being presold.
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the preliminary offering document which is sort of the legal document of the deal, has a gazillion caveats, including port reek, there is no bankruptcy law for a state or commonwealth but you never what could happen. adam: there is no guaranty they would wind up in new york court. >> only thing i would say is this. you're thee redally being compensated based on the yield. when there is hedge fund in this, this could be a trading opportunity. what they're looking to do is buy it. adam: sell to some sucker down the road? my choice of word saying sucker. when the bond go up, okay? what this spin coming out of puerto rico will be, we got the bond deal done, we have a lifeline for at least another year and you know, then, what you'll see is the bond rally, right? and hedge funds will sell out. the problem is, if you're the average retail investor, do you want to get involved in this? here's why. because you're betting they will not go default. what is being sold by the underwriters is that, listen, this is not as bad as detroit.
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these props are not intractable. make a deal with it. i don't know if i believe that they have massive pension fund liabilities. they have a declining population. they have middle class fleeing. you have high crime. it sound like detroit to me. cheryl: that is my question though. is this as bad as painted out to be? the banks -- adam: it is worse as detroit. >> it noise the at acute level of detroit of the get do they have the will to do what needs to be done and i can't tell you that. adam: it has roughly 50 billion of worth of debt they could restructure. >> bigger economy. adam: members of the senate in puerto rico saying, time to default. time to restructure and -- >> will the federal government and the fed, another bet here is that it will get bailed out by -- adam: very risky bet. >> yeah. cheryl: going to puerto rico. >> do i get to cover this thing? cheryl: who is going? >> look at it this way from a pure newsstand point. we threw all all the caveats if
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you get involved in this deal hits next week. morgan stanley is one of the underwriters. barclays is one of the underwriters. you can probably buy it if you're a retail investor. hedge funds are in here because they see trading opportunity. coupon is below 10% which i don't think you can get compensated enough for. do what you want. buyer beware. adam: a bridge in brooklyn. charlie gasparino, thank you very much. going hog-wild, traders are saying record-setting pig prices. we head to the pits to see who is bringing home home the bacon. cheryl: you got to know to hold them or in this case know when to say when. the $5,000 hangover is coming up in your west coast minute. ♪
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in the new new york, we don't back down. we only know one direction: up so we're up early. up late. thinking up game-changing ideas, like this: dozens of tax free zones across new york state. move here. expand here. or start a new business here... and pay no taxes for 10 years. with new jobs, new opportunities and a new tax free plan. there's only one way for your business to go. up. find out if your business can qualify at start-upny.com
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cheryl: time for your west coast minute. los angeles billionaire elon musk is urging congress to do something about the government's uncompetitive missile launches. currently a joint venture between lockheed martin and boeing is the only launch providers which cost taxpayers $70 billion over next 16 years. musk says it is too much. his spacex is ready to compete for a piece of that contract. california business's mark johnson is suing a las vegas casino after getting drunk and losing $500,000 in just 44 hours. johnson claims he doesn't remember ever going to the casino floor to play poker and says the casino should return his money. nevada gaming regulations from catering to intoxicated customers, yet johnson managed to open four lines of credit as losses mounted. he has winses will testify he is
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absolutely sloshed. the qassin yo will not comment on the lawsuit. that is the west coast minute. >> i wish i had $500,000 just to lose. natural gas jumps after bigger than expected drawdown of supplies. fox business contributor phil flynn of price futures group in the pits of cme. they are well below the five-year average. what is going on? >> well below the five-year average and well below a year ago. it is incredible. there is cold weather and that is really taking supplies. we are up 11% from a week ago. big picture cost, republican pushing for fast tracking natural gas exports not only providing support for the market on shortened of curve but long end of the curve. we're seeing bids and offers firm up back down into the futures. adam: phil, traders are going hog-wild over pig prices, but if you love your morning bacon this is nothing to laugh about. >> nothing to laugh about at all. this porcine epidemic of diarrhea virus is lot more
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serious according to traders and people in the now than people realize. this may wind up 10 to 20% of new pig crop. that is not very good news talking about lettuce and tomato season being the strongest demand period. yesterday we saw record high on prices. today record volume and record open interest. there are more people speculating on the price of hogs right now and how bad this virus is. why is there so much interest in this story right now? let me tell you. because nobody really knows. the government didn't really keep track of how many pigs are lost. the whisper number is a lot bigger than people think. back to you. adam: we could see prices going up at the supermarket next three to four months, right, phil. >> absolutely prices will go up at the supermarket and we may get into a situation a year from now it will be very difficult to get your hands on supplies. adam: phil flynn, i want to say thank you but anyway. >> thank you. cheryl: i have a solution to this. i can fix it. here's the story.
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speaking of hogs, how would you like to wake up to the sweet smell of bacon? sound good, right? that dream is only an iphone app away. oscar meyer's wake up and smell the bacon app, combines with device that plugs into your smartphone and the app play as sound of sizzling bacon and releases smell of bacon. they are not for sale. they are offering a contest to win limited edition bacon-cent spraying alarms. adam: do they have a kosher version? cheryl: we do not eat meat and still enjoy meat, the smell of it anyway. adam: revealed. the man behind bitcoin. "newsweek" actually found him. cheryl: what the magazine found as it uncovered the mysterious and secretive man behind the cryptocurrency is fascinating. we'll be right back.
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cheryl: bitcoin unmasked. the man behind the virtual currency has been discovered. jo ling, tell us. >> he has been found according to "newsweek." he is an elusive 64-year-old japanese american engineer worth an estimated $400 million. he chooses to live his life in a modest california family home and reportedly created bitcoin back in 2008. now the discovery of bitcoin's inventor after apparent suicide of startup exchange ceo. the 28-year-old woman was found dead in her singapore apartment on february 28th. japanese government is setting regulations for bitcoin trading including transaction taxes. a week ago after the tokyo based mt. gox exchange filed for bankruptcy losing about half a billion dollars in bitcoins. look at this. transactions plummeted from 85,000 to two days ago, due to
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33,000 as of midday today. bitcoin is trading $660. cheryl: this is interesting, jo. what is the bitcoin say about the "newsweek" story and what they uncovered? >> some are excited about it. they now know this individual and others say look this community is part of value is anonymity and this takes away all that and some people are critical of the outing of this man. >> jo ling kent. thank you very much. fascinating story. in l.a. of all places. adam: in our own backyard. something much more reliable than bitcoin is melissa francis. melissa: that's right, i have charlie gasparino next to me. we're ready to go and we're all over the stories everybody is talking about right now. icahn versus ebay. watch today's "wall street throwdown." opening up nasdaq exports in the wake of ukraine. congressman bill johnson from the energy and commerce
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committee is here. l.a.'s band on this, industry could lose a billion bucks. we have one of the biggest e-cig executives in the country. even when they say it's not it is always about charlie gasparino -- i mean money. melissa: billionaire investor charles icahn turning up the heat today on the fight to split paypal from ebay. it is the latest round of icahn taking on ebay ceo john donahoe and marc andreessen among others but will uncle carl come out on top. here is the rumble, charlie gasparino's to lee munson. thanks for joining us. lee, i will let you go first. who do you like in this matchup? >> i don't like carl icahn in general. this guy is a pie rate and mercenary by any other name means the same. i
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