>> loving the automobiles. >> another lane closures speaking of cars for new jersey governor chris christie but this time it is tesla. i am adam shapiro. gerri: cheryl casone. the automaker no longer able to sell its cars in new jersey under the ban on sales to consumers. we will hear from the man who led the charge to stop tesla. adam: jim apples and on why he says tesla should never have been allowed to sell cars in new jersey plus the analyst take on tesla stock, and calling rush on why he says by now. cheryl: eliminating fannie and freddie, shares of the mortgage buyers in free-fall, charlie gasparino will talk to dick bove as congress and the white house move to reform the u.s. mortgage market. adam: many falling from the sky in the form of an asteroid. we will introduce you to the man behind a plan to mine asteroids for astronomical profit. planetary resources co-founder

eric anderson on his company's efforts and big money backers. eric schmidt and richard branson. if you are looking to buy it has lockhart in new jersey you need to do it by april 1st, tesla announced it will leave the state by the end of the month after it lost a battle to keep its direct sales model live in the garden state. new jersey is the third sta ban tesla from selling cars to consumers directly and not through a franchise dealer should. our next guest led the charge in his own state, jim apples and is from the automotive retailer federation. he joins us. why would you say this is a win for consumers. sounds to me like it is not a win for consumers. >> let me start by saying i admire the tesla product, it is innovative but the tesla operation is what most analysts think is an unwise, and the new jersey unlawful distribution method. adam: no one disagrees the law

is specific in new jersey but why is that good in new jersey? >>, not like cellphones and tesla is trying to make a direct factory sales model the cellphones industry has tested and cars are not cellphones. there are serious public interest and consumer safety issues associated with the car. let me give you one example. when you sell a car through a factory control store there is no price competition. in the state of new jersey we have 5 under dealers to compete for customers, business on price and service. tesla factory store model crushes price competition and far more important than that is it limits consumer access to warranty and safety recalls. adam: make the argument why this is good for consumers litchi of state price competition, any division plays games and the consumer doesn't know about their contract with the car

manufacturers, some people go to the manufacturers, suggested retail price, as for the invoice price and go up, not down, vacuums' ended. that is what happens in the current model and as far as warranties, tesla cannot avoid a warranty on its automobiles. >> as far as the price competition, tesla is a vertically integrated monopoly. manufacturer doesn't eliminate the cost of retailing that car, they have the same cost in retailing that car that an auto retailer would have but they control the price from start to finish. bad for consumers and ultimately going to disable tes what as a newcomer in the market. the more important piece is access to customer service. think about it this way. when a new car dealer sees the consumer come through the door with a warrant your safety recall claim they see an opportunity to help a customer and make a buck because the manufacturer has to pay the dealer to fix their mistakes but

the manufacturer sees a warrant your safety recall, service issue come through the door they see a headache. adam: general motors, chrysler and ford. you are saying they don't service -- gm did similar version with franchises. >> if you doubt for a moment that an auto manufacturer will do whatever is they can to limit access to consumer claims all you have to do is look at what is going on with gm today, 13 people had died before general motors stood up and took responsibility and how did they know about that problem? new car dealers, independent business owners face-to-face with customers in the shop hearing the complaints about these problems reported them. a closed environment. they would know about it and effected criminally they would be held accountable. if anyone ever discovered it -- and there was one article that said one of the reasons this

happened is the car packed actually donated almost $700,000 to new jersey politicians and tesla donated nothing and that is why this happened. >> the new jersey new car business is a $29 billion a year business. they pay 1 million, $1 billion in sales taxes, 35,000 employees. i they politically active? you bet. is tesla the reason why? absolutely not. tesla as a 0.1% market share in new jersey a law is not put in place to regulate tesla. it was put in place to regulate the 99% of the other players in the marketplace do need to be regulated to protect public interests in price competition and access to warranty and safety recall service. adam: i would buy a car from

you. cheryl: the impact on new jersey, a research analyst coming up later in the show. these markets, the chinese economy is weighing on the major average. sandra smith joins us in studio with more. sandra: amazing how key what is happening in china is for u.s. equity markets. concerns in china weighing on the asian markets and overnight trading at ripple affect on european markets as well. china central bank preparing to cut the percentage of cash that banks have to keep on hand if the country's economic growth falls below their threshold of 7.5% set by the government, a move that would cause of flood of cash to be let into the system in the form of stimulus because the economy would be slowing down so much they stand ready to do this and that would

be a good thing economically at least in the short term for china, that was seen as oh my god is falling down so much they are talking about doing this which is why we're seeing investors across the globe, tokyo markets, hang seng and hong kong, tokyo, look at this sell-off in their trading session, 2 bling 6% drop, the hang seng, over in china at drop of 2%. australian market's down and the ripple effect we were talking about, we saw trading in germany, each of the major averages in europe falling 1% so the sell-off then continues at home. not a big one but still what is happening waiting on us here. adam: chinese concerns weighing on copper, fox business contributor phil flynn from price futures group in the pits of the cme and barkley says this is a bottom in the second quarter we see an uptick in demand. do you believe it? >> wishful thinking because we

don't know how bad things are in july. this isn't just about the supply and demand for copper. that is a big part of it but it is the way they structure financing with team china. a lot of these big deals in these factories were back with raw materials but this amount of money, a bunch of copper in the warehouse to back up so with the deal does that we will sell you the copper believe these guys don't want the copper they want the cash so there is fear that he will see leveraging of copper, supplies that are not needed because demand is weakening coming gone to the market and that is why we are down. we saw limited moves overseas know we are stabilizing in the u.s. but after getting hit so hard, not that much of the every down. copper is up but it is hanging by a threat right now. cheryl: we will have to ask about that. adam: it will be a big issue

with china slowing down. cheryl: the disappearing flight, four days lost and not a single piece of wreckage or debris from malaysia. we have the latest in to the investigation coming up next. adam: a vast expansion of government power over what businesses pay, the president demanded salary increase using executive power, not congress. cheryl: ukraine's prime minister is in washington. his plea to president obama as russia french and u.s. financial aid is illegal. you are watching markets now. be right back. so ally bank really has no hidden fees on savings accounts? that's right, no hidd fees. it's just that i'm worried about, you know, "hidden things." ok, why's that? well uhhh...

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adam: malaysian officials extending the search area for missing flight number 370, military radar records show a plot of what might be the plane turning back, crossing the but the country and flying to the strait of latka. 40 ships and 39 aircraft from ten nations scourings 3500 miles of sea, authorities have not ruled out anything including mechanical failure, pilot error, 7 for even terrorism. malaysia airlines flight 370 took off for beijing early

saturday and fell off surveillance radar screens at one:30 a.m.. cheryl: won international store to another the turmoil in eastern europe continues. we are awaiting a meeting between ukraine's interim prime minister and president obama at the white house. that meeting is scheduled for later today. this is a show of solidarity between the administration and ukraine's new government as president obama's security team debate how to punish russia for its occupation of the battered nations. let's bring in the secretary of defense, a senior fellow for national security affairs at heritage peter brooks. thank you for being here today. it seems to me the president doesn't have much leverage. there's not much more he can do. president vladimir putin made it clear he doesn't have a lot of respect for president obama. what happened to change the course of history? >> not sure considering the russia relationship.

the obama administration talked about resetting the relationship, secretary of state hillary clinton with a big red button and russian foreign minister sergei lavrov hussain reset but was translated as overcharge. it has gone from reset to regret. these things have been problematic to find the funding of this administration for moscow. this meeting and showing of solidarity with the ukrainian prime minister is to give vladimir putin one last chance over the next couple days to stop this referendum that will happen sunday that might lead to the independence from ukraine and eventually annexation by russia. cheryl: john kerry is going back to europe with russian officials, a tour of europe for

the secretary of state but something i found interesting in an op-ed you said there is no doubt russian president vladimir putin long ago sidestepped president obama including his world view and made his assessment. you said the assessment is what? >> weakness. i had this on foxnews.com and its sounds like my column. he saw weakness. remembers the president under the new strategic arms reduction treaty, willingness to dismantle the george bush administration era missile defense in poland and the czech republic, the decision to -- he leaned over to then-president dmitriy medvedev and set after the election i will be able to do more on missile defense. they see us as week. vladimir putin is an astute observer of character and he feels he can push this president around which i think has led to the crisis we are seeing. cheryl: the g-7 coming up with a statement in britain, japan and

canada saying any referendum will be deemed illegal, then what? are we going to get u.s. troops on the ground in crimea? exactly what is the plan? >> they are appealing to international law and the problem is that allows many times to make sense but is not enforceable unless someone is willing to do something about it. the stuff they're talking about comes out of the un charter or customary international law so unless someone does something harsh it doesn't mean anything. i expect there will be sanctions that will happen if the referendum goes through. i don't think we will see american troops on the ground. hopefully what they are trying to do, the diplomacy by john kerry, the threats of sanctions, these sort of statements meeting with the ukrainian prime minister, trying to dissuade vladimir putin from allowing us to go through sunday but i don't think that will happen. he is using his own set of

arguments. cheryl: some supporting ukraine overall to go back to mother russia. it is great to have you. >> president obama went to the gap store to pick up a few things and speak about the benefits of increasing overtime pay. the president plans to use executive authority to change the nation's overtime rules and white house hopes and gain middle-class votes. this complete to lower salaries, even job cuts. cheryl: are those going to fit? the latest obama care enrollment numbers not looking good. the president's appeal to young people, health and human services secretary kathleen sebelius, 7 million. adam: the job fair recruiting for colorado's booming pot industry? [ male announr ] how can power consumption in china,

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[ female announcer ] the x1 entertainment operating system, only from xfinity. tv and internet together like never before. cheryl: three down days in a row. at the stock exchange nicole petallides, to make a deal in the energy space. >> this is a big deal in the

energy space. this creates the largest public land gas producer with these companies combined. let's take a look here at energy and its rival, like $1.3 billion deal, the deal is worth 2.3 including the debt for $39 a share. a 34% premium. this is the acquirer, 6.7% to the downside. oil and gas are up almost 30% on this news. this is that a 30% premium so it is not jumping on this news. back to you. cheryl: some breaking news, just getting word shares of herbal life have been halted, that is all the information we have, taking a look at the stock and shares of herbal life have been halted. looks like it is news pending. the last trade off with $60.30 one cents, and gain a 34% the

shares of herbal life have been halted. that is all the news we have, news pending. a lot of back-and-forth, and doing a lot of reporting on bill ackman and others. >> so many issues charlie talked about, potential to take the company private or wanting to do that but so many things to talk about. cheryl: herbal life as well and several lawsuits in california giving the company upon the scheme, so herbal life is a supplement company by the way. herbal supplements and health-care supplements and vitamins but this is a company that has become a huge insider fight between somebody like bill ackman, the future of the company, people shorting the stock or long on the stock. >> $1 billion on the table and the article in the new york times, lobbying heavily to get regulators and politicians on his side to do something with

this company. cheryl: we will keep you up-to-date better blight shares halted. last traded $68.31. adam: via the rich choose obamacare. kathleen sebelius faces some tough questions from congress. this as the latest obamacare numbers show enrollment missing from mark of the administration's original signable. ashley webster live on capitol hill with more. ashley: kathleen sebelius not used to those tough questions on capitol hill, the house ways and means committee's turn to question her on a variety of issues you mentioned enrollment, let's look at the latest enrollment numbers put out by the administration, people signing up for the new health-care plan, february, 943,000, down from january's 1.1 million, down from december at 1.8 million. in total, 4.2 million people have signed on for the new health care coverage. the administration had set a goal of 7 million by the end of

this month. doesn't appear likely although kathleen sebelius appears to be reluctant to talk about that exact gold. >> based on your own standards obamacare will not be successful at the end of march, 2014. what do you now call success? >> success looks like millions of people with affordable health coverage which we will have by the end of march. >> you are changing your standard of 7 million by the end of march. >> success look like millions of people -- ashley: doesn't want to be tied down by that 7 million number. the ballooning cost of this health-care program is going to be over $1 trillion health and human services department is asking for. obamacare a big part of that, she has to face tough questions to go ahead and make her case for this growing cost for the health care program. adam: thank you.

cheryl: another historic event in the evolution of colorado legalizing marijuana for recreational use. a job fair for the burgeoning pot business. it will help tomorrow to match job-seekers with denver area canada's employers which managers, retail clerks and accounting jobs all going to be available. happy hunting in colorado's. adam: general motors will shell out cash for drivers who own its recalled vehicles as the justice department begins a criminal investigation. cheryl: a different automaker facing an uphill climb, a tesla locked out of new jersey but investors not flinching today. an analyst says tesla is in good shape and the stock is up nicely, up 5% over the past week. we will be right back.

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spiriva helps me breathe better. does breathing with copd weigh you down? don't wait to ask your doctor about spiriva. adam: take a look at gm's stock.

the automaker is offering a $500 cash allowance for owners affected by ignition switch recall. jeff flock joins us with more on this, jeff? >> developments on this every day, adam. it kind of gets worse and worse by the day for gm. let's go quickly to this news. gm reaching out to the owners, 1.6 million recalled vehicles. look at the statement from gm here is what they had to say about it. keeping our commitment to help customers involved in the recall we'll give a $500 a cash allowance to purchase or lease a new gm vehicle. we have been very clear in our message to dealers this, is allowance not a sales tool. our liz macdonald called, this cash for flunkers. i don't know if $500 makes a whole lot of difference. we're talking about at love vehicles being recalled. look at vehicles. none of them are made by the gm anymore. chevy pontiacs, saturns, chevy

hhr. saturn and solstice same car with different badges. look at numbers on this. gm by its own admission says, 1.6 million vehicles in the u.s. and mexico. 33 crashes. 13 deaths and some questions emerging whether gm has full protection from chapter 11. they have said that if something happened in the past, that is the old gm. you go to the old gm for money, not the new gm. bankruptcy attorneys talking to us said this was a special government-managed bankruptcy. that could change the landscape and also, if the bankruptcy court did not know about this problem, it could be is called a fraudulent conveyance according to bankruptcy attorneys which also, jeopardized their protection by bankruptcy law. so, a lot to digest there. we'll stay on it, adam. adam: jeff flock. thank you. cheryl: we're getting more breaking news. go ahead down to the floor of the new york stock exchange.

nicole petallides. now we're seeing nu skin, nu skin, nicole, a company obviously in the same space as herbalife. we're getting headlines crossings on nu skin. >> well the fact that both of these companies here were moving to new highs. both were on very high volume. nu skin enterprises is now halted. you can see a little bit of a drop-off right best halt. we were watching new skin now. it is halted in the same sort of business, when you think of health, wellness, and products that go along with it with it. herbalife, yesterday, bill ackman of pershing who is shorting and vocal was talking about the fact that herbalife was breaking chinese laws, direct sale laws. we're watching herbalife as well. herbalife was up almost 4 1/2%. heavy volume there on that one as well. herbalife is up about 60% in last 52 weeks. contrary to his bet. don't forget he has been short this one. there is news pending and been

out there trying to make his case known why he believes that herbalife really is a short. both of these stocks are halted. there are big crowds around the trading posts there. so we'll continue to keep you posted. we'll go right back to the post, get in the crowd there, see if they're hearing anything. but meantime we know that herbalife has been under scrutiny and, breaking chinese laws, that is not good news. you don't want to hear more about that. that is what at least bill ackman is claiming. >> we're getting more information. i want to bring this to you. i want you to take that to the traders if you don't mind. charlie gasparino, senior business correspondent, is saying that ftc, federal trade commission, hit herbalife with civil investigative demand. official investigation has begun, a civil investigation, this is what charlie is telling us. he is reporting this and tweeting it. he will be on the show in a few moments. charlie is saying that ftc hit herbalife with civil investigation. whether that is related to what nicole is talking about. that is bill ackman's

allegations about herbalife's business in china can't sea. we're hearing from charlie gasparino's, his sources, nicole petallides looking to her contacts on the floor. we're watching what is happening in new jersey and frankly the saga of tesla. new jersey now following in the footsteps of texas, colorado, virginia, arizona and passing regulation that is limit or ban tesla's direct sales model. investors don't seem to be deterred. this stock up over 4% in trading today. it has been on a tear for the last year. my next guest says it will continue to be full speed ahead for this company. north land securities senior research analyst is here. this situation with new jersey. does this deter you or change your mind in any way about tesla? that this could become more than new jersey but more states across the country? >> it is possible we see this issue cropping up in other states. i think it will be an on going issue for company in terms of this model. this is very entrenched industry with the dealer model that will

defend its territory vigorously as we've seen in numerous states. that said, i don't think that is the core of the investment thesis here. we see technology company innovating, disrupting industry that will see push back. this is part of the teething process. cheryl: this is a lot of pushback. adam was talking to someone earlier today for new jersey he was one who fought to have tesla sales ban in new jersey, this is car dealers association. these are very powerful organizations not just in new jersey but across the country. if you have dealership groups come in across the company, wait a minute, you need a dealership set up and you can't do direct sales. that is problem for tesla. >> it is. ultimately that comes down to what is best for consumers. we've seen over the course of time business models will have value created by these countries. anyone who bought a car or gone through the process recognizes there is lot of inefficiency in process of buying a car.

cheryl: tesla has gone from beaten bit street to loved by the street. it is an incredible run up for this company. do you worry there might be a slowdown for momentum from tesla this year? >> any momentum stocks early stages go up and down, right? we've seen that with tesla and news around the fires as well as recall. good to point out what teslas has done with the voluntary recall making changes to the carver sus what gm had done letting this go and letting numerous people die before they took ultimate responsibility. we think there is margin expansion. we think investors see the margin expansion and growth and this market is starved for margin expansion and growth. cheryl: colin, we appreciate your time. colin rush. adam: back to the nu skin herbalife story. nu skin shares resumed trading. we'll be back at the

new york stock exchange after the commercial break with more details. we'll have charlie gasparino coming up. it's a growing trend in business: do more with less with ss energy.hp is help. soon, the world's most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. multiply that across over a thousand locations, and they'll provide the same benefit to the environment as over 60,000 trees. that's a trend we can all get behind. ♪

see what's new at projectluna.com >> good around, i'm sandra smith with your fox business brief. wall street bonuses hitting the highest level since 2007. a new york comptroller report found the average bonus for workers in the securities industry jumped by 15% last year to more than $164,000.

that is the third highest average bonus on record. the labor department wants more transparency for 401(k) plan fees. officials have propose ad new rule would make it easier for people who have retirement plans and their employers to identify the plan fees and expenses. starbucks offering a mobile tipping option. the coffee giant will let customers leave a tip of 50 cents, one dollar or two dollars through an iphone payment app within two hours of the transaction. 10% of all-star bucks purchases are now made with mobile devices. that is the latest from the fox business network, giving you the power to prosper.

cheryl: continue to update breaking news we're following. shares of nu skin is open for trading. it was falling a few moments ago. it looks like it has gone back into positive territory. we should say the stock was

halted after up 12%. senior business correspondent charlie gasparino had the news first. broke it via email and twitter and thank you for getting that on the air. >> and on the air. one thing if you're herbalife long you want to avoid here is something like had this. the ftc was sort of thing that was waiting out there somehow. the federal trade commission whether they would look start a formal investigation whether herbalife is pyramid scheme. why is the ftc so important as opposed sec, they can essentially close your company down. they can basically hit with you big fines. they say your business model is corrupt. so what we have can, essentially is a subpoena. it is called a civil investigative demand. it is the civil side of a subpoena and basically saying that you know, you, herbalife, you are now under official investigation essentially for the stuff that bill ackman has

leveled against you. that you are, that you are a pyramid scheme. you have a business model that essentially does not make money off of real sales. it makes money off of continuing to get distributors. cheryl: pyramid scheme. >> so as a result, when the distributors stop, run out, the whole company collapses. adam: charlie, just let viewers know we'll still have the discussion you had lined up with dick bove after the commercial break. we want to stay with the herbalife story quickly. after this company get as subpoena, investigation, they are saying they will cooperate with the ftc. >> right. adam: this is a quote. herbalife says we are confident herbalife is in compliance with all applicable laws an regulation. this is out of the playbook, right. >> you have to say that. herbalife have very good lawyers. david boies, the great attorney is representing them. i can tell you early on when i was dealing with david boies on this story, people at his firm, not him directly on this. i dealt with him on other things directly but not this one, but

one of the things people said there, what do you think are the chance that is bill ackman will throw enough stuff our way, as you know he has, that the ftc, would start an investigation, a formal investigation, not just this baloney where they receiving complaints? and you know, they thought it was low. and now it has happened. i would just say this. this is very, very negative sign for the company. that doesn't mean the company's guilty. doesn't mean the stock woken go back up. doesn't mean they won't be exonerated. this is negative sign for a battle between, remember, this is battle, epic battle, who would have thought over company like this. this is not a huge company. it is fairly significant company. there is epic battle between the longs and shorts. people are buying this stuff. they think it's a pyramid scheme following bill ackman. people following carl icahn think it's a good company. this is notch in bill ackman's on his whatever, you know what i'm saying. he scored a victory here. we should point out as we were reporting and "new york times"

reporting spreading a lot of money around washington. adam: lobbying money to do this. >> pushing people like loretta sanchez, the orange county democratic congresswoman. congressman markey from -- adam: paying alleged victims to write the same letter. >> he has been out there pushing key people to do this to push the sftc to do this. cheryl: charlie, you have dick bove, and do your exclusive interview. >> another crazy stock. cheryl: another crazy one. you're watching markets recovering. we'll be right back with charlie gasparino and dick bove. ack dow. 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 noaxes for 10 years. with new jobs, new opportunities and a new tax free plan.

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adam: we still got charlie gas

here with shares of freddie mac and fan fay. there could be a bipartisan agreement to lead to shutdown of two mortgage giants. and as promised charlie has dick bove. >> one great thing about the cnbc story herbalife five minutes early and mainly a stock you like, still like, two stocks, fannie mae and freddie mac, the former gses. are they still gses, these things? >> yeah, they absolutely are and they're still functioning exactly as they functioned in the 1980s and 1990s. the first thing should be understood who owns them. the taxpayer owns these two companies. the taxpayer has invested, i will put the two numbers together, taxpayers invested $190 billion into preferred shares in those companies and those preferred shares should be paying $19 billion a year in dividend to the taxpayer. and this bill would wipe out that investment. number two, the taxpayer has through warrants, 8.2 billion

shares of stock in these two companies. i estimate that the value of that stock is 155 billion. what mr. johnson and senator johnson and senator crapo are doing, they're taking what is essentially $355 billion, which is taxpayer money, in the pockets of taxpayer and taking it away from them. that doesn't make any sense. >> return it to the treasury, aren't they? where is it going to go? >> they can't, they, how can you return something to the treasury? basically you're wiping out 200, $190 billion in preferred stock. you're wiping it out. >> who, the preferred stock is largely owned by the taxpayer and some is owned by hedge funds obviously, correct? >> right. no, the senior, the preferred i'm talking about is 100% owned by the taxpayer. the taxpayer invested $190 billion of senior preferred which will become zero in valuethis bill goes through. the taxpayer has warrants which give it 8.2 billion shares in

these two companies. the value of that in my view is 155 billion. it will be zero if this bill goes through. >> we obviously need to get those two on their side why they will do it. i'm sure they rationalized we dumped enough money in this morass if we put them out of their misery, fannie and freddie, we will not have another mortgage collapse. >> there is no misery, my friend. if you collect 203 billion, what do you mean? if you collect 203 billion on, 190 billion-dollar investment and still have 355 billion to collect, that is not misery. that is huge profit. >> from a public policy standpoint, if we keep these things in business, we're setting the stage for another mortgage collapse. i mean they were at the heart of night no, we're not. >> are you sure about that. >> they were not at the heart -- they were not -- >> come on. >> if you got rid of these go companies, you're getting rid of 30-year fixed-rate mortgages. getting rid of 20 year

fixed-rate mortgages. dropping price of every house in the united states. why would you do that. >> you make a good point. i want to point out, change the subject, at this second, herbalife is free to trade. it is down 13% as we were talking about the ftc investigation. we'll get back to that it lear. let's go back to this, dick. here's the thing, operative thing. you make a good point about this company. if you are buying the stock you have to bet that this won't, this bill won't happen. it is bipartisan. not only that you will have to bet that the preferred, the people, investors that hold the preferred that are might sue the government, will win. isn't that a high hurdle? >> no. it is a very simple hurd dell. number one the democrats don't agree in terms behalf should be done with fannie and freddie. at the same time, this bill is coming out on senate side, there is bill coming out on the house side sponsored by three democratic congressman from maryland, delaware and connecticut which would not do

what this bill is asking. the same time on the republican side, you have no unanimity in views what should be done. this is bipartisan bill of 10 guys. it is not a bipartisan bill of, you know, 300 representatives and senators in the united states. >> i gotcha. so, bottom line, yesterday's market reaction this was overreaction? you still think they're both $18 stocks, right? >> right. i think the fannie mae is earning a buck 60 a share. i think freddie mac is earning 2 phone 40 a share. if you don't take my numbers, take numbers out. congressional budget office which says they will earn 111 billion over the next 10 years. just take that 111 billion number and compare it to the fact that if they don't wipe out the shareholders position and senior preferred a, they will make 190 billion in dividends. at the end of 10 years they will make another 190 billion and 10 years after that. they are screwing the taxpayer so royally here it is beyond belief. >> all right. we'll have you back on. i love to see you and those two

senators debate it out. thank you, dick. appreciate it as always. cheryl: charlie, just for a moment we want to keep you here. let our viewers know once again herbalife has resumed trading. the stock losing as much as 15% of its value. now it is down about 12%. you heard it here first on fox business from charlie gasparino, the company is subject after ftc investigation. that was broken here on fox business. charlie, you had the news first. now what for this company. >> i told investors if you want to have fun and play with this thing this is stock for you. this will be all over the place. this is flat today when carl icahn comes out and says what he has to say. we don't point point out we don't know. this is investigation. it doesn't mean that the ftc has ruled. but i will also tell you this, the one thing i know herbalife wanted to avoid was an ftc investigation. i know their attorneys at bois schiller want to avoid that because this could be really bad

for the company. this could close them down. if the ftc comes in and says these guys violate the law, that this is really a pyramid scheme. listen, i can't tell you it is or isn't. i look from my standpoint as investor. you know what is out there. i don't need the ftc to tell me. cheryl: weville a lot more with liz claman at 3:00 p.m. eastern time on "countdown to the closing bell." adam: investors look at space, the final frontier. mining asteroids. a complete pie-in-the-sky idea? we are talking with a company working hard to make it reality. plan terri resources cofounder, eric anderson joins us next. can you start tomorrow? yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid.

we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. when csx trains move forward, so does the rest of the economy. csx. how tomorrow moves.

>> following breaking news. shares of nu skin and herbalife resumed trading. nicole is watching the stocks move at the new york stock exchange. >> both were moving higher and both were halted and lower. herbalife we're focusing on, down 10%s off earlier lows as the federal trade commission

open as investigation, civil investigation into herbalife. bill ackman continues to call this company is a ponzi scheme and saying it is breaking laws in china. herbalife saying we're happy to work with the ftc very closely. so they believe there is something material there. you see herbalife down. back to the lows of last summer we were looking at. not a good day. >> nicole, thank you. adam: asteroid mining sound like something out after blockbuster movie. it's a new investment opportunity billionaires are jumping on. we have cofounder and chairman of a company planning to mine asteroids. eric anderson, thanks for joining us. we'll have to cut this a bit shot. you have billionaires believe you can do this. what is the time frame? nasa will bring back a kilo of asteroid material in 2020. when might you do it? >> we'll do that before that, adam. our first mix to an asteroid will launch within the next 24 months. we'll be sending literally swaps of small spacecraft that will go

and characterize and prospect and be the precursors to the larger mining missions which will follow soon after. we'll send the missions very soon. adam: as a science and space geek i'm thrilled you will do this in less than two years. the real trick is bringing back huge quantities of material back to otherearth to be processed. when that might actually happen? >> that is great question. it will happen a lot sooner than people think. what most people don't realize is that the catalyst for that and market developer for that is actually going to these asteroids and using the materials on the asteroids to create immense fuel depots and propellant depots ins space. this is what helps you move it back to the earth but that fuels the 100 bull dollars space industry. we're -- $100 billion. now we have it in space. adam: eric anderson, i apologize. we have to cut it short. what you're doing is fascinating and new technology you will generate is truly remarkable.

thank you. cheryl: we follow breaking news at fox business. more is breaking in the 2:00 p.m. eastern time hour. melissa francis taking you through the next hour. melissa: absolutely. so much going on, cheryl. we have a big show starting with a throwdown, featuring one and only charlie gasparino, watch him go head-to-head over the 200 million-dollars salary of pimco's bill geese. tough day for tesla. a huge ruling shuts down sales in new jersey. the stock is taking a beating. we'll go live to a tesla location for reaction and debate. some passengers from one of the doomed carnival cruises are suing the company for $5,000 a year for life. what? are you have you heard about this one? we're all over it. because even when they say it's not it is always about money. melissa: so before we get to our throwdown we want to check herbalife which is huge story. trading has resumed but you