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tv   MONEY With Melissa Francis  FOX Business  March 24, 2014 2:00pm-3:01pm EDT

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adam: canadian beer company is coming up with what it calls the first-ever recovery ale meant as a pick me up as you hit the gym. it has antioxidants and vitamins that promise to keep you fit when you workout. france perhaps, you -- melissa francis, you buy it? melissa: i don't know. charlie gasparino, sitting next to me and immediately cost his attention. adam: who wouldn't want to drink beer at the gym. >> herbalife sheikhs. melissa: could be a new product for herbalife. our top story. anyway, big news coming up on herbalife. here's a hint. cark icahn is winning again. if you own shares you are too. do you think you know the worst companies in america? we are weeding them out all this week starting now. even when they say it's not, it is always about money.
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melissa: so the herbalife battle continues. carl icahn, gaining three additional seats on the company's board. the stock is up on news today. does it hurt or help shareholders in the long run though? here now are very own charlie gasparino. jo ling kent from the "wall street journal." we have james freeman as well. what is ackman's next move? this is pretty powerful. five seats on the board. >> icahn or ackman? melissa: ackman. how does he respond? >> icahn, start with carl. carl now will be, will push management to be more aggressive to, addressing his concerns, what ackman has raised, that this is a illegal ponzi scheme and raised it enough where he has got, the ftc looking at it. melissa: right. >> possibly state ags looking at it. i think you see much more concerted, tougher defense strategy out of herbalife right now which is basically laying
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back. listen, they put out statements. melissa: it is hard to mount a defense. when you look at it, they do make money by virtue of setting up new dealers. new dealers are forced to buy product -- >> and customers. melissa: not reusing it. then they don't sell it. >> i never drank a herbalife shake. melissa: no. >> i don't have a here's in this race. this company has been looked at 30 years. melissa: i know people gone inside looked at books feel like it is a ponzi scheme. >> this move makes it harder to think of this as a criminal enterprise because icahn has had two of his associates on the board and there for about a year. now he is adding more. you could say he is just talking his book but they have had a long time to look at this company. melissa: big gamble. >> raising the stakes for him. i think he seems to be saying, pretty persuasively he doesn't think it's a ponzi scheme or excuse me, a pyramid scheme. melissa: jo? >> that is the evidence. earlier an hour ago, you were
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saying 99% it is not a ponzi scheme. i think there is still that 1% who will definitely react to it. but it is interesting, because it's true. now with five seats of the 13 on the board. >> i would say this i don't have a horse in this race. i know you don't. i know you don't. melissa: yeah, i don't. >> let's face it. and you don't. let's face it i never see a company being investigated more. what am i missing here? all the heat now is political. it is not coming with -- >> that is scary thing. >> ed markey, democratic senator urging investigations. no new information. he hasn't discovered anything. political pressure brought by ackman. >> here is what the scary part of what ackman is saying. he is not necessarily just saying that they're cooking books or not disclosing their earnings right, showing it is mostly distributors and not end-users. >> he is saying there is racial component. he is throwing out race. he says they are targeting hispanics. seems like such a lame thing to
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do. melissa: a lot of math that supports it when you look at it. >> they are targeting, who does this stuff? computer programmers don't sell herbalife sheikhs. shakes. working-class people sell herbalife shakes. white people, black people, hispanic people want a share of the american dream. they say they can do this that is not discriminatory tactic. melissa: targeting countries where the demographic is lower and they would be more susceptible. >> a country of computer scientists going to sell herbalife shakes? this is way it goes. i grew up working class. i knew people that sold amway. i mean it is just the way it is. >> right. can be a legitimate business. i think sort of bringing racism as a charge into it really, the claims are kind of bogus, whether the model works or not is -- melissa: we'll leave it there. big news today, about comcast, or should we say, i-comcast. "wall street journal" is saying that apple and the cable provide remember discussing a streaming television service that aims to revolutionize the way consumers
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watch tv. alan knuckman at the cme. alan, netflix getting crushed on this news. >> yeah. that's interesting. you know, the conversation here is about that last mile. always about bandwidth. it is about getting streaming service that last mile. this allows apple to do that and bypass some congestion you get when you go through the conventional internet. this is very much a positive from a technical standpoint, trading standpoint. risk/reward standpoint. i love apple at these levels. we have technical possibilities with the breakout above the 540 level, to 612 1/2 based on the last leg we've seen in the stock. melissa: seems like the deals are going to happen more and more. which side wins more? is it apples and netflixs in the group or cable providers who are paying more, being paid more to deliver this content faster? >> well, the death of cable has been greatly exaggerated. if you look at comcast stock, it has gone from 10 to $55. technically speaking it looks like another $10 to go back to
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60. so that is 20%. so don't fade the cable companies. they have a lot of power. obviously technology is changing. that is why you see this. i would term it more kanoodling. melissa: kanoodling. >> very page six. melissa: alan, thank you so much. we appreciate your time. >> thank you. melissa: i want to turn to my panel. of they say it will revolutionize the way we watch it. have, streaming tv service through an app. that is how i watch tv. i have an apple tv i have a cable provider. if it speeds it up, go ahead, jo. >> this would be everything in one place. going off his point earlier about the need, cable really needs apple, they do. if you look at the full-year outlook from 2013, full-year record, they lost 251,000 subscribers. it is the first full year drop in cable history. melissa: but he have this pipes to deliver the content we all want. i have netflix. i have apple tv i love all these things. you need a way to get it in.
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>> what is the way around the cable operators? melissa: i guess it would be directv, right or phone line? >> phone line and -- >> it will happen at some point. there -- >> happening now. >> it is happening now. i remember when i was at "newsweek" magazine back in twix, there was a point where i would write fairly long stories, literally the next day our size shrank. that was the death toll for those magazines. about 2006. it happens fast when it happens. who knows what -- melissa: who does that apply to in this situation? >> i think these are, comcast has to make these deals right now because they know that there's a day of reckoning coming for them as well, don't you think. >> i kind of wonder though this particular deal. a lot of people don't like to work with apple because they take so much of the value off the transaction. they're basically asking to own the customer relationship. >> right. >> i don't know if this is a great deal for comcast but i think it does show their perception they need to act. melissa: they put out a way to
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charge more money what it is they have to provide. they were providing internet service. they said, hey, we'll let you get in front of the other guys and deliver it faster. what is more deteriorating when your netflix is buffering, buffering? it's a nightmare. >> that's true. >> they have a deal with comcast. if this goes through they will be secondary immediately. that puts all netflix people who are potential comcast apple subscribers in a -- >> we should point out, we're looking at this from a purely comcast play and netflix play. think about apple. i was first to report on this network last year that the board was getting a little worried about tim cook's need to innovate more. there's a book by former "wall street journal" reporter out there basically says at that. this is -- melissa: you think this is innovating? >> this is part of it. melissa: okay. >> certainly is in that direction you. >> don't think this is innovating enough, guy who said buy apple shares, don't buy them. melissa: new compensation plan, the company defends it but our next guest says it's a bad deal for shareholders.
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time to put your money where your mouth is. are you brave enough to call out the best companies, i'm sorry the worst companies in america? scott martin is and he is starting us off today with his picks. you're going to enjoy this one. more "money" coming up. i've always kept my eye on her...
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>> we really hope by shining a lot on this maria, what we think egregious pay pack press, it stops and stops around the country. because it is clipping money out of everyone's pockets. it may be the biggest transfer we've ever seen from of wealth from shareholders to management. melissa: that was winter green ceo, david winters earlier on "opening bell" with bartiromo. lashing out with coca-cola's treatment of investors. he is not only one. backlash bubbling up with coke that would potentially transfer money from investors to executives. winters is calling the big guns, sending in a letter to warren buffett, coke's largest shareholder urging him to get involved. brian sozzi is here now. what do you think of this fight? is winters right?
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>> calling attention on one very important issue. me buzzsy you might get stakes diluted the coke compensation plan is absolutely horrible. biggest weighting is towards eps growth. coke is purchasing significant amount of shareholders. they add the metric operating income. why? they have a big giant restructuring program so the operating income should increase significantly. the problem with coke, they have not innovated while pepsi is blowing them away completely this plan highlights the company is treading water. melissa: that kind of makes sense because their response was this new compensation this, is coke, is based on hitting certain metrics and hitting certain objectives some you're saying those are kind of baked in the way they're doing the numbers anyway? >> one metric will be around in coke's plan, unit case volume. so that's a standard. operating income, they're cutting billions of dollars in costs out of the system by 2019 ironically they started to put in place. should be easier to achieve operating income numbers. melissa: yeah. >> another thing buried in the plan they just lowered the
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threshold for currency. it will be easier going forward to get restricted stock units to coca-cola employees over next five years. melissa: i think it is interesting, we saw david winters on earlier this morning with maria bartiromo bart. he is trying to get warren buffett involved who is coke's largest shareholder. he is a big shareholder berkshire hathaway. with winter. there is lot of personality. >> part of this is shame on warren buffett he led to many respects getting executive pay quarterlily for the performance. coca-cola's stock price is down 5%. pepsi es is up 6%. why? pepsi owns food division and investors pay more for the global story. time for management changes at coca-cola and bring people in who want to innovate and acquire brands than dumping into stock repurchases. >> brian, thank you very much. what do you think about this? this spikes to the larger question where you have these sort of convoluted plans that do steak stock and stock and reward it to management. like in the abstract, no one is
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getting hurt and they're getting all this stock and says their performance but does dilute the average guy out there, our viewer? >> i will say this though. when an activist overstates his case as much as -- melissa: winters. >> mr. winters did, is this the greatest destruction of shareholder wealth he has ever seen? was this guy born yesterday? the greatest destruction of shareholder wealth? i could think of 40,000 things that are bigger destruction of shareholder wealth than this plan. by the way, if it is so bad, why does he own 2 million shares? melissa: you know what i thought, listening to that and watching and listening the hyperbole as you were, activist shareholder thing, we were talking in first segment, and we're talking about it now, that is hottest profession going. >> daily or weekly, on ebay all the different major investors. melissa: that is why your name as hedge fund manager to get out there. >> a lost theater. >> remind me of when martha stewart had martha stewart living put.com at end of it to
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get higher values during the internet bubble. it was more form than substance. most of these are not major activist investors. i have not heard of mr. winters. when you start blowing smoke, greatest destruction, might the be greatest thing or not best thing. greatest destruction of shareholder wealth. when happens when they go out and do something really stupid? what will he call that. melissa: go ahead. >> investors no matter what they think they have the freedom to talk and draw attention. fourth quarter sales down 3.6% from coke. that is reality he is having to grapple with owning all shares. melissa: we'll leave this. >> have to put knit context. melissa: absolutely. i'm glad you're both here. thank you so much. from the u.s. to every corner of the globe money has been flying around the world today, starting in germany with the end of an arms deal with russia prompting harsh criticism from the country. berlin pulled the plug on
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140 million-dollar contract to build a training camp for russian force, saying it would be unacceptable to carry out such a deal given the current situation in crimea. russia's deputy defense minister says germany's actions are unconstructive and probably made under pressure from the u.s. all our fault. over to china. a tour by michelle obama has led to a local crackdown on apparel featuring her husband. t-shirts and hats showing president obama as a comrade of chairman mao, charlie likes that he wants one -- >> i want my face. melissa: sold around the great wall that would be interesting. and other key attractions. authorities were quick to ban all sales of items once the first lady was in town. those unlawfully selling obama shirts are now doing so for 60 buck as pop. that is not cheap. not sure it is worth it. landing in the u.k. where a trade union group is warning that wages in key industries won't recover for another decade. it shows in manufacturing, retail and construction may have
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to wait until 2025 before their salaries return to precrisis levels. next up, weeding out the worst. all week we're letting our money experts offer up the worst companies in america. we are starting with scotty markets. tweet me. tell me your worst picks. arizona making a big move toward tesla. some might even say, sucking up to the company with the hopes of winning some major business. this is the key to this story. listen to what's going on. we have got the whole thing. do you ever have too much money? it's a growing trend in business:
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melissa: want to show you what is going on in the markets right now. look at nasdaq getting hit the hardest, down 1.3%. nicole petallides on floor of nyse right now. what is going on with technology? >> that is really a hot top i
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can of discussion today as you noted. nasdaq outpacing the to the downside other major averages. dow is down .2 after% while the nasdaq is down 1.3%. technology is getting beaten down, particularly biotechs. we're looking pharma, biotechnology and particularly because of gilead sciences. news of hepatitis-c pricing for drugs. jpmorgan says the bubble we've seen or some people calling it a bubble is not a bubble at all for the biotechs that really run up last couple years and actually most recently and a little bit of a breather here but we've seen this group pulling back quite dramatically in the last few sessions. so much so that its noticeable and dates back to august of 2011. so we are watching biotechs very carefully and how they are in turn affecting tech-heavy nasdaq. there are many things that go into the nasdaq, biotech certainly one of them. back to you. melissa: nicole, thank you so much. we know it is were wrong to kick a company when they're down but sometimes you can't help it. so this week we're calling out
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worst of the worst. from lackluster stock performances to terrible product the and greedy executives. scott martin of united advisors first up with the picks a fox news contributor. you have aol on your list. >> that is a pretty easy one, melissa. ceo tim armstrong shouldn't open his mouth anymore, reducing company matched to a couple distressed babies he put it from employees to actually firing a guy, right in front of 1000 employees on a conference call, because don't go near mr. armstrong with a camera because you might get fired. melissa, aol is been in a lot of trouble since they republicized twine. they're pin 2009. tim armstrong is not frankly bilged the subscriber base. not only isn't fun guy to hate but numbers speak for themselves. melissa: you talk about jcpenney. they have lands end under their
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umbrella. that is strong product. they make many school uniforms. jcpenney as a brand is hurt but they have good properties. >> yeah, that may be good. that might be thing that saves them is the real estate. remember they have to unload that portfolio. and you know as well as i do, melissa, the brick-and-mortar retail remembers betting really hurt. yes, jcpenney is up pretty nicely this year. they had a good quarter in q4, 3, 2, 1 last year absolutely terrible. i don't buy this turn-around yet especially concerning like you said, their loyalty isn't quite there. it is not quite back. they try to be this hip and cool store. that is not their demographic. more after middle age to later aged shopper. it doesn't fit. melissa: that's right. they like the middle-aged shopper and decided to cut all the discounts. it has been a disaster. your last one is so obvious i can barely let you get away with it. blackberry. >> kind of like picking on easy low-hanging fruit. melissa: very monday pick. >> tell you what. you know what? blackberry is in some trouble.
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yes they bounced this year but they lost a huge lead. they were crushing apple and google in the beginning. they totally got taken over. now they're the ones getting crushed. they have had some management changes. nobody is buying any of their they're selling a million or so phones versus tens of millions of their competitors. they're falling behind. the question is, melissa, the company is sum of their parts is probably not greater than the parts. can they spin off parts of that company, monetize the subscribers to actually get some value for shareholders? melissa: i don't know. i think answer is probably no. scott, thank you so much. tweet me your picks for worst companies. we'll do them all week long. what do you think of his picks? what is your pick? >> i never want to say what is the worst company. melissa: why? because you're good natured gregarious, positive funny buy, is that why? >> i think the guy makes good points. i kind of like blackberries to be honest with you. melissa: you don't have one.
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you're holding something else. >> i find it very hard to use the thing. if they ever get their act together i guess from corporate standpoint. that touch pad is -- melissa: that is good question. >> i can jog and tweet on the blackberry. can't do it. with this. melissa: do we have video of that? would you like to see video of charlie jogging and tweeting. >> it definitely happens judging by how many typos on your twitter feed. i think the blackberry story is interesting because they're actively trying, right? melissa: i guess. >> they're trying to spin off blackberry messenger for certain amount of money and take advantage of messaging wave. melissa: they squandered their dominance. >> they have a opportunity to sell at 6. so a yearing a to make mon did i -- 6.10. >> a little bit to be dangerous by aol heed at this time ad couple stories from katy roof, aol thinking about buying business insider. >> right. >> seems like their strategy is out the window. melissa: all over.
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>> didn't they patch? melissa: i don't remember patch? >> patch was sort of local newspaper on the web. melissa: right. got to go. >> it was just insane. melissa: that's why you haven't heard of it. next up how so win business in arizona. a new bill tailor-made for tesla. will it give the state a leg up on the billion dollar battery factory? here from arizona rep trying to make it happen. who is making money today. the company taking ordering to a whole new level. now they could be sitting on a billion bucks. see who it iy" coming right up. of. cook what you love, and save your money. joe doesn't know it yet, t he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game om the great northwest. he'll stt investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, ich isn't rocket science. it's just common sense.
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>> we have some breaking news to bring you write now. a u.s. jury has reached a verdict in the criminal trial of five former bernard madoff employees. there has been a verdict reached. we don't know what it is but we'll bring you that news just as soon as we get it. big news, it is all tied
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into the crisis in ukraine. the department of energy has consciously approved natural gas exports from the jordan cove project in oregon. because of the current circumstances, bill flynn is watching what's going on and we see natural gas trading lower on this. phil, explain it. >> well, it is. because it's going to take a five years before this natural gas is going to get its destination. and so the market right now is not pricing this in. but i think it's a big step forward and a realization by the obama administration that they need to move a lot quicker to approve these natural gas expert. the bottom line is, energy is security. it's national security. and in this type of situation, it really brings home how important it is to start approving these exports. we knew russia was and threat to europe and we knew it was a risk to everybody else so it's about time they move. >> phil, thank you so much.
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we appreciate that update and talking about that, tune in at 8:00 p.m. to catch the interview with transcanada talking about the keystone pipeline. arizona is making a major play to open the doors to test line possibly giving itself a line up in the commission to inability the carmakers bonds million dollar battery factor. legislation is in the works to allow this to sell its cars to consumers but this special exception isn't winning popularity contests. here now, the sponsors of the bill, warren peterson. thank you so much for joining us. let me ask you, you know, it looks to us from the outside there are four states competing for the factor to make these battery,s arizona, nevada, new mexico and texas. arizona is one of two in that group that banned direct sales. it seems like your bill is a bid to try and get that factor in your state.
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is there a connection? >> well, it's not a quid pro quo by any moans but i means but itg tesla know that arizona is opened for business and that we believe in free market. we believe in allowing consumers to choose who they want to buy a car from. >> you say it's about anyone but you know, it would let direct sales by automakers solely elect to trick vehicles. so tesla is the only one that this would work for. >> this bill would work for anybody that is willing to selleck tricsellsell electric c. i offered the same legislation for all of the manufacturers but they don't want to have anything to do with it. right now, tesla, does a direct sell model and the state doesn't provide a way to do that. so what we're doing here is making sure that anybody that
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wants to sell a car here in arizona, that a consumer can purchase that car. >> you only have one showroom for sesla in arizona p but consumers have to go to another state to buy a car. does that hurt your chances of getting the battery factor? >> like i said before, my main focus is to open up the market, to let tesla know that we're not here to do any special deals. we're trying to say we're reducing red tape. i think it's hostile if we have manufacturers that want to sell their cars here in arizona and they can't do it. so yeah, i would hope that tesla would see this as ok, we're welcomed in arizona. >> what's the reception been like among fellow lawmakers, a similar bill was proposed in january and didn't go anywhere. do you think this one has hope? >> yes, there was a bill proposed before that was killed in the house. this is a similar bill and i
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always have hope. there's a lot of support for the bill. it passed out of its first committee and so, i'm hopeful that we can make progress on it, absolutely. >> thank you so much for coming on. >> thank you for having me. let's go back to charlie. what do you think about this? >> earlier this morning one governor rick perry was on and he basically said he wants to open up a conversation to reconsider the text ban so clearly, this individual here, this representative, he's not alone but what i would be interested in knowing from governor perry and also from him, what are they going to do about the massive amount of money flowing in from the dealership lobby? does that affect the economy, because that's a huge deal. they do not really invest that much money in campaigning, especially on the state level and a lot of that money is very important to getting these people elected. >> it probably puts -- that's a
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good point. that hurts tesla in this debate. if you know anything about state and local finances, those campaign contributions mean a lot. >> they're survival. >> all of these guys, especially legislatures. >> you all have deep pockets. >> they don't want to engage in that game. >> they don't want to do it. >> they're building a factory with 6500 jobs. i mean, they're get egg in the game in a way because they're offering this factory to two states who currently ban sales. so change your ways and you have a factory. >> i'm not sure that's explicit. >> they don't think they do that in new york state. >> it would be ugly if you did it like this. >> why are they trying to build something? new york state? >> i don't know. >> why do they always pick texas? [laughter] >> the situation in ukraine is
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very fluid. the world waits to see how bad it could get. talk of war, not far from people's lips. we have the latest details. more money, straight ahead. those litt things still get you. cialis tadalafil for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet helpsapproved to treattime the msymptoms of bph, like needing to go freently. tell yr doctor about all your medical conditions and medicines, and ask if your heart is healthenough for sex. do not take cialis if youtake , as it may cause an unsafe drop in blood pressure. do not drinklcohol in excess. side effects may include headac, upset stomach, delayed baache or muscle ache. to avoid long-term injury,gety if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives,
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company before the u.s. and european union impoised sangs on russia. blackstone sold 50 million shares cutting the stakes and relinquishing over the operator. blackstone could raise $5 million from that sale. disney announcing benefit sherwood would begin the transition to severe seed anne sween knee of disney networks and the television group. swee knee announced she will be leaving.
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>> weather it's on wall street or money street, making money and losing money today, the in the red right now netflix after word of the apple comcast deal got out. some worried net flick got screwed. maybe sometimes being first isn't always better. shares down 7% right now and ceo rates rehastings owns about 1 million shares of netflix and already lost more than $28 million today. that has to hurt. 28 million bucks, not makes money, cisco, the company is spending $1 billion to get into
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the cloud computing game. investors, a bit weary about this news, cisco is down about a half of periods point right now and bank be, that will make big money. the folks behind drug-hub, it will sell more than 700 million shares between $2 a share that gives the expect more than $1.7 billion, as and advocate of ordering in dinner, good for them. with the world waiting to see if war is about to break out ukraine, the g-7 is meeting to discuss russian's actions. troops are in place and ukrainian troupes have been withdrawing. how do you see this playing not? out? >> we need to be separating this into short-term leverage and long-term gains. what i mean by that, that i
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don't think there should be high examinations on the west and g-7 can achieve from a short-term perspective and what i'm thinking, i'm talking sanctions and putting sanctions on the early dogs. >> examinations are at about zero. >> yeah, i mean, let's bring it back. cremia as important as it is, is not worth nuclear concentration. i can understand why putin regards cremia as a strategic aspect because of the navel base that is there which gives him access to the mediterranean and why he's making a play. i am not saying it's right but i understand that. if you look at his aspirations or ukraine, that is a high risk, low reward strategy in terms of what he would seek to gain by making any further in ukraine.
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>> why? why is that high risk, low reward? from this perspective it looks like he wants to move in and take over as much territory as he can, like he's trying to put back together the soviet block and it's about a take-over. >> you have to look at what does he aim to achieve or get? >> world dominance? >> he won't get world dominance. the whole thing about the long gain is comment if you look at the equities in russia. they're down. it's down 10% since the beginning of the year. bondses are soaring. the gdp in 2013 was 12.5%. putin is taking no economic reform. i don't know why russia is being regarded as a long-term threat. what we need to do is the west, we need to tart energy of europe and offer europe, germany, italy, an economic alternative
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so at the gas pump because russia needs europe as much as europe needs russia and with the shell gas revolution, there was america to take the long gain. >> michael, a lot of people agree with you and we applauded earlier in the show that the obama administration has approved the idea of opening a terminal off the west coast and we hope that that will continue around the country because that is something that will a big different. thank you for coming on. >> thank you. >> cheryl is in for liz. what do you have? >> melissa, talking so much today about this potential deal between apple and comcast and certainly steve jobs, never was interested, frankly, in apple television but it looks liking things are changing. be bringino talk to us about what he thinks this could mean for apple and comcast with the fcc having issues, what about the competition and the merger for comcast? all of that will be playing into this story. we'll talk about the viability
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linking up and then talk about a hot year for upos pricing, nine just for this week. coming up we're talking to tim keating about why he thinks there's one type of ipo and it's not technology, one type of ipo that he says there's a bubble happening in ipos but it's not tech. >> you didn't mention the biggest thing i have coming up is at the top of the hour, char charlie gasparino will be talking about that. >> you have a big show. >> thanks for letting me. >> i'll see you in a little bit. >> next up, you think technology is what you want but do you really want to be walking around with ads on your watch? that's just one thing you probably have not considered. we'll tell you all about what you haven't thought about. can you ever have too much money?
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>> we have news to tell you about now on pandora. let's go to nicole. >> the heavy volume here today on pandora. you can see the stock is down 8.3%. so big moves in the stock, heavy volume and all of this is about the news from apple. you see the stock down $2.82 a share and there are reports that apple is launching on demand streaming service as well as adding i tunes app for i.
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tune phones. we're talking about i tunes app for the phones and this has been reported in several places in addition to a bill board and they cited a few people. you have the analysises out there saying this is not good news for pandora overall because it's competition. you saw pandora reacting to that news. >> nicole, thank you, it's time for spare change. we're getting marketing monday. with industry maybe bruce, i have so much to ask you about. i'll ask you about a very peculiar mango wine shake that red robin is pushing but we have to start with smart watches. i mean, now we're reading they'll become billboards. if i'm looking down at my watch trying to see what time it is or who's calling me or whatever else, to have an ad pop up, i may take it off and stomp on it.
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>> i don't think so. this is an innovation back to the future because television, somewhere we go for information and entertainment and then they interrupt it with ads. they've been out for 60 years. so i don't see this as anything new, different, unique, special, it's just the way advertisers have been reaching us. >> it's a tiny small screen that it feels like it's more irritating because there's so much less information. i tune out, when there's ads on the side, i don't see it. i don't know what good it does them because i don't click on anything. i don't think it's reaching me. on your watch, it's a small space. it would drive me nuts. >> maybe what you'll find is that different advertisers to show you a single image or say something in two or three words which has been where the best advertisers have been marketing. you'll carry that with you all of the time and this is no different than what kindsle does
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or even the fact your smart phone is subsidized by your phone plan. now it's further by the willingness to have advertising. >> milk shakes with wine in them. i like anything with wine you it but i'm not sure it mix his that billion. it is a desperate plea to get people in because this is the area of the economy that has been struggling. it's not quite the cheapest meal that you can have. what do you think about this? >> i thought a brought business idea would be to own the concession in a chuck e. cheese, so i don't think -- you have little kids so you know what i'm talking about. >> yes, i know what you mean. >> i don't think this is different. you take your kids out but now mom and dad can have a shot on the side. >> mommy's helper. >> exactly. if you stop and think about it, if you take a smoothie and leave it out, that's a wine milk shake. >> mobile came in at wendy's. in the rage everywhere that
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you'll be able to pay with your phone. >> your phone is so smart it would be tell you something else. the smart phone will say no, don't do that. >> it's tapped into your fitbit and it's shocking you, saying no, don't get fries. >> thank you. >> effect up, how excited are you to watch a movie about the target hack? a movie. no, the story behind the breach is optioned for a hollywood film? oscar anyone? i think not. you can never have too much money. i don't get this one. my dad has aor afib.brillation, he has the most common kind... ...it's not caused by a heart valve problem.
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dad, it says your afib puts you at 5 times greater risk of a stroke. that's why i take my warfarin every day. but it looks like maybe we should ask your doctor about pradaxa. in a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...was proven superior to warfarin at reducing the risk of stroke. and unlike warfarin, with no regular blood tests or dietary restrictions. hey thanks for calling my doctor. sure. pradaxa is not for people with artificial heart valves. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke. ask your doctor if you need to stop pradaxa before surgery or a medical or dental procedure. pradaxa can cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding or have had a heart valve replaced. seek immediate medical care for unexpected signs of bleeding, like unusual bruising. pradaxa may increase your bleeding risk if you're 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners... ...or if you have kidney problems, especially if you take certain medicines. tell your doctors about all dicines you take. pradaxa side effects include indigestion, stomach pain, upset, or burning.
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if you or someone you love has afib not caused by a heart valve problem... ...ask your doctor about reducing the risk of stroke with pradaxa. 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. i was trying to, like, 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 approach things dferently, if we want to be ready for a longer retirement. ♪ if we want to be ready for a longer retirement. iwe 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
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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 melissa: breaking news right now out of the bernie madoff trial. five former employees of bernie madoff in fraud and conspiracy after four days of deliberations in a trial of more than six months. all five found guilty. more bad news for target coming
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straight out of hollywood. the story of the data breach is hitting the big screen with sony planning and action thriller about the blogger who revealed the hack. i don't know, are they going to a lot of exciting scenes of people typing? what do you think? >> i love this idea. i think it is awesome. i will take any of them. he already said that in his blog post, i am hoping for a good-looking guy to play me. a specific superstar in general. edward norton come i think was the name. melissa: he is more the story, very impressive. nicole, are you going to race to the story omak theatre to see a story about the credit card breach? nicole: something other than target. not just target that has had it.
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this is a very sensitive topic. obviously millions of americans across the country. it would be the kind of thing i would be interested to see, but i hate to see one store really hit hard. melissa: it sounds so boring. saving the day? how can you make this into something interesting? there were no guns, no stickup, nobody died, no romance. how is that a movie? >> he keeps a firearm next to himself to protect himself. people work a lifetime to build their empire big or small. this is their identity, this is their livelihood, this is all the money they have earned and not everything a note to be yours is exposed and there is a breach all about you. that would be interesting because then i would shed a tear
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for somebody. melissa: thank you. charlie gasparino was with us as well. i hope you are making money today. "countdown to the closing bell" with cheryl casone today starts right now. cheryl: it could be a streaming video game-changer. apple and comcast discussing a joint service using an apple set-top box. what it coul could mean the juggernauts and competitors. netflix, google, amazon, roku. march madness does not just mean basketball come it is shaping up to be one of the biggest ipo months of 2014 in a year that could be one of the best for public offerings in over a decade. we peek inside the ipo pipeline to find out what is most attractive. pedaled the middle, the bad guys drive muscle cars to get away from cops. police have some new hot wheels of their own. what automaker is winni

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