tv MONEY With Melissa Francis FOX Business April 3, 2014 2:00pm-3:01pm EDT
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melissa: the ongoing battle between workers and the 1% reaching new heights just this week. ups is telling 250 of its drivers to hit the road after they protested to defend a fired coworker. it is all, it is all the outrage helping or hurting the economy? it is today's "money talker." here our very own charlie gasparino, "wall street journal" veronica dagher and financial consultant, doug flynn. this is all follo along the same theme where we have, the vanishing middle class, you're always hearing about that. 1% versus 99%. more worker up rise. there is the site over tellen wages. is all this helping the economy? >> well i will say this as someone who worked at ups when i was a kid. melissa: really? >> that was plant behind my house. melissa: like when you were nine or 10? >> i was like 17. melissa: yeah. >> we would have to unload huge
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trucks and back breaking work. the whole thing was to get that job and make your union book because these guys get paid very well. what is interesting about this, these are highly unionized jobs. where there's really strict rules when you work and when you don't work. and they paid pretty well for people that don't have college degrees. melissa: yeah. >> why they're walking off the job? there are other things you can do to protest unfair firing. melissa: is sort of the sentiment in this country right now and dialogue that we're having about minimum wage and about wall street and all these things, is it stirring up discontent that could be damaging our recovery or not? or is it healthy? veronica? >> definitely stirring up discontent. we'll see more acts of civil disobedience. this is problem. they knew they were breaking their union contract. they were not covered the moment they walked out the door. they're out of a john the and more people out of a job turning to the government for help. i think it is a bad thing for
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the economy. melissa: ups says by the way these employees were warned about consequences of walkout if they left their jobs. we can not allow employee misconduct that jeopardizes our ability to relyily serve our customers. reminds me of picket lines outside of mcdonald's. you have to wonder with all of these people, do you feel so secure about your job? do you think you can get another one if you are protesting the one that you have? doug, what do you think? >> i'm looking for investor standpoint and investing in the stock and put your employee hat on a minute you have to know what your employment contract says. lot of people sign something when they take a job and didn't know what was in it. if they did or didn't know they were breaking a rule. melissa: this is dangerous move. >> listen, i've been to my fair share of strikes. my old man was a iron worker. i've been to strikes. you have a absolute right to assembly. the problem becomes when you violate your contract. it's one thing for a worker at mcdonald's on his off time to protest in front on public
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space. it is another thing to walk off your job when you're supposed to work. that is what these guys did. melissa: maybe it's a sign of stronger recovery. >> i doubt it. melissa: more and more people -- >> look at, look at u-6? melissa: companies will go more towards automation which a danger for low end jobs. where will you get another job? >> here's the thing. i think companies are going to automation. what this shows, it underscores your original thesis that there is a class warfare element political environment. melissa: there is class warfare. >> and causing people to do stupid things. what these guys did is dumb. they violated their contract. you can protest but can't violate your contract. melissa: if you have 400,000 employees you can't let any small amount that will allow it to rip apart. >> not even that. there's a contract. you can protest. you just can't do it. on work hours. melissa: yeah. what does it mean for our economy? when you pit worker against boss, it makes, i mean it seems like it makes businesses
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inherently less productive? >> you have entire democratic party apparatus ginned up for 2014 midterms, much of their message is class warfare. we'll see more of that it's a very dangerous trend. i have no problem fighting management. i'm there with you. don't do it like this. this is stupid. this shows you that the class warfare is forcing people to do very dumb things. melissa: 90% of the fast-food workers say they have been victims of wage theft. this is after we've seen workers at mcdonald's across the country, mcdonald's has been such a target. workers have gone out and file suit. is it, i wonder when you file these lawsuits do you worry about the fact if you're working checkout you could be replaced by computer? >> i'm sure you have to worry about that the whole issue with the whole wage debate who will it really hurt? it will hurt the mcdonald's of the world, sure. it will hurt small businesses of the world who have under 100 workers. they have to raise their minimum wage. that will mean less jobs. >> if you're worried about, if you want to be a long-term
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hamburger flipper, the chances are you're going to lose your job. i don't think that's a big secret. melissa: hang around, guys. oh, yelp. shares of the online review site taking a hit following federal trade commission's repo has gotn 2,000 complaints since 2008. let's go to nicole petallides at new york stock exchange. you can see the stock there getting hammered, nicole! >> the stock is getting hammered. it is down about 7% right now. the problem is the big picture problem which that you have small business owners now complaining month after month, year after year, since back to 2008, saying that some of these complaints that people put on to yelp are fraudulent. and so this is problematic. this is a whole debate over free speech versus what's fair. and they even have examples in the "wall street journal" talking about a guy who has a carpet cleaning business and someone says, worst carpet cleaning ever. don't go with this guy. the question is, you know, are these legitimate reviews?
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should this be done in this way? does it really kill somebody's business? in many cases these small business owners are now wanting to know the names of the anonymous writers on yelp. this is not a problem that is ending today but certainly seems like something that is plaguing some people who sign up with yelp and use yelp and people getting on there and complaining. melissa: that's true. we'll talk more about it. nicole, thank you very much. let's bring in our panel. nicole talking about the case? "the wall street journal" about the carpet cleaner seeing all negative responses. they don't match up with towns he covers or initials with anyone who has been his customers. he goes through the whole thing. these look fake. goes back to yelp. look i don't think they're real. yelp says, would you like to buy advertising? >> that is called extortion. remember, before my wikipedia page was locked down, some of the garbage wall street guys put there. it was off the chart. so much bs on internet. look at my twitter.
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you see twitter wars i get into. melissa: yeah. >> that is the downside of the internet. yelp as business, all these businesses if they're a conduit for false and malicious statements, they can be sued for libel. melissa: yelp they say our recommendation software does not public niche people who don't advertise. there has never been any amount of money you can pay yelp to manipulate reviews. at the same time, we had somebody on the show a little while ago who was a business owner who said the exact same thing. we actually had people on our set customers of this person. said they put up positive reviews and they got pushed to the side. listen to what she had to say. i will get your reaction on the other side. >> my customers left valueded reviews, respectful reviews and they didn't want to acknowledge that. they told me that it was a computer system. that it wasn't their fought. it seems to me that they really do not support small businesses. you have to have major money.
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want you to mostly focus on buying ads. melissa: her complaint they hid her good reviews when she refused to buy advertising. yelp denies this the ftc is out there investigating it because some people have complained. what does this mean in yelp? would you invest in yelp if. >> no the market is showing that. it is down to 100 to where it is now. down 30%. this company hasn't ever turned a profit. it doesn't have positive earnings. even if it does down the road, it is highly speculative. that is the problem with a mid-cap growth stock that this is. they have a business problem and need to handle it. melissa: a bizarre business problem. who believes what you read on yelp anyway. >> oh, a lot of people do. melissa: really? of. internet take with a grain of salt. seems like it impacts business, charlie. i don't know why. >> i will say this i'm not saying yelp committed fraud. but the business model is losing money. it is not profitable. if they are extorting, you know, advertising for ratings, they're
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going to get crushed by the ftc. that stock should go down by half. if that is what they did. i'm not saying they did it. sounds like you have people saying that. melissa: there are a lot of people saying it. doug, thank you. charlie and veronica you will stick around with us. we appreciate it. up next, why traders are not buying into the recovery. it may not be the reason you think. and how miley cyrus is caught up in the russian sanctions? she won't be twerking her way out of this one. more "money" coming up. ♪
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deirdre: the market losing ground now after the dow and s&p hit new record intraday highs. weak economic data weighing on stocks. some are expecting these bleak reports to spur more money printing. so who is that really helping? here to break it all down, fox business's charlie gasparino, john silvia, wells fargo and steve moore of heritage. he is a fox news contributor. welcome to all three of you. >> hi, melissa. melissa: hi. steve what do you think about this? are we seeing the market, i mean we're down right now. seems like the trend is, traders
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loving idea of weak economic data once again because they feel like the fed may keep printing. who is it really helping? steve, go ahead. >> this is the strangest economy i've seen in the 30 years i've been studying this stuff. basically we're seeing the stock market on a tear, you know. what we've seen over the last two or three years has been huge increases in wealth. and it's true that most of that increase in wealth has gone to the people at top 2 or 3%. what is really strange about this, a president who is so obsessed reducing income inequality, the problem for president obama and the fed i would say these policies are supposed to create this kind of widespread prosperity that trickles down and melissa, it just hasn't. melissa: no. >> i was looking at numbers on middle class in terms of their incomes. they're still $2,000 poorer than they were when the recovery began. it seems we've got this policy, by the fed, which is, bringing people at the very top up but not helping the people below.
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melissa: john silvia, what he was talking about, one of the stats, pew research center thing, 40% now identify themselves as lower class or lower middle class. used to be 25% in 2008. 40%, what do you think about that? >> well, i would pick it up on steve's comment. what he is referring to, real household income, what people can actually buy, that median number, what it is for the average person out there has actually declined the last few years. part of it of course, is, wages have not kept up with inflation. part of it of course, is consumer confidence with respect to home prices in many areas has not picked up as much as people had hoped. so i think steve is quite correct. it is reality that the real, disposable after-tax income has not kept up with people's expectation. melissa: charlie, you've been fired up about this today. >> well, look at this way. who has the disposable income to put money in the market,
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particularly following the 2008 financial crisis where you had massive unemployment. still have a lot of under employment. it is rich people. i think this is where the disconnect between the policy of the obama administration, obama-nomics which relied on taxes and antibusiness initiatives which destimulated economy, the private economy. and printing money through the fed. if you think about, printing money through the fed is very good if you're a speculator. it is not very good if you have no money to speculate with. that is the problem with this economy. have and have-not economy. the press never called the president on this. one thing that ronald reagan, bush, he doesn't care. he has an overarching goal which essentially to move this country much more to sort of, european socialist economy. melissa: steve, do you buy this? >> let me, it is interesting. i'm in seattle right now as you know. melissa: we can see that. >> last night we had debate here, we had a debate here at
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the university of washington on raising the minimum wage. like 400 people showed up. and, this is unbelievable. they want to raise the minimum wage in seattle to $15 an hour, not $10. $15. it gets to the point you heard talking about earlier. this class warfare. it is simmering up because people at bottom feel only thing they can do is minimum wage and higher taxes -- >> the worst part about that, steve, there is an excellent economic argument no one wants to hear, when you raise the minimum wage to $15 an hour, pass a certain point, it has a negative impact. poem don't hire you. melissa: cost half a million to million dollars. >> that's what i said last night. melissa: what kind of reception did you get, steve when you said that? did you get booed off the stage? did you gettinged? or dragged out of the theater. >> hung from the highest -- >> actually what is interesting, people who support the minimum wage, most people other than these academics at these whacko universities they admit, some people will lose their jobs.
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melissa: they're okay with it. >> if you raise minimum wage to $15 an hour, people will lose their jobs! >> if it would be nice in the academics lost their jobs? >> that would be a good thing. melissa: from the u.s. to every corner of the globe money is flying around. world, starting with russia where sanctions in the u.s. are impacting miley cyrus and justin timberlake, oh, no. miley was set to perform at a soldout stadium in finland in a few weeks but the venue was owned by russians who were blacklisted by the u.s. government. there she is twerking. charlie loves it. a twitter network is aimed at toppling the local government. they designed a fake network drawing thousands of cuban followers. the plan was to spread dissent among young people in the country. officials will not say who approved of the program or whether the white house was aware of it. landing in the u.k. where
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prime minister david cameron is outraged at the cost of world cup t-shirts. cameron says nike's new $150 england shirt takes advantage of soccer fans and parents like himself will face enormous pressure to buy the t-shirts for his kids. i have know how he feels. next up, did you know you are literally losing brain cells from coat hangers? i'm not kidding. time for medical dollars. toothpaste is costing you brain cells as well. i know. well, that explains it. the reason, you set me up. replacing car side-view mirrors with cameras will cost you less in gas. do you ever have too much money? charlie is just a good sport. what could i do ♪ [ cellphone rings ] hello? [ male announcer ] over 12,000 financial advisors. good, good. good over $700 billion dollars in assets under care.
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melissa: so what would you say if i told you that everyday items are literally killing your i.q.? the national institutes of health says we're losing millions of brain cells or i.q. points because of toxins that are all around us and we can't avoid. here to talk medical dollars is dr. manny, from the fox news medical a-team. i can not believe this. >> actually we lost 60 million i.q. points over the last decade or so. melissa: i can not afford that i need all my i.q. points. i want every single one. >> this is global economy, this is what happens when you have a global economy. you have the uncontrolled utilization of a lost toxins that are necessary for dry cleaning and necessary for detergent making and preserving cans so they don't get rusty and things of that sort. melissa: some of things on the list. this will shock you out there. there are 12 chemicals that are found in the environment. they are, leading scientists recently identified them for
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widespread behavioral and cognitive problems. they include soda cans. soda cans? >> in soda cans, there's manganese because as a preservative utilized to make sure that the steel and inner linings of the can doesn't corrode over time. unfortunately manganese is an essential element that we need for our development but if you, if you take too much of it, it really -- melissa: what is too much? how many sodavery soda can. >> that is different argument all together. but at end of day, preservation of food, that is the whole point, preservation of food carry as risk of exposing us to, you know, to toxins, neurotoxins particularly which basically destroy the functionality of brain cells. melissa: toothpaste is another one. bugs, i i k knew eating bug was. >> pesticides. the pesticides. melissa: apples? >> pesticides. melissa: hangers. >> there you have a chemical used used in dry cleaning which is
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very, consider organic holistic dry cleaning everybody talks about today. it is in hangers. and in the products and in clothing and manufacturing of textiles. and you know, right now a lot of that industry is outside of the u.s. melissa: sushi. i knew sushi was bad. i know there is reason i refuse to eat sushi. >> we still have a huge problem with mercury. the other day we got latest news on autism. 1 in 68 children are affected by ought tim. melissa: from sushi? sorry. i have to control myself. >> about environmental factors affecting pregnancy and therefore perhaps, being part of the problem with autism. you know, a lot of autoimmune diseases that we never saw before. fibromyalgia are related to excessive exposure of chemicals that this global economy of yours is giving to the world. >> not just environmentalists out there peddling their wares? >> absolutely not. melissa: i'm suspicious of these things. plastic is bad for you.
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diapers. >> they want cheap food and things that last forever and get it quick and easy. melissa: i love all those things. >> that will keep the chemists busy around the planet. melissa: dr. manny, love you. thanks for coming along and playing along with me. >> stay healthy. melissa: apparently it is not possible. anadarko petroleum skyrocketing on a new announcement. let's get to nicole petallides at new york stock exchange. >> when you look at an intraday chart of this one, you can tell something happened in anadarko's world and anadarko is soaring 13% on a settlement of pollution cleanup claims much this relates to 2009 bankruptcy. kerr mcgee under umbrella of anadarko, they reach ad settlement for cleanup claims and the stock is on the rise, what it does it takes out uncertainty of this looming over the stock. meantime, anadarko agrees to pay out a total of just over five billion dollars to the plaintiffs. and there you go. so now it's settled and it is
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jumping. melissa, i wash my fruit for the kids but not for myself because i'm quick and running and i really should. melissa: those dry cleaning hangers are killing our i.q. who knew. nicole, thanks so much. before we head to break i had to show this one. this is fabulous and wackiest hotels in the world. this one included. traveling snack lovers can get air doughnut fix ad this incredible sheraton hotel in china. it is 27 floors of doughnut inspired luxury. if that doesn't float your boat, how about the bar by suite at the palms hotel in las vegas? barbie. 2500 square feet of over the top pingness! i never liked barbie. that looks horrible. tweet me if you like this idea. tesla is trying to make it happen. we've got the details. facebook is on the rope. the rich kids say it is so there. "piles of money" coming right up.
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when folks in the lower 48 think about what they get from alaska, they think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. thousands of people here in alaska are working to safely produce more energy. but that's just the start. to produce more from existing wells, we need advanced technology. that means hi-tech jobs in california and colorado. the oil moves through one of the world's largest pipelines. maintaining it means manufacturing jobs in the midwest. then we transport it with 4 state-of-the-art, double-hull tankers. some of the safest, most advanced ships in the world: built in san diego with a $1 billion investment. across the united states, bp supports more than a quarter million jobs. and no energy company invests more in the u.s. than bp.
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when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america. 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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want to show you barnes and noble taking a dive. trader mcnabb the stock exchange, this is about liberty media losing faith in this company. >> absolutely right. john malone of to his old tricks, they divested 90% of bonds and noble announced this morning. stock is down 14%. it has a pretty decent move over the last few months, we are up 85% from lowe's right around $12 to 22 and those are pretty big fullback and the lot of people take john malone seriously and publicly wondering if given that barnes and noble seeing a loss of 50% of sales in q3 whether the nook really has a bigger readershipped, it gives rise to thinking the kindle and the ipad obviously garnering a bigger
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share these days so the stock is under a lot of pressure. melissa: thanks so much. here is something surprising. replacing your car with a side view mirrors with cameras. tesla is one of 12 auto companies petitioning the national highway traffic safety administration to allow the change. waiting to you hear how it will save the money. foxnews.com's automotive expert and jerry levy, thanks to both of you for joining us. what do you think? >> it is great technology. automakers have been working on a quarter century. surprised it has taken this long to push for a change to this regulation. it actually works well. melissa: other mirrors gone? >> you just have a little nuts on the side of the car to carry the cameras, they could be this small, two in this phone and a little display inside the door, in the car where the aerodynamics are better. melissa: what is the downside? i have the backup camera in the
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back of the car. is fantastic, you never bump bumpers with people when you are parking, there must be a downside. >> the only downside is if it is not working you have nothing. your backup camera when your phone broke. melissa: doesn't that bring up a point? the back of camera breaks i can turnaround and look behind and see where i am going. on the side i guess i can look to the side and change places but that is a bigger deal. >> elon musk thought of this and said what we will do is include an emergency set of mirrors in the trunk of the car along with the tool to put the monster you snap them in place if you lost your vision. is a great idea and i like it too. it is good accompanied though his reasoning was odd. one of the main reasons for doing this was to save fuel costs because of lower drag. unless you're doing 120 miles an hour, the whole time you on the
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car you won't reduce drag that much but the idea is good and does increase visibility so almost 20% of all accidents 2012 were caused by distraction and this is one way to keep the view a little closer to you and have a wider range of isn't without blind spots. melissa: those were a lot of auto fact. will every cargo to this? unsurprising caslon would get in front to change it. ntsa is pushing back. >> they encourage this sort of thing because it does improve fuel economy and as good as 5%, could have a major impact. melissa: causing that much drag? >> that much drag. the housing on some of these are pretty enormous. melissa: what is the cost of something like this? the rear view camera ads $140 to the price of a car which is not much. >> that is a little more. you can buy after market kits for $100 now i did you break a
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regular mirror it will cost $50 to get it fixed so once cameras become a commodity they could be cheap. melissa: what are more applications of this technology? what will get replaced over time? what is the car of the future? >> it is tough. i am a pilot and always looking for new technology in my aircraft not for the critical stuff but gps and fracking, what we can look for from the car companies is situation where we are only seeing that with mercedes and nissan and having systems around your car that are alerting you to potential accidents and warning you, they are stopping your car or slowing your car in prevention of an accident. that is where this is going as the roads become more dense and population increase we will need that with everybody twittering on their phones as they drive. melissa: thanks to both of you. up next, is facebook facing the sale? a list to explore.
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u.s. energy secretary earnest money is won't commit to expediting explications to lawmakers today. there are number of issues that need to be resolved before you can get the final announcement on the matter and the sign of the times. the costs of your sandwiches on the line. peanut butter prices jumped 50% each in the last decade. the price of most other food items has only increased by 25%. that is the latest from the fox business network giving you the power to prosper.
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melissa: here's who's losing money today, anyone with a piece of solar city, shares dropping. that is another of elon musk's ventures. he has 21 million shares so he has lost $77 million. a millionaire owner of this los angeles mansion has changed from $100 million making it the priciest homes sale ever recorded in southern california. was paid for in cold hard cash by an unidentified buyer but rumor has it that the philanthropist and king of junk bonds michael milken and about to get a lot more money from the
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rich, our nation's politicians, individuals can give as much money as they want to political campaigns. listen to the detail so you can still only get $5,000 to anyone candidate but you can now give that amount to as many candidates as you want and many say it gives the rich even more clout when it comes to supporting their favorite politicians. using? facebook was really big. so in case you don't know those are the stars of the show. rich kids of beverly hills bashing facebook. the social media giant got 99 problems and that is just one. todd hazleton of techno buffalo, and back with us as well, obviously those ladies are passion style icons and to the loving them for the wrong reasons but if they're going on
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tv saying how wame face book is an don't want to be honored and their parents are on it, sort of bad news for facebook. >> it is bad news because of the isn't school doesn't mean people will stop using it. because facebook is a private thing i can bring it on my phone and access it all the time but i agree it has turned into a waste been a bad. i hate the advertisements for games. i don't like seeing people complain. people are just attention seekers, and really what they talk about, t is the facebook own company. melissa: used to be the thing they did all the time to keep tabs on each other but then it becomes something you do every interact, that is a lot of people's experience on top of that, you have cheryl sandburg's selling half of her stake in the company which tells you, it may tell you she is leaving, it may tell you she thinks the stock has topped out. >> maybe she is looking at other opportunities in terms of revealing what she wants to do
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next. plenty of rumors, so much competition, whether it is twitter or youtube, there are so many places for the audience to go, the audience has so many things to get their attention that it is a fragmented audience and it is harder for facebook to stay competitive. melissa: there was a break a letter to facebook saying it was lining, once a social network, but all about the money. the only way to get any traction is people realize that and advertising, their bottom line, it is not worth it. >> we have a brand on facebook too. when we push out we expect people to see them. if we want to see them. and -- melissa: that is one of those
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things, i get on there, and hard to quantify. how are you able to quantify when things are not being read? >> the percentage of like going up or down, and the problem is the ones we pay for do very well and the ones we don't pay for don't do well and you are not guaranteed to find success. depending how much you put in it is a gamble. that makes me feel better about facebook like they found a way to monetize what they're doing like the only works if i pay them so i have to pay them. in the short term for the long term that might annoy lot of companies and they might walk away saying we are not going to deal with you sell i think facebook is about from what i can see there is throwing things against the wall seeing what sticks. seeing what is going to be the next big thing because perhaps they realize they are in a space that you could be the hot company to david three years
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from now, facebook, that is a potential thing that could happen to them. >> i agree with that but before we say facebook, usage figures are up 60% in january. i don't see that going anywhere. people will use the service. it could stand for a redesign. maybe news in one area and instagram in another area where photos are shared so users want to go to facebook as opposed to right now i don't even go on. melissa: a read the fine is really difficult with a site and a company that has become so big. anyway, thanks to both of you. appreciate it. before we get a sneak peek of "countdown to the closing bell" check this out. the first time ever armchair travelers can visit cambodia by opening google maps. one of the most famous jungle ruined in the world and google captured 90,000 panoramic images of it. not the usual way.
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this could the normal street and sent truckers with tripods on foot. you may remember angelina jolie getting sweaty for tomb raider movies. this is cool. liz claman is up soon. what is coming up next? liz: i always wanted to be angelina. chilly in the first to rader. so many reasons. melissa: what is coming up? we watching the markets. in the last couple minutes the nasdaq has started accelerating its losses. keith mccullough has come out with a note looking at screaming warning signals the markets and giving, stay tuned, we will get him on the phone quickly. there is the sector that has scream tire speaking of screaming, 3d printers, we talked about this. fox business exclusive, 3d systems, this stock a, 370% over the past two years. a 3d printing convention in new york, he has brand new printers
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that are cheap but less-expensive. he feels it is the next new thing, and hewlett-packard jumps in and tries to steal some business, we will continue the high frequency trading battle and discussion here, two taught guests, better market ceo and president. along with charlie gasparino joining us to talk about whether this needs to be banned or regulated or nothing. melissa: sounds like a great show. next up if you are looking for a summer vacation recommendation you have just the property for you. it is only half a million dollars for three months. what a deal. you can never have too much money. [ male announcer ] what if a small company
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melissa: despite good news for pandora investors are not liking the sound. nicole petallides standing by the stock exchange. nicole: as you delve into the numbers you will see good news and some not so great news. the one good thing i would say is listeners of pandora who are dedicated pandora listeners are loving it and listening more and that is the great news that they have gained some market share and it is up to 9%. the active listeners we have seen is good news up 80% but the growth of listeners month over month is slowing and that left some of the analysts wary on this one. and 5% for the moment.
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over 130%, listeners are listening more and more. melissa: time for some spare change. another summer getaway. cheryl casone in the hampton to show us how. a little spare change for that place. cheryl: a little spare change but there are a lot of ways to spend your change, the chandelier behind me. we took some pretty pictures, we show you the ground and everything, and $12.9 million, and if we want to rent it for the summer, just $550,000, that is from labor day, a little spare change. earlier we spoke with tim in davis, this is his listing and asked him how do you convince people to spend their spare change? this is what he said.
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>> we are in close proximity to southampton village, easthampton village, you are close to the ocean as well so from the buyer profile about wanting to be here that gives them the location and one of the best locations. melissa: one of the best locations, give this public you're scared change. and you have those japanese quince for everything, automatic and all kinds of things. this is one of those willis wakulla controls, fancy electronic gadgets open up for me. good lord. let me bring you into this. this is one of the -- not even the master suite of the house but one of the main sweets on the upstairs level of the home and i wanted to leave your viewers with this. is a beautiful view. the ocean is this way. the ocean is this way. there are a few celebrity neighbors.
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jimmy fallon was in this area. melissa: that is one of the bedrooms. there are seven in there. un die and five other friends, $70,000 each for the summer, all of a sudden having more and more affordable, thank you so much. we can get it done. cheryl: we are working on liz claman. melissa: another day another bubble. today's pick, what is going to pop next. you can never have too much money. [ chilen yelling ]
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[ telephone rings ] [ shirley ] edwa jones. this is shirley eaking. how may i help you? oh hey, neill, how areou? how was the trip? [ male announcer ] with nearly 7 million investors... [ shirle] he's right here. hold on one sec. [ malennouncer ] ...you'd expect us to have a highly skilled call center. kevin, neill holley's on line one. ok, great. [ male announcer ] and we do. it's how edward jones makes sense of investing. ♪ (agent) i understand. (dad) we've never sold a house before.
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(agent) i'll walk you guys through every step. (dad) so if we sell, do you think we can swing it? (agent) i have the numbers right here and based on the comps that i've found, the timing is perfect. ...there's a lot of buyers for a house like yours. (dad) that's good to know. (mom) i'm so excited. melissa: we are letting our experts predict where the next bubble will be. s effigy alternatives, where do you think it is?
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>> it is in sino real estate market in general. it will create about -- a lot of other bubbles but considered china construction as the proportion of gdp rivals that of ireland and spain at its peak. if that is not scary enough chinese gdp is 20% made up of the broad real-estate market compared to the united states 5%. 40% of all income received from real-estate goes to support chinese local government. if that is not bad enough, 80% of collateral held by banks from banking trust products in china is real-estate. imagine if we have -- melissa: before we run out of time the government is obviously invested in pumping up this economy. they have always managed it. the state council announcing yesterday a big stimulus plan, railways, low-income housing, tax breaks. they haven't said how much they will spend that they are committed to not letting this
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bubble burst. you don't think that will work? >> i hope it does work. they are taking the pain right now but the fact is this bubble has been blowing up four five years. you cannot have a sustained slowdown of growth and credit. that is another bubble that goes side-by-side with real-estate when the cost of capital exceeds the slowdown we are seeing in gdp. right now us third of the private sector in china is using shadow banking, borrowing money, cannot be sustained. melissa: you are pointing to something that is making people nervous. what are the ramifications in the u.s. and how do you employ yourself? >> the ramifications, the local currency due to capital flight, a big slowdown, causing the equity markets around the world to have an enormous correction if this should happen. the only way to protect yourself is make sure you have of
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volatility reduce her in your portfolio. never be able to guess when the bubble will burst. may be managed futures of 6 product. something that will absorb the volatility. melissa: ron point, what do you think of that? >> the bubbled in the housing market, it is hard to say. the area inside with some much construction but areas that need that construction and they are short. understanding vote metrics behind the chinese figures in the last box. he does make a point about the shadow banks and unregulated lending. that has a lot of people worried where the bottom is with that and how that turns out for their economy. melissa: it would have a huge impact on equities in the u.s.. only a couple seconds left. >> in terms of exports too we are exporting, helping with construction materials. take a hit as well. melissa: thank you so much. that is all we have now. i hope you are making money
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today. we are looking at a market, the dow down 30 points. "countdown to the closing bell" starts now. liz: markets ablaze, stocks near record highs, the economy is still dragging. are we heading to the pullback millionaire george soros is predicting. stocks keep going higher and higher. we debate how to play the market no matter what the big jobs report. a boat, a car, even a house. is there anything a 3d printer can't do? the 3d printing expo kicks off in new york city, fox business exclusive with the ceo of 3d systems here to showcase what his brand new 3d printer and other innovations can do. plus local out range over the price tag for 90's world cup soccer, now even britain's prime minister is weighing in. it is it u
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