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tv   MONEY With Melissa Francis  FOX Business  May 5, 2014 2:00pm-3:01pm EDT

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unlikely best-seller, giving a punch to the gut of traditional free market thinking. judge andrew napolitano and charlie gasparino are here to fight about it. and not too booing to jail. attorney general eric holder is reviving memories of the financial crisis. his new threat as the justice department moves closer toward criminal charges begins banks. a hot new comedy so spot on, tech titans can't al ford to miss it. alex berg joins us in studio to explain why all the favorite billionaires are tuning in. even when they shea it's not it is always about money. deirdre: it is an economic proposition bold enough to make karl marx blush. impose an 80% tax on income the, starting at $500,000. that is one of the recommendations in economist
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thomas pikety's new book, capital in the 21st century. it is inspiring serious debate on income inequality. here our own charlie gasparino. and senior judicial analyst, andrew napolitano. you can't get the book online. it is sold out. everyone is talking about it, in my humble opinion it is complete outrage. >> i'm reading it. we should point out this started. i sent an email through fox business and said this book which is essentially das capital revisited, which is karl marx famous treatise of communism is talk of mainstream media. legitimate business -- deirdre: everyone is talking about it. >> we need to address this was i only one that responded on sunday afternoon? >> i think so. >> you were irate. >> emailed me back and forth about theories of economic activity on sunday afternoon. -- picketty. deirdre: you guys are dull. setting that aside. this is incredible this taken
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off. it tells you how society is thinking about. >> or tells you how media -- >> tells you how the elite are thinking. >> elite media. >> harvard university, director of harvard university press this morning said this is the biggest best-seller we had since john rawls, theory of justice. most people watching us now have never read or heard john rawls "a theory of justice." this is idealogical academic think-tank book. deirdre: is it dangerous. >> if you follow him it is dangerous. if you understand him and believe him it is dangerous. no way he will get political support what he wants to do. >> the reason why i think it is dangerous, how serious it is being taken in the mainstream media. would you think logical, business and economics reporters at "new york times," at "the economist." and financial times, you name it, not msnbc, cnbc, would be saying, would be outraged that a communist is calling for these sort of things which is stealing wealth. --
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deirdre: 80% tax on people that make over $500,000. doesn't matter what it does to the economy. it is about stopping those incomes and stopping that kind of payout. >> $500,000? that is not warren buffett land. we're talking about people that start businesses. that basically not inherit business. start business. he wants to take half their wealth. >> foreign economist he is amazingly ignorant what would happen overnight with this type of confiscatory tax. doesn't want it, doesn't want it for redistribution of wealth. what does he want the government to do with it? deirdre: i have to play the devil's advocates. he make as couple interesting points. one of the central claims is greater return on capital is greater than return on almost anything else. that is when you get into really big problems. that is what is going on now. when money makes money better than anything else we get the dramatic income in equality. are we not steering ourself some sort of insurrection down the road? with this gaining this much popularity there is threat.
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>> i read anna a kenna, face bay foretells the russian revolution. where he is calling for, the masses being subjugated by very rich. we don't have that right now in this country. >> we have to go to topic number two. hang on. you are never big enough to be above the law. attorney general eric holder releasing a video warning big banks that the justice department is not afraid to come after them. holder backtracking from his remarks last year where he argued penalizing big banks could harm the economy. >> says in this video, i thought it was very thoughtful. i've been a harsh critic of his. this i respect him. indictment of a bank. indictment means nothing. not evidence anything. a grand jury would indict a hand sandwich with prosecutor asked them to. the filing of indictment of a bank, could trigger such negative regulatory reaction for the bank it could put them out of business. >> it does. >> government does know that. they can't willy-nilly indict a
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bank. it can indict a banker but not a bank without catastrophic effects on the economy. deirdre: what does it tell you? >> tells me they read "the new york times" sunday magazine yesterday about how few people have been indicted in the financial community. tells me they're getting pressure from politicians -- deirdre: what crime do you think they're talking about? >> the guy who wrote the piece,. >> he is east singer is good friend of mind. the point i make. why do they go after insider trading vehemently. they didn't want to spend going after people with big banks whether they lied -- deirdre: do you think anyone belongs in jail because of the financial crisis. >> would be very difficult for government to prove that. deirdre: charlie, a lot of people on main street think nobody went to jail for -- >> i'm torn on this -- deirdre: really. >> half of me says, that when the ceo of merrill lynch or whoever, they all did it says, our liquidity is fine. we have a lot of money in the bank. we're not going out of business and two days later you have no
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liquidity -- deirdre: you think that is criminal? >> pretty damn bad. people bought the stock when he said that or didn't sell the stock. >> the level of knowledge an intent that the federal government would have to prove, it is not sure it can prove it. it is not supposed to indict unless it is sure it has the goods. deirdre: top pick number three. from al qaeda to bitcoin, the department of defense is investigating bitcoin as a possible terrorist threat. the government says the anonymity of the viral currency poses a couponings concern. you're both saying, you're exasperated. is there a real risk? the point to be anonymous. doesn't that help terror? >> asked to investigate bitcoin, not the justice department, not the fbi, the defense department of the defense department is not in business of exercise of investigating potential economic crimes, unless you want to scare the daylights out of people from performing an act that is perfectly lawful. deirdre: so you call it terrorism. that is way of getting rid of something you find threatening for another reason? >> i don't think it would work
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would the bitcoin folks because they are you willer at this le devoted to it. deirdre: what do you think? >> high frequency trading one of the lastings i need to worry about. deirdre: terror an bitcoins. >> am i missing something here? >> they're my people. they're serious libertarians. they're not terrorists. they're just trying to find an economic and efficient way to exchange goods for services. deirdre: do they have a point though? do they have a thread of a point here. that if the whole point of bitcoin is to transact anonymously it is rife for use by terrorists, by criminals? sort of sets itself up to be perfectly suited for that. >> if the government feels that way they abolish cash and if they do that they will be voted out of office. deirdre: cash can have fingerprints. >> that is not how they caught usama bin laden by the way. >> you don't cash people -- >> how did they catch usama bin laden? how did they catch them through financial transactions? >> they did not. >> if they know how to hide the stuff, i don't understand this. deirdre: do you think they will be successful. >> defense department
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investigating bitcoin? deirdre: the government shutting down bitcoin because they doesn't like it? >> no, i don't think they will be successful. i don't think the defense department will find anything even remotely resembling terrorism. deirdre: if they have a lead that terrorists are using bitcoin, okay, then investigate it. but if you don't, this is harrassment. >> of course it is. >> thanks, guys. >> pleasure. deirdre: very spirited as always. tensions running even higher in ukraine. reports of explosion and gunfire after a weekend of violence. we're live on the ground. the target data breach claimsest victim. this time the ceo himself as the company turns on its own management. more coming up. ♪ ♪
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♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim from td ameritrade. deirdre: look at tyson foods, the largest u.s. meat processor, taking after weaker than expected quarterly seas. this is bad news for your bacon. let's go to nicole petallides at new york stock exchange with more on this one. that is an ugly chart. >> indeed. if you're a shareholder you're less than pleased. you're looking tyson food,
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melissa, the stock is to the downside. the good news that they said profit more than doubled in the latest quarter however, the reason they are to the downside, we've seen strong demand for chicken, but going forward, they do have growth worries. they have seen weak results in china. this is huge company. the largest u.s. meat processor. when you look at expenses they are facing those are on the rise. they have been facing a a virus in the piglets. they're trying to outweigh that because some animals have been heavier. so that reduced that to a certain extent. but the virus is also problematic. you have weak demand out of china. it is number one loser in the s&p 500. not a surprise because the stock is down 10%. >> thanks, nicole. target aiming its "bulls-eye" on ceo gregg steinhafel. the ceo stepping down in the
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wake of massive data breach over the holidays. what is at work here? we have marketing maven bruce turkel and scott news contribute -- fox news contributor scott martin. what do you think led to this? it was not just because of the data release. >> this is black vortex that started last year. it is not just canned credit card breach but canada. it is material weakness in the business. time to cut bait and start with a new guy. deirdre: scott, does it make you hopeful for the stock? it's a favorite and dear american brand. >> for now it is, melissa. it doesn't make me hopeful because i frankly don't like retail here. we got a lout of our retail exposure the last couple months because something frankly happened to the consumer. sossi was right. canada was a terrible investment. minneapolis where they were based they had tons of signs this was going on.
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did nothing. waited to tell everybody and everybody got pissed off and didn't shop there anymore. everybody left target after they gotten hack when it was safest place on the street to shop. they went somewhere else to shop and. deirdre: bruce, i never need ad company that needed your help more desperately than target. help them please. >> online world put a target on this man's back. it is happening across the board to retail and happening here. they have to deal with it. they can't let these sort of things chase customers away. they have to make it clear. deirdre: it was just the tip of the iceberg though. if you ever, i'm an avid online shopper. i love target. i am perfect customer. i avoid the website like the plague. it doesn't work. the stuck takes forever to deliver. it cost as fortune. they have a lot of big problems that need to be solved. brian, where would you start. >> potentially thinking of getting out of canadian business. deirdre: calling retreat? >> i don't want to see another
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target lifer come to the position. a guy with international experience, considering getting out of the business by 2016. we have sources feeding us pictures. it is brutal on the ground in target canada. deirdre: if they go outside, they could repeat the ron johnson nightmare at jcpenney, where you get someone outside so great in marketing and new and high-tech and drives the company even further into the ground. who is the ideal person to come in and turn this around? >> finally, ron's probably available waiting for a call. deirdre: probably. >> i think to brian's point -- deirdre: should they hire him. >> i don't think so. i think his track record is proven for itself. i think you need to bring somebody in a little younger more after, electronic than online, maybe more presence. let's face it. as sossi mentioned stores don't look in canada. stores don't look good here. you have to change the overall face of company. rebranding, if you will, bruce turkel. they need to reinvent themselves. not do more of what they have been doing. deirdre: bruce, real quick your
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success for them. >> bring online guy that seems excited to have physical dimension and build experience. it is about experience in the store for them. deirdre: okay. thanks, guys. from the u.s. to every corner of the globe money has been flying around the world today, starting in italy which has been hit with some of its worst flooding in years. after non-stop torrential rain, whole streets were turned into fast-moving rivers and taking with them cars and anything else in their path. police and fire service, helicopters have been coordinating rescue operations as more bad weather is expected this week. over to denmark where hotel has been banned from accommodating only women on one of its floors? the sky hotel offer ad pink ladies only zone where females were pampered with extra security, plush decorations, extra large hair dryers, full-length mirrors. sounds like heaven. the hotel claims it had no idea it was discriminating against men and agreed to open up the floor to the opposite sex.
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hmmm. landing in switzerland where the world's biggest watch maker is furious with apple. swatch says apple is getting too close to comfort by registering the name i-watch undoubtedly very similar to the swiss firm's iswatch brand. they have no plans to go to court but consulting with authorities around the world. i feel a court battle coming. pain at the pump. if you filled up your gas tank lately you know what i'm talking about. the gutsy call on prices from gas guru tom kloza coming up next. quitting 2.0 style. forget two weeks notice. workers are opting for their two section of fame. the rise of viral resignation. would you ever do it? tweet me. tell me what you think. i wouldn't. ♪ (mother vo) when i was pregnant
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deirdre: with further unrest in ukraine pro-volusia shun militia are fighting ukrainian troops in the eastern part of the country. reports of explosions and gunfire throughout the day. we have latest developments right now from our very own fox news foreign correspondent leland vittert who is live from ukraine. leland. >> reporter: hi, melissa. this really began as an insurgency and is now spiraling out of control, getting closer and closer to a civil war. we went up to the battlefield. got back a couple of hours ago. it is clear that this reach ad new level as both sides, ukrainians and these pro-russian militias are bringing out very help weapons and both will tell you they are in this conflict to win it.
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this is the last ukrainian check point before the pro-russian strong hold of. this is first time we've seen the ukrainian army try to lay siege here. they're checking every car, turning number of them around. five armored personnel carriers in fighting position. soldiers appear to be heavily armed and certainly on guard. give us a sense of battlefield that right there is the town of sloviansk. we've seen helicopters from the ukranian military. over there is the television tower that the ukrainian military overtook. the question going forward and guys set up ready for battle will move into the town where clearly as, the pro-russians have said, it would be a long and bloody battle to retake that town. so far there have been casualties on both sides as this
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battle continues. there are estimated 800 or so pro-russian separatist its inside that town, well dug-in, held up. the ukrainians lost a helicopter that was shot down. obviously, melissa, the ukrainians are walking a fine line using enough force to take back the country but not using so much force they exist russian troops staged on the border, 40,000 of them awaiting an order to invite, a pretext for vladmir putin to give them that order. deirdre: wow, leland, stay safe. thanks so much for the report. gas prices starting to step on the brake after rising earlier this month. prices are slipping a few tenths past few days. is it enough to we're past the peak? we have tom kloza, gasbuddy.com analyst. people are very frustrated but seeps like prices are going through the roof. is it over? >> i think it is over for the first eight months of the year. we've seen this movie before and
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usually plays out where prices overreact to the upside in the spring and they drop as driving season comes at hand. i don't think you will see a drop where you buy a pleasure boat or whatever but i think prices memorial day weekend will be maybe five or 10 cents lower than we see now. they will be actually lower than they were last year which is consistent with more oil, more refining. >> but that is not the end. we could see them spike again into the sumer? >> i think there's a danger later in the summer. in third quarter when you get into hurricane season there is couple of things. we have so much gulf coast refining capacity now vulnerable to storms. we also export a lot of gasoline. so storms can have kind of a double impact much more than they did, let's say when katrina or rita came in in 2005. deirdre: the federal government is talking about a plan where they create a gasoline reserve. everybody knows we have these oil reserves. they're not actually refined products. in a real crisis where there's a storm, does it help you that much because you still have to refine it.
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is this a good idea? do you think we should do it? >> it is not a bad idea. it is mostly driven by politics. actually to have extra gas on hand if you have a superstorm sandy it is not a bad idea. it looks like regional politics in the northeast. my hunch if we need extra gasoline we might need it at the gulf coast. deirdre: right. >> when you're talking about emergency vehicles they use diesel. you would need a diesel re. deirdre: thank you so much. -- melissa: thank you so much. many remember how this girl very tub lickly quit her job in a blaze of glory. do you remember this? she inspired a generation of workers to do just that. in fact more than half of people now want quitting their job to be a viral event. meaning not only do you want to get even, when their bosses but you want to do it on social media, for the world to see? i had to bring bruce turkel in for a second back to talk about this. what do you make of this? would you recommend it?
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>> you didn't get my facebook post that quit. melissa: stop it. i don't think that is funny, bruce. >> believe it or not, thank you for that. this is directly related to what just happened with sterling and the clippers. these are people who grew up online and do not have a traditional sense of privacy. because think of the stupidity. you feel good. you quit. you let the whole world know. the next employer does a search on youtube, finds you virally flaming the people you used to work for? what is wrong with this picture? melissa: any way to spin it the right direction? you're going for what kind of job where this might help you? must be something? want to be producer of some type? i'm grasping at straus? help me out. >> i'm guessing if paris hilton or kim kardashian's job is available you could do that. maybe you say how great your employer was looking forward to your next opportunity. short of that i think this is
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really bad idea. melissa: thanks so much. when life imitates art and vice versa. this is breakout hit. silicon valley ripped from real life. we have executive producer alex berg is here. flight from fancy. mind blowingly luck luck sure flying apartment and bathroom, butler, and chef. "piles of money" coming up. ♪ i ys say be thman with the plan
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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 or men with prostate or breast cancer. women, especlly those who are or who may become pregnant, and children should avoidt where axirons applied as unexpected signs of puberty in children or changes in body hair or incased acne in women may occur. report these symptoms to your doctor. tell your doctorbout all medical conditions and medications. serious side effects could include increased sk of prostate cancer, worsening prostate symptoms, decreased sperm count, ankle, feet or body swelling, enlarged or painful breasts, problems breathing while sleeping and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, common side effects include skin redness headache, diarrhea, vomiting, and increase in psa.
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ask your doctor about axiron. melissa: gold looking pretty right now, up nearly half a percent on the day. let's go to alan nessman at the cme, what is driving it today, alan? >> well, i think partially it's because of the dollar weakness. some people are using gold as a hedge to flight to quality, but i'm looking at gold to appreciate just because it's a beaten down asset that has
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value, and it's really the sentiment that's been so negative. it's been long forgotten. and i think the we get back 1400 at the midpoint of this action, i think we're going to push above that and make another run to that breakout area of 1600 from last fall where we really fell down. melissa: elon musk hates it, doesn't make an algorithm to figure out that everyone in tech and everywhere else is talking about it. hbo just renewed silicon valley for a second season. here is a look. >> we lo the name -- love the name pied piper, it's a classic fairy tale. >> i looked it up, he murders children in a cave. >> it has all that going for it, richard, and i still hate it. richard, if we are going to change the name, we need to do it now. names stick. my name's jared because gavin called me that on the first day. my real name is donald. [laughter] melissa: friend of the show, executive producer, alec burke.
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it is hysterical. you're not going to laugh at your own work. >> no, no, intellectually it's funny. melissa: it is. it's the show that techies love to hate because they like to point out what techie you got wrong, right? >> yeah. well, i'd say about 95% of the reaction we've gotten has been it's spot on, and about 5% has been people snackerring about how it's -- snarking about how it's dead wrong, but then the other 95% turn on the 5% and attack them because it's making fun of you, and i just sort of stand back. melissa: and it's wonderful. you can sit on the sidelines and enjoy. >> let them do their work. melissa: you are here in person because you are a tech crunch disrupt, which is ironic because the show this week is very meta and then you guys are there. what's the reaction been like? >> at tech crunch? melissa: yes, the real one. i'm so confused now. >> there's a weird thing about tv, i don't understand the power of tv.
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billionaires who can control the world, all of a sudden i'm on the tv. just super excited. everybody's excited about being on t. melissa: we've sort of set up a whole business around that here at fox business. i don't know if you noticed that, people being excited about being on the show who otherwise could buy and sell us on a daily basis. so the reaction, did you think about crowd funding just for fun, like raising money and throwing a party? i bet you could trick people into giving you money. >> where were you a couple of days ago? melissa: oh. there's still time. you have received some criticism, there aren't a lot of women on the show. >> that's true. melissa: what's up with that? >> well, plans are afoot. we're early in our run, ideally -- if hbo's listening -- we'd like to do many more episodes. this is about a group of guys who live and work together, and they work in a business that they're software engineers in silicon valley. that job is held 87% of the time by men. melissa: yeah. >> so it is a male-dominated world, and we happen to be
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looking at a group of men who live in that world. melissa: it has nothing to do with, i mean, you're a seinfeld alum, you got a little bit of criticism around seinfeld, elaine's only half a girl. i mean, she's really one of the guys. >> three-quarters. melissa: i don't know, is this the way, like, a buddy comedy works for you, there aren't a lot of ladies around? you like ladies, you're married to one, i know that. >> are i am. at least for now. melissa: right. >> no, i'm, i would love to get more women in the show. i'd like to get more women in my life. [laughter] melissa: ask your wife about that one! you do have the one girl, the peter gregory assistant. she's hot in the techie/nerd kind of way, like at ucla, no one would call her back, at arizona state she wouldn't even be included in parties, but in this show she's a goddess. >> your words. melissa: i know. is that how you capture her in. >> first of all, everybody's referring to her as an assistant. melissa: what is she? >> she's not an assistant, she's
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a partner at a venture capital firm. >> she gets him, like, coffee and stuff. she seems like he's doing his bidding. no? i feel like she's dealing, sitting on the burger king burger. >> sexist. melissa: okay. yeah, so the show got renewed, this is fantastic. >> yeah. melissa: what can we expect next season? >> we have to do it again. well, i mean, the place we start with every story is what would actually happen to a real group of people who are doing this, so a lot of the questions we're asking now are what would actually happen to these guys if season one had happened, and where would they go -- melissa: mark an degreeson is addicted to twitter, he might be able to help you with ideas because he likes to talk about your show a lot. from the fictional silicon valley to the real one, tech giants courting politicos and celebs with some of the biggest ragers at the white house correspondents' dinner this weekend, better known as the nerd prom, does this surprise you?
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you've got google and all these guys at the white house corps responsibilities' dinner? >> i think it's ironic because nothing has done more to undermine the standard of journalists than the internet, and now at an event that is ostensibly supposed to honor and laud journalists, the very people who have stomped their newspapers to death -- pel mel and the journalists go to the party. >> yeah. here's a cosmo, here's an oily crab cake, we're sorry we ruined your life. melissa: yeah. i've gone years in the past, and it always strikes me how many people there are not white house correspondents. almost no one at the dinner is -- >> there any left? melissa: i don't know. alec burke, thank you very much. so it's the kind of enterprise you wouldn't want to tell your folks about. how a so-called hook-up truck went to a legit business venture, sort of. the end of the day, apparently it's all about "money." ♪ ♪
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up. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying
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and tomorrow we will up it yet again. ♪ ♪ >> i'm melissa francis with your fox business brief. liz claman has been speaking to the biggest names in her weekend with warren. she's been talking to buffett himself about the kind of people that will be leading berkshire hathaway in the years to come. >> but right now they're male
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and they're interim, and i think it's a virtual certainty they'll be internal forever. melissa: sotheby's has agreed to give a hedge fund three seats on its board. the auction house will also terminate its so-called poison pill which prevents activist investors from owning more than 10% or more of the company. and another recall hits gm. the automaker is recalling tens of thousands of suv models including the buick enclave because of inaccurate fuel gauges that could cause vehicles to stall and crash. that's the latest from the fox business network, giving you the power to prosper.
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melissa: flying in style, an overseas airline unveiling the ultimate luxury in modern travel, a three-room upper deck cabin that even includes a butler. i love this. 125 square feet sliced into three rooms, hmmm. that sounds a little tight, yeah? >> if your worried about how big it is, melissa, i'm sorry to say, you can't afford it. so i would stop worrying about that, just go enjoy it. melissa: yeah. $20,000, although that's kind of what it costs to fly first class right now anyway, so this is sort of, i mean, it looks like a big expense. >> well, it depends who's paying, first of all.
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what i think is genius is they have a $20,000, a room that's $20,000 a day that you're only in for half a day. melissa: yeah. >> but you know what? the point is not that people are going to use it, the point is that people are going to talk about it. the folks sitting in business aspire to this, the folks sitting in coach aspire to business. this is about brand building, nothing to do with how many they sell. melissa: should the devil sell prada? a new study finds that snobby sales people boost sales. do you believe that? >> i believe it in some cases. the people who already feel guilty will think it's something special, but i wonder how do they study? do they have half obnoxious people and half nice people? [laughter] and by the way, the university of wtf said, really? that's how you're going to sell that stuff? melissa: it's like julia roberts in pretty woman, the woman who's so snobby to her, maybe you feel like you have something to prove, well, i can afford to buy this, so you go ahead and do it,
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you feel pressure. i could see that, you know? i go into an expensive store feeling pressure from the sales person. i could see it, no? >> i think it's safe to say that a lot of these brands are sold because people want to show other people they can afford them, either they have the taste or they have the money. so slapping down the black card to show the little salesperson that, hey, this is all about me -- melissa: yeah. >> i think with the right customer it makes a lot of sense. melissa: this weekend the hook-up truck making its way around san francisco, and, yes, it is exactly what you think it is. it's the art -- it's supposed to be part art, but part social experiment. they're charging people $75 to use the hook up truck. sigh. i'll let you take it away. comments? >> well, i think it's wonderful that you put the $20,000 suite -- [laughter] airplane in the same segment as the hook-up truck, because the more people who join the mile high club, and in the other you join, what, the one foot club?
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imagine having to hose it out afterwards. melissa: oh. i thought the scariest part of this story, and that's really saying a lot because there's a lot about this story that's scary, there are plans to franchise. [laughter] i've never met a franchise i don't like until now. i think this is one franchise that i'm not willing to back. >> well, they realize, the article said they're bringing it to miami which i'm not looking forward to, although i would like to do their marketing because there's that great stevie ray vaughn song, if the truck's a rocking, don't bother knocking. it just writes itself, but on some level it's, ooh. melissa: let me give you one other one. this is not related to the sex in the truck thing, this is more about food. a group of diners, they were given the same buffet, and they charged a higher price once than the second time, and the people who had the same food at a higher price said it was better, that it tasted better even though it was the exact same food. what's the psychology behind
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that as a marketer? >> that's the same psychology behind the obnoxious salesperson making the luxury item seem more enticing. it's for people who don't have the discretion or the judgment to make a decision. and remember, we say it all the time, people don't buy things because of what they do, they buy things because of how they make them feel. so if i take you to the more expensive buffet, i feel better, you're impressed, therefore, the food must have been better. melissa: bruce, you always have all the answers. thank you. >> thank you for inviting me, melissa. melissa: wrapping up the last hour of trading this week, cheryl casone's filling in for liz claman. cheryl: i don't have anything as good as the hook-up truck. we've got some great stuff in the 3 p.m. eastern time hour. be you missed any of liz claman's exclusive reporting from ohm omaha, nebraska, we're going to give you the highlights. you can see that on your screen. also we're going to talk about coca-cola and the fact that he abstained from the vote.
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then talking a little cybersecurity and target and the fact the ceo is now out the door, a retail analyst is going to join me and say that this ceo made a lot of mistakes. melissa, my question though is jcpenney got rid of their troublesome ceo, got him out of the news, but it didn't help the company. not sure what you think. melissa: they've got to find the right guy or gal, the perfect person to come in and turn it around because it's still a fantastic brand, but they better do it quick. cheryl, thanks so much. look mom, no hands. volvo gunning for google in the bid for self-driving car for the masses. you can never have too much "money." ♪ ♪ weekdays are for rising to the challenge.
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and ask about all the ways you could save. liberty mutual insurance -- responsibility. what's your policy? ♪ ♪ melissa: whether it's on wall street or main street, here's who's making money today. anyone with a piece of king digital. the candy crush maker getting some sweet love today after a slew of analysts came out of their quiet period and tagged it with a buy rating. shares up right now around 8%. ceo ricardo disa coney benefiting nicely, he's made about $43 million today. also spending a record amount, hedge fund manager barry rosenstein, he just bought the most expensive home in the whole country or spending a record $147 million for this hampton home. the 18-acre property is right
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next to the beach, i would guess, and neighbors include jerry seinfeld. and cashing out, bill gates. not only does he not have the biggest stake in microsoft, but he's on track to have zero direct ownership in the company within the next four years. gates will be selling 20 million shares each quarter. for the past 12 years, he will be down to nothing by 2018. former ceo steve balmer keeping all he's got. he's now microsoft's largest individual shareholder. wow. all right, it's time for a little fun with spare change. there have been many futuristic movies that have shown cars driving themselves. what if i told you volvo is one of the first car companies having consumers test out their new technology in a pilot program called drive me? we are joined today by car coach lauren fix to discuss more in the next generation of these cars. you've actually ridden in one. >> yes, i have. melissa: isn't it scary? >> a little pit initially that he didn't have his hands on the wheel, but we were in georgetown
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doing the test, and people which are on bicycles, which is very common, were a little freaked out. i looked over, like you're not going to drive into me, are you? the technology is there. it could be done today. melissa: i could see making the argument that it's safer and it's less safe. i mean, it's safer because the driver's not getting distracted, you're not, you know, incorrectly estimating how much time it would take you to brake, all that kind of stuff. >> right. melissa: it's less safe because what happens if the computer goes wrong? >> well, on the highway i think they pretty much have a that down. audi's been testing it ask google and mercedes and nissan, so there's other manufacturers out there sharing data. i think from a highway perspective, you might be okay. we use cruise control, we've been using it since, what, the '60s? and we've kind of gotten comfortable with that. when you think, okay, here's cruise control that works for lane change departure, all that cool technology, so that stuff is working but in the cities is where we have problems, blind spots and pedestrians.
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many. melissa: and also when you have cruise control, you're still covering the brake. you're not checked out. and the way they market these cars is instead of having a driver or instead of riding in a taxi or calling a car service or whatever else, you may money to have a driverless car, and you're in the back on the phone doing whatever you need -- that's not going to happen. >> maybe in a movie, but i think the intention is to be in the driver's seat actively ready and engaged in case something happens. melissa: so what's the point? why have it? >> well, the idea is people get distracted. it's supposed to lower insurance costs. however, warren buffett said this week that it actually could be the destruction of the auto industry because when you think about an accident that does occur, whose fault is it? is it the fault of the manufacturer, the driver? you're going to have a lot of insurance willinglation, and it could be just a small portion, but all it takes is a few pretty serious accidents, and things are going to change. melissa: we already
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36 years, and you can see the stock there digesting some news, down just a little bit. two internet heavyweights are working together to take over the world. as if shopping on amazon needed to be easier anyway. they're teaming up with twitter to make shopping so easy you don't even have to leave the social media site. hashtaging amazon cart to any tweet about one of its products automatically bags that item for you. and speaking of shopping made simple, both amazon and google are expanding their same-day delivery service in los angeles, no less. same-day delivery in that traffic? seems very ambitious to me. jo ling kent and scott martin join me now. jo, the hashtag amazon cart thing makes no sense to me, because why would i want to what i'm buying? >> exactly. and let them know you're buying a banana slicer, right? it's weird. it's all about the soft benefits because twitter's not getting any revenue, and amazon's not necessarily offering cheaper prices to attract more people, so if you do share your
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information on twifort, then it gives them more ammo with advertisers saying these are the types of people buying x, y and z. so it's an interesting opportunity, and twitter tells me they plan to keep this going for the foreseeable future. unlike previous deals, they had the american express deal on twitter, you could give a starbucks gift card not too long ago as well, but this seems to be a real push. melissa: makes no sense to me. scott martin, same-day delivery. they're battling it out in california, google and amazon. how critical is same-day delivery? >> i think it's pretty big, you know? you mentioned in the lead-in, melissa, this is about making the shopping experience more enjoyable and easier for anybody because nobody has any time anymore. listen, i think the same-day delivery thing is great. whether it is a banana slicer or groceries because people want to make in in the shopping experiee better for themselves, and these companies are providing it. melissa: all right, i don't like amazon cart but i love same-day
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delivery. thanks, guys. that's all we have for today. i hope you're making money today. "countdown" starts right now. >> the oracle of omaha unveils his inner thoughts on everything from berkshire hathaway's succession plans to activist investing in the first hour of trading interview with liz. she also spoke with microsoft founder bill gates and berkshire vice chairman charlie munger. paying the penalty, target's ceo is out following the big box retailer's giant cybersecurity breach. will his departure do anything to turn around shopper confidence in target and poohs sales? and is it -- boost sales? and is it even possible for retailers to protect their computer systems 100%? and forget about thrones and robots, google goes low tech as it expands its same-day delivery system to manhattan and l.a. in its bare knuckle fistfight with amazon and ebay. but who can deliver your packages the faste

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