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tv   After the Bell  FOX Business  May 19, 2014 4:00pm-5:01pm EDT

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after the pfizer's take it or leave it. >> astrazeneca says no way at least for now. liz: huge drop for astrazeneca. [closing bell ringing] david: a lot of stocks are up. we don't want to seem like there are red arrows because there is not. let's start with one representing small and mid-sizes caps, russell 2000 over a full percentage. the dow weeking out a gain but individual stocks are worth noting what they did on the positive side today, including appleby the way hitting a 52-week high. it is scratching back eventually, to that level. still far away from 700 but well over 600. busy day. "after the bell" starts right now. liz: s&p closing close to session highs, not quite there. but when we were open lower today, it is pretty interesting to see the market break out.
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let's get to today's market action. mark tepper, strategic wealth partners founder and president who is bullish on stocks. we'll tell you where he sees opportunity. we'll take it to the cme we have ron heller. plus as we mentioned the cme's lincoln ellis. let me start with this, lincoln. interesting monday to see this back and forth action. >> we've seen a bit of back and forth last couple days, liz where the market is really trying to understand what is going on in terms of the globe growth numbers and what will be that next catalyst. sawing out of a couple of these large m&a activities has given the market pause to begin to understand the crisis we're seeing in the public markets are making actual prices for transactions being proposed a little bit toppy. i will say today at the close we saw some very significant bids out of the pit here. that probably bodes well for one more test of a higher number in
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s&p. david: mark tepper, you are a bull. but you are worried about some things, you have to if you're a serious person. one thing is inflation. food and gas is way up. i'm wondering if it will cut into retail sales figures. >> obviously when you're paying four or five bucks a gallon at pump it will hurt consumer spending and at the end of the day consumer spending is what drives our economy. it makes up 71% of our growth. that is really a concern of ours. since the 2009 bottom we haven't had to worry much about inflation as all. as soon as we get a whiff of real inflation we're really concerned that the fed could begin to tighten, sooner rather than later that obviously would rile the markets. liz: but, ron, we know that is coming, don't we? therefore if we know that is coming we could at least put that to the side of our plate and figure out what the real meat of the market is. do you see more upside right now? >> in the equity markets we don't. like was just just mentioned, we
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research several hundred companies and we just don't see any top line revenue growth. companies have done a great job on the earnings side but there is no revenue growth and there is no real catalyst for it to go higher. david: lincoln, i don't want to sound like worry warts. it was positive today. we'll talk about positive but divergence there, is nor divergence going on. that is markets, various indices, so forth are separating from each other. you've been noting that. any concerned there? >> this really goes back to mark's point. when you see commodity complex really sort of begin to explode in price and divergence in terms of consumer discretionary and etfs heading south as response to higher prices and see it in other asset class as well, high yield, versus seven to 10-year, big spread inversion there, that is a worry side for equity markets. and the small cap rally extraordinary over the last five
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years has really petered out over the course of the past six weeks and long with momentum selloff in biotech and technology-related things so there are things flashing yellow. liz: i'm seeing a lot of flashing red behind you. is that the e-minis behind you? what are we looking at in that booth? what is going on? >> this is the s&p 500 pit here and a lot of people are concerned very much as our other two guests are where the prices next leg up is going to come from so people particularly looking to hedge themselves particularly after market ahead of fomc minutes on wednesday. we'll get a better picture what type of information the fed has been digesting. david: mark, talk about one of your specific talks that you recommend. you're worried about banks. there is some concern about what is happening with lending. nevertheless you like wells fargo. why? >> wells fargo is very solid pick. for, i'm working with a lost clients successful entrepreneurs. they have recently exited their
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business. for us it is a matter of protecting what they have. providing returns that can outpace inflation. make sure we don't lose their money. the dividends that develops fargo throws off is huge. it is conservatively-managed bank of the banks in general, we're a bit concerned about the direction of the mortgage market but one of the strengths about wells fargo is the fact that they beefed-up both their commercial and consumer loans which we think will help them over the course of the next several years. liz: let me get to ron and talk about your picks right now. because of your perspective the way you feel you really don't see top-line growth where do you find opportunity for people who still want to be in equities? >> well you can find some pure energy plays. we do a lot in the canadian oil sand. so we have some big dividend stocks up there. oil is $103 a barrel for a reason. it is not the energy independence that you're hearing in a lot of the media. we do have real issues on that
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side of the table and again, it trickles down to gasoline and costs on the consumer. so it goes back to supply and demand some we do a lot of research. and, that's what we're seeing. you got to have good dividends and a catalyst to make things go higher. david: well, lincoln, i love the u.s. energy story. it is one of the best stories we have here in terms of growth. "wall street journal" had a take, as well as we're doing here we're not getting a lot of iranian oil. we're not getting a lot of libyan oil. there are real bottlenecks. russia, who knows what is going to happen there. the price of oil is well over $102 a barrel now. is that going to slow down, does that have any sort of danger points as far as the economy is concerned? >> not in terms of the united states. the energy revolution that has been happening here is purely on the natural gas side and that really bodes well for particular convergence, independence away from some of those bottlenecks and that has buoyed the u.s.
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economy in general the last five years and more particularly the renaissance we've seen in u.s. manufacturing and that we could see if the administration or the political gridlock sort of unwounded itself and we got some investment in and around the energy infrastructure in the united states. i think energy remains a very attractive from a long-term dividend perspective as a defensive play that both our other guests are talking about. even if we unlock some of those bottlenecks, energy in terms of united states and for other places you mentioned, david, china, will very much have abu which or demand bottom for the market. liz: mark, that dovetails nicely on your pick of chevron. is that where you see the real opportunity? >> yeah. the energy sector in general is a great place for investors to be looking at right now because it generates 13% of the markets earnings yet only represents 10% of the market's cap waiting.
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chevron in particular, going back to the whole dividend thing we're talking about, is paying a great dividend. it is undervalued, relative not just to its peers but to the market in general. we think it's a great way to pick up exposure to undervalued energy sector. david: we will get notes from the fed. we may hear more about housing. concerns that perhaps speculation is picking up in the housing market. are you worried about that? >> i think speculation is kind of overdone. i think you saw a lot of private equity guys come in to pick up cheap prices. what we're seeing especially on west coast a lot of cash buyers. david: we're seeing -- as well, we're seeing them here too. >> yeah. in our high yield fund we stay away from that. it is too hard to analyze what is going on with the homebuilders. so you know, our biggest sector is again energy and, because there's a lot of opportunity there for energy independence in america. liz: mark tepper, ron heller,
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great to see you both. lincoln, you will come back after the break for the s&p futures close. see you then. david: thanks, guys. some say airbnb is hurting the hotel inindustry and costing cities billions and millions. could it be creating jobs among individual homeowners and apartment owners and spurring growth? we debate that question next. liz: renting is back in a big way. apartments accounted for 40% of housing starts last month. there is lack of apartment space. we're talking to camden property trust, one of the biggest players in the industry. best positioned to capitalize from that. who is benefiting from the big trend. the stock is outperforming this year, up 24%. david: wow. megamergeer monday as at&t buys directv will this be good for the industry and lead to more deals and more importantly will it pass regulatory hurdles? we'll talk with a ceo of a company that works directly with
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at&t and what it means for industry and consumer. liz: join the conversation for us. will this deal mean higher cable prices for consumers or maybe lower? tweet us @fbnatb. ♪. [ male announcer ] what if a small company became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile.
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liz: urban outfitters falling in after-hours trade falling its first-quarter earnings report.
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david: let's see how it did. let's go to nicole petallides on the floor of the nyse. how is it doing? >> dave and liz, i think the shareholders were hoping for more here with the stock in the after-hours is down over 3%. earnings per share missed by a penny. they came in with 2 cents versus analyst estimate of 27 cents. and on revenues, 686.3 million versus analyst estimates of 681.9 million. so they beat on revenue. they had a disappointing quarter and they're also working diligently to regain their fashion footing. also seemed to be struggling with the younger buyers. we talk about the younger buyers and competition in this group, american eagle outfitters and abercrombie & fitch. they are somewhat fickle. they also had to contend with some tricky sort of weather and storms and the like. under urban outfitters umbrella don't just forget it is not just
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urban outfitters but anthropologie and free people that come under the umbrella as well. we'll continue to watch this one. it is trading lower after missing on earnings per share. >> i bought vegan leather legging. vegan leather. i love free people. david: didn't we use to call the fake leather. >> met they are. -- pleather. >> we saw a loss on, thanks so much, nicole. lincoln ellis. they're screaming in the pits of cme. what are they talking about down there, lincoln? >> they're not talking about pleather behind me. i don't see anybody in pleather. look, they're trying to get ahead of this fomc market notes on wednesday. and of course after that, the existing home sales which will give a temperature as to whether or not this housing recovery
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which could produce the next fuel for another leg higher in the s&p is for real. but again, i think, david, your points were well-taken and in your earlier piece. anybody who is getting into the equity markets here is speculating there some sort of clean handoff or catalyst between fed and central bank driven markets. [bells rings] david: that is interesting stuff. lincoln ellis, thank you. >> especially over the weekend it looked like it was firming up, massive merger in the telecom and satellite world today. at&t buying direct v for $49 billion. both ended lower in the session but the company pays $49 a share for directv the combination will -- $95 a share. more than $10 still below that price. david: is this deal a game-changer for the industry and could it open up floodgates for more to come.
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we have dinah link telecommunications ceo works directly with at&t and verizon. so he has some skin in the game with this issue. thank you for coming on, larry. wonderful day. first pull back with an overview. how is this going to change the telecom industry and particularly for consumers. >> i've been in the telecom industry for 20 years this is ground-breaking deal. you're taking major telecom provider to content. content is king. you have to be in the content business. everybody is out there with smartphones and tablets to use content. for a telecom carrier to go out and buy content is huge deal. this is fundamental game changer i believe not just for this deal but other deals. david: for consumers bills go up and down, very simple. >> as far as consumers, you never know what will happen. it will be quadruple play. usually when you see bundles you see lower prices. because of cable deals out there trying to merge, i think you will see a bat elf and i think
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the consumer will wind in the end because of fighting but you never know. liz: you never know. what you do know is the kind of business directv has come. when you talk content, say, directv doesn't create content but they have it. >> yes. liz: but their latin american business has been unbelievable. they have a national football deal, the nfl. this is really a great idea but are you concerned that regulators might be not so much looking at this deal but figuring, now, we've got to think about comcast and time warner as well. if we approve one we've got to approve the other? >> i think regulators will approve both. the reason why i do it is a new world order. everybody is out there now. you're building out bandwidth. you're getting video on mobile. liz: that's fine, but just don't charge us more for it. >> if you're in the cable business, people have to pay to get cable service. liz: gone up for every year. >> yeah. people getting more content and great shows like yourself to get to watch. what will happen this, is total
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fundamental change. i believe it is going to go through because this is the way the world works now. it is video in the mobile, on the go. it will continue to go. one thing i want to mention here i thought it is very interesting there is no breakup fee on the deal. i think dish is like, let me get out of this deal because there is no breakup like there was, at&t had to pay a couple billion dollars on t-mobile. david: they're pretty sure regulators will pass this. >> i think so. my opinion. >> let's ask a management question because you deal directly with at&t. are you concerned they may have some things that they're dealing with with now they can't handle it under one roof? >> i don't think so. i'm not concerned. david: happened to companies before where appetite is bigger than what they can digest. >> maybe at the beginning it will. what will happen they will start shifting from other ends of business on landline service more to focus on the data side of the service which is where you need to be, to deliver the content and future of content. i think there will be a shift in
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powers within the companies to give a more economies of scale to deliver this type of service. i don't think you will see less. hopefully you won't. if they do they are going to get hurt by it. they will lose consumers. liz: looks like a quad play as they call it. >> quadruple play. liz: exactly. internet, wireless, phone service, virgin media did it and they got bought up in the u.k. but it has been very appreciated by consumers who feel they have one-stop shopping issue. can at&t linked with directv beat comcast, you know, time warner cable? >> it is going to be interesting. can they? if they do it right i believe they can. it is possible, time warner-comcast will fight back and i'm sure they will. it is possible and puts them both in great stents against each other. with them against each other the consumer could win on think, larry, thank you for coming on. dyna link communications.
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they dealt with everybody from carl icahn. you name it, this guy dealt with them. organizations banding together to push for tougher rules on regs and airbnb and other short-term rentals. should the sharing economy be regulated? the regulators want to get in there. or will more legislation stifle growth? the debate coming up. liz: a company recalling two million pounds of ground beef due to ecoley fears. we'll tell you which is affected and which state coming up. david: company getting bearish on one market while increasing their bullish bets on another. in fact at the highest levels since 2012. we'll tell you which is which coming right up. ♪. [ laughter ]
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liz: time for a quick speed read of some of the day's other headlines, five stories, one minute. first up "the wolvervine" packing company recalling 1.3 million-pound of ground beef after linked to potentially dangerous e.coli infections. the detroit firm will pull products march 1st and april 18th. google acquiring twitch, a billion dollars. the three-year-old site, that's it, there are-year-old site, turned down a favor of microsoft. disneyland up to $96. single day ticket prices more than doubled over the past 10 years. i remember the e-tickets.
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more than one hundred new words were added to the merriam-webster dictionary. they said they reflect the growing additions of tech and social networking. kraft recalls 1.3 million cheese products that have code dates of may 9th through july 23rd. that is today's "speed read." david? david: liz, it happened a lot recently where technological breakthroughs and innovations run smack into regulations and holding back progress. airbnb, this connects apartment owners with short-term renters who want to avoid hotel costs. this is one of those examples. special interests ranging from hotel lobbyists to tax collectors to legitimate concerns about prostitution are conspiring to regulate airbnb out of business. so who is right? a debate between l.a. attorney and a nyu business professor.
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folks, i'm going to use your first names if you don't mind. i was lucky enough to get through that. thank you very much. arun, let me go to you first, there are some legitimate complaints, particularly among neighbors who say some of these short-term renters are prostitutes and, really pulling down the whole neighborhood, if not the building itself. but isn't this primarily about established interests, the hotel lobby, and the taxman trying to protect their territory? >> yeah, david, i think fundamentally it's a story of economic growth and technological progress stimulating economic growth. i mean you know, the term sharing economy is sometimes misleading because at the heart of this, this is pure capitalism. it's markets, it's free markets. it's pricing. sort of people transacting with other people and so, when there's this kind of disruption, special interests or established
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interests do sort of step in and use what they can to sort of try and make sure that the interests that they have are preserved. david: right. i don't know about you out in los angeles but right here in new york the hotel lobby has a lot of influence with not only the city government but with the state government and they are conspiring, the taxman is conspiring with the lobbyists to prevent airbnb doing what they want to do. there is a conspiracy going on? >> i don't know about a conspiracy, david. look, i'm the first to say we needless governmental regulation in industries but in this particular case airbnb is operating essentially with no regulation. and what is happening is it is creating a host of problems of the it is creating problems for the cities who are unable for the most part to collect any type of tax, from this revenue. it is taking away the city's ability to even zone within their jurisdictions. it is creating problems for landlords who are now forced to assume all of this additional
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liability. that's a liability they never bargained for. it is creating problems for homeowners, neighbors of these individuals. now their property values are going down living next to -- david: hold on a second. i don't know about los angeles. property values in manhattan are not going down, let me assure you. i got to say, again there are legitimate concerns but there are ways to deal with those concerns. for example, there is a law that says if you don't pay your taxes you go to jail. what is wrong with just using that law in order to enforce regulations that aren't being met. >> i think in the short run i would be very surprised if platforms like airbnb actually drive down real estate prices. what we're doing is creating ways for people to monetize assets that they have and this can only push up the value of these assets. i think it is also important that we don't let regulations slow the progress of this industry. because at the heart of it, all of the factors underlying
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platforms like airbnb point to economic growth. they are platforms for sort of entrepeneurship and innovation. that tapping into idle capital and increasing productivity. so, you know, it is natural at this point in time for of the traditional industries to feel that the new models are not fitting into the old regulatory -- david: anna, i got to say a lot of young people taking advantage of this. they're becoming entrepreneurs, individual apartment owners worried about being kicked out of their apartments using this service in order to supplement their income so they can stay where they are. there is nothing wrong with that. >> there is nothing wrong with that i'm all for innovation. i'm all for finding creative ways to make money. in it particular case, you're buying a house or renting a home. maybe you bought or rented that you didn't expect living next door to makeshift hotel.
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there are props with transients. there have been incidents of prostitution, drug sale, drug use. if i'm owning a home or renting an apartment i would like to know whether that area is built for commercial purposes. david: aru in, in new york we have co-ops and condos. that is basically the they are very strict. condos and co-ops have all kinds of rules in regulations some of which i hate to deal with. i live in manhattan. some are nitpicking rules. if a apartment building has a problem with somebody like that, they can outlaw short-term rentals within the apartment. of the democracy on a local level works well, absolutely right, arun? >> some of these problems are better dealt with neighborhood group or co-op rather than state or government level. i'm not saying all regulation is a bad thing. david: right. >> there are certain things we need the government to separate in with fire safety codes, taxis
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making sure there are enough wheel care accessible vehicles but we don't want the government -- david: i will have to cut you off in mid-sentence because we have to go. i have to give anna the last word because i gave arun the first. go ahead quickly. >> i agree with him to a certain extent we have to promote people to be creative to find ways to make money. there is balance between innovation and regulations. we need regulations to address these problems. david: last word. thank you both for being here. liz, over to you. liz: david, owning to rentals, rental rates rising across the country. apartment say canssy hit a near 13-year low. why is apartment living becoming so popular? we're talking to one of the top players in the apartment industry as why people are flocking to renting. where opportunities r you need to look at a stock with a nice dividend and good performance. plus hedge funds are getting very bearish on one particular sector in the past week. we'll tell you what that sector
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is, which areas are actually getting bullish. stay tuned, very bullish.
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a dry mouth isn't. biotene -- for people who suffer from dry mouth. david: big money managers making some big moves in commodities. hedge funds getting bearish on gold. money managers long positions on the commodity fell by 8.3% in the weekending may 13, second time in three weeks they have cut their bullish positions. during the same period short
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holdings on gold rose 10%, the highest rate since february. gold is up we should say 7.6% year-to-date. it may go the other way. there is one area of commodities though that big money managers getting very bullish on, wheat, of all things. investors have increased their bullish wheat holdings to the highest level since november 2012. this year alone wheat is up 11.5%. liz? liz: all the gluten-free we're still up. the demand for apartments specifically has fueled quite a jump in housing starts for the month of april. the share of housing starts considering of five or more unit buildings hit 40% in april. by the way, folks, that is the highest level in more than 40 years. with the apartment vacancy rates at their lowest level since 2001 and rents are on the rise, are you getting it here, we're putting together a perfect storm that apartment live something extremely popular so how can you make money off it? where are apartment builders
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seeing most demand? we asked one top multifamily builder, camden properties we have the ceo and chairman. richard, good to see you. seems like things are looking good at your end of the world? >> thanks, liz. definitely the apartment business is good right now. it has been good for the last three or four years. looks like it will be good for quite a while. liz: what is going on? why the shift in the popularity? >> well, there are a couple of things going on, first the apartment market didn't overbuild during the downturn where the single family market was overbuilt. second, so that lack of overbuilding created a half a million unit sort of the deficit of a apartments that needed to be built that weren't built during the financial crisis that led to shortage of apartments. which driving that is young people are taking 60% of the jobs. people 34 and younger are getting most of the jobs. they're waiting longer to get married and longer to have kids and they want the flexibility.
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liz: they also don't have a huge down payment to put down on some of these. i look, great, how does our viewer make money here? your stock is outperforming the market. down 5% year-over-year. so things in recent times have gotten better. then you've got the dividend, rick, 3.7%. what is your dividend history and do you expect to continue to hike that dividend because it is way better than the 10-year treasury? would i rather go into your company than a t-bill. >> absolutely. we've been raising the dividend every year for the last four or five years somewhere between six and 10 or 11%. cash flow growth this year, we're projecting it to be really strong at 4 1/2%. this first quarter, we had 6.25% same store net operating income growth. when cash flow goes up you increase the dividend. liz: looks like it is not a promise but if we continue along that trajectory.
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you have 170 parties in eight states and d.c. 60,000 units. at what point do you expect to expand to other states? >> we like the portfolio that we have right now. we're in the growth markets in the country. where the average, where the jobs are coming in. that is really what drives apartment demand is jobs. jobs create household formation which create housing demand. we love where we are. we're expanding primarily through development. we have a about a billion dollars under construction right now which is around 4,000 apartments. >> wow. in the end if business is so good can i assume you're hiring and if so what positions? >> we're hiring three or last four years. one of the big areas challenging for us is construction. the construction workers are few and far between. there is a big demand for construction workers for development personnel as well as people to operate those properties once they're built. liz: maybe they left the industry when the crisis
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happened but perhaps there is more opportunity now. rick, congratulations on your business doing well. we like to see that. >> thank you, liz. liz: rick campo, property trust chairman. ticker symbol, cpt. david: hiring folks. look at the website and we'll you where they are. nascar danica patrick is may be losing her novelty since she lost the all-star fan vote but losing novembervillety may be a good thing. u.s. charging chinese army personnel with spying. coming up we'll tell you which american companies were targeted and what the hackers were looking for. that's coming up.
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liz: nascar driver danica patrick, she's so popular. we had her on the show, she enjoyed career best finish this weekend at the sprint cup race but she may no longer be the fan favorite after she unexpectedly lost the fan vote. david: interesting development. is she falling from grace or something else at play? could it actually be a blessing in disguise? joining us lee hawkins, "wall street journal" celebrity business reporter who sat down with danica patrick. we'll run a clip later. novelties, face it, she is first to admit, was a novelty being
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the first woman in this game. doesn't last long by definition. that is what a novelty is. as her novelty being the first woman worn off? is that good or bad thing. >> i think fact she had a 7th finish was really good thing. what we saw laters when the fans didn't vote for her for the sprint cup all-star, we're saying we're used to her. we're used to dan can. she is putting up pretty good numbers, more impressive than last year. continues to get better. david: is that because the novelty is wearing off? >> i think the getting better because she is getting more experience. that's why. the reality are people are not looking her at the good-looking female in the lot the same way as they were before. >> can't be number one forever in the forefront of people's minds. talk about the guy who did one, what is special about him and why did he -- >> there is sort after backlash. the sense danica was the favorite and people want to make
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nascar a meritocracy because she isn't number one. she has been a medium level performer, but, she is number one when it comes to endorsements. liz: remember andre agassi was number one in endorsements but he hadn't won a top tennis match. he had the hair and personality but he wasn't a winner at that point. >> yes. liz: he eventually became one but -- >> we see the same phenomenon with maria sharapova. really that is, personality and charisma is such a big part of this as these companies, godaddy is investing $20 million in her car. they're making a bet that over the next couple of years she is going to come forward and actually win a championship. david: still use her on the commercials by the way, right? >> yes they do. even if she doesn't recoup that that there is this intangible, immeasurable quality they get because of her hyper visibility. the fact that she is, you know, a popular racer and that she is a woman --
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david: good enough to measure up on her own though. i think that is the bottom line question. >> i think more and more we're seeing what with the 7th finish. say over the next year or so, we see danica patrick finish consistently in the top five. that's an argument for her to get her contract renewed when it expires in 2015. i asked her about a lot of the criticism that she has gotten from the men on the circuit. they have been very, very harsh. let's take a look at what she had to say. >> i feel bad for the times that people say things that create such a stir, why does that need to happen? what drove you to, what drove you to spill that information and but i believe everyone's entitled to their own opinion. >> of course, she was talking about kyle petty who said she wasn't much of a race car driver. that it was just all, you know, a flash in the pan. liz: well, she has shown stick few tiff necessary -- stick taught tiffness and it will take
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some time. >> she is breaks her brand into the female demo, the can am spider three-wheel motorcycle is one of the things that she promotes actively. 25% of the new entrants are women. over 40, but she also breaks them into the male demographic and she is popular with the kids. so you get the core base but also get the mainstream. i think that's why a lot of companies want to partner with her. david: my producer will kill me, the clippers, does sterling sell, if so when. >> i think sterling sues. david: sues, >> i think, i would like to talk about this more down the line. he will sue. this ain't over. david: okay. liz: great to see you, lee, thank you very much. lee hawkins, celebrity reporter for with the. is j. david: meanwhile the justice department accusing chinese army workers of hacking into u.s. companies. who exactly was targeted and how is the united states fighting back? liz: and are you tired of having to slather sun block on your
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body and ears and back of your hand like i know every time you head out into the sun. what if you all you had to do was take a drink? david: that's all i do. liz: details straight ahead. ♪. latte or au lait?
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david: the justice department announcing charges against five people in the chinese army for allegedly hacking into a u.s. company for trade secrets. this is the first public accusation ever by the u.s. against a foreign power for cybercrime. liz: itch edison live in -- rich edson, live in d.c. this has to be the talk of the town, rich? >> absolutely. prosecution claims chinese hackers stole sensitive information from and haful of american companies, including westinghouse, alcoa, u.s. steel, solarworld and allegheny technologies. a few of them even hacked into the steel union. they ripped off pricing, design, cash flow and information causing those businesses substantial losses and americans their jobs. prosecutors are prepared to face the alleged hackers in a federal courtroom. though there is a problem. the accused are likely in china.
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to that eric holder says hopes the chinese government plays ball. >> it is in the interest of china to me to be seen as respecttores of the rule of law. our hope will be they will as a result cooperate with us. to the extent we will not have that cooperation, we use all means available to us to ultimately have these people appear in federal court in the united states and in pittsburgh and given due process of american law. >> seems unlikely as the chinese government already denies the changer and adding accusations to hold remember hurting u.s.-chinese relations. holder says the u.s. has a range of options and will employ them to assure the chinese officials will appear and though he fails to name exactly what those options are. following the announcement brought little more than rebuke from the chinese government and widespread political support from members of congress. high level u.s. officials brought their hacking concerns to the chinese government for years. david and liz, back to you.
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david: liz, i wonder how hot this is going to get potentially? we're seeing, we're right on the edge of some potential action by the chinese against sovereign islands that the japanese claim in the pacific. there are a whole range of issues where this kind of thing is very bad timing to come in with? >> right. this is an international relations play of the this is not about putting five device into jail. we'll not get to them. they're in china. this continues a level of frustration the u.s. government had for years with china with this type of activity. they tried to push it behind closed doors. now the u.s. is going public. david you talk about all other international relations things going on with china and where it place with russia and vietnam a lot going on there. >> it will get hot. rich, thank you very much. liz: beach season is quickly approaching but are the days of rubbing sunscreen in your skin and getting into pretzel positions to get it on your back, are those days over? one company wants to make
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protecting your skin as easy an drinking a cocktail. david: drink-a-tan is the name. who is checking out the oculus rift goggles? we have all the details when we go off the desk. ♪. if you've got copd like me... ...hey breathing's hard. know the feeling? copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems,
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david: time to go off the desk. days of applying and reapplying sunscreen could very well be over with the launch of a drinkable sunscreen. harmonize, huv claims to provide factor 30 protection from the sun after a simple bows of
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sunscreen syrup. so sunbathers can stay out longer without fear of getting burned. once ingested the product's liquid molecules canceling out 97% of uva and uvb rays. one bottle costs you under 30 bucks. i don't know what is in the stuff. liz: breaking news, go pro indeed filed for ipo to raise about $100 million. the do it yourself, you know, helmet-mounted cameras that skiers and surfers and skateboarders love to crash all their to catch all their crashes and talent on, will this go public to the level it would like to? we'll watch this very, very closely. david they were sort of the originals when it came to this there was one long time ago tiger eye. go pro is the founder of the business. this is classic for the sports guy but it is going to raise
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$100 million. david: there will be a lot could have competition whether nyse or nasdaq. we'll follow it throughout the evening here on fbn. liz tomorrow exclusive interthrew with bill dudley. gerri: i'm gerri willis, right now on the wills report. how do you get a job at google or facebook or twitter? you're shopping all wrong. why some of us missing out on great deals by not using this simple trick. and meet the brainy bunch, the family with seven kids in college by age 12. they tell us how they did it. you can to. we're watching out for you on "the willis report." gerri: outrage escalating as more whistle-blowers in the veterans affairs scandal. reports of secret waiting lists, treatment delays and

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