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tv   MONEY With Melissa Francis  FOX Business  July 21, 2014 2:00pm-3:01pm EDT

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week. adam, great to see you as always. >> always a pleasure. see what she has to say about it. >> melissa francis, up next with "money." melissa: holding out hope. investors seeming i unfazed as president obama pushes for diplomatic resolution. the housing recovery delayed. a alarming report how much further we have to go before housing prices get normal. the richest man in the world says you should work a three-day work week. but there's a catch. you will be working into your '70s. get ready to pay more. the security fee is going up to pay down the deficit. even when they say it is not, it is always about money. melissa: all three major indices still in the red right now but clawing back following pointed remarks from president obama. the president demanding investigators be allowed access
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to the malaysian flight 17 crash site by advocating for peaceful solution to the conflict. >> my purpose is finding a diplomatic solution within ukraine. i believe that can still happen. that is my preference today and will continue to be my preference. melissa: joining me our very own charlie gasparino. we have diversified financials dominic tavella, director of institute for new economic thinking. marshall your back. you're new to the table. i let you go first. what do you think about all this. >> i would like to be part of the nsa and listen to the conversation between angela merkel and vladmir putin because i think that will be much more morn conversation. melissa: what do you think they're talking about there? boy, this thing has gotten way out of hand. >> i think that is exactly what they have been talking b she has been recalcitrant. she has leverage. she is only person that get him to step back.
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i don't think president obama can do it. melissa: markets taking comfort what the president said, charlie, we'll not do anything. >> this is same old story out of this president. known wants to get involved in a ground war so you take military operations out of equation. russia should be punished. melissa: you have to go hard financially. >> hard financially. one of the greatest things about this weekend is that we can all now agree that this was putin's fault. that, that anybody -- melissa: i don't think putin agrees with you on that. he doesn't think it was his fault. he is pointing fingers at ukrainians. >> that and dollar 50 don't get you on subway. listen to liberal media withhold judgment is preposterous. now he has to pay and if he doesn't pay we keep doing it. melissa: if he doesn't pay with something really meaningful financially and it will hurt
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economy and american economic interests. the show is called "money." the market is the about he will not doing anything. >> reality, europe gets 30% of their natural gas from russia. they're paying double for what we pay, same natural gas. small increase in production, going to these countries will double, triple the price of natural gas. those european economies are shot, gone. >> how about russia? >> they could sell it to china. >> they are selling to china and north korea. >> they have a new agreement with china. offset it to china. they will get hurt but not as bad. melissa: meanwhile geopolitical threats loom abroad, it could be earnings season here at home. that is driving market. netflix, apple, microsoft, facebook, amazon among all big names reporting this week. dominic, what are you expecting? it is tech week. we don't want to forget. >> at least up until now earnings have been good. surprising more on the upside than the downside. i still think the geopolitical events are going to take the headlines and maybe soften good news. melissa: they're not going to
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drive the market. do you think they will drive the market beyond these earnings? you think the moment earnings hit the tape after the bell is what markets are focused on? >> for three minutes as long as nothing bad happens. melissa: charlie, go ahead. >> as long as president obama remains president, we've got him for next couple years we'll hit ups and downs based on headlines, but driver of the economy, driver of markets will be. >> and fed. i think these are blips. ukraine is a blip. >> we hope. melissa: earnings week? >> i tend to agree with dominic. if something really nasty happens, the president decide to put nato troops on the border in poland i'm sure that would have effect on markets no matter how good netflix earnings will be. melissa: that will never happen. we don't have to worry about that possibility. reports is emerging twenty-first century fox selling assets to boost the bid for time warner. twenty-first century fox is the parent of this network.
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you the deal momentum, charlie. what is it worth? >> this is wonderful having to report on your boss's buying activities. melissa: we say all complimentary things. >> mr. murdoch, i would say this, the deal as positioned right now it is easy to say no to. it is mostly stock, right? you're essentially asking -- melissa: easy to say no to your boss's bid? >> yeah. melissa: charlie, thinking hard where you need to. >> he will have to up the cash portion of this bid. even then, one thing about, what is different about this deal or as opposed to mr. murdoch went after dow jones, dow jones worked at "wall street journal" for a long time, dow jones was crummy company, lousy management of the jeff bewkes has done a decent job. he knows as i have been reporting other potential bidders down the road. silicon valley potential bidders. in order to get this deal done, more candy going his way and more cash with higher price. that's what you see.
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melissa: anybody want to guess what the tipping point is? what is the price that gets a deal done. >> i wouldn't even think the deal will get done. i'm assuming department of justice might display a little bit of backbone and start questioning these things when they benefit consumers. i'm amazed when comcast bid for time warner, there was virtually nothing said. melissa: that would -- >> why wouldn't this benefit consumers? content play as opposed, comcast is little different. they are controlling pipes. they could theoretically you put clams down -- >> mr. murdoch when he wants something is willing to overpay. melissa: put content together in one spot? >> the only point i make, he tried to acquire sky, for example in the u.k., the regulators did step in. that was because of the wiretapping scandal. but it does seem to me when the optics of this deal are going to start bothering the regulators. melissa: they spin off cnn they don't control two news outlets. >> he is right in this sense.
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there is overlap. they control a lot of studios. there is a lot of stuff here. listen, this deal, we work for this gentleman. he is 15 steps ahead of anybody on deal-making. you know it. i know it. however you don't have to be a rocket scientist, to figure out this deal is complicated. this is, a company run by a decent manager. the stock has been up. melissa: cnn? time warner. sorry. >> twx, not twc. bewkes has done a good job. he knows there are other bidders. he can hold out. melissa: carlos slim latest billionaire calling for shortened work week, telling financial times people will have to work more years until they're 70 or 75 and just work three day as week, 11 hours a day. only three day as week, 11 hours a day. where does he get the numbers and math? i don't know, dominic what do you think? >> this comes out of principle shareholder in, their average
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retirement age is 50 years old. he can't lose key staff and people at 50 years old. he need to have them work a lot longer and can't afford to pay them into retirement. he needs to change dynamics, whether here in the u.s., europe or south america, 55 -- melissa: traditional retirement feels like very much over. if you look at, i have no hope for social security will be there when i get there. >> a lot of people want to work. i know some people at 65 want to keep going. melissa: interesting. the dodd-frank act blowing out some birthday candles today. the controversial measure was signed into law four years ago today. it is still a work in progress. love the government. just 52% of the rule-making requirements have so far been met. i don't know whether to celebrate because it is not done and more regulation is never good regulation, or, you know -- >> wreaked a lot of havoc so far. melissa: even still. >> peter wallison wrote an excellent commentary in
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"wall street journal." the last graphic said how jpmorgan is essentially cutting down the size of the bank in terms of laying off some people, like not growing staff that actually produces jobs, so they can grow the compliance staff. think about it. melissa: that is agonizing. >> for these compliance guys. i think you know, if you think about what they have also done with dodd-frank, and i don't care what anybody says they essentially enshrine into law too big to fail. none of these banks, this law protects the banks from going under. melissa: which is ironic supposed to be the opposite. rousing cheers and chants of run, liz, run, greeting senator elizabeth warren at neoroots nation conference. warren gaining supporters for a 2016 presidential bid thanks to her harsh stance against wall street! wow. who wants to take this one. >> she is very popular with progressives. a lot of people are not particularly excited about idea of hillary clinton there. they just felt that we had a lot
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of, we had the rubenites running show. melissa: is this short-term distraction. >> short-term distraction. she is extremist, like cruz is extremist on one side. she is extremist on other. the polls say that 27% support, 16% would vote against anybody -- >> i don't think -- >> another analogy. i think she is very, very popular and i think could be formidable candidate. >> people misunderstanding the amount of populism in democratic party. they embraced occupy wall street. the president embraced wall street. >> is that core of party or -- >> saying a lot of same things sheila bair said. she is republican. melissa: another hurdle for the housing market, home price levels in dozens of cities will not achieve precrash levels for three years. erse doz and hamas in gaza.
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the gaza strip. conor powell is live in the gaza strip. what can you tell us about the situation there. >> despite talks of a cease-fire we're not seeing anything that resembles halt in fighting here in gaza. this has been violent day. last 36 hours have been the height of violence here during last two weeks. hamas continues to fire rockets into gaza. as a result, the, i'm sorry, into israel. as a result the israeli military continues to pound gaza with artillery and airstrikes. the heavy fighting forcing many palestinians to flee different parts of the gaza strip into gaza city, particularly where we were today. we saw u.n. shelter where women and children were fighting over water. there is a real shortage of humanitarian supplies, particularly just things like drinkable water, let alone food. safety spots throughout the city. the u.n. now saying there are more than 850,000 civilians, palestinian civilians taken shelter in u.n. refugee camps here. the heavy fighting focusing in the northeastern part of the
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country. right now the death toll today, stands at 571 palestinians killed. many of them of course civilldri military suffering significant casualties. yesterday 13 soldiers were killed. today, seven. bringing the total to 25 israeli soldiers killed. there were significant fighting today as some hamas militants tried to infiltrate through tunnels going into israel. they used these tunnels as both hideaway to fire rockets and try to sneak into israel. the idf, israeli military says they were able to prevent this attack into israel but hamas also claimed this as a real significant victory saying they killed some israeli troops. they said they would turn gaza into an israeli graveyard. the rhetoric, fighting, everything ramping up here, melissa. no signs of any type of cease-fire here as violence continues.
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melissa: conor, thanks very much for the report and stay safe. we appreciate your reporting. markets seemingly unfazed. look at markets since the malaysia plain disaster, it is down .6 of a percent since the first headline crossed thursday morning. the situation between israel and gaza rapidly deteriorating. how big after risk is complacency. let's bring in alan knuckman from the cme. charlie and dominic are still with us. alan, let me ask you, is there investors shielding themselves from risk. they must put on a play. >> know of any risk at anytime. have stop losses and risk protections so your maximum exposure is no matter what happens. the rewards will come but that's what our job is. 100% of our job is to control risk. i think right now tough focus on right now the markets are giving us very, very positive signs, if you strictly focus on price
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action, the amazing comeback, the epic comeback, the positive after last week and to be holding steady, the nasdaq is actually positive right now, is pretty amazing in these conditions. melissa: dominic, you have to wonder if the fed lulled us into total complacency. is there anything you're doing to protect yourself? >> the fact 10-year fallen to 2.5%. it helps the fed ease out the position with less effect on interest rates. look at it as a money manager. take risk off the table. don't do any mass selling. we took 5% put it in cash on friday. not a dumb move. be safe with many so of the money. melissa: main thing you protect your seven against the fed, if you could control the economy wouldn't a despot do that forever. something has to happen sooner or later. >> delineate between traders and investors. you're an investor. >> that guy is trader. >> on the floor. if you're average person you're investor, you can be more defensive. to worry about events keep
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coming in face of fact that fed, janet yellen signaled she will continue to keep interest rates at pretty low levels and taper is not, coming any faster than normal than we anticipated. the market, if you start readjusting your portfolio based on this, you're reacting to wrong thing. the fed is accommodative. it is positive for the economy. melissa: what is it they can't control? maybe that is the key question. are they not able to control inflation if it crops up, we're seeing signs of it? what is the thing they can't protect us from? >> we've been talking about inflation ever since qe began. melissa: but it is not here. >> it is not here. i don't know, i tell people -- >> who we measure it. it is here. we know about food prices. we know what is going on. even in real estate market we see significant appreciation last five years. but how the government measures inflation there is no inflation. >> if you stay out of this market because you're worried about, you're crazy. >> i don't want to reinflate panic. melissa: alan, last word,.
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>> reflation, with asset reflating. inflation is not a many pro. i was watching old, old, movie, "wall street," 1987. they said back then too much lo liquidity in the markets, markets were slop p it is old story. markets do what they continue to do. take advantage of it. melissa: thanks all three of you. be prepared to pay even more of your next airline ticket, higher fees courtesy of the tsa. we're heading outside and getting dirty with a self-cleaning car. smart money on the way. ♪
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new zillow data says half of the country's largest metro areas won't meet prerecession peaks until 2016. we have ed point toy, mark hanson and you recognize our very own cheryl casone. ed, do you buy this? >> absolutely. housing markets in the united states are incredibly volatile. metro area is tremendous amount of volatility. below metro areas it gets greater in terms of volatility. we looked at 50 largest metro areas, using zillow areas to 1979. isolated 10 most volatile, and 10 least volatile. most volatile, are california, florida, metro areas. least volatile, north carolina and other places like that. melissa: mark, what is the significant of reaching that point again? is that we need to get there in order to get a lot of people
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underwater out from underneath that debt. or are we making much of a milestone that doesn't mean that much? what do you think? >> you know, if we were to reach that point right now, with the lack of meaningful end-user demand, incomes, or employment levels, we would be in a bubble again right now. so, pushing out forecast, and when we get there, to 2017 i really think it will be a lot longer than that. maybe 2021. if we got back there, all the people underwater in negative equity or effective negative equity position who can't sell and rebuy because they're underwater in their house would be freed up. that would be a positive in getting back there. but again, new people can't buy because if we were back there, house prices would be too expensive. we're seeing that at present levels. melissa: cheryl, i see you nodding your head. we're seeing that when we see incomes relatively stagnant.
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people can't necessarily afford to move up or buy a new house no matter what the home values are. if they move up too quickly everybody would be priced out again. >> absolutely. i was looking at zillow report this morning and values are up 6%. we're seeing a little bit of a gain on values but at the same time rents are higher. that is one thing depressed younger generation kids out of the market. their rent is going up. they can't buy and can't get loan. i should say he was talking about some cities crucial right now. this what surprised me, minneapolis, 14.5 years before they get back to prerecession levels. kansas city, 12.5 years before they get back to prerecession levels. melissa: what is the -- plus side home values not going up that fast is more affordable. you have winners and losers no matter how it shakes out. what is sentiment like, do you think. >> sentiment comes in two categories. people still want to own a home. secondly they're very concerned
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about what happens when the market goes up very quickly and down very quickly. there is volatility. therefore the solution is to get away from so much leverage. we've been feeding these markets with leverage. we needless. it would be like feeding, stock market is getting fed in effect with leverage from the fed. imagine if people were -- melissa: people don't like to hear that, mark. what do you think about that. do you agree with that sentiment? >> i agree with that. people want to buy a house but they're afraid to buy a house because what happened. keep in mind, housing is not that affordable. in 2006, incremental buyer using option a.r.m. or income only stated loan could buy much more house than they could today on monthly payment basis which is most important. >> just final thought here. not that they don't want to buy a house. they can not buy a house right now. you still have very strict lending standards and looking rates, 4 percentile. we're still seeing negative report. melissa: i appreciate it. all three major averages
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bouncing back from session lows. the dow is down 37 points now after being down more than 120 points at the lows of the session. go to nicole petallides on floor of new york stock exchange. nicole what is driving the trade? >> market breadth certainly recovered. we're seeing the dow down about 40 points. the one thing i wanted to focus on is the stopper to -- top story, melissa looking at yum brands and mcdonald's. when i look at the two they are apologizing after a safety scare pertaining to meats in china. shanghai distributor under investigation by a local media company that found out, and they report that meat was being picked up off of the floor. it was being repackaged after expiration date. and then being delivered for use to mcdonald's. also yum brands, two names there, kentucky -- kfc and another firm as well. i was going to say taco bell but pizza hut. if you look this is problematic considering the fact over last couple years, we had two scares
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there. really in poultry in particular. that really hit yum brands in particular. now both companies have apologized. they have stopped using this supplier which is now halted and under investigation. so it is a big deal. both stocks, i checked them over the last hour, have hit their lows in the last half hour. we'll follow them into the closing bell, melissa. melissa: thanks for the update, nicole. thank you very much. we're heading to ukraine with the latest on downed flight of malaysian airlines 17. don't go away.
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it's one more part of our commitment to america. 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. a research tool on thinkorswim. from td ameritrade. melissa: to the dire situation in ukraine, according to the malaysian prime minister, pro-russian rebels in the region have agreed to hand over the bodies and the black box from the downed malaysia air flight. fox news' steve harrigan is in eastern ukraine with the latest. steve? >> reporter: a train carrying more than 200 bodies has moved out of rebel-controlled
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teitor the nt st wil b theetheands wrehedna pcessill bin. ile e biesre gne,in mysmal tow in ester krai, thcars rain. theing th ne, tandng ar fr maysia fght 17 fecros sml vilgesin eastrn uaine ,oo, did thebodif passgers dreoun e in his bkyar e iage ings t 7yearld toears ve ben toughthe w wi t rman fine, he ss, buthiss wrse. a cld soun ne h fro yar nuer 28 nad's ll poneisill with picres t de artrt, [speaking in native tongue] explosion, o to seer the at happen ss,nd ey were fngywhere. >> reporter: alone, here and gone in sunflower fields, wheat
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fields marked with a rag or a ribbon. and another sign of small progress, malaysia's prime minister says he has agreed with leaders of the russian-backed rebels to receive the flight data recorders. melissa? melissa: steve, thanks so much. for more reaction let's bring in former u.s. ambassador to ukraine john herbst. ambassador, thank you so much for joining us. thelin wi uuegiven that seated.m what do you think everyone's missing? >> i'm not sure that people are missing think one thing in particular. right now understandably all the attention is on the tragic shootdown of this airliner, of recovering the black box, getting the bodies back and sent to their home countries and and to their loved ones. and this, of course, is very important. but let's not forget that this shootdown is a direct result of russia sponsoring an insurgency
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in eastern ukraine, russia providing these very sophisticated missile systems to shoot down the airliner. as the u.s. government pointed out, these missile launchers were introduced into ukraine from russia, and after the shootdown of the airliner, they went back into russia. and while the world right now is insisting that the investigation into the disaster proceed, that the bodies be returned, russia has sent another 15, 10 or 15 armored vehicles, tanks and other armored vehicles into ukraine since the shootdown. melissa: okay. so what do you think is the appropriate response then from the global community? what should we be doing? >> well, the global community needs to send a firm be deadline to mr. putin; seal your border, stop sending fighters and weapons into eastern ukraine or face crippling sanctions. there's a connection -- i'm sorry, go ahead. melissa: no. there's definitely a connection,
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but i think we've seen, our markets are telling you they don't believe that our president is going to do that. do you think that he would think it's worth disrupting the markets in this feeble economy to send that message? what do you think? >> well, i think our president has played a reasonable game on sanctions. the sanctions we put down last wednesday were strong. the problem is the europeans have been weak on sanctions. and either one of two things should happen, in my opinion, as a result of this tragedy. either europe on its own should decide to tell the russians that unless they stop their aggression in ukraine, they too -- like the united states -- will send strong sanctions. or if europe is unable to do that, then we have the power all by ourselves to issue sanctions. we can stop, for example, dollar transactions with russian financial institutions, and that would be a crippling blow to the kremlin. and that would give mr. putin reason to stop his aggression also.
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melissa: go ahead. >> we should provide military equipment to ukraine. antitank weapons, anti-aircraft weapons and missiles that can destroy the antiaircraft missiles that the rebels get from the russians. melissa: mr. ambassador, thank you so much for joining us today. we appreciate your insight. >> you're welcome. melissa: up next, one stock we are watching closely, gopro. how wall street's love affair for the company shows no signs of easing up. plus, start-up guys everywhere get finally get a wardrobe, and there's not a hoodie in sight. at the end of the day, it's all about "money." friday night, buddy.
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start shopping at the new carfax.com! ♪ ♪ melissa: i'm melissa francis with your fox business brief. gm has ordered cadillac dealers to stop selling some ctf models because they still have not found a fix for the car's recalled in late june. engines in some vehicles were being shut off when drivers bumped the ignition key. gm says that the sales halt will be in place for the foreseeable future. allergan has outlined more of its restructure plan in an effort to stave off a takeover by valiant. they will save nearly half a billion dollars by cutting some projects and 13% of its work force. and research from bank rate shows millennials are three times more like to choose cash over stocks. some say that 18-29-year-olds haven't been able to shove off their risk aversion brought on
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by the financial crisis. that is the latest from the fox business network, giving you the power to prosper.
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♪ ♪ melissa: finally you can watch gossip girl in peace and anonymously. netflix is testing a new primacy feature that conceals your viewing habits from others to no need for others to know you spent your weekend keeping up
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with the kardashians. here now, samantha murphy kelly. bruce, it strikes me as clever, you don't want people knowing what you were watching on your netflix, although doesn't this really boil down to porn? i don't know if you necessarily want to go there, but i'm wondering if that's what this is really all about. go ahead, bruce, take it away. >> yeah. it's like when you're at the newsstand at the airport, and the person behind the counter says do you want a bag with that? i'm thinking, i'm not buying porn, i don't need a bag. [laughter] i think this is like the katherine heigl mold, you know? it's not that i don't want them to see the porn, i don't know that i want them to know i watched that stupid 28 dresses movie. [laughter] melissa: samantha, are you ashamed of bad movies? is that why people want to hide their viewing habits? it's very are clever. it says you can have private viewing feature and you won't get recommendations based on what you wallet, it's not going to pop up again in your viewing history of tell the rest of your
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family what you've been doing after they went to bed. >> right. one, it's the 'em embarrassing aspect. for example, if your husband's away and he wants to cozy up to the notebook -- [laughter] but at the same time, for example, if you don't have kids and somebody is coming over and you're baby sitting them and you show them a kids-related show, that means the next time you go into netflix it's not going to make recommendations based on what you saw last. and that's really important, too, because as it's learning your user habits, it thinks you like these different shows. so this is actually, it works in -- melissa: it's very clever. >> yeah. melissa: so banana republic tipping its hat to silicon valley and introducing the start-up guy look. no hoodies, it's not t-shirts and flip-flops, it's more like, you know, the half tucked-in shirt, the crump p -- crumpled pant cuff that reveals your sexy calfs. bruce, what do you think? >> well, first of all, the
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rolled-up short pants, the untucked shirt, it reminds me of the stuff you used to get beaten up fort( in junior high school. i'm guessing the word slob was taken. what i wonder about is why would banana republic go after a look that's clearly a trend, but more importantly, it's not a very stylish trend when they're supposed to be giving ordinary guys advice on how they can look good. melissa: yeah. real quick, samantha, what do you think? >> i think this is sort of the grown-up version of the silicon valley look. again, you usually have the jeans, maybe a t-shirt, and now this is more of the sophisticated maybe after they've been funded they get this look. melissa: but that's like 20 people. i mean, i don't know, they're spending -- i don't know. anyway, sony trying to make the walkman happen like it's 1985 again. the new device comes with a he was think $700 price -- hefty $700 price tag. the walkman? really, samantha? you're the tech guru, so i'll let you go first. i thought we put this thing to
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rest. >> right. so it is interesting that now it's)v> celebrating its 35th anniversary, but i think what's really disinteresting here -- interesting hereedjñ is the fact it's the special high resolution audio files, and it's supposed to make listening a lot stronger, more immersive. so, basically, with that will come more expensive albums too. if you're paying $12, $13 for a cd or buying it online, this is going to be double -- melissa: wait for me to spend even more money. bruce, i've got to get you on this one. it's one thing to donate to the potato salad project, you saw us loving that on the internet. it is another thing to just whrieppedly invest in mystery products. a crowd-funding campaign on crowd tilt is asking exactly that. you literally donate money for mystery products. they call it a trust experiment. they're experimenting to see if you're stupid and will trust anyone. [laughter] it's ridiculous. you literally don't know what you're investing in. it's a history. >> i think it's a blind date for
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geeks with a lot of money. but, listen, people invested in something could facebook, people invested in -- melissa: but they knew what it was. this is a -- >> they did not have any idea what it was. they had no idea. in fact, not knowing might actually be better because if i had said a couple of years ago, hey, melissa, let's invest in this thing called twitter, you would have said i can't say anything in 140 characters, you're crazy. i think it's a great idea. melissa: i can't wait to see, bruce, when you put your money into this what you get back. go ahead, make your donation, let me know how it works out. bruce, i'm not kidding. all right, heading into the last hour of trading, let's check in with liz claman to see what she's got coming up. liz: well, of course, it's the global tensions that people are waiting to see affect these markets, and they very well could. coming up, of course, you cannot ignore what's happening in israel and gaza, the ukrainian plane crash, that situation. coming up at the top of the hour, bret baier, our friend from fox news, has just
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completed a one-on-one with benjamin netanyahu, the prime minister of israel. folks, neither of these areas -- gazaship or israel -- may produce oil, but they affect oil, they affect commodities. coming up, what did the prime minister say to bret about this offensive in gaza? he will have the latest for you, and we're going to be watching the markets as well. tentative at the moment, right? so we've got that. plus, we're looking at alibaba as well. there is a new york times report that is asking the question are the preferential treatments being given to certain government officials' sons and daughters -- this has been typical in china, but it's sort of a buyer beware, jo ling kent's on this story, we're looking at that and much more. melissa: all right, liz, can't wait for that. two things are certain in life, taxes and high airport fees. you have to hear this one. you can never have too much "money." ♪ ♪ i'm only in my 60's.
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mcilroy's big win yesterday means his dad just won more than $170,000. can you imagine? it's a great one. and spending money to take a stand, activist investor elliot management, they have taken stake of more than $1 billion in emc in an effort to push the data giant to break apart. they say emc's lagging stock will get a big boost if it were to sell off of some of its popular software units. so just when you thought traveling couldn't get more expensive, suddenly more charin. a tsa security fee is now almost doubling. fox's laura ingle is standing by at laguardia airport in queens, new york. >> reporter: hello. it's frequent flyers and those who have long lay ofs who are really going to be -- lay loverovers who are going to be feeling the pinch. after all, when you add it up over time, it will start to show on your, you know, bottom line. so you heavy noticed along the line of the last decade in the
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past a $2.50 included in the cost of your plane ticket for what's called the aviation passenger security fee otherwise known at the september 11th security fee. now, as of today that price more than doubles to $5.60, and you will pay an additional $5.60 on multiple legs with stops longer than four hours. this was not a tsa decision. reps say they are just complying with laws passed by congress add anything a statement to fox that says, quote: the revenue is to be used to offset tsa costs for providing civil aviation security services after stipulated amounts are applied to reduction of the federal deficit. now, congress estimates the new system will rake in over $36 billion over the next ten years which is a nearly $17 billion increase. some airline industry experts say travelers will be paying more but not getting more when it comes to security. >> congress is actually raising the fees as part of a budget deal last year to you set cuts
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in -- offset cuts in other parts of the government. they're going to use that increased revenue to fund things that have nothing to do with travel or security. >> reporter: and travelers that we spoke with, you can guess, are not so happy about this. listen. >> that's really ridiculous. on top of baggage fees and everything, how do they expect people to travel? >> i think the money if it was focused into making it more efficient, that would be better. >> no, i don't think that's fair. i'd rather if it's going to go up that all of it goes to the tsa. >> reporter: and the bottom line, we're all going to be paying more whether we like it or not, and the airline industry, experts say, if you have a problem with it the only thing to do is write your congressman. melissa: yeah, or stay home or drive your car. classic, laura, thanks so much of. [laughter] shares of herbalife are tanking as investors await tomorrow's presentation by activist investor, notable herbalife bear bill ackman.
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take a look at that. he is pill billing tomorrow's -- billing tomorrow's presentation as his, quote, most important presentation yet. "money" has you covered. we're going to have a live reaction to the herbalife ceo starting at 2 p.m. eastern tomorrow. you don't want to miss that. so herbie the love bug would be jealous. the new self-cleaning car that brings a whole new meaning to being fully loaded. at the end of the day it is all about a shining, clean car. i can't wait. ♪ 3rd and 3. 58 seconds on the clock, what am i thinking about? foreign markets. asian debt that recognizes the shift in the global economy. you know, the kind that capitalizes on diversity across the credit spectrum and gets exposure to frontier
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♪ create a better website at squarespace.com start your free trial today. ♪ ♪ melissa: neat freaks everywhere, rejoice and, birds, take cover. it's all over for you. your target's going to be gone. i am here with ultra tech international ceo mark shaw, and you have a very special thing. show me how it works, i love this idea. >> okay. so this is a regular paint that comes from the factory. you can see what happens with the paint. so when you apply coating --
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melissa: oh. >> is that cool? melissa: that's amazing! and the surface looks really nice as well. >> right. melissa: show me some other effects. >> okay. this is mud, problem for all cars. makes it the first self-cleaning car. nissan and ultra tech have teamed up to look at how do we -- melissa: how does it work exactly? what's the technology? >> low surface energy of the coating is lower than the liquid, so it allows the liquid to remain in a ball and roll off, and also the texture, it's actually rough, not smooth. melissa: it is, and it sort of is a matte finish. your car's clean, but this is not shiny. >> you need the peaks and valleys to let those round water droplets to roll on the peaks and then -- melissa: i want to try it myself. let's go over to the real car, and while we're on our way over there, can you tell me -- yeah, bring that with you. >> yep. melissa: can you tell me, is there hope for this on the inside of the car? that seems like something that
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would be, you know, sort of the next wave. >> right. melissa: whoa! this is fun. [laughter] >> so we do have, we do have on the inside of the car as well. now, here's something -- if you hit, go by charlie's chocolate factory -- melissa: great. this is a lot of fun. you're going to put car washes out of business. do you get a lot of threats for them? >> but you can always use it on the inside for your cloth interior, your carpeting and your headliners, and that'll just wash right off as well, if i could borrow that. melissa: i'm not hearing from anyone, so i have no idea how much time we have left in the show, but what would the interior look like? >> whatever you want. it could be whatever fabric you want, but it's treated, so it's not going to stain, and the other thing we're going to be able to do is take out the odor. you can throw these things away and get rid of those because we have the ability to move those around the car. melissa: thank you so much for joining us. this is very clear. i can't wait to get my hands on
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this. let's go to liz claman who will take you through the last hour of trading. ♪ ♪ liz: global flashpoints loop over the -- loom over the market. will rising tensions with russia and heavy casualties in gaza overshadow earnings and cause investors to flee, or will they look beyond geopolitical risks? the big picture and what it means for your money. red flags over alibaba. the chinese e-commerce giant's massive up i don't meaning ipo -- upcoming ipo could make many wealthy, but will those connections run afoul of u.s. law, and do a series of abrupt arrests and departures of tv anchors and executives at china's state-run business network shed new light on what's really going on in china? and how would you like to cut your workweek by 40%? that's what mexican tie con carlos slim, the -- tycoon, carlos slim, is calling for. what about business? we're all busine

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