tv MONEY With Melissa Francis FOX Business August 11, 2014 2:00pm-3:01pm EDT
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pessimism among individual investors surges. stepping up action in iraq. the u.s. supplying arms and launching more airstrikes. president obama warning this could take months. going after the biggest name in tech. notorious security expert john mcafee on why he blames google for the destruction of privacy. plus, it's shark week. we've got you covered. the $600 gadget that could be a lifesaver if you ever come face-to-face with one of these. even when they say it's not, it is always about money. melissa: the dow back in the green, sterning positive for the year but someone poked the bears, set me tell you. according to a new survey bearish sentiment is on the rise from this summer. let's bring in today's panel. damage safer, jack hough from "barron's" and david dietze from point view wealth management.
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thanks for joining us. are you surprised to see bearish sentiment, 21% in june, 38% in august? >> not in the least. not particularly worried about more negative sentiment. if you subscribe to contrarian view you wouldn't want people to be chipper and optimistic when the stock market hits new highs. you want to be a little bearish. the pullback in recent weeks was pause that refreshes. melissa: more of a return david, to the market? >> i do. three geopolitical conflicts going on. economy which is still struggling to upgrade. you've got a federal reserve poised to perhaps start ticking up that federal reserve rate. so i think, i think there is probably good reason for individual investors to be cautious. melissa: what do you think? >> i think they're pulling out. we had more new lows on friday than highs in the big run. i think individual investor, normally this counter number that would say maybe there is a rally because they're so pessimistic. melissa: right. >> there was so much damage done in the market, dropped 700
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points, the dow jones industrials alone that. spooked a lot of people. melissa: you don't think this is trailing indicator? bears see what happened and now opportunity to come back in. >> long-term historically trailing indicator. other indicators say they're in the early stages of putting out more money. they're pulling money out of the junk bond market. melissa: you talked about conflict. the united states is directly sending arms to kurdish forces who started to make gains against islamic militants in northern iraq as president obama vows long term strikes on iraq. meanwhile the president is taking a break from his vacation in martha's vineyard to do a little fund-raiser. appropriate, not appropriate? david what do you think. >> he has so much on his plate with the three geopolitical conflicts. with a situation where companies are leaving left and right this country because of unfair tax system, something has got to give. he is spending that much time, raising fund and stroking donors. i'm afraid not paying attention to what really matters. melissa: does it send a wrong
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message to be on vacation while conflicts are exploding everywhere. >> i'm not worried about the president being on vacation. he has capability to work -- melissa: it sends a message. >> to your point being appropriate or not, i think it is inappropriate to do this fund-raising with these things going on but this is the world we live in with permanent campaigning on both sides. this is not unique to the president. melissa: dan? >> i think it is very scary that he is not paying attention to what is going on. he doesn't have a foreign policy program to take care of this, using a strategy. it is ad hoc. he is still waiting for the iraqis to come up with their democracy. >> a stretch to say he is not paying attention. >> he is playing golf. he is doing fund-raisers. >> has a cell phone. he can watch tv there. if i were -- melissa: watching tv to make decisions i'm a little concerned about that. kinder morgan, announcing plans to consolidate the empire. the energy giant plans to fold its four units into one company. in a $70 billion deal. look at. that. all for stocks are on fire.
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david, you like this deal? >> yes i do. i think, highlights the weakness of the mlp model. they're so busy paying out all cash flow they generate they can't use any to grow. i think there are great opportunities that richard -- melissa: interesting. richard kinder is a smart guy. >> the whole point of the mlp, one of the whole points is to dodge taxes. pass through all income to investors. they say they will have enough tax breaks to carry them over year to come. have your character and eat it too. melissa: good for them. what do you think? >> mlp needs more acquisitions, they're so large there are not more acquisitions to maintain the dividend and grow it. consolidating all the companies into one c corporation which is what they're doing i think is fabulous. now we'll see more growth out of it. >> would you buy into this? investors loving it. you jumped ahead, exactly my next question. would you buy it here as it goes up or did you miss it? >> i don't think you missed it but i wait until all put together and then buy the corporation. melissa: this is one of my favorite stories of the day. should bankers swear a
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hippocratic oath? a new report from rest public calling on bankers to vow to clear ethical standards in order to put end, quote, embarrassing merry-go-round of scandal. this is ridiculous. they want bankers to sit there and swear an oath. what is that going to do? >> if you have to swear an oath already saying you're a liar to begin with. how about put lies -- melissa: rip you off, now that sworn an oath,. >> how about an law based economy than oath-based economy. melissa: continue to paint bankers as evil guys. that bugs me, predatory lending, like somebody chasing you down, tricking into borrowing money. you signed. you took the loan. >> absolutely. whole economy was at fault in the last bubble. melissa: enough blame to go around. everybody's fault absolutely. >> pick on bankers too. that gives other financial institution, insurance companies, hedge fund opportunity to move into the space.
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if it is not against the law i'm all for it. melissa: i will not try to manipulate rates even when others are begging me to. i will leave the operation to be performed by central banks. that is somebody's sarcastic remark to the oath. that makes a lot of sense. >> so they signed this oath and break the oath. what, have day of a tonement? >> fingers crossed. of the raise your right hand. watch the left one. >> i think they're telling us is a lot more. melissa: sad news for drone fanatics like myself. widespread use of commercial drones is likely to take longer than many industry proponents believe. this according to u.s. i have a say ages regulators. they sent a pretty clear message saying at recent conference, number two safety official at faa, we're still many years away what you see as safe integration in the very busiest airspace. we will not allow them to come into the system until they're safe. they're saying years. >> many years away from the regulations but they're not necessarily that far away from the technology. and that's the problem.
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melissa: my drone is ready to go. sitting, right now, literally in the pantry bit front door. so we can take it out whenever we want it. >> tragedy befell the malaysian airlines flight refocused people on safety and risks. melissa: i don't think a drone caused that though. >> of course not. same sort of technology, that is going to be needed to make sure you can fly around these things. melissa: >> only for commercial use. if i want to use it personally come up to my window and looking out there. melissa: question of enforcement. so many real estate brokers use it. get a great vision all. great for marketing property. they're not supposed to be doing that. that is commercial use. who is it going online and cracking down to hand out tickets? i don't know anyone is. >> there is lot of concern about privacy. not clear which branch of the government is managing that. faa is trying to kick that someone else. melissa: nsa is great at managing privacy. get them on the case. >> how do osteite for their own
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advantage first and then tell us what we can do. melissa: right, exactly. keep the best secrets for themselves. more trouble for the u.s. postal service. the agency reporting a $2 billion loss in the most recent quarter which contributes to a loss of more than $47 billion in the past decade, but, the cherry on top of this awful sundae is new video going viral, showing a postal work, allegedly throwing mail in dumpster. it wait as while. i watched this five times in my office. gets out and dumps, gets back in the car with another helping. isn't this, could have at least like newman gotten the storage bank downtown where to store all the mail and deliver later. back and forth. dump, dump. somebody is taking video of the whole thing? unbelievable. check's in the mail. you think she is recycling. >> if you zoom on that, birthday card i was supposed to send to my sister, i'm sorry. i love you. melissa: that was all the checks that were in the mail were in her car.
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everybody said checks in the mail. >> this happened 90 days ago. what happened to the employee. merely suspended which says something about the whole union structure that they're working under, which of course is one more, headwind that the postal service happened. >> how many mail dumpings before you're fired!? first two are a warning. melissa: i think they do it by a pound. certain tonnage that you dimped before you get fired. i don't know. amazing. did did you have anything in the mail chute? >> if they ask you deliver the mail, yes i did. doesn't matter where you delivered it. had to meet quota. melissa: wow. big macs unlimited. how a new robot set to revolutionize the fast-food industry with burgers done in 10 seconds flat! what about workers it is sure to replace? there is a whole lot of buzz around this investment. how a 50 million-dollar stake valued buzzfeed at a billion bucks. with a whole lot of articles about cats. more "money" coming up.
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melissa: heavy infusion of cash cementing buzzfeed's status as the cat's meow. the viral content hub known for very thorough coverage of the feline beat, getting a $350 million investment from andreessen horowitz, raising the valuation to a reported 850 million. buzzfeed cofounder, jonah perrettty poking fun at marc andreessen, quote, we did the for the tweet storm, not the money. andreessen promptly responded, so can we have the money back? jo ling kent. jack hough is with us and the official of ceo of dinah link communications. larry, does that valuation seem fair to you, 850 million? what do you think? who knows. >> who knows because it's a private company. we don't know exactly what the numbers are but content is king. we're seeing the truth this year with content distribution, everything going to all the devices. the question is i see they're looking to make their own
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content which will be very interesting. this looks like it could be part of a bubble we're heading into content. this is right content but this could be bubble stuff. melissa: interesting, because buzzfeed is very catchy. it is catchy. it is a stand-up. they say their technology is technology, what they better understand than anybody else is how to deliver and that is -- do you believe that? >> very rapid. it is very interactive. they do it better in terms of vision all standpoint than other sites but going back to original content, they do original reporting in retail sectors and bunch of other places. we can see pretty decent offerings. >> i looked this morning at buzzfeed, the top story was chaos in iraq and new trend where men are shaving their chest but leaving a part that looks like a hairy bikini top. this is non-traditional mix of stories. melissa: which story were you drawn more to? be honest? where did you go first? delve into iraq or checking out the binky any hair thing?
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>> i have a couple decade to get in the news business. if it takes a hairy bikini top story to keep the news flowing -- melissa: what is interesting about buzzfeed, malaysian airlines flight went down, instantly had everyone's video feeding. stuff you didn't want to see but didn't want to see anywhere else and seems like they were far ahead of everyone else. they're putting up content. we're worry what we put up, will it offend people. are people watching with their kids, their feel something buyer beware. >> content turns into advertising and advertising is the dollars behind it. can this go mainstream content? mainstream advertising? that is what i question when i say this could be part of the content bubble compared to more mainstream content. melissa: okay. facebook's decision to split off its merger service reaching for the star -- messenger. despite being top free download, it is dismal one star rating.
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they're downloading it but harshing on it. >> there are a lot of privacy issues people are very aware. why is something already inside one app being forced out? a lot of people, i've talked to both personally and analysts think this is not necessarily the best move because it isn't separate from the actual facebook app it seven. it is one of the core functions. facebook is famously trying to really separate out its apps and make itself more diverse but it -- melissa: are they doing something else? >> instagram and all kinds of things. facebook messenger is pretty essential or central to communication for a lot of people actually, not "ijustine" agers. melissa: do you use it? >> i'm not on facebook. i'm on yo. i have only do yo. melissa: you just yo people. i love that. amazon tugging on captain america's cape with its latest negotiating tactic, halting preorders of some disney dvds as result of apparent contract dispute. hmmm, what do you think of this one, jack? >> we've seen struggles between
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amazon and book publishers. melissa: yeah. >> people don't read. that is not a big deal. melissa: that is not true. >> dvds is different story. i think amazon might bite off more than they choose. that is not substitute for "frozen" dvd. melissa: people, do they stream it? >> i think definitely diminishing number of people who do that but there is probably a large swath of population does not subscribe to netflix doesn't do hulu and all these, amazon prime. >> this is all about price because this set as precedent with the content of a prize and how much they will pay for the content. as we've seen it before, that is what they're trying to do, they're trying to squeeze them on the price. melissa: democratic senator chuck schumer lashing out at fitbit, sending all caps rant, claiming, quote, without their knowledge, fitbit bracelets and smartphone apps are tracking user movements and health data that could be sold to third parties, without their knowledge. that is the whole reason you put a fitbit on, so it will track
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your movements and your health. i don't, did he miss like what the product was about? >> well it is all about those third party sales, right? come back and said, again there are private companies so we don't necessarily know. they said they're not selling to third party advertisers. what i'm interesting why was it in all caps? melissa: that is terrible. >> trying to be cool and show people -- >> wouldn't be the first time. melissa: i don't know. definitely a miss. it does make me nervous. i don't have one. i don't love the idea of them selling that information. i don't necessarily believe them when they say they're not going to. maybe at the time they're saying it they will not do it and ten minutes later they change their mind but at the same time it doesn't seem like he understood what the real device is for. does he look like a fitbit user? >> i have never seen one. >> you have to know when you use anything like that out, it is public. melissa: there you go. >> public info. melissa: it is out there. thanks, guys. the new mac attack, calling out google for the destruction
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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 and emerging markets. if you convert 4-quarter p/e of the s&p 500, its yield is doing a lot better... if you've had to become your own investment expert, maybe it's time for bny mellon, a different kind of wealth manager ...and black swans are unpredictable. what happened? life happened. stress. fun. bad habits. kids. kids. kids. now what? not milk. not sheep. not that. let's think smarter. let's get some science in here. let's build a bed. another bed? no, a smarter bed a entirely new sleep number bed that tracks your movement, your heartbeat, your breathing - sensors working directly with the dual air chambers - yeah you need the air chambers.
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introducing the sleep number bed now with sleepiq technology. it tracks your sleep patterns and tells you how to adjust for... a good night's sleep, a better night, and an awesome night. so what sleep number adjustments make the difference? try cranking it up? adjust it down? a little bubbly? or nix the late night flicks? wait, you'll know what works, cuz sleepiq™ technology tells you. and all you have to do is sleep. which is easy. only at a sleep number store, mattresses with sleepiq start at just $999.98 because everyone deserves a great night's sleep. know better sleep with sleep number. melissa: mcafee is back. john mcafee making a surprise appearance at one of the biggest hacking conferences. thousands of hackers attending deaf conn were happy to see him, the software developer not pleased with google. john mcafee joins me himself. why are you not happy with google? >> well i think privacy is
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deteriorating rapidly due to the overarching influence of way google does business. they make money finding out what we like, what we buy, we don't buy, where we are, whether we're hungry. i think that is an intrusion that intrusion has reached extreme proportions. melissa: you say they have a very negative influence on society and reduce us to the lowest common denominator. how so? >> if everybody knew everything about everyone else, our behavior would be restricted to the least common denominator. we would knot be able, for example, practice our own religion in private, if we were surrounded by an opposing religion. we wouldn't be able to tell our children the things that we believe about good and bad people if good and bad people live next to us. melissa: john, let me argue the flip side of that. i hear what you're saying, but at the same time, if you know that you can get caught an know
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people are always watching, maybe, i think twice before i do anything that i wouldn't want everyone to know about. is that old thing like your mom tells you, don't write a note to friend in class you don't want read up front. isn't there some ways it could be a positive? >> absolutely. you're assuming that human beingings are perfect. reality there are one or two married people who have affairs. there are people who call in for work sick who are not sick. we all have secrets because we are, we are human. we have frailties and greed and fear and envoy and lust. it as long as we have that, i don't think we can live open. melissa: so your response has been to stop using smartphones. >> not not, that wasn't, someone asked me what the ultimate solution to the problem was? i said ultimately stop using smartphones. none of us will do it though. melissa: so what is the real answer then. >> i think the real answer is something that i came up with called the brown list.
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it is a, not just a complaint site but, say, for example you get audited because you spoke out against the government. that happened to me once. you can come to the site and you can say, this is what happened. but, the complaint can not go up without a solution attached. are you saying i think this is the solution. we should monitor the, you know the way that people are audited more carefully or whatever. this goes into a pool and other people can attach their comments. melissa: don't you think, i mean if you are afraid of reprisal in the first place, what is to keep people safe once they post on the brown list? >> nothing will keep them safe. if you've already been audited at least you're safe for another year. let's say exxon dig as hole in the property next to you and dump as ton of toxic waste. what recourse do you have if you're a small person? well the brown list is way you can say, look, this is what happened. melissa: can't you call the epa and say that exxon just dumped a
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whole bunch of stuff in next yard next to me, wouldn't that in that case you call law enforcement. >> what will they do? they're restricted by laws and customs t will end up in the court. with this, millions of people get to read it and other people add their suggestions for solution and people get to vote on those suggestions which then float to the top. it is a very complex affair but it is not just a complaint site. it's a way to vent your frustrations in a positive way. not just saying someone did this to me and i think we could fix problems like this if we changed such and such. melissa: john, thank you so much. always great to have you on, hear your thoughts. very provocative. appreciate your time. >> bye-bye. melissa: u.s. stocks fighting to extend last week's gains. let's go to nicole petallides on the floor of the new york stock exchange. you're watching tesla right now. >> right now, a great performer on the nasdaq 100. look at tesla which is a winner. up over 5% at 260.67.
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positive comments echoed last week from pacific crest, those firms looking trajectory going forward for tesla motors, production of vehicles, amount of vehicles they put out over next couple of years. 60,000 and 100,000 respectively for 2015 and 2016. those are gains of 18% and 67%. that is more than they expected. don't forget the gigafactory producing the batteries, lithium-ion batteries. that is big deal for tesla. buy rating and 310 price target from deutsche bank. melissa: nicole, thank you so much. iraq on the brink. the crisis there reaching a boiling point. listen how the u.s. is most likely in for the long haul. the surprised state where it is hardest to get work. why many might want to consider crossing state lines to get a job. ♪
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>> the crisis in iraq. the obama administration is providing weapons. they continue to fight against terrorist group isis. this could go on for months. how does this change our involvement in the conflict? from the heritage foundation, we have steve moore. thank you for joining us. if we did not get involved in syria, the problem would seriously poisson. this is the price. we are not getting involved. isis has bloomed into a real force.
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>> stranded on a mountain inside iraq. we have an emergency plan to protect them. again, that entity is also under attack. a different u.s. policy. that would include sending weapons. not enough at this point in time to push back. then, we have the jungle. that is a much more complicated and long term process, in my view. >> this feels like just the beginning when we see a problem. using an opportunity to take a shot at the president. what he did was terrible and why he would not do that.
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>> it looks like the democrats have messed up. if that would have been me, i would have done it differently. >> this has been a long time brewing. people warned of this is we pulled out of iraq early. i see no upside to this. she is for better or for worse tied to obama's foreign-policy. i see this as a negative for her political future. melissa: how do you think that this plays out. and they beat back isis?
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what kind of system will determine this. yes, with a significant force. they can do two things. northern iraq will be safe. melissa: gentlemen -- >> melissa, there is an old saying. i know this is a business show. melissa: geopolitical concern. let's get a quick check on the market. what about that. steve moore just made the point.
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it causes the market distress. >> i do not think so. many crisis over the last few years. i think that there is an ideology at heart. the markets are different. every week, every day last week, the markets made new lows. the measured move suggests 2070 as a target. things have not changed. yes, we do have these issues that come into play.
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ask your doctor about cialis for daily use and a 30-tablet free trial. ♪ melissa: i am melissa francis with your fox business read. priceline shares jumping. bookings grew by a whopping 34%. priceline also said it is investing half a billion dollars in a travel site. a hacker tweeted that there had been an ebola outbreak in atlanta. 145 people in the area had been affected. the ms. information had been tweeted by hundreds of followers. the attorneys say that all flavored versions should the
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florida, new jersey. do you see this list? >> you see a lot of hot housing markets. a little bit of a comeback. we have these cycles. places that are booming. melissa: those are our top three. >> proving places in america. melissa: if you round out the top ten. top places to find full-time jobs. >> anything. anything remotely close.
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>> i thought that was michigan. >> expected to live off of income. there is not a lot of jobs. melissa: it is a booming and bust housing market. i thought that michigan was surprising. a burger making android threatens low-wage workers. it can make burgers and ten seconds. potentially decreasing costs. the details on this are pretty amazing. 360 burgers an hour. $135,000 a basically, it is like a conveyor
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you do not want to have a race. you want to have a living wage for people. >> shouldn't we be focusing. they said they will put money into vocational training. >> about an extra three dollars. melissa: thank you. let's check in with liz claman to see what she has coming up. liz: we are watching the markets as well.
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we have been looking at this digital content. 50 million. they do have the midas touch. guess who has the platinum touch. he is just one of these guys. three companies. he is making it becomes something. also he has written a very interesting column for linkedin. we will talk about how well the company is doing. not just travel tips.
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the way you can learn. finally, the future of food. where will we get it all? a fox business exclusive. the iowa state fair. he figures by going early, growing things like cattle and agriculture, that will be the future solution. melissa: you have a busy show. can't wait. anyone with this stock. consolidating pipeline empire. he made an extra $9 million.
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very futuristic. a general manager. tell us about it. how does it work? >> you wear it on your ankle. you had a 6-foot antenna. those are small gel filled. it overpowers it. melissa: i can feel peta dialing the phone right now. does it hurt the shark? >> no. it does not hurt the shark. once they leave the proximity, there is no long-term damage at
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all. melissa: how did you test this thing? how did you test it? >> we actually spent a lot of time and money. it has been developed over many years. they started looking at electronics. they spent millions of dollars. what you do, basically, you take a huge chunk of tuneup. you look to see whether or not the shark will take the bait. they will not cross that field. melissa: $600 to buy. i wonder who necessarily needs this. ten times as many people die
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every year. i don't know. i do not see coconuts flying around new york city very much. it plays up the back of the mind. people were afraid to go into the water. this gives them the confidence to go back in. it is not a fun thing. it is really intimidating. >> i really do not want to be harassed by sharks. that is for sure. good luck to you. do not act like you forgot about
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♪ ♪ melissa: oh, the manning brothers are at it again, promoting directv's new fantasy zone channel. these brothers are just pitch perfect in making fun of themselves, and the fun is infectious. >> well, here's what i know: they're rocking the old school eminem look, but i think he's got nothing to worry about. on the other hand, i don't think the peyton brothers have anything to worry about either. hi football fantasy -- my football fam city is never to
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have to see that again. melissa: i've watched that five times this morning! you are dead wrong. if you're willing to shell out a billion dollars, the buffalo bills could still be yours. the team is still on the market. bruce, is the team just not worth a billion bucks? >> no, i don't think anything in buffalo's worth a billion bucks. [laughter] the fast food chain buffalo wild wigs, they have a market -- wings, they have a market cap of almost $3 billion. they help jon bon jovi sweeten his offer, they rename the team the buffalo wigs, and they promise never to move it under the tagline don't let the wigs fly. [laughter] my twitter handle's right back there -- melissa: i love it. okay, real quick, they probably should have seen this coming. it'll state university hosting a hashtag on twitter soliciting questions for the crustacean-stealing quarterback. good idea? bad idea? >> the bad idea is asking a
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gator to comment on florida state. [laughter] okay, you have a heisman trophy winner accused of shooting out windows, sexual assault and stealing. how good of an idea could it be? melissa: bruce, you're the best. thank you. i hope you're making "money" today. liz is next. ♪ ♪ liz: investors on edge or now comfortable with crisis? which of the world's top spots has the power to peter out the market? this as the dow brushes up against the wreak-even point for 2014. our peter barnes weighs in along with investor chris bert be lson of global financial who tells us in a fox business exclusive what he's buying in this uncertain market. buzz about buzzfeed exloads. the web content sensation winning a $50 million investment. the man who first saw gold in the news site, early buzzfield investor all-star eric -- [inaudible] on what's next f
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