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tv   After the Bell  FOX Business  October 2, 2014 4:00pm-5:01pm EDT

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down 7% though. [closing bell ringing] david: a lot of turnarounds. we didn't talk about commodities. that had a turn around as well. a lot of up and down motions. a split decision but barely so. the s&p as i was talking went down but just a tick. barely a tick. nasdaq and russell managed to pull out a gain. look at russell 2000. we've been focusing on this. this was leading the downturn over past couple weeks. in fact today, who knows. maybe this is just me, the beginning of a come back for the market. there were a lot of stock-pickers going in and grabbing stocks like delta, like united like other stocks even outside of airline industry we'll lot more with in the hour coming up. "after the bell" starts right now. liz: almost likes we need to wait until these numbers settle.
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dow and s&p strad link the flat line. nasdaq looks like a clear win. pretty interesting day. usaa investments john few wii is here to tell us why he is keeping close eye on protests in hong kong. four a.m. there right now. still the crowds are there. bret wilsey getting mic up as we speak. broadcast news moment. david: that is cool. >> using a pullback in the market as opportunity to put money to work. two recommendation he has for the investor. bob iaccino at cme live. bob, let's begin with you? why such tentative movements back and forth? >> well i think, look, when we start talking about what happened in the market over this past week 1/2, it was a rough start to the week but i think people attributing this to ebola is probably a little bit of a stretch. i don't think anything going on in dallas specifically, look what is going on in africa, 30,000 some odd people infected by ebola. i think the u.s. has a little
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better controls. 30,000 people in the u.s. would be absolute tragedy. i would call that controlled when you talk about epidemics or pandemics. on 25th we saw a technical change in the market, september 25th. we got short the s&p and we got short the nasdaq. we reached our targets today. i covered those positions. we bought twitter around 50. we bought tesla and other momentum and tech stocks we think will rebound from here. david: certainly seems, brad, we were oversold in certain areas. i talked about airline stocks. i mentioned delta by the way. it was united that brought that ebola patient over. delta is a stock you've been looking at for a while. it was beaten down i think partly on ebola news yesterday. it had a comeback today. you're going in and buying, aren't you? >> looking really closely at that because it was 42, 43 was the high there. suddenly around 38 it was a little too expensive. unfortunately 35 now. but 33, 34 gets me excited.
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that is 20% drop from the high. sales are up. earnings of 2015, $3.58. that gives you multiple nine times forward earnings. david, consumers are spending and traveling. fuel prices are down. great time for the airlines. any pullback in this stock could be a good buy for the company. >> there are some good things happening bode well for stocks coming down the pike over next three months or quarter of course. that lead me to john. john, you say all bets are off if something, what happens in hong kong? that is what you're looking at at the moment? >> well, what we're concerned about is, we're seeing good economic strength in the united states. of course we're seeing weakness in europe but, one thing that concerns us about asia is, the fact that the u.s. has sort of pulled back just because it is economic might has sort of been diminished after the financial crisis. militarily it has been extended
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in recent years. created an opportunity, instead after world where the u.s. is preeminent and dominant, you've got china which is looking to become a global power and it's not just hong kong. it is the south china sea and potentially some frictions with japan and philippines. liz: john, how does hong kong either end, blow up or resolve itself? >> well, i'm not so sure, liz, how it resolves itself. the concern is, you've got a situation where there is a lot of tension and, you're set up for somebody to make a mistake and incite something and you get a shooting, an accident happening. and then you get a real conflict. and asia has been a great source of economic strength. and if you see economic activity in asia diminish, it is not good not only for asia, it is not good for the rest of the world or equity markets.
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david: bob, mean whale we have good news on oil front at least from the consumer standpoint a lot of companies depend on oil. it has come down. there there was interesting action on oil. it started before trading hours at least in this country. it started way down. look at that. then it started to come back a little.what happened? >> i think you're talking about crude oil you have to look at the dif or spread between wti and brent. david: right. >> that has come in tremendously. it went as low as about $2.50. you normally see it in the five to $6 range. we've seen it as high as 7,.50. that spread controls the way oil flows. we had shortage of supply in wti crude. no shortage out of shale plants in the ground. that's not what is happening. what is happening the pipes are getting reloaded and supply in cushing, oklahoma where wti storage is low. but that supply will fill back up. that spread will widen out. like you mentioned that will be
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good for the consumer. right now that spread is tight. it will correct itself. that will be good for the consumer, good for equities in the fourth quarter. david: interesting. liz: is it too early to bring up christmas? brent, i've got to bring it up. you were say there were good winds coming down and, economically, certainly, but do you buy in before the holiday season and what are you expecting there? >> oh, i think it is fourth quarter will be great. i think christmas will be a great christmas. i was in costco last week and saw santa claus and snowman. they're starting already. liz: i'm not guilty here? >> you're not guilty at awe, liz. you have companies, oil prices are down. they're down low. gas prices are low, good for consumer. these will rise, i'm so amazed, i have to switch, drillers are down 40, 50%, but oil is down what, 15%. what a great buy those are. that will will be a great chriss present. we'll have a great fourth quarter come. david: your lips to god's ears
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or consumer ears. let's hope it happens. strong dollar is of interest to investors, investors should have large exposure overseas. you recommend they do that but you also recommend dge. ge has a lot of business overseas and a lot of business in china by the way. isn't that a problem when you consider the strong dollar? >> well the strong dollar will be a little bit of a headwind for ge but we would focus on two things. one, they have a big domestic exposure. people underestimate that you look at it, look at it various ways. more than more than 50% of the earnings growth could come from the u.s. on top of that this is a portfolio transformation story, turning into much more of an industrial and not just any industrial. a focus more on the energy sector. you just heard about what is going on in the energy space and there is a lot of activity particularly in the u.s. and there is still activity going on in deepwater and ge is going to
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be able to take advantage of that. going forward they will be much more of an industrial company, higher margin business, more stable and we think that is going to be great for the stock. david: let's hope. john toohuey, brent wilsey, great to see you both. bob iaccino we'll come back to you after the break when the s&p futures close. >> it was nearly a 5% gain for tesla. ceo elon musk simply posted a tweet that teased people a little bit with two new products coming up. we all the juicy details straight ahead. david: did you see this? he had the letter d in there. what do you think tesla could have up its sleeve? what does that letter d stand for? facebook.com/afterthebell. we'll provide your answers coming up. liz: hong kong's leader is open to talks to protesters but he will not step down and that is what they wanted. we have somebody in the heart of the protest live in hong kong
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who will answer this, will demonstrators accept talks or is the showdown about to escalate? david: as of now 100 people are being screened for potential ebola exposure in dallas. we have a first-hand look at the disease with the doctor who spent three weeks in africa treating patients right in the heart of it who had ebola. >> they run the country's most profitable restaurant. and they're continuing to grow despite what everybody says is an uncertain economic picture. and their food isn't cheap. so what is their recipe for success? the partner at executive chef of tao group, joining us live in studio next. ♪ "hello. you can go ahead and put your bag right here."
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"have a nice flight." ♪ music plays ♪ music plays
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traveling can feel like one big mystery. you're never quite sure what is coming your way. but when you've got an entire company who knows that the fewest cancellations and the most on-time flights are nothing if we can't get your things there, too. it's no wonder more people choose delta than any other airline.
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david: twitter getting a nice boost following an upgrade from jpmorgan. liz: who else but nicole petallides has the story on the floor of the new york stock exchange. nicole? >> it was nice to see twitter get a little pop since stock is to the downside, down 18% this year. up 3 1/2%. closed at 51.85. jpmorgan raised the price target up to 64 bucks from $54. why did they do that? it is all about digital advertising and they believe that twitter is certainly going to benefit in that sector. they will be the primary beneficiary of the shift toward mobile advertising and thus, putting a $64 price target. that being said, that looks pretty gait at 51.58.
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however the shareholders have been holding for the long haul, know that 74 watts annual high. so,. up from where it is now but not the high. liz: thank you, nicole. we have the s&p futures closing. need to talk to bob iaccino in pits of cme. today it was very tentative in the behavior, up, down. what do you think about tomorrow? >> everybody is forgetting about all the activity we have non-farm payrolls tomorrow. i think tomorrow's number is a bit of an outlyer. 219,000 range on non-farm payrolls. i think you will see revisions up from the numbers. that should be good for the overall market as well. we're predicting a little bit after rebound here. that's why we bought twitter today pause we think these things will rally. tomorrow non-farm payroll number, if not that is the risk of another correction. that is five 1/2%. that is not that bad considering potential for new highs. liz: thank you very much.
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david: bob iaccino. >> thank you. david: as many as 100 people may have been exposed to the first patient diagnosed with ebola coming into the united states. few have been closer to the ebola outbreak ground zero in west africa our next guest. dr. william fischer was right in the epicenter of the outbreak this summer caring for dozens of ebola patients while wearing heavy airless protective clothing in sweltering tropical heat. he shared his experience with friend and families through some very heart-breaking emails. he joins us now with some of his insights into this growing tragedy. doctor, thank you so much. these emails are just extraordinary, the ones you sent back in june. it must have been one hell of a decision to go through whether you should go or not. what finally made you decide to go to the ebola area? >> absolutely. so, the, i would say the four days he have by left were the most difficult because of the fear that surround this virus
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but ultimately the thought of being able to use my training as critical care physician to improve the quality of care and try to improve the outcomes of patients in guinea was what won me over. david: well the heartbreaking stories that you tell are extraordinary when you actually got there. one of the real tragedies which i don't think received another attention is what the pregnant women go through, particularly the younger pregnant women. you mentioned one in an email. you say, we also have an 18-year-old woman who is five months pregnant. has ebola and malaria. i thought being 18 was tough enough. i can only imagine being pregnant, infected with a uniformly fatal virus, having malaria and being in isolation zone, treated with people in spacesuits. what to this particular woman? >> this is a particularly tragic case. she unfortunately, she was actually hospitalized with her husband at the time and she started to have abdominal pain
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and cramping. actually, aborted the fetus and, unfortunately then subsequently bled out despite every aggressive means we had available. david: unbelievable. and, you mentioned her husband, just saying i have no life left after she died. >> absolutely. he had lost not only his mother-in-law and his wife and his mother and their first child. i mean it was absolutely devastating, to him. as well as to everybody there. david: one of the questions we are now confronting is how susceptible this one person came into dallas and other people who may come into the united states might be. in one of your emails you suggest that the symptoms are not always that noticeable. you say here from june 1st, hemorraghic complications occur only 50 to 60% of the time and many of them are mild. bloody diarrhea and vomiting of blood. it is different than what the movies and books have projected. is it possible, since not all of
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the symptoms are so dramatically obvious, that some might be missed? >> absolutely. this is what makes diagnosing ebola particularly difficult because all the symptoms typically associated with it, fever, vomiting, diarrhea, are also found in major diseases that affect sub-saharan africa. the difference in dallas this gentleman had epidemiologic plink and link to infected country and had symptoms. we have to have high vigilance for people that meet that criteria. david: as i mentioned there are 100 people being screened in texas for ebola. could it be possible, we know this one patient who had it was actually released from the hospital after first being admitted. so his symptoms were not noticed. i wonder how many other people being screened in africa for travel to the united states may have the same thing happen to them? >> it is definitely a possibility and i think as this epidemic continues to progress
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unchecked, the chances of another patient and subsequent patients coming to the united states who are infected will increase as well. david: well then, that leads to a question and it may sound cruel from your perspective because you know so many of these people in africa. should we cut off flights from those areas afflicted? >> i would not. in fact i would do exactly the opposite. i would continue to send aggressive resources to the affected area. i think only way that we're going to fully protect folks in the united states is to actually stop the emdep mick in these affected countries. instead of closing borders which in past epidemics have not worked i think we have to do the exact opposite. i think we have to be aggressive. david: just a personal final question, we have to wrap, you have a family of your own. are you glad that you went despite all the personal complications and would you go again? >> absolutely. to both those questions. we definitely, might wife and my kid and i had a tremendous amount of fear what i was doing
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but we also believed that the right thing to do was try to improve the quality of care that these people received. and i absolutely would go again. i think that, i think we have to be invested in the people in this area. we have to be aggressive in providing them the best level of care. david: you're a brave man. dr. william fischer. we're glad we had you on. come back and see us again. university of north carolina school of medicine. >> thank you very much. david: dr. william fischer, we appreciate it. thank you for your service. liz? liz: heroic doctor. david, high drama in hong kong after a new deadline set by protesters passes. who will blink first, right? we have to ask this question. wit i will be the government or the demonstrators? we have someone live in the heart of the action. also we've seen van wagoner ad displays, billboard sports stadium. the company is selling off a huge chunk of its business. van wagoner ceo, richard chef. this is great american story.
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david: time for a quick speed read of some of the day's other headlines, five stories, one minute. allianz ceo will step down next may. the move comes amid turbulence at allianz u.s. asset unit, pimco. you might have heard of that. nike delaying launch of lebron james's new shoe due to cosmetic issue. it was due to launch october 11th.
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nike has not released a new date. the company behind angry birds is planning to lay off 130 employees due to slower than expected company's growth. billionaire warren buffett is getting into auto sales business. buffett is berkshire hathaway is buying the largest privately owned auto dealership. terms of the deal were not disclosed. >> >> according to report by challenger, gray & christmas, job cuts plunged 24% from a year ago, to about 30,000. and that is today's "speed read." [buzzer] liz: minutes before that midnight deadline set by protesters, hong kong's leader says he has no plans to resign but is open to talks. david: police were seen loading supplies of antiriot gear earlier today in preparation for more protests. joining us is tiffany app a local journalist in hong kong at the heart of the action or
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covering action for the past week. tiffany, thanks for joining us. very early in the morning there, about 4:30. the stakes could not be higher for chinese government. they don't want chaos in hong kong. they are looking to resolve this are they any closer to compromising with protesters? >> i would say no. like you said, the protesters had two demands. one is that to reopen the talks and second was tore c.y. leung the chief executive to step down. obviously that did not happen tonight. just before the people's daily, the mouthpiece issued very hard-line editorial. if you recall in 19989 tee enmen protest, a similar hard-line was issued before tangs rolled in. -- tianamen. i'm not saying they will send in the pla but very clear they're not budging.
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liz: not budging but this thing eventually ends, doesn't it? tell us about the actual crowd. there are at love young people there. at some point they have to go back to their daily lives. how stalwart are they in their efforts to stay there and get their message across? >> yeah. it is kind of amazing. i mean very much student-led. a lot of university students, even high school students. when you walk among the crowd you will often seen them spread out with homework. after sunday, a lot of tear gas, i'm sorry, sunday tear gas was used but after that it has been very, very calm. people could take their homework out with them. so that is very admirable. i was talking to one girl yesterday. she had been sleeping. of slept one night on the streets and has been back every day since. and she said, she was willing to come back for an entire month to make a impact.
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they were being very accommodating, catching up on lectures via video. yeah. -- david: forgive me interrupting, tiffany. we're looking at live pictures this is not tape. this is happening right now at 4:27 in the morning there. how much is all of this interfering with the commerce of hong kong right now? >> i think it is had an extreme impact, really. this is a national day, golden week, is what we call golden week. main land tourists have a week off. what they usually do is come down to hong kong to shop. so actually the protests have paralyzed, you know, starting with the border central admiralty where the government offices are and what surprised everybody they blocked up shopping districts and the bay and mong. you see big retailers, those department stores, they're
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shuttered. david: wow. liz: that is terrible because this a big capitalistic society, is it not, tiffany? they're clogging that main artery there. we pointed that out certainly. but financial district as well. any access in there? >> it depends during the day, nighttime crowds come out. and what people who have slept in the stretches, overnight, they go home in the morning to shower. so some parts may clear up in the day. the crowd dwindles during the day and they come back out later. david: tiffany ap, terrific stuff. stay with us. you're a touchstone for what is happening there. thank you very much for joining us very early in the morning in hong kong. >> thank you. david: how do you turn a $25,000 loan into a multi, multi, hundred million dollar business? the ceo of van wagoner group, responsible for ads you see just about everywhere, from baseball games to times square to blimps, he joins us exclusively coming
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up. liz: and they run the most profitable restaurant in the entire country. david: wow. liz: they're continuing to expand worldwide despite economic concerns. what is their secret? we have the tao group partner and corporate executive chef coming up. ♪ your pocket right now? i have $40, $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. ♪ i'm 55 years old and i have diabetic nerve pain. the pain was terrible. my feet hurt so bad. it felt like hot pins and needles coming from the inside out of my skin. when i did go see the doctor, and he prescribed lyrica,
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liz: in a series of mysterious tweets late last night, tesla ceo elon musk here two weeks ago
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said it was about time to unveil the d on october 9th. so the tweet include ad photo that showed a partially open garage, with what looks like a tesla model s and letter d on the garage. musk also mentioned, quote, something else would be unveiled on the same day. well, following that tweet, shares of tesla jumped nearly 5% today. so what could the d and so-called something else be? guesses range from a high performance model s to driver-assisted technology. some suggestions though, may not have been appropriate. that prompted a second tweet from musk stating quote, i love internet. comments had me rolling on the floor laughing. glad i didn't mention the other letter. we've been asking you on social media what you do you think the d is? what do you think tesla could have. steve wood, he has been listening to us. steve wrote in, high performance race car maybe. david: oh. liz: what do you think? we want to hear from you. send us your response on
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facebook.com/afterthebell page. david: it is kind after fun question. liz: yeah. david: we'll find out october 9th or 10th. you see them driving down highways and walking down times square, billboards, they're just everywhere. one of the leaders in the billboard advertising space, van wagoner sold off its build board assets to cbs outdoor for 690 million bucks. >> this is not the first time the ceo, richard shape, sold off the billboard assets. how much did the change in landscape of the advertising world impact this scale? what is next for van wagoner? here is with us, fox business exclusive ceo, richard shapes. we love your story because it is the great american entrepreneurial dream. you started as taxi driver in new york city. you were able to grow a business. you sold that one. you grew van wagoner and sold this to cbs. let's talk about the sale itself. why cbs? >> we knew it was time for to sell one of the big players. the outdoor advertising industry
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is changing. there is transformation going on to digital advertising. i think in very near future, even on streets of new york you will see thousands of digital displays on bus shelters and so forth and i think it was time for smaller business like ourselves to hand off to somebody like cbs that can take it on to the next step. david: why wouldn't you do that? -- couldn't do. that you're a real entrepreneur. liz mentioned you started as cab driver. you started business with a loan from your dad? >> $25,000 from my dad in 1970. david: great american success story. you can do it. start from nothing and build? why not build the electronic division. >> i think industry is changing a bit. i think that, model we used to be, and put out billboard and gave the landlord $5,000 a month and sold the billboard for $25,000 a month was really a good business. david: yeah. >> things changed since then. now you see landlords much different. they say, you're getting
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$25,000 a month? we would like to get 20. guaranteed and if it goes up we want 70% of the revenue. so industry is changed. now it is really on the change. it was more of a real estate business. you have one sign at a time and you sold that specific sign. and now with the advent of digital, it will be much more like broadcast where, you know, sell 50 spots in a day. so i think it is a different industry. we were much more akin to real estate. liz: richard, you've been through good times and bad. of course you've been able to grow two business, multi, multimillion-dollar businesses. i'm sure some of them started at or near after recessions too. what do you think of the atmosphere right now? do you still believe this country is a place for the american dream? >> well you know, we went through the last long time in a down fashion. it was tough. since 2007, when everybody was having a good time, it has been different. the outdoor industry stayed
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pretty well. we were keeping pace with advertising spending. i think it will get better. we'll see how the economy does. digital outdoor will change advertising. david: you built businesses late 1970s. i remember that time. that wasn't a piece of cake either. that was tough time, with inflation double digits and interest rates up. you made it through bad times before. >> in 1979 i bought almost all times in times square. i bought a company from this guy, douglas lee. i had 14 billboards, of them, 12 of them were vacant. nobody wanted any place near times square that time. i went through that. we went to japan. a time no one heard or no one in the united states use of jvc, aiwa, tdk, minute noltta. we got japanese and core reran
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advertisers to advertise in times square and really changed -- liz: a real visionary, but, it takes guts, doesn't it? what is your message to would be entrepreneurs or people have the great american business within them? what is your piece of advice to them? >> one thing i think that is important, important to be in the right industry. you don't see people starting out in the chemical business and then ending up in the retail business. often, sometimes you do, but generally the industry you started in, the industry that you know, industry of context is where you spend more of your time. liz: that you love? that you have passion for? >> yeah. so i think you have to find the industry. find the area you want to be in and spend your time there, by the way, you spent a lot of time doing charity work for the dough fund, if you don't know the dough fund is best charities in america. puts homeless people back on the streets in a great way. gives them their dignity back. thank you. >> thank you. liz: good luck through the next stage of life, richard schaps.
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david: we asked you to comment on what the new tesla could be. you already chimed in. matt on twitter, defy what tesla done to the traditional car industry standard. liz: very nice. speaking of d, how about dining. fine dining business roaring back after taking a big hit during the recession. we have mastermind behind one of the most successful restaurant brands in the u.s. tao group corporate executive chef and partner. david: buying this is not for nervous real estate investor. we'll give you best markets in the country for buying residential properties to rent. she's still the one for you.
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david: just one day after announcing its first feature film netflix announced yet another push into movies with a four-movie deal with comedian adam sandler. sandler ranks one of most popular stars on netflix. his films are among the most viewed in u.s. and globally on netflix. netflix will finance films and work with sandler's production company on the movies. sandler reportedly gets more than $15 million per movie from studios. he has struggled recently to star in a suck esful film lately. last year forbes called him the most overpaid actor. >> really? most overpaid? fine dining restaurants took a huge hit during the recession. very tough time for them. but the tao group is one brand that bucked the trend problem. new york to las vegas, we have
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the corporate executive chef and mastermind behind some of most successful and lavish restaurants to open in the past decade. we want to ask him what is behind tao's success. a fox business exclusive with tao partner and corporate executive chef. you dress like a chef with a black shirt. >> to hide all the stains. liz: cooking stains. you have friend here. david and i love it. ao restaurant. >> thank you. liz: but you are also in a way a very interesting metric for how the economy is doing because you're not an inexpensive restaurant to go to. >> no. liz: but how's business? >> business is very good in new york and las vegas. you know we're a group that fill as niche. we have a very loyal clientele. we meet guest expectations. we're kind of a one-stop shopping. vibe dining, good food. we have the nightlife element. you come in to have a great time. liz: we're looking at map. you have two in new york. one in las vegas, one in sydney,
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australia. >> the one in sydney is mark key nightclub. liz: that leaves much of the map empty of tao. how do you pick your next area to open? >> we look at demographics. size of the city. population density. a city like london would be good city for us. city like l.a. would be good city. liz: are you considering those two? >> we're considering anything. depends on the deal. if we get a good real estate deal in a good market we would take a look at it. liz: talk about traffic, ralph. how is the traffic at the stores? who sees most traffic? i'm assuming vegas. am i wrong, right? >> with the nightclub, yes. but tao downtown is busiest. it is newest. in a great location down in the meatpacking district so we get lot of people, a lot of young people. >> you guys made it through a very tough time. >> yeah. >> in fact the entire restaurant industry. we can show what business was like in 2009. >> very bad. liz: the chart we made up shows in 2009, it was way depressed. of course that was the low of
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the markets. >> right. liz: then you start to see the move up. >> once panic wears off. people come back and they enjoy. liz: fine dining restaurant traffic has certainly improved. i think it was down 13% in 2009. and now it is climbing there it is. up about 6%. liz: inexpensive getaway. >> what is your average ticket if you say it is inexpensive? >> $100 a head. 100 bucks. liz: which is not inexpensive. >> no. liz: how are you guys staying ahead of all other choices out there. >> we offer, when you go out to dinner, it is about the meal. it is about the vibe. it is about the look. it is about feel of people in there. so it is kind of an all encompassing experience to everybody. not just sitting in a restaurant for four hours having tasting of 22 different items. you go there to have fun and great meal. liz: you're running a business. ask about minimum wage. a lot of states decided to move, states run by both democrats and republicans, starting to move to raise the minimum wage rate.
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how will that affect your business if at all? >> we try to stay nimble. we try not to pass too much of that increase on to the guest experience. but, it has been a tough challenge for us. tough challenge. liz: will it derail anything? >> i don't think so. we're handling and it and be a sort it. try to figure out how to give the best guest experience we can. liz: our not just a business man. you're the executive chef. >> yes. liz: what send you over the edge when you walk in to observe what is going on, we can't be doing this, folks? >> carelessness. cooks and waiters and runners who don't pay attention to the food. putting sloppy stuff out. that is really the worst thing. people throwing stuff on a dish. liz: did you dream of doing this? we just had the guy from van wagoner, ceo. he said, you go with your passion. >> go with your passion. i never did it for the money. don't tell my bosses that. just did it because i loved it and wanted to do it. when you do that the money
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follows. >> ralph, great to see you. good luck with tao. when you open next one come back. >> thank you. liz: this is interesting, david, when you look at opportunities here, doing incredibly good business. david: amazing you make money out of something you love. that is always wonderful. >> excellent. david: looking for new way to make money? maybe you should buy residential real estate in order to rent it out. we find out where you get the most bang for your buck if interested in that. actor adam sandler, ink ad major deal with netflix. could give his career a new lease on life. what is driving his move to streaming video as soon as we come back. >> hi, everybody, i'm gerri willis, coming up on my show at the top. hour. the latest on ebola in this country and the response by this country and is it enough? why is the cdc under fire? that one of the big stories coming up on "the willis report" in a few minutes.
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ss. liz: the cost of renting a home is rising in many u.s. markets. what does that mean? it means the buying residential real estate to use as rental property can be so rewarding, if you know where to look. david: so where do homeowners get the highest return on a rental? fox business's cheryl casone joining us. i would guess manhattan, am i
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wrong. >> oh, my goodness that is other side of it. no. location, location, location. get this, top two areas in the nation to buy something if you want it for rental income, north carolina and atlanta, georgia area. this is a brand new report. third quarter, 2014. from realtytrac. they basically took average rent prices in 71% of the country we should say, if you look at total population, versus what prices are. now, it was better to be a landlord last year versus this year i want to say. you would have made more after profit last year versus this year. housing prices have gone up. if you look at top five areas, where you can actually make money, it is kind of interesting. i've never been to rocky mountain north carolina. i'm sure it is gorgeous. just got back from charlotte, but that is number one place. you can make 41% annual return on rental income. atlanta metro, 26%. kokomo, 22%.
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palatka, florida, 22%. detroit, michigan, 20%. think of all the big money investors, especially canadians flooding into detroit for instance, during the, rental crash. well, they're all laughing all the way to the bank right now, buying all the homes up in the detroit area. to your point about new york, david, bad news. one of the worst places you should buy something and use it as a rental property. new york, l.a., san diego even. san francisco, forget it. the boston, don't even do it. not even worth it. they crunched numbers. the red on the map those shows you where it is not a good idea to buy a house to use it as a peeves rental property to make some money. green, better bet. kind of gives you a sense really where you can put your money, maybe not put your money. >> interesting. so go in with your eyes wide open? >> absolutely. you will have to be potentially out of town landlord which i did
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once. not much fun. if you have college kid in there, there is destruction. you will have to pay to fix it. it is a very tough thing to try and do. a lot of people romanticize the idea of being a landlord. i will buy five houses to retire on that. not that simple at all. very complicated today. >> thank you, cheryl. very much. cheryl casone. david: not like the game of monopoly. >> that's true. david: cheryl, thank you. general motors releasing the fastest car yet. how fast can the sports car go? we'll give you all the details when we go "off the desk." liz: how would you like a job as a professional instagrammer? who knew that was even a job. coming up we'll tell you what streaming media company is looking to hire three people to travel the world and take pictures for instagram. david: kenney wantse it. could help increase returns so you can enjoy that second home sooner.
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starts at 6:30 a.m. - on the (vo) rush hounose.und here but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours. david: it is time to go off the desk. if you think you have the best pictures on instagram, listen up. netflix has announced it is
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hiring three people to become official instagrammers of netflix. for two weeks, you will be able to travel to iconic film and tv locations to take pictures and visit sets of netflix originals. probably meet the cast. the company is playing $2,000 per week. they will handle all travel arrangements. if you want to apply, post three of your best pictures to #graham master. >> also "off the desk," general motors claiming the new corvette will be on the market early next year. look at that engine. hear that engine. supercar-like performance. ability to go from 0 to 60 in less than three seconds. putting this corvette in the same league as much price i is syer supercars. the starting price? $79,000. david. david: sweet. >> if it is speed you're looking for. this may be a real steal.
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porsche 918 spider goes 0 to 60 in less than three seconds but costs you 900,000. david: 79,000 is a bargain. liz: such a deal. david: we asked you on facebook and twitter, what do you think tesla has up its chief? joe says i think the d will be an suv. liz: mark thinks that the d is driver assist. david: what do you think? liz: for maybe some drivetrain something. what do i mow? david: you have the inside track. liz: he is on some show. david: number two will be the september ism non-manufacturing index to be released 10 a.m. the read something expected to drop to 58.5 from 59.6 in august. liz: number one thing to watch tomorrow, the september jobs report, the biggie, due out 8:30 a.m. eastern. fox business will have it second it comes out. economists expecting non-farm payrolls to rise by 2,155,000. the unemployment rate is to rem.
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stay tuned, maria bartiromo at 9:00 a.m. will have play-by-play. david: the market was flat in anticipation of that. chances are the market moves dramatically one way or the other depending on that report. "the willis report" is next. >> hello, everybody, i'm gerri willis. coming up today on the show. things are getting more intense in hong kong as deadline passes for the city's leader to resign. we'll have the latest. president once again singing his own praises when it comes to the economy but are you feeling the benefits of this so-called recovery? thinking this of scooping up rental properties as housing market improves? we'll tell you how and where to do just that. "willis report where consumers are our business starts right now. gerri: total of four people now quarantined over ebola fears and another 100 people monitored for possible contact with the first diagnosed ebola patient in the u.s. is that enough?

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