tv After the Bell FOX Business January 20, 2015 4:00pm-5:01pm EST
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another. we're looking for big number of 57 million. [closing bell ringing] david: looks like the dow is managing to push into positive territory. it has been up an down and up and down. it really started severely to the downside. we had china's numbers coming out early in the morning. they were better than expected. only index is down russell 2000. small and medium sized index is -- david: down full half of a percent. ibm and netflix we'll get to those as soon as they are released. "after the bell" starts right now. david: let's get into the action. we have dan wontroswki from janney capital. he says watch the 10-year treasury. and alan knuckman, is at the
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cme. alan, start with you. i want to start with gold. since the markets were basically flat or ended the day flat. there is a very strong gold move and has been for the past week or some you say it is more indicative of what is happening to the doll markets than the dollar move. explain. >> that is how psychology works. nobody wanted to buy gold a couple months ago at 1200 level floundering. we had a rekey reversal. nobody was a believer. now that it moved up a couple hundred dollars off the lows, we're at the highest level since august. people are starting to pay attention to the market. the same thing can happen in crude oil. we see that in the futures. if you look out three to six months out and not worry about the day-to-day activities. >> that is hard to do with the volatility. dan, you say we are vulnerable to a correction. do explain.
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>> you know, we've been in correction mode since the beginning of the new year. it has inbeen significant to date but we've certainly seen increased volatility. i think coming into the new year, the markets were frothy and very overbought. i think a pause that sort of refreshes the markets that clears away some overbought pressures would be helpful. we're not looking at the start of a new secular bear market. we don't think this is a significant market top but typically in bull market structures like this you see corrective actions. it could befy or 6% which is the standard over last few years or 10% or greater. you can certainly see flushouts like that. we'll use those corrections opportunistically in the weeks and months ahead. david: bob, talk about the economy. earnings have not been great this season. do you expect them to get a little better or a little worse? >> from this point i think expectations are pretty low for the fourth quarter. and that has been driven mostly
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by the financials and the energy sector. i suspect though, in the end, earnings will probably come in a little better than what fact set is reporting right now which is roughly under 1%. david: oh, that's good. lori: alan, all eyes on ecb that is the headline event thursday for global markets. what do you anticipate in reaction? >> all the traders talk about obviously there is action and will it be enough and how will the market react? it has been widely anticipated for weeks and weeks and weeks. that's why where we are with the euro currency moving to new lows below 1.15 last week and dollar, 93.5. the question is not what we'll do or how we react but is it enough to give markets a jolt. if you look at foreign markets, nikkei is bounced back. german market bounced off its lows. i think it should be a modest reaction to what happens. david: well, we have seen the
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10-year interest rates reacting dramatically over the past year or so in the opposite direction that all the experts said. they thought it would go up. it has come way down. dan, are 10-year treasury rates indicative of market behavior. if so, how? >> well, i mean in my opinion it depend on what cycle you're in. i tend to think the u.s. is entering an inflationary or reflation fairy bull cycle. in this context, in this model, we do believe that rates towards the long end of the curve will be for most part postively coral layed to equity market returns. we've seen that over last self week as markets corrected into the rest of the year. griping lower, grinding lower, breaking 2%, hitting 1.08 today. so what we're asking our clients to do, if you're looking at sector allocation, if you're looking at equity market allocation, have an idea what
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you think will happen toward the long ends of the curve. david: we see netflix. we're getting numbers n. forgive me for interrupting, dan. >> beat on. >> pershare -- per share, did not beat on earnings per share. what they're reporting that in the united states, 39 million roughly subscription users. that is not the global number. i know everyone will look at that number. david: the global number they're expecting by the way is 57 million. that is the total members netflix would have projected for the quarter. once you get that number, 57 is the number. that would include 1.8 million subscribers in the u.s. and 2.1 million subscribers overseas. dan, once again we're looking at numbers right now. it looks like a beat. it is definitely a beat on the top line.
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are you going into some of these media stocks like netflix? >> i think you can in beaten-up name such as netflix. coming into today's report i think the name had about a 10% implied move. that would suggest on a beat, not a significant beat, but on a beat you can register this up into 363.08 zone in terms of price. that would be a nice trade especially considering where netflix has fallen to. i think you can dip your toes into the water. i think some analyst projections with valuations or i should say price points pushing 500 seem a little aggressive but from a trading perspective -- david: forgive me, for interrupting, dan, we have to point out numbers right now. this is breaking us into. we're up over 10% on netflix numbers. as they go through looking at the key number, the 57 million numbers we're getting indications not only did it beat on the top line but on the subscription number, lori, it is having very well.
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lori: after-hours, david, netflix up 10%. it has a habit of moving on a wide margin after earnings report. netflix lowered the bar on earnings so it was an easier target to beat of the reiterating numbers on eps. 72 cents was the and 45 was the estimate. adam has numbers on ibn. >> street was expecting $5.41. on revenue it is a miss, 24.11 billion. street was expecting 24.77 billion, lori. lori: a miss for ibm. there is the after-hours. so a little higher looks like right now. we'll see how that adjusts with the top line miss on ibm. all right, let's move it back to our panel. dan, if you want to comment on some earnings we're receiving. overall it has been a very satisfactory fourth quarter earnings reporting season. how do you think that will affect the valuation of the
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marketplace as a whole? >> look, the market came into this year, the s&p valued at 17, 18 times. that is a little bit higher than the historical mean which is typically around 15 types as i said earlier. market is coming into the new year. we're a bit overbought. there was a lot of froth, a lot of bullish sentiment. i think in earnings season that sort of meets expectations. given our geopolitical climate here you could see some steam pulled away from this thing. we were talking about a correction earlier. i think you can see a modest correction, based on meeting expectations. given, what is a going on in currency markets. what is going on in the euro region. david: let me go back to adam, for a second here. we're getting these breaking numbers from thomson reuters. we now have, now have the subscription numbers. we were looking for 57 billion. it what are the final numbers, adam.
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>> 57.39 million. 57.39 million. it is a beat on what the street was expecting. david: i have seen, forgive me for interrupting you, adam, i'm seeing 61.44 million, as total streaming members from thomson reuters. whether it is or 58 or -- forgive me, you were right, adam. that is what they see for the first quarter of this year is 61 million. so they are setting their sights very high. i want to go back to alan for a second. are they setting their sights too high or do you think netflix could explode? after hours the trade something enormous, 10% ahead right now. >> that ace momentum stock. you never front to get yourself in front of. that obviously they're still getting that subscriber growth but i think in the big picture, they're on track, and i think this earnings season though it has not been stellar i think it will calm a lot of fierce. i think that could actually cause the market to relax and accelerate this trend to the upside as people were fearful
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that the earnings wouldn't come in. but the bars are so, so low this quarter i don't think it's, it will be very, very hard to disappoint. david: "house of cards," that's what did i had for netflix. everybody wants to seat next sees of "house of cards." forgive the interruptions. but we had the breaking news. we appreciate you joining us. dan, paul, and alan knuckman. lori: content is king, right? david: right, right. lori: the president is set to deliver the state of the union tonight. it is expected he will propose big tack increases to the tune of $321 billion. david: whether they get past congress is another issue. peter bouncer at the white house with a preview. peter? >> dave and lori, we have new video for this afternoon. the president met with voters who wrote him letters about problems and concerns. he invited them to the state of the union address tonight. had them in the oval office as he continues to work on the sweep. president's aides say they will
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be focus of the speech tonight, the middle class and how to help the my dill class. the president will propose a raft of new tax breaks for middle class voters. he will be taking some credit for the economy, formore forcefully we are told. to pay for the new tax breaks is looking for $321 billion on higher capital-gains taxes on wealthier taxpayers and new fees on banks, big banks. he wants higher minimum wage. we'll talk about that once again. more paid sick leave for workers. proposed two years of free community college for people who want to go back and to try to improve their skills. on last two items here, trade agreements and cybersecurity initiatives he will probably get some cooperation and some buy-in from republicans. but as far as cooperating on new taxes, well, take a listen. >> if republicans have a different vision, if there are some areas where they disagree they're welcome to say so. if they think it is more important to protect a loophole
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for people with trust fund they can certainly make that case of the president believes however, that the community college education is more important for middle class families. >> reality of none of that dinging and dunking will change anything about trajectory of the economy unless you took a serious look at overall tax code. simplify it, do fairly significant things to the code. >> so there are a lot of analysts who expect this to be a very populist speech and at least to help the democrats set their agenda for the 2016 elections. david and lori. david: or to hurt the democrats who want to set an agenda different trot president. could go either way. peter barnes, thank you very much. we'll be watching. fox business will have full coverage of the president's state of the union tonight. our own neil cavuto. don't you filiformable neil has it -- comfortable neil has it covered? keep it right here, 8:00 p.m. you don't have to go any further.
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with all the new tax proposals is the president poisoning waters of compromise between the new congress and moderate democrats? we'll debate that next. lori: oil's collapse made a lot of energy names cheap, leading some strategists to say it is time to go bottom fish you but is that a dangerous game? david: we talked about that a little bit with our panel. financials and the markets pretty much mirrored each other over the past five years. could a recent downturn in bank earnings and stocks be a can nary in the coal mine? we debate that and more with our panel straight ahead. ♪ how could a luminous protein in jellyfish, impact life expectancy in the u.s.,
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david: netflix is popping after they reported earnings moments ago. lori: nicole petallides on floor of new york stock exchange. with a loyal more earns reports. nicole. >> this stock was a big mover to the upvied. the stock which closed at 348.08 is in 391.92 range. this after it beat on earnings per share, exceeded expectations on the user growth and total members i should say, the paid members. with that, and revenue right in line. also, the global plans for
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expansion. they will be launching netflix in australia and new zealand. they said they will do that in the late first quarter. over the next two years they will complete their global expansion plans. this is likely to be a big mover tomorrow. as you can see here, 3.92 and change. over the last -- 392 and change. it would be up, could be down. will be a big mover tomorrow. david: already a 12% move after-hours. we'll see if it sticks there tomorrow. nicole, thank you very much. lori: the president as you by now know is expected to announce a number of new initiatives in his address that the new congress described as nonstarters. david: so is the president essentially poisoning the well of any compromise. we have genevieve wood from the heritage foundation. genevieve, these tax proposals are insult to compromise. even some moderate democrats are blanching at idea of raising
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taxes as much as the president wants to. i'm just wondering if he is trying to move his party so far to the left that no moderate democrat would be able to make any deal on tax simplification to the president? i mean with the new congress, forgive me, go ahead. >> certainly looks that way. this is the president who acts as though he didn't know what happened in november. he said before the election, my policies are on the ballot along with all these folks running for office. it was a pretty resounding answer from voters they didn't like the direction the country was headed. what does the president do since then? runs around congress doing amnesty. decide cuba no longer needs any new sanctions. without the will of people and will of elected officials. and now in the first act, official act since congress has come into play he is saying, by the way all the things voters didn't like anymore, i will double down on them. this isn't the first time obama has called for tax increases in the state of the union. he has done it every single year. lori: so, not asking you to, i
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don't know, analyze the president's find set you but really, what is his endgame? what does he truly hope to the accomplish? >> i've been watching your network today, a lot of people said this because it is true. there is a big attempt to reignite that class warfare mentality, doing that through rhetoric. doing it through policies he is putting on the table. i don't think this is about getting along with congress. what he wants to do is setting up battleground for 2016. so he is playing to the liberal base. i don't think it will play well with more of the folks in the middle of the country but part of that will be up to republicans. how do they respond. how do they get innocent from of these issues instead of letting him set the agenda. david: here is one way they could do it, the republicans. take this report. simpson-bowles report came out in 2010. they could drill down to the focal point of this report. all comes down to tax rates. here is what they said back in 2010. again, simpson is republican,
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bowles a democrat. so it is bipartisan. eliminate all income tax expenditures, that means deductions, dedicate a portion of the additional revenue to deficit reduction and use the remaining revenue to lower rates. here is how low simpson-bowles, again, bipartisan, said the rates should be. top personal rate, 23%. of the middle rate, 14. bottom rate, 8%. top corporate rate, 26%. the republicans could lay that out on the president's table and said here, here is bipartisanism in tax simplification. >> well they could do that i would have to advise them, not to do that because. david: why? >> because simpson-bowles had some good ideas in it, not just on tax reform but on entitlements -- david: genevieve, this is specific. this is a bipartisan report. this is not theoretical. could say bring down tax rates, get rid of deductions. p president sign this bill. >> what they didn't do, how to
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cut spending. that is the problem with simpson-bowles, said problem we're not taking enough taxes. david: you won't have to cut taxes if you lower rates and revenue increases which happened before. >> but i understand they may have cut income taxes but across the board they increased capital gains, increased taxes on simpson-bowles. this is heritage estimate, we looked at it very close. if simpson-bowles put in place the average american household would see taxes go up over $8,000 of life of the plan which is eight years. it may have looked good up front. but as you look at details it actually increased tax amount and economy to about 20% which is well above the historical average of 18 even more than obama wanted to do it. i'm all for putting specifics on table. whether traditional flat tax idea, fair tax idea, maybe national retail sales tax, we ought to be taxing people on what they take out of the economy, not what they put into
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the economy. we ought to be pushing opportunity for everybody, but favoritism to none. and problem in all, even including simpson and bowles they picked winners and losers which is exactly what the president wants to do. david: genevieve, i'm a very simple guy. just lower the damn rates, get rid of damn deductions. >> i'm for that. those are good ideas. david: all right. genevieve, good to see you. >> thank you. david: i hope republicans get it together to put something on the desk. lori: i'm curious to joni ernst, response to the. david: we'll cover it on fbn. >> state of the union or markets or ecb decision on thursday. send us a message on facebook or tweet us @fbnatb. david: meanwhile, did you see what happened to oil prices? everybody said maybe they had their bottom yesterday. another 5.25% today, fall. is now the time to get in and buy those beaten down energy stocks? or is buying at the bottom a bad
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as 9.7%. breaking after hours, netflix soaring more than 12% after reporting earnings that beat eps estimates. the company also added more users than the street expected. david: let's hope netflix stays there. meanwhile the president's address tonight is getting is a lot of attention, thursday's decision bit european central bank will probably have more impact on the markets, even here our markets. let's talk about both with our panel. rick unofficer, "forbes" senior political contributor, star of "forbes on fox.." and our own adam shapiro. adam, which do you think is more important, the president's address tonight or the ecb does on thursday? >> absolutely the ecb. it will be too little if they say 500 billion. if it is 1 trillion euro it will not solve the problem. you have 19 independent nations tied bit currency. not the same as our central banks does something. like the federal reserve buying debt of illinois.
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people would be outraged if that happen. europe is a mess and will be reflected no matter what the numbers is. david: germans are close to being outraged. paul what is more important? >> not even close, david, it is the ecb the president's speech, every year the state of the union especially pep rally for the president or party. half the time talking more to congress than people out in the street. david: this time he isn't even talking to congress. >> ecb money is directly about what the central bank will do in the market. the market will care much more about that. what adam said is true, not even close. david: rick, what do you think is more important? >> you all got it right. it is not even a close call. if there was any chance congress would adopt any of the things the president will propose tonight, might be a different answer. i think we all know that is not going to happen. therefore this is real, what is going to happen in europe. it's a bit risky to say the least. no question it has much greater impact. david: by the way, rick, i have to ask you, because you have contacts with democratic party,
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is there any moderate democrats if the president hadn't taken such a hard-line might have done a a compromise with republicans? >> look, it is too early to ask that question. i still think we'll see if there are compromises to be done of the hard-line is a starting position. i think we have to be a little bit cale when we talked about these proposed tax increases. you may find more support, say, stepping up, getting rid of stepped up basis on leaving stocks and bond to your family when you done than on some other issues. it just depends but i think you will see some discussion. if we get rid of stepped up basis expect a lowering rate on the estate tax. david: keep your hands off our inheritance is the message to the government. >> i tend to agree with that. >> when many thought it would touch the bottom and buying into gold and oil stocks it sunk another 5.25%. is it too early to call a bottom for oil or a perfect time to go
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bottom fishing in a sector like this? by the way some of our guests suggested now is the time to go bottom-fishing. let's listen. >> we think the stocks look very attractive here and if you look at their performance relative to crude oil they're actually been outperforming since mid-december. >> this is how you make money, big money in the long run, buying fat pitches and things out of favor. >> go mild to wild. xle, an etf. bying the s&p components of energy. david: rick, what do you think of these guys, are they on the mark or are you catching a falling knife? >> the surest way to lose money is trying to find a bottom. don't worry about it. buy it when it is low. what amazes me the average guy doesn't understand, buying oil stocks is perfect hedge to oil prices. price at gas bum pump goes up, guess what? your stock goes up with it. if it goes down at stock market, goes down to the gas pump.
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everybody should have oil stocks. david: paul, is it too early to call a bottom to oil? we saw what happened today. >> of course it is too early. only good thing if you call it know now closer to the bottom than you were this morning or last week. you're getting closer to it. you can't predict to where this thing is going. david: is it safe to buy oil stocks? >> it's a risk. it is a risk. how much risk can you bear. are you willing to lose more money in hopes you're closer to the bottom than we were month ago. david: adam we have one for one against. you are the tiebreaker. what do you think? >> if you're tying to petroleum in oil sector. you may want this. goldman sachs in the last quarter said oil would be $58 a bear. they missed it. so, you know, go get burned if you want to play this game. david: don't you love it when the experts are wrong. >> all missed it, dade, all the experts. david: just like interest rates. i love it. coming up next with our panel, are poor bank earnings a canary in the coal mine?
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google wants to gift whole world internet access. lori? lori: all right. want to know what the interview process is like before applying for a job or whether employees like working there? even what the pay is. is that possible? apparently so. we'll speak with ceo of glass door, letting job-seekers do just that. it just got a big backing from google. plus americans enjoying low gas prices now at six-year lows but could congress put an end to that? details next. ♪
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and their families is without equal. start investing with as little as fifty dollars. david: yet another bank reported weaker-than-expected earnings. this time morgan stanley. that makes this earnings season a bad one so far for banks. the financial sector is getting hit as a result. are they the canary in the coal mine? we're back with our panel. paul, first to you, what do you think? i think they could be. they're all profitable, they're all making money. not like they're not making money. >> bingo. >> all the banks there are different reasons they all did poorly but as a group they did poorly. the thing you want to be concerned about, earnings growth is not stronger. revenue growth is even weaker. you have not seen a freight up tick in the economy driving demand, driving revenue, driving profits. normal things. it has all been the financial engineering. the banks can't do that anymore, yeah, it's a concern.
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david: rick ungar, i'm looking at xlf, a conglomerate of all banking stocks. year to state they are down 4.7%. compared to 1% drop for the s&p. >> you will forgive me if i don't hold a benefit for any of the banks. one thing you can be sure of in this world along with death and taxes, the banks will always make money. >> bingo. >> morgan stanley made 20% more profits than last year. david: rick, this is not about whether you have sympathy for the banks. about banks going down is telling you anything about the economy. >> no. david, no. >> it is telling you it was a very difficult currency trading period. morgan stanley has a lot of their money in that. that will even out. i promise you by this time next year they will be fine. david: adam, i know what you think. >> morgan stanley made 6.15 billion in profit for the year. jpmorgan, jamie dimon said they have to stop stepping in dog you know what. they had quote, 2014 was a record year for the firm for net
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income and earnings per share. they made 21.8 billion. what is this discussion even about? david: i will tell you what it is about? paul, it is about 50,000 jobs lost in the financial sector. you can not discount when they fire 50,000 people there is something going on there. >> yeah. but look, you have to be worried whether or not they make money. banks always make money. if you invest in the stock market you have to worry about profit growth, is there enough of it. buying stocks for year, on record, they're off record highs but not too much off the record highs. you have to be concerned about the growth picture. david: breaking in just the last couple of minutes, spacex confirming that google is going to be investing a billion dollars with fidelity on the spacex program. can elon musk make good on the promise to use the spacex rockets to beam cheap internet around the world? what do you think, rick? do you think it's a good bet? >> i think it is a great bet. face it, google is trying to figure out how to do this. they failed with every single effort. if anybody can work this out, it
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is spacex. great investment. if i had a billion laying around i would do it too. >> adam, you love this stuff. do you think google will succeed? >> absolutely. i think elon musk is the thomas edison. he is just amazing. yes they will do this. david: although, paul, he is one of those guys, i have got to bring it up, who relies on government subsidies quite a bit as part of his business model. >> he does but google does and google has billions and billions of dollars. a billion dollars sound like a lot. not a lot to them though. david: amazing, isn't it. >> such a silicon valley thing, spacex, google, putting satellites, literally pie-in-the-sky but look, this is what silicon valley does. david: did you ever think that a billion dollar investment you would use the word just before announcing a billion dollar investment? a wonderful waffled we live in. i love it. rick ungar, paul vina, adam shapiro. lori. lori: couch change in my house. no. want to get a leg up on the next
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david: one site offers inside information from current employees who share views anonymously online and write the ceos. lori: we have ceo of a fast-growing startup, glass door. welcome to you, sir. give us a sense who glass door is for. is it for employers, employees or for both? >> it is really for both. glass door is the largest community that bringing together all the jobs available in a market, pretty much every job available in the united states but what is magical we combine that then with the stories from people who work at those companies. they tell us, they tell others in the community the best parts
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of working for their company, the parts that could be improved, how much money they make, how they get ready for an interview and even what benefits their employers offer. lori: quickly, how do you know that information is credible? >> data integrity is very, very important. we have strict community guidelines around what is fair to discuss in the community. there is technical as well as human processes that we go through to verify all of that. and we're the only site at end of the day we reject about 10% of the reviews that come into glassdoor before they go live on the site because they don't meet those strict community guidelines. and we feel that what we're left with is a data set that is rich, vibrant and it is like being on the google campus or the netflix campus. you really get a sense what it is like to work there. david: you mentioned google. we have breaking news that google is confirmed they're giving a billion dollars to the spies x program to shoot internet all over the world
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which is interesting idea if they can pull it off. you have a a lot of google capital, i saw one report of $160 million you got from google capital. if so, how did you get money, i'm sure other people would love to do the same. >> actually 150 million is total funding of glassdoor to date. combination of tiger global and google capital. david: that's good. >> google capital specializes in late-stage, fast-growing startups, we fit that bill who achieved product market fit and are look to grow globally. what google has done, if you think about it, better than most companies did, they managed to expand globally and do it very, very efficiently and do it very well. david: to your point, to your specific company you're not only dealing with u.s. companies, you could get any company in the world? if for example, you're thinking of moving to the singapore, you could find out about a company
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there? >> that's right. we have 350,000 companies right now from 190 countries around the world with salaries in 100 currencies. it really, people everywhere have this need for this kind of information to help them make the best decision where to to to work. lori: robert, thanks very much. david: this is terrific idea. a lot of people believing it. lori: billion dollar valuation for glassdoor. david: yes. 22 states selling gas for $2 or less, there are one handles, the call to raise a gas tax. just when you got happy with the price and those calls are growing louder, by some republicans too. will you soon pay more for at the pump because of government taxes you more straight ahead? lori: latest economic data set to hit the markets this week. what will have the biggest impact on your money? we're back with number one thing to watch next. >> hi, everybody, i'm gerri willis. coming up on my show at the top of the hour, the best-selling
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book that the coauthor admits was all a lie. we'll talk about the boy who came back from heaven and folks should get their money back. that is one of the big stories on "the willis report" in just a few minutes. she's still the one for you. and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision,
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it's working for new york state. already 55 companies are investing over $98 million dollars, and creating over 2100 jobs. from long island to all across upstate new york, more businesses are coming to new york. they are paying no property taxes, no corporate taxes, no sales taxes. and with over 300 locations, and 3.7 million square feet available, there's a place that's right for your business. see if startup-ny can work for you. go to startup.ny.gov. [bassist] two late nights in blew an amp.but good nights. sure,music's why we do this,but it's still our business. we spend days booking gigs, then we've gotta put in the miles to get there. but it's not without its perks.
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like seeing our album sales go through the roof enough to finally start paying meg's little brother- i mean,our new tour manager-with real,actual money. we run on quickbooks.that's how we own it. >> u.s. gas prices dropped to the lowest level in six years now, calls to raise the gas tax a tax used to fund infrastructure projects, is gaining bipartisan support in washington is it's weird.
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jeff flock joining us now, live from a road construction project in indiana. just when we're getting used to lower prices they want to raise them again. these sons of -- >> david, i spent a lot of time on the interstate and it is pretty rough out there. if there is ever a time to get bipartisan support it is now. you look at gas prices, you know what they are, this might be a least painful time to do it. this is the problem, you know, they don't just spend money from the gas tax on fixing the roads, if they did that would be wonderful. look at a shot we've got here of something they spend gas tax money on. take a look at that. that is a pedestrian walkway right next to an expressway. last year if you put numbers u, they spent in addition to $5 billion on mass transit from gas tax money, $821 million making pedestrian walkways. a lot of people think that is part of the problem, not spending the gas tax money on
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what you should spend it on. look at one example. we're on indiana about to get on interstate 94, which could use gas tax money revenue to get fixed. excise tax is 1 cents. state gas tax and others, 12 cents. so 48 cents worth of tax. if you break that down, you, take a look, it is 32% of the cost of a gallon of gasoline is now tax. make this argument either way. as a guy who spend a lot of time on expressways like this one, tim, take a shot outside of the vehicle and see bouncing? that is potholes related stuff. we need the money to be spent but spent the right way. that is my view. david: never raise taxes. it will always be too much. they will always raise it too much and won't go to the right places. you just got to be knee-jerk about this stuff, jeff. believe me. trust me, trust me on this. gerri: they gang up on the
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walkways. >> save my bladder which is getting bounced. david: if we save your bladder maybe worth a couple of pennies. gerri: what you guys? david: a little too personal there. we've been asking you what you think will have the bigger impact on investors and markets? the state. union tonight or the ecb decision on thursday? he says, ecb decision, no doubt. now fox business is taking over davos, switzerland at the annual world economic forum. charlie is there. you know they're taking it over. our own liz claman is there as she has amazing lineup of guests. take a look. >> david, 45 years business leaders and rule minieris found a way to get to davos, switzerland, and the world economic forum. there is no easy way. you drive to zurich and take a two-hour drive up to the swiss alps. once you are here you will meet with 2500 ceo's, word leaders,
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world-class academics and of course nobel laureates. they are here to solve the world's biggest problems. what are those problems this year? we're talking about global terrorism. economic slowdown in nearly every nation. let me say this much. the very strong swiss franc is absolutely one of the top topics of discussion once people get here. i grabbed some newspapers off the stand here. look at this. the swiss franc, the president of the swiss national bank is calling for calm. francenshock. they have a cartoon with a skeleton. frightening to a lot of people in europe, particularly in switzerland. the very strong franc is a menace to the entire swiss system. starting tomorrow we'll talk about that right here 4:00 p.m. eastern time on "after the bell." this is interesting. we have a rare interview, especially rare with all western sanctions against russia. russian banker, his name is
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andre kosten this is russia's second largest bank. he already has sanctions. he says the sanctions are really affecting his company. he absolutely already need ad bailout from the russian government. we hope to have a very frank conversation with andrey kosten and prime minister of finland, european member. the ecb is going to meet. is he approving the stimulus? does he agree with the expected size of that, how is finland's economy doing? right here "after the bell," we kick off the big production from davos switzerland. david, back to you. david: gerri: stunning settings. david: it is weird. 11:00 at night and still light out there. i can't figure that out. paul vina, "wall street journal" money beat reporter. everybody is focused on the state of the union or ecb but you have something else. >> or whether liz claman brought her skis to switzerland. that is what i want to know.
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everybody is focused on ecb on thursday. another interesting meeting, central bank of japan meets tomorrow. gerri: no one said that yet all day. >> the reason is, no one really expects the bank to make announcement at this meeting. you saw what the swiss national bank last week. the central bankers can go off the reservation. you have to keep paying attention. real reason to pay attention the market bet this year that the ecb and bank of japan together are going to replace the stimulus that the fed is taking out by ending qe. david: you know what is incredible thing? japan has been doing this for decades, zero interest rates and of course we are taking our cues from somebody with a failed monetary model. it hasn't succeeded at all. they have had a stagnant economy all the time they had zero interest rates. >> there are real questions about quantitative easing will do for europe. they have historically low interest rates. questions how much was really done here too. look, there are a lot of questions whether quantitative easing is a good policy or not.
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the bottom line the ecb is almost likely going to do it. the bank of japan, probably in the spring you want to look for. keep an eye on those. david: paul reason i can't from the -- vina from "the wall street journal." "the willis report" is next. >> hello, everybody, i'm gerri willis, this is the "willis report." the show where consumers are our business. the real state of our union. what president obama won't tell you tonight. >> in the coming months let's see where else we can make progress together. let's make this a year of action. gerri: we'll separate fact from fiction. the hit film, "american sniper" is sparking debate about many things including to help our heroes returning home. >> i'm combing home. >> are you all right? >> yeah but -- gerri: coming up, how you can help. the boy who came back from heaven, the best-seller that turned out to be a big lie. who made money from this lie and robbed people of their faith and
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