up 2%. how about monster beverage. that's been a great one too. liz: a cap of all those calories or more consumed by drinking soda. >> eighty-three or 84, he looks healthy. >> here come the bells on wall street. let's see how the game finishes the day and the month. the dow jones industrial down about 80 points. s&p 500 lower by six. the nasdaq down 24. russell 2000, not a record breaker today. that's something different. down five. guess what, so much to come after the bell starts now. >> let's get right to today's market. we have bernie williams of usaa solutions. lance roberts. and nicole petallides still with us from the stock exchange. and bob joining us from the cme. bob, let's talk about

oil, first of all. you have a strange, your hit is what happened today. a lot of oil stocks down. you're bearish on oil. you think it will go down to $35 a barrel. but you're bullish on exxon. i don't get it. explain it. >> look at the two charts together. exxon has been beat up. but exxon has been approaching lows. bounced off two times. when you get to the congestion further down the chart, a risk of two or $3 for a possible move back to 96. look at the oil price, i expect a dip in oil. production continues to grow. that hasn't changed even with the lower rig counts. demand isn't increasing as of yet. a bit better consumer demand. but globally it has to increase to stabilize oil in the 60-dollar range. i think it will open. if we don't see a 30 handle on oil by may, it won't happen. driving season will come. refineries have to turn around. we'll get that spike.

it will help exxon. liz: spun it over to may. today is in the history book. let's look forward. bernie, what do we expect in this next month, in march, will people pile into stocks when it comes to their portfolios? >> no, i don't think they'll want to pile into stocks. and we certainly haven't seen that. but we're clearly off to a pretty good year on the market. better than i would have expected, given the earnings that have come in from the u.s. liz: and given january, which was not a winning month. >> uh-huh. yeah. but, you know, look, you don't have a reasonably good economy in the u.s. and interestingly, you're starting to see some really good earnings numbers out of europe that should entice some people. at least blow some of their dollars there. >> lance, we have two executive analysts from texas. lance is in houston. and bernie is in san antonio. lance, what about the energy sector? we know that texas is hurting job-wise because

of the drop in oil prices. is it time to start looked into buying again? >> no. not yet. you know, the thing is, right now we have a lot of wealth that is still being derailed and finished up in cap. and production is still rising. it will probably continue to rise for several more months. we won't see the impact of the drop in rig counts and the ultimate impact on employment for probably another quarter or two. a lot of companies are just now getting around to cutting capex. playing a wait and see game, are they going to stabilize or go lower? i agree with the comments earlier. oil will go lower. sub40s is absolutely possible. we're running out of space to store oil. if we have no place to store oil, that's another set of problems we haven't talked about yet. liz: what, there's no more room? i thought that was huge. let's go to the traders on the floor. nicole. what are they looking toward when it believes tcomes tomarch.

>> the traders here, the consensus is, again, along with the guests that oil moves lower. i've heard $43. below 40, i haven't heard that much. i hear that right now. but $43 seems to be the level that everybody here is talking about. as far as going forward, they didn't like the fact that there was some sort of complacency to the market. i know we've moved higher slowly, but surely. looking for more volatility going forward. the folks still feel sort of bullish on wall street. they think the market continues to the upside. the s&p had a gain of 30%. we'll see what happened. so far, february a great month. >> let's go beyond march and what happens this summer with what the fed will do. you're a soothsayer. you have a detailed description of exactly

how the fed might increase rates. >> i'm the sara the sayer of soothes. >> they've been letting us know every time they talk that i rate hike is a rates a matter of time. don't be surprised if it comes sooner than you think. people are talking from june to september. i think they'll temper the market in june. they'll telegraph it in june. do it in july. that's my feeling. this fed while doveish really wants to put a rate hike in the deck. i think they want to do it. they want to improve the economy is doing better and that the economy can sustain it. and i think the economy will sustain it. david: by the way, we're looking right now at the flatline at the fed funds target rate, it's been zero for far too long. >> twenty-five basis points won't be restrictive monetary policy. i think the market knows that now. liz: bernie, in advance, what are you recommending people buy

whenever that rate hike comes? >> clearly, we recommend this to avoid stocks that have gone up a great detail like utilities, reits, and other sectors. maybe the crews line industry. carnival cruises. and good expansion going on in china. (?) here's a company that is operating quite well. i don't think the rate hike means much to them. for sure, the energy price -- liz: go ahead, nicole. >> look who just stopped by. your old friend. david, morgan stanley wealth management. he and i are whispering about a few things including rate hikes. modernizatiomorgan stanley says what? >> liz, they're still talking about january or march of next year. they have not -- liz: next year. all right. that's what warren buffett said. look, if it were me, i

don't know how i can possibly raise rates. >> we just had granddaughter number four. >> isn't that nice? congratulations, david. david: we'll let you guys socialize after the hour. we want to talk stocks. lance, we were talked talking about what stocks to avoid. one stock that has been doing good is biotechs. you're saying to avoid biotechs, why? >> real quick. real set back. february was the best-poinpoint gain we had since 1967. march is a 50/50 bet. after a positive february gain it's almost 50/50 that march is positive as well. we're due for a correction. biotechs have run far beyond their fundamental values. a lot of speculation. that area, i want to take profits in and look to maybe rotate some of that cash into some defensive areas that

will be a better play against potentially a rise in interest rates this summer. >> some breaking news because the numbers have settled. bob, it looks like the nasdaq is the only index that finished up on the week. the russell broke its winning streak. so do we look -- do we put a lot of stock in that or do we just move on? >> no, i don't think we put a lot of stock in that at all. when you have that kind of geopolitical temperature that the globe has right now. you see people covering positions. i'm a shorter term trader. i don't know about lance and bernie. i don't hold longs anymore. i'd rather miss a couple than have a geopolitical hot spot flare over the weekend. it's fine. >> bernie is looking at hot spots to invest in. you see opportunity in europe. tell us. >> yeah. well, europe, of course, did quite poorly in an absolute return area last year. but their earnings are rebounding quite strongly this year. forecasted to be up 14,

15% which compares favorably to the u.s. a lot of that is due to easy comps and foreign exchange is a tailwind to europe. good earnings growth. i think that makes europe look like an investing place. liz: great to see you all. we'll see you after the break. thanks. >> have a great weekend, everybody. liz: not just performance that matters when deciding whether to stick with an investment advisor. up next, we're telling you the warning signs you have to listen to -- to find a new one. >> plus, while the dow and the s&p have been rallying to new all-time highs. the economy hasn't kept up. is wall street getting ahead of main street? we'll talk to our panel about that. liz: talk about an honor, how about being named the world's best chef? not only that, but then you earn 13 michelin stars, is that possible? this guy did it.

straight ahead. you'll meet him. >> i want to know what he's making with that pumpkin. also, did bad imf loans screw up greece? we'll debate that coming up.

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settled. it is now official. the dow has had its best month since january 2013. what were the biggest winners and losers in february? >> nicole knows. >> liz, always exciting to take a look at these movers. particularly the names that people watch so closely. we'll look at the winners and the losers. here are your monthly winners. i know we're seeing some down arrows, but some of the best performers. eyr 14%. jpmorgan up 12%. all these names were up 10% or more. on the downside though, merck and walmart were the notable losers. walmart was giving out higher wages trying to stop the turnover they've seen. they're still under a lot of scrutiny as far as executive pay and its correlation to its employees. that's a story ongoing.

that's where we saw weakness. as you noted, it was a great february for stocks for the most part when you look at the major indices. back to you. david: great stuff. thank you very much. liz: the s&p futures are closing right now for friday. let's head back to bob in the pits of the cme. what can we expect for monday? >> well, they're closing behind me with screams of buy them. buy them. which is a sign of the future's market that people are hedging the weekend, hoping they'll go up over the weekend. obviously they're buying them. the buy should come back without hesitation. there wasn't a lot of activity. it was mostly buying. we should be bullish monday morning. liz: minus any bad headlines over the weekend. david: when rating your investment advisor, it's not just performance accounts, other signs you should look for to decide whether or not it's time to perhaps move on. >> our next guest breaking down two big signs that you need a new financial advisor. this you have to hear. mark is the portfolio

manager of tri vest health council. welcome. (?) a lot of people have a bad feeling in their stomach about their financial advisor, but they don't know what to look for to say a-ha that's what you didn't that wasn't correct. give us a guide here. >> thanks for having me on. you know, yeah, there's three major factors from my experience in the markets and having worked on capital markets myself on the sell side and now on the buy side. these are three things that can help investors when selecting their advisors. first is hot deals. investors will typically never see average retail investor will never see a so-called hot deal in the equity markets. the reason being is institutional investors will snap them up first. if -- the so-called smart money, the retail investor will then be allocated the portion that those institutional investors have rejected.

the second one is -- david: hold on. before you go on to number two. let me stop you with number one. if i hear that from some financial advisor that we can get you in on one of these deals before the whole public does, is that guy breaking the law? >> oh. [laughter] well, i don't know. it's kind of a gray area. you know, is it a hot deal? you tell me. i mean, it could be a hot deal termed among the retail community. right? and so usually -- again, if it's smart money and the institutional investors don't want it, usually it's because it's been mispriced or a bad deal. that commission allocation is given away from the capital market and grouped to the retail advisors. if they're telling you it's a hot deal and institutions have passed on it then, yeah, it's something that's a red flag. now, it could be a hot deal among retail investors, but, you know, that's not something that i'd be a big fan of. liz: right away, you'd say, wait

a minute. what do you know that the other guys didn't? >> yeah. liz: be aware of anything that's offered that's free. when you sign up for a checking account, they say free checking. don't we want something like that? >> there's no such thing as a free lunch especially when margins are really high and interest rates are really low. there's been a lot of talk about the lack of transparency and fee disclosure. advisors have the means to hide fees. you can do it on bond spread or detime period sales charges. all kinds of ways to hide them. >> people's eyes are glazing over. how can you see what fees you're really getting charged, martin? >> liz, that's a great question. i saw one of your guests earlier this week say, you know, they've been in the industry for five years. they're having a hell of a time trying to decipher what fees are being paid.

it's tough. you have to have a heart to heart. and maybe it's worth getting additional advice or an external advisor to review your portfolio. there are planners that can help you do that. it's a tough thing to do. if you find it being done, that's a red flag for sure. david: okay. by the way, be aware of politicians offering free lunches too. like free health care and free education. everybody eventually pays for those things. portfolio managers, there's a license that you need to get -- a license portfolio -- a lot of folks try to get around that -- pad their resume and come off as pms when they're really not. correct? >> yeah. no, absolutely. that's another thing that's being discussed among your government. and it's being discussed here in canada as well. is the league of fiduciary duty to lack in your client's best interest. you have that fiduciary duty. not unlike an accountant

or lawyer -- david: that means that essentially if they give bad advice, they have to take some of the blame for that. >> well, they're not offering advice. they're managing your portfolio. they're not asking for permission on trades. they're actually a portfolio manager. they're making the decisions. if it doesn't match up to what's been outlined in your policy statement, they're outside and you can sue them. big difference. investment advisors don't have the same kind of qualifications because they're not actually managing the portfolio. they're offering a recommendation on what to buy and sell. okay? so you as an advisor, you as the retail investor are assuming the ultimate decision on whether to go with the investment that's being recommended by the investment advisor. if you're wrong and you lose money, well, hey, that's your fault. the buck lies with you. liz: yeah. david: by the way, martin is?

calgary, canada. that's the background you see there. thank you so much for joining us, martin. liz: go, flames. it's a must read on wall street, but also on main street. warren buffett's letter to shareholders. comes out once a year. released tomorrow morning. you don't have to wait. exclusive details on what's in it straight ahead. >> is the secret to building economic growth stronger than we have as simple as scrapping one tax? that could be the case. we'll tell you which tax with our panel next.

>> okay. today was down. the stock market generally has been trading higher. but economic growth has been revised a little lower. today's gdp figures were downgraded to 2.2%. is wall street getting ahead of main street?

karen. forbes contributor and fellow for the competitive enterprise. and sue flynn. senior analyst at the price group. and mark sebastian. mark, what do you think? is the market getting ahead of the economy? >> we're looking at the exact same thing we've seen over the years. we heard the morgan stanley guy on the floor kind of hint at it. we won't see a rate hike until june. we won't see a rate hike in june or september. i think we're talking january 2016. with that in place, the stock market can keep rallying. in fact, it's good for the stock market for the economy to shrug along at this mediocre pace because it gives the fed tons of slack. yeah, i think there's more upside. >> phil, our chief economist, put together an extraordinary group of figures.

in six years under obamacare, the us gdp has grown an average of 1.9%. under 2%. the s&p has been up 120%. the dow jones up -- the nasdaq up 226%. that looks tope to me. not to you? >> i wouldn't say tope. i would say bubblish, dave. and i think we're living in a bubble. have you ever been inside a bubble? you're breathing in helium. you don't know what's going on. talk funny. that's where we're at. there's no reality down here. this is all printed money. this is the differential in interest rates. no place to put your money for return other than the stock market. it will end ugly. david: that's the point. as tope as the market might be right now, where else do you put it? >> i say tech. put it in silicon valley. thanks to net neutrality that could call change.

to your point on main street versus wall street we have seen good signs on -- walmart said they'll boost their pay. costco, gap. low skilled workers, they have more leverage because the unemployment rate has been ticking down which is good for main street. david: you do get the sense that the economy just wants to take off. it's dying to take off. moving on now, this may be one way to get the economy to take off. more stes are moving to scrap their tax on personal income. mississippi just passing a bill to do it. this could be the reason why no personal income states are faring much better than states -- the states with low personal income tax are faring much better than the states with high income tax. look at this. personal income is way up. employment is way up. economy is way up. kerry, is this a trend that will continue to grow? >> hey, that's how economics works. i have to point out that study you pointed out with art laffer, tax

revenues were actually up. see, when you have lower taxes, you actually see more growth because there's more economic growth and the state coughers actually increase. we have to have lower taxes so we have more growth. (?) this is an abstraction compared to our rates in the us versus europe. tax cuts are the way to go. david: phil, you're in illinois. i bet you could use a state income tax cut. right? >> oh, my gosh. i don't think illinois has found anything they want to tax. we have income tax, we have a gasoline tax, a county tax. it's ridiculous. it hampers economic growth in the u.s. on top of that, we buy into the internet and it will get taxed. not only the average person which it obviously hurts, but a lot of businesses are saying enough is enough. if they don't get enough of a tax break, they'll leave illinois. >> people are voting with their feet.

whether individuals or small businesses. >> yeah, going back to illinois. they raised taxes by 66%. it's a state losing more citizens than anyplace in the union. you can move freely to any state. not like denigrating to other countries. state income tax is regressive. a sales taxa lines everybody's interest. getting the economy booming. (?) raises tax revenues. that's the right way to grow a tax base. david: did bad imf loans screw up greece and hurt them more than help them? also, who are the week's biggest winners and losers. liz, what do you have coming up? liz: a major survey. merger -- was up 21% in 2014. it's expected to pick up even more this year.

particularly among community banks. the little guys. what's causing this big come back in m&a and how can it impact your investment strategy? he maybe the original oracle of omaha, there seem to be dozens of warren buffett copycats. why not? just how many wannabe warren buffetts are there? you can't breathe through your nose, suddenly, you're a mouth breather. a mouth breather! well, put on a breathe right strip and shut your mouth.

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♪ or. ♪ >> you and charlie will have

separate letters about the next 50 years of berkshire. >> with right. we've each written -- and they're done know. we've each written about the past 50 years as well as the next 50 years, and we didn't change a word in terms of what the other guy said. in fact, charlie hasn't seen mine. he doesn't care what i say -- [laughter] i've looked at his, but we're not changing anything. shareholders will get his view and my view. i'm writing something about spin-offs in the annual report this year. liz: i picked out greg gable right off the bat. 51, he's a midwestern guy at the moment. when the buffett faithful get whipped up, they say his name a lot. >> yeah. well, he would be terrific, but -- [laughter] i'll write more about him in the annual report. liz: okay. so you to know that's coming, right? right here, that was my exclusive conversation with warren buffett on february 4th. he gave us a whole bunch of juicy nuggets on what you can expect on the shareholder letter

tomorrow, and it's downloaded hundreds and hundreds of thousands of times. mr. buffett popular in all different industries and countries around the world. in fact, there seems to be a warren buffett of everything; oil, food, india, retail, wine, you name it. the phrase "the warren buffett of" has been gaining popularity and was used more than 450 times in news reports since 2005. mr. buffett rarely gives these wannabes the time of day, but in an interview with "the wall street journal," mr. buffett joked: i'd like george clooney to be the warren buffett of hollywood. he's always there for a joke. by the way, there'll be a lot of jokes in that annual shareholder meeting, but on the first page he will admit to mistakes. be sure to go to our facebook page or twitter page to check out my full, collusive interview with warren we buffett. davidst he's going to talk about the dividend tomorrow and succession, two things people are dying to know about. david: as long as he doesn't talk about raising taxes.

meanwhile, did bad imf loans help screw up greece, and why are u.s. taxpayers funding an organization that so often gives bad advice? mark, this is an extraordinary piece that's out now, started out as a documentary. it looks like there's some real substance to it, that imf gave the worst kind of loans back in 2011 to greece that were totally unsubstantiated and mainly led to the current problems -- >> you might call them the warren buffett of terrible loans. [laughter] yeah. i mean, they are -- the road to bankruptcy in greece is paved with good intentions out of the imf, but they've laid the people of greece out to dry. you want to know what i really think is happening, the e.u. and the imf combined are basically stringing greece along long enough so they can make sure all their banks and all the other central governments don't really cause a major financial crisis when greece eventually does go bankrupt and that, basically, they're going to use greece as an example. do you see what happens when you

don't tow the line and when you leave the e.u.? you get crushed. david: well, gary, focusing more on these bad imf loans that apparently were made back in 2011, you know, we helped fund the imf. we lend them a lot of taxpayer money, hundreds of billions of dollars over the years. should we be doing that? >> i think that's a great question for the 2016 candidates. i think hillary clinton should have played much more of a role at the state department in trying to clean this up. so whether it's the imf or the world bank or the u.n., why should a hard working mom and pop store in youngstown, ohio, be subsidizing lazy greeks who are retiring at a super early age? [laughter] it makes no sense, and i think the 2016 republican candidates should take it to hillary and ask why is this happening? david: phil, what do you think? >> i agree with what everybody's thinking, but when you go back to, hey, we made bad loans, they were in big trouble before they got these bailouts -- david: well, yeah, but you don't

lend money to a bad risk. that's the point. >> well, that's what i'm saying. they're trying to rehabilitate greece, and that's why they have the tough love, the tough reductions, and now maybe it's time to loosen 'em up, you know -- >> but they weren't -- [inaudible] that's the problem. the problem was there were so many rules that were bent that these were not tough rexes, and now the germans -- restrictions, and now the germans are playing the role that the imf should have played earlier. david: phil, go ahead. >> i absolutely agree, that was a mess. the reason why the rules were bent was to keep the entire eurozone from falling apart. there was a lot of risk of contagion. you know, now it's time to pull back a little bit but, you know, overall now, you know, everybody agrees that greece can leave the eurozone, it won't have the same impact it would have are. david: all right. let us move on to the winners and losers. there were quite a few in many

different areas, and one of the scariest things i saw happen this week was the fcc trying to regulate the internet. it's not go to -- it's got to go through legal challenges, but if they do this, for the first time you're going to have this gatekeeper, these government bureaucrats, but there are winners and losers here. >> absolutely. the winners are the bandwidth losers, so google has netflix and i youtube, the big losers, comcast, at&t, verizon. anyone who provides band buttedth now -- bandwidth now has the inability to be dynamic and really now is going to be a you utility, and in the end what happens to utilitieses? is poorly run -- david: that's right. i can't believe they're going in this direction. my head's going to explode. phil, winners and losers, go ahead. >> lady gaga -- [laughter] david: oh, i like that. >> it was a performance for the ages. she's not just a pop star.

now she's got this new gig on american horror story. and what a lot of people don't know before mark sebastian goes on the air, he sings a little gaga. [laughter] yes, he does. david: i want to see it. >> shake it off. shake it off. david: no losers at all? >> bigger loser here in chicago, rahm emanuel. it's time for a runoff for him right now, so that's going to be very tough. and chicago sports fan, we lost derrick rose and patrick kane. david: carrie? >> the american people lost when president obama vetoed the keystone pipeline. let's hope there's a way to override the veto or be able to export oil because that's how main street is going to -- david: okay, and the winner? >> winner, i'm down here in d.c. for cpac, i would say the conservative movement, they're the winners this week. there was a great slate of candidates that have been talking and presenting their platforms for economic reform. 2016, the democrats aren't looking so good -- david: well, we'll see.

you gave me a nice segway to my winner. i think it's scott walker, by the way, because a lot of people have been looking at jeb bush. he's taking the money, bigger profile, but scott walker more a middle american kind of guy. for goodness sakes, he's a college dropout. you can identify with him. biggest loser, i've got to say, sears & roebuck used to be the mainstay of my family's buying -- my father even bought his suits there, for goodness sakes. even though they were up today, it looks like it's going down. carrie she have fed -- sheffield, phil flynn, mark sebastian, by the way, catch carrie and myself on forbes on fox every saturday at 11 a.m. eastern on the fox news channel. we are roaring ahead on that show. you've got to stay tuned and watch it. all right, thinking about getting in on the financial sector ahead of a potential rise in rates? our next guest ran two separate banks, and right now he is betting heavily on small and mid cap-sized banks. he'll tell us why next. liz: and he has 13 world

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liz: so besides being a 28-year bank ceo veteran and a former philadelphia federal reserve board member, ted peters is a guy who just launched a new hedge fund that's focused entirely on small and mid cap banks. david: since its inception in march 2013, the fund is up over 32 percent, outperforming its bench benchmark by 13%. bluestone financial institution fund's chairman and ceo joining us now. congrats, ted. when i first heard about this, i thought, gee, you really want to go into a sector of banking that i'm hearing is being hurt a lot by all these new regulations from dodd-frank? what do you say to that? >> well, we actually think this is a sector which has tremendous opportunity partially because of what you just said. m&a activity is picking up in this country. last year there were 275 acquisitions, this year we're thinking there's going to be 325, 350 bank acquisitions. this is not only are people

going to make money owning bank stocks, but a rising tide is going to lift all boats in this case. we really like the space because of the m&a activity. we also like it because this sector is very well capitalized, they can grow without attracting new capital or selling new stocks to dilute shareholders, credit quality is very good, and you're right, you're absolutely right that the regulation is getting sort of onerous. so a lot of small banks, banks between 500 million and maybe 3 billion, they're looking around for partners. so these are things that are all going to really help our fund, and it will help, you know, the micro and small cap bank space. liz: sure. that or somebody in d.c. wakes up and says these little guys don't have to be painted with the same regulatory brush as the jpmorgans and the goldman sachs of the world. would that help those stocks in particular if that happened somehow? >> well, i agree totally. i think what's happened is the top 10 or 12 banks in this country really caused a lot of

problems, helped cause the financial crisis, and really the other 6710 banks in the country didn't cause it. and unfortunately, small and mid-sized banks are getting punished. unfortunately, i really don't see the regulatory burden really letting up much. i was a bank ceo, as you mentioned, for 28 years, and i think there might be a little bit of relief but very, very little. david: so when you look at banks that you think will be able to pass through these choppy waters of regulations, which specific banks are you looking at? what particular characteristics do you look for? >> well, we look at banks, first of all, with great management. that's very important to us. we've found that people make the difference. so you can take a great ceo and put 'em in charge of a mediocre bank and make it a great bank. and likewise you can take bad management and put hem in charge of a great -- put them in charge of a great bank, and they'll run it into the ground in five years. what is their strategy, what is their vision, how are they going

to take care of opportunities out there? we also, of course, do bottom-up analysis, looking at capitalization rates, looking at loan loss provisions, the quality of their deposits chg which is very important. one big thing that small and micro-cap bank stocks have -- and we call them community banks -- is they have great core deposits. and those deposits when rates go up are not going to be priced as quickly as some of the hot money which the big banks have. liz: let's look at some of the names, the bank of the the the . these are all very regional. as you said, 900 million to maybe -- 300 million to maybe 3 billion here. look, 30, 40 stocks? tell us, how much more of an index -- >> well, i'll tell you, well, actually, we do not believe we're going to have more than about 15 or 16 stocks, long, and we're probably going to have two or three shorts at any one time. if you get too many stocks,

grown into an index fund. so we're following 40 or 50 stocks and just trying to find the really good ones. i personally like bank of o zachs, it's -- ozarks, it's headquartered in arkansas but really all through the southeast, eastern part of the united states. acquisition done very, very wisely. i like, certainly, bank of to zachs. also national penn bank shares, that's a bank that's really pulled itself together, had some trouble a number of years ago, so that's a -- david: ted, we've got to leave it at that, i'm sorry, we've literally run out of time, but congratulations on the fund. thank you very much. have a great weekend, my friend. >> thank you for having me on. liz: good luck. david: appreciate it. liz: we've all eaten really good quality food, right? but cuisine by the best chef in the world, it's the most prestigious award imaginable. michelin star chef pierre gag yea will tell us what it takes to be magnificent.

gerri: hi, everybody, i'm gerri willis. coming up at the top of the hour, a imping, yet effective way to watch for credit card fraud. just one of the big stories coming up on the willis report in just a few minutes.

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back to paris. >> why? >> they couldn't make it there. >> the restaurant across the street has a michelin star. liz: forget one michelin star, how about 13? our next guest has that many. he was just named the top chef in the world. master chef pierre gagnaire has 13 restaurants around the world, but he's not jet setting today. he's here in our studios. he's in new york for the waldorf-astoria and james beard foundation's taste of waldorf-astoria program. first of all, congratulations. >> thank you. liz: the best chef in the world? >> we try to be one of the best. liz: okay. but le chef magazine -- >> yes. because it's my colleagues who give me this award. of we are never the best. -- we are never the best. we just begin to work a few years ago, 14 years ago, and i tried to work with my -- [inaudible]

liz: 13 restaurants, 13 michelin stars. now, which one has more than one michelin star? >> it's -- [inaudible] [speaking french] we obtained in '93 -- liz: for those who don't know, a michelin star, three even, that is the holy grail, to be able to get that. what do you think your colleagues looked at and said pierre deserves this? >> because i think when they see my work, i have a big problem 20 years ago, i was bankrupt. i closed my restaurant in a small city in france. i came in paris in '96, and i don't change my way to see the job. because for me, at the beginning i don't like this work. liz: right. you didn't? how was that -- and then you win this? >> no, because i tasted that,

and i felt that to eat the food you can get emotion, and you can catch the people. liz: okay. but you have to be a businessman too, pierre. >> no. liz: yes. you own 13 restaurants? you're not looking at the books and employees -- the. >> no, no, no, i'm a chef. i try, i try to stay in the kitchen. when i travel, i live with my team. liz: okay. you're in moscow, you're in berlin, you're in vegas. seoul. name the vegas restaurant. liz: i'm in dubai too. liz: so you look at those ask you say how do you make it a success? is it purely the food or the atmosphere? come on. >> it's a combination of that. the light, the sound, the quality of the service. because we speak always about the food, but the service is very, very important. and each time i come in new york, for me it's the restaurant

because when you go in the bar, when you go in the restaurant, the service is always -- [inaudible] sometimes we have not -- liz: we have to go. name it, your favorite restaurant in new york. >> i don't -- i know, i love jean george, i love thomas keller. everybody -- [inaudible] [speaking french] liz: gramercy tap. oh, they'll love to hear. good luck at the waldorf competition. what dish are you going to be making? >> it was a pumpkin soup. [laughter] for me, the pumpkin is -- it's america, huh? but with a touch of pepper, white pepper and -- [inaudible] liz: pumpkin soup with squid. pierre, congratulations. >> thank you. liz: many more michelin stars we wish for you. pierre gagnaire. david: do you like hot dogs and hamburgers? [laughter] >> i remember the first time i

came to america 45 years ago, it was fantastic to eat hamburger. [laughter] david: all right, you're one of us. good to know. thank you, chef. "the willis report" is next. have a wonderful weekend. gerri: hello, everybody, i'm gerri willis, and this is "the willis report," the show where consumers are our business. it's the latest in credit card security and one of the best ways consumers can fight fraud, but just three out of ten americans have chip and pin. we'll investigate why. >> we've gotten to the point now that everyone is realizing that we need to upgrade the system to chip and pin cards. gerri: isis terrorists and their war on christians. where is the world's response? >> the middle east, syria, iraq and parts of what we call the holy land where their churches are destroyed, their homes burned and their children sold into slavery. it has gone on for the long time because of the