below 2%. [closing bell ringing]. stocks were negative, they moved positive. it was unbelievable time. david: somebody else talked about the 10-year below 2% we'll have them on in just a second from the cme. that is todd horowitz, who said monday bonds would be yielding under 2% on the 10-year. he was dead on. the bells are ringing on wall street. how, look how all the markets are moving way up. dow jones industrials, trading at 222. that looks likes it is trading to upside as we close. s&p, nasdaq, they're all up about 1% or greater. so this is an extraordinary day. janet yellen finally came out but dropped patience but added something weak about the economy that made markets re happy. we have it all covered. "after the bell" starts right now.

david: we have a show as big as markets following the huge market day with interview with former fed governor wayne angell. that we're heading back to liz at innovation 2015, the mobile payment conference. liz, what is coming up? liz: let me explain how interested the federal reserve is interested in what is going on at harvard at innovation 2015, all things mobile payment. holding your phone up, paying for things, sticking on tattoos that help you pay the these are fascinating developments. the fed wants in. today we had a panel that included the man who created the worldwide web, tim burners lee. he is only worried about one thing. david you would love this. he is worried about the government getting involved or one gigantic business taking over. it should be open, free, real capitalism. it is the wild west right now. we're watching all of that. coming up in this hour we'll talk to two leaders in all of this, charles drucker.

wait until you see what he is doing in the mobile payments world. this is extremely important for anybody who is getting prepared to just start paying without real money. and, coming up also we have the mozetos chief market officer. you got to hear what they're doing. it is markets that go front and center david, with the russell 2000 closing at a brand new record. david: free internet, free internet. got to stay free. otherwise it won't be innovative. we have look at today's wild market moves. kimberly moss says dropping patient doesn't guaranty anything. mark madsen from madsen money says get into small value stocks. he has three names. january any chiefed income strategist, galen because. guy lobe ba.

he predicted two year rates would go below two%. there was a lot guffawing but you were dead on. look at two year. what happened to the two year yield right now. it is 19% lower because of what we heard from the federal reserve. todd, what do you say? >> hi, david. it is a crazy day. when you saw the fed couldn't become more dovish they figure out a way to take out patience and give us weaker growth. the market told us entire time. 30-year is all time new highs. two year is getting slaughtered, trying to invert the curve again. in my opinion they have tried to make this so dovish they're trying to be data dependent and not following the property data. they haven't made the proper steps to make the markets actually more liquid. they bring into more manipulation and keeping markets under tow. for some reason they continue to day trade the equity markets because every statement, every policy they have set over the last five years is dependent

from equities are doing. equities selling off. the fed will keep rates low. i don't know that we'll see a rate increase in the next 18 months, let alone by end of the year. potentially going to 1 1/2. david: other than the stock market, i know the stock market is a big part of our economy, other than the stock market, what good is it all doing? zero interest rates are in the necessarily increasing loan volume, are they? david: hold on, kimberly go ahead. >> not increasing volume whatsoever i sorry? david: go. david: kimberly. >> no. i don't think it is increasing doing any value add. taking patience out only just allowed the fed to have an option to raise rates in the future or keep rates exactly the same. it reserves the right for them to do what they want. we're going from date dependent to data dependent. we want the fed to give us

direction, certainty to have growth. bottom line, david, that will not happen. it will be meeting by meeting, data by data. david: mark, what are interest rates doing for the loan market? businesses borrowing money or banks loaning it out? >> no one wants to borrow money because they are afraid of a high taxed regime. there is no demand. banks wanting to lend it out. no matter what the fed does they're not creating increase in the money supply. that is why there are no interest rates. i want investors stop focusing on short term machinations and focus on long term. they are so afraideof the market since the crash of 2008, small value stocks are up 360 percent. small stocks like the russell you mentioned, they're up over 260%. so many investors missed it. there are a trillion dollars going to bonds. 300 billion going out of stocks in that same time period. stop focusing on short run. own equities long term.

david: guy, i have to reveal something. you were wrong. thought the fed would keep word patient but when they took out the word patient, they put in the following phrase. economic growth has moderated somewhat. is that what set the market off thinking they would keep the rates low? >> in short, no. so all i will ask you this in response, dave. why are we still focused timing after first rate hike? why don't we pay attention to market prognosticators and pundits the fact that the fed essentially is projecting, expecting newt interest rates by end of 2018? only short rate will be at 2%? that is hugely, hugely, hugely more powerful influence on equity markets global capital markets and currencies whether we have the first rate hike in june or september. we're talking about trillions of dollars. david: what he is saying, frankly makes a lot of sense, we're so focused on one word or

when the fed will do what they are going to dos we're not as focused on their commitment to keep rates so low for so long, certainly below the rate of inflation. that is the inversion that concerns a lot of people. >> oh, absolutely. we talked about this last time, david if they don't raise rates at some point in time, talking about a pressure cooker. top on the pressure cooker, if you don't loosen that up to let some steam out there is going to be something to pay for in the long run and markets will not be a pretty sight. so for long term, we just need to get investors focused back on long term investing, not pay attention day-to-day iterations of the fed. keep them in the equity markets as mark mentioned. have a investors dare to be different. diversify. asset allocation, rebalance portfolio and evaluate the situation and have time in the market, not trying to time the

market. david: mark, i think janet yellen and federal reserve in general are concerned about things happening in the economy that are crazy. interest rates are below inflation. that happens usually something during recessions but we've had it three or four years. the other is interest rates growing up in europe s that one of the things the fed is trying not to happen here? >> i think investors need to think the fed a talking head. these people have no idea what they're doing. they never had. there are two things the government can't do and they can't create jobs or control the market making equities goes up. supply and demand controls interest rates. we need to stop focusing what the fed is doing. investors need to focus on equity premiums they own long term. they need to be afraid of long term bonds. when interest rates go up, some day they will, they will be stung with 20, 30-year bonds. own stocks. dump the long term bonds they may have in their portfolios. david: bottom line we have to

get people to borrow more none any to make a situation where banks are less reluctant to lend out money than they are now. we have a guy coming up with examples how to change that. kimberly foss, mark madsen, todd horowitz, guy lebas. thanks, folks. >> kind of interesting, david. you and i were asking constantly what the market will do if they remove the word patience? well the federal reserve did just that. patience is toast. as everybody focused on that. is it really what we should be former fed governor says, no it is not about that one word. it is about two words, stress tests. that will be the guide as to how our economy will go. of the joining me in a fox business exclusive is wayne angell, former federal reserve governor. stress and tests. what does that have to do anything, wayne what janet yellen said today? >> janet yellen didn't say

anything about stress tests. the stress tests are still there. the stress tests, what she should have said is that we're not, going to remove all of this liquidity. because we're not letting the stress tests any longer dominate the money market. >> okay. so, one of the things people are wondering what stress tests have to do with anything. economic outlook, speaking about gdp, outlook -- you'd put of all goods and services. fed brought it down for 2015 between 2.2.%. it was 2.3 to 2.6%. you have a different level. what is your level for gdp in 2015? start with the high point. >> my level gdp has been in a two to 3% growth range and it

will move over the next 12 months interestto 4% growth range. >> four? why 4%? is it really stress tests are freeing up or rat least pulling weight off banks for them to start lending? what they do and say they are two totally different things. >> liz, you're exactly correct. the stress tests tends to cause banks to hold back on their lending. banks don't want to lend money this environment. that is what needs to change. this economy needs growth in commercial bank loans. liz: i stopped guessing what the banks would do and should do a long time ago. they're not doing what they should do. but, wayne, i want to know from

you, do you think we should have already tightened interest rates? >> yes. we should have gotten rid of the stress tests hold back and we should have interest rates at a giant level at 50 basis points, rather than this zero to 25. liz: do you think, janet yellen, wayne, is trying to please to many people here? she got rid of the word patience and said that doesn't mean we'll be impatient. we have a ton of people here at harvard on mobile payment conference watching saying, when are we going to raise rates? because we think the economy could actually sustain it? >> that is very unfortunate. the economy work best when when the markets determine rates rather than the fed trying to determine rates. this is important. the stress tests meant that

banks don't do lending we need to do. consequently excess reserves pile up in the system. wayne, when do you think we are actually or not when we should, see the rates tighten? dot plot, federal reserve leaders, at one point you were one of them, dot plot is showing way late in the year, possibly november, december. >> well that would be nice but we're not there yet because, they're not going to conquer this june hurdle of raising rates. so i don't see that janet yellen gave any indication today she would really raise rates in june. liz: that is pretty definitive from wayne angell, former federal reserve governor. we appreciate you coming on exclusive. david, you heard no rate hike

from former fed guy, wayne angell. more players in the world of mobile money at harvard university. we have charles drucker, ceo and president coming up next. david, over to you. david: a lot of other news going on in the world, director of central intelligence sending a chilling message removing hezbollah and iran from worldwide threat assessment. what the heck is up with that? was this quid pro quo for iranian nuke deal? one of the ways of regulating internet, now it is changing its tune of the will others in silicon valley follow? the panel debates that ahead. is the market cheap or expensive? on a day like today, a lot of people have opinions on that. that is a crucial question. market strategists have been debates. the answer depends on the metric and a lot of conflicting stories. which should follow. what do you think, is the market overvalued? send us a message on facebook or tweet us @fbnatb.

your answers straight ahead.

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liz: you want to hear an interesting stat? new estimates show that by the year 2019 the mobile payment industry will be worth

$142 billion. there are so many companies trying to get in on this land grab that stand to benefit from the growth but one has an advantage others don't. why? because it works for both merchants and car issuing banks. the company is van tiff. it is 7 billion, 8 billion-dollar market cap. ceo is with me. your stock is up 20% over the past year. i'm amazed at the speed of light when it comes to how mobile payments are growing. are you? >> we knew payments would change rapidly. we're working with merchants and financial institutions we've been able to create frictionless and seamless way for consumers to use their parents. liz: did you hear that? he used word frictionless. >> somebody pulled -- david: all right, we're having a little bit of problem with liz's feed from boston. the coming up we have more from

harvard. we'll speak with payments company mow seed dough. going after they called what are the unbanked consumer. stay tuned. ♪

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david: someone in boston managed to put the plug back into the wall. we'll go back to liz and vantive ceo charles drucker. >> we're in harvard. somebody that went to yale kicked plug out. i'm sure. we were giving definition of the word friction and frictionless. that is definitely a buzzword in mobile payments. give us to us, charles. you guys are the number one pin card issuers in mobile payments. what does that mean when you throw out the term we want a frictionless experience? >> when the consumer make as payment, it is easy. they push a button. they get their transaction. they're gone. we don't want them to have a lot of things or steps they have to do. our focus how do you make it easy to transact and do you

purchase for the client. liz: what is next big thing in mobile payments do you see, charles? >> the thing about mobile payments is data to bring value to consumers at the wallet base that the adoption rate will to up. -- go up. when you walk around and pass a restaurant, you might get an offer through the phone and complete the transaction and go in and eat there. liz: do i want that or is that annoying to me? is that a fine line? >> it's a fine line. different sets of people can turn it on and turn it off. people really want value. as we get better at that and get really valuable offers saying this is meaningful to me, then you like it. if you get a lot coming at you, that is not a food thing. liz: small and medium-sized banks count on vantive to run their businesses and customers. what is it you love the most? we love small businesses. david asman and i cover them all the time. >> it enables them to compete in

the market and makes their daily life and running operations easy to do. they have some hats, with small businesses and small banks. we bring that technology to them so they can transact business and play in the market to bring value to all of their customers. liz: i would be remiss if i didn't bring up security. folks here at the innovation project at 2015 in harvard, we're talking about every road leads to security. how are we going to do this if every single person has a different way of doing security? >> consumers need the confidence, first of all when they're doing a transaction. we at vantive are really leaning forward, focusing what we call security suite. you heard the word emv. you heard the word hopefully end to end encryption and tokennization. as soon as the card is swiped or transaction happens it is encrypted to protect the consumers information. all the large clients and large banks are really moving forward and making rapid steps.

we need to do this as an industry and we're going to lead the way. liz: we're thrilled to have you. >> thank you so much. >> vantive, publicly-traded stock up 20%. you didn't to go to yale. >> no, i didn't absolutely not. >> charles drucker, the ceo. the coming up we have much more live from harvard. we're speaking with payments company mow seed they are going after the unbanked consumer. billions of people don't have banks. we'll talk about that coming up. david: we'll be watching. liz, there ace lot of news breaking around the world today, starting in tunisia where tar record rifts attack ad terrorists a attack ad pop roar museum. up to three gunmen involved in the shooting may still be at large according to country's prime minister. in benjamin netanyahu won a unprecedented fourth term as prime minister, defying the odds and defying certain effort by u.s. liberals, possibly going up to the top to

defeat him. this win could mean u.s.-israel tensions will continue. at home the director of national intelligence shock ad lot of foles in the security world by removing iran and hezbollah from its annual worldwide threat assessment book. the question whether there was any kind of deal made for this to happen because of the nuke deal. here to discuss it all, john bolton, former ambassador to the united nations. former. who do you think is responsible? will this spread? >> we don't know for certain of course but looks like some kind of jihadi attack t was directed against this museum. a lot of foreign tourists. the word many that were killed were italian. to send a signal one country people think the arab spring had some continuing effect, that even there they're not safe from terrorist attacks. we need to learn more but a pretty chilling lesson i think for europeans and americans looking for tourist attractions

in that part of the world. david: i'll say. we had a chilling report by the way from the director of national intelligence which removed in a section that previous years had included iran and hezbollah. of course husband husband was started by iran as -- hezbollah was essentially a subsidiary of iran. they control lebanon. they removed them from that terror list. why? >> it is very interesting, because the director of national intelligence office reached out to fox to say, you know, just a format change. we really do view iran -- david: is that true? do you believe that? >> absolutely not. but don't believe me. print out the 2015 report. put it next to the 2014 report. there is no graphic artist on this planet who will tell you there is format change. it was a substantive decision. had to be to remove the references to iranian and hezbollah terrorist activities. to say it was a format change is just a flat-out lie. david: was it a deal in the whole nuclear discussion? i mean that is, were they trying

to sweeten the deal by taking iran out of the terror list? >> that's what i infer and i'll tell you, i think footsteps are very clear. i think you can easily imagine the iranian negotiators saying look, take these references out here. it makes it very hard for us to justify a deal to the hard-liners back in tehran. by the way, while we're on the subject we want obama's cuba deal. we want off the list of state sponsors of terrorism. we want full diplomatic recognition from the united states. we want all of that as part of the deal. by the way none of that will be in agreement with other permanent members of the u.n. security council. troubles me this may be a tip of the iceberg. who knows what else is part of this deal we're not going to see. david: that is the problem at all for so-called transparent administration. >> right. david: at same time we're making friendly with the irrainsians we're making -- iranians. we're making enemies in israel. was the there an effort on the

part of this administration to unseat bibi netanyahu? >> i would think the president would do anything he could thought he could get away with it to do away with the thorn in his side. netanyahu giving a speech to the joint session of congress all the credit system out there how uncooperative netanyahu was, how much this deal with iran mattered, i think the president was certainly at the macro level trying to set the stage in israel for people to repudiate netanyahu. david: by the way, israelis, clearly saw right through it. or in fact as you say, did it backfire? did it cause more of support for bibi than he otherwise would have got? >> that is the only way you can explain the change at the end. it defied last minute polls. exit polls turned out to be as bad in israel as they are in the united states. it is a solid win for netanyahu. puts him in a position if he wants to do it, clear political mandate in israel to attack

iran's nuclear weapons program. >> thank thank you. ambassador john bolton. >> thank you, david. david: david: why netflix changed its tune on government regulation of the internet. a new television show is flying so high, breaking all records, everybody wants to know why? what is the key to tear success? is it internet stuff they do? is it internet stuff they do? they're on twitter a lot. we'll talk about that coming up with ourwh panel. or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. 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, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away.

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"what is it that we can do that is impactful?" what the cloud enables

is computing to empower cancer researchers. it used to take two weeks to sequence and analyze a genome; with the microsoft cloud we can analyze 100 per day. whatever i can do to help compute a cure for cancer, that's what i'd like to do. david: back now to our top story. the markets and market reaction

to the fed language tweets. let's bring in the panel. mark newton, greywolf execution partners chief technical analyst. matt welch, reason he had magazine editor-in-chief. and liz macdonald. >> this is more than a relief rally. treasury yields also rallied. we saw for the first time yields actually stocks or bonds and stocks moving in right direction. both moving higher. yields pulled back almost 35 basis points last eight days. that is huge, tremendous moves. my thinking near term that does still continue. david: emac, the two-year bond, interest rate came down 19% today alone. that is extraordinary. i'm wondering, be careful what you wish for, markets. i wonder if we might get into the european vision where we begin to go into negative interest rates? >> you have to pay to save, right? that is essentially what we're seeing. eurozone, i think what is happening here, energy boom, a

lot of petrodollars, oil is priced in dollars need ad safe haven so they came into u.s. treasurys. the scene for the fed, what they are doing, relief rally current to wall street sources we talked to, low and slow. really slow to raise rates. when they do it in slow quarterly increments they did in 2003 and 2006. david, took them three years from 3% range up to 5.25. took them one year in 1994 to hit the same area in terms of interest rate of 5.25. we're still talking 2 1/2% at end of last year. that is what the fed funds futures are saying, still historically low. david: matt, no matter how you cut it this is distorted market. as far away from free market as you can possibly get. in distorted unfree market are you bound to get bubbles and cot market be one of those bubbles? >> absolutely could be one of those bubbles. we don't remember what interest rates are like, think about it.

seven years on morphine drip. once we get close to the moment before the moment that people realize that interest rates plight go up, we'll see all kinds of crazy convulsions in the market because we have become accustomed to a different reality. i think people looking long term are trying to figure out how to hedge, short term trying to figure out how to make money. david: mark, one more question on this, there are some fed presidents and fed chairman like paul volcker, for example, who didn't give a damn about the markets. all he cared about is what he is supposed to care about, value of dollar and unemployment. just those two things. he squeezed inflation out of system. caused recession. markets hated him. isn't it time we get somebody who is not doing stuff at the behest of the markets as a fed chairman is supposed to be in the interests of all americans? >> i think it's a very fair point, david. i think, concentrating on the market also leaves you painted in a very tough corner sometimes when you're forced to address language that really doesn't reflect what you feel.

i think everybody had concentrated on this patience term. whether we would get patience panic, similar to a couple years ago. david: yeah. >> look the u.s. markets have been underperforming those countries with qe, similar to europe and japan. all those markets done far better than u.s. last couple months. that is what is important to concentrate on. >> they went down a lot before. that is whole another kettle of fish. new information about just why netflix has begun to change its tune on the government tightening its grip on the internet. according to "wall street journal" netflix was looking for better terms in a deal it was making people didn't know about with comcast, verizon, at&t. so it engineered a slowdown of its own service a couple years ago to scream for help from the fcc, never expecting the fcc and president obama to go as far they went in demanding regulating internet as a utility. matt, this is quite a story. again, be careful what you wish for because a lot of these folks in silicon valley, netflix and

others were all for internet regulation up to a point, not to where it has gone. >> this is greatest case of crocodile tears since o.j. went to look for the real killer i think. amazing we have to relearn this lesson every single time. people think big corporations don't like regulation. that is not true. biggest incumbents, they use regulation to solidify their position in the market. that is exactly what netflix did. i am laughing at them right now if they're honest saying they're upset about the government. they brought it on themselves. david: matt is exactly right. corporations want regulations for everybody except them. that is called crony capitalism. >> then you have the companies doing pay to play, basically acting like bureaucrats getting bureaucrats to do what they want with their own slew of lobbyists. i'll tell you i'm not crying crocodile tears or tears for comcast or verizon. they really do enjoy a really lucrative position in the market, really fat profit margins. talk about crony capitalism, the

telecom industry in this country gets to charge a lot of money in the way of fees. you don't see that activity or charging going on in europe or other countries. david: no you don't, but the point, mark, they are beginning to hurt, competitors are nipping at their heels. apple coming out with unbundled system, a lot of providers with unbundling, could panic them and they're running to the government. >> excellent article in the "wall street journal" a week ago, potentially internet could be what it was in the past, bureaucrats and lawyers as opposed to entrepreneurs and vision aries. you speak first, realize there are important steps you've forgotten, netflix in general, these fast lanes are to benefit for -- >> david? david: quickly. >> quickly, david, i talk to a lot of guys on wall street. here is what they say future for netflix an companies like facebook, they will be treated like other cable content

providers where they have to pay carriage fees to be loaded in internet packages then sold to consumers. sort of like cable shows are packaged together and sold to consumers. that is what they're talking about. david: i want a la carte. i want to choose individual channels i want to pay for and those and none others. speaking of tv, fox broadcasting has a new show called "empire." don't take a fox guy's opinion for it. even "new york times" admits that, particularly among hard to get younger audience. doesn't seem to be slowing down at all. the show had almost 15 million viewers last wednesday. they're using social media to help boost their ratings. emac, why is the show such a hit first of all? >> it is a true soap opera with fast-paced dialogue. the lead character is patterned after jay-z. it has a powerful matriarch and great soundtrack. the storylines move rapidly and move fast and sense of irony too about the characters.

which people like. not so somber toning their lines. david: matt, producers of the show say social media is huge part of the reason why they're so successful. 50,000 tweets per show is what they got in the last show anyway. is this going to be a model others could follow? >> sure. not easy to follow it. they wanted to create self-consciously something like scandal which is story with a lot black characters. they use social media and a lot of soap opera and cliffhanger type elements. you can't create a social media storm. "sharknado" isn't necessarily the most successful tv show. david: that is true. mark, one thing about hollywood and broadway that is always true, if you have a hit somebody will come along, maybe everybody to try to repeat it. do you think we're going to see repetitions of this model, not only the style of the dialogue and so forth but actually using social media to help boost the ratings? >> i think that is es absolutely

true. this is all about families which is successful model for tv shows. scandal, power, intrigue and scandal with families, that is something always people want. social media boomed last few years where all the characters and everybody is tweeting out, trying to gather and garner attention for this. it makes it that much more successful. david: this show's demographics play into social media. fits into that group. so it's a perfect melding. mark newton, matt welch, elizabeth macdonald great to see you. as more companies go into the streaming business and take on cable companies the lightning fast changes give consumers options but sometimes they're confusing. is it really time to cut the chord or easiest thing to go with old providers? we'll talk about that coming up. let's head back to liz claman at harvard. go ahead, liz. liz: passion, intrigue, scandal, sound like mobile payments world at least when they're up against the banks. coming up the man who fought

banks, ran end-runs around them. david luther of mozido. mobile payments gone wild. hear how he is changing the bankless world. ♪ it's more than the cloud.

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liz: more than 1/3 of the global population is considered unbanked. do you know this word? that means they have absolutely

no bank. but at the same time there are just as many cell phones on planet as there are people. there has to be a way to make them link both. we have company see this is as huge opportunity for mobile payment technology. they want to bring all the financially excluded people into the economic mainstream. david luther is doing this. he and mozido, his company, are right at forefront of this. i'm holding my wallet with all of my bank cards. i have my bank accounts but you're saying, you don't need this. you just need this, especially for those who are unbanked. >> right. liz: how and why? >> well, it is really simple. a lot of people in the world that can least afford it are paying the most for financial services because they don't have a bank account, they have no credit card, they have no way to pay their bills, other than stand in line with cash but they all have mobile phones. we're taking traditional financial services and mobilizing them. we're mobilizing better future for people in the world.

liz: use jamaica as an example. what are you guys doing in jamaica? >> jamaica has a lot of unbanked people. they have a lot of poor people there. they also have some banked people. we work with group of 42 banks there. they create ad brand called connect. both the banked and unbanked people can use mobile phone service, not just on smartphones, on smartphones or feature phones. instead of waiting in line to pay the electric bill they can do it from the mobile phone. they can pay each other. they can send money across the country to a relative. they're doing all those things at a less price than from traditional services and much more convenient with the mobile. liz: you've been around. i want you guys to know david is the man that put the first bank on the internet. give us the name of that bank. more importantly, the resistance you got from regulators and real banks, et cetera. >> yeah. security first network bank, 19895. first bank -- 1995. branch in pine sill, kentucky.

we had a company in atlanta. we combined security and software with a bank and put it on internet. you could pay your bills. could you transfer funds. could you see your balances. liz: who hated it? >> regulators were worried about it. television personalities, interviewed me and worried about the security. but i just did a recent conference and asked people how many people had their credit card compromised past year. every hand just about went up. how many had their bank compromised? no hands went up. security for internet banking and mobile make them more secure than traditional services. >> you made a big acquisition in china. are the chinese faster than us in mobile payments? >> he will with the chinese, you know we made that acquisition to get into some of these emerging markets that have huge populations and huge unbanked populations. pay ease is allowing cross-border payments. think about people without bank account, without credit cards, how do they make an online purchase?

they can't. so, through this mobile phone and a mobile prepaid account, they could purchase something on amazon. it can be cleared through the payease payment gateway. we're getting into new markets through acquisitions in many cases because long term this will be won on international basis where your mobile phone will work everywhere for international payments. >> you think i can get rid of my big ol' wallet? i have pictures of my kids. i have reward cards. i have all kinds of stuff. can this replace this. >> do you have pictures of your kids on your mobile phone? lots. it can replace loyalty cards. one thing we're doing is program called chameleon so the mobile app can change the shape and features depending where you are. because it knows where you are, right? could you be shopping in a store. it could be store a, won't use any names, products and services and coupons. customized for you. you move over to another store and it knows your there and

become store b's solution. having a single solution, single wallet for everything is going. liz: no more clipping coupons. great to see you. doing fascinating work. great you came here to harvard to promote it and talk about it, thank you so much. >> we appreciate it. >> david luther, of mozido. he is futuristic thinker. he start first internet bank. he is taking this one step further as all the people are in mobile payments. send it back to you in new york. are you ready to start paying mobile, david? david: a absolutely, of course. i'm also ready to get rid of my cable box which we'll talk about that. if digital killed videotape if unbundled cable plan get rid of your video box? we'll look at the revolution next. will it really save you money? >> i'm gerri willis. coming up on my show at the top of the hour, is apple about to revolutionize tv with new

internet tv service or just apple hype? that is one of the big stories coming up on "the willis report" in just a few minutes. ♪ [ female announcer ] who are we?

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you've been staring at that for awhile, huh? listen, td ameritrade has former floor traders to help walk you through that complex trade. so you'll be confident enough to do what you want. i'll pull up their number. blammo. let's get those guys on the horn. oooo looks like it is time to upgrade your phone, douglass. for all the confidence you need. td ameritrade. you got this. david: stock alert added tomorrow. that is when apple officially joins the dow jones industrial average replacing at&t which has been a member of the dow since 1916. apple will be the biggest stock by market cap in the dow, in the whole world in fact.

twice the size of next biggest company, exxonmobil. shares of apple were up more than is 6% year-to-date. -- 16%. >> is cable tv going way of videotape? we're learning more about what apple has in mind for its new tv pro project. other companies besides apple thinking of doing similar thing. adam shapiro is looking into details. the key question, adam, will it eventually save money on our bills? >> in short term, yeah. there will be competition to drive prices down. if you add things in bundles, add up numbers it will cost you the same or more. you can use my fios bill with verizon as an example. i pay 60 bucks just to get on to the internet. david: bring the internet in your home. >> i have high speed broadband. if i wanted to just do that, i have to add on apple tv package. you saw the price there. it will be about 30 bucks. now i'm at 90 bucks because we also have hbo and showtime, about 140 a month. david: hbo and showtime. >> part of a package deal.

david: that is the big bucks. >> but if you wanted to have for instance, fox business, this network is part of a different tier within the bundle. david: right. >> so depending what you want it will add up. if you look at prices already out there, for instance, we found out today, sony playstation view will cost for cheap 85 channels, 49 bucks. 80 bucks for 200 channels. where will you save money? you will change pie. control won't be same. consumer will control it. if you save money? don't bet on it. david: apple takes technology there find as nice way of packaging it won't save you any money. >> it won't save you any money but it will be simple and elegant. it is apple. david: adam shapiro, thank you very very much. we asked you if you think the market is overvalued. spence says the market says it is overvalued for a year. riding option is only investors have. dan says, the market is not overvalued. within a normal range.

stop trying to use scare tactics on us. we're not trying to scare anybody. we're telling you what it is. the fed made the decision. that moved the markets. tomorrow it could go the other way. we hope you tune in to find out. "the willis report" is next. gerri: hello, everybody, i'm gerri willis and this is "the willis report," the show where consumers are our business. apple has transformedded a lot of things in our lives but can it change the way we watch tv. >> one box, one remote from apple. forget the cable company. gerri: victory for benjamin netanyahu in israel, president obama doesn't call to congratulate. we'll find out impact in the middle east? this is not just good for israel. this is good for the united states and it is security. gerri: markets get hung up on the fed. >> we're in the sixth year not having a rate hike. time to move on. gerri: we'll analyze what today's announcement on interest rates mean for the markets and your money.