tv MONEY With Melissa Francis FOX Business July 12, 2013 5:00pm-6:01pm EDT
testimony in front of the house financial services we will show it to life -- live >> i am melissa frances. zimbabwe has a better system than us. u.s. is almost dead last but it does not have to be this way. one word sharknado. is swallowed the whole internet last night. it is not as crazy as it sounds but it could solve a billion dollar problem the director is joining us and who made money today? the profits are in and stay tuned who is even when they
say it's not it is always about sharks. i mean, many. >> a very bad day for boeing one caught fire at heathrow airport of the 76 dreamliner but it was empty some of the was hurt but it did take a hit falling as much as 70% at 1.remember the dreamliner error was only back after seven weeks after dealing with battery fire problems. not good. here to tell this is to be the final nail we have former inspector general at the dot for this is a nightmare that will not end. >> it depends if this is another battery or fire.
if it is then the federal aviation administration will reevaluate the decision to allow it back in the year before the cause was known. however if the burn marks are on the top of the plane the battery is on the bottom so it is possible it is something else and that is a hope tonight. >> does that mean there's another problem other than the battery? >> remember this is in london so the british authorities will have primary control of the investigation but what they will focus on is the burn marks on the fuselages and they will need to know if that temperature would be hot enough to burn metal or if the composites berndt prematurely or at a lower temperature. there is not a lot of data.
melissa: why would that matter one way or the other? >> you want to know is if they could find the cause of the fire that if it can withstand fire like any other play like the 747 or triple seven. melissa: at the same time somebody said there plane had to turn back because it is experiencing a technical issue? the problems are starting to mount for this plane would you feel safe? >> i would not get on the 787 dreamliner today or tomorrow but the triple seven when it first came out in the mid-90s it took about a year-and-a-half to work out the glitches and
eventually it worked out and that is difficult to have little gremlins in your plane but fires are not typical so that is a big deal to the ntsb and faa. melissa: but we didn't solve the original problem in the first place we just insulated them in a way to contain them that doesn't make me feel better as a passenger. >> what they will look for wasn't hooked up to the auxiliary power unit? if it was then the recorder can record what went wrong but they will have the answer pretty quickly especially if the ntsb says people over to help the british authorities.
melissa: are you worried about going forward with the viability? at what point is a tipping point and you say maybe there's a real problem with this plane? >> the problem with a battery will be so much depends on the old-fashioned batteries they cannot produce the power but what is a wonderful about the airplane it has more power and can power anything but the old-fashioned battery cannot do it. it would be really problematic for also the new model airbus. melissa: so the job of this plane is predicated on the battery so fe swapped out it would not work and be the same plane? how critical is it? >> it would not have the creature comforts and there
would have to put on more battery wait. it would be different but it was still have a dual efficiency it's just that it would not have so many creature comforts and the power it can generate. it will be grounded for a while. melissa: the key for coming. what is the difference between the u.s. and zimbabwe? they have a better tax system. seriously. a report says we are worse than zimbabwe and egypt. we lay out three fast fixes to fix it. plus the beatles on ed sullivan, the moon landing, the greatest movie of all time i watched every minute. sharknado devours the internet. we have a director to join us. i can wait.
to make their money do more. (annto help me plan my next move, i take scottra's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my lening every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies."
beautiful home of the brave the 94 best tax system in the world. seriously. in the global tax game not something to be proud of. we have to turn things around we have two experts here we have peter and americans from tax reform, a gentleman, are you surprised we were so low? these were german economist. >> we have a convoluted tax system with smaller companies with huge taxes and general electric specializing in who is running it? political hacks. that is just the tip of the iceberg. they're very tough to deal
with very arbitrary in their decision making. it is a terrorist organization. melissa: apparently not all for those others that are more attractive. >> this underscores the dire need for tax reform. given the sad states of affairs there is ample opportunities to improve it. number one u.s. corporate tax we have the highest corporate tax in the world. this cannot stayed there if we want to be competitive bidding get down to 25% after states you really need to get the federal down to be about 20% to be competitive with the biggest trading partners also second come the move away from the tax regime unique to the united states we subject u.s. companies to double taxation and international profits. we need to move to
territories burgrave we do that it will encourage the capital sitting on the sidelines to come back people could invest in create jobs there is plenty of areas for improvement. melissa: we joke about it but the only tax revenue but the bahamas are at the top they tax imports at 50%. then make almost nothing on the island so every bring into the country napkins or anything it is taxed at 50% so every government gouges. how are we lower and how do we fix that in your mind? >> we have so many preferences so that is why the marginal rate is so high that in order to have a decent rate of taxation we
have to have a high marginal rate. i would like to go to the value added tax or consumption tax. melissa: is that your idea? >> 11% sales tax could get rid of the personal income tax, corporate tax and shut down the irs. that is the best solution i know and you cannot avoid it. companies cannot avoid the sales tax. melissa: but that is very regressive everybody on the left would argue that is harder on the low income folks. >> there is a number of things we need to do. but we subject businesses to a complex process when they buy a new equipment they create new jobs. we force businesses to
appreciate those over a number of years. which at the end of the day reduces the job capacity of the employers. how we fix that? we need to let them deduct their investment in your number one. we know the tax code is a mess and what we need to do to fix it we need the law makers with the political will to do it. melissa: we don't have the political will. and the acting commissioner now learning just a day the union is fighting back to try to make sure they can get their bonuses. does that distract or create another issue?
>> this episode we had in the irs indicates the bureaucracy itself is terribly biased and simplification would be useful because it would give much less discretion the fact that they would have bonuses at a time like this shows how tone deaf she is. she says and it is not involved in political activities. do you believe that? >> time for the fuel gauge report. a serious crackdown by moody's that has top safety regulations to hit the industry coming with the oil train crash in canada raising costs for producers about two-thirds of the oil travels by rail a number of refinery outages has run down supplies it has now
risen 13% just this month. and gasoline's rally pulling up oil futures settling just below the 50 month high at $105.95 a barrel. oil is now up 10% in july. that will hit drivers at the pump. that is too bad. coming up protesters fled egypt those for and against the muslim brotherhood. and 1.$3 billion in aid and we have john bolton who says leading to disaster would be to cut it off now. he is here to explain why. straight ahead.
post the first profit in six quarters pharmaceutical companies have a sharp increase in ad revenue sending shares skyrocketing with a 25%. apparently not enough many today are the joint owners of lew.com comcast and walt disney and twentieth century fox asked for their sales it had reached $1 billion but instead there will get an injection of $750 million of cash. twentieth century fox is fox business parent company. volunteers for eliot spitzer he is officially on the ballot for the comptroller raise. with 27,000 signatures well above the 3,000 every needed those reported $800 per day? i don't know.
is that a volunteer? let the circus began. no end in sight as the demonstrators take to the streets in protest again today this as a bombing considers whether or not to keep the cash flowing. the aid that egypt kits will only continue that his ouster was not caused by a coup that is being determined by the white house may be egypt doesn't need our many sinistral billion dollars of dade and to cut off u.s. support is a huge mistake. why is cutting off the many such said big deal? >> it has less to do with the amount of money involved and more to do with the overwhelming bulk of system is military aid largely to
purchase weapons systems for the military says the 1979 accord. also the training and schooling we have given two egyptian officers for three decades that has given us an enormous connection with egypt's military. to cut it off now would send exactly the wrong political signal just when we need to be exerting maximum leverage to stabilize the situation so the important regional interest is not compromised. melissa: then why do we care if it is a coup or if we send aid? is it semantics? >> it is a congressional statute like all efforts to legislate morality is sounds good but obviously we are in favor of democracy but it should depend on the circumstances. all other foreign aid also
allow for a presidential waiver when he determined it would be in the national interest of the united states to do so. we're not clear why that happened but that is the hang up. >> what are the qualifications? >> when the military dismissed morsi from the presidency there was enormous public support that that constitutes a coke -- jake to. i would not quibble but the president is making a mistake. the better course is to get congress to pass a quick technical fix for the president to waive the case they could debate the bigger picture now don't make a mistake now here on the ground in cairo.
melissa: we have seen this before with the person who engineers the ouster they're not better than the guy they got rid of in the first place. >> the choice here is egypt governed by the military since 1952. or watching the muslim brotherhood essentials the takeover not just the civilian portion but the military as well. morsi tries to pack the military to be favorable to the brotherhood and they would have lost the relationship we built over the last 30 years we're not just writing a check to the military before credits for the purchase of weapons, reimbursement of training of their officers and military schools. it is not a slush fund. melissa: the key for coming. we appreciate your time.
melissa: citizen kane, and the godfather now sharknado is practically crashed twitter last night but it could have solved the billion dollar question. the director joins us on his triumph. plus the world cup guilty pleasures for me lines around the box but the craze is creating a trade mark or. that creator is here. piles of money coming up. ♪ investments designed for a smoother ride. find out why 9 out of 10 large ofessional investors
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melissa: you might have heard about the craze sweeping new york city to doughnuts croissant it is almost impossible to get your hands on the less you wait in line for hours. now other bakeries are trying to cash in with their creation i sat down with the creator of the masterpiece. take a listen. >> wanted to create something fun.
i try to come up with new ideas something exciting. melissa: i do have some economic - economic questions you charge $5, you have a line that goes around the corner to have to limit the number of cronut someone can purchase at to. there is a bin of black market you can buy a second-hand $140 apiece. may suggest you have under estimated that demand and you need to make more or charge more? >> wanted to do something unique and fine idle think it is fair to increase the price. melissa: that people are not getting them who are paying $40 on the black market you could be making more money you could be selling more cronut. >> i am not doing it on
purpose we make about 300 or 350 in we have increased production since the number one. melissa: also what yyu may not be taking a vintage of the demand because copycats' spring up so they see there is the cronut demand not being served. what you think of these people making a knockoff? and did you get a patent? >> yes we did. it is good to inspire people , but with the word tea 20 people don't know it is trademarked. it is a specific product. just like other food that has been trademarked like
the big mac there are other companies that have cropped up one try to even use the same name. if you went to the trouble to get the trademark it makes me think you will try to sue someone? >> i spent most of my time in the kitchen might team takes care of the legal stuff. melissa: i have waited as possibly as i can. while i do this can you tell me what else you were making? some people say it is not the one here wonder. >> this is actually our best seller. melissa: this is insane in the best thing i have ever eaten. >> is like a flaky
caramelized croissant. >> now i will eat the rest. i was going to share them with their crew but it will not happen now. sorry about that. >> i did. i ate the entire plate. it was fantastic. you have no idea. the sharknado phenomenon blew up and it sucked in people from twitter it could be a way to monetize social media. i cannot wait. piles of sharks coming write-up. ♪ she knows you like no one else. and you wouldn't have it any other way. but your erectile dysfunction - you know, that could be a question of blood flow. cialis tadalafil for daily use hes you beeady anytime the moment's right. you can be more confident in your ability to be ready.
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what you missed. >> there are too many of them. melissa:. [laughter] they were sharks it was a great. so it is so bad it is good it was watched by 1. 3 billion people joining me now is the director of sharknado. welcome to the show. at what point were you when this started to explode on twitter? who told you? talk to me about that moment >> my wife and daughter and i were with friends watching the i was on twitter a little bit with the audience and as a started watching the movie i was starting to respond then there is 20, 20, 40, it exploded in their realized it was much bigger
than rethought and somebody said mia farrow said she is watching it and it was a huge event it was a weird and collective. melissa: number one trending fleeing on twitter, people got on you had celebrities it became a contest to see who could be the funniest. we have the funniest i cannot wait to see how msnbc and fox news covers this. i know what the second is doing but you should know three things henry winkler winkler, leatherjacket, water skis. part of it is the pleasure of watching was falling along with everyone else looking at the funny jokes. was this organic? to do anything? >> no. the whole thing we did there
was no marketing budget we did a little stuff on facebook but at a certain point it took off on its own we were not shutting it down people's throats but most of the time people watch it later but everybody sat down like it was the last episode of a smash it was like being in a movie theater except it is the entire nation. and you talk to the filmmakers and the people and they think that is fun. we make fun of these movies when you sit in the editing booth when you pick it apart. i was laughing along with it to. you get to see a different perspective on yourself. melissa: what about the concept itself? i am sure it was caused by global warming and that it
sucks up all the sharks at of the ocean? then somehow they were kept alive as they fly into the air and biting people? how did you come up with this idea and how serious were you? was the concept or trying not to laugh? >> the thing is the goal is to make a movie. i treated to as if i had 200 million but the thing is we make a movie about a tornado filled with sharks you don't need a lot of exposition have lasers coming out of their eyes you just say the cost of this they get picked up off the coast of mexico deposited in lowe's angels don't think of the logic tool for your brain. peter jackson did brady -- crazy movies when they first started off and this is the same thing.
at the moment when you chainsaw your way out of the shark. melissa: and spoiler other produce fell less than $2 million. have you made a bunch of money? >> i am sure it people will make of mint off of it once you have a concept and it explodes it completely in gulps what you do afterwards. i think it will do well with the vp then it comes out dvd september 3rd on the re an end of the numbers will be enhanced. melissa: congratulations eyelet ford to sharknado part 12. i know we will get that far. did sharknado to solve the billion dollar question for the media industry? is this a way to use and monetized witter?
so the idea behind twitter was they will drive the conversation to say things to buy things this is one of the first times the you really saw people get on and wake up to the fact that the second with a television event they were driven over to the tv to turn it on and get together to talk about it. how significant is this as a marketing phenomenon? >> very. it is very significant for twitter because they have proved they are realtime ubiquitous signaling system purdue could posted stefan facebook but twitter was the way to do it now it can show people this works. melissa: we looked at the of
braidings 1.$3 million -- when printing the people don't get me wrong. >> would you expect? >> as sci-fi a original movie generally has of viewership of 1.5 million but the biggest of all time swap shark was 2.2 million in june 2011. even though it was fantastic didn't match? if there were 60,000 tweet per minute with the celebrities to be expected to to be even better than i don't want to take away from ? >> what would the viewership been without the twitter? but there were 600,000 tweets. they're spreading the word. could the number have been higher or lower? we don't know the scenario but it made a huge difference.
melissa: how did twitter monetize? it was a national from non prepare you cannot create a phenomenon like this. how does twitter make money? >> from the people who use it like those to become an overnight success after 20 years. you have to have your ducks in a row and hope to what they can do next is it you want to start a conversation and build the program, this is the way to doing. i think what we will see is twitter will start specific programs. like the super bowl last year. and then they would talk about the commercials. i think twitter will start to build these online communities.
this run so far i think the l.a. weather channel put up the weather forecast about sharknado. i am going to the keys and i am a little worried. it could have been but i am worried more about the mansquitos. melissa: thank you so much. did twitter. you to watch sharknado last night? we did hear from some of you that said yes you saw so many mentions you had to check it out. that is what we're talking about. go to my face the page by really follow me on twitter at melissa a. francis. a famous restaurant in san
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our commitment has never been stronger. (announcer) at scottrade, our clto make their money do more.re (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webins. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. becae they know i don't trade like everybody. i trade like me. i'm with scottde. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." melissa: it is time for a little friday fun with spare change.
so festive. in san francisco, a major debate is deep in the fire. a restaurant called bacon bacon is being shut down by the health department. his neighbors were complaining that they could smell bacon greece in the wind. >> it wouldn't bother me at all and i have to tell you that there is a national pig association and it was-- this is their way of getting people to get on the bandwagon.
i think yes to bacon,,we need more bacon in our lives. we are re-opening the restaurant now. melissa: if i smell bacon on the time, i would just be hungry constantly and walking around with a blt in my hand. [laughter] all right, watch this, this is a new application that lets you see what you would look like in 10 years based on your drinking habits. and here's what i would look like if i had 10 drinks a week for the next decade. >> you still look good.
>> i look a little fatter and wrinkly. don't forget about this. here is your picture. it doesn't look bad enough to stop drinking. >> 10 drinks in a week is a lot. melissa: people between the ages of 18 to 25 are spending about $44 a month on alcohol. melissa: dataset? >> i spent more than that when i was that age. melissa: i have to admit that my picture was heavily airbrushed and i'm not sure that one
counts. up next, the state of florida is banning these machines to gamble. the state is being sued by an internet café. you think they're going to win? >> what i wanted to tell you is that it was my grandmother was 80 years old. >> of her grandmother says so, that can be a part of it. i would looe to not be able to use my phone in a way. melissa: victoria's secret
models, they have all the answers. did you know that? a model said that she would not be caught dead on one of those city bikes in new york. saying that cycling is best kept indoors in new york city and that someone is bound to get hurt. what is your take on it? >> i think those things are deadly. >> just wear a helmet. you won't look cool but wear a helmet. >> i think that's one of the main things. it is like a mean girls skit. so you think you're really pretty. [laughter] melissa: the problem is they have unleashed a lot of bikes in
new york city. many haven't ridden a bike in years and they decided they couldn't find a taxi so they might as well swipe their card or whatever and go ahead and try to bite bike down the street. and they just unleash horrible bikers in the middle of the street. >> there has actually been 700 trips already. she reported accidents. at this point in time to look like we are doing okay. >> even if i'm not cool, i would still wear a helmet even our own tom seldon has something to say about the quality. reporter: the president has said many times that we all need to play by the same rules and i agree and so does our constitution. it is called equal protection clause and it says that states shall apply the laws equally to
everyone. this brings me to wal-mart and washington dc. it is called the large retailer accountability act and it only applies to companies with sales of more than a billion dollars and it is obviously aimed at wal-mart and it is obviously in our company because it is big and successful. wal-mart says it has to pay a minimum wage. they say no thanks from a scrap their plans for the plan to build and washington dc. there goes 1800 jobs and low prices for the people. shouldn't they have the same lies everyone all. >> and who would be next? melissa: that is right. watch the tom sullivan show this