tv Markets Now FOX Business July 17, 2013 1:00pm-3:01pm EDT
dennis: so far wall street is unimpressed. fed chairman on capitol hill for part one of the two day testimony in front of congress. cheryl: another hour of "markets now" with the two of us. here with ben bernanke is 5% unemployment rate target, and also all the talk about tapering from the fed. dennis: on the affordable care act as well. lanletting the start of the employer mandate now we will tell you what house republicans are doing to dismantle obama's health care law entirely. cheryl: small business owners feeling a little overwhelmed these days. the entrepreneur making it his business to boost yours. former i was petfood owner, this hour we have got some advice for you and some perspective from him.
dennis: why movies are getting booted from the big screen in a desperate race to fight for your box office bucks. cheryl: time for stocks now. every 15 minutes, bringing in nicole petallides. we talked about this earlier, you don't get big reaction today from the fed chairman's testimony, that is the good thing we are nothing a lot of volatility. >> you are right. we stayed within the 100 points range top to bottom. up about 18 points. that being said, we do have a highly comminuted fed for the moment, they can turn on a dime. housing numbers pretty weak for a month of june, that is not good news.
overall you do see we maintain up arrows. dennis: thank you very much, nicole. ben bernanke answering tough questions on the economy. peter barnes from capitol hill with what she has to say. peter. peter: the fed staying on message on paper. it depends on the incoming data whether or not the fed will start to taper's $85 billion per month in bond purchases, quantitative easing sooner or later. but he did add these plans are by no means on a preset course. listen. >> on one hand the conditions tested than expected, inflation rising decisively back toward our objective, the case of asset purchases could be reduced more quickly. on the other hand if it were to
become favorable inflation did not appear to be moving back toward 2%, or financial conditions which have taken recently were judged insufficiently, native to obtain the mandated objective, the current registers maintained for longer. peter: so pick what you want out of that. the fed chairman did say he wants the market to get the message better. from the fed. want to mention one of his colleagues, fed governor speaking at this hour on the asset bubbles and their cause: the pack current monetary policy. she does not even saith she feels there are any bubbles right now in the economy, they are hard to detect in real-time and the solution, they have beefed up some regulation and it would take them be more regulation. back to you. dennis: thank you, peter barnes.
cheryl: ben bernanke saying it is not a preset course, they will respond to data when it comes to changing the pace of the bond buying, does the fed need a plan, a specific plan? joining me now, chief monetary economist. know the intricacies of the fed, kansas city fed president and chief said they needed to start tapering. we are seeing that, do they need to reevaluate sooner rather than later their attitude of the bond buying program? >> i don't think they reevaluated the program at all. they tried to lay out the fact, i called this if testimony. if it is realized, if the economy proceeds at the pace they expect, if the unemployment rate falls the way they expect,
if the inflation rate moves up toward their target, these are the points trying to get across that everything is upon incoming data. cheryl: there is the threshold. it is not even dub is, it is frankly just iffy, iffy if you will. don't you think the market and economy deserves a little more clarity than what we're getting right now? >> to have the models that layout, but they are not willing to bet on the models with what the market would like to see.
cheryl: the one thing we had not discussed is inflation levels and that is the one thing you heard this morning. sounded a little nervous. the target is 2%. we are below that. that is the one area ben bernanke sounded a little more concern than other areas. >> it is a personal assumption the mac consumption rate which came through on the cpi. the chairman is not the only one worried about it. very much worried about the fact with low inflation there is a risk from his perspective that we might slip into a deflation. there is risk of economy faces and that is the inflation numbers is one of the keys they are looking at as an indication of how strong aggregate demand ultimately is.
cheryl: the fed chairman is watching ben bernanke on the side. you know how to exit without inflation. that he is being asked this in d.c. as well. this is a bigger issue that has to be readdressed, correct? >> i think that is exactly right. what else would you expect them to say? we don't know how to do it? that is not the way the fed chairman, he has to say that. we will find out. cheryl: bob, thank you very much, appreciate you being on the show today. dennis: gold is down more than 1% at an bernanke gives his testimony on capitol hill. phil flynn of price futures group is on the cme for us. phil: mayor: gold the great short. a lot are wondering what would happen if everybody tries to
access this at the same time. we actually traded up toward $1300 today. that was rejected when the fed chairman while he had a dovish tone, still talking about possibly taping this year. the traders are still talking about the record short position and what will happen if we all try to get out at the same time. dennis: meantime, oil still holding on at $106 per barrel. >> you said it yesterday, we are in a new normal. we are right there in the middle. we did get mixed data from the department of energy, energy information, showing much bigger draw down over 6 million barrels. we saw gasoline and distilled supplies.
one of the concerns of the market and driving the market recently has been refining problems and the concerns of tight supplies to products. we are playing a little bit of back and forth. back to you. dennis: thank you. cheryl: also making news, asiana will not pursue action against the national transportation safety board. earlier in the week asiana considers suing evan and transposable used offensive and erroneous names of the pilots involved in the deadly san francisco plane crash. chinese officials have banned the fun is effective from leaving the country after authorities bribery investigation. bribing government officials. executive has not been detained, but they have detained for
chinese nationals who work for him. thithe stock hitting levels not seen since 2008. the jump commenced several wall street analysts hike the price target by lackluster second-quarter results. this helping to drive the target upgrade. raising evaluation which is widely expected to go public later on this year, but i thought the numbers were pretty significant. dennis: a small business legend sharing his advice free of charge. we'll ask you about their impact. and pet food owner playing the teal. cheryl: is the data really backing that up? the major miss despite growing enthusiasm on that sector. dennis: you say hello and they say goodbye. why it is happening at a theater
and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we iest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger.
cheryl: once again, we have been following test my that just ended on capitol hill. chairman ben bernanke just finishing up, went a little late because the hearing started a little late. ben bernanke make a comment before it ended saying the fed raise rates now the economy would tank. that is from fed chairman ben bernanke. let's bring in charles payne who has been kind enough to join us on this. >> this is ben bernanke's last testimony. he goes out and says to these guys you don't know what you're talking about, i'm sick of you barragebarrage me. if you think my job is irrelevant, watch this whole thing go to hell. that was the way he wanted to go out. he probably wanted to say that for years.
>> i don't think he is right. if they wind up a quarter of a point that does not have to tank any economy. >> here is a crazy thing about this. they buy assets from the government, they buy this from banks, it is not getting to main street. i don't think their lives have been impacted by the fed. we talk about the housing market. we got existing homes, 28% first time home buyers. we talked about the stock market, the bottom line is ben bernanke, his desire to spark the virtuous cycle is where he is frustrated. in a large degree he blames it on fiscal policy as well. cheryl: he did say he things mortgage lending would be
better, more home loans, more credit given if it weren't for credit regulations. >> regulations again. you guys are the ones holding the economy back, not me. that is what he is trying to say. cheryl: charles payne. dennis: nicole petallides at the floor of the new york stock exchange. nicole: we have been talking about housing. housing coming back, their the h over the years, however as we have seen yield rising, that puts pressure on housing overall. the latest numbers we got, construction of new homes a real disappointment down nearly 10%. you are seeing the homebuilders with a barrels despite the fact we got that week number. it is correlated to the race. those are moved to mortgage rates and more favorable mortgage rates to help people with refinancing or buying new homes, that ultimately is with
the homebuilders are hoping for. dennis: thank you very much, nicole. cheryl: complying with the affordable care act, the obama administration giving business a break and house republicans wants to give average americans that same deal. details from washington. dennis: the big apple cooked. live report from ne new york central park as temperatures soar. somebody will fry an egg out there. this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thousand dollars. congratulations you are our one millionth customer.
>> 21 minutes past the hour, this is your fox news minute. ariel castro, man accused of holding three women captive in his cleveland home for his long as 10 years has pleaded not guilty again. this time 977 kidnapping and rape counts in an expanded indictment. last month he pleaded not guilty to 329 charges. the united nations: the syrian civil war the worst refugee crisis since the genocide in 1994. the u.n. says more than 5000 people are killed in syria each month.
1.85 million people have fled the country. an average of 6000 per day. give us as weapons found by ship bound for north korea and seized at the panama canal are obsolete. found buried under sacks of sugar. cuba says the missiles were headed to north korea for repair. officials have asked u.n. inspectors for help, u.n. sanctions bar north korea from importing any weapons. back to dennis. dennis: thank you. the house ways and means committee hearing test weight today on the delay to the affordable care act. specifically a portion of the law requiring employers to provide health insurance. rich edson with details. rich: they are debating the issues in the house right now. it is an issue of fairness. the obama administration delayed for one year the so-called employer mandate. a provision in the health care
law that requires businesses to provide employees working 30 hours per week health insurance or pay a penalty. republicans say it should extend the delay to individual americans, most of whom the law requires to have insurance next year. >> the idea that the president can go out there and make a decision about what he is going to enforce and what he isn't going to enforce is fundamentally wrong. if the president wants to delay the employer mandate for a year, the place to do it is with the congress. it would be a step in the right direction, but remember the issue is still one of fairness. >> the house votes to delay the mandate for a year. the white house response to all this, they say it is time for the congress to stop fighting old political battles and join the president in an agenda focused on providing greater economic opportunity for
middle-class families and all those working to get into the middle class. administration says businesses asked to delay their mandate to give them more time to implement it. back to you. cheryl: from one hot issue to the next, dangerous temperatures across the northeast again, and it will be days before we get any relief in this area. david lee miller has the latest for us. david. >> the record for this day set in 1953 was 100 degrees. we do not expect to hit that number, but it is plenty hot for lots of people. there are about 400 cooling centers open citywide. a spike in emergency calls.
those who want to be here to enjoy, and those who want to be here because they do some kind of work. both say they do everything possible to cope with the warm temperatures. >> we get used to it. we have to pay for college. >> it is hard. that is how you do it. no days off. >> there are some creative ways to stay cool. reported increasing the number of people going to the movies not because they want to see the latest flicks, but because of the air-conditioning. a number of new yorkers enjoying grocery shopping. there is one store in particular in new york city, fairway. instead of having the perishables in refrigerated containers, half the stories
literally a giant refrigerator. the shoppers walk around with cold-weather parkas. at least for now nobody seems to mind. >> it is a freezing, is why i keep a coat on. it feels a little bit weird. >> i could stay here all day long. i was sweating, this is delicious in here. >> one additional consequence of the warm temperatures, the prohibition. unsolicited, spontaneous interview with pedicab driver. as i was saying, the consequence of these temperatures, there is a prohibition with the iconic horse drawn carriages, it is over 90, they are pulled off the street. back to you.
cheryl: hats off to the people running behind you during your live report. my god. dennis: we are treating the horses more kindly than the guys writing the pedicab. cheryl: stay cool, my goodness. what an assignment. dennis: turnover of summer films is red-hot. new releases duking it out over precious screen time. cheryl: and he is a self-made billionaire who is making it his job to give back to small business owners. here next with his efforts to help entrepreneurs take their business to the next level. the boys used double miles from their cital one venture card
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online trades for six months with qualifying net deposits. tdd#: 1-800-345-2550 our trading specialists are waiting to help you get started. tdd#: 1-800-345-2550 so call now. tdd#: 1-80345-2550 dennis: time for stocks now. let's go down to the floor of the new york stock exchange and nicole petallides is watching the banks. bank of america, boffo earnings just like jpmorgan, citi and goldman. >> right. so far so good for a lot of big players in the financial industry. bank of america is no different. up 3.3%. take a look where it is trading right now. 1438 for bank of america. -- 14.38. leading the dow jones industrials. we have other names that reported, bank of new york, ust bank and you did see m&t second-quarter earnings jump 29%. go back to the dow component, they were helped by cost cutting. also strength in investment
banking. we heard a lot of the same from jpmorgan for example. you see a mixed bag. m&t is pulling back. you see bank of america, bank of new york with up arrows today. back to you. dennis: all right. thank you, nicole. the earnings parade will march on. several big names reporting after the bell. ibm, ebay, intel, american express, some of the ones to watch. keep it here with live coverage with liz claman and david asman on "after the bell" at 4:00 p.m. eastern on fox biz. cheryl: our next guest is a self-made millionaire to sold his pet food company to in 1999. he is head of the ailer ron school in daytona, ohio. he is author of run your business, don't let it run you. >> thank you. cheryl: we look at nfib and tell us about small businesses,
business owners are scared and frustrated. sales are not coming in. they're worried about the economy. they're not hireing. >> right. cheryl: what advice would you give to a small business owner right now? >> small business owners have always been optimistic. i think i would tell them to be optimistic. look for opportunities. it's not, it's not, everything is not bad out there. there are some good news. it does tend to move up and down but we tell them to be optimistic. look for opportunities within your markets. look for opportunities to improve your product. and, it's amazing what can be done. dennis: i always like to say at that capital system optimism monetized. you don't invest in a new business unless you have hope that things are going well. how big of an obstacle for small businesses that you consult to is government regulation at any level? seems like there were a lot more of them than there were 10 years ago. >> there are. there are definitely a lot more. i grew up in the '70s.
we have a lot of regulation in those days. you probably don't remember that you're too young. dennis: i remember. >> it has been an interesting thing. cheryl: another thing we're seeing, to pick up on dennis's point about regulation whether it is state or federal is also the issue of health care. with the affordable care act, obamacare, if you will, many small businesses will either let go of employees or keep themselves under that 50 threshold. >> yeah. cheryl: you can't grow a business if you don't have the talent, yet they're afraid of the president's health care law. they will ask you this i'm sure at your school? >> i think they're more confused than they are afraid. i think you're always afraid of things you don't understand and we don't think they fully understand the impact of obamacare and we've been providing some opportunities for them to learn from people who are experts in the health care field. that is the least we can do to help them deal with problems and understand the problem. cheryl: what dot experts tell them? >> we just started that process of putting it together but they
would tell them again, you know, it's the law. it is something we'll have to adhere to. here are the best practices within this and these are the things we recommend. dennis: if you're sitting here talking to president obama as an administration would be the most important one or two things they should know about small business entrepreneurs? >> respect the entrepreneur. respect the entrepreneur. people who put their capital at risk to create jobs for others that is one of the most moral things you can do in a free society. dennis: i seem to remember, you didn't build that i seem to remember a debit about that. >> it did hurt a little. i'm not sure whether it was taken out of context or whether it was in fact how he really felt. cheryl: one of the things that you did, i think makes you such a great voice in all of this, you took a regional company, a pet food company, you love animals as you were saying. dennis and i are both animal people as well, you took that company and built it and sold it to proctor & gamble for billions of dollars. as you look back on the process
for you, 10, 2010 years ago, do you think that's still a possibility for someone starting out now? >> oh absolutely. absolutely. i don't think this is a bad time to start a business. i think we have problems today and problems we didn't have when i got involved. on the other hand we don't have 22% interest rates like we had in 1975. dennis: big go. >> when i tried to borrow my first million dollars. dennis: some of the most successful companies got started in worst of times. someone got fired, decided to start it and went out on your own. talk about your school aileron and tell us about this. >> this concept of professional management we didn't invent and management system we used at iams and shared it with others. >> iams is still successful brand, the company you created. >> thank you very much. cheryl: good luck with the book. >> thank you for having me. dennis: the latest on the case against steve cohen. the charlie gasparino is here next. is the statute of limitations
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awarded five-stars from smartmoney magazine. >> jo ling kent with your fox business brief. eads may be soon taking on the name of its better known plane making subsidiary airbus. the they are proposing to change as part after broader strategy review. the topic could be on board members again today when they meet july 30th. penske automotive driving up its quarterly dividend for the third time this year. stockholders on record as of august 12th can expect a 7% of increase of 16 cents a share to kick in on september third. sears issuing a recall of nearly 800,000 kenmoore dehumidifiers because of a new report of fire. they were manufactured by lg electronics and sold at sears and kmart stores between 2003 and 2009. the recall includes the 35, 50,
dennis: the end ever july is critical for steve cohen and his hedge fund sac capital and fox biz senior correspondent and author of "circle of friends," charlie gasparino is here with exclusive details on this man uninvestigation. >> i always want the book up there longer than it stays. that's all right. i'm trying to hawk a book. i think, when you talk to defense attorneys and talk to people on the prosecution, people that were prosecutors this is the key month. after july, the cases become much more difficult against steve cohen. that is when the statute of limitations runs out on some of the critical cases. here is the gameplan. we have two weeks before the end of july. watch for something in the next two weeks, just about every defense attorney i talked to has some relation to this massive ongoing insider trading case,
not, just not against steve cohen but galleon this has been going on since 2007. they say watch the next two weeks. if there are charges the next two weeks and a lot of people are the about there will be some sort of charges either criminal or civil against cohen or sac capital, this is the month after july, it looks like it becomes a much more difficult case. knowing the feds they can go after you forever. they can manufacture stuff. we should point out if they ever use rico, that is where the statute of limitations is much more squirrely. they can play with that that is interesting, preet bharara was on other business network talking about rico where they were barely used. giuliani used against drexel last time it was used in the major white-collar crime case. dennis: in the '80s. >> it might not have been '80s but might have been 1990. they had no problem bringing down drexel. i'm just saying, this is me as a
betting man. the next two weeks are critical. i think something is going to pop. cheryl: you think from preet? >> i think from the sec. i think this will happen. think, you're asking me to put, i wrote a whole book about this so i know a little bit. i do not have, i'm not getting this from inside the government. so this is me, me surmising. there will be a failure to supervise charge against steve cohen within weeks. cheryl: so failure to supervise? >> failure to supervise. that is a civil case. cheryl: all right. >> but it will bar him from the securities business. it will some criminal or civil case against sac capital which effectively end it. we should point out, if there is failure to supervise case against cohen even if it is not securities fraud, if it is along the lines what they're doing with john corzine, which i think they will, he will be barred from the securities business. you ask, can he run a family office? maybe or maybe not. will depend on the charge against the firm. how series is it?
is it a rico charge? how much does he have to pay to get out of this? this could be me talking. i could be completely wrong. this has the smell where we're going and it is coming soon. dennis: lou hang have they have been going after this guy, two years, three years? >> keep going. since 2007. dennis: the thought they could come down to the final weeks of statute of limitations runs out and they have not filed a big fat criminal case. the guy is supposed to be one of the worst violators on wall street says volumes f this is complete defeat, imagewise, you weren't good being a supervisor, isn't that kind of a flop if. >> i'm not disagreeing with you. the ends justify the means in their view, okay? now their ends, they have several ends. number one they don't want to lose a case. they don't want to bring a case they will lose. they're 70-0, right? they have not lost a case. most people settled or they lost in court.
the end, they believe, preet said this on the air today and he was cryptic bit. it was like the elephant in the room. everybody knew what he was talking about. do you have a company that has compliance designed generally to protect the guy at the center where other people can do what they want? a wink and a nod and people talk in code? you know, if he wasn't talking about sac capital i don't know what he was talking about. he pointed out he is not talking about any specific firm. he was saying we can bring a case against a firm if that is the case. i'm not saying they will bring it. i can tell you that based on my reporting in my book that's what they think about sac capital. i'm not saying that is what i say it is. that's what they think it is. cheryl: real quickly, mathew martoma as well. >> that was the best case to make criminal -- cheryl: that's the thing. in the last two weeks is it possible martoma is going to flip, do you think? >> it is within the realm of possibility. i think the journal story was wrong in the sense they wrote that steve cohen escapes
criminal charges because mathew martoma hasn't flipped. what they should have written, the fed given up on trying to flip him. it is in his court. we have other avenues. dennis: thanks, charlie gasparino. cheryl: buy his book. a great book. dennis: how is that for a plug? cheryl: as we do every 15 minutes let's go back and check on the markets. let's bring in keith bliss on the floor of the new york stock exchange. obviously you were listening an monitoring what chairman bernanke had to say today. the markets, we didn't get volatility which is likely a good thing but what did he say or not say that stuck out to you? >> he basically repeated all he said. they have been giving clarity since fiasco that happened back in june in the aftermath of the fomc meeting and the markets went a bit haywire there. what he did do, when the statement was released this morning you saw the 10-year yield just take a nosedive by 10 basis points.
clearly people are thinking that kind of what he said is the fed will stay in there and support asset prices and support the economy and thereby supporting the equity market as long as it takes. he said as long as employment is staying above that 6.5% level. cheryl: which is the opposite what happened back on may 22nd when he came out and did the press conference. we saw this incredible price in treasurys and we have never seen the market jump like it did. statement let me ask you this there there was a lot of talk about inflation, housing, the economy. seemed like he thumbed his nose a little bit at banks talking about tight lending standards at banks and they're still not lending where they should be. we have had other analysts come on and say thh same thing that the regulatory environment is still anti-bank, anti-lending. but we've heard from the banks this week. numbers are good. who do we believe here, keith? >> all depends on what side of the story you tend to be on. the banks have tightened up their credit standards, that's for sure in the last five years.
but the fed has been trying for a very long time, that is their basic transfer mechanism to get the economy going to get banks to lend f they continue, as long as housing starts to peak, if they get banks to lend up tightening standards, if they allow credit, we can keep the housing recovery going. i learned economic activity starts with a bank lending alone. i also learned a longs time ago, in this country the housing is the center of all economic activity. cheryl: certainly for stocks as well. keith bliss, thank you. >> my pleasure. dennis: the race for your box office buck is hitting hyper speed as the story of a souped-up snail named turbo dashes into theaters. seems like movies is going as fast as they're coming. you're not imagining. that story is next. ♪
cheryl: let's talk about a costly mistake. paypal mistakenly credited $92 quadrillion to the account of pennsylvania man chris reynolds. reynolds discovered the mission take after checking an e-mail account statement in june. he logged into his account to check the numbers, when he did things made a lot more sense. his account value showed zero dollars which was the correct amount. what he would have done with 92 quadrillion if he was able to keep the money, he said he would pay down the national debt. real patriotic answer from him. let's take a look at the markets right now. dennis and i have been talking
about this overall. the dow is up 11 points. earningsings coming out today. you were talking about yahoo! dennis: much better performance when bernanke rattled the markets saying a few offhand answers and rattled markets. i'll take it. with only seven weekend left in the hollywood summer season movie theaters getting slammed with big picket releases with nowhere to show them. makes me worthying is it worth spending $100 million to make a movie about robots fighting monsters and boot it from the theaters after two weekend? we have paul with us. appreciate it. >> great to be here. dennis: we have 20 films with nine-figure budgets. six more than last year. is it getting too crowded out there? >> it is getting mighty crowded. this weekend coming up we have four films opening in wide release. come on the heels of "despicable me 2" and "the lone ranger" of course and pacific rim and grown-ups 2, i mean it's an
absolute traffic jam out there at the situation's movie theaters. there is finite number of screens and theaters to show them on. summer movie season is where the films are packed into this 18-week period that accounts for 40% of the total year box office. dennis: what this means though, they get such a short time to play it, if they don't open well they're almost dead. "pacific rim" with monsters opened in third or fourth place on the opening weekend this past weekend. on the other hand "world war z" because it stuck in theaters manmanaged to recover from an unimpressive opening weekend? >> it really did. in fact "world war z" was a great place in point of a film talked about before it was released in a negative way about its cost overruns and delays and all that. once the movie open the headline was rewritten because the movie was really good. people responded to that. and then the social media took over and boosted that film. now if they had pulled that out of theaters right away like you said, that would have hurt the film some it is good to keep
aters longer. man, it is tough when you have all these movies. like the four wide release openers opening this week and this weekend, each are opening in e3, 4,000 theaters which is massive number of screens. dennis: yeah. >> taken up by all the newcomers. dennis: last fast answer, paul, the theater owners complain about hollywood wanting to get out to dvd faster and faster. aren't the theater owners too hypocritical because they're not giving hollywood long enough run at theaters? >> i don't think they're hypocritical. the theaters take products the studios give them. they try to run them as long as they can. if a movie is taking up lot of shelf space at theater and not doing well they have to move them out like cattle and move in the next big movie. the audiences migrate from one film to the next all summer long. kind of crazy but that is the way it works. dennis: move them out like cattle or "the lone ranger." >> exactly. dennis: paul, have a good day. >> thank you. cheryl: oil trading near 106
tracy: welcome back. i'm tracy byrnes. >> i'm ashley webster. well the fed's taper plans are to be determined. chairman ben bernanke post-traumatic stress disordering to congress that the end of easy money, will be quote, flexible. what does it all mean? breaking news on the fed's beige book just in moments. tracy: flexible, huh? well, gas prices jumping. trust me, i know, another two cents overnight. oil trading near 106 doll a barrel. petroleum institute chief jack girard says there are clear ways to ease the price pressure.
why we're not doing them, i don't know. but he is our special guest this hour. he will tell us. ashley: serious questions about the obamacare delay and whether it amounts to breaking the law. republicans want to know if president obama is overstepping his powers. more on the escalating story. but we have the beige book. let's go to peter barnes. peter. >> ashley, let me go right to it. it says reports from the 12 federal reserve districts indicate that overall economic activity continued to increase at a modest to moderate pace since the last beige book six weeks ago and that is the same language used in the last beige book, modest to moderate pace. this is the beige book though that the fomc members will use at their meeting two weeks from now at the end of the month. continuing on, it says that, quote, manufacturing expanded in most districts since the previous report with many districts reporting increases in new orders, shipments or production. most districts noted that overall consumer spending and
auto sales increased. and it says, as well, hiring held steady or increased at a measured pace with some contacts noting reluctance to hire permanent or full-time workers. we've heard anecdotally about companies holding off on hiring permanently or full time because of obamacare but as you know the president has now delayed the employer mandate for a year. ashley? ashley: that's interesting. modest to moderate pace, i guess that is pretty much what the data has been indicating. also, peter, fed chair ben bernanke giving congress a clear message on the fed's plan on bond buying and interest rates. the question is, is the message being received clearly? >> yeah. he was, he was hammered on the increase in interest rates since he began talking about tapering quantitative easing back in may. interest rates on mortgages, specifically have gone up. you know about a full percentage point. several members the house
financial services committee raising that issue but chairman said that, as far as the tapering plans, again it is going to be data dependent. if the numbers keep coming in as they have, the fed forecasts tapering could begin late they are year but he said that these plans are quote, by no means on a present course. but, in the very last question he was hammered about interest rates and it sounded like he slipped a bit. take a listen. >> i don't think the fed can get interest rates up very much because the economy is weak. inflation rates are low. if we were to tighten policy the economy would tank. the rates would be low. >> the economy is weak. it would tank if they raised interest rates? well, we'll see how that plays out. back to you. >> kind of got a little loose lipped there. peter barnes, thank you so much. we appreciate it. tracy: a little hyperbole i
think out of our fed chair. it is time for stocks. nicole petallides has been on the floor through this old humphrey-hawkins, that's what the old people call it. the market didn't move a heck after lot, right? >> we're not old. we just know the former name. the dow, nasdaq, s&p all posting up arrows as you can see. the dow jones industrials up .1 of a 1%. it is up about 16 points, helped along by bank of america which i'll get to in a moment. you see the tech-heavy nasdaq doing quite well. we'd had back and forth action throughout ben bernanke's testimony. the fed is ready and will support us with monetary policy but at the same time if things would improve they would taper quickly and the ability to do so. but a lot of fed is speak either way if and when, et cetera. that is what the traders on wall street expected. let's look at two dow components worth watching. we'll first start off with american express. it has been a big laggard on the
dow. maybe down 12 dow negative points. this is down 2% on concerns over in europe on fees, there has been some legislation to it, fees that retailers are paying may be capped for the credit card companies now. mastercard and american express and visa already agreed to these. this would really hurt, according to morgan stanley and credit suisse would hurt american express the most of the bunch. then there is bank of america. bank of america has been a real winner on the dow jones industrials. it is the number one performer over the last year up 75%. they have had cost cutting and quarterly numbers which soared. investment banking helped them along as well. up 3% today to 14.39. back to you. tracy: thank you, nicole. see you in a few minutes. ashley: our first guest says ben bernanke and corporate guidance will be front and center the next few weeks. he expects slow earnings growth and cloudy growth outlooks for the yes, sir of the year. joining us permanent portfolio
president michael cuggino. what do you think of mr. bernanke said today? he said pretty much the same thing but my goodness, he said if we raised rates the economy is going to tank. seems like the flexibility is there and the markets should like that, right? >> it doesn't necessarily jive with the beige book comments but that's another story. i don't think he really said anything new here and i think we're getting sort of tired of the going around in circles commentary that we're getting from the federal reserve and their spokesmen. i think the reality when you look at the forest through the trees they have opened up the dialogue about a potential tapering or a change in the mix of their policy tools or whatever you want to call it, prepping the market, tilling the ground, getting us ready for that eventuality but i still think they're going to be around for quite a while. with when you look at dual mandate, inflation is low. unemployment remains stubbornly high. the job numbers are not significant enough of an improvement to knock the rate down anytime soon. i don't think the federal
reserve is going anywhere anytime soon. the other thing interesting in his come mints this morning he basically admitted, i think a lot of the market assumes that the federal reserve and the world central banks can control interest rate policy in this sort of command-and-control fashion and the reality is the markets control interest rates and all you have to do is look at a month ago when we had that significant, you know, rise in interest rates. and so i think he alluded to that and recognized that economic growth is not a lot cushion. a lot of analysts are bringing their numbers down for gdp growth in the second quarter. the rest of the year corporate outlooks remain cloudy. so there's not a lost cushion there for a back slide if you will. tracy: let's talk about corporate outlooks though because they haven't been great even though the banks seem to be the lone star in the earnings season this year. when you get companies like up is. , coca-cola, blaming the weather, where do you go from here as far as investing? what are you looking at? are the financials now on the table for you? >> the financials make sense because their interest rates are
subsidized and they make money on that margin so i'm not surprised about that. housing is improving a little bit but although a quick rise in rootsroots will cool that a little bit. we run a equity strategy we're fully invested given fed money and given corporate earnings growth providing a foundation that makes sense. we run an unconstraint bond fund and keeping durations relatively low and sticking to relatively high quality there our asset allocation fund we invest in stocks, bonds, precious metals and bonds u.s. and non-u.s. in this environment while not popular, people are focusing on equity markets and their return a balanced approach might not be a bad idea here. ashley: you believe the fed will probably start tapering by the end. year, is that right, michael? >> i would make no forecast on their tapering. to me tapering is not that big of an issue. you know, i wish they started yesterday to be honest. i think it's benefits are
limited and i think it gives an improper view of the real interest rate market and we saw that by the manipulation in the last month or some i think reality is until unemployment comes down, until we see real inflation which is a threat down the road but not right now i think the fed's going to be around in some capacity, u.n., whether fed funds rate or other policy tools and i think bernanke was very clear on that this morning. >> is it all clear, then, all off to the races? is there anything that worries you that could derail this? >> yeah. you mentioned corporate earnings and economic activity. you know, most, at this point in the earnings cycle and we're still in the middle of reporting so it is sort of tough to understand fully what is going on there but companies seem to be meeting by and large for the most part although you don't hear a lost positive outlooks, you don't hear a lot of positive forecasts of real revenue growth and i think that is something that is going to weigh on economic activity going forward. let's face it, we've had a bull market in equities the last four
years. i would argue a good portion was due to revaluation after 08 and 09. i would argue that cost cutting and corporate efficiency resulted in earnings growth providing that foundation. dividend yields have been positive. they have been better than bond yields that brought liquidity in but the thing you're missing for another leg up is real revenue growth an vibrant economic activity and i do not see that on the horizon. tracy: we've been missing that for a long time though, right? >> yeah, we have. ashley: michael, thanks so much for joining us, we appreciate. >> thank you. tracy: that top-line growth, we've been talking about that for -- ashley: years. tracy: feels like it, right? we got way more to come this hour including a new push for the keystone pipeline and totally against renewable fuel standards. american petroleum institute chief jack girard says both would help ease gas prices. he is here next. ashley: a slew of tech results coming up after the bell today. we'll is have a preview straight ahead. we'll take a look how oil is doing on this wednesday and can
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tracy: oil prices are up almost 10% this month. gas prices are on the rise as well. the national average for regular gas, now $3.66. that is up two cents just overnight and up over 15 cents from last week. our next guest says the government's ethanol mandate could make things even worse. joining us now, jack girard, ceo and president of the american petroleum institute. jack, thanks for coming back. >> you're welcome, tracy. tracy: we understand that this renewable fuel standard was set way back in 2007 when gas was supposed to continue, demand for gas was supposed to continue to increase and it's not, right? >> that's correct, tracy. what happened, they expect ad big surge in demand for gasoline. that has not materialized. so they set a volume requirement that we blend ethanol with our gasoline and this year it is projected to break through the 10%. the reason the 10% is important because is all the model manufacturers in the united
states have built cars to use a 10% blend but nothing more. so now we're at a point where the law requires us to blend more than 10% and the auto manufacturers are saying wait a minute, if you use more than 10% ethanol in your gasoline, we're not going to warranty our cars. so the law today is going to push us through what we call the blend wall and actually potentially do harm to the auto fleet. so, we're very concerned about it. we're pushing the congress hard to not only repeal it but to try to get the administration to exercise waiver authority to bring that under the 10% so we don't do harm to consumers. tracy: wow. because, not to mention, gas prices well go up as well, won't they? >> that's right. we're not in the business of projecting gas price but an economist looking at this closely suggested it could have an additional 5 to 15 cents per gallon added to it as we try to manage through a very difficult
circumstance brought on by the congress and the administration. tracy: you are fighting though, the environmentalists fight here, aren't you? they are really all about these renewable fuel standard? >> well, there's an interesting dynamic that is taking place because those that are seeking to change this law include many in the environmental community because early on they were promised that there would be significant reduction of green house gases associated with ethanol use and production. and what we're now founding, based on third party analysis they're not realizing those green house gas reductions. so we even have environmentalists siding with us now saying, this isn't working. it's not achieving what we want it to. the ultimate impact will be on consumers. so we've got to get it changed. tracy: leave the corn for popcorn. speaking of environmentalists, let's talk about the keystone pipeline here. >> okay. tracy: they're part of the problem or the reason this isn't going through here. >> that is part of our dynamic. unfortunately the keystone pipeline is now in the fourth
comprehensive environmental review. later this year we'll be on the fifth year in this permitting process. everyone has concluded there is no significant impact to the environment we've just got to get political courage on the part of the president to step up to say this makes good sense. more supply in the marketplace puts downward pressure on prices and it is just that simple. tracy: why isn't that simple, right? it is not just about gas. it is about getting nat-gas through as well. the pipeline will be used for other things and it is all about our energy independence, isn't it, national security? >> well loft this, a lot of people don't yet realize the united states in the past three or four years has become the world's number one natural gas producer. tracy: right. >> it is projected if we say on course in the world's oil production we could become the world's number one oil producer in seven short years but policy matters. if you'veegot elected officials in place that are restricting
our ability to produce this energy, that is what is causing impacts at the gas pump. that is what is causing delay if you will in our ability to create good-paying jobs, produce american energy, buy american -- by americans, for americans. we have to get about that work. now it necessary the hands of the politician. tracy: if that oil doesn't come down from canada to us it will surely go to china. jack girard with api. thank you. thanks for taking the time, sir. >> thank you, tracy. good to talk to you. ashley: a quarter past the hour. time to look at these markets. nicole petallides on the floor where she always is at the new york stock exchange. nicole, we're just staying in positive territory at least. >> right. so far so good for those bulls out there. not too much volatility, the vix, the fear index has been to the downside and one of the few red arrows on the board i see right now. the s&p 500 is up one-third of 1%. the banking index, the drug index, the retail index all doing well. transports also with up arrows.
it is important to note that gold is down nearly 15 bucks. let's look at mattel and hasbro on the heels of mattel's quarterly numbers and seeing weaker sales particularly for its barbie namesake brand. four quarters in a row seeing the sales slipping and the stock is slipping as well. hasbro is down in sympathy. to stay on mattel, for a moment, their one piece of shining light are american girl and monster high dolls. american girl has been very popular. hasbro shares are also down and worth noting that the united states and europe have been weak so far this year overall for toy makers across the board. back to you. ashley: nicole, thank you very much. we'll be back in 15 minutes. >> probably haven't seen a monster high doll? ashley: no. tracy: like these monster girls. they're eerie and freaky yet somebody is buying them for their children. bizarre. the zombies are buying them. the president wants to delay parts of obamacare for a year. does he have the legal authority to do that?
congressional hearings are taking place right now on that very issue. we'll have details ahead. ashley: as we head to the break, let's look how the u.s. dollar is moving today. kind of a mixed bag. the euro is down against the dollar but the pound is up. as you can see a mixed day with currencies. the yen though moving lower now against the dollar. we'll be right back. any last requests mr. baldwin?
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>> at 22 minutes past the hour i'm arthel neville with your fox news minute. in california more than 2200 firefighters in 25 aircraft are battling a wildfire near palm springs. the blaze began on monday. it has groan to more than 22 square miles and it is about 10% contained. aerial castro, the man accused of holding three women captive in his cleveland home for as long as 10 years has pleaded not guilty again. this time to 977 kidnapping and rape counts in an expanded indictment. last month castro pleaded not guilty to 329 charges. the trial is keds scheduled to begin on agent fifth. the united nations is calling the syrian civil war the worst refugee crisis since rwanda in 1994. u.n. said more than 5,000 people
are killed in syria each month. 1.8 million people have fled the country, an average of 6,000 a day. those are the headlines on the fox business network. back to ashley. ashley: obama administration about the president's plans to delay part of his health care law. that is getting a lot of conversation going on capitol hill. rich edson is in washington with latest? >> that official defending the administration's move, delaying one year the obamacare employer mandate. it requires at least businesses with at least 50 employees working at least 30 hours a week to offer health insurance. if not they pay a penalty. the republicans say the government should expand the obamacare delay and push back the individual mandate that is a provision requiring almost over american to have health insurance. they say it is a matter of fairness. >> in less than a year individuals who fail to purchase
government approved health insurance will be forced to pay higher taxes. it isn't right, mr. speaker, to deny american families the same relief available to american businesss. >> this vote is a nullity. does nothing as a matter of law the fact of the matter we're filling up more time here. >> this afternoon the house will vote to delay these obamacare mandates for a year. they're expected to pass though this legislative effort likely ends there. democrats control the senate and the white house. and they say they are looking forward to implementing the health care law. the white house says president obama will tout the benefits of the health care law in a speech tomorrow. back to you. ashley: we'll hear what the president has to say tomorrow. rich edson, thanks so much. tracy: okay. so break out the black tie because your 11 herbs and spices just got a whole lot fancier. ashley: what? tracy: at least they're trying. kfc will toss out the bones in favor of fancy florida bread sandwiches, rice bowl salads and believe it or not boneless chicken in what the fried
chicken chain dubbed kfc 11 in honor of the 11 original herbs and spices. you can't call it the joint if it is an up grade. i should call the upgraded restaurant will open its first story front early next month. >> there it is. tracy: we don't know what the inside will look like but get this. the outside the familiar face of the colonel, totally replaced by some out line of a chicken. ashley: in a chicken coop apparently behind a barbed-wire fence. >> colonel was very debonair. he had his little southern suit thinggie going on. we could use him. ashley: he dressed up. tracy: he tried. i don't know. ashley: you have to change with times. at least they're trying to. there are always the purists out there. you were saying -- tracy: when i was a kid, we grew up, on saturday nights got a buck kit of kentucky fried chicken and business cuts. so not italian. crazy, right? ashley: on deck, federal reserve chairman ben bernanke tweaks his message on the tape.
report. nicole petallides on the floor of the new york stock exchange. and just never been a lot that night. i can't help it. the strangest thing ever heard. >> reporter: and deny wrong. they really did river -- reiterate that on several occasions throughout the report about what and chilly weather hurting coca-cola's sales. so that is something worth noting, a tough economy also plays a part. that is the bigger issue ultimately. the dow jones industrials holding on to the green, up seven and a half points sittinge moment. the majority of these into trying to pull out gains to the upside and keeping a close eye. the ratio of up to down volume. the sigalert debt. in annual high, the highest close since 2008. turning around this company. a lot of the analysts coming out , this may be the classic turnaround story. another recent evaluation, so it's all good news ultimately. tracy: is sure is.
must be happy. nicole petallides. thank you. this season. ashley: all right. treasury yields falling to the falling to a two week low. the tapir plans will not -- or not said stone. joining us now, former fed analyst. so thank you for joining us. look, we know that treasury sell-off in the second quarter. they saw the fed tapir talk. would you expecting for the current quarter? >> thank you for having me. after the chairman's testimony today following a speech, last week treasurys would be range bound banking in the short term. volatility certainly will be higher than it was a year or two ago, but it will come down a little bit from what we saw in may and june. ashley: you're not advocating to get the heck out because they aren't expecting interest rates to rise anytime soon?
>> correct. from a long-term perspective interest rates are too low. take a long-term approach at how we invest. i don't think treasuries are great value, but right now if anything with some of the weakness we are seeing in the economy yields consider where they are to evenfall little bit. ashley: also, i was reading your notes. certain segments in the emerging world start to look attractive. where in particular. >> a country like the philippines. all emerging-market companies got beat up at the end of may after the chairman's testimony. everything got painted with a broad brush. a country like the philippines, current account surplus, a good reform story, we think that is an attractive place to be invested. tracy: how you play that? >> it's hard for the average investor. i would advance the mac -- and
advise the macro fund. we buy local bonds or non deliverable forward contracts, so it is tough for the average investor to buy currency like the philippine peso. because we have a 247 trading desk we can do that here. ashley: very good. the slick and some of the other areas of fixed income. mortgage-backed securities. basically the government -- well, the fed is certainly big can set these. the rising mortgage interest rate certainly has been painful. under any of which it is in that particular area? >> certainly more attractive levels. obviously some dislocations in the kind of generic part of the mortgage market because the fed is buying a sum much of the supply. still values in certain parts of the mortgage-backed market. an altar season mortgage-backed market. the value in some and verse i'll mortgage by security. so starting to be certain
values. ashley: i have to ask you about the muni bonds. retail investors love the tax effect -- tax exemption that comes with those. i we seeing the fundamentals improve? putting detroit aside. overall alysian any improvements? >> i think broadly speaking suddenly state and local government finances are in better shape than there were a couple of years ago. some of the states get their fiscal house in order, you will have areas like detroit or other municipalities pop up on the radar, but broadly speaking on the finances of state and local governments cannot better than a workable years ago. certainly as some people had feared. ashley: you mentioned range bound. analysts say the yield could come back down to around 2% this year. essentially because the market is just overreacting to the tapering talk. would you agree with those? >> in the short term it's
certainly tough to say exactly where they're going, but if the economic data continues to be weekend we continue to see inflation on the low side, i would not be surprised to see yields it down to that range around to. it posted 20 ride in the middle. ashley: very good. thank you for joining is, talking about fixed income. we appreciate it. >> thank you for having me. tracy: breaking news for you. well edging higher on the day. up $0.48. thanks to a bigger than expected supply drop. oil at its highest level in a week. certainly feeling that the pump. it has already been a busy day for earnings and they're actually not slowing down and all. tech names, intel and ibm out. in the newsroom with the numbers you need to know. >> under pressure. sectors have traditionally relied on. westar with intel, the world's largest chipmaker.
try to survive and immobile focus world. analysts expect earnings of $0.35 per share. trading on the deal to put that up. under the new ceo, they just took over in may. investors will be closely watching to banks. chips for notebooks will definitely impact selling prices. the second capital expenditures, will they cut back on the spending with the fading analyst expecting to see cutbacks of up to $2 billion? plus take a look at ibm. expectations are $3.77 per share for the second quarter. $2,537,000,000,000 in revenue.
currently it's been trading down lower today, trading down 7% over the last three months. ibm is coming off an uncharacteristically disappointing first quarter. that was the first time that did not or -- meet or beat estimates in nearly eight years of treating that to the failure to close deals for middle where an server division. analysts will be watching for updates on that after the bell. morgan stanley is concerned about the ibm international market share same weaknesses in latin america and asia could deal disappointing numbers. international accounts make up nearly 25% of ibm's sales and a lot of the growth over the past few years. tracy: a lot to watch later on today. ashley: it is. tracy: banks. remember to keep it here for full coverage and analysis of all these earnings starting at 4:00 p.m. eastern on after the bell. ashley: a busy session. billing mistakes adding up to billions of dollars in wasted health care spending.
some tips for making sure your medical bill is error free coming up next. tracy: first, let's take a look at your ten and 30 year treasurys. down five basis points. and you're 30-year moving as well, down three. three and and a half. the dow was up five. we will be right back. ♪ [ shapiro ] at legalzoom, you can take care of virtually all your imptant legal matters in just minutes. protect youramily...
with your fox business brief. the treasury secretary will be making a pet stopping greece on sunday on his way back from the g20 meeting in moscow meeting with the greek and -- the greek finance minister. supporting a strong and durable recovery. j.c. penney and the pressure after credit suisse reiterated its celebrating citing the promotional pricing and how merchandise and women's apparel. also expecting the company's second quarter first marses' to come in less than forecast. and iron man star topping the highest earning hollywood stars for the year ending june 1st taking the number two spot. the round and get a tough time. that's the latest from the fox business network, giving you the power to prosper. ♪
♪ ashley: well, trying to understand your medical bills feels like you are reading the electrical blueprint for the f-16 fighter jet, you're not alone. more than 75 percent of americans said they don't understand their health care bills or insurance for that matter, but the lack of understanding is still cost you. the user's guide to health care. tracy: that metaphor was right on. poring through medical bills trying to read them. is darn hard even if you start going through a lot of them. we never used to see these. the insurer would pay him off. it would never see a final bill. now you do and you have to pay attention because your deductibles are going through the roof. you're having to pay more and more of this. the first thing to do is get a look at this. understand that there are fees and services, from all over the can't -- place.
all kinds of people feeding in. instead of describing what you're paying for it they don't do that. tracy: thousands and thousands of them. you want to know what they are take a look at the american medical association's website. that will help you understand them. doctor can to. ultimately would you want to do is compare. compare what is on that bill with what your experience and the doctor's office. >> because they are finding different codes to claim more money from insurance. >> the code up and go down. the doctors tried to push it up and the insurers try to push it down. that means more out of pocket for you. >> especially with kids. if you look at them. you see the amount bills, the amount the insurance pays commend the differential is among this. meanwhile, we went in for a
small check out. tracy: made * cleaning out a waxed us more money than advising some of them chemotherapy. it's crazy pass the way they do this. that was not really english. ashley: probably echoed number for that. >> here's the takeaway want to leave you with. percent of medical bills that bears. here is what they are. a double bill you, bill you for something that never happened in the bill you for something that was planned that they later canceled. so you have to be super careful about this. it will be talking more about this tonight in a shell. great experts on to really give you an insider's look, a guy who advocates for consumers every single day for a living selling as bills, showing us how this happened. ashley: valuable information. thank you. don't miss the willis report tonight at six at 9:00 p.m. right here on the fox business network.
no more crazy pants. we will get to the bottom of it. tracy: i was double bill that the food store. every single item was doubled. i swear to god. my bill was like $4,000. check your bills. as the moral of the story. it's a quarter till. time for stocks as we do every 15 minutes. it down on the floor of the new york stock exchange working -- joining us. no real reaction. the testimony today. nothing new. there's no preset plan. >> there is no preset plan, and the markets are reacting. again, they have been telling his basic this same thing for the last month. there is no reason to get excited. we got started in earnest. one -- well was very interesting today was how the beige book was released. there were no surprises and that a separate they said was the reluctance of most companies to hire full-time, permanent workers, and we are starting to
see that in some of the employment data. that squares with the chairman's testimony. that is where he is sorry, the labor market. we are not hiring full-time workers which will keep the economy down for some time. tracy: it most certainly will. small businesses, is a correlation for health care and obamacare. thank you very much. >> my pleasure. ashley: the dow turning slightly negative. jumping into the race to launch web-based tv. dennis kneale will tell us which media giant they're talking with an alibi look next. tracy: first, let's take a look at tom device of the day's winners and losers on the nasdaq as we have to break. mostar beverage, some of your big winners. we will be right back. ♪
♪ ashley: well, the black forest fire is expected to cost taxpayers $7 million, and it has some people asking why helms are being built in the forest lands where wildfires, of course, are inevitable. fox news is in colorado springs with the latest on the story. >> reporter: your member earlier, the black forest fire burned more than 500 homes. folks were already pulling permits. starting to rebuild in that same area. we are in an area that has already been through that process. the burn area, more than 300 terms weren't here last summer. seventy homes have already been reconstructed in this area. 130 homes are planned to be built sometime this next year. this is actually a trend. homeowners deciding to live in the wild land urban interface
otherwise known as the will we. >> 40% of all new development is taking place in this wild land urban interface. by 23rd we anticipate that the number of people who live in the wild land urban interface will increase by 300%. >> plenty of that this affects everyone of us because it impacts our air and water quality, as of our water supply comes from areas where these fires create ashcroft. as we try to protect our homes, trees, and underbrush which are ignition sources that grow quicker and create fires to spread faster and burn hotter, colorado state university professor says we have gotten caught in a fire suppression cycle over the last 100 years. >> i think that the choice to not suppress the fire in a wildland urban interface environment is just socially and politically untenable. think we will always have to
suppress those fires. >> because of the wallow canyon fire fire codes changed. so while they can still rebuild close to the wilderness, the materials that they use are going to have to change. ashley: it has to make you nervous to be amongst of the ashes and charred remains behind to to build yet another round. an interesting story. thank you so much. of course there is the insurance costs as well. tracy: i can't even imagine. google, king of search. the king of tv, dennis kneele knows. tracy: with the latest. >> reporter: in talks with media titans for a new web based tea the service which could pose a big threat to comcast, time warner cable -- cut time warner cable. the service will go over the top, sidestep the old systems and hundreds of cable channels and deliver tv shows live and on
demand to subscribers on the smart phones, tablets, laptops, and http. google enters the race already riddled with tech giants, apple, microsoft, intel, sunny, amazon, netflix. it is not at all clear that these make the firms are better at tv then broadcast and cable companies. doing it for decades. the path is strewn with with corpses of past failures. microsoft spent a few hundred billion buying an outfit, recently shut down the last remnants of the. apple tv has been one of the few flops from that company. google itself has proven to be very good. a cell phone, it is frugal shopping. now, facing competition from cable incumbents. also working on tv screens of their own. time warner has hbo go, discovery channel has a net streaming surface.
when heated vantage, it has youtube, the most viewed web video side in the world by far. billions of streams each month for 1 billion monthly visitors who are quite comfortable watching web tv. tracy: my kids sit around and watch you to videos all the time. what does this do for the big players? >> let's figure out who might be the most likely to do well in this area. you have to at roulette intel, microsoft, sony. they have failed to many times. netflix is that have the financial muscle to do it. the bedding should be on apple. ashley: those of the leaders from the tax base. there are contemplate. a lot more damage in netflix. and let's forget, one less thing, they own the internet
access business, they will get your money one way or another. ashley: that's for sure. tracy: is getting very complicated. >> not at all. we are here to figure out. tracy: follow dennis. and speaking of following the money, you can't go anywhere because come down to the closing bell is next. michael dell faces a moment of truth tomorrow over his bagel buyout plan for the pc maker you found. coming up. the money manager whose fund owns open -- of more than 1 million shares. anyone but michael dell will sound off on this high-stakes shareholder vote. will find out if that is next monday as to say. the countdown. don't go anywhere. liz claman is next. we'll be right back. ♪ she knows you like no one else.
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♪ [ indistinct shouting ] [ male announcer ] time and sales dat split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ liz: it is to attack. ebay, intel, all coming up with earnings.
you may own the names or stocks affected by these companies. who is expected to hit it out of the park and how you can prosper. they come back after the edward snowden leak scandal. the clients may surprise you. and remember this? the iconic kids pop in a candidate's first new flavor in 20 years. wait until you hear what it is. "countdown to the closing bell" starts right now. liz: good afternoon, everyone. i am liz claman. it is the last hour of trading. if you have money in the market or a pension plan, 401(k), you are interested in what ben bernanke had to say