tv Markets Now FOX Business June 11, 2013 11:00am-1:01pm EDT
do not. >> they are looking at personal information without a warrant it is a violation. i am not in anybody's camp. i'm in the cab of the constitution. stuart: we are out of time. dagen mcdowell and connell mcshane at lot of time. dagen: never enough time, thank you. if you believe the housing market is going to lead the economy back you are where you connell: we have brought back this great panel of hours, biggest names in american real estate, barbara corcoran, and all so bob massey. this is the team and they are here for the entire hour to bring you the business of real estate on fox business. things worked out last time and will work out again because this is a terrific panel. dagen: barbara is fired up. she is always fired up.
fair to say that. from real-estate but first we want to check stocks, it has been a rough market this morning. nicole petallides is at the stock exchange watching what? nicole: looking forward to bas-rhin and the gain on real estate looking at major market averages of a blows of the day. we were down from top to bottom 145 points but now improving somewhat. i talked to the traders who tells remand -- momentum remains to the upside, fraud and with the 2 point date to the upside and we pull back on concerns about the bank of japan not doing much and basically not keeping that stimulus going and turns to the fed at home to see whether or not they will stop the money printing but in the meantime the trend continues coming all of the lows. bernard: connell: this is the business of real-estate on fox business and we have with us these big names we talked about in the real-estate world that you want to hear from.
dagen: let's see them again. in los angeles, the co-founder of the agency, we go all the way to miami, fla. katrina is co-founder of the campus company and in studio, barbara corcoran of the corcoran group is also on shark tank. and other than this one, "imus in the morning" real-estate attorney bob massey who has joined us from las vegas is in studio with us but let's get right to it, the headline story, you were on with us a month ago, a move up in interest rates. here is where they are right now closing in on that 4% mark according to freddie mac, according to bankread.com, pretty if it's above that level and as we talk about this we will show our examples of what these increased interest rates will cost them. barbara, let's start with you, bad news. >> the interest rates, have to pay more for the same place it is bad news all the you have to remember 4% is not a big
interest rate but people have been spoiled by the cheap rates ended foreshock. connell: that is the move, not the actual interest-rate if you put 4% and say -- from where use it is this something that -- last time we had this special we were wondering as rates go up. they are starting to edge up. >> it is a slight increase, 4% as barbara mentioned is still low. i don't see the thin increasing rates tremendously within the next 12 months. i think they will keep it pretty even keel now and buyers are definitely rushing to take advantage of low interest rates in the florida market before they get too high but rates are relatively low considerably speaking. kent got deadlines. deadline the the best thing in the world for real-estate bark of the damage to make it is a call to american -- call to action marketing, get them while supplies last. you're seeing people act that wreck and interest rates going
up and they do need to go out and buy now when the little more eager to do that. >> fear is the best opportunity and people fear interest rates are going to go up a little bit and right now they are still low. i agree with barbara and katrina, great time to jump in and bought before the creeping up, 4%, 3-7-8, pretty cheap money if you ask me. connell: quick thoughts on the next topic especially if you want to get a thought on this one on interest rates. >> it depends what we are talking about. you have people, it is great to hear what the percentages are but pressure is do they have the ability to buy? you have people who have been affected credit wise for years and will be affected so you put in perspective for example in las vegas and florida you have a lot of hedge funds buying everything so although in fact the interest rates with either,
is their availability for people to buy because they have the sins of the past. i am sorry. next to barbara. dagen: wait to feel the mojo frrm the next bill. on that note the institutional corporate buyers are now reckons turn in this market, realty track instigates institutional of home sales in the first quarter. connell: before bob picks up we go to joline can't who has more reporting from the news room. >> add to the number realty track's 2012 report showing corporate buyers out of 140,000 single-family homes last year alone, there is concern home prices might artificially be inflated because of who is buying those 1 the 9,000 homes making the 3% of total sales from last year. our colleagues at the wall street journal took the story and ran with it and the market reaction was pretty significant.
take a look. investors in lennar and d r horton all shaving off at least 2% off of the stock price. a quick note to bob massey on youu panel, realty track estimates these law -- these wall street buyers account for 5% of sales in arizona, 8% of sales in nevada so far this year. connell: thank you very much, therr it is. dagen: what do you make of that? >> deegan and what they're doing to property. do they buy the rent? >> only two things, they are renting, managing a lot of homes, the other thing is they know homeowners have a lot of disposable income. they haven't made payments for a long time, in fact foreclosures and short sales. they are saying give me 20% down, charge 7% interest on it, or what they do is say we will give you a lease option to buy. non-refundable money. your credit will be good in two years. hang it right there.
sometimes they hope they failed because -- dagen: a lot of time they failed. borderline scam, don't you think? >> i think it is business and homeowners, i'm telling you, the one thing that is for sure, homeowners will never change. they want to own a home and if they have an opportunity they will by no matter what the costs. connell: picking up on the idea i am sure katrina think this too, borderline scam? >> the concern is a lot of people in this position are not the most educated, not the most savvy people in the world, it i will be fine, i can buy this and convert this into a home purchase and many of and don't have the wherewithal, great numbers of these people, it is legal so i shouldn't use the scam, the fact is it is to great advantage of the investor to the liability of the buyer. dagen: i want to get to katrina on the topic of institutional buyers making up a good chunk of the market. you have seen that continue.
certainly some of the properties i looked at in miami, condos in miami have been bought up by the professional investor. >> we are seeing it left and right and we are seeing a lot of institutional buyers come into this market and rent it out, two people who can't afford a home because of the down payment required to get down these days. we also see preconception projects in the florida area, and 50 coming into the market and schering a lot of people but by the same token we have these developers, 50% down, and a lot of hedge fund and institutional buyers buying into the florida market because they see the influx of the international consumer is coming in here as far as a lot of people coming for tax reasons so we are seeing that. i think it is good for the market. dagen: go ahead. >> it is difficult for the consumer to achieve a loan and i
happen to think it is good to allow the consumer to get into a different type of product whether it is through a lease or a lease option or different opportunity, it is business and gives these guys and opportunity to fulfill the american dream. >> tea or point we are seeing a lot of lease options, you bring up a great point and this is the perfect example. even buyers in the luxury market i am seeing a lot of options to buy. connell: next topic, this has been pretty good. dagen: investors are treating it like bonds. got a better yield than what you get on the treasury. connell: speaking the deal that interest rates what about the fed? the word that came up in the last session is back again for some, not ben bernanke. ben bernanke and company starting an exit plan experts telling us what the concern should be for homeowners. dagen: what about bad weather,
from coast to coast since the last real-estate day, tornadoes in oklahoma, one example. we talk with our panel about rebuilding after disaster and what it means for real-estate. ♪ [ cows moo ] [ sizzling ] more rai.. [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars.
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connell: we call this the gee block of real-estate show, we mccullough bubble block as the wall street journal breakfasted briefing, and they highlighted concern you can save the markets and thanks to the central banks not just ours but around world basically maybe every asset class might be overpriced. dagen: that would include
housing. how much should homeowners worry about how overpriced assets are, however priced housing in. i want to start with you because you see in stories multiple bids, 40 bids on one property in san francisco. that busts of bubble like it or not. >> i don't see the bubble i got to be honest with you. i know we are seeing no inventory. that is why people are flocking. of thinking is priced well no matter where it is, whether it is low or high or luxury that multiple bids, just like of inventory, interest rates just a low. i don't see the bubble happening, we see strong year over year sales, q 2 is better than last year, says he. connell: i see some overprice even if we don't use the bubbled world, you are nodding. >> last time i said that, barbara could have stabbed me. dagen: she is going to stab you
with her shoe. >> i don't know if we call it a bobble but a couple things we should talk about. florida is going to change the law and they change, allowing nonjudicial foreclosure is. what that means is they are able to foreclose quicker because the average foreclosure in florida judicially is 900 days. vegas, nev. is changing foreclosures making it easy and in a month a pass a law the governor will sign it. what that only means is this. it won't be like years ago but you are going to see because of what maurice said the inventory will change. we have not homes available, excuse me. compared to observers. that is okay. i am stephen. dagen: it is exactly going to happen exactly where we need it. there's nothing wrong with that. >> nothing wrong with that but when you put the package together for example, new homes in florida and vegas are selling like crazy because developers
are financing the homes themselves and now -- >> in florida we are requiring 50% down to the developers have got in savvier and there are 50 preconception projects in this south florida market so i agree with you. >> 50% down doesn't apply to the rest of america at all. very low inventory, inventory is so low the biggest frustration is tied to finding the right property. prices increase by the same token as they have been for the past 12 months, we may need to get worried but everything will let out and the balance will occur in the market. dagen: i will make a statement, you all agree i think that you have a severe buyer today than you did. talking about it in the break, people are buying, they will be careful that they don't get in over their heads. do you see the euphoria out
there? anybody disagree with me? >> you know what happens? people lose their heads the minute they fall in love with the plays and overbidding like san francisco, 40 bids on any single house. dagen: you have to have that in a broad market. not the individual, you have to have a collection of people. >> with broken hearts who lost the last house makes them go crazy like a dog in heat on the next house. >> an emotional moment. that is exactly what the consumers affected by and why housing is so interested but one of the things i am concerned about is the developers and developers getting greedy and raising prices beyond what the market can handle and that is where i see the difference between not the word bubble occurring in terms of the economy but in terms of a slowdown because again i don't think, a think the consumer is smarter and i don't think they will come up in many cases the developer -- the neck not smart
for the developer ultimately. >> ultimately it is not the sharpest thing. but i maintain -- dagen: during the break. >> keep their place and we will have a nice steady market. connell: move on because we have a bunch -- to development get so far and some other good ones we want to get to coming. dagen: those natural disasters the turned over the housing market, maurice knows all about wildfires out west, katrina can talk about hurricanes in florida. the question is how does this impact sales coming back from one of these disasters? connell: we sent dagen mcdowell to do some house shopping for us at the most expensive property on the market period. dagen: in the country. connell: a look at a luxury end of things, extreme end. the business of real estate continues on fox business. i'm a careful investor.
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the amount of insured losses in the u.s. from natural disasters totaling $50 billion last year. connell: as dagen mcdowell said, talking about the wildfires out west, and katrina and florida, the hurricanes and what have you, your thoughts on the effect of all this? >> most times it is the market negatively but the wrong term affects are short lived. for instance hurricane andrew which i lived through in the south florida markets hurt real-estate recovery because people were forced to rebuild and the liquidity was there because insurance companies were paying for it. it is the same effect as when the war helped cure us from the depression and many times, i am sorry, these hurricanes actually spur economic development and economic growth and we are seeing that in many parts of the nation. dagen: out west when people look
for homes is that a major concern when they come to you? let firing guns? >> there's always a little fear in places like malibu or ventura county. the reality is people come out here for the weather and the lifestyle, a lifestyle driven thing so it is one of the saddest things to actually lose a home to something unexpected. thank got wild fires are not -- do not kill most of the homes. is not one of the major factors like a tornado or a hurricane. connell: you always get these stories that we have seen here with hurricanes and talk about the jersey shore or the shoreline of connecticut rallies on long island, are people going to stop building these and they never do stop building homes. >> you have to be an optimist to buy water from home. a quiet way you sign up for it. that is ridiculous but you know the risk, your in love with the ocean view, in love with being right on the ocean and have all
the sex appeal and status associated with that when you bring over your friends. of course it is hard hit but people have in the back of their month-old time. dagen: will that still happen with what you thought of staten island on the jersey shore? that was not something people were used to, certainly not in the heart of new york city having a vast swath of bone wiped out. >> not in staten island. that has been so hard and i don't think those values will recover for a long time but some houses are selling for higher than they would have. >> there is a practical side of this. we all consumers pay for these losses so loss of an insurance company's pay is geographical where it happens but from a historical perspective all of a end up paying for the loss they have to pay out. from a practical perspective from a consumer perspective the other thing is living in las vegas i am originally from pennsylvania you talk about a bubble, we have hot weather but we have great weather.
these stories about the hurricanes and tornadoes people say why did they rebuild? bbcause that is their home. that is their home. that is where they're generations are and just because of mudslides in los angeles b.c. they build a home and there were tornadoes. this is something that is part of who they are, in its indigenous to where they live. that is what they rebuild, they love where they live. >> lots of jobs are created. >> jobs are big for that. connell: we want to see this home dagen mcdowell visited. the most expensive house on the market, in the country and the panel will have similar homes they will talk to us about so that is coming up. dagen: not so hot house on the inside. we will show you that but more than 50 acres in greenwich, connecticut. you do the math and we want to hear from you and twitter. is now the right time to sell? the latest any maples says more and more homeowners say yes. ♪
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telecom and utilities. those are the areas where ou see green. those are the type of areas that are defensive type place. do not look too deeply into it. the one that you may want to know our financials. they are lagging. back to you. dagen: thank you, nicole. several homes in the u.s. are listed for over $100 billion. none of them are compared to copper beech in greenwich, connecticut. there is a 12 room home that was built in the late 1800s. the whole price tag, over 50 acres and the house, $190 million is that asking.
the most expensive home on the market in the united states. i asked about the extraordinary price tag. >> this is a house that is worth that price. that sounds incredible. if you looked at the homes sold on this ground and you divide the number of acres into the price, you come up with a per acre value. valued somewhere between 5.5 and $9.5 million. you will come up with this incredible number. dagen: to do price it where you did just to get media attention? >> no. we priced it there because that
is what we think it is worth. i have done all the homework. we have come up with the same kind of numbers. actually, a little bit higher than this. we felt that this was a number that could be done and should be done. dagen: what are the property taxes on it? $154,000. the current owners have lived here for 31 years. it is a weekend house. this house, there is no experience to this. if you happen to go out to water, you see a beautiful house here. you have no idea that this is just the beginning of the house. it is incredible. dagen: you need to look at it on
google maps to get a sense of how large it is. dagen: everyone has asked, can you subdivide it. how many lots could you potentially get out of it? >> a pretty easy subdivision here. between ten and 12 lots. it would be almost 4 acres each. the main house would be almost 6 acres. the tennis court area, that side would be four or 5 acres. there is not a fixed one. nobody wanted to lock in what you have to do. dagen: somebody walks into this house, what do you think would be the one thing about it? >> the word unique is overuse.
what is so unique is 50 acres, 45 minutes from new york city in greenwicc, connecticut on the sea. there is not another one like it. dagen: you can see that air-conditioning unit over my shoulder. it does not even have central ac. it is completely modest. it has real basic furniture. the entire upstairs, there is no furniture in it at all. the bathrooms are very old, to say the least. this is what the rooms look like. a beautifully kept home. the family used it as a weekend house. there is like green carpet on
the floor. that is the old wallpaper. this is not what homes of this prize look like when shopping out in l.a. >> no. not even close. you can always replace your home , you can never replace land. i agree with david. he was talking about how on often they come up on the market. that is the incredible opportunity here. we are currently marketing a home that is the old walt disney estate. he built it and lived in it.
it is kind of fun. it is a good opportunity. connell: you saw that 90 million price tag. what about you, katrina? >> the south florida market is doing so well. specifically, the luxury market. the old verse that you mention is one ight now. it is on the market for $75 billion. there are certain aspects that can never be re-created. it is the location that someone is paying for in this type of market. >> i want to tell you about a
really special property. it is the one that i live in. i am going to put it on for 15 million. [ laughter ] dagen: canoe hoodwink somebody? >> no. they are all smart people. here is the thing. it is the largest house on the block. that never sells for what it is worth in any market. that is an old money house. the reason they have been envisioning and the bongo john's is because this is how old money looks. here is the thing -- they want all the bells and whistles to break to their friends. this will either be a tear down or converted into some museum.
dagen: it is sad because it is so beautifully preserved in the inside. i asked the agent if you can rip it down. he said, if you buy it, you can do whatever you want. >> all the properties we looked at, i will tell you what they are worth. somebody wants to write the check, whoever is going to buy the properties are not going to worry about where they will eat tomorrow. dagen: 50 plus acres in the middle of greennich. the newest market movers in real estate. we are on the west coast looking at summer rentals.
, ♪ ♪ lori: i am lori rothman with your fox business brief. waiting for approval from uk regulators. 177 helicopters. the deal is a cost-effective alternative. the army also has options that could boost the total by 2250 aircraft. the investment is part of that in turn at strategy. that is the latest from the fox
connell: eight a check at the markets right now. the data looks pretty good compared to where we were. dagen: we talk volvo, luxury, rising interest rates, natural disasters. speedster on. >> summer rentals are really trendy. there are just some great opportunities to buy right now or to lease some really cool places and live like the stars
do. dagen: that is the story, the stars. they will lease because they do not know when their next paycheck will be coming. >> that happens very often. they have no idea when that next paycheck will be coming. connell: luxury leasing. i like it. how about you, katrina. >> the trend i am seeing is bidding wars. people are getting pretty aggressive when it comes to making bids on the homes that they desire. i am seeing it quite often in the south florida market. >> west harlem. those prices are out pacing
other areas. dagen: are these places developed already? >> gorges mentioned that tab 15-20 little units in it. it is amazing what is going on. connell: it is beautiful up there. >> we have a lot of high rises in vegas. so one could buy 47-$8000. that is moving more than it was before. my biggest concern is, i think we have this trend of renting. we have this trend of people wanting to buy. the question will be what will really happen.
can some of these things repeat? are they looking at things? are they able to separate emotional buy from the practical idea of owning again? dagen: it goes to another trend. rebranding a property. >> they've built all of these amazing high-rise condos. how do you rebrand them and reposition them into the market? i think it is fun for us to be
doing right now. >> these are cash buyers. dagen: you have the financing lined up. connell: we will take that right into our twitter talk. now is the right time to sell. this is off of the fannie mae survey. we will get to that. dagen: drill says, we may see slowdown in home prices. no bubble yet. we will talk about it with our panel next. ♪
♪ connell: the realist real estate story. we have asked her to tweet us throughout the hour. 40% think that now is a good time to sell a home. dagen: maybe it is just the real estate business cycle. connell: may be. jerry tweets bring on the bubbles. hard-working middle-class and poor will bail them out. pray for paycheck to paycheck. >> the buyers are looking for
them. dagen: katrina, can people sell? >> some sellers are absolutely underwater. they do not want to go to the short sale route because they do not want to affect their credit history. if you have enough equity in the home, it is absolutely the time to sell. if you can sell, go ahead and sell. if you cannot, it may make sense to rent your property out. it is a sellers market. katrina brings up people underwater. is that starting to correct itself? >> it affects the boroughs of new york city. you have area particularly in staten island.
everything is selling. the best time to sell will be next year or the year after that or the year after that. if you do not have to sell now, you are crazy. weight a while. you will get sold a year or two from now. >> i do agree with you. i am coming back. [ laughter ] >> i agree with you. i will use vegas as an example. certain areas of vegas, you should keep the home for a longer period of time. i absolutely agree with you. if the inventory -- some sellers are still afraid that something will happen. it will require a disciplined for the sellers who have equity
to stay there to try to sell it later on. connell: have we ever had two of our guests kiss on the air on our show? dagen, will not even let me pat him on the back. [ laughter ] thank you for joining us today. that was fun. great panel. dagen: it was great to see all of you. though boston. tivo party. we hope that they really come back and spank the jets.
connell: weeklong series. new ideas on markets now. keep it here. ♪ ion: how d is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you ed to enjoy all of these years. ♪
dennis: i am dennis kneale and stock and coming back. cheryl: i am cheryl casone. there's a bit of a volatile day on the street but we are coming back from a triple digit losses worried the fed will slow the punch bowl. we have a debate ahead that will surprise you when you think about this. dennis: russia reportedly offering to consider asylum for the n s h a weaker as house of representatives gets briefed on data gathering.
cheryl: new ideas, business innovation, harry shane is making money by challenging the big guys in the shaving game. dennis: tim tebow a patriot, the ceo on how sporting goods stores are cashing in and do it is top of the hour, stocks every 15 minutes, nicole petallides on the floor of the stock exchange, what is the dow doing their? nicole: the vix is higher, the volatility in your index, feeling a little bit of uncertainty in the markets, the dow has come off of its lows of the day, and here we are. and the upside momentum, the sell-off was all little overdone. it is 0.1%. the retail stocks, bank stocks showing weakness. i have got to get to news corp. parent of the fox business
network, the latest of what we have been seeing to advance the media company's plans to split off to a separate publicly traded entity. shareholders have voted to this event and approved the three amendment and will complete the separation of the 28 of june and begin trading as two companies on july 1st. the print media company news corp. and 20th-century fox, on the cable networks and twentieth century fox studios and rupert murdoch talking about this saying this will enable us to respond more rapidly to evolving markets. cheryl: for more on this morning's rebound, asset management c e a d a shaffer is here with liz macdonald and you are saying stocks are in a bubble right now and where are you seeing the bubble? >> revenues are not supporting the stock prices. libya economic numbers. if you take the stock market out
of our economy nothing is doing well to approve the stock market should be at the levels, and i and 8 technicians that technically the market is going up no question, but from the fundamental global macro picture posed the fed balance ine and it sheet it matches. liz: i am not one of those rainbows spotters hoping for the pie in the sky kind of earnings performance but we are at the cleanest time we have ever seen in corporate earnings, valuations' reflecting earnings, cheaper than they were in 2002-2009-1999 trading at 14 times earnings where they were higher than those times and little guy is not back in the markets, banc of america, wells fargo, the little guy down the sideline so if you don't have a little guy in there you don't have the bubbled and is talking about. i agree it will be tough for the markets to let off steam the fed is pulling back especially the bond markets but i don't see it. i see across the board companies
making real profits, not fake accounting profits, problem margins at an all-time high. cheryl: they came out talking about inflation, $20 billion. >> that is ridiculous. they want microphones and tv cameras. what are they talking about? that haven't met their targets, unemployment is above their target, inflation is not here. talk about no inflation that is deflation. not null inflation the deflationary, prices are decreasing in number, copper, major companies a run world, demand is not there, china could be in a slowdown but what liz is talking about is they have done well by cutting their costs, they cut employees and expenses, they cut their overhead. what is the second, the revenue top wine has to continue to grow. if that doesn't grow where else will take that expenses? liz: long-term and different sides. i am really taken with the narrative of the middle-class consumer coming in, new
middle-class consumers in the emerging market. $3 billion more coming on line in china, going to hiring goods, even more, we have more employers hiring right now, the highest since 2008 according to manpower, the second straight quarter of companies hiring. we haven't seen that in a while. liz: 31 countries including greece and spain. liz: that is a macro trend. cheryl: you're in the middle of two strong opinionated women right now, about that. came out with an economic report that there will be performing, japan and the united states, we are going to be leading the global economic recovery. >> and won't denied that. i have not seen the report, cannot comment on it but they dropped interest rates basically to nothing and the world economy still can't move. we are in a deflating economy. they tried everything they can to pump money into the system. japan's experiment never worked and we can clearly see the volatility in the stock market, put your seat belts on, this is
going to get worse. when you open a market 150 points down this morning and come back to even -- liz: i agree with that. >> very dangerous. liz: the thing is average bull market is up 4.2, four years, years in but the thing with the whole bond market story with the fed pulling back, that mr. the back of that most investors are in shorter-term bonds, five year bonds, not in a long-term sensitive bond but 30 bonds though it is up to the fed whether to do it and pull back out with ease and the fourth quarter is earliest we could see that, goldman sachs in 2015-16 when you see the fed pulling out. isaiah make money now. gerri: dan is paying saae your money now. faherty enough, dan shaffer at liz macdonald, thank you very much.
connell: the self-proclaimed source of the nsa leak has been fired by his employer, bose allen hamilton, officials at the fed contractors a, quote, edward was terminated june 10th for violations of the firm's code of ethics and term policy. the topic continues to divide capitol hill and not just along party lines, the nsa director keith alexander to brief the senate until committee later this afternoon on a number of top and officials will brief the entire house on the nsa leaks this evening and joining us from washington former deputy assistant secretary of defense harrison foundation, thanks for being with us. you were in the armed forces with the pentagon for the better part of 30 years but as an american, not a military guy, as an american what bothers you more? that the government is doing this mass of spying stuff or that an employee contractor leak information about it?
>> i have a big concern with individuals deciding they get to choose which laws they follow even though they signed to do the right thing, they have been given extreme positions of trust. i think that is wrong. it is unlawful, federal offense that needs to be addressed. there is concern with the size of this program but on the other hand it has been vetted by not just the executive branch but all three branches of government, running through two administrations though it is bipartisan, multi parts of the government. we need to take a breath, look at it, investigate, decide whether it is as big an issue as some of the commentators are making it. dennis: president obama said congress knew about this, the court system new about this. why does congress need to hold hearings if congress was fully
informed on this thing? >> part of it is because the way the stories have been written, the way they are being portrayed in some cases are conflating different programs, mischaracterizing others. i am not saying this is not an issue. clearly it is. the american public are now speaking saying wait a minute, nice that you guys knew but we didn't know anything about it. clearly we need to have this conversation out in the light of day, but this is not an equivalent of the irs scandal. they are totally different things. that was one branch of government, one part of the executive branch that was out of control. this had a lot of oversight. maybe you will decide they made the wrong call, but it is not a rogue operation. dennis: a lot of people upset that this was a contractor, a private contractor, he had cia experience, you are worried
about these new calls to end private contract thing, private contractors help government a lot. >> when i was a deputy assistant secretary of defense 40% of my work force were contractors. most of them had been former government employees, former military, and other government jobs. these guys are not bad people, not like they outsourced this work and went off to the booz allen hamilton headquarters in mclean, va.. this was going on inside government facilities with government supervisors all around these guys. it is really not quite the scandal as it may seem. dennis: it was a shock to lot of us and i wonder what the american people were with the system. thanks for being with us today. >> my pleasure, thanks for having me. cheryl: we will check customers racking up hundreds of dollars in overdrafts fees, report from
the consumer financial protection bureau, remember them? on average customers pay $225 in fees per year. dennis: maybe you shouldn't bounced checks. would use which banks to avoid high overdraft fees? we are getting some perky comments, tweet us at dennis kneale@cheryl casone@fox business, your nswers coming up.
liz: what a market they we are having. afterrwe've given 140 points this morning a lot of that was blamed on the bank of japan and that is that. you know the market, the dow is down a fraction of a point right now but volatility is the name of the game on a day like today. we saw this yesterday, is it summer or is there more to the
story? let's bring in nicole petallides on the floor of the stock exchange. talk to me about the market, it has been a wild ride. nicole: it is 16 right now. when you talk about the vix and the committee as 12 and 13 that is an indication of the volatility you are talking about and this has become the norm of late over the last couple weeks to see 100 point swings, there were several months we were going and not doing too much trending to the upside and breaking new record highs for not having those volatile swings. now you have more volatility in the market for a couple reasons. the most obvious is we are still above 15,0000and buying on the gifts and a profit and a wild card of the fed and the seasonality as well.
cheryl: the economy around world as a big story. we will see you at the bottom of the hour. dennis: charles payne following up, dark day for the company as the stock gets hard when the ceo is abruptly leaving. charles: moved to first quarter beat the street, same-store sales up 7% almost everything from an execution point of view was phenomenal. christine d. a. leaving the company. ceo resigning. cheryl: and with david, we were both kind of shocked that she walked out. charles: she will stay but she is leaving and came in june of 2008 and was up 300%, stock is up, 51 years old, and a few things to play. and it is too cozy relationship.
a scandal with the pants, this is one instance where if she is being asked to leave by the board and feels uncomfortable it is ridiculous, she has been amazing getting hammered. cheryl: that had retail left as well. and other people managed good the phillies will door in the world. charles: the founders part of the board. and danny, to still a buy, and the target is 87 from 92 and ubs downgraded neutral from buy, and a new level of uncertainty stock is getting hammered away from that, the stock is later on to leave the dust settles and down 16%.
she will be hard to replace the not irreplaceable but still a stupid move by the board, and irreplaceable. >> charles payne. cheryl: turkish riot police, and coming up in the fox news minute. dennis: the co-founder of perry's shaved his here for the new id here is how to challenge big guys in the shaving game. their world currencies are ferrying. clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch minars... plus, their live webinars. i use daily market cmenty to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody.
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>> 21 minutes past the hour your fox news minute. president obama pushing congress to pass the immigration reform bill by the senate by the end of the summer. >> if you are serious and sincere about fixing a broken system, this is the vehicle to do it and now is the time to get it done. >> 14 people in afghanistan had debt and 30 wounded after a homicide bomber struck in front of the country's supreme court near the u.s. embassy, no group is claiming responsibility but yesterday seven taliban insurgents were killed in an
attack on the airport. in turkey riot police fired tear gas and crushed their kids that up by demonstrators occupying a part. the anti-government rally started 12 days ago as non-violent protests against a plan to uproot trees in a city park. the unrest has spread to 70 cities across turkey and that is your fox news minute. cheryl: fox business alert, battling to rethink its demand forecast for 20 years saying it will need 35,000 new jets worth $5 trillion including that number is 8,590, that is that seven 87 dreamliner. let's take you inside the 77 dreamliner. hired by issues and controversy but many companies will benefit from the different components of the aircraft. let's start with the engine of the 77s, the engines of
different manufacturers, ge is one of the nation's as you track this company and track what is happening, the views of lodge itself, boeing has a big stake in manufacturing and safety of the fuselages and if you look at the center italian company, tokyo, even the know that meant the ford fuselages, all of these will be companies you want to stop, if it comes through it is going to be playing itself out over the next year or so loosely that the lending gear of the 787, skipped over the battery and talk about that next week but look at the landing gear, the bridgestone is a name you want to watch, tires, look at the landing gear structure, this is a french company but the airbus coming out of paris, boeing's top competition and show you the kennel, the components of the aircraft and why this matters, boeing is the stocks you want to watch,
anything that happens with the tail, issues with the company going directly and reflects on boeing and another italian company, horizontal stabilizers, that is a piece on the back as you can see of the tales the lot of components of the 77, we will talk about the battery and all those issues next week but boeing is a stock we are watching today on fox business. dennis: and week-long look at companies through innovation. and ecommerce co. bypassing the middle man, and jeff reiter without the shaving cream on his face, thanks for being with us. how can you possibly come out and sell razors with too expensive for less? >> what we try to do is in production, partner with an
amazing 9-year-old german company to make high-quality blades and sell directly to customers on the web site. that enables us to bypass the value chain and try to do that data fair price. dennis: a double as the white dog the retail middleman. and special shaving cream, and how was that 8 blaze for $15 compared to the bears his or price? >> $15 with free shipping less than $2 and the comparable blade for twice that. and the pop quality product image shave with and use for half the price. >> and absolutely --
>> the biggest companies, they're taking us to the cleaners and overcharging it. >> and the retail which is an opportunity to make the best quality products to deliver at a fair price. >> a big chunk of the blaze you buy from gillette or whatever is advertising and marketing. how big is your advertising budget and how does it get noticed? >> we run a lean operation. and we sell direct and don't have to deal with huge corporate overhead and in terms of getting noticed what is important early on is build stronger relationships with customers the do find out about it and try to give them amazing experiences in the product. and have them tell others about it. dennis: how many asset on the web site? >> only three months in the we were blown away by the response
pencil out twice and more so happy with -- dennis: looking for a number of. in you can't tell me more than a million. leave that answer off of the page, you took six people selling wouldn't want that known. and very old feel that good price. cheryl: new ideas, week-long look at innovation, and the president -- changing the movie industry and 12:00 eastern time. you got junk? apparently you have more than ever before. that is a good sign for the u.s. economy. dennis: remember twitter taught? the average paying customer in $25 a year and over in this, i
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movers. i will take you over to game stop. it is up about a .5%. 37.95 at the moment. cheryl: you have heard about the lipstick that are. how about the junk factor? the economy is back. the economy is that based on the amount of junk you are picking up? >> the economy is bad. we are back to pre-2008 levels.
to me, that is good solid growth. cheryl: the more junk that people are getting rid of, they are buying new items. >> the amount of junk in our trucks is related to people renovating, people's spring cleaning, people buying new big-screen tvs, they have boxes to get rid of. appliances, mattresses, i think the weirdest thing we have ever hauled away is as cargo shelves. you get some strange stuff. people are consuming. people are renovating again.
people are investing in businesses. people are dying franchises at record levels. that tells me people are spending dollars. they are investing in small business. cheryl: you spent about $700. >> yes. pursued the dream. cheryl: do you feel like the entrepreneur is back? take a chance. >> i think it is somewhat hip to be an entrepreneur. we are seeing that in record levels.
cheryl: sardines and escargot >> old cars, buddha statues, and old boat. a full truckload would cause you 500-600 bucks. cheryl: that is actually not so bad. thank you very much. good story. dennis: it is tim tebow time in new england. over 7000 tim tebow t-shirts have been sold in the first week after signing. the ceo is here. you see he will go to the patriots. you will place a that.
great ambassador for the nfl brand. he is a great leader. i think people know that rate he is the guy. we are very excited that he is there. it is all over the talk shows. dennis: he gets a whole lot more press. does a player usually have to play a whole lot to get good sales? >> there is something about him.
he is a magnet for the media. dennis: a hard worker. he works incredibly hard. i thought he came to the jets as a good team player. >> he is a professional. you are now playing second fiddle to mark sanchez who is a great quarterback. dennis: sometimes. >> it is tough going from number one to number two. dennis: thank you for being with us. cheryl: the future of cable television. ceo oo the national cable television station will be sitting down with liz claman.
we will be talk to tom rogers. the ceo of tivo. they will be talking about tim tebow. stick around. we will be right back. ♪ we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have e money you need to enjoy all of these years. ♪
shares of coca-cola enterprise is also under pressure. the new york stock exchange has suspended trading. they have sttadily declined since 2008. that is the latest from the fox business work. giving you the power to prosper. ♪ [ male announcer ] you want a hotel room at an amazing price. tonight. download the free hotel tonight app. when we get rooms thatould otherwise go empty, you get the best rates, guaranteed.
the cable business has never been bigger or perhaps more concerned that the landscape is changing. liz: it was called 57 channels of nothing is on. a lot of good quality programming on here at this cable show. it is where all the media bigwigs are trying to crash onto the scene. we have the five here at fox news. doug dynasty people. they were all over the place. they bring in these cable stars and say watch us.
at the same time, there are a lot of little grabby hands coming up from behind. youtube is coming up with brand-new programming. motorola mobility, as well. i want to take you over here. i am just telling you, a lot of people are very interested in what they are trying to launch this summer. it all rests on the shoulders of michael. the president and ceo of the national cable show. here is what he has to say about the future of big cable media. >> cable is the platform of possibilities. as a broad band provider, what is really exciting is what does it mean when those platforms go
together. we are empowering all the innovations that are driving the global internet economy. liz: there is a difference between remodel and tear down. who has more work to do? >> it is both. they both are very dependent on each other's success. it is a model that works for the production of very high quality content. i think their creative. liz: you recently testified before congress. you said that netflix is actually delivering video and distributing video in a more efficient way than the old-school cable guys. what did you really mean by that?
how worried and how quickly do cable operators need to start working to get there faster? >> what we pointed out was that netflix is the largest subscriber in the united states. more than comcast. the point is, there is no innovation and competition that is coming from these places. the netflix interface, netflix innovation is helping companies like comcast. these are the kinds of things that matter. liz: john mccain, the senator
from arizona, is very interested in the television freedom act. people really only pay for the channels that they watch. as a consumer, why are they paying for, i am just going to throw out a name, spike tv? >> one of the challenges in the industry, we are looking for more ways of consumer sentiment. you do not really want the channel. you want two or three shows that you love on that channel. what you love is very different than what i love. you are serving millions of subscribers. liz: you are saying you do not
like john mccain's plan. >> we are looking at it. liz: i need to get you on the big news about sprint softbank's. this came last night. how does this eventually morph? i love your opinion on it. >> i think sprint israel a phenomenal asset. it is a network in a world that needs broadband network. i think the bidding you see is reflective of both companies. liz: in the end, when it comes to content and it comes to the delivery of that content, he wants his kids happy. coming up in the next hour, we are here at discovery
communications. they are launching a 3d channel. we have the president and ceo of discovery communications. the most valuable channel. we will get to the mermaid mock jury. all of that coming up in the next hour. cheryl: thank you very much. looking forward to it. dennis: there is still time for you to get your two cents in on today's twitter talk. dennis: your aunt is coming up next. as we go to break, take a look at some of the winners over on the nasdaq. ♪
cheryl: new data out today. checking account customers racking up thousands of dollars in overdraft fees. dennis: craig scott tweets everyone is hopping on the airline model. cheryl: janet writes, we passed dodd-frank. thanks also lost fees on cards. dennis: 40% have overdraft protection just further content how stupid americans are. cheryl: i do not know if you
agree with the figures. dennis: the biggest things can afford and overdraft problem charge the highest fees. one guy said i do business with a smaller bank. we keep topping how much they can charge. cheryl: the american civil liberties union demanding answers. laura murphy joins adam and lori next. dennis: lou dobbs weighs in as a syndicate that to vote on moving the immigration overhaul forward
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lori and adam. lori: we will take it from here. thank you. yes. hour to do list is very long. >> manpower out with some numbers. lori: lots to talk about. i am lori rothman. >> i am adam shapiro. we have the ceo live for manpower. lori: edwards noted. he is on the run. what this group is doing now to get answers. >> president obama sounding off in the senate bring up. lou dobbs ahead. lori: rightfully firing tear
gas. let's get you updated on the markets as we do every 15 minutes. nicole petallides. nicole: the lowest point of the day was 15,086. there are traders on wall street taking those opportunities to pull back as buying opportunities. the vix, the fear index, is up about 5% today. the bank of japan not doing much. that really turned the eyes back on the u.s. right now the dow is down one tenth of 1%. down 24%.