Skip to main content

tv   MONEY With Melissa Francis  FOX Business  May 12, 2014 2:00pm-3:01pm EDT

2:00 pm
it would have sky deutschland and sky italia. the deal is expected to buy at $14 million. 20th century fox is the parent company of fox business network. with that in mind we'll turn things over to melissa francis. i'm sure one of your focal points, melissa, thanks so much, deirdre. stocks driving higher on wall street. melissa: thanks, deirdre. s&p few points shy of a new intraday first. that is not the only thing rising. we'll tell you why this year's paycheck might be doing more than just barely keeping up with inflation. sharing economy feeling even more generous. how airbnb plans to save its business model by becoming your concierge as well. boone pickens picking up the mic. oil tycoon message for one of the rap world's top dogs. even when they say it's not it is always about money.
2:01 pm
melissa: the dow and s&p are on track to close above their record highs. s&p looking particular good after ending last week in the red. what is behind today's climb? joining me now and our panel, our very own liz macdonald. we have james freeman from the "wall street journal" and fox news's brian kilmeade. why do you think of this market here? why are we rallying? >> earnings, better than expected. give u.s. businesses credit for continuing to eke out profits even when people don't expect it. melissa: you think it is merger mania? >> that and earnings. what is interesting, melissa, stocks dropping like a stick, ones that ipod last fall. we're talking zulily, chegg are still under pressure. melissa: brian do you make sense of this this or what stock market does about economy and what people talk about their
2:02 pm
wages and something else. >> where will i put my money to be safe? real estate, i get a bigger house. what happened to a lot of real estate prices? i don't know that is where you will put your money in the long term. so many people told me, not guys james runs with. that is whole different crowd. >> where do you go. >> give it to mutual fund. go buy a stock because i'm not really sure what else to do. melissa: it is true. stock prices have outrun house values so much. a lot of people still think home is where to put your money and it is just not the truth if you're still stuck in that boat, right, james? what we've seen since the beginning of the recession. >> go back all the way to the 18th century. the return on homes after inflation is about .2% a year. it is terrible. not an investment. it is a thing to shelter you. melissa: liz, anything else? >> i wonder how long we have a run here, right? we have the know the fed will start hiking rates and that is kryptonite to stock market rally.
2:03 pm
they will do that next year. slow, quarter point increases but could have knee-jerk reaction. >> get ready for a raise. you could make more money. a majority of top economists expect wage growth to accelerate this year. it is good news. we haven't seen a lot of it. i'm not sure if i believe it though. james, what do you think? >> terrible first quarter. people blame that on the weather. a lot of people are thinking second quarter will be pretty good. we heard this before. we're still kind of bumping along in a slow economy. but there are signs to be optimistic. melissa: the problem i have they base a lot the fact that unemployment is getting close to 6% and fewer people out there looking for job that will push wages higher bus that 6% number isn't real because it doesn't represent how many people dropped out of the labor force. brian, what do you think? >> that is absolutely true. it was higher in recent months. here's the thing. can't tell us one day the middle class is disappearing and not getting raises. come over this day and we're all
2:04 pm
getting raises and things are getting better. get on the right page. stop with flow charts and bar graphs. it is making me crazy. melissa: brian kilmeade represents what most people in the audience think about business and economics. he is here to tell us that we're all idiots. wages are going up. what are you talking about? what are you talking about about! >> we're not in immaculate recovery. melissa: i like that. >> when you talk about the 800,000 who dropped out, get this! do you see what wall street is saying, why the dropout? because, it is because of expiration of jobless benefits. when you, when you apply for a jobless benefits you have to check off a box saying you're still looking for work. that was illusory. when those jobless benefits went away, lo and behold a huge pop, 800,000 people dropped out. melissa: former section treasury secretary tim geithner releasing
2:05 pm
his book. it caused controversy. what surprised you the most. >> what surprised me tim's feelings? melissa: touchy feeling. haven't read it. was there a lot of quiet crying? >> there was nervousness. i thought it was bizarre when he talked about how he felt better when they were intervening in markets, regulators, politicians. melissa: i don't like that. >> when they weren't, he was nervous feeling inactive. you hate to think a lot of this crisis response was about his -- feeling nervous. >> compulsion to do something. melissa: needing a drink instead of taking reins of the economy. >> when he was running. melissa: much more productive. i go to glass of wine. you think of exercise. i applaud you for this. would you ever pick up this book, brian kilmeade. >> yes i would. melissa: you're an author. >> i see these guys by the coffee machine. how do you read a book and host
2:06 pm
"wall street journal" all day long. some say you tape on fridays. but liz -- >> my spouse did not have the greatest mother's day ever. >> oh. >> same with me but i blame my soccer games and eight hours on the road to princeton from long island, not a good thing to do. can someone build another road in staten island. i will pay with liz's money. why every time timothy geithner to talk, you ask him the time he looks like he saw a car accident? he scared me every time he talks. melissa: you're right about that. >> woodland creature. >> absolutely. melissa: charging huge bucks for overdraft fees and critics slamming banks set up shop inside walmart and taking advantage of customers. the customers say the 30-dollar overdraft fee is way cheaper than pay day loan. they're writing checks, knowing they're bad. knowing they're making it to next day pay and only $30 for that makes a lot of sense and going on in all walmart banks that set up shop inside.
2:07 pm
>> what is really disturbing that the government decided there is sector of the financial system, people who do pay day loans, high interest loans who are just bad people abusing customers and even in the absence of any specific violations they're kind of pressuring this industry to change. and what you see is these things exist for a reason. customers want them. >> in other words, people who skip out onack those overdraft fees. melissa: right. >> or payday loans is astronomically high. yes it is, effective interest rate on these overdraft fees is 300%, if you math it out but the business model is, we're going to hit you with a fee because you could skip out on us. melissa: that is my question. i didn't see that in any of thee research was the idea that these are banks that set up shop inside of walmart. they collect 75% of their fees all come from overdraft charges but are people more likely to then pay them back? i mean in essence they're refilling their bank account with their paycheck because of
2:08 pm
overdraft at bank account, then if they do payday loan and never see them again? >> i think overdraft fees are more likely -- melissa: more likely. seems like more efficient, no. >> keep in mind a lost fees, the government has pushed out, ruled out certain fees. you remember the fight over debit card fees. so the banks, they need to find revenue where they can. and this may be one of those places. >> it's a sketchy area of business, this business model. melissa: this went along with another talker, one in 10 americans no longer carry cash on regular basis? have you heard this? according to a new bank rate report. about half, 49% carry 20 bucks or less. how much money you have in your pocket. >> none. i just have atm. melissa: really? don't carry cash. >> almost every carry cash and now with tolls i don't need cash in the car. this is what it is hurting. people hurting in the streets. so many ties i want to give them a dollar. only have a dollar and they
2:09 pm
don't take atm cards. when i do ask for change i feel like a homeless person. i don't carry cash. >> credit donations in bitcoin? >> could try that. >> are you using plastic because you want points? is that what you're saying? >> no. i feel like there is nothing i can't do without my atm card. melissa: you have a record. that way you know exactly what you spend at end of the month. cash you get change back. it is like a tax. you may or may never use with the cash. it collects on dresser. when you use your credit card you pay with every penny. >> they are honest. >> first billionaire of hip-hop celebrating before that apple deal is officially done. uh-oh. dr. dre's deal for tom brady's 14 -- look at that, 14,000 square foot california megamansion. million dollar listing agent john altman joins us. brian bid on this house. he lost out to dre. >> good to see it again.
2:10 pm
that is the thrown shop that sold me. [laughing] hunting from that height i like it. melissa: two weeks after the fact, l.a. clippers owner donald sterling asks for forgiveness. are you buying it? ♪.
2:11 pm
up. a short word that's a tall order. up your game. up the ante.
2:12 pm
and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again.
2:13 pm
melissa: disgraced clippers owner donald sterling finally offering a mea culpa for racist remarks that could cost him his franchise but his estranged wife made it clear she is not going quietly. shelly sterling is digging in and refusing to give up her share of the clippers without a fight. >> the nba may insist that the team be sold, what would you do then? >> well, that is, i'm fighting for my 50%. >> well there are reports that the nba wants to out of you completely as a team owner. you will fight that decision? >> i will fight that decision. melissa: here now, are the chatwood fund jared levy. we have james freeman and brian kilmeade are back for more.
2:14 pm
it's the story that keeps on giving. >> right. i think it is important for her to know she has absolutely no leg to stand on with 3/4 of the owners decide she will be ousted all owners are divested. they have to sell and get a portion of the proceeds. melissa: she makes a point, i'm wondering if wife of one of the owners said the racial slurs would they out of the husband or leave the husband in. >> great point. melissa: i didn't have anything to do with it. >> interesting argument. who will -- i mean bottom line is right, you have the gentleman who owns the clippers and then you have -- melissa: she owns 50%. she is wife. they're not divorced yet. she owns 50% of the it. why should she have to deal with what she he said? shouldn't he sell his 50 and keep her 50? done. i don't think you disagree with me. go ahead, brian. >> franchise like a burger king or anything else and board of governors rule and therefore she has got to go. i know what she is saying but -- >> big picture it doesn't matter
2:15 pm
of the nba has ruled, donald sterling made kind of an apology over the weekend. i'm not a racist. i made a terrible mistake. i'm here to apologize to ask for forgiveness from everybody i hurt and looks like he read it off a card. he saii i was baited. i don't talk about people. i talk about ideas. i don't talk about people. do you feel better? >> this guy was in complete altered state of reality, i didn't feel at all -- melissa: aren't most millionaires? they doesn't live in reality. people say yes to you and give you what you want and have all this money and every once in a while it comes to bite you. >> i don't think you say about mark cuban and donald trump. he deals with everyday people. is isolated 0-year-old and doesn't like talking to the press. melissa: okay. >> what is known in community not a good guy, not a nice guy. a bit after jerk. maybe what will come out is what lc said. melissa: the other big sports story in the nfl.
2:16 pm
michael sam making history becoming first openly gay player to be selected. his on-camera kiss sparked controversy with the leagues, number one. >> if he is openly gay person and kisses another man, why is anyone surprised? melissa: i think reaction was more telling than anything else. some players came out and saying things on twitter. nfl responds by hitting them in the wallet which this is show about money. so it is interesting to see, can penalizeing them by fining them saying things inappropriate force them to get in line and say this is the direction we're moving in as a team? what are you guys thinking? you're laughing. >> hold on. one area you have, you know, let's, gays okay, let's talk about. okay to kiss, that's fine. find someone voicing their opinion. granted, i think you should love who you want. carry a gun. and do whatever you want and have your own freedoms. i don't think it is right to fine people.
2:17 pm
>> see anything in the contracts can say you would be -- not responding to a particular twitter comment. i haven't read them. i don't think they can completely police free speech on internet with a nfl contract. >> it is really dangerous because, what happens is, player treated out, omg. someone wrote back to him, horrible. talking about the kiss, he wrote back horrible. them in basically detox for emotional acceptance of societal changes. >> people can have those views. melissa: twitter rehab. got to be in twitter rehab. people say all kind of stuff on twitter. we'll start policing twitter? guys on that note, get away from this discussion immediately. from the u.s. to every corner of the globe, money is flying around the world today, starting in china where officials told citizens to get used to slower growth. the country's president spoke of a quote, new normal, far away from the days of runaway economic expansion of the government there says it wants to focus on long-term reform and
2:18 pm
stability. over to romania where count dracula's castle could be yours for undisclosed price. some put the price tag close to5 million. what a deal. transylvania digs were once home to the dreaded vlad the impaler. that attacks 50,000 visitors. that is income. the castle will make a tidy profit and they hope the new tenant will turn it into resort. i'm going. japan where bald man have a place to go and drink away soros on the cheap, they offer a balding discount. hard for works dads whose hair is falling out due to stress and work and fatherhood. groups and customers are encouraged. more show up, the bigger their discount. i don't know what to make of that, so i will let you have it. want a shot with that bacon? one disearlier is going hog-wild combining whiskey with your pork. you have to hear this one.
2:19 pm
wow. plus, welcome to the billionaires club. t. boone pickens rolling out the red carpet for dr. dre and leads right into the 1%. do you ever have too much money? ♪.
2:20 pm
you've reached the age where you know how things work. this is the age of knowing what needs to be ee
2:21 pm
talk to your doctor about viagra. 20 million men already have. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision. to avoid long- term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action. viagra. talk to you doctor.
2:22 pm
melissa: markets in rally mode. eye on.f big winners keep a coleetaldes flo o the new york stock exchange. what is behind this rally, nicole? >> record alert, record alert. we're trending higher bit by bit. people have the optimism of the market and talk about the path of least resistance to be upside even though economic news is somewhat mixed.
2:23 pm
sometimes you get a great report and then you get a weak report. with that said you have accommodative fed which helps things along. we're in record territory. dow, 16,693. so close to 16,700. if were to close around these levels, it would be the third record high, record close of 2014 alone. we've seen plenty of leaders on the dow, names like goldman sachs and united technologies. you do have technology overall as well as industrials leading the way. we've seen a lot of consumer names really hitting new index. that is pulling back today. melissa: nicole, thanks so much. airbnb looking to expand its risky business. home-sharing website telling financial times considering everything booking from dinner reservations to travel plans. is this airbnb's ultimate fight for survival? back liz macdonald and jared levy. we have nyu professor mark brennan. their basic business model sort
2:24 pm
in trouble here. >> this is way to show the states that want to tax them and government that wants to go after them that they are serious, that they are all about cementing their -- melissa: really? >> virtual concierge desk is essentially what they're doing, building out a service that will sell, excuse me, sorry, dinner reservations or other tickets. >> what is wrong with open table, kayak and all these other sites? melissa: it's a bid like liz said to make them seem more legit. we're not just really trying to help people set up brothel overnight or meth den or great article on they outline ad host of horrors people who have give then their house to bnb been subject to. them involve sex. i don't know what that says about our society. a new york comedian rend the out his modest apt and turned out to be giant orgy. next person in oakland, met addict trashed his home and stole his birth certificate.
2:25 pm
who would put your house on airbnb after you read these things. >> that's true. melissa: what do you think, jared. >> they're disrupting the industry in a good way even though they're faltering. maybe you have a security company, insurance company, provide housekeeping services or security services to the bnb customers. think if they do this right and invest a little it about money it could be interesting. i actually like the company. i agree there are some faults there. melissa: very inflated price. mark, what do you think? maybe rather than saying we'll add concierge service and that will make us seem more legit operation, as business professor would you advise to dohat is jared is saying we'll bring on security company and what would you say. >> regardless what jared said i'm waiting for this whole internet thing to blow over. going too long. melissa: undermined all of your credibility. >> one more month we'll be back to normally. meantime i can't get over creepiness factor. my students rent these all the time.
2:26 pm
melissa: do they. >> all the time. liz and i, we wouldn't rent our place out and but rent them from people our age. 20-year-olds renting from 45 year oweds. did they stick a camera. melissa: eww. >> uber you're driving in somebody's car. >> that is lot different. >> i'm happy to drive someone's car. i don't want somebody going through my medicine cabinet and dirty underwear. melissa: i'm not letting my car to uber to go around and pick people up. >> i had people did that people puke in his car. he is happy wit it. this is different market. melissa: wow. all right. moving on -- welcome to the billionaires club. that was the message given to dr. dre from oil tycoon t. boone pickens following news of apple's beats acquisition, it came over twitter no less. pickens, unashamedly told dre is now 1%. he was there before. the tweet was retreat the 100 times. first time he is sliding up,
2:27 pm
seidelling up to hip-hop superstars. previous tweet corrected rapper drake saying it is first billion that is hard to make. not the first million. musician had to assume that before. look how many times it retweeted. like 21,000. >> can't wrap my mind around logic of first billion is harder, i don't understand. >> really is. >> percentages. >> here is the thing. is everybody jumping the gun here? this is not a done deal between beats and apple. melissa: apparently did. re's first deal because he doesn't realize first deal and agree in prince approximately and pop the cork and you agree on terms and sign papers. he jumped gun. i think it is funny boone is tweeting. probably not him with a fantastic publicist and team. it is very funny to make him hip and relevant. huge day for the markets. the dow hitting new intraday record. one sector still not feeling the loaf. alan knuckman says that is about
2:28 pm
to change. the stocks to watch. keeping ice on the road but hands off the wheel. the tough choices for driverless cars and just what happens when they crash. this is crazy. "piles of money" coming up. ♪. we're moving our company to new york state. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones
2:29 pm
where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. is all ready the brand ofstate to disthe year.dnew new york. berkshire hathaway home services. good to know. before those little pieces would get in between my dentures and my gum and it was uncomfortable. [ male announcer ] just a few dabs is clinically proven to seal out more food particles. [ corrine ] super poligrip is part of my life now. to seal out more food particles. all stations come over to mithis is for real this time. step seven point two one two. verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet...
2:30 pm
dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going have to rethink this thing. it's hard to imagin how much we'll need for a retirement that could last 3years or mor so maybe we need to approach things dferently, if we want to be ready for a longer retirement. ♪
2:31 pm
melissa: record territory for the markets today, but is it time to pet big on banks even as the broader markets surge to new highs? before i get your call on bank, what do you think of the new highs today, new record? what do you make of it? >> well, i think that's been long coming. you know, every time we get a selloff, the market moves the measured move on top of the breakout, so i still see upside, about a 6% extension here in the s&p to make those new highs.
2:32 pm
melissa: and what do you think about the financials? what's your call there? >> well, financials are really lagging behind but, obviously, you don't want to fade the banks. that's downright silly in the way they have the access to cash. xlf is right now above the mid point of the 2007 all-time highs and the 2009 employees. we've surged above that. that's a very positive sign, and it looks for further extension. citigroup is down 10% just this year alone, so it's on sale trading between 54 and 46. if it gets above 50, we could see some nice extension to the upsides. from a risk/reward stand point, it hasn't participated. i think it's a good long-term play. >> okay, alan, thanks so much. some major controversy coming to a highway near you. self-driving cars being hailed as the perfect marriage between automobiles and technology, a convenient way to multitask on the road. but are these driverless cars being programmed to target certain vehicles during a crash,
2:33 pm
and which cars are getting marked with a bull's eye? here now is the car coach's jared levy alongside of me. lauren, i mean, it makes sense, but it's frightening. it makes me uncomfortable. algorithms within the car when there's an accident that's about to happen, they have to choose which way to go and make decisions. how does it decide what to hit when it's going to hit more than one thing? >> well, one doesn't want to hit anything at all because the idea is to safely have you clear anything that's around it. but remember, we don't have car-to-car communication, that's coming down the road, and at that point it's going to be even easier for a car to tell another car, hey, i have to swerve to the left, so you move over too. but a conventional older car may be something to consider. think about all the factors involved, the sensors and the information that it's gathered into its cpus. there's a lot of ethics involved, but i think in reality there's a lot of logic that needs to be addressed.
2:34 pm
melissa: wire did a breakdown on this, and they raised some interesting ideas. when it has to decide, you know, does can it hit a larger vehicle, does it hit a motorcycle, does it target the lighter vehicle? you know, it's deciding in which scenario do people get less hurt, but i'm wondering, like, you know, if it's based on weight, how does it know if it's a pedestrian? it seems like there's a lot of room for error when it's trying to calculate what's going to do the least damage if damage is going to be done? what about that, lauren? >> if you see a pedestrian in a crosswalk, it's going to address it and stop as quickly as possible, quicker than you and i would be able to react. and that's one of a the most important -- one of the most important things. the idea is to avoid a situation whether it be a deer that jumps in the road or a person who makes a bad choice next to you. so all the accident avoidance that's already in place today would actually help you be safer in the car. obviously, it's not targeting. this is not military grade,
2:35 pm
like, hunting down another car to hit of choices. so that's something that needs to be -- melissa: jared, real quick, what do you think? >> for those of us in the street that see these cars. >> i think it's a scary thing. also think about the insurance repercussions, right? if your car steers you into somebody, are you at fault? melissa: great point. we're going to leave it there. new research says california's not prepared for a catastrophic earthquake that could kill thousands. fox news' will carr is in los angeles with more on this one. will, this is a disturbing story. >> reporter: that's right, melissa. and experts say that l.a. is woefully unprepared for an earthquake with a magnitude 7.5 or greater. in fact, they say if that quake hit tomorrow, it could cost lives, buildings and billions of dollars. >> the earthquake's inevitable. only question's when. >> reporter: and if the big one hits tomorrow, experts say californians are woefully unprepared. >> it is a misperception to believe that the federal government will come in and make
2:36 pm
everything great again. >> reporter: glenn pomeroy with the california earth quake authority says 90% of homeowners do not have everett quake insurance due to high rates and the fact there hasn't been a def stating quick since 1994. >> what damage would it do? it would be a big economic impact. >> we need to protect our most critical infrastructure. >> reporter: dr. lucy jones says a major earthquake would damage half the buildings in los angeles. >> what we have not focused on is economic recovery. and although our buildings probably won't kill people, they will probably not be usable. >> reporter: adding to frustration, cal tech has developed an early warning system that could alert residents up to 45 seconds before the big one hits. >> earthquake, earthquake! >> reporter: dr. jones says the warning system could be up and running across the west coast within two years, but so far neither state nor federal officials want to foot the annual $16 million bill.
2:37 pm
>> mexico city invested after 10,000 people died in the earthquake. japan invested after 6,000 died in the kobe earthquake, and i hope we can be the country that goes to the system before we kill everybody. >> reporter: dr. jones says just a couple of seconds of warning could save lives, it could stop trains in the area and, melissa, could even allow surgeons to pull the knives out of patients during the middle of surgery. melissa: wow. all right, thank you so much for that report. and blizzard lovers, be ware. business leaders preparing for the worst when it comes to federal minimum wage hikes. we're going to speak to a dairy queen franchise owner who says those calling for a raise don't quite understand what it's really going to cost you. at the end of the day, it's all about "money." ♪ ♪ ♪
2:38 pm
[ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees.
2:39 pm
♪ my mom works at ge. ♪ melissa: i'm melissa francis with your fx business brief. the deal would undervalue the company. the botox maker also expressed concern over valiant's business model saying that it's, quote, unsustainable. hill she brands has scored a $6.6 billion deal to buy pinnacle foods. the acquisition will add a wider array of products which already includes ballpark hot dogs and
2:40 pm
jimmy dean sausages. and rejoining the nasdaq after three years away, she will be coming in as president of global solutions and is said to be the leading candidate to eventually take over as ceo. freeman was recently the chief financial officer at carlyle group. and that is the latest from the fox business network, giving you the power to prosper. ♪ capitato make it happen? that makes it real?
2:41 pm
what's a vision without the expertise to execute it... and the financing to make it grow? whatever your goal, it can change more than your business. whatever your goal, it can change e future. that's wh at barclays, our ambition is to alys realize yours.
2:42 pm
melissa: business owners are ramping up s to prevent a nationwide minimum wage hike they say could be detrimental to jobs as president obama calls for a hike to $10.10 an hour. businesses that already pay more than the required $7.25 are concerned about the impact on customers and their work force. robert mayfield is a dairy queen franchise owner in texas. robert, thanks for joining us. you own five dairy queens, you have one burger wallys in texas. you already pay your workers a starting wage of $10 an hour, so it seems like this would have no impact on you, you're against it? is. >> oh, yeah. what would happen is if the minimum wage was to go up to $10, you know, we'd have to raise our rates to continue to attract the best people that we're doing now. it's not in a vacuum at all. we don't, we don't start people at $10 an hour because we're nice guys, we do it because
2:43 pm
that's the labor market, and we have to do that to get the best people. melissa: so what do you think you would have to change your starting wage to if the minimum became $10.10, what would it be for you? >> well, just as a guess to get the same quality people we're getting now, probably like maybe $12 an hour, something like that. melissa: so what would you do with that? because a lot of people say that folks line you, you own five dairy queens, you own one burger wallys, you must be loaded, you must be rolling in it. you could afford to do this. what do you say to people who say that? >> i wish i was rolling in it. then it wouldn't be a problem. no, our costs continue to go up. and, certainly, what'll happen is inflation will happen. if they were to raise the minimum wage like they have in the past and it always has happened, my costs go up. people that sell me hamburgers have to raise meat prices. gosh, produce, even electricity, everything goes up. inflation will happen. melissa: so, yeah, what would you do in response to that?
2:44 pm
u-mass amherst says you would see a 20% increase in the price of food. do you think you would make the menu prices go up, would you hire fewer people? how would you absorb the cost? >> well, first thing, you'd certainly have to raise the prices, or you just couldn't stay in business. i'm not sure what the breaking point is for customers to not be able to afford to eat there anymore, but if our costs get pushed up from below, we've got no choice. and what that certainly will do, of course, it already has, when minimum wage goes up, it does eliminate jobs. one of the most obvious ones that people may or may not -- probably notice it, you remember when you used to go into a fast food restaurant and somebody would hand you the drink? now almost all of the fast food restaurants are self-serve drinks in the dining room. that's thousands of jobs that are not even there anymore. melissa: you're going to automate more and more. the argument that folks on the other side if you pay your workers more, then they have more money to buy at places like
2:45 pm
your shop. do you think that's true? because the people around you are making more money? >> well, no, and the reason would be because inflation's going to go up for those poor people. they say they're trying to help. because my bug burgers will go up, and they'll have to pay more for burgers, just, gosh, everything up and down the line. melissa: yeah. >> because minimum wage applies to everybody. it doesn't care what the labor market is or isn't. melissa: robert, thank you for coming on. we appreciate your view from the front lines. i hope you'll come back to the show. >> thank you. melissa: thank you. "countdown to the closing bell" is up next. will it be a record setting day on wall street? liz claman is here to take us through the next hour. what do you have coming up? is. liz: we will be all over the markets watching every tick to see if we get that record close and new highs for a lot of the indices, so it's a great day for stocks, but what about for businesses? an in-studio, live interview with the secretary of labor, tom perez. he is going to be in the building with us here, sitting to talk about what creates the
2:46 pm
most fertile environment for business creation. which states are doing it, right? by the way, it might not have a lot to do with tax policy per state because new york tends to be a state that actually discuss very well when it comes to retaining businesses. and speaking of businesses, have you heard of blue apron? we are profiling this superhot atmosphere for start-ups. and we've got the ceo and founder of this company that, basically, is a very interesting ikea for foods. they send you meal kits, and you cook it. you follow the high-end rest fees, and they give you all the ingredients. we're going to talking to the ceo, $50 million. melissa: wow, look forward to it. we're trusting all the moms out there had a good mother's day. unless your family used amazon's gift-giving ideas. we know how that works out. the marketing campaign that thinks we're all 1950s housewives. you can never have too much money. ♪ ♪
2:47 pm
(mother vo) when i was pregnant... i got more advice than i knew what to do with. what i needed was information i could trust on how to take care of me and my baby. luckily, unitedhealthcare has a simple program that helps moms stay on track with their doctors and get the right care and guidance-before and after the baby is born. simple is good right now. (anncr vo) innovations that work for you. that's health in numbers. unitedhealthcare.
2:48 pm
2:49 pm
2:50 pm
♪ ♪ melissa: a.son and the -- amazon and the mother of all bad ideas. the company adv a few quesonab gifsuggtions this mother's day. here now my favorite marketing maven. bruce, i pity the poor husband that took this advice on amazon. they had for fun-loving moms, they had the waffle maker which was not bad, but the really bad one was for tech-loving moms. the high-tech homemaker, and they had a vacuum. not only was it a vacuum, it was a $500 vacuum. i would literally kill my husband if he had any part of a gift that involved a $500 vacuum. i would kiss the kids anyway, but you know who would be in the doghouse that night.
2:51 pm
bruce, help amazon out. >> well, i will, but i feel guilty just sitting here. i had nothing to do with this, and somehow it makes me feel like i did something wrong. it's quite simple, they use an algorithm. the algorithm figured out what did people buy, and that's how they figured it out. melissa: there's no way that an algorithm t t women that in the pants. ever think that any hard working mom would want a vacuum cleaner, a $500 vacuum cleaner for mother's day. >> want has nothing to do with it. mel health really? because it's -- melissa: really? because it's mother's day, and i want what i want. >> not according to the algorithm. melissa: well, i will be very interested to see on their next earnings call just how all this nonsense worked out for them. in the meantime, just call them generation salad. a new report finds the rising generation will want more fresh foods and salad. do you buy any of this?
2:52 pm
i was literally chasing my 7-year-old around the living room last night with a piece of lettuce trying to get him to eat it. there's no way -- taos a true story -- that's a true story. there's no way the rising generation wants kale. bruce, help me out. >> my 20-year-old is a vegan and has been a vegetarian since she was 8. melissa: aren't you perfect? >> no, no, it's her. i had nothing to do with it. but the point is i think what you're finding is the people who are vocal about what they eat and what they care about are saying that. my daughter talks about it, and she's proud of it. she puts it online. so if you're aggregating information, that's what you're picking up. however, to your point, go chase your 7-year-old, go take your 12-year-old to a vegan restaurant, and what i think you're going to find out is that -- pale. melissa: yeah. >> or maybe we borrow your daughter as a babysitter. that's another idea. going hog wild, let's talk about this, the templeton rye distillery is looking to make sure its pigs have that refined whiskey flavor.
2:53 pm
the pigs are sipping the booze, their feed includes dried distillery grain, so i guess it ends up being whiskey-flavored bacon. peta's readied to call us about this one. >> i was having bacon and eggs this morning, and i was thinking, you know what i need? a shot of whiskey. here's the problem, whiskey flavored doesn't sound like fruit-flavored. but here, instead if they called it whiskey-fed pigs like corn-fed beef or grass-fed beef, we would, a, believe it, b, we would think more of it and pay more for it and, c, think the pigs had a good time before. melissa: okay. yeah, that's true. go work on that vacuum problem, bruce. thank you. all right, need a mote with that -- moot with that mansion? dr. dre buying himself some new digs from tom brady and giselle. who better to talk to than josh altman? at the end of the day, it is all about "money."
2:54 pm
♪ ♪ we're moving our company to new york state. the numbers are impressive. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones where businesses pay no taxes for ten years. become the next business to discover the new new york. [ male announcer ] see if your business qualifies. ♪ ♪
2:55 pm
♪ [ tires screech ] chewley's finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. get the most extensive charting wherever you are with the mobile trader app from td ameritrade.
2:56 pm
2:57 pm
melissa: from straight out of compton to straight out of brentwood, dr. dre is dropping $40 million on a palatial los angeles estate once owned by mr. and mrs. tom brady. dr. dre expected to come into some money when he finalizes that deal with apple to buy beats. josh altman is joining me, and back in studio is mark brennan. josh, thank you so much for joining us. i remember when tom and giselle were building this lovely home that's perfect for any sort of newlywed couple with maybe one child because it's so tiny and quaint and cozy. they spent about $11 million on the property, right? and about $30 million to build? is it -- go ahead. >> yeah. they spent $11 million just on the dirt. beautiful area in brentwood country estates.
2:58 pm
i've got to tell you, melissa, i love this house. this is one of my favorite houses. melissa: i'm sure. >> the finishes are phenomenal, the area is fantastic, and it's worth every penny. melissa: however, they were asking $50 million, and we have just confirmed here, our own cheryl casone, that they only got $40 million for it. so they actually lost money on this. i mean, if they put $30 million in and they paid $11 million for the dirt, what does it say about the state of the l.a. real estate market, josh? [laughter] >> well, the l.a. real estate market's on fire. this is a new record for that community, so everybody including all the agents in town are excited about it. and at the end of the day, i think tom and giselle will still be able to eat. melissa: yes. it has six bedrooms, a state of the art gym, a water fall and even a moat. what do you think of what this says about real estate? >> i think at $7 million a bedroom, it's a steal. [laughter] also the two most important
2:59 pm
things about this house are the moat which you're going to need to get the occupy wall street people away and the infinity fool which he'll need to put his mortgage in. the bubble is back. melissa: josh, what do you think of dre as a risk here? the deal has not been signed, and he was a loaded guy before, but if he doesn't sell his company for $3.2 billion, do you think he can afford a $40 million home? >> what people don't know is dr. dre is very savvy when it comes to real estate. he has other properties in l.a., including in malibu and another $30 million property. i think he'll be fine. it's beautiful, his neighbor is arnold schwarzenegger which is always a plus for security reasons, and it's very rare to find something in there. melissa: he must have an enormous family or he's inviting everyone in the world to come live with him. josh, thank you. so. mark, thank you. that is all we have for you.
3:00 pm
i hope you are making money today. the market's on fire, and who better to help you through the finish than liz claman? countdown starts right now. ♪ ♪ liz: the dow hitting another intraday high. how long will the bulls stay in charge? does the success of your business and eventually the economy in your portfolio depend on where you live? we look at the cities with the best records, and we'll can ask labor secretary thomas perez the secret to repeating those results nationwide. he's live in studio. as the world seems to be catching start-up fever, a home cooked meal without the hassle of shopping and measuring out all those ingredients seems to be doing it for blue apron. yes, they do it all, and investors are impressed with its recipe for success. matt salzburg, the founder and ceo, how he's changing the way we eat at home. and the rise of the drones. a new flying camera unveiled this week takes drone technology to


info Stream Only

Uploaded by TV Archive on