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tv   After the Bell  FOX Business  May 13, 2014 4:00pm-5:01pm EDT

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[closing bell ringing] they are loving it. liz: here we go with the bells ringing on wall street. let's look and see how stocks finish up. is it a record for the s&p? we actually won't know for a couple minutes. right now with a gain of half a point, sure looks like it. dow jones industrials, up 19 points. today it was nasdaq and russell that were struggling again, overall very thin volume. not a lot of conviction behind this rally. david: remember, how much they added on yesterday. it was up over 2%. huge gain in the russell. they still haven't lost all gains from yesterday even though down day today. front page u.s. headlines. liz mentioned sales barry rising. commerce department says they only increased .1%. the data raising new doubts about an acceleration of economic growth in the second quarter. liz: american households racking up an additional $129 billion of debt in the first quarter, mainly because of home loans. the federal reserve said it was
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30 consecutive increase of household quarterly debt. david: google stock unchanged after a legal set back for the tech giant in europe. individuals can ask google to remove personal information from search engines. liz: boeing rival airbus first quarter net profit almost doubled from a year ago to $604 million. the world's second largest plane maker cut the cost of building its a 380 super-jumbo jet. david: pfizer is expected to sweeten its offer as soon as this week. liz: shares of botox maker allergan are higher after valeant pharmaceuticals said you know what? we're not listening to you. lala. allergan says stay away. but they want to stay in. of the allergan formerly
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rejected valeant's bid, at 46 billion. "after the bell" starts right now. david: let's get right to today's market action. we have tim courtney, essential wealth advisors chief investment officer who says investors should be looking at international invests for their portfolio. craig hodge, hodges small-cap fund portfolio manager warning investors not to be too aggressive in stocks, to keep some cash on hand. larry shover from the pits of cme. larry, i want to start with you. when i talk to nicole, think about what is happening with rates. rates are going down on five-year, 10-year, 30-year, they're going down. is that a problem for treasurys? are traders worried that money is moving into treasurys? >> i mean there is something that traders are worried about that there might be something lurking underneath the surface of why rates continue to to
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lower. however, we do have to keep in mind that rates in europe are going lower as well. so really, more of an arbitrage trade than anything else. consider the fact that ireland's 10-year yield is about equal to ours. you look at spain, their 10-year yield is only 30 basis points higher than ours. who would have ever thought that a few years ago, in 2011, when the rates were up 7% plus? that said, it does seem like arbitrage trade but traders are worried about it on the backburner, knowing it could be growth or something else. liz: traders are always worried. they're always worried about something rightly so. >> yes. >> see a little bit of anxiety there reflected in the 10-year yield going down today and prices of bonds going up, let me bring in craig hodges. craig, there is some optimism. again it mixed with anxiety. where do you see the mixture landing? cuts recipe taste good once it comes out of the oven? >> anytime you see the type of
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move we saw last year, 30% plus in the markets you expect some giveback. it has been impressive to me to see the market go sideways. the market is still very underowned by individual investors, lowest on record. so that creates opportunities. this is the most unusual market i have ever seen in my 30 years in that it is correcting the excesses without affecting the market as a whole. i think that is very healthy. and here at the hodges fund as a stock-picker you know i think we're setting up a nice base for the next leg. whether that is six months or a year i'm not sure. i like action. >> craig hasn't seen anything in 30 years like this but you go back and you have seen certain cycles repeat themselves. the late sir john templeton, bull markets are born on pessimism. grow on skepticism, mature on optimism and die on euphoria. are we near anywhere of those
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points. >> yeah. i don't think so and i think it goes back to what you were talking about with interest rates. interest rates are stuck. that 10-year treasury is yielding 2 1/2%. it has moved a little bit lower recently and as an alternative investment, as the rates go lower and lower that is less attractive alternative to investment like stocks that are productive. and so, unlike what we saw in 2000 when markets looked really expensive, you could go out and buy a 10-year treasury at that time yielding 6%. if you're selling stocks today, your choices are to go into bond, yielding around 2% or cash, yielding less than one. and those just aren't viable alternatives. if interest rates were much higher, we would be concerned that stocks may, may have a greater chance of going through a negative period or a large negative period but at this point, stocks still look attractive based on alternatives.
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liz: i think, larry shover, he is absolutely right. tim's on the money. there are certain things you have to look at. doesn't look like bubble trouble at this moment, at least in some areas yet people are still saying correction, correction. we could pull any tape from any week over the past three years and you'd have some naysayer out there, it is important to always have some skepticism, but come on. bonds are not doing anything, nor is gold. larry. >> yeah. i mean, i'm sorry, you're exactly right. there are naysayers everywhere. i was probably one of them about a year-and-a-half two years ago. but that said, valuations are still relatively cheap. and it is all about relativism. compared to corporate bonds, government bonds, the stock market makes a lot of sense. we understand that china is having difficulty but it is growing. it is growing from a higher base. europe is doing a great job. they have a lot more going on but the periphery is healing. u.s., i know our gdp number that
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came out last month was horrible but overall we are growing. yes, can we consolidate for a while? absolutely and we should consolidate. it doesn't mean we need to have a correction. i still don't think we're going to have one. david: but the question is how bullish you are in this market and which stocks related to how bullish you are. craig you have bullish stocks like eagle materials which is into concrete and cement that require growth, certainly growth more than .1% which we're growing at right now, correct? >> correct. like i mentioned earlier the hodges fund we're looking for specific industries that have really high barriers of entry. the cement business is one of those, the wallboard business being the same. we like airlines, railroads, very high barriers of entry in those businesses. so in this market you can find growth areas without -- david: let me push back a little. eagan bell materials, once again, cement, it relies, makes wallboards, makes stuff that
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require a lot more growth than we're seeing now. when do you start to get worried? if we see another quarter of .1% growth i think you would be ought of stocks like eagle. >> more than that it is hard to predict when it will grow. the pricing trend we're able to identify on a like a biweekly basis and so the pricing is holding up. in fact in the wallboard business you will see a big price increase january 1st. and when you see industries like that you know the pricing power is good. you know demand is coming. it is just a matter of time. when you can buy things at eight and 10 and 12 times earnings we don't feel like there is lot of risk in those situations. >> well there is certainly risk when you play video games at least on the screen. take two interactive coming out with numbers right now. adam, let's get them. >> it's a beat and a beat liz, you will like this. 21 cents is adjusted earnings per share. the street was expecting 10 cents on revenue that really beats. $233 million.
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the street was expecting 202.5 million in the fourth quarter. liz. liz: "grand theft auto" is one of their big games. they have done very, very well with video. they also have a bunch of shows as well. it is up fronts. good numbers for take-two interactive. pulling back just a moment. this could moderate. we always know sometimes there are knee-jerk reactions. tim, let me get you the last word here. if you're looking at their 6 youryour favorite names do they all have a common thread? we can put them up on the screen. you like dfa. invest coequally weighted. vanguard short term investment grade. different ways to play the markets. >> yeah. in both of those cases we like to buy companies trading at discounts to the broader market based on price to book. we're looking buying international stocks trading more can cheaply than their peers. international stocks relative to the u.s. stocks look at take tiff because they're 30% lower priced than comparable u.s. companies. in the united states we did have
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a great year last year but there is still good pricing out there to be found. if you buy broadly diversified fund that is ited it towards value, towards owning less expensive companies those should still have attractive expected returns moving forward. david: tim courtney, craig hodges, larry shover, we'll see you in a couple minutes when the s&p futures close. gentlemen, thank you very much. appreciate it. >> thank you. david: it is not your average coup cup of joe. its is the rolls-royce of cop fee. it could be in for a bumpy ride as prices rise and demand. what does it mean for the company? house does it keep the profit coming? we'll talk to chairman eli in a fox business exclusive. liz: i love that coffee. sparkling flavor of water is now the hottest area in the industry. that is putting pressure on soda market falling flat. we're talking to the man behind the fastest growing beverage
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brand in the u.s. sparkling ice. have you tried this? a lot of people are. they are dominating the category. how coke and pepsi are starting to watch out. david: major broadcasters pitching new shows to advertisers that is the infronts week. that is this week but are advertisers desserting networks for online advertising -- desserting. liz: what do you think? do you watch traditional tv anymore. do you get traditional content from streaming services. tweet us @fbnatb. still using cable like david and me? your answers coming up. ♪. [ male announcer ] what if a small company
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it's about people. we are volvo of sweden. 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.
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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. ♪ david: online retailers zulily has been under some pressure lately but may finally be seeing some relief. liz: let's head to nicole petallides on the floor of the new york stock exchange. nicole? >> we've been watching zulily dave and liz, so closely and for a few reasons. they came in with numbers. saw the stock dropping today. got a little bit of a pop. up close to 5%. but tomorrow, tomorrow is the big day for zulily. that is the day where you have expiration lockup. that expires. that means, that now, 180 days later that insiders, executives,
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everybody who was involved in that ipo is able to sell. so, or at least to a certain extent, right? that's what we're watching for. you may remember we had lock-up expiration occur last week for twitter and the last day, twitter was down over 1%. i'm not comparing the two. i am not saying tomorrow we'll see a lot of selling on zulily. however one chance here, the first chance that people get to sell. we'll see whether or not they in fact choose to do so. liz: david: nicole, thank you very much. liz: we head back to larry shover from the cme. eking out a little bit of a gain for another record. >> unbelievable we're in record territory. the whole floor has been a ghost town. i'll tell you, it is fear. all these excuses, all these reasons why we can't rally continue to surface. the price action people are worried about. how much longer than the s&p 500 and russell 2000 diverge.
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we already talked about interest rates. they need to go higher. will china fall under a mountain load of debt? our valuations, gdp? the list goes on and on. what this tells me most people are definitely wrong about this something could be lurking but calls the fact you need to keep a balanced mind, a balanced portfolio on your position and not get spooked out of the position. david: climbing wall of worry. it happened before. thanks, larry. >> yep. david: major networks seek ad dollars during the industry's annual up fronts where they make commitments to buy ads on tv shows. which network is expected to come out on top. liz: the one who has shows that look pretty buzzsy as they say in the industry. we have a market analyst living and breathing the stuff. nbc was yesterday. we have fox today. listen, looking at all of the lists here what looks good to you right now? >> well, first of all let me
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just say, first of all thanks for having me. liz: sure. >> this week the up-front presentations are just this week in new york. it is just the fluff and previews of what's to come. the networks will trot out, you know, chris of the shows that worked last year. they're going to show a lot of previews from pilots they think will work this year. a lot of cocktail parties, just schmoozing with the actors stuff like that. the real negotiations don't begin until next week and which probably go the next four or five weeks ago. david: let me pull back a little bit, david, and talk about online advertising taking away what some of the networks have. i notice cbs came out with earnings last week. of course they didn't have the super bowl this year. that is one reason their revenue was down year-over-year but they're losing advertising revenue. companies like verizon, for example. they're shifting 10% of their advertising budget to online away from tv networks. is, i hate to say it, is this a dying medium? >> i don't think so, at least
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not anytime soon, not, at least within the next decade. if you look at bifurcation of media away from broadcast and into cable and into online, it has been happening for the last 20 years. 20 years ago the overall viewershipship statistics had cable capturing 35% share. broad was more like 65% share. now the two lines is upon like this. they have gone in the inverse of each other. at the same time though broadcast is still best way to reach a mass audience. live events like masters, whatever, the u.s. open, the grammys, football, nfl football, that is the best way to reach a live audience and that will command premium cpm and advertisers are still willing to pay for that. liz: it is still a pie over all when it comes to advertising. it is $9 billion pie they're expected to spend in the up-fronts. nbc new shows, they have names like "state after affairs."
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mysteries of laura. bad judge, mary me. fox has new shows coming out of the those are nbc's. got that many empire. red ban society. cbs, stalker. i want to see that. madam secretary, the odd couple, "ncis" new orleans. david: they have a new "ncis." liz: colon. david: how many do they have? liz: you knew there would be a show called selfie at some point, didn't you. a buzz about a particular network is the question? >> you guys bring up a good point. look, the up-front is virtually the same every year. there will be a couple series have a lot of hype going into week like this that will bomb, they will be failed, canceled after two or three episodes. there will be series that will hit you may have never heard of and have no buzz whatsoever. that's why we like cbs. cbs has the most stable, catalyst-rich asked will returning shows that, series
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that always beat their ratings guaranties. so any new show that airs on that network you know it has to be a good show pause the production companies are struggling to get that show on that network. david: getting back to my first point about cbs, look the way it diversified itself to take advantage of the way ad dollars are going now. they have 26.6% of the value of the company sharewise is actually in their cable networks. a little less in cbs and cw network. >> yeah. i mean if you go back to the, call it the trough of crisis from 2008, if you can believe it, cbs was trading $3 a share. $3 a share. david: wow. >> i believe, correct me if i'm wrong, i believe it is the top-performing name in the s&p 500 since the trough of the crisis where the s&p went down to55. so the reason for that? back then advertising, was composed roughly of around 70% of the income state. now it less than 50% of the
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income statement. david: diversification for individual companies and as we as individual investors. liz: hey, david. >> there you go. you heard it right here. you heard it right here. liz: people don't know the system and how it works. you have got networks and production houses that put together these thighs shows. which production houses fleet of foot when it comes to positioning at this point as far as investment is concerned? >> i would say it is lions gate. they are platform agnostic. they don't run networks. networks are essentially the middlemen. the names will get highest multiple eventually by the equity markets are names that actually produce the shows. lions gate i believe has 30 shows on the area on 22 different networks. they're platform agnostic. they're sellers to anybody as opposed to most of the networks sell to themselves. we like companies like that. lions gate has 30 shows on the air on 22 different networks. david: it also has "hunger games," liz, best movie ever to
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have been made. i love "the hunger games" series. i can't wait. david, great stuff. david miller, topeka capital markets. great to see you. >> my pleasure. thanks, guys. david: i can't wait. i absolutely can't wait. i would pay half a year's salary to sieve that in advance. liz: i'm a godzilla girl. controversy over high frequency trading, yes i am, over the michael lewis's book "flash boys," traveled to washington. they grappled with the assertion that markets are rigged. david: i can't believe they will allow that to move legislation. call this a case of bottle shock. we're not talking about movie of that name but a turning point in the longstanding rivalry between the u.s. and france over vino, wine. liz: one. most prestigious addresses in manhattan but its owner, billionaire former hedge fund titan is having a tough time selling that luxury apartment
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even though he cut millions off the asking price. find out more coming up. ♪. all stations come over to mission a for a final go.
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liz: high frequency trading in the spotlight once again, this time on capitol hill with snores digging into the impact on the million dollar derivatives market -- senators. david: we have cme group executive chairman and friend of this station terry duffy. rich edson live from d.c. with the details. >> rich, while regulators, prosecutors and congress try to figure out how or if to address
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high frequency trading. the senate ag committee, the latest to hold open examination into the issue after michael lewis detrade and vilified high frequency trading in his latest book. mit professor and former cftc economist told the panel that small number of high frequency trading firms dominate the market and earn persistent returns. he suggested that the government require the firms register with regulators and subject them to greater scrutiny. cftc chairman testifiry duffy said high frequency trading help price discovery and what is common on capitol hill that markets are not rigged. >> everyone sees its to race to 13 other exchanges in the offer it and offer a penny price higher that would be literally impossible in our world the way the market structure handles it. >> duffy warned washington painting equity and commodity
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markets with the same broad brush. still investigations into high frequency trading continue. republican commissionter for primary regulator cftc, says the agency is considering proposals for a new rule on high frequency trading. back to you. liz: thank you, rich edson. david: thanks, rich. time for a quick speed read of some of the day's other headlines, five stories in a minute of the first up, so far this year the world's 100 largest hedge funds managed $1.5 trillion in total. this is up 14% from the same period last year. motorola, releasing a new android phone called, the moto e, that costs only $129. you only catch that this device only works on 3g and can not connect to the faster lte networks. yelp is launching a table reservation service fittingly named yelp reservations. the service is free as long as restaurant claims its yelp profile page. atherton, california, is named the most expensive zip code in the country.
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unsurprisingly it is located in silicon valley. home to likes of tech titans paul allen, eric schmidt and meg whitman. first time the u.s. overtakes france to become the world's largest wine market. wine could r consumption in the united states fell by half a percent while fell nearly 7% in france. i guess they're drinking a lot of beer over there. that is today's "speed read." liz? [buzzer] liz: coffee consumption is growing at a rapid pace but drought in brazil and coffee fungus in central america crippling coffee production and skyrocketing prices. how are luxury brands dealing with short supply? david: next we talk exclusive i wily chairman and ceo, an drea illy. liz: one company takes advantage of america's love of flavored sparkling water and expected to hit one billion dollars in sales next couple years. the ceo of talking rain. you might not have heard it but
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you will. they're growing dramatically. a "first on fox business" interview. tate brand is all ready the brand of the year. berkshire hathaway home services. good to know. my dad has aor afib.brillation, he has the most common kind...'s not caused by a heart valve problem. dad, it says your afib puts you at 5 times greater risk of a stroke. that's why i take my warfarin every day. but it looks like maybe we should ask your doctor about pradaxa. in a clinical trial, pradaxa® (dabigatran etexilate mesylate)... ...was proven superior to warfarin at reducing the risk of stroke. and unlike warfarin, with no regular blood tests or dietary restrictions.
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hey thanks for calling my doctor. sure. pradaxa is not for people with artificial heart valves. don't stop taking pradaxa without talking to your doctor. stopping increases your risk of stroke. ask your doctor if you need to stop pradaxa before surgery or a medical or dental procedure. pradaxa can cause serious, sometimes fatal, bleeding. don't take pradaxa if you have abnormal bleeding or have had a heart valve replaced. seek immediate medical care for unexpected signs of bleeding, like unusual bruising. pradaxa may increase your bleeding risk if you're 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners... ...or if you have kidney problems, especially if you take certain medicines. tell your doctors about all medicines you take. pradaxa side effects include indigestion, stomach pain, upset, or burning. if you or someone you love has afib not caused by a heart valve problem... ...ask your doctor about reducing the risk of stroke with pradaxa. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know.
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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.
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whon a certified pre-ownedan unlimitedmercedes-benz?nty what does it mean to drive as far as you want... for up to three years and be covered? it means your odometer... is there to record the memories. during the mercedes-benz certified pre-owned sales event now through june 2nd, you'll get complimentary pre-paid maintenance and may qualify for a two-month payment credit. only at your authorized mercedes-benz dealer. liz: time for a look at today's market drivers. record day for the dow and the s&p 500 with the s&p crossing 1900 for the first time ever. that happened in intraday trading. that is not where we ended but energy sector was the top performing area while consumer
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discretionary lagged. retail sales etched up just .1 of a percent last month. analysts were expecting a rise of .4 of a percent. on flip side the sales for march were upwardly revised to 1.5%. that is the largest increase since march 2010. so good news, bad news there. small business sentiment rose 1.8 points to 95.2 in may. this is good news because that level is highest in more than six years. there were gains in seven of 10 components in the index with a nine-point jump in those expecting economy to improve. with that good news, let me send to it david. david: thank you very much, liz. the recent spike in coffee prices sent shudders down the spines of folks who purchase coffee to resell to the public. while coffee consumption so far has not been turned off by rising price, quite the carry -- contrary there is point undoubtedly it will be. there is man whose entire life has been devoted to coffee.
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andrea illy, is the third generation of the illy family to lead the company since its founding. he brought some of its products including beautiful, if you like coffee machinery, nobody does it better than illy. it is designed in i italy internally. we've talk about the machine. coffee consumption is growing but producing less because of some problems in central america, with the fungus. brazil has a brought. so this is a problem. how do you resolve it. >> yes there is definitely a riskier situation, compared to maybe 10 years ago. the stocks level are low as consequence of surge in cost of production. david: by the way, once again, central america you have this thing called the coffee rust. >> yeah. david: which is a fungus that is destroying a lot of trees. >> it is impact of climate change. david: you think so. >> climate change is impacting coffee agriculture two ways. either excessive rain which
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causes fungus proliferation and damage to the plantation. in some other cases you might have or excessive temperatures. david: droughts you have in brazil. >> exactly. we have drought in brazil combined with two too high temperature. when you have alignment of two negative effects plus depletes the production. david: another thing you have inflation as a result of central banks all over the world printing more money. that increases the cost of everything. when do you have to pass that on to the consumer? >> well, the last time there has been a spike in coffee prices was 2011. there we needed to have. substantial repositioning. with $2 a pound we'll see if prices stablize what we have to do. it is too soon to decide. david: has it affected your profit? look at price. it is enormous spike in the price. that is all due to problems in central america with the fungus?
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>> yes. david: and brazil with the drought. >> this is combined of consequence of higher cost of production after 2006 when the oil went up. david: yes. >> and oil accounts for up to 50% of the cost of production in coffee. david: wow. >> so the producers, they did not increase their production, extra acres. they didn't plan extra acres. so the stock level remained low. every time there is deficit in production, volatility skyrockets like now. david: now the great thing, not only americans but people around the world are increasingly loving their coffee. they want more. they can't get enough. and you are here to supply, you just have a new arrangement with samsung? what is that all about? >> as a matter of fact, coffee is at all-time let's say, good situation because, thanks to the virtues of coffee, which are pleasure, health and -- david: more doctors say it keeps you alive longer. this by the way what we're looking at if we can show that
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again, that's what you have in samsung. you have a dale with samsung to kind of -- >> for another opportunity because in milan next year there will be expo 2015 with universal exhibition. david: yes. >> theme is about food. feeding the planet, energy for life. first time in history. so the expo authority decided to dedicate and entire pavilion to coffee which will be very large. 45,000 square feet. david: wow. >> illy is by appointment of international coffee organization to operate this coffee cluster. we besides operating that one in milan we will have a virtual one. we need a partner like samsung to say, let the consumer access through mobil technology to the virtual coffee throughout the world. david: i promised viewers, we have time for one more question we talked about the machinery.
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you continue to advance on machines you have. style of machines you have. space is premium. you're particularly worried about apartments in manhattan not having enough space and rome. this is the newest design. how much does this cost by the way and what does this machine do. >> the machine ranges, let's say if i remember here in the states it is $300 up to maybe 6 or $700, depends. david: okay. >> so in line with a market, you know, looking for a cappuccino. i don't see a spritzer for the milk. >> this system, thanks to the capsule, it flows directly in the capsule. the machine is constantly cleaned. you don't need to clean the machine. this is illy patent which the point of injection of the coffee goes directly in the capsule without having any content with coffee in the machine and flowing directly in the cup. clean and sweet every time. david: wonderful. always a pleasure to see you.
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congratulations, three generations paid off. they do great work. illy cafe. liz: we have it in our house. i love it. talk about hard sell, billionaire hedge fund manager steve cohen having a hard time finding a buyer for his lavish new york apartment just as many of those are getting snapped up. who he is blaming for lack of buyers. as fiat plans to launch its listing on new york stock exchange this year the auto make ear's ceo sergio marchionne is making a bet on technology to increase fuel efficiency and it is not electric. we'll tell you all bit next corr. corr. cause i'm really nervous about getting trapped. why's that? uh, mark? go get help! i have my reasons. look, you don't have to feel trapped with our raise your rate cd.
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david: billionaire hedge fund manager steve cohen is having a lot of trouble selling his lavish manhattan apartment for $98 million. he thinks his real estate age sent to blame. always blame the other guy. in the bloomberg tower midtown first hit market 13 months ago for $115 million but was reduced to $98 million after no buyers came forward. even at reduced price tag the apartment is still one of the top five most expensive homes listed for sale in the entire country. now cohen is reportedly furious with his broker over the property's failure to sell. the home is 9,000 square feet. that is lot of space anywhere, particularly in manhattan, with four bedrooms, five 1/2 bathrooms and a staff living
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quarters. liz? liz: but, do they have soda makers? david: great question. liz: listen, they don't want it. soda sales in the u.s. are falling flat. overall soft dripping sales were down 1% in 2013. the first downturn in pat least 15 years t was worse for diet soda with coke and pepsi seeing declines 6% last year. one reason for the drop may be a rise in new categories coming out. sparkling flavored waters, a dominant force in the growing industry is sparkling ice, which sees sales growing from 2.7 million to 350 million. its success hasn't escaped the attention of coke and pepsi. with us in a "first on fox" interview the president and ceo of talking rain company and parent of this sparkling soda that is just unbelievable. it has done so well. what do you attribute great growth to right now? >> really the great growth is
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driven by refreshment. we're delivering zero calorie, no added sugar no caffeinated product that meets refreshment need for consumers. they're tired of colas and lemon limes and much like the beer and liquor industry flavor is the new thing, we're hitting on flavor trend in sparkling water category. >> i was a diet coke gal, one or two-a-day for years and years. five months ago, i don't know why, i said i'm not doing it anymore. who knows the, color, there is no added value i could find. i started adding sparkling water to juice. that in essence what you do although let's show some of these flavors here, talk about them. you have sweetness from splenda too. >> sure. kiwi strawberry is one of our older products. it was back around in 2010 when things started to hit for us. we really found a nice balance in terms of getting flavor profile using a little bit of juice in there. the key we use sucrolose.
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that is the best option to deliver zero calories and make it taste good. the consumer responded they want flavor. we're providing a flavor a little bit sweeter than something like perrier but certainly finishing on water note that consumer is looking for. liz: what i find fascinating in those nine years you have grown dramatically but in those nine years you had 2007, 2008, and 2009. would you, tough types to do that business. you didn't have that problem. >> during that period of time was a little tough as well. liz: okay. >> we were chasing the same dream with lot of companies. we were in enhanced beverages. we are were seeing consumers looking for enhanced beverages. we saw that trend go away. we turned back to focus on refreshment where the sodas operate today we saw there was white space in sparkling water and opportunity to really grow business there. liz: coke and pepsi, coke has
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aquafina and pepsi has something called flavor splash. what if you become a buyout target or acquisition target by the big boys, would you say yes? >> we don't focus on exit strategy. that sort part of our success. we focus on being a solid business. that is what is expected by the investors. not to someone comes with an offer, my responsibility to take offer to investors. we're trying not to concentrate on exit strategy. liz: there is muscle behind this company. thank you so much. >> thank you. liz: we went from coffee to sparkling, we love this. sparkling ice is the company. kevin klock is founder and ceo. talking rain is the founder and company. thank you very much. david? >> thanks, liz. fiat chrysler is famous for its gas guzzling jeeps. will it follow rivals toward the all electric or hybrid route? think again. it is taking a different approach toking fuel efficiency.
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we'll go to a brand new fiat chrysler plant to see exactly what the ceo is saying. that is coming next.
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when folks think about what they get from alaska, they think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america.
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sunny or bubbly? cozy or cool? "meow" or "woof"? wheels or wheeeels? everything exactly the way you want it ... until boom, it's bedtime. your mattress isn't bliss: it's a battleground
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of thwarted desire. enter the sleep number bed, designed to let couples sleep together in individualized comfort. he's the softy: his sleep number setting is 35. you're the rock: your setting is 60. that works. he's the night owl. his side's up while you're in dreamland. you're the early bird. up and at 'em. no problem, because you're in it together...keeping the love alive. and by the way - snoring? sleep number's even got an adjustment for that. crazy? only if sleeping peacefully with your soulmate is crazy. you can only find sleep number at one of our 425 sleep number stores nationwide. (and) right now all beds are on sale. yep, all beds, starting at just $649.99. know better sleep with sleep number. david: as fiat chrysler prepares to launch its listing on the new york stock exchange this year, sergio marchionne is
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making huge bet on car transmissions as means to crank up fuel efficiency. liz: jeff flock live from tipton, indiana, where fiat chrysler dedicated its brand new transmission plant. that is good news, jeff. >> exclusively inside the plant as we speak. i'll tell you this is not your grandfather's auto plant. look at all the natural light. huge, beautiful, $162 million worth. look at event here today, with sergio marchionne as i told you last hour, liz, kind of like a rock star. very popular, partly because of that investment in 850 plus new jobs. this is a transmission and this is the bet you're talking about, david. a nine-speed transmission, made here in tipton indiana. it will be shipped all over the world, to turkey, brazil, italy, china. and here in the u.s. it will be put inside of the jeep cherokee, the 2014 cherokee and chrysler 200. now the whole point of this nine-speed transmission, nobody
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has a nine-speed transmission, is that it makes the car much more fuel efficient. look what it meant forethe cherokee. the new cherokee, 25 miles to the gallon compared to the old jeep liberty that got 19 miles per gallon because of the transmission. this is pieces of it, flywheels and other pieces that go to. sergio is saying i'm betting on transmissions, not so much on electric vehicles. i think those have been overblown. and i think i'm worried about ford and all aluminum ford truck as well, the f-150. here is what he had to say about that. >> we'll wait, we're going to watch this very carefully. we're less than 12 months away from seeing thispart in the marketplace. we'll watch it like a hawk. >> like the guy who putts first on the green figure out where he goes wrong. >> yeah. i will try to avoid a mistake. i will follow him if he gets it right. >> exactly. if your putt went in, in alan mulally's putt goes in and mark
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fields, make sergio will come behind them and putt out. if not, there is real concern on his part that may not be the way to go. that is a big bet, all aluminum truck. he has no plans to do it right now at fiat chrysler. david: he is dissing a competitor a little bit at same time. gets in two ways. he is a smart cookie. >> exactly. david: jeff, it's a beautiful plant. thanks a lot from reporting there. >> it is. liz: great stuff, exclusively on fox business. can't kick the habit? if nicotine patches and e-cigarettes are not working, a startup with a great idea how to help you quit smoking. david: switch to cigars. no, that is not it. liz: hey. david: there is new robotic arm that could show major league baseball catchers some tricks. get this, it could help clean up space junk. we'll tell you how next. ♪.
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david: time to go love the desk. want to quit smoking? quit bit offers electronic lighter that monitors your smoking habits and singh them with your smartphone. syncs them. it tracking how much cigarettes you smoke and how much you're spending on cigarettes. they're seeking $50,000 on kick-starter before it starts taking orders. liz: also off the desk, this robotic arm can catch objects at the blink of an eye. according to developers in switzerland, very good, the arm take as 500ths of a second to catch any flying object. the arm works estimating a projectile's trajectory and calculating ideal catching patterns. originally designed for use in factories could be used by satellites to scoop up space junk. david: what are you doing, dave? we asked you on facebook and twitter, you watch traditional tv or get your content from streaming devices.
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mike on facebook says, tells us he is sticking with cable tv. that's it, mike. liz: lisa on the other hand, tells us she has both netflix and hulu plus and using chromecast, that is google to stream video purchases right from google. david: what do you do? liz: i just have cable, fios. david: i don't watch that much regular television. i use the computer quite a bit. number one thing to watch, earnings, cisco set to be released after the bell. analysts expecting the tech giant to record earnings per share of 48 cents and revenue of, sr. 1.36 billion. immediately following earnings release on after the bell, this is the key we'll speak with cisco chairman and ceo john chambers. this is "first on fox business" interview that you do not want to miss. liz: cisco is very much a bellwether for that entire industry and one of the blue chip leaders of silicon valley. very interesting to see what he says. he is so bullish on wearables,
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david. david: we try to provide you context which earnings come and sometimes we lead to you the head of that context bar. liz: thank for joining us. "the willis report" is ahead. gerri: hello, everybody i'm gerri willis. right now on "the willis report," are consumers better off putting everything in the cloud? we have risks and the benefits. also it is a "willis report" cash challenge update. our families discover how much they can save going credit card-free. >> we love self-checkout. it is easiest place to pay cash. gerri: our users guide to the spring real estate market. are young americans right? is owning a home a bad investment? we're watching out for you on "the willis report." gerri: for generations americans have taken pride in homeownership but millenials are strangely missing from the real estate market this spring. why? a new


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