tv Varney Company FOX Business August 19, 2014 11:00am-1:01pm EDT
20% and volume picking up, the company posting the biggest ever quarterly loss and that stock down $5. "the opening bell" tomorrow, same time and same place, dick parsons will be my special guest. time for "varney and company". stuart: who would have thought? it has an oddball name, a pair of founders who roller skated down the corridors, the evil mission statement. happy birthday google, 10 years old today. what the decade it has been. want to talk about growth? august 19th, 2004, it goes public. gee mail, google maps, chrome, android, music, self driving cars, google glass, they have the mall. real growth, the stock is up 1,300%. want to see cash? they have $61 billion. larry page, the founders of worth, $31 billion each. we but let's go on
from here. looking for the next google, that is why we are doing, celebrating success and looking for more. "varney and company" is about to begin. ♪ stuart: we always want more so let's get started. we have chosen three tech companies which could be primed to be the next google. as far as stock performance is concerned. facebook, tesla, amazon. charles payne is here. let me have my say. facebook, we put it on the list because it is in a whole new area and the stock only doubled so far. tesla, you are a big fan of elon musk, a whole new industry, whole new technology. amazon already growing by massive acquisition. the stock has done well but not that well. which of the three will you
agree could be the next google. charles: i have subscribers in facebook can tesla. amazon might have hit the arc. we are in an awkward position where i am more worried about them being up 1,000 points but facebook and has lost both unique and facebook obviously as -- mirrors people in many ways, information it gathers and controls and knows about and how it can market and monetize that. stuart: it has 1.2 million users. charles: the second-largest country in the world after china but we are independent country. stuart: you are not -- you would discount amazon. charles: for right now as far as 1,000%. stuart: facebook and has won 80. it is a stretch to suggest they will go up 1,300%. tell me about twitter. charles: twitters wild card, in
a similar position with respect to the information it gathers. what it knows about, what we voluntarily tell it. that is what google strip is, the ultimate -- companies from the beginning of time wanted to do one thing, google's respect, they continue to figure out ways to monetize. in some ways it is scary. stuart: dagen mining and understanding your customer so that you can direct that customer and check stuff at that customer. stuart: voluntarily telling them what we want, putting space ships and satellites over our houses and vans in front of our doors, they are a bit intrusive now. stuart: i've picked facebook, tesla and amazon. what you are really saying and i think i am reading between the lines, you think google could do it all over again. stuart: absolutely. there are so many places and ways they could grow. i will tell you this right now.
in the next ten years i think google will be more powerful than every government agency there is right now. more powerful than every single government agency there is. stuart: their model is due no evil. charles: i hope so. we can hold them to that. stuart: let's get back to reality. we are just conjecturing. a look at the stock market, up again. look at this. dow industrials up another -- 16,900. not too far short of an all-time record high, a couple hundred points the way. are you doing a lot of home repair? remodeling? if the answer is yes looking at the performance of home depot look at it go today. this is a very big company, big stock and it is data new high, $87.78, that is a 5% gain. good sales, excellent forecasts, up she goes. don't look now, the s&p 500 is up 7% this calendar year, that
is a better performance than the dow jones industrials. to the price of gold, it broke below $49 yesterday and still there today. look at the interest rate barometer which is a 10 year treasury yield, no change today, still at historically fairly low levels. big-name you know at jeff: ashley webster back in the new york stock exchange for another dose of trouble down there. that is a winner obviously. you will tell me why but i got to ask you this. how can a sporting goods company doing so well, with all the kids i know have their faces buried in tablets and smart phones and playing video games? ashley: they get out early and played games early saturday morning. as any parent, they get back and get back in front of their smart phones. dick's orting goods, sales up 10% from last year, same-store
sales of 3.2%, especially strength in women's and youth athletic apparel but there has been one fly in the ointment, golf period is struggling around the country whether it is the demise of tiger woods or whatever you want to say but it hit vix -- dick's sporting goods, they cut hundreds of jobs related to that division and the pga of america says and have 400 hired by dick's to serve as golf instructors. they were told they are going to be laid off. some good overall numbers but golf in particular has been a real area of struggle. stuart: later in the show we got interviews with rory mcilroy, tiger woods and some nike and the editor of golf digest about the problems with golf but before you go i am going to reveal something to our audience, you i believe are of former professional soccer
player. ashley: i wanted to be. got signed, cleaning the booth at the first team, lasted about a year, never made it. posing for free tickets. stuart: glad you are over here to talk about soccer. look at this. a new report from the agriculture department. the costs of raising one child from birth to age 18, $245,000 and up. that does not include the cost of college. let's bring in cayley mcentee any -- mcenneary. is it really 200,000? i don't believe it. >> it seems like a high number but it is spread out over two decades. a lot of these online calculators reach the same
conclusion, but it accounts for a bigger home, bigger car, account for recreational activities. if you really are at savvy parent you confine the recreational activities, there are plenty of things out there, it can't be lower than 240,000. stuart: 30% of the 430,000 is for housing. since when do you have to have a third bigger house when you have a child? 18% for education, 60% for food, it seems to me that this number, we take it at face value and we incorporate that into our personal lives, and the result is we have the lowest birthrate in the united states ever. i think these numbers are misleading. >> one thing i do want to point out that is interesting about this, health care spending since 1960 as a percentage of what it costs to raise a child doubled.
that will get worse as you look at obamacare and premiums, that is an interesting point i wanted to bring up. this does have a bearing on deciding -- they look at this number and finances and particular the young people. stuart: i believe it is a fact is that women, certainly parents with education or college degrees that are delaying and delaying, parenting, until well into their mid 30s which actually reduces the birthrate because if you starting your mid 30s you don't have as many children as if you started in a teenager or your early 20s. is that how millennials see it? you are looking at these costs? >> exactly. gallup poll this and found the vast majority of millennials are choosing not have a child because of the economy. the most startling number is for young senior millennial households, income, net worth of
the house hold at $6,000 today. back to 1991, $27,000, that is a 75% decline in net worth for a single millennial household. couple that with lack of jobs out there and student loan is the troubling picture and people ledges and not to have kids. good friend of mine was mary three years, because of finances, something millennials of looking and saying we can't do right now. stuart: charles payne is here. children, $240,000, zero to 18. charles: they say for an upper-income family was 450,000. but there is something odd about the conversation in the sense that from a darwin point of view the poor you are the more kids you have because the idea that a couple of them will break through. in this country going back to 2010 people who made incomes
under 10,000 had the biggest birthrates and it makes sense because that is how it happens. someone breaks through and they become the doctor and bring the rest of the family of 4 become this and bring the rest of the family of you got a better shot at changing the dynamics for the trajectory of the family. stuart: children in poor families are an asset which may have a rate of return. children in a relatively wealthy family, a liability. they cost money. last word to you. >> very interesting and there's a lot of truth to that and i know something charles talked about, young people, a cultural shift, not wanting to have children and i do see that with young women who are very career oriented. they have opportunities women in previous generations did not have previously. a focus on their careers and are having children later in life so that is an interesting cultural component. charles has spoken about it before. stuart: when are you going to
harvard law? >> i will head to new york for two week so i can come in studio with you next week and coming to harvard there after. stuart: we will book you. charles: she just booked her self. stuart: i tell you what. we will see you next week. >> thanks. stuart: to golf. number of people playing, number of people watching all down but nike is trying to reverse that trend, one of the only gulf brands to be growing its business, the rest are cutting jobs and tiger woods and rory mcilroy to do this. last night we caught up to rory mcilroy as nike launched its new vapor clubs line at new jersey's liberty natural golf course. >> it definitely needs a few guys that are competing in majors' all-time, dominant in
some way. i would love to see that guy, that kind of player right now. there is only going to be one tiger woods. stuart: much more from rory mcilroy, tiger and golf digest in our next hour. our lead story at the start of the week, those lapel cameras for police officers, one california town reduced the use of force to reduce the number of complaints against the cops because they're police officers wore those little cameras. "after the bell" we will bring you an apps that lets you broadcast live video from your smart phone. surely very well suited to ferguson like situations.
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closing bell today. laz-z-boy is up already, maybe in anticipation of a good report but laz-z-boy is up 1.5%. let's give you the latest of ferguson. national guard arrives, 31 people arrested, the ninth day of violence after the death of 18-year-old michael brown. president obama won't visit ferguson. he is sending attorney general eric holder instead. he is expected to arrive on wednesday. we got you the body cameras worn by police officers able to record anything that happens. if ferguson police had these cameras we would have video and audio of exactly what happened. taser makes those cameras, that stock zoomed yesterday. look at it today. something else on the same lines. we bring you live scream. that is the streaming video
platform. let simplifies that. lets you broadcast and stream video live from your smart phone. co-founder is here with us this morning. welcome to the program. got to make sure i have got it right. here is my smart phone, i get the apps. i could walk down the street and video, i can stream it here to my twitter account, my facebook, my web site, anybody can watch and follow live what i am videoing as i walked down the street. >> i am live here from the set with our air when and what is unique is unlike google paying outdoor site where you go live to one person the big difference of live stream is democratizing live video scale. and ferguson this radio station that it actually used on the first night, they were planning to stream concerts' and with
breaking news they decided to use the equipment they had for the concerts' and get in the street to report. they use the i phone apps and it was only a few people but reach 80,000 and because it was extremely compelling content -- stuart: when you created and presented a live string of an actual event used by anybody picking up that feet and it is easy to pick up, not that difficult. >> just a link on twitter and media outlets can embed it on the home page and captor and rebroadcast on television. what happened is the police were stuffing everybody with a big camera going through different check points and getting really -- stuart: the frogs could not take away the video because it has already been streams live. they couldn't take it away.
>> what is unique because it is so compelling is it went crazy on twitter and tens of thousands of people, a million over a few hours watched this content and typically in the world before only big media outlets like fox and others could do this. now anyone can do it if they are in a situation -- stuart: why stream unique? anyone else, any other function? >> some tried to do it, and better in terms of quality, fluctuating these events. stuart: when is the apps free? >> the platform is for the. we have a model that if you want to embed it on your web site the broadcast plan which starts at $49 a month. so this radio station started with a $49 a month and upgraded from the phone to this device we provide that you can attach to a camera and they become like a mini tv station with a tiny
camera. stuart: is a mini tv station with a miniature rise camera. >> a few hundred dollars at a time and they are reporting on every news conference, breaking news and they do with that scale. stuart: you are killing my business. >> we are helping get better news and all the media outlets are getting much more underground picture than editorializing. stuart: how old is live stream? >> 7 years, based in new york, 140 employees in four offices and we are profitable, $30 million revenue so far. and -- the originally from belgium but married to an american and my son is american. i have been hit ten years. stuart: do you think you could of the this? you found at an extraordinary company. could you have done it in belgium? >> i wish i could but the opportunities we get here, the willingness to invest in riskier
ideas, probably i wouldn't have done it if we were in belgium. new york and the u.s. market are something attractive for every one. stuart: that is fascinating and terrific stuff. live stream ceo and founder, thanks for joining us. where are we? dow up 66 points, 69. i will break away to something completely different, talking sports. i will talk football. cleveland browns quarterback johnny manziel. what is the pronunciation? johnny manziel. he is known as johnny football. got a little frustrated in the preseason game against the redskins display an obscene hand gesture to the redskins sideline. apparently this is the buzz in the sports world today. former microsoft chief steve ballmer knows that his shall we say enthusiastic pact talks, he is the new owner of the l.a. clippers and he is pumped up. that is him when he was that microsoft when he was prancing
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♪ >> we need you to hit that home but did twice. stuart: .it. >> you just flip it. stuart: i don't believe it. how do i get them back. >> the ones you don't use -- >> you just go back to the icon and it opens it up again. stuart: it went downhill from there. i am not a tech knowledge he said the kind of guy. you can watch the full video.
it is testing three mobil stocks. it is just another thing that starbucks is doing. two more big names. mcdonald's and craft. they are bringing coffee to retail outlets next year. now you can buy it. no impact on the stock. let's get to steve ballmer. introduced himself to the team and fans off by. ♪ >> everything is about looking forward from today on.
still 157 games last year. got pretty darned deep in the playoffs. stuart: okay. [laughter] stuart: may i point out that since mr. ballmer left microsoft, microsoft stock has gone up. >> i think you probably told the story. i notice noticed everyone in the crowd was pretty excited. i hope you stay in the owners do. >> you are right, actually. charles: pros and cons. it does not work for everybody.
speak. stuart: a war on the middle class. the rich have to pay for their fair share. the democrats agenda is actually hurting the average person. browns quarterback went six for 17 last night. losing to the redskins is not what has people talking. it is this. the redskins defense. obscene hand gesture on the sidelines. i'm sure you could use your imagination of exactly what johnny football was doing. you are not looking at me, charles. charles: he is 21 years old. he is the hottest thing in football right now. stuart: this is the producers
idea. next hour. we will get the take on the future of golf. why fewer people are playing. what they are going to do about it. you will want to hear what he has to say. ♪ unlimited cash back. let that phrase sit with you for a second. unlimited. as in, no limits on your hard-earned cash back. as in no more dealing with those rotating categories. the quicksilver card from capital one. unlimited 1.5% cash back on everything you purchase, every day. don't settle for anything less. i'll keep asking. what's in your wallet?
stuart: there is a positive sign for the housing market. home construction surged on. >> yes, a big percentage jump. stuart: you are not going to turn around and tell me that some way or another, housing has a new boom. >> i cannot. those numbers definitely do not like. if you also look at in home in-home across the country which has been stagnant, the affordability, that is a number i am looking at. the lowest level in six years.
stuart: if i am not mistaken, they build homes for the upper 40% of income owners. the higher and homebuilders. they are doing well. that section of our society is doing well. over 50 is positive. correct? multi family construction apartments. there are still plenty of apartments that are being built in this country. there are plenty of renters out there. they are still in need of apartments. they will not be buying. they will be renting.
that is another sign that the housing has stalled. stuart: good stuff. thank you very much, indeed. there is a war on the middle class. it is democratsthey have hurt m. we have the former advisor to senator mitch mcconnell. he has the numbers on this. is it actually true to say that their income is down since 2008?
>> middle income have seen their income actually dropped by 5.1%. the working class, they suffered each and every year. the same thing from the lowest income group. each and every year. >> these are groups of people. what is it that has resulted in the last income going to have the country. >> you cannot separate the state of middle class and working class people from the economy.
>> it is a very specific amount that is down. right now, in this recovery, per capital income, it is only of a certain percent. those sort of numbers, simply filtered down. that is what the data shows. everyone is suffering under the policies that we have seen in place since 2008. >> if we had growth, you think that this income inequality would shrink? middle america would be much better off?
>> there will be all of these people that say it is unequal. would they are getting ahead? everyone gets a half. all incomes prosper and move ahead. unless you have economic growth of at least 3%, the working class starts to suffer and may start to fall behind. we have not had to% economic growth in years. we have had this incredibly long strain of weak economic growth. we are just not seen that sort of growth that allows all incomes to get ahead. stuart: this is not some partisan group. >> correct. this is the population survey
that the census group put out. yes, it is their data that reports the picture. >> i am glad you dug through it for us. stuart: community health systems. four and a half million records stolen. we have the man who ensures next. ♪ but then, one day, he noticed that everybody could have a magic seashell.
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your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week. ♪ >> i am ashley webster at the new york stock exchange. we can see the dow, the s&p up. looking at some of the retail names on the move today. up 8%. very close to that. urban outfitters also moving up. aeropostale up 22% as they rename immediately. up more than 20% after a merger
celebrity branded perfumes. at least for brokerage firms started coverage. wild crazy chicken. sales of orange juice falling to a record low. a gallon of oj sets you back $6.44 for 1 gallon of oj. here is the problem, it probably is not coming down anytime soon. stuart: i am sorry to interrupt you. >> i can get into that right now, actually. ready to drink coffee.
energy drinks. it explains some of the decisions. minute maid just took a big stake in monster. trying to buy so far. stuart: i personally do not drink orange juice. >> you like the fresh stuff. >> i do. that will be community health systems. guess who stole them. here is the president of this company. >> it is a couple years old. stuart: could you have offered a policy to that hospital chains
that pays them for what they suffered. >> absolutely. stuart: another hospital record. >> that is correct. you also fall under the hip of regulations. stuart: so they will be sued. >> they will be sued. there is coverage for that. stuart: do you ever write policies that cover every loss connect it to any of the hacking incident whatsoever? >> yes. approximately 20-25. stuart: target? >> $100 million of coverage. they paid a lot of money.
i am sure that now it is even more expensive to them. stuart: well, okay. if you are offering that kind of coverage -- >> there is not enough statistical data. stuart: when you get the good data, you are probably putting the prices up. this is usually an honest man, ladies and gentlemen. anybody that can suffer any kind of loss because of a hack can come to you and get arrested.
>> yes. all sorts of information. banking information. personal information. >> we are up over 200%. stuart: okay. i am trying to figure out the cost here. how much would i pay. can you give me a typical policy of how much it may cost. give me an idea. fifteen-$20,000 for it the first year. you have to have a very experienced broker who understands the coverage. you will want to buy a real comprehensive policy.
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why should they change now? >> well, you know, i did make a strong point. i think it was like the movie "god's not dead." they want movies that have values. have morals. have messages inside of them. there are a lot of movies that have done well for them. i think it made 100 million in the states here. they did not do well in america. do you think movies are about faith? i think, eventually, they will
wake up and see movies like son of god, heaven is for real, do well. there are people that want to see movies that have values and have strong things into them. i get that. this movie is out there. people want to see movies that have a heart and soul in them. stuart: i think you are right. we have been running clips from "god is not dead." i am sorry we have such a short time, kevin. come back and see us soon. a millionaire left the period says global warming is not resonating because all americans are not sophisticated. [laughter] charles: [laughter] stuart: more on tiger woods.
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♪ stuart: 10 days ago, michael brown was shot to death. last night more looting and ferguson. the president made a link the stadium. he acknowledged the role, but said nothing about black on black violence. he did not call out al sharpton. there was talk of looters and liberators. who pays to rebuild businesses? what is ferguson's future. the president has put himself in the middle of this. the second hour begins right
now. ♪ he wrote the book, please stop helping us. his name is jason riley. he has plenty to say about what the president said yesterday. the president acknowledged, i would say, the role of politics. >> you said it all there, stuart. you are right. he talks about black criminality. he begins to justify it. he talked about poverty. he talks about a racist criminal justice system. stuart: you think that poverty is at the heart of this disturbance. >> the black incarceration rate is lower than it is today. the black crime rate is lower than it is today.
that would be my response to that. this is about personal responsibility. that is what we need to hear more of. they do not want to talk about that. they want to talk about everything except for that. black criminality. >> how about paying for it. do you think that there is a moral responsibility to pay for those businesses? to pay to rebuild. to pay for the damage. >> you know, i don't know. there is a moral responsibility. though moral responsibility, i would say, is on these black kids to behave themselves. it wants to switch the focus to the cops.
the cops are not the problem in this neighborhood. the law abiding residents. they are calling the cops into these neighborhoods. it is another false narrative that is being put out there. >> why is chicago not in the headlines. >> in the same weekend that the shooting happened and ferguson, there were shootings in chicago. he does not want to talk about personal responsibility. i think that is what is at the heart of this. these cultural attitudes towards marriage, towards the rule of law, the breakdown of the family, that is not what the black leadership wants to
discuss. i do not know how we will change these outcomes going forward. stuart: workbook is called, please stop helping us. what would you do with a black condition in america today? >> if you are worried about black unemployment, stop oppressing blacks out of the labor force. again, if you go back to the 20s and thursdays -- in some years, these black labor participants actually exceeded. since then, we have had this steady increase. we see that reflected in black unemployment. that is who is disproportionately harmed. i stopped keeping kids trapped
in poor public schools. president obama, he has never found a public school good enough for his own kids. yes, he pushes policies. it is more about what the government can stop doing. stuart: great to have you with us, jason. the name of the book is a good one. jason riley, everyone. thank you. appreciate it. check the big boards. another modest rally today. it has been 10 years since google shares made their debut.
which company is in line to be the next google? facebook maybe? tesla. amazon. we have apple moments ago. $100 a share. back to 99.94. it did hit 100 moments ago. profits down at dicks sporting goods. off she goes. 2.8%. you have teenagers. you know about urban outfitters. it says things are looking up for the company. the market responded with a gain. a 10 year treasury yield just below 2.4%. that is historically a very low yield. let's get to home depot.
it just keeps on going up. a record high today. 8872 touched briefly just a short time ago. the world's largest home improvement train. home depot beating estimates. same-store sales also up nearly six and a half percent. full-year guidance very encouraging, indeed. the only caveat to all of this, there are concerns for home depot about the availability of mortgage financing. especially among the younger population. stuart: a big game for a very big company. i will stay on the housing market and go right to scott in chicago. the housing construction surged last month. a big gain.
are you buying the idea that housing is now on a more firm footing of recovery? >> i suppose it is on a little better recovery and it was a month earlier. we are looking at it from the bottom. we need to see a lot of that stock, off the market. until then, i do not think that the guy on the street will feel any better. that was where we kind of got started. with the fed pushing, i think that you will benefit from the upper 1%. they are going like hot cakes.
stuart: you are right again, scott. one of the greenies favorite arguments. the cattle industry, in particular. contributing to global warming. not everyone is buying that. the average cheeseburger is melting the polar ice cap. grass fed local or organic beef. these result in lower productivity. greater water and land use and higher carbon footprints. a professor of agricultural economics. he joins us right now. you wrote that article. make your case.
>> i think what we want to do is open the door to innovation. even health issues is allowed to help people innovate. allow people to be more productive. i think it is great. what you see is there are incredible gains in productivity more meat and more food. that sounds like a great environmental thing to me. here is a quote. if you were to go around to what i would think of as super sophisticated people, we are doing really well. your reaction to we are not
sophisticated. >> if you agree, if you disagree with my particular policies that somehow you are not very smart, i think the reality is the world is actually quite complex. it is ignoring a host of complex issues. for example, in lots a lot of arguments that people are making is meat is too cheap. it is 15% more expensive than last year. stuart: okay. you just coined a great expression. professor, thank you very much for joining us. appreciate it.
>> you have always said on this program, you put tax rates of. you end up with less revenue. we were told that we were completely wrong. you are saying that california did raise taxes on the rich. i remember them doing this. that first year, they brought in more money. now, everyone has gotten used to it. how much is tax revenue down? >> here is the deal. you can move to nevada. phil mickelson was criticized. time and again, this is why california is ungovernable. they do this all the time. they raise taxes. when the money vanishes, they
raise taxes even more. they are marginally in surplus. they are still fiscally problematic. they are bearing down on the state. that is still in very perilous circumstances. >> we will bring in andy. the ceo of the company that owns this. what happens if we put a fence on america? you are the ceo of a big company. what happens? >> we do not have money overseas. what will happen is american
companies will be damaged in the global economy. >> even in 2008, we were the fifth most economically state in the country. if you make american companies pay more taxes, you disadvantage american companies. you cut the united states and you cut down investment in the united states. there are solutions. even secretary lu said that. also it came up with a republican proposal. let's have an amendment.
should change the tax code. keep american companies competitive. if we are not competitive, we will go down the same road. conventional farming, hamburgers, cheeseburgers, are ruining the climate. you sell a lot of burgers. are you killing the planet? >> no. that is ridiculous. one thing that we could change would be if we got rid of the renewable fuel standards. everybody from al gore to the ipp c. the renewable fuel standards is actually more damaging to the environment than if you just choose regular petroleum products. get rid of the renewable fuel
standard. they have offered a bill that would eliminate the renewable fuel standard. that is something that would help everybody. let's not starve people by reducing the amount of available people. again, we are dealing with a global economy that has very strong demand overseas. we need it because of the shortage of beef. >> we may be selling out stock. you are just not sophisticated enough. >> always a pleasure. see you soon. payments for motorized wheelchairs. after the break, the man who
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switch to liberty mutual insurance and you could save up to $423 dollars. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. stuart: amazon's to speed with disney is good news for walmart. the largest retailer in the world, orders jumping for distant movies like captain america and melissa sent. walmart up just a little bit today. we are following apple up $100 per share. it is above $100. record territory actually, very close. time is money so i have three obamacare headlines for you. security of the obamacare website. the white house refuses to release statistics site and the
threat of hackers. undercover government agents uncovering thousands of taxpayer subsidies using fake identities. so much for cheaper health care under the new law. the new york fed reports obamacare is boosting businesses health costs. in turn the businesses will end up pushing the cost to their employees. do you have more on this for us, lives? liz: anything about cost going up is antidotal, but you and i have been talking about this. this comes from the new york federal reserve. it is like a doctor's exam of businesses finding yes, health reform is driving up costs for businesses either raising premiums for the cost of their workers or they're going to be laying off workers going to part-time workforces or outsourcing. we have seen this coming out of the atlanta fed, philadelphia fed and cleveland said this is
an extensive story under the radar right now. stuart: obamacare raises the cost of business objective. >> and the new york fed saying it. stuart: criminals as medical supply companies selling the very important motorized wheelchairs and scooters to patients who really didn't them asking medicare to pay them back profiting from the difference. $8.2 billion worth of charges for those kind of chairs since 1999. they have no idea how many were fraudulent. health and human services special agent joins us, he investigates this kind of fraudulent case. why is it taking so long to discover this level of fraud? >> we like to think we are doing a very good job i think in investigating all these kind of fraud. the community mental health
centers. in the last five years we have providers and returned $23.8 billion to the medicare trust fund, so we feel like we have been doing a good job, it is a huge problem and only 500 agents out there. stuart: there are 500 agents, 500 people to check for fraud throughout the health and human services department. you are checking everything, 500 people to do it, is that it? >> you are correct. 100 million beneficiaries between medicare and medicaid. approximately 4.5-5 million claims per day. stuart: "the new york times"
gets a hold of the computer records and identified hotspots where a lot of the money is going where it is questionable and you can do that really fast using computer technology, why aren't you guys doing this? >> we actually have done that, we set up medicare fraud strike forces in major cities, we did just that. identifying hotspots in houston and tampa and los angeles and miami, in houston alone the power wheelchair you are speaking of earlier they have been reduced 60%. stuart: you understand the frustration because "the new york times" headline was medicare fraud is very tough to beat and you can't get rid of it 60 billion per year. a sense of frustration here, that is taxpayer money here. >> yes, like i said 52 million
americans right now iicare alone and another 260 on it sometime in their life, so we take it very seriously the responsibility to keep it solvent. stuart: wish you could shut down the bad guys faster because that is a lot of money. we sat down with our to be the two biggest names in golf, tiger woods and rory mcilroy. who is going to be the new star? what will get millennials on the course? more from this interview next. >> we as players wouldn't be playing for the prize funds we are and golf wouldn't be as mainstream as it is of it wasn't for tiger and what he has done for the game.
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even if it tried. the 2015 m-class. see your authorized dealer for exceptional offers we're changing the way we do business, with startup ny. we've created tax free zones throughout the state. and startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. thanks to startup ny, businesses can operate tax free for 10 years. no property tax. no business tax. and no sales tax. which means more growth for your business, and more jobs. it's not just business as usual. see how new york can help your business grow, at startup.ny.gov stuart: number of people playing and watching golf going down. well, caught up with two of the biggest names in the sport, tiger woods and rory mcilroy be at on his recent success and whether he is the one to save golf.
>> in a great summer i never envisioned having four majors in my career, so it has been a great journey and a really enjoyable year. still a lot of golf left to play obviously. stuart: he is not slowing down anytime soon. we also wanted to get his take on the lack of young people in the sport. here is what he had to say about that. >> i think having younger kids having role models like the younger guys like rickie fowler, myself, ricky >> , it can only be good for the game. stuart: he said his role model growing up was tiger woods. we got his take on why he thinks young people not playing the sport. >> it has changed, we don't get the same introduction to the game of golf. all of us who are my age and maybe a little bit older got introduced to the game of golf with caddying.
now we don't have that ability, not as many kids being introduced to the game that way. look at most of the kids and you guys here, two or three cell phones, 15 batteries, it is a different world now. people want to have things go faster, where trying to get kids or even adults making it faster, more enjoyable, the price point has to come down, accessibility be at these are all things we are addressing and it is a challenge, no doubt about it. stuart: if you want the business of golf to succeed, you have to get more people involved. so listen to sidney davis on that. >> the industry has looked at other demographics, other constituencies in a number of initiatives out there to bring golf to the next generation whether it is women, people who have played the game and left the game, a number of things, that is the good news i think that will start to bode well for the future.
stuart: they have a successful and profitable golf business, that is good for them. now here is the deputy editor of golf digest. welcome to the program. you're going to take issue with the whole idea young people are not playing much golf? >> we have done some research into it, their actual the largest growing segments of our reader base and i think what millennials are rejecting the game of golf the previous generation. basically in the 90s so many golf courses were built tied to real estate and economically unsustainable by themselves. they took up too much land, you need a golf card to play them and millennials were more fitness conscience and think our purchases are doing something good for society. i am 32.
so basically you heard tiger mention it, get folks introduced into golf they have to play fast, feel good about themselves having to walk and requiring less water, more ecologically sustainable. stuart: you need star quality. that guy is really, really good, who is that person? >> we saw a glance of its the other week with rory mcilroy winning his second major in a row. stuart: is he the second tiger woods? >> the guy, behind him, jordan spieth. stuart: give me the milestones. >> he finished top 20 and a pga tour event when he was 16, he won when he was 19, and this year in his first attempt playing in the masters and players championships, huge pressure packed events, he nearly won both of them.
stuart: so you think the next big deal is jordan spieth? >> it is interesting, we have next big deals, all the time and usually they hit it further than anybody else or flawless swing. jordan spieth has none of those, he is 90th in driving distance, something like 140th in greens in regulation. every meaningful stat we look at, he is a big the average, but you put it all together, 12 in the world ranking right now because he has what is inside. stuart: what is your handicap? >> i am about a one. stuart: have you ever played a gusgothic? >> i have not, i have covered the event five times. stuart: deputy editor of golf digest, thank you for joining us. 10 years since google ipo. much more than such a search company. what is the next 10 years going to look like? that is up next.
some of the major winners on the dial, home depot coming in with results that beat the street estimates on the top and bottom line, home depot up 6%, american express moving higher at 1%, netted health care up 1% and chevron up close to 1%. apple shares touching above $100 a share today, the highest level since september 2012, close to an all-time high. rejuvenated in recent months thanks to strong results and the stock split. u.s. housing searching for an eight month high. google celebrating eight years as a publicly traded company. who is the next google? that story next. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're
stuart: why don't we try something different for "the real halftime report" today. yes, we will do just that. here to talk about google stock turning 10 years old today. you first, i have picked out three companies which i think our possible to be the next google in terms of their stock price appreciation. facebook, tesla, amazon. >> i like all of those, but the one i think that will be the winner will be facebook. they have enough reach. tesla coming up with great ideas, but facebook is a solid company with good earnings, i like them the most. >> i agree, i actually would say
amazon think has a little more long-standing potential bid facebook is reliant on the current user base on facebook itself, obviously a lot of investment outside of that but amazon is a very good, stable, loyal customers whereas facebook you never know, five years from now you might start losing those people. stuart: when i say the next google, don't expect any of those three be picked out to be a performer like google up 1300% in 10 years, but you think facebook is the most likely to do very, very well. you say amazon. how about a company outside of those three that i mentioned as the next google? spea>> remember, 95% of the wors population is outside the u.s. fighting the next great company will come from outside our wal walls. stuart: these foreigners lack
america's innovation, they are not as creative as we are, so the next google will come from the united states, not from a bunch of foreigners. >> we will have to wait and see. i was in china, a lot of people over there. a lot of people in china and all around the world. stuart: numbers make no difference when you talk creativity. >> i would say creative people around the world but i have an american company that will do very well that has been around a while, this is activision bid $500 million investment for a game coming out. stuart: you've got to be kidding me. i am not saying it is going to match google, but they will do extremely well for itself in the near term and it is an american-based company. stuart: with you buy google?
>> i would not. if you believe google is going to grow earnings 30% per year, i would buy it. will the company grow at 30% per year because that is what your p/e should match. i would not be a buyer of google right now. stuart: you say google has several new projects which you think could be huge in the future, go through it. >> they are already laying them out, these driverless cars, cars that drive themselves bit 100 miles have been driven in these cars, imagine a fleet of uber without people in them that google owns. playing games from activision. they have wearable technology, the google glass, i think in five years they are going to start seeing it spreading, and the space internet which you may have heard google launch balloons into space to get access to the internet, they don't have to deal with cable companies or install wires, it
is all coming from the cloud. stuart: you think google can make some more progress. >> i think they really have a plan for the future. i take your point, think you're wrong about foreigners, had an innovation that we do as americans. >> they have so many people and that is going to drive revenue, the people. stuart: that is it for "the real halftime report," appreciate it. san diego wanted to raise the minimum wage, the mayor said no, you can't do that, he vetoed it. lawmakers overrode the veto in san diego. but first this, the passing of legendary "saturday night live" announcer, a 60 year tv career with snl for 35 years.
>> "new york times" best-selling author ed klein says that eagerly awaited hugathon between hillary clinton and president obama has turned into a tense and awkward freezeathon. he joins us tonight at 7:00 p.m. eastern, 4:00 pacific. please join us. stuart: let's go back to liz macdonald with another california story. this is the minimum wage in san diego. liz: the city council overwrote the mayor's proposal. right about small businesses leaving san diego to suburbs and other cities, now the city council overrode it. a possibility they will be taken to voters. it'll go up january 1 and about $11.50. stuart: they will be voting a
wage for themselves and their families. odds are it passes. >> the urban landscape is expected to change as cities raise the minimum wage, small businesses to move to suburbs where the minimum wage is lower. you can see new types of cities in suburban areas popping up. stuart: thank you very much, indeed. the dow industrials are at their high for the day nearly 73 points putting them at 16911. your take on the entire program. coming up you know "hidden things..." ok, why's that? no hidden fees, from the bank where no branches equals great rates.
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very sophisticated in and of itself. >> condescending paternalism, that was jason lusk's take on comments made by billionaire investor tom steyer who implied global warming statistics are not sophisticated. here's your take on the rest of the show today. shaun had this to say about the next big star in golf. quote, don't forget rickie fowler, he could be the mickelson to rory's tiger. good point. cathy about the war on the middle class. there has been a war on the middle class since obama took office. it will continue until we elect a leader with common sense. i think we know where you're coming from. that's it for me. thank you for joining us everyone, it was a pleasure. here is deirdre bolton. deirdre: thank you very much, stuart. search giant google public status is a decade long as of today. we're following the rapid growth and the new youtube
subscription service. and the latest on the case being brought by the national association of broadcasters, to tell you what it means to new media and investment, tech veteran, former mtv' er former of sfx and college humor, paul greenberg is here. google went public ten years ago today. shares better than a thousand percent in the past decade. google's stock valuable. the company did hit a few roadblocks along the way. jolene kent with me now. you know the google story well. what stands out? lots of googley details. >> lots of googley details. they asked the bank underwriters to hand write responses ahead of the ipo. so much has changed over the last ten years, not just the soaring stock price. remember when google