Fending off the challenge with a few new tricks up his sleeve. It is a fox business exclusive. Plus, dow chemical crushes earnings estimates but will the strong numbers quiet down activist investor and his plan to break up the company . We will take you there to ask chairman and ceo, and wait until you hear what the oracle of omaha has advised them to do. Countdown to the closing bell starts right now. Liz good afternoon, everybody, i am liz claman. It is last hour of trading. You need to be with us because as we go on air, Federal Reserve is sending tremors through the market by expanding the taper. Releasing a new policy statements just one hour ago and the big headline is the fed is cutting its Bond Buying Program again by an additional 10 billion per month. That takes it down to 65 billion per month. The markets move lower on that news. While the dow is down 185 at its lowest point it was down 220 points. S p 500 down 17 right now at its low point was down 22. We are up off the floor because the nasdaq down 44, was down 51 points. At its worst point just a few minutes after the fed announcement. Now while likely expected, he fed announcement shows he Federal Reserve tends to stick to its winding down plan of the Bond Buying Program that was initially put in place a couple of years ago to put a floor in what it really was a very tentative situation. Now weve got that problem with emerging market currencies wavering and a drop in u. S. Equity markets but yes, many stocks are getting clipped for all of those reasons and more. Beyond this very moment, what does the feds decision mean for your money and your portfolio . Lets ring in the panel and we have a whole bunch of very intelligent people to cover this from every angle. We also have our traders. First i want to get to peter barnes down in washington. Do you think the Federal Reserve is a price but Market Reaction . I know they never talk about it, but what is your sense . We were wondering if the fed would include any comment about the recent market volatility about the problems that have just started to emerge in the emerging markets some say as a result of the fed tapering and the way it is affecting some of these capital flows in and out of the emerging economy, but no mention of any of that in that has some analysts saying that shows you the fed is not panicking. In fact it is going to continue to taper by an additional 10 billion per month because of a pickup in Economic Growth. This is the key line i want to bring your attention to. Two changes from the statement in december. Number one, Economic Activity picked up the last time around and said Economic Growth was moderate, so that sounds like a slight upgrade in its views on the economy, and it says in recent quarters, the last time around ill mention of a time. Iit is what i says in recent quarters. 75,000 or so jobs created in december maybe because, which was loper has because of the bad weather in december, maybe the fed considers that month to be an outlier. Some consider the use of the phrase in recent quarters, that is quarters, the Third Quarter was about 4 growth, the Fourth Quarter coming in 3 , so perhaps the fed does think that jobs report was just a oneoff and it has confidence economic recovery is proceeding firmly. It feels comfortable in tapering. Liz had enough tapered again, that wouldve scared the market a lot. South texas moneymanagement ceo and cio. I will first get to you because from an investment standpoint, what is most important thing out of the feds announcement today that you did here . Well, i hear consistency, consistency in what they have been saying, what bernanke has been saying and the u. S. Economy is on and even growth pattern and will probably again have another year of positive gdp for this year, but what the fed did not say today but was factored into their decision is what is going on in europe. Europe is actually a brighter spot, a much brighter spot now than it has been over the past few years so i think that gives added confidence between the u. S. And europe. What i am very encouraged about is how steady the 10year u. S. Treasury is today. There is no panic even though there is a selloff in the stock market. We are not overly concerned. We think janet yellen will be a great fed chair person and we not concerned Interest Rates will get out of control or that the market will go into a freefall. Liz she is a longerterm investor, but you as a trader, give me a sense as to why the market last time around to the tapering is a very positive sign, yet today it is gyrating to the downside. A couple of things. I think there was a wish list perhaps contrary to what you just said when you introduced us, the fed maybe wouldnt have done anything in tapering in this go around. The fact they continue their policy, which doesnt surprise me. I think was in some way disappointing. But the bigger issue is the game has changed, the fed has changed the policy, they have gone a accommodative to be more restrictive which as far as i am concerned, that takes the fed off the table and the focus now becomes emerging markets, the euro zone, two steps forward, one step back u. S. Economy all of which could be decent, but also runs a real risk the news would be disappointing and without the fed as the underlining bid for the market i think it becomes problematical for the Market Going Forward whether it is down 185 or down 20, i think were on the other side of the mountain. Liz we had a trader who says i hate to disagree with teddy. We have two very good pieces of data yesterday, consumer sentiment, i am not sure the fed was so i think keeping up the market. Looking at the markets today, the dow is down 220 points, getting some real pull back there. The problem with the currencies, hiking Interest Rates is a little bit of concern about contagion that is coloring this issue. Everybody i quick shot of reality, their reality. We looking at a confidence the fed is taking the right steps right now. Everybody anticipated it, a lot of this was priced into the market for the emerging markets are still going to be hovering over us and everybody reacting to it right now. It was a little bit too aggressive, but lets see how all that falls into place. As you were talking about the currencies, the dollar is having a hard time gaining ground on any of this right now. Liz isnt this surprising . It should have been dollar positive, should it not . I thought we would see it up over the 81 range at the announcement, what it has all been tapered in. Everybody was buying into this they would do the 10 billion taper again. What could have changed had he gone to 15 billion, throw a Little Something in there to show that the more confidence in the u. S. Economy. Liz throw a little love to the u. S. Dollar. We know a lot of commodities are basically counted in u. S. Dollars, and therefore talk to me about what you are seeing on the floor of the nymex. I am seeing chaos today. One of the strangest days i have seen in a long time. We had natural gas languishing for a while down here, finally looked like it had given up hope and was going to back off, down under 5 at the end of the day rallied up to a new contract high and has blown out all expectations here. It looks like were going to see numbers going to approach 6 now before you know it. I talked about earlier talking 5, he looked at me like i had three had sped but it came to provision. Liz it is more important to everybody here in new york as we watch the super bowl. There is a yankees hockey game at yankee stadium. Everybody looking at how that temperature welfare. We have the closing bell ringing in 50 minutes. Yes, we are not seeing any kind of rally here but we are off the lows of the session. Just three weeks ago i was with yahoo at the iconic consumers show. The teenager who sold his hugely popular new summarizee app to yahoo for millions. Now rivals are fighting back. Among them, which may be was an original, not even a rifle. The cofounder and ceo gives us an exclusive inside peek at his totally remodeled app that just went live 10, now make it 11 minutes ago. At the top of the hour, mike mccue talking about that and how is that he sells ads for 100,000 apiece. Facebook founder and Ceo Mark Zuckerberg would love to sell ads for that much. He has a hotly anticipated Earnings Report coming out in less than an hour. Superstar analyst will tell us exactly what to watch for. Facebook has been on a tear lately. [ male announcer ] wt kind of energy is so abundant, it can help provide the power for all th natural gas. Americas electricity is generated by it. Exnmobil uses advanced visualization and drilling technologi to produce natural gas. Powering our lives. While reducing emissions by up to 60 . Energy lives here liz flipboard has been in the business of personalizing news delivery since 2010. That is kind of a lifetime in the digital age. The company is aiming high expecting to hit, and maybe even surpass, 150 million users this year. But competition is fierce and heating up as more and more Companies Look at flipboard and say why dont we try to launch our own products in this space. In las vegas i spoke with ceo and founder 18yearold, remember this kid . He created that service and yahoo bought his, we did it and called it news digest. I have news digest and facebook rumored to launch a new Service Called paper. The key to staying ahead, staying cutting edge. That is exactly what flipboard is doing. And just 16 minutes ago at 3 00 p. M. Eastern time, the company unveiled a new look for its cover story features to make news more personalized and organized for all of their users. Joining us today fox business exclusive is mike mccue, flipboard cofounder and ceo. I want to make sure, so many people are trying to download the new look. Was that it . It looks similar, but i believe there is a Different Organization here on what i am seeing that i normally wouldnt. That is right. What we are trying to do now is prevent content in a more structured way. See the latest and the greatest in an organized way similar, very similar to what you would see in a magazine. The industry today is dominated by products that are reverse chronological, you see the very latest stuff and you kind of see everything mashed together. We want to create an experience that is more structured, more organized. You can still see the latest but you are not overwhelmed by the content. A nice easy to digest content like a magazine. Liz i look had an article on the verge about spotify. I had technology in mind. This is one of our team members ipad. Look at all the things on the flip board, i think you are an original but so did facebook. We want to do something similar. Are you worried about facebook . We are close partner with facebooks. Let you see facebooks content on flipboard. With that you put flipboard content on facebook. This is a very valuable space, everybody is going to have their own take on it. A magazine full of all the things you care most about. Personalized to you and presented in a really beautiful way that is really easy to flip through on a mobile phone and i tablet. Yahoo will have his own take. But we have hours and we feel great where it is headed. We have over 100 million users where we close the year last year adding over a quarter of a million new people every day. And people have now made over 6 million magazines on flipboard about all different sorts of topics. We feel great about where we are. It is exciting to have so much activity in this space. It will be fun. Liz i bet it is exciting. We were over at yahoo, the news digest out, that was pretty popular when it was first announced at the Consumer Electronics show. But you are unique in that i saw the customized ads you guys are able to put together that are just incredible, are you still commanding . When we were in the garage where you started, you are demanding 100,000 for some of the super customized ads bid is it sustainable . Absolutely, in some cases more. We are trying to again bring the ideals of print and the magazine to the digital world. That includes advertising. The Advertising Market is a 600 billion per year market. And only a small percentage, less than 20 of that has moved online. So we are very much in the early innings as it relates to Digital Content presented on mobile devices. We wanted to take a holistic approach that encompasses the content and advertising and a nod toward what has always worked in print. Mary that with what is working in social media. That is the mission we are on. We are just doubling on that. It will be a big space for lots of players and i think youre seeing the market starting to mature. Liz are you seeing a brain drain . We have had extremely good retention of our team, we just passed 100 employees at the end of last year. And we focus on giving people a sense of craftsmanship around a great product they love and users love, and if you have th that, that tends to keep people really excited. So, you know, it is always hard to build a team and motivate and keep a team, but it is actually one of the things i enjoy most doing. Liz one of the nicest places ive ever walked into. I like Silicon Valley workplaces. It is in a garage, based the original but everybody seemed really cozy and it was nice, really was. We are watching to see if he can hit 150 million users in 2014. We love the entrepreneurial spirit you all have, thank you so much. It was great to talk to you again. Liz anytime, anytime. He always says the same thing. Google a couple years an ago wad to buy them, he turned them down. They have grown exponentially. We have been on a story first and fast. We are back in business, 49 minutes away, actually 39 from the closing bell. Big news in a showdown over herbalife. A key member of the team behind the inner phenom shortselling on the stock has resigned. Charlie gasparino has exclusive details on this. And dow chemical knocking it out of the park with its Earnings Report. But can they keep activist investor at bay . Chairman, ceo and president talk to me about the earnings. And stock buybacks. Plus, on his side, billionaire Warren Buffett speaking to me at fox business. We will tell you what he says about this showdown over dow chemical. Stay tuned, the oracle of omaha and his comments next. [ male announcer ] e new new york is open. Open to innovation. Open to ambition. Open to boldids. Thats why n york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Ere new york. If theres something that creates more jobs, and ows more businesses. Were open to it. Start a taxfree siness at startupny. Com. Were open to it. My dad has aor afib. Brillation, he has the most common kind. Its not caused by a heart valve problem. Dad, it says your afib puts you at 5 times greater risk of a stroke. Thats 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. Hey thanks for calling my doctor. Sure. Pradaxa is not for people with artificial heart valves dont 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. Dont 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 youre 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. Were thinkers. The job jugglers. The up allnhts. And the ones who turn ideas into action. Weve made our passions our lifes work. We strive for the moments where we can s, i did it we are entrepreneurs who started it all. With a signature. Legalzoom has helped start over 1 million businesses, turning dreamers into business owners. And were here to help start yours. Gerri liz this is interesting because were in the business about the people in business. Persian square, a big hedge fund, finally conceded that a key herbalife analyst has left the firm. Charlie gasparino was the one putting pressure on it with the details. Charlie putting pressure on them, putting a pressure on the p. R. Department. You would think the guy i havent dealt with my entire career, his son might call me back, when they did they were completely unhelpful and rude to us what we had good sources on this and we reported exclusively on this show in addition to the analyst and the private equity guy that wanted to buy herbalife, the guy that actually helped coauthor the negative herbalife report for bill ackman, sources are telling us was leaving. We understand right now he has left, theyre finally confirmed he has left. Liz a huge losing bet for bill ackman. Is that what he is losing . Charlie he may want to get back to the society community, be with his family. If you are in a private equity fund, you believe you want to get paid on your call, you dont leave can we wait until the call materializes. Herbalife has been going down. A high of 80 and stories of chinese investigations and red raiders looking at stuff, about 62 today. We should take a look at the stock chart. It was down yesterday on the possible chinese. Liz is this you . Charlie maybe. If you look at what is going on since the last couple of months, it has been getting hammered from 80 but this has been a huge losing bet for bill ackman. I say this over and over again. Bill ackman and the coauthor, they make some compelling points about herbalife. It is a very common get a corporate structure. These people are not idiots, they are smart guys. The prob