Transcripts For FBC MONEY With Melissa Francis 20140508 : vi

FBC MONEY With Melissa Francis May 8, 2014

Melissa money seeing a lot of green out there today. Were off session highs. But the dow still on track for a record close. Lets bring in fox businesss own Charlie Gasparino and tom sullivan. We have wall street journals veronica daguerre. What do you think of this market, tom . Dollar is going lower, the market going higher, the fed says they win keel doing the same. What do you expect . No place to go. You dont fight the fed. Im telling people a long time. I hate all the printing of money. Here is the thing where it becomes problematic. At some point it is going to end. When you have Interest Rates this low, people go out on the risk spectrum and buy stupid stuff or alibaba ipo or twitter at 60 bucks. Thats what happens. You will get pull backs and when they stop tapering melissa i guess. What is tragic about this, the markets, everything weve been through the since the financial crisis, some indices up 120 , 175 , depending where youre looking in the market. Housing is up, 10 or 11 . For the average person that got scared of market during the downturn they missed this creation of wealth totally created by policies out of washington. Veronica. They totally missed it and theyre still very cautious and not taking advantage what is happening now. They have a lot of money on the sidelines still. Theyre very skeptical and afraid. Melissa that is true. But that is their problem, lets be honest. If you have money melissa very heartless, Charlie Gasparino. If you dont put money listen, i hate the fact that the fed is printing money. It will come crashing down. But you dont play here youre an idiot. Tapering less. So everybody was afraid of that. It is doing just fine. Thats what im saying. I should point out, the taper means almost nothing because still printing money, lots of money. Melissa meanwhile the good and bad. Tesla getting crushed and stocks getting hammered, solarcity is red hot right now. We talk about people getting into stocks and you have these stories out there. How do you reconcile it, veronica . Solarcity is having. It is a bit of a black box for me and average investor. What is really going on there. I dont know if that is a place for your average investor going to want to be to begin with. There is definitely a disconnect. But i think what this speaks to, musk, he is such a risktaker. His businesses get so much attention no matter what they do for good or for bad. So that leaves him in a interesting spot. There is tie inn here because we talk about the fed and markets but this is the federal government. Melissa absolutely. Not only subsidizing solarcity, this is a great racket. Then you get your customers to get subsidized as well. So you have a double subsidy from the government, it is going to make a billionaire out of owner. Melissa courtesy of all of us the taxpayers. There is Public Policy story youre talking about but there is market story. For the average investor, i talk to a lost Portfolio Managers out there, you dont have to buy these stocks. Buy indexes. Bet broad where you make money. Melissa you actually make the money. Meantime this is story you were reporting on for a while, barclays cutting nearly 20,000 jobs. Charlie has been reporting a while. For a year. Melissa now everybody is jumping on the bandwagon. Bank made Huge Investment in Investment Bank, barclays is a Investment Bank. Melissa bought lehman, youre right. It bought it at fire, vultured back in 2008. Melissa certainly did. You remember it well. I do. Now it realizing it aint working. What theyre blaming, what their people are blaming, telling people in congress, their lobbyists are talking to congressional staffers, theyre saying we cant deal with massive amount of global regulation, both doddfrank in the u. S. And stuff being thrown, shoved down our throat in europe. Guess what . That means a lot less jobs. They also not only Investment Bank being shrunk down, but to your point about the regulations they have gone way up, expense of operating a bank is way up. In addition to that the trading revenue, people are gunshy. So the trading revenue is backed way, way off as well. Melissa okay. Theyre getting out of highrisk businesses because of that regulation. Goes to show its a lot more difficult to get a job on wall street. Lot less desirable. Depends, depends where you go. Private equity, listen, private equity firms are becoming wall street Investment Banks. If you talk to any of people at these places steve schwarzman, go down the list, people at blackstone, carlisle, they will will tell we do what wall street does, and guess what . Were not covered by doddfrank. Melissa if you cant beat them, steal them. Jpmorgan poaching top talent from Silicon Valley. There is example of wall street morphing to what is really working. If youre a business major you get left out. You have to be a tech major. Melissa we know that. We know that. Training my kids on code. They lost one of their best people to private equity. Making my point. What is his name, mike cavanagh, former cfo, allegedly heir apparent to jamie dimon went to the Carlyle Group. Why did he go to the Carlyle Group . Talk to anybody. He didnt have to put up with the nonsense of bank regulation. Melissa that is fabulous landing. Incredible wealth and probably much less work. He is a good guy. Melissa thats great. A lot of these guys want to go to the tech side, want to go to Silicon Valley because thats where the real lonnie is. Melissa righ if youre a Business School grad right out of school this is where the opportunity is at. Melissa why isnt jpmorgan stealing them back . Will they open a wallet of their own . What do you think . If you do banking on your phone and mobile is the future. And in addition to that, banks always want to cross sale. They are getting people to go in and data mine who the customers are. I dont think its a trend. Melissa no, i dont think its a trend. It reveals something that jpmorgan is planning. Are they looking at getting into a Google Wallet type thing . Are they getting ready to launch a different people . Theyre stealing all these people. They see it as competition. There is that too. Whopper of all news today, this one really got me. Reports that burger king is bringing out the big buns, burger and fries for brake fast. You dont like this . I love this idea. There is time of day when you dont want a cheeseburger . Not me. I cant think of an hour of the day when a cheeseburger is not appropriate. Maybe burger but not bread and fries. Too many carbs too early. Melissa youre such a good person. Mcdonalds brought in 201,210,000,000,000 in breakfast sales. All year long, all sales, 24 7 from taco bell 24 billion. Mcdonalds beat them with brake fast. Only area of fastfood growing is breakfast. Melissa bk says we cant compete with the egg mcmuffin so we might as well sell cheeseburgers. I dont eat this stuff. Melissa ever . Ever . Not a moment of weakness and french fry never crosses your lips . Maybe a french fry. If you eat carbs and crappy stuff better to do in the morning with whole stay to burn it off. Melissa i love that that is great point. All right. She just wants to be left alone. Marisa mayer telling critics to stop asking if yahoo is tech or Media Company. She got all furious. This was as tech crunch disruptor in new york. Michael erin ton, lord of techcrunch he is a bit of a pain in the ass. I dont know if we can say that. Michael arrington, he runs, i guess he is journalist. He sets up this whole thing very successful, very popular. Im sure he is making a zillion dollars off it but does fireside interviews, unlike you, very aggressive like somewhat hostile to the people. Is he hostile to them . Melissa he is a bit hostile. Im not hostile. I dont do that to people. Ont. I dont. Melissa youre never, never do anything. I dont do that to people. Melissa but he does. He made marisa very cranky. What do we think. Tough. Where is it going . I dont know why that is offensive question. Melissa equivalent of naval gazing at yahoo what difference does it make if youre a tech company or Media Company . Here is the problem she has. They will get about 10 billion from the sale of their interest, they own a big chunk of alibaba. Melissa right. Theyre in big trouble. The question, is she going to go tech or going to go media and go b a company with that 10 billion . That is the whole thing. If there wasnt a looming question out there people wouldnt be asking her. Melissa in a cranky way and making her all crotchety. She would you would think that she knows the answer to that, right . Melissa i think she does know the answer. Ive interviewed her before. She does get a little cranky. She is lovely. Paying straight cash for was a pain and she is cranky . Melissa there you go. Getting out out of the checkbooo buy a new home. Whatwhat that is saying about te state of our economy coming up next. Glued to your phone. What happens when youre not . The crazy lengths americans will go to save their cell . Just how far would you go in more money coming up. Melissa homeowners cashing in. Half of u. S. Home sales are allcash deals. What is behind this trend . Back now the wall street journal veronica daguerre and robert luna and chatwood fund jared levy. Thanks to all of you for joining us. I will start with you. Does that surprise you, 43 of home sales in the first three months of 2014 were all cash . Not really, melissa. I hail from phoenix so im very qualified to talk about lunacy which is Single Family residential housing. Were seeing crazy things with phoenix. Supply is alltime hoe and starting to see bidding wars. Melissa who has money to pay for allcash house. Mostly retirees. Melissa regular people . Absolutely. People sitting on sidelines. Individual investor is out of the market. Theyre sitting in the money market and theyre afraid market and putting that into melissa jared, youre sound being like youre a nonbeliever. I will put on my super geek hat. I ran regression models. Foreign nationals are investing alongside hedge funds bying Single Family homes. Yes, retirees are part of it but foreign nationals family members are buying these. Melissa theyre ones paying cash, is that what youre saying . Yes. I think it is stablizing. Listen to real quick. Homes are becoming income generators as opposed to becoming big debt burdens for a lot of u. S. If we slip into recession, you will be less likely to let go of income generator than big debt burden to you. It doesnt bode well for main street america. Melissa that is really interesting point. Veronica, what do you think about that. I had a Financial Advisor come in yesterday saying their chinese clients are buying houses in california and new york to diversify their portfolios because theyre concerned about the chinese housing market. They have a lot of money tied up there. This is a strategy for them. The average american i dont think this is what theyre doing, that they dont have this kind of money saved. I find it hard to believe that Middle America has money to lay out with a huge cash down payment. Melissa we have to leave it there. Were looking all day on fox business is business of travel. We have a deal aggregator that helped its 27 million subscribers saved more than 10 billion bucks. Is that possible . We have the president who joins me now. Thank you so much for joining us. Travel zoo. Thanks, melissa, for having me. Melissa with everything going on in the economy, aaa predicting that Memorial Day Travel is going to dip. Are you seeing that versus last year . Were not. Were seeing bookings increase and lot more deals in the market. That is probably why the, the travel, were seeing travel on our site increase. I think what aaa, they said it might be slightly down but, i think people are still, theres a lot of pentup demand especially after this harsh winter to get travel melissa has it been a tough winter in particular for travel . Did you see bookings drop off as people kind of stayed home, afraid of flights being delayed or canceled . A little bit the especially in january. We saw a little bit of a pullback. But then, in the february, march, time frame we saw a huge ramp up. And were also seeing a lot of really fantastic deals in the market coming for summer as well. So, were seeing a lot more traffic. The air fare in particuarly has been, i know there was a lot of talk about consolidation of airlines and fares may be dropping however there is great sales out there, both international and domestic. In fact there is one that indtonight, that is a 138 starting at, nationwide. So melissa you can fly anywhere in the country for 13bucks . Might want to jump on that one. Melissa what is that deal . Can fly anywhere in the country for 138 bucks . Starts at 138, depending on cities you want to travel it is going to differentiate. 138 nationwide, starting at, and it ends tonight. There is also Canadian Travel is very popular as well. Were seeing a flights at about 150, starting at 150 roundtrip, which u. S. To canada has been relatively expensive over the last year. Melissa very cool. We all love to travel, shirley. Thank you so much for coming on. We appreciate it. Okay thank you. Melissa epidemic goes into overdrive. One in 10 americans now suffering from the disease. It is a time bomb that doctors say we need to address right now. Plus the nfl draft kicks off tonight with millions of dollars on the line. Who better to talk to than real life jerry maguire, leigh steinberg. He is joining me. Piles of money coming right up. 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. Thats not a coincidence. Its one more part of our commitment to america. Dierdre markets coming off their highs right now of the dow still trying to finish at a record close. Lets go right to Nicole Petallides on the floor of the New York Stock Exchange with more. Why are we seeing a little bit of pullback here . It is not unusual to see that we would have this back and forth action. Of course we heard from our fed head earlier today. Once again in her second day of testimony janet yellen really providing an outlook for a very accommodative fed. That being said we move into within striking distance of record intraday alltime highs. Were 10 points away from the dow jones industrials. Still higher for the dow. The s p just fraction alley into the red right now. Some names that would be weighing on these major averages would be drugrelated. Merck, United Health care, down more than one . The drug index is an index that is really evident to the downside. Where is the banking index and retail index those are holding on. Oil services are also showing some weakness right now, melissa. Melissa nicole, thank you so much. So is the Health Crisis too widespread to ignore . One in 10 adults suffers from diabetes. That number will only go up from here. Experts say a third of all mississippi adults will have the disease in next 15 years. That is shocking statistic. There has been progress. Diabetes related heart attacks and strokes have dropped 60 showing some of the treatment is starting to work. Dr. Devi, a associate professor at nyu school of medicine. Were seeing number of people with diabetes go up dramatically but seeing complications, heart attacking strokes, going down. Why . People are getting diagnosed earlier part of the numbers going up. In the past 20 years ago you might get diagnosed with diabetes because you were having a complication. Might have heart attack or stroke and at same time people tell tell you have diabetes. They can live a longer time without the complication but numbers skyrocket. Melissa what is it . Narrowing of blood vessels, right . Exactly. A few things involved in diabetes. It is called what is an autoimmune disease. It is attacking your own body. Mistaking your own body for bacteria and your own immune system is attacking you. If it attacks your blood vessels, what can happen those blood vessels get damaged. The blood vessels carry you oxygen, it is carrying you nutrients that all your organs need. If you think about it sort of like trying to drink something, from a bottle versus through a straw, if you have a bottle or open glass of water it is really open so you can get a lot of water but if you have a straw you get a lot less. That is exactly what is happening with your blood vessels. Melissa type2 diabetes is most common but cause is unknown, right . It is unknown but seems linked to obesity. When numbers are going up then the numbers of people with diabetes are going up. There are a couple Different Things that are going on that might cause numb brothers to go up. In terms of things being promising though, one of the things that is good we are making a lot of advances. So medical care is improving for diabetes. A lot of medications are Getting Better. A lot of technology is Getting Better even glue cometters. People have a lot more knowledge about diabetes. They know when there is problem. Colleagues friends, know a problem and can help people out. Melissa they know how to deal with it. Dr. Devi, thank you very much. Appreciate your time. Thank you so much. Melissa speaking of diabetes, getting Chicken Nuggets and fries may be about to get a whole lot harder. Fastfood workers protests that are about to go global. Family feuds contestant whose family probably wants to disown her right about now. Were betting Richard Dawson would still like her. Get your buzzer ready. Wheel show you how it played out. Piles of money coming up. My dad h

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