Transcripts For FBC The Willis Report 20150428 : vimarsana.c

FBC The Willis Report April 28, 2015

Lower than expected contributions from some of their newer direct response products. As for the current quarter, guidance was actually cut as well along with the fiscal year for 2015. So this also sent shares down 18 at the closing bell. As for the leak, lets go back and explain what exactly happened here. Earnings were first posted by Financial Data platform called xolairty. They were obtained they say from the Investor Relations website. They say no hack or leak actually occurred. Twitter has come back and said they originally asked the New York Stock Exchange to halt trading once they discovered their quarter one earnings numbers had leaked and published our results as soon as possible. They went on to say we are investigating the source of the leak. But early reaction from analysts is not positive. Rbc Capital Markets mark mahaney an analyst there gave it a negative first passing quote, the revenue miss overwhelm all. This miss is very surprising. Raising question how much visibility and advertising for consumer demand offerings twitter really has. There you have it twitter closing down. Were watching it in of a hours trading. Serious plunge and one wonders looking ahead would the plunge have been so dramatic had the leak not been, not occurred at all gerri. Looking ahead, a weaker forecast moving ahead for twitter. Gerri pretty poor afternoon for twitter, thats for sure. Dick costello who holds 800 thundershower shares has not been good for him as well 800,000 shares. Appreciate it, jo. Breaking at this hour, baltimore remains on edge. The National Guard patrols the streets as the crowd begins gatherings again and citywide curfew begins in hours. Last night riots left businesses looted and burned. At least 20 officers injured. One in critical condition. Those are reminiscent of riots 50 years ago that broke out in the city after the assassination of dr. Martin luther king, jr. Those riots left six people dead, over 1000 businesses looted and millions of dollars worth of damage. The city experienced a population exodus. White flight out into the suburbs. If tensions remain this volatile could the same thing happen all over again . Guy benson, senior Political Editor townhall. Com. Steve moore, distinguished visiting fellow Heritage Foundation and michael baloney, former Homeland Security official. Great panel. Great to have you all here. Steve i will talk with you. People talking about financial disparities the president talking about how people who live in these communities experienced horrific financial problems and i have to say, are the financial problems a result of the violence or is the violence a result of the economic disparity . Maybe a little bit of both but these are areas of the country where there is just so much poverty and so much crime and so much welfare dependence. It is really a tragedy in 21st Century America we have these pockets where you have lawlessness, terrible schools and you know as a republican, i think republicans should to to some of these areas saying look, democrats have ruled cities like baltimore for 50 to 100 years. What have they really done . Same thing in detroit . We dont want our major cities to end up like detroit. When you have liberalism run amok that is how this ends. This is not a happy ending. Gerri were expecting the mayor to comment sometime this hour. She has a press conference scheduled. We will hear from her. She has taken a lot of heat because of the way she handled this thing. Michael, to you, we have 20 officers in trouble, hurt, injured in some way. What is your reaction tonight . Night is going to fall here. I know with have a curfew in place but does that mean people will be safe . What is shocking, some of the official rhetoric that has been out there, there is right of free speech but that is trumped by public safety. What we havent really seen even from the president s comments, you have to draw a line. Folks, wait a minute, the public has to be safe first. Then well talk about what the complaints are, what the riot issues are. That is really not been the focus so far. That is discordant message. It is about getting rule of law reestablished. That is what everybody should do right now. Gerri tell you how far we are from the rule of law even today a day after what happened, massive problems tonight, guy to you i understand the Baltimore Orioles will have their game but it will not be open to the public. This to me is amazing. There will be no fans. Gerri there will be no fans watching the game. Wow. Gerri think about it, this is a city that relies on tourism for about 5 billion every year. Their economy is really the preakness, the inner harbor, you name it. This is the community that realize on good will of americans coming in because they feel safe. What is the impact on that city tonight what has been going on the last 48 hours . It is terrible and heartbreaking and disturbing watching these images. Look, i want to say a lot of this unrest originally traces back to the death of that young man in police custody. I think it is absolutely worth pointing out that his family in that community absolutely deserve answers about what happened there. I think that is legitimate. Just frankly, four white people sitting on television talking about baltimore, i want to acknowledge we might have some blind spots. That being said the way that the city has consumed itself, this violence, the looting, the ransacking, lawlessness, it is completely unacceptable. People from across the spectrum have to make that absolutely |clear without making excuses for that behavior. You know, gerri the thing interesting about modern cities, American Cities are making a huge comeback. Go to nashville, new york city is making a comeback, chicago is making a comeback. The downtown areas are bustling with activity. Baltimore is a good example. You go to harbor place i got to tell you. I understand what youre saying. What im saying but then there is kind of a low income area that isnt feeling the connection between the economic vitality. Gerri we were looking at this very thing today i called the folks at moodys. Because they analyze these cities and their finances. They have some 50 cities all over the country they look at in particular. Right. Gerri because they have high poverty. Believe it or not baltimore does not have low debt ratings. Why . Because they have a handful of institutions, not fortune 500 Companies Institutions like john hopkins that pour a lot into the community. In my view michael, theyre one step away from having real Financial Issues and i dont think the people of this community realize they are hurting the very institution that can save them. Again, the disconnect. This is a city that has been plagued by bad Police Relations over last couple months. In fact last year the Baltimore Sun did a huge expose on police brutality. Knowing you have that problem, the key is to be proactive, reaching out to the community. Saying to the community, reach back so there is dialogue back and forth. The to have that conversation is not in the middle of a riot. Unfortunately what you see folks are reacting. They werent proactive. They need to be. As you said this is unwith key elements of folks staying in place bringing businesses there, safety first. It is first thing that people think of when they wake up in the morning. You have to feel like youre going to be okay. Here is baltimore today. You bring up the fact theyre doing so much better. Their population is 622,000. It is down 36 from 1980. Right. Gerri 36 . Per capita income 22,000. A lot of this was lost in the wake of the riots before. Did we learn our lesson . Guy, to you, the president today seemed to be saying, i was sort of shocked by his comments because he seemed, i didnt hear optimism in his voice. He did not seem upbeat when he was addressing this. I expect him to be the quarterback, the guy saying we can fix this. We can make it better. Im going to lead this this will be the next two years final two years of my administration will be stopping this very kind of thing. Why didnt we hear that. It is hard to be upbeat when youre looking at pictures, live pictures on television. I will say the new attorney general loretta lynch, the statement she put out i thought was strong and sensible but what i heard from the president today, one of the things that he said really bothered me, he tried to turn this into partisan football issue, only republicans in congress could pass my agenda, could work on some of these issues. Excuse me, his agenda, his agenda has been rooted in baltimore politics. Has ruled the day in that city for decades. The idea that more government more spending is what that city needs to, you know, for its salvation is insulting on its face to bring up partisan politics in that context. Guy is exactly right. I read an article, who is the owner of orioles. Peter gerri cant help you there. Had this article, because of free trade that weve lost all the jobs in baltimore which is ridiculous. The issue is very simple. Whats wrong with these communities . There is no fathers. The schools are terrible. There is crime. These are basic problems that could be solved if somebody would step up. Gerri on that score you agree with the president. Who said that, you know that people are impoverished. Parents cant do right by their kids. You guys agree. I agree with that. Just what we do about it, is completely gerri totally different. Were lacking leadership. In ferguson missouri, so the Justice Department goes in and says, no the actions of the officer involved, they are not criminal. Okay, but there has been historic sense of the brutality. Yet there is no mornmonitor comes in from the civil rights department. There is no further involvement of the Justice Department in the system. Were pointing out problem then well walk away . This is really set up all of these things because like a tinderbox. One spark and you will have these types of reactions. Why arent we being proactive as a nation to show that leadership . We need enterprise zones in these areas. We need school choice. We need crime control. Basics gerri i will disagree with you a little bit here. All right. Gerri what i will say is this you dont wait for Economic Opportunity to come to you. You go to Economic Opportunity if you know what youre doing. Ive seen people do this i seen immigrants to this country do this. Thats true. Gerri my family. If it is not coming to you, you have to get up off your keister. That is what people in detroit did. They left. Gerri i want you to hear some sound from last night. Because a councilman had something to say i thought was particularly interesting on this point. Here is councilman from our coverage last night during the wake of the riots. Violence is wrong. That is never acceptable. Understanding that there is a symptom of something that is going on here. What im trying to articulate to you, we look at communities like this in urban america, lack of education, lack of commercial development. Lack of opportunities, social economics of it. It has nothing to do with west baltimore or this particular corner balt more. This could erupt anywhere in socially economically deprived america. Gerri guy what do you say . Is it socially deprived economic america as councilman says . Do we have to go to root causes here . What are the root causes . No i think that is definitely a part of it. He talked about the ability for Community Development or for communities to develop themselves. Goes back to what you were talking about, gerri selfreliance get being a job employment. Those things are much, much harder when there are riots and looting. That is so hard to watch when youre looking at your tv screen. These are communities already struggling. To have business chased away by this sort of lawlessness . It does not make the opportunity to get a job and to reach potential any easier for people who are already struggling and underserved and are born in a tougher situation than a lot of other people. Guy the residents of these areas are the people actually victims. Yes. Gerri one second. One caution caution nair cautionary note. We should avoid to ascribing all violence in baltimore. Were looking at intelligence in law enforcement. There rin city gators. Right. Radicals who have taken this as opportunity to go in there and cause everything to come up. Gerri it was a lost high school students. A lot of young people. A lot of kids. Gerri i will have to go. Thanks for coming on tonight. Thank you for your time. Here is the question tonight, should the Baltimore Mayor do more to protect Small Business . Log on to gerriwillis. Com to vote. I will share the results of tonights show. We have a lot more to company. The latest company jumping on the antibiotic bandwagon. Is turbotax to blame if your identity is stolen and false tax returns are filed. Some say yes. Well tell what you the plaintiffs lawyer says. Send me an email to our website, gerriwillis. Com. Well be right back. You total your brand new car. Nobodys hurt,but there will still be pain. It comes when your Insurance Company says theyll only pay threequarters of what it takes to replace it. What are you supposed to do, drive threequarters of a car . Now if you had Liberty Mutual new car replacement, youd get your whole car back. I guess they dont want you driving around on three wheels. Smart. With Liberty Mutual new car replacement, well replace the full value of your car. See Car Insurance in a whole new light. Liberty mutual insurance. Gerri well maker of Online Software turbotax has been slapped with a lawsuit over identity theft. The suit says intuit failed to take necessary precautions to protect their customers Sensitive Information. Here with more, a lawyer representing the plaintiffs suing intuit. Thanks for coming on to the show tonight richard. It is good to have you here. Weve been reporting on this story quite a bit. We relied even on whistleblowers to tell us about the reaction over at intuit and what has been going on but my question for you tonight shouldnt you also be suing the irs . Dont they have problems that are creating this issue . Well first of all, thanks for having me. My clients one of my clients miss diaz she provided her information, her most Sensitive Information to turbotax and trusted turbotax to take care of that information. And the, issue with the irs and the states, they picked up on the fraud. This is a matter of turbotax allowing the cyber criminals to get access to her information. This is not an issue, at least at this point, of the irs allowing the fraudulent returns to go through. Gerri so it take as community here for somebodys identity to be stolen via tax. In fact irs paid identity thieves 5. 2 billion in fraudulent refunds in 2013. The thinking as i understand it, richard, you can correct me if im not right, fraud artists are essentially hacking into peoples passwords on turbotax and lifts information that they can then use to put into the irs a fake tax return. Now the interesting thing about your case that Christine Diaz has not used turbotax four or five years. How can she have been harmed . How she was harmed the fraudulent, the cyber criminals, filed her returns through turbotax. So, the issue as to whether they took the password from somewhere else and came through turbotax is something we need to find out. What is certainly an equal, as credible theory is that turbotax was hacked and those filings went through not with the password of miss diaz. We dont know that. Turbotax has not been very forthcoming saying what the situation is. Gerri i can tell you what intuit is saying tonight because we told them we were having you on the show. They said we recognize the industrywide problem of tax fraud increased this tax season and our focus is playing our part in fighting it. As to the allegations we plan to defend ourselves vigorously in the appropriate forum. I assume you know, richard, whistleblowers basically maintained intuit has not done enough to protect their own customers. They dont do things like two factor identification with software because they think that will put off users and they dont want to use the service. Is there a better Standard Companies like intuit should be meeting here . Well i take it from a much more general standpoint at this point. The fact is, miss diaz should not provide her most Sensitive Information, her Social Security number her birth date all of that information and have turbotax or intuit allow it to go out. I am not the security expert. But the two whistleblowers are. They clearly werent adequately protecting the data. Gerri richard, thanks for coming on the show tonight. Appreciate your time. Thank you for having me. Gerri we have a fox business alert for you on the nfl the National Football league is giving up its taxexempt status starting with the 2015 fiscal year. No, they dont make any money do they . Roger goodell says all 32 teams pay taxes on income but the league makes 9 billion a year and has been classified a nonprofit curiously enough since 1942. That all comes crashing to an end. Later in the show about obamas pipedream about green energy is costing taxpayers billions. Tyson chicken the latest to get rid of antibiotics, but is this more pr than md . Son food in particular the biggest u. S. Industry producer will stop feeding chickens human antibiotics by 2011. With more on this, the senior officer for Pew Charitable trust antibiotic enhancement trust. Start with the basics. Why do the farmers use antibiotics in the first place . Antibiotics are used for a couple of Different Reasons. One is to treat sick animals what you would expect but that they are also used for preventing disease, controlling disease and g

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