tv FOX Business After the Bell FOX Business July 12, 2013 4:00pm-5:01pm EDT
4:00 pm
[closing bell rings] adam: athenahealth struck a deal. right? >> up 20% and certainly a big winner. liz: take a breath, everybody here on the friday. here we go. the bells close it down on wall street. look how stocks are finishing the day. dow jones industrials trying to eke out a gain. you have to watch the board, we're up, we're down as the trades settle, we'll see what happens. looks like the s&p is a winner up four points. russell 2000, up time after time, another all-time high. russell up 3.25 points. not bad for the small and mid-cap stocks. adam: that fire which broke out on a ethiopian airliner boeing 787. not good for bowing. prompting a temporary shut down at runways at heathrow. it involved a internal fire on the aircraft. nobody was on the plane. boeing's stock fell more than 4%
4:01 pm
on that news. liz: activist investor carl icahn we told you on "after the bell" he would up his bid for dell. he has. adding a warrant to it. adding value for shareholders would be 15.5a share, to $18 a share versus the dell offer which is at $13.65. adam: talking about reversal of fortune. media companies that own hulu decided not to sell the o.w.n. lie video site. the companies say they will maintain their stakes and recapitalize the company with 750 million bucks, a cash infusion. liz: china's finance minister says the country's economic growth rate will likely average 7% this year. that would be great for the u.s. that would not be good for china because it is below the 7.75% target. however the minister said the economy would not suffer a so-called, hard landing. adam: jpmorgan posted a 31% in second-quarter earnings as underwriting income increased
4:02 pm
and bond market trading revenue jumped. >> us airways shareholders voting to approve a merger with amr, giving them a 2% stake in the world's largest carrier. the $12.8 billion deal announced in february but now official, takes amr out of bankruptcy court protection. "after the bell" on this friday starts right now. adam: maybe friday but money sleeps for nobody. we want to get right to the action. we have jim lowell advisor, chief investment officer with three ways that you can play the market. joe cusack is in the pits of the cme. joe, good to see you. are you surprised what we have witnessed just in the last two days? the dow was down, actually, we're going to end positive on the dow today. who would have guessed this was going to happen? >> you know what? at this point nothing really surprises me. but i will tell you as a trader
4:03 pm
it has been difficult, getting up in this territory, it has been a tough trade. and so, with not moving, showing no fear. bulls not relinquishing any control at this stage. we sometimes scratch our heads at this but you just trade it. liz: i want everybody to look right below joe. you can sigh the dow eked out a gain of two points. what does that tell you? that is real resilience. earlier in the session we were up at 37 points but at one point we were down 50. so where does the psychology continue to flow from, that is more positive than negative and hey, we're not complaining? >> i mean here, let's look at the overall marketplace. we have, you know, a lot of cash and a lot of capital that is now moving, conspicuously moving we've seen the action in the bond market. it did pick up a little bit today. but there is money out there that has to go to work.
4:04 pm
it is looking at this market right now. it is the best place at this juncture to be participating but it is really hard at these lofty levels to get. adam: jim, i have to ask you. you heard joe talking about money put to work. will we see more money out of bond going into equities or is this market at a point we need to take a breather, take your profits? >> we're to the traders. we're long-term investors. we're looking for opportunities that materialize not just now but three years down the road. i think you find opportunities in the stock and bond market especially globally especially inside the eurozone where nobody wants to dip a toe. it is force of money, velocity of money. it is also the necessary long-term issue investors need to procapital gains in order to retire at some point down the road. liz: there are opportunities, aren't there? when you look at the landscape, tell us, forget tell us. show us the money beginning with sectors is the real opportunity in the next six months? >> i think the global consumer
4:05 pm
is exhibiting remarkable signs of strength as obviously the u.s. consumer. anything related to the consumer staples theme or the consumer discretionary spending theme i think likely will be a good investment now and year-end. i also think as i mentioned. europe, very beleaguered. nobody wants to touch it. we're looking for rubies in the rubble. a manager there jeff weiss, has a long term track record turning over stones and -- liz: what is in there, jim? >> what you're looking at is across the board, it's a large cap growth tilt and a heavy skew towards europe. 54% of his assets in europe. the rest between japan and the u.s. he is making a call on the strength of the established markets over the emerging markets he could clearly invest if he wanted to. we also continue to love health care. lower risk, higher return profile remains intact not just because of necessary demographic
4:06 pm
growth stories and globally but the emerging market demand for more health care services. whether i shares global health care, ixj. vanguard has a health care fund etf, vxt we like active managers in the space with vanguard and fidelity. three key areas of opportunity, consumer, health care and i think europe. adam: hey, joe, give me the argument why i should ignore what jim just said. do you like health care as much as he does or would you put your money elsewhere? >> i think jim brings up an excellent point, if you're out there investing you are going to diversify. great to have that component. if you're trading, three months ago, nice play. you keep that in your quiver. right now i'm not trading it. jim is looking from a long term perspective. a lot of traders at optionsxpress and schwab are doing same allocation on their own behalf and using options and etfs jim was mentioning and their funds. they're looking for more active
4:07 pm
point of view and they're getting in and out of optimal times, maybe before tops and maybe getting in, well after a bottom is formed but they're seeing great returns and actively managing it prude dentally. i it i that is what jim's saying over the long term with balanced portfolio. i'm saying active verily manage winners as you see them coming. liz: picking winners is super tough. jim what about fixed income? is there opportunity there? how do you see it? where are you finding rubbes in the rubble? >> there is significant opportunities across the fixed income board, probably not in long-term treasurys or anything longer term duration. liz: avoided those. >> i would definitely avoided those. the emerging market debt space which certainly delivered significant gains for us over the last several years is a space we're a little bit leery of now. we like global high income, domestic high income, chicken hearted ways to play the equity markets in conservative funds.
4:08 pm
adam: when you mentioned you would like, you know, dipping your toe into europe, shouldn't we be more cautious? they're in recession over there. how are they going to pull themselves out? >> well, sure, look, not only are they in recession in general but their unemployment rates keep going up. part and parcel i guess part of a socialist overlay but also a key concern but that kind of concern is driving good investors away and quality companies down. so if you have an active manager who knows how to go into that plays and fend off the fears and focus on the fundamentals, you're going to find some significant gains there. we think we have the right manager for the job. adam: jim lowell, joe cusick, we'll see you in a few minutes. jim, thank you very much. we'll have the s&p futures with joe in about five minutes. thank all. >> thanks. liz: you may have already booked your summer vacation but is now the time to book some profits for your portfolio? check into some hotel stocks? we're giving you our second half
4:09 pm
setup in the sector with a top analyst. that's next. adam: the russell 2,000 is hitting an all-time high for the fifth straight day and outperforming the major indices in the past month. we have three small cap names that can give you some big returns. we want to hear from you. jpmorgan and wells fargo reporting earnings today with both firms beating estimates. should you invest in financials as more big names get set to report next week? log on to facebook.com/afterthebell. we'll read your answeranswers later this hour. [ indistinct shouting ]
4:10 pm
4:11 pm
but with advair, i'm breathing better. so now i can help make this a great block party. ♪ [ male announce ] advair is clinically proven to help significantly improve lung function. unlike most copd medications, advair contains both an anti-inflammatory and a long-acting bronchodilator working together to help improve your lung function all day. advair won't replace fast-acting inhalers for sudden symptoms and should not bused more than twice a day. people with copd taking advair may have a higher chance of pneumonia. advair may incrse your risk of osteoporosis some eye prlems. tell your doctor if you have a heart condition
4:12 pm
or high blood pressure before taking advair. ask your doctor if including advair could help improve your lung function. [ male announcer ] advair diskus fluticasone propionate and salmeterol inhalation powder. get your firstrescription free and save on refills at advaircopd.com. adam: shares of fast-food chain wendy's got a boost today. we want to go back to nicole petallides on the floor of the new york stock exchange. what are they doing? >> take a look here. the shares hit a multiyear high today, this after a couple analysts talking about wendy's stock, up 5.7% today, for the shares of wendy's. year-to-date, there is look at it as well. also a winner. i note ad multiyear high. we talked about barclays wrote in its note to clients saying they have been meeting with wendy's management. they're liking what they are seeing. product pipeline looks good.
4:13 pm
marketing as well. product pipeline and marketing are the best they have seen in years for wendy's. great news, right? bmo upgrading wendy's to outperform. looking at margin expansion for the company. great news news for the fast-fod giant. >> all you have to know is have a softy on a hot day. liz: and taco salad. adam: thank you, nicole. liz: the s&p futures are closing. let's head back to joe kucik in the pits of the cme? a lot can happen between now and then? we have a lot of european date that that will be coming out. we want to focus on retail seas on monday morning. as far as the s&pes are concerned we're in lofty territories. as i said earlier the bulls have not real link wished control. we want to see if we get more momentum or volume to further spur this upside. otherwise i continue to expect we have this choppy trade we saw today. liz: good to see you, joe.
4:14 pm
have a good weekend. >> you too. adam: your summer travel plans may be booked but as we move into the second half of this year is it now the time to move into hotel stocks? liz: joining us for the hotel sector, will marks, managing director and senior research analyst for jmp securities. some of these have looked real iffy where some travel sites like priceline have taken off when it comes to the actual stock themselves. how do you pick your favorites in this sector? >> it's a little tricky, the group tends to trade together. all the stocks are up 11, 12% this year. but in my view you need to find stocks that aren't well-liked today. and so, that may sound crazy we look for sort of flawses how the market views the group and found what i think are going to be a few winners for the second half based on that. adam: one of them is starwood, right? what is it you like about starwood? 50% of their properties are outside the united states?
4:15 pm
wouldn't that be a bit after concern? you have a slowdown in asia and problems in europe? >> he really looked at that being priced in. i think asia is priced in. it is well-known growth will slow in asia but at the same time starwood has a huge pipeline, the biggest pipeline among hotel companies in asia in terms of new development. in europe, i think we're trending along the bottom. yes, there could be more downside and i think europe is having upside and starwood is better positioned there than any other competitor. liz: i really love how you put you look for companies where the market has a flawed outcome for them. you like real estate investment trusts as well. explain to people, that is little bit trickier, is it not? you're looking at great yields but you have to be careful? >> more leverage to the upside and more leverage to the downside. meaning real es straight investment trusts all they do is own properties.
4:16 pm
they don't operate them. they hire operators like marriott and starwood to operate their hotels. there is more leverage, if things go wrong, the operator doesn't get hurt as much as the owner in the reit. adam: if you're playing a reit for what you get paid in the yield, which of these do you like? >> well, so, probably our favorite today, our favorite today, not probably, is rhyme man hospitality. this was this company called gaylord entertainment. it converted to a reit at the beginning of this year. ryman is four large convention hotels. there is no other company like it. the protection they pay out half of its cash flow as a dividend. it is about a 5.2% dividend yield i believe. there is plenty of room for upside because they're only paying out half their cash flow. i like that as profession. back to my earlier comment finding a company with flaws, rye man is a stock many people hate today, really focus is on
4:17 pm
group. group recovers later in a cycle. there have been a concern about group bookings being slow. we're starting to hear signs from channel checks that group bookings are picking up. ryman is looking for that and their hotels rooms are 2,000 in size and they're planning ahead. >> listen to what you just said. you done the homework and looking for bookings and things like conventions are starting to come back. when you hear him say ryman properties where it is now might not necessarily be where it is later. it could see some real revenue. talk about revpar, revenue per available room when it comes to the entire industry. is it looking a little better? -- revpar. >> second half could be slower. first half was up, revenue per available room, basically revenues at hotels. you don't hear people canceling their summer vacations the
4:18 pm
outlook is pretty good for the second half of the year. it may slow a little bit into the 5% range. the expectation for the year is five and 6% revpar growth. there is the expectation, next year, 2014 picks up a little bit and part of that is because maybe the greatest thing going on in the hotel sector almost no supply growth. adam: who would you avoided? when you say no supply growth, would you want to be targeting say one of these companies if they have plans for big construction or would you want to be careful of that given what is happening with revenue per room? >> well, i think when you got to do, most of the construction, i should say most, but a lot of it is actually new york, is probably the primarily the area of new construction and chicago is another but the u.s. construction levels of rooms, room supply growth, is expected to be, less than a percent this year. about a percent next year. historical averages are about 2.2%. so in general, the u.s. isn't really expanding that much in terms of room supply. so it looks pretty good. if you own a hotel in the u.s.,
4:19 pm
perhaps outside of certain areas of new york you're in really good shape for the next couple of years. adam: i was just thinking as you were doing all this for us you checked it out so people can check in. those stocks sound like a plan. all the best. >> thank you very much. thank you. liz: we need to get to boeing. this of course became a huge story this afternoon. boeing's stock having its worst day today in nearly two years. after a fire on a 787 dreamliner jet in london's heathrow airport broke out. we don't know if it had anything to do with the actual engines. we'll bring you the latest on the search for the cause of that fire. adam: small caps are outperforming s&p 500 and the dow. the russell hit a new all-time high for six straight days. where should investors buy? we have bigs and you want to hear them when we come back of. ♪
4:23 pm
adam: time for a quick speed read of some of the day's other headlines, five stories one minute. first up homeland security chief janet napolitano stepping down to become president of the university of california, the nation'sest largest public university civil. two administration officials say napolitano will exit the political stage september. the greater houston area was number one in the nation for exports in 2012, overtaking new york city. merchandise exports from houston totaled a record 110 billion bucks. microsoft is slashing the price of its surface tablet by $150 a report from the verge, says the 32 gigabyte tablet will be on tale for 349 bucks. netflix is reportedly in talks for another season of "arrested development." the
4:24 pm
shows's executive producer says the discussions are underway for a streaming service second service. amazon will publish come beings through jet city comics. they will be published on kindles. that is today's with plenty of time, speed read. liz: no buzzer. earlier this afternoon, ethiopian airlines 787 dreamliner caught fire at heathrow airport. while the runways are back up and running in london the cause of the fire is still unknown. >> we'll check in with jo to find out the latest and what is going on with boeing. jo. >> a tough week for boeing got tougher, the 787 dreamliner was sitting on the tarmac for more than eight years and the airline are investigating with all the parties concerned. boeing's stock tumbled as much as 6% on the news t slightly recovered closing down just over 4.6%. boeing was pretty mum on the
4:25 pm
issue, issuing only a short statement saying we have boeing personnel on the ground at heathrow. we're working to fully understand and address this. this after boeing returned the 787s to the skies several weeks ago after the problem with lithium-ion batteries. ge was quick to speak up today, saying the fire was not caused by their engines. according to ethiopian airlines website the company currently has four dreamliners in the fleet including today's plane and they have nine more on order with boeing. the ntsb is sending a representative to look at the problem as well. more problems in the sky just after that heathrow fire. a major british charter carrier, thompson airways, announced it ground ad dreamliner bound for florida, from manchester. they cited quote, technical issues. everyone got back safely but boeing definitely bruised, liz and adam. liz: although we had an analyst on last hour said this was a
4:26 pm
buying opportunity an same thing happened with the real battery problems. the stock has done pretty much a moon shot since then. thank you, jo ling. >> thank you. adam: the russell 2000 has been out outperforming the broader indices? uh-huh and if so where do you put your money to work? liz: we have names. this isn't something you don't hear too often, products made in the u.s. being snapped in china. total reversal. coming up we're talking to one toy company's ceo who is taking the export fight back to china. snowed ♪ (announcer) scottrade knows our clients trade
4:28 pm
and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company." why let erectile dysfunction get in your way? talk to your doctor about viagra. ask if your heart is healthy enough for sex.
4:29 pm
do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushg, upset stomach, and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. this is the age of taking action. viagra. talk to your doctor. liz: time for a look at today's market drivers. did you see it? the dow and the s&p closed the week at record highs as all three major indices post weekly gains. nasdaq was the week's biggest gainer ending up 3%. financials and health care were the top performing sectors. gold didn't too badly. it closed lower. but the best weekly performance in two years. precious metal finished the week up 5.4%. >> >> the euro extending losses
4:30 pm
versus the u.s. dollar after fitch cut france's credit rating to aa-plus from aaa, finally. france has some real problems. it took them a while. the euro fell to an intraday low of 1.30 against the green back. adam. adam: sometimes big things can come in small packages. the russell 2000 hit all-time intraday high and six in a row and has been outperforming other u.s. indexes the last several months. now is the question, is it good time to get into small cap stocks? liz: according to barry randall, it is. his small cap tech fund is outperforming the russell 2000 which is no small feat. he is lear with some of his favorite small cap stocks. barry, i can not count how many times people have come on, starting three, four years ago, small cap rally is over. been going for 10 years. this thing, it is such a cliche to say the energizer bunny, my mother would say, don't say it but it is. the bunny is going on and on and
4:31 pm
on. how much longer does it have the energy to continue? >> well i think it still has some good legs to go. and, you bring up the time frame. i started hearing these think pieces about two years ago, people saying small caps were over and it was over anddever since then people have been renewing that promise but fact is small caps historically performed well versus large caps, just to putnam members to it in the last 10 years. s&p 500, large cap index gone up on annualized basis of 5.3% versus the russell 2000 which has gone up 8.1% on an annualized basis. the numbers support the ideas that small caps outperform historically. i don't think there is any reason to believe that will stop anytime soon. the risk -- i'm sorry, go ahead. adam: you were about to get into risk factor. that is what i want to ask you b people are comfortable what they're familiar with. average investors are comfortable with s&p 500 but what are risks if you want to
4:32 pm
look at something, over 8% return versus the s&p 500 you have to look at that so what are the risks? >> the risk for small cap in particular if you're invested in high equal small caps the risks come largely from outside, political risk, economic risk, headline risk. and so the goal when you're selecting stocks for a portfolio or for your individual investor to find high quality names that can endure some of that risk, headline risk, ups and downs and bounces from the market. as far as specific risk, obviously that is unique to any particular company. i could talk about that with some of my favorite names but -- liz: get to one. this is fascinating the one that we're going to start with, nic, which is egov, websites that they run for different states. i would think because we don't know how each individual state is going to be able to perform with tax revenues and still climbing out of recessionary unemployment rates, et cetera, you still believe that's a risk worth taking with egov?
4:33 pm
>> that's an excellent question, excellent point, liz. the think about egov that is unique, virtually all of their state customers, they run 30 of the 50 u.s. states web presence. so maine .gov, for example is run and operating by them. the primary risk is payment risk. the reality most of egov's business is on split payment businessp instead of collecting tax revenue and paying someone to build your website, what they do, collect fees based on whatever the website is used for. renew a fishing license or want to stay in state park to have to pay a fee, egov splits that money with state. so this sidesteps the usual funding problem for anything related to a state-operated business. so they have been doing this about 23 years. they're basically a monopoly. either the state does it themselves or they hire egov to do it. the growth opportunity for egov while they have 30 states they have only one of the top 10 most
4:34 pm
pop youlous states, texas. adam: what about, is it imax technologies? they're up 42% over the fifth weeks. do they make the stuff i touch when i use an ipad screen or stuff like that. >> you may be depending on the manufacturer of the tablet. they make driver chips, semiconductor chips that drive any kind of flat panel display. whether a large screen tv all the way down to something like google glass which they're reported to be designed into. you and i candies agree whether or not google glass will ever be a success but himax has a high customer list and generate a lost cash. despite the returns you just described the stock is not especially expensive at this time. moreover, recently earnings estimates going up for the company giving a me a the love confidence going forward. nothing is certain but a lot of signs are positive for himax right now. liz: let me get to your last pick, tetk.
4:35 pm
this is opportunity for the environmental people who are looking to do sort of green things but talk about this name. it is far from its 52-week high, unlike egov which is close to its 52-week high. >> true. tetra is in the business largely of engineering and remediation when it comes to environmental issues. states will employ ttek to clean up and remediate brownfield sites or do engineering work in preparation for things like fracking or other types of drilling. so the large, megatrend that is going on with fracking and horizontal drilling and so on favors tetra. their recent difficulties are the result of external issues. specifically the u.s. government is engaged in a little bit of with them as it relates to payables. the payables are not in dispute. the canadian operations run afoul into smaller issues there
4:36 pm
overall the trend is intact with tetradespite these recent issues. adam: bayry randall, great to have you here. thanks for the comments on those picks. >> you're welcome. liz: we'll put his picks up on facebook.com/afterthebell. american stores are filled to the brim with toys made in china but how about a company trying to reverse that tide and sell u.s.-made toys to chinese people? that is exactly what konx ceo is doing. the ceo joins us with his latest full out effort to do so. senator elizabeth warren and some other senators want to go back to the future with bank regulation. it has spark ad fire of protests from guess who, the banks. but we'll be right back. ♪
4:37 pm
if you've got it, you know howe and man, you know how that feels. copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment that helps open my obstructed airwayfor a full 24 hours. you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vion changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. does breathing with copd weigh you down?
4:39 pm
>> i'm jo ling kent with your fox business brief. after a choppy trading day down on wall street it was a sea of green at the closing bell. all three major indices are also higher for the week. at the closing bell the dow finished three points up. how well do you think the u.s. tax system holds up against other countrys? not as well as you might think. it came in 94th out of 100 on tax attractiveness right below zimbabwe. wal-mart is putting out the twinkie he welcome mat a few days early. they return nationwide monday but available today at about 1600 wal-mart stores. 3,000 locations are expected to become stocked on sunday. upon the request new owners of hostess will freeze twinkies for 10% of the its retailer to extend its shelf life. keep in mind twinkies already
4:40 pm
have a shelf life of 45 days. that is the latest from the fox business, giving you the power to prosper. so we could be a better, safer energy company. i've been with bp for 24 years. i was partf the am that helped deliver on our commitments to the gulf - and i can tell you, safety is at the heart of everything we do. we've added cutting-edge safety equipment and technology, like a new deepwater wl cap and a state-of-the-art monitoring center, where experts watch over all oudrilling activity, twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. safety is a vital part of bp's commitment to america - and to the nearly 25000 peopleho work withs here. we invest more in the u.s. than anywhere else in the world. over fifty-five billion dollars here in the last five years - making bp america's largest energy investor. our commitment has never been stronger.
4:41 pm
liz: i know this is not going to shock anybody. china dominates the global toy market. really? last year, u.s. toy imports totaled $33.5 billion. that is 3 times the amount of toy exports. what an unbalanced situation, right? could this tide ever be reversed. one toy manufacturer, kinex is trying. earlier this year it brought nearly all of its manufacturing back to the u.s. from china. now it has signed deals to export its products that it is making here to china. with us now is the guy who is doing it. kinex's ceo and president. good to have you back. we now really love the story because it turns on its head conventional wisdom all toys are made in china and sold to people here in the u.s. what in the end made you make
4:42 pm
this decision. because in the end you're a businessman and you will not do something stupid because the principle of it? >> thank you very much, liz. i'm glad to bring this story to you. we look around the world, china has a growing affluent community and growing middle class cohort as well. for us to grow internationally which is part of our building worlds kids love strategy, kids love all the planet, 150 million live in the u.s. but many live in china. let's bring the great products we make over there over here. liz: what do the kids like? you make certain building toys and other products related to, say, for example, angry birds and super mario. >> exactly. when we think about the chinese marketplace the most downloaded app in china is angry birds. we're the exclusive provider of angry birds building sets. nintendo is used by hundreds of millions of people in china today. we're only ones bring you nintendo building sets and
4:43 pm
zombies with which is down lloyd ad couple hundred million times in china. that is consistent with our building and manufacturing strategy. it is working out nicely for juice fascinating children of all different cultures keep liking the sail darn thing, don't they? >> they are. liz: how you make it here, let's talk about the cost you found here versus making something in china? >> what we found is that, it is actually, we're able to do things better here. we invested in a lot of automation and efficiency. having a shorter supply chain we're faster to go to market and make things for less than they cost bringing everything across the stretched supply chain. so we have the really the lowest prices in the industry. our things are on sale for wal-mart and target here. obviously we couldn't do that if we weren't hitting right price points. we are able to do that and export those things at attractive price points to international markets as well. liz: one of the things you decided to do get your product
4:44 pm
in the hand of chinese consume, you're listed on t-mall, correct? >> yes. they're used by 600 million people a day in china. it is the largest e-commerce platform in the country. it is really combination of sort of amazon and ebay together if you can envision it that way in china. go direct to the consumer in that way with partners with export now makes for a very powerful combination to go right to where the audience is and deliver great products made here over there. liz: i will tell you something that happened recently my little girl at camp, e-mails me, they're not allowed to e-mail, no electronics -- >> i'm sure she didn't really do it. liz: let me tell you, she wanted something called the rainbow loom. i hear another person at completely different camp, i need the rainbow loom. most important not to be where kid are today but where they're going to be. what is the next top trend in toys you're jumping on that you believe chinese children are going to absolutely love? >> you know, in terms of trend i
4:45 pm
do see a fair amount of stuff happening beyond rainbow loom, we bought one yesterday as well. we made our first bracelets. not wearing one but made bracelets the other day. liz: all right. >> we see the digital world being brought to real life as a continuing trend. what i think you will start to see multiplayer games brought to life in the real world. things on xbox now will be going forward and i see a good thing happening frankly with nerf and outdoor toys. there is a lot of nerf things on boys an girls and "hunger games" and other related patterns. i think you will see them in china. these movies have gone global. the reason we're successful with global ip partners an hasbro will be successful as well because of trend they take advantage of. liz: the company is called knex, bringing manufacturing here to the u.s. and selling in china. good luck to you. >> thanks very much. always great to be with you. liz: the president over at knex. adam: do you remember the toys?
4:46 pm
liz: i love baby trillions with long hair. trillions? adam: patrols? liz: remember kittles. adam: have the sat racers you would pull? a thing you would pull. liz: my brother brook had it. we're very old. adam: big banks facing heat from high-profile senators who want to bring back a law dating all the way back to the 19 '30s. we'll tell you all about it next. liz: astronomers make a remarkable discovery in deep space. it has something in common with planet earth. you have to hear this story straight ahead. ♪ you make a great team. it's been that way since e day you met. but your erectile sfunction - itld be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you cabe more confident in your ability to be ready.
4:47 pm
and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequent or urgently. tell your doctor about all your medical contions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cae unsaf drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immedteedical hel for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. everybody has different ideas, goals, appetite for risk. you can't say 'one size fits all'. it dsn't. that's crazy. we're allally different. ishares core. etf building blocks for your personaliz portfolio.
4:48 pm
4:50 pm
liz: bipartisan group of u.s. senators sparked a pretty significant controversy introducing a bill to revive the now dormant 1933 enacted glass-steagall act. that law forced banks to separate their commercial and investment banking operations, in essence to protect depositors. adam: protect depositors and also taxpayers. peter barnes joins us live from capitol hill with more on this, peter. and you got the interview with
4:51 pm
elizabeth warren? >> that's right, adam an liz. this was a bipartisan effort led by senator elizabeth warren, progressive democrat from massachusetts and teamed up with senator john mccain, conservative republican from arizona, former presidential candidate as well. they want to see this back. it was repealed, glass-steagall was repealed in the clinton administration in 1999. considered to be outdated but the two senators now believe that the 2008 financial crisis was caused in part by a lack of division between commercial banking operations of u.s. banks and domestic side and getting involved in derivatives and credit default swaps and all that stuff. we asked senator warren about this morning, critics are already saying, wasn't the commercial banks that got in trouble in 2008. it was the aigs,
4:52 pm
bear stearnss, fannies and freddies. here was her response? >> the companies we bailed out were citibank, bank of america, wells fargo. those are the once who got the big tarp money. too big to fail is something that will take a lot of pieces to solve it. i don't kid myself on that. dodd-frank is part of that. it dialed some. risk out. system. we're getting higher capital requirements which i think is really ggod but the point is, it takes more. and, what this is about is one more way to bring down the size off the largest integrated financial institution, so the risky part is separated from what should be the boring part. >> you can imagine big banks and wall street firms are not too thrilled with this. the financial services roundtable among others said dodd-frank regulation, that's enough. okay? also want to mention a little
4:53 pm
bit, do a little promotion here. we've been following everything happening at the fed as you know. all the comments there. we have an exclusive interview next tuesday with the head of the federal reserve bank of kansas city, esther george. she is a voting member of the fomc this year. she totally opposes all this quantity quantity. she has been a dissenter in all the votes this year. we'll talk to her. the first television interview with us next tuesday. liz: fascinating. great get there. thank you so much, peter barnes. adam: we've got some astonishing video of a human owed robot being -- humanoid robot being developed by the department of defense. it is no terminator but can do remarkable things. we'll tell you about it when we go "off the desk." ♪
4:57 pm
>> data from the hubble telescope shows that this planet is just like earth but that really think they have been common. the color comes from the atmosphere not water it but it rains malting glass. >> one alice could help rescue victims forever a national disaster they're challenging them to develop software to let them
4:58 pm
complete task in a disaster zone in the king go around any obstacles in its path. >> 24 hours from now i am sure our hearts will feel great also our legs will hurt us. we're trying to raise $50,000 for severely wounded veterans. thank you so much team fox business cheryl will swim and chris will run and i would like we are competing as a team at the triathlon to help build custom mortgage free holmes i have introduced you to veterans yet it is amazing is you can see how deserving they are but today the hon be he was riding in and attacked three
4:59 pm
people died he was blind lost a leg in multiple figures and his parents were told he would not make it but he did. look at this when we gave him his home in florida hnts cao they can care for the band piece said i just want to serve this country. there are so many tools that we need to help so i am hoping the you can donate. building homes for heroes. >> that is so great but before we get to the top it has to be the supermodels we have not seen this much to bush in this studio. [laughter] with the long-awaited duties in the closing bell last hour with liz claman.
5:00 pm
liz: next week ben bernanke testimony in front of the house financial services we will show it to life -- live >> i am melissa frances. zimbabwe has a better system than us. u.s. is almost dead last but it does not have to be this way. one word sharknado. is swallowed the whole internet last night. it is not as crazy as it sounds but it could solve a billion dollar problem the director is joining us and who made money today? the profits are in and stay tuned who is
84 Views
IN COLLECTIONS
FOX BusinessUploaded by TV Archive on
