tv FOX Business After the Bell FOX Business September 19, 2013 4:00pm-5:01pm EDT
>> new iphones tomorrow, you can buy them. people are sleeping outside of apple on fifth avenue. [closing bell ringing] david: big day for apple and pandora. liz: as the bells ring on wall street, and right there at the nasdaq where hsn and cosan with the charity involvement. where is your money? we have a little bit after red on the screen and a teeny bit of green. dow jones industrials pulling back although slightly after we saw a big move to the upside after the fed said no taper decision. s&p 500 down 3 points. tomorrow we have the triple-witching. it will be a volatile day but for now -- david: it is a volatile week. who knows what will happen tomorrow. who knows what will happen through the next hour. we'll take you first through the front page headlines to show you what made news. jpmorgan's "london whale" trading scandal is costing the bank $920 billion in penalties from u.s. and british regulators
and an admission of wrongdoing. liz: wells farring go, the largest u.s. mortgage lender, cuts 1100 people in the mortgage loan business because of lower demand for refi's amid higher interest rates. david: resale of homes rose to 6 1/2-year high in august. buyers lock r rushed to lock in mortgages before interest rates rose. liz: weekly jobless claims increased 15,000 to 309,000. the numbers may not reflect the true picture because of previous computer glitches. david: agile lant technologies is that how we pronounce it? liz: agile lant. david: agile lant. the company is surging after they said they will spin off slowing electronic unit to focus on health care unit. liz: the ceo who rejoined microsoft is set for a massive pay day of $25 million. the payout a.d. spends on the sale of nokia handset business
to the u.s. tech giant. "after the bell" starts right now. david: let's get to today's action. he says it is time for investors to add risk to the portfolio. we have alan at the cme. alan, you were not shocked by the fed decision. you say you weren't surprised at all. >> not at all. the fed played this perfectly. you may not agree they have done exactly what they wanted. performance out of the market they wanted. threshold issue is very specific. 2% on inflation and 6.5% on unemployment. why everybody thought they would change the rules i don't know. david: hold on a second. you gave a half a percentage point on unemployment. they said 7%. >> 6.5. david: that's what they said back in july. >> okay, i'm pretty sure it was 6.5 anyways we're not there. when we get there we'll start
thinking about it. anyways that is not as important. the market is on a strong trend. announcement of nothing but guess what? things continue to happen the way they are happening last four years, not so much yesterday. think about the lows that we saw in august. we've gone straight up since then. gone up 6%. i think there is lot more optimism. the vix is nowhere near the lows of the year. we're not getting any complacency. i think there are a lot of positive opportunities still left. liz: christian is still bullish. you say now is the time to add to the portfolio. i hope you were saying a couple weeks ago when people were skiddish and nervous too? >> important to continue to be long-term even with this on again, off again, tapering talk because we don't know when that is going to happen. we know it is going to happen but we just don't know when. for now risk is on. we saw it with new highs yesterday. today i think there is digestion going on but going forward i think there continues to be a lot of bullishness for investors. david: we are see, christian, a
rise in interest rates despite the entire fed policy is meant to keep interest rates down. is there -- different people say it may go up, it may go down but how do you play the volatility with interest rates? >> one area is play it safer by looking lower duration income investments f you're looking at bond portfolio one of the ways to measure risks if interest rates change and go upward look at duration. duration is measured in years. look for invests with lower duration. david: there is etfs, i shares floating rate bond etf, right? >> that's right. that is a great floating rate etf from i shares. we have a etf, yyy, has a duration of 1.3 years. there are plenty of options for investors. liz: this is very valuable advice to people. there are ways to play things other than the obvious let's go long on german stocks or what have you. as we look, here is the yyy. it has been volatile. it is lower and certainly not at its highs of the year. do you expect this will start to
move and at what point? >> this is income-producing asset that has 60% equities. it actually should benefit as the equity market continues to rise. liz: okay. >> fund itself has been out since june. some of the chart that goes before that was a previous fund that was actually an oil sand product, that was invested in canadian companies. so in terms of the yield shares product its main goal is to give income to equities and current direction is over 9%. david: alan, we may not know where interest rates go tomorrow or even a month but we do know the dollar will get weaker based on what the fed did. that means it will be easier for exporters to sell their stuff abroad. are there any plays in the export market as a result of that? >> well i think the market in general. i think that helps out the stock market. you've got to understand, the stock market had the surge against a headwind of strong dollar. the dollar was 2 1/2 years highs this summer. seeing yield go back to 1.34.
now maybe 1.36. above 1.36 was the february high. then we could see 1.40. that helps exports and multinational corporation. that could be a another catalyst for the stock market in the big, big picture. table turned in the dollar. even though people are discussing about money printing the dollar has remained strong. as cleanest dirty shirt of all the currencies. that could change the table as we look further here. to get back to interest rates, let's put interest rates in perspective. interest rates right now in the 10-year note, yield on 10-year note well approach 3%, backed off it right now, these yields right now are still at the lowest level we've been over the last 20 years with last year being only exception of 10-year yield. david: alan, the point is direct they are going. >> 5 basis points could mean anything. david: the question whether they will go back on that route no matter what the fed does. that's what we're worried about. >> there rates are going to go
up. we all agree to that. just a matter of when but the beauty of this way it happened is, long-term yields have been determined by the marketplace, not by what the fed is doing. the marketplace priced in optimism. that is why we went to 3%. things are getting better not only here by globally. liz: we like better. christian what would you avoid? since you are bullish generally on the markets and opportunity what would you stay away from right now? >> sure. i think areas that maybe aren't as strong as they should be based on hearing bernanke's concern about the actual data he is seeing economically. i'm concerned about consumer stocks. i don't on if the recovery is being felt widespread. so i'm concerned for consumer, traditional consumer stocks. secondly, i just don't believe that long duration bond are the way to go. i think you're going to have a day of reckoning, may not be today. it wasn't yesterday. but at some point when rates start to rise, and they will, that will be not a good thing for those who hold bonds that are long-term.
unless they hold them to maturity, 10, 15, 30 years out. liz: i was going to say what is longest maturity you go with? is 10-year and five and two? >> that ace great idea. i think laddering your portfolio would be good and even one to two to five years out. even trying to keep that interest rate risk minimized by not having bond going farther out into the future than five to 10 years. david: bet way, you're a contrarian christian. i like that. i'm not a big fan of solar stocks but you are, why? >> yeah. solar has had a great this year. launched first solar etf a few years ago, tan. up 90%. some is based off the fact we have a lot of concerns about energy security. david: true. >> in the middle east and pricing on some of the technology is going downwards. so that is bullish for the stocks. david: christian magoon, alan, thank you very much. alan we'll check in with you when the s&p futures close in just a couple minutes. the federal reserve blinked and investors rejoiced. does the taper surprise raise
new questions about the central bank and its role at the heart of our financial system? we'll ask former bush white house economic advisor glenn hubbard. liz: also the deals keep robbing in for groupon and the stock's been surging but it is the daily business a done deal in the long term? maybe not. coming up we're finding out how and whether groupon can stay relevant. david: you still use those groupon coupons. liz: no. david: i do every now and then that takes us to today's facebook question. we're asking what is the best daily deal site you use and why? of course there is a lot of competition for groupon. log on to facebook.com/afterthebell. tell us what you think. ♪ [ male announcer] surprise -- you're having triplets.
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liz: shares of furnishing store operator pier 1 imports tumbling today 2308ing terrible irk is earnings. we head -- second-quarter earnings. we head nicole petallides on the floor of the new york stock exchange to talk ab wicker and candle problems here. >> they talk about the wicker furniture. pier 1 have revolve things in the store yet they had a tough, tough quarter. earnings dropped 32%. it's a home furnishings retailer. they saw, maybe some marketing problems, they themselves note
this. they saw less traffic in the stores, right? you need people walking around in the stores to buy something. so with less traffic in the stores that really hit their numbers overall. they also saw weaker margins and as a result of this latest quarter, liz and dave, they had to lower their full-year numbers and the stock really reflected that today, down about 14%. tough, tough day for pier 1. we'll see if it get as chance to bounce back or if they change their marketing style. back to you. liz: nicole, thank you very much. david: while gold is rallying in the wake of the federal reserve's decision not to taper big-time, oil is falling on concerns about energy demand. let's ask to alan in the pits of the cme and our own sandy smith. sandra your my touchstone of all things happening with oil and gold. what is happening with oil? is this continuing down move? >> oil is reflecting the fundamentals in that market now and we just got a report that shows there was less oil consumed last month and at the
same time production coming out of libya has increased. so there is certainly fundamentals that are warranting lower prices there but we're still at about $106 a barrel. so a lot of this is weak dollar. we saw it shoot up about $2.50 on the fed news yesterday. so there's just a couple of things that are pulling it both directions right now. liz: it sound like it, alan, and tomorrow you already referenced we have a witching situation. what are you expecting with the volatility? >> everyone is trying to digest what happened yesterday. if we look at the s&p right now it is back to unchanged. the bigger picture we had a0-point selloff in august. when we made new highs, technically speaking, add 80 points, 1790 is the upside target. looks like the trend is still intact. we didn't take much profit and vix shows positive sign for stocks to the upside. david: sandra, i talked to a gold trader who said yeah, it is up 60 bucks today. don't count it there.
even ben bernanke said eventually they have to stop qe. when 2 happens it will fall back to a thousand bucks an ounce. what do you hear about gold. >> sound like that person's sentiment reflects goldman sachs similar sentiment. i was laughing this morning, goldman sachs put out a note basically saying, hold on, wait, near term maybe there is some he risk gold will go higher here based on the fed policy last week they came out with a big call for gold to fall to $1050 a troy ounce. they got caught backwards in the surprise move by the fed. they're calling long term for the selloff to it $1,000 in gold. like your friend, dave, gold could go higher than here. it is at 13 -- 1356. david: that is great stuff, sandy smith and alan, great stuff. liz: eye-popping up more than 9% after the company was upgraded to a buy at stiffle nicolaus.
the firm citing groupon's expansion efforts overseas, not here, overseas as a positive sign for the stock. is now the time to buy into the daily deal site? joining mee now, tom forte, telsey advisory group managing director and senior reserve analyst. after a jump like today people pile in. you should have come in when it was down. >> groupon over the last year or so they're really turning around the story and applying best practices to the u.s. to overseas operations where they had seen options. it is good news. the stock is once again relevant and they're doing a good job in the daily deals business especially in the u.s. liz: talk about the europe daily deals, are they accepting of them as americans seem to be? >> they are. daily deals overseas had been about 50% of groupon's revenue. they have had a pullback there. now it is more like 35 or 40%. liz: one of the biggest problems with groupon, they scaled up when it came to hiring. they hired a lot of salespeople.
you literally have to go to local businesses to ask them to join in. so they probably are hiring in europe then if they see opportunity here? >> definitely. the structurally small businesses have 49 employees or less. they focus on running the business, not on advertising. which is why groupon has a large sales force and one advantages of the large sales force. liz: okay. did you think that the stock move today was outsized? you're bullish on it. you have a $13 price target. so you've been bullish beforehand. you said, well there you are. >> the stock can be volatile and has big moves there is a lot of momentum now. basically again, applying the best practices for their u.s. business overseas will ultimately drive results there and drive the stock higher. liz: it is important as well to stress the time to get in on these things when people hate it. facebook is a perfect example when you're talking about social media but is groupon's business potentially as strong as some of the other companies out there? again there is living social.
they're not public but -- >> right. liz: they may very well decide to go public at some point. >> within the daily deal space especially in the u.s., groupon is the clear market leader. i agree with your sentiment when get in when sentiment is terrible. of the sentiment on groupon was pad a couple quarters ago. they started to show turn around in results. i think there is more upside from here. liz: they made an acquisition which is bullish news, side tour. these are travel tours. >> yep. liz: do you foresee more acquisitions? >> yes think of their acquisitions as ways to basically give them more inventory in the daily deal space including travel related products. >> haw how about grading the new ceo? he was a fill-in at the time there with ted leonsis. now he got the nod. >> permanent ceo. he has been there from the beginning. he is one of the cofounders. i think he is doing a great job. liz: what do you see for this company in the future? as you say they're the giant in the industry.
not like they would get snapped up unless they're snapped up by google or microsoft at some point. >> the way i thought about groupon for a long time they understand how challenging local market in the internet space. five years we'll talk about daily deals but talk more about purchases, groupon good, what they're doing in payments. they're basically positioning themselves to be local marketing partner of joyce for these businesses and i think gives them a long term. liz: how much does health or weakness of the economy affect groupon. >> helps and hurts them. to the extent you have more consumers looking for a deal that is beneficial. to the extent a fair amount of deals are discretionary in nature that could be a negative. liz: david uses it. david goes on there. david: i have to admit not so much as i used to because of competition. >> i used it recently. i got a great deal on gillette razor blades. think -- liz: razor blades. >> which you know is very expensive. that is the upside of gillette's business model. liz: hop on the website. check it out as we look at this.
again tom is bullish. he has the $13 price target. is it too expensive to jump into the stock? >> no. if you look at strategy which i think is very sound and look at early stage of rolling it out and i think the benefits are to come. i think there is more good news from groupon. liz: do you anticipate living social will go public at some point? >> if you asked mee that year ago i would say yes. now i'm not certain. liz: i would agree with that assessment because of how tough it is for groupon but maybe it's a management issue. >> if you look at daily deals market they had hyper-growth and growing pains. living social is doing a good job. you have a lot of venture cap companies exit the america contest. liz: we'll have you back. tom forte of the telsey group. david? david: good stuff, tom. glenn hubbard is one of the most influential economists of his generation. he is dean of the columbia business school. we'll ask him about the moves of the most powerful central bank
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david: time for a quick speed read of some of the day's other headlines. five stories, one minute of the first up, in less than 24 hours apple's ios 7 hit higher adoption rate than google's latest android operating system according to google's own analytics. compared to 26% of apple devices, running the new ios 7
system. lufthansa is announcing its biggest jet order ever. the european airline reached a $19 billion deal to buy 59 airbus and boeing wide body jets. the first of the new planes will be delivered in 2016. greece's jobless rate dropped for first time in four years. unemployment dropped slightly to 27.1% in the second quarter from 27.3% in the first. sony sets an ambitious target for the playstation 4. they are aiming to sell 5 million playstation 4 consoles worldwide by march. honda recalling vehicles due to a glitch in the airbag system. 342,000 odyssey minivans from the 2003-and 2004 model years and off thousand, acura mdxs from the 2004 model year. i had to get that even though i went over time. somebody might have one of those. liz: liz: facebook ceo mark
zuckerberg is in washington, d.c. for the first time in four years. he is there to push for immigration reform. david: jo ling kent is hire. i have to ask is he actually wearing the t-shirt into the white house? liz and i don't approve? >> in terms of style he put on a coat and tie, david and switched for a hoodie for an interview with the atlantic. he is meeting with all the power brokers on day two for his campaign on immigration reform. he was carrying a message from his fellow tech ceos. here is what he told the atlantic yesterday. >> this isn't a matter of trying to hire people instead of americans who are doing this we'll hire all of them. it is, the issue is that there aren't enough talented people we can bring into the country and, that is a real issue. that the people feel. >> zuckerberg is taking the same message across the hill. he met yesterday with senator chuck schumer. this afternoon he spoke with speaker boehner, eric cantor and other republicans about visa issues. the merits and demerits of the
senate bill and the house approach. this is all according to a source familiar with the meeting telling fox news this. he went to meet minority leader nancy pelosi and steny hoyer. they're in the meeting talking about immigration. he met with senate commerce chair jay rockefeller, who interestingly according to reports pressed zuckerberg on issues of facebook privacy and consumer prosection. in a spoons to that a facebook spokesperson said, mark is here to listen and learn around share about his perspective on the knowledge economy and immigration reform and number of issues members of congress are interested in. if zuckerberg appears to be happy mered on this trip it might be the fact that facebook's stock is steadily climbing the past couple weeks. he mentioned in his interview yesterday, revelations about government surveillance hurt users trust in internet companies. he added knowing more about those programs would help alleviate public concern.
liz, david. liz: all we're concerned he about he put on a shirt and tie. he looked great actually. very professional. thank you very much. yes, the stock looking much better. david: incredible. >> right. david: coming up, is the fed our last line of defense against next financial crisis? we'll talk to glenn hubbard, former chairman of the president's council of economics. currently the dean of the columbia business school. he has got very strong opinions. liz: as we head to a break, remember beanie-babys? how could you not if you were born this century? the creator the last century of the '90s, beanie-babies phenomenon, ty warner recently pled guilty to tax evasion an agreed to pay a 5$.5 million penalty. those toys were all the rage. some people thought they would make great investments. not so fast. look at some of 9 collection's current value. ♪ ♪
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top performing sectors. sales of existing homes hiting a six 1/2-year high in august as buyers tried to lock in cheap borrowing costs as rates rise. sales climbed 1.7.7% month over month. weekly jobless claims rising to 309,000 after falling to 294,000 the previous week. the fallout from computer glitches in two states last week have prevented california and nevada from fully reporting data. economists expected claims to rise to 330,000. david: the fed's decision not to pare back its bond-buying program even by a fraction just confirmed a lot of its critics that it is doing more harm than good but its unprecedented policy of trillion dollar bond purchases. here is ron paul. set fed's firmest critic on our show yesterday shortly after the fed's decision was announced. >> people now know in growing number, growing by leaps and bonds recognize that the fed doesn't give us nirvana.
doesn't give us perfect economies and can't do much now to get us out of them. liz: joining us now is glenn hubbard, dean of columbia business school and author of, ballots, the economics of great powers from ancient rome to modern america." also the former chairman of the council of economic advisors under president george w. bush. here he is. you have just written an article in "the atlantic", in essential a message only the fed can save us from issues we're in now. you heard from ron paul, the hedgage about the fed. >> i think the quantitative easing fed is doing has only modest effect on the economy. i don't think that is the big deal. the big deal would be getting the fed to focus on building up financial excesses that would require a change in its mandate. david: well, a lot of people say that it has adopted too many mandates. now it has adopted in addition to keeping the dollar stable, in
addition to keeping unemployment down, both of which it had questionable success at if any, it's added keeping the stock market happy to its mandates. do you think that is true? >> certainly seems as if there is a big interest in asset markets. what the fed needs to do is not targeting the stock market or any other asset market but try to say, can we spot the buildup of financial imbalances? if we had done a better job of that before the crisis we wouldn't have to spend so much cleaning up. david: what you mean by that specifically, stop speculative bubbles, right? >> just to pay attention, to identify. if it is not part of the mandate, the attention won't be paid. currently the fed has a mandate for inflation and employment. so if inflation isn't rising it is simply not going pay the attention to financial factors that it really should. liz: but you are not as critical. you seem to have a more, better understanding at least from the perspective of the federal reserve of the challenges they face. in fact in the@atlantic article,
we thought to get him on hire for the perspective, what we learned the fed can't easily clean up all these messes. however, how much weight do you put on the fed's shoulders when it comes to inflating bubbles? the fed didn't offer mortgages to people but alan greenspan certainly whipped up a frenzy when it came to very low interest rates for a very long time? >> there is no question public policy played a big role in building excesses and the federal reserve was part of that. we need to focus on before the fact, not just after the fact because we really can't clean this up. liz: do you see a bubble forming right now in any area that can be traced at least to the fed's behavior? >> well i think there is a risk that the froth we've seen in some asset markets and risk spreads is being driven by monetary policy. liz: are you saying housing? are you saying housing? >> housing i think certainly has, low interest rates helped housing come back but i do worry
if we try to reflate the economy by creating new bubbles that is not sustainable growth. david: let's talk more specifically what alan greenspan was saying yesterday, which was essential we'll not be paring back on qe, on printing money in order to buy bonds because the economy is not good enough. the economy has not stablized enough. unemployment has not come down enough. if the economy is so bad, then, then, what, indicator is the fed looking at to eventually exit this program, because it is so unprecedented to buy up that much government debt? >> you know it's a great question, yes, the recovery is tepid but i don't think the acceleration of quantitative easing is going to bring about a great recovery. we saw some positive benefits in the mortgage market but we've seen very little else in the real economy and if the fed couldn't taper now, when would it? david: professor, the fact is, what then will it take if we have, today we had some very positive figures from the
philadelphia fed about manufacturing. what is it going to take for the fed to exit if things are improving in, albeit in a very tepid way? >> well, that is the real question. the fed has tripped over its own communications this time. and, in, while the economy is tepid, it is improving. if the fed can't taper now, when can it? liz: well, exactly. and, what do you think is behind the psychology of not having done it? i guess, some people said maybe they panicked. but they're not, they're really looking what is going on there. they see this isn't an economy running on all cylinders, not even half. >> well i certainly agree the economy's weaker than the fed's repeatedly overly optimistic forecast. that i buy. but i just don't think monetary policy can fix this. we need a jolt from public policy but it would be better tax policy, regulatory policies, things the feds can't control. david: glenn hubbard, always a pleasure to see you. >> my pleasure. david: dean, good to see you, dean hubbard.
next we'll be hearing from someone who was inside federal reserve chairman ben bernanke's startling news conference yesterday asking some of the startling tough questions. if the bernanke punt will make it easier for the fed to wane the economy off the fed's easy money pattern. liz: the hopper, is the front and center of a massive legal battle. billions of dollars are at stake. this fight could reshape the entire media and television landscape. we'll bring you the very latest developments. they may change the things really move in this area in just a moment. ♪ this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thousand dollars. congratulations you are our one millionth customer.
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confused. is the economy really so bad to warrant a continuation of this extraordinary experiment in money creation, and how much more difficult will this delay make the final exit from the policy? joining me now by phone is the "wall street journal's" chief economics correspondent, jon hilsenrath who was at the fed's news conference yesterday. jon, a lot of people are asking this question but did you see it coming? >> well our reporting said they were on the fence. to tell you the truth i didn't know. very often before these meetings i have a good idea of what they are going to. in this case everyone i talked to before the meeting at the fed they hadn't made up their mind t was a really hard decision going into it. in the end i thought, well, maybe the fed would be led by the market and do what the market expects but bernanke said yesterday he is will do what is right for the economy and not what investors are telling him they want. david: also speculation about whether bernanke was going to make the transition for the next
fed chairman a little easier, particularly if it's janet yellen. any indication that's true? >> i think they have already got their hands full with just making these decisions about the economy and these policies let alone trying to gehman who is going to be the next chairman. so, and they, you know, a week ago it looked like larry summers was going to be the chairman. so i don't think, i don't think that played into it. david: all right. never looked that way to me by the way. i never thought it was going to be larry. >> yeah. david: the point is that yellen is, generally recognized as more accommodating. that's why they might have moved that way but you don't think so? >> you know, my joke to a colleague after the meeting was, it looked like janet yellen actually ran this meeting but that was a joke. it is ben bernanke's fed and, you know if she gets the job, she certainly isn't going to be anymore aggressive than he has been about pulling this back and hasn't been aggressive at all.
david: jon, a lot of traders based on yesterday's stock performance were ecstatic about this because easy money is what they like a lot of folks said, gee whiz, they changed their mind. they were giving clear signals throughout the summer beginning back in may they were in fact going to do something in september s that correct? >> well it is complicated. there's a lot of weird body language that is being read between the fed and the markets right now. it is true bernanke said back in may the fed could start pulling back over the next few meetings. he never said in september. he said in june it might be before the end of the year. david: we have the exact quote. i think we can put it up may 22nd, he said in the next few meetings we could take a step down in our pace of purchases. that's a direct quote. >> yeah, right. then, but he's always if you kept reading the quote i think it probably would have said it depends how the economy performs. the bottom line here is that, and i think this is where the
fed tied itself in a knot, the economy didn't live up to their expectations and you know what? in june it shouldn't have been too hard to figure out that the economy wasn't going to live up to the expectations because we already saw very slow growth in the first half of the year. if anything the fed should have seen ahead to the september forecast to say, you know what? we may be revising these forecasts down. david: jon, there was also a question whether it was freaked by the market reaction to this. >> yes, it was. david: and a question whether or not they bowed to the market doing what they did yesterday or not doing what they didn't do yesterday? >> there is this weird shadow boxing game going on. the answer is yes, they were freaked by the markets. they didn't like how much long-term interest rates went up and they wanted to pull it down. you could argue there are other ways to do that. but you know, they chose their, they made their bed, you know, now they will have to keep kind of explaining to people how to get out of it. david: okay are here's other
than who will be the next fed chairman, this is actually a more important question. when can the fed step back? when can they exit? back in june, june 19th, bernanke said he expects the fed to stop buying bond all together by the middle of 2014. does he have to revamp that schedule? >> he erased it yesterday. you know, he didn't mention that timetable and he said, you know, never tried to fix themselves to firm dates. they have said it is always been, dependent on the data. they have really tied themselves in a snot here because they have put out dates and unemployment rates and depends on the economy. it is confused people. david: jon, we have to leave it at that, i have to ask you, is it janet yellen? >> looks that way. but a week ago it looked like it was larry summers. david: not to me. >> i'll believe it when i see it. david: jon hilsenrath from the "wall street journal." thanks a lot. liz? liz: he is so right.
dish network's billionaire chairman charles livering again, he is one of the most aing aggressive players in a industry with massive egos. we'll tell you why everyone is fighting mad. you have to hear about that. forget about planes, trains, automobiles. we have a story of an astonishing new mode of transportation that has just broken a world record. details and names of its high-profile sponsors when we return. we'll ask you, would you do this thing? ♪ thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future...
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liz: viewers love it. dreamy for viewers but a nightmare for tv networks. dish network won a battle over its ad-zapping hopper technology. this is the third victory for dish many networks say they will fight on. david: how much longer is this battle going to be drawn out and could this be possibly a long shot win for the networks? dennis kneale has more. dennis? >> david, the hopper is much-feared boogeyman to the networks. let viewers watch a recorded program, skip all commercials the lifeblood of the entire television business. that is why the big broadcast
networks gone to court trying to harm the hopper, allegeing a new technology is violation of copyright law. but now dish win as round in federal court. a judge denying a request by disney abc to shut down the ad-skipping features at heart of the hopper. dish has won three court decisions against the nets in favor of the hopper that is good news for viewers who love to s&p ads. dish also lost a round in a separate case against cbs the federal judge in that fight ruling against dish's request that the court dismiss cbs's lawsuit aimed at letting the network bail out of its carriage deal with dish because so hurt by the betrayal posed by hopper. in the abc case the judge said this loss is a preliminary round. it vowed to continue to fight. the question is, is that a good idea? the networks sued another ad-skipping dvr out of business a decade ago but dish is far bigger rival. it is also a partner of the networks delivering their shows
to 14 million homes. in fact dish ceo charlie ergen is mounting this court fight even as dish negotiates a new carriage deal with disney and abc. the old deal ends in a month and this hopper fight is making the talks more difficult. but when will the networks learn? some of these guys are the same guys who took a lawsuit against the old vcr all the way to the supreme court and lost. instead of suing how about adapting, charge dish more for your programing, to offset any loss of advertiseing? or hey, how about making better ads that we actually want to watch because they're funny or touching or useful? i guess going to court though, is easier. liz and dave. david: always, always. when you have the million dollar lawyers on your payroll you want to use them. >> there you go. liz: but you can't stand in the way of innovation. this is just a pure example of it, dennis? >> you can't stop progress they said in muriel's wedding. david: kill all the lawyers is what shakespeare said. thanks, dennis.
coming up it is a case of a cat's paw. may be hard to belief but our feline friends could hold answers to some of the biggest questions about a brand new smartphone technology. liz: we'll bring you the answer to our facebook and twitter question about groupon and its recent surge in stock price. what is the best daily deal site you use and why? what do you like to buy on it? we're back in a moment. the ♪ [ phil ] when you have joint pain and stiffness...
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[ doctor ] enbrel, the number one biologic medicine help the gulf when we made recover and learn the gulf, bp from what happened so we could be a better, safer energy company. i can tell you - safety is at the heart of everything we do. we've added cutting-edge technology, like a new deepwater well cap and a state-of-the-art monitoring center, whe experts watch over all drilling activity twenty-four-seven. and we're sharing what we've learned, so we can all produce energy more safely. our commitment has never been stronger.
david: let's go "off the desk." ever since apple unveiled touch id sensors on its iphone people want to know how secure it will be and how much secure information your fingerprint could give away? a employee at techcrunch figured out a way to avoid concerns. involves a cat. it was posted and iphone touch i.d. can read and authenticate a tack paw print. don't have to share your fingerprint with your phone. only problem, it probably means your feline friend will have to become a purse cat. liz: pinch those paws. a dutch cyclist set a new record riding this. this is the velox-3. look at this thing. it reached 83 miles an hour on a closed road in battle mountain, nevada. was a world human powered speed
challenge. powered by humans t was developed by two universities in netherlands. the main sponsors, dutch post office. other sponsors were brunell, dsm company, based in amsterdam. that thing goes fast. david: if i were in amsterdam would i want to post office to fund -- liz: our post office funded lance. david: you ask us who you think the best daily deal site and why. will said groupon. i've seen a big increase and variety on the groupon good side of the business. liz: number one thing to batch tomorrow, you need to look at it closely, two speeches by federal reserve members, esther george, kansas city federal reserve bank president scheduled to speak on the economy. she was the lone disenter yesterday and james bullard, st. louis federal reserve president scheduled to speak on monetary policy. david: my money is on esther
george. hear from the dissident. why she was against let it be as it is policy the fed was about. liz: "money" with melissa francis is next. david: hope to see you tomorrow. tune in. it will be a busy day. liz: bye now. melissa: i'm melissa francis and here's what's "money" tonight. fox sits down with syria's bashar al-assad. he said he is ready to give up and destroy his chemical weapons. there is just one thing. he wants the u.s. to pay for it. will taxpayers forced to pick up the billion dollar tab? plus more than $2 trillion has been migrated across the u.s. going where it is treated best. which areas are bleeding red and which are swimming in green? the man with a visual presentation like you have never seen it before is here to break all the numbers down. and "who made money today?" he just scored more than $300 million. stay tuned to find out who it is. even when they say it is not it always about money.
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