Skip to main content

tv   FOX Business After the Bell  FOX Business  September 24, 2013 4:00pm-5:01pm EDT

4:00 pm
a big run. [closing bell ringing] david: a big run on that particular stock. not so much the rest of the market. we do see a bit of green with the nasdaq but all the other indices today do appear to be in the red. the dow significantly in the red. not triple-digit losses but close. actually we have a split decision. let's call it that anyway because we had a quarter percent rise in russell 2000. that is of course small and mid-size caps. dow and s&p down significantly. not disasterously so but we've got a lost action coming up including as we mentioned before that exclusive interview with the executive chairman of applied materials. stay with us. "after the bell" starts right now. david: clinton global initiatives annual meeting. liz, you spoke to the ceo of one of the most valuable and respected brands in the world,
4:01 pm
coca-cola. liz: who among us hasn't owned coca-cola at some point or another. there is nobody behind me because president clinton is about to be in the house. they're doing a massive security sweep here in midtown manhattan. we have many luminaries here. aside from bono, front man of u 2. we also have cheryl sandberg, chief financial officer of facebook. what do we have? mukhtar kent, the head of coca-cola. he was right here with just moments ago, talking about a bunch of things. first of all, david, he is very concerned about the global economy and people have a negative perception. he said deal with it. it is going to be a very slow slog of growth we need to find once again. he is looking everywhere on planet for growth and he finds it in africa. >> for the next five to 10 years africa will be a very fast-growing environment, macroeconomicly. why is that happening? because there is small increments of improvement in
4:02 pm
governance in africa, across the board. from north to south, all across subsahara africa. that is generating positive momentum in africa. we're investing over next 10 years in africa $12 billion. that is double what we invested in the last 10 years. so we're a big believer in africa and we're one of the largest employers on the continent. liz: he is also a believer in the united states and he says that this country and this government have got to figure out a way like business people do to compromise and make alliances and decisions so we can all move forward, hint, hint, to all the congressman inside the beltway and senators as well as we come up against the debt ceiling. president obama has entered the building we are told and we're just waiting for the security sweep to finish. he is expected to speak here at the clinton global initiative, coming up, david. as i send it back to you, stand by, we have more interviews
4:03 pm
coming up. >> we'll look forward. thanks, liz. treasury yields as we mentioned before to a six-week low as dow and s&p end in the road for the fourth day in a row. lincoln ellis, and we have the global x funds could found irand ceo and larry shover in the pits of the cme. larry, you're out west. we want to start with you. even when interest rates are down we're still fretting what happens with the fed. but you say there is no way to end, expect a conventional kind of exit from what the fed has been doing when you have such unconventional policies. >> no, that's exactly right. include last week when the fed came out and said, hey, we're not going to taper. to me this says this will be very unconventional. this will be very data dependent and therefore the markets not wholly concerned about it. we had some downdraft the last three or four days but nothing to really write home about.
4:04 pm
the market is apathetic, it is bored more than it is negative right now. so the treasury yields backing up a little bit to 2 and 5/8, whatever it happens to be, more than backing off of some drama we've seen. if you remember we talked about that for weeks, that this moving up to 3% was really drama of the unknown. now that the unknown is kind out of out of picture yields are starting to go back the way they are. david: scared the hell out of the markets. scared the hell out of fed. that is why they came back and went out of their way to assure the markets they would not raise rates. lincoln, did the fed mess up, because just about everybody said we knew they would not start the tapering now. frankly we don't believe them. but did they, lincoln, screw up and riding by the seat of their pants? >> if you take the football away as lucy has proverbally done to charlie brown for a certain
4:05 pm
period of time you introduce uncertainty into the market. larry is right. not only yields have come back in after a significant run since the may time period but we've seen equity risk premiums come in over the course of of the last three days. we would expect that to come in further, three to 5% over the course of the next three to four weeks as we begin to see third quarter earnings really flush through the system, margins come in and, future expectations about equity earnings really beginning to get repriced based on that kind of uncertainty that our own federal receive now introduced into the system. david: but, bruno, as important as the fed is to all investors, and it obviously the fed's decisions have a huge impact on investment, do you think they know what they're doing? >> they do know what they're doing. let's face it. they have been dealing for the last few years with a very delicate situation. david: let me push back for a second here, bruno. do you really think.
4:06 pm
that going into this last fed meeting they knew among themselves, we know the market wants to stay steady. i don't think they really knew what they were doing until they got into the meeting, do you? >> to begin with, it's a comedy. it is not one person deciding for the whole come economy. some people have certain opinion -- david: you have a slight accent, you said committee, not comedy. i would say it's a comedy as well. so go ahead. >> they certainly looked at the latest facts they had in front of them. they discussed them. they did see some uncertainty they had in front of them with regards to some of the congress issues we're dealing with and they decided we'll wait a little more. david: but larry, they're not facts. what they are dealing with presumptions, many of which are dead wrong, like growth figures, for example. they have been wrong about growth figures for more than a couple years now. >> yeah they have.
4:07 pm
dead wrong about growth figures. but the thing, i think they have been right about or surprised with is the fact that we've grown even with the fiscal restraints that we've had on us due to the higher tax rates, et cetera. so we are making baby steps. the fed i don't think is walking into a dark room. i think they're being very, very careful about easing with anything cutting back on tapering because they need to seat numbers to be more consistent in the future. david: lincoln, let me go to you with one market in particular that benefited last couple weeks when the fed is doing, that's emerging markets. they were really getting hammered over the summer. they have come back with avengance. do you think it is sustainable? >> look, easy money policy has been sort of mother's milk of the poor parts of the emerging economies being able to borrow at extremely low levels and strengthen balance sheets. do we think it is sustainable for long term? you have to distinguish between good and bad emerging economies.
4:08 pm
there are good emerging economies you want to look at, china, south korea, maybe brazil and russia but, you know, on the whole, you have to know that all equity markets, all fixed income markets are right now very fed-driven. very data dependent as larry suggested. i don't think anybody should be surprised. surprises me that ben bernanke or anybody at the federal reserve is surprise ad move north of 3% in the 10-year was beginning to affect the housing market or drop in employment participation rate was actually accelerateing a drop in the unemployment rate. these are very knowable, viewable, parts of a reconfiguring of fed policy -- david: so fed policy is definitely helping emergency markets. bruno, i beat up with you about the fed. i think you're dead wrong with them knowing what they're doing. i don't think they know about growth figures. i don't think they know about how they're hurting savers. i don't think they know about inflation. i think inflation is much more powerful concern of consumers
4:09 pm
than the fed thinks it is, but you were dead on with facebook. you've been saying this stock is being underestimated back when trading in the 20s. you now appear to be right. is there still time to buy into it? >> clearly social media stocks are a lot more fairly priced than they were couple months ago. we do see the businesses are actually going up because they're delivering against their business models. they're growing very, very rapidly on revenues and profitability. so yes, we do believe there's a lot of room to grow not only for facebook but more broadly for social media stocks. obviously we're excited to have twitter come to market fairly soon. david: right. quickly, lincoln, gold, are you buying into it at this level? >> i would not be buying into gold but gold miners might be interesting way to play it. they have diversified exposure to copper, nickel and other parts mining sector. david: gentlemen, good discussion. larry shover, we appreciate it as well. disney ceo bob iger sounded off earlier in the day about the
4:10 pm
secret sauce that kept the entertainment giant ahead of its rivals. what has kept bob iger ahead of his rivals inside the company? we'll we'll bring you details what making iger a winner in a moment. liz continues the special coverage from the clinton global initiative. liz, what do you have coming? >> i will bring awe fox business exclusive with the man at the center of what could be a transformational technology merger. applied materials executive chairman michael splinter telling us why his company is forming a global powerhouse with japanese rival tokyo electron. feverish, feverish acquisition here. david? david: sound like fun. also our fac twitter question deals with another sub jeeping we'll be -- subject we'll be dealing with, chrysler and its decision to file initial paperwork for a possible ipo would you invest in chrysler? have you driven a chrysler lately? they're very nice cars but would you invest in the company? a lost disagreements on that. log on to
4:11 pm let us know. ♪ [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ]'ll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪
4:12 pm
from td ameritrade. at od, whatever business you're in, that's the business we're in. with premium service like one of the best on-time delivery records and a low claims ratio, we do whatever it takes to make your business our business. od. helping the world keep promises. see who does good work and compare costs. it doesn't usually work that way with health care. but with unitedhealthcare, i get information on quality rated doctors, treatment options and estimates for how much i'll pay. that helps me, and my guys, make better decisions.
4:13 pm
i don't like guesses with my business, and definitely not with our health. innovations that work for you. that's health in numbers. unitedhealthcare. so ally bank really has no hidden fno hidden fees.accounts? it'just that i'm worried about you kn "hidden things." ok, why's that? well uhhh... hey daddy, what's your job? daddy's a uhh florist. are you really a florist? dad, why are there shovels in the trunk? there's no shovels in my trunk. i see shovels... you don't see no shovels. just am. well, it's true. at ally there are no hidden fees. not one. that's nice. no hidden fees, no worries. ally bank. your money needs an ally. david: shares of troubled cruise line operator carnival falling third quarter results. nicole petallides on floor of new york stock exchange. we kind of knew this was coming, nicole.
4:14 pm
>> they had kind of a tough year, david, so obvious. they had a tough year, giving forecast going forward of a possible loss. shares really reacted. they dropped 7 1/2%. i tapered the headline shares sink i started to think about some of the headlines including sinking ships and the like. they had a tough time over the last year, in comparison, they are to the downside, carnival cruise, over the last year-to-date, down about 6%, while royal caribbean is up, for example, about 13%. the latest quarter was a disappointment. they came in third quarter, profit fell to $1.20 a share to $1.71 a year earlier. under the umbrella, other names holland-america and costa cruise lines. david: nicole pet, thanks very much. it is adweek in new york, which is basically the super bowl for advertising executives. this year all the buzz is something called native advertising. where ad tries to blend in or
4:15 pm
mimic the medium which it appears. there's a brilliant new way to expand ad revenue is some people say or is this a threat to journalistic credibility? liz: a threat to journalistic credibility? oh, my gosh, we can't have that. fox business exclusive is the wonder factory founder. this is digital design firm that helped build the very first banner ad back in 1994. thank you so much for joining us. what a sort of visionary when it came to that. so the obviously question would really be, what is the next big thing as you address adweek? >> i think that is what they're talking about right now. it is native advertising. advertising created by advertisers meant to mimic the content that it sponsors. >> well, the problem is, and let me give you a specific example. in january the at -- "atlantic" magazine had within it a advertisement from church of scientology. not known as a friend of journalists in this nation or
4:16 pm
the world for that matter. it blended into the atlantic, and mimicked although had a little sign saying this is not part of the magazine, but advertising t mimicked look of an article about scientology in the atlantic that ticked off a lot of atlantic readers. they lost customers as a result i would guess? >> that is true with any form of innovation and technology. as an industry we have to learn what boundaries are. david: was that too far, the scientology ad? >> that was way too far, too far over the edge. "the atlantic" improved. and they're approaching native now. liz: joe, you know, it is liz. it is all about what makes us money when it comes to ads so how does this provide a better service than what we have had in the past? >> well, liz, if you look at digital advertising, and right now, native really focuses on digital advertising. advertisers have been focused on
4:17 pm
iab standard banner ads. consumers hate them. pricing is dropping. publishers are losing revenue as a result of banner advertising. so for right now, and also because consumers hate them, they go out of the way to avoid banner advertising. theoretically, if native advertising truly mimics the content it sponsors that means it is useful to readers. if it is useful to reader it is better for readers and better for publishers because it brings readers back because they have more content they love. and better for advertisers because they're out of the banner space into content space. david: we're talking about full disclosure. of. you created the banner ad back in 1949, right. >> i did. david: you're the man responsible. if you have complaints about the little banner ads clicking on to the website, this is the guy to call. >> there is lesson to be learned with the first banners? david: what are the lessons? >> early email, 15, 16 years ago, got 100% opening rates.
4:18 pm
banners had 44, 50% viewing rates, click-through rates. david: by the way that is extraordinary number, 50% of the people reading actually clicking on ad. >> we're a industry that tends to kill the goose that laid golden egg. you look at banner click through rates, 0.0%. we've gone over 15 years from 44%, to .02%. probably will happen with native. there is good native advertising done now. as publishers they can't create native to advertisers. they're turning reins over to advertising agencies and pr firms and giving them unfettered access to content management systems. so as a result there is no editorial oversight of the content that is apparing on some of these sites. david: liz? liz: well, joe, who does it the best? who do you look at and say, wow, they do it really well? these ads are not too invasive but they're enough the client will be happy when the somebody at least sees it and we can prove they got their eyeballs on
4:19 pm
it? >> you know, i just read an article, it is not a big example. there is a site called mental floss. dough second can is, dose second can i dos equis. he had editorial scrutiny on mental floss and equal to the content that mental floss usually hosts. editors gave you experience that would help it many become more interesting. one of native ads, how do you navigate by the stars. for dos equis who has the most interesting man in the world, if you're a person at a party who can talk how to navigate bit stars that is pretty interesting. i'm not saying it is scaled and worth a billion dollars but it is pretty good. david: joe, you're so calm and direct for an ad guy. most people think ad guys are kind of nervous. you make a lot of sense. joe, thanks very much for coming in. appreciate it. disney ceo bob iger gives fox business an inside look how
4:20 pm
he turned disney around with a string of highly successful mergers but what is the secret? what makes bob iger himself a successful businessman? our own dennis kneale knows. he will tell us in just a moment. also a family lunch box favorite is back. the iconic brand is rescued from the wreckage of hostess brands. i grew up with this stuff. we'll bring you details as soon as we return. ♪ she loves a lot of the same things you do.
4:21 pm
it's what you love about her. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms obph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe 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 immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision, or iyou have any allergic reactions such as rash, hives,
4:22 pm
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. how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into the 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪
4:23 pm
david: it is time for quick speed read of some of the day's
4:24 pm
other headlines. five stories in just one minute. first off smithed feel shareholders -- smithfield shareholders will sell its company to the chinese meat producer. toys "r" us will begin hiring this week and continue through december. wonder bread, we all know it and love it is back on store shelves after vanishing for nearly a year. flower foods bought wonder from hostess brands for $360 million after the company went out of business late last year. google expanding in silicon valley. the internet giant bought 435,000 square feet of office space. this is the company's largest land purchase so far this year. >> spotify continues to expand globally. music service launching turkey, greece, taiwan and argentina. it is available in 32 markets around the world. we go around the world in just one minute. that is today's "speed read."
4:25 pm
well, mergers in the media and entertainment business may be better known for their failures than for their successes but one company seems to get it right more often than not. walt disney. ceo bob iger sat down with our own dennis kneale with a wonderful, i kept emailing how good the interview was. that was good stuff. you were tough but not impolite. >> he is awfully good, articulate guest, isn't he, david? bob iger has been ceo of disney for eight years. his legacy is clear. this guy was smart enough to buy pixar, and marvel a lucas films "star wars." but he says the deals were not focused on content they create but on the talent they brought to the mouse house. >> one of the things great about pixar is the talent there had the ability when they became part of disney to run other parts of disney. >> yes. >> so for instance, john lasseter and ed campbell running disney animation from pixar,
4:26 pm
great example of that. we have taken key marvel executives given them more responsibility in disney. that goes a long way. >> why not do another big deal in that case? should disney buy electronic arts at $8 billion, netflix at 17 billion bucks? eiger says a big deal isn't likely but then he hedges his bets. >> near term we're not really looking at something the size of marvel, pixar or lucas for instance. but we, we typically don't discuss such things publicly anyway. >> so maybe. in the eight years that he has run disney the mouse has roared. disney's stock is up over 150% in that time frame. that is far more than other media titans. and more than triple the returns in the same time for the s&p 500 and the dow. david? >> you know, they have had some failures. and you mentioned two of them. lone ranger which is a famous one. >> yeah. >> you look at iger. that guy in himself is so successful. we know you explained why the company is successful. why is this man, bob iger, so
4:27 pm
successful? >> hollywood dismissed him 20 years ago as nothing but uncreative suit. iger basically succeeded because he has supreme self-confidence but without ego. doesn't make it by about himself. doesn't get threatened by advice what he thinks? he harassed for creative people in hollywood who originally dismissed him as not one of their own. >> very interesting guy. thank you very much, dennis kneale. kind of an interesting guy yourself. good to see you. >> all right. david: applied materials executive chairman michael splinter is one of the architects of a huge merger with japanese rival tokyo electron announced today. he will join us. this is a fox business exclusive, you do not want to miss. he will tell us what drove these two industry leaders to join forces. also chrysler's ipo. did you see this? it slowed down by the big fight between uaw and fiat. chrysler's co-owners. will this slow down investors enthusiasm for the revived car
4:28 pm
company? we'll find out coming up. ♪ thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below...
4:29 pm
to the finest comforts above. we're not simply saluting history... we're making it. [ male announcer ] now, taking care of things at home is just a tap away. ♪ introducing at&t digital life... ♪ ...personalized home security and automation... [ lock clicks ] ...that lets you be cloto home. that's so cool.
4:30 pm
[ male announcer ] get $100 in instant savings when you order digital life smart security. limited avlability in select markets. ♪ nice car. sure is. make a deal with me, kid, and you can have the car and everything that goes along with it. [ thunder crashes, tires squeal ] ♪ ♪ so, what do you say? thanks... but i tnk i got this. ♪ [ male announcer ] the all-new cla. starting at $29,900. david: take a quick look at today's market drivers. the dow and s&p extend their losing streak and nasdaq ends up in the green. industrials and consumer
4:31 pm
discretionary were the top performing sectors. consumer confidence falls as americans grow more concerned over jobs. consumer confidence index dropped to 79.7 in september from 81.8 the previous month. u.s. home prices continue to climb in july rising 12.4% compared to a year ago. the case-shiller 20 city index is up 1.8% from the previous month. well fiat and the united auto workers are playing hard ball as their kind of stepchild, chrysler, filed for an ipo without the two stepparents agreeing on the company's value. will investors be turned off seeing some same old union tactics and fights that got the car company in trouble in the first place? joining us is "morningstar" auto equity analyst rich higert. rich, thanks very much for being here. a lot of people see this and say, oh, my god we're back to the old days with fights between owners and union and management.
4:32 pm
is that true? >> sort of. this is a page from the old playbook where there's a fight goes on in the media but behind the scenes i think the two sides are negotiating. look on the one hand you have got the uaw viba trust that represents health care for retirees of the uaw. they have to maximize the value of assets that are in that trust because there will not be anything else coming into it. as more retirees come in and as health care costs go up the bills are going to go up. on the other side of the equation fiat management who needs to be good stewards of their capital and needs to optimize their investment in their capital. so, they don't want to pay too much for the chrysler stake. those two sides -- david: explain before we get too complex here. sergio marchionne, famous head of fiat he wants to take the company private because under the current terms, because of what we went through with the bailout and everything he is not allowed to feed all these losses
4:33 pm
that fiat has over in europe with the profits that chrysler has here in the united states. but if he took chrysler private, he would be able to do that. he could balance accounts better, right? >> not immediitely. there is still some covenants in place with the chrysler debt that prohibits cash flowing from north america back to europe. david: that's interesting. >> european, you know, the european side of the business, fiat, has many other assets that are still generating cash that offset the losses that are going on in europe right now. and as far as we're concerned, this is a very deeply-discounted stock and for investors who don't mind taking on the risk of a turn around situation, with a leveraged balance sheet, we think that this is a great value where it's at right now, trading six euros and change. eight euros on the u.s. adrs versus our fair value estimate of 14 euro as share or $19 a share on the adrs. david: okay, so the union, again they want the higher price
4:34 pm
because this is a one-shot deal for them to pay off their share for chrysler. they want 4.3 billion more or less, right? we say 5 billion but -- go ahead. >> yeah the union, the reports that i'm hearing are that the union wants 5 billion net or more on the total 41.5% stake. that's compared with, what we estimate the value of the stake to be worth at around 4.2 billion. david: okay. >> so we think, that you know, that there's reasonable expectations on the side of management to do some negotiating here. david: okay. rich, the final point is about us, the taxpayers. you know what? really ticked me off during all these auto bailouts, beside the fact that the gm bondholders were ripped off bit government is the fact that we gave about 40% for, in 20% tranches, we gave about 40% of chrysler to fiat.
4:35 pm
we just gave it to them. i understand it was in trade for their expertise, et cetera but basicallies that with our money put in the bailout for what became an italian car company. the taxpayers, have taxpayers lost out now? do we get any recompense when these sales go down? >> well the amounts that fiat borrowed from the government have all been paid back. david: but they didn't have borrow any money from the government for the first 40%. they got that for nothing. >> for the equity, actually it was 35%. david: all right. 35. >> for the equity that fiat got free of charge chrysler now has a viable entity which would not have been viable otherwise. david: right. but the, i understand that. and i, look i like chrysler cars. i've been driving them, durango is a terrific suv. i think they have done some, they are really putting out great products here but at the same time the taxpayer gets
4:36 pm
squat, right, from this deal? >> do we? i'm not, necessarily sure that's the case, david because you still have a viable entity developing and manufacturing cars in the united states. david: no, i understand. i'm talking about the dollar amount, a cut, a dollar amount from this deal, none of that goes to the u.s. taxpayer, correct? >> no, this deal is for the veba trust. the veba trust owns part of chrysler. david: gotcha. >> that it got in the bankruptcy. david: okay. >> so the proceeds from this deal go only to pay back the uaw. >> okay. rich, great to see you. thanks very much for coming in. >> all right. thank you. david: so is china ready to like facebook? we'll find out the details behind china's decision to possibly lift its total ban on social networking sites like facebook and twitter. liz? liz: and coming up next, i will have an exclusive live interview with a man who is in the focus
4:37 pm
of the cross-hairs right now of big acquisitions. mike splinter, applied materials executive chairman will be here to discuss the ground-breaking decision to merge with one of amat's biggest rivals. will the antitrust regulators go for this one? we'll ask him much more about this $9 billion deal live coming up next. stay tuned. ♪ the american dream is of a better future, a confident retirement. those dreams, there's just no way we're going to let them die. ♪ like they helped millions of others. by listening. planning. working one on one. that's what ameriprise financial does. that's what they can do with you. that's how ameriprise puts more within reach. ♪ ♪ [ male announcer ] 1.21 gigawatts.
4:38 pm
today, that's easy. ge is revolutioning pow. supercharging turbines with advanced hardware and innovative software. using data predictively to help power entire cities. so the turbines of today... will power us all... into the future. ♪
4:39 pm
maestro of project management. baron of the build-out.
4:40 pm
you need a permit... to be this awesome. and from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrft. (vo) meee-ow, business pro. meee-ow. go national. go like a pro. >> okay, so two weeks ago during our "3 days in the valley" coverage in silicon valley, had you really been listening you might have heard a tiny clue about the next big deal involving semiconductors, the brains that are inside almost all of our personal electronics. listen. >> well what's happening right now is really a war for mobility and i think you can see it yesterday and in apple's announcement and earlier in samsung's announcement. it is really about mobility, giving the low power, high
4:41 pm
performance chips. and what the really is triggering that is the materials inside the chips. liz: it is all about mobile and mike sprinter -- splinter was trying to say perhaps we'll be bigger and bigger in mobile today and the news breaks. this deal in a sector that deals in tiny semiconductors. mike splinter's applied materials snapping up. tokyo electron, $9 billion deal. mike splinter joining us in a fox business exclusive. you have a good poker face. you did not lead on there was any kind of acquisition, even analysts, mike, we called a bun of them today, said total surprise. how did you pull it off? >> you can imagine it was hard work but very, very few people can know something like this, liz. we were working closely with the tokyo electron people the last
4:42 pm
few months to really create this merger of equals if you will. liz: what can you do together that you couldn't do apart? what will people see, especially shareholders -- by the way the stock of applied materials jumping today. investors really like the dial, mike. what will they see coming up in the future that makes it an even more valuable company to own? >> we have tremendous technology in both companies. when you sum up the number of patents, we have 26,000 patents between us and when our engineers get together there is going to be just tremendous innovation. we're calling this a great global innovator, this new company that we're creating. i really can't wait to see the excitement in our engineers discussing the new capabilities. each generation of technology is getting more difficult to create. that lower battery, longer battery life and better performance in these mobile devices. the excitement that it will generate here will help make
4:43 pm
lower power devices more powerful year after year and as we go into the future. liz: well, so the battery power, everything is going to be more powerful. we just showed up on the screen the market share. you guys had about 14%. tokyo electron separately had just under 13%. which leads me to ask, mike, and it is a fair question, regulators will look at that and say no way, maybe they won't, no way we'll let the two behemoths together because the price of personal electronic will jump because you would have a long on the equipment used to manufacture semiconductor chips that goes inside of these things. >> that is very interesting. when you look at product lines they're very complimentary. there are almost no overlap. that is what is very interesting about connecting the dots of technology that are really going to change the game going forward. not only that, but with our scale we should actually be able to produce at lower cost an help
4:44 pm
our customers produce their products at lower costs. liz: so you're saying that the price would come down. do you anticipate, are you ready for a fight from the regulators? >> well, we've looked at the situation very, very closely and we're convinced that the complimentary nature of our product lines will allow this deal to progress smoothly through the regulators. we have to get it approved of course in six countries around the world that are interested in this merger but we're, we're quite confident that it will move through smoothly. liz: make gary do that part. i'm talking about gary dick up son, the ceo. he can deal with all governments and regulators at that point. give as you window what we'll see once the engineers from tokyo and engineers from santa clara and everywhere across the i mat landscape, what will they create? will we have phones whose
4:45 pm
batteries last forever? tell us the possibilities here. >> well, i think the possibilities are very many. i think we can already imagine mobile phones and tablets that have significantly more power than today. so that we can really do power point on a tablet and have that kind of real computing capabilities that we're so used to on our, on our desktop. but as we move on to the internet of things, we're really everything is connected, devices from, sensing temperature and pressure all over to your shoes, to your heart beat to medical devices, these things will be connected and to have that processing power to constantly monitor those things, that is really what we'll be aiming at to help enable that capability as we move through time. liz: one of your customers, intel of course, same as tokyo electron. the brand new ceo told just two weeks ago wearables will be
4:46 pm
huge. how big will you go in the equipment that is used to create chips for wearables? >> really every chip is going to be created on, either applied materials or tokyo electron machines. and as we move into the future and really combine these capabilities, we're really going to enable some great new technology, the kind of computing power that materials inside these chips can produce. it is really about that high performance, higher performance year after year to allow the companies that are producing these mobile devices to keep enhancing the capabilities. liz: right. >> so that things like wearables can be controlled from your phone, controlled from your portable device and, i think we're just going to see a great future. we just really starting to see the capabilities that these devices will have. liz: we're all going to be hunched over our phones, i can
4:47 pm
see it. worse than we already are. mike, great to see you. thank you very much. >> thank liz: mike splinter. mike splinter of course is the executive chairman of applied materials and combined company, david would be worth just under $30 billion. back to you. david: oh. he couldn't have toll you about it back early in september but when he was ready to say it, he said it here exclusively. fox business and own liz claman. good to see you, liz. some of the biggest names in social media, finally getting permission to operate in china but it is not quite a breakthrough we might have been hoping for. we'll bring you details in just a moment. also have you ever heard of a waterproof iphone? sounds like a good idea but we'll tell you what happened when some iphone owners saw an ad promoting some features that were definitely not part of apple's latest upgrade. ♪ @?? [ woman ] if you have the audacity to believe
4:48 pm
your financial advisor should focus on your long-term goals,
4:49 pm
not their shorterm agenda. [ woman ] if you have the nerve to believe that cookie cutters should be for cookies, not your investment strategy. if you believe in the sheer brilliance of a simple explanation. [ male announcer ] join the nearly 7 million investors who think like you do: face time and think time make a difference. join us. [ male announcer ] at edward jones, it's how we make sense of investing.
4:50 pm
4:51 pm
david: facebook and twitter ney finally be accessible in china after years of being blocked but only for a small section of shanghai. fox business's jo ling kent joining us with details. a little bit is better than nothing, right, jo ling? >> that's right, david. citing government sources the
4:52 pm
south china post that the first main land free trade zone in shanghai will allow rare access to a few social media sites that have been lockblocked for years. look at dates. facebook and twitter have been blocked since mid 2009 after deadly riots in the western region. the new york types has also been blocked since 2012 after a report how rich the former premier win jao bao and his family. the free trade zone will launch officially an september 29th according to state media. it is a pretty small area spanning 11 square miles. and not densely residential. if facebook is accessible it would light up a very small area of a dark spot, a very big dark spot on this face map for facebook. mark zuckerberg posted this graphic on his facebook map. you can see chain is not connected to the rest of the world and rest of the world is very brightly lit. china watchers are skeptical
4:53 pm
this will actually go through. if it does, duncan clark the chairman of investment advisory firm of bda china tells us it would be an easy way to use economic justification to essentially political liberalization although limited in scope. the symbol system important in this happens. facebook tells me they're aware of this report. they will monitor if it actually happens as well. twitter has not comments as of yet. we know one thing, if facebook and twitter get back into china, that is not good news for copycat companies made similar platforms ripping off the exact model. it could open up a can of worms against the communist party of course. this development comes two weeks after facebook ceo cheryl sandberg was in china meeting with the head of the agency that controls the internet. some very interesting things. mark zuckerberg himself in china just about three years ago. david: it's a foot in the door. again not much right now but sort, like nixon opening the door to china. it's a beginning. who knows what can happen.
4:54 pm
i like to look on the positive. jo, thank you very much. say you got a shiny new iphone with a brand new operating system. then you see an ad purportedly from apple saying your phone is waterproof. do you believe it? we're going to tell you what happened when many apple fans got spooked. you will want to stick around for this. ♪ my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as uneected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and meditions. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling;
4:55 pm
enlarg or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about e only underarm low t treatment, axiron. ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. at od, whatever business you're in, that's the business we're in
4:56 pm
with premium service like one of the best on-time delivery records and a low claims ratio, we do whatever it takes to make your business our business. od. helping the world keep promises.
4:57 pm
david: time to go off the desk. well, it seems some apple fans got a little carried a way with
4:58 pm
all the new iphone mania. turns out quite a few were actually duped by a fake ad that claimed the new ios software made their phones, waterproof like software would make it waterproof. these folks actually dumped their iphones in water. yes, they did. the ad even claimed that waterproof something covered by apple's warranty policy. not surprisingly iphone fans who fell or the ad, filled all the social media sites with expletives. they're too graphic to repeat on the program but they were none too pleased. we asked you on twitter and facebook if you would invest in chrysler new ipo? timothy on twitter said, depends on the price. great franchise names. it is all about price, valuation and potential dilution. excuse me. there is a little bit of delusion involved in investing. jackie on twitter told us she wouldn't invest in chrysler or gm but would consider ford because they did not take a
4:59 pm
bailout. time for the two things to watch tomorrow. number two, august durable goods orders. the things that hang around for several years. economists are expecting no change after dropping 7.3% in july. durable goods reflect new orders placed for long-lasting items like refrigerators, some cars, machinery, that kind of thing. number one thing to watch tomorrow, that will be the august new home sales. this is set to be released at 10 a.m. eastern. economists are expecting sales to climb about 6.6% after went down quite a bit, 13.4% in july. due for a change. liz, why don't you give us a wrap at the global conference there at clinton. >> liz: the clinton global initiative conference. president obama entered the building. if you want to see it live streaming, go on clinton global we're signing off from here with great word and business leaders. i tell them don't think this is
5:00 pm
going to be waterproof just because you downloaded ios 7. david, back to you. david: can i see the case? a lot of diamond. are these role real? nice stuff. melissa is next. melissa: i'm melissa francis and here's what's "money" tonight. can iran deal its way out of sanctions if the president puts on a full-court press at u.n. hundreds of billions of dollars are potentially at stake. who stand to gain. who will be left hung out to dry? we're following money. plus what goes up must go downs. the gains from the fed refusing to taper last week? they're all gone. the it could mean bigger problems are ahead for the markets. we'll explain why. "who made money today?" he can thank china for making him half a billion dollars rich err. wow. even when they say it's not it is always about money.


info Stream Only

Uploaded by TV Archive on