tv MONEY With Melissa Francis FOX Business September 26, 2013 12:00am-1:01am EDT
to the house saturday, sunday, may be bright and early monday morning giving the house very little time to get it back together. as harry reid wants it, no matter" with melissa francis is next. melissa: i am melissa francis and this is what is "money" tonight. a government shutdown veering closer by the moment and a budget deal over obamacare looks even more out of reach. what will stop congress from flying over the edge? neil cavuto joins us with the latest. plus, you love the cofounders so much when we had them on last time we are bringing them back today. and three ingredients everyone needs to brew the perfect work environment. and who made money today? stay tuned to find out who it is because even when they say it is not, it is always about "money."
♪ melissa: first the beltway battle, the clock is ticking as d.c. lawmakers have less than a week to avoid a government shutdown. would you put money on that happening? the senate advancing a spending bill to keep the government open today following the senator's 21 hour marathon protest against obamacare. plus, we are just weeks away from hitting the debt ceiling when we only have 30 billion left in government proverb. breaking it all down, the man himself, neil cavuto. it feels like it is getting a little crazy. is there a lot of energy quest mark or is there a sense of like we mabe getting ourselves in deep trouble? what does it feel like? >> there resigned to some late
nights knowing they are up against a deadline. you have not studied a lick during the semester, or between a rock and a hard place. it is almost inevitable they cannot get everything done before october 1 which would mean we are technically looking at a shutdown. at the very least we are looking at a partial shutdown john mccain was telling me that charlie rangel of course i the house it looks that way. the question is how long that shutdown is and if it is partial or a rolling shutdown with the whole government doesn't stop but the key departments and agencies stop. what you want to avoid is the government not paying out its bills and checks. as long as it makes good on social security payments, medicare payments, it avoids a default, which would technically be insolvency, which would technically be a nightmare.
melissa: i feel like they make the rules so they can avoid whatever they want. a very practical question people are asking is what would the shutdown really look like? a funny article that federal workers would have to hand over blackberry and iphone to be allowed to use them. are there big things that would be a huge problem? what would it look like? >> it would be tough. national parks would close, museums would close. it is up to that particular facility if they want to stay open on a volunteer basis but that would be the most obvious hit. military personnel obviously have no choice but to show up, as far as if the checks ge it o, that is another matter. the post office could be in limbo land. the bottom line is it would be a mess. the question is how long that would last.
sadly, we have a temporary outage or all the government shutting down, life goes on. if it drags on very long, as it picks up we would have to lower the credit rating because they are stocked with a $5 billion fine, the other agencies will go cautious. thethere will be great reluctane to the downgrade u.s. debt. the market could decide this. the u.s. currency could lose its reserve status for a while we ha.melissa: in the meantime everybody is in the back room talking about a deal. they would trade this one year execution on the debt ceiling in exchange for one year delay in obamacare whether it is the individual mandate or enacting the whole thing. what are the details you are
hearing? >> something like tha to laying the whole health care law is not going to happen. but maybe a provision like the individual mandate while not too keen on it offered some wiggle room. the tax on medical devices is something that you could delay or rip up. keep in mind, if you take this charge away, or this tax, where are you going to get the money? someone is going to have to foot the bill. they are the ones who are delaying. that invariably raises a bigger question. you are exempting a lot of people, pushing back a lot of people. wishing back employer mandates, somebody has to ot the bill. who? melissa: absolutely. everybody'everybody talking aboe
marathon session, 21 plus hours. he read gree green eggs and hame quoted ashton kutcher, which i thought was etty special. i was amazed he was standing and talking. i know i couldn't do that. what do you think is the long-term impact of that? does he rally more support for himself and for the independent part of the party? >> that is a good queson. he comes out smelling like a rose. he has nothing to lose in this. he is a conservative hero, he probably knew this was a losing mission but he made a name for himself much like rand paul did. these people stand out now. the question is where do they go from here? john mccain insists in the end they all share their common and is a patient to the.
he has proven himself, and at the very least if you can go on talking nonstop for 21 hours without a potty break it proves to me you have an exceptionally strong voice, a future aan anchor. and i think he is a threat directly to you and me. i am watching him like a hawk. melissa: from a business perspective you only need one guy. >> by the end didn't it remind you at the end of the telethon like you were going to break out in song? melissa: he did a great job, my hat is off. neil cavuto, my hat is off to you as well. next on "money," as if business did not have enough trouble in california the state hiked the minimum wage to the highest in the country. how can this possibly be a good idea to the state's economy? plus, president obama got snubbed from a meet and greet with the iran president.
melissa: a momentous move on minimum wage as the debate on the issue wages on throughout the country, california governor jerry brown signed a law to make the state's minimum wage is highest in the nation by 2016. fox business without the signing with exclusive reaction from californians. take a listen. >> i think it is a great step forward for working families in california. >> the pressure on small business people is growing all the time. if it is not one kind of tax, it is another kind of tax. they are feeling pressured by the minimum wage. melissa: amazingly most people we spoke to were in favor of the increase but how badly will a $10 per hour minimum wage hurt local businesses? joining us now, fox news
contributor. great to see both of you. mark, what is the talk like, what is the reaction? >> an informal poll around my house my teenage son is thrilled. but overall, the things you are hearing and the folks interviewed by fox business probably government workers used to having other people hand them money. if you are a business owner and more specifically a small business owner, everybody is dreading this move. melissa: let's tackle some of the arguments. we heard some of them. increase in the purchasing power of the middle class yo you're bringing families above the poverty line, those families don't have to rely on food stamps and other government programs because they are making so much money. they have more money to spend out in the community, it will come and circle around. what do you think of those arguments? >> when you don't have a job,
your income is zero, it is not $10 per hour. the minimum wage destroys jobs. it destroys jobs for the lowest skilled workers. the people who say this is a stroke for fairness, the people who are most damaged by this are the people at the very bottom because what you essentially do is you saw off the lowest rung of the economic ladder make it harder to climb the economic ladder. you look at california, my goodness, what a tragedy. how do you screw up california, the golden state. and yet they pass this. i love this state. the highest income tax rates, cap and trade, most onerous regulations and now the highest minimum wage. melissa: we had somebody on last week who owns a business, he was proud to say he pays employees $15 per hour and things everybody should do that.
so i drilled down o to how exacy do achieve that. he said this week he expected more of his employees, he needs them to answer the phone, be courteous, do more than an average burger flipper and he has fewer of them. they are more loyal. so he feels like it is a good thing, but you cannot escape the fact he has fewer employees doing more for a higher wage. so what does that mean? maybe that is good. >> i have another example for you. a good friend of mine finally was able to buy his own franchise last year. he has 10 full-time employees working minimum wage. just $1 per hour bump will end up he thinks cutting his profit margin by maybe as much as 30% because no minimum wage who is going to dump a new pile of money. the extra money has to come from somewhere.
steve said it could be the most impacted by this, or it will have to come in higher prices the average consumer witch who does that affect most? lower and income families. melissa: or he fire someone. the scenario, what do you think the guy really does? i don't think he is going to take it out of that. most small business owners are not loaded. >> teenagers just don't get jobs because teenagers are not worth $10 per hour. you put lot of those people out of work. we saw this with the protests over the mcdonald's and burger king requesting $15 per hour. when you raise those wages of those jobs is the businesses automate. they go to computers, robotics, you have to do more of the work like poor your own coke, so on. you're going to see less jobs.
melissa: that is a great point. i went to an in and out, it had an automated you punished in what your order was. this was a place they were saying they had, i took a picture of the sign, think they were paying $15 or $19, but when you went inside there were like two people working there. >> traditionally has a much higher starting income level than everybody else because they want to attract better workforce. this will raise the stakes for them as well. you will see industrialization will start to really pinch things especially for the teenagers try to get into the workforce, california has the highest teenage unemployment rate in the country. it is just insane. >> businesses, small manufacturers and so on will moved to nevada or moved to texas and that has already been
happening as you know. melissa: i tried to talk a restaurant owner in florida who had moved from california because it was so onerous. he opened a restaurant in florida instead of california. apprecie your time. next on "money," president obama got snubbed by iran's president three times at the u.n. but one of the top experts sitting down with rouhani tomorrow. she will join us with a spial sneak peek. if he is not watching, he should find out what the questions are. plus, the cofounder of "honesty" are on. and the three things you need to grow a perfect work environment. can you ever have too much "money"?
♪ melissa: iranian president hassan rouhani is hitting the headlines after rejecting multiple meetings with president obama at the u.n. this week. our very own kt mcfarland's meeting with him tomorrow. she is here with a special sneak peek on tomorrow's talks. tell me what the meetings are all about. >> resident rouhani met today with some journalist, he is meeting tomorrow with form policy experts at the council of foreign relations. myself included. he will have a prepared statement and take questions. melissa: so what is your question? we will keep it just between us. >> i would like to ask a couple of things. if he said at the u.n. speh iran has been such a great subornation and has a right to master the fuel cycle, how would he feel if other countries in
the region, saudi arabia, israel and others, did the same thing? melissa: what have they told you about how the questions will be selected? >> you will submit paper questions written questions d the moderator will give them to the president of iran. melissa: what is it you are going to be looking for? you are such an expert in this field. you discount some of what he says because of that, but are you looking for clues of his behavior, his tone, what are you looking for? >> here's the thing an, his predecessor was notorious for being a little crazy and very argumentative. he said there was a golden glow throughout the general assembly. he later said things like israel is a country that should be
wiped off the face of the earth, with one nuclear weapon iran could wipe israel off. we are putting him over there. the new guyunderstands the attract a lot more flies with honey than you do with vinegar. meeting the foreign-policy, trying to present every reasonable measured presentation, iran is not a crazy country, iran is one of the oldest civilizations in the world, i have the right to be a great power. they want a little bit of respect. at the same time i think what they are doing is buying time. melissa: it sounds like it. you will not get anything that far. but you could get everybody to relax especially if you come on the heels of somebody coming to the u.n. and just rail on everything. it was pretty scary. this guy makes you feel like this is a problem, may not an
immediate problem, we don't need to get in there. >> that is absolutely the impression they want to leave with the world and in new york but at the same time you have not ne anything to stop their nuclear enrichment program, so are they playing a waiting game? are they trying to make sure we are relax, don't get excited, as they click toward nuclear weapons. to the point they say we are one tu of the screwdriver away. melissa: if he is on this, which he clearly is, why not meet with the president? there was this talk they would not have a meeting but they would have an encounter on the sidelines. dancing around to come up with the appropriate language. at one point i thought it might high-five, but none of that happened. why? >> playing hard to get, basically. i think within a month you will
see some kind of initiative from the iranians saying let's start negotiations and have a talk, it is almost like it is a passive aggressive thing. we are saying great things about the relationships we want with america. n the other hand weight, not so fast. i think it is all designed to really buy time. melissa: i cannot wait to hear what your impressions were face-to-face. nothing like looking at the actual person. i cannot wait to hear afterwards. all right, so matter what time it is or where you are in the world, "money"'s always on the move. first to hong kong. trying the equivalent of amazon. also partially owned by yahoo. it would be one of the biggest tech offerings in history. they are causing us to look elsewhere. now want want to make the public
debut in the u.s. landing himself a new gig, the disgraced former head of the imf is the new president of an investment bank. responsible for developing the debt restructuring and investment banking activities. and heading over to venezuela. if you want to get a flight out of the country, good luck. flights are booked solid for mont. venezuelans are cashing in on the special loophole for travelers. u.s. dollars cap in short supp supply, but a valid plane ticket can be exchanged for up to thousands of u.s. dollars. many plans are taking off alf empty as a result of the trip. anything to get an extra buck. the honest tea guys are back because of popular demand. this time three ingredients every boss needs to brew the
charles: who says nice guys finish last? the concept of compassion and manament is a big topic that is really turning that all saying and it said. way too often workers complain that they cannot stand the boss. the truth is, killing them with kindness really can make the business that much better. who better to tell us out of the brood the best work environment, to perfect examples of compassion and management themselves, the guy who gave us their playbook on how to turn a start up into a wild success. co-founders and co-authors of the runaway bestseller that is doing so well.
mission in a bote. they're back with us. great to have you both on the show. let's get right to it. you know, i was surprised. they felt like they have the economics to back it up. companies qualified as compassionate and what did it with their environment, how they treated there communities. they outpaced the s&p, those companies by tenfold. that is hard for me to believe that statistic. would you teeseven a class? >> i would like to think that at our business school we actually have people who are compassionate. i don't want a school full of jerks. that is not what i want to spend my time helping to go forth and wants the world. i care about people who really are the folks who are role models. melissa: i feel like and that a lot of jerks. you can hear me warming up for that one.
the philosophy behind this, the cornerstone philosophy is that you want to treat your stakeholders the same way you would treat your shareholders. that goes against basic business principles. you're a shareholder is supposed to be the one you are beholden to. how do you feel when those two things seem to clash? one example i could think of is paying for health benefits, paying things to your employees that is going to cost more, maybe bring revenues down. that is not -- go ahead. >> that is not the way it works. you cannot have passion that employees who will create value unless you have compassion and management. city extent employees feel like they are being invested in and you have their interests at heart is how you get passion and people who are motivated that they go way beyond the normal and how they create shareholder value. melissa: three examples of the three things that business
owners and companies and people can do right away. i will let you go first. thinking about your employees as long-term investments and investing in their development. >> absolutely. if you want people to be part of your long run success you have to be a part of theirs. you don't want them thinking about other things when they are work in terms of child care or a sick relative. you want to make sure that you wod get their full attention and therefore investing so that they are taking care of. melissa: you guys have a specific example where it was expensive and long term it seem like it paid out. >> several occasions where we have an employee who had chemotherapy and as a result her immune system is compromised and could not show up at work for almost a year. more than a year. we worked out something where everything was faxed her at home and she would fax them back. fortunately she is back and with us both in the company and in good health. another employee whose child was
injured in a motorcycle accident. we said, okay. go and take care of your kid. that is the most important thing she did. melissa: what did you do to fill her shoes in the meantime? you have business, operations, things that have to get done. >> we invested in the infrastructure so that she could telecommute. her job was not one that was a natural fix, but we found a way to make it work. the loyalty we got from that employee, she knew we had her back in or supporting tariff. melissa: the next one is the notion of community service. that is one of those things that is good for publicity but feels like a cost center. where am i going wrong with that analysis? >> it could be a cost center if it did not serve our needs. itets us more connected, but it is also a great team building activity. people from different parts of our business you don't naturally interface. they can spend a day together, not just working alongside each other, but when you're doing physical work or different kinds of work you learn a lot about
somebody in a different way. so those days are really productive for us in terms of developing our own staff. melissa: that's interesting. what you did is took a principled you want to achieve. there's nothing wrong with that. >> it is at 2-4. melissa: how about number three. building your brand the right way. your example was fair trade. >> for us we work with these tea governments all around the world. they are resourceful,nd these are poor countries. so for us we have always chosen to buy premium ts, not just organic. that is more expensive by definition. but what we have done with the proceeds when we are able is reinvest in the community so that we are helping develop the infrastructure maybe we get a premium for the consumer but we
also know that we're buy high-quality tv can afford to run out of. we may start getting approached by others. melissa: this seems like it's good. but that's kinf what you have to do. am i being unfair? >> the answer is y do it. that's your ultimate goal. use the right thing. sometimes it's your benefit. if you're doing is simply to be selfish then i think it is devastating. meliss is that how you decide what to do and what not to do? when you do -- maybe that is on the checklist. i will do this for the community, but there has to be something where it is paying off for everybody. >> but there is a weird elements of karma. we don't know exactly sometimes where the benefit is, but we know it is the right thing for the business and our employees.
it is -- sometimes there is not a calculation. we just know that this is the right thing to do. so far it has fostered a strong. melissa: if you are the ceo of a public company and have to go out and get on quarterly conference calls and cities kind of things, does it not make investors nervous, don't you get blow back on that? >> if you care about your customers and your employees and those people are going to be once you create value for you people understand that is the kind of company to work for, the kind of company and product you want to support. it does make a difference in terms of your bottom line. they speak in the marketplace. that is fair jury. it cannot charity because we're able to capture a premium pri. lissa: i love it. you're smart and tough about what you're doing. what is the biggest mistake? >> i think it's easy to think about it in a short-term way.
and often what they will do is say we will do their short-term promotion, give away charity. for us it is much more systemic. the reason we call our book mission in a bottle as we want to make sure every product we sell every time we sell it incorporates those values. it is not something we do for a seasonal promotions. it is everyday ingrained in the business model. melissa: i love this. it is great to hear from you because you have been successful. the proof is in the pudding. thank you. we appreciate your time, as always. next on "money," the annual customer conference didst to watch his team. all the word on wall street. you know we have the inside scoop. at the end of the day it's all
the secrets on the street we have come to the right place. making quite a splash. the billionaire skipped out on a keynote speech at his own company's conference to watch a sailing race. the auricle team usa did decide the odds with a big comeback in the 304th america's cup, but he blew off the 60,000 people that paid thousands of dollars to attend the conference. he was supposed to speak at it. not a great move. spencer j. kept this year. the conference that put on. these other customers. the developers. this is the audience. this is the guy. they let everyone lender for 45 minutes. >> it shows an incredibly lax attitude toward the business. this is a big event.
melissa: obviously this is not from this year because he did not go. >> it was not supposed to be at the same time. delayed by bad weather, but have kept make your choice. it has nothing to do with the business, nothing to do with what shareholders pay him very, very well for. the highest basion america last year by a significant margin. all these people who pay money to attend this event, left waiting in an insulting way. melissa: it was for good cause. he won. they are in another sticky
situation at the same time. a strip club in san francisco. an employee went in during the conference and chars $30,000. they came after oracle because it was a corporate credit card. this is something that used to be very big on wall street. around the time of the financial crisis the cradown. there are a lot of things that are embarrassing. it talks about a corporate culture. not banned from doing this. >> i looked into this and it is not clear if the person was fired or whether he was disciplined. i would not let it get to the level of getting to the newspaper. it was all over the internet. his name, he's from spain, the
spanish newspaper. it makes oracle look bad. for $303,540. pay for it to go away. a resounding air for company with the $200 billion market value. melissa: is he that steve jobs of oracle that they cannot possibly g on without or is he someone who, you know, is so enamored with his own ego and his own money? what does he care? he is very famous and rich. is it time for in to go, or is the company nothing without them? >> i would not sell the company is with -- nothing without him. he is that steve jobs as an instrumental in putting out their products. it was a controversial choice. but there are other people -- people who could run the company. it does very large contracts with corporate customers. you and i don't test their products. it is still a very good company.
he was the driving force behind it, but that was a long time ago. i would not say that his retirement would kill the company. he still owns 24% of thetock, so he is a significant force. melissa: have a very famous guy that everyone is always talki about. today there were not hearing him talk. thank you so muc always great. coming up on "money," blowing the budget on launch. how much to you really spend every day? a new study showed -- shows just how much we are shelling out every year, and you won't believe who the big spenders are. all and "spare change." you can never have too much you can never have too much "money." when we made our commitment to the gulf, bp had two big goals: help the gulf recover and learn 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.
melissa: so it's time for a little fun with "spare change." today we are joined by two people. thank you for joining do you keep track of how often you go out for lunch? most of us eat out twice a week spending $10 per outing, an average of $18 per week. i guess it feels like that would be 20, but add up the numbers and it comes up to more than $900 per year. he realizes spend that much money amount once? outspend women on a weekly basis by 44 percent. i guess they need more. 30 percent of americans never in doubt at all. talk about saving. how often do you eat out at lunch te? >> too much. they are chivalrous. they are paying. melissa: i think they just be more. i think that -- i mean, you were more at the counter.
you are bigger, more hungry. >> i am a big man. you're right. thank you. >> me and just order more stuff from the menu. i have to be honest, this financial disease, i was always pinelands for myself. i looked it over. it was coming to up almost a thousand dollars. -- melissa: how much to just pay for that? >> it's free. so i started tracking everything and realized. it helps to visualize. because when you realize, ten of $12 for lunch. melissa: but the seller is not free. the page for that before. >> if you are buying in bulk to, i am an organic eater. i took this little test. i gave myself $40. i stretched out the food. i cannot eat.
>> but it's so expensive. >> unless you start buying the whole foods' brand product. >> you know what is interesting, in this survey, the fascinating part of it,he people who earn the least, minimum wage people spend more proportionately than the people who are more. melissa: proportionally of course. >> but they spend more generally , people making 25,000 spend more for their lunch then people -- melissa: why do you think that is? >> people have to be more disciplined. it is sad. that is a sad phenomenon. >> once you start going in there and looking at prices and saying, well -- melissa: good depressed. what i love about this,
1 percent of people spend more than $50 per lunch or $5,000 per year. is that you? a very fancy. >> a very fancy. >> you can go to a push cart. the average plunged, people $900 per year. the 1%, the dreaded 1% hate those people. $50 at lunch whichs about right in new york. you do it two times per week and it comes out to be $5,000 a year melissa: it is interesting that you could do this with anything. this time we are talking about lunch. usually it's coffee at starbucks sometimes when you cut back in one place you end up to spending it somewhere else. i'm so good to my did not go out to lunch. i'm going to stop at starbucks. i have free coffee here. don't tell anyone.
i cheat that way. it is always something. >> it is always something. it is kind of what he was saying, conscientious shopping. if you're a dciplined. from the air was next to our coffee bean and tea leaf going in there all of the time. $5 a in morning. i have to have that every morning. ike had a little bit for my lunches and maybe eat at home for dinner. melissa: thank you so much. have lunch out tomorrow on me. or give you money on the way out. we have some breaking news right now on a deal between the nfl and twitter. let's go to jo ling kent at the news desk. >> reporter: basically, the nfl is going to announce tomorrow that they have a deal with twitter. of course just ahead of the ipo that we are anticipating in the next couple f months. they struck a deal. what this includes will be tweeds that their links to the nfl network that does not include monday night football
would include tweets of clips with monday night football. this comes as twitter has shown it is definitely helping the tv ratings. collaborating with nielsen to do that rating for television broadcasting. specifically this will include in game highlights from thursday night. we will keep an eye on this. a very interesting news after they struck a deal with cbs and a couple of other cable networks melissa: very interesting. thank you. up next, who made "money" today? you're probably all too familiar, but they never have this much "money" in history. cannot figure it out? the answer right after this. you can never have too much "money." ♪
melissa: the american household has never been worth more in history according to the federal reserve. during the second quarter of this year the household net worth climbed by 2% to 748 trillion. you can think rising common stock values. meanwhile, losing money today, george soros along with everyone who owns j.c. penney. a dire outlook for the company with ccerns about liquidity and sales will not improve as much as expected for the rest of the year. nearly 15%. it 13-year low. 20 milli shares. if he lost $35 million today, although that is just "spare change" for him. and they're now available for rent. part of that dream car service which includes lamborghini and aston martin. how are you supposed to calculate the cost?
that is all we have for you. i hope you make money. i will see you right back here tomorrow. ♪ ♪ >> ♪ saturday in the park ♪ ♪ i think it was the 4th of july ♪ >> ♪ whoa-ooh-oh ♪ listen to the music ♪ whoa-ooh-oh ♪ listen to the music >> ♪ even the nights are better now that we're here together ♪ >> in the early '70s, rock music mellowed out and showed a softer side. singer-songwriters, acoustic guitars, and sun-kissed melodies took over the airwaves and the soun