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tv   After the Bell  FOX Business  May 7, 2014 4:00pm-5:01pm EDT

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>> that is a great one to look at. [closing bell ringing] sectors, eight of the 10 were higher. let's not forget aol, down 20%. that's tough. david: getting killed. liz: bells ringing on wall street. some of us have whiplash seeing up and downs. dow jones industrials having a very nice day considering earlier today it started to fall about 44 points. right now the gain up 117. s&p's gain up 10. earlier it was down eight. the nasdaq though just couldn't make a go of it, but barely. david: down about 1 1/2% at one point. liz: it had been down 59 points earlier. watch out for the russ tell 2,000. it is almost flat there. got to watch out. this one has not participated in last couple of a weeks of a rally. but the moment, "after the bell" starts right now.
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david: let's get right to today's market action. we have lee munson, chief investment officer, who says now is the time to buy and todd horowitz in the pits of the cme. todd, let me go to you first. let me talk about janet yellen. we haven't talked about her for a while. she gave testimony. she said she will not be raising rates as long as the eye can see. is that what the market wanted to hear from her? >> hi, dave, hi liz. i think that is what the tape is telling you right now. the s&p and the dow love that information because it will keep the money coming in. again we have no place else to go with our cash. we have to go to the equity market. however, although nasdaq and russell rallied back a little bit. take a look at big picture. the nasdaq and russell have been extremely ugly. david: i have to stop you. one of earnings came in, green mountain coffee. go to adam shapiro. keurig green mountain to be precise. >> they changed the name, david. a beat and a beat.
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on earnings per share, coming in $1.08 for non-gaap earnings. street expecting 1.05 billion. a couple things to pay attention to. they announced a one billion dollars share prepurchase. guidance for fiscal 2014 everywhere from what the street expects to $3.73 per share and street was expecting 3.72. in the after-market they're trading up now up 4%. david: that's good news. todd, what do you think of knows numbers? >> i think it is very good news. last earnings they had coca-cola helping them through. this time they have been pretty solid. green mountain has been solid all the way through. i'm glad to see they beat both on the bottom and top line. that is a good sign. maybe we'll finally start to get a little growth here. >> the annual high of this stock has been $124, but the low is well below what it is right now. it is 56 bucks right now. the stock at bid is $94.16.
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>> i think the stock will continue to move here. they sold it off pretty good into earnings go back to the 120. just last couple weeks we've seen the stock fall from 105. i think it made a low today about 90. it is no surprise certainly they were probably going to rally either way but on good news i could sigh the stock going back up near 100 before it is all said and done. david: we have mark newton, gray wolf chief technical analyst. mark, we're still in this. today was great. a triple-digit gain on the dow. although we have to remember the small and mid-sized caps and russell 2000 holding flat. nasdaq going negative a little bit but coming back. we seem to be in some kind of a plateau, do we not? >> the market has been frustrating to bulls and bears the like i think last couple months. s&p and dow are basically range-bound since march and russell 2000 is source of weakness and hitting, even breaking april lows as of today. the problem we're not seeing any follow through.
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we're not seeing pullbacks in the s&p and dow. those are remaining range-bound. we still have a lot of sector rotation. energy moving up to new highs. look at things like oih, continuing to see very defensive rally with utilities, energy and staples moving and discretionary hitting new lows. but it is really difficult for people to call any sort of a top just yet. i know a lot of people are expecting the s&p and dow should really join the russell, if anything, if the next couple weeks the russell can hold these levels it might be possible for the russell to join the rally with the others. yellen says greater monetary accommodation remains necessary and needed. ton of people are still out of work. inflation is not up to targets that we like. the economy is slowly but surely trying to stablize and move higher. yet the market is pretty frustrating here. a lot of people don't have the same cushion they did at this point last year when they could easily bank 10 to 15% gains and take the summer off. if anything, people are looking for the type of sector rotation
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to really help them obviously carry through over the next few months. liz: lee munson, people loved last year, if they were bullish. they made a lot of money if they were smart enough to get into the stock market. now we see that year-to-date we're just up about 2% for the s&p 500. where do you anticipate we go from here for the rest of the year? are you bullish if so, is there a way to make sure you invest in names that actually work and also don't get people caught up in case there is some type of a near term correction? >> well, remember, liz, last year, if you bought in january we had the major correction last may. not only did you have to invest last year but you had to sit on your hand and deal with a little volatility and you got rewarded for it. i think today going forward, people have to forget about things should one index be following or everybody be going up together. if you have a portfolio where everything is going up or going in the same direction, you have a portfolio, you have a bet. you still need to stick to the
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main things that give you -- liz: before you get on, hold on the main things. hold on. we have twenty-first century fox, the parent of our company coming up with numbers. adam shapiro has them. >> this stock is trading up almost 4% in the after-market it is beat earnings per share. 47 cents. street was expecting 35 cents. street was expecting 79 billion. let me break down -- 7.9 billion. cape programing ended march 31st, 3.15 billion year-over-year up from what it was in 2013. television, 1.58 billion. that is up from the 1.24 billion. direct broadcast satellite television, 1.5 billion. revenue year ago was about 1.3 billion. liz, back to you. >> those are strong numbers w news corp, not news corporation, it is twenty-first century fox. we do have it looking stronger after the close of the session which was $32.12. now the bid at $.30.
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lee, i interrupted you. you were about to expound on things we should look for. >> things to look for, look at twenty-first century fox, for instance, everyone said television is dead and they beat earnings. this is the reason why you have to have a basket of stocks in the u.s. and you can't be worried about picking all the individual names. you have to know with we still have growth in the united states. i think it is always a better bet and you get better than expected returns if you tilt that and leverage towards value and smaller end. there is all the talk about why are small caps weak? are they going to do this or do that? if you want high expected returns and get in the u.s. there is whole world out there. i like emerging markets. i like europe because it is cheap. you have to stay small. if you see that correction that everybody wants, all the technicians want a correction, go buy it. david: todd, let's talk about one of the warning signs. we're hearing more about inflation these days, big piece in the "wall street journal" we'll talk about later in the day about inflation. we saw, hold on a second. we got some, okay, we got tesla
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in right now. adam, this is the one we've been waiting for. how did tesla do? >> well on earnings per share it appears to be a beat, roughly 12 cents of the street was expecting 10 cents but the revenue figure looks to be light. first quarter revenue coming in at 620.5 million and the street was expecting 699 million. so we're going to crunch into these numbers and find out what's going on with tesla for you, david. david: we do have a lot of things coming out. they did beat on some of their numbers with regard to construction of the model s car. on the other hand, what we're seeing happen after-hours is a loss here. lee, i'm just wondering if you're seeing enough from the numbers or what your general views are about tesla? we'll talk more about that in the next block but go ahead. >> well, i love it. out in new mexico we're trying to big for the big battery plant so i'm rooting for tesla. investors need to remember, if you want to make your money on test last, you should have bought it when it came out you
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have maximum risk and return to make 200%. now the stock is overvalued. we don't know how to value it f you want to speculate at first, it is fine now. it's a game seeing if it ever falls from grace and disappoints. so cheap hitting value screens. i think could you speculate then. david: why do you say it is overvalued now? do you get the sense it is overvalued or based on forward earnings or what? >> well, here's what we have. we have a relatively small company that has a huge valuation, based on a linear, a vertical growth stream, okay? how do you value something that hasn't been around that long that has made such a huge move in such a short period of time? and, i would say that you're still in the infancy of these cars. they're not sells millions and millions and millions of cars. liz: no they're not. let me get numbers. hold on lee. numbers says it is on track for sales of more than 35,000 deliveries of that model s for 2014. so that is markedly higher than
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a year ago. maybe people are betting on the future opportunity. i think why the stock might be down because it says it to be slightly free cash flow negative in 2014. they're expanding. they will have the gigafactory which they say is on track. adam, you have a better sense of revenue here. >> nan gaap revenue. -- non-gaap revenue. see delivery of 36,000 delivery moved dell s vehicles, slightly higher than guidance. liz: mark newton looks at numbers and takes out emotion of all this when you say there is opportunity for this company to grow exponentially and they're at forefront of a lot of technological advancements is that a play? >> in the long term it is. people thought stocks like this got ahead of themselves. now it is pulling back and turning down, everybody says is this bottom and time you step in and buy?
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sometimes that is akin of trying to put a golf ball on marble flight of stairs and hoping it stops before the bottom and it is difficult to say, okay, this is the low. once the momentum stocks turn down with a lot of force, sometimes you have to wait until you see some steins of stablizing. david: why, todd is the stock down 6% after-hours, based on all the good news? >> first of all the stock has been extremely overvalued from the beginning. they don't make any real money. they don't have the california tax credits to go along with it. we've seen this movie before. this is no different when yahoo! was $400 in 1999. yes it's a very viable company. they might be a great company and wonderful builder but right now they're extremely overvalued of the so the stock should come down probably to 100-dollar level. david: 100-dollar level? >> we're down from 265, down to 18 trading right now? it looks like it is going lower. it is in its own personal bear
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market right now and they don't have the values to support this is awe bought on speculation that it is going to make money and they will be able to deliver. david: one thing we know for sure, right now the stock is down 6% after-hours. we'll continue to follow that stock throughout the hour to see how it behaves after-hours. whether it continues with that kind of loss. lee munson, todd horowitz, thank you very much. todd, actually we'll see you in a couple minutes when the futures close. mark newton, we wanted to thank you you as well. mark, thanks. tesla as you saw reporting moments ago, the stock falling 6% despite a beat with the stock up more than 30% this year. so what's happening? how do we bet on a stock that is trading low after-hours even though it came out with good numbers? we'll talk more about that. liz: david, it says it is going gangbusters in china. it sees that as a huge market. hot profits today and new government predictions on higher natural gas prices could keep specter's profits and stock price roaring.
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we have the ceo live straight ahead. david: also once again, janet yellen saying essentially that the inflation is a non-issue right now. guess what? when you go to the grocery store around buy stuff there, you know it is an issue, everyday, that you buy at the grocery store or fill up at the pump. so how do we deal with inflation? and is food and gas just the tip of the spear of more inflation? tell us what you think. is the fed wrong? are you dealing with inflation now, in your everyday life? is it a problem for you? tweet us, @fbnatb. your answers coming later. ♪ [ malennouncer ] what if a small company
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a research tool on thinkorswim. when folks think about wthey think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology.
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shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america. liz: the news is tesla. of the tesla report ad double beat on first-quarter earnings but the stock is falling after-hours. david: significantly. now about 5%. so it recovered a little bit. it was down 6%. what does the future look like for the automaker? joining us is lauren fix, the car coach, auto industry analyst. >> ne to see you. david: he like to think they had act one for tesla was magnificent. they had fancy car, rich man's electric car. >> right. david: exceeded all expectations with style and performance. consumer reports said best car ever. now act two, act two is creating
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a middle class electric car that sells. terribly with the leaf. >> right. david: gm did terribly with the volt. is it possible that tesla could do well with its middle class car, middle class electric car? >> they have a lot of competition once they hit the middle class car. bmw has i-3s and they already have sales. seem are lined up. there is a lot more competition because a lot more manufacturers make ev vehicles. liz: look what tesla is saying. they are saying they will ramp up production and hit 35,000 sales moved dell s this year. do you believe that? >> i think that is a bit hefty when looking at last year's sales at 22,477. liz: they beat last year so maybe they have gotten better at this point? >> right but the price is the same. only certain amount of vehicles to be sold. when you look at total sales for 2013 at 15.7 million cars. only 3% are electric vehicles, 3%, that's not a lot.
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if i will take up a chunk of all that 3%, who is to say it will grow to 5%? we don't know that. if you look at electric vehicles in total, they are selling in california because they have to. but everyone is making electric vehicle in order to meet c.a.f.e. standards. the government is forcing it. california state is demanding it. i don't think that much more sales in total. once you get to china you will see huge growth. you're talking to four years. david: this is huge market in china. everyone knows how big it is. even though the middle class is over all small part of the population. that is still 2, 300 million people. >> right. david: china is slowing down. are his expectations based on faster growth for china? >> i think he is hoping that. they have a lot more cash to spend on cars. buick is doing well. other vehicles are doing well. they have a lot of buzz going on. he opened a retail outlet. people jamming there to get. once you go into the chinese market you have patent infringement issues.
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liz: here is the quote. we believe the country could be one of the largest markets in a few years. >> i think that is true. i think his belief is true. it's a huge marketplace. they are outpacing us in many areas. there is lot of cash to buy cars like crazy. you're talking three to four years before they can actually do their first delivery. will there be interest? what kind of competition will thereby? we already know there is competition and chinese are not afraid to create their own competition. david: you talked about carbon credit and other government incentives. how much of his business model still depends on government subsidies of some kind, whether carbon credit or refund for electric cars? >> he is getting a bigger chunk than gm and nissan is. he is using that to his advantage and sells to the car manufacturers that didn't need it. that was very intelligent way of paying off the government. now he is in a position where he is getting a break but in china he is not going to get that kind of break. there is no way they will give it to him. he will be head-to-head with other manufacturers. right now other manufacturers, bmw delivering i 8s i will
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drive one at end the month. which will get a feel from tesla and bmw. david: hard to beat with the top model tesla with were problem, the bmw dealer, will give you a whole another 7 to drive. david: dealership issue. thank you, lauren. liz: green mountain, keurig. let's get right now to nicole petallides because the stock is jumping. >> hey, liz and dave. you're absolutely right it is jumping. we're looking at keurig green mountain. you can see we're starting with the bid ask. it closed at 92.21. the bid/ask is in $97 range. it was 98 moments ago. it is looking good. the earnings per share came in, beat the street. a buck 8 versus 94 cents. that was a beat for the second quarter of 2014. when you look here at revenue, 1.1 billion versus estimates of
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1.05 billion. a beat as well. top and bottom line beat is great news. we look at other news on the board, authorizing a share repurchase of $1 billion, and expansion on the deal with j.m. smucker company. this is expanded partnership deal. this is from everything from distribution, marketing, manufacturing and for names such as folgers which will go into the keurig packaging and the like. and smucker, just so you know finished up just about 2% on the session. back to you. >> nicole, thank you very much. david: it is tough to get a feel of this earnings season. sometimes you get bad numbers. mark newton was saying neither the bears nor the bulls are happy with this market. each one is disappointed by something that happens every day. meanwhile fed chair janet yellen facing some very tough questions on capitol hill today from lawmakers who believe the federal reserve, her institution, is actually fueling inflation by monetizing the deficit. we'll talk about a top economist who raised red flags about
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inflation in a big "wall street journal" op-ed cited on hearings on the hill. liz: natural gas boom. prices are rising more quickly than forecasts just a month ago. we'll talk to the chairman and ceo of one of the key players in this industry. spectra energy with a fox business exclusive. you need to hear what he plans to do and decide whether you want to own the stock. ♪ up. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people
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liz: things that probably negatively affected were great spore spectra energy. record cold winter weather plus higher commodity prices helped
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spectra energy post a 23% jump in profits during the first quarter. this week the government's energy information administration raising its forecast for nat-gas price this is year up 6.8% from last month's prediction. how will higher prices impact spectra energy's strategy this quarter and the rest of the year? we have greg abel, the company's chairman and ceo and president. wonderful to have you, greg. assume that it would be great for you but we know what happens when we all assume. what are you looking for for the current quarter and for the summer quarter in natural gas prices are going to continue to rise? >> we actually think natural gas prices are in a sweet spot both for consumers and producers. as you know we're the pipeline company that moves 12 or 15% of gas around north america. so as the gas is in a nice range for producers to produce it and for consumers to use it, a big win this winter, frankly for people in new york as we built a new pipeline into manhattan, the first one in 30 years.
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folks in manhattan, believe it or not paid less of a premium this year than they paid the year before thanks to that pipeline. so we'll look to build $35 billion of new pipelines and similar assets by end of the decade to take advantage after real boom in gas in north america. liz: greg you're on track of 35 billion of projects to be done by 2020? >> absolutely. last year we brought in six billion. signed seven billion in new projects. up in the northeast this year we'll bring a couple that will help folks out in new england because they're paying for higher prices. we're starting to move gas out of utica and marcellus, so think ohio and pennsylvania down to the south to the texas gulf coast that will also lead to lng ex-sports. -- exports. it is all steam ahead and great for the first quarter. liz: you are in the natural gas pipeline and storage business, you're moving this stuff. it is interesting though, because i recall, there was some
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pushback a couple years back now from new yorkers who were worried about this pipeline. now that they're benefiting obviously from lower prices, what other people, in the rest of the country, usually new yorkers are paying more but where are the your next real hot spot opportunities? where is the demand? >> i would say there are several places. nothing like boston folks don't like to pay more than anything like new york folks. let's looks up there. like yankees and red sox. we'll be building pipelines there. we're building a billion dollar pipeline into new england with plans for two others. the southeast, the same. we're building a very large pipeline, a $3 billion plus pipeline for folks in florida, for next era and duke energy down in that neck of the woods. of course all the lng export opportunities along the gulf coast. it is really universal across north america. natural gas obviously being very clean as a carbon fuel but also relatively cheap compared to oil and others. so really great opportunities,
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both for consumers and pipeline companies like ourselves. liz: our whole floor crew are yankees fan. they hope you build it under fenway and stop in play by accident. look we've got to stop for a minute to build this pipeline. let me ask you about what you talked about, natural gas and exportation projects. obviously liquid natural gas is highly regulated when it comes to exporting. we can only export to countries with trade deals. but are we missing a critical window where we could really capitalize on an opportunity to provide the world with natural gas and what do you hear from washington, d.c.? >> i things have changed in the last 18 months in washington. i think people really realized this is a huge opportunity. we have probably century worth of supply. we should be exporting some of this to countries. you've seen the approval of multiple lng exports. the same in canada. we see an opportunity. we're looking to build one off the west coast of canada as well. so i think there's been a recognition of the facts, which is always nice, in fact
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north america is incredible position not only for domestic use of natural gas but also the ability to export and obviously those are big job opportunities in communities as well. so i think that combined balance puts natural gas in a favorable light and obviously companies that do it, those stocks are reacting favorably as well like spectra. liz: if you have 35 billion in projects are you hiring? we always like to ask our business leaders if they're hiring and if so where? >> absolutely, we're hiring everything. if you're looking for job opportunities, if you're a welder, pipe fitter, right away, regulatory, we are actually. we add ad couple hundred people loose year and we'll probably do the same if we can do that this year. right across north america. our pipelines go basically from the mexican border to the canadian-u.s. border in the northeast and in western canada as well. and right across the north america there is great opportunities for folks. not just spectra but i would be very surprised if there are any
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pipeline companies in north america who are not hiring. so that is a great opportunity. liz: thank you so much for coming on to give us an update on business. >> thank you very much. >> agreeing ebel spectra chairman, and ceo and president. i followed that cop for a long time. david: i love to hear they're hiring. you don't just have to have a computer degree. you could be a welder with spectra. airlines making huge profits. will they spend all the cash on new aircraft, and if so will they buy or lease? yes they do lease, quite a few of them do. ceo of one of largest owners of airplanes in the world that lease out to the big airline companies to tell you, you could have actually a better and cheaper ride in the future. el tell you why, coming up. liz: thinking inside the box might not be such a bad thing. we're going to show you, listen to this, how one company is building hurricane-proof homes from old ship be containers. ♪
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david: our next guest's editorial this morning in "wall street journal" struck a chord with so many in wall street and washington, that his analysis made its way into today's hearing with fed chair
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janet yellen. >> in this morning's "wall street journal," allan meltzer, a distinguished federal reserve historian writes, the fed focuses far too much attention on distracting, on distracting monthly and quarterly data while ignoring the long-term effects of money growth. david: with us now the man himself, allan meltzer, professor of political economy, carnegie mellon university and fellow at-very institution. even if it wasn't for that reference we would bring you in anyway. you think inflation is here. you think the fed is the main cause of it and that food prices and such are the tip of the spear of what's coming. ben bernanke denies that he has been monetizing the debt which would cause inflation. you say his denial is nonsense, right? >> i think it is just false and i don't know how he makes that claim. i mean let me give you the numbers of the huge budget deficits we've had in recent years, he monetized 43%.
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to give a comparison, paul volcker, the large, time for reagan deficit, he monetized 9%. david: but the question is, professor, sorry to interrupt, but the question is what are the, where do we see the consequences of this kind of behavior? because so far with the exception of food, and oil, we don't see much inflation, or at least the fed says there isn't much inflation? >> yes, well they bottled up all the money growth on the bank balance sheet by paying them a quarter of a percent interest and they didn't have many other places to put their money. so that's what they did. but that's going to leak out. and as it leaks out we're going to have inflation. david: so you think, you think that the food prices are just the beginning? we are going -- by the way today we should mention fedex did increase its prices for delivery of certain goods.
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we have seen other examples of price hikes besides just what we see in the aisle. of course there is the question of, the minimum wage and some wage inflation as well. is that how it is going to drip in? >> yes. i mean, a little bit by little bit we'll begin to see it. and it will, you know, come a little bit faster as it begins to take off. the fed has a terrible history when it comes to doing things about inflation. and you saw more of that today in janet yellen's testimony. she said, well, you know, we can wait for that because we have more to do about unemployment. they're not doing anything about unemployment. their policy to help unemployment is just not doing very much. the unemployment rate has come down but it is come down almost entirely because people have left the labor force. that's not good. that's bad. people, and it is just not the old people leaving the labor force. people in the 18 to 54 age group. david: some of them are right in their prime and still can't get a job anywhere so they leave the
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force. sticking with inflation for a second. you're saying the head of the federal reserve, one the most important monitors of inflation in the world is completely ignoring the signs of inflation. how could that be? >> that is easy. he has done that time and time again. arthur burns did it. you know, most of the real anti-inflation chairman have been two, volcker and greenspan. the others, not much. david: now the treasury yields are still pretty low. do you think that they will stay low as inflation creeps up or will they go up despite the fed not acting to raise them? >> yes. i mean, what you see operating there is the greater fool theory. somebody is going to hold those bond when the interest rate goes up and it will take some losses. and that's too bad but, somebody has got to take those losses because somebody has to hold the bonds. david: okay.
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very quickly now, the first quarter gdp came in at a pathetic .1%, now they say in the revision it is may actually be negative. if we continue with negative release slow growth could we go into that stagflation where we have inflation plus low growth that we saw in the late '70s? >> we have every sign that the second quarter is going to be good. what we have to decide whether that is persistent change or that just making up for the weakness in the first quarter and we'll go back to being shrubbish. we see the consumers have been spending -- sluggish. making up for what they didn't spend in january and february but investment still looks pathetic. exports are not doing what we would hope they would do. david: professor allan meltzer, professor, thanks so much for coming on. great piece in today's journal. thanks for being on. >> thank you. david: we've been asking you on facebook and twitter if you are seeing inflation.
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buzz is, close to as i can get pronouncing his name, he says i find products have jumped by price in 50% by just over couple months. you can tweet us, by the way your answers at fbna. b. we still have time to read some at the end of the show. liz? liz: how about airline tickets? airlines seeing profits soar. carriers ordering new high-tech planes at rapid pace and those are expensive. how do passengers benefit? coming up we talk to the ceo of a aircraft leasing giant. it is a bird, a plane, no. just the army's latest new idea. it is unmanned flying truck. we'll show you how it works when we take you "off the desk." ♪ mine was earned in korea in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance
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david: this week we learned the nation's airlines reported $12.7 billion in net profits in 2013 up from just 98 million in 2012. that is bureau of traps r transportation statistics. many airlines are looking up date their fleets with new high-tech aircraft. liz: but that is expensive. guess what? with 40% of the commercial jets being leased how does that translate into dollars for the leasing companies? joining us the ceo and president of one of the biggest leasing firms. it is great to have you.
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you're owned by private equity? >> we're owned by private equity. liz: this is not a publicly-traded opportunity but we have a you here to give us a window into the airline business. first explain to our viewers what you do and how do you it. >> we buy aircraft from airlines, other manufacturers, and other lessors and lse them to airlines on long-term leases. >> do you buy them brand new? >> we buy them brand new and used. they have a 25-year useful life so there is lot of opportunity. david: a lot of people out there, me, for example, some major airlines, american, singapore, united that they do lose airlines. most people i think would think that they would own their own air -- why do they have to lease? >> well they choose to lease because it is pretty effective solution for them. first off the lessors have the aircraft available near term where as manufacturers can up to a eight-year backlog to get aircraft. we provide them access to new technology. it is differentiated financing tool like debt, paying for it out of cash.
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we provide really the grease for the aviation industry. united airlines, american, singapore, when they want to pass aircraft back and forth, lessors are typically the intermediaries. liz: have airlines gotten smarter? because their profits are increasing. i remember the 08's and '90s all you heard was airlines losing money or going under. what have they done right and figured out? >> the north american carriers are particularly smart in curbing capacity and rest of the world is follows suit. used to be you couldn't go a airshow without airline ordering hundreds of aircraft. liz: and they overordered. >> they overordered. they're much better on capacity and seats. it used to be consumer-less industry. airlines gave awe product, regardless what you wanted. now you go to the airlines and they exist at every price point of the if you want to go to ultralow-cost carriers and you can literally go online pay for a bag in bin, bag in the belly.
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alcohol on the flight. other end of the spectrum -- liz: cafeteria style. >> the airways will announce put three-bedroom apartments in the a 380s. david: what is amazing thee did the new pricing model and became so profitable in the midst of a worst recovery in my life-style anyway. a lot of industries are just flat. they have the right business model but no business model will help you with the cost of jet fuel. that has got to factor into some of your business decisions and theirs, right? >> it does. fuel is 40% of an airline's cost but manufacturers really responded very smartly. the new technology aircraft that is out now, that is being delivered, saves between 16 and 20% for fuel costs. david: are you buying some of these airliners. >> absolutely. david: from whom. >> boeing and airbus primarily but emembraer and bombardier are doing great as well. liz: they are doing a great job.
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>> doing a great job. liz: private equity that owns you are making a lot of money, mcquarry still wants you. they made a bid in 2006. what would you like to see for future of? >> you know, somebody with equity that really wants to grow the business. when i, when i took over awas in 2010 we were 4 billion in asset value. now we're at 11 billion. liz: bravo. >> just a handful of years. so the opportunity to grow, if somebody wants to put equity to work and aviation leasing in general and awas -- david: answer in five seconds, will seats be more or less comfortable. >> much more comfortable. book your butler and partner now. david: i want to book my butt. ray, thank youery much. >> thank you, ray. thinking out of the box. you might think shipping containers can only be used for transporting goods around the world. we switch it to in the box could be turned into something very different that could save lives. when folks think about what they get from alaska,
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they think salmon and energy. but the energy bp produces up here creates something else as well: jobs all over america. engineering and innovation jobs. advanced safety systems & technology. shipping and manufacturing. across the united states, bp supports more than a quarter million jobs. when we set up operation in one part of the country, people in other parts go to work. that's not a coincidence. it's one more part of our commitment to america. how much money do you think you'll need when you retire? then we gave each person a ribbon to show how many years that amount might last. i was trying to, like, pull it a little further. [ woman ] got me to 70 years old. i'm going have to rethink this thing. it's hard to imagin how much we'll need for a retirement that could last 3years or mor so maybe we need to approach things dferently, if we want to be ready for a longer retirement. ♪
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liz: they say you should think outside the box but sometimes thinking inside the box has its advantages. david: one company did just that. it's taking gritty old metal shipping containers, turning them into affordable hurricane-proof homes. fox news's steve harrigan with
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the story. >> this is our 40-foot sportsman's cabin model. >> steve sawyer doesn't like it when someone compares the houses he makes out of shipping containers to mobile homes. old shipping containers are made of corrugated steel. when anchored by concrete pilings on four corners, sawyer says they do much better than mobile homes in hurricane areas. >> the hurricanes come through and they level the mobile home parks. this will be standing basically undamaged. >> sawyer has two models for sale. one, 20 by 8 feet for $37,000 and a larger one, 40 by 8 feet for $57,000. containers are only eight feet wide to be fit on trucks but they can be stacked for more room. they come with a sofa that folds out into a queen bed on the floor. >> i'm not claustrophobic. i don't know if you are. i am perfectly fine wit. i could live here no problem. >> the containers are also a
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green approach to housing. hundred of thousands of decommissioned containers are rusting away at u.s. ports. sawyer says he basically taking junk and turning it into housing. and the box-like minimalist features are for the container lover, an additional appeal. >> and i think they have a certain beauty. i like, i don't want to cover up the whole container. >> the cone takenner houses may prove to be a good business model since a used one can be purchased for under $2,000. dave and liz? liz: i am claustrophobic. david: bigger than a manhattan apartment i can tell you that. liz: thank you, steve harrigan. david: new military project combining a truck and a helicopter takes off for the first time. we have details of this revolutionary technology. more video. this is fun stuff. coming right up. liz: plus nasa scientists stepping up their research into the possibility of establishing human colonies on mars. we're going to bring you that story next. ♪
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up. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again.
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tigers, both of you. tigers? don't be modest. i see how you've been investing. setting long term goals. diversifying. dip! you got our attention. we did? of course. you're type e* well, i have been researching retirement strategies. well that's what type e*s do. welcome home. taking control of your retirement?
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e*trade gives you the tools and resources to get it right. are you type e*? david: time to go "off the desk." real-life transformer. helicopter called the black knight transformer. it was successfully tested at undisclosed location in california. area where they have the secret stuff going on? the company behind this technology received permission from the u.s. government to release the video which we're showing you now for the first time. here is the cool part, after landing the unmanned aerial vehicle, folds up its propellers and transforms literally into a supply truck. gerri: a little rosswell action. what if tomatoes were imported from mars? we may be a long way from that. researchers are suggesting we put a experiment on nasa's next mars rover which is scheduled to
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launch in 2020. they say it could help lay the foundation for human colonization of mars. melissa francis had an actual astronaut who said it could happen. david: it is about time. should have happened a long time ago. we asked on twitter and facebook if you're experiencing inflation in your life. christopher tweeted in, inflation in food doesn't look that bad but middle class americans it is eating up all the spending power. liz: wayne on facebook said if janet yellen isn't worried about inflation that means the qe party will continue for the near future. number one thing to watch tomorrow will be weekly jobless claims that come out every thursday. number of americans filing for first time unemployment benefits to drop, that's a good thing to 325,000. david: i'm looking by the way at tesla. right now it ended the day at $201 for a share of the stock. it is now trading after-hours, the bid is at 188.50. looks like it has lost, it looked like it was recovering a
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little bit. got up in the bid and ask to 191 after-hours but fell back down again to 188. so we'll be watching tesla very closely tomorrow if it sticks at these levels. liz: even with a beat on earnings. "the willis report" is next. have a great night. gerri: hello, everybody, i'm gerri willis. right now on "the willis report," debt fight escalates. democrats pushing for relief by raising taxes. also sick and tired of your smartphone always running out of juice? we've got tips on maximizing your phone battery. and since when did it cost a million dollars to build a bus stop? when it is built by the government of course. we're watching out for you and your money on "the willis report." gerri: we'll get to our consumers news in just a moment. first we begin with new details of the investigation of high frequency trading by new york's attorney general eric schneiderman. now the ag said he was going


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