tv After the Bell FOX Business May 15, 2014 4:00pm-5:01pm EDT
in this case you're absolutely right. there is growth in mortgage america. [closing bell ringing] inurn europe, those are some of their areas of strength. liz: okay. you can see from those small things on the right side of your swing, the intraday picture and it's a fight to come back for the dow. nasdaq, s&p not going to make it. well off the lows of the session. david mentioned for the dow jones industrials we were down 210 points at one point. s&p having a big struggle. nasdaq at one point was down 65. to be down 31, you cut your losses. david: nice to serious sell 2000 which had been leading downward trend today not doing so. liz: indeed. "after the bell" starts right now. david: this is the biggest drop in the s&p since april 10. so it was bad particularly in the s&p of the not all the others doing so bad. there was a little bit after comeback towards the end of the
trading day. let's get right to today's market action. we have kimberly faust, navigating these markets like walk tightrope these days. al buckingham, al frank asset management. telling us where he is putting money to work in the long run. bob iaccino from pits of cme. let's talk about whether this is bump in the road, bob or whether it's something bigger than that. what does it feel like to you? >> well as it sits right now it feels like something bigger than that and a lot of it goes back to your conversation with nicole. the volume all on the downside was very good. we vane seen a lot of volume to the upside. it kind of makes sense. the market has been moving sideways. people talking about this potentially being a sideways type correction. to me this is still a bull market we need to see. the correction crowd is growing. it is not going away.
february lows, asset allocators, traders everybody one he welcome that. eight to 10% in the s&p no one will complain about that move if it rallies from there which i think it will. liz: you have a delicate balance, kimberly with all of this coming at us. you're calling this second quarter dassault lay type of market where you have to do that balancings ability. >> there is slew of data. 1/2 ghaith the markets is like we're saying, walking a tightrope and i think you need to keep your eye on the long term and not second -- liz: we have to interrupt. jcpenney numbers. cheryl casone, how did they do? >> actually they did better than expected which is good for a company like jcpenney. they came in with adjusted number buck 16. the street weighs expecting them to lose $1.25. they came in well beneath that. that is good news for the company. the stock closed 3% in the close. up 9%. complete reversal from the
street on company. they were selling off the stock expecting hosch news. they didn't get it. now the stock is moving up 9%. they beat on revenue side. came in at $2.8 billion. there are a few more things i will look through here in particular. any news about the ceo and of course what we'll see as far as online sales and operations in stores. liz, i will send it back to you. liz: just remember, everybody, the an all high of this stock is $19. here we are at 8.37 for closing value. cheryl is right to point out it is narrower expected loss. any upside surprise for jcpenney certainly makes people who believe in this company do well. kimberly, back to you. you were explaining how strawed dell a fine line of -- straddle a fine line of fear an opportunity. >> people need to look at their portfolios and focus on long term and focus on price appreciation and income accumulation. so for me that you have to look at the equity exposure and your fixed exposure and make sure you
focus on that. right now it all about the discipline and patience. i know that is not something everybody wants to hear but that is going to reward you in the long run. this is no time to be a hero, liz. david: on the other hand, john, you look what is happening to jcpenney right now. it is up 9%. a lot of people look at russell 2000, see some bargains there. it has come into correction mode. it is interesting neither you nor kimberly are focusing on any small cap stocks as your picks. isn't there something to be gained by going in and doing some bargain shopping now in the small caps? >> well i think there are some opportunities there. we just purchase ad company called old national bancorp, onb, in that space. keep in mind over the last decade or so, small and mid-capped stocks have done really well where large apstocks have lagged. i think investors should be overweighting large cap and taking money off the off of small and mid.
we've seen small caps get rushed relatively -- david: you don't think they're down enough to go in right now for bargain hunting? >> look at valuations. i know small caps trade at higher multiples than large caps as a rule. my own portfolio of prudent speculator newsletter which i'm editor trades 15 times earnings and you just don't find a lot of small cap stocks trading at those valuation levels. liz: what kind of trading were you seeing in small caps on the floor, bob? i'm interested can you feel the correction over past several weeks and we're down 10.3% from the recent highs? >> i think you combine kind of what kimberly and john said and sort of get the answer to your question. as john said, small caps rally quite a bit more over the term of the bull market. that is obvious, right? kimberly said it is risk-reward equation and that is correct. they're both dead right, to get in small caps on correction you
want to wait until the broader market correct the. i don't want to buy small caps until they're down 15, 18, 20%. because that means the -- liz: but if -- >> broader market doesn't pull it back up, the russell can go a lot lower without the broader market hitting that correction point. david: kimberly, that's why we're all looking for indicators right now. that's why when you look at yield come down on 10-year and all the treasurys, they did recover a little bit but they were down another five basis points on the 10-year today, isn't that one of those indicators that concern investors? >> well, it is an indicator and it does concern but the ec b is forcing, the yields are very, very it interest low. that is actually making our treasurys look a little more attractive. david: let me explain for all those who haven't heard the story. what is happening is the european central bank saying essentially they're about to lower rates even more.
going to get in the same game, the qe game we've been into and that is making our rates look even better. that is why our rates have been coming down a little bit. go ahead. >> and that keeping yields and treasury rates lower. so you don't want to abandon bonds i don't think in the portfolio. definitely don't want to but you're looking for yield. i don't want people to look for yield in all the wrong places. so don't get seduced into higher yielding, riskier bond. look at your portfolio. if you need some income, one of the things i love is of course stocks. at&t has a 5% dividend on that. that is double the 10-year treasury, okay? liz: exactly. >> pfizer as well. that is 3.56% dividend on that. that is excellent, excellent yield as well too. but don't over expose yourself into stocks and get yourself overweighted and this market is tenuous and bob was saying same, we'll see correction in the market at some point in time. you want to stay in the market
long term through the peaks and valleys. liz: john, kimberly, great to see you both. bob, we'll see you in a few minutes when the s&p futures close. david: thanks, folks. despite all gyrations in the markets the volatility index, get this, down more than 7%. are we witnessing the the deathf volatility? what does that mean for markets and investors? liz: we all know stats make great headlines but when you want the real story, come on, go straight to the source. we're talking to one of the sources in housing, ceo of trulia, about where their is strength and where there is weakness and how its brand new technology will help you find your ideal home more quickly. it is a fox business exclusive. >> can his smile get any bigger? fcc proposing new rules, internet users, video sometimers and a lot of tech giants up in arms. it could be higher prices for you. they managed to displease everybody. more on that ahead. liz: we love you to join the
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>> cheryl casone from fox business network newsroom. we have breaking news from carl eye kahn. he is making some major moves of a hours. he upped his stake in shares of apple. taking a lesser stake in shares of netflix of the first to apple, taking 25,000 in change in shares. upped stake to 16.3%. that is a big jump, 16.3% jump in carl icahn's stake in apple. with regards to netflix he decreased his stake in netflix. looking at netflix's stock, carl icahn decreasing his stake in net flick. finally made a big move in herbalife to 17 million shares his holdings in herbalife. carl icahn is filing like crazy in after-hours making big moves in big companies liz and dave, you both know but those are three main headlines crossing right now. david: thank you very much, cheryl. liz: the s&p futures are closing right now. let's head back to bob iaccino
in the pits of cme. how does it look? >> a little bit of short-covering into the close but knowing really to write home about. interesting you mentioned in the 10-year note, keep eye on that. you have a interesting situation for fed and janet yellen. they want to end qe and rates are actually going lower. anyone structuring strategies around more qe coming, it is not coming. liz: thank you very much. bob iaccino. david: on a day like today you would expect the vix to spike as it did about 8% but throughout the market gyrations the past three months, the volatility index, the vix, held pretty steady never even hitting the 20-point mark over the next three months that relieves some. others see it as a dangerous complacency. so says our next guest, nicholas kolas. chief market strategist good to see you here. >> thank you. liz: david: what will it take. 20 points is the average for the vix t hasn't hit that in three
months. what will it take to go back up? >> it is amazing. 9 vix should be higher than it is. we had a lost geopolitical turmoil, obviously a lot of market turmoil and we're hovering at levels under long-term averages. it seems to be hibernating very. david: are investors too complacent and is that a danger? >> that is a factor of complacency. we're complacent that central banks will come in to save the day every single time which they have done the last five years but at the same time central banks have to step back to let fundamentals take over and that is when volatility will start. david: that's a good question. seems like we're nowhere near that. word comes the european central bank is doing more in terms of meddling in market behavior, not letting the market settle and find their own value. >> that is exactly right. as we're talking about here you need a certain healthy amount of volatility to put risk alongside reward and we're not getting
that now. david: we've always had central banks trying to eliminate risk. frankly it is impossible to do that you will always have risk and reward but the more central banks try to eliminate risk, the more a bubble begins to develop and that leads to the question again whether the market itself is become a bubble? what do you think? >> certainly not have a valuation standpoint strictly a bubble but i do worry that this complacency and this lack of ability to adjust to new information is causing a factor where investors are not going to be ready for the next shock and it will take it, market down quite a bit if we do get one. >> so what is the danker? since we agree that i think the federal bank is sort of the source of this anti-volatility complex that the market has right now what is the danger of the fed getting so actively involved in policy decisions? >> the big danger now as the federal reserve pulse back, as they reduce qe how do we handle transition to hopefully more
normal economy with normal volatility. david: how did you that will happen? it won't be long they do that? >> that's right. david: they will be out of qe and have huge portfolio but won't buy any in a year. >> the economy begins to accelerate more than awful first quarter gdp print we got back to 2 or 3% and corporate fundamentals can take over and support stock prices where they are. that is the upside case. david: what happens when they start to unload the portfolio? they can't carry a $4 trillion portfolio forever? >> no the best case -- david: what happens when they unload that? >> the best case they carry to maturity. the federal reserve will have a big balance for a long, long time to come. the idea let things run off and not replace then. selling securities that would be a problem. david: inflation, we had certain signs of inflation this week, certainly with regard to stuff not even listed in the cpi like food and gas. food is up 2.7% month over month. that is big rise for a month. that could be a bigger problem?
could that cause the vix to rise a little bit? >> i worry about inflation exactly what you raised. they anchor expectations off things like food. it is not in core cpi that is part of the psychology of inflation. i do worry about that. at the same time 10-year taking yield down to 2 1/2% indicates the financial markets are not worried about broad based inflation. david: final question on the vix. a lot of people are wondering jeez if it is so low eventually it will go up. i buy into the vxx equivalent what you can buy into it. mostly options traders. not for average investor, right? >> the vx is important tool to watch but very hard tool to trade. better left to professionals. david: why is that? eventually it will take too long for the vix to rise? it will be another year or two before it does? >> that's correct. most of the products incorporate a rolling process to keep their exposure and that tend to erode value. david: nicholas, thank you very much. >> thanks a lot. david: we appreciate it.
liz: nordstrom earnings came out while you were speaking to nicholas. let's head to nicole petallides on floor of the new york stock exchange to see how they did. >> this is nice showing for nordstrom. with that we're seeing stock jumping in after-hours, so much so if they were to trade at these levels during a regular trading day we would clock it in as new highs, new multiyear highs. you can see the stock which closed 61.49. the bid -- ask is $67 range up from 61. earnings per share and revenue beat the street. earnings per share 72 cents, beat analyst estimates of 68 cents of the we saw improvement in revenue, that too was a winner. total revenue, 2.93 billion, also beating analyst estimates. comp sales of growth, that's what they're giving forward forecast of 2 to 4% and they also continue to see sales go overall, the sales growth of five 1/2 to 7 1/2%. so beating the street on the current quarter, exceeding analyst outlook and in addition
to that giving a nice outlook going forward. so a real win here -- david: this stock right now is up 9% after-hours, 9% after-hours. so both of the earnings that we've heard have been very, very positive for investors. we'll be watching these stocks closely tomorrow. liz? liz: david we have breaking news on berkshire hathaway. cheryl casone. >> liz you know this company so well. these are fascinating moves that warren buffett and berkshire hathaway are making after the bell. first let's get what he is increasing his stakes. he taking increased shares of walmart. 51 million shares now. taking a new stake in verizon communication, brand new stake in verizon communication. he has 11 million shares holding of verizon communications. he cut, cut his stake in ge. berkshire hathaway cutting their stake by 25% of shares of general motors. he is only holding 30 million shares. taking cuts on general motors but buying in more shares of walmart. remember walmart was under pressure today after that lousy
earnings report last night and taking a brand new stake, liz, in verizon communications. always fascinating to see what mr. buffett does after-hours. liz: oh, boy, isn't that interesting. watching that happen is quite, quite interesting. he just said he liked david, general motors and thought it was great. he hired two guys, ted wexler and todd combs to make a lot of stock trading decision for the portfolio. david: we'll watch those folks. we have to update you what is happening with jcpenney and nordstrom. nordstrom up 9%. jcpenney right now after-hours up 20%. we'll watch the stock that everybody had counted out tomorrow to see if it can hold on to these highs. a huge jump in jcpenney. meanwhile should the fcc be allowed to regulate internet like the broadcast networks. came a bit closer to doing just that today. we'll tell you what it all means for you coming up. liz: and new and existing home sales declining last month, indicating the housing recovery is taking longer recently than analysts expected.
so three major companies that third point is getting out of the game when it comes to those three names but they are taking a stake in citigroup as a matter of fact. so third point making big moves. we heard from carl icahn. , berkshire and filings from third point. dissolving stakes in apple, yahoo!, blackberry but taking a stake in citigroup. a lot of news with some of the biggest fund managers in the world and what they're doing to their stocks portfolios. liz: dissolving a entire stake in apple and yahoo! that is great. thank you, cheryl. david: the fcc voted to propose rules that would allow internet providers to create a paid fast lane for some websites. liz: peter barnes is outside of the fcc in washington. peter, we need to clarify this, what happened today, 3-2, and as well what the actual proposal is. >> well, liz, among other things the fcc proposal asks the public for comment on whether it should
ban deals for fast lanes on internet but the fcc also is asking for comment on whether content providers like netflix, amazon and google should be allowed to pay internet service providers like at&t, comcast and verizon for, for this priority, faster routing service as long as they, as long as these deals are quote, commercially-reasonable. and some content providers already have these kind of deals. now the proposal is highly controversial. protesters disrupted today's meeting three times and had to be escorted from the meeting. critics say this proposal would jeopardize network neutrality. would jeopardize the open internet, open to all users and content providers, rich and poor, jeopardizing internet that doesn't discriminate against anyone because if there is a fast lane, there must be a slow
lane. well the chairman of the ftc, who made these, who is the architect of this, latest proposal, on net neutrality, told critics themselves to slow down. >> this proposal does not provide or mandate paid prioritization. there is nothing in this proposal that authorize as fast lane. we ask questions but don't jump to conclusions. >> now wheeler said the fcc would use every power it has, those were her words, his words, to prevent parties from dividing the internet between haves and have-nots. david and liz. >> thank you. liz: peter, thank you so much where dough some of the biggest companies might be impacted stand on new proposed rules? tech giants, twitter, ebay,
amazon, all came out against the new rules, warning they post, a grave, threat to the internet. all five of those stocks today ending in the red. on other sigh verizon also came out against it because the company has long been committed to open internet for a simple reason, our customers demand it. that stock ending day relatively threat. netflix telling fox business that the company isn't interested in the fast lane per se but equal access for all internet users. netflix ending lower by more than 2%. then you get comcast, one of these guys who invests most laying down cables and pipes, they also came out against the proposed ruling saying it quote, remains committed to a free and open internet and working with the fcc on appropriate rules for all players across the industry, end quote. that stock managing to eke out a small gain today. free internet? i don't know, david, netflix struck a deal and paying comcast for the open highway.
david: that gets to the point how far behind technology are the regulators? some of this is a useless effort on part of regulators. technology is already moving ahead. by the way, all this is still going back to court eventually. liz: exactly. david: so the courts will decide. the companies themselves are going to decide. we want to you decide, tell us what you think. are you concerned that the sec may start to regulate the internet now as it does the broadcast media? send us a message, facebook.com/afterthebell. your answer about regulation coming up. meanwhile airlines have frequent-flier miles. starbucks has loyalty cards. small businesses fighting back with their own loyalty programs. coming up we talk with the ceo of loyal blocks which is helping over 40,000 businesses build loyalty solutions in their own communities. liz: the housing market showing more signs of slowing down but real estate site trulia is showing strong signs of growth. watching brand new update to its
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up day on wall street as dow and s&p 500 had steepest decline since ape 10th. markets dragged down by energy and health care sectors while telecom was only sector to end the day higher. initial jobless claims falling to 297,000 versus expectations of 320,000. this was the lowest reading since may 2007. meanwhile homebuilders are the most pessimistic they have been in a year. the homebuilder confidence index declined to 45 this month with makers of new single family homes reporting fewer sales. liz? liz: speaking of holes, the housing market a very hot discussion among a lot of you showing more signs of slowing with homebuilder sentiment paul falling to a one-year low in may. we know may isn't over but this is the way in. hb does this. sales of single family homes dropped sharply in march an existing home sales declined sharply. trulia, admit it, you troll it
all the time, showed strong signs of growth last quarter and just launched a brand new update to its mobile app. you have to hear about this joining news a fox business exclusive, trulia ceo pete flint. great to talk to you. let's get right to it. i talked about the negative number all day long. we have homebuilders saying we don't know what we're talking about, things are looking better. let's take it from there. what signs do you see on your website people are engaged in at least browsing an looking at homes? >> we've just seen incredible usage on our platform, 50 unique users a month on our service the big shift is transition to mobile devices. the majority of engagement on mobile devices. we're seeing signs confidence from real estate agents. we had record number of agents sign up for our service in q1. overall as you said in the comments before the housing market is searching for equalibrium. so we've seen generally a strong first half of the year last
year. rates ticked up which have kind of depressed but overall we're generally pretty positive over the next several years. the housing, the homebuilder data out this morning, we think it is generally short-term measures that impacting that confidence level. liz: okay. >> things like labor shortages things like the weather generally we'll see kind of towards the end of the year into 2015. it is small but certainly meaningful increase in the yearly metrics. liz: that is interesting. we had eagle materials ceo in the last hour and he was saying just a couple years ago when you had bright moments of sunshine in between bad weather people still weren't doing anything but this time around every time there was a break in the bad weather in the past several months, he said his business started to pop. so that's certainly a good sign. let's talk about your mobile app. julia of course is a website where you can check out any address and see what's happening there but you really expanded beyond that. what is your new mobile app allowing people to do? >> so, now, trulia is primarily
a mobile business. so we just get more engagement by mobile devices. we think about that the mobile experience is different from the desktop experience. we're building unique tools only find on trulia so the service we launched today is the ability for nearby homeowners. this is, you can imagine the situation. whether your commute to work or whether you, drop your kids off to school, the roots that you take, the locations that you sit, you can sign up for nearby alerts in your price range, for sale, for rents, so you can be alerted to homes when they hit the market. in today's market when there is limited supply, buyers are clamoring to be first in line to see homes on the go. this is unique and new way for consumers to search by mobile devices. >> if you're looking for a home in shaker heights, ohio, or perhaps phoenix, arizona, you make sure you're into this app. the second something comes up you could be first to look in at
it and perhaps make a bid, correct? >> correct. we make it easier. the thing we have with mobile devices we have location. you have location so it truly knows where you are and turn on the feature, this is where i am. let me find out nearby homes available. of course, it is actually a phone. there is a phone that we can speak to people. you can contact a local real estate professional to help you see the home to find out more information. liz: feeding into our stalking behavior. we stalk houses when we want them. pete, it is great to see you again. the stock itself is languishing down 13% year-to-date but we're watching this. a big part of the float is shorted. listen, you take chances in life. good luck to you. >> thank you. great to be here. liz: pete flint is the trulia ceo. david: house stalking, i love that term. coming up we'll talk to a company that is helping small businesses grow by attracting one loyal customer at a time. we'll tell you how exactly it works and how you can benefit
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afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protecon. and because usaa'commitment to serve current and former military members andheir families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. david: general motors in hot
water again. gm issued five more recalls today covering almost three million chevy, pontiac, cadillac and saturn vehicles globally to fix five different safety problems, boosting the automaker's total number of recall vehicles this year, to, 11.1 million. among the recalled vehicles chevy malibus, corvettes, pontiac g6s, saturn auras and cadillac cts sedans and full-sized trucks. some recalled models dating back to early as 2004. this new 2014 total is more than gm recalled during the past six years combined. gm is expected to take a $200 million hit to the second quarter with today's recall. watch out. liz: do you enjoy it, i know you live in a neighborhood as i do, do you enjoy the familiarity of local small businesses that know you by name? now those same small businesses are looking to give back to customers with their own loyalty programs. david: it is hard with all that
competition online. loyal blocks is the name of the company. founded three years ago, with that exact mission in mind. now over 40,000 small to mid-sized businesses are using its platform. joining us now is loyal blocks cofounder and ceo. edo, good to see you. >> thank you. david: we should mention it is new york and tel aviv-based. based in israel and united states but who thousand businesses -- 40,000 businesses. tell us first of all how it works. >> first of all loyal blocks, as you said, a loyal marketing solution for small businesses. it is quite simple actually. all a merchant needs to do is go online to loyalblocks.com and within 10 minutes he can create a better mobile solution than what starbucks offered. david: that sounds like a phrase. tell us specifically. i'm a customer. i'm walking in my neighborhood. i've got a smartphone. then what? >> we'll actually start from the merchant's side. the merchant wants he goes to loyalblocks.com creates his own loyalty app and put as small
beacon in his business. that beacon is something we provide him with. liz: like a little antenna. >> we can show it to. >> please. >> something like a day after day, they create their own loyalty app. so the minute that you're entering one of your favorite local places on the upper west and you have the loyal blocks app, then that beacon basically detects you, tells you hey, welcome to such and sufficient cafe. we're very glad to have you here. this is your third visit and get a free sample of our special. and, these messages are being tailored and discuss onized by business owner for his customer on very specific basis based on their preferences, their habits, their birthdays. liz: sounds like a win-win. customer wins by getting free stuff and feels like he is getting one-on-one attention. >> exactly. liz: of course the business gets more business by reminding somebody, hey, you're within 10 feet of my store. come on in. i will give you a free
cappuccino or something? >> exactly. in a way we're really trying to reinvent here the kind of behavior that we were once more familiarized w when you walk to the grocer and people knew you by name. right now the merchants are looking for these kinds of connection. the customers are looking for these kind of connection but they simply didn't have this kind of services available for them, or affordable for them. david: how do you make money off of this? are you, do you have a retainer with these companies or what? >> so businesses pay us a monthly fee of $70 a month and they do that only once. they're absolutely sure they're getting positive roi what they're doing with us. we're actually making a lot of money for our customers. for some of them we're talking about six figures in positive roi within like the first three months of working with us. liz: what? that is fantastic. can i say, can you give names of american companies that we would be familiar with that signed up for this. >> i was just looking at some,
it es actually similar segments on fox business and i saw the ceo of john barrett salon was here a fuse weeks ago. liz: yes, he was. >> john barrett's salon is one business for example. tgi friday's in new york. a lot of subway locations are using us. but majority of 40,000 businesses are really locally-owned small mom-and-pop businesses. >> to compete with the big chains. >> exactly. liz: that's great. >> to get better solutions than what the big chains are offering. we're actually seeing right now the opposite trend. we're seeing these big chains identifying that small businesses are getting better solutions than what they have, and what they built in store and are simply, i mean we're getting tons of inbound calls from these guys that they want to adopt these solutions as well. david: by the way, one thing we ask a lot of business owners come here are jobs. people out there looking for a job, knows somebody who does or their kids or up their job.
you're looking for workers. >> we're always hiring. david: what kind of people are you hiring? >> sales, account management, product guys. anybody who has passion to work with local businesses because that is, it is not easy. david: how do they get in touch with you? >> it is just edo, loyalblocks.com. that is easy or go to the website. liz: ido is spelled, i, d, o anybody writing that down. america, israel, what is the next country you're aiming more? >> that is a good question. we're looking also available for the u.k. and australia. we are investigating what will be the next country that -- liz: i say france. they all like to go to their special shops for special items. >> it is one of our top options. david: next year i bet you have a million frequent flyer miles. you will be logging a lot of airtime. >> it will be the second million. i already about a million. liz: you're kidding. oh, my gosh. david: congrats. this is great idea.
great business and you're doing well. >> thank you so much. david: and you're hiring. >> it is called loyalblocks. >> right. david: we'll put up all the information on our website by the way. look us up on facebook and we will include all that information. so if you want a job with ido you can get one. good to see you. thank you very much. >> thank you very much. david: after more than 12 years the controversial world trade center memorial museum is finally opening to the public. dierdre bolton sat down for a exclusive interview with real estate developer larry silverstein about this. liz: this skyscraper you're about to see is actually the most expensive home in the world. it has three helicopter pads, a 50-seat theater and ballroom and much more. we'll tell you who lives there and what it all costs. david: and where it is. ♪.
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liz: 12 1/2 years after the attacks on the world trade center the memorial museum is opening in lower manhattan. president obama and former new york city mayor michael bloomberg were in attendance. david: so was former mayor giuliani. "risk & reward" host, dierdre bolton had an exclusive conversation with the developer behind the project, larry
silverstein. deirdre, what did he tell you? >> first of all his energy is just amazing. the past 13 years of his life he dedicated to rebidding this entire area. so we spoke of course about the memorial and about what it meant for new yorkers to come together but we also spoke about what it means to the area as far as tourism and commerce. here's what he told me. >> we've had 10 million visitors to the 9/11 memorial park. next week is the opening of museum. 10 million visitors in the last three or four years. it is just been phenomenal in addition to which half a million square feet destination, first class quality retail is coming to the base of each of these buildings, four, three, two, and one and the path terminal. the path terminal will be opening next year. a huge amount of retail there and exquisite building. it's a building with the wings that will appear out of know where. and look like a bird about to take off. but it will be a magnificent transportation experience people will have once these facilities open. >> so now i did ask mr. silverstein some of the
tougher questions. you know, is it hard for example, to get tenants down there he wants? he won't names of course as a developer but the tenants that he does want are the creative class. so the advertising companies, the tech companies, and i just said you know, do you hear people grumbling, i don't know if i want to take this office space because of my employees have to move down -- he said not worried at you will. what he pointed out to me which i didn't know, how many families are down there and this whole entire rebirth. listen to this. >> there is a growth of families. there are 60,000 families living down here now. residential occupancy doubled the last few years. the growth has been phenomenal. you look at, the highest income level in the city today is tribeca which is exactly where we are, right here. >> he is not stopping. i mean he is developing another four seasons which is, four seasons tribeca. you can see that in the orange net income. my guess is, if i were a betting woman i would say he will
probably move there when he finishes. david: 83 years old. that guy has amazing amount of energy. >> i know. tons. with the birds as far as the architect. liz: he could have given up and he didn't. >> that's right. honestly it has been a long slog. you didn't hear it there, basically for 13 years he has been in a fight essentially with the port authority over some of this debt and who guaranties the debt. he is pretty hard-working guy. he gets in at 10:00, doesn't leave until 7:00. for 83-year-old pretty enviable energy. david: someone my age. great to see you. >> thank you for having me. liz: by the way catch more of deirdre's exclusive interview with larry silverstein on "risk & reward," 1:00 p.m. eastern right here on fox business. great job. david: let's look at a picture of a building been named the most expensive home in the world. kind of a strange looking home. when we come back we'll tell you where it is, how much it is, the wealthy owner, who holds a top spot on the forbes list by the way. that is a little bit of a hint
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liz: time to go "off the desk." he has not only been named the wealthiest man in india but the proud owner of most expensive home in the world according to a forbes list released today. here it is. his 27-story, 400,000 square foot skyscraper. costs between 1 and 2 billion to construct. that is the equivalent of construction costs to build seven world trade centers in manhattan of the tower includes six underground parking levels, three helicopter pads because two isn't enough. 50-seat theater and requires a staff of 600 just to keep it running. david: aye yi yi. we asked you on twitter and facebook if you're worried that the fcc would start to regulate internet more. john on twitter says, forget the fcc internet working fine without them. >> liz: bruce says, when wheeler
says don't worry trust us, that is political code speak for the exact opposite. david: number one thing to watch. april housing starts and building permits. they expect to rise 3.4% from a 2.8 last month. gerri: hello, everybody, i'm gerri willis, right now on "the willis report"? veterans affairs secretary on the hot seat over appalling treatment of vets. >> any adverse incident like this makes me mad as hell. gerri: he may be mad as hell but what is he going to do about it? also, wholesale prices for food are skyrocketing. big prices could soon hit supermarket shelves. the right way to invest and make money in real estate. we're watching out for you on "the willis report." gerri: gm customers were hit with no less than five safety recalls today,