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tv   Countdown to the Closing Bell With Liz Claman  FOX Business  May 19, 2014 3:00pm-4:01pm EDT

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still a lot of work that needs to be done especially as it relates to parking. adam: got it. all right, thank you both. thank you for joining us, i hope you're making some money today. "countdown" starts right now. ♪ ♪ >> stealing secrets from american businesses, the justice department files criminal charges against several chinese military officials. accusing them of, among other things, stealing designs for a nuclear power plant. what will it mean for u.s./china relations and trade? plus, are american companies sitting ducks? the ceo who exposed china's espionage is our guest. at&t makes it official, agreeing to buy directv for $49 billion, its biggest acquisition in eight years. how will the combined company stack up next to comcast/time warner cable? and what will it mean for you, the consumer? google is trying to get in the game. the tech giant is reportedly in talks to buy twitch.
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will an acquisition be a game changer for google's youtube, and would it move the needle for google's shares? "countdown to the closing bell" starts right now. ♪ ♪ liz: good afternoon, everybody, i'm liz claman. it is the last hour of trading, and some beaten-down internet and tech stocks are today leading the pack. remember trip adviser getting hammered a couple of sessions, both last week and the week before? look at it, today up 5.25%. netflix jumping 4%. very nice move. and pandora having a good couple of sessions, up 4.25%. that's helping the nasdaq do rather nicely, gaining 32 points at the moment, three-quarters of a percent. nice move to the upside. that means it has risen two of the last three weeks. look at the russell 2000, up about three-quarters of a percent. and, of course, the dow jones
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industrials up 18 points at the moment to 16,509. the dow did lose ground last week. let's get to merger news dominating the monday headlines after at&t finally made the offer official. people agree over there. we've been talking about it. buying directv for nearly $50 billion. $95 a share. the stock is well below that right now, but we'll get more on it in just a moment from both a regulation stand point, a competitive standpoint for people who want cable and want broadband, wi-fi, the whole shooting match and much more. and talk about rejection, no, we're not talking about the nba playoffs, but about pfizer. it's upped its bid to as -- astrazeneca to $120 billion only to get the brush off. several analysts say, nah, it doesn't work like that. it isn't dead yet. check shares of both of these
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stocks, astrazeneca down 11%. when you walk away from that kind of deal, the market doesn't like it. pfizer moving higher by nearly a percent. we need to tell you about general motors. general motors naming a new global communications chief amid the fallout over its recall crisis. last week gm recalled an additional 2.7 million trucks and cars for a whole slew of new reasons. tony cervone rejoins gm, trying to get this house in order. let's look at shares at the moment, and as we pull them up, general motors is in the green by about two-thirds of a percent. year to date, though, not a pretty picture. the company's previous top spokesperson stepped down last month after the automaker's botched recall of faulty ignition switches linked to more than a dozen deaths. okay, let's get to our top story. turns out the rumors were true. at&t announcing it'll buy america's biggest satellite television provider, directv,
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in a deal worth $49 billion. it's a massive one, and if approved by regulators, the combined company would challenge another mega cable merger and that, of course, is comcast/time warner. who will be the winner in this battle to become the leading u.s. cable and broadband heavyweight? let's bring in our all-star panel. brad and john birdmeyer. senior staff attorney. right to it, brad. $95 a share, we can see that the stock is trading well below that right now. from the looks of it, just from the surface i would say are they paying too much? is this a deal that somehow isn't liked by the market when both of these names are down? >> well, you know, i think that the price, the stock price is up 10%, $90 is 10% up from friday's close, and it's up 30% when the deal was first announced april 30th. so i think it's a pretty good deal when you consider what the price has been for other types of mergers in telecom and cable. liz: john, does the deal make
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sense to you? i know as a lawyer you're looking at it from a completely different perspective, but what do you think about this matchup? >> yeah. the two networks are very different, so i have a question about what exactly they plan to do with each other. if the plan is just for at&t to start bundling its wireless service with directv tv service, that's not the future of video, that's kind of boring. i want to know what they want to do that they couldn't do without directv. liz: how about just getting bigger and scaling up on many different levels to become the so-called quad play, john? >> well, the quad play is interesting because at&t really is not that dominant a wire line broadband provider right now. so i see nationwide they'd be able to offer maybe directv bundled with wireless telephone service, but that's not really a quad play, and i don't see how that's terribly competitive. >> they've got wireless, the internet, cable, telephone, brad, do you see it? >> no, i think that the future is really wireless.
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i mean, you know, it's just, you know, 91% of the country gets cable tv. it's been relatively flat for a few years. i mean, you know, the subscription base is relatively flat. i think what really is moving is wireless. people are watching content on mobile devices. people are cutting the cord. and so i think what this does is provide both directv and a, the can and, the a way to stay competitive in a wireless environment. at&t has 73 million wireless subscribers. liz: john, you know the regulators care about one important thing, and that's to make sure the consumer isn't slammed. as brad and i were talking before the show started, he said prices have gone up in cable. would this help that situation and in turn make it a little more open as far as getting acceptance from the regulators? >> i can see the argument that at&t wants to get bigger to somehow compete with comcast/time warner cable which, to me, is another reason for the
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regulators to be skeptical of that deal. but when it comes to lowering prices on pay tv, it's hard to see. in the markets where at&t offers a cable tv-like service, customers are going to be losing a competitor, so they need to show how whatever it does overcomes that. not only that, i'm worried about wireless competition. at&t and vise p together control so much more spectrum than their competitors, and this would just add to that. i'm looking at the possible effects on the wireless mark t as well -- market as well. liz: that brings in t-mobile. at&t tried to buy t-mobile. the regulators didn't like it. t-mobile, in turn, has been better for the consumer, and their business has grown exponentially. but surviving in the land of the giants is very hard. and, therefore, i'm just wondering if the regulators okay comcast/time warner cable but don't okay at&t or t-mobile or, at&t and directv, don't they
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just risk -- >> yeah, well, i think that's a legitimate point. i think everybody has to stay competitive and, you know, the comcast/time warner deal, you know, it's the two largest cable operator, so, there's, there's not going to be a bigger deal than that. liz: what stock do you buy here? is it dish who needs a partner -- >> verizon or charter which is getting three million from the charter/time warner -- liz: cablevision? >> cox. there's still a -- liz: cox isn't publicly traded, but you would like the previous names certainly? >> >> yeah. there could be more mergers and acquisitions. it's not going to be the size of, you know, a time warner/comcast or an at&t/directv. liz: john, do you think that the at&t/directv deal should be approved by regulators? >> i think regulators have a lot of hard questions that they need to ask. and i also think just looking at the political situation that the obama administration want to sit over one of the largest series
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of mergers and acquisitions in the communications industry history where comcast/time warner provides a justification for at&t/directv which would then -- liz: it happened with the airlines, you know? some of these big airlines hooked up, and american wanted to make a deal and suddenly it was, no, maybe not. you can't do that to american if you're allowing the competitors to hook up. >> yeah. at some point, though, they need to draw the line, otherwise we're careening towards monopoly. liz: in the end, we're a business network and we watch these things closely, but you saying go with the ones that don't are have partners just yet. >> yeah, i would think so. liz: great to see you. oh, and one last question, john, would you approve time warner cable and comcast? we know more details about that? >> i would not. and i would think that comcast/time warner, to me, raises a lot more problems than at&t/directv which itself is no great deal for consumers. liz: okay. well, i have fios and i'm happy.
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i dumped time warner, it was bad. [laughter] thank you both so much. brad, svp of research and john burke meyer, senior staff attorney. we have new developments in google's reported talks with twitch, that popular streaming site for video games. the the price tag reportedly more than $1 billion, ranking it right up there with google's top five large acquisitions. remember youtube, 1.8 billion? nest, 3.2 billion? boy, motorola mobility, that was kind of a mess, didn't quite work out as well as google had hoped. why the big premium for the site or is it what we don't know about twitch? >> developing news on that front, variety reporting that google is imminently striking a deal to acquire twitch for a billion dollars. this is why everyone says it's so attractive, it gets 45 monthly unique million visitors and has them broadcasting on the platform each month.
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this is where the teenagers are. destination for watching and broadcasting, video game playing. in fact, according to several reports, twitch entertaining offers from multiple companies inlewding microsoft concern including microsoft. and another reason it's so attractive according to "the wall street journal," twitch pushes more traffic than hulu, amazon, facebook and pandora, plus twitch could use -- they also need the help. they could use support from a bigger tech company. it's had a tough time keeping up with demand, and it's already been using the $20 million it raised last fall from thrive to expand servers in chicago, stockholm and elsewhere around world. from youtube's perspective, acquiring twitch will be a no-brainer. it'll help make inroads into the live video space, plus the gaming focus is attractive to advertisers because users tend to stay on the site, on the platform engaged longer. and youtube is also looking for new ways to charge higher
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rates to keep that ad revenue up. so a good revenue opportunity there for google. and, liz, i tooled around watching these gaming videos on youtube and twitch today. i came across a user with 27 million subscribers and four billion views, liz, this is what they're after. this is the business model for them. liz: anybody reading george orwell anymore, sitting and reading a book? how about that? listen, thank thank you, jo lin. the o.k. corral with these start-ups being bought for billions. i love it. it's great for this country. closing bell ringing in 48 minutes. the business of spying not great for the united states as u.s. attorney general eric holder says china intentionally snooped on american companies, stealing all kinds of information. and enough is enough. he says it won't be tolerated. are u.s. business secrets really safe? how should the u.s. fight back? how should your company fight back? we have the ceo who exposed a major link to the chinese government when it comes to
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hacking. kevin hand ya, our fireeye leader is our guest. and where is your credit card -- worried your credit card information might get hacked while paying online? online payment company -- [inaudible] stepping up your protection and the fees are so good they're still alive while square wallet isn't. the ceo joining me exclusively. ♪ ♪ are the largest targets in the world, for every hacker, crook and nuisance in the world. but systems policed by hp's cyber security team are constantly monitored for threats.
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♪ ♪ liz: 43 minutes until the closing bell rings, we've g the major averages rising, a far cry from what happened at 9:30 a.m. eastern when the markets opened. what's leading? believe it or not, the nasdaq where tech stocks are really charging ahead. let's not forget the s&p 500 which is coming off a two week decline. i'd like you all to remember something interesting, 76% of the s&p companies that have reported earnings have beaten their numbers. let's get to the floor show. hi, ben willis. on this monday things just feel more springy and happy, but are
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we getting sucked into something that could more dangerous or are you okay with this rally? >> i'm okay with it. maybe some of the other indices have not followed. last time i was on, i was talking about the russell 2000, the s&p 600, those are the small cap indices that have been giving you the signals very early, and again this morning they gave us that indication. but hi think more -- i think more importantly for the psychology of the marketplace as we were down early at 9:30 because of the overseas selling pressure we're seeing, we had a comment from the head of mastercard saying that they're seeing a pick up in purchases that will outpace the first quarter. that, i think, was probably the biggest psychological boost to this market that allowed the market to continue to its upside. once again our partners from overseas got done selling what they had to. liz: well, yeah, i'm glad you're agreeing with me on this, and i was looking at the philadelphia semiconductor index, the stocks. for some reason this morning i looked at that, and it's up
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about 1%, so the intels of the world, the big guys that really here in america make a lot of things. granted, a lot of their business is overseas, that's got to be a good sign, ben, right? >> it absolutely is a good sign. and it goes back to what i've been pounding the table on. what you saw early was the stock market reacting to what had happened in china and overseas. liz: okay. >> but the advantage will be taken by investors that are watching fox business have to know that you buy stocks, not the stock market. that trade's over. that was last year's trade. liz: that is pure buffett, buy companies. let me get to gary kozlowski at the cme. and, again, i don't know, you look at the ten-year yield, 2.53% compared to something like this. philadelphia index up about 1%. it just seems like a lot of the names in the stock market are the ones that pay dividends. gary, what do you think? >> well, it's nice to see that we came off of those morning lows at the 249 level. that's one thing. and i think mastercard, as your
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previous guest said, mastercard did give things that little bit of a jump, so we're seeing the yields slowly coming up. a lot of people are still waiting on wednesday what the fed's to do, and then you hear in the background a little bit about bernanke going on these talks and saying that the fed really isn't going to taper back that much more, and we're not going to see those interest rates change for some time. so everybody's just kind of getting themselves positioned to see what wednesday's numbers are -- or what the fed says on wednesday. and then don't forget next week, we have the initial claims for employment numbers, and we'll see if those are going to be weather-affected. and we also have the holiday coming up, so we're seeing a little bit lighter volume. the volatility index is holding right now. we're not seeing any major jumps. and, again, like your guest was saying, we're coming into this buying stocks, not buying the markets. liz: gary, and i know you want to know this. tomorrow, right, isn't it, mark, tomorrow that we have a very
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rare interview with the new york fed president william dudley. 3 p.m. eastern. he's not one of these guys who gets out and talks a lot. tomorrow he's going to be on fox business. got to hear what he says from that sort of perspective of the new york fed president. please, i want everybody to watch that. ful it could move the markets. let's get to the oil prices, jeff grossman. natural gas having kind of the biggest move today, right? >> very healthy. again, from a technical stand point, this market has reached somewhat of a bottom, that mid 430 area showed tremendous sport here. the truth of the matter is there's nothing to give you the impetus for it to go much lower. that could change, of course, when we get thursday's figures, but at this point you've got to get yourself ready for the hurricane season, i hate to tell you. it's coming into play, and you've got the buy your lottery tickets. and people are starting to nose around in the options, looking at the five $5, $6, $7 calls hoping for, unfortunately, a
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disaster that'll disrupt things. that's the game that's played. usually it crashes and burns, i hope it does, but it's a possible play. liz: always watching natural gas during hurricane season. great to have all of you. thank you so much for joining us. closing bell ringing in about 38 minutes. big questions about who will be the next leader at jpmorgan after jamie dimon retires. is the lack of a clear successor driving key employees who want the job away? charlie gasparino made it out of vegas alive! he still has the growy skin, too, yeah, you remember that from mid friday. he's coming down next with the details on jamie dimon. and what would a full-on cyber war with china look and feel like? totally different from a real war, right? well, the united states files criminal charges against alleged hackers working for the chinese government. we have the ceo who caught some chinese hackers red handed. he's next. ♪
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♪ ♪ liz: been a while since we've talked about jamie dimon on show. several top executives may have left jpmorgan since the financial crisis, okay, and that may have been due to the fact that there was a financial crisis, but there's also another reason. the guy at the top doesn't plan to leave anytime soon. charlie gasparino here now with exclusive details. >> i mean, what's really interesting about this story is that if you read some of the press recently, there was a lot of talk about jamie dimon possibly setting a time about stepping down can. i saw several stories about this. here's what we know from inside the company, what we are hearing from sources inside jpmorgan, and these are senior executives at the firm, that jamie dimon is signaling he isn't leaving, he's saying he isn't leaving anytime soon, and here's the rub here -- liz: he's pulling a buffett. >> he, quote-unquote, won't entertain the idea of
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retirement. so, essentially, he's not even putting in place a succession plan which is pretty interesting. that's why you see this string of people leaving, michael kavanaugh recently left, he was the cfo, and the coo most recently, jeff staley, frank business ig nano, many, many top executives have left, the last one to go, and it's simply this: jamie is telling them, good-bye, i'm not leaving, i'm going to stay here for a while. he does not, he is not entertaining the notion of retirement. now, that's kind of interesting. a lot of these firms want, you know, boards of directors are very vigilant in terms of succession planning. my guess is if jamie, god forbid, got hit by a car, somebody would step in his place. but there's no name. i can't think of anybody. liz: for a while there i thought about heidi. >> >> heidi miller?she's out.
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liz: she left of her own volition. >> the person responsible for the london whale fiasco. so, you know, frank bisignano, gone to run a company, first data. kavanaugh, gone. liz: [inaudible] that's not the way to say that. hire from the outside. >> i knew what you meant. you know, it's a good question. i don't know. it generally is not the way things go at these banks, you know? you bring someone up. so it's really interesting. you might see even more people leave now. you know, there is a downside to this, you lose people like kavanaugh, you know what i'm saying? liz: well, we saw this with ge when jack welch was deciding -- >> different. different. jack had a succession plan, and jack put three guys out there. liz: right. >> bob nardelli, jay mcinerney and the gentleman who is running it now, jeff immelt. and they competed for a while --
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liz: and then there's the ford way. ford said mark fields is our guy when we're ready and when alan mulally's ready to go, and it really helped, i think, psychologically -- >> and there's the blackstone way. steve schwartzman says, oh, tony james is my number two, but there's that other guy, i forget his name, tom hill or something like that. i can't remember his name, who -- i'm blanking on his name -- who is probably the heir apparent, but he keeps tony james. so these things, there's no rule book on this stuff, but i can tell you inside jpmorgan people are leaving because of this. swraimmy's saying i'm not -- jamie's saying i'm not going anytime soon. liz: i'm glad you decided to return to us from vegas. >> i wish i was still there. liz: we were commenting on how glowing you looked. look at the difference here. look how smooth and happy and glowing -- >> that's because i was out of the office. liz: but the yellow shirt is from vegas, and here we are today. >> no, that's because the makeup
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lady went nuts on me. liz: oh, really? >> and you know me, i never take makeup. she was an older woman, and she got really nasty with me. she made me sit in the -- liz: was she mean to you? [laughter] you know how it feels. >> am i mean to people? liz: no. [laughter] >> i'm nice. i'm a lover, not a fighter. of. liz: so, vegas, did you lose money? >> i didn't gamble. i had a great time. we made -- fox, by the way, i wanted you to know, we weren't there with cameras, but our presence was very well noted inside the place. liz: picked up a lot of what -- >> anthony was very interested in what we were reporting. we killed cnbc on the biggest story. we told our viewers, and you could have made some money, that david tepper was going to move the markets, and he did. liz: and he did. i was at the salt conference the very first year, and -- >> 2008. no, 9. liz: 2009, and it was great, and
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i think anthony should look at the ability that you have to do that and bring in the cameras. >> well, you know, here's the thing, he's got to deal with cnbc. liz: okay, let's go. >> contributor, what can i -- you know what? we beat 'em all the time. it just takes this to beat cnbc. this just shows you how easy. liz: right. good to see you. closing bell ringing in 28 minutes. we're glad he's back. the u.s. government charges five chinese individuals in the government there with spying against u.s. companies including westinghouse, alcoa and u.s. steel. our next guest sounded the alarm long before today's announcement. months and months before. kevin mandia was on it. fireeye. yes, and he talks about how great the threat is now and if today's charges will have any impact whatsoever on economic and business espionage. speaking of security problems, how many times a day do you swipe your credit card?
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can your banking information ever truly be safe? one start-up has the solution. level up is the name. they're leveling the playing field against would-be identity thieves. it's a fox business exclusive with the ceo. seth's coming up and, yes, he wears orange glasses on his head all the time. ♪ ♪ all stations come over to mission a for a final go.
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verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. ♪ ♪ liz: here's a dow fun fact for you. in keeping with the low volume relatively directionless day on wall street, although we've been up to the upside for quite some time, the dow jones industrial average has crossed the
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unchanged line 31 times. hey, we've seen this thing cross about 60 times in other days, but there are a bunch of names that are moving today. let's gets to nicole petallides on the floor of the new york stock exchange. nicole? >> that's how trading goes, you have the back and forth action, positive/negative, positive/negative. we have some real movers, and by the way, the dow is about 8 points off the session highs. let's take a look here, we have jcpenney, one of the most actively-traded stocks, that's down 3%. morgan stanley raised their price target. their sales recently actually topped views, but they still have an underweight. take a look here, at&t, they're on the verge of recovery, though, i have to be honest. of course, we've been talking all day about the directv merger which really hinges upon the nfl. now, the nfl renews their contract, looks like at&t's deal will go through. if not, they may not necessarily want to participate.
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how about pfizer? pfizer right now up about 1%. when we follow pfizer, we're also watching astrazeneca. don't forget, this was the deal, it was final, pfizer say, and astrazeneca saying, nope, we're still not interested in teaming up with you to be the global behemoth in pharma. so what we're seeing is astrazeneca's been down over 12% a short time ago. so we're watching that, and bank of america, another name -- down for the year, like many of the financials that are actually lagging this market, but posting a gain today for bank of america. rite aid didn't fit in there, liz, that's been higher by about 2.5% up on some walgreens news, they're moving together with the group. liz: very interesting. yeah, i don't know. final, pfizer keeps saying, that's it, this is the final offer, but maybe there will be another one. we'll watch it and, of course, let you know. enough is enough, that's what united states attorney general eric holder said earlier today about the alleged chinese cyber espionage. listen.
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>> the success of american companies since our nation's founding has been the result of hard work and of fair play by our citizens. when a foreign nation uses military or intelligence resources and tools against an american executive or corporation to obtain trade secrets or sensitive business information for the benefit of state-owned companies, we must say enough is enough. liz: stealing information about steel. look at this on your screen. the hackers are believed to have attacked companies like alcoa which, of course, is a big metals and aluminum company, allegheny technologies, metals, solar world, and let's not forget a bunch of other names including the u.s. steel workers union? i mean, what's going on there? is what do they want to know? we don't have to dig very far far because joining us now is the man who started digging well before the government did and in 2013 uncovered the hacking plot
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in 2013 that found that building in shanghai owned by the government where a lot of this hacking behavior was disseminating from. kevin mandia is fireeye's senior vp and chief operating officer. you were so ahead of the game. back then i think we were looking at hacking of "the new york times" and the "wall street journal" which is in this building, by the way, the journal. what did you think of the action today, and what has been revealed? >> well, i think the government knew for a long time what it revealed today. you look at some of those investigations, they were going back to 2006, 2007. at fireeye when we were responding to these intrusions, we responded to 141 victim companies that we can attribute the pla unit 36198. so they've indicted five people for the intrusions into six companies while we know of another 135, and i'm sure the government knows of many more than that. liz: are the people who have received the, what, 31 ounce counts of all different charge,
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aggravated identity theft, causing mayhem or damage, all kinds of issues, were they coming from that building, do you know? >> yeah, i think they probably were. when you look at pla unit, we traced back thousands of connections to that building, the vicinity of that building. so it's most probable those individuals are all co-located in that building. liz: co-located, boy, that's a high frequency trading word, but it works perfectly here. china says this is fiction, but there's the building. and your work, of course, is certainly impressive. is that china saying, oh, we have nothing to do with thisesome. >> it's absolutely not fiction. there's so much evidence out there that we're just seeing the tip of the iceberg. we've seen six companies, thousand you're going to see more and more and more. the government's aware of other victims. it's just going to continue to emerge. i think this was just the final thing, you know? we've tried so many other steps to change or impact the behavior of nation-state attackers out of china hacking for economic gain
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that there budget that many steps -- there wasn't that many steps left to take, so now we're trying an indictment of people in order to enact change. liz: okay, so what were they stealing? allegheny? steel? but then you get to the solar and you get to the nuclear power stuff. they were, apparently, also stealing all kinds of information about cost. it's just a business issue or is it something more nefarious? >> well, i think it's a couple things. if you're doing mergers and acquisitions in china as an entity, you will most likely be compromised by nation-state attackers to get leverage information ahead of the negotiations. if you have any pending litigation in china, you'll also probably get compromised. those are two reasons that, quite frankly, the motivation behind it is most likely economics. liz: you know, the u.s. government taps into companies too. i'm just trying to be fair here. i mean, the chinese take it to a whole different level, but are we doing the same thing, kevin,
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to other countries? >> well, i can tell you just in principle as a former military person be, we're sworn to defend our country, we're not sworn to offensively hack for economic gains. so if you want to put a bright line in the middle of this debate, the chinese government because it's communist was state-owned enterprises that can benefit from hacking a utility or hacking a pharmaceutical. it's just a different landscape. and we don't hack or do offensive operations for economic gain or to steal trade vet -- secrets. liz: well, we don't have to. the chinese have always replicated, not created. it was kevin's work from the beginning that pinpointed that building, that government building. so congratulations to you and your team, and we'll be speaking to you in the future too. great to see you. >> thank you. liz: kevin mandia is fireeye's senior vp and chief operating officer. smart guy. closing bell ringing in about 15
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minutes. smartphones that helped us replace just about everything from our watches to our cameras to snail mailboxes and cd players. so what's the new holy grail for mobile? to replace your wallet. our next guest might help us achieve the dream of ditching our plastic cards and rummaging through our wallet. the fox business exclusive with the ceo of levelup, the platform that could make the traditional wallet go the way of the cassette tape. oh. and as we go to break, horse racing officials giving the green light to california chrome to wear those nasal strips on its nose in the belmont stakes next month. that keeps his chances alive for winning horse racing's first triple crown in 36 years, and that got be us wondering to let you know who makes nasal strips for horses. it's a small private company called flare. not to be confused with the bigger mistaker of breathe-rite
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nasal strips for humans. that's back in sew smith klein's -- glaxosmithkline's company. we'll be right back. ♪ ♪ can you start tomorrow?
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yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. when csx trains move forward, so does the rest of the economy. csx. how tomorrow moves.
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i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan,
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in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. liz: the next problem technology is trying to tackle what to do when you forget your wallet at home. as long as you have your smartphone with you, you are in some luck. twitter founder and square ceo jack dorsey is in retreat if from the mobile payment space. our next is fully entrenched and
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firmly believes the revolution is upon us. levelup may have just cracked the code that dorsey couldn't. their technology keeps consumers' data secure, but it also pair that is with a very low fee structure that keeps merchants happy. the ceo, and he calls himself the ceo and chief ninja, of levelup joining me now from boston, seth priebatsch. when i saw that square, which was really at the forefront of mobile payments, was pulling out of their mobile wallet part of the business, i thought to myself, wow, that's interesting. they couldn't make a go of it, but you can. what did you think when you heard about jack dorsey and square pulling out of mobile wallet? >> so, you know, at first blush we thought it was good news. it's nice to be able to have, you know, a little bit of open space in the mobile payments world. it's a very crowded space. but on the whole, we tend to think that more competition in
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the space is better. i think what square wallet did incorrectly is they were charging a competitively high fee to local merchants, 2 the.75%, levelup is just 1.95%. and while it sounds like a small difference, that's about $10,000 of savings for a local merchant every year. that's really, really important for them. liz: well, i actually saw my first levelup thing when i walked into a salad place on the east side of manhattan, and i thought, i know seth, this is great. you also have the small business world involved too. so, clearly, you're doing that right. how are your margins? if he couldn't manage to do that business, how is it possible that you are? >> so levelup takes a particularly unique approach to the mobile space. we basically made the pledge to merchants that we're not going to make any money on payment processing so we charge 1.9% because that's what it costs us. we've made a lot of security improvements, so we're more secure and less expensive for the merchant. now, where we make money is we
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enable merchants to run really powerful, really effective loyalty campaigns and rewards plans. we charge a fee to merchants for that. consumers save money, merchants drive new revenue, and we think that's the model to make mobile payments a reality. liz: well, 14,000 vendors are participating, and you've got more than a million users e85 employees. -- 85 employees. if people are watching, what do they do? app? how do they go about doing that? >> yeah. so it's really simple. you just download the free levelup app for android, iphone or windows phone, you'll rink to your favorite deck lit -- link to your favorite debit card, and then you can head to any of the 14,000 locations and pay with your phone securely. seconds later you'll get an e-mail receipt to your phone and probably unlock some rewards from the merchant. liz: seth, i'm going to hold up my wallet. it's a sad and pathetic thing. it weighs a pounds, it's huge. i can't even close it anymore. it won't close because i've got so much in it. young, i would love it -- you
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know, i would love it if at a certain point i don't need to schlepp this thing around, but there is the issue of security. anybody could steal this, people have wallets stolen all the time, but today it really was underscored, the emotion of what's going on, as the u.s. government is charging the chinese government with hacking. how can you be sure that your organization and your group and everybody that's using it is safe from having all of their money cleaned out of their bank account? >> yeah. so security's, obviously, a key concern whenever you're taking anything as important as a wallet and moving it to a mobile device. and one of the real benefits that levelup has is it helps protect merchants and consumers against things like the target breach. when you link to levelup, that's the last time your card is ever share with the a merchant. when you scan that qr card, it changes, it rotates over time, so it's kind of like you pay the merchant, and then the numbers all jumble around and scramble into something new. liz: and who even needs a smartphone when you've just struck a deal with pebble watch
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as well, correct? >> correct, yeah. i'm not sure if you can see on my wrist, but we just launched with pebble a mobile payment app for your wristwatch. so if you've got a pebble, you can download the app to your watch, and if you want to be really cool, pay with your wrist at any merchant. liz: well, who doesn't want to be clear? prebatch, good luck to you -- seth priebatsch with, good luck to you. thank you so much. a. >> thanks, liz. liz: what are the chances that the at&t and directv deal goes through? our guest says this deal is, essentially, quote, a no-brainer. stay tuned, closing bell coming up. ♪ ♪
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are the largest targets in the world, for every hacker, crook and nuisance in the world.
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but systems policed by hp's cyber security team are constantly monitored for threats. outside and in. that's why hp reports and helps neutralize more intrusions than anyone... in the world. if hp security solutions can help keep the world's largest organizations safe, they can keep yours safe, too. make it matter. became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade.
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liz: ben willis said he was fine with this rally today and i pressed him. david: hesitate to call it a rally exactly you about certainly done a lot better than it did at the beginning. let's go to nicole petallides at new york stock exchange. we woke up of course with the deal, we already heard outlines of it last week but we have more details of at&t and directv, and yet, look at this, the stocks are down. in fact at&t is leading the downers in the day in the dow and that's, i can't figure this out. usually this is good news for stocks. >> that's true it really is. for the most part the two names are to the downside. it is not a done deal. we'll see if directv solidifies the contract for fnfl football and at&t can pull out if it doesn't go through much.
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liz: astrazeneca's stock tanking after the pfizer's take it or leave it. >> astrazeneca says no way at least for now. liz: huge drop for astrazeneca. [closing bell ringing] david: a lot of stocks are up. we don't want to seem like there are red arrows because there is not. let's start with one representing small and mid-sizes caps, russell 2000 over a full percentage. the dow weeking out a gain but individual stocks are worth noting what they did on the positive side today, including appleby the way hitting a 52-week high. it is scratching back eventually, to that level. still far away from 700 but well over 600. busy day. "after the bell" starts right now. liz: s&p closing close to session highs, not quite there. but when we were open lower today, it is pretty interesting to see the


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