tv Countdown to the Closing Bell With Liz Claman FOX Business May 27, 2015 3:00pm-4:01pm EDT
right off the bat, do you believe this $100,000 number or is it more? >> thank you for having me. it remains to be seen. this is the sophisticated use of data. maybe it came from target. maybe it came from home depot. used in a very sophisticated way. pulling back even more information. three things that we need to do. obviously, the irs. one question i would ask is is this subject to the same controls as the core tax return systems? they need to make whatever adjustments and they need to make it fast. there are two broader points. you mentioned congress. first, congress should immediately rewrite the laws so
the sequencing of information is different. right now employer waste data and bank financial information comes to the irs after the taxpayers start filing their tax returns. the irs has all the right information so that there is no refund fraud. much less refund fraud. liz: i want to explain to people that this is not a hack. they have earned their way into the system. they were just smart. birth dates, addresses, high schools that people attended. they had a lot of answers. they somehow managed to do this. how big is this going to get? 200,000 attempts. they were managing to get 50 million in fraudulent refunds. the hackers are smarter.
>> they are extremely sophisticated. one on the sequencing of the file information. you mentioned that i am a candidate for president. one of my six points, which were viewers can see online is all about taxes. largely solving this problem. i favor something called the competitive tax plan. bringing in a consumption tax. bringing in 150 million americans off. they cannot go in and claim the refunds. this would be a huge step forward in combating fraud. it would lower corporate rates. it would make a big difference on this identity theft and fraud. who knows where it will go. liz: how serious are you about running for president?
you are a gop presidential candidate. i did not see all the drama that we see when marco rubio announces hillary clinton. scott walker. you are really serious about this? >> i am speaking to you from iowa. we have an active campaign. i was in oklahoma city last week. i beat lindsey graham in the straw poll. yes, we are making a go of this. we are picking up speed. we will have added. liz: i think that you are terrific. in the meantime, you are saying that congress needs to act now and this could get a lot worse at the irs level. thank you. nice to see you. former irs commissioner and gop candidate did we need to hear from you. are you worried?
do you have any sense to whether you have had your data breached? please give us a shout. another massive drama hitting the business world today. the sport that most of the world considers a religion is now being watch for a different reason. a dramatic raid at a luxury motel. people involved in fifa ran away with sheets covering their faces. very wealthy people. charged with corruption and racketeering. loretto lynch has vowed to launch a full investigation into the fifa organization. the future of two world cups and within the balance. who is to blame and does the u.s. somehow -- a sports marker marketing.
are you surprised? >> certainly not surprise, liz. there have been rumors for a long time about the corruption. i think that it is the sponsors like visa, coca-cola. they are the ones that can hold the feet to the fire. if it is proven in court, 2018, 21 a2, moved out of russia. liz: week, the united states, may be considered along with the uk, perhaps. we may be the beneficiaries of what could be a corruption scandal. >> always very fishy. you have a situation where we all knew how hot it was during the summer, yet they seem to not really recognize that.
after they were awarded the world cup, they have moved it to november and december of that year because of the heat. this happened since they were awarded it. liz, i think that the united states, which was a losing bidder for that particular world cup, has a shot if it is reopened. liz: a fifth nomination. he is swiss. he has not been indicted. how could he have not known? this guy is known to world with an iron fist. at some point, will he be flipped him? all kinds of companies. 150 million in bribes that these fifa officials were able to map. >> it is highly unlikely. hard to get a reasonable person to believe that he did not know what was going on. you cannot convince me of that. you are supposed to vote him in for a fifth term this friday.
right now, fifa has lost so much credibility. a lot of people always had their suspicions. they need to take a timeout. they need to regroup. yes, liz, let's be clear, the sponsors, they are the ones that have to step up. sony, adidas, nike. some of these have actually complained about impropriety. >> they have requested that an investigation be done. there was a report that was done. that report was kind of squashed. going forward, i think these other companies will do the same. it can have an impact. tiger woods and the domestic abuse / year. when companies come out and speak, that could impact what
goes forward. liz: we will see. say it ain't so. listen, we are watching this very carefully. we will see if he has been re- upped for his contract as president. today, tech is taking charge. the nasdaq flirting with record territories. i believe we are above at the very moment for the nasdaq. are we? yes? no? yes, we are. 5106. let's get right to it. just one day after stocks got slammed. today, we are watching this. let's get to our floor show. we have ever one involved here. keith, one day after we were hitting lows, suddenly we are at record highs for the nasdaq's. >> expects him about volatility to go right through the week of
june, by our calculation. the s&p 500 may take a little bit longer to play out than the dow. the market has remained in a positive uptrend. none of those levels have been violated. this bounce back is not all that surprising to me. we are seeing a pretty radical divergence between the transport index and the dow jones industrial index. liz: i knew you were going to say that. you are right. there has been a slight divergence here. >> that is right. it may take some time to play out. between the transport and the industrials. this divergence, which is pretty radical, i must point out. the s&p 500 hitting an all-time high last week and the transports hitting a low.
2,002,007. three speed market drop. i think that it is worthwhile for people to pay attention to this. liz: let me go to jo at the cme in chicago. let's not ignore it. a plan to avoid the default of the payment next week. >> you know, not really. greece has been on the radar for the last five years. what everyone is talking about is keeping an eye on the global conditions right now. really, right now what we are watching is at 6150 level. that could come to fruition. extended expansion of volatility. >> we need to watch those. that is a problem. >> yes. think about it.
central bank capital into the world right now. overall in the broad market, 6150 on the ac wia, if that breaks, we could see all the volatility that we are anticipating. >> we have a u.s. dollar that has resumed much higher. very bad news for oil. today, oil continues to move. >> yesterday's drastic move is definitely why we were down. this morning at about 4:00 a.m. eastern time, you saw oil of about 70 or $0.80. we look to trade lower going into tomorrow's numbers. we had draws two weeks in a row. getting out of $54. >> 2 million barrels. we will have it right here on fox business.
guys, good to have you. closing bell 47 minutes away. look at these people. do they look happy to you? no, they are not. silently marched outside of a war in both its annual shareholder meeting in their uniforms. suffering such severe turbulence. why is it going on for two years? will they be able to strike against the oracle of omaha? we are bringing in the union. the men and women of the negotiations. is a solution on the way? expected to say we will have a below average hurricane season this year. we all remember the complete devastation of storms like super storm sandy. costing millions of americans major problems.
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net jet's and its pilots. it does fractional ownership with wealthy people is looking to cut pilots. net jet is run by warren buffett the oracle of omaha. we picked up the interview with warren buffett, and here's what he said about the net jet pilots that want more. >> they average about $145,000 annually. and they're on for seven days and off for seven days. they like the work arrangements. they like that they can enter the system at almost anyplace. we don't see our pilots going elsewhere. they have good jobs. we have a good business. liz: it's a dispute that's dragged on for some years. is that the way pilots really feel? joining us now, pedro is the president of net jet's association of shared pilots, the union
representing net jet's pilots. okay. are you guys going to strike? this is going on for so long, at some point, pedro, there is a massive stalemate, someone has to move on this. >> we're currently in mediation. we're probably ten or 12 months before we can request to go on strike. liz: you have to request to go on strike? >> we have to request under the rules we work under to have the ability to go on strike. and we're probably ten or 12 months. but if management continues down this path, we feel like we have no other option other than going on strike. >> warren buffett told me and fox business that these pilots are happy. they do well. they make 145,000. what did you make last year? >> i made somewhere in the lower 90,000-dollar range. >> is that because your time was split between running the union -- >> no, i've been here ten years.
make $80,000. >> with all that training. >> with all that training. >> and you're flying nca, p diddy rapper types that make millions of dollars. >> we're flying the captains of industries. >> like warren buffett. >> absolutely. on seven, off seven, we're away from our families the entire time. >> pedro, let me push back on you a little bit here. warren buffett says this is what the market will bear. that 145,000 average is what jet pilots are supposed to pay. >> net jet is the rolls-royce of aviation. if you start putting, you know, hugo parts in a rolls-royce, it will have an effect on it. we make 40% less than our counterparts at the airlines. >> commercial airlines are different.
they're flying 200 people at a time. isn't that an apples to kiwis comparison. >> there are differences. but a pilot is a pilot. net jet's pilots, we have the world class pilots. in order to retain world class pilots, you have to pay what's commensurate with our -- >> there's been a lot of change at the top. richard who first ran net jet and then david -- now jordan who is an attorney. very capable. i've talked to jordan many times. you have to keep us posted on this. i can't imagine this drags on for much longer before you guys say we're out. you say 98 pilots have been left or been fired the last couple of years. >> our own internal polling is saying 35% of the pilot group is looking toggle to go elsewhere. >> i witnessed the protest, they were respectful. quiet. right outside. they were walking in
their pilots uniforms. about 400 pilots. and they flew in from all over on their own dime. it's a passionate situation. mr. buffett says he loves his pilots. this is what the market will bear. thank you. keep us posted. thirty-eight minutes away, closing bell. stocks aren't the only thing heating up. taxis are heating up their battle against uber. charlie gasparino more exclusive details on this developing story. stay with us.
lawsuit. charlie: this is the first official step in melrose credit union. one of the biggest financiers, to pick up someone on the street, you need a medallion. sometimes these owners lend their cars to someone else. you need a medallion to pick up people on the street. an exclusive right. liz: is it literally a medallion. they cost a million dollars? >> it's gone down since uber. that's why the established taxi industry -- new york city taxi, this is a big story. new york city is the home of the taxi. it's an iconic image of the taxi. probably more taxis here than any other place in the country. now, the taxi industry is fighting back and very viciously. melrose financial, three other banks that finance these medallions who are worried about getting repaid -- when they lend money to people who bought these medallions have filed an injunction basically saying that new york city and new york state is violating
the law, they are not preventing uber from picked up what is the functional equivalent of a street hail. it doesn't matter if you do it on your app or not -- liz: lift your arm. >> when you say pick me up in three minutes or now, i'm on the corner of 59th and second, or whatever, that's the equivalent of lifting your arm and standing in the street. >> it is not. >> that's what they're saying. the lawsuit demands that new york city files with new york city taxi laws. the bank says that (?) these street hails are essentially prohibited under law. here's the interesting thing, they say this is the sort of first step to a -- a multibillion-dollar -- i spoke with the bank's spokesperson. multibillion-dollar takings claim that the city -- they'll sue the city, they'll sue the state, and they'll say, you have allowed us to be ripped off by not enforcing a law multi billion dollars. we want that money.
the taxi limousine commission of new york city says they will review the papers. we will get them. no comment. we put calls into new york state. eric is named in the lawsuit because he's a chief legal officer of new york state. uber has no immediate comment. i will say this about this -- about this suit, and it's a fascinating reading. i haven't read the whole thing. skimmed it because we got it. if you look at page 100 of the lawsuit. liz: you skimmed all the way to -- >> paragraph -- >> oh, paragraph. >> i was directed to this. i'm not that fast a reader. i'm a dyslexic. it says in that paragraph that using an app in a different case is a functional equivalent of a street hail. that new york city itself in defending itself -- liz: well, i don't know what they're drinking. but that's not -- charlie: so what they're saying is new york city has already admitted that basically the app,
the notion of calling a cab on an app is the functional equivalent of a street hail. they said that -- they cite the corporation council of new york city. the lawyer for new york city making that case and claim. i think the lawsuit has legs. i can't tell you who will win. i can tell you that the battle -- as uber's valuation is skyrocketing. right? $50 billion right now. an investor on anthony scaramucci wall street week. listen, said this, listen they increased their valuation by 15 billion in one week. this company is growing fast. and, you know, it is going to face -- it is going to face some degree of legal pressure. i can't tell you who will be successful. but, you know, i think -- i don't know. no offense, but using uber is not quite like calling a limo company. >> it is not like calling a limo. >> it's mostly like -- >> when they show up, they're polite.
>> it's mostly like hailing a cab. new york city's taxi industry is highly regulated. it cost money to get that. liz: well, a peach is like a nexnectarine, but they're not te same. charlie: that's a good point. maybe the judge will say that. we'll see. fair and balanced. we'll cover it. dick folds from lehman brothers. first time since 2008. liz: where? >> at some conference. we'll have a major story about fold coming out about what he's doing since leaving lehman's. very controversial. liz: everyone stay tuned for that. twenty-eight minutes away for closing bell. green arrows all around. attention, meat eaters, from beef to chicken, a lot of food for thought coming up. the money-making potential is huge. forget the mug, forget the tie, forget the golf clubs, the apple wasp, omaha steaks. look at that. they say they're the
liz: we all know it pays to have friends. nobody knows that better than singer taylor swift. lego land held this competition to see who visitors would like to be best friends with. a lot of kids involved. right? taylor swift won by a landslide. look at this thing. they created this tribute using 38,000 legos. that's a gorgeous portrait. my staff. my genius staff did not have two days to
construct a taylor-like tribute. look what they did. this is a surprise for me. oh, my goodness. our graphics department helped create my very own tribute. head to facebook.com/lizclaman. that orange hair looks like the dorito taco from yesterday. it is that time of year again. i'm not referring to summer barbecues and pool parties. the national oceanic atmospheric association released their projections for what causes the 2015 hurricane season. they're predicting we could see two major storms this year, which is less than what we've seen in the past. who can forget the devastation that hurricane sandy caused? some businesses still years later are feeling the effects. this woman co-owns the crabs claw inns.
she's still dealing with the financial aftermath. thank you for being here. >> thank you for having me. liz: you're a survivor. thank you for coming on. here we are years later after superstorm sandy. what are you still dealing with? >> we are dealing with continued construction because of the devastation of the storm. besides the homes that were lost and still not replaced, so many of them have to be raised for new flood levels. so there are so many people that are not in their homes yet. older people who have completely left the area. we're seeing a change in demographics. people who would have been here renting -- or, in their own home living here for the entire summer are gone. and people -- the people that are buying the houses can't be here for the entire summer. they're just here for the weekend. so we've seen a sharp downturn -- >> look, the weather is something that nobody can control. we can be warned. but for somebody like
me, we live on the hudson river. it was a disaster too. we lost power. to see in new jersey -- a beautiful area -- are still dealing with this. what have you learned, louise? what have you done now with the expectation that you know something like this will probably happen again maybe in our lifetime? >> well, i'm going to choose to believe that it won't. but i have learned -- my husband and i have learned that -- is to sharpen our pencil. to not run the business the way we had before the storm in the respect of being more careful with our expenditures. we've learned that you can only rely on yourself because the government is really not there to help you. we have continuing roadwork going on here. and tha that has really hurt not only our business, but many of the businesses in our area.
and we've also learned that we have good friends. liz: in the end you have your life, your friends, and your health. we wish you and the crabs claw the best of luck. you're open for business? >> every day. liz: i want to go. crab claw inn. thank you and good luck to you. it is tough. noah is calling for a below average hurricane season. (?) doesn't leave us off the hook be with believ, believe me. twenty-six days until father's day. if you were thinking of going with something boring, one company is betting big that this year they can convince people to buy dad a huge slab of meat month after month after month. todd simon. omaha steaks. senior vp. how is business compared to last year? can you give us a sense of the economy right now? >> i don't know if i can give you a sense of the economy. in our business, business has been good. the summer is great. we're coming off memorial day.
>> how was that? >> memorial day was good. growth over last year. fourth of july. then off to the races with cookoff season. >> what are the favorite steaks for most men ordering on father's day. >> dad wants steaks. they want them. they want t-bone stakes. of course, we have them. >> t-bone, not filet. is filet a girl thing? i love filet mignon. >> i love it too. but we want to go big for father's day. >> and we're also seeing new products like filet mignon burgers. we also have family sized steaks. king cuts. they'll feed the whole family. >> how much does that cost? >> they range from $60 to $160. >> where are you sourcing your beef? >> we get all our beef from america's heartland. the heart of beef country usa. pretty tight radius between omaha nebraska.
>> why don't i go to whole foods down the street? >> we build a partnership with chef's garden. fourth generation family business. they are taking farm fresh vegetables. picking them. putting them in a box and shipping them directly to omaha steak customers. very similar to our business. they share a lot of our same values. >> a government panel is saying eat less beef. they're saying to not eat because they say it's better for the environment to eat more vegetables. does that affect your business at all? what was your first thought? are you kidding me? >> i'm not a nutritionist. everything in moderation. we eat a balanced diet of beef, seafood, whole foods. not a lot of sweets and added sugar. everything in moderation. it's not about heroes and villains. it's about eating less and exercising. >> and filet mignon
burger once in a while. dads want the t-bone. okay. thank you so much. >> thank you. >> omaha steaks.com. right? >> and remarkabledads.com. >> closing bell, 16 minutes away. (?) from beef to what's been happening to the chicken supply. the avian flu left millions of birds dead. consumers in a bit of a bind. your fight or flight instincts might tell you to run as fast as you can from poultry stocks. weather this storm. don't be a chicken. some names for you. stay tuned. we're coming right back. and we're watching a record on the nasdaq. ♪
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for the nasdaq. twelve minutes to go before the closing bell rings. time for the "countdown" closer. gary co-portfolio manager of the hodges small cap fund has just the investment cure for bird flu fears. nicole is on the floor hadn't new york stock exchange with the biggest movers. scott she will did i with the number one thing to be watching right now. (?) gary, to you first. you have what we're calling a bird flu by today. thousands and thousands of birds have had to be killed. state economies have been devastated. industry in turmoil. don't be chicken on a certain name here. which one and why? >> we like pilgrim pride's chicken. and the bird flu has not affected the boiler chicken market at all. and chicken demand remains strong as beef prices are really sky-high now. and we like the fact that corn prices are down. soybean prices are down. so pilgrim's pride has been improving their operating margins.
and we think this is going to continue as we all eat more chicken. and pilgrim's is a great business. they use 0-based budgeting. they've cut out 800 million dollars' worth of cost out of their structure. (?) we think they'll make an acquisition. and the stock is dirt cheap. but we think pilgrim's will earn about 350 a share this year. the stock trades at seven and a half earnings. we like pilgrim's pride. >> are you worried at all about a consumer backlash against chicken, at least short-term? >> liz, there may be a touch of that. we haven't seen it yet. there's a little bit of backlash from pilgrim's exports. they only export about 8% of their chicken. that's been held back here. but we think the consumer will eat more chicken going forward. and we like pilgrim's. >> you also like a lot of small caps. we can put up names from
cracker barrel to casey's general market. small caps took the brunt of the sell-off yesterday. they've been iffy. why are you a believer right now? tell our viewers. >> well, liz, we really like the environment for small caps. we think the economy is going to continue to grow. we think the consumer will be spending more in the second half of this year. these small caps are domestic. they've got great balance sheets. growing cash flow. growing earnings. a lot of them are buying their own stock. raising their dividends. we think the environment sets up well for small caps going forward. >> gary we'll put your picks up on facebook.com/lizclaman. not chicken on pilgrim's pride. gary bradshaw. closing bell, eight and a half minutes away. nicole, interesting day, especially after yesterday's sell-off. what's moving now? >> today we're up 145 points at session highs.
where is the volume to support the move? the nasdaq, technology has been a great mover. microsoft, intel, cisco are among the best performers on the dow jones industrial average. visa as well as the leader. but microsoft and intel, each up more than 2%. great day for tech in particular. liz: yeah. and then the pricey names. products, tiffany moving in the opposite direction of kors. tiffany is looking much better. michael kors is dropping pretty quick. >> tiffany is the number one performer. of course, the number one loser in the s&p 500. boaboth luxury goods. michael kors is out of favor. they're seeing less demand. >> let me get to scott, the number one thing to watch on a day when we see complete reversal. the s&p up 21 points versus down 25. >> that's what we're watching. that was the talk of the
trade. after the treasury tantrum that we had earlier this month. watching that rate slowly grind lower and at the same time, the us stock market player or speculator has now learned that if we have a one or one and a half down day, it's automatic wedge back. that's been par for the course as of late. all of us were talking about, will we be up today? that's absolutely what happened. i'm getting worried watching the stock market that the investors are getting complais ant. always thinking the market can't go lower. that's what's making us worried down here. that's what we talked about all day. >> as soon as you say it, it won't happen. right? see a sell-off the next day, it's a gain. scott, great to see you. he has the great twitter handle. scott the cow guy. scott the cow guy. look at the nasdaq, everybody. this is a record by a
♪ liz: oh, yeah, david. we're -- wait a minute. wait a minute. are we now -- david: nasdaq we have a record. nasdaq record was 50092. on april 24th. we're well on record territory on the nasdaq. by the way, we're not at an intraday record for the nasdaq. that was back in 2000. but we're very close. liz: let's get to the nicole. all the excitement on the floor of the new york stock exchange. we should talk about what we just referenced. only because tiffany. we need to focus on the fact that it is soaring even though it had lower profits, it still had
better-than-expected numbers. is that correct? >> that's right. it did well in europe and the americas. the t line jewelry line did well. despite the fact they had a strong us dollar to contend with, blew the numbers out of the water. a move to the upside. 10%. michael kors has been down 20% because they've seen their sales dwindl dwindle. >> 25% at one point for michael kors. coach was also down. apple was up nicely. that helped all of nasdaq do well. right? >> technology did well. apple was the winner. apple reportedly moving forward with some sort of new thing called proactive which will actually compete against google. that's another tidbit for this story. technology did so well. we're seeing this nasdaq record close, that's why. >> airline stocks. for five days, they've languished. what got them here? >> certainly it's very
interesting. oil has been pulling back. goldman sachs a couple of days ago said this group was undervalued. they finally -- people started to finally start doing bottom fishing and turn this thing around. david: all right. let's talk about broad come. up about 20% on rumors of a buyout. (?) >> come on. take a look of this move. the talk we've been hearing. this stock surged. broadcom is up 22%. >> if you look at the stocks index which compiles semiconductor chip stocks, look at this move, up nearly 4%. not bad. nicole: overall, a lot of optimism about greece. a deal obviously being struck to a certain extent. so afterhours sell-off in the hopes there will be some sort of resolution. that's some optimism david: we should mention that expectations for the first
quarter were lowered so much. it didn't take much to beat expectations. right? nicole: yes, to a certain extent that's right. liz: it is a record for the nasdaq. an all time closing record as the bells ring on wall street and main street. let's see how stocks finished. 5092, the number to beat. we have a win. 5106 for the nasdaq. (?) small caps had a great day. up one and a quarter percent. followed by the s&p. complete reversal from yesterday. >> we should mention we haven't succeeded enough on the dow to win over what we lost yesterday. we would have had to go over 200 for that. but it is still a healthy day nonetheless. we have a business hour straight ahead. after the bell starts right now. david: getting right into today's action, we