tv The Intelligence Report With Trish Regan FOX Business August 10, 2015 2:00pm-3:01pm EDT
we would zoom in on the to see whether pronounced up tick. you can see since the debate, more people are googling carly fiorina, what she did at hp, her whole story, running for senate. that chart illustrates her beautifully. ashley, i subbing for trish, i don't think you can top that with charts. >> the intelligence report, put my name against it. sittings in for trish regan. investor -- all three major indices climbing higher. nasdaq, s&p, up more than a point. oil by the way up nearly 2%. this rally comes on the heels of a seven-day losing streak, the longest for the dow in four years. but my, oh, my, what a monday. what a way to kick off the week. adam shapiro on floor of new york stock exchange.
also with us, economist austan goolsbee from the booth school of business. "wall street journal" jon hilsenrath and jamie cox. thank you for all of you being here. adam on the floor of the new york stock exchange. what a way to kick off the week, adam. what in particular is causing this? or is it a combination of things? >> when you speak to people on the floor here, thank you warren buffett and berkshire hathaway the purchase they're making. that $30 billion purchase. that is helping industrials rise. thank you china although nothing to thank china yet. dismal news out of china. people expect the money spigots open to so to speak and money flowing out into the market to help things grow. you look at some of the stocks with big plays overseas, caterpillar sup today. apple is leading dow. boeing is up. only two dow components in the red today, visa and coca-cola.
one quickie as i wrap up. not warren buffett or china you can thank, american express, part of apple pay. one reason it is in the green. thank you, warren, and thank you china. >> not bad. jamie, let me bring you in. do you think warren buffett giving these markets a nice little boost to kick off the week? >> of course. buffett fires his cannon every now and then and makes markets go up. markets love buffett. they like the fact he finds value in markets. put that aside and take headlines this morning that came coincident to buffett's decision to buy precision castparts. we're talking about national bank of greece. we've been living with these things all summer long. looks like greek banks will get capital and we'll not have a greek-type drama to deal with the next couple days. it is a nice breather, if you will, after a seven long days of a slog through the summer. we'll look to the fed coming up to see if they go. we'll be back and forth during
that time. >> we'll be back in greece whether they fall off the cliff story, probably sooner rather than later. jon, let me bring you in, talk about the fed. a couple of comments today. we had stanley fischer vice president on the fed saying listen, the inflation rate is so low. we don't have to raise interest rates in september. but then we hear from dennis lockhart, who loves to kind of get the markets riled up. he says, listen, look, the decision to begin raising rates is impending. but the markets seemed to be ignoring that right now. what is your thoughts on these comments from lockhart and fisher? >> there is a couple of things going on. fisher actually wasn't asked and didn't speak directly to the question of rates and when they're going up. but he did point to a problem that the fed has, which is that even though the job market is doing much better, it is closer to what he calls full employment. inflation is very low. that is a problem for the fed. i think that speaks to the dilemma they face as they go to
make that decision in september. lockhart reiterated something he told us last week which is that he is getting close to being ready to do this. september is very live in his mind but not everybody in that room is going to be ready to do it. so i think we could have some fireworks in september. it will be an interesting month to be reporting about it certainly. i think markets could have more ups and downs before it happens. >> that's interesting. austan, let me bring you in. 25 basis point in september. more and more people are on board with that. you have comments from fisher and other say, you know what? maybe not. maybe gets pushed back to december. what are your thoughts? >> i would distinguish my thoughts of what i would think they should do versus what i think they will do. >> right. >> i think there is a high likelihood they raise rates in september. they have been going for really more than a year, wanting to get out of the zero rate environment. i think that that's not a good
idea because i think if you look around the world, there is a lot of things going wrong and growth in the united states is not that strong. inflation is below the target. jobs performance is okay but not better than okay. so i wish they wouldn't but i kind of think they're knocking at the door within a short period of time, we'll be in interest rate-rising environment. >> but, jamie could you argue -- >> austan, if i throw out an idea here. i think there is also real possibility they do a move and we spend another year or six months waiting for them to act again. i think, they have kind of invested so much in doing this first move. i think they all kind of want to get it over with so they stop talking about it. there is a real possibility as long as inflation is go, is low, that move number two gets pushed off further and further as well. >> i think that's right. i think you're right but, i would say that in some sense that's a best-case scenario. what is the worst-case scenario
is that they raise the rates and then they have to do what sweden did which they raise the rates thinking economy was good and the economy went down and they lower the rates. >> let me bring in jamie. do you think the economy is the at point where it should be able to stand on its own two legs? what do you think? >> it sure seems that way but i agree with the other two gentlemen, it is definitely a risk. i thought fed is wanting to raise rates ever since december press conference with janet yellen. she has been telegraphing it a long time. i know she wants to do it. seems that way, get it out of the way. and just like all other of these market events we've been sort of scared about like sequester and some of these other things, i think markets are poised to do well after we get the rate increase, whatever that is. i think we're being held back by things that are sort of artificial in our own and the market's minds. i would like to get on with it and work about the rate of change as opposed to exact date they raise rates the first time.
>> let me bring back adam. adam, you talk to the traders down there. are they pretty much convinced we'll see september jump? we're only talking about 25 basis points. have they factored that in? >> yes, already factored that in. some of the mortgage rates are a bit higher anticipating how that will affect bond markets. at end. day they suspect this is going to happen. some point out that the fed will have to do something soon, once we get into 2016 we're pushing up against an election in fall 2016. they will not be able to do something then. >> let me finish up. austan, let me ask you a question about china. we seem to get data that is not so great but we seem to believe whatever happens the chinese government will prop it up, they will merge state owned companies. should we worry about china because of the huge backstop they have? >> i think we should still be worried. in the short run, yes, they have trillions of dollars of reserves. if it really hits the fan they can bail themselves out. they're not like greece.
>> yeah. >> but that doesn't mean it will not be a bumpy ride for sir, months, nine months or even a year. they have they have been trying the last year to put a stop to the slowdown and they have not been effective at doing it. i think we should still be doing it. >> buckle ups as you say. jon, jamie. you austan, stick with me here. hillary clinton unveiling a new educational proposal today. it is 350 billion-dollar plan aimed at making college more affordable. okay. she is announcing the proposal, called new college compact in new hampshire. that is the state with the highest average student debt in the country by the way. will it turn the conversation from the private email could not following her along the campaign trail? fred barnes from the "weekly standard" and democratic strategist, fred goodstein.
we have details of the plan from our very own blake berman. blake, what exactly is hillary clinton proposing? >> ashley, says hillary clinton costs will not be a barrier under her college affordability plan. that is way they're propositioning this. what they're proposing replace loans with grants by incentivizing states and schools to participate in a couple, to participate, there is a couple major points from her plan. here's two. students would be able to attend an in-state, four-year, public university without having to take out a loin for tuition. also -- a loan. those with current student loans, loans that might be too high, they would be able to refinance that loan. the finance tag here? 350 billion-dollars over 10 years. that would be offset by capping itemized deductions for wealthy families reported at 28%. ashley.
>> blake, what are the presidential candidates criticism about this. >> asking the wealthy to pay for yet another government program. republican contenders jeb bush and marco rubio call it a tax increase since the wealthier taxpayers would be ones footing the bull. bush called it, i'm quoting irresponsible proposal. rubio says this plan would continue to poor money into system that is broken and needs to be updated. ashley? >> as you would expect from those comments. bring in fred barnes. is this just an attempt by hillary clinton to get more votes from millenials? >> of course it is. look, the the important thing here, hillary has a college plan to help out college students and parents. doesn't make any difference what is in it. what is in it is very complicated. the states spend more. federal government spend more. colleges cut spending, if you take a certain type of job you use some of the money you get. extremely complicated, very much
like her unworkable capital gains reform plan. but in any case, look, like bernie sanders, hillary clinton, now has college plan. >> yeah. she has a plan. bring in rich. rich, what do you think. obviously the criticism from the gop, we knew they were going to say that. is this just an attempt to get voters from the young voters out there? i mean, you know, awfully high price tag, putting it on the back of the rich. >> so, remember, ashley, autopsy that the republicans did two or three years ago where they said republicans needed to do a better job as to hispanics that doesn't seem to be a message being communicated with all the talk about walls. they need to do better job with women. that is not coming across too well between donald trump is saying, with all the talk about no abortion under any circumstances. and, the youth. well, you asked, if she is going to be going for votes of the young? well, i hope so. the fact is, college student loan debt is a huge burden for
people 30 and under. 57% of them say it is kind of a life-changing decision. that is why you have so many students going back and living with their parents. frankly not starting new businesses because they have this debt overhanging them. it is a pretty inspired way for her to basically give opportunities for students, and, frankly, force colleges to kind of not have these diploma mills anymore. parents have to kick in something. states actually have to help out. the federal government will have a role. actually i think you're getting a lot of parties in here buying into something. is it burden on rich? you're capping itemized deductions for the people absolute upper brackets. anything, look anything that she does that involves any tweak in the tax code that hits the rich is going to be seen as soaking the rich. i guarranty you, those people at the top won't even feel it. >> all right. fred, respond to that? >> look, the point is, that it
is an extremely complicated plan. need all the different parts to work. you would do this simply. why not provide refundable tax credit for students or their parents? that would work simply. the money wouldn't go to colleges, so they could spend more of it the way they have in the past and raise tuition. give money directly to students and their families and, leave it at that. that would help it. you wouldn't have, wouldn't have to propose a tax increase that will never pass anyway. >> that's a good point. rich, let me, how much responsibility dot colleges, universities bear for the situation we're in? shouldn't they be held more accountable for the ballooning administrative costs that they're incurring and passing on to students? i mean at some point aren't they culpable in all of this? >> i think that is an excellent question. and that's frankly the answer fred's suggestion. fred's might work in some quarters, giving tax credit does moving to basically tighten things up with colleges. yes, i think a lot are getting away with murder.
you see costs are going up in ways that outstrip inflation. think that is exactly the beauty, one of the beauty's of hillary's plans we'll tie benefits to colleges own by if he produce students that actually get degrees. actually, again, think about this, diploma mills, where kids take out ridiculous loans for colleges and graduate school and never repay them and get diplomas. it is crazy. >> it is crazy. do we have any of the republican candidates that outlined a plan like this in regards to education? >> marco rubio, i mentioned a little while ago, talks how he wants to transform the system in general. one of the questions is, these colleges, this is a system that has been in place for decades, if not longer than that you need to take on loans, or the system. rubio has been talking about.
it is something we'll see here on out, ashley. >> thank you so much. for joining us. we appreciate it. speaking of 2016 hopefuls. do not miss governor scott walker on fox business. republican candidate sits down with our very own lou dobbs, that is 7:00 p.m. iron time tonight. lou and scott walker. close calls with drones at major airports are on the rise. so are calls to jail the operators of them. in the nation's heartland, high flying drones are a welcome sight to farmers trying to squeeze profit out of ever inch of soil. we'll show you how it is done next. later, boldly grow where lettuce hasn't grown before. astronauts on board the international space station, will eat veggies grown in space. it is a vary ridable cosmic -- veritable cosmic crop. don't go away.
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ashley: drones cause anxious moments for pilots at newark liberty international airport. four pilots reported seeing a drone as they attempted to land over the weekend. none had to take evasive action. there has been increasing number of close calls involving drones at major airports over the last 10 days. drones also interfered by the way with firefighting efforts in northern california. but in the nation's heartland drones are being put to work for more honorable causes, ones which help farmers see green. drones are helping farmers manage their crops more efficiently, by gathering data and real-time information from up in the sky. jeff flock joins us live from one such farm in cambridge, illinois. jeff? >> reporter: ashley, normally you have to get out in the field like this and hike the field. tell you, look at this field, there are a lot of problems out here. look at that.
that is mold on the ground. there is so much moisture. i dig down and there is print of moisture. thus far the crops are stunted. farmers see the damage out hiking into the field. this through the use of drones now. you have no problems with approval because the drones are flying over your land, you don't need to approve that. >> no, that is great. we see the good, the bad and the ugly out here. >> reporter: speaking of ugly, coming down here to the ground you can see a lot of your corn, look at that, that is pretty nasty looking piece of corn? >> that one will not amount to awful lot. there is lot more than we realized. >> reporter: clayton, take me back in there with better stuff. prices of corn at cme, almost over $4 for the december contract. that is because in addition to too much moisture, we're now getting drying in a lot of places and not enough moisture in place. >> it is. it has been quite a year. we did have all the rain in the springtime. and it affected the crop.
>> reporter: that is good-looking ear. >> that is awesome ear. i will take a field of those. there are a lot of places they are looking good. >> reporter: because of moisture, some done remarkably well and others not so much. we're seeing major movement in prices and soybeans too. keep an eye on that. ashley: jeff, what kind of difference has the drone information they father from drones -- gather from drones, does it save them money, does it save them time, how important are the drones. >> reporter: tell me, again, clayton, how the drones save you money because what does it do? >> it gives us marketing options. whether we have a good crop to sell or average crop to sell. >> reporter: if they see they have a good field they can forward contract that, to make money on it. if they see it is bad he have this to hold back, wait a minute i don't have enough crop to sell. big marketing tool. ashley: very cool indeed.
jeff flock among the mold after cornfield in cambridge, illinois. jeff, as always, great stuff. thank you very much. after the break, china's slowing economy has u.s. investors on edge here of course. why was wall street predicting a red storm rising in the east? hmmm, that is next. back in this country on the west coast a new fire certainly erupts up in northern california and quickly doubles in size. we'll have the very latest on efforts to contain it. at ally bank no branches equals great rates. it's a fact. kind of like shopping hungry equals overshopping.
at ally bank no branches equalsit's a fact.. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda. ashley: new wild fire broke out south of the massive blaze in the northern california. that fire doubled in size overnight, burning nearly eight square miles. as of this morning no containment is in sight. this is near the other major wildfire so far destroyed 43 homes. 53 outbuildings and nearly 109 square miles. all of this since july 129th.
that fire -- 29th. that fire is 89% contained. that is good news. fire officials investigating causes of both of those fires. stocks having a really big rally today. the dow up more than 200 points. up more than 250 points now, breaking longest losing streak in four years and doing it in style it apfires. adam shapiro on the floor of nyse for us following all of this morning, adam. >> not showing signs of slowing down. we're heading towards 4:00. look at some in correction territory may reverse that. apple leading the dow. it is up tremendously. caterpillar is up today. part of that has to do with expected stimulus coming out of china, ashley. because their economy seems to be in some problems over there. boeing up today. intel up today. even exxonmobil is up today. part of that is rebound in oil prices. want to point out real quick, alcoa is not dow component. they're up 6%. part of that has to do with
buffett and berkshire hathaway is buying. need aluminum to make metal parts that go into all the things they are making. one stock to watch. equinox, pharmaceuticals. you hear about them? they announced friday they had a bladder drug that they're developing decreasing pain in patients with problems. that stock is up tremendously. explain this one to me, lucy. up 132% today. $55 and change and do you smell a takeover. it is up almost 1500%. ashley: trying to get lucy on the phone trying to see if she can explain it. adam shapiro thank you very much. china enjoying its own rally. biggest intraday gain in almost a month this after another dispointing round of economic
data out of china, has investors hoping more stimulus is around the corner from the chinese government. what does it mean for u.s. markets and investors here? economist austan goolsbee back with us along with elizabeth macdonald. >> schur sure. ashley: is shanghai up 5% s that artificial bounce based on what the chinese are doing? >> acting like the elevator operator, can't find the floor. goldman sachs, ashley put out a report of 20 top s&p 500 stocks with the highest exposure -- ashley: to china. >> to china. number among them, wynn resorts, qualcomm, broadcom, intel. ashley: yeah. >> so some big names. word on wall street china is following it, worried about the typical boom bust pattern of emerging economy. the worry is this structural problem, not a cyclical issue, that there may prolonged slump
in china. ashley: very good point. austan, to pick up what liz is saying is it almost like a house of cards in china? you're never quite sure information you're getting or how accurate it is. there are concerns that perhaps weakness is a lot greater than we think. >> look, i think market has told you that. it has been i will iting you that for some time. you saw big drops in the price of oil and big industrial commodities at a time, yes, there was some excess supply but basically the only thing that could explain it is that the world thought things were slowing down in chinaster than what the government was telling you in china. and, now, it helps if you have got trillions of dollars of reserves. they learned from the financial crisis in asia in the late '90s you don't want to be without reserves if you're going to get into trouble. they will be able to navigate it. but i think we ought to keep eye on this, any stocks that have a lot of exposure to china, look for them to have a bumpy ride.
>> austan make as good point. china's problems were likely red flagged in the commodity super cycle bust. ashley: right. >> super cycle boom going on, whoa, commodities are in a pretty severe downturn. factory prices in china three-year downward trend. gdp growth in china is probably the worst performance in, what street is telling us in two decades. the fear, china could bust below 7% annual growth. i agree with what austan is saying there. ashley: austan, to pick up on that, what does that mean for us here in the markets? china is such a big, engine in the global economy. will we pick up some of the weakness here? >> i think we will. though, it is interesting, if you just kind of sit down and crank through the numbers, china isn't near as important to the u.s. economy as you might think it is. exports are not that big of a share of the u.s. economy. china isn't that big after share of our exports. that said, we have a lot of big
multinationals, a lot of headline stocks get earnings from china. they have a lot of operations there. they will be hit. anybody who is reliant on mining, commodities, oil, those sorts of things -- ashley: australia. >> because china is such a big share of the world they will be hit. on the flip side if you're just driving to work each day, it will probably mean, slowdown in china will mean lower gas prices than they otherwise would be. we probably get some kick back upwards of that. ashley: would you agree with that, liz? >> i think austan is right. whole opinion on wall street, there is paranoid fear, oh, china will dump some reserves and sell off some of it is treasurys. that would hurt its holdings. i don't think there is political maneuvering around reserves chinas. they have pretty decent size of foreign reserves. ashley: sure. scales of economist. not a greece. listen to this we have to bring up donald trump. it is interesting. he recently highlighted risk that lies in china.
take a listen. >> our country is in serious trouble. we don't win anymore. we don't beat china trade. they kill us. i beat china all the time. we don't have jobs because our jobs are going to china and so much other countries. ashley: austan, are we always getting beaten up by china? >> look, when we're turning to donald trump to be our expert on chinese affairs we are in a sad state of the world. i think, as happened with japan, you know, remember there was a moment in the 80s for sure where people were super paranoid about japan and anything japan did, they viewed japan winners and we're losers. japan had a lost decade because they ran into structural problems. ashley: that's true. >> if china starts to have serious economic challenges and problems, people like donald trump, who are out saying china is better than us in every dimension they will look a little dumb.
ashley: that is political rhetoric. there is perception we get short indof the stick. >> this was fueled by the fact that china would overtake the u.s. economy to many about the world's number one economy. ashley: that's exactly right, not so long ago. >> i was talking to wall street guys, that was based on purchasing power parity. the sheer number of china's consumer population was so gigantic would propel it. they make, what $25 a month or a day? ashley: tops. >> chinas no soft economic power. what i mean by that, it doesn't have worldwide, world-renown brands that we have. that is soft economic power that a lot of governments would love to have. china doesn't have big names, the number of big names that we have trading in our markets day, very good point. liz, thank you so. austan, thank you so much for joining you, appreciate it. coming up next, verizon just made getting an iphone a whole lot more expensive. we'll have details on wireless providers new plans and how it could affect you and your
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a new revamped diet pepsi will be hitting store shelves across the country this week without aspartame in response to customer feedback, the soda company says it is replacing aspartame with another well less controversial artificial sweetener if you like. pepsi is hoping this move will have people flocking back to the once popular drink and diet coke and dr. pepper use aspartame. >> offer of phones at a discounted price in exchange for customers finding two-year contract. customers have to pay the full price for new iphones and old phones period that once or you can put it in installments. price of the monthly plans will be tied to the amount of data they use. the nation largest wireless producer says they are to simplify process but could preserve in some paying more. verizon following t-mobile that ended contracts two year ago now and at&t that recently announced plans to phase them out as well.
all right, so verizon ending phone subsidies. could see a boom in iphone sales. apple scheduled to hold an event the week of september 7th introduced yet another new iphone model. joining us no christina, matchable senior tech correspondent thank you so far for being here to make sense of all of this. christina. let's very quickly on the verizon deal. will, in fact, consumers end up paying more? >> i think that most probably will. because how it works right now you gets, you know, maybe 400 off the phone you pay $200 and then pay the same monthly am you're not getting the discounting on your phone bill if you pay all of it upfront instead you're just putting off cost of the $600 over the next period of time. >> but not locked into the two-year deal the best part. >> the best part but i think most over time will probably find they're paying a little bit more money. >> let's get to apple big event. next month so we're going to get
what the iphone -- 6s not the iphone 7. >> what they tend to do is go the four, 5, 5s is 6, and 6s now. >> so i think it works for them to have the same sized phone same specks every two years. so you don't have to buy new cases accessories. >> what can the heck of this latest version do that it doesn't already do. resolution is amazing. camera is incredible. what do they add to it now? >> everyone better. >> i don't know. >> i have no idea. >> okay what's the word on the street leak more mega pixels. >> better camera u you know they do great things with the photography. probably more built-in storage. >> battery life? >> something they're working on definitely, and that is something they can definitely improve ios is doing a lot to improve battery life something
they're doing. >> apple and latest version -- >> i'm getting one. >> of course you are. >> you're in this, you love it. >> what about apple tv? >> hearing rumors we're going to get a brand new apple l tv. not a television set. but this is something that they haven't updated that in three and a half years. >> i thought it was long before now. now what was it shelved or canned but now they've brought it back again? >> hearing in sources i've talked to is apple is trying to roll out a broadcast service sort of thing that subscription streaming service where you can get a bunch of different channel and shows running into problems getting that worked out. not even sure at that launch but they need to get the box out and closer to the december period they can roll out the service. >> does apple need -- okay it is great but something is like it is boring. how can you say that of apple but do they need some amazing fresh product to get people reenergized or being stupid?
>> watch doesn't come out until april so no new watch but introducing watch 2. >> now? >> because there haven't been a lot of killer apps so one thing is they're making software better on the watch so might be more of a reason to buy watches especially as holiday season. >> second version of everything so get the bugs out of the first one. >> one with of the things people say to do. i buy everything. by everyone -- but that's just me. i can't help myself i'm a shopaholic but not a bad idea to wait. >> all right. very good christina good as always. warren buffett announcing one of the biggest ac by with decision ever. scooping up maker of components and 37 billion in cash and hoping to give wall street a boost. the dow is up 223 points. we'll be back. 80% of the poor in africa are rural farmers. 96% of them are doing rain-fed agriculture.
they're all competing with each other; they're all making very low margins, making enough to survive, but not enough to get out of poverty. so kickstart designs low cost irrigation pumps enabling them to grow high value crops throughout the year so you can make a lot of money. it's all very well to have a whole lot of small innovations, but unless we can scale it up enough to where we are talking about millions of farmers, we're not going to solve their biggest challenge. this is precisely where the kind of finance that citi is giving us, is enabling us to scale up on a much more rapid pace. when we talk to the farmers and ask them what's the most important thing. first of all they say we can feed our families. secondly, we can send our children to school. it's really that first step that allows them to get out of poverty and most importantly have money left over to plan for the future they want.
>> i'm adam shapiro enjoying a rally breaking a 7-session losing streak. s&p up 25 points and nasdaq un60 on the s&p and concerned 7ut of the ten in the green led by energy. take a look at the energy stocks exxonmobil up 2. halliburton up 3.7%. and chronicle 1 and a half percent. some of the dow losers today include coca-cola and visa
although going back and forth between positive and negative territory. one last thing to take a look at verizon, you heard ashley webster talking about simplifying payment structure, and pricing structure. saying they'll make the post test more simple. well, we'll be become on schedule with that later this week. more risk and reward coming up after this. can a business have a mind?
>> we wanted to bring you this video here with we are on the golf course on a monday president of the united states playing at vineyard golf club in martha's vineyard exclusive playing with glenn hutchens cofounder of silver lake partners private equity firm also playing with world bank investment kim and cyrus walker another businessman, jarrett's cousin so high stakes you could say an wondering if you make this putt will you donate $100,000 to hillary's campaign maybe joe but playing golf, and playing a lot of money you could see of the united states. not all stocks are feeling the love by the way in today's rally. shake shack is tumbling shares down more than 3% just ahead of the second quarter earnings reports this afternoon. make sure by the way, to watch after the bell today for your
earnings needs. we'll be all over 4%. welg it is warren buffett's biggest deal ever and that is saying something. preparts a maker of airkts components for $235 per share. that will vary the deal over 37 billion dollars. joining us now liz clay monowho will be speaking to the article of omaha himself on count down to the closing bell in 12 minutes from now. liz a great get as always. you want to go way back but this deal is giving a nice boost to the market as well. maybe not the sexiest of deals bus mr. buffett like this is company. [laughter] >> he doesn't do very sexy did you see his hand in that picture. doing imitation of an airplane. and, of course, precision cast parts a like a -- because he only had one bad experience with an airline. but he's never had a bad experience with an airline part maker. because he has owned precision
for three years. he absolutely loved this company. one of the things iemg dying to ask him ashley is have you been waiting for the fly, waiting to buy it or a lightning bolt moment recently, and i would imagine that it was a price fall. because the stock is down nearly 20% since the years beginning here. so ting that he looked at precision cast parts and said nobody really beats them at what they do. so there's that competitiveness and hey, why not. but you see it is $231. he's paying $235. >> yeah. >> overpay i don't know? >> he, obviously, believes as you said he's been much in this stock for a long time. it's the supplier of choice for the aerospace industry so who are we to doubt him? >> exactly and he makes merger monday alive again. [laughter] exactly. 32 billion it is ashley, the biggest company price he's ever paid.
earlier before couple of years ago he bought burlington a whole railroad in the 20 billion -- 27 billion neighborhood and here's 32 billion. now, he's borrowing 10 billion and using 20 plus billion of his own money. to have 20 of my own. money is so cheap. >> you're exactly right i can't wait for the interview coming up in just a few minutes. liz thank you so much. seeing you at the top of the hour and, of course -- erchg ten minutes. >> great stuff. >> okay, 3 million gallons of contaminated water released from a mine into a colorado river. turning it orange -- a state of emergency is now being declared in several counties. details on the epa's catastrophic blunder and the health risks it could pose. that's coming up after the break.
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>> legionnaires' outbreak in new york city has been contained. that is according to mayor bill de blasio, the disease which originated in the south bronx so far claimed lifers of 10 people and sent more than 100 to the hospital. bacteria was discovered in the cooling towers of five buildings concentrated within just a few blocks of each other. the epa says it is worst than we thought. a three million gallons of contaminated water has flowed from band of mine into a colorado river that is three times more than previously announced two nearby counties declared a state of emergency as authorities try to figure out the health risk posed and how to clean up the mess joining me now from denver is fox news reporter alicia, thanks so much for joining us this is an environmental disaster caused by epa what do they do about it right now and how bad is the
damage? do we know? >> we still don't know the extent of the damage yet ashley, and the epa is being criticized for note testing the water quickly enough. and it was the environmental agencies own workers that caused this spill as you mentioned they were investigating contaminate at the gold king mine in silverton and caused a debris dam that sent this toxic sludge into the river and southern part of the state. this previously press preseen river flows into new mexico and ends up in the colorado river which is many no surprise millions. residents there are devastated. >> i loved my piece of heaven. this is my sanctuary. this is -- my place of peace. >> nem governor flew over the area and promised her state would do everything it could to hold the federal government to f
account only for the cleanup. gold king mine has released an estimatessed 3 million gallons of contaminated quart so far, and according to the epa continues to do so at a rate of 500 gallons per minute. water from these states was down stream and millions of people depend on it. to grow, phoenix, los angeles, san diego, they're relying on a large part upon water that originatings in our state. so the interconnectedness is highlighted in a tragedy like this. >> the epa says the high level of metal contaminates that make up that color are copper, manganese and zinc and high level of arsenic and led as well and ashley as it moves epa says that it is being diluted, however, resident in that area do not feel confident in what the epa has to say at this time. ashley. >> no surprise there.