85 billion a month Bond Buying Program in place hinting no qe timeline. Hinting higher Mortgage Rates is key factors theyre watching closely. They also said they were worried about does inflation. According to adp private sector jobs increased by 200,000 in july. Higher than most economic estimates indicated. Junes number was revised higher by 10,000. Gross domestic product expanded at a pace of 1. 7 from april to june. This beat expectations. Second quarter reading followed a downwardly revised 1. 1 for the First Quarter of 2013. So good for the moment but revised downward for the past. The president is going to nominate Federal Reserve sarah bloom rskin as the Treasury Department secretary. If confirmed she would be highest ranking woman in Treasury Department history. She would replace kneel wolin. Shares of air products and chemicals moving to the upside after activist investor bill ackman announced his firm had taken a 9. 8 stake in the company for over 2 billion. This is the firms largest investment ever. A big day on this fed day. After the bell starts right now. David before we get back to todays action leds head to liz claman in dow chemicals new Research Facility in collegeville, pennsylvania. All right. She will join us in a few minutes. Lets go to the cme where we have Mark Sebastion waiting for us and Todd Horowitz in studio to talk about todays action. Let us go first to mark. Mark, talk about what happened with the fed and i want to put the 10year treasury rates together what happened in the dow today because they are operating in opposite directions. The, the Interest Rate was going up, ticking up to about eight basis points. That is about a 3 jump in Interest Rates before it came back down again right of at fed announcement. Of course the market went in opposite directions. Coincidence . I dont think so. No, not at all. It was a little strange today. You know at first glimpse the fed statement looked really good. You saw lots of buying on it. Selling into it and buying on the back end. Then as traders sat there and said wait a minute, deflation is kind of being brought into the equation there. The fed is out there admitting hey, there are factors maybe we cant control or maybe we dont have a handle on. That is what bullard got them to say. David right. I think that looked like a real problem. David hold on a second, mark. Put that back up on the screen if you can. Put that graph back up on the screen. What we see is Interest Rates, this is no big surprise. We know when Interest Rates go down, markets go up. That is exactly what happened today but why was that not sustained, mark . What was it that spooked the market at the end of the day . I think as people sat there and thought about deflation i think that is kind of what got into it. People said, wait a minute. The fed doesnt have control of, maybe they dont have as much control they think they do or coming to realization they dont have as much control as they think they do which again starts to bring in some uncertainty. That is where you see equities weak. That is really what drove kind of the back half of the day. David we have some Earnings Reports coming in today. Well have whole foods and cvs numbers right now. Dennis kneale, what are the numbers . Cbs in a major beat despite the big fight with Time Warner Cable right now. Earnings per share coming in at 76 cents a share better than the 72 cents wall street had expected. Beating revenue by almost 200 million. Revenue coming in for the quarter at 3. 7 billion compared with 3. 51 billion wall street was looking for. Revenue growth at old line broadcast company is not supposed to grow double digits on a multibilliondollar base. Operating earnings up 5 . Operating earning up 6 and diluted earnings per share up actually . This is good numbers. Makes you wonder whether Time Warner Cable would demand a huge increase from when youre doing fine . David thats a great point. Weakens bargaining position with time warner. Use cbs as an example what is happening with the market here. We have a situation despite all the negative news coming out from the feds, actually the suggestions of deinflation heard in the economy we still have good numbers from companies coming in this earnings season. We have some good earnings and weve lad a lot of misses. This happens to be a good numbers. Big companies see more because they benefit more from the fed package and the cheap money but accountability here, we already rallied into this number. So i think were trading looks like 53. 1 here after the close. This is probably pretty close to upward level although the stock looks really good on a chart and making alltime highs again. It looks good. Theyre benefit of cheap money. That is part of the problem what is going on in the whole system right now where the fed really backed themselves into a corner i think. David official announcement, this is Todd Horowitz, Trading Group chief strategist. I had to introduce you formally, todd. You said exactly what would happen, the fed would come out with announcement. It would boost the market. The then the market would come back to earth. That exactly seems to have happened. I wonder ifed fed backed itself into a corner . Other people talked about this as well. Whether the fed is allowing market or fear of Market Reaction to drive its decisions. Do you believe that is happening . I think the fed is almost day trading the market. Thats where i look at it. Theyre on every little move. Last couple weeks we had 6 drop and the fed is out to protect the market. Were up 130 since the bottom. Bonds are trading on their own. Interest rates are going higher no matter what the fed wants to do. Take the 10year from 1. 38 to 2. 08. Now back to 2. 58. The Interest Rate market is telling you that Interest Rates are going higher. I think the fed doesnt have an out. David well talk to a fed official coming up in just a moment. Were getting other earnings. Whole foods. Company just did a split. I may wonder why it traded at 50 level when it was 200. It did a two for one split. Numbers came out and market doesnt like it afterhours. Exactly. Whole foods, the stock is down almost 5 after hours even though quite impressive growth. Earnings come in at 38 cents. That is one penny beat. Revenue, missed by 30 million on a 3. 06 billion actual report. Missed by 30 million but that is still Revenue Growth up Something Like 14 . Wall street in a isnt over it and the stocks down. David Mark Sebastion, let me go back to the cme. Mark, we have a stock up 24 in the last three months. It is up well over 100 over the past couple years. Has the market finally decided to settle on this stock a little . Yeah, theyre going to have to at some point. They can only grow so much. They have the krogers of the world and supervalus of the world going after their market share. Theyre being undercut underneath by trader joes. You have to wonder, at what point are they the walmart of, you know, the organic food market . Thus really unable to grow a lot more. You know, right now, we may be kind of seeing that. That Revenue Growth flow, that earnings growth, is there but not that explosive earnings were looking for. Right. Taking it back to cbs, i think Something Interesting if we dig into the numbers you see a lot of that beat more on streaming content. Wait until you see how much money theyre making off of i love lucy, off of csi that has been canceled for a couple years. All these shows, that no longer on air, that is where cbs in such an amazing position because of their ginormous content library. That is where cbs is really in a great position. David they have been sharing some of that library with people like netflix who they may not be competing. I was watching Twilight Zone on netflix just the other night. You know, as long as netflix and cbs are working well together i think, you know, you hope they realize what is good for both of them is good for both of them and one side doesnt get too greedy. If that is the case they will be in good shape. If netflix starting getting greedy or cbs says, we can do this on our own you will see some of these bumps which would probably be bad for netflix. David todd and mark, hold on. One more Earnings Report were expecting. Dreamworks are way up after hours. What are the numbers, dennis . Dreamworks has a major beat. Earnings per share 26 cents a share instead of only 20 cents. Thats a huge difference when you talk about bottom line earnings but revenue also in a very nice beat. Wall street looking for 190 million. Revenue coming in at 213. 4 million. That is why dream works stock afterhours trading up almost 5 . Remember they signed that big deal with netflix in the quarter and they expect that deal to add 100 in new revenue just in 2013. David big, big jump on dreamworks. Let me go to todd on this the fact is for all the talk that bernanke has about does inflation, when you have does inflation he sis does inflation, that should be. We dont have real growth. We have funny money funneled into the system. David i agree with you about the funny money and distorting effect that has on markets wholesale i agree and get that the but fact that people are still reaching in into their pockets and buying stuff. Theyre buying products that make these Companies Grow in revenue . Thats true. They are growing in revenue but you have to look at overall big picture and the big picture is the average american, the average joe is struggling throughout the economy the way the situation is right now. Separation between wall street and main street is never bigger. Were having more problems. Were having earnings beats. A lot has to do ith cheaper money that allows them to go use this money where other people cant and allows a product a little bit cheaper prices. So allows their bottom line and top line to be better. David Todd Horowitz, adamesh Trading Group chief strategist. Got it exactly right with what happened in the market. Were pleased to have him on. Mash ses a bastion well have you on in a couple minutes when the s p futures close. The fed giving no clues on possible timing of tapering in its latest statement. It did however got a less bullish on the economy, changing description of growth to modest. That is a downgrade for them. We break down the fed speak with someone behind the scenes. If you have ever seen jerry odriscoll, you dont want to miss him. Former Federal Reserve governor, dallas Vice President. He knows all with regard to the fed. He will be here next. Plus as Facebook Stock climbs back to just about its ipo price reports say the company is planning a new salt on the advertising world and some say it could be a tv killer. That story is next. Also were heading back to our own liz claman for an exclusive American Icon series at dow chemicals newest facility. Whats happening, liz . David, look at the chemists and scientists behind us. Theyre coming up with Real Solutions globally. Water, there is not enough c water to drink for all of the people in the world. Coming up well go back in the lab. Ive got my lab glasses on. Well show you the way dow chemical, take dirty water, put their solution in it and i will drink the clean product. Stay tuned. Were going to junior science. [ indistinct shouting ] [ indistinct shouting ] [ male announcncer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its sclose to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All onhinkorswim from td ameritrade. [ male announc ] if you cant stand the heat, get off the test track. Get the mercedesbz youve been burning for at the summ event, going on now at your authorized mercedesbenz dealer. But hurry, offers end july 31st. David lot of Great Stories in the market. Well talk about jcpenney still down about 10 . Shares of dell hitting new lows as the board of directors push back on ceo michael dells offer to take the company private. Lets head back to nicole petallides. She is on the floor of the new york stock exchange. What is the latest on this, nicole . What is interesting about the story, shares have been to the downside, the lowest levels since january when a possible deal was announced. Michael dell and silver lake put over dell. They were beefing up that by 10 cents to 13. 75, in hopes the way voting would be done would be done in a more favorable way excluding, including michael dells shares. However carl icahn has been very vocal says you cant just change the rules much and so going foreward the special committee has decided that theyre not going to change those voting rules at all and the meeting will be held on friday. So this doesnt bode well for michael dell and his Takeover Team at all and, so weve seen the shares dropping today as i said, the lowest since january when this whole thing started. David very good. Nicole, thank you. Not very good for dell anyway. The fed releasing a statement saying it sees modest growth in the economy. This is a change from previous statements where the fed saw moderate growth. This is a downgrade, essentially of the economy. So does this or any other language in that statement give any clues about when the fed will begin tapering its bond buying . Joining me, gerry odriscoll, former Vice President of the dallas fed and were always pleased to see him here. Gerry, great to see you. Thanks for coming. Let me start with an overall question. I asked my market guest in the last segment, i dont know whether or not you could hear, whether or not the fred has become afraid of the stock market . I remember paul volcker, i remember greenspan, they did not live in fear how the stock market would react in their decisions. They were concerned about it but didnt react in fear of it. I get a sense ben bernanke and company are afraid how the stock market will react. And that affects their decisions. Am i right or wrong . It seems like theyre reacting to shortterm movements in the stock market. We saw him back away from the statements about maybe the tapering would occur earlier rather than later because the markets went down so i agree with you. David well, they had a fullpress p. R. Campaign to in order to try to convince the market they would not stop bond buying anytime soon. Tell us what the implications of this are, this is for the overall market when you have a fed that seems to be very concerned, perhaps even more concerned about the stock market than whats happening with the general economy . Well, i think youre right and, you know, the general economy is not that good, especially if you look at labor market statistics. We havent recovered total nonfarm employment. We have alltime record of number of discouraged workers, 6. 6 million. The Labor Force Participation rate has been dropping all during the expansion. So it is a very weak market. On the other hand, by obsessively looking at short term movements in the financial markets, the stock market, as you say, it means the fed is focused on the wrong thing. David what should the fed be focused on, gerri . It should be focused on loerm growth enhancing Monetary Policy and thats not what its doing. David how would its policies change i it did what you think it should do . Im sorry . David how would its policies change . That is, what would ben bernanke do differently if he had the same concerns you do . Well, for one thing this payment of interest on reserves is insane. Now we have 2 trillion of reserves in the banking system. Most of which are excess reserves. Theyre paying a quarter point, doesnt sound like much, but that is 5 billion that should be going to the u. S. Treasury and more importantly is descouraging lending by banks. David so essentially what theyre doing is rewarding people, rewarding banks for keeping more money on reserves but regulators say they have to do that. Otherwise were in danger of another 20082009 . I dont see it. I dont see it. I think this payment of interest on reserves was a big mistake. Whatever justification there was for it at some point has long since passed. David okay, one thing that moved the market based on what the fed say today was their statement on inflation. Originally we saw Interest Rates by the way spike today about 3 . Then they came down after the fed statement specifically because the fed said as follows, inflation persist earnedly below its 2 objective could pose risks to economic performance. In other words the fed is saying disinflation is now a bigger risk to the economy than inflation. Do you agree or disagree . I dont agree with that at all but it reflects a longterm sentiment of the chairman himself going back to his academic days. David so you dont, you think that inflation should be a bigger concern in the minds of the fed than disinflation right now . Yes. David well thats, not only is that a fundamental disagreement, but that denotes a total miscalculation by the fed in which they are printing up a lot more none any and that could have many more implications about our economy long term than anybody ever considered. Yes. And by the way, if they followed my advice and stopped paying interest on reserves then they would have to face up rather quickly the problem how they back off this tremendous monetary ease because once banks started lending and we started getting the normal relationship between creation of reserves and then eventually creation of money and then inflation, then they would face it. So its a peculiar situation. Theyre worried about disinflation but they have streeted a situation in which if they want to do something about disinflation, then they will have to start worrying about inflation. David i have to run but i have to ask are rates going to spike despite what the fed is trying to do . Well, as your previous guest said, longterm rates are going up. Shortterm rates are under control of the fed. David gerry driscoll, former Federal Reserve of dallas Vice President and economic advisor. Thanks, very much. Thank you, david. David were following jcpenneys sudden dive today after a story appeared in the New York Post. Well tell you what the story said. Well talk to an analyst about exactly what it means for jcpenney. Could it be the final nail in their coffin if. Were going back to liz at dow chemicals new Research Facility in pennsylvania. Lets go, liz. Lets go. Well become scientists here. Dow figured out a way to take water with impurities and all kinds of problems in it from that to this. Bottomsup. I will taste it. The process that is happening here in the United States in dows brand new facility. Were back in collegeville, pennsylvania. [ male announcer ] eligible for medicare . Thats a good thing, but it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement plans, they pick up some of what medicare doesnt pay. And save you up to thousands of dollars in outofpocket costs. Call today to request a free decision guide to help you better understand what medicare is allbout. And which aarp Medicare Supplement plan works best for you. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and youll never need a referral to see a specialist. Theres a range of plans to choose from, too. And they allravel with you. Anywhere in the country. Join the millions who have already enrolled endorsed by aarp, an Organization Serving the needs of people 50 and over for generations. And provided by unitedhealthcare insurance company, which has over 3years of experience behind it. Call today. Remember, Medicare Supplement insurance helps cover some of what medicare doesnt pay expenses at could really add up. These kinds of plans could save you up to thousands outofpocket costs. Youll be able choose any doctor who accepts medicare patients. And you never need referrals. Dont wait. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. This easytounderstand guide will answer some of your questions, and help you find the aarp Medicare Supplement plan thats right for you. Davidd well its a bad day for bill ackman, george soros and other people that invested in jcpenney. Jcpenney shares diving in last few minutes of trading following a New York Post report, that cit, the largest commercial lender in the apparel industry abruptly stopped supporting deliveries from smaller manufacturers that went to jcpenneys store. We have a bgit analyst. Bill, lets run through this as quickly as we can, cit, retailers need cit in order to pay the bills, right . Yeah. I mean the way it works with factoring that smaller manufacturers like to get cash up front for their shipments, finance it through a factor like cit, so if cit is not willing to pay the shortterm bills then the retailer is in trouble, they cant pay their suppliers . It doesnt mean that they cant pay the suppliers. It means cit is not willing to lend to suppliers up front which is concerning. We dont have confirmation yet from cit. David amazing so many rumors here. No confirmation on that but rumors are moving the market and or moving the stock 10 . Is that overreaction in your mind . I think it could be overreaction. When you have a lot of uncertainty people will react strongly. That makes sense. It is interesting this story came out of the last hour of the last trading day of the month. I thought that was all interesting aspects to the story but one of the things that should be remembered that j. C. Penny did a financing after of the end of the most recent quarter with Goldman Sachs and raised 2. 7 billion in liquidity for themselves. They have a ton of cash and we believe that cit probably represents something less than 15 of their total inventory. Which if you look at the way invennory shook out last quarter, this could be exposure of less than 350 million in inventory and actually because it is financing, factory, only a small percentage of that number. In terms of cash impact i dont see this as a Significant Impact for jcp just yet. We dont have all the details. Another factor one of the things we saw this morning that the journal came out this morning and pointed out jcpenney is number on online in back to school retailing. They werent even in the top 10 last year. So im not sure what numbers are being sent out there to support this level of concern. David lets follow this rumor a little more because according to the post what happened is cit, again we describe why it is so critical in jcpenneys operations, cit got a peek at their financials, at their last financials and it did not look good. Is that possible . Does cit have an sadness look at their financials that rest of us dont . As a factoring lender they would get insight into the numbers other people into the markets like yourself and myself are not going to see. At the same time their bank lenders at Goldman Sachs also did do full diligence and access to numbers we dont have either and they felt confident to lend them 2. 7 billion. A lot. David a lot of savvy investors went in. Bill ackman, his savviness has been hurt by other stocks. Sure. David george soros is in, Goldman Sachs. They have made bad bets before, if rumors are true, this has to be the last question. If rumors are true and cit has halted payments and credit to jcpenney, what will happen to the company . I think what is going to happen to the company their cost of capital is going to go up but i believe they have the liquidity to support the increase in cost of capital. David okay. What is really important what will the numbers look like in a week or so when they report . Well have much firmer view what is going on. David bill ackman im told has a 17 stake in the company. His fortunes really lie closely with jcpenneys. William, btig, thank you very much for coming in. Thank you. David fox businesss American Icon series continues. Coming up well get exclusive live dome mow of latest technologies developed as dow Chemicals Research center. Liz will drink some of the dirty water turned clean by the company. Michelin north america announcing plans to hire 1200 workers. The plant in north carolina, is American Manufacturing on the rebound . Michelin north american president will join us in a first on fox business interview. That is straight ahead. David dow chemical is a true American Icon. It has been in business since the 19th century. Last hour, liz spoke with the companys chairman and ceo. Got exclusive insight what he thinks about big name activist investors like bill ackman. He has been in the news today. She has another exclusive on dow chemicals groundbreaking research. And, liz, are you really going to drink dirty water . I will drink impure water in just a minute. Ive been talking to all chemists. This is dave. Analytical chemist, working for dow and rohm haas 25 years. He gets to move into the brand new facility in collegeville where fox business invited exclusively to do what we really should be doing as a business network. That is showing innovation and ingenuity here in the United States with real job creation and it is happening right here. I want to introduce to you milesh shaw. He is in charge of very important things in this lab. Particularly Global Research and development. Earlier we were showing things like caulking windows to keep massive amounts of freezing cold air out and save people money on for example, airconditioning and heating. But youre working on life or death innovations correct . Indeed. Correct. This is small exam he pell of that. This is soap bar very commonly used in india. This is unilever product. Unilever product, sells for 11 cents. The idea to make this as acceptable as possible to broad a range of people as possible. Liz what is special about the soap though . What is special about the soap, our technology, we won an Innovation Award for. Were enabling the soap bar to last longer and for unilever to make it more affordable. And it feels good when you wash your hands with it. You could wash your hands with it. The idea, they want more people to wash their hand to improve the hygiene. Liz talking third world nations. Exactly. Liz theres a program with a very interesting name to it. Right. Help a child reach five. Liz right. Idea is, reduce disease by just doing the simple job of washing your hands. Liz simply washing your hands. Right. Liz chemicals developed here make it last longer and make it less expensive and of course affordable for everybody in the world. Now here comes what david called the dirty water part. The Water Filtration process. There is nowhere near enough clean Drinking Water for the entire world. Lets talk about what is going on here. Yes, i will drink what was once impure water in a split second. What is going on . Right. We have a demo set up to show what happens when you have water with materials dissolved in it that you want to remove because you either want to remove use the water for some industrial purpose or drink it. In this caae were showing this water, colored water is coming up through this membrane module shown here for example. Liz this is what is made here at dow. Right. We invented this year. We make it here. Out through the membrane comes clean water. So this side is water from which all the dissolved materials have been removed. Liz lets pull apart what is really inside here so we can see the process. By the way, he will show, this is of course an opportunity where the liquid is pushed right through, correct. The dirty water goes to the center and the clean water comes out between all these layers in the membrane. Liz all the dirt and impurities go through these membranes. This feels like a solid piece of paper like nothing could go through. Right. All our science is in design of that as well as designing the module in a way to get the most efficient amount of water out at low energy. Thats what is unique about this particular membrane. It reduces Energy Required to pump the water through by 30 . Liz this creates clean water but who can have this . How much does this cost . Can it go into third world nations pretty easily . Yes. Actually it is used across a range of uses all the way from industrial use where you want to have boiler water. So people put in massive installations to clean up water for industrial use. All the way to a water device in your home. Liz is in here as far as impurities, dyes and dissolve solids. Liz dissolved solids. I cant wait for that. David, i hope youre watching here. We are getting some of this water. There you go. I should get some for pete too. Should make him drink this too. I will taste it and see if really tastes good. Tastes perfect. Tastes perfect. It is perfect. Liz real innovation here. Reverse osmosis process. Indeed. Liz thank you so much. Thank you. Liz you and your team have been wonderful here at dow. All of this is happening. There are a lot of water pureification companies out there. General electric is in the business. Dow chemical look at this brand new facility we can do it better and perhaps less expensive. That is what is being developed here in collegeville, pennsylvania. David im told effects of impurities take five minutes to set in, liz. Sit down for at least another five or 10 minutes, just in case. Just in case. Liz okay. David im sure youre fine but just in case. Thank you, liz. Michelin is one of the biggest tire makers in the world if not the biggest and its u. S. Operations are benefiting enormously from the boom in car sales. But is that enough to balance out the losses from europe . And how many more jobs will michelin be bringing to the United States . Michelin north americas chairman and president weighing in in a first on fox business interview. Also how about another tea party . Were not talking about the American Revolution but a potential trend that has attracted the attention of one of the worlds most prominent former ceos . Thats coming up in just a moment. Im Dennis Kneale with your fox business brief. A bullish fullyear forecast pushing yelps stock higher in afterhours trading. The company reporting a narrower than expected loss of a penny a share for the Second Quarter. Revenue also topping expectations at 55 million. Shutterfly also out with its Second Quarter results. The online photo sharing service posting a narrower than expected secondquarter loss of 31 cents a share. Revenue also beating forecasts at 113. 5 million. Shutterfly gets most of its revenue from professionally bound photo books and greeting cards and stationary. Softwaremaker intuit trying to boost the Marketing Power of one Small Business with a 30second tv spot in next years souper bowl. November 11th, the public will choose one. Final four small biz guys will get the big gameday ad. Thats latest from fox business, giving you the power to prosper. Theyre the days to take care of business. When possibilities become reality. With centurylink as your trusted partner, and Global Broadband network free you to focus on what matters. With Custom Communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. Every day of the week. Centurylink® your link to whats next. David michelin, one of the Worlds Largest Tire Companies must be pretty happy about a jump in u. S. Car sales but is that enough to balance out the slowdown in europe . Joining us first on fox business pete selleck, michelin north american chairman and president. Good to see you. Appreciate it. You must be tinkled pink at the success of u. S. Car sales. Before we go how it benefited your car company, why do you think car sales has taken off in the u. S. As they are . Clearly products produced in the United States and north america is much better than before and Consumer Confidence is much better than it was four years ago. David it is a boon for manufacturing in general in the u. S. Cars manufactured lear are spectacular. Theyre welldesigned and wellmanufactured. Really quite remarkable. Give you example, new corvette coming out, michelin tires. David okay. Some Car Companies actually say they specialize, not only specialize in michelin tires and advertise it as part of the sale. Were involved in the development of every new car that comes out one way or the other. The tire is conceptualized to help the car perform better. David 10 billion in u. S. Sales. That is enormous amount of tires. Does that balance out losses what happened in europe . Those must have hurt, right . Were a global company. The economy and market in europe has been down. That is balanced out by the improvement in the north american economy. Having a broad portfolio around the world. Not just europe and north america but emerging markets gives Michelin David we heard from the same thing from the chairman of dow saying that in fact the u. S. Could save the world right now. That sound kind of pretentious to say but its true, is it not . It is there and theres a real big threat facing us here in north america. As we look at michelin as we move forward, really our future depend on the growth. Economy there and the critical issue there is related we believe to the health, fiscal situation in washington. So were watching very, very carefully what is going on in washington. David you actually led me nicely to my next question. Corporate tax rates are a huge concern of corporations. We reported earlier in the week a number about companies merging with Foreign Companies and taking their operations abroad. Youre not doing that but the reason they do that is because the lower tax rates abroad. Ireland has a 12 1 2 Corporate Tax rate. Ours is close to 40 when you factor everything in. When will we lower our Corporate Tax rates . Youre exactly right the Corporate Tax rate by far is the highest in the developed world. Everybody knows that but clearly there needs to be approach to take it down of the president has been talking about but its a very complex problem and the entire budget problem is much more complex than that you look at entire issue of taxes not just for corporations but also most businesses are actually driven by entrepreneurs who are paying taxes at individual rates. Comprehensive tax reform is really needed. Comprehensive tax reform is really needed. David you guys have to plan for the future. Are you planning despite all the gridlock in washington, and all the december, the president said he was for lower corporate rates and added increase in spending are you factoring in some kind of Corporate Tax cut at the end of the day . Weve announced in the last two year over a billion dollars ever investments here in north america, most of them in the United States. David wow. That will create a thousand jobs, a thousand manufacturing jobs. That has effect in communities we go. David fulltime jobs. Manufacturing jobs of the we made that investment assuming obviously that we would be able to solve this problem. We really are coming into a very tight window because if the problem is not solved by the First Quarter of next year we get into a couple of election cycles. It will be really 2017 before we address this. It is really critical the next few months. David focusing back what you guys do specifically, most people dont realize you invented radial tire, not you personally but michelin invented radial tire. That saved since come out in the 60s billions probably gallons of gasoline because its a gas saver. Are you coming out with new products or is that pretty much it . Innovation is at the heart of our company. Radial tire we brought into all types of tires like aircraft tires, farm tires, earth mover tires. Weve been developing those over time. We have new technologies coming out. In passenger cars the exciting technologies relate to even further gains in fuel economy. David give as you little hint. What are some of the, are they totally punctureproof or not. Compounding make the tire more efficient. Most people dont understand the rolling resistance after tire as youre going down the highway consuming quarter of the fuel your vehicle is using. David wow. We can do things to improve how that happens and improve fuel economy. David the what . Fuel economy. David hystorsis. That is technical product, highly engineered product. David pete, it must be a lot of fun working for a company that is growing and improving and improving as much as michelin is. Thanks, david. David pete selleck, north american chairman and president of michelin north america. Good to he sue. Thank you. David americas love affair with coffee could be under threat from a beverage more popular with our cousins on the other side of the pond. It has investors scrambling to keep up with the latest tea trends. What is the hardest working city in america . The results of a new survey may be surprising. Could your neighborhood be one of them . Results in a moment. David move over a little coffee, tea, may become the big profit brewer. Starbucks posted betterthanexpected earnings this quarter after acquiring tea company, teavana. Others are taking notice. Former allscripts fund acquired argue go tea. Jeff flock talking with them about the new tea venture. Jeff . Its our latest opening for argue go. A arrgh go. Argo. He is on cuttingedge of a lot of trends. You think this is the new coffee . Tea is the new thing happening, Fastest Growing beverage in the United States today and across the world. Look at coffee stocks, they have done well. Starbucks blew it you out of the ballpark. Theyre heavily into teavana. Maybe theyre trying to beat you. We were here first. Were creating new kind of experience for consume heres want to look at tea. These are uniquely blended thats. Youre trying to do what starbucks did i did as coffee. To take it a full experience. These are unique blends. I cant just go anywhere to get these teas right . These are unique blends. Available at tea cafeses and teaosk. Walgreens, 7eleven and buy them for home. What is a guy in health care who introduced the electronic prescription doing in a teahouse . Well, thats a great question because tea is all about health. Coffee you drink in the important morning. It is not particularly healthy. Tea is about getting healthy. It is about a refreshing drink that can be a diet drink. It cane be a health drink. It can help with digestion as long as it is brewed properly. Thats what were talking about here. How to use the right thats and make them a new experience for drinkers. Teas. How big of a trouble are we in with obamacare right now . Were in great shape with obamacare. The reality weve never seen the amount of innovation that is gging on in the health care space. Well see a lot more of it. It will be become consumerrized. Well see a new breed of consumer called the intelligent, connected health consumer. I shouldnt be worried about the delay . You. Shouldnt worry about the delay. One part of the delay gives people more of a chance to prepare for whats coming. From the horses mouth. Glen tillman, who says be healthy, david. Drink tea. That is pomegranet. I like pomegranet. Bottomsup, jeff, thanks very much. Time to go off the desk. Movado release ad poll that shows americas hardest working cities. Guess what new york city, right here not even in the top three. The number one city, the highest average score of 7 criteria, coming in at number three, fort worth, texas. You dont mess with texas. Second spot goes to arlington, texas. And the top spot, very far away from texas, seattle, washington. The hardest working cities in america. Go figure. Number one thing to watch tomorrow will be the initial jobless claims. Economists are expecting claims to rise by 2000 to 345,000, ahead of fridays huge jobs report. Thats the big kahuna. Thats the one that could really move markets long term. By the way, last week claims climbed by 7,000. Thats it for us today. Liz will be back tomorrow. Meanwhile money with Melissa Francis is next. [ male announcer ] the meedesbenz summer event is here. Now get the unmistakable thrill. A the incredible rush. Of the mercedesbenz youve always wanted. But you better get here fast. [ girl ] yay, daddys here. Here you go, honey. Thank you. [ male aounc ] because a go thing like this. Phew wont last forever. Mmm. [ male announcer ] see your authorized dealer for an incredible offer on the exhilarating c250 sport sedan. But hurry, offers end july 31st. Thats a good thing, but it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement plans, they pick up some of what medicare doesnt pay. And save you up to thousands of dollars in outofpocket costs. Call today to request a free decision guide to help you better understand what medicare is all about. And which aarp Medicare Supplement plan works best for you. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and youll never need a referral to see a specialist. Theres a range of pns to choose from, too. And they all travel with you. Anywhere in the country. Join the millions who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp, an Organization Serving the needs of people 50 and over for generations. And provided by unitedhealthcare insurance company, ich has over 30 years of experience behind it. Call today. Remember, Medicare Supplement insurance helps cover some of what medicare doesn pay expenses that could really add up. These kinds of plans could save you up to thousands in outofpocket costs. Youll be able choose any doctor who accepts medicare patients. And you never need referrals. So dont wait. With all the good years ahead, look for the experience and commitment to gthe distance with you. Call now to request your free decision guide. This easytounderstand guide will answer some of your questions, and help you find the aarp medicare supplemt plan thats right for you. Melissa im Melissa Francis and heres whats money tonight. The wage gap between ceos and average workers is huge but should companies have to disclose just how wide it is . It is all about the power of money and steve forbes is here to weigh in. Plus san diegos mayor is sued by his own city. The sexual harrassment allegations are growing practically by the hour but can the city actually force him to pay his own legal bills . Wait until you hear this one. Who made money today . They just got one of the worlds most controversial billionaires in their corner. Stay with us and find out who it is. Even when they say its not it is always about money
comparemela.com © 2020. All Rights Reserved.