Transcripts For FBC Markets Now 20130924 : comparemela.com

Transcripts For FBC Markets Now 20130924



dagen: do with the american public rather seat eat french fries? [laughter] do not even make that hand gesture. nicole petallides is at the new york stock exchange. nicole: i am not having any french fries. the tech heavy nasdaq is up one third of 1%. three straight days of selling. commodities are pulling back. homebuilders, on the other hand, came out with some stellar profit. facebook at a new high. we continue to father whether or not twitter is really coming to that and why sp. dagen: thank you, nicole. connell: a bumpy road for president obama's health care law. dagen: at the exchanges go live. peter barnes is also live in washington. peter: reports of lots of problems and glitches in these exchanges. some lawmakers are questioning whether the federal database that will supply patient information to states will be vulnerable to hackers. the "new york times" reports that it will try to keep down costs by limiting patient access to doctors and hospitals. that is not all. >> we can expect a lot of pickups. a lot of problems. we already know that some states have said they will not have online capabilities available for weeks because it frankly will not work. the administration says it is working on the problems to make sure the launching goes off without any problems. supporters of obamacare say this is still worth the effort. they say it is already causing issues. >> that is what we have prior to the passage of obamacare. we are starting to see some trends. the rate of growth. that is good news. peter: now, in the building behind us, the battle on whether or not to defund obamacare continues. last week they passed a continuing resolution. from the senate now we will face a test vote. the republican of texas says he continues to fight for this provision. it looks like it will not make it. the republican leader in the senate says he will not support that because he fears the impact of a government shutdown. dagen: thank you so much, peter. the health care law going into place october 1. a record amount of americans are the believe that the government is too powerful. 60% of those surveyed say the federal government has too much power. to weigh in on that and what will change is a democratic strategist and fox news contributor. don't you think is good. even worse? >> well, i do. i also think this has a lot to do with nsa. you have had constant rhetoric. i am a democrat who supports this president who still thinks that this government has way too much power. i do not think it is just that nsa issue. you had the cbo who came outside in february who said, look, the soap quester is not $85 billion in cuts. it is $44 billion in cuts. those are going towards the military. people have to wonder. the reason why they are suffering is because barack obama wants to put up more regulations. we are seeing more people laid off because of the health care law. dagen: people will say they think that the government has too much health care. if it turns out they try to take away something that they like, you start talking about touching medicare, i do not care if somebody is on the right or left, they go bananas. >> people do not get -- people are incredibly frustrated with the role of government. >> if you look at the report that came out two years ago, the biggest waste is where? medicare. honestly, if they could consolidate where all the problems are-- >> it is a big proponent. you cannot have it both ways. >> again -- >> followed by another entitlement program. >> less than 1%. dagen: julie, if you look at the problems we are having, you do have waste and fraud in all of these health care programs. the issue people have with the government is they cannot run things effectively. >> can i answer the question? >> it does not matter if it is the democrats or the republicans. >> they should never have been eligible for medicare. we see that with unemployment. where do you think the ways and fraud actually come from? dagen: we have to go. we appreciate it. again, we will see. connell: taking on a different topic now. productions having a different impact on the markets. first of all, let's start with libya. production is coming back quicker than we expected in libya. >> libya was producing 11 and a half barrels a day. there has been a lot of strikes going on. on the margin, more and more oil coming out of libya. >> you have the resolution such as it is. we will see how that pans out. dagen: we will hear from iranian president later. at some point maybe the talks begin between the united states and iran. the impact of all of this, in your views, is what? >> this is something they were not anticipating. no one saw iran all of a sudden starting to negotiate over their nuclear treaties. iran was producing about 2.5 million barrels a day. this has been a major factor there. it is not only the production that is coming on. a lot of oil traders have been building in just in case we sat there and decided to attack their nuclear facilities. if you take these risks off the table, that is another five-$10 a barrel. >> give us a price outlook. >> i think there is a couple of things going on. it definitely will bring oil prices down. west texas needs to get to about $96 a barrel. you will feel a ripple affect all over the stock market. first and foremost, the refiners. they will not like brent all of a sudden having a less premium. second of all, it will be fantastic for the consumer. we are rolling into the holiday season right now. it looks like right now walmart said they will be hiring 50,000 workers towards the end of the year. it will be interesting to see what it does with jobs numbers. connell: there is a story represented today. thank you, sir. appreciate it. >> thank you for having me. dagen: there is an app for that, even. connell: we will talk a lot about housing. the latest from our friend of that yale. hoping that optimists keep their kids up. dagen: clear this up for me, i thought french fries were just potatoes cooked in oil. burger king's new french fries has a batter that pushes some of the fat away. ♪ nascar is about excitement. but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technologhelps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans. connell: we did not talk about walmart launching a reality show. let's get down to nicole petallides. nicole: i guess it could start any of us. it is basically inventors with new great gadgets and the like. they have judges who vote. they are putting these 20 finalists on the shelf. they are asking the public to decide whether or not you need this latest gadget. back to you. connell: interesting, i guess. dagen: thank you, nicole. boeing has launched a sweep of ipad apps to give mechanics the ability to perform maintenance and diagnostic aircraft issues faster and easier. boeing said it worked with several airlines for more than a year to develop the apps. there you go. connell: up a little bit. dagen: i love the little square payment system. connell: this is a lucky guy. the winner has come forward. the thing is we got the story behind it. it is kind of funny, i guess. the man's wife asked him to pick up some hotdog buns. he sees the jackpot and says, you know what, i have a $20 bill. it was only the second time he ever played the lottery in his life. we may never find out his name. he won $400 million. dagen: your greedy family members will find out you one the lottery one way or another. trust me. connell: bob shiller is coming up. he knows more about it than pretty much anyone. dagen: french fry consumption has been declining in recent years. connell will dig into that. take a look at world currencies and how they are doing against the dollar today. ♪ ♪ [ male announcer ] now, taking care of things at home is just a tap away. ♪ introducing at&t digital life... ♪ ...personalized home security and automation... [ lock clicks ] ...that lets you be cloto home. that's so cool. [ male announcer ] get $100 in instant savings when you order digital life smart security. limited availability in select markets. ♪ your financial advisor should focus on your long-term goals, not their short-term agenda. [ woman ] if you have the nerve to believe that cookie cutters should be for cookies, not your investment strategy. if you believe in the sheer brilliance of a simple explanation. [ male announcer ] join e nearly 7 million investors who think like you do: face time and think time make a difference. join us. [ male announcer ] at edward jones, it's how we make sense of investing. >> 24 minutes past the hour. president obama addressed the un general assembly this morning. he wants the u.s. to resolve the iran nuclear issue peacefully. later today, president will meet with former president bill clinton. there are indications that the shopping mall death toll in kenya could go higher. sixty-two deaths have been confirmed. it still is not known how many more people may be dead inside the building. a powerful earthquake has killed people in pakistan. a 7.8 magnitude. those are your news headlines on the fox business network. back to dig in and connell. dagen: thank you. it is time to make some money with charles payne. charles: we have had a huge run. some of them are at all-time highs. maybe they will pull back. i have to tell you, they had a string of earnings. they finally came in line and they were destroyed. this last earnings. revenues were up 49. year over year 14%. margins are expanding. they do firewall stuff. network security and all of that. i think it overreacted on this one. when a stock is down, you do have to proceed with a little bit of caution. hopefully, yours are hot. connell: anyway. [laughter] dagen: at the even more version. [laughter] dagen: at the latest number on home prices. we will see how bob shiller is. connell: then we will head out to michigan. they love apples. with that in mind, let's look at some markets on markets now. here are some of the winners on the s&p 500. ♪ with the spark miles card from capital one, bjorn earns unlimited rewas for his small business take theseags to room 12 please. [ garth ] bjors small busiss earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth why settle for less? ahh, oh! [ garth ] great businesses deserve limited reward here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ] now where's the snooze button? dagen: bob shiller on today's home price news. is he more optimistic about the market right now? betting on the potato. burger king heading on a lower fat, lower calorie french fry. connell: facebook shares. go to that. nicole petallides joins us from the new york stock exchange. nicole: this is a $38 ipo. everybody really thought they were left for dead. they were so upset. it is continuing to surpass the ipo price. approaching $50. 49.66. citigroup has had conversation with advertisers, with the agencies. what they found is sustainable and will continue. one catalyst, they think, is advertising the production of video. they like that as well. back to you. dagen: thank you. home prices jumping 12.4% last month compared to a year ago. marking the biggest gain in 7.5 years. is their weakness in those numbers? rob shiller is here right now. good to see you. if you dig into the numbers looking at the month over month changes, interest rates have started to go up. did you find any weakness? >> they are a little bit weaker. they are up only six times of papers that nationally. it was nine tenths last month. i would not put too much significance on that. dagen: what about the aggressive increases that you have seen in these home price numbers? i am looking in vegas. phoenix is on fire. how can it possibly last? you have talked about it before. do they have an endless supply of money? >> i think you have professional investors. they are likely to exit quickly when the conditions change. that means that the very strong momentum we used to see in home prices may not be as strong in the future. markets may turn more suddenly. if this were 1995, i would think this is, we are off to the races. i am not so sure now. dagen: do you think that longer term rates and mortgage rates will be contained for the foreseeable future? >> well, it is very hard. i do not think the public is aware of how hard it is to predict. they are the incorporated information about future fed action. it is only if they surprise us one way or another. maybe that is plausible. there is still some people buying. they think they do not want to miss out on still somewhat low interest rates. that is still driving things up. dagen: you saw people buying regardless of what interest rates were doing because they thought prices would keep going up. >> in the short run, yes. i do surveys of homebuyers. my latest survey had people expecting a 5.6% increase over the next 12 months. that is good. that is above the mortgage rate. it is not so good that you would want to try to flip a house based on that. it does give some emphasis to the market, for now. dagen: how easy is it to get credit right now? if you are the average homebuyer, it is still a pain in the neck. >> a lot of buyers now are professional investors. dagen: how much do you think that what the federal reserve has done has helped in this country? >> if you are talking long runs, back in 2008, we should thank bernanke and then said for having rescued us from a possibly great depression. they are aggressive. this is not a timid set. they are pushing the balance sheet up. they are taking some kind of risk to do this. so far it has worked out well. dagen: okay. thank you. come back soon. connell: we will talk about apple stock soaring. after worst harvests in seven years, farmers started picking what could end up being a record crop. dagen: what does it mean for the rest of the growing season? we go to jeff flock. jeff: how do you like these apples? take a look at these trees. laden with apples. unlike last year. >> we were froze up pretty much completely. speed 19 take a look at the pictures. what is he picking right there? >> these are three or four year old trees. it is about halfway through the harvest. jeff: these are actual eating apples. crisp. how common is it to get one year where you have 2 million bushels of apples? this year you will have 30 million. >> before my time. we have been around 25 million or better most years. this year we are anticipating about 27 million. jeff: how the apple orchards have changed. take a look at how close these trees are together. how small they are. this is the way the apple industry has changed. the technology has come along. the breeding of the plants. a lot more apples in the same amount of acreage. that is the latest. that was a good apple. dagen: it sounded hellacious, jeff. connell: that crunchy sounds. dagen: you can get some apple cider in connecticut right now. connell: that is a great transition for us. you are better off eating apples than french fries. burger king's less fat, less calorie french fries. dagen: a more personalized xbox experience. advertisers looking at a new way to get your attention. the disney ceo with dennis kneale. that is coming up at the top of the hour. first, treasury markets on markets now. ♪ ♪ >> i am lori rothman with your fox business brief. jpmorgan. prosecutors delaying a filing during the talks. tokyo electron is combining into a company. the merge will keep dual listings on the nasdaq and tokyo stock exchange. smithfield food shareholders voted to cell. the deal would be the largest takeover by a chinese firm. that is the latest from the fox business network. giving you the power to prosper. ♪ [ male announcer ] imagine this cute blob is metamucil. and this pk is the inside of your body. see, the special psyllium fiber in metamucil actually gels. and that gelling hes to lower some cholesterol. metacil. 3 amazing benefits in 1 super fiber. metacil. nascar is about excitement. but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans. connell: getting to the burger king story of the day. rolling out these lower calorie, lower fact satisfries. we are trying to find out if this is really a healthy alternative. there is some economics and both of this. there certainly is a health story or lack there of. first of all, let's talk about the lower calories. how much does that matter? what is being left out? >> it has lower calories. 270 calories versus 340 calories. it has about 30-40% less fat. the inflammatory fat is the root of so many diseases. that is what we try to get our patients to minimize. it is a step in the right direction. i am just wondering why now they are bringing back a fast food that americans are eating less of. connell: i have been cutting back on how many french fries i eat. they give you an option at a restaurant. people must be taking those options. obviously, from your point of view and what you are advocating for, that is a good thing. the reason of doing this is they want to make money. >> exactly. connell: is this more pr than anything else? >> if you are going to choose fries, it is better to choose them with less calories and less fat. the big thing that they are promoting is 30% less calories than mcdonald's small french fries. they are trying to compete. they are trying to get one up on mcdonald's by offering superior tasting fries with less fat. connell: i mentioned at the top, there is an economic story here in terms of obesity. 2007-2010, adults consumed on average 11% of their daily calories from fast food. that is big time. 12.5 and a -- are we making progress? it cost the country a lot of money. >> unfortunately, we are not. we are getting our kids hooked on these fast foods. kids do not just want to eat a small fry, they want a medium or large. again, the salt content, the fat content, the calories. you cannot just eat one. they taste so good. they are the crinkle fries. a lot of people preferred these over regular french fries. connell: doctor don colbert with us today. that is good perspective. thank you. we appreciate it. >> thank you. dagen: maybe it is a trick. they do not make them to delicious. connell: apparently, these fries taste the same. dagen: the ten month rally being tested less than a week. connell: this brings us to sandra smith. sandra: we were talking about the barracks and how it has been low, very complacent. sometimes that could mean we are due for a selloff. the debt ceiling talk is the next big scary thing for this market. yes, we are back a couple more points after president obama's speech. we are still hovering around on the s&p 500. not just significant from a round psychological point. bank of america analysts identified this as a key number to watch. this could be that key trigger for testing. bank of america analysts are saying if we do fall below 1700 maintain a level below there for a couple of sessions, we could see s&p fall another 5.5%. if we could trigger that, we would be off 10% from those all-time highs that we have hit in the past week. kind of a number to keep in mind if you are looking at the broader stock market. 1700. keep your eye on it. connell: thank you, sandra. dagen: a more personalized xbox is becoming a tool for advertisers. dagen: the ceo of disney is here with us in the building. he is said to talk one on one with dennis kneale. first, before we get to any of that, some of the winners that we are seeing today over on the nasdaq. we will be right back. ♪ ♪ [ cows moo ] [ sizzling ] more rain... 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[ male announcer ] get $100 in instant savings when you order digital life smart security. limited availability in select markets. ♪ dagen: microsoft new xbox gaming console looking to personalize your tv experience. it has a ability to determine viewers favorite content. connell: let's go to the newsroom. we bring in diane macedo. diane: good morning. it will completely customize your experience with your tv. the key here is the consoles connect feature. the new console is apparently taking it to a new level by a allowing users to control it by their voice. it differentiates between voices. if you were to ask you to pull up your shows, you are probably see a different list than f connell made the same request. that eliminates the need for remote controls and remembering channel numbers. while microsoft has been tightlipped so far and how exactly advertising will be folded into the mid-, it allows advertisers to provide viewers with incentives. sony also has a similar applicatio file. look out for this one as a new trend. back to you. dagen: thank you so much. connell: there is a special hour of markets now coming up. dennis and cheryl, of course, will have that for you. dennis has a one on one interview with the ceo of disney. stay tuned for that. dagen: maybe changing the disability policy at the theme park. british telecom president on plans to take on verizon and at&t. that is here on markets now. ♪ dennis: i am dennis kneale. cheryl: cheryl casone. on today's noon eastern time our we're doing things different. it is tuesday for the entire hour. dennis: i go one on one with disney's ceo on the media giant's plans for the new tv and movie season and more. cheryl: i talk with the ceo patty hart as the company launched a partnership with james cameron for games based on his avatar franchise. dennis: the british coming, the president of the u.s. and canada on plans to take on verizon and at&t right here in the usa. gerri: that and more at noon eastern, on markets now. you cannot afford to miss any of that. you want to keep it here but first the dollar up by 19 points and it is time for stocks every 15 minutes. nicole petallides 4 of the new york stock exchange. we needed a like today. nicole: quick check of market that the interviews. three days of selling, you do like they just like today with the arrows, dow jones industrials up 21-1/2 points, 0.1% at 15,423, the nasdaq the best of the bunch of the nearly 1/2%. u.s. dollar a little higher, commodities pulling back, home builders doing well on good numbers, facebook new hy, applied materials with a deal to name a few things we were watching closely. on the dow jones industrial some of the names that have been going on, merck, general electric and 90 to name a few. in addition we will watch whether we get any news on the twitter ipo, something we have been following very closely. the new high as the approach is the $50 mark. cheryl: about time. thank you. dennis: our special markets now tuesday begins with a man at the helm of disney, one of the world at large as media conglomerate and it continues to grow. joining us is disney's chairman and ceo. we appreciate it. you did a goldman sachs conference speech talking about some things. it is like you are the captain of a huge star ship relentlessly searching for growth, hard to keep such a giant like is growing, let's start with the original programming. disney big content creators, lot of mouths to feed, abc, what about new platforms like netflix and amazon and google which are expected, creating original content for these new platforms that when they seek to hit the very businesss you now feed? >> in asking the question you describe an interesting dynamic in the world, we are content creator. under espn, abc, picks are, marble, disney and lucas or star wars and the world where technology is creating or enabling new platforms and customers to reach or access this content in so many new ways there are all kinds of exciting new possibilities including creating programming directly to these new platforms selling wouldn't be surprised if in the near future you didn't hear about disney making content specifically for one of the platforms you cite and not necessarily making it for one of our channels. we will see these great channels. these new platforms are voracious in terms of their appetite for good content. dennis: q. would not be surprised if we didn't see an announcement soon that disney is making original content for one of these new platforms, will that the amazon or google first? >> i won't specified except to say if you are one of the platforms you want to reach customers you got to upgrade product selling a great product tenders interesting opportunities to monetize not just our brands ability to create high-quality brand and intellectual property. dennis: netflix, a tv sitcom, house of cards, won and emmy for best director, but original content for these platforms should look like regular television or should there be new content? >> you will see both, new platforms, new forms of content emerging, and not just created for one platform but with the storytelling actually crossing the platform so you might get many episodes on one platform and tweets on the story in another and so on and so on, you have a huge explosion of short form content that is designed for mobile and social distribution where you have people that served as distributor of that content. >> the good news, and men, pointed billion dollars, bad news, lone ranger, but for the first time in 2014 you delayed the film without a good dinosaur picks are has no release for the first time in eight nine years that is the difference of a couple hundred million dollars to disney's revenue was in. of the deal with that? >> think of it in terms of a bottom line, not just the revenue, deal with the situation in one simple way, it is all about quality, if you feel you have got some issues in terms of making the kind of film people expect when the picks are and she is on it than you would eat and make sure you get it right. it would be worse to force the film to the marketplace that was the bar from a creative standpoint and to delay it. when we delay it if we come out with a great film six months later in the one will remember it was delayed. come out with a bad film early everyone will remember that it was a bad film sell at picks are the brand is obviously synonymous with high-quality and it would be a tremendous mistake to force something into the marketplace before it was ready. dennis: this dinosaur's not ready, was it you saw in thank you but i think the dinosaurs not ready? >> not to get into details but john -- they rent a car, can to me and said the concerns about a movie being ready on time. they were concerned about half i might react to that because it is part of our plan and my immediate reaction was much more important to get the film right then get the film out early. dennis: you have some many others at disney, live-action film, the east on sleeping beauty or -- >> the villain in sleeping beauty and angelina jolie is perfect in that role. dennis: you move that up to dick this piece of the gap by the dinosaur. >> was going to be released on another date and move into the day. dennis: you have the separate house, disney animation, tables, frozen, why have two separate animation units? one not just out of one? >> we had talent in both places, picks are in northern california and emoryville and disney animation in burbank and those live in each locale. also these animation houses have a certain amount of capacity, people and infrastructure and it would have been difficult to force much more through the picks are pipeline and we felt when we bought picks are the time was right to take over disney animation and made great animated films under the disney as well so that is what they have done. worked great with tangled being a record and frozen coming up. dennis: it was as good as the 6 are film which has done pretty good. let's go live action, you have avengers, almost a sequel to iron man. tell us about star wars, the first new film of star wars since you bought lucas film comes out in 2015 but what about consumer-products sales as a way of soaking and keeping the franchise alive? >> the nice news about star wars is consumer-products, sales for basically star wars and all the merchandise comes with it have been fairly robust since the last film was released in 2005 but you can bet we will see the market place with more during the lead up to the film not just for marketing purposes but because we really believe they will be greater interest in consumer products for that film as people realize the film is coming. dennis: what lessons in retrospect do you learn about the lone ranger? when it comes to making a brand new thing that is not a sequel we are not going to spend $200 million on that anymore? is that over? what about creating a new blockbuster franchise? >> we learned lessons from the good and we learned lessons from the not so good or the things we make that are not as successful as we would like them to be. sharing those lessons in public is not necessarily something i would like to do. dennis: something we would like to do. >> it was a risky poppas proposition. the movie business can be risky business and sometimes we learn again and again the hard way, that is all i think. dennis: in the wake of that, letting the first book deal expire, the guy did 27 films for disney and its billion dollars. do you get butterflies deciding to let the dealer expire? >> i would not say i get butterflies. we have a relationship with jerry, great friend, made some great film for us, there were things he wanted to do that he couldn't do with us and we have shifted our strategy a bit because the acquisition of marble and star wars it was time for both of us. dennis: let's go to espn, huge growth engine for disney and we pointed out fox sports 1, brand new in the film, the entire audience is smaller than the increase in audience espn racked up in the past year. >> since they launched. dennis: what is the biggest threat? rising sports contracts or is it cable, start letting each channel charged individually for what it costs? >> espn is in a great position, market leader, great programming, they use technology extremely well to make the product better but also to make it more available. the mobile device, for instance is a big deal. people are connecting with espn in so many new ways. i'm not concerned about the bundle being broken up. for $75 a month consumers get great value in the hundred or so channels they get when they agreed to sign up for a multi channel, the quality of the programming and that bundle is substantially greater because the investments are being made in the product. there has been competition, there always will be competition. espn says bringing on, they are ready, have a great product and they are not going to rest on their laurels. dennis: a performance. we have been good for you. espn as good as disney is that making the synergy of various units work together there is not a lot of synergy between espn and the rest of disney, is there? >> if there is synergy it is a different kind of synergy. when we go to the marketplace with abc and disney and espn to our distributors there is value to what we have to offer. we offer great channels and great programming and things that can sell to consumers readily and espn fits in quite well. high-quality brand entertainment that people can access in many new ways. very much akin to the business we are in. dennis: abc network in some ways and also -- no where near the business espn is but you have modern family, its fourth and robust, the emmys, scandal everyone is talking about and this new marvel shield ceres which is another example of synergy from one part feeding another. >> on abc. you are helping me promote our new program. dennis: that is what i am for here. >> shields didn't happen because it is synergy but the marvel storyteller's had a good idea. when we saw we thought we could make a good tv series and abc put it into production working with a marble people. everyone thinks this was force fed by the corporation, we got marble and put marvel shows on abc. dennis: abc jeep would be free to turn that down. >> if they didn't think was good the would be free to turn it down. turns out it was my idea to do the series so it would have been harder. dennis: looking forward to turning that down. let's talk disney channel. in some ways it seems disney channel has become the trojan horse for disney into the rest of the world, that is the way lot of people get to know disney. >> there are 107 disney channels around world which is a staggering number and unbelievable growth globally in the last decade and in many respects you are right, it is the first way, sometimes the primary way people get to know and appreciate disney so it is a strong part of what we call our brand equations. fantastic viewership because of great programs and create value for the rest of the company not just be able effect from the brand but the product the disney channel was making his product we all basically self-rule our other divisions, consumer products is a good example, go out and buy digital books based on disney channel characters and stories for instance. that is one of the many examples. dennis: what kills me is all these newfangled businesses they la 200-year-old business model, advertising. talk to us about the new listing of local advertising, espn showing as in the green room is available on tablets, you are not quite able to get extra money for the ads that run on the tablet versus the at on a flat screen so what happens? >> we are making some money, digital advertising but it pales in comparison with more traditional platforms that we put espn on. that will change dramatically for a number of reasons. advertisers are more comfortable with new media. second lead eventually there will be a good measurement meaning a way to measure consumption on new platforms. exists today but only in experimental frameworks. the third area is customer data or usage information that will enable advertisers to not only by a much more efficiently but enable them -- the target basically of consumers that are relevant to them, contextual in nature and advertising another area -- dennis: what do you mean by native? we have 30 seconds until commercial break and will be back with more. >> gets complicated pretty quickly but able to create ads essentially specifically tailored for a platform and for consumers basically embedding advertising and much more organic wastes. dennis: the real -- a tv spot. >> content in a way. dennis: stay with us because we are going to take a quick break, bob will be sticking around and we will talk success in synergy. how disney manages successful acquisitions where so many in the business of failed. cheryl: we are going to continue our sit down with two executives on the forefront of technology and communication. international and technology ceo patty hart signed a major deal with since camera and the avatar move the franchise and why the company is ready to take on verizon and at&t in the united states. stay with markets now. right back with more. you really love, what would you do?" ♪ [ woman ] i'd be a writer. 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[ wan ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love? ♪ dennis: disney acquired marvel and its characters in 2009. you have darth vader and yoda from the star wars coo, is making successful acquisitions and others in the business that failed, and that chairman and ceo of disney. other mergers failed and picksar and star wars have succeeded very well. are there are couple overarching sequence that make the merger work? >> it is common sense. when companies are bought or company that buys another company they immediately try to get synergies. the leverage of 1 plus 1 = usually 3 and concocts or removing redundancies and that could be done to a fault. when that occurs you are ignoring the essence of what you thought, and -- for the people. picks are and marvel and lucas we didn't only by a great assets meaning intellectual property or the ability to create a great people land we have to recognize that when you are integrating, word that is commonly used, in to the mother ship. one thing we talked about earlier, animation is a great example, one thing that is great about picksar, they had the opportunity to run other parts of disney. and the marvel executives and given them more responsibility in disney. that goes a long way. recognize the talents that came with the acquisition. a loud signal to the company, the new company could offer more opportunities and you haven't just been bought, you have been given a greater opportunity to show what talents -- dennis: instead of buying get that business. are you finished with big acquisitions? is there nothing left to buy? >> when you say you disney has going to far outlive me and will have opportunities for acquisitions in the years ahead. in the near term we are not looking at something the size of marble, pixar or lucas, we don't discuss such things anyway. dennis: what about buying a video gamemaker like electronic arts or netflix? >> i don't think you heard the answer to the last question. dennis: instead of putting money into another multibillion-dollar acquisition you put it in your own stock price or buy back $4 million of stock now and increase the dividend 50% in 2011, 25% in 2012 and now you're going to buy its billion dollars in stock in the next year. some people say when a company does that they are buying their own self instead of investing that in new business. what do you say to that? >> look back at eight years i have been in this job and 60% of the capital has been invested in our business and growth for those businesses. 20% acquisitions, 20% buybacks and dividends. we are going to moderate our capital spending on some of the businesses in the years ahead because of cycling through the big investments in parks and resorts that will result in a little more free cash flow plus we will continue to grow the company and give us ample opportunity to invest aggressively in growing our businesses while at the same time buying back our stock and potentially increasing dividend so what we are saying is in 2014 we are going to generate more free cash flows and we did in 2013 more than we will have to use to invest in our business to a strait stock back. good value, to our -- dennis: you are buying it back. dennis: is expensive. >> we don't think so. based on what we know. dennis: we have a hard break and see if we can keep it up for one more thing. don't want to go too long. thank you very much, we will return in a minute. cheryl: a great sit down interview with dennis kneale, a lot more coming up on markets now. our special tuesday week continues. up next international game technology ceo plans to team up with james cameron in the gambling sector. dennis: exclusive interview with bass burger on why the telecom takes on at&t and verizon right here on their home turf. is this guy crazy? nascar is about excitement. but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans. 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[ male announcer ] get $100 in instant savings when you order digital life smart security. limited availability in select markets. ♪ dennis: every good interview ought to end with a glimpse of the future. back with one last leg with the ceo of disney and let's talk we to the growth opportunities, shanghai, disney world will open in 2016. >> 2015. dennis: and mobile, first of disney shanghaied. >> one of the most important things we're doing is a company, disneyland in the most populous city, the most populous country in the world that will be authentically disney, distinctly chinese, the first park that will be built in mainland china and i think it is really exciting having grown up in the united states and the 50s streaming about going to disneyland one day, my wish came true, thinking about china and all those kids, all those people dreaming of going to disneyland one day in their country, that is something to be excited about. dennis: it could further the appetite for other disney content by doing business there. >> it could but the goal is to create a very unique, very high-quality experience that does not exist today in china because disneyland isn't there. dennis: walt disney world orlando is the most attended theme park in the world under any brand, won't shanghai disney ultimately have tripled disney world? >> you're dealing with a country of three hundred million people more than that, there are great opportunities but we want to open it and not make any predictions long-term. dennis: we are ready to wrap so let's skip the mobile thing and go to your future, you're going to be retiring from the company in mid 2016. two strong candidates inside, tom staggs who run steam starks and the ceo, swapped jobs, does the next e. e o of disney should be an insider versus an outsider? >> there is huge value to stay inside because people who work for the company particularly in senior most levels understand the essence of the company better than anybody else and the board will have the luxury to choose somebody from the inside and not only knows the company well but who the board knows well but this is a board decision, not a ceo decision. just one vote, one member of the board. dennis: in the old days, no one else could run the company, split into 3, do you ever worry no one else can run this company as well? >> absolutely not. dennis: appreciate you being here, thanks a lot for your time. cheryl: our markets, special tuesday continues after a quick break coming up next, international game technology ceo patty hart on ways to team up with james cameron in the gambling sector. a sportsnet interview with bad burger on why the euro telecom is taking on at&t and verizon right here in the united states. we will be right back. so i can reach ally bank 24/7, but there are no branches? 24/7. i'm sorry, i'm just really reluctant to try new things. really? what's wrong with trying new things? 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(cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally. and this park is the inside of your body. see, the special psyllium fir in metamucil actually gels to trap some carbs to help maintain healthy blood sugar levels. metamucil. 3 amazing benefits in 1 super fiber. cheryl: international gaming technology the company is named and yesterday's they announced multi-year deal with james cameron to produce and sell slot machines based on avatar, the top-selling movie of all time. we will talk about that with patty hart and asked about the company's efforts to reach brendan 2013. >> the brand positioning and our new logo that we launched the world today is really just one element of removing the company forward and we made a number of logo and brand changes over the year and this is the most recent one. it reflects the new more current, edgier demographic of the customers who consume our product. cheryl: our you finding the customers started to skew younger. one of the concerns in the overall sector of gambling was you were going to be losing those in house gamblers, slot machine in las vegas to the online gaming world whether it was ipads or iphones and we are seeing a relaxation of online gaming. ibm moving towards a position in that speech since everything is what based? >> definitely the demographics overtime will skew younger but surprisingly even our traditional demographic kind of 45 to 55-year-old females are huge consumers of technology in the way if they consume their entertainment content has changed dramatically over the last several years. at the scene time thinking about itt as a multi platform gaming company moving to mobility, desktop, that takes the brand to new places consumers want to see us. cheryl: you are confident as we are seeing restrictions left especially in nevada and states like new jersey, confident about the online gaming market, fair enough. let's talk about the brands themselves and we will get to the numbers of the company the first this deal with james cameron and avatar. highest grossing film ever in history of movies but you are making a big bet on slot machines. tell me about it. >> we are so excited about the launch of our avatar product. in a couple different formats for our customers to consume. avatar is very interesting because it knows no demographic. the avatar brand reaches broadly around the globe to a lot of different ethnic groups as well as to different age groups so this could not be more perfect for us today, we are very excited. cheryl: revenues and stock performance those strong and you are one of the company's analysts point to to say this is accompanied by that history is strong, the sector is growing, you have this economic recovery in las vegas but moving forward do you think that growth could continue? unemployment is stagnant, gdp isn't strong in the u.s. side of the business. are you confident things will continue on the u.s. side? >> i am confident in the u.s.. we have been very focused on the fundamentals. if you look at our trailing 12 month market share in the u.s. a 37% which is the largest since 2008 so it is a combination of growing market but then taking more than our fair share of the market as it exists and that is what we are focused on and will provide growth for our shareholders which is our focus. cheryl: our thanks to patty hart, the ceo of i gte. that start part, they're the name of the sector. from gambling to gambling on the market. an analyst at morgan stanley fat of the qe program along rattlers equities. kenny stockton, technical strategist is with me now. do you agree? not just morgan stanley but many analysts coming out and saying that the markets are diverging, the party basically is over. is that what is happening? >> it is a possibility. the thing to focus on is the s&p 500 has broken out to a new all-time high and that is. , exhibiting positive momentum from a short and long term -- cheryl: from lot technical standpoint, looking from a theoretical standpoint you are telling me that there's a different story going on. >> that is right. the exhaust and i worry about right now, momentum is strong and you could worry the market is overbought but sometimes that is actually reflective of positive momentum and you can still get one more surge higher base somewhere indicators are. and make it is interesting when your chemical analysis gets a fair shake, always going after analysts and giving this a value perspective, growth perspective but when you look at different charts for the dow, nasdaq and s&p from a technical perspective you don't think any of those indices have been overrun for 2013? is there room to grow? that is a different story. cheryl: that is true. >> there is room and i say that because there has been a lot of breakout, a new all-time high but it has been a global rally so we have seen break out across the board in equity markets and that is important even in the emerging markets, cleared important resistance and that helps forward the rally or extend the up trend. we can drive a target for the s&p from the latest break out of 1780 that are in treated from target. cheryl: a big change on the dow yesterday and many from the strategy perspective, saying maybe this wasn't good because the dow was actually going to cause more volatility and was not going to be indicative of the economy and can even look at the dow anymore because it is not a true story of the market but what is the technical side of that? >> there is no technical side. is a quantitative way to look at things. cheryl: awaiting his turn we change. >> that is true. and isolated index will come in to play. when you consider the index versus other broader benchmarks offer for looking at the s&p 500. it is broad based. that is to be the best thing. cheryl: let's move into the different sectors of the isn't the for 2012, here we go again. technology, financial, same sectors that are moving higher in 2013. any story different in your opinion? >> not really different. we have cyclical out performance and that is. testament to the market. that will see the interest rate sensitive sectors underperform in the months ahead. a short term, we should see stabilization from a relative standpoint. cheryl: always great to have you on the show. as the analysts don't get technical analysis they don't get enough perspective. very interesting. thank you. dennis: another leg up coming. cheryl: she is very positive, very bullish. cheryl: a new case schiller report suggests the pace of pricing gains may be slowing. cheryl: it is back. i know i did as a kid. wonder bread. we are going to tell you who inherited the wonder bread. i can't eat it now. thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. folks have suffered from frequent heartburn. butetting heartburn and then treating y after day is a thing of the past. block the acid with prilosec otc, and don't get heartburn in the first place. [ male announcer ] one pill each morning 24 hours. zero heartburn. tracy: i am tracy prices rose in july at the slowest monthly gauge since march. according to the latest report prices of the 20 city index were up 120% on a non seasonally adjusted basis. economists were looking for prices to rise 2%. holiday travel have three weeks to buy airline tickets before fares start taking off, kayak after mid october average fares the thanksgiving travel increased by 17%. and christmas rose 51%. travel up 25% and warner bread stacking stores up after nearly a year. the maker makes its own bread, but wonder bread out of a host of bankruptcy, $65 million deal include three of the bread bans. that is the latest from the fox business network giving you the power to prosper. dennis: continuing tuesday in this week, the british are coming. british telecom making moves to grow its presence in the u.s.. and at&t and verizon, the u.s. and canada global servicess. thanks for being with us. that would be wrong. you are uping your offerings because you compete with big guys. where are you now? where are you ready to go? >> a global calico, and in the u.s. for 20 years. and we invested globally in areas where customers grow. and some of them are actually on the screen today. and headquarters in the u.s. and focus on these customers, all across the world. dennis: editors to me verizon which is going to buy out 45% stake, of over $100 billion. partner up verizon. >> we partner with many around the globe and verizon at&t, and for us it is important to serve clients paula their applications an end an end available. and with any partner that the prime market we do ourselves. >> big barrier in business is all the data traffic eventually, has to run on at&t and verizon were those giants charging you too much and are they waiting in to this? >> and the access technology all-around global. and the local deal, the last mile. very often a local provider and many the two of the big ones in the u.s. are at&t and verizon and as we are in the united kingdom we are -- we are heavily regulated in the united kingdom to give a level playing field to anybody that wants to use our network, that is the sort of thing we want in the u.s.. dennis: verizon and at&t are free to charge what they want change you want to cap those prices and order them for how much they can charge? >> yes. we want a level playing field and that is to the benefit of all the customers in the u.s. as well. lower prices for business users. dennis: anytime government caps something there's something wrong and something is right somewhere. thanks for being with us today. cheryl: time for stocks. let's send it to the floor of the stock exchange. martin standing by for gray wolf execution partners, stocks are on positive data on home prices but if you look at the data and go behind numbers this could be the breaking point of the data at in housing. are you worried about what is coming under more pressure? >> they have moved a long way very quickly ever since interest rates started to take down with regards to the ten year we have seen a balance it has gotten extended. there's no guarantee they will go further from here. september is set to be one of the best month since january. we only need 75 basis points for that to happen and have the best of timber since 2010. the dow actually is at the same level as in a. of with the dow closing prices from a 20 eighth only ten or 15 points to that level so the market feels good it really has gone nowhere in the last four months. important for viewers to know that. cheryl: we had some different opinions where the markets are going to be going, some on the technical side, the number is coming from a technical perspective, the dow sine die isn't pr going higher. than you have people like morgan stanley saying that we are concerned the markets are splitting into will be down. two very different perspectives. >> absolutely right. the trend is positive since last november or june, obviously still in an uptrend that starting to see signs of waiting momentum and that is a concern when you see that on a weekly or even monthly basis. sentiment has gone to the highest. level we have seen in almost two years so that is a concern at this stage of a rally. we have the month of october to go through so that is a difficult month. no guarantee we can go to the races from here. cheryl: i have got to ask this budget showdown, traders said one thing it seems to me on television, off-camera they say give me a break of course they will come to deal. what do you say? >> i will leave that to the experts. i don't have any good comments cheryl: you are the expert like i said on the show. mark newton from the new york stock exchange. thank you. speaking of the experts it is the fox business all-star showdown. we began this summer, the beginning of the summer with we contestants down to four. peer down to 2 and the portion moves on and two new stock picks. and want to tune in and take home the trophy and it is the big trophy. that will be noon eastern time on fox business. see you tomorrow, dennis. how much would you pay for a ticket to see britney spears in las vegas? think about it but not think about this. what if she lip sink the entire concert? worth it? nascar is about excitement. but tracking all the action and hearing everything from our marketing partners, the media and millions of fans on social media can be a challenge. that's why we partnered with hp to build the new nascar fan and media engagement center. hp's technology helps us turn millions of tweets, posts and stories into real-time business insights that help nascar win with our fans. cheryl: time for west coast minute. we want to update you on this for the broken the last hour of markets now. waiters reporting jpmorgan is in settlement talks over allegations of bank defrauded investors on sale of california mortgage bonds. attorney general dan wagoner was expected to file in sacramento against the bank. fox business broke the news, talks between the bank and the justice department had broken down over its mortgage-backed securities. the brush fire in california's national force has grown to 190 acres. the fire was only 5% contained, it has been evacuated. finally britney spears is planning to the sink during her two year las vegas revenue hollywood resort. new york daily news is reporting a source close to her has said she doesn't sing, she is being paid a lot of money to live sing. her spokesperson has denied that report in the daily news. we will find out when we go to the show. that is a west coast minute. dennis: nothing like a little backup. >> she is going to make $50 million annually for two is 3 years and going to blitzing for $50 million? i would work for that. i can't sing. dennis: my mic britney, i wish her well. and when we come back forcing the deal, chrysler ideal fight and more than working requirement benefits. we also have george joining us to tell us why chrysler has been foiled. >> from perot these to doublings a lot of people in the ukraine have to learn the language is chinese. a third story coming up in the next hour. an early spring break thanks to her double miles from the capital one venture card. now what was mrs. davis teaching? spelling. that's not a subject, right? i mean, spell check. that's a program. algebra. okay. persons a and b are flying to the bahamas. how fast will they get there? don't you need distance, rate and... no, all it takes is double miles. [ all ] whoa. yeah. [ male announcer ] get away fast with unlimited double miles from the capital one venture card. you're the world's best teacher. this is so unexpected. what's in your wallet? [ male announcer ] now, taking care of things at home is just a tap away. ♪ introducing at&t digital life... ♪ ...personalized home security and automation... [ lock clicks ] ...that lets you be cloto home. that's so cool. [ male announcer ] get $100 in instant savings when you order digital life smart security. limited availability in select markets. ♪ you know how painful heartburn can be. for fast, long lasting relief, use doctor recommended gaviscon®. only gaviscon® forms a protective barrier that helps block stomach acid from splashing up- relieving the pain quickly. try fast, long lasting gaviscon®. adam: i am adam shapiro. lori: good afternoon. i am lori rothman. the dow and s&p look to avoid four straight days of the client. adam: chrysler revving up for an ipo. we have a behind-the-scenes drama for being. lori: the continent finally looking like a decent bat. we will have some top picks for your money. adam: latebreaking details as eric schneiderman looks to crack down on those getting data split second before the rest of us. nicole petallides is on the new york stock exchange. nicole: you were hoping to see some green arrows. right now, we do have some gains. however, they are hardly

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