Transcripts For FBC MONEY With Melissa Francis 20130117 : co

Transcripts For FBC MONEY With Melissa Francis 20130117

The company is expected to report eps of 27 cents and 7 billion in revenue. Weve got General Electric as well, global conglomerate ge. Analysts look for the company to report 43 cents a share. James gorman, 3 15 p. M. Eastern tomorrow right here on fox business melissa im Melissa Francis and heres whats money tonight. I knew it . That 787 is a flying deathtrap. Boeing dreamliners are grounded around the world. They say the battery is to blame. Why would anyone step foot on the plane again . Well explain how boeing can recover. That sound is the internets head exploding. Manti teo gets caught in a internet hoax that is to unbelievable. Was he in it all along . That could tarnish his draft. How to sort out fact from fiction. Verizon employee showed up to work every day for his sixfigure salary even he outsourced his job to china. Im not kidding about this. We have details how he pulled it off right under the companys nose. Even when they say its not it is always about money melissa first lets look at the days market headlines with todays market moment. Weekly jobless claims dropped to a fiveyear low. Housing starts for december hit a fouryear high. Stocks rallied. S p 500 closed at its highest level since december 26 of 2007. Intel reported Fourth Quarter earnings just a short tile ago. Revenue met expectations but they beat on the bottom line. However they forecast for First Quarter revenue fell short of expectations and its shares turned negative afterhours. Good news on the u. S. Economy led to an early slide for gold. Swung back late in the session and hit a onemonth high settles at 1690. 80 an ounce. Our top story is the frightening situation in algeria where a botched attempt to free hostages from bps natural gas complex turned deadly. Al algerian source tells reuters 30 hostages were killed. Seven foreigners, two japanese, one britain, a french national. Seven americans are missing. The white house is saying some are not accounted for. Fox news learned two americans are on their way to london. Bp is pulling nonessential personnel out of algeria. Details here still very fluid. There is a lot of conflicting reports out there. Here to help us sort it out, john bolton, former ambassador to the united nations. He is also a fox news contributor. I want to start out, can you put this in perspective for us. How big of a deal is it to the u. S. . I think we should consider it very significant. Even though it is in algeria a long way away. When you combine it with the hostilities in mali, the fact that al qaeda in the islamic maghreb carved out a space the size of texas in mall lay to use it as a sanctuary and link it with benghazi on september 11th when four diplomats have been killed and there has been no retaliation by the united states. This is confluence of events that shouldnt kate the war on terror is very much alive. Has a lot of implication for us, our european allies and middle east and it is all very bad news. Melissa when you combine with what happened in benghazi does it tell you this war is escalating . Well, i think it is. What is significant here in algeria they took a substantial number of foreign hostages. As you rightly say, the details here are unclear but they clearly had a lot of hostages at the outset and they were prepared to attack economic targets. We have to get Oil Drilling Operations in. This is huge part of algerian economy. If that is vulnerable and oil and gas facilities throughout the middle east are vulnerable this is something of potential of real significance. Melissa i covered energy for a long time. Oil installations are generally tend to be in hot spots around the world. I feel like theyre always a target. Why in this case do you think that they targeted this facility versus maybe an embassy . There are always potential targets but they havent been in the persian gulf region, in saudi and other places. Even in libya during the course of the effort to overthrow qaddafi. I think algeria had looked like a place of relative calm. But lets be clear. Radical islamists have been a problem in algeria for a long time. They won an election 20 years ago. The military brutally suppressed it, killing 100,000 people. So i think striking now, in part to take advantage of the french attacks in mali but to show they have got this capability is a real signal to europeans and, in north africa and really around the region. Melissa theres another piece to the puzzle in algeria as well, right . Because one of the problems theyre allowing their airspace to be used by france and, in this attack on mali . Is that part of the problem here and one of the reasons theyre in algeria . Well both algeria and mali, former french colonies. A lot of hostility to the french. I think what it shows the affiliated groups with al qaeda do operate with some degree of autonomy. I think this particular attack was probably planned before the french began operations in mali but i think they were opportunistic enough to take advantage of it and link the two in timing. I think, you know, in particular we ought to be prepared for more bad news out of this. British Prime Minister David Cameron had a big speech in the netherlands tomorrow on the u. K. s role in europe. He has canceled that because theyre worried about the circumstances there. So, i think this was a pretty grim operation. Melissa what do you think is the u. S. s role in this particular situation Going Forward . It is not our fight. At the same time there are americans there. We put up a drone over the area to see what is going on but what do you think American Forces should be doing from here or the president . We have to acknowledge the war on terror is not over. Al qaeda has not been defeated. The situation in mali is one thing. The situation in algeria is another. Im not saying we have to be involved in each and everyone but i think our responsibility from the point of view of American National interests is connect the dots. This is part of a pattern. I think we need it work with our european allies. I think we have to get our heads around the fact in washington that the war on terror continues. Al qaeda has not been defeted. It is wonderful usama bin laden is dead but the threat of international terrorism, the war theyre conducting against us goes on. Melissa is alive and well. Ambassador bolton, thanks so much for your perspective. Thank you. Melissa time for todays fuel gauge report. Strong u. S. Economic data and the attack in algeria september oil futures higher. Crude settled up 1. 3 at 95. 49 a barrel. That is oils highest close since middecember. Natural gas futures lept to a six week high. They dropped more than expected last week with cold temperatures across the west and east coast is helping to fuel an increase in demand. A key north sea oil pipeline reopened. A leak shut down a pipeline and nine platforms earlier this week. The pipeline now is back up and running after undergoing safety evaluations. It transports about 100,000 barrels of crude per day. Turning now to our not so friendly skies. The boeing deem liner becoming a nightmare as the faa temporarily grounds all 787s operated by u. S. Airlines. It is the First Time Since 1979 the faa has done this. Get this. The u. S. Has plenty of company. European union and some Foreign Airlines have now done the same thing. It is because of safety concerns tied to batteries boeing uses in the plane. Kind of begs the question, can boeing get back lost. Connell after this . Todd curtis, a former safety engineer and creater of airsafe. Com. Thanks for joining us. A lot of people are pointing to the lithiumion batteries. There has been problems with them bursting in flames in cars as well. Is that maybe a potentially Flawed Technology . It is Different Technology from batteries they used before. It has some challenges, if it catches fire it produces its own oxygen so it is difficult to put it out but there are design changes put in place to prevent smoke overboard. There are other changes they made to make this not happen. Apparently those changes were not enough. Melissa we saw last week, six instances on five days, or whatever the incredible stats were. A lot of people tried to slough it off, this is what happens when you roll out a new product. It seemed like too. Now the faa is stepping in saying hang on, lets ground these things. Are they overreacting, are they doing the right thing or is there a real problem here . I think there are things we dont know about yet. For example, after the event in boston last week immediately the ntsb had a fairly Serious Investigation involving the japanese. They had some inkling there was a problem with the battery system. What happened in japan later sealed the deal as far as a much more serious approach to this. Melissa as a passenger this makes me very concerned about a 787. Do you think they will get the confidence back for flyers if they straighten out all the problems . How would you go about doing that. I think the key is team work. When you have problems in an aircraft like this or an existing model, the certifying organization faa, ntsb and others including the japanese who will Work Together on a solution. If that solution is one actually effective, if theyre very transparent with what theyre doing and how theyre doing it i think Public Confidence will return. Melissa that sound like a long process. How long do you think these planes will be on the ground . Hard to say. Until they understand exactly what happened and until they understand what role if any the battery played it could be much more subtle problem. It may be days. It may be weeks. Melissa there were a lot of delays when they were rolling out this aircraft. That was sort of a, a source of a lots of consternation for shareholders are for example the industry. Do you think they rushed based on those delays and do you think the delays had anything to do with what were seeing now . I dont think it was rushed at all. Aircraft development with many new technologies as this one is has uncertainties in it. Along the way when there are uncertainties, there were problems, they made sure they were fixed before they moved on to certification. The delay was longer than usual but not one i would worry about. Melissa youre a safety engineer for boeing. How scared should we be . How big of a deal do you think this is . What is your assessment . When i said last week, this is really scary. People said no, no, no. Now, i feel like they led me astray then. What do you say now . Is this scary . Is this a big deal . First i was with boeing. I was there during the 777 development. I didnt stay with the company during the 787 development but the process is similar. There are things that happen. Sometimes it may seem a little bit scary to the outsiders who arent in on the process but theres a very, very deliberate process here that takes years, not just during this phase but as long as this aircraft is in operation. So. Melissa would you get on one of these aircraft today if they let you . I know theyre not letting but if they let you would you do it . If the faa and authorities over in england and in japan all say, hey, we have a solution. If boeing gets on board and has a solution and implement that i would have no hesitation. Melissa you trust everyone involved even though they all cleared it before and. There was a risk recognized. Two weeks ago we didnt know what that risk was. Once they do something about that risk our perception how safe it is will increase. Melissa okay. Im calling you in the future before i get on one of these to see if it is a good idea i still may knot get on but definitely putting you on speed dial. Todd, thank you very much. Next money on manti teo claims he is a victim of a girlfriend hoax. The fallout may only be beginning. Todays allstar panel will weigh in. Tiger woods, did you hear this story . He is reportedly trying to woo back his exwife, ellen nordegren, but the prenup she is demanding will make your head spin. What tiger may have to shell out if he cant keep his pants on. More money coming up. Thank you what are you doing . Nothing. Are you stealing our Daughters School supplies and taking them to work . No, i was just looking for my stapler and my. This thing. I save money by using fedex ground and buy my own supplies. Thats a great idea. Im going to go. We got clients in today. [ male announcer ] save on ground shipping at fedeoffice. [ male announcer ] save on ground shipping we replaced people with a machine. R, what . Customers didnt like it. So why do banks do it . Hello . Hello . if your bank doesnt let you talk to a real person 24 7, you need an ally. Hello . Ally bank. Your money needs an ally. Melissa all right. The scandal really rocking, it says the sports world here today but it is everywhere. Manti teo, notre dame star linebacker, is caught in the middle of an elaborate hoax involving a exgirlfriend we now know never existed t was supposedly a tragic love story. The girlfriend whose name was lennay kekua, died from lukemia last year. Thats what we thought. Teo soldiered through to lead his team to the National Championship game. People were stunned by this. A large amount of money was donated to notre dame because of his inspiring story. We now know none of it was true. It could cost the star bigtime. He was said to be a shooin for a first round draft pick f this scarce teams away it cost him 4 million. Fox sports host, j. T. The brick. Legal analyst, mercedes colwin, and marketing guru bruce terkel, creative director of turkel brands. He joins us as well. Jt, let me start with you. How shocking was all this . It is such a weird story. How blown away were you . Were all blown away by it and were still trying to gather information, melissa. I was on the radio last night and earlier today and fans are really upset. It came at the worst time in sports because of Lance Armstrong. Melissa yeah. Remember 30 days ago we didnt have a hall of fame class because of steroids. Fans are upset because of the cheating and the lying. For manti teo i believe that he fell in love online. The show, catfish, documentary, i could understand how he could get sucked into this. But for three years, how could he go on in a relationship like that, never meet his alleged girlfriend and then, heres the key, when she dies, play the sympathy card . Because right there he should have figured it out. Notre dame should have backed him. Someone at notre dame should have helped him figure this out and he could have came clean. This had effect way he played. He played awful in the National Championship game. He better come clean or is a naive young man. Hear you. Mercedes, i mean, you judge peoples integrity all the time. It is one of those things where you look at people and say are they telling the truth . Are they lying. How could he possibly have not been in on this in your expert legal, ethical opinion . Especially now in the world of knowledge, you can google, you can research people. Do the due diligence. How could you not have known . Father says i met her. We know that is not true. They never met. Never came for visit. Although the father came forward and said yes. I think this is programmatic and people are skeptical. How could you not have known . Melissa i did it on my computers all day. Well play the sound bite. Look at him to try to figure out what does know and what does he not. Lets play that sound. Why me . Why them . Why all in one day . This is six hours ago i just found out my grandma passed away. You take, you know, the love of my life. Melissa that is him talking about his girlfriend that didnt exist after she died. Bruce, save this brand. Save this brand. This is a kid, everybody is following him. He has this tremendous story. He is an incredible athlete. On one hand from a financial perspective it doesnt take away from his prowess on the field. It doesnt take away from the type of player he is, but what does it mean financially for his brand Going Forward . How would you advise him . Doesnt take away from what he does on the field, youre absolutely right. If he plays the game, he will get drafted. Problem is the Internet Echo Chamber doesnt forget. Brand that sponsor him, where big money is, they will have to think twice. If it turns out he is naive, they cant trust him. If it turns out he set this up, and turns out is a hoax he was in on. Forget, nobody will give him the time of the day. He will not run with the football and not run with a brand. Melissa jt, we were talking about this at beginning of the segment where he goes in the draft. There were calculations if he goes lower and goes in the second round and could cost him as much as 4 million based on where he goes. Does it impact his standing in the draft . Once again it is either by his naivete or integrity but not about how he plays on the field . His stock is dropping because he played terribly in the National Championship game. He was absolutely exposed. He had his worst game of the year. Conspiracy theorists are saying was this weighing heavy on his mind . Yeah he could lose money. If he turns out to be a great Football Player he will make it all back when it comes to contracts on the field. As bruce said when we talk about marketing the brand outside of football, player, gatorade. Look all the contracts rg3 has and he only has played a year in the league. Millions of dollars are at stake. If he was part of the hoax and knew about it and found out about it started to lie. He looks like a cheap soap appra actor breaking out the sympathy card. It looks awful. Melissa it does. Let me give you a money meter own the side as youre doing this. How does it affect where he goes in the draft, what do you think . I say money. He will drop 10 or 15 spots. It will cost him a couple million dollars. It is his reputation. Everyone wants a great reputation. If youre a part of a coverup i think there is much bigger coverup here that could include notre dame and when notre dame knew about this on the timeline. Melissa and they let interviews go on after they knew about it for sure, without question. Theyre admitting that. They let people continue to believe this story and talk about it during the bcs. Okay. Guys, nobody move. Stick around. We have so much more to talk to this power panel about, like the reports, i love this story, tiger woods could

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