tv On the Money CNBC July 23, 2016 5:30am-6:01am EDT
pokemon go yshgs there new craze could be a game changer in more ways than one. >> it's business. so generate revenue and people still like it. >> from steel city to high-tech hub. how my hometown has been reinventing itself with the help of small business. hot summer monday moves you should make before the warm weather goes away. and what to do with fido when you go on vacation. don't bark up the wrong tree. finding the right pet sitters. "on the money" starts right now.
>> we begin with pokemon go. if you see people glued to their phone while wandering around outside, there's a good chance they're trying to catch characters only they can see on their phone. the viral game gets as many as 21 million daily users in the u.s. according to survey monkey and what is all this craze about? well, that's our cover story. the pokemon craze of the '90s and early 2000's is back. but playing with cards is so yesterday. now you can spot pikachu and other characters in real life as you explore the world around you. >> it's really fun. i'm actually getting a lot of exercise which i never got before. >> and the game is more popular than twitter, facebook, and even the dating app tinder. here's how it works. you download the free app on your iphone or android. first you create an avatar you can tuz capture pokemon. they give hints when they're near. then launch pokeballs to try to
catch them. can you feed the characters, get to new levels in the game and engage in battle with other players. the enhanced reality game uses google maps technology to add a pokemon overlay to every day landmarks. the game makes money by letting you buy extra supplies such as pokeballs to help you capture more pokemon characters with real cash. un'natalie, pokemon go has had ununintended consequences. some have been injured rushing into traffic in search of an elusive pokemon and armed robbers used the game to lure victims into secluded areas. the game encourages users to get out and explore new places. it seems almost everywhere you go people are playing pokemon go. but is the new mobile game a passing fad or a bigger trend? and what does this technology mean furt of gaming and other industries? joining us now is edmon lee.
ed, thank you for being here. my first question, is i have seen people playing this in kansas city, in pittsburgh, here in new york city. >> everywhere. >> everywhere. >> why is it so addict sniff. >> it's actually, i mean, the intellectual property for one thing, pokemon is a well known franchise. a lot of people are playing it are 20 plus years older, right? >> yes. >> they're not necessarily tweenz or teens or young kids. so there was a nostalgia factor. second part, it is really easy to play. it's intuitive. you don't need to sort of figure out too many of the game play dynamics. you just download it, play with it for main or two and figure it out. that's a big factor why it caught on. i don't think anyone predicted it would be quite the craze it's become. >> so it is a craze. it is capturing a lot of millennial's attention. capturing young adult communities z that mean it's here to stay or a passing fad? >> well, it will definitely retain a big portion of core gamers.
people interested in games and playing games on their phones, they're going to stick with it. and it will be a long standing franchise. whether or not it will maintain sort sort of twswell, probably not. after a few days or week or so of playing, i think people get tired of it. the novelty is interesting. they figure it out and done. so it's not going to be a mass thing, but it's clearly big enough to show that this augmented reality thing will be here for a while. we'll find new ways of how it will be express xpresed in technology. >> i'm not entirely clear on how to play. i have a pretty good idea. who determines who the characters are and basically how i do win? >> the characters are based on the pokemon franchise. theret little pocket monsters, that's what the term comes from. and so as you're sort of got the game up and walking around wherever you live, it will buzz you. it will say there is a monster right around here and it will show up on your phone. it's determined about it game.
the game figures it out. they base it on landmarks where you live. so it really tries to fold in the real world in that way, right? so i played it for a little bit. there are landmarks in my neighborhood i didn't know b that part was interesting to me as a grown adult, right? and i think that drawn a lot of interest from a lot of people as well. it's folded in in a smart way sort of every day things with sort of, you know, typical game dynamics. >> so how is the company actually making money? and there are several companies involved here. >> yeah, it's interesting. the owner of the game is the pokemon company. it is really a company set up to handle the interlekt you'll property of pokemon. there is a start-up in california that developed the game. they each own a portion. the way the economics of it as a player, can you buy virtual goods in the game to help you along. that's where the money comes. from whether you're apple or
google, the game is being played on iphones or androids, they're taking a 30% cut. apple will benefit, google will benefit, the game developors will benefit. that is the economics of games today. >> what about the businesses around the landmarks? are they going to profit? >> there is an idea that local businesses could sort of buy into the game in terms of setting up your shop as a stop, as place where can you find pokemon or a gym where can you develop more abilities within the game. and you get more foot traffic, you get more dollars. that is the idea. i think in actuality, however, i think a lot of people are playing this game are really interested don't care what the business has. i think you want to go and level up and then move on from there. so it might help a little bit. i don't know that it's going to be a massive thing for local businesses. >> so there cynt deuis is introe
to august mented technology. is this going to be used in other businesses as well? >> it's important aspect to consider. there's a lot of investment from facebook and google, apple, amazon. they invested tons of money in this sofrt general technology of virtual reality. augu augmented reality is a flavor of that. there is too much for it to be a fad and just a game. what the companies are banking on is that virtual reality or augmented reality will be the next sort of way that people access information. we went from desktop computers to smart phones and now everyone is looking for the next way people will access information. it could be augmented reality or virtual reality. artificial intelligence is another way it may happen in term of voice commands with your phone or some kind of home device. that's why there is keen interest. i think that you're going to see more to come, for sure. >> all right. i better download this app. all right. i will.
thank you so much, ed. good to have you here. now here's a look at what is making news as we head in a new week on the money. more signs of streng njt housing market. americans bout more homes in june for the fourth straight month. and the monthly rate reached the highest level in more than nine years. existing home sales were up by 1.1% with an annual rate of $5.$5. 5.5.5 million homes sold. the dow hit new all time highs earlier in the week. the s&p 500 and the nasdaq following suit, the stocks rebounded on friday. roger ails is out. the man who changed television and invented fox news channel resigned as chairman and ceo this week after accusations of sexual harassment. rupert murdoch will assume the position. up next, we're on the money. for generations, pittsburgh was
think of pittsburgh and you may think of a tired industrial city. a former steel giant nursing the wounds of a product that can be manufactured and bought for less overseaed rs. you'd be wrong. there is a renaissance in the iron city, my hometown. and it has nothing to do with smelter and smoke. kate rogers joins us with more. kate? >> that's right, drawing on the
city's roots of innovation and creation start-ups and small businesses are doing some pretty amazing things. i found pittsburgh that evolved from steel town to tech town and it's not just taking baby steps. i'm charging with every step that i take right now. >> yes. >> while devices from tablets to cell phones improve constantly, the same can't be said for the battery life. it is something this 25-year-old and her start-up sole pow rer out to change. >> we make energy harvesting insoles for charging portable electronics while you walk. >> sole power raised around half a million dollars so far and is being tested by the u.s. army. but alex ander isn't alone for her desire for change. other startups vying to solve some of the world's big problems are doing so not from sill con valley but pittsburgh. the city once a booming steel town turned around post industrial collapse but never lost the spirit of innovation. pittsburgh is already home to offices for google, apple and most recently uber but in the
past decade, the start-up seen bolstered by tech companies has taken hold. the iron city is also one of the most affordable places to live and work in america. that's part of the reason why the foundation ranked this a top ten metro for established main street business activity with more than 1100 small businesses for every 100,000 resident in the area. innovation works, a nonprofit with two nationally ranked accelerator programs invested $65 million since 1999 in 300 local companies. they've gone on to raise more than a billion dollars. more broadly in the past two years, pittsburgh tech companies have raised nearly $500 million in funneledi funding. >> we track entrepreneurs that come up to us for help. that has gone up 500% in the last eight years. so a lot of momentum. >> one of those startups was launch bid native ian rosenberger who started thread
in 2010. they take recycled plastics from haiti and done honduras and turn them into tuesday stainable fabric. they have a deal with timberland. >> we could have started a business anywhere in the world and we chose pittsburgh. we care about our city and uncles and dads and grand fathers lost their jobs in the mills in the '70s and '80s. but in the ashes of that, you see this incredible ecosystem of businesses starting that mean something. >> the commitment that startups have to stay in pittsburgh and not flee to silicon valley when they could is what amazed me. >> what is interesting to me is the type of startups that are being created and the amount of attention that the education community is paying to that with carnegie melon university and the university of pittsburgh as well. what are the industries that are really most compelling in the city? >> i think what i found to be most compelling is just the spirit of innovation that you see throughout all of the startups that we profiled.
one more that wasn't in this package makes the robotic arms being used by the u.s. army and military to basically disable bombs. so it's just amazing. innovation works, that is $65 million into all the startups, they're focusing on robot ikz as well. that is one area and technology. we see it everywhere. all around the country. it's cool to see it. >> it was on that list also because of the cost of doing business in pittsburgh s that more cost effect sniff. >> yes, it's one of the most affordable places to live in america. if can you have access to resources, venture capital funneleding is flowing. there why not give it a try? >> great. great story to tell. i'm glad someone who is not originally from pittsburgh is also telling the story. thank you, kate. up next, we're "on the money," why summer time could be the right time to ask for a raise. and later, match.com for your dog, sort of. thou app finds the perfect pet sitter matched for your pooch. josh, don't you have friends coming over?
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summer time is a good time to look at where your finances are for the rest of the year. you could make some change that's will impact your year end numbers. financial journalist natalie more sis here with smarlt moves to save you money. thank you for joining us. >> thank you. >> summer, it can be so expensive with camps and vacations and how do you get a handle on your spending? >> right. i notice in the summer that i spend money on random things that i hadn't really anticipated. we're half way through the year.
so now is a good time to look at your budget. follow the apps that you use like maybe a mint or level money. and see where you're actually spending money like oh, i didn't ib tend to buy a slip and slide or five rash guards for my kids, especially in the sun products. do you spend a lot of money with that stuff? >> yes. >> that you didn't necessarily bargain for. >> and the reoccurring charges i get sometimes. where i'm not using that service. >> beer of the month or cheese of the month. yeah. i found a good service that i like this year called true bill. and what they do is they go through your bank accounts and see where are your reoccurring charges coming from and then sthenld you notices. they say do you still want to subscribe to this? for instance, i found one, dinlt realize i had subscribed to kindle unlimited. once that free trial came up, it popped up and said do you want there? i realized i wasn't really using it. and they will go and unsubscribe for you. it takes the pain out of it and monitors for you. so you're not nickelled and dimed to death. >> right. let's talk about the biggest expense, often housing.
>> how do you get your -- a handle on your housing expenses? >> now is a great time to rethink our interest rates on our home loans. so it may be a good time to look at your budget, see what you're paying in housing and then go to some of the mortgage calculators and see what the current rates are for refinance. but you want to keep in mind that when you refinance your loan, you're buying a brand new financial product. so see how much that's going to cost you in closing costs. and then divide that number with how much you'll save per month on your loan. so say it's a $3,000 mortgage brand new mortgage, right? but you're saving $300 a moshgs that's how many months it takes f you're going to be in that home for that long, do it f you're not, you might want to see if can you get a cheaper product. right now the banks really want you to do this. so there is some insentive there. >> definitely. >> the biggest investment that you're going to make is in your career r there steps we should be taking now even though we want to just leave early and go on vacation as much as we can in
the summer but where we can focus on our career and that inve investment. >> when you watch other people leave early and walk out the door, it may be a good time to step into your boss's office and say let's talk about what i'm doing. the summer months when it's not as crazed in the office, might be a good time to re-evaluate your career. there are estimate that's women, especially, leave billions of dollars on the table in nonnegotiated salary. men do this, too. so, you know, almost never hurts to ask, right? unless your boss really hates you which sun likely, you may as well just x have the talk. >> excellent. great advice. thank you so much for joining us. >> thanks for having me. >> up next on "on the money," a look at the news ahead. and full time pet care. why one man gave up his job at goldman sachs to watch a dog. mr. clean gets tough on dirt and grime
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and never go to the post office again. here are the stories coming up that may impact your money this week. we'll get earnings from nearly 200 s&p 500 and 12 dow companies including 3-m, caterpillar and mcdonald's. on monday, the democratic national convention kicks off in philadelphia. on tuesday, we'll get june's new home sales. on wednesday, we'll see how busy factories were with the durable goods report. and the federal open market committee will end the two day meeting. we'll see what happens to interest rates. on friday, the first reading of the second quarter gdp comes out. and put the forks down get the
napkins ready, friday marks national chicken wing day. if you're heading out of town this summer, most likely fido won't be tagging along. if you don't know someone who can dog sit that, means leaving him behind in a kennel. but now there is a new way for dog owners to connect with reliable vetted dog sitters. joining us is dog vaca founder and dog vaca pet sitter mike lamb and his dog toby. thank you so much for being here. >> thanks for having us. >> this is a great idea. how did you come up with it? >> my wife and i went out of town for ten days. i left our two dogs in the kennel. i came back to a $1400 bill and my dog rocky traumatized hiding under my desk for three days. we knew there had to be a better way. >> how does it work? >> we have 30,000 insured and vetted pet sitters across the country. they watch dogs in their own home. we do all the quality control. the dogs get individualize add tension. because our pet sitters set
their own rates, it tends to be abo 40% or 50% cheaper. >> how are they insured and vetted? zblefrg goes through us. people apply to be a pet sitte.: we september 50% the applicants. training, insurance, everything goes through the system. it is really a fully trusted -- we have 24/7 support. everything is about peace of mind. there is a family member. >> yeah. >> so you have many family members added to your family with you and toby. >> that's correct. >> tell me about how you became a pet sitter and you were working at goldman sachs. >> that's correct. >> so you're doing this full time? >> yep. >> that's a huge pay cut, sfligt. >> not really. i left goldman sachs because i was tired of that office life. and i was thinking maybe to jump into another firm. but in the interim, i signed up for dog vaca just for fun. and then after a while, i realized that it could be just as lucrative. i ended up pretty much making the same amount of money as i was before. >> why do you think it's such a great business for you to have
almost? as well, to be a part of this business? >> i absolutely love animals. this is literally a dream come true. and, i mean, to be able to do this and work from home instead of in an office and i get to spend time with my son at home. it's just priceless. >> yeah. >> who is most interested, aaron, in becoming part of dog vaca and you were saying that retirees actually are -- force. >> when we look across our pet sitters, retirees is the fastest growing segment. they may not able to commit to getting a new dogs because it's a 10 or 15 year commitment. they're going out in their neighborhoods. we have a lot of stay-at-home mom and dads and freelancer. it folds easily into your life. they cuddle under the desk while you're working on what you're working on. >> what you would say that someone thooz do to be a great dog sitter? do you have to have a lot of space? do you need fit you live in the city. ? what do you sneed. >> when i started, i started from a small apartment. it's about putting time n making
sure you take care of the dogs, walking them. and to be a great host, you have to be good at communication. you know, getting back to your clients. sending videos, making sure they know their dog having a great time. >> it's that peace of mind. sending photos and videos so the customer knows their dog is being taken care of. >> that's a wonderful idea and it's a great company. thank you so much for joining us. and especially to toby, thank you. happy birthday to tobaccoy. that's the show for today. i'm sharon epperson. thank you for joining us. next week, summer wines. thou find a bargain to go with your barbecue. each week, keep it here. we are on the money. have a great one. we'll see you next weekend.
the guys are getting ready for the big show. here is a look at what's coming up. yeah. that's what the charts say biotech is about to do. and we'll tell you the one stock traders think could lead the way. plus -- worried about apple shares? don't. because we have a really cheap way to profit from the tech giant's earnings. we'll explain. and -- something very strange i