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tv   Markets Now  FOX Business  December 5, 2012 1:00pm-3:00pm EST

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melissa: rally mode. i am melissa francis. lori: i am lori rothman. president obama telling business leaders he is cheering for their success. tax hikes for the wealthy saying there will be no deal without tax rate increases. melissa: 11,000 now out of work at citi. slashing jobs taking a billion dollars charge as it repositioned oppositions. charlie gasparino tells us it is even more cuts are on the way. lori: new warnings and ethanol blended gasoline. joining us on whether you should be worried about what you put into your gas tank. let's get up to speed, back the floor of the new york stock exchange and nicole petallides. economic data on the service industry. nicole: looking good, lori and melissa.
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up 125 points. after two days of selling we are seeing some market action to the upside. we are above the 13,000 mark, well above that. 13,076. the nasdaq squeezing it out. concern for apple, but financials are doing well. let's take a look at the group. laying off 11,000 workers, that is the plan. a new ceo in place and he wants to make his mark. up 6.5%. it is under pressure, nowhere near $700 for the all-time high in september. the latest findings other actually going to use the market share for the ipad to the
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android in some microsoft folks, they're facing intense competition. with the findings you see stocks down 4%. back to you. melissa: interesting. lori: thank you. melissa: a battle for a deal inn the fiscal cliff continues, democrats cannot seem to find a compromise on top earners. rich edson is back in the white house with more. >> president obama said look, if republicans agree to my tax plan, we can get this deal done in a week.3 john boehner is waiting on the president, he says he's read hey to meet with the president at any time. we asked the president obama plan on calling the speaker or inviting the speaker to the white house and we haven't gotten a response. what is dumbing this all up is the tax rate increase. >> were not insisting on rates out of spite for any kind of partisan victory.
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but rather because we need to raise a certain amount of revenue. >> an obsession to raise taxes is not going to solve the problem. what will solve the problem is doing something about the entitlements, taking on wasteful spending in washington. speak up for the fiscal cliff is part of the half trillion dollars in cuts to the pentagon. the defense has been saying we will not plan for sequestration's because they don't want to be cautious because it is like a gun to the head. they're now looking into planning for this because we are getting pretty late, and that may become a reality. back to you. melissa: rich edson, thank you so much. lori: let's continue this discussion. it is going to happen, it is exactly what the democrats want. according to scott hodge of the tax foundation. what are some alternatives to raising revenue?
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joining me with some ideas. to your point, you're written quite extensively on this topic. it seems the economy is poised to fall off the cliff and that's what the democrats and the president wants to happen. >> they want to allow all the bush tax cuts to expire. it happens naturally automatically. they don't even have to vote for it. in january we had to lower taxes for everybody. getting it very simply. lori: a lot of people are concerned. if we do go over the cliff, there's no resolution for the alternative minimum taxes, will not be passed that does not get resolved you have 20 million more americans who have to pay this tax otherwise wouldn't and again that could be good leverage for the republicans.
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how do you see that issue playing out? >> that is a big one because alternative minimum tax largely hits blue states, democratically states like maryland, new jersey, new york, connecticut, california, illinois, all of those are democratic strongholds so they can save the white house were not going to patch it unless you give us something we would like, that gives them a little bit more negotiating power. that is pretty fragile negotiating position. lori: your note this morning way to raise government revenues in terms of negotiating power. long-term growth with high income taxes and on the downside the least harmful consumption tax and property taxes. is anybody listening to this? >> we just put this out. we like to get congress focus on doing the least amount of harm while they raise revenues of some sort.
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you can do through asset sales, develop kind of things thee3 government owns and does not own. a lot of things in terms of oil leases and about a trillion dollars worth of mineral rights the government can sell off rather than raising taxes. they can equate government workers to pay more towards the health insurance and pensions, that would be a good thing and raise revenues. there are lots of ways to raise revenues without doing harm to the economy. lori: i have got to interrupt you here, why is the president so insistent upon raising tax rates for the wealthy? if you are point we don't necessarily have to do that to get meaningful revenues. melissa: it seems like religious or political on is part. this is a matter of an article of faith on the part of democrats and liberals to get rid of the bush tax cuts for the wealthy. they campaigned on it for more than 10 years now since it was enacted in the bush
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administration. they want to get rid of it. they ought to understand those are some of the most harmful economic ways of increasing revenues for the fiscal government. they ought to look for things that promote growth, not harm growth. lori: you laid it out. research rnc credits that will perhaps stop spending money on r&d until they get a firm idea of the credits they are entitled to. do you think this economy which is so fragile, weak jobs numbers, probably another bad one on friday. however as are we for going into a contraction, recessionary time here? >> it is very serious. we are seeing indication investment is down, largely because the bonus expensing is about to expire. we should renew that to keep investment going. one of the things that worries many economies is the fact we
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could be downgraded again. the credit rating is at risk and this is the kind of connection that can bring about that kind of a downgrade. lori: thank you so much, we have been discussing this a lot. if we get another debt downgrade, this one could be troublesome, this is where we could see the bond market reacted because now you have two downgrades and you cannot default the better rating. melissa: that is a great point. egyptian president mohamed morsi returned to cairo palace after fleeing last night. tens of thousands of protesting the constitution, the trap is set for a vote on december 15. riot police have been deployed to separate supporters and opponents of president morsi. anti-morsi protesters that he is stripped judiciary of power and rushing through his constitution backed by largely islamist handle.
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egyptian president has said the referendum vote on the constitution draft will go on as planned despite protests. lori: it is a shocking. unreal. melissa: paying the price for hurricane sandy, fema asking for more money to foot the bill. how does the federal government plan to pay for this? lori: the social networking site moving up in the world. how investors could benefit the head. want to try to crack it? yeah, that's the way to do it!
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melissa: as washington is in the middle of this tumultuous fiscal cliff negotiations from a white house looking for more money in the terms of emotions the aid request rebuilding efforts. still willing from super storm sandy here in the northeast. peter barnes in washington with the latest on that effort. speaker according to "the new york times" for white house will be looking for about $50 billion to help rebuild from hurricane sandy. officials testifying declined to comment that number but they did say the white house will be sending in disaster relief bill up to congress by the end of the
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week. the three hardest hit states: new york, new jersey and connecticut alone are seeking $80 billion in federal help. the administration is teeing up a big request. >> much of the impact of sandy go beyond fema programs. fema's assistance is limited, maximum benefits of individual family could receive is about $31,000 if they have no assurance. others that will not rebuild destroyed or damaged home to did not have insurance. >> woke up to this headline. u.s. denies aid to the maryland storm victims. this is the picture of the face of maryland going through the storm. i will not show you the pictures of the lower shore this morning. >> a disaster bill coming up in the middle of this battle over the fiscal cliff could make this
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really complicated. some republicans are discussing offset spending cuts elsewhere in the budget now to help fund this legislation. lori: good luck with that. melissa: let's check the market, nicole petallides on the floor of the new york stock exchange. we add another company to our daily accelerated dividend watch? nicole: that is right, we are indeed doing just that on a day the dow was up 130 points, maybe some investors are already happy to see an up arrow to the market. western digital, those shareholders are getting a nice boost. the stock is up 9%. joining over 110 companies accelerated the dividend payout. if you are watching a fox business network know by coding the dividend payout they are not susceptible to a higher tax rate in 2013 if the fiscal
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cliff does not go well. there is no bipartisan agreement on the way to save the day. so many other companies, wal-mart, eastern allen, weight watchers all payouts as dividends ahead of this year. back to you. melissa: but wait, there is another company to add to the dividend list. don't miss "countdown to the closing bell" with liz claman. plenty of evidence now showing that it impacts decision-making. lori: it is great to see ceos and companies rewarding shareholders and shown their grateful to that. citigroup cutting 11,000 jobs. trying to slim down with more cuts on the way.
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>> 23 minutes past the hour, hello, this is your fox news minute. witnesses telling reuters gas bombs are being thrown at demonstrators outside the presidential palace. president mohamed morsi is back after running from hundreds of thousands of protesters swarming outside yesterday. demonstrators furious over the power grab in his rush for a new constitution. the israeli prime minister is saying the jewish state remains committed to negotiation settlement with palestinians as israel plans to build a settlement in the western banks. the remarks, have a sit down with a german chancellor angela merkel. 230 people have died following a massive typhoonn hundreds more are missing.
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the typhoon slammed in with wind gusts reaching 93 miles per ho hour, tropical cyclone set off a massive landslide claiming hundreds of lives. those with a quick look at the headlines making news this hour. back to lori and melissa. lori: thank you so much. melissa: citigroup christmas present, more layoffs, charlie gasparino has discovered possibly no bonuses for those caught in the cutbacks but it citi alone in making the holiday season a crummy one for please? charlie has more. >> no. morgan stanley and goldman sachs are seriously eyeing layoffs as well. the timing of the 11,000 was pretty interesting. right before christmas and i will get into what that means in a moment. they are not denying it. based on the conditions, a nice
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way to say you're right on target. we are planning cutbacks. we cannot say how much they're cutting back, but they have been cutting back all year. the fact they are planning more cutbacks means they think the wall street outlook for 2013 is pretty lousy, and i will tell you they think it is pretty lousy without the fiscal cliff area. you can see a lot more. now let's get to citigroup. they cut them back toward the end of the year. we should point out wall street executive employees, not just the highflying making millions of dollars. they get a salary and a bonus and most of what they make every year isn't a bonus. we get this from employees, they can essentially renege on year-end bonuses to anybody that has been caught in the cutbacks basically out of a job now.
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there were layoffs yesterday, layoffs today, some layoffs into 2013 when you get your bonus and so those people might get their bonus but anybody who gets whacked before the official bonus check attended to you does not get that bonus. my view, that sounds pretty sleazy to me. michael corbat to his employees, not exactly a nice christmas present. lori: would b use to the comingf this is so citi can avoid paying bonuses? >> is not totally unprecedented. this is pretty nasty. they did it right before christmas, and what is scary about this, citigroup is not denying this, i hear lots of people, telling us they will be some cutbacks in 2013. presumably they would get their
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checks, the people now are not getting their checks. they worked the whole year. they did not work the last month, you would think you prorate the bonus 11 months. 11 twelfths of it you get. melissa: you would think you did not do what you should have for your group is not performing or is not producing profits so it would make sense you would not get a bonus. >> the average person at home do not work on wall street. if you make your competition based on years worked and people in our department are getting bonuses, you would think you would get a piece of that. that is what i believe anyway. here's a good point, why is citigroup even in existence?
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they would not be if it was not for the federal bailout. they're not getting bonuses and there are some really angry people. lori: the bonuses themselves, or do anything to be excited about >> better than nothing. lori: times are definitely tough but have doc brown and marty mcfly been forced to go from time travelers new york city cab drivers? melissa: when you can't grab a taxi, should you fill up on ethanol? could your car be at risk?
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melissa: time for stocks now as we do every 15 minutes. let's head to the floor of the new york stock exchange. our own nicole petallides is standing by. and, nicole, a little m&a action in the mining world today. >> really there is a lot of action in the mining world. we'll take a close look at freeport-mcmoran, a big deal underway here. what is interesting when you have mergers and acquisition particularly in energy this is something that brings positive sentiment to wall street. let's look at freeport-mcmoran. also taking a look at other names that are involved, right? you're looking at, see how they are faring. plains exploration is up 25%. mcmoran exploration up 82%. freeport-mcmoran is buying both of those together. this is $9 billion. this is about oil and gas producers and it will create a natural resources conglomerate. this is a huge, huge move. freeport-mcmoran is a name we always took to when we talk about commodities and things on the move and on a day where oil and gold are to the downside, gold in particular talking about freeport-mcmoran, copper and gold.
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you can see it is down 14%. that is not unusual to see an acquirer selling off as the two that are being acquired are gaining big-time. this is the action we're seeing in this mining and oil and exploration type deal and this is a big one. certainly scooped up wall street this morning. back to you. melissa: nicole, thanks so much. lori: awash in crude oil thanks to fracking. u.s. oil production jumped to 6 1/2 million barrels per day in september. that is a level not seen in about 15 years. for more on black gold let's head to the pits of the cme and fox business contributor phil flynn of price futures group. the phil, the eia also reporting a big drop bigger than expected drop in crude supplies along with stronger dollar equals lower oil prices. >> absolutely. they almost got back even on the day. they're trying but that is not there. that is historic what you're talking about, that record high production. traders were not focused on that at all.
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they're focused on the stock market going back up, oil prices coming down. they're focusing on the refiners today. they were going crazy last week. they were refining at a capacity over 90%. they must have thought it was the 4th of july. if you look at refining margins they were like the 4th of july. because of shortages of gasoline supplies in the northeast there was demand for gasoline the refining margins went through the roof and refiners rose to the occasion. you know what that meant? that meant we saw the biggest surge in one week gasoline supplies since september of 2001, almost 15 years. now add to that last week's supply, we added almost 11 million barrels of gasoline to supplies in two weeks. that means we went from below average is up price to above average is up price but not is all in the oil class. this side of the equation even though we saw the distillates supplies increased, or excuse me, they were down a little bit, the problem they're still
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below normal. while gasoline is back to normal, heating oil, jet fuel, still below normal. that is one reason why the market isn't totally falling apart after the massively supply build. lori: i'm no expert on distillates, phil, it is unseasonably warm. like a spring day in new york here. >> it is. melissa: there you go. the renewable fuel standard required a certain amount of renewable be mixed in with normal gasoline but several major companies are calling the requirement hurtful to consumers. aaa's ceo is calling for suspension of the program saying bringing e 15 to the market without ad quad -- adequate safeguards does not meet needs of consumers. the sale and use of e15 should be suspended until additional gas pump labeling and consumer education. american petroleum institute is calling for complete
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repeal. law this is shocking issue. this fuel is lauded as great for the environment and a good thing. some manufacture you ares are saying guess what, it will void your warranty if you use this fuel in certain cars . what do you make of this whole thing? >> melissa, what happened this is good example where the government mandates picking winners and losers and forcing decisions on the part of consumers which could be harmful to consumers. comment by aaa coming out to say the decision to allow for e15 blend or 15% of their gasoline to be derived from biofuels, in this case ethanol, the auto manufacturers have said they will not honor their warranties if people use this fuel which is potentially harmful to their engines. the automakers researched
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this. melissa: it is amazing because they say i void your warranty. >> yeah. melissa: can you imagine you buy the fuel and put it among the manufacturers, chrysler, gm, toyota, especially in older vehicles and look at your manufacturers website if you're in this group, what happens with the e15 the fuel separates and ethanol in there is highly corrosive to your engine. is this new information? did we know this before? >> well, no, we've told the regulators about this we spent millions of dollars in research to try to understand that dynamic. in fact let me reiterate. in the oil and gas business we support biofuels. we're major investors and producers of biofuels but we don't think you should force more biofuels to be mixed with regular gasoline until you know its impact. other research shows it puts five million american cars that are already on the street at risk where it could have some engine
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damage. we think you need to look at all these other issues that are now starting to come to the surface, but regulators, the administration just moved forward mandating the fuel. melissa: what does it mean to have aaa coming in and putting out a warning, saying don't use it, and putting out a warning saying consumers be careful, this could damage your car? no offense but when you come out and speak against ethanol a lot of people would say well, you represent people who make petroleum so you have a dog in this fight but to have aaa come out and say, hey, consumers be careful is pretty meaningful. >> it is significant that triple a has come out. i would add three other groups. california's arrow sources board. california has never been a proponent of oil and gas. they're coming out saying don't use e15. manufacturers of food, grocery manufacturers and others cattle and others are seeing costs driven up because they're taking all
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the corn and producing fuel. now you see the restaurant associations coming out opposed to mandate of biofuels, particularly corn ethanol. this is not about oil and natural gas. as i mentioned earlier we're big proponents of biofuels. we produce a lot of it. there are a lot of issues. we've got to get back and fix the problem. our view it has become so bad you have to repeal the mandate and go back to square one. melissa: how do you think the epa will respond? what have they said? what do you think they're going to do? >> well i think it is very clear the epa is going over the cliff with those who think we ought to keep mandating the fuel. there was a waiver provision put in the summer. in the law you're allowed to seek a waiver if you think conditions have gotten out of control. this summer they got out of the control with the drought and middle east and lower corn crop production and they denied the waivers. so our biggest concern for consumers need to look right at the ep and say, you guys are creating a problem for those of us buying these
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fuels. melissa: jack, before we go, last time i talked about this people e-mailed in and said they're trring to find gas station that is not blended with any ethanol at all. i was at a gas station the other day. every pump says 10% ethanol. should you worry bout using a blend that has 10% ethanol, do you think? >> there is some dispute over that but i think most cars today, at least newer models have been manufactured to be able to use an e10. if that is all we're looking at that would be very different discussion. melissa: got it. >> when the regulators arbitrarily say e15 now we call into question all the auto warranties. it is a big problem. melissa: we've got to run. jack, thanks. lori: arbitrarily, that is the key word with the regulators are concerned. with 26 days left, will, if you're a gambling man, will we avoid the fiscal cliff? melissa: surprisingly the american people are not so sure on this one. we'll get lou dobbs's take.
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>> i'm adam shapiro with your fox business brief. stocks are trading higher in afternoon trading pushing blue-chips into triple-digit gains. right now the dow is up 113 points. workers at the ports of los angeles and long beach are back at work today of an eight-day strike crippled one of the nation's busiest ports. the announcement came from the mayor of los angeles who joined federal negotiators to negotiate a deal between the employees and portfolio managerment. mayor villaraigosa will be a guest on fox business. elizabeth murdoch died,
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mother of rupert murdoch. she was considered one of australia's most generous philanthropists donating money to more than 100 charities. dame elizabeth murdoch was 100 years old. that is the latest from the fox business network, giving you the power to prosper.
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lori: as republicans and democrats continue the back and forth over the fiscal cliff one thing they're already losing is the confidence the american people. look at this. just four in 10 americans believe washington will reach a deal by year's end to avert the fiscal cliff but nearly half do not think they will. that is according to this new poll released by the pew research center. let's get lou dobbs's take. he is gracious to join us at this time. >> great to be with you. how are you doing today?
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lori: doing well. melissa: you're so charming. lori: i get to sit next to him today. >> the fact of the matter is, that 40% is paying attention to president obama. he himself said, himself said, that he will, you know, he thinks two weeks really isn't adequate to do this thing correctly. let's just raise taxes. i mean the president himself is, he is a 40%. and he is a leader who is obviously not interested in reaching the conclusion before the end of this year. we're looking at some really, really sat efforts on the part of this white house and some outrage just demands and ultimatum. by the way i think the president has claimed this fiscal cliff for his own and i don't like quite understand why the national liberal media insists upon talking about, for example, 53% of those surveyed say it is going to be the republicans fault. that is inanity. shows you level of ignorance what is happening in
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washington, d.c. this president set an ultimatum. his solution will be determining what happens on the 1st of january, 2013 whether we go over the cliff or not. he added to this already difficult task, national debt ceiling. i mean, this is a man looking for a fight. he is man who has found it. i'm sorry? melissa: more spending. he slapped on more spending. why not? >> arrogance and insult of that. you call it negotiating and rationalize it and even excuse it but the fact is he is not leading. he is not creating consensus. he is being divisive. and, too cute by half in all of this in my opinion. melissa: what is so frustrating about the wholization -- whole situation, and crunch numbers of all three plans it is all about raising revenue and raising taxes and none of it does nothing to solve the massive spending problem. it does nothing to tackle
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it. it says taxing the rich will be fine and that doesn't get you anywhere. >> only gets you $82 billion. it leaves enit just under a trillion dollars to account for in the course of this fiscal career. -- year. it is an absurdity. it is weak. it is unimaginative. this president is succeeding because of accomplice it national media that is suspending critical judgment when it comes to budgetary issues and tax issues and doing his bidding. when we watch the president summon the hosts, the left-wing hosts of msnbc to --. lori: where was your invitation? melissa: got lost. >> to the white house to discuss messaging, not an examination of the issues, i mean this is pretty sad stuff. lori: president who won, who voted in because he is popular, because he was likeable. yet he is so distant -- >> voted in with a 3% margin in the popular vote. this is a man who lost 7.5 million votes, excuse me, he
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lost 4.5 million votes from 2008. this is not a man were a mandate. david axelrod, senior advisor acknowledged that fact. he is of course is ignoring both the claim it should not be a mandate and david axelrod. he doesn't often do that. lori: thank you, sir. >> great to be with you. lori: great to have you. you can see lou as you know every day with melissa and me. of course at 7:00 and 10:00 p.m. eastern tonight. chief moody's economist, john lonski and deutsche bank. much on that topic and other things. melissa: as we do every 15 minutes, let's check on the markets. nicole petallides on the floor of the new york stock exchange. nicole, lots of cuts for pandora today. >> we were watching pandora yesterday late after the bell and came out with quarterly numbers and quickly the stock began to sell off. that has translated into today the action you are seeing. you will see down arrows right here. it has been down over 20%
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like it is right now. it is down $1.91 to 7.54. this is outlook giving well below the analyst expectations. they're seeing a loss in the fourth quarter. they're talking about full-year guidance that will be below the analyst expectations. revenue that is also not, not stellar and certainly not meeting what wall street had been hoping for. as a result, pandora media is really tanking today. shareholders can not be pleased with a loss of over 20%. back to you. lori:. melissa: no, i would say. nicole, thanks so much. lori: great scott! the could this be the taxi of future. two designers putting their twist on what new york city cabs could soon look like. melissa: i love it. lori: designing them in the likeness of the delorean from the "back to the future" films. these shots were done for a student advertising design competition. any people see them online and think the car actually exists? it may not be real but i'm sure marty mcany and doc brown would fit in
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the big apple though tough to hit required 88 miles an hour in manhattan traffic. melissa: it puts you right up next close and personal with your taxicab driver which is just what you want, right? there is only two doors. get in and get right there with him. perfect. lori: yee. melissa: good to have friends in high places. thanks for getting exclusive invitation that may serve as a nice boost for shares. lori: royal baby be a boy, girl or maybe twins? melissa: maybe. lori: both are betting big on this one. the gambling industry getting in on this one.
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lori: making its debut. it will be listed on the nasdaq 100 next week. how did a company that just went public this year already make its way into the index? shibani joshi is covering this story. >> already flexing its muscles as far as what i'm hearing. the reason facebook decided to list on nasdaq in the first place not just to be on the exchange. we know how the story went but also to be a part of this index which is comprised of the 100 largest nonfinancial stocks that trade. out with the old. in with the new. an indian based i-t consulting firm is out. this is starting beginning of trading day next wednesday, december 12th. many of us hold the nasdaq
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100, whether you trade it actively or not. it is part of a lot of big mutual funds, et cetera. a lot big names, google, amazon, netflix. but nontechnology names as well. dollar tree, mattel, starbucks, wynn. broad swath of economy this index tracks. lori: throwing in to image theenasdaq 100 funds? >> that what we think will happen next few days. they try to mimic. try to buy all the same stocks in all of those same 100 stocks. we think a nice pop up. we will not, today, though. it was down now. but what we'll not see is a huge pop up because that usually happened and is reserved for the s&p 500,. when stocks get added in there. that's when we see a bigger sort of investor base react to that it may be a while. google, for example, had to wait two years before included in the s&p 500. facebook may have to wait a little bit as well. certainly something that is --. lori: nice job.
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gives more clout being in the nasdaq 100. melissa: great report. place your bets. it is not a horse race. it is a royal baby race. prince william has rushed to be by his wife's bedside as she is treated for severe nausea at king edward hospital in london. odds makers are rushing to get their wages out. paddie power has 20 to 1 that catherine will be in the babe by's name. 9 to 1 for diana. 16 to 1 for william. we have odds how big the royal bundle will be. five to one under five pounds. 7-2 it weighs in between six pounds and 6.15. no one is betting how much weight she will gain. lori: doesn't matter what the baby looks like or how much weight she gains or loses it, that baby and that family will have a better life than all of us.
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doesn't matter. melissa: i don't know. dependsswhat your values are. maybe you value privacy. lori: come on! bringing it back to reality. melissa: you're right. coming up tonight on "money" we have chuck woolery of generation for america. he joins us to talk about how the aarp is lobbying for things that affect their bottom line that are not necessarily in the best interests of seniors. lori: dating game? melissa: was that it? i think so. no. i don't know. he is adorable. now he is out there lobbying for seniors to let them know --. lori: our crew is so young. they have no idea either. coming up bailout for detroit. why one local politicians says the white house owes it to them. tracy byrnes, ashley webster next on fox business. keep it here [ male announcer ] this is joe woods' first day of work. and his new boss told him twongs --
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>> this is the "love connection.". >> that's right. chuck woolery always so charming. we didn't know the name of the show because we were blinded how adorable he is. >> we were blinded by the rally. >> speaking of blind? >> i'm blind. had to bust out the glasses today. >> hot for teacher. ashley: thinking librarian, actually. >> definitely. tracy: librarian. what have you done in a library? ashley: i don't know. >> rendered him speechless. ashley: reminiscing actually. that is another story. >> we're here to get you in trouble. go ahead. ashley: one pair of glasses is all it took. tracy: i'm tracy byrnes. >> i'm ashley webster. day dreaming apparently. out of work at citigroup. 11,000 employees losing their jobs. fox business has learned
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they might not be the only ones. new details ahead. tracy: new your againsy on the fiscal cliff. speaker boehner is demanding a face-to-face meeting with president obama and the pentagon is preparing for the worst. >> it could take a week to clear out the backlog of ships. we're live at the port of los angeles straight ahead. tracy: time for stocks as we do every 15 minutes. nicole petallides on the floor of the new york stock exchange. it has been a wild ride. a lot of it has to do with apple, right? >> the big picture, markets are higher. apple has come under pressure. let's look at the major market averages. the dow is up triple digits, completely erasing losses over last couple days. posting a gain for the week. tech-heavy nasdaq pom cost it is moving to the because weighed down by apple. research and findings have found that apple faces
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intense competition in the tablet market for ipad and ipad mini and probably will lose market share to android and even microsoft systems. you're seeing apple down 28, almost 29 bucks. a terrible day if you're a shareholder hoping to get to the upside. a lot of folks hope it will get back to 700. not today. look at citigroup on the other hand has been a winner. financials have been doing so well, with financials leading the way in many cases and citigroup is no different. citigroup has its own headlines announcing layoffs of 4% of its workforce and streamline and get rid of excess programs and people. back to you. >> got to do it sometimes, nicole. see you in 15 minutes. ashley: the fiscal cliff is looking more and more like a ticking time bomb. with 28 days left to strike a deal and no sign of a compromise between democrats and republicans, rich edson looking at his watch counting down those days. he is at the white house.
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rich? >> ashley more of a sign of trouble as the administration finally acknowledge it is will have it do planning just in case of the beginning of these trillion dollars worth of automatic cuts begins in january. the pentagon saying it will start doing short-term planning. before this the pentagon was doing no planning for automatic cuts that begin. the pentagon says it hasn't communicated to defense contractors yet about what to expect. all the folks here say they're just hoping congress and the white house get on the page on some debt deal. what is it comes to the debt deal the president speaking to the business roundtable a couple hours ago saying tax rates must go up on families earning more than $250,000 a year. republicans say they will take $800 billion in more tax revenue from wealthier americans only through closing deductions. the president also earlier today fired a warning on the debt ceiling. >> if congress in any way suggests that they're going to tie negotiations to debt ceiling votes and take us to
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the brink of default once again, as part of a budget negotiation? which by the way we have never done in our history until we did it last year. i will not play that game. >> the reaction from republicans? this from a spokesperson for senate minority leader mitch mcconnell saying the president wants the ability to raise the debt ceiling whenever he wants for as much as he wants with no responsibility or spending cuts attached. this is an idea opposed by democrats and republicans alike. it is a power grab that has no support here. so while we're stuck on thinking about tax rates increases versus revenue, this fiscal cliff issue much larger. talks about the debt ceiling and what that means for next year. treasury saying that sometime early next year they will run out of those extraordinary measures and the u.s. will have to raise the debt ceiling or default. back to you. ashley: very good point. rich edson in d.c.
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thanks very much. tracy: our next guest says, forget taxes. washington needs to focus on cutting entitlement spending if we want to prevent a battle between old and young americans. diana further got roth, senior fellow at man hat taken institute and joins us now. diana, seems to me raising the retirement age is the simplest thing you could do yet we're not talking about that. >> well, we certainly should be because part of the deficit problem, a great part, is entitlements, social security and medicare, keep adding fiscal burdens as people's live expectancy increases and it's great that people are living longer but when social security was first thought of the life expectancy was only 67. now it is around 85. we need to raise retirement ages or somehow thinking about cutting back on benefits to keep the programs in balance. ashley: diana, the other side of this issue is coming
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down to taxes. two years ago the president said he didn't want to let taxes go up because gdp growth was so low. how can you make that argument two years later today. gdp still struggling to get any traction? >> he should be making that argument because gdp growth is now at 2%. it was at 2.5 when he made the argument in 2010. there was even more reason not to get tax rates higher, not to allow them to go higher. the only way we'll get out of this fiscal mess is through more economic growth. and if we raise tax rates that is going to stifle economic growth. we need to be keeping tax rates the same they are. let small businesses have incentives to work, invest and get more revenue through economic growth, not through higher tax rates. tracy: that is interesting that they're talking about it so furiously. we've seen in the past the wealthy in particularr they can hire the right people. they can tax plan accordingly. they don't raise the tax revenue they expect to raise.
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half of them quite frankly will just park their money overseas and we won't get the benefit. the burden will inevitably fall on the middle class. >> yeah, we've seen that again and again. we see that when taxes go down we frequently gotten more revenue than the congressional budget office has forecast, like in the middle of the last decade when capital-gaans tax rates went down. ashley: diana, look, the best way to generate revenue is through growth. there is no doubt about that. >> right. ashley: how could a deal that is thrown together at the last minute actually hurt growth in this country? >> well, it could hurt growth by first of all increasing top tax rates. if you're a small business and your taxes go from 35%, to 42% as they're forecast to do with the phaseout of exemptions and itemized deductions that will mean that you're not going to embark on certain projects that you might have done otherwise. tracy: right. >> about half of business income is taxed at that 35%
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rate. tracy: diana, i hope they were listening to you because you make sense. they're not making sense these days. diana roth. thank you. >> thanks very much for inviting me. ashley: that is not complicated. >> i'm not the sharpest tool in the shed and i'm getting it. ashley: coming up corruption, overload. we're not talking about d.c. maybe we are. which countries are seen as the most corrupt in the world. tracy: plus citigroup slashing thousands of jobs in one of the first acts of its new ceo. liz macdonald is all over the story today. she has new details next. first as we do every day at this time of day look how oil is trading. down slightly. $87.92 a barrel. we'll be right back
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tracy: citigroup slashing 11,000 jobs. liz macdonald is reporting more jobs cuts are ahead. emac here with her bottom line. this is really bad timing. >> you know, also, fitch, breaking news. fitch is coming out saying you know what? we'll reaffirm citi's credit rating. but i'll tell you something, these cuts are quote, modest. they represent 2% of --.
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ashley: 11,000 jobs is 2%. >> 2% of citigroup's annual expenses. insiders at citigroup telling fox business, yes, more job cuts could be coming. here is what they're saying. essentially top execs meaning michael o'neill chairman of the board at citi and michael corbett, took over from vikram pandit, are focused on cutting excess. i don't think anyone can come to the conclusion that -- the problem with citibank, citigroup, living too long with too many layers. they need to rationalize their operations and one of most top heavy, bureaucratic organizations out there. citigroup got the biggest bank bailout in the country. $476 million. insiders have been pushing the board to say break up the bank or do a massive overhaul because the supermarket banking structure just aren't working anymore and hasn't
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been for a while. ashley: do we know where the jobs are? are they around the world? >> that is good question. overseas and pakistan and uruguay and paraguay and turkey. we're shuttering operations because we're not etting money. we're closing branches here in the united states. there is not a lot of return on investment. will we see more job cuts coming down the road? the answers from insiders is yes, that you will likely see in coming months more layoffs happening at citigroup. again just 4% the workforce is what was announced today in terms of 11,000 job cuts at citigroup, guys. tracy: rotten timing because of the holidays. part of me wants to say, what took you so long? shouldn't we have been doing this all along? why do we just do it. >> corbett took over in october. he has full support of the board. michael o'neill has been known to be very aggressive wringing excess out of other banking operations. so they're possibly going,
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possibly full bore in 2013. they're taking the excess out of global consumer banking right now. watch it, everything, i think a lot is on the line over there at citi. ashley: fbn's charlie gasparino reporting that morgan stanley, and goldman also considering layoffs. so i guess 'tis the season. tracy: seriously. bah humbug. liz macdonald thank you. >> sure. ashley: a new report finds the most core are up country in the european union is, guess, take a guess. it is a greece. tracy: i was going to say italy. i really was. ashley: they're not far behind. annual corruption index says all the countries embroiled in financial crisis top the list in europe, spain, portugal, yes, operationsy, italy. it measures the perception of the corruption in the public sector. as the most corrupt nations in the world. here we go. afghanistan, north korea, and somalia top the list. on the other side of the spectrum, countries with least perceived corruption,
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denmark, fin left-hand and new zealand. where does the u.s. rank? 19th. tracy: nobody lives in those countries. ashley: what they do is very simple and very clean. tracy: very blond. ashley: very blond. definitely in denmark and finland, that's for sure. tracy: the dark skin, the dark eyes. we're all evil at heart. ashley: that is the quote of the day. thanks, tracy. i didn't say that. tracy: all right. quarter after. come on. right? think about it. as we do every 15 minutes we check on the markets, nicole petallides on the floor of the new york stock exchange. from the most corrupt country in europe, good to have you with us. >> that is me. evil. i'm a little devil at heart. let's take a look at a big deal here. freeport-mcmoran, this is a $9 billion deal. these type of things bring optimism to wall street that is one of the reasons why people are feeling good here today. the dow is up over 100 points. freeport-mcmoran is on the move.
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it is down about 15% here. they are the acquirer and mcmoran exploration and plains exploration are higher. look at mcmoran exploration, that is up 81%. that is a big move. this is about oil and energy. you can see of course, freeport-mcmoran, copper and gold. these are the names that are on the move with this big deal. this is the deal of the day, of the week. a big one. back to you. see you in 15 minutes.. ashley: least corrupt person i know, nicole petallides. let me get that out. tracy: exactly. me on the other hand --. ashley: that's right. tracy: coming up, the eight-day, $8 billion port strike is over. how long will it take american commerce to get back to normal? we'll have a live update from the port of los angeles. that's next. first as we head out to break let's see how the dollar is moving right now. can i help you?
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>> at 20 minutes past the hour, hello, everybody, i'm uma pemmaraju with your fox news minute. violence raging in egypt's capital city.
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witnesses telling reuters news agency, gasoline bombs are being thrown by rival demonstrators outside the presidential palace. president mohammed morsi is back at the palace after running from tens of thousands of protesters swarming outside yesterday. the demonstrators furious over his recent power grab and rush on the new constitution. north korea is days away from a rocket launch. the report claiming all three stages of the missile are reportedly in place. sources telling the news agency the launch would probably come sometime next week. israeli prime minister benjamin netanyahu is saying the jewish state remains committed to a negotiated settlement with the palestinians. this as israel plans to build settlement homes in the west bank worrying european allies. netanyahu's remarks come ahead of a sit-down with german chancellor angela merkel. that is quick look at the headlines making news at this hour. thank you, tracy. tracy: uma pemmaraju thank you very much.
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>> you're welcome. tracy: the country's largest port complex is up and running of a strike that lasted more than a week. adam housley is the at port of los angeles with the latest. what is going on, adam? >> tracy much different than what we saw here yesterday. in fact much different than we heard here yesterday. throughout the report you might hear train horns. we haven't heard them in last couple seconds. throughout the morning all you seem to here is train horns and ship horns. that means activity is back on here in los angeles. 44% of the all cargo moves through here. you see a couple of ships that will be loaded here shortly as the port is getting back into full gear. for eight days a strike from about 800 clerical workers which was honored by about 10,000 longshoremen shut down 90% of the this port. by many estimates it costs about $700 million a day as this port was shut down. the goods are now coming in because more than one billion dollars a day of goods move through here. that will be the first day that happens in eight days. the settlement came late
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last night. federal mediator showed up. was here less than two hours before the settlement was announced. pediator said they didn't do anything. both sides were talking and came to agreement with themselves. mediator was here with the final agreement. listen to what they say. >> 10,000 longshore workers in the ports of l.a. long beach will start moving cargo on these ships. >> yeah! [applause] >> we're going to get these services serviced. we'll get cargo moved throughout the supply chain in the country and get everybody those christmas presents they're looking for in those stores. >> the employers recognized the critical impact of this port to the nation and we're delighted that the terminals will be operating again. >> and a big deal once again because so much of these goods end up all across the u.s. cars come through here. computers come through here. the final contention over
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this 30-month disagreement striking in only eight days was whether or not when someone retires or new jobs were added if they were added here or go overseas. neither side is saying what the final decision is, what the final outcome is. they agreed on something and everybody is back to work. tracy. tracy: that is good news especially for the holidays. fox news's adam housley. thank you. >> yeah. ashley: there goes the horn. the s&p 500 gained as much as 117% since march 9th of 2009. that by the way the index's 7th best performing bull market ever according to s&p captial iq but as the bull run reaches its fourth year should investors be worried it is running out of steam? sandra smith looks where you should put your money in today's trade. >> hey, ashley. a good day to look at that with most of the markets trading higher with the exception of nasdaq. the s&p 500 back above 1400. look at this 117 point climb
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in this bull market we've been on since march tween. big question is, does that continue? well it is a really interesting observation from mary ann bartels of bank of america merrill lynch. she says the aging bull market will be four years old in march 2013. the average age of a bull run for the stock market is four years. so, that asks the question should we start to think about whether or not it is coming to an end? flip to the next full jeer. she gives couple reasons why this might continue. since world war ii, six of the last 11 bull markets lasted four or more years. five of 11 lasted five or more years. three lasted six or more years. some of them reached six years and guys as i get back out of this, look at s&p at 1413, she says look at 1435
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technically, if we get above there she said it could be off to the races. if we make it to the 4-year mark, we get another 20 6% claim. that is average we've seen for bull markets from the stock market once we reach that level. she is pretty optimistic this will continue. ashley: interesting stuff. tracy: we'll take that. ashley: 1435. tracy: glass half full. we love it. ashley: thanks, sandra. coming up outrage after a detroit official calls on the white house to bailout the struggling city. why? because it helped reelect president obama. gerri willis on that story next. you won't believe it. tracy: you can't. first look at some of today's winners and losers as we head out to break. western digital and citigroup winners on your s&p. but, we need to send a tribute to legendary jazz musician dave brubeck who died today, the day before his 92nd birthday. he will be sorely missed.
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ashley: it is just coming up to 30 minutes past the hour. let's get a check on the market. let's go to nicole petallides on the floor of the new york stock exchange. nicole: we are up 110 points on wall street. ben willis, what do you make of this action we are seeing today? >> santa claus rally. you could say it was china that got it started, but it was
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interrupted by president obama. nicole: why do you think december, traditionally, we know for a fact, december is the best performing month since the year 1950. >> it is the end of the year. windowdressing. money pouring in that may have missed the market already. it is also self-fulfilling prophecy. all of those add up to the same reason. it is also the retailers posting their seasonal sales, etc., etc. that would be most of the main drivers. nicole: there is optimism here on wall street. of course, everyone waiting on the fiscal cliff here in washington. have yourself a very merry christmas. they did a great job. tracy: we have to get that on
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air. ashley: great voice, also. thank you. see you in 15 minutes. tracy: president obama focusing on keeping the entire country from going over the fiscal cliff. one person directly asking the president for a bailout. gerri willis has the latest. gerri: she says they are owed. wayne county voted 75% for the president. listen to this. >> our people, overwhelmingly, supported the president. there ought to be a pro- flow. you exercise leadership on that. gerri: she went on to say that you go to washington and come back with the bacon. that is what you do, she says.
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[talking over each other] gerri: people have to watch this clip. tracy: it dumbfounded me that people in america think this way. ashley: she is basically saying they'll out the city. gerri: the city is in desperate financial trouble. worried they cannot make payroll this month. we will have the city council on the show tonight. in the back of my head, when i heard her say that, what a shocking statement this was, they already gave you a bailout. you had a bailout once. we filled out the auto companies, which is the detroit area. tracy: we voted for you because we want a bailout.
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somehow the vote equated to more money, more mmney, more money. gerri: i agree with you. speak that you will talk about this tonight at 6:00 p.m. and 9:00 p.m. gerri: yes. we have governor mary fallon on, as well. ashley: gerri, thank you. president morsy supporters. very aware of what is going on in egypt. corey, thank you for joining us. you have president morsi, the muslim brotherhood, and then on
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the other side you have the liberal parties, youth groups and large sectors of the public not happy with what is going on. who, ultimately when? >> i do not think it is yet clear. i think they are really worried about president morici sweeping it. that is more what the protests are about right now. ashley: what is the biggest danger, that this just dissolves into full-blown civil unrest? >> well, i think, even a bigger danger is the creeping of egyptian society. people are quite worried about it at this moment.
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it will actually prevent voters being informed on what is and isn't. ashley: expansion of powers for president morsi, kind of just voted himself into this position. is there anything that can be done about this? >> what the muslim brotherhood claims is that the last year and a half has been bad for society and bad for the economy. they need to get to this transition phase. get the constitution approved and get the country back to business. there are a lot of egyptian, so little social trust there right now. people are really fearful right now. ashley: this puts the u.s. in a bit of a difficult situation. there is a lot of money that comes to the united states to
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help the egyptian military. here we are, again, what does the u.s. do in this situation? it has to be a concern. >> absolutely. it is a concern and it should be a concern. part of the reason to be hopeful for egypt to make the decision is that it does have a vibrant civil society. the choice that president morsi has made in the last several months is making people very nervous that he will not respect the boundaries of government power. he gave himself more power than the last president ever had. that is what people are concerned about. ashley: thank you so much for joining us. we appreciate it. >> it has been a pleasure. tracy: scary stuff. ashley: it is. they are back to where they
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started. tracy: i feel like you were just there. loyal closing down $0.62 at $87.82 a barrel. that is a drop of two quarters of a percent. we will tell you how your new tax on radical devices is scaring away big spending venture capitalist. ashley: let's take a look at the ten and 30 year treasuries. the yield down to 1.58% and on the 30 year unchanged. we will be right back. ♪
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>> i am wrong lori rothman with your fox business brief. pushing the dow jones industrial
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average to triple territory. the port of los angeles and long beach are back to work today after a strike crippled one of the nations busiest ports. they are negotiating a deal between striking employees and poor management. elizabeth murdoch has died. elizabeth murdoch was also one of australia's most generous philanthropist donating money to more than 100 charities. she was 103 years old. she was 103 years old. that is the latest from the fox business network. giving you the power to prosper. ♪ plus, in-branch seminars at over 500 locations, where our dedicatesupport teams help you know more so your money can do more.
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[ rodger ] at scottrade, seven dollar ades are just the start. our teams have the information you want when you need it. it's anothereason more investors are saying... [ all ] i'm with scottrade. it's anothereason more investors are saying... music is a universal language. but when i was in an acciden.. i was worried the health care system spoke a language all its own with unitedhealthcare, i got help that fit my life. information on my phone. connection to doctors who get where i'm from. and tools to estimate what my care may cost. so i never missed a beat. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare. tracy: today's medical dollars,
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higher taxes seem to be scaring away venture capitalists. they must pay a new 2.3 excise tax on all sales. intended to raise $30 billion over the next decade to pay for health reform. a new report shows that venture capital funding in the medical device industry plunged this last quarter to "the lowest solid level since 2004". it is a 27% drop in deals versus the third quarter of 2012. the little guy will be the one to get slammed. it estimates that a total of 2300 jobs will be lost because of the tax. elizabeth macdonald has been all over the story. of course, you can read more about it on fox
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it is like a spider web. ashley: that is right. taxes go up, jobs are lost. the perfect gift for everyone. >> starbucks introduced a seven dollar cup of coffee. introducing a limited edition gift card that will sell for $450. the st card itself cost $50. it is made of solid stainless steal. if he comes prrloaded with $400 in caffeine fueled purchasing power. the clincher, only 5000 cards will be paid. you can get the new card only at the website one key question, what do you do
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when you use of the $400 on the card, frame it or refill it? starbucks market is down today. it has been kind of spiky. the top 1% of earners are not paying their fair share. one anthropologist telling you as a today that this is a card for the 1%. i do not know if i want to be seen with one of these. i would be more than happy to be seen with one of these cards. [ laughter ] tracy: i know a lot of folks that would go to that card pretty quickly.
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if the coffee laced with gold? dennis: it cost seven dollars because some people will want to buy it. tracy: i make a good cup of coffee. i am going to start selling line. [ laughter ] it is quarter till the hour. time for stocks now. apple is just getting killed today. not the only mover in the tech sector. nicole: let's take a look at some key names. apple is weighing on the nasdaq composite. the dow jones industrial is soaring 120 points. let's take a look at facebook. it is starting to be officially added to the nasdaq 100. this is a big deal. this is, in fact, the nasdaq 100
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are nonfinancial firms. it is not a surprise that it is being added. up for then .5%. then you take a look at pandora. lowering the full year numbers. the numbers came out after the bell yesterday. it is a complete disappointment. down 19% right now. ashley: a slight improvement. tracy: thank you. if you go and look at your 401(k) tonight, odds are you have been affected by this. ashley: coming up, the world most innovative companies. you may be surprised who is not on that list. tracy: first, let's take a look at all of today's winners and losers. seagate technology and research in motion are some of your winners today on the nasdaq.
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♪ want to try y to crack it? yeah, that's the way to do it! now we need a little bit more... [ male annouer ] at humana, we understand the value of quality time and personal attention. which is why we are proud to partner with health care professionals who understand the differee that quality time with our members can make... that's a very nice cake! ohh! [ giggles ] [ male announcer ] humana thanks the physicians, nurses, hpitals, pharmacists and oer health professionals who helped us achieve the highest average star rating among national medicare companies... and bececome the first and ony national medicare advantage company to achieve a 5-star rating for a medicare plan... your efforts result in the quality of care and service we're able to provide...
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which means better health outcomes... and more quality time to share with the ones who matter most. i love you, grandma! male announcer ] humana. ♪
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ashley: fewer than expected jobs added in the private sector and according to the latest adp employment numbers today. did superstore sandy put a damper on those numbers? >> the answer to that is yes. it is down from october.
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it is far fewer than the ones that would have been created according to adp. why, because of hurricane sandy. we lost 86,000 private jobs, private sector jobs. that is a big problem. adp that uses a different formula to come up with their figures. on friday but we get the number from the labor department about private sector payroll creation, it will be different than this number. it reflects the final revision for november will we get that three-month document. ashley: adam shapiro, thank you very much. tracy: the 100 most innovative companies in the world. david brown the president of thomson reuters ip solution.
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a lot of u.s. companies, a lot of south korean companies, one country surprisingly missing. >> that is correct. china, actually is missing from the list this year. realistically, part of the index that we created to identify the most prolific indicators in the world is based on a proprietary methodology that, in essence, also rewards global friday. if you have an innovation that has value, then it should be covered throughout the world. chinese innovators do not tend to file outside of the country. tracy: that is what it is. they are keeping it all to themselves. we have been talking about that apple, samsung patent war lately. it has to be the people, too, right? >> sure. from an innovation standpoint, there are lots of ways to innovate. we felt we could use intellectual property information and financial data
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to correlate who is successfully innovating and what result is coming from a. we are focused on the tangible income. tracy: a lot of american companies all made the list for the first time this year. how come? >> i think realistically there are a lot of factors. part of it has to do with economics. there was an increase in the united states and an increase in asia. there was a decrease in europe. i do not think when you read the paper every day that that should come as a surprise. with that said, there also is a shift slightly in the awardees and industries that they
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represent. the smart phone wars, you referred to, there is a lot of action going on in technology in the united states is predisposed in some ways to be recognized in that field because where they invest. tracy: to u.s. government agencies made the list as well. >> correct. you mentioned tax credit subsidies and etc. when you think about the time. that was used, the period of time was 2009 through 2011. there was a lot of government activity. government funding itself to drive innovation around environmentally friendly vehicles. there is obviously a lot of defense spending as well. tracy: a really cool study. thank you for taking the time and staying up with us and
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monday. >> no problem. thank you, tracy. ashley: big bad shining rightly. with all the excitement over duchess kates pregnancy, i know tracy is on the edge of her seat. a couple of djs decided to try their luck on getting some insider information on kates condition by impersonating the queen spirit hello, i am just asking about my grand on. her daughter kate. >> she is getting some fluids to rehydrate her. she is stable at the moment. >> okay. [ laughter ] ashley: that is the worst impersonation. the hospital admitted, guess what, they call the whole thing
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deplorable. the radio station apologizing for calling any issues. the host said that expected to be hauled off on after the hospital toward their terrible british accents. it was not good at all, but they got through. tracy: we have a dow that is up 115 points. we will hand this off to liz claman. she will take you through the last hour of trading. she is talking dividends and payouts. we are talking two years. doctor robert shuman explained the rationale behind the move. the last hour of trading is next. don't go anywhere. ♪ [ male annncer ] the markets keep moving.
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