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tv   MONEY With Melissa Francis  FOX Business  May 2, 2013 12:00am-1:01am EDT

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business is tually creating most of the new jobs. neil: achieved much more. >> economics. neil: all right, melissa: i'm melissa francis, and here is you made "money" today. investors with safe haven assets. big news. it could extend its bond buying program rather than winding down, but that economic data one the day with the yield on the u.s. 10-year treasury falling three basis points to its lowest level since last december. also making "money," a humanity investors with profits nearly doubling in the first quarter. less medical treatment than expected. stock was one of the few bright spots in the market with shares jumping more than four & on the news. good for shareholders. and maybe making some money. offered a contract, a whopping
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$75 a game. he is not intimidated. he says that people can learn a lot from me, even when they say it's not, it's always about "money." ♪ no end in sight seems to be the message from the fed. the money printing process will keep warring non. it could increase its bond buying program if needed, and it may have good reason. private sector hiring is slowing down. manufacturing posting its steepest decline in three years. is the fed will read command should you be? for inside with that, chief economist. far vice-president with the federal reserve bank of dallas. welcome. let me start with you.
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you know fed speak probably better than anyone. what do you think was the most significant part of the statement? >> they're worried about the economy slowing down, and i think they want to signal to investors hopefully that they should not be worried in the fed is prepared to step in and provide more stimulus and keep the economy propped up. melissa: they may be worried. they're saying we should not be worried. does that make you feel better? >> what they're saying, i think, is that they are worried about growth slowing and in particular because of a sequester. what they did not talk about with some of the fed presidents, the fact that inflation is falling. we have disinflation on our hands. the combination has them worried . melissa: they said inflation is somewhat below 2%. in the face of everything that they have done this should be sparking inflation, that is
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startling, as in the? >> it is. it is difficult to understand and explain, but it certainly reflects an underlying weakness in the economy that is still there. there just seems to be -- the economy just stumbles about this time every year. melissa: and me, what do you make of that? what is causing the disinflation? what does it mean to the average person? >> i certainly agree that what we have is still a lot of slack in the economy. the unemployment rate of over seven and a half percent means that there is no wage inflation and resolve the employment cost numbers earlier this week. nothing to worry about there. cpi is down. in particular the consumer spding numbers that cannot earlier this week show that the personal consumption expenditures, which is what the fed looks at, is down around 1%. that is very low. lot of it is this lack in the economy. still a lot of excess capacity.
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melissa: is there anything that the fed can be doing differently in order to make things better? is there nothing that could be doing? >> you kw, that is another way of interpreting what they said today. melissa: that is saying a lot. things are necessarily getting better. worse for a very specific reason >> that is the sequestered. in this environment i think the
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fed has done a lot of good. >> the economy has problems be on the sequestered. that is such a small drop in the bucket. it does create uncertainty, so i will agree in part. i am not as enthusiastic about what is going on in housing because some of that is due to the power supply side demonstrate supply-side's situation where because the foreclosure process is done that there just isn't a lot of housing out there and there will be catch up on construction. whether it is sustainable, i
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have questions. melissa: the bottom line is don't fight the fed. it will keep what they are doing. probably one take away is that this is good for stocks. thank you for joining us. we're out of time. melissa: as the fed prints more money, one state says no more. carolina -- arizona lawmakers passed a bill making gold and silver legal tender. the second state in the nation to do this. so how exactly this going to work? joining me now, to one peter barnes. peter, i mean, let's start with illegality. is it legal? how does it work? >> it is legal in utah, but it is illegal because it is voluntary. it requires you to take dolor silver believes the choice if they want to in utah. melissa: out as it were?
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>> in theory you want to take some of your gold coins in the auto retailer who is willing to accept them. ther are some folks in utah who actually hope that the state will begin to make coins, make : silver coins. right now it is largely symbolic to make a statement about washington and the fed. the supporters are concerned about the devaluation of the dollar. melissa: it is interesting because if you look at a silver coin, my kids got some on their grandmother. i was trying to figure out because a said $1. try to figure out the weight in silver. it's hard to make that -- to come up to the number on a given day because it is always changing. the practicality of this seems like it would be a challenge. is anything happening and the federal level? >> we have the tides that come
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in and out every day in washington. return us to the gold standard. on the first day of the current congress, congressman paul brown of georgia introduced legislation to do just that. melissa: thank you so much. so coming up, is the exit interview that won't happen anywhere else. frank bisignano, the mr. fix it for jamie dimon, the biggest name yet to leave jpmorgan after the london wale debacle. what sparked his exit? he joins us exclusively. next, facebook earnings are out. the profit is under way. we may have found the defendant finds face books impending doom. here is my intimately. more "money" coming up. this is america.
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♪ melissa: facebook conference call under way following first quarter earnings. it was a mixed picture for the company. regardless of what the earnings say we may have discovered the real sign that the company's
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days of coolness are very much numbered. from our we have rob under the and president at investors placed satcom. welcome. let me start with you. what did you think of the earnings report? >> what i conceive so far, as you pointed out, it's kind of kes. the bigger problem, the substantial number of users. they come back and said that the user makes is changing to mobile which is a good thing because mobile advertising has yet to take up. i'm not convinced that's a good thing. and to the figure out how to get to work. melissa: the business is turning to mobility. that is not a great business for them a matter how you slice it. >> thus telling thing to me. the bait trap -- breakdown of the monthly at users. if you look at the revenue only
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30% comes from mobile. if he pushing more people to mall your person into a lower margin products it's a smaller screen. melissa: it's certainly not a unique problem. is it possible that the numbers aren't so great in terms of profitability on that business because they're new and have not figure out how to do it right? is there a chance to have a strategy of the split will make it more profitable? >> there is always a chance. there is a chance that aliens will land on the plant tomorrow. melissa: you are new to the game >> yes. but the problem, as was pointed out, the fact that the screen is small and it's hard to deliver adrtising that is not disruptive and annoying.
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lots of real estate or a pc screen. put stuff on the sides. on the mobile phone you're limited in what you can do. try to put ads on it. not generating enough cash. neither move sounds all that great. need to figure out a way to get users back and a larger screen. didn't realize. the sure sign of their demise. melissa: there wasn ad for facebook. we will run for you on the side here. it was not funny, although it was trying hard to beat. you can see it right there. they showed him as head toward the -- leading a meeting in someone was using their facebook cap on the mobile phone, using cebook home, i guess it was come to try and a chain themselves instead of listening to mark. what do you think?
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is it effective? everyone who is cool, on like me to my was folding laundry and did not have my remote-control. most people don't watch ads. when a doing? >> so many ways to appeal this sign in. the facebook is marketing. you should experience the world through your mobile phone. i'll know if thas a good business strategy. i prefer to live my life. facebook home, makes you immerse yourself further. that is a bigger social problem. i agree, that really wasn't it. trying to hard. i don't think they understand that this is an aspiration of thing they're trying to do. the most telling thing to me about it is that if you look at play, the android version of the upstart, there are 1300 reviews. the average is two. so it is just not really
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catching on. they're might be as small really loyal facebook crazy user base you must have everything in a phone. like he said, it's partially because they are annoying, b the other annoyances a lot of people at privacy concerns. how likely is it that you will hand over the operating system of your mobile phone. melissa: looking to see. you know what you're doing. we're out of time. we appreciate it. so, coming up, another big departure from jpmorgan. the exclusive exit interview with frank bisignano ahead. up next, monster beverage versus san francisco. monster sues after the city wants to ban marketing for kids. all energy drink energy -- industry may just want to grab as an ex. we will explain. can you ever have to much "money"? i doubt it. ♪
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♪ melissa: so, san francisco wants to stop monster beverage from marketing its energy beverage to kids. now mostar is striking back, suing the city saying it is violating the company's constitutional rights. the case and final results could have huge implications for the multibillion-dollar energy drink industry. joining me with more, defense attorney and former federal prosecutor. always nice to have you on the show. what you think? is said to still have a leg to stand on? >> this seems to be all the rage . you can't have a so the more than 20 or 24 ounces. the arguments, 312 oz.
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this lawsuit, it's 96 pages long. i think that the city attorney from sentences go is during a little grandstanding. monster comes right out and says the ground a starbucks as 360 milligrams of caffeine. our drink has won 60, less than half. melissa: kids can still go in and buy starbucks. althou i never see a kid standing in line. the basis of their cases the are saying that monster markets directly to kids. they have this on one program where there letting the kids play gammer something. some of the characters are identifying themselves on line as six years old or 11 years old >> they come back in the lawsuit and come out and this is where it gets a little more legal. first of all, the fda regulates this. it is a concept called
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pre-emption. two types. one is specific pre-emption where a law says only the federal government can do this. field pre-emption meaning that a particular field is subject to federal law. let's say a state passed a law that says if you live in kentucky you don't have to file a u.s. federal income-tax return wrong. here thergument is the fda regulates soft drinks and caffeine. you cannot. not a bad aument. next they get into a bunch of free speech point and say, you can not impact our commercial speech, are compelled speech. you cannot compel us to say something, but to your point, ar they specifically targeting youth, i don't think they are. melissa: this is another city that is trying to be the nanny to everyone that is living there. recently see that. i was out there recently. they banned plastic bags.
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they have stopped places like cvs from selling cigarettes because they have a pharmacy there. is this a growing trend? are these just too crazy cities? >> what you are getting at is what we call big brother legislation. how far can the government go in telling you -- they cannot pass a law saying when you wake up you must take a vitamin. that's what you call big brother legislation. melissa: they're getting close. >> they are getting close when they say you cannot bring this type of drink. frankly, they make a good point which is that a child is not precluded, even though -- i never had a cup of coffee, and i'm a huge coffee drinker. and not ashamed to amend it on tv. melissa: you are a little jittery. >> the kids are not going to go into starbucks. i think muster will prevail. melissa: thank you for coming on.
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here is our "money" question of the day. should the city of san francisco be able to stop for marketing to children? would like to here from more of you. follow me on twitter. i promise it's fun. all right. up next, exclusive interview with jpmorgan mr. fix it, frank bisignano, the top lieutenant of jamie dimon and now he is the ninth person to leave the operating committee since our last year. what is going on? piles of "money" straight ahead.
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melissa: who is is says mr. fix said the man jaime dimon when to when he had a big problem whether turning around the rtga business in integrating fare restaurants aftethe london debacle he got tough job stand now he is tackling a brand new project as a ceo fifth of all worlds largest payment processing company first-aid tent off to limit the first official exit interview frank, thank you for coming john. we started to list the things that you did as the clutch player at jpmorgan but the show is not long enough. when integrated bear stearns
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you got them to run the copper wire under the street to connect the bank and in a time of crisis you were putting things together. you turned around the mortgage business. that was in a disaster disaster, jamie calls, you have a problem and you fix it dealing with regulators after the london wailes debacle. this is a blow to jamie morgan -- jpmorgan? >> first of all, it was solid team effort. a full firm ever and i felt fortunate to be a part of those. it is a well-managed company with a lot of talent and it will be in great shape i am looking forward to running first data. melissa: jaime dimon strength is his team loves him and somebody that his team would die for people left and went to ba one
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for less money because they believed in him and that was a blow to sandy while at the time now you are the ninth executive to leave the operating committee since early last year. have things changed? >> i don't think so. jaime is the fabulous leader of mentor and friend and has been great to me when he hired me and how i made this decision in the and so talk about loyalties still does exist 100 percent. melissa: what device would you give him right now? >> he is a great ceo. i have to work on the device for people at first data. melissa: let's talk about that. first data is the new fix it project. it is a great company generating profit but it is overwhmed by a pate and on the debt. kkr bought it and the
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natural way that happens they pile a lot of debt and have you deal with that? >> click add it has a fabulous company for years old was technology and innovation accompanied it is still innovating has great customers for calls that i received in the first two days to encourage me even more than i had before about the future if you look at the talent in the company they have done a good job. the interim ceo has been fabulous so i think the opportunity is very large and the customer base is fabulous and the employee base is fabulous. melissa: then why haven't been unable to do that? >> there was the consumer crisis in this business is affected by that. it is the matter was working customers closely this
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company does throw off profits and cash it is a strong company. melissa: that depends on consumer spending with its transaction consumers are facing a lot of headwinds whether higher taxes as a result of taking away the payroll tax holiday or higher unemployment how does that impact the business? they cannot do as many or as big transactions. it does look strong but we are thinking of international expansion we are in 35 countries there is fabulous relationships and the ability to expand and the ability to do business without a strategic partners and the u.s. is big it is about organic growth. melissa: what is the first order of business? >> to go back to the office tomorrow. i have been there two days and amanda and the management team has been
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fabulous. the interim ceo and myself have spent a few days together to talk about how we run the company for the future and i feel good about it. melissa: can you grow larger to deal with said that? >> we will have positive operating leverage and will manage the expense number and grow the top line and the bottom line. melissa: some of the things that you have seen for example, we have had to people on the show who have talked about the fact they don't think the housing recovery is real. you were up to your armpits in the mortgage business looking specifically where there was a runoff and where there was replacement what is your opinion on the mortgage situation? >> i have not been there it air over three months. melissa: that is not very
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long. >> it is in the mortgage business but everything we looked at was very strong and housing is very strong and we see it in the data. not knowing the conversations you previously had i am certain there is a housing recovery in a lot of region. >> is passed to do with the fact what looks like a lot of demand is the result of supply disruption that would happen with foreclosures were slowed down and it took supply of the market that is the phenomenon. does that make sense? >> look at it two ways there was the distressed sale market than regular inventory. regular sales were performing well. yes there was a distressed sale and a lot of buyers but looking at a regular turnover you can see the
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price is increasing. melissa: is it where it was hit hardest? would your impressions? >> we talked about this recently we have a national recovery for says local markets and we saw them come back strong. we have a national recovery. melissa: what about jpmorgan ? you have not looked at any of their books? please dropout is the consumer feeling? the fed talking about slack in the economy they see inflation at less than 2%. it looks like it is stalling is that from a consumer perspective? >> consumers in the store still a strong if you look at consumer debt that is very strong and the
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consumers are the best shape they have been i will say that again today. melissa: is go back to jaime dimon before i let you go what is the best lesson you learn from him? you work from him at city then came with him to jpmorgan you have spent a long time as his partner. what is the best lesson? >> he taught me a lot of lessons and was a lot of fun to work with a friend and mentor and always good to me and he taught me how to think about things in multiple dimensions not once but many times up fabulous baker and a great leader in that was very fortunate to look -- work for him the time that i did. melissa: they do wish you well because it is to be exciting something of a drone that you are running. congratulations thank you for coming. >> thank you for having me. melissa: there is money and power and next we have both
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sparking a storm of praise and controversy over taking over yacht to has she found a magic makes? our panel of experts handout the report cards next. at the end of the day it is all about money. we went out and asked people a simple question: how old is the oldest person youe known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪
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♪ melissa: money and power celebrated and unafraid. yacht whose ceo meristem meyer is the epitome trying to put them on the road to recovery does not mind ruffling a few feathers in has pushed up these executives and banished telecommuting and doubling paternity live -- sleeved but despite that high pay the numbers are not there yet dan here to grade heard so far from the most regional and fox news contributors to the rodzinski. thank you for joining us. hadley when we start with you because she does seem
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unafraid. >> this reminds me of margaret thatcher that being powerful is like being a lady. it is the ada you n't have to tell people when you are powerful. obviously bristol-myers is very powerful making good decisions and as a partner she is doing and whether you agree with her decision or not she is in charge issue will be held accountable for their success or their failure. >> she is under a microscope without question i don't know if there is letters reid ever read on the heels of saying you cannot let people telecommute she has something your own office for her own child. is she playing with fire? >> with telecommuting i tried it and it worked for about five seconds. >> it makes certain sense because when to have the conference call with the baby crying in your year you
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have to get to work but if i was working so not be able to bring our kids. i think what she should do is build of a day care or subsidize that and allow people to bring their kids and drop them off if that does not already exist and dropped her own daughter off as well. that is more fair but good for her to go in there to clean up and dropping the hammer. i am all for a but if she was a guy nobody would make a big deal. melissa: if the guy put the cursor next to the office. >> the part about heard dropping the hammer on telecommuting. melissa: the financial bottom line for shareholders with a company having a lot of challenges the stock is up 65% since she came on board in 2012. has the bottom line improved that much? >> we have to keep in mind
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yah hoo was the complete basket case when she came in in the previous ceo did not even last one month he made itself on the re they needesome stability it was a sinking ship she has got off to a strong start and steadied the ship and you have to give her credit for that but it has been in decline for a long time. many, many years of the turnaround will not happen in a few quarters it will take multiple years to turn this company around and management acknowledges that. yes the numbers are not there yet but she is putting in place a foundation. melissa: issue? is she's selling the sees to turn this company around? in the long run that will be the only thing that really matters. >> yes. she has done a number of things to create a stronger foundation for e officer.
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-- yacht do people have been leaving there for years the brain drain was incredible it was seen as a place where yahoo! gets more resonate the attrition rate is going down, they made some key hires so she is putting in place the talent base now she has to build great product which they are starting to do and get revenue growth melissa: may talk about "power and money" in the intersection of both and usually won perhaps the other but she is embracing and celebrating both she is under 40, a beautiful beautiful, brilliant she is fantastic. the stock price has risen but at the same time she does go out there and
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ruffles the others and not is -- and isn't afraid is this working for her? >> i like it. i like her style she is sassy a does what she once. someone has to take charge them glad she shows that confidence these worksheets -- work place decisions she is not doing it to please people or give guess she is doing it because of strategic business reasons said she wants to attract the resonate and the talent pool and one way she can do that especially talented fema workers is by offering extended maternity leave. melissa: when you have somebody like this there is a backlash over time people are waiting for her to fail or stumble. >> issue setting herself up?
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>> i don't think so at the end of the day she will have to live with her shareholders and the bottom line is she goes out doing what she has to do the backlash will come from people who are jealous she is young, a beautiful, brilliant but good for her for going out there and owning it to be great at what she is doing and i hope marissa mayer does well under her for somebody you can turn around a sinking ship. melissa: and will not be easy. thank you for joining us. this is what i call a filibuster think congress is a dysfunctional mess and other countries parliament has it. look at that what is behind this epic brawl? you cannot have too much money.
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melissa: it is time with some fun with drum change -- bear change thank you for coming.
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check out the fight that broke out in venezuela parliame the country's opposition party refusing to recognize the results of the presidential election members were protesting a ban that strip them of most legislative powers then pro-government members started to throw punches it is crazy. wouldn't that be fabulous i mean wouldn't that be terrible? [laughter] >> but what is the leadership and statesmlike behavior but apparently if you're not happy to get out. melissa: or if you feel everybody cheated. >> a chavez looks first through the pledges they want to show -- shut up congress but i will get letters but wouldn't you think president obama would like to neutralize congress? remember this so-called dialogue with paul reiser and over obamacare?
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remember, i wind. i get what i want. melissa: let's get him and i do note barney frank. [laughter] and ebert said the elementary school has adopted the all budgetary and menu like beans and tofu for kids. i have a secure old a.m. there is no way he would eat the tofu wraps. >> i remember the mystery meat. melissa: maybe it was tofu. >> you have to be careful because if you don't get enough protein you get sick who would stress the school lunch program that has the mystery meat to serve the right kind of vegetarian stuff? >> the principal calls it a healthy food trail blazing since when is that trail blazing? melissa: the menu looks delicious roasted potatoes.
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>> no chicken figures? >> my kids would happily starve to death rather than eat that stuff then they would be vicious to their teache. [laughter] >> what we love as adults. melissa:pace that? melissa: here is an interesting way to get a raise coming get a tattoo offering at n.m. 15 percent pay raise of the company's logo. it pays for the tattoo and has no restriction on the size or the location. is the rays were set? >> you have any tattoos? >> not that i will share but i would not make the 80 year commitment to a company's logo and typically they are about creativity and freedom of expression so since when
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did the logo fall into that? >> it is like gladiators. melissa: how you know, that i don't? [laughter] it is possible and companies change the logo all the time then they changed although my mother-in-law has their own real-estate firm i can see she would get the brokers to have the collection. >> or offer lifetime employment. >> do you have a fox had to? >> we are not a tattoo family. >> icould be the new thing let's start that. having a wedding is already expensive but the cost of attending is up to 59% in the last year. how was that possible? test plan to spend $539 for each wedding but if you are a member of the bridal party be prepared to spend even
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more. most of the guest goes towards travel expenses. are you going to any weddings? >> i am spending thousands. you have to wonder when somebody plans a wedding in a far away location it's like they don't like you to come and i think there is anything makes we're coming we only wanted to people so we'll make it as hard as possible but send me a gift if you can come. >> she is having her wedding in july in westchester only a few miles away. >> that the american express bill i sought this charge for about $400 bid was part of her wedding or that is the excuse. >> i will not buy an extra suit. >> did she buy a beautiful and bag?
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>> i am sure that will be brought up several times. melissa: book that was just the beginning. >> i am sure. [laughter] melissa: the world's smallest move the i am manipulated the adams to make of movie about a boy and his atom it is only visible if use a microscope to it develops the technique to find more efficient storage technologies david is impressed. i am bored. >> despite the problems with the economy even when it is slow in not turning in the late '70s that is when appell came to fruition and the high-tech companies came to fruition but you can still have great discoveries >> that is a silly use but this could be used with all kinds of different things for medical research. >> what i think of disruptive technology these
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do not come to mind. melissa: that is all the money we have today we will see you back >> the following is a paid advertisement from star vista entertainment and time life. >> ♪ you're the meaning in my life ♪ ♪ you're the inspiration >> ♪ that's how much i feel >> ♪ feel for you, baby >> ♪ how much i feel >> ♪ well, i need your touch >> intimate moments, cherished memories, unforgettable romances, the language of love can be spoken in many ways. and nothing ignites your emotions like the power of love. >> ♪ i'll always love you ♪ for the rest of my days >> ♪ a one in a million


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