tv After the Bell FOX Business January 19, 2015 4:00pm-5:01pm EST
overseas. one of them is the weakness overseas start either, creates an accident in the credit market that affects us or starts to be a drag on economic activity through the export sector. so on the margin it's not good news. cheryl: you know, david, what we saw, we had europe and asia trading today. obviously brent was something, it was contract to watch. fell again. seven-week losing streak was prone on wti last week. what does it mean for oil tomorrow? i know you like the oil companies but the contract looks like it is in trouble again. >> to myself, it is down today, probably because of china. it will be volatile, finding a bottom in here. it will settle out. i mean a lot of this has been driven originally from what the saudis want to do, get back control of the oil markets an their market share. along the way these economic blips and things in china around the world aren't going to help the price of oil. i don't think they will command the direction of oil.
so i think you have to do is leg into a lot of these oil equities and companies slowly. you might be cognizant. might get dividend cuts. history what this is, this happened before in '86. a big drop in oil happened in 2008. it happened numerous other times. we'll get through this. just very volatile. david: michael, stick with oil for a second, michael. are you buying in at this level? are you worried about catching a falling knife? >> well i think the oil stocks are fairly close to a bottom. i can't be certain it will bottom out in january, february, march, who knows but if you look long term, just a couple of numbers in the u.s. we have 800 cars per thousand people. in europe, 500 per thousand. china only 70% thousand. so demand for fuel oil, oil and gasoline around the world will be increasing. and, supply will drop temporarily while the prices are low. and the supply and demand will
come back in balance. >> maybe there is a buying opportunity, david, in all of that because i was looking at some of the companies you like and it is the oil services companies, transocean, weatherford, nabors. these companies had substantial losses in 2014, transocean and nabors in particular had double-digit losses in 2014. so you're buying them cheap, david? >> i don't know about the rigs but these are real hard assets. the oil services companies in general correlate really closely to the price of oil. they go to big discounts to book value and tangible assets. their revenues do drop but don't drop as severely in general as the price of oil does. so there is always an overshot. they are quick liver to adjust the supply of rigs as well as their contracts. they take hits up front. they get, they rebound. these are big companies with big assets. they will be okay now. not necessarily highly leveraged. it is just like i said, this
happened before and not necessarily an overreaction. it is accurate reaction. this is how you make money, big money in the long run, buying fact pitchings and things out of favor. david: jack mack teen, we saw last week, particularly when markets hit hard came down close to one as aye seen in my lifetime practically. >> right. david: will that continue? there has to abbott, we're talking about the bottom of oil, what about the bottom of interest rates? >> okay, you need to get use to it and your viewers need to get used to it. clearly treasurys are not trading on u.s. fundamentals. what is driving the treasury market? there is a ton of global capital coming from japan because the boj is buying all the japanese government bonds. it is crowding out the private sector. same thing is happening in europe. that capital is looking for a home. treasurys still look attractive on that metric so i think the market is not positioned for
yields to stay low. typically the markets do what punish the most investors. cheryl: it is interesting, jim awad, is talking about the global bond story and the global story in particular but you're becoming a little more u.s.-centric and little more u.s. focused these days. that is a shift for you, jim? >> yes. i think the emerging market story is not what it was five years ago and the united states is the shining light of the world in terms of economic activity. but that doesn't mean you want to invest only in companies where their activities are in the united states because i think it is going to be a risk-on, risk-off year with lots of volatility this year. when you go into risk-off periods small caps will not do well. i think in environment where there is both opportunity and risk, you want to stick with large cap multinationals with rock solid balance sheets, dividends, geographic diversity but your point, cheryl, is absolutely right, the center of gravity has shifted from
emerging markets to the united states. david: jack mcintyre, a lot of people worried in the market in general, see it as too risky thinking about corporate bonds, switching from some of their equities to corporate bond. are there any deals to be had in corporate bonds? >> i would actually just bypass the corporate sector. i would start, bypass a little bit with treasurys as well. i'm actually going to take the counter of the prior comment. i think there is a little more value in emd because our thesis is that the u.s. will have disinflation nary boom. china will do more stimulus. you will get growth in the world's largest economy and world's largest economy with the largest footprint. that is not priced into e. i'm not a bond guy. but i think em equities look attractive in 2015. cheryl: jack, i want to stick with you. you look at companies with opportunity, that is interesting, mexico, brazil, indonesia and south africa. you recommend bond funds that focus on that but not from a
corporate perspective? >> you're right. so i think there is compelling value in the sovereign state. i will not say for the viewers to buy brazilian bond. they need to start looking at bond portfolios that have positions in some of those. again the theme for 2015, fixed income, their free lunch is over. there will be more volatility. some of that capital buying treasurys right now i talked about earlier is going to breakaway and start to buy brazilian bond yielding 12%, indonesia bonds at 8%. that is where inflation is. but we'll export deflation or disinflation probably into the em world. that is not getting priced into the bond. that will be the theme of 2015. david: david, are you completely comfortable with the notion what is happening in europe, i still don't think they have come to a conclusion what they will do with the currency there or the euro will survive, what is happening in china which saw its equitying falling, that somehow they couldn't lead to our market
coming down as well? >> currency instability is probably going to be a problem at some point and i think, there are things going on in europe with the swiss franc and iceland is not part of the currency. they're possibly not going to sign up. you're trying to defend the danish croner. to keep it pegged. this is currency instability. withdrawinggy pushing 600, $800 billion for quantitative easing, they're telling you got some real issues. so i think if you have volatile currencies it is a dislocating factor for economics and companies all around the world. david: your answer to my question is yes, it could affect their equitying as well. >> absolutely. this is not a finite issue to say this will happen. overnight you could walk in with a problem like you did with china or the swiss franc and see a lot of bodies come to the surface quickly. these are highly leveraged market.
some capital is sometimes in the wrong place at the wrong time but i think this is a big issue. cheryl: michael i want to go back to you. you're in dallas and i think this could be an interesting economic trend for the new year, more consumption, in particular of trucks. we know texans love their trucks but you're saying there is a theme there we could learn from. what is it? >> since gasoline prices started dropping there have been higher sales of suvs and trucks. that is indication of when price of some good is low you tend to buy more of it. one thing i mention worldwide oil consumption in wide numbers, worldwide production is 90 million barrels a day. if you assume a 5% depletion factor, you have to find four 1/2 million barrels of oil a day to stay even. that is five bakken fields you have to find every year. and it is will get harder and harder to increase production and consumption will increase as china and india and indonesia
and other companies -- countries grow their gnp. oil supply and demand has to come in balance and the oil price has to go up. david: good stuff, guys. jim, ask you quickly, market up or down tomorrow at the opening? >> futures as we speak are down but anything can happen. that is a lifetime between now and the open. david: all right. i thought i would get a straight answer. i couldn't this time. jim awad, michael, david steinberg, jack mcintyre. good to he see you all. >> thanks. cheryl: the president is expected to call for new tax increases during his state of the union address in an effort to benefit middle-class americans. david: let's head back to washington, d.c. where peter barnes has new details. a lot of new spending, peter. >> that's right, david and cheryl. the president will propose 320 billion in new tax increases over 10 years. he wants to raise 210 billion by raising capital gains rate on
families making more than half a million dollars this year and larger inheritances subject to capital-gains tax for first time. would raise another 110 billion over decade with financial service fee on assets of banks with over 50 million. he will use proceeds to pay for expanded tax cuts for middle class as for a streamlined child care tax credit of $3,000 and pay for his plan, for two years of free community college for students, for example. senior administration officials says that the changes are designed to make sure that economic prosperity is shared by the middle class of the official said the capital gains tax increases, for example, would hit mainly the top one. in fact 80% of them would go to the top .1 of 1% officials said. republicans criticized announcement. >> people said if this is dead on arrival? this was dead last november 4th when american people rejected his agenda.
it is a waste of time for him to propose this tomorrow. >> there will be more proposals, including a plan to make it easier for workers to save for retirement such as mandating ira's through their employers. david and cheryl? cheryl: peter barnes, thank you very much. david: by the way inheritance tax of 50% increase in the inheritance tax, that is what the president will be announcing tomorrow. fox business will have full coverage of the president's state of the union with neil cavuto starting at 8:00 p.m. eastern time. cheryl: leave your homes to all your kids now. then you can rent from them. new plan. david: okay. all right, but still, don't need more taxes. cheryl: no. we want to hear from all of you, will the president get what he wants from the state of the union grab bag tomorrow? send us a message on facebook or tweet us @fbnatb we'll have your answers coming up. david: speaking of new taxes the president will announce a plan to take money from banking transactions this as the
industry lays off 50,000 people. what is the fallout in the timing? cheryl: plus the u.s. is loosening its travel restrictions with cuba and it could mean big business for the industry. how soon can we see companies offer travel to that country? we'll ask orbits ceo. orbitz. david: companies announcing layoffs as a because of oil prices but we have a way to stop the bleeding. we'll tell you how to do that with our panel straight ahead. mmm, a perfect 177-degrees. and that's why this road warrior rents from national. i can bypass the counter and go straight to my car. and i don't have to talk to any humans, unless i want to. and i don't. and national lets me choose any car in the aisle. control. it's so, what's the word?... sexy. go national. go like a pro.
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cheryl: u.s. lifted some travel bans on cuba that had been in place for half a century. u.s. travelers can visit without a special license, use credit and debit cards, spend unlimited amount of money, bring back 400 bucks in goods. david: that will bring you two havana cigars. we have orbitz ceo. good to see you, barney. talk about the tough part. i used to cover latin america. i wrote about cuba for the wj. it's a great country. the people are great and music are fantastic. the as i mentioned the cigars are best in the world. it's a sad country, because it's a slave state. the people are slaves to the government. they work for $3 a month. they can't leave.
they're shot or, their family is held as hostages if they try to leave. isn't there something sad about cuba hard to sell to tourists? >> you know i think you are absolutely right, that cuba is a fascinating country. i think millions of americans are going to be attracted to visit the country. i think, at orbitz we're passionate about opening up travel to americans to give them free to travel where they choose. we launched a petition back in 2009. had over 100,000 signatures request the president open up travel to cuba. we're excited to see moves we're seeing today. david: barney, you're not guesting to the heart of the matter which is that it is a pathetic country to, see a country where the people are slaves of the state. do you deal with that all at all, in, i mean, clearly you're going to have to get over that image problem. that is a big image problem the country has. >> i'm not sure i agree with
that characterization. david: why not. >> i think -- david: are people allowed to leave? no they are not. they are shot if they try to leave. do they get $5 a month for pay? that is slave wages. come on, we have to call it what it is. >> look, cuba is a country desperately needs economic development, of course. >> it has not accessed that because of embargo. i think the president obama is relaxation of the embargo an desire to move to a new normal with cuba is great opportunity for cuban people to achieve economic growth and with prosperity that can come from that and the travel angle i think is critical. at orbitz we believe travel and bringing together people from different countries can be a positive force for change. david: that i agree with. >> that can always change. david: that i agree with. cheryl: talk companies jumping up and down to get into cuba, particularly travel companies like orbitz. hotel chains, airline chains coming on to talk about
expansion plans for cuba. have you discussed with the executives and what offers are out there and how quickly do you get them to u.s. consumers we see the travel ban once it's all gone initiated and business starts to flow into the country? >> obviously u.s. companies have been banned from participating in the cuban travel market for years now but we have thousands of hotel operators we work with around the world and many of those, non-u.s. companies actually have hotels in cuba. similarly we work with hundreds of airlines, many which offer service to cuba. so we expect by end of this year to be able offer travel within the treasury department allowed travel group guidelines group within the end of the year through some of these providers. we also expect to see significant interest. cheryl: u.s. companies will behind the ball here, even marriott. i mean they're going to be, they have some catch-up to do then. >> certainly the case cuba has
had a thriving tourism industry for years now. it hasn't been, u.s. companies have not been able to participate. it is a great opportunity for them. but they certainly have catching up to do. david: barney, very quickly, what about the airlines? have any of the majors announced new schedules to cuba? >> well they certainly have announced the desire to open up new schedules, however airlines, the airline service is governed by bilateral relationship between the two countries. the state department will be in cuba just this week, wednesday, thursday, friday to have conversations on number of topics with high-level havana officials. we hope that will happen over time but immediately there will be opportunity to open up service through international carriers that already offer service to havana. cheryl: barney, thank you very much. by the way, your stock is 28% higher. your company is doing really well. you didn't trade today but will look for you tomorrow. david: congratulations, barney, thanks for coming in. we'll smoke a cigar together in
cuba some day. >> sounds great. david: with the president hitting banks but the timing appears to be way off as the sector tries to cope with 50,000 in layoffs. what could be the fallout from his plan to tax banking transactions. >> plus, wish that you could wear a rolex but you can't afford it? how about renting one instead. we'll talk to ceo of a company giving everyone the chance to tell time in style. david: also senator dianne feinstein's husband stands to profit big time, could be as much as a billion dollars from a government deal with the u.s. postal service. should there be a law against this kind of stuff? ♪ how can power consumption
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david: while most people's wages are stagnating president obama's state of the union will call for $68 billion for increases in money going to federal government. that is 7% increase in discretionary spending. how will we pay for this? let's bring if our panel. gary kaltbaum. steve moore, heritage foundation president and our own cheryl casone. this is coming on as the banking industry laid off 50,000 people. the president is going to announce apparently in order to afford the new spending he will tackle the financial industry more. >> washington can't seem to figure out whether they want the financial institutions to fail or succeed, david. remember it was only five years ago we bailed out banks when
they went bankrupt. if they're too successful then we have to tax them. this is a lousy idea. republicans, that $70 billion of additional spending, think it is important for people to realize, that is a abrogation of the deal that was made with the spending caps and sequester. so republicans should say hell no, you're not spending over the caps. that was centerpiece of that 2011 budget deal, helped bring the deficit down. david: gary, the president claims he is trying to help the middle class. he will give something called a paycheck bonus from $1,000 to $2,000 to every working american. so this is free money, a free check for americans. what's wrong with that? >> everything because you're taking it from one and giving it to the other and when you give handouts it does not change the trajectory of somebody's life. it has to be great jobs and higher wages. that is what does the trick and problem here is, again, it is
pure socialism, it is higher taxes. got to tell you something, higher taxes will not affect the wealthy but prevents the middle class from becoming wealthy because they're paying more into government and you know where that money goes. david: all right. cheryl: i have a idea. hire 10,000 people from jobs that were gone at jpmorgan last year? talk about cutting spending instead of taxing everyone even more, instead of banks. david: good question. while we've been focused on the keystone pipeline a bigger issue for jobs and energy sector could change the law banning oil exports. this is 40-year-old law. what happens if we get rid of the ban, cheryl? cheryl: here is the thing. we talk about the ban being taken off the hooks. you will see job creation, economic activity particularly in the southern region of this country because that is where they need it. the energy sector is cutting jobs. schlumberger cutting jobs. louisiana, texas, oklahoma, you
can see a boom in these states like they have never seen before. they need it as the drilling industry pulls back because of lower prices. david: gary, what would happen if we get rid of the ban? >> i don't see a downside. the big worry if you unleash all of this, maybe oil prices go back up and hurts consumer. i got to tell you we're already down 50%. if we little back up a little bit i don't think it is bad effect to anything. i think it's a great idea, i hope it jumps out and flourishes. david: steve, shuck schumer, the senator from the state of the new york says one of the disadvantages the oil coming out of the keystone pipeline, if that thing is ever built would go overseas says senator schummer? >> i would say evidence is very clear. there are five or six independent studies show when we export the stuff it will have a lower price in the united states at the gas pump because it is refined at lower prices and brought back.
here's the interesting thing. if you look at the last six years, david, you know this, almost all of the new jobs in the united states were the result of oil gas shale industry boom. we should be doing everything possible to allow this industry to continue to flourish. if we stay on the path of production we're on right now, within five years we are going to need to export it because we'll be producing more than we're consuming. what a great story, right? let's export the stuff. david: particularly now as the oil patch is hurting in job. >> exactly. david: coming up, a huge solar subsidy scam revealed by one of our guests. >> one company is revolutionizing the watch business, giving customers access to designer watches like these. at a fraction of the cost. coming up the startup's founder tells us how we can rent some of the industry's finest timepieces. david: this one really stuck in my craw. senator feinstein's husband, is he trading on her name to get a
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all without government subsidies and are those subsidies creating a slew of shady solar leasing firms that are scamming taxpayers and homeowners? bring back gary kaltbaum, steve moore and cheryl casone. steve, you blew this wide open with some terrific reporting. tell us about it. >> thank you. you know, david, you see this all over the country, people are installing solar paneling on the roofs and going green supposedly saving money on the utility bills and what we found in our investigation it turns out that the subsidies at the federal level and state level are so large, basically taxpayers are paying people to put these solar paneling on their roofs. and the problem is, that the costs are so large to taxpayers, and also by the way, rate-payers have to subsidize these solar paneling because the utilities essentially have to buy the high-priced energy that is produced from the solar. so the bottom line is, when you see somebody installing solar on their roof, you're as a
ratepayer and taxpayer paying for this to the tune of about $1,000. david: cheryl, there is term in economics, perverse incentives. that's what a lot of these subsidies are, right? cheryl: fox business first went to the big solar industry conference back in 2008. you know, kind of a minimal turnout. the next year after all the breaks were announced by president obama, wouldn't you know it, that l.a. convention center was packed full of companies looking for their handouts. they got it. steve, thank you for reporting that. david: great story. >> one quick thing about this is that this week they have this thing called shoutout for solar here in washington. it's a big lobbying convention for more of these subsidies, cheryl. they want more and more. just keep feeding the beast. david: geir on this topic, i know you have a lot to say about the next one, dianne feinstein, senator from california, her husband is being accused of trading on her name in order to get lucrative government
contracts to sell u.s. post office real estate. this deal could potentially lead to billion dollars in profits. gary, a lot of people are used this kind of thing. i am still outraged about it. how about you? >> look, it's greasy, grimy, sleazy and slimy. that is the four words i can only think of but here's the problem, david. it is the norm. three or four years ago, book came out, throw them all out. david: peter schweitzer's book. >> you got it. took talked about politicians and cronyism and grants and contracts. the bottom line is, there is no capitalism when it comes to government and politicians, it is pure cronyism. this is another case. i listened to feinstein saying there is no collusion, collusion from a to z in something like this. this is darn shame. exclusive contract. normally they spread it around to a few real estate firms. david: cheryl? cheryl: what is so disheartening, california real estate, in particular, like
new york has gone sky-high through the roof, he is benefiting from the real estate industry overall in fact that the buildings were not worth what even five years ago. they're absolutely should be an investigation. >> david, our governor -- david: isn't there a law against this kind of stuff, steve? >> yeah there is, there is anticorruption law. our governor in virginia went to jail, just had a jail term doing things at .1 of costly to taxpayers as this. this is what disgusts americans about the way our government works much and the senate should basically censor senator feinstein for being involved in this. david: gary, there is a lot of talk about keystone pipeline, tax december, stuff that could be put through congress. you don't hear a lot about these simple corruption stuff. i think steve is right. that is what really sticks in the craw of most americans, stuff considered normal business as usual that is not, people go to jail in the private sector. some people do in the public sector but not enough.
>> you know, david, there has been a big talk about the 1% versus 99% over the last few years. you know where the 1% are? in washington, d.c. they are enriching themselves with some deals between lobbyists and everything that goes around. unfortunately again, it is the norm. it is something that everybody is used to at this point in time. i'm hoping that this one gets so noisy that it stops. they make rules for themselves. david: they sure do. terrific panel, gang. thank you very much. gary kaltbaum, stephen moore and cheryl casone. steve we'll hear more from you at the end of the show. there is this, folks, a grain deal with iran that could lead the to ouster of a president. an argentinaian prosecutor was shot dead in buenos aires on sunday this is the day before he was to release a report alleging that president kirschner was covering up iranian involvement in a deadly terrorist attack in exchange for a huge oil for grain deal.
in an interview last wednesday, prosecutor nisman said i could end up dead because of this. on other side president kirschner's secretary of security quoted saying, everything indicates, this is quote, everything indicates it was a suicide. a comment that has been lampooned by the argentine press. stay tuned on this one. cheryl: fascinating story. one movie is smashing box office records and expected to gross 105 million over the holiday weekend that ends today. we'll tell you which movie coming up. david: how would you like to have one of these luxury designer watches on your own wrist? coming up next we'll talk to a startup that lets you wear the watch without having to spend tens of thousands of dollars to buy one. ♪
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david: while it was a terrific weekend for the seattle seahawks an the new england patriots the real mvp of the weekend might be clint es wood and bradley cooper whose latest film, "american sniper" is soaring past box office records. just incredible. film which features actor bradley cooper as a u.s. military sharpshooter, made a
whopping $90.2 million between friday and sunday. that is twice the previous record for january. it is forecasted to rake in a total of $105 million over the full holiday weekend. at this rate, "american sniper" already broken the january box office records and has become the second biggest r-rated debut of all time, behind only "the matrix: reloaded." it is a huge triumph for director eastwood, whose previous weekend record was $29.5 million for january torino. the it has been given six oscar nominations including best picture and actor for bradley cooper. next highest grossing movie was "the wedding ringer" which brought in 21 million and paddington by 19 million. terrific movie. cheryl: can't wait to see it on thursday. the sharing economy is booming and what better way to complete your look than renting a jet or a car and add a watch to that.
david: renting a watch. joining us is randy, a 11 james founder. the name i liked very clever. james bond had 11 watches that he could wear on assignment. that is where he got the name which i like. >> thanks. david: one thing though, a word of caution, are you concerned, there are a lot of smart watches that will be coming out in 2015 starting with apple. everybody is interested. is there any chance that could replace a luxury watch? >> fundamentally no. david: why not? >> i think it is very exciting. once you've worn, if you're a collector and passionate about luxury watches, you love intricacy. there is history and elegance. david: mechanical and electronic. >> as opposed to technology there i will was better wearable. some of these watches, the technology was perfected 100, 200 years ago. cheryl: what does it cost? do i have a pay a membership fee? do i just sign up and -- >> 11 james is annual membership club. make two simple choices, what type of watches you wear.
huddle around retail price points, 10, 20, $40,000. whether i wear a watch two or three months at a time. pricing goes 2 or $300 a month or -- cheryl: i do pay membership fee? >> that is all inclusive. cheryl: great. >> everybody, it is nature, human nature to treat a rental, not as well as something that you own. do you ever get watches returned in a way that requires a complete redo? you have to resand it or do something else with it because it has been treated poorly? >> two-fold answer, much like country club you want to take care after tee box, because the guy playing on hole before you to take care of tee box as well as we have robust rewards program, you earn bonus points when you return the watch on time and in good shape and refer friends and colleagues. that is conditioning -- david: do you ever get a watch with a ding on the backs or scratch on the face. >> it happens like it happens
wearing a beautiful watch. maintenance will happen. it is mechanical object. 100% our watches come back, 100% mechanically and cosmetically inspected and resized and fixed up. cheryl: what about women? women love watches as just as much as men do. >> we offer men's or unisection collection. of five to 10% of women are enjoying wearing luxury watches. we have women members and couples find this a fun thing to do together. cheryl: not offering it for women? >> ultimately if demand is there, we'll offer women's checkion. we have 30 plus brands with 100 different models and with women there is not as much variety. david: we have phillip patek. i found one on a playground and my father made me give it to the police. god knows, they probably stole it. this is made from platinum. i assume is the most expensive in the lot, am i wrong? >> this case that phillipe is
5908, that watch retails a little north of $50,000. david: 50,000. how much would it cost me if i have a membership? >> $1300 a month. david: how much? 1300 a month. cheryl: i think this has become so popular? like rent the runway, women can rent designer dresses and purses and things. why do you think this has become so popular last few years? >> when you have an asset for variety beats lack of variety, our membership allows you to enjoy three to six different watches a year for fraction buying one and myriad of benefits and concierge services. that is a lot of fun. the best day in a watch collector's life is day they get the new watch. you get that experience three or six times every year. david: bottom line, how is your business doing? how many members do you have? >> only a year old a so the numbers are relatively small. david: not profitable yet? >> we're shooting for growth over profitability this year. we're growing multiple hundred
percentage points this year and we're pretty excited. the future is pratty big for $40 billion industry we think there is a nice niche. david: randy best of luck to you. 11 james is the name of the company. cheryl: thank you, randy. david: overall retail sales were disappointing in september. they were worse for brick-and-mortar stores, down 8% between november and december. are malls and retail stores on their final breath? cheryl: new website billing itself as a craig's list for hackers. could you really use this service and get away with it? >> hi, everybody, i'm gerri willis. coming up on my show at the top of the hour, president obama's plan to raise taxes. how long before his tax the rich ideas stifle investment? just one of the big stories coming up on "the willis report" in just a few minutes. the lightest or nothing.
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courage. which is why usaa is honored to help our members with everything from investing for retirement to saving for college. our commitment to current and former military members and their families is without equal. start investing with as little as fifty dollars. david: places that jeff flock and i grew up in. he joins us from one of those. where exactly are you, jeff? >> i was just thinking that, david, exactly. i'm in place called mcchesney park, illinois. this is the old mcchesney park mall. look at all that, plenty of place to park your car. this mall is next to abandoned. if you look inside you don't see
people. but can you see, apparently had a problem with mice in here, there are all kinds of mousetraps. this is just the tip of the iceberg. look at pictures of a website called dead malls.com. there are malls like this, dave, chairman, all over the country, essentially outlived their usefulness. it is not easy to redevelop malls. part of the problem is, that the death of the anchor stores. one of the two biggest mall anchor stores that you can think of, jcpenney and sears. have there been any retailers over the past five years? if you invested with them last five years you lost 3/4 of your money. growth was encouraging postrecession but growth in mall sales is essentially ground to a halt. and not to say that there isn't money to be made in some malls. the more upper end malls and newer ones tend to do okay. general growth properties is a reit, mall reit that has done
particularly well over the course of the past year, but, it is these old malls, david, that you talk about back in, 60s and0's, were just coming to life. -- '70s. i remember first one came to town near mind. it was a place to be. now it's a place where nobody is. it is increasing, this, this downturn is really increasing for these kind of malls. david: kind of sad. thank you, jeff. appreciate it. >> in my hometown as well. >> sorry. david: see you later, jeff. a new website, called hackers list, lets you hire a hacker to do a job for you, say cracking someone's emails. as long as it is legal. earlier today stuart varney said if ethical hacker, if there is such a thing, if it could be traced back to the person hiring. take a look. >> you could go to the site, search, browse some of jobs being asked for, can you hack into my girlfriend's facebook page? can you hack into this email account? if that person take as job, that company acts as escrow, money is
exchanged, nobody knows who did what. that ip address will never come back to you. david: whoa. >> equal prize money is something women have been fighting for since the open era, since tennis became an open sport. that is a long time. reaching that milestone, it wasn't something i expect to fight for growing up. i wanted to win a major but sometimes you find yourself in the position where you can help. sometimes you have to step up and that's what i found and it really has been one of the best things that ever happened to me because it is much bigger than anything i could have dreamed off. >> such an amazing player. catch all of today's interviews on foxbusiness.com. david: time for the number one thing to watch. we're bringing back stephen moore, the heritage foundation's chief economist. what is one thing you will watch for tomorrow? >> i give a prediction, david, when the president take makes his state of the union speech and take a victory lap on the
budget. i reduced budget deficit by 2/3 in three years. it is only down by 2/3 because grew it up to one 1/2 trillion. i hate to spoil the story, but the cbo says that the deficit is headed right back up to a trillion dollars. david: hold on a second. hold on a second. i heard you say before, you and i talked about this, government is spending less than it used to be spending partly because of the sequester. >> that's right. david: other things that happened, right? >> right. so the sequester is really working and bringing down those discretionary spending items. the problem, david, we're not restraining spend something in those big entitlement programs. what the cbo tells us, as more and more baby boomers retire, i think something like 10,000 a day, those deficits will return. unless we get back to 4% growth, something you and i spent your lifetimeses trying to get at. >> steve, one of the things he will talk about tomorrow night and propose again, getting rid
of inheritance and property. we're launching a show called "strange inheritance" on fox business. >> that is the death tax, cheryl. >> you pay taxes your whole life. >> right. >> next then you know you pass to the heirs it is taxed again the this will hurt all americans. they will be alerted to this and not like it. >> you know who gets really hit bit tax, and i have done a lot of research, cheryl. basically family-owned businesses, sometimes first or second or third generation family-owned businesses where the parent, the founder keeps plowing money into that business to grow it. if you start taking 40 or 50% of that away at time of death you will kill family-owned businesses in america. that is the backbone of our economy. david: great stuff. steve moore. we have to leave it at that. great to see you. thank you very much. coming up our own liz claman took off this weekend to fly out to snowy davos, sits swanned for the world economic forum -- switzerland. 45 heads of states will all play
parts in this year's forum. wednesday liz will speak with mark wine merger of ernst & young and the head of btb bank management. >> that is it for us. coming up next, "the willis report." gerri: hello, everybody, i'm gerri willis and this is the "willis report," the show where consumers are our business. president obama's robin hood tax plan, take from the well-off and give to the everybody else. we'll break down the proposal. >> raising taxes on people that are successful is not going to make people struggling more successful. gerri: new report on the sorry state of higher education. nearly half of all students graduate without basic skills to hold down a job. food prices are going through the roof. they just went up by the biggest amount in three years. are we about to get some relief at the supermarket? also, it's the movie that is breaking box office records and has everybody talking. "american