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tv   Varney Company  FOX Business  January 21, 2015 11:00am-1:01pm EST

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bell. it is time for "varney & company." the patriots cheat? just one of the stories today. good morning everyone. defiant double down. tax the rich more. no mention of al qaeda either. gas down again. the best shot in the arm for us all. it is not the president doing either. it is adding millions of new paying customers. yes, the picture is one with deflated balls. is that cheating? i will ask greg norman. warranty and company is about to begin. ♪
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i say it is a big winner. why is that? >> netflix made a lot of money. of $61. 57 million subscribers worldwide. mary kissel is with me. house of cards. the premiere of the new season next month. >> i think netflix has two trends going for them. content is king. consumers are turning to wireless. it is ironic, if you think about it. they are concerned with the six companies and how they manage companies.
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stuart: netflix, at any one time, sucks up about one third of all bandwidth. >> that is correct. that is wide netflix wants the government to step in and tell everyone else how to charge. stuart: if we do not like government regulation, we should not support netflix. >> correct. >> we have a rally for the dow jones industrial. ibm made a forecast. ibm is down. ibm is a dow stock. the dow would be at 100 points. look at goals, please. we've crossed $1300 an ounce.
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loyola, have we hit a bottom? we have been around 47 for a long time. national average for a gallon of gas keeps on falling. i like this one. twenty-six states in the $1 club. what is that little square. >> i am glad that somebody can identified. >> it is a great state. >> taking a lot of time here.
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the cheapest gas in the lands. where is it? >> san antinomy of, texas. >> i call it san antonio. i am from florida. what do i know? stuart: check out this video. $1.63 a gallon for regular. not quite the lowest in the land. chris is with us. all right wrists. >> i want to disassociate myself with any remarks about south dakota. stuart: cheap gas. we think it is the best stimulus that we've got.
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>> the politician will take credit for the sun coming up in the morning, if you give them the chance. that is their job. they have always been the same. they are unchanging. when the economy was very fat, he said his policies were necessary to revise the economy. his policies are now affordable. the same policies that he offered now says will allow us to abort. stuart: a long line of veto threats as well. that puts him in the position of becoming the abstraction test now. >> i think that he cares very little.
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i think he is entirely focused on his legacy. i think he is now focused on remaking the democratic party. >> that speech last night would surely drive the democrats to the left. that was a full left-wing speech last night. how many senate democrats will go with him? >> he said it was out of iran's talking points. that is a strong indication that what we are headed for is the first breach. the president was flying high last night. at some point, there will be an issue in which this party demonstrates this affection towards him.
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stuart: i want you to listen to what joni ernst said last night. >> the new republican congress you just select it. how we plan to make washington focused on your concerns again. we heard the message you sent in november loud and clear. now we are getting to work to change the direction which washington has been taking our country. stuart: all right. how do you think she did? >> she did just fine. i would rather rather a money differ. she did a great job in a difficult circumstance. she did just fine.
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i thought that was a pretty good move. people are frustrated with what is going on in washington. >> the strong fence in america right now is frustration set up. whether it is wall street or washington. joni ernst was definitely talking to that. stuart: thank you for joining us again. mary kissel. look at that. i think that was released. >> right. >> are we so pcs that we have to talk about somebody's shoes?
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joni ernst response was smart. it was not a response to the state of the union. it is not worthy of that. otherwise, it was just a provocative little speech. joni ernst came out and said here are our ideas. here is what we have in the next
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hour. the head of the financial services committee. what does he think about this new tax on wall street and two is going to take it? the energy bill. all coming up in the next hour. here is stuart daily islamic terror of date. rebels seize the presidential capital. having no control over the country. remember, please, in september president obama said yemen was a good example.
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i will bring you a horrific scene from israel. a palestinian man stabbing 12 people on a bus in tel aviv. that video -- quick check the big boards. we are up. not i much. annie's negative that says bouncing back to $4 a gallon. really? i will challenge that. a source inside the nfl investigation says that he
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treats did in fact use inflated footballs. do you think that that is cheating? tell us on facebook and twitter please. ♪
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♪ edward jones. with nearly 7 million investors oh hey, neill, how are you? you'd expect us to have a highly skilled call center. kevin, neill holley's on line one. ok, great. and we do. it's how edward jones makes sense of investing. the dow is up 57. i am sure they like it. investors like it, too. look at the drillers. all moving higher today.
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the drillers, the driller stocks going up. time is money. first off the top-selling doll 2014, not disney's frozen then says. it is teenage mutant ninja turtles. who would have thought. next, social media. make donald continuing its pitch to millennial's. releasing a new video. we will play the video. they are indeed the best fast food fries. national average for a gallon of gas. 204. , on and from houston.
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a bone to pick with you. >> that is fine. you said earlier this week that the price of gas could double. it might have been says you. how will that happen? >> two things are happening stuart that are not being reported heavily. that means we have 5 million new barrels of oil this year just to stay even with last year's production. they are shutting down costs. over 400 rates in the u.s. have
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shut down 150 in the last few weeks. 16,000 layoffs this corridor. when the industry starts shutting down capital spending, production growth stops. it will not take long to chew up that surplus. >> i would say it is better than 50%. it will not hit $4 a gallon this year. $100 on it as i am right.
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we are on videotape. $100. >> i hope you do take my money. >> okay. [laughter] all right. it is possible that they want to push this down below $40 a barrel. >> a have already done it. they have already hit the bottom. >> do we have a surplus?
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millions and millions of barrels of oil just sitting there. that is a surplus. >> you know, stuart, 7 billion barrels of oil every day into this country. we still are independent. until we switch to more natural gas as a transportation fuel, we will continue to be in this corner of oil. stuart: when the price of oil starts to rise again somebody will stop blaming speculators. you agree with you on that. >> i called them traitors. stuart: time is of. thank you very much for joining us. you owe me $100.
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you hold your phone of if you have the app. shazam tells you what the song is and how to buy it. that after his now $1 billion. the ceo is next. ♪ push your enterprise and you can move the world. ♪ ♪ but to get from the old way to the new you'll need the right it infrastructure. from a partner who knows how to make your enterprise more agile, borderless and secure. hp helps business move on all the possibilities of today.
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and stay ready for everything that is still to come.
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stuart: remember when charles payne was on the show. it is off today. up she goes. thirty-two. talking about shazam. i have been watching too much old television. it helps you identify use it around you. hold your phone of. it has the app on it. that means the company itself, the app is worth $1 billion. look who is here. rich riley. the ceo of shazam.
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would you sell your stake for $1 billion you said yes. >> i think i would. let me keep running. >> it is amazing. you have to explain this to me. >> it is much more than that. they will give up almost everything in their life before they give up their phones. we have over 100 billion monthly active users. >> they hold the phone up. they recognize the music. then, they can write it.
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you get a piece of that. >> that's right. we also will let you stream and. we have integrated other streaming partners. then we moved beyond music. stuart: hold on a second. i am in the movie theater. i have my little phone with the app. >> entering a lifetime of free movie tickets. learning about advertising. we are also doing retail environments. you can shazam in a shop to get more content. we are doing radio stations. we recently announced moving
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into visual shazam. stuart: i think i am beginning to understand why this man is worth a billion dollars. 250 employees and they have a billion dollars of wealth. that is extraordinary. >> and milestone for the company, for sure. some big believer in and ownership culture. our team is really what takes shazam have so much room for success. stuart: not going there. 10% would be $100 million. he is blushing.
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congratulations. it is an extraordinary app. your potential is simply amazing. we think it will make a great public company someday. a great brand. it is a massive, massive opportunity. >> there is no rush to go public. they all see the massive potential of shazam. >> it sounds like you would have gone public if this company were created 15 years ago and you did not have to go through all the red tape.
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>> any time a company decides the right time to go public, we will continue to do that. >> right now, we are very happy with being private. stuart, and see us again. all right. then we have young men. a hotbed for radical islam and terror. remember, yemen is a main target for our drone strikes. what does judge andrew napolitano think about drone
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strikes? >> from a school in pakistan to the streets in paris. we will continue to hunt down terror. taking out terrorist threats to us and our allies. [applause]
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when i say netflix is a winner today i really really mean it. put netflix up please. please. look at that. $62 higher. better profits and a whole bunch of new subscribers came in 4.5 million new subscribers but even that is still not good enough for this guy, sean delany -- shah gilani. you said to our viewers don't buy it so all the viewers missed a $62 in one day gain. >> they have plenty of opportunity to buy it lower. if you own this stock in october, on the fifteenth of october you thought this is a great stock. and open that down 25%. i don't like to wake up and find a quarter of my investments gone. stuart: the volatility could you off? >> the fact that netflix has too
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much competition, don't know if it is a tech company or a distribution company, in all those areas it has plenty of competition. doesn't produce enough cash or dividends for that kind of volatility. stuart: let me try you on microsoft, a stock which i proudly coin. they are trying to turn things around. they have windows 10 there was announcement about windows 10 fixing windows 8. don't tell me you don't like microsoft. >> i like microsoft for a long time and i will for a long time. i had high hopes for microsoft. it will hit $60 in 2015. it has really no ceiling on it. big as it is, it and live and itself. is a great company once again. windows is moving away from it. the cloud they made 160% gain in cloud business last year. is on fire. don: you would rather own
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microsoft and ibm? >> equivalent dividend yield has much more upside. ibm is black and blue. there is no reason to own it. stuart: you build yourself out with your comments on microsoft. come back any time you like. i want to get to yemen. radical islam taking control of the country. this is a big story. they have overrun the presidential palace. the country's collapsing. remember yemen is one country where president obama has been very aggressive with drone strikes. are they effective? should we do some more of them since the country's collapsing? judge andrew napolitano is here. we are probably going to disagree. i say drone them and you say don't. judge napolitano: who will you drone? our enemies? there is a group of people in yemen al qaeda, that was not there before we invaded iraq that is there now that is trying to take over the government with
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some success. has that government the tree with the united states? no. has the government access to military assistance? no. has the government declared war on the people trying to take of yemen? no. they weren't there at the time of the authorization to use military force in 2011. should we do this on the president and swim? or on stuart varney's win? what would be the legal basis for this in your world? that it looks bad? stuart: i am not a constitutional scholar. judge napolitano: is that we know. you are a scholar of interpreting economic trends and do so brilliantly. don: i think the president should defend the interests of the united states of america and when we are attacked by a terrorist group not wearing uniforms, not having -- have not declared war on the my don't care. kill them. judge napolitano: we attacked, when we are attacked you mean the united states or western values? are we attacked when these
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people try to take over human? you were quite correct when you said the president has used drones in yemen. he has used them with marvelous inefficiency because the more uses them the more the local populace is against the united states and against u.s. interests. stuart: you are sure of this? judge napolitano: is a reasonable conclusion. stuart: about to take over the capital. they think al qaeda is about -- a bunch of rotten people. judge napolitano: they do. isis didn't exist before we were there in the middle east and al qaeda wasn't in yemen. the problem with the drones is the killing of innocents. barack obama with the use of his drones has killed more innocents then died because of the planes on 911. that is a huge number of people and it radicalizes the population against us. if barack obama wants to wipe out some entity get congress to declare war on the menus the
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military efficiently. stuart: how can you declare war and organization that is not a state. a standing army had to do that. to make an attempt to do it rather than fight this pinprick war on your own the doesn't work. stuart: we need new rules for finding a new war against the new enemy. judge napolitano: change that constitution again. stuart: reinterpreting it in a different way from the way you do. judge napolitano: at the present time only congress can declare war but this president as you know has disdain for congress, declared all sorts of wars on his own. stuart: we can agree on that one. go no further. judge napolitano: always a pleasure. stuart: is it really? how long have we been doing this together? judge napolitano: five years. stuart: thanks very much. check the big board please, we're coming back a little, we are up 26 points. -elitist talkfest in davos, a
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bunch of ceos blabbering on. charlie gasparino is there. you see working out in switzerland during up for all the fluffy interviews. i will take him to task for a moment. get the video off. already 55 companies are investing over $98 million dollars and creating over 2100 jobs. from long island to all across upstate new york, more businesses are coming to new york. they are paying no property taxes no corporate taxes no sales taxes. and with over 300 locations, and 3.7 million square feet available, there's a place that's right for your business. see if startup-ny can work for you. go to you show up. you stay up. you listen. you laugh. you worry. you do whatever it takes to take care of your family. and when it's time to plan for your family's future we're here for you. we're legalzoom, and for over 10 years we've helped families just like yours with wills, living trusts and more.
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visit us today for legal help you can count on. legalzoom. legal help is here. so,as my personal financial psychic, i'm sure you know what this meeting is about. yes, a raise. i'm letting you go. i knew that. you see, this is my amerivest managed... balances. no. portfolio. and if doesn't perform well for two consecutive gold. quarters. quarters...yup. then amerivest gives me back their advisory... stocks. fees. fees. fees for those quarters. yeah. so, i'm confident i'm in good hands. for all the confidence you need. td ameritrade. you got this. nicole: i am nicole petallides with your fox business brief. back-and-forth action on wall street. right now we have all of arrows across the board. out and industrial average up 25
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points, 17,540, the s&p up 10 and nasdaq up 23. the dow leaders include united health they reported their numbers, stocks hitting a new high today at 2.5% at the moment, chevron, intel among the other leaders and we are seeing energy go very well today. look at the other names, up 3%, conoco phillips up 2%, this group is the number one performing sector today though it has been a laggard, 2014-15 as well. oil up $1 and a quarter. michael course getting an upgrade over a company for the handbag sales. more "varney and company" coming up. you park your car. as you walk away crunch! a garbage truck backs into it. so,you call your insurance company, looking for a little support. what you get is a game of a thousand questions. was it raining? were your flashers on? was there a dog with you? by the time you hang up
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in europe right now i have written a column about this and i tell you is this this is where you and i agree this is a huge waste opportunity. lot of panels, fatuous stuff how big government can help make the world better place complete be ignoring where capitalism has made the world the better place. jack ma should be huge tomorrow or later in the week, the entrepreneur who started ali baba. he started it because china is embracing capitalism and it goes on and on. there's a difference in the world right now between what is happening in europe, these economies that are stagnating, massive social unrest, what is going on in asia where they are embracing capitalism. i will say this. more needs to be seen, jamie dimon coming and later in the week. this ceo of j. p. morgan, they
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are capitalists. i tell you, is the same old same old, problems persist because they keep giving us the same prescription and president obama's seat of the union speech would have been received better year if he was here giving it here is that it was last night in front of congress, in front of the country. the country wants more capitalism. they understand the wealth gap in the u.s. has gotten greater under president obama and these taxes and programs advocating the same thing. this place as of now was a wasted opportunity. i ran into a lot of rich people al gore, larry king, richard branson. stuart: having a blast. charlie gasparino enjoying
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himself in davos. a strong word but i will use it chaos in yemen. islamic militants seeking the presidential palace and the country's largest army base. president hardy no control of the government. give us some context. how important is/arby's developments in yemen? >> extremely important. the country has been disintegrating% time, this takeover effectively in the centers of the government by the associated tribes, simply confirms that. they don't want to take over yemen, they just want autonomy in the region. what we are looking at is what used to be the country of yemen, an iranian shiite sect in the back door of the oil producing sunni arabs and we have now died in the arabian peninsula base in yemen. the loss of government control leads us exposed to terrorist attacks of two different
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varieties. stuart: two groups of bad guys are really controlling yemen. >> another example of what happened in somalia with breakdown of the government and the breakdown of the government to libya. these are an arctic territories, we see them in what used to be syria and iraq, it is happening all over the middle east as the united states withdraws. >> what is unclear to me is what the obama administrator should have done. with the public support sending in troops to prop up the government in yemen? >> i don't know the we had unlimited ability to affect the situation but what the obama administration did was undercut the president in the euphoria of the arab spring, brought down a government that was popularly elected in the state department in a free and fair election and replaced it with instability. that is what we did in egypt too. we went from bad to worse and probably alienated everybody in yemen as we have in egypt.
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stuart: so many north african and middle eastern islamic countries with a muslim majority population in absolute chaos. rubble across the land. this is an extraordinary situation. in that region of the world. >> in large part because the force of stability that the united states brought has been withdrawn. the level of late on president obama. >> the mishandling of the arab spring has led to this and in egypt, calling for a revolution in the islamic world and yet we have alienated him because of our support. >> people like isis and al qaeda controlling chunks of territory. >> iran controlling and controlling -- >> controlling advanced nuclear weapons program that makes process and ballistic missile program the president in his delusional state of the union speech last night thought that he was handling well. stuart: former ambassador to the
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united states john bolton thanks for joining us. mcdonald's out with a new video, trying to repair their self-image, pushing the natural angle, real potatoes real french fries. more on this next. >> you wanted to know where mcdonald's rise come from or if they are even made of potatoes. i went backwards through the whole process, exactly how they are made and trace it back to hear, to this potato. pretty simple.
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so,as my personal financial psychic, i'm sure you know what this meeting is about. yes, a raise. i'm letting you go. i knew that. you see, this is my amerivest managed... balances. no. portfolio. and if doesn't perform well for two consecutive gold. quarters. quarters...yup. then amerivest gives me back their advisory... stocks. fees. fees. fees for those quarters. yeah. so, i'm confident i'm in good hands. for all the confidence you need. td ameritrade. you got this.
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stuart: why not take a look at -- i repeat myself -- take a look at $90 a share. seems to be trading slightly to the downside, down 1/2%. the company just released a new video showing exactly, what exactly goes into the making of its french files? lauren simonetti joins us for more on this. what do they say about what goes into their french fries? secondly why are they making a video like this? >> they want to know is this potato in these french fries? what do they think? they wanted to know how much bottega was in the front french fries, how many chemicals in
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their french fries and with a told us -- and dextrose, and treat him with sodium phosphates, and fry them only partially and their frozen? stuart: that is meant to reassure us? and they're coming out with all the stuff they are dipping them in? that succeeds in reassuring that skeptical public? >> they use them to keep the gold in color? >> is it a mistake to come at with complicated chemicals and say we did a rounding chemicals. >> they are being a front and honest and what chemicals are used for. as for dextrose it is a natural sugar. >> i am not as concerned about a french fries with i can see that i am about the chicken nuggets.
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within the burger? that is what i am concerned about. >> they answered those questions in previous the as. >> i eat my big mac once a month. stuart: chicken is in chicken nuggets, beef is in the hamburger. am i wrong? >> we should ask mcdonald's's ceo. stuart: thank you much. tax the rich, fair share, spread the wealth, where have we heard all this before? my full take on the president at state of the union knew at noon moments from now. a super bowl winning quarterback weighs in on deflate the some people are calling it. the scandal there in. hour number two in two minutes. how could a luminous protein in jellyfish impact life expectancy in the u.s., real estate in hong kong and the optics industry in germany? at t. rowe price we understand the connections of a complex
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global economy. it's just one reason over 85% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. push your enterprise and you can move the world. ♪ ♪ but to get from the old way to the new you'll need the right it infrastructure. from a partner who knows how to make your enterprise more agile, borderless and secure. hp helps business move on all the possibilities of today. and stay ready for everything that is still to come.
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stuart: for me the state of the union message last night was hard to watch. it was good to see a young
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dynamic president, yes it was. the delivery was good too. my problem was the message itself. the present double down on failure. not good. tax the rich some. we have been doing that six isn't middle-class incomes have gone down. tax the banks some more. they have been doing that too ended hasn't made loans easier for the middle-class as it? obama did not mention obamacare. i am not surprised at that, it is killing quality care for the middle-class. she took credit for cheap gas. incredible. gas is $2 a gallon despite the president's energy policy, not because of it. when it was over i can back to that nagging feeling is is this president wants to make america more like europe, tax, regulate, borrow. government will give you stuff and government will help you. it is depressing because it doesn't work and it needs to misleads to moorland financial bankruptcy. a strong word but i mean it. i found the state of the union
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message very hard to take. perhaps worst of all the president tried to take credit for cheap gas. more on this in a moment. last night president obama pushed his proposal to raise $110 billion over ten years by taxing the big financial institutions. come on in the chair of the house financial-services committee. welcome to the program. good to have you on the show today. >> thanks for inviting me. stuart: we're financial program and our viewers want to know if we put another tax on the banks another feet on the banks do we have to pay a? tell us? >> is interesting. the president claims he doesn't believe in trickle-down economics. there's something called trickle-down taxation. at the end more taxes to banks
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and insurance companies and investment managers, those taxes will trickle down to moms and pops who are trying to find money for mortgage, an auto loan small-business loan. that is the first point i would make. the second point i would make is the president claims this is all about mitigation of risk, that he has to ensure these financial institutions aren't engaged in unacceptable risk like he would know. my question is what was dodd-frank about? is this it has added mission the dodd-frank felt? was it really means is the president and his administration is actually leading and adding more risk to the economy, and roughly 90% of the housing finance market in trying to repeat the mistakes that protestant to the financial crisis in the first place. i studied economics. stuart: to you have the details? we were told that this was going to be a tiny little tax on every
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single financial transaction like 10% or something. then we were told it would be a tax or a fee and there was a mortgage loan or car loans. is in all of the above? >> i don't know because the details are a little fuzzy like a lot of the administration's proposals. having said that i am not sure how much detail we will see because i think last night was far more about the politics of envy than the economics. and led to believe this type of fee or tax, two different fees, one, to be registered on financial institutions that have more than $50 billion in liabilities and also talking about a transaction tax every time some school teacher or background worker wants to make a trade in their eye are a. it is no wonder the middle
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incomes have fallen, the middle-income wager has fallen behind during obama's presidency. stuart: it seemed to the president wanted to take the democrat party to the left beat up on wall street as a good talking point for the voters and sound a lot like senator elizabeth warren. what do you say? >> he had talking points down for a long time but most americans don't want to occupy wall street, they just want to quit bailing it out. the answer there is to end the dodd-frank taxpayer funded bailout, to end this designation of too big to fail institutions and improve the bankruptcy code to make sure these institutions can be resolved in bankruptcy? our big problem is a regulatory burden that is crushing our community financial institutions and crushing their clients who are small businesses and
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entrepreneurs. it is no surprise that under obama we have one of the lower levels of the entrepreneurship and small-business start ups in a generation or two. it is crushing. house and senate republicans want to lower the regulatory burden and we know you have to grow the economy from mainstream up, not washington down. stuart: it is not fair that all these people make all this money congressman. i want my keys too. you know how it goes. >> i tell you what is fair, having equal opportunity to go out and have a meaningful career and provide financial security for your family. this is all about not the politics of economic growth but income redistribution, the politics of division and envy and the president and his administration continues to defy success we have less success and when he aims his rhetoric at wall street his policies are hurting main street and
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hard-working taxpayers are becoming collateral damage. it is no secret the middle income worker has fallen behind. they have less, fewer dollars in their bank account, lower paychecks, thank you barack obama, may i have another? stuart: the new chair of the house financial services committee. thank you for joining us, appreciate it. here is your islamic terrorism update for today. chaos in yemen, islamic rebels seized the presidential palace on the biggest army base, chaos over there. government officials say the shiites rebels are the dominant force in the northern part of the country and they are backed by the iranians. ambassador john bolton last hours is instability in yemen is a threat to all of us at home. roll tape. >> what we are looking at is what used to be the country of yemen will be based to a pro-iranian shiite sect in the back door of the oil-producing
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sunni arabs and we will have al qaeda in the arabian peninsula based in yemen. the loss of government control leaves us exposed to terrorist attacks of two different varieties. stuart: and this brutal attack in tel aviv, israel. palestinian man stabbed 11 people on a bus three of them seriously injured. police shot and arrested the attacker. you are looking at video of him, there we go see that man? back that up. he ran out of the bus, followed a woman and as he ran away he stabbed the woman in the back. there you go. just saw that right there. they are calling it an act of the islamic terror. check the big board's. we are up not by much, 50 points higher as we speak at 17565. the biggest winner today is netflix reported higher profits, $60. it is up so much. ibm different story, gave a
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disappointing outlook. that is a dow stock when it goes down it affects the dow. right now ibm's poor performance at taking 35 points of the dow industrial average. i will stick with ibm and go to liz macdonald. when you compare them to all these gee whiz thing is that google is doing i got to say ibm looked like a dinosaur. liz: ibm was a hardware company and it has fallen behind in his it doesn't have a cloud computing strategy. it was -- is moving to professional service -- also cloud computing doesn't have a good solid strategy there. when you see 11 streets almost three years worth of falling revenue and back in 2011 ibm supplanted microsoft, it is a market cap now half of microsoft's. ibm is in such a bad situation that facebook is valued higher
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and ali baba valued hybrid van ibm. stuart: for three straight years, less money has come into the company. liz: watch this, at the top official on the call says revenue isn't important for us. really? revenue -- that is a direct quote. revenue, we are not interested in revenue for revenue's a? every company has to be interviewed in revenue for revenue at stake especially in this space where you have oracle, cisco, ibm really is going to have to hit the ground running this year or has to break up or be acquired. that is the word from wall street. stuart: i never heard that before. thanks very much. check the price of oil. the big question is have we hit bottom? two weeks ago week down $44 $45 a barrel. was that a bottom? national average for a gallon of
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gas $2 a $0.04 a gallon, it was $3.27 a year ago. chris walker come on in. welcome back to the program. how many rigs are you pulling down right now? you are a drilling company. you are a driller and you have the price of oil collapsing. i you taking oil rigs upstream? >> we as a company are not yet. we shifted all our drilling efforts into the permian basin in west texas, drilling for whoof camps where the cost of developing oil is the cheapest in this country. we are not working in the balkan right now. is one of the more expensive areas. as an industry since 1987 with baker hughes, started counting rigs in this country. last week we had the biggest laydown, over 200 rigs were shutdown, 4% drop. supply will come off line. the floor on wheel prices are close to where we are right now
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in the mid 45 range. stuart: earlier today on this program we had on hofmeister, former president of shell and he said with prices at these levels for any length of time the drillers stop drilling but demand for oil stays where it is. you are going to draw down that service and keeping prices go straight back up. we have a $100 bet. he says the price of gasoline will go to $4 a gallon later this calendar year. i said $100 is you are wrong. what do you say? >> i hope john is right. i hope he is right for the sake of the industry. i know consumers love cheap gasoline but the reality is there are consequences with the jobs, over 9 million people in this country supported by oil and gas with hospital workers and restaurants and things of that nature. not just guys on rigs but keep in mind these are the highest-paid workers in this
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country, will and gas pays $40 an hour average wages so these are not jobs you can find. stuart: we don't want to see you guys set down. if we went back to $60 a barrel just picking a number out of the air $60 a barrel, if it went back to that, shutting down wells would that stop? >> oil is going to rebound. in the second quarter it will grind back. we are in the 60s but keep in mind and six months ago. and everything will be hired over night or go back to normal. and it is rebounding, it slows
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down, they're taking discounts costa coming down not have unfortunately the price of oil still to ground downie margin in certain areas and still produce oil in this country and the middle east would love this to stop overnight. stuart: we love cheap gas but don't want to see you guys hurt by a tumbling oil prices. thanks for joining us. good stuff. all right, here is what we have for you for the rest of this hour. the patriots accused of cheating using deflated football's. we have superbowl winning quarterback joe fis men on that at 12:23. cheap gas putting our energy boom here in the u.s. on hold. we talk to north dakota senator john hogan. north dakota was at the center of the fracking industry, a booming economy. is that in jeopardy? we will find out. after the breakout president obama wants to make us more like those pagan losers in europe.
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stuart: agreeing to pay the fcc up fine of $58 million for inflating readings for mortgage-backed securities during the crisis. the s and p will pay out $19 billion in fines in new york and massachusetts. liz macdonald has more on this. before we get into these lines worked they also assessed over a billion dollars in penalties, for downgrading america's aaa rating. liz: excessive fines, what is happening with that, the fcc and the attorney general of massachusetts, commercial back bonds and mortgages. stuart: these relate to mortgage-backed securities, in ratings on them. the previous billion dollars
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fine they are negotiating relates to government bonds. liz: the contrast with the s&p that they downgraded and the u.s. retaliated, that is not at play here. what they are negotiating with the department of justice, the overall misrepresentation of rubber stamping bonds as safe and secure when they were not. those bonds are the landfill in investment portfolios. the negotiation is underway. it is teeing up a better settlement coming down. stuart: if they said this junk is good and they deserve the fine? >> remember is this the isn't females were revealed if a cow
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was put up, a structured cow, we would rate it. on wall street, aerating rubber-stamp some. the s&p is operated under that cloud of controversy. stuart: thank you very much. president obama pushed a populist message at last night at state of the union giving freebies to the middle class and poor people, taxing wealthy people to pay for those. that is what he said basically. here is joe biden, chief of staff welcome to the program. good to have you back. seems to me president obama and dragged the democrats to the left last night. do you agree with that? >> i think the speech i saw, that the american people saw was
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a president that was confident and in command of the fact. a lot of those are very inconvenient for people who are -- eager to be -- stuart: the president said we are in recovery mode, the economy is coming back, there are more jobs, the unemployment rate is down 5.6% i got that. what he didn't say. middle-class people are losing ground, median income in the united states was $55,000 in 2007, but $12,000 less. and over the six year period obama's presidency, now he wants more of the same policies. >> fastest and longest economic growth in 1999, highest test scores in american history more
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american kids in college, 10 million more americans with health care who didn't have the last year and inflation rate on health care costs at its lowest level in 50 years and a stock market that has doubled. as the president said this is good news. second -- stuart: wait, wait, you tell me how president obama's policies have created a stock market boom and i will tell you how happened. >> i will tell you how. predictability, reliability and clear vision for the middle class is what this president has duckworth. stuart: the reason over the last three or four years is the federal reserve pumped out $3 trillion for interest rates making bonds highly unattractive, making the best available investment option to the stock market. that is why the market is up. has nothing to do with president
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obama. >> all the republicans running for the hill every time this president proposes something, they have got to come to grips some of these things are working. to your point about the middle class and needs help. the things the president proposed like increasing the minimum wage, and earned week of sick leave, access to community college, why aren't republicans for these things? s obroo g pr0 a joke.
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stuart: the story so many people are talking about today the deflated football. the nfl reportedly found 11 of the balls were indeed deflated. >> i think it can help you grow a little bit. the best way that he felt he could throw that day. stuart: joe theismann joining us on the phone. is it easier to throw, catch and run with a deflated ball? >> i knew i would talk to you today. i went over. i went to their equipment room. i asked them to and played a
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ball. then take one down to 11 so i could physically try and feel the difference. i could not feel the difference. you are not supposed to squeeze a ball until it pops anyway. the other thing is, the weather conditions were such that that could affect it as well. i do not think tom had any idea what the psi was of the ball. stuart: do you think we need a new rule on the proper inflation? >> this is a talking point today about football. >> after all we had the state of the union speech last night with a lot of things going on.
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at halftime, have the psi of the balls checked on both teams. there are 24 balls in the game. i still have not heard if the indianapolis colts football's were inflated to somewhere between 12 and 13 and a half or not. >> i am told that the maximum penalty is they lose one draft pick. i think that that is accurate. >> first of all, i think that there are questions that need to be answered. who had access to the football. how soon before the game did they have access to the football. the other thing you have to understand did the official look at these things before they went on the field.
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these balls are in spec did. i can certainly understand having done and felt the difference. how the officials had no idea that though paul was deflated to that he agreed. it is minimal. >> i just think we have far too much time on our hands. >> absolutely. a lot of people do not like the fact that the patriots are back in the super bowl. if you do not like somebody there, then beat them and you go. stuart: an excuse to have all you guys on the show. i will take that any day. [laughter]
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>> that is where they are going next. you never know. stuart, it never ends. next case, or dakota senator. his state thought and economic boom because of fracking. what does he think about president obama taking credit for the falling rates of gas? the senator is next. ♪
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>> you believe that we can reduce our dependence on foreign oil. today america is number one on oil and gas. we bring online as much solar power as we did in 2008. the typical family this year should save about $750 at the
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pump. stuart: there you have it. here is republican from north dakota. senator, how much credit can the senate reasonably take for lower gas prices. >> he is blocking our efforts to produce more oil and gas in this country. over the time frame that he is referencing, our production time is up. we are actually down private and state. >> is your state in some trouble now that oil has crashed all the way down? can your guys make money at 46, $47 a barrel? >> it is a concern.
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$100,000 on barrels a day. 700,000 has to go by train because we do not have enough pipeline. we need that kind of infrastructure. >> i believe that warm buffet is very grateful. the real story here is the president says he will veto the pipeline. do you have enough votes to veto that? >> if we cannot get to the 67, what we will do is bring it back and try it to other legislation that he cannot veto. stuart: the president is going after it in a different way.
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he wants to cut the methane emissions. they are emitted during that thrilling process. can you get that regulation rolled back? >> i think that we can defund it if they move forward with it. it will help deploy new tech allergies. we can accomplish some of these things the right way by empowering our industry. >> it is a shame. that is what the american people want. they want him to work with congress. >> think you. we appreciate you being here sir. do take a look at netflix. it made a lot of money.
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that is a big deal. calm on in. earlier today, he does not like the stock. he would not die netflix. >> i do not know why he would not buy it. they are earning money. they are doing everything that is right. the only company that you think about is netflix. they may come in there and start filling that in with earnings. stuart: the president wants to tax you wall street types every time you buy and sell. it is supposed to be a miniscule tax on every trade. that does not seem so bad. you can handle that.
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>> well, of course. wherever the money is, let's go get it and put it somewhere else. the president is the world's greatest pick pocket or of people's wealth. that is what is happening right now. stuart: we hear you. everyone is talking about this. the patriots using deflated footballs against the colts. greg norman will chime in. the shark is next. ♪
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nicole: i am a cool petallides with your fox business brief. stocks are higher across the board. that is a gain of almost one quarter of 1%. the s&p and the nasdaq up half of a percent. homebuilders are higher on the
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stuart: let's go to switzerland for the world economic forum. who was he? what did he say? did you like him? >> the united states greatest allies and friends. yes. we had an opportunity to get him first on fox business. he was about to go into a panel which is oversubscribed. what is the greatest threat. he, of course, said terrorism. listen. >> the capability to go and fight and beat these people on the ground.
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i think it has to do with our educating young people in certain countries. teaching them a religiously -- >> more with tony blair. my very wide range interview. coming up at 3:00 p.m. eastern eastern on "countdown to the closing bell." plus the russian tanker that is admitting that the sanctions are starting to hurt. i brought you swiss cheese. imagine that, from switzerland. [laughter] stuart: i will be watching. thank you. i will say it. the patriots cheated. the team used underinflated game balls. i am going to ask greg at norman
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about this. welcome to both of you. did the patriots cheat using deflated balls? is that cheating, reagan norming? >> you play with your credentials. no matter how good you are you set the standards. as i say, the higher you are the higher the standards will be. stuart: you have the cleanest sport. tell me about tech elegy. >> from my perspective we have great corporations in the world. samsung came on with the pga of
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america. it is all about the battery technology. it is going to be a huge game changer for manufacturers. samsung has come along. over the next couple of months to the year, you will see the whole industry change. >> invested in just about everything. >> yes, i have. stuart: you want to increase the number of people playing golf. how about those golf balls that go much, much further? >> our mission is to serve our
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membership. we do not want to fundamentally change the game. we want as many people as possible to have the golf experience. we want as many people as possible to have a golf experience. then the magic in the charm will engage. stuart: i have to ask just one question did in the "wall street journal," there was a picture of the golf hole much bigger. would you even consider doing that? >> we have thought about it. to make the funnel into the game as big as possible. as welcoming as possible. in terms of introducing kids and
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women and minority and getting the team more diverse anything is on the table. we are all ears. we have to get more. >> i am the other way stuart. i think the rules of the game of golf should be completely loosened up. i think those rules should we restrict it on the pros. we are the best. we need to get people back to the game. get them to hit the ball 30, 40 yards further. get them to express the technology like we do. stuart: thank you for joining us. thank you very much, gentlemen. good stuff.
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a couple of well class quarterbacks. brilliant golfer. paul mitchell will talk about president obama's war on business. that is next. ♪ n in china impact wool exports from new zealand textile production in spain and the use of medical technology in the u.s.? at t. rowe price we understand the connections of a complex, global economy. it's just one reason over 85% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. they challenge us. they take us to worlds full of heroes and titans. for respawn, building the best teractive entertainment begins with the cloud. this is "titanfall," the first multi-player game built and run on microsoft azure.
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stuart: the 95 year old of tootsie roll has died. ellen gordon is the new ceo and chairman of the board. look at the stock. >> this company could be put up for sale. we could see a sale of this company. tax the rich. look who is here. cofounder. i want to see you pound the table about taxing the rich.
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taxing them more. people like you losing more than half their income. go. >> no disrespect to the president like he did last night. he took the credit. it is the american businesspeople that should have been taking the credit. we have what it takes to straighten things out. our companies changed its, not the government. stuart: why aren't your fellow billionaires pounding the table? they are caving. >> a big piece of what i made those to helping change america and the entire planet.
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150,000 people. teach them how to grow and sell their own vegetables. that is the united states of america business community. not the government. no enthusiasm about staying on food stamps. number one all trip premium tequila in the world. >> delicious. [laughter] stuart: i will get it right.
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thank you a lot. more varney in just a moment. ♪
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welcome back to showdown! jerry rice here with 8 year old andrew hunter debating who will win the big race between the tortoise and the hare. what do you think andrew? rabbits are faster. it's not a rabbit, it's a hare. what's the difference? maybe figure that out before debating the best wide reciever of all time. wait, are you odell beckham jr.? vote on twitter for your chance to win a mercedes-benz big race viewing party.
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stuart: my time is totally up. here is deirdre fulton. deirdre: private equity and author translate what that means for the business community. we will give you the technology take on the president's speech. an international superstar. he will be joining us later this hour. president obama pushed for an economic plan for the middle and lower classes. >> wages are finally starting to rise again.


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