tv After the Bell FOX Business October 6, 2015 4:00pm-5:01pm EDT
is missing? david: so am i. insiders of fancy sports may be gaming the system. wondering whether this multibillion-dollar industry will survive at all. we have our own group of insiders to tell us. [closing bell rings] >> dow on track to end in the green but barely, for the third straight day. this is the closing bell on tuesday afternoon. david: looks like we have green on the screen. dow and nasdaq couldn't manage to turn it around. they were down for most of the day i would say. oil is where most of the action is. look at this. more than 5.25% jump in oil prices. a lot of questions about how that might affect the overall economy. and as i was speaking it looked like the s&p just went into the red as well. s&p and nasdaq down. dow jones just barely up, a day as lori said, a breather from past couple days. >> while markets wait for tomorrow, here is everything you
need to know right now. david: the rain may have stopped you about a lot of trouble ahead in south carolina. more than a dozen dams are bursting from severe flooding as emergency crews race to prevent more damage. is people died so far. this is historic rainfall. fox news's garrett tenney is in conway, south carolina, with more. garrett? >> reporter: yeah, david. we're about half an hour northwest of myrtle beach, to give you guys an idea of geographic location. 24 hours ago where we were standing this street was completely dry. the big problem is rising river levels. right behind us is the wakama river. there are homes on other side. all the rain over this last week is feed into that river as well as other rivers around the state. right now the river is over 15 1/2 feet. that is four 1/2 feet above flood stage. so it is major flood levels we're seeing here. this is, only second highest
flood levels they have had in the last 75 years here in conway and along the wakama river. a lot of folks, this is central hub of the neighborhood, with folks coming here to get in boats, go back to their homes, check on how things are going back there. we got back looking at a lot of this neighborhood. you can see in the video we have a lot of these homes are raised. folks are used to seeing this flooding, just not to the same extent. a few of the homes out there, they aren't built up quite enough. so you see water getting in on some of the first floor garages and a lot of places as well. but the homes themselves, most of these people will be all right. this water will continue to go up over the next couple of days. and they say, as long as it is, they don't open up anymore of the floodgates up north, they should be able to stay at this level. the problem is, it is going to stay at this major flood level for about two weeks at least. and then it is going to be a
couple months before the waters get back to normal. david? david: two feet of rainfall, you can imagine what is happening. garrett, thank you very much. lori? >> politics now. frontrunner donald trump forcefully rejecting the idea he would leave the gop race after the billionaire's poll numbers faded in recent weeks. so who is on the rise in the race for 2016? joining me blake burman live in d.c. blake? >> reporter: lori, good afternoon to you. ben carson has been enjoying good life on campaign trails enjoying solid place but a new poll suggests there may be dynamic. poll from "investor's business daily,," carson over trump by seven points. the question is that outlyer or a change at the top? keep in mind until this poll, trump had won 28 consecutive national polls dating back to the first half of july. his numbers dropped off from the peak in the 30s last month that combined with saying over
the weekend his numbers fall he would go back to business is not a masochist had trump firg back this morning about his viability as long-term frontrunner. >> i'm not going anywhere. i'm leading every poll and i will win and make our country great again. i'm not in this to have self-glorification. i have had plenty of that. i don't need that. >> reporter: trump is enviable spot, first nationally according to recent polling averages and first in iowa and first in new hampshire. lori, david? >> trump certainly a way with words. that is an understatement. david: indeed. more trump later in the hour. hillary clinton is using a big gaffe by congressman kevin mack cart think as a ticket out of the email scandals in new ad. take a look. >> republicans finally admit it. >> republican kevin mccarthy saying the committee and
benghazi ininvestigating emails was created to destroy her candidacy. >> everybody thought hillary clinton was unbeatable. but we put together a special benghazi committee. what are her numbers today. david: will this ad deflate the scandal and stop mccarthy's chance to become speaker? ed henry is in washington, d.c. with the latest. i imagine the hillary clinton is in love with kevin mccarthy right now? >> reporter: you're absolutely right. we've been talking about hillary clinton on defense. she is on offense about this rightly some. this was gaffe of a republican leader. she is jumping all over it, not surprising in this political environment. this is poet tent because she is doing this for maximum impact, because on thursday republicans start the process is mccarthy replaces speaker john boehner or not. everyone is paying attention to mccarthy in washington. this has resonance, but something else important for hillary clinton's fortunes.
october 2 itnd she is going before the benghazi committee -- october 20 second. with tray god -- trey gowdy, saying they are out to get here and that can help her after a brutal few months. here is where she is still in trouble. we got new information this afternoon. the state department sent a letter to david kendall, hillary clinton's personal attorney saying wait a second, there appears to be a two-month gap in the official e mile. she tells them her official email on personal account started in march of 2009 as secretary of state. now we've seen some emails leaked between her and general david petraeus about personnel matters, official business when she was secretary in january of '09. so the state department is asking her attorney what gives here? is there a gap? have been you certify you turned over all the federal records? what i think is the most important point is, the obama state department saying we want more information. we're not sure you turned everything over.
you have the fbi doing a criminal investigation which of course is non-partisan, if the fbi trying to get to the bottom of this. the mccarthy attacks will work for the clinton camp for a while but over the long term she still has to deal with the fact she has the fbi on her case as well. david: the george soros memos a whole another topic that was just revealed today. thank you very much for that, ed. appreciate it. lori. >> former fed chairman ben bernanke speaking candidly about his time at the helm of the fed during the financial met down in 2008 and the criticism he's faced. >> what do you say to them who say look, we shouldn't be bailing out anybody? you guys bailed out everybody and that is not the way the constitution should go? that is not democracy, that is not capitalism? >> sure, somebody once said, capitalism without bankruptcy is like christianity without hell basically. >> right. >> you need to have market discipline and all that. in middle of most intense
financial crisis in the history of the united states, history of the world, we had to do whatever to keep system from falling apart. that's what we did. >> for more of maria's interview go to our website, foxbusiness.com. david: the very same day activist investor nelson peltz got ge to agree in principle anyway to a huge stock buyback, he scored another big win pressuring due board to force resignation of their underperforming ceo. shares of dupont soaring more than 7% today. ge shares continue to perform well. they have gained 7% since yesterday. are activist investors good for companies and their stocks? here to break down results, david benoit, coauthor of "wall street journal" examination of activists. also with us is dan shaffer of schaefer capital management. and elle lexion. >> we looked for biggest
companies to have activist, and we found sometimes they're helpful and sometimes great for companies. we've seen really good returns. sometimes not very clear, it is very mixed. you have to talk about it on a case-by-case basis. david: certainly this guy has done a lot for ge and dupont in the last couple days? >> nelson peltz is one of the more successful ones. nelson peltz is very good on getting on boards and talking about operations. that is the people that talk about that, activists willing to put forward plans like that are the best. david: dan, peltz is different kind of person. when we think of activist investors, carl icahn, bill ackman, bigger than life people, very strong, very often go against the will of the board itself. >> he is very gentle and very smart man. he is taking over, not taking over but getting into a company like ge has been a dead weight for years. david: don't we need these guys to shake things up? >> absolutely. the goal is to increase shareholder value. they become shareholders when
they buy in, they want to increase value, no question about it. the pop we've gotten last few days because he did go in and buy it. now what is going to happen? he will try to get on the board, try to move things. he is looking for something wrong with the company. basically the debt of this company is huge. that is a big weight on them. if he can come in to clear that out, this stock can to move higher based on earnings alone. david: elle, everything is political. everybody looks at these guys and think of movie "wall street" and greed is good. you need sharks in the clean water system to clean the water out and in fact they end up doing a lot of good, don't they. >> the thing is, they have a view, a very strong view. you can't assume they're going long the stock or hoping that the stock goes up. sometimes these activists investors short the stock. they hope it goes down. so they, we have to really look at their motives here.
it is not always to help the company succeed. sometimes it is to bring the share price down. boards have to be very careful when an activist investor gets involved. you can't assume that the motives are to make the company more healthy and help bolster the stock price. david: david, that is the gordon gekko character, one squeezing short term as much as he can and bets out before the company goes dry. is that happening? >> certainly sometimes. went about the study, only activists long the stock. we didn't count up withs that are short. that is certainly something going on. david: even if you're long in the stock you may not that be that long in the stock. you may be out to sell as much of it as you can over the course of a year or so and get your money out. >> trying to move stock value up. they can get themselves out with it. i have no knowledge of this is the case with peltz and i have no ge stock.
term activist is the new name for same guys trying to do something to get this company growing. david: one thing they're great for, very often ceos stack the board with their own bud i consist. you have buddy board system. these system. they shake things up. isn't that good, elle? >> that is very good thing. we want ceos to be held accountable. david: thank you, guys, very much. ben carson taking lead over donald trump in the latest national poll. we'll tell you what the good doctor says gives him the edge, lori. >> fantasy sports rocked by scandal. allegations after employee of a major gambling site may have been gaming the system when he won $350,000. david: it may be a quarter after 4:00 today, but starting today you can still get some breakfast at mcdonald's. we'll tell you how that is affecting the stock in a moment. ♪ it's whooping cough, and people can spread it without knowing it.
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liberty mutual insurance. lori: take a look at oil today. closing at a five-week high in fact. this after a new report forecast tighter supplies next year. crude closing just above $48 a barrel. that is a gain of 5%. david? david: this may have affected price of oil a bit. new reports that russian airstrikes directly targeting syrian rebel groups supported by cia the white house though is refusing to step in to help our allies because they're afraid of causing a blowup with the russians. meanwhile our few allies in the region are being slaughtered. here to weigh in, kt mcfarland, fox news national security analyst. well, first of all, you and i talked about this last week, whether it was possible that they were actually targeting hour allies, the russians. now according to "the wall street journal" they quote a senior official saying there is no question it is
intentional, the russian bombing. they know what they are hitting. >> absolutely. you and i got it right last week. why are the russians doing this? they know if they destroy all the moderate opposition, u.s. allies, cia-trained allies, moderate syrian rebels, syria will be left with two choices or world will be left with two. assad staying in power or isis? who are we going to choose? at that point, assad we don't like him, hold our nose but we'll support him. david: kt focus what is happening right now. right now our guys are getting wiped out. our allies are getting wiped out and we're doing nothing to stop it. >> in fact we're doing less than nothing because we and russians are flying in the same airspace and our flights, although we're still flying we greatly reduced number of flights we had. so we're stepping back. david: when a russian plane goes over a area. they carpet bomb. there are no rules of engagement. any families staying with the
rebels we're supporting they're wiped out as well. >> russians are really going to commit genocide against moderate syrians in the country. they will wipe them out. david: so who in that region, if there is anybody left that trust the word of the united states after everything we've been through in the past couple years, who would trust us to become our ally knowing that we don't stand up and defend our allies, we allow them to get slaughtered? >> absolutely. that is exactly what's happened in the last two months. our traditional allies in the region, egypt, jordan, saudi arabia, even israel, they all marched to moscow. they sent delegations to moscow, they're looking to say who is the guy we'll trust here? not the u.s. david: hold on, kt we have breaking news on earnings front. yum! brands is out. ashley what are the numbers? >> not so good. earnings per share coming out at one dollar. the expectation was for $1.07. 7-cent miss on eps.
revenue 3.4 billion. estimate was 3.68 billion. so much of this stock revolves around china. goldman sachs estimates 52% of yum brands sales come from china. quote, this is a quote from the company. the pace of our recovery in our china division is below our expectations. they are reducing the growth outlook for the china decision. as a result we're seeing the stock moving much lower in after-hours trading, initially dropping 10%, david. david: 16% down in yum! brands. this is one of those, as ashley was saying bellwether stocks because of their interest in china, with the slowdown in china, that is directly affecting all of the yum! brands product, over in china. and stock is just getting hammered, 17% right now to the downside. quickly, kt, to you, what finally happens with our dealings with russia? do all of our allies go away, get bombed and die and we lose
any presence at all in syria? >> we're out of the middle east. david: already happening? >> it already started to do happen. any fantasy that this administration has it is telling russians what to do or -- we've been left behind. leading from behind has now resulted us being left behind in the middle east. david: what happens with the next president? >> the next president has a big hole to dig out of. question, what more damage happens next 16 months while president obama is in the white house. i think couple more things will happen. watch what the russians did accidentally flown into turkish airspace past two days. that is not an accident. we'll look at ukraine, which is not a nato member. nato members potentially try to show nato is paper tiger. ultimately russian's goal? world oil. david: next president will have toughest job ever. kt mcfarland, thank you very much. lori. lori: two stories on our radar. yum! brands, earnings not pretty. a miss there.
huge hit from china sales. 6million and rising, number of people worldwide displaced from their homes by conflict and persecution reports the united nations. that is up dramatically from 38 million displaced 10 years ago. edward snowden who defected to russia after disclosing classified information about government surveillance programs, he is willing to go to the jail in order to return to the u.s. in interview with the bbc, snowden is waiting to hear back from the justice department about his offer. americans with two more children pay more in child care in rent. pay more for child care than rent in most of the country. those worse off? binghamton, new york, pay almost three times as much as they do in rent. david: coming up the big supreme court ruling on insider trading. some are calling this a bonanza for the insiders. the story stirring up a lot of
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at ally bank no branches equals great rates. it's a fact. kind of like playing the boss equals the boss wins. wow! david: shares of yum, really getting hammered, between 17 and 18% after a big third quarter miss. ashley webster, it has to do with china primarily, right? okay, ashley's gone. we'll continue to keep you updated what is happening with yum! brands but right now, you can see it is down to $69. after hours. ashley is there right now. i was saying it is all about china, right? >> it is all about china. i was getting more quotes from the company. they missed on the top and bottom. there was another quote that is interesting. we now expect 2015 eps earnings
per share growth to be well below of our target of at least 10%. this company of course owns kfc, taco bell, pizza hut. they get 52% by some estimates of their sales from china. they had to deal with slowing growth because of economy in china. they also had a food scare involving their brand in china. that has been a real uphill struggle, david. we're getting more signs of a struggle with the company saying they're lowering growth forecast and see earnings potential through the rest of the year. that is why we're seeing a big selloff in after-hours trading on yum! brands. david: keep in mind, expectations were lowered tremendously before this earnings season because everybody realized there would be a slowdown in china, affecting particularly companies like yum with all the business overseas. even with lowered expectations they came in well below expectations and you can see the result. go ahead. >> also, david, we'll hear this a lot in the earnings season.
the strong dollar adding injury to insult here. david: ashley webster. thank you very much. lori. lori: big news on wall street of insider trading. you heard the supreme court let stand a major ruling from a lower court that overturned convictions of two hedge fund managers. will this make it harder to prosecute insider trading? please to welcome fox news legal analyst, arthur aidala. you say this will make it more difficult to prosecutor. >> the answer, yes it will make it more cult but it should make it more difficult. the lay out the cards, the court that overturned conviction which is the second district which covers new york, is a pretty conservative court. not like the ninth circuit out in california. they usually rule in favor of the prosecutor. what they're saying here is this, it is very simple. if the government will accuse somebody of insider trading, they need to show two things. number one, when they receive the information they knew the person who they received it from
breached their fiduciary responsibility. so they knew that that person wasn't supposed to tell them that insider information. and the second one is, they need to receive some sort of a benefit or give some sort of a benefit, cash or a job or something like that, in receiving information. lori: but these guys earned something like $70 million on information regarding two tech companies, nvidia and dell. it is astronomical sum of money. because nobody benefited from sharing the information they got, and because they didn't know what the circumstances were surrounding the source of that information, everybody is off scott-free? it seems a little bit outrage just. >> what should happen and my prediction what will happen, the sec will come up with different regulations to fix that. they will make certain that regulations make things like that illegal or improper, et cetera, et cetera. but the way the law stands today, what the court is saying they didn't break any criminal laws. lori: right.
>> therefore their case -- and supreme court said we will not revisit it. we must agree with them or not important pour -- for us to listen to. lori: preet bharara, u.s. district attorney this is his thing. he has 100 different cases, 80 arrests. a couple of profile case, michael steinberg, sac capital, could see conviction under appeal and could be turned around? >> if in that trial the government failed to prove in the record, has to be in the record, they to prove that this person, the defendant knew that whoever gave him information breached their duty wherever they worked, the case can be overthrown. lori: wow, this could be precedent-setting. not over yet. >> correct. lori: see you in a little bit, i think. >> that's what they told me. david: we'll be talking about that. meanwhile all-day breakfast at mcdonald's is here. guess what? investors are loving it. mcdonald's shares hit new
52-week high. rallying for a fifth consecutive session. that marks the longest winning streak for mcdonald's in 2015. reality check for fantasy football. new accusations of insider bets rocking the billion dollar industry, lori. lori: looking to give you deja vu, a iconic '80s movie returns to the big screen. ♪
david: major scandal in multibillion-dollar fantasy sports world. draftkings, fanduel, two major fantasy sports company on the defense after report in "new york times" that employees were placing bets on information not available to the general public. fox business's parent company, 21st century fox is an investor in draftkings. joining us now for the breakdown on the scandal, fox business's connell mcshane. probably invested some of his own money as well. >> what? david: fox radio talk show host j.t. "the brick." analyst, arthur aidala, we promised he would be back. former prosecutor fred tecce. >> not a dollar of my own money. what this guy did, it is insiderring trading, compare it, betting on other site at same time or playing. the argument is it gambling or not. he has information nobody else has. what is the information? well, basically what other
participants are doing. so if more people using tom brady than aaron rogers, just to took out two football players names. this guy knows it and makes another decision. david: put all the bets together to play with the odds. j.t., gamblers in vegas shaking your head, of course this stuff goes on, huh? >> well, first off, this is about future regulation because this is wild, wild west of this business. it is just beginning. i love these companies because they're pouring money into sports talk radio. they're pouring it into television. we want to see that money continue to come in, but, it has to be on the up and up. if someone has an advantage within a company and knows they can make a profit by trying or guessing or betting to go to the other company to make a quick buck, that is not good for the business because the common fan will say, i'm not going to jump on either one of these sites. if i don't have fair opportunity. david: if odds are stacked against me i will not bet. >> absolutely. david: fred, what about the
legal implications of all this? you can't do money rigging scheme if you have insider information, why can you do it here? >> well, you know, first of all i'm from philadelphia, the only fantasy in football is the eagles win the super bowl. david: badaboom. >> putting that aside, here is why, when you gamble on site, implicitly or explicitly it is fair. turns out employees have access to information that gives them a leg up, that is not here. i can see a smart class action plaintiffs lawyer bringing action on behalf of people who gambled violating any number of states consumer protection laws. david: i have a smart lawyer to my left. what do you think, arthur? >> i think j.t. hit the nail on head. this is about future regulation. this is the wild wild west. you're seeing so much money so fast. overnight success takes like 15 years. for these guys it took 15 minutes. everyone will get involved and heavily regulated. david: the one thing i don't
want to see the politicians to get involved. if that happens, you can imagine everybody with their own interest -- >> they have already gotten involved to allow this to happen. this is not gambling but a game -- >> frank pallone in new jersey talked about. they are going to get involved. listen, this -- david: what politicians in new jersey will straighten it out, right? >> there is nothing to see in new jersey when it comes to corruption. it is easy. david: j.t., i get what you're saying. you want this industry. it is multibillion. we obviously have an interest in the industry. you want it to be up and up. jeez, get polish shuns involved you will have a mess, right? >> this is unlimited revenue stream for sports coming in down the road. i believe adults should be allowed to do whatever they want. bet on vegas, bet on football and fantasy football. the reason gentlemen, why this works because fans every day can start fresh. and decide if they want to win
that money each day or take a pass. i will take three or four-days off and play next week. it is perfect but you have to make sure it is on the up and up. david: you do, but on other hand, got to tell you, fred and arthur, very quickly, something exciting about something like new. it is a little bit like the wild west, fred. >> it is like the wild west and needs to be regulated. if the government steps in they will do it with all efficiency they run the post office. david: arthur, is there a way to keep it like the wild west? >> people want to be involved knowing it is on up and up. david: you're not gambler, but gamblers like excitement of keeping it on the edge. >> get employees out. >> want a fair fight. david: got to get employees out. thank you everyone with, good subject. lori: lively debate. still in sports, 162 games in a major league baseball season, exhausting. i'm exhausted but they are all a warm-up for the post-season. the wildcard games kick things off tonight.
j.t. is sticking around here for a full preview and predictions for what has become mr. october. you're not going anywhere, j.t. i'm holding you captive. in interest of fair disclosures, my kids are yankees fans. grew up in l.a. if both teams end up in world series, like "sophie's choice." i don't know what will happen. >> i'm a huge yankee fan too. this will be a really rough game for them later on tonight. the odds are the royals were the best team last year. madison bum garner of the giants came through and pitched the giants to a world championship. i think royals and st. louis are favorites to get to the world series. i give st. louis the edge to win the world series but it is wide open. the texas rangers have played unbelievable the last couple months to put themselves in good position. the mets, look what the mets have done, how they traded their way into the post-season to make smart decisions. lori: come on a subway series?
yankees so experienced in the playoffs. although it has been a couple years, two years to be exact. >> yankees have a lot of work to do get out of the first game against astros and get by toronto eventually if they get through the next series against kansas city. the road is very difficult. the road is more difficult for the yankees than it is for the mets. the mets will have tough road going up against clayton kershaw and sack grange key of the dodgers. it makes the them play under enormous pressure, one bad pitch, one error, one mistake can cost your team the opportunity to win the world series. lori: j.t. how does excitement of baseball stack up against football, talking about the fantasy questions? >> nowhere near it. baseball needs a kick in the butt. they need unbelievable world series. partners on television need it.
younger fans want to gravitate to baseball. the game is slowed down, more boring than the nfl. nothing is more dramatic than historic sport of major league baseball in october. i think with different teams in major markets involved this year, we're in store for a great postseason. lori: hope so. j.t., thanks for sticking around. >> thank you. david: losing steam in the polls but claiming to win, donald trump vows that he is sticking around until the end. that is next. also microsoft mania making waves in the tech world. the company's brand new digital devices coming up. ♪ a dry mouth can be a common side effect. that's why there's biotene. it comes in oral rinse, spray or gel so there's moisturizing relief for everyone.
roginsky, former political advisor to senator frank lautenberg. both fox news contributors. mainstream press is pushing this story like crazy. that trump has nowhere to go, reached ceiling limit, so on. so many times they try to get him out of here. i think they're telegraphing what they want, rather than what is. what do you think? >> no. i think that donald trump over the weekend during interview on sunday show, if the polls turned against him he would drop out. so unless that is some kind of media person putting that directly into his mouth, then it is coming from donald trump himself. -- saying something else. david: mainstream media took this, he was asked, look if you're down in the polls, obvious you will lose will you pull out? yeah. i'm not some sort of a masochist, i will pull out instead of lose terribly. the fact is that doesn't mean he is about to pull out. granted one of the polls we're looking at he has gone down
below carson but he is still way up in most polls. >> look. i'm of the belief donald trump never took this seriously. i thought this was a brand building exercise for him. i think at the end of the day donald trump is looking for exit strategy before he becomes president. i don't think he will be the nominee. i never thought he would be nominee. i think republican party will wake up that he is toxic in general election. david: i don't think he is toxic. do you think he is toxic in general election. >> we know he is toxic in the general election. david: you don't think he changed his style one bit from when he started in? >> look at polling. polling shows he loses to hillary clinton by double digits in general electorate. hillary clinton is winning on democratic side. that is who we're putting him up against. he is to thetic in the general election. david: you don't think he learned anything from this experience so far? i have seen a donald trump, calmed down, more diplomatic, more willing to engage generally
speaking, you don't see that at all? >> i have seen him, yes, stop calling people clowns and slobs and stopped -- david: got to start somewhere, right? >> i haven't seen details of real specifics what he is going to donevariety of issues. he has the tax policy -- david: hold on a second. julie, we had a very specific tax plan which a -- >> only thing. david: tax cutters who were skeptics of trump said hey, this is good plan. >> he did. i want to know where you have been hanging out with him because obviously you have been hanging out -- david: somebody has to come to his defense. >> the rest of us haven't seen gentler donald trump. david: certainly you have seen as katie pointed out his rhetoric has chained. >> really? talking about not calling somebody a slob -- david: donald, obviously i couldn't. good discussion. appreciate it. thank you. lori. lori: david, facebook's new plan to provide internet is out of this world literally. the social network expanding the
reach by planning to bring internet access to africa, lasers and satellite drones. the wait won't be long. the satellite is expected to join us with more. deirdre bolton is here. hi, deirdre. >> hi, lori. you said it. mark zuckerberg said we'll connect the world. the idea the satellite goes up as early as next year, lori, as you mentioned part of it is a big focus will be in africa. tons of commerce there. as you can imagine not so much broadband. not so much actually hard wires connected. so next year is the year and it goes with this idea of wanting to connect the world. so we'll have more on that tech story and of course we're going to be speaking with former congressman and presidential candidate mr. paul, what he expects on the race. all that coming up. lori: looking forward to it. david: love dr. paul. a lot more coming up. the american dream becoming reality for one woman. lori: powerful lessons of hard
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call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ david: whether on wall street or main street here who is making money today. microsoft has a new pair of device, big screen smartphone and first ever laptop, surface book. includes detachable korean. graceland, elvis presley's iconic estate is getting a $125 million makeover. some are not too thrilled particularly taxpayers that don't like elvis. they are getting $79 million in local and state tax breaks to help pay for it. lori. lori: millions of people leave their home behind each year hoping to find a new home in america.
my next guest is here to share his mother's story. his mother came to the u.s. 46 years ago. she only had $8 in her pocket. a big dream of giving her family a bright future. she turned the dream into more than one million dollars. she is the ceo of smart path. welcome us with the lessons he learned from his mother. so great to have you. this ask -- is remarkable story. how do you turn $8 to turn it into safety net for her family and but she became a millionaire. >> that's right. it is not here. she had community arounder had. she had support of friend and family. surrounded herself with community of like-minded people. that is important in the jury. this is story of a lot of immigrants. lori: when you say surrounded herself with like-minded people, what are financial principles she used to turn pennies into millions? >> the two big principles, avoid
everything you don't understand. a lot of mainstream financial products she just didn't understand them, so she avoided them. second one was big one, spending less than you make. sounds trite and easy. really difficult to do over long period of time. she did it very, very well. lori: didn't take a whole lot of financial risks. give us examples, hate to say, cut corners but found special deals. but incremental move with coupons or rebates really seemed to add up over time. >> that's right. almost on every decision that she made it was mind-set. almost every decision she made she thought how she could save on it or avoid buying it to begin with. even at restaurants, she would think about ways to do things, making her own lemonade as opposed to drinking water. get lemons and sugar and put together her own lemonade. a lot of times we went to clothing stores, do things
whether at goodwill or discount on off-season. buy winter clothes in the summer and summer clothes in the winter. each of those principles throughout the course of our lives, we felt it very much as her children. it was ingrained in her. lori: i'm sure she is so proud of you too. thanks so much for sharing your story. we'll check out your book as well. thanks again. >> thanks for having me. david: the american dream is alive and well. meanwhile the future is right now. pepsi's "back to the future" bottles about to become reality. would you pay 20 bucks for one bottle? ♪ we live in a world of mobile technology,
david: shares of yum down 17% after-hours. the parent company of pizza hut, taco bell and kfc taking a hit after third quarter earnings miss. disappointing restaurant sales in china, causing yum to revise the outlook on earnings for the year to the downside. lori, already expectations were way down. everybody knew that china was slowing down. look at results. it is all china.
>> i think this is harbinger for tomorrow. i think you will see a lot of stocks with exposure to china struggle tomorrow. this is message in this one earnings report, with stronger dollar for multinationals. david: but it was all what happened in china is bringing down that stock. 17% after-hours. >> all other multinationals that have similar exposure could be in trouble. let's end things on lighter note. pepsi releasing a new product based on "back to the future." fans of the iconic film remember marti mcfly traveling to 2015 being served as pepsi perfect at diner. david: i don't remember the pepsi perfect. before you hop into a delorean. only 6500 bottles will be made. they will sell $20 a pop. the soda will be available starting on october 21st, the exact date marty and doc brown traveled forward in time according to the movie but 20
bucks? i can't tell you how many sample of bottles and coke and pepsi i have thrown away. i will not spend 20 bucks. >> it is so cool. i showed my kids back to the future. the fact we're not on hover boards. so funny how the 80s projected this time. david: that does it for us. "risk & reward" starts now. deirdre: the nato secretary-general confirming a second russian violation of turkish airspace. russia says it was a mistake. at same time russia is escalating its aggression in syria, including targeting america cia-trained rebels. this is according to u.s. sources. welcome to "risk & reward." i'm deirdre bolton. more on the moves overseas and what they mean for the u.s., joining me in fox business exclusive, is former republican congressman, third-time presidential candidate, host of the liberty report, dr. ron paul. dr. paul, thank you so much fo