tv Real Money With Ali Velshi Al Jazeera April 25, 2014 5:00am-6:01am EDT
>> you are sitting on top of a time bomb >> and the familiar... >> it's amazing what oil can do for ya...black gold >> and what are the human costs of the new energy boom? >> lots of men, and lots of money, your going to find prostitution >> people are just dropping like flies... >> we're paid with our lives... >> dirty power an america tonight special series only on al jazeera america >> smoke them if you have got them, because america is about to crack down on these. also speaking of rules, regulators and the rise of the machine, my week-long look at high frequency trading, tonight
a look at who is protecting the humans. and cows, chickens, eggs, and the price you are paying for meat at the grocery store. all of that coming up, i'm ali money." ♪ this is "real money," you are the most important part of the show, so tell me what is on your mind by tweeting or on facebook.com. where there is smoke or in this case vapor, there must be oversight. the fda is putting one of this -- this is an electronic cigarette. i thought it was a pen -- put these under the same regulatory scrutiny as cigarettes.
for those of you unaware of the ecigarette craze, we're talking about plastic or metal tubes like this that look a lot like normal cigarettes. only ecigarettes have little batteries inside that heat up scented liquid that are in cartridges inside that you simply hail. it doesn't have as much nicotine as cigarettes. they first came to the market 2006 but they have become something of a phenomenon in the last couple of years. e-cig proponents say they aren't as bad for you.
the fda says there is no proof that it is not dangerous, and some health critics fear that they could act on the gateway on the way to a real cigarette habit. the new rules would ban the sale of e-cigarettes to children, put health warnings on the packaging, and force the register its products with the fda. the fda is giving the public 75 days to comment on the proposed rules. one maker says it is not too worried that the new rules will cut into its industry. it can now say you have come a long way, baby. the growing popularity of e-cigarettes drove charles to
quit his job as an it manager to he could get in on the trend. he opened a bar called a vape bar. vape bar is a new term for many of us, what is that place you are in? >> well, this is a vapor bar, or vape bar. it represents that we are no longer smoking traditional cigarettes. it offers a variety of flavors with or without nicotine. people can walk in basically and try them out, and if they get hooked or like a specific flavor, they can just purchase it, and so on and so forth. it's basically traffic walking in and out. >> who are these people? who comes in? what kind of people are they? >> just general people.
no one specific. you -- you have -- you have the people that want to quit smoking, the squeezing, and irritation that comes from smoking regular cigarettes, the chemicals, having a hard time sleeping, they come in and tell us, listen, hey, i'm trying to quit smoking and i want a healthier alternative, and that's why they come in, they try out flew flavors and pick the set up for them. >> and there is no regulation on this at all, right? want? >> well, we take the initiative of setting that standard as far as 18-plus. anybody 18 or older can walk in and purchase it on their own. we do not allow anybody under the age of 18 to walk in and nicotine. >> what is your sense of the discussion that has just erupted.
for at least a year now we have seen ads all over the place and vape bars shows up around the count industry. and now all of a sudden the food and drug administration is all over this thing. what is your response? >> my response to that is it's inevitable that the fda wants to be involved on this specifically with all of the visibility that we have been getting. it's a whole new market, a new industry, it has grown to be a multi-million dollars industry, and reaching the billions. they see opportunities just like anything else. they want proposed taxation and everything else that comes with that. the way we see it there's nothing we could stop them. we could lobby as much as we can, but the best thing we can do is show them, educate them on why electronic cigarette is so much better alternative than
traditional cigarettes. that's what they need to see. they need to know it's not exactly as a regular cigarette. the small cities have been basically saying it is not good for anyone. we should ban it. and so did los angeles and a few other cities in the region, but it should not be treated that way. i have done it myself -- >> i was going to say -- the fda says there is no proof that this aids people in not smoking. you were a smoker, am i right? >> oh, absolutely. i smoked two packs on a daily basis. i have had families suffer from diseases contributed by cigarettes and i took the initiative and said i'm done. i am not dealing with all of that suffering anymore and i'm cigarette. >> and that's what you do?
>> absolutely, any time i crave a cigarette, i feel like i need be vaping or smoking a cigarette, i just start vaping. you have got a lot of flavors. cigarettes give you one flavor, vaping gives you a wide array of flavors. and it doesn't bother those around you. >> thank you so much. >> absolutely. thank you >> naszive recall of general motors took a huge bite out of their earning in the first three months of the year. they earn $125 million in the quarter, that's down 86% from a year earlier. the result include $1.3 billion in expenses associated with the ignition switch deflect linked to 13 deaths as well as other recalls. it was the worse performance for
general motors since 2009. tonight, i'm looking at who is in charge of keeping honest. >> we need the resources to catch the bad guys. i'll have more of my week long look at flash trading and how speed beats strategy. plus vladimir putin and the escalating crisis in ukraine. i'll get a unique look at the man and where he stands. bile speaking to the former prime minister of russia. plus if you live in seattle the mayor is trying to make a move don't go anywhere. ♪ >> the debate that divides america, unites the critics, a reason to watch al jazeera america the standout television event borderland, is gritty honesty. >> a lot of people don't have
a clue what goes on down here, the only way to find out, is to see it yourselves. >> taking viewers beyond the debate. >> don't miss al jazeera america's critically acclaimed series borderland on al jazeera america also available on demand well it's official... xfinity watchathon week was the biggest week in television history. but just when you thought it was over... what now? with xfinity on demand you can always watch the latest episodes of tv's hottest shows. good news. like hannibal... chicago fire.... ...and bates motel. the day after they air. xfinity on demand. all the latest episodes. all included with your service. it's like hi-fiving your eyeballs. xfinity...the future of awesome. i'm taking off, but, uh, don't worry. i'm gonna leave the tv on for you. and if anything happens, don't forget about the new xfinity my account app. you can troubleshoot technical issues here.
if you make an appointment, you can check out the status here. you can pay the bill, too. but don't worry about that right now. okay. how do i look? ♪ thanks. [ male announcer ] troubleshoot, manage appointments, and bill pay from your phone. introducing the xfinity my account app. the stream is uniquely interactive television. we depend on you, >> you are one of the voices of this show. >> so join the conversation and make it your own. >> the stream. next on al jazeera america and join the conversation online @ajamstream. unless you have been living under a stone, you have been hearing a lot about high frequency trading in the past few weeks, including on this show, also because of the release of michael lewis's book "flash boys," which argues that
the u.s. stock market is rigged. what you are probably wondering is if it is such a big problem, and affecting everything from pension funds to commodities, why am i just hearing about this now? and what have regulators and law enforcement officials been doing about this problem? the unfortunate answer is until recently not much. to get an idea of how feeble the response has been, bet's go back to the flash crash of may 6th, 2010. >> reporter: on may 6th, 2010, the dow jones lost 998 points, almost a trillion dollars of value, only to regain most of those points a few minutes later. the calls for tighter regulation fell on deaf ears. the scc didn't feel compelled to
take any further action until two years later on september 14th, 2012. that's when they fined the new york stock exchange $5 million. that fine settled allegations that the exchange was sending valuable trading data to some high frequency traders ahead of other customers. flash forward to march 18th, 2014, eric schneiderman states that he has decided to open a brood investigation into the u.s. stock exchanges, citing, quote, unfair advantages% provided by trading venues. >> in my view the danger to market stability posed by high frequency trading still requires a lot more work on our part. >> then michael lewis generated a fire storm of debate in advance of the release of his book, saying point blank that the markets are rigged and high frequen
frequencier frequency traders are to blame. a the next day the fbi revealed that they have been conducting an investigation to see if high frequency were involved. >> i can confirm that we at the united states department of justice are investigating this practice to determine whether it violates insider trading laws. >> so where has the scc been? mary jo white the chair woman said her agency has been actively investigating high frequency traders. >> we have an number of on going
investigations, so we're very much focused on any abuses in that space. >> yet the real problem that the scc doesn't have the manpower. mary joe white confirmed as much in her testimony. >> the sec, had 19 examiners per trillion dollars. today we have only 8. more coverage is plainly needed as the industry itself has acknowledged. >> until recently bart chillton was a commissioner. he confirmed with us that underfunding problem. >> regulators are overburdened with work. regulators don't the resources to do the job. currently there are people in markets that are getting away with crimes because regulators don't have the resources to pursue them. >> it's like vaping.
some say it is terrible, others say it has benefited investors by reducing the transaction cost per trade. and others say it's just plain old math. i have written two books explaining how to make you a better investor, and nothing in my books competes with the algorithms that you learn as a high frequency trader. this man help train the future quantitative analysts, who don't wrong. >> i think they are just learning the fundamentals of modern technology. markets went electronic a couple of generations ago. >> but the fundamentals of technology are different than the fundamentals of investing. >> i don't think it's about investing, i think it's about market making. that's where the tail of this long trend has ended up with speed.
they are making the right down -- >> making the market is a very, very important concept, but what does it mean. >> if you are an official market maker, it means you are supposed to stay in there and accept a bid and provide liquidity to the market. a formal market maker has an obligation to do that. one of the aspects of the hft is that they have stepped into that role. they perform that function, but they don't have a fiduciary obligation. so the flash crash, the hft players when they saw the volatility in the market they backed away. >> right. because they don't have a fiduciary responsibility. >> right. >> but the world has changed exchanges.
>> that's part of the problem. to be a player, you have to connect to 50 fb different venues and there are short delays, so you can work on that. >> the high frequency traders can take advantage of the fact that there are all of these different markets, and the prices will be a little bit different in each one, they can make their money not on whether their company has a good ceo -- >> no, oh. they are not involved in the fundamentals and they are not involved in the stock very long. they tell us down at the level of space time there's this quantum foam phenomenon. so market prices are the same way. they are making their money off of that small jiter in the market. >> what discipline are you trained in? >> i came out of the wireless industry a long time ago, and
interacted with the markets by raising mronny in the markets. >> okay. these kids at the institutes, they are mathematicians -- >> the kids in my program, it's an undergraduate program, they take six math courses, and six computer science courses. they make more math than an engineer will take. >> but they are not market experts. they don't study finance necessarily? >> no, no. they do -- they have to know what they are doing, you want them to understand what the economic substance is behind an act. so yes, they have to understand the capital markets, how corporations function, the legal frameworks. we have courses in market micro structure, in regulation, these are all important things. >> but you don't look at this mess and say, we're responsible for it. you're not thinking of ourselves
as party to what a lot of people think is damage to the market. >> are you asking me who i think is responsible? > i am. >> i think we have created a situation where the exchanges -- we have pushed them to the wall in a competitive model. they are looking at ways to create revenue. they have set up the games, and the hft are paying to play. >> so if they said we'll make money out of renting to our servers -- >> yes. if you pay us for the feed 200 micro seconds before the general market gets it -- >> yeah. >> there are people like the michigan consumer sentiment index was found to be doing this same thing. >> just a little bit ahead of the public -- >> just to a well-paying customer. do you blame the customer or the game? >> what an interesting discussion, george, thank you
for joining us. >> thank you. all right. the peace deal reached just a week ago in ukraine is already in serious jeopardy, coming up, i'm talking to russia's former prime minister about vladimir putin and whether more sanctions will do anything to stop him. plus the need for speed on the internet. up right after this. ♪ >> results of analyses were skewed in favor of the prosecution >> the fbi can't force the states to look at those cases >> the truth will set you free yeah...don't kid yourself >> the system has failed me
>> on al jazeera america when science intersects with hope. >> i'm hoping to give someone a prosthetic arm for under $1000 >> inovation finds oppurtunity >> a large earthquake would be an inconvenience rather than a disaster... >> and hardware meets humanity >> this is some of the best driving i've ever done >> eventhough i can't see... >> techknow our experts take you beyond the lab >> we're here in the vortex... >> and explore the technology changing our world. only on al jazeera america >> it is unlikely a visit to japan will do much, but protectionist policies between japan and the united states still block a deal. japan will not back down on protections it has on its agriculture.
a two-way deal would boost even larger free trade talks with ten other pacific rim countries, the u.s., japan, australia, peru are negotiating a proposed partnership. so far china has not been invited to the party. even without it, it would make up two-fifths of the world's economy without china. president obama says it is a priority. but first the u.s. and japan have to get on board with each other, for it to proceed. est ka laying violence between ukraine and russia is making world leaders nervous. ukrainian forces lawn frped a operation to drive pro-russian insurgents out of occupied government buildings. it killed at least two
pro-russia militants and soon afterwards russia announced new military exercises near the border. secretary of state john kerry used blunt language urging russia to activity. >> if once again, russia fails to abide by both the spirit and the letter of what was discussed in geneva, there will be further consequences and we will ramp up further sanctions. >> our next guest has a very unique incite into russian president putin. he was russia's prime minister back in 2000. he was dismissed along with the entire cabinet in 2004 after more than three years in office. he has been an outspoken critic of putin ever since. thank you for joining us. >> hello, good evening.
>> you are suggesting that russia's invasion of georgia in 2008 set the table for what is happening today because the west didn't push back hard enough back then, and putin didn't expect push back this time? >> absolutely. that's exactly the case, and that just now [ inaudible ]. >> you are even suggesting that russia and putin are bluffing over what is going on right now. explain what you mean. >> i mean that i don't think just mr. putin has an intention to occupy half of ukraine, or the whole ukraine, i believe and i think just his intention is just to press the western society and the whole world to recognize that annexation of crimea was legal in accordance to international law, and mr. putin is trying to create a
negotiating position, that's why promoting some kind of unrest in the eastern parts of ukraine so that -- to press -- to press the western governments just to recognize that crimea annexation was legal. >> and if he gets that, does this end? >> no, i think -- i think -- it does not end, and i don't think just a recognition will come. i think just appropriate consistent reaction of -- of foreign governments is necessary in this stage, and i think putin should be stopped and his -- and his -- i would say outrageous external policy and pressing neighbor states. >> and the prime minister of russia at one point you understand the importance of russia's natural resources to europe, so is it likely and possible that the rest of the world will be able to put forward a united front in terms
of naning pressure on russia, the kind of pressure that actually matters? this >> i think that's absolutely the case, and in fact i'm completely against sanctions, against my country, the russian federation and against people of russia, but i'm in full support of targeted sanctions against those individuals who are responsible for making this annexation of crimea possible, and who just responsible for creating -- i would say dapger of destroying the european security in this period of time. >> and you are speaking of wealthy russians who basically support putin, and your point is these people travel to the west, they enjoy being in the west, and if this results in sanctions against them, that putin may lose internal support?
>> yes, i think that's the purpose of individual sanctions could be to create -- to destroy, i would sacco heegs of the ruling group. and i think that that is the be. >> what is the effect of these targeted sanctions on individuals, many of whom americans don't even know who these people are. >> just traveling abroad to european union countries, united states, canada, other countries, they have their children good getting education on those countries, and they have their financial interests there. just a ban will be established for these people, and just financial limitations will be endorsed, i think that they would understand that they cannot anymore support mr. putin, and -- and his activity. that's what lead for -- i would say losing cohesion of -- of this ruling group.
now? >> the country has an economic problem, and we're facing economic crisis, deeper than before, and that's one of the reasons why mr. putin right now just heading these undertakings in crimea and ukraine as a whole, so that -- to create some kind of external enemy, and just to impose mobilization spirit in the country, and just to try to consider that it's russian people, and to create other intentions rather than to concentrate the problems reached in his government very soon in the economic and social fear as a result. that is the issue, despite the fact that oil price at a high level but economy doesn't work at all. we already have one year and six months we don't have growth of industrial output.
already more than six months we don't have gdp growth. and last two months we already have decline in gdp. it means mr. putin will face a problem of increased pension bs and wages, but later he would even be not in a position to pay current level. that is the problems russian government will face very soon. that's why the -- to impose a mobilization spirit is necessary at this moment. >> thank you for joining us with your incite. >> thank you very much. a somber anniversary today in bangladesh. it was a year ago that a garment factory collapsed, killing more than 1100 people. the tragedy brought to light the terrible conditions thousands of workers endure as they make clothes for western retailers. many of those companies responded with new safety initiatives.
still bangladesh has one of the lowest minimum wages in the entire world. new rules for the internet could mean life in the fast lane for companies like netflix . you are watching "real money," keep it right here. >> we pray for the children in the womb >> a divisive issue >> god is life , so it's his to take >> see a 10 year old girl who's pregnant, and you tell me that's what god wants... >> a controversial law >> where were you when the babies lives were being saved? >> are women in texas paying the price? >> who's benefiting from restricting access to safe abortions? >> fault lines... al jazeera america's hard hitting... ground breaking... truth seeking... breakthrough investigative documentary series access restricted only on al jazeera america
first hand reporting from across the country and real news keeping you up to date. the big stories of the day, from around the world... >> these people need help, this is were the worst of the attack took place... >> and throughout the morning, get a global perspective on the news... >> the life of doha... >> this is the international news hour... >> an informed look on the night's events, a smarter start to your day. mornings on al jazeera america real reporting that brings you the world. giving you a real global perspective like no other can. real reporting from around the world. this is what we do. al jazeera america. federal communications commission is trying to rewrite the rules of the road for the internet, and the big issue that has ignited a raging debate is whether content companies should be able to pay for the privilege of having their stuff like videos reach you faster than
somebody else's content. so for this discussion, think of digital content as cars traveling on a highway that -- the highway represents the broadband pipes. here is what the future could look like if the ruled proposed today are approved. content companies like netflix or youtube could pay a toll to broadband providers, to send videos speeding to your home at faster speeds than other companies that cannot afford to pay those tolls. whether the content companies traveling in the past lane will pass the tolls on to you is the question. that picture is disturbing to advocates of something known as net neutrality. that
is that they have to treat all providers equally. they say that allowing some companies to pay to travel in the fast lane will result in discriminatory treatment for other companies. meaning if i'm paying to go faster, and you are not, you going slow. the fcc is walking a fine line. courts have tossed out its last two attempts to implement an open net rule after challenges from broadband providers. the sec chairman wrote that the new proposal does not change the commission's goals of transparency. there will be a vote on the proposal in may. michael says this is a very bad day for the internet. he is the founder of reputation.com and a member of the world economic
forum agenda council. michael why does this trouble you so much? >> because it's -- really it's a spear in the heart of the spirit of the american internet, which is that you get to build a company, say what you want to say on the internet, and other people can find you and your business. this is a really good day for the broadband companies, and it's an okay day for the large and wealthy media businesses if you are disney or net flex that are delivering the big, big content. it's a very day for consumers, because consumers will end up eating the dade shunnal cost, and it's an even worse day for the spirit of the internet as applied to entrepreneurs. my company will not be harmed by this, but start-ups, the ones that eat up a lot of bandwidth they will suffer because they
will not be able to afford to pay the high rates or even medium rates. imagine if you have a game that streams over the cloud, and you are playing a game, and that game is built by a startup, and the game performs slowly. so you are going to play a game that is built by a big company that can afford to pay the toll. >> michael, i hear ya, and i guess my question is -- i think it was interesting to use highways and tolls, because people do make that choice to pay the toll to be in the faster lane. i can pay less for somebody who doesn't want to go as fast. is there a way to do that? >> consumers could decide they
want a more premium offering already. that is available to
some companies and consumers in different businesses. this is really more about the guts of the internet. whether, say the state of connecticut, gets to charge certain people $10 in the fast lane, and certain people didn't afolder $10 so they have to go in the slow lane. that's really the analogy. i think the internet is going to look like cable in the end. you are going to say i want the netflix and disney bundle, so i'll pay the extra rate. that is bad for startups because they can't afford to be part of the bundle, they have to loby to get into the bundle. comcast, which is a great
company, owns nbc, which is a great company. is comcast going to be able to give preferential treatment and therefore disadvantage cbs or al jazeera? are you going to have to pay higher rates because you are not part [ overlapping speakers ] >> the only argument i can come up with that is favorable for this is if the broadband companies have this extra revenue, maybe they can finally upgrade the bandwidth, because america has worse bandwidth than asia and other parts of europe. >> and then maybe everybody can drive faster. >> exactly. >> thank you very much. seattles mayor wants to
raise the minimum wage to $15 an hour. he was supposed to offer a plan today, but he canceled it, after businesses and labor groups say they are making progress on their own deal. allen this is a complicated dicey contentious issue. tell us what is going on. >> very complicated. here is what we know for sure. today the mayor was going to announce a deal, or propose his own deal for raising the minimum wage to $15. he did not do so. he was going to alternatively come out with the deal that was made by the committee he appointed to look into raising the minimum wage to $15 an hour. that committee has failed to come up with anything. that was announced yesterday. they continued night. and failed to come up with any
kind of coherent way of coming back. there has been a group of businesses who say they will be devastated if what amounts to a 60% increase in their labor costs is voted in. among the very parties, $15 minimum wage is a reasonable wage to get to. there's agreement that that should be phased in, and just simply made, boom, july 1st everybody pays, but there are different areas of disagreement, and so far we have seen nothing coming out of that committee. right now we're not sure if that committee even exists. >> at this point the mayor has held off on his press conference. what do we expect is likely to happen next?
>> well, some things to keep in mind. the city council has its own income inequality committee. they are scheduled to make an announcement on the 5th of may. we'll see what they come out with. there is an initiative in the works by the group lead by organized labor. they could put that on the ballot in november. that is something that the mayor says will institute what he defined today is class warfare in the city of seattle. the socialist city council member who has been pushing for the $15 minimum wage said today this is class warfare. the lower classes have been dumped on by the 1%, and workers better recognize it and get on board. so there's a very good likelihood that we'll see people
going to the ballot box dealing with the initiatives. >> thank you very much. the government has secured another insider trading conviction. scott london was sentenced to 14 months in prison today. he had pled guilty to giving confidential information about the clients to a golfing butdy. he also has to pay a $100,000 fine. i can honestly say i learn something every day on this show. tonight i'll share what i found out about eggs, the hens that lay them, and the chick ens that end up in the poultry shop. this is "real money," stay with us. >> as america strives for energy independence... >> we can't do it on just solar panels or some wind turbines... >> we look to alternatives
>> you are sitting on top of a time bomb >> and the familiar... >> it's amazing what oil can do for ya...black gold >> and what are the human costs of the new energy boom? >> lots of men, and lots of money, your going to find prostitution >> people are just dropping like flies... >> we're paid with our lives... >> dirty power an america tonight special series only on al jazeera america
that egg cracked a little bit in my hand. your summer barbecue is going to be a lot more expensive this year, as you may have noticed already. beef prices are soaring. good news for ranchers maybe, but you may be grilling smaller burgers as a result. >> reporter: sticker shock at the supermarket. consumers are paying the highest prices for beef in 30 years. the average price of ground beef per pound is $3.69. that's up 11% from a year ago. steaks and other cuts are even more. economists say the cause is simple low supply and high demand. a major factor weighing on supply is the drought both in the south and central plains, particularly texas and california.
>> those high feed costs have caused losses in the beef industry. the losses have encouraged come individuals to liquidate some of the herd, so we have a very low beef herd, the lowest since 1962, and that again, is giving us these very small supplies and high beef prices. >> this professor says one reason why cattle supply has been shrinking is because we eatless beef. today supply is low, it's smaller due to the drought, and there's rising demand, especially from china, ta an improving u.s. economy is also boosting demand. >> when incomes are better people spending more of that money on meats, and beef leads the way. >> reporter: while there is increasing demand, expacking supply takes years because of the life cycle of cows. with no quick solution in sight,
some analyst ps say the prices of beef will continue to rise for the next two years. now every day i try to learn something new. today i discovered that this year egg is a product of a laying hen. a meat bird is what eventually lands on your dinner table. and farmers who produce beat birds are profitting from the spike in beef prices. the department of agriculture is betting that more americans will eat poultry in 2014 compared to past years. that means farmers are gearing up for higher demand. rosy burrows helps run burrows family farm. the organic farm that produces beef, chicken, almonds, and cheese.
those chickens behind you are laying hens, the kind that give us the eggs. am i right? did i pass? >> that's correct. you are absolutely right. these are laying hens. and they give us these beautiful eggs. >> oh, my, your egg is much nicer than mine. you are -- is that like the normal size of the eggs that they lay? >> yes, they are. >> my word. >> and we're very proud of this nutrient-dense, packed full of cla and omega-3's, pasture raised free range laying hens. >> all right. right? >> we do have a niche market for meat birds. our family as you stated is part of a rich family heritage of farming in california for over 100 years ] and we do have the abc's of organics from
oil. >> are you seeing an increase -- we saw a 5% increase across the board for chicken. are you seeing that increase, demand? >> we're anticipating greater demand. we -- at this point for our poultry eggs, we -- we cannot meet the demand. it's just continued to grow since we have been in this operation about ten years. >> but the egg demand is growing separate and apart from the increase in the cost of beef, right? you are just seeing an increase in the demand for eggs, because better? >> well, our family sees an increase in all of our products from the almonds and the beef and to the eggs. and i think part of the reason is that our consumers are aware
of the kind of quality of foods that they are purchasing. especially they want to know where their food is coming from. so local and family farm is what our customers are interested in. >> what is your water situation right now? we know california has been experiencing long-term drought. >> well, first i want to thank this network for the opportunity to have a voice for california and educate our consumers across the nation about the seriousness of the drought. we have not begun to see the devastating effect the drought has had not only on our farm, but on farms across california, and including how that will effect food costs across the nation. this record drought in -- is like the last nail in a coffin where we have had tough economic times, the economy has had an
effect on everybody, but water is the life source for all life, and without water we have no life, and that is -- includes everything from the plants that we grow in the soil to the finished product of our meat and dairy products that are on the shelves today. >> how do you cope with that then? what are you doing? >> well, there's a couple of things. one thing that you asked earlier is about the -- what kind of effect it's going to have. and we don't know. we'll have to see what happens here in the next couple of months. the one thing i can tell you is we expect a 20 to 30% increase in our feed costs. and that affects every aspect of our farming operations. >> wow. rosy we wish you the best of luck on this. and i now know what grass-fed
chickens because they are behind you, nice to see them having a good time. congratulations on being the fifth generation in your family to be running this operation. all right. ronald mcdonald might be the most famous clown in the world, but he has been around for 50 years. i'm not going to say he's old, but if you have got a clown for a mascot, it has got to be kid friendly. the golden arches have given ronald a makeover. gone is the one piece yellow jumper. he is now sporting a red blazer, bow tie and cargo pants. he will be at the forfront of the new social media push, and it's new ad campaign, titled, quote, fun makes great things happen. no word on whether
ham beringer will will be making a come back. stick around we'll be right back. >> on the next talk to al jazeera >> oscar winner sean penn shares his views on privacy rights, press freedom and his controversial relationship with hugo chavez >> talk to al jazeera only on al jazeera america >> al jazeera has a credibility in international news that's unparalleled. other journalists at every other network in america are looking at al jazeera america are going, i wish we could tell those kind of stories... i wish we could have that kind of time.... the next time you want some news, and the other networks are stuck on the jusin beiber story of the day, turn to al jazeera america to find out what's really happening between new york and los angeles and around the rest of the world. if we can connect america to the
rest of the world, we can bring this kinda journalism back to cable news, we can make a real difference here. >> start with one issue education... gun control... the gap between rich and poor... job creation... climate change... tax policy... the economy... iran... healthcare... ad guests on all sides of the debate. >> this is a right we should all have... >> it's just the way it is... >> there's something seriously wrong... >> there's been acrimony... >> the conservative ideal... >> it's an urgent need... and a host willing to ask the tough questions >> how do you explain it to yourself? and you'll get... the inside story ray suarez hosts inside story
weekdays at 5 eastern only on al jazeera america >> i'm joie chen, i'm the host of america tonight, we're revolutionary because we're going back to doing best of storytelling. we have an ouportunity to really reach out and really talk to voices that we haven't heard before... i think al jazeera america is a watershed moment for american journalism it is a big week for the stock market because of ady luge of earnings reports. today alone more than 300 firms posted first quarter earnings. i often get asked what to make of these reports. and i say think of them like your child's report card in the middle of the school year. if he or she comes back with bad grades, it's time to smack them in to shape, not literally, but
hit the books, and get your grades up to par. on the other hand if your child's grades are amazing, you know to take them out for ice cream, but the juicy part is the teacher's comments. well, it's the same with companies, earnings reports, and today is no exception. ups blamed bad winter weather for decline in profits, quote, unusually harsh weather wait on operating profit. translation, we didn't make as much money as we could have, because we didn't plan 234u6 for mother's nature's wrath. amazon turned a profit. but amazon is forecasting an operating loss for the second three months of the year, of as
much as half a billion dollars. caterpillar, posted earnings that beat most analysts expectations, citing stronger than expected sales here in the united states and overseas in china. today earnings at the company, raised the company's forecast for profits, but still a word of caution that warns, quote, business and economic uncertainties around the world could cause problems. so whether you decide to buy, sell, or hold a stock, it's always good to read the comment section too. tomorrow on "real money," wildfires, flooding, landslides and wind, i'll show you how severe el niño weather could effect the world's food supply. plus how a business that started as a pharmacy in queens turned in to a $9 billion medical supply business with operations
in china. that's our show. i'm ali velshi. thanks for joining us. ♪ >> announcer: this is al jazeera. ♪ hello there and welcome to the news hour, i'm laura kyle in doha with the stories on al jazeera. >> threats will get north korea nothing other than greater isolation. >> reporter: barack obama vowed to stand by south korea to counter a nuclear threat from yang. diplomatic war of words as the military build up continues on the russia/ukraine border, we meet the