Aug 25, 2014|
Automatically Generated Transcript (may not be 100% accurate)
Jewels passengers with us this morning it's Monday and we've talked to at 650 CBS news senior business -- post of Jill on money Saturday's four until 6 WB and morning she'll -- morning you know among the stories that have really Connor died this morning burger king and talks to buy Tim Hortons. That's a lot. Our camps are you -- how could you set me up like that real it's terrible. You know this is so interesting eight week he think of it is just a deal between two fast food restaurant but I'm gonna tell -- the real reason behind this may have more to do with taxes. Because this is could be one of those deals where accompany a US based company is buying a foreign based company. In order to change tax structure so Burger King US based important Canadian. They look like they're trying to do we deal where they're going to move that Burger King operation are gonna move in and establish a Canadian company that owns both brands. And that will lower the tax rate for the Burger King stories that keep running those franchises -- so you'll still be able to go to burger king and -- important. But it's really interesting we call the attacks in version. Well -- Burger King your goal is also a little bit of trouble aren't -- Joseph -- -- they have fallen behind at Wendy's and McDonald's I mean in a big way oh absolutely so I'm not it's the only reason I'm not gonna tell you that the tax situation is the only reason but. You know one of the reasons why Burger King has had. Big problems in their competition is that they also say that they have bloated operational structure and they believe that maybe by combining with Tim Hortons. They can streamline it also add all those stories. And hit the combined companies would be the third largest fast food France. Company in the country. Where will I -- it sounds like it would help Burger King lowering its tanks face. But -- importance what's the benefit -- why would they wanna be bought out I think maybe they just get the money and maybe that money was a little bit too much to turn down. And that combination. Could give both some sites and upside I I I just wanna be very clear that. From -- the looks of the deal first you know what first blush it does look like a deal where Burger King is sort of getting. A -- a lifeline to really try to -- restart a little bit financially. And you know -- all the fast food companies have come under pressure to eastern changing there's a new study out that shows that millennial don't like mcdonalds so all these brands are really clutching. And trying to find how do we bring people into our stores. As you're on your website we known issue saying that you know with the market doing OK you know lots of folks. Elected to their retirement their 401K is on the rise in value but. You're also Sanders a pervasive sense among a lot of people that they're really not getting ahead despite that's. Yet this is not just the feeling I think this bears out in data we got a report last week which really didn't get a lot of play it because it probably had a little bit too much bad news. It comes that we see median household income when adjusted for inflation came in just about the low 54000. Dollars now the good news is that. The income is up from three years ago were up about three point 8% adjusted for inflation okay. So that's great the problem is if you go back five years were still now we're down by three point 1% from five years ago and a longer term trend is kinda scary. We're down by five. Point 9%. From the year 2000 Americans are worse off than they were fourteen years ago again median household income not -- -- wow so not really helping us come out of this recession here right and you know three big factors for that that everybody knows but I just want to remind you globalization. Right you can do things cheaper overseas. Which is down wages here. Technological advances we've gotten rid a lot of jobs some jobs that did it existed in 2000 don't are not even here today. And let's be clear companies in corporate America they are much more concerned with keeping your share price up. The campaign workers so they share of profits has gone disproportionately. To the shareholders -- -- your 401K but not to use the worker bad for you pay your utility bill. OK Jill had a good week due to take care and you married to and it's still solicitor CBS news senior business analyst and host of -- on money.