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Cantor Fitzgerald CEO Howard Lutnick on the company’s hiring and the outlook for the housing and bond markets.
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Thousandth episode of countdown to the closing bell who want to remind people that we've always tried to bring on guests here.
We'll have managed to conduct business and be successful even in the worst of times -- that Smart.
American fortitude and entrepreneurial spirit Howard lot -- the chairman.
CEO of Cantor Fitzgerald of BGC it.
Is one of those people who from the start has been supportive of us and Fox Business good to see our thanks for being here great to see -- graduates is on 1000.
Thank you thank you so much -- -- I look at -- and in just the past couple of weeks you've made two major acquisitions -- Alice and Newmark Knight I mean you're looking at.
Big opportunities to get into some sort of a slightly disconcerting depressed area of commercial real estate.
What's behind your thought of growing at this time well.
You know BGC partners is a is a brokerage business and I think that timing is just ripe for real estate had the 0809.
Period.
You know market was down.
You got one point five trillion dollars of real estate -- needs to be refinanced and I think the brokerage business is in -- grade grade positions so we've what Newmark Knight Frank.
Which has -- management.
And then we added -- analysis great national brand so.
-- market grub Knight Frank combine the two huge business unbelievably exciting in and you know BGC as a brokerage company is really in the rights.
Thought what amazes me -- is even at a time a lot of people are out of work there's a bit of a brain drain with some of the brokers leaving both of these companies are you hiring -- there.
And elsewhere in PGC and Cantor Fitzgerald.
Well we -- we are hiring coming this is the great opportunity you know they you know banks have been in in a tough situation then you have a great opportunity and I really Smart people.
In the real estate brokerage business I mean we are just hiring up the storms I would expect the agency partners and and Cantor Fitzgerald to probably had.
Over 500 jobs in the next -- I really think this is a great opportunity for us and we're gonna grow and you can see our revenues and growth numbers really look great.
For the public company really and in a great spot.
So 500 between now on the next part of next year OK so teachings he's actually done pretty well year to date.
Following the markets up about 14% -- -- outperforming the S&P 500 spent a -- for 52 weeks overall but.
Let's get to the feel of what's going on on the investment side Howard where do you see the hottest flows -- -- that fast money going right now well I don't live.
-- thing just quickly about BGC is you know.
With our stock trading where it is it it changed so much like a bank stocks sometimes they're right of course we're not in the -- -- business -- -- our our dividend is 10% now -- makes no sense to me.
How come they do it as well as we're doing with such great investments would still be yielding 10%.
You know you see equity volumes are down a -- fortunately bond volumes are coming back.
-- -- bond body was coming back.
The business of bonds continues to do better and better so I really think he had very tough times the last six months of the year last year and now the bond -- -- coming back and feeling better.
And better well Howard you know the bond buyers and Spain those yields are spiking how disconcerting how worrisome is that when you look overseas you've got.
Quite a few dozens and dozens of overseas offices for your businesses but.
How worried are you about what's going on in Spain.
Well for -- is a -- you know we we don't like when it's a beautiful boring profit in August we like.
Volume chaos crisis because banks business -- business so.
You know Greek bonds you know Italy France.
-- you know these things are going crazy now so great volumes for our business but.
You gotta think.
Come on if you own Spanish bonds you think in what is the benefit for me you know.
That sooner or -- they're gonna throughout the politicians who are going debt.
To try to put him talk politics -- bring back the ones that just spend spend spend you got footage now looking.
To potentially put in a socialist leader.
You know 35 hour work weeks of the rest how do you pay back your bonds with 35 hour work weeks I mean that's what makes America great.
That's why bonds and America trading better and better Germany's trading well but the rest of Europe.
Wow is that risky.
Hey you know what you're an optimist always but we've got this news today about the Volcker Rule that now and you -- trade what the bank's stock given that you're not a bank but.
Comply with the vocal role companies are now gonna have an extra two years although they have to give a good faith effort in the next two years to comply with this proprietary trading world.
How tough is it for financial institutions to comply with that.
Does it affect you if so how negatively word you always the Howard let -- spirit I'll get around some way or get through it so -- Well look that that for the banks you know the banks have a a social safety net -- them right the FDIC insures all our deposits.
And so that's -- the Volcker Rule comes from that they don't want these banks taking too much risk.
With the road money but it makes perfect sense to give the banks are reasonable amount of time to working through -- you do things too quickly it's just not practical.
Our capital markets drive our economy.
You pick on banks to pick and on our economy so let him move slowly out of it is the good idea.
For which you're going to see you're gonna see those proprietary traders who make money to those banks waiting to gonna go out.
It worked for a hedge funds they have an award for big money -- so.
It's not like -- the -- volumes shrink were all gonna stop trading in fact it just the Smart people are just gonna go elsewhere so I think.
Overall business.
It's probably fine and for the banks is probably a much smoother model that they give more time I didn't very practical.
And thank goodness every once -- in Washington it's a practical thought.
Sometimes I wonder if there ever gonna think practically -- they'll think of what.
Looks good on on television not what's sometimes good for the country.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And some didn't think that five hour energy drink I just I just -- you -- so much energy and it's really a you know you are you are fantastic so it's an honor to be -- -- list.
How hard I love you thank you very much our Atlantic chairman and COB -- Cantor Fitzgerald coming up much more would go.
