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Yeah it really is a trifecta of bad news when you talk about what would make the market go higher.
Bad jobs bad data on retail in another tax to meet those three things would make people on Wall Street cringe and yet we are positive.
All we're gonna get more information on all three things I mean that's edible -- -- accident today we're gonna have somebody of Korn ferry we'll talk about jobs we've got is somebody here from look at Childress you actually hear from the government affairs office to talk more about.
What's going on with the bankers yesterday -- on Capitol Hill and what's going on with this potential bank tax the president is talking about its -- defeat.
It's on attacks on a cure all -- -- and our guys -- it burns all over that they'll -- yet he attacks -- you when you look at exactly.
Mature Tommy Williams right now talk a little about the markets -- financial advisors he's joining this team will Louisiana.
I thought how are you.
Doing great dignity with you guys good to see how do you think itself -- so positive on a day like today when we got -- really like we were talking about a trifecta of of negative information that sits just at the market downward.
Well I'll certainly do I think that the first half of 2010.
Looks Cadillac -- second half of 2000 and -- this traffic a few college.
I think is maybe some negative news for this morning but against the backdrop of the big picture.
None of those.
Our are are are that import it the labor numbers.
Look like they'll turn positive in the next couple of months.
The bank tax issue it's over ten years it probably more political -- in trying to take money from the bank executives.
I don't think those things.
Are in the big scheme of things anything is going to slow this market down over the next few months.
-- how -- you see the big picture then.
Whether big picture is that retail sales are much much greater than now that we would have -- in -- -- -- the December numbers may have been.
Disappointing they just revise the note in the November numbers upward remember you can't stop 76 million baby boomers and spending money.
And they've been now sitting with money in their pocket for a while and I think that they're ready to stand -- -- believe they showed that in in December and I think they'll continue to do that in the next few months.
Tommy you're -- on earnings season coming up -- how important how much.
How -- do you put on Intel's earnings after the bell today.
Well I think that the the demand right now and the technology sectors -- the strongest of any of the sectors.
Businesses are starting to spend money again and this recovery is the jobless recovery but it's going to be a business spending.
Recovery in all the businesses are -- hand on technology and so.
I think entail we'll probably have strong numbers and technology -- like Intel are sitting -- a lot of cash.
I think that it bodes well for that sector and -- certainly you know his inside of most of the -- were with the real demand is I think they're pretty good today.
-- Tommy if they don't come in with a good number tonight is that a cell signal for you in this tax -- because they've had such a good 2009.
And then -- firmly under the microscope here in 2010.
It does that signal CEO and -- in my about the party might be over a little bit in the tech space.
Oh I don't I don't -- settle I think that there's -- I think this too -- demand.
They may have a weak number they may surprise on the downs but.
Now now there's -- there's too much demand over the next three to six months I think that to have a major impact.
Tommy also like the consumer discretionary market he does that mean that you're banking on the consumer to get out there and bison TVs -- -- -- -- ten.
Well I think so I think you have to remember that in 2000 and that -- man's underwear was the number one and -- just out of especially in the first half two billion -- -- of men's underwear which.
It is a consumer discretionary Adam at least -- here in Louisiana and New York.
I think the -- aggression there -- back a -- but.
I think -- I think that there are many.
Boomers many Americans sitting around it they're skeptical and their concern for a number of viable reasons.
But they've got money and you'll see it and start disbanded and that discretionary space.
All these new gadgets that you can back you know the app phones and so on.
There's planet two tickle your fancy if you walk into -- store and and and I think it out out they were concerned we will continue to spin and in that discretionary basis probably a good one now.
It is where they'll be looking.
Tom and we got a lawyer hill I was you -- -- like it might go to 85 dollars and -- slow down a little bit getting farther you know retrenching of the closer to eighty but what do you think right now and a supply and demand characteristics here and the relation with the dollar.
As we go through 2010 and oil.
Well all I think according to many credible experts is a sixty to eighty dollar commodity.
Problem is is there there are a number of variables that drive the the price them primarily -- political.
And of course the price is determined by OK not necessarily -- bad about the man then but as long as we have as low as we have industrial growth like chat now.
Has strong growth right now emerging markets have strong -- -- they'll be a demand for it.
So approximate what will be we kept we dollars and is going to be an effect because it's an export -- here in and of course.
They the dollar is the weak dollar is better for exports.
But I don't think you'll see a collapse in oil prices but I certainly don't say them out running up dramatically.
At least the credible experts that I followed don't sing to -- -- that that philosophy.
That's a little bit of good news Tommy Williams president of Williams financial advisor -- Shreveport Louisiana thanks for being with us.
Great debate with you know at a great day.
-- bullish Tommy bonuses -- You post steady since but -- not gonna market's parent -- -- -- -- -- -- -- an egghead wins about midway through -- years alone -- -- -- what's up when -- seems to be common thread that we've been hearing from a lot of people.
Are we gotta talk about Haiti and what's going on and basically how you can.
Support this and get money down there to people and donate all if you -- -- Doug Kennedy is with us.
-- and -- newsroom he's been digging through all this I -- so I don't Americans.
Did when they want to we've seen a ton of -- and you know then -- -- that come with these tragedies how to prevent all that.
-- you know when Americans see this kind of suffering many of us generously go right to our wallets and fortunately there are many out there to take advantage of that.
And today the FBI issued a warning about the many scams both on web sites and in emails.
Here -- we found over 341.
Hits on FaceBook alone of organizations asking for money for Haitian relief.
And with many of them it's very difficult to tell who is legitimate.
And -- was -- So if he can't -- it's really all and you know what's not was the FDIC didn't do.
Yet today the FBI released a list of do's and -- basic guidelines for avoiding scams warning Americans.
Not to respond to unsolicited emails particularly.
Their basic advice is to be skeptical of any organization you have never heard up in other words do a bit of investigating yourself and make sure it's legitimate.
The FBI also says to watch out for viruses and attached files and don't allow anyone to make a contribution on -- about half.
And of course they say never give your home address or credit card information to anyone who solicits on the Internet.
It's so terrible that people do this but you know -- 70 really it's is this a tough job for people had a week.
I really figured out who should we give to if we want to help is at this point everybody wants to give something.
He had that we are we sure do both basic common sense Trace the FBI says to stick to known organizations.
We have a list of those like the red cross -- UNICEF.
Catholic Charities and the Salvation Army your -- fine if you stick with these guys.
And here fox we've compiled a list ourselves a legitimate charities anyone who wants to see that list -- go to foxnews.com.
And search Haiti charities.
It's important -- -- you just want to make sure that you what you're giving is getting to the right people that's it from here back to you guys.
Thank you -- that it Douglas Kennedy down in our in our news from downstairs he's up to date on.
On what to do if you -- -- -- involved because you're right everybody wants to get involved but there are so slow many.
Scams that lets go -- -- back.
You know look they're greedy piece of -- -- immune.
What makes -- minds wanna do that capitalize on unfortunately makes the mind wanna kill somebody I got my dad or somebody who sounds it's stupid things and they're greedy people out there that will do anything for money but.
As though this was saying go to the website foxnews.com.
You can check out a list of all the different charities that are there and very reputable charities that we know of obviously things like the salvation -- get an -- you know they don't have compiled a huge says it's a great list check it out.
Haiti charities in search engine in the search line and you'll find it is intensely we gotta talk about this this bank -- Being announced today you literally as we speak the president is getting done.
Bringing out some of the details of the proposal we'll talk about that at length.
When we come back.
The serious stuff.
On the foxbusiness.com live -- thanks Chris potter.
1211 here on the East Coast 9/11 on the west good morning that market of about sixteen points.
Chris as you were saying earlier that considering this trifecta of negative news it's not I mean I guess -- take it as a pretty positive sign that we'll hold -- on or is it more of you go with the trend the trend is up -- -- everyone keeps -- with.
He had a little of the -- a couple days ago yesterday one thing I noticed it was a fact that.
And if you just look at that big picture at 30000 feet the NASDAQ finally caught up a little bit to some of the other than just isn't -- trailing a lot and on the heels of this bad news if you -- -- bad news.
-- maybe from a social responsibility standpoint it's good news from Google that they're getting out of China that they might do that -- China that they're talking about doing it probably will happen.
On if you look at you say NASDAQ probably should continue to trail and they -- the NASDAQ kind of bounced back yesterday and and -- they were positive when.
Jobs numbers weren't great although I don't know anybody really ever expects them to be at this point on the weekly now.
Yet exactly on the beat some of -- it was a little surprising to me until we get a number of different retail numbers so what do you make of one vs another to get.
I thought was very adjusting -- furniture took a tick up yeah that's all coming up the fact that we have this homebuyer tax credit people buying homes they got to put it chair -- -- can't Saddam and have a better.
The conservatives have.
You can't for a couple -- is -- -- -- them.
So fat he's so that take up a little -- now that's gonna fall back once this credit goes away so.
I think big stories -- apparel suffered that's not a very good sign going forward.
Let's talk eleven about jobs right now -- -- -- -- the CEO of Korn Ferry International.
Ought to talk a little bit about the direction that we are going and you know Gary first of all welcome to the shelf.
Thank you we get this weekly number and it just seems like where where where -- -- of the positive we're waiting sport and we never really get what do you make of this constant at continuous erosion of jobs even though.
And I I could make a really long question but ET yet to continue to but I do you get the continued the continuous numbers we're better.
But they initial numbers were worse what do you make of this report today.
Well look I mean this is an unprecedented time for this country you know it's it's it's a period of massive deleveraging -- and re regulation.
I think we'll rent for here is you know it's a Nike swoosh.
A very long haul out of this and if you look at where the jobs have been lost.
You know take the manufacturing sector than those employees what to housing and housing.
Now bubble has clearly burst and you know we've become now a nation of frugality.
The end you know I think were in for you know a period a sacrifice here.
OK so where are we on the -- now are we at the bottom of it on our way up the -- -- we still coming down.
If I can answer that I pray wouldn't be here at you know we didn't let -- -- the good news is that temporary.
Workers have come back that I had trend is has been improving and that's really the first thing you look for.
In a labor market so so that's the good news.
-- the difficulty is that CEOs like myself are really looking for you know where do we grow where is the consumer where's the top line and until.
You really see the CEOs are going to be reluctant to put on permanent workers.
You know long Korn ferry you guys really are an executive -- -- we talk volatile couple call vs white collar.
You have a college education you have a graduate degree would it.
You know maybe your chances are a little bit better what are you seeing right now from the executive ranks in terms of the trends going -- 2010.
Well the executive ranks have been healthy and that's about 70% of our business -- -- leadership consulting business and outsourcing business but.
In terms of the executive ranks that has been improving I mean our business was up twenty -- Sequentially this this last quarter so.
Given that's been fairly broad base but there really is two different Americans there are those that have skills that have training that have education.
And then those that do not -- and fortunately the latter group.
Is being left behind and that's a real issue for this country over this new decade.
But we are seeing production improving or getting better we're seeing more manufacturing -- arts.
I mean I'm Tiffany glass half -- here but we are scenes some flickers of signs are we not.
There's -- is yes sure but there's still an awful lot of capacity but it's a -- is look it's a good sign that the automobile manufacturers say that they may start hiring again.
At the end of this year right that's the good news but you know again the trouble is the banking system and although it's.
It's certainly a lot better than what it was a year ago near collapse.
You know you CEOs don't have safety nets out there it is still very difficult.
For companies to get credit particularly small companies where most of the jobs are created in this country.
The game open sea suite dozens of these executives.
What's happened with the banking compensation is that having an impact across all industries where you're talking about.
Companies -- very leery about that compensation packages about big bonuses where it extends beyond the financial sector.
Oh yeah I mean look there's a huge spotlight in the board room.
Around the border director's responsibility.
Around -- around succession planning.
-- around pay for performance and you know that is something that -- you're gonna see over the next couple years and I wouldn't be surprised.
If you see something like sarbanes Oxley.
You know for compensation.
Yeah but we -- know sarbanes Oxley did almost more harm than good at the end of the day right you've been in this business forever.
Should these salaries be considered compensation structure be changed.
I think it's very -- you know when she star regulating you know free market system that we have enjoyed enormous success for decades that is very dangerous.
And so when you start talking about additional taxes in the -- -- they're gonna come from.
Great you know that is probably gonna come out of current employees or CEOs not hiring new employees.
Yeah we appreciate your time thank you so much sir thank you very -- artists in CEO corn ferry international.
-- that they that the unit Korn ferry -- love executive hiring.
IA and I think there's always going to be the demand for that now is they get paid as much as they used to I guess that's really the question how they are compensated that's really more the question of that.
Right but it's good to hear at least that they're still demand.
But he still placing these people that businesses still good at least up top it's that middle management and you know that they'll be outs in an Hattie how does that middle management work its way up to the sea suite.
-- CE o.s CF o.s CEO type -- deal that middle management is out you know looking for work and that's what -- left -- -- It is but at the same time I think we've had a lot of layers that we didn't need all these years and now we are moving on and cleaning up and we will come out leaner and -- it's just a -- that a bunch of jobs probably will not come back.
Actually got a head down to DC now Jill her she is with us vice president for government affairs for the financial services roundtable.
We thought we sat here we watch these CEOs yesterday in front of the -- word -- grilled yet again.
What do you make of all this.
Well thank you I think what we fell yesterday in continuing today.
It say hugely important conversation.
That's being had and the -- very important.
What we saw that he is address and answer and I think is helpful for the American public to hear.
Word the contributing factors.
That the lead up to.
Be it economic crisis.
And part of that which the CE is from the panelists discussed yesterday.
With that there was too much leverage in the system that there were regulatory gaps.
And that there need to be strength -- consumer protections.
And importantly while they address but the contributing factors -- They also discuss how to we move forward and I think that's all part of the conversation and dialogue that needs to be had to understand when we work.
And then also to address happily move forward.
It would -- I don't -- -- wants financial reform regulation obviously sooner rather than later it's not the most important thing and pressing thing.
And everybody's place right now in DC but.
My understanding was that this committee this commission wasn't going to file their their final report until December of 2010.
Com do you think that comes too late they get actionable results.
-- that's a really good question and yes that commission will work through well this year.
And it does happen to.
-- side and in fact be on a parallel track.
As a financial regulatory reform -- modernization.
Is happening with the legislative process.
And you know that may seem like gay very technical.
Four -- millions of Americans -- you are listening or watching.
As I would just say as -- he -- addressed yesterday.
Modernizing our regulatory framework is supremely important.
And being able to close those regulatory gaps in being able to give regulators the tools that they need.
To look across the financial services landscape to identify.
Practices and activities that are maybe potentially risky to not only just domestically but also internationally because we are still -- -- connected.
The world and the financial landscape is that that supremely important and you know as I said and mentioned that.
Having kind of uniform standard consumer protections.
Will -- a very long -- so I I think that while the recommendations may not be final from the commission until the end of the year.
That that killing cited coinciding -- Legislative war that's being done.
The industry is very much.
In support of that and offering their recommendations.
All alongside of that what's happening with the commission.
But still I mean we we that will come back to sarbanes Oxley every single time unfortunately it's -- poster child for legislation gone back.
I'm granted -- -- we haven't had another Enron but it caused so many ripple effects in the end.
Everyone is worried that more regulation means more costs to companies and at the end of the day not necessarily.
Does what it's supposed to do.
Yeah I I do understand that and you know -- -- think it does need to be thoughtful their word and areas and went -- -- regulators didn't have the tools that they needed.
There was -- and you know one example is that there wasn't an orderly way to wind down systems that -- failing.
So having the ability for resolution authority for firms that -- failing.
You know no one wants and I think everyone could agree.
That more regulation.
It isn't what anyone wants its effective regulation and thoughtful regulation.
So it if you know good minds can come together an advocate for.
A thoughtful regulation and thoughtful legislation.
That -- and that will help consumers -- -- understand the mortgages.
That -- purchase seeing -- and that.
You know in the end can not I think banks you know be more effective then that's what we're aiming for and not legislation for the sake -- -- But regulation and legislation.
That is effective.
Who is a systemic risk authority in the end here.
I guess the question is who either who does get the authority and maybe who should get the authority killing your line.
Yet you know that's the million dollar question.
You know the house has had the house.
Would anticipate that the Fed have a little more.
The senate certainly is not feeling in that direction.
I would -- from an industry standpoint.
I and there needs to be a coordinated effort amongst the prudential regulators and prudential regulation.
Amongst -- will be some consolidation and there should be amongst regulators and -- it is coordinated and harmonize domestically and internationally.
It really should be with that with prudential regulators.
Do you worry that by the time this regulation comes out good or bad.
That Wall Street will be onto its next derivative word in new trading product or something by then we'll have been created you know the next mortgage backed security trade.
Do I worry about that -- mean I don't think that in the market will always be innovative.
And any regulation I should say any legislation.
Should be encouraging of growth within the market I think that benefits every one I think where the you know it's finding and he tipping point or the balance.
That allows it to.
Protect consumers and strengthen that consumer protection while still allowing growth in the marketplace.
Because allowing innovation.
Certainly is helpful and you know can offer we want new products in the marketplace.
But you know we also don't want lax underwriting.
So there needs to be you know that fine.
Tension and that fine balance that -- -- -- So -- -- now it it's it's difficult to achieve its Easley said but a lot of thought there a lot of Smart people who are working on all of us.
And I think we can find that appropriate balance.
Jill thank you so much -- -- time nice chatting with -- yes thank you thanks to kill her -- -- VP for government affairs for the financial services roundtable in DC.
-- a little about what we saw yesterday with the CEOs on Capitol Hill today Sheila -- is there.
-- losses there am I missing here.
Mary Schapiro is there as well.
C chair and I can't think he had -- investment it's going to be interesting it's going to be challenging art as she sets of Smart people on the panel Douglas Holtz Aiken.
Peter Walton some.
Good you know great Smart minds have been come together but I'm not really sure.
What is gonna do for us a year from now but -- More on his feet that the president just outlined in terms of his proposal just a few moments ago.
When we come back.
-- this is not live continues Christopher -- -- -- -- think the last thing.
Thanks -- at this about it to any taxes freaking out -- thought this dot com live Chris Cotter and Tracy Byrnes.
There she is let's talk about this tax now that the president has laid out there a few moments ago -- McEnroe joins us bank research executive at.
Our -- new NASA and Jim on.
Boy it's really can't call this anything else but attacks and only wanted to call it knee and some other things but it really is attacks it seems like a punishment -- do you agree with that.
I do actually.
You know whether you're calling -- -- responsibility fee which I think is.
There are a couple of things going on here want it sort of a broad brush approach to a problem that's very complex as your previous.
-- talked about and and you know the second thing is that.
It it it's really part of a larger.
Very politically driven.
Approach to controlling the sources of revenue.
Available to a financial institution because.
If you look at the -- itself right fifteen basis points on the difference between assets and tier one capital plus.
Over the next ten years you know that the top ten banks in the United States and I'm putting Goldman and Morgan aside for the moment.
But if you look at the commercial banks the top ten -- you know roughly about six billion dollars a year.
Now through the first three quarters of the year they made collectively about twenty billion dollars so certainly one could look at that say well they can afford it.
But if you add and the FDIC special assessments that are put in place last year you put in a 150 -- billion dollar com.
Permanent default -- that was passed as part of the consumer finance protection agency.
Legislation last month.
And you put in some of the controls on in come specifically specified in the card act.
And potentially the -- the pending or be an -- legislation.
All of these things are gonna severely constrain bank's ability to drive revenue profit.
And as a result there -- gonna have to become very innovative in terms of where they're gonna find their revenue going forward or they're gonna have to cut costs.
But let's cost -- -- they're not gonna pay this pay their gonna pass it right on down to us.
Well -- in certain respects I think that they're they're going to have to consider ways to do that that they're also gonna have to look at cost cutting.
-- there's a lot of of research that we've been doing -- Tower Group that look at the reality that even today.
Banks of this -- are ours are facing very constrained budgets right the other number I think that's important for us to consider.
Is if you look at these top ten banks.
The provisions for loan losses that they've had to take on over the first three quarters of last year we don't have the fourth quarter numbers quite yet.
Numbers about a 120 billion dollars.
That's a guarantee against future loan losses were not certainly through the crisis in any way shape or form to this point in time we've got -- real estate.
Commercial and industrial loan performance is starting to erode and certainly we're not out of the woods in terms of credit cards.
I'm so they're gonna have to look to cut costs they're gonna have to look to drive revenue in new ways and -- some of that cost is gonna have to be pushed onto the consumer as well.
I would imagine also you don't go back to point about having to find innovative ways to turn a profit that.
On that would encourage more risk taking would you think.
Well you know out to the extent that they're allowed to do that I think that a lot of the animation that's going to have to com.
Indy in the industry itself is going to have to come through our client experience.
We believe that investments in the way is that banks treat their customers both corporates as well as individuals it's going to have to continue to a -- There are a lot of nontraditional.
Entering the marketplace.
That are creating new ways of doing business financially.
You know we're gonna have to look at channel investments we're gonna have to look at innovations and product.
I'll bundling to encourage people to do more business with a single institution all of those things -- -- play and they're gonna have to be investments that support that.
There's just so many things wrong with this and so many levels but the biggest -- me is that.
Bet many banks -- forced to take TARP money that they didn't even months.
And now they're gonna have to pay celibate but they paid it back they didn't -- doesn't do.
And never have to paint his speech on top of the ball when they want the money to begin -- didn't -- wanna play -- this party.
That's right that's getting back to the point I made earlier about this being a very broad brush solution right.
There are many banks that are covered by this particular.
Fear attacks or whatever you want to call it.
It never got into sub prime lending that did not do a whole all a lot of wholesale mortgage lending through independent brokers.
-- that were very conservative in terms of that types of underwriting that they get.
Nevertheless they're being -- this -- Yet since it's just again it's wrong on so many levels to second drug bank research executive at Tower Group out the -- in -- stay warm thanks for being with us now thanks very much.
And while a lot of -- -- -- is the -- the automotive companies can't pay back right now the Fannie Freddie can't pay back right now so that it's fine it that the companies that actually.
Still have TARP money and we await them to pay it back they are not affected their exempt from this is the ones that.
Essentially the government made -- less than one year alone.
To some very reputable firms because -- you know the commercial paper market all of -- that these markets -- -- dried -- so Goldman -- couldn't go out there in the commercial paper market liquidity they turn the government the government makes a very profitable -- -- talk about the interest plus the warrants associated with that.
I was good money spent by the government for less than a year on -- on -- like Goldman Sachs we're JPMorgan Chase.
That's a pretty good -- with another.
Did you get data through them -- -- you want more.
This a lot like decent -- long loan modification programs out there.
You do everything great you can't get a loan modified these guys -- -- -- they didn't want to -- first -- did everything great you still -- more money it's all backward.
Student and it's helping out the autos for sure that's there's no doubt about that hey we got a market that's moving the video up 27 points right now someone's moving and what does.
It's certainly more than we started writing our first one down Medifast.
That is -- mad because -- nutrition diet freak they do and diet products take shape for life Medifast weight control things like that -- whatever they're says security litigation firm out there investigating violations.
Of their reporting.
Missed missed reporting revenues missed reporting earnings misleading statements basically about their potential growth.
Apologies Charles -- is gonna -- some of -- -- he will tell you that is a big time red flag.
Heck yes -- -- -- stock was down about 11% earlier.
Eastman Kodak -- -- -- was happening afternoon there was all must call buying on it yesterday.
They said it was a run up to earnings earnings -- January 29 Tony that's not right.
They filed lawsuits today against apple and Research in Motion actually a -- to plug this thing that they don't have right alleging infringement of their digital imaging a technology.
Now this is stuff that is on the iphones there on blackberries and they are saying they have a patent.
That covers -- technology related to previewing images.
Forced oil hit 52 week high today they got the results from the third and fourth.
Horizontal wells in Texas both are -- and the flow and good.
Oh yeah when you when you've got an oil well it's got to be flown -- right.
That's up almost 10% actually did get them dumb Pete says CN -- two this -- yesterday on countdown to the closing bell.
Revenue crust and.
-- -- try -- -- she's as well no I have not put it I admire them for trying something new and it makes you know what if they can be successful this if they can make a pizza.
That tastes more like that ills of the mom and pop one off pizza joint that's around the corner from you.
All I think they would absolutely -- the ballpark I think the market is right form they can deliver in thirty minutes it's it's revealed.
Price right and if it tastes good off I think the.
It doesn't tasting good and things like college dorms everywhere right so yeah I agree with you but apparently the -- a little more garlic -- -- that was according to his claim monotony.
But they really -- there -- recipes a little bit.
The shares hit a 52 week -- Morgan Stanley says.
That they are on the way to recovery there carrying in their debt no problem so we'll see dominoes -- up -- -- we'll turn around.
It did -- -- a cardboard no offense that.
-- -- -- -- is is he now luncheon Yum! Brands is as you know the backing of a great company -- Pizza -- so you know Domino's has some ground.
You big mover today actually -- going to be Barkley is gonna buy them for 25 million.
The LaBranche traders I love -- was down on the floor -- stock exchange so.
There a designated market maker they just sell the business to Barclays point five million stock tumbling 46%.
Last I checked.
Good guys though they deserve a lot of our viewers not exactly say I'd rather have a mom pop pizza shop I would sue.
You order a large pizza in New York with a number toppings on its like 36 bucks.
-- one large pizza.
Here and that's why you utter dominance let's look if it was good that's on saint Domino's has that advantage they can -- I have written a lower cost.
-- but they just don't have the taste out that you get that down I think that hasn't really up and it's isn't isn't isn't see.
We'll -- and -- -- there's nothing -- -- -- from New York Wall Street strategies founder Charles Payne joins us.
-- in the.
I'm rocking -- buy feature that was my number one pick -- November newsletter I love it -- feel -- it's so I.
Yes let's not products out to right at the CES they showed some of the coolest new product you're almost done though they were all yeah yeah I -- where they were on their deathbed.
You know what they're one -- -- thing things that we have going here we Lehman note is that the demise of the great American business I would Eastman Kodak and -- two companies you know what happened in nine years old.
The reason I -- -- at the levels it was like ground less than -- -- on.
Was I just think they're going to be required to be quite honest at the it has achieved named Moran for some overseas company to grab up and slap their name behind it you know the -- when it.
The Chinese bought IBM and you know did the -- low low low Lenovo Ali and I for something like that anyway I just think it's so it's I think the name of a loan.
It's -- maybe 6000 share.
So that was the reason I like to personally to be honest with it then it was it was so cheat.
Took an us against them at this LaBranche thing yeah 109 years old now -- point five million no big deal.
But again we keep seeing these great American companies that are -- I know we talked about -- once -- -- -- -- -- I know you don't really think it's a big deal it's a big deal for me at that bothers me a lot that -- I don't know -- Adams analyst bought as well again that that it's happening it's that you want -- believe that I I have a report on my website.
About the -- -- -- 2000 may now be updating of 2009 what is your website by the W thestreet.com.
But we talked about the fan and I don't know how -- how do you stop it and not -- -- a global economy for a global world.
Would you -- -- -- -- it would our companies have to execute that well bit right we can't that we can do know Bob Hope Barack Obama's stop.
Illegally but you know what it's -- should've been there should be a wake up call listen guys you know what everyone else is catching up -- -- catching up through hard work and quality of the things that would have on top.
I think our company's -- for a couple of decades and our opinion he's our sport by the three you like today let's start with the US global -- global -- that's it's an asset manager you -- -- hot stock I was -- 33 all sucked back in 2006 they invest in gold natural resources emerging markets global infrastructure execution had been terrible.
But today it's on the verge of breaking out -- really convincing volume.
It's the kind of stuff you know -- -- twelve -- to pick -- up here against fell to fifteenth it's going to be up really nicely probably be most money managers for the year so that's serious trade.
That's a trade in the caveat there's a high higher than normal risk.
How do you analyze a company like that I mean I guess that that would be my question from the outside -- sound like -- typical industrial that you look at and you can look at the books even really understand what they do.
Well I understand that they are focused though on their investing in gold natural resources emerging market and global infrastructure.
I know those are really hot sexy is this place -- and if they execute.
Which is always a question mark and again these guys have not been executing over the last year or so -- that consistently.
In this stock could take off and I also know these new momentum darling in other words one yeah -- that was gone -- of people buy them a reason.
If this stock at around fifteen bucks it could take off on its own.
Just because you know what now to quote unquote hot so it's kind of risk reward play for you you have a little little bit -- because the upside is so much you need to doesn't downside but yet so that's why try to add the caveat that is higher than their average -- -- -- is sexy places Las Vegas Sands and you know I do movers you do in the morning idea on the afternoon.
Just about every other day Las Vegas Sands is on either as the big -- -- or the big winner this is.
Over volatile it is -- -- to Oman and the problems as you know it's in my cal play right there right gaming in the -- -- had some serious issues but last year they elected that they had an election there and they elected a pro business.
Got to run the place.
And China -- was been lifting some restrictions you know -- to.
-- -- People on the death people Vegas -- kid love people coming from China -- high rollers and loved again and I.
-- -- -- China and actually stop people from one of the council.
Frequently and but that's not really working -- they start to look that stuff in the opener of a cal right now the infrastructure here like the hotels are ratty.
And now it's overcrowded assisted by -- fish that place you know I mean I feel back from Vegas that's why you have Steve when a whole lot other Smart guys over there.
You -- out as well who's naughty and who's in the town who's not an account because it and that's really you know ID law -- as -- is right got it right lens and not let.
Let your heads to Vegas right for these big casino and hotel up around resolutely your -- -- -- in Vegas but your heads has to be Macau are you.
Despite the fact that Wynn opened a beautiful yes you know and the young core the the fact of the matter is when that's that -- win moves it's because of China Yahoo! account.
And last but -- -- ENER yes.
This is a this before having GA gets its -- and it's -- but it keeps hinting and again that what we've got a company with a very sexy story.
Fantastic potential imports occasion.
Now that -- at level of risk.
I've I've always believed there was going to be taken over because they have they had their fingers and a whole lot of different -- -- within the solar.
Commercial solar space.
So the fact the volume to me acts like something is going on you know like you talk about movers most of the time.
Bought my theory is almost everything has -- Even now.
-- must -- the volume almost.
Everybody that's series a perfect example right why didn't run up yesterday what did they know did they noted that Clemens -- they weren't really.
In the way we catching -- up -- watching the volume at home.
You know I'm not you know in the was given me a call but device is talking normally straight three and 2000 administrative.
600000 at 1 o'clock in this breaking out.
If something's up you know -- -- -- it's it's amazing it's really is amazing.
How much do you watch options activity might like what happened with Kodak and that fluid.
I I look at it after I look at -- did the volume now say OK now let me go to options I mean on the bigger -- sometimes people these large institutions is in the -- of things like that obviously with the smaller name as a means a lot more.
To suggest that maybe something's going -- but I can't tell you guys that last year.
I actually -- gonna go to -- about this and let me -- special.
Almost every major story you can see that two days before 48 hours before the caption.
Options volume you know it's amazing inside on I guess the SEC looks into government.
I know just having conversations you this morning this is a bad idea that to tax these banks -- -- did you get in this -- would have you wanna call it.
On down the road it's gonna come out of our pockets of some points on -- -- It's gonna come out of our pocket but there might be a greater issue here for capitalism in general and -- the idea that.
That the president keeps going in deficit the reasoning is doing that is what he's trying to set up here is the ability to -- -- -- in the business.
If the deficits to -- so instead of reining in spending which is what the message should be.
Two -- by the way the first quarter deficit.
You know the the Obama administration -- -- deficit for this year to one point five billion are retracting one point six right and in a lot of things have to having the -- -- get the news out of there plants and so what happens is that a slowing that down.
Right now debates because they're the easiest targets but when oil goes up that have been easy target windfall taxes -- aren't right.
But the language that kind of language is very disheartening coming at him -- my commitment is you know to the American to recover every single dime the American people -- -- despite popular -- spent didn't know until the -- all but that's what he's -- an early -- -- only -- I heard it over the disputed.
Punishing the people that paid back the loans that at the American.
So let me.
I don't your house and -- -- -- have been -- -- -- by the way Chris we're gonna need some more money from you for what the job as a -- did -- Didn't they don't have the government would -- -- -- late with payments.
-- I'm I'm not that's Smart and I get that I don't think gets sent down.
Art because -- doesn't telling its politics today and he got them into the White House in the first place and they can stoke this but what they ruin what they don't get is that none of this is helping.
Really didn't tie up -- -- atmosphere of this anti bank anti rich it anti capitalism.
Consumer credit down two months and -- down thirteen out of fourteen month banks aren't lending people are really suffering.
And and this is the focus you know.
And that now we got to go to break with the worst part about it to me is Jamie Dimon was an advocate of this office and was how could you do that he's gonna got I mean there's no ways in his.
Oh no he's already come out you know and -- so you just lost a really big advocate.
Yeah I felt the decision -- -- -- patriots are by the way they'll love that title laid down I.
Giles likes it -- with its I don't know I thought yeah that's Republicans say it's definitely.
Then seven I'm not a word and I know that facility to -- possibly -- -- -- and -- -- -- you know we met back.
Think that the.
Well that's good does that come out of that -- know from oil -- because he's fabulous.
Real worries supports us so well as they -- report a lot of oil companies need to come to -- -- wild idea and you.
You good James Dean in giant and he covered in oil camera eleven area but walking through the oil fields -- heals all -- -- you know.
-- -- -- -- -- Taylor caught my -- you're talking about retail level what's important retailers discounted lifting of the products that they want -- have a customer service then something that I think.
Has really taken a hit not out of this recession but in the last 20/20 five years in this country I think there's really a lack of focus on it will not.
For a few companies there was a survey put out there by the an RF foundation.
American Express is well -- this customer choice survey was a fifth annual time they've done it fifth time they've done it in for the third straight year.
LL being one -- to get a top five -- number five comes in QVC.
On them before it was Amazon.com.
And look at the theme with these names as I -- in the out number three zappos.com.
-- -- -- -- Overstock.Com.
And number one as I mentioned LL be a lot of online retailers on there aren't there.
Yet what you know what they got to be good because I'm buying your product without touching it.
So I need to -- -- to call you and talk to you and you need to explain to any Indy they're also I -- LB has been a catalog.
Business for so long that it's no surprise that they have mastered this okay how old jeans that haven't bathing -- -- how little you know and and the answer it.
There rocks are about to about returns and popular asked stern about ordering online because of that they're they're worried about having to return something wealthy have great reputation for customer service who will be less concerned about that -- -- be comfortable ordering something knowing that they might have to return it.
Around the top ten Coldwater Creek lands and JC penny comes in number nine and Nordstrom and Coles Coles seems to doing everything right rounding out -- no.
Aren't just two and we talked about this nor -- has never left their service drop no matter what through this whole thing we so they did well this holiday season.
Nor -- service is rock star.
-- know what LL bean is doing right yeah.
Keep -- customer service at a level that puts into the top of this list vice president for customer satisfaction Terry Sutton joins us right now and -- I'll just throw that question about it you.
What do you do consistently that enables you to be at the top of the list like dad.
Well you know I think that what differentiates.
Our service is really the heart that we put the -- -- In a lot the company -- tight standard -- that that is the consistent -- -- What we have is really an incredible amounts are behind -- -- the executions.
And I attribute that really to our long history and culture that emphasizes.
Treating the customer like we would expect to be treated -- it's -- simple golden rule in action.
We we we respect it L wild golden rule in fact and and the quote is itself good merchandise.
At a reasonable profit -- customers like human beings and -- only come back more.
I for one can't stand the scripted how can -- help you what size -- you garbage now.
-- here's -- thing that you have your people have to be so well trained in the product in order to answer all my questions how do you do that.
Well we you know we do spend time on product training obviously but we also have.
These sources at their fingertips because our product line is so broad that isn't possible -- you know the person you called you know all of us.
He's now -- the -- -- what we do is we just used the recession that we have.
You know electronically so they can tap into specific product details.
You know very.
-- but they also get trained in -- the constant -- If you're talking about outerwear for example will give them training at about layering and we want to have to talk about every single -- out they would have to talk about confidence.
They'll look at it that way that they can be on.
Terry have you noticed.
Like I've noticed in the last 20/20 five years the customer service -- -- has really taken a hit.
I mean it seems to be more and more that.
On we're doing a big corporations here that don't you use the individual is very important -- they'll just move onto the next customer review disappear find it isn't worth their time.
They'll find somebody else.
I don't I don't think but what happens if they don't make the connection between.
The service experience.
And -- customers loyal man and so what you know what I see out there is that -- -- The customer service department has just purely.
-- -- -- they go -- care cost cutting you know in a penny wise pound foolish way.
And that's why you end up -- -- meeting that's what have I the -- those dreaded phone trees but kind of robotic -- -- that manages your average handling time.
-- it don't allow outside -- -- -- -- have the flexibility the culmination yes really key for -- you know use your judgment that the.
And very gently and I think out of the box if the problem the consumer when the consumer calls.
He or she doesn't actually even know what they're looking for so they make it that much more difficult.
-- no not I don't I -- here I mean.
They usually have a pretty good idea of what they want and you know -- it's just a matter of meeting that need I think.
On the on the flip side when you call with a problem that's where it gets trickier to read now nine is calling -- product mean especially the direct channel.
Gotta have a catalog and it looked it up online.
Pretty much know what they want.
-- I can't say how many times Terry I mean -- half dozen to a dozen times on the customer service line.
The -- can't help me you know and that's -- is not I think she's not now not helping -- anywhere.
You know I can't help picking up that would probably get -- -- yup let me talk to your superior disappear comes -- says well we should take care of that right away because he's so they don't have the authority of the responsibility to be able to make that decision.
On Iran now do you.
Look at numbers in terms of the value of keeping -- customer vs the cost of going out and getting another customer that -- those numbers are very important internally to a lot of -- out.
We we absolutely do I mean we know the -- value the customer base and he is keeping a customer especially in our business where you know we're spending a lot of money sitting out catalog.
Keeping a loyal customers worked so much more than having to go out and back they'll -- customers that you alienate so.
It's that it's that simple equation for -- speak clearly via a link between.
Excellent service and customer loyalty and top.
-- problem -- -- customer service these days is that your call travels across some ocean to some dark corner of India.
Where is your customer service center.
We are all and we have -- -- -- all and me.
Though we have right here where the companies accounted.
Yeah I don't -- -- right I mean that's you know all of our reps have been lit up a longtime Clinton and they get a culture -- get.
They'll be they understand -- list.
And they they're proud to represent him out in the postseason they -- -- -- work you know it's great you know if I don't.
That is a lot like look Charles tell us and we just had his studio is -- was talking about with the the old school.
On tried and true American company that you but when I was in the corporate finance car heart was one of my clients and everybody loved working for car art.
Here's a company that have been around a hundred years.
Very local oriented and that's going away I honestly think that has a lot to do with the fact that customer service is is an import anymore because nobody feels an identity.
With that company and product.
Knowing where -- 98 year exactly.
So you know it that really means something you know we have a -- And what -- the reason why I asked where you're located you know and connected to the company is because.
Yeah customer reps can get up from -- C and actually go find this letter in the warehouse -- -- -- -- question about it.
And I think that makes a huge difference as opposed to somebody across the ocean trying to make it up -- -- Well you know and I've and I've reached.
Customer service jobs that are clearly not here.
Is there that you can tell that there running through I can't script.
Trying to get to the right answer and to paint.
Pain it's painful it is.
But Terry congratulations on your -- -- son vice president customer satisfaction for LL bean in Auburn Maine thank you thanks and best yet and I.
And yet any colder month the order some.
Sweaters on and at themselves he was mean -- somewhere around you know getting hadn't been -- a 1006 period Edmund it's.
Today that a lot to get -- show and we live next go anywhere.
-- wanted to make sure -- got it right that time.
-- -- burns of the few moments left we gotta talk a little about retail though we talked about jobs.
You talk about bank's retail numbers out today Scott -- senior director of consumer.
Caught economics for Moody's economy dot com joins us from Westchester PA -- good to see it.
Good to be here a little surprised were you by the numbers today that came out by the Commerce Department -- 3% decline -- point 3% decline.
For December when we were expecting a point 5% rise.
Yes it was definitely a downside surprise -- -- was partially offset by an upward revision Q2 data for November.
In November seem to be a -- then in December what gives with that.
On yeah that was a little bit of a puzzle too because the retailers seem to be suggesting that that they did better towards the end of the holiday shopping season.
But I think part of that has to do with measurement issues and the way the government measures the data vs the way retailers measure it.
And it does look like it was but decent season.
Especially compared to last year.
Is it because a lot of people went and got those sales earlier -- got a lot of shopping done early because there's all these threats this year and that image was going to be behind -- get what you wanted and so everyone ran and got everything.
It is certainly appear to be some of that especially in the electronics area on the electronics retailers had a big increase in November.
Corresponding large fall -- sales.
In December so that definitely -- seemed to be some of that.
Scott -- you make a local post holiday blues then for these retailers and mean and a lot of shed a lot of these sales that we're seeing.
We're gift card sales now people -- gonna come back in India of being -- cashing in those gift cards and how do you see January and February playing now.
They're sort of good news and bad news for retailers from from everything we can hear.
Retailers kept their inventories in line and so they don't have.
As much -- home Christmas holiday merchandise and -- out as they have in the past years.
Now that's probably not good for top line sales but it's definitely a plus for margins and profits.
What what did you think of the little bump in up furniture and sporting goods it towards the end of the year.
Furniture offer the housing tax credit.
On yeah I don't think furniture did all that well but but to some extent you know there was -- -- of home sales late in the year than that may filter through the furniture.
Sporting goods I think it's largely -- comparison issue they did very poorly last year.
And so it wasn't all that hard pressed to do better this year.
Given the fact that you had December in case -- Thomas before the show.
-- just last week December US chain store sales were up two point 8%.
And -- for the season of won't point 8% and it seemed just -- -- that.
Wow that that bodes really well for a good not only season but a good December and this report today seems the flip -- that.
Well but -- but that again comes into how -- measuring the -- because the chain store data is measured compared to last year.
If you look at December retail sales compared to last year they were up quite strongly.
Because sales fell about 3% from November to December last year so we did get -- -- pick up a year over year growth this year it was the month month growth.
That looked -- Consumer spending 70% of our GDP so we need people to get out there and shop what do you see then going forward what sectors are gonna win at least in the first half -- 2010.
Well to some extent I think it's not going to be consumer sectors on consumers are still struggling with.
10% unemployment -- Difficult access to credit.
With well below its peaks consumer spending is quite constrained right now and it's gonna grow only modestly.
It's going to be other portions of the economy that are gonna need to.
Contribute to the growth until we get sustained significant.
-- -- Scott real quick one of our -- Ben in Virginia wanted to know -- rising gas prices at the pump how much do you think that will affect the consumer at the -- -- This -- coming year.
Well again if -- dual impact because on gasoline stations are part of the regional industry and so when gas prices go up sales of gas stations go up.
Obviously other retailers suffer for that though because that puts -- an additional constraints on consumers' budgets.
And I think that in net higher gas prices are a negative for consumers.
Scott thanks so much your being with us it's got my senior director and -- -- -- our economics for Moody's economy dot com that's it for us.
Markets Obama's -- -- points breakdown.
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