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Let me -- jocular and Franken -- and -- very limited -- -- now he can't just go to your local.
You know Stop & Shop and yet.
Calcutta designing these are limited place it places as well like is it everywhere they go hand in hand in that they don't make the hole and onto boxes which is what you're saying if -- -- look.
Tomorrow I haven't they have it but but -- -- is don't have -- because they don't make a little bit and so most there was no order but probably because you might as well intravenously just take sugar.
Or chocolates better yet put chocolate syrup and Venus flee into your veins and have that -- -- brown number five who have candidates had.
Our hottest selling boxed out right in their -- you know what it's good and that's all that matters to me in which -- -- more of it they don't -- celebrating county judge today and Jim those great quarter for then that's -- I don't get its Cheerios as well right big news thus far is that the senate cannot senate banking committee cleared.
Ben Bernanke for his renomination which will happen after the holidays but little touching -- was sixteen to seven -- one Republican descendants a month.
Descendants this sentence -- dissidents among their ranks -- -- and fix Democrats voted no.
All right and also banks in focus today for sure Citigroup yesterday a last night actually the government -- now we're not gonna sell at five billion.
Dollars' worth of stock in Seoul this not to get hit it was down 7%.
Earlier today from where -- closed yesterday on heavy volume after hours.
And early in the day Robert -- is here to talk about that and also Bank of America what's going on with them.
After several attempts external -- they found a CEO and certainly -- that does not Count Dracula and much too aren't what they need for everybody is counting -- could do pretty damn good job of there with you today.
The county got a lot of -- Ellis started yelling get the B and be here.
The star Ben Bernanke said sixteen to seven not only is it like he had.
The sadly majority of the jets games at center of the past decade seem to have sixteen to seven scores -- you know gotten up for a second term senate banking committee yeah we did it was -- just facing the votes coming out though you're wondering if -- gonna get out of the no votes.
-- we found out who they were going to be early on.
But I -- you did have six some Republicans Richard -- Shelby interestingly he was a big proponent.
A Ben Bernanke -- his first appointed four years ago.
Now on the opposite giving you no vote Kay Bailey Hutchison also a Democrat Jeff Berkeley from -- -- the lone Democrat to give the no vote.
-- a lot of controversy obviously his role.
You know in the lead up to and failure to foresee the collapse that are near collapse of the financial system and the economy in his response to their early signs of that also under.
And then of course the TARP the bailouts a lot of controversy there so it really a controversial -- Four years he's had as -- -- the Federal Reserve.
And so going forward you can expect a lot of -- -- just look at the chart of the dollar.
-- since he's been -- -- his predecessor Alan Greenspan as well certainly it means to be taken to task and pretty so.
Unclear right release a filibuster potential with this all absolutely -- -- Sanders said.
Demand skin mean yeah handers race -- that was in that committee voting no by the right exactly what's it was one of does John McCain.
Let's not let's not filibuster was not wasting what time the he's gonna he's going to be my -- going to be it for us this long thing.
Here -- could do all the self.
In the you have all of these gyrations that -- that go on Capitol Hill for their own benefit by the way.
All let's stop wasting time wasting that those resources uses resource somewhere else -- -- and let's move on what questions that are longer than the answers you don't on my body let's go let's go get him and that quite literally wasting time for big question is if not him all that's a great point I know everybody thinks are my favorite is back a monkey could do better than -- -- we couldn't.
You and I could do -- -- no you couldn't.
You know I don't look at all aspects of luck Paul -- All bought and half the number a lot of at a healthy inactive for eight against Paul Volcker mid eighties and yes indeed.
A lot of people voting against him so all right you made up points tomorrow we're gonna forget who voted -- who voted against.
And we got to move on LAS it's also a lot.
Of uncertainty in the market in the a lot of traders investors watching that today because if you don't know if it's not him Tracy who is -- -- then what happens next to the markets have really.
Hard to invest -- a time long term anyway.
If you don't know what's gonna happen but I sat in the uncertainty do you do have some certainty now DNA -- at that has to help because as we all know.
But one thing markets aid is uncertainty out we get a little more certain that we -- Ken Lewis was -- -- -- step down at the end of December of that have been announced back in September so Brian when -- -- We've been one of the front runners internally fifty years old there that's one of the criticisms may be a bit on the young side there.
It it would use they had a consumer small business unit he joined the bank when they acquired Fleetboston five years ago.
He's going to be Eusebio winning out -- the chief risk officer Gregory -- by the way the journal saying Ken Lewis had favored pearl is 61 to take the Helm next.
And not the younger -- -- although in a release today of course politically correct saying he has the got to take its board.
Got a -- a yacht out.
Keep them on the compensation is not going to be -- for one that's going to be a big issue because Robert -- Bank of New York -- we -- -- one of their top choices on Monday said that wasn't gonna happen.
I compensation was part of the issue there.
What's interesting to me is part of the reason they let Ken Lewis goes because they said they needed some from the outside he was too close to home.
He didn't have a whole you know good clean picture of what was happening to many personal.
Too much too much personal interest in us now here we are same place right the other thing you -- when the search was going on let's not forget they would still this like TARP money on the -- right.
So through all that they didn't think -- get who they wanted could -- be good guys off that we don't want anything to do with the government.
Lo and behold they pay it back nine but here we are -- I wonder if the search would have ended up differently had they paid back -- first well -- -- And looked and on this show you guys were both out last week that would -- our and we had a head of Korn ferry on who is he aware that the leading Clijsters of CEOs globally and I asked him about this he says the search has gotten.
Easier and just now -- after they pay back taught at Vega but you're right the question is had they allowed more time.
To go maybe just said you know like can can you stick around through the first quarter -- -- about that I think he would have been willing to do that we've heard a number of battles to -- today certainly was saying he actually thought Lewis should have just been kept on saying no we're not accept your resignation.
He's Iraq they'll -- is also what's interesting to note die UNC finance professor Tony Plath closely follows B of -- interesting article and not deal journal on their website -- the fleet Boston guys are now in charge.
Two point hand there's three other members they were Fleetboston executives there on the board the new board -- fix cobbled together.
-- -- headquarters stay in Charlotte which you know this is actually a conversation I had I was with some folks last night does this day in Charlotte does and eventually.
-- this way and you got the Boston contingent actually Boston they've got -- -- building -- Bryant Park here yeah that'd be of a tower just don't -- for muscles and youth.
So a lot of a lot of questions being answered and just lastly in a yesterday got a -- Brian Monahan.
His hands maybe a little bit dirty we'll find out when Cuomo's investigation of the -- its takeover.
What does all -- that but he also played a role in that earlier this year so that was another reason I think people are looking for outsiders he would not be tainted by the -- taker not a great cast out of that -- -- it results in 2% of bull.
Rabbit -- rest of his life and I know -- -- accountable at the end of that kind of 2%.
Paul Nolte joins us right now managing director at Dearborn partners and Shiites out.
Talk a little bit about this market and all hall of Google does start with the news of the day what do you make of Ben Bernanke.
And this would be voted and it's.
Sort of much ado about nothing we thought this is gonna happen the -- on -- moving on not really moving one way or another.
No I think it was a foregone conclusion that he do so a lot more posturing from the more on the political side than it was anything you know so it it was more for show than it was really about anything that Bernanke's been doing.
So what do you think then let's not get back to the market now.
Markets kind of not reacting although today we're down hundred points not sure it -- -- anything to do with Bernanke's renomination.
Market still on shaky ground we're not seeing a whole heck of a lot of conviction from anyone we're certainly not seeing any volume -- we go from here.
I've we've -- and -- trading range now since the early part of November -- probably gonna stay there to the end of the year I think investors institutional investors individual investors that are in I'd probably mailing in and at this point in just trying to -- -- the gains make sure that they stay through the end of the year so.
I don't think you're gonna see much of a break out of their trading range the economic data has been okay.
Nothing great nothing terrible to really shake -- the markets at this.
Point you know you look at some of the sectors here to -- Paul you got banks have just been in a flunk.
For a good four months.
You've got the energy breaking -- the downside.
-- -- -- little sector rotation here maybe the leaders of the first five or six months of this rally now people are starting to move into some other.
-- There has been a little better rotation we've seen the rotation coming out of the banking side and I think really the commodity side has been a function of the dollar we're starting to see maybe a dollar bottom.
We're still very early in the game as to whether that's.
Just nothing more than a bounce or a long term change in decline in the dollar but the dollar is really called the commodity markets to this point part of the reason why we've seen gold sell off as well as the energy complex.
We've seen a little bit of a rotation -- some of the -- some of the consumer stocks.
But again I'm not sure if that's the beginning of a new trend or just -- -- a bit of profit taking in front of the end of the year.
Well all -- hearing is that everyone is out of the market these days are you still end.
We're still in what our for our individual clients were a little bit more on the defensive side.
We've got a little bit more bond exposure.
The normal asset allocation would be so we're playing a little bit more defensive.
We think that the the ripples from last year's meltdown are still being felt in the financial markets and it's going to be some time before we really see the full impact.
So we could see the market straight sideways -- down a little bit so far individual accounts were certainly a little bit more defensive right now.
What he's staying away from areas like retail as we head -- -- first quarter you know early part of 2010 people.
Giving us their fourth quarter earnings.
We've been pretty under -- really in the financial sector and we've really kind of struggle to see where the that the financial sectors is going to go we don't see a lot of value they're really more on the growth side.
Although we do have some retail holdings we are under way toward the consumer.
In the financials are our two biggest underweights right now we do like the technology sector.
And we think some of the can the economically sensitive areas not too bad but again that we're starting to -- a little -- to -- -- but we do like technology a lot in this area.
Be worried about all the political brouhaha.
Coming at a DC are you worried -- about how that affects.
Sectors going forward healthcare in particular drug stocks things like that.
-- -- We're kind of ambivalent on -- healthcare area I think one of the things more than a health curious what's gonna happen to taxes in general.
We've been in a pretty low tax environment now for -- the last few years -- if we start to ratchet up capital gains.
Taxes on dividends.
Those types of things I think -- -- won't force investors to rethink portfolios.
And make shifts in their portfolios may be more toward the municipal side.
Again dependence on what happens to the taxes I think that's going to be even more important and then maybe passage of obamacare.
Paul good to see -- thanks for joining us today.
Thank you very much night's stay warm out there in Chicago Paul Nolte director at managing director -- one partners.
Out the windy city you know we've got a lot talk about today on the show boy yeah.
-- the biggest and I think the coolest thing is that CEO Harlem Globetrotters is here and will be with us -- the end of the show.
Com and just so you know all we got some who wrote this about hot wheel cars -- yet Jason oh.
Which -- like me -- and look under discussion is not complete without mentioning.
Then -- -- his visit to Gilligan's Island yes and this Saturday in -- soon.
-- one of the guys had an Afro that was a superpower could take anything out of -- after only meeting -- -- and everything it's doing now that was a superpower.
Great great stuff out I -- -- stuff.
Are a couple of hours -- -- -- and a lot more.
But backed by business dot com live Tracy Byrnes Chris Scott or 1215 on the East Coast 9:15 -- -- good morning to all of you out there.
Health -- still on the table we got to keep talking about it.
Changing by the minute public option potentially gone.
Medicare buy in who knows doctor Margaret Lewin medical director of synergy help is here to help us get through all this.
-- -- you've seen eleven minutes and at this point there's not a whole heck of a lot left in it.
There's really not -- unfortunately that that Medicare buy an option is probably not affordable.
To either that participants -- the country if this system that's already.
Underfunded and has been since since inception.
It's due to become insolvent in the year 2017.
And -- add another group of people with preexisting conditions.
I think would really break the system it's unfortunate.
Because it would be a real opportunity in an important one for the people within the age group with 5565.
-- -- what am -- missing with Medicare now I don't really -- -- I guess I don't understand it fundamentally from the start I mean if you you pay into it as you go along.
The -- 55 and older and you can start drawing down on a lot of doctors don't want to use it because of the complications here and there.
And what I went missing about this and you say it's it's it could be going bankrupt.
Well that's why we keep going with.
The patients love it I mean politically.
I have I have patience is who've lost their jobs.
I have run out of cobra have lost -- hope of getting insurance because of preexisting conditions.
And they are -- -- months without health care and then waiting to turn the magic 65 to get in to Medicare where the premiums are affordable.
There are no exclusions for preexisting conditions and it's not perfect but it is it got sent to us.
For those people so why isn't working well what's the problem with -- why -- -- working now -- how we make it -- its underfunded and has been since the beginning -- there's a ton of our -- in the system as well because the bookkeeping I guess you can say it's completely.
Reckless knowing as paying attention to anything and so wit that that I mean LaMont is involved and now the -- if things -- good place to find money you know you got problems.
Well I think it has to be easier to find and then people are claiming.
Is an individual physician and terrified of Medicare and you know if I make a billionaire.
Consistently -- 'cause I didn't know the right -- to bill.
I could be -- under Rico and I am really afraid of billing and many of us in fact undercarriage Medicare.
For fear of being accused of overcharging.
-- -- most people if there are people who are.
Are causing a lot of fraud and abuse -- members have to be huge it's not little guys like me.
So in the most recent case where they are rested people were talking about millions of dollars and having been built from a single institution -- a single state.
I have to be obvious it's not the little guys like me that I contributing.
Even if I wanted to.
I couldn't possibly contribute much to -- He's now isn't this also is this a function of how.
That that Medicare is a big government run program.
That -- just run so inefficiently and if we had an even bigger government run program.
State run health care law that would also be run this inefficient light will be a great program for those who.
Who -- -- precondition pre existing conditions in.
And I don't turn 65 you can afford health care but what about for everybody else that now has the foot the bill for this huge even bigger than Medicare government program.
-- loaded question yeah.
We should -- as much fat as.
-- -- -- -- -- it what the answer is no data and found out this cool you've got to get young healthy people in your -- to balance the cost of the older.
So I would say -- I do believe very strongly.
That you need commercial mutant companies to compete with the government is does he think I think you need the government programs with the commercial.
So when you've got these two competing against each other I would hope that according to the American citizen of business we would have more efficiency and -- costs but it.
It's -- -- I mean unfortunately counting that's -- it works right -- -- strong -- going on we've sought already with the drug companies concerned.
Made a deal with a double we already see the health care stocks going up as this bill gets whittled down to nothing -- singing the happy dance because -- -- probably.
They're hoping that at the end of the day this is at least put off for a while -- they're rushing everything to the table.
We still don't hear about tort reform.
We still don't hear about correcting the inefficiencies in Medicare making it so I'm not sure what we're doing.
I don't think enough of us know enough details to really answer that very including the people in in congress -- here right.
Ireland to -- thanks for southern but always good to get enough you know what's going on because he -- very easy to get lost in this entire process it is and it's gonna unfortunately it's a Florida keeps change in.
It does we're down to nothing like a -- right now so I'm not sure what they're voting on an even members of congress.
Last night act on -- convert on Fox Business -- saying we don't even know what's in -- nobody knows it's.
Well you really it's very scary because it's up what will happen trillion dollars and forget -- spending.
Yes it is one thing that we also don't know a whole lot of ballots come are bonuses on Wall Street -- the reason why you you know one of things this.
Every gets all up in arms about it.
And a lot of times we don't realize that you know these bonuses are a huge part of people's income every year and that some people actually deserves the bonus is that they're getting many people on Wall Street -- that jealous about that.
We are a very please be joined by Julie -- regret a reporter for.
Savings dot com -- good to see it good sincere thanks all right that you wrote an article ten things you might not know about bonus season 2009.
Coming a little about that.
So we conducted the survey of 635.
Different finance professionals -- -- ranging from and -- -- bankers to asset managers to see what they think about the bonuses this year.
And ultimately it seems that there just isn't certain about their bonuses as we are about finance the general.
We found that half of them aren't expecting.
Our season we found that -- -- them think their bonuses are going to deep grief for this upcoming building season with a that makes sense container market's been down the economy down the company -- work -- probably not doing as well.
Exactly once we are in uncertain Financial Times like this one bonuses are.
Clearly sometimes the first to go -- -- to shrink.
And become one of things -- you have been talking about who are ill will people spend their bonuses at they as they had previously because you know.
You get a big bonus to go -- -- by the -- right.
Yeah I was I think are there are yes I wanted to -- right and I.
Dot com will win that bonus comes -- you know go shopping for it yet but are they gonna spend it is much.
It's interesting and New York local retailers would do well to know that you know these financing Eric may not be barging down the door.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Out of our numbers only 3% -- they're gonna buy a luxury item so clearly we're not going to be seeing tons of sales tons of biking down the doors come this Christmas season.
I mean there's a reason why.
Tiffany's opened a store.
Two blocks from the New York Stock Exchange like two years ago there's a reason because all those guys down -- big fat paychecks.
And it against some of the little blue box to take home button and it's not happening anymore to take some well -- on Sanjay Irish.
So what is it just the north of because nothing we -- to his.
-- -- -- -- the attacks revenue -- just been just crushed last year will be this year again because so many of them live and work in -- -- but I have a good friend.
Who law works at a desk in Charlotte for you know what what was Wachovia.
And so that there are people all over the country that are either making really big bonuses are not making -- bonuses right.
It's true it's not just in New York -- even though we how Wall Street here and we see mobile local regional areas being backed by Wall Street it's happening all over the country and you mentioned earlier.
In your opening speech that a lot of -- but these bonuses are actually salaries which is true firms keep salaries low in order to account for bigger bonuses at the end of the year.
So who knows what's gonna happen.
Well that's actually very scary when your livelihood is dependent on and it's -- instant -- Now are you finding that people are not getting bonuses because of the PR act act aspect of it that it's just not really cash -- to give out big.
Fat checks exactly right after Bernie Madoff -- came out I guess a year ago at this December it was considered very -- class to show that we're shopping at -- you know let her adopt guidelines say -- -- -- you did please your purchases in brown paper bag so he went show that you actually spending money.
I think that's still sort of the -- -- today.
Nobody actually wants to be shown receiving a bonus because the public is so what sat so outraged so what do they do to get the politicians involved politicians say to their constituents well we're gonna try to get these finance firms to lower bonuses to show that -- -- is actually going to benefit and so we've seen a spiraling.
-- the domino effect in back what -- and they connected -- -- you have to go to parliament Sachs got an and I support loosening nobody.
Deals back then but then got Alfred to get gun license is because they're afraid that if they get that cash bonus -- coming after them now they're getting in stock instead.
Either way -- Nebraska makes a great places of bonuses and -- it.
I'm a bit -- -- of course depends on how they have not define it -- -- -- Steinberg thank you for being with us reporter -- -- dot com it.
I think Bob's right if you deserve -- you deserve.
That this is the thought of but Goldman Sachs fixed income trader in accord Giuliani suit with a with a nine all the -- gangsta style you know and and really frightens me -- go to commercial break that stuck in my head Jeff Flock is gonna join us when we come back he's a master card he's he's run -- around behind the -- got a lot of -- -- a play -- -- problem globetrotters gonna -- legislators will -- you saw this.
-- -- I'm your -- you did -- Spend the money that you might look like they can do that in the suit.
Back at foxbusiness.com.
Tracy Byrnes Chris -- 1220 for an East Coast ninth -- -- on the west the morning market sent about a hundred points.
At this point we know that Ben Bernanke got his confirmation.
Why are -- statement from the senate banking committee said he's now being sent -- this well from the senate which won't happen of course time after break.
But sixteen to seven vote it was it's touching -- their -- -- that one.
Democrats six Republicans.
But at this point we -- go out to Jeff Flock swear tackling has the best assignments Jeff Flock now.
NASA card behind the scenes.
Jeff tells -- to -- I feel like -- at the auto show about 22 and -- REIT deal because go ahead I am in the war room after an hour and a half that was to be a disaster from a network this is where they'd manage it.
But when you open the curtain.
You see what it's almost like Nash sat out there are able to show us -- that -- Bob with me about trendy.
Who is a senior vice president after what I look at.
-- -- what you're looking at as Mastercard's operational command center.
This is where we monitor -- world class network in the thousands of connections that connector merchants -- bank walked me out here if you can of course we always -- to.
Go behind the scenes -- this is the first ever live broadcast from inside.
That the heart beat of MasterCard spot is it true that every.
Transaction -- -- MasterCard network goes through this location yet -- that is last year we processed upwards of 21 billion transactions that we monitor from the streets when he one billion with a B yes.
Understand about two billion people have almost -- -- -- MasterCard what are these people do what they do at least so these people are monitoring all the connections on our world class network between the merchants in the banks and are also monitoring all the activity on our supporting systems like the clearing system in the settlement system great and before we get away I do want to show you something else is Bob looks as sort of the senate that -- like situation.
Where do you all of these things come through in terms of it.
-- -- -- come back in a room here it's a little out of here but yeah what -- looking at here -- this is our this is our computer room.
This is where we house what we call our server farm that drives our network and most of our support systems as you can see.
There's rose rose on -- yes yeah.
Very thing this is the reason we're here -- guys this is their busiest time of the year.
This is you know christmastime obviously.
Tends to be even they tell us the 23 of December.
Can be they're absolutely busiest day of the year directly yet Jeff what we've seen over the last few years is that.
The peak day for transactions is trending closer and closer to Christmas.
And last year the peak day for transactions -- MasterCard was December the 23.
Interest very interesting and I'm not the only one apparently only found -- but that I'm not the only one who apparently.
Shops on the -- third December but very ago.
They've got quite a quick question for for Bob there would.
Just in general.
I think there's obviously spending a lot on IT as there's steady being consistent throughout this recession that they've been able to continue to up their spending on IT because obviously -- -- companies are very interest and as well.
Chris has got question in terms of spending on -- obviously very important be up to date on this stuff.
Through the recession -- did you want spending on them from continuing to upgrade at that.
Oh absolutely we continue our upgrades to the network and our and our support systems throughout the year.
The -- recession didn't.
No no we're always we're always focusing on the consumer and making the -- spending.
Experience for them a positive one in making sure that our network and assistance can handle any type of volume.
And also they tell us -- final vote.
If this place blew up today what happens.
You can -- you you have the ability to route around that so any kind of disaster that gets you.
You're you're sort of almost prepared.
Absolutely absolutely besides this facility itself being built from the ground up.
-- -- a number of different catastrophes.
We have contingent back -- systems around the world for our court system.
MasterCard who knew.
-- if you haven't been looking through -- you you see my -- information -- critics here that little puppy out of it's it's not necessary.
On the well -- -- -- Palin America.
I'm sure you have the best of intentions you know but I -- -- -- purity here is that.
I would look to get a look at your account and the security here is -- that the White House which I noticed maybe say a whole lot now I think games like.
I did edited yet.
-- -- -- You know -- Missouri.
Behind the scenes look at the technology it is really interesting you know on just that computing power because it -- gets smaller and smaller.
You know its ability to generate that kind of computing power and yet you still see even in today's age its entire room.
Where the the AC by the New Hampshire is very it's very very cold follicle and it is here.
Is exactly why don't work there but at the same time we still have heard of people have been in the cards I mean there's still the scare is still out there -- hasn't.
And billions of dollars every year trying to prevent that 108 points is -- we're down right now it's about as much as we've been down all day long -- move in this market.
Unfortunately everything is down would you believe I have five losers today and never write that could -- come up but one good one.
Pier 1 Imports is up but how how often can you talk about -- Citigroup down today up over 8% when I last checked and we were talking about this earlier.
They they may secondary share offering that at a really low price for -- market was worried dilution of course is a concern.
Price it at eight point 7% discount to Wednesday's close now that Clinton.
Number four is -- -- -- in we're talking about having any nest eggs it was up it was run of running up to earnings.
-- pretty much knew they were gonna disappoint and sure enough they did five course in -- they missed Wall Street estimates now now -- had all the homebuilders up yesterday as well on that -- don't have those aren't exactly so we sought have nanny and led them mostly damn -- Carlos did narrow they reported fewer breakdowns but.
Going forward not looking that good and you know what happens when you don't give good guidance -- you miss expectations.
Number three -- -- credit cards Discover Financial Services fiscal fourth quarter earnings fell 14%.
Credit card delinquencies.
People are still not good phone into careers in -- democratic -- And -- because -- -- Capital One's rose and Dina is actually went down to do is still with 13% immediately down to 13% credit card delinquencies what's.
Going down either charge -- so that's good so that means eventually they are collecting I think.
So somehow making deals doing whatever they do to get their money.
This near -- my our Harley-Davidson.
Well always got credit issues -- don't they -- have a credit on that's really significant that I -- let you know -- fight that uphill battle for the longest time this is the go Americans -- on paid a great -- it was like in slow and steady it was like back in the days when it was good to uncle uncle -- but they would they get -- in no -- no issues yes.
Yes he's still have a Harley.
Definitely definitely and -- and put them on the conviction sell list I think it.
-- -- -- -- -- -- -- -- It's -- estimated retail sales down -- in front -- 40% at number one FedEx Dan Allen and now Jeff Flock again which is there the other day biggest -- navy -- The fiscal second quarter earnings fell 30%.
Even after lower fuel surcharges look.
Led to declining revenue nevertheless they forecast third quarter earnings below.
The whole thing was -- and it was a mess and many people think of FedEx as a barometer for the overall economy they do mean this theory is shipping stuff -- more stuff -- -- obviously making more stuff and buying more stuff.
And that's sort of the way you look at it and and that's not apparently not happen so we'll see what happens after the holiday season.
-- and tear away and -- FedEx.
Yet convinced himself thing that's like dropping two bombs and Nagasaki right -- -- that's like.
We hate this I -- not yet know when something goes on this industry in general not just talking about.
What's going on holidays and with any stop conviction sell -- takes a huge hit do you look at me picking up the scraps in that case because sometimes it just it just goes too far.
I I've gotten mad I'm not one of these guys election goes sift through the gas as well is still smolder Newton and you know one thing I -- -- is that companies that for execution just doesn't happen one time.
It happens more than you know -- More recently you've you've got to be a little bit forgive him because of the economy and it's it's extraordinary circumstances but most of the time.
I -- that the company mr.
street by large amount within the last year.
I'm going to be real -- many rabbis give the certainly holding unit to.
Let's face it I mean a motorcycle these days is quite a luxury -- -- -- -- ten it was on the everyday on our gold's gym into you run -- Jersey you know he had a Harley-Davidson and he's actually closing it and turn -- did.
And looking at that guy he probably bench presses the Harlem -- to me that's probably probably uses those as I mean what.
Could I know I have one Aniston yeah brush up back our national park map of Palm Desert looking at the -- Winnebago -- is up.
Winnebago if that's so what does that mean does that mean -- It'd -- -- so keep vacations -- you know Leon and it just might have been the case because I know that this streams that form the lose seven cents -- maybe they lost two cents you know.
-- -- But that's that's sort of the same thing discretionary spending.
Well I look at dumb but I General Mills today and that you know we're talking about an old school American brand deviate nice dividend it you know what -- -- steady as she goes.
-- great quarter a great guidance is well.
The first thought you like looks like it's one of those as well you -- -- great dividend it's not -- -- it's not sexy but it's just sort of steady she goes right with PM.
Since I guess you got to moonless night I guess I do have.
And -- change every day yeah.
-- -- -- I don't like PM more than -- because people around the world actually picking up the cigarette habit whereas people in America -- Philip -- or Al Altria the MO partisans mostly did domestic -- In the US -- PM Philip -- is -- the international parts.
I brother bad on you know the Chinese and on the getting richer but they did seem like American cigarettes it's good so -- like yeah like big that's not his list but he does like that lets you get an excellent job today that's and I.
C was the first one -- solution that is what it did they do Roxio and a few other things with computer they just raised thirty million dollars.
It's what a turnaround situations to guarantee getting better.
That'd be -- industry could be to street by 80% in September.
And right now.
I just think it's one of these thoughts that that technically makes a break up through ten bucks.
If you hold -- -- a few months -- thinking get up to 1415 those on which have been a huge for sudden turn.
You like arm as well they are and ArvinMeritor or do you think -- be more Parcells -- -- auto parts play but.
It's actually done fairly well this is a really good company.
And it's the same sort of -- at the last ones breaking up through ten and I think it's got a pretty clear shot to sixteen dollars.
Courses that -- go there overnight but I think for the most part it could develop a nice their step by chart there but the courts have held on pretty much they really.
That's yeah that the survivors have held -- that -- and ArvinMeritor I think it's a really well run company.
In the final one is river riverbed.
And this is IT infrastructure play.
And they'd be history three of the last four quarters.
Earnings estimates are starting to edge up just a little bit higher I got to -- it in this what I'm kind of believing it's also going to be taken over I think it's probably did take over play.
There's that 10% short position on the so not everybody in Wall Street life -- and their -- thirty inside ourselves.
For million shares and a tough.
Compare pretty competitive environment right except -- juniper and -- -- -- -- like us you know competitors to these -- it's still competitors but they -- -- be -- acquires fire there -- trying to get a little bit -- to your point there -- a lot of players -- this and I think this might be one of those areas we see some.
Pretty massive consolidate.
It started to see actually some consolidation intact little indictments against them I'll you know the -- -- drug did it did what -- and every day there's like a hundred million dollar bill or get a gain knowledge building you know that that's.
And it sounds like nothing right 309 dollars -- -- You know -- -- flocked to about I T spending their -- masters are obviously going to be a big spender annually and I T -- you get the sense that.
That companies are coming back and that's going to be more of a leading indicator although we don't hear that much about how much they're spending that they're gonna because they've been holding off for a while now to getting back into the game.
The -- for that massive you know return them because we actually this story's been around since 2000 you know when I T spending picks up to that yeah.
You guys you know and hasn't really you know and come back to the same degree but I don't -- it ever could I remember we built -- an office across the street from Goldman Sachs.
I spend top dollar you talk about I can write a book on how to blow blow up -- business you know I did everything wrong.
But that's what you're supposed to do back -- -- -- you know build a bit off this and they need to raise more money.
And I remember when it was also -- I spent too much for the website office and we -- bulls a fiber optics laying around that we paid like more than gold for.
Says side another -- will ever get back there but you're right -- anything that can help a business become more productive what's the most of them the most important -- buzzword in business right now.
Is productivity certain you know -- tonight I fired a lot of people how can I -- Hit that I say that -- -- -- -- from rehiring but take my time so you -- and some and I.
You came on complain about Blackberry and that parenting news coming from Blackberry that users the Research in Motion network is down nationwide.
But the -- apparently affects consumers not corporate.
Well let me ask you questions good that's why should only ended the day before you today and before you reported earnings couldn't that -- I imagine that -- I -- people already nervous because the last on the stock got hammered and earnings and it was a pretty good look at.
Could you imagine that that.
Well I think in agreement is in.
The yeah they're -- -- yeah.
Dave Wright so it's not a very good day in general for very many stocks out there -- Greg thanks sells good to see you on the back pain Wall Street strategies founder.
Welcome back to foxbusiness.com.
Live Cotter and burns here with you right now you know you always.
As needed to throw out random city out there in last -- they won't.
And heavy -- asked me.
Don't forget to download that fabulous -- for your iPhone so that you can watch us in Des Moines, Iowa which incidentally was on the top of MarketWatch is listed is surveyed at best US cities for business the Moines Iowa joining us right now -- Vanderbilt -- -- -- -- -- -- -- Ultimately that you're in the greatest city in America conduct business and why is that what I was so great.
Well we think it's a great city it's a great place to work it's a little cold the -- but.
But all things considered it's a good place to be people in New York with the Des Moines, Iowa I don't gonna get -- -- things that people in -- -- -- -- -- I was just in the middle of a cornfield.
-- if it's not it's like growing by leaps and bounds but obviously has some advantages -- -- -- that make business work there.
It has a lot of advantages actually it's a great place it's a great -- first place for business.
There's quite a few.
Companies that are players in the financial services industry like principle here and it's a great place to raise a family and -- -- -- to do.
OK so let's talk about your family now let's talk about retiring in making sure everything is covered for.
You did a recent survey the Principal Financial Group revealed some pretty surprising facts about things that are concerning people about their retirement these days.
Yeah we did this is.
We started doing the survey back in 2000.
It's called -- well being index.
Where we -- a little you know little over 15100.
Workers to try to get a sense of what's on the minds of the typical American worker.
What did you what was the number one thing that you found what what what stress people out -- most every day.
Well we found a number of things and survey this year one of the things that we asked was you know what -- the biggest lessons learned over the last decade.
And one thing that was a little surprising is that the thing that rose to the top of the list was the surge in gas prices in the summer of 2008.
That was followed by.
The drop in real estate prices over the last three years.
And the drop in the Dow Jones Industrial Average earlier this year to below 7000.
But -- those of the things that people learned.
But how does that affect my retirement planning now -- I can't control gas prices -- -- just presume they're going to be.
Eight dollars a gallon by the time I retire -- work that into the calculation.
Yeah that's a great question you know I think what people can do about it is I would summarize one of the themes that came out of the survey is.
As a bit of an awakening for the American worker into what principal calls an era of personal responsibility.
And people need to take control of their own personal financial situation.
And that's why when you see some themes emerge around new years resolutions you people are talking about reducing the amount of debt that they carry.
-- talking about setting money aside on a monthly basis and then they're also talking about the importance of saving for the long term.
And even over the economic climate that we've seen over the last several months and in the last year.
People recognize the importance and have increased the amount that they're saving for retirement.
Top two New Year's resolutions.
First look New Year's resolutions were made and broken right usually by march people have forgotten all about these.
What did you find people sit -- concept that Valentine's Day that's in the book what did you find about New Year's resolutions the popular ones and I don't know I I guess I would ask you -- you -- -- the -- but what -- the two biggest New Year's resolution.
It's the two biggest -- resolutions were I'm gonna pay democratic card debt and and set some money aside.
For emergency situations I'm gonna fund an emergency fund is -- -- one of the things that people learned over the last twelve months or so.
Is things can happen that can happen -- their job -- can happen to their health and they need to have some money set aside to take care of themselves and those in those emergencies.
Nobody said stop eating ice cream hot nobody we didn't see the diet.
Diet -- Rise to the Taliban.
I'll be indexed got three days in Atlanta that night live -- and -- -- the greatest city in America had in mind I vice president retirement investors services that the Principal Financial Group thanks so much review of that thank you.
Thank you Luke.
It's do you make -- -- -- no.
Well now that it would have break in period -- I live my live and it's clean living for me twelve months -- -- the -- but I don't making news resolution -- moment break all the -- I'm curious.
Well I attacks during halftime and it's caught my I am sorry.
But the estate tax this is driving me crazy -- the estate tax is set to go away and disappear in 2010 -- -- -- you -- Actually it's the best year to die if you're going to plan -- death.
Die in 2010 could then there's no state tax not -- -- -- be subject to capital gains tax which they're not subject to -- now but.
If you have -- big -- -- worth dying in 2010.
Well congressman to have -- all along about repealing is doing something and it not that we got -- they were gonna come up with a two month extension.
They can't agree on anything so now as it stands 2010 no state tax OK okay but.
Odds are very good they will come back into the holiday and do something that's richer active.
-- both the plan.
And you don't drive me crazy rapist and why -- and I continue this with coming.
They knew this was coming this happened with the bush and getting riled up all this happened at the 2001 bush tax cuts they knew it was going to end it was -- that we -- it.
So today's reports -- we decide to get together and think about it.
Congress is backwards.
How we suppose the plan -- -- deaths.
Oil oil loved ones' deaths -- how do you how do you actually plan how do you statement is there it is their tax or is it 55% -- when you come back in 2011 S.
-- plan anyways though right and he would it without you because you don't you don't know what new taxes are gonna come on board -- five years ten years fifteen years when he is anyways right so you just plan Ford and -- but its revenue Texans on.
To -- -- even when there's -- need to do about it.
That's not a -- -- -- right now on 2011.
The tax rate is set to go to 55%.
To remind you already tax on all these assets that's neither here -- there.
With a one million dollar exclusion per person right.
What it's it it could very well be changed it could be a 45%.
Tax with a three and a half trillion dollar exclusion kind of seeing what -- what my point is what do you do do you do something different -- Normally do yourself that you put them you can put them -- trust you can do -- positive things.
-- -- Do you think the legally not an amendment plan accordingly you move assets you push things off to your kids at home -- -- things I don't know anything about.
Congress doesn't either.
It will need to -- contact you just isn't any -- this was coming home on.
Still lots more to go including the seal on globetrotters you don't want to miss that's.
Really good season he has been a long.
-- What about the -- dot com -- -- burns Josh -- is here this president of accession media and open source web development Internet marketing company -- -- Out in the US open Connecticut rather.
On the right we talked a couple weeks ago about the iPhone and how huge all these apps were becoming for business but.
There are becoming a gazillion different apps and you got to figure out if you're small business.
What makes sense to me like they create my own map to like go on an existing at and what are you finding small businesses and the biggest question mark people having -- getting involved in this is that we know what's being.
Well small businesses the biggest problem is small budgets so.
The the there's several levels of mobile marketing that you can take advantage of the one that we recommend first of all is the lowest cost one which is get listed in the mobile search listings.
Google Maps Yahoo! maps etc.
because those systems are already embedded in everybody's Blackberry iPhone you know all these Smartphones -- -- that.
That is those most of those are free Google's free Yahoo! maps -- street the Internet yellow pages some of those there is a cost but it's -- And you don't even have to worry about doing anything to your website so if you're small business with a tiny budget that's the place to start.
The next step I would say is doing some sort of SMS marketing text text marketing.
If you're a small business that has local chains are local locations and you -- -- drive traffic and if your local delicatessen owner.
And you want to drive foot traffic into you your.
Place of business you can do offers.
Daily offers with -- some sort of code over text message so that you can actually track the results of that.
Because you know that if they come in with this particular code an -- -- the code word of the day you know they got that offer.
I'd -- down further down the scale of complexity would be getting your own mobile app.
And not only really makes sense if -- as you guys know a mobile app is you're gonna download software -- your phone.
If it's just to browse the same content that's on your website and then as -- as the owner of that phone I'm I don't really -- -- download an app that's just the same contents of your website.
I -- an app -- -- extra functionality.
You know what do you what does your company do them.
We build web sites for small medium size businesses and we helped the market online through mostly through search engine marketing so that's why -- So -- I comes -- -- I come to you.
You probably didn't build this site you help me get it out there right to you clearly -- -- -- yesterday how much future arts but I think that it really depends on it did the size of the project the scope of of what they want to do.
You know we've got clients who are publishers who have.
You know -- web sites that have all different subject matters and they've got a wide array of keywords that to trying to target but they're trying to come up for in in the search engines.
And then you've got small be the easier ones -- to the small local businesses.
Because when you add locality into your search phrase eliminates a lot of competition on Google and let's face it.
Where does -- start their search words or restart their Internet session.
A search engine and we know which one.
Are you finding most the small companies.
Art eager to embrace the technology or are fearful because they don't understand it because obviously these small businesses -- and don't have IT departments with professionals there.
How what are you finding the acceptances eager but confused yeah so here hearing about it and reading about it everybody's -- wants to take advantage and and you know get the benefit for their business.
But they have absolutely no idea where to turn.
So I would say.
Find yourself a good web developer find yourself a good partner and the other key is budget for the stuff.
And if you have no idea what to budget you know a developer like us will talk to you even if it I'll take time to talk to somebody even if there's no project for me immediately.
But talk to somebody figure out what's realistic and budget for it don't just say.
Anyone -- -- mobile app and how much is gonna cost me oh my god that much money I don't have that much money no plan this out make it part of your marketing plan.
But it is important and I do we talk to small businesses all the time -- -- so busy getting their product together and right and getting out there that this.
This could be -- mean hiring another person to take care of this stuff if you wanted to do this on staff so it makes a lot of sense to me to outsource this kind of stuff.
To someone like you which is why I asked what the cost was because small businesses don't have a ton of money to do they have to keep you on retainer do you charge a monthly.
We can do project work or we do -- work so.
Obviously the the retainer work is is good for us because we get to plan our income and they get to plan what their monthly costs arm and back again goes back to budgeting.
Good -- this is -- 101 have a budget.
And then it if if it's project based we can do that to as far as just you know one off website development or -- and marketing campaign.
Technology's getting cheaper every you've attended the same time you have things like people starting to charge for online content so this sort of this two way street going on.
Do you see cool for example Sony's those that provide this for free continuing to provide it for free getting on Google Maps and things like that -- start seeing people being charged that.
I think they'll continue to provide it for free but the key is they'll be able to up sell components of it.
So you you're familiar with pay per click advertising where you go to Google search and you've got the sponsored across the top and on the right side.
Winding in a local component to that so the severity testing it in San Francisco -- -- I was in the news -- -- to back.
The ability to do flat fee.
Paid search advertising on a local basis.
Josh -- as your president session media are people want to find out more about this he got a website that you go to AM dash LLC dot com.
And -- LLC dot com -- good to see -- -- thank you tight end.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And I totally understand our.
I mean most of this.
Chris Snyder CEO of Harlem Globetrotters is here now I'm gonna tell you I tip my son last year.
We were hysterical we had such a fabulous time -- shaking his head.
Why are you had a good time yeah well I I loved loved loved the show and I haven't seen the show since I was a kid it's certainly changed.
The cast of characters -- changed.
Would you go again.
I -- -- as the Brendan Byrne arena what the heck is that I thought in general there again this year.
Yes I know we're the good you're good yeah man my brother coming mr.
Tenet on Sunday if god doesn't have been teacher mister Boehner for -- yeah.
I'm helping build the business I'm not sure about it -- believe -- of course we can I can make the half court hook shot that and you really the.
All got to learn one thing but -- I -- a million things that staff at.
Where are you getting your players.
All over the place we get guys who have had a couple coffee in the NBA then we've got to put overseas guys that -- division one players division two players.
Guys putting the yet to be great basketball player so cost entry going to be great entertainer because where sports entertainment have to be great person.
If -- not -- three of them -- you can't be globetrotters who look for all through those characteristics we do extensive background checks and interviews.
And we try these guys out.
I say I actually thought that these guys -- I mean.
Look at this we're watching the video now it.
It's been really good I would argue -- some of better than some of the NBA players I've seen in this -- shot the entire time I was there.
Every time by the way some upon their shorts down my kids but the sad stuff but -- it was funny and I.
We weren't impressed with the -- Some but they're not to.
It being team players these guys are division one division to division -- are all big time basketball players you have to its cost of entry right because of work.
-- -- shows through basketball you're not a good -- players.
Hold for the -- In the seventies the globetrotters I was a kid it was about.
The personalities is about he -- as being curly Neal -- -- -- and everybody knew who those guys were.
Now we've seen a shift in the NBA with the NBA is about the individuals it's about Kobe and LeBron -- in Duncan and Iverson.
But it has that affected the globetrotters because you don't have that name recognition.
Right now I think so and so we're trying to build -- -- I think the brandish your portal in unharmed globetrotters ever remembers -- involves them.
But the specific person is the thing that sort of grabs -- your emotional health and doesn't let go so one of the things we've done.
Two years ago two and a half years ago when I got there didn't even have names in the back of the jerseys and -- him on nickname some sort of build these guys up the stars two of our guys are just on amazing race they actually came in fourth.
But they were there all fall and it was terrific because you're watching CBS amazing race and all of a sudden.
You see these two guys that are globetrotters.
And he said elevenths and why might I love these guys -- wanna go see them so the star appeal is important for us we're trying to get a rise out there.
Yet because I know when I was there I was one.
First I was British surprise that you missed it wasn't ball.
And but the highlight was when -- came out so is almost like that it was the parents that are more excited -- kids right does -- came out he's of our generation.
He came and I played -- them for a little bit.
So it's it I guess it's a matter now of getting the curly peel back yeah.
I think what it is.
It is what happened -- the globetrotters had almost been reduced to just being alive -- and torn troupe where you only related to once a year -- the whole business model unfortunately.
Came down to entertain a -- and once a year when they -- you never thought about -- he came at a great time never thought about it.
The whole business model now we're trying to do was say okay death.
Pinnacle of your experience we'll still be when you go alive.
We'll create opportunities for them to -- to interact with the brand before and after so.
We just signed a deal with a company can come out of the new cartoon.
A little -- yeah.
Al yeah they'll probably had a we're gonna bring a new cartoon we signed the deal the companies do all -- license products throughout you can buy T shirts and lunch boxes things like that.
So those -- the type of things were going -- Twitter now we're on FaceBook we have a very robust web site ourselves we have an iPhone app again he would interact so it's not just once a year.
What did you take from the WWE because that's where you came from right and probably a lot of what you just described because you expanding it beyond just going to the arena for wrong -- -- I would ever that you guys put -- What Vince has done so well as he creates an IP intellectual property every Monday night in the arena but -- exports and all these different platforms cinema business model work.
Because of the brand Evelyn Hobbs right you talk about it everyone loves it they wanted to just just very wholesome.
Wholesome family at a time was going to say that you can't do that with the -- -- eats very yeah different.
You know I have to remind my son he cannot perform those moves on his sisters how this is -- How -- this show changed because a lot of people like me I I've I've never seen them live.
Arm but I did see them on ABC's wide world of sports lecture -- in the seventies and early eighties how has the show changed now and when it was then.
Some almost the same yet so there's still confetti bucket of water first and confetti we have the string ball we brought back since some of those -- never change sweet Georgia brown arduous and before I ending up.
We still play basketball and we still play against the Washington generals are brought them back and most of the time we do wind and we went last year did cute yeah.
Yeah it's I'm most of the time.
Did the whole idea is because we're sports entertainment.
We have the ability to choreograph the experience from the moment you walk into you leave so we engage our audience the entire time.
So the show what's different is we want a modern elements -- want a modern music we have a lot of references to today and pop culture that's that's different than was before.
We have a whole engaging storyline keeps involve the whole time.
That's neat and she took that that evidently is well that's storyline keeps people week -- week -- month that the monthly cost money to be engaged and we have a coach for the Washington generals.
Things are bad guy.
Okay they have the -- not sure how that's an Eric says one of our viewers -- love the Big Easy and flight time on the Amazing Race at his name recognition right there well yeah.
The flight time.
Are two of the four that signed my son's basketball afterwards and that was so cool they all came out they all signs say.
And he knows them like these are guys that he knows they're very very.
-- -- because they do all these crazy check and our guys are.
Our best asset right there fantastic.
Individuals that they said we do a lot of background checks -- these guys want to be doing what they're doing and I think.
We established a couple years ago we said we're gonna do all these different things for them we're gonna make you stars really get -- out of just inside the arena and we did that and they bought into it.
I wish you the best of luck and -- really the only I think the problem causes a great product it is and what was in the seventies and eighties I think it can be so we should look at getting it thank you -- -- in the -- it was great.
Presided December -- respectfully art art art with our domestic tours we're in 269 cities.
In two -- -- 69 -- -- 216 cities that magical memories -- what is called check it out thanks very good and OK thank my personal Odyssey on the Harlem Globetrotters but seriously have to see it has been going foreigner that's going to be a little more difficult easier negotiation go do that first and then -- worry about animal we'll see.
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