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Good afternoon thanks for joining us on foxbusiness.com.
Live on -- -- Robert grant rumored.
In for Chris -- and Tracy -- today it's right.
We're gonna have a video Wednesday's session but I didn't have a pretty fun hour here we've got a bunch of -- guests joining us in studio some really great ones anybody.
Looking for a job out of a job.
Especially at the executive level we've got the Korn ferry CEO joining us.
Some good insights -- who's hiring who's not -- With the trends are I'm hearing that nursing lots of jobs out there government a government obviously has been hiring during a recession so we're gonna talk about all that -- an executive recruiting firm.
Also going to be talking at the top of the hour.
On markets in the economy yeah got.
And I paid -- Cantor Fitzgerald about it.
And also was it McDonald will be with us as well with her on not usual.
Unusual I should say Brandon Tate has -- unique spin on everything and the question is like why won't why doesn't the government allow these banks are just pay back -- -- retirement Citigroup and Wells Fargo just let them pay it back this taxpayer funds.
And then all the taxpayer funds that -- being paid back quicker than anybody dad how we gonna use -- the Obama administration is talking about using and to create jobs and the -- and other things -- -- notifications.
-- -- -- you have a lot to say about talk talk if you well yeah and right now the markets are up about fourteen points the Dow Jones -- industrial averages.
I guess slightly higher on the day it -- sort of you know -- not a positive territory for most of the week kind of analogy about a month now that.
You know -- gets a couple of big days -- couple big days down but for the most part we're we're sort of holding steady right now -- 200 or waiting to see what's gonna happen in Washington.
You know what's going on with health care what's going on cap and trade on people Leo -- what's going on with that and of course what's happening with shoppers you know.
Right and it held its -- thing is exposed to say say -- paid out.
One of the key things he studies he said yes we should be concerned about the US dollar in TARP and all these things that are in the news right now they said December.
Trading stock trading shouldn't be mostly influenced by how the retailers are behaving so I will certainly get his opinion on -- find out now.
I'm a better time the president marked paid out Cantor Fitzgerald -- market strategist mark -- -- -- this.
Hey thanks so much for joining its good to talk to you again so let's jump -- right there -- you know -- the early returns doing retail stocks.
To choppy session out there today but they're actually faring pretty well even though you we had a sort of a lackluster start.
To at least for the bricks and mortar guys to the start of the shopping season here and you've got some notable laggards out there like apple although it's picking up a little bit today.
Tell us what you're seeing in in terms of in expectations are as well for yeah the retail sector and you know as we look at that.
-- sort of a barometer of where.
The consumer as.
Well first ball we have to look at Thanksgiving last year you got to remember that he retailers had already ordered your inventory and they had a lot of inventory to unloads to the sales were tremendous.
So this year.
They have cut their inventories so they don't need a big big have these big sales so there were only 50% off so people that went out shopping.
We're a little disappointed and they walked away without buying all of their -- so last year about 50% were done after Thanksgiving.
This year about forty Q percent.
But looking forward December last year people got very nervous and they stop shopping and it was a disastrous December.
This year the case is very different market is up 60% from below what better than 20% for the year.
And we really have a lot less sales out there.
Therefore there's there's some drive for the product increase profit margin that's really the key here.
This is not -- liquidation sale these are products with good profits and -- And the brick and mortar is not reflecting a lot of growth in the Internet sales so electronics especially.
Very good for before the Internet sales so I think -- -- there -- spots here we can get some real surprises to the upside.
Especially in the profit margin -- -- you know area of -- as.
Well be a little bit more specific -- -- -- mean war who should be in the big winners for that for the shopping season I mean.
It's one thing to say paid for traffic is up at these stores they need to produce the big numbers as far as the bottom -- concerned pretty think gotta gotta be the big winners.
Why I don't think -- need to produce big numbers in terms of gross revenues I think it you know flat revenues -- profit margins will be better.
Obviously the discount retailers are doing very well.
-- -- -- -- -- Nathan -- the Wal-Mart to Wal-Mart target.
-- Wal-Mart target and Costco or there are typically below land and then you get into the mid range with.
With the -- in the may season and the like of of those polls says you get into the mid range I think they're gonna do a little bit better than expected.
In terms of electronic -- you have a lot of the companies that that provide the end product but off also a lot of gaming software in the gaming device makers.
They should do well.
And of course downstream of that is the semiconductors the chip makers electronic phones are going to be big so.
All the phone makers are going to be big in the chipmakers that -- -- in those phones.
Are gonna do well so I think that the electronics area.
As an end consumer target is going to surprise on the -- -- we may not see those numbers until the third week of January.
But the market will start to anticipated by the end of the month.
And we you know we heard -- from Texas Instruments last night and even of the stocks down today we'll talk more about it later specifically but.
-- -- and I have a hard time meeting demand they of course make a lot of the chips that go into these self fund so it looks like -- -- Smartphone.
To be a Smart from Christmas certainly had iPod Christmas is in the past.
Where -- shift gears a little bit and and -- go back out of 30000 feet if we can and talk a little bit about sovereign debt and how much.
The individual investors should be focusing on obviously you know.
The Moody's report out time of the US in the UK yesterday -- the sort of putting them on watch if you over possible downgrade in four years that he gets Pena on negative watch today from S&P.
How much of a concern should that be for the individual investors -- we see -- cracking as well.
While I do have that built into my eighth 2010 forecast that we're looking for next year to be much more difficult.
I think that debt is going to be much more of an issue in 2010 -- it was in 2009.
Obviously the focus is on the recovery.
On the economy and on jobs.
That's gonna start to shift to the cost of jobs and what type of jobs -- get a little bit more specific about that and I think it will weigh on the consumer.
We're gonna look at the market as being -- the consolidation to a set back year in 2010.
So my outlook is for strength through the third week of January.
And then weakness through probably the third quarter of 2010.
And then we'll start another recovery -- real recovery.
In that fourth quarter so.
Part of that is this debt issue and the US -- and obviously the amount of treasuries that we're selling to fund.
And -- mark you know wearable waiting for the US president for the president to begin talking about asking for support.
To create jobs in this country how do you see that best -- how could.
We create jobs in a way that'll benefit us in the long term right now.
Really who we all know that at that job creation good job creation.
And sustainable job creation is in the small business areas so.
They have to be targeted and focused for tax breaks and incentives for for capital.
Expanding their their capital structure and for hiring in the small business area starting new businesses is going to be critical.
Because we had such -- hours worked that a lot of this is going to be absorbed.
Working more hours without hiring new employees to -- new businesses so I think that's fine however I'll make this one statement though I think it's a mistake to use the TARP money.
The TARP money was given for a reason for a reason.
I don't mind them looking for stimulus package to go out and get yelled get jobs going against.
But they should go through the Appropriations Committee and do it right what should be done at the TARP funds that they get back.
Why you know will.
Look it's it's pretty simple I think that it's okay hold them for an extended period of time I think 2010 is going to be tough.
I don't mind the idea that Geithner wants to hold on to a -- October.
I don't think the fund should be used for anything more than what they were designed for.
So more problems come up from from real estate he can be used for that mortgage mitigation in such.
But outside of that purview they should not be using this for something new and by next year I think we're gonna wash through the majority of the real issues.
For TARP specifically.
And by the end of 2010 we should be able to.
Really get what we what's been repaid and if we don't get -- paid by the bank specifically it should be sold in the open market.
The associated for a rainy day don't go ahead spend it just because you've got -- that's sort of the bottom line for the TARP.
That absolutely affluent that's the perfect way to put it they didn't sort of still looking at a sovereign issues dealt with the dollar do you still see it as a safe haven aren't always seeing some unwinding of of yen trades here people who are long the end because yet has been getting.
Weaker relative to the dollar at a at a -- faster pace.
Then the Euro some might we see people going moving back to the yen carry trade where their borrowing in yen investing elsewhere whereas.
The dollar had been sort of the trendy carry trade -- late in the past few months.
That that's right much of what we saw with the strength in the dollar -- last few days has been related to the fact that Japan.
Wants to increase their stimulus that'll hurt the yen that'll boost the dollar.
-- overall the bigger picture I think the dollar is in the basing process we found low.
Right around 74 on the dollar index or bouncing back here we're not even up to 76.
Remember at the beginning this year we were.
We were at.
Eighty eighty plus.
You were were far from I think that we can.
We can certainly see a ball longer term based building process.
And a stable dollar would be very good especially at this level right around 8085.
I think -- role and -- so we'll -- an awful lot.
That could put pressure on the dollar trade.
And when that occurs it's really gonna focus on when the Fed first raises interest rates.
Are better than that the first time they remove the language.
Out of their statement that they're -- hold rates down.
Hey mark that is when the dollars can move we've got to jump but I -- -- ask you real quick.
Are you a buyer of gold at these levels yes -- -- No I think we're gonna go back to a thousand and then there's another little rally but I think that -- gonna settle in.
Above a thousand but under twelve under right -- -- I think so much for joining us.
He's the USR -- equity strategist market strategist Marc -- col -- is emerging.
All right well we're gonna take a quick break guys will be right back.
Welcome back to foxbusiness.com.
Live in -- -- guys you can join -- son.
Twitter FaceBook you know us Twitter -- -- I had you know I didn't.
You know iTunes China and -- -- have a pretty solid that's coming up here a second you'll probably have a lot of questions.
-- here in a job right now may be looking for a job or you know just wondering what's gone on out there again.
So anyway we've got joining us now Gary -- and CEO of Korn ferry executive recruitment firm Gerri thanks for joining us.
All right well let's just get started by yet tell us what's going on out there what are you seeing what's the latest obviously we thought unemployment drop to 10%.
The latest government Europe.
Fort what are you -- well the free falls over and I mean that's for sure that's good news.
About five months there we -- pick up in financial services.
And you know they always over higher and over fired right and sure enough this cycle it's happening again.
-- -- anger over higher and they're not over hiring yet that that clearly -- Padilla ever firing yeah I mean look it was you know fourteen months ago it's you know white -- free fall right it means CEOs around the world us included.
You know there was a focus on cash and in balance sheets and you know at some point you wake up and you say hey what's the new normal and you gotta get on with things right and that's really what's happening.
I heard you say something so and -- thing an hour or so ago.
That in some cases some of these companies are hiring back the same folks that they fired.
That there are actually receiving severance now this and I think these guys whites.
Well again you know the cuts were so severe that.
In the actions so fast.
That that's -- company you know -- can look.
You know despite all the technology all the innovations.
You know when things remain the same and that's that you know people make businesses successful right.
Where's the best place to be looking for a job right now oh my gosh where's the best place.
You can't go wrong with health care life sciences.
I mean if you look out over the next decade that's going to be 20% of this country's GDP -- it.
In fact our business our life sciences and health care businesses back to the levels before the recession which is kind of ignorance out.
So yeah anyone actually -- for August yesterday right earnings were down considerably from a year ago sign of the times I think he did beat expectations revenues same thing.
Third -- you think it looks better for your company.
Then analysts were expecting so what does that tell others about the jobs markets that your job is basically putting people in jobs you'll get paid unless they get jobs -- Well that's about 75 for some of them a business we've also got a leadership consulting business as well but the flagship -- the company is jazz executive search we place.
Twenty executives day in positions that pay a quarter million dollars or more.
And how is highest pay up or down from where it was it's it's down.
It's it's definitely -- America where we -- we began the recession yet a year ago and there's so much talk.
About say on pat you know in particular in the border -- gonna ask if you work with any -- companies are companies that area of other government control of you worked with any of them and in in the search processes.
Sure absolutely and what it what do what do the candidates have to say -- -- that your talking to how to they feel about I mean we've heard you know.
From companies like General Motors say it's going to be hard to find the CFO we have with -- to -- a special masters -- -- pay -- if you will be restrictions in place.
How much more difficult is that for you and would have of the candidates feel about it.
Well it is difficult the hope credit I mean you got to be careful of unintended consequences of this legislation right that you got.
You know you're also talking about right now six big companies right.
-- have to be careful you can't take that and cascaded.
Across corporate America but over the last several years you know -- when Enron started.
There was a big move towards more responsibility in the board room.
And that has intensified.
With this Great Recession -- so now board of directors are taking greater responsibility.
For succession planning for owning the strategy the company.
And you know -- is a big issue.
Some of -- and -- -- interesting lately is that there's a problem with the succession plans at some of these major -- I mean.
What about and in some of the case of these major financial institutions work.
There's just simply not a plan that's been put in place and I know that part of your -- a large -- your businesses their leadership.
You know consulting.
Group what could these banks be doing better and -- looked case in point Bank of America and Ken Lewis.
Which is known to have one of the best HR organizations in the world ironically.
Right so I think you have to.
You have to look at the pass through the past fourteen months has been extraordinary.
Right and so.
But but that is you know first and foremost that's the board's responsibility to pick the CEO.
And make sure that there's a pipeline of talent behind he -- she had to replace and -- we expect someone to be named to be -- -- Don't.
I think it's going to be easier now.
Yeah -- -- they repaid the money for sure.
And then definitely Gary Burleson CEO of Korn -- -- so much for joining us thank goodness -- All right so another as this mine is that's where what I'm watching the Ellis here with what caught your -- Barry wants to hear is well.
Haven't -- what caught my accident at Boeing.
I think covering the story extensively you know I was -- goggles I and other not gonna open up Everett have been on the planes you know the ash that was -- well over a year ago.
That I walked through pat Shanahan out there the head of the Boeing dreamliner project.
And you know I.
I'm covering the story to the point now where I'm building my own timeline as -- I think this plane's gonna take off he went in the very latest is that they tested this dreamliner extensively now that it made the latest exit the plane.
It's it's gonna take ten days from then to have you know that the results of that how many days left with is that December 10.
From December 10 and then they said that they're gonna -- the media and the public a seven day notice of when nothing's gonna take off.
What does it about the summary -- what are dignified thing on Christmas today.
My best gas is that don't be surprised and investors obviously having high hopes because the stocks and rising up into this maiden flight.
My -- passes that you know there is there's -- -- be still some.
Pick -- From this from this latest static test -- that this plane.
Pennington won't take off by the end of this year but you know I'm I'm not forecasting.
I'm just saying -- the last -- the numbers -- I talked Boeing almost every day.
Trying to get the latest from them and they still say that this -- gonna take off.
By the end of the year it will be a game changer.
For the aviation industry when this thing takes up so that's what caught my.
It's ready to be on the first -- right I would -- -- -- something tells me they're not gonna have reporters on the site at their -- I was out there after that I was done a lot of campaign when and if it finally does take place.
-- -- -- Guess is that -- now are.
But we don't live and die away and not want to talk talk talk talk -- -- I never test center in Washington and Peter Barnes they've been doing a terrific job you know covering.
What is going on -- -- What is interesting right now is what's going on Citigroup and Wells Fargo the last two big banks to pay back their TARP investments.
You know the FDIC chairwoman Sheila Bair gave out a really interesting warning guys.
And she is essentially saying that it might be premature.
For banks through these but -- -- say these banks which is at certain banks to pay back -- Because the government funds on May not be available down the road if these banks need them so you were just talking earlier and made some great points about.
In a TARP being used for -- jobs program man right.
So I mean that that wasn't the intent of TARP and fact TARP was meant to buy troubled asset would have had worked into an -- -- right -- over a number of folks here weighing in on that -- -- -- whatever happened that Robert -- -- -- -- said you guys you did a terrific job talking about this throughout.
You know the various iterations of TARP when it's being used that and I think that the voters -- make -- start to get angry that this is becoming a government slush funds like an all purpose fund.
Tito basically win reelection at the mid terms in the mid terms next year so we've got this money is burning a hole in -- -- we have suspended and let -- know that -- is just basically a credit right now sunny and actual money that's sitting and now -- anyone Robbie brown Greg what.
I think that the logic is 200 billion dollars right and that -- it let me just explain to the viewer -- I -- What the government is basically saying is is that -- losses that were projected in August will be 200 billion dollars less than expected.
That's 200 billion dollars is over a decade right but the government is say let's take that money now the administration saying let's take that money now and set -- the jobs bank.
And who which bureaucratic that I decide which job sector manufacturing sector in -- retail sector -- to get that money.
I I think -- you give voters voters pause but let's go back to Wells Fargo and Citigroup.
Because -- real issue is city group right now most markets it's still has a world of pain on its balance sheet.
But Citigroup has had in the past eight decades for government -- -- at 48 billion dollars in losses.
And 57 billion dollars in write downs that's according to -- PowerPoint.
That city group has given Fox Business.
It's had you know basically a number of CEOs -- -- CFOs.
And in looking for the balance sheet it has a lot of problem areas that has about two is -- -- the -- it's -- question -- Should be Citigroup.
Pay back -- now 45 billion dollars right.
And insanity designated player -- this to Robert to do that they would have to the government's rules say to hit a TARP you have to show that you can get confidence in the capital markets via an equity ratings right.
You have to go win and state of the capital markets look we're gonna pay back -- are we gonna do with the stock greens we're gonna hit the shareholder gonna hit the shareholders which is way more to look at me now we all whether you in the -- -- or -- we all are shareholders -- yeah.
That's why it -- sort of the values that's exactly -- our investment and -- Citigroup has been careening around in a hospital down an exit its stock price you know -- down to the level of you know an ATM thing you know it's trying to get its -- but let me go to the balance -- it's 200 billion dollars in bad assets and -- -- watch this a 155.
Billion dollars it says they come back streaming back onto the balance sheet.
These are Enron style off balance sheet assets that could come back onto the balance -- According to new accounting -- back -- take effect.
Next year now this is key this is key for Wells Fargo to Citigroup one point one trillion.
One point one trillion -- off balance sheet assets that's about half the size of the GDP of France Wells Fargo also has over one trillion dollars in off balance sheet -- It too -- could face 170 for a billion dollars an off balance sheet assets streaming back onto the balance sheets so.
You should they pay back talk now they need may need that money.
To bolster their capital reserve -- that Citigroup has only 27 billion dollars in tier one capital -- -- regulatory capital cushion the backs up that this is.
And over at Wells Fargo it's only about 58 billion dollars let me quickly go through -- spark.
It's a little easier it -- the other number one bundle them.
Numbers are mind boggling and and you know that it to give wrap your mind around that you know this is the state of the banking system today when you look at Wells Fargo and that -- Citigroup.
A hundred billion dollars and impaired assets about 55 billion dollars in really toxic Kryptonite Kryptonite -- sitting on.
Wells Fargo's balance you Wells Fargo opposing US taxpayer 25 billion dollars should they pay about now when can they pay back now.
That's a question for Wall Street and vote for both these that you -- -- viewers all riled up in that mysterious thing I've heard all -- we -- -- Other viewers you know I think is something.
-- -- they are so sweat -- Hendry actually write this.
The viewers I like I read my emails and you read your idea and we all -- -- Fox Business I can't tell you how Smart does this -- watching us are.
But I really -- -- -- I want -- to correct me and tell me when I'm wrong.
And tell me when -- off the -- policy calculated I -- these numbers 500 via the 500 billion to sort of on the sidelines perhaps I should be safe for the -- dated may -- did you come to pass here with these numbers certainly -- on the -- you writer -- remember again when -- -- we were covering.
The stress tests earlier in the year.
When the government stress tests -- nineteen -- Wells Fargo Citigroup being among them.
They said 600 billion dollars an estimate the losses for 09010.
So why is the government taking that 200 billion dollars to build.
A jobs bank why not both -- the FDIC deposit phone which is now effectively bankrupt according to -- -- -- he's -- use that money in both the FDIC the what do you see in back in your opinion -- deal with the optimal outcome of all of that optimal -- the best out of that -- how -- is used -- -- is paid -- us as taxpayers send it back to the -- taxpayer get it right back -- the taxpayer and -- never happened that.
And you know will happen I don't know what you know look at the FTSE already -- -- half -- trillion dollar credit line into the treasury that -- -- -- themselves with a right that's enough.
200 billion dollars -- -- -- jobs bank and who decides what when who -- get that money.
Really what -- What about the F proceeds from the dividends and other supposed to get a paid on the deficit would if they could be reached -- funneled over to the FDIC.
You know because they were estimated think of Americans who pay four billion a year in dividends back to the idea that's -- they -- -- Citi and Wells Fargo this dividend could be used to help bolster the entire banking system.
Yeah and and also you know let's face it you know some of these banks by and especially Goldman Sachs 23%.
Return on the money that they got from -- right so.
So the government is making money off of this but it should be no surprise to viewers that.
The idea farm using -- for a jobs bank came around the same time that Moody's threatened to downgrade the US debt rating which has had since World War I credit rating which has had since world were won -- AAA rating -- that could go away in 2013.
And -- worst case scenario it's that attitude in Washington that it can do what it pleases with your tax dollars off.
In fact speaking the truth because it sure is not.
I'll I get a little snot but I mean and it you know what -- before it was like all the public doesn't understand all the ins and outs of all this.
People do understand now and they want to know more and they want the truth -- And stuff and I always hear these guys aren't actively implement the TARP so to speak -- her.
The reverend relative funny Mac thank you I -- so we are about even on the Dow just up a couple points right now we're gonna take a quick break we'll see in just right back.
Hey welcome back to foxbusiness.com.
Live Robert -- -- with you on Wednesday and Sandra Smith joining me now I -- you've got some great market picks give us some market movers sorry.
Market favors and what I mentioned a couple of homer earlier little preview there had to -- right we'll start with apple OK apple it's been very notable even on big -- -- recently apple has not been participating a lot of people watching as it fell -- apple of the 200 dollar.
I share -- level and then now we've we've seen it perking up a little bit today.
A lot of chatter out there about the tablet with what sort of the next wave in PCs -- we've got the -- netbooks out the tablet PC.
Sort of people see is the next step apple expected to debut at next year in fact a couple of tell they'll -- it more about it Oppenheimer out saying.
They've been talking to supply chain manufacturers would help deal with the components for this they say they think apple could begin ramping up production in February.
They they may also include book publishers distributors.
On the tablets -- -- -- is this chatter -- of -- that will hurt e-book sales people think well maybe I'll just wait and get it on the the Apple Tablet.
Interest can see that could happen that -- one of the hottest gift items we've heard in the sales have been pushing you know Amazon through the -- And but the big question is that stocks more than doubled in the past your real quick and interrupt you Robert -- President Obama is speaking right now -- all about getting more jobs he's asking for support.
To create jobs in this country he's meeting with bipartisan congressional leaders.
At the White House right now you can see -- -- in the lower corner we've got there were carrying that live on the Fox Business Network right now.
But again he's speaking on those proposals that were announced on Tuesday.
To create more jobs and house Democrats of course say they hope.
To start working on new job a new jobs bill within the week so you were carrying -- -- Fox Business live right now we'll keep him.
On the -- we'll -- again today what negative headlines that come out of that as well and -- without will move back black apple anyway.
By the way anybody is looking at apple this -- up a 125%.
You're hitting it I don't have unwilling -- you know bet the other way -- but I also don't wanna bet you know that's up -- the authority.
And integrate it out of Piper Jaffray gene Munster the analysts there is has been very -- a lot of his calls did -- -- take out on the stock recently saying that.
Generally you know this decade Heidi it has.
Outperform by a lot of the last four months of the year and under perform the first four months and he says a lot of traders getting ahead of that trend this year also.
For the first time they're not going to be at MacWorld so no big product introduction in the early January that we've seen this sort it would carry the stock through the holidays and out.
Commit -- was it was they sell it -- as you get closer than to Christmas but people wouldn't sell because they wanted to hang on to see what the new iPod was -- -- now have as a follow about the sales of the act by the -- and all that good stuff possible tower coming out.
And -- that will move to Texas Instruments we have heard mart -- talking about the chips in the the Smartphones -- like mid quarter update last night.
They -- -- -- you know what are we're gonna have a you know higher range for both earnings and revenue but basically not enough to satisfy investors the stocks up 8% a month.
Selling off a little bit today also -- -- -- -- you watch maker.
They've been really hurt by that the weaker demand for luxury goods and then there earnings still some -- want to a third quarter loss cutting their full year outlook.
There's -- gross margin slipping my sixteen -- Don't do much good market to confuse inland because -- you know we just heard about Neiman Marcus selling out and you know -- -- matter of hours these jaguars he's Neiman Marcus averaged.
Hours and there are over a 105000 dollars apiece.
Okay -- in some areas of the luxury market where their pocket full strength.
Tiffany has been reporting added foot traffic and good sales and all the stuff but then there are some elements of the luxury market that just haven't been able to -- If they're still winners big winners in there but not as many winners if you will in the -- market that's sort of been true for all of retail but we'll move on to CE UC KE restaurants and not.
You may know Carl's junior you've been out west in the US -- back in my homeland -- -- hard as we used to call it.
I'm elated if I'm sure Tracy is here -- say how much she led the burger fast food every event here -- third quarter earnings.
Did not do well -- on fact -- they were much -- can come out lower commodity costs not helping the bottom line people not going for the burgers I guess that share our day or Carl's junior.
Sales for the bill I'm gonna call junior out west California and -- they leveled Carl's junior out there.
Oh related notes it is -- after all doctor pepper snapple you can get those wire at parties.
Jumping up they have a 900 million dollar licensing deal with Pepsi cola replacing an existing one.
With -- buys back -- bottlers are going to be distributing doctor pepper to crush future orange crush on and Schweppes.
Here in the US and -- speaking of Pepsi -- worst performer in the S&P 500 why well in addition to this deal they we're talking about.
They're full year 09 forecast not as good as they thought it was going to be a couple months ago.
-- -- -- up 70%.
Have have Pepsi not doing quite as well it's a 21% -- today it's a not too bad but worst performer today down 4%.
That good market movers Robert grant thank you -- -- -- -- who -- -- We're gonna go over -- can Kaufman.
Guest sitting here locked us president croft Leo minster -- now manager of the five star crawl value fund that you so much for joining us this fear.
You know to thanks for again thanks for being -- -- let's start and the worst thing here is stopped talking we rather here for you don't the stocks that are in the fund that you alone.
I'd I'd obviously looked at a few of them here but give us some idea where should we be where should money be right now -- Backs that are Valmont Industries.
Now where should money be you right now.
Graded -- what I think of giving is a fairly eclectic group cities.
It's type of environment I think that you need to.
The continue to be diversified and diversified in that certain areas.
Our our our latest ideas have been more in the bigger steady -- blue chip -- -- the ones that haven't had.
The big you know -- back from the from the march lows there's at least should be -- the study is I think he should start looking at them but I think -- it has and valuations.
Today areas as cheap as they've been and you can find some.
Like -- Baxter International that has a global franchise.
Trading at twelve to thirteen times earnings that you know you can argue twelve to 13% -- growth going forward and haven't seen you know -- it does this prices and long time.
So you're saying is still.
We -- -- there's -- -- people are saying in the markets -- getting picked over after the big rally.
Looking forward here how are you basing sort of your -- are what are you looking back -- militants not a new normal.
How do you re calibrate things now after they've had huge view cascade and indeed the ramp up we've seen by I think it's important that we are very long term Moran -- our our turnovers like 15%.
So you know it kind of people like this aren't like -- -- we really like this one time we can really feel like and really take advantage of things so.
You can argue that maybe we've should have been as -- who were back in March.
Given the psychology of the moment.
But I think -- you still need to have exposure to those companies.
Have exposure to the global -- and the US economic turnaround you can't.
That's that it could be a very powerful phenomenon at the same time.
There are many companies that he would have taken advantage of the downturn that -- increased market share.
And coming back out of it -- will be stronger than never and the example that might be lows.
So these -- so we're talking about are in your five star crop value -- -- Okay so big question -- bigger picture right now because a lot of people you know and he's not a lot of people look at some of these stocks but these are bigger picture long term.
As you referred to -- Eddie -- stocks what would you say right now for folks out there who are trying to stock pick in this kind of market what's the secret to investing.
In this sort of environment where stocks events such a big run -- in those -- closed.
You know what's the secret to good investing right now.
Well I think you really need to do your work on your on the company's than you were.
Where were built around an idea generation and now stock picking it in and of itself looking at this companies is more important than ever.
But you and I do think you know given that the concerns are still out there you need to also be as diversified as ever so.
Like I said before exposure to names to the economic turnaround.
Because I think we still have a ways to go.
But you need in this -- that in the the person now there is you know look at their retirement.
You you want to have that exposure also to the more blue chip names with.
Good dividend yields.
I was the US dollar gonna play out with those guys that we've been getting it bounced back a little bit and as a result gold prices have been falling for a second half -- some of those big multinational companies well you know the dollar -- strong -- right.
In an -- in any portfolio.
You need diversity for the dollar right now -- is also as -- -- you know.
Picking the direction of the dollar can be and as difficult.
As picking the direction of the of the stock market.
Many of these companies again especially if you have long term focus you they had just heard dollar environments over -- They can't excitement does sort of make sure we get to some of the the specific names like -- on industries not a household name miles -- familiar with this company but.
-- interesting play here I mean they're actually an exporter we -- talk about how we don't export many things out of this country right they are there and irrigation.
They also you are behind yeah light poles and in traffic signals -- -- Not only here but it in developing nations are needing more there's no doubt perhaps they can build some of them themselves and over time but right now.
These guys sort of seem to be a neat -- tell us a little bit more about this this -- -- -- -- the smallish.
-- -- two billion plus market cap.
So decent size via mini conglomerate if you will.
But you know irrigation again looking -- long term in water conservation both both here and abroad has become more -- important.
And given an agriculture is that is a big effusive fresh water on on the planet.
They are in the sweet spots -- over time to take advantage of their with their advanced irrigation systems.
But then also there -- beneficiary of any grid -- -- plan and stimulus plan if you know that money sort of finally starts getting getting -- but to build new transmission towers and -- the highway structures and that type of thing.
At the top of the hour we're talking about how crucial the resellers are in the December a month and one of the stocks in your find.
Is it loads the -- second largest home improvement retailer this again this a good place to be right now put your money I've.
They -- -- obviously we're still in the throws of the housing -- and but -- -- -- to us you know over time it's and it's going to be an improving situation and Lowe's is one of those companies.
To be given -- date they've.
They have had a good balance sheet throughout the dams turning back who have been dealing with the tough housing market it since before you know September.
Of those nine.
And -- -- so.
Dave you know right size and felt a little bit because the bail -- they've been able to pick up about three point market share during the downturn those things improve.
That they should be you know better off stock stock not a lot this year no I -- 5% that's the opportunity of Halliburton co -- as a -- gonna benefit them to -- cash for clunkers plan implement you know these -- -- -- we'll see what's arising in better making your -- -- if what if he gets off there will be incrementally helpful but it really is that housing.
You know turning around put -- -- sales of remain fairly steady for for retailer one of.
Our one of our viewers as saying you wait for a big correction out there -- bigger picture aside from your stock picks the broader market.
Do you think that there will we are in -- some sort of correction or do you think this -- gonna continue.
You know I like -- fed I I think just given the level you know you look back in March in and that -- anybody thought that we have their earnings in the company you know that we've had over these last couple quarters and and that we in every -- said you're crazy.
And that you know earnings some so -- -- valuation just sort of the way we look at it is.
You have from the company from you know the bottom up are we finding ideas that we feel comfortable buying today -- -- for the next say three to five years.
And in the any answers yes.
And so at the at these levels of depressed earnings.
And and in a -- -- company that have visibility of growth going on long term right I think we have some sustainability and in the -- It took off.
President of -- Leo minster thanks so much for joining us that they expect.
That's that's good stuff so that's Belmont industries and detect them that Harrison didn't like -- and union and Robert -- excited about the fact that you know you I knew every day what President Obama -- talking jobs right now -- continue watching that for you in the meantime we're gonna take a quick break.
Hey welcome back I'm Sandra Smith Robert Gray joining you in for Chris -- -- Tracy -- since day.
I didn't present Obama talking right now guys were watching the Dow Industrials -- up about about eight points right now.
I'll bet on the Fox Business Network were carrying his speech live but the president today's.
-- you -- -- bipartisan congressional leaders at the White House.
-- talking about jobs and job creation.
Of course this is following up on his the proposal that was announced yesterday.
To create more jobs up to questions about how exactly he intends to do that.
We'll any of those paid back TARP funds be made available to the administration.
You create jobs.
Whether or not congressional leaders would even be in for that -- what kind of jobs will he be creating what areas will the president be focusing on.
That's obviously going to be key but on the treasury expected to release more details about the internal accounting of what they're down probably.
And health care we're gonna have a -- and -- just a second but you know Robert this is gonna be it's can you really important and music -- years as to how the administration.
Is going to create jobs out there it's obviously a situation that most economists say.
Is -- gonna improve for many quarters now -- even though we saw the improvement in the latest report on Friday.
It's still pretty -- dire situation.
It's gonna take time and I think that's the view would -- thought and I -- in using the mortgage modifications.
Is is just it's playing for time to the economy gets better people get back on their feet perhaps -- housing market stabilizes so they're it's it's playing for time.
By must you know analysis and -- I've been speaking with that's sort of what they see it from the house -- -- we'll succeed or not we don't know but that's.
Sort of having him behind it.
Yet the house Democrats say they hope to start work on a new jobs bill within the week so looks like they intend to move fast on this but obviously awaiting -- that congress passed.
-- -- -- -- -- That and I it really bad James -- are joining us CEO concentric thanks for cup tennis in studio -- He's hander Robert -- with you now let's get started I mean sort of you know sort of a nice transition and health care.
I mean obviously.
You know the fact that things have gotten a little bad that batter has put some focus back on to the Health Care Reform issue.
You can you give us the broad scope of the ways -- things today.
Let me explain a little bit -- about what we do our company works employers of all kinds across the United States and we have.
300 medical centers -- we have 1000 clinicians primary care physicians.
Nurse practitioners and physical therapists and each day about 25000.
Patients come to us.
And we're working with employers employers of all kinds from the fortune 500 to the small employer -- twenty employees.
And what's encouraging to us as we see certain players were taken action.
To improve the health of their workforce.
American our opinion is facing a health crisis we really have a situation where were producing disease -- rates that are far too great.
And if we can wake up our culture wake up Americans.
-- -- know what their numbers -- you know -- the cholesterol is what their blood pressures.
With their fasting glucose is due to have a healthy weight.
And in motivate them to do something about it we can make it -- -- -- thing is extend healthcare to all Americans if it doesn't bottom line and slow the growth of rising health care costs out there.
To hide -- big deal with how limited what's the best way to do that.
Focus on prevention we as a people need to appreciate the fact that we need to make better decisions.
We'll drive over 50% of the health care costs if we can motivate people -- have individuals have more accountability.
For their own health and that's what we see employers doing.
Employers are giving rewards.
For folks who are taking action to improve their scores.
-- did you think give that to me you know in the health care debate we haven't heard a lot about prevention we've we've heard it mentioned here and there but.
What about civilians and it on the lines of tax breaks for individuals to -- able to do do more preventative medicine who.
Maybe are overweight than they work towards -- and they get the -- -- -- smokers who quit smoking or those who don't smoke.
-- they should pay less because they're not going to be using as much health care in you potentially anyway.
That's exactly right Robert we we see people who have done that employers with work forces of 101000 people or more and their costs per person.
-- half the cost of employers who are more hands off and haven't changed the culture.
So that the financial rewards of motivation what type of insurance is there that you buy for yourselves where there's no risk -- life insurance.
Even auto insurance -- -- for people who get better drivers don't pay as much as people who have a long history of accidents right so we can motivate people charged them less if they take action.
Well -- that would always complicated issues and indeed it do you feel that we're moving too quickly -- On the health care it's very complex and obviously and I think if we could focus on dance -- we don't keep this I don't care what you do with insurance.
If we don't create a population that's healthier.
And lose more jobs to overseas as the costs are -- to continue to canola.
We need more primary care physicians there's a shortage already.
And when tens of millions Americans get access to primary Tenet health -- with when -- get coverage.
If there's not primary care physicians there to help them prevent disease.
What are we -- have and have no access and convenience pretty much since it was so individual accountability.
-- key here and there.
And more the focus on primary care physicians trying to reward.
-- school students for going to primary care would have specialist to specialist take care people are already sick.
-- -- primary care physicians do they help people.
Keep from getting sick point 5% of -- school graduates this year we're going to primary care.
-- -- -- -- I was -- update our viewers real quick we've been talking about the president's speaking right now on job creation and I'm just seeing some of the key comments coming from and speaking right now including we're going to wind it down in the troubled asset program itself is saying that we pulled our economy back.
From the -- And one other headlines more needs to be done to -- -- US fiscal stance so a President Obama still talking in those are some of the key headlines coming out that speech right now.
You know if there's one thing that you could hear.
When you wake up tomorrow morning.
-- did get the latest breaking news and Health Care Reform obviously we get it every single day.
What needs to happen -- I think we need to focus on prevention we need to make better decisions with respect to our own individual health and if.
I don't know how government makes that happen quite frankly.
One step is to get people coverage so they can access care but it's a far more complex problem than just dealing with the insurance pieces.
Being discussed so much in Washington today.
Well -- -- like to modify behavior.
You know -- Yeah -- -- through taxes and that's why I mentioned you know what maybe tax breaks -- tax cuts for this you know of a certain you know the biggest of the question then becomes.
Who decides what the parameters are you know how healthy are you but obviously you know if -- Hi there are obviously would be some I guess accepted.
Levels -- -- -- of smoking or nonsmoking and and his programs and what we do as we bring programs to employers to.
Help their people know what their numbers are and then for the folks at risk factors do something about it.
Safeway is a great example they were in what the CEO -- was in Washington earlier this summer.
They focus on four things tobacco use healthy weight cholesterol and blood pressure.
After people have they score that's out of the norm medically accepted norms for any of those areas.
They're given a chance to do something about it and if they do something -- it and -- -- scores they get for discounts on their health insurance premium and it's working our costs have been flat.
For a couple of years now they're not growing at 8% per year there.
I didn't Cambridge yep concentric you have it last words we've got to go out thanks for being here and don't -- those cheeseburgers.
-- stay away from the other up.
You -- did lottery I do moderation that we -- and I think handles hazardous accumulate this.
Okay mom like so much I know it and take a quick break as will be will be right back.
Welcome back again everybody foxbusiness.com.
-- make sure you said join us on the chat on the web this inactive but chatting going on with our viewers that Twitter FaceBook.
You now you know I'm just chime in whenever you have a thought on what we're talking about here let us know -- you wanna now we've got an interesting conversation come -- Robert -- you know what coal -- -- -- -- -- But but but but.
There you go I'm so glad you six.
I've got to tell you what caught my al-Qaeda you know me and love the guys I happen in games that I like and one -- here and I'm should be near and dear to many of our viewers here it's called bail out bin -- imagine who that would be think I got yeah back to gain on the -- -- right you can download the -- here for a 99 cents.
And basically that what you're doing -- you're excluding all the viewers that don't have -- -- well you know that right and it's that you can go online and read more about it you can hears that the screen -- -- it -- basically -- piloting helicopters and his famous speech about the -- money from helicopters that's exactly what you're doing you're dropping cashed in on all the banks here -- -- And -- denuded by ticker symbol here seat for Citigroup GS is Goldman Sachs and -- -- and -- And then you go on and then later on.
When you're not bailing out everyone that pigs yes pigs in space -- the they were inspired by the Muppets or by Pink Floyd.
Nonetheless you've got flying pigs running on -- piggy banks and they -- they will kill you in the end if you're not careful just let -- kill Kenny on South Park.
Yeah they killed -- And I yeah but -- -- -- -- probably -- if you win this is you've bailed out every one.
This is -- you were leaked to the set -- -- -- -- I was bailing -- everyone did Joker than actual game it's an actual -- some guys you can't have him on the you know good for him that's that's kind of how do you win points I mean you bail out everybody successfully avoided pigs in space -- accumulate money and you'll have a cap you bail out there.
Yeah I'm gonna give them money.
Everybody build up and that's right spot on -- -- application helicopter been.
-- -- -- -- -- -- -- -- Think I'm Lisa Campbell -- -- -- joining us right now founder of blog her.
I think at least that log out after really interesting blog and of course some the Blogosphere is just huge these days you can't.
Help it read then they're influencing the media they're influencing politicians and the blogs are just huge to use our -- -- blog her.
You won the co founders and that's cracked -- -- -- Tell us about the blog real quick so people have a basis for and that we've got some good questions -- -- right.
Well back in 200590.
Co founders Lisa stone interrogator -- and I.
Actually started with a conference.
We decided the CE LE.
People are asking the question where the women who blog.
And we thought rather than talk about it on our blogs what we have an event and see who shows up and -- 120 days later we had.
A sold out of them with 300 women who blocked out and from there we decided you know what this community and really passionate and positive and from there they they really told us where they wanted to which is they wanted more live events -- meeting in person.
Is so powerful.
They wanted a community where they can find each other every day which is -- dot com blood.
But we also wants the publishing network.
Where over 2500 bloggers now we share revenue -- -- we have a business model by the blogger and for -- -- -- -- how the how're you doing profitability realizing that kind of money we're -- towards profitability have had here are -- how that's where you answer back with three rounds and how -- that -- just before we get too far along that we've heard you have mixed reviews on the venture capital market right now.
-- -- we actually got our first round of funding in 2007.
And we've had three rounds of funding for just in the nick of time it sounds like hello I'm not we've had a great experience but we got another round of funding this year and and what was great is that we bootstrap the company for eighteen months so when we walked out trying to outside investment we -- revenue.
We had growth.
We had a plan that was based on more than an idea but actual things that were happening in that we can point to as evidence for where -- was -- outright and that and that does make a big difference -- -- the revenue coming in so just an idea does is a good place to.
Start no doubt.
It does make a difference because I promised throughout click on an erupt again with some comments from President Obama that he's speaking he said that the -- made quote critical progress.
On the health on health care he also said.
That he expresses support for the senate health care compromise so those are for some pretty strong they are pretty -- president.
But moving right along -- -- -- spot is chairman says such an important topic for advertisers.
Out there and I'm sure -- agreed the fact that.
Anything to do with mom means anything to do with parents seeing that kind of thing.
Blogs are a huge focal point for folks out there.
And the advertisers are catching on very very quickly I -- -- consumer companies all the credit women and in this country -- the majority of the population the majority of the voters and they certainly spend more than the majority of the household dollars a -- -- the majority -- Internet menopausal -- -- -- right and you know -- kind of realizing it more quickly -- -- politicians -- the media.
Our consumer companies and they realize that women really control the -- and that's in households with and without children.
Women have that power that consumer power and that before we run short on time I wanna get this question because I'm very curious about the second -- some of our viewers are curious about it to the anonymity of blogs -- obviously this is the big question these days whether or not he should have to identify yourself because blogs have such a large influence.
On the thought process of so many different industries out there -- politicians etc.
should you have to identify yourself on -- blog what's the latest on the.
All well certainly bloggers -- the first in media to use pseudonyms.
And what's important is not so much the name but the persistent identity.
But when we -- with our bloggers in our publishing network.
-- -- pseudonyms on their blogs but they have a contract and a relationship with us we know who they are.
We have we have to pay them right so so we know who their identity is and we had a contractual guideline that they sign up for.
There is a place for anonymity and sit in in many and we don't think one.
Code of conduct including requiring real name should be required a cross the Blogosphere.
But for people who do business with us of course we know who they are behind the blog name.
And of course I mean we've got viewers Chiming in that there needs to be ethics and blogging and that things -- easily -- -- so easy to get things out and posted on a blog it is sometimes at least the perception there's no accountability.
Welcome -- -- bloggers first of all our blogging about their lives.
And they're not putting themselves in a position to be.
Considered accountable for things but then again if you're the kind of blogger who wants to work with marketers for example on an advertising situation if you're the kind of blogger.
Who wants to produce a journalistic blocking.
Then yes but they're already standards for journalism and there are standards for marketers and advertising so blogging -- a tool it's what you do with that tool that matters and if you're using that tool.
As a journalist or as a someone who's working with marketing campaigns yet you need to follow those -- And I'm reading your blog right now and I have to I have very serious question -- -- -- actually people and I'm not a big blogger I understand that the huge industry in and there are.
You know that it's a huge atmosphere Blogosphere web -- mainstream that they did mainstream and I'm not -- initially saying that the -- is still half frozen gets excited broccoli cheese Castro only.
I mean is this what I mean but everything with serious that Tiger Woods controversy to health care is on here as well I mean what -- people using your blog today.
When we -- Like her dot com we decided from the beginning we -- not gonna create another pink and purple silo for women and their interests so we cover every topic from politics parent and technology.
And it all flows through the home Paris and here advertisers out right now we have did -- running campaigns we have a big initiative with sprint.
The platinum sponsors of -- today approach you -- do you approach that's a we have a direct sales force so he definitely are out there hit the street.
The how do you advertise for them because I see spring is at the bottom of the -- roast isn't done.
We have all of the traditional -- standard ad but we also do marketing campaigns that are more engagement oriented and interacted.
So we is banners for the broad -- reach over twenty million unique visitors a month.
So it definitely adds bring that reached to the clients and our customers but we also do engagement campaigns to find people who are potential brand fans -- -- -- blogging do you have the cumulatively multimedia.
On the we definitely video is something that's we've already been working on and I'm sure we'll do even more in 2000 intent.
It really is just another way as the foxbusiness.com.
Of communicating with the online audience I've got -- yeah.
And someone else -- -- to it on the board here but I can only imagine.
How your viewership has has increased.
With the Tiger Woods controversy as -- -- controversy but I won't go any further than that but.
You know there's always cyclical reasons that different topics take precedence and entertainment usually comes to -- -- during award season.
But then there's always those news events that drive a lot of traffic and I would definitely say this is why.
Very interesting stuff I am glad that Kandahar there at this time of the event.
Com I -- not where you getting that.
Police account or thank you so much for joining us flog her I think I have blogger dot com them on there now.
About the rose another blogger but it looks pretty interesting and obviously it's that can -- a lot of attention of the dollars out there and and I paid advertising dollars.
Right so that's it for us that's already that goes by myself back thinks everybody's about joining us Dow's up ten points and the -- -- --
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