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I'm gonna -- foxbusiness.com lines is -- -- how often running on them and hurt her break out.
-- -- -- That patent and a huge -- that we have we hit this Paul Otellini the CEO of Intel is -- to be life here on foxbusiness.com.
Live in just a few minutes and -- setup we have our buddy list claimant is out.
For three days in the valley series and she's going to interview.
Otellini on the network on -- this is there -- -- a few minutes but when they finish on that interview she will continue.
Exclusively here on the Internet live on fox this is dot com -- so that's the new authorities should we'll see what comes out of it.
What we actually -- -- could be a big hour of course for tech news -- all over because they at least now there in San -- California get the Big Apple conference taking place -- real Steve Jobs -- will -- not we're going to be watching that as well.
-- -- -- I would bet he does in one way shape in debt and -- racial performer and I think -- the people are being dead.
-- you have one of the many rumors that's out I don't doubt simple say so.
We'll talk we'll talk about apple a little bit because that obviously -- coming of an awful we talk about a fraught with the Palm Pre.
Also get -- that up palm's stock is is down at the huge running head of the pre being introduced over the weekend.
And Neil Cavuto it's also coming -- because you had an interview with the boss mr.
Murdoch on the Fox Business Network earlier so we'll talk about the state of the media a lot of spots and much more right -- -- Yes.
Well Paul Otellini our -- on the I've been on -- big boxes -- yes I can't totally -- toll from parents kick this off the it's a book Rupert -- -- Boston -- had several of the same corporate umbrella had Mike welcome back thanks very much good to see is so.
Are we haven't talked at the stock market yet -- introductions -- down a hundred points on the Dow today you -- over the weekend in -- about kind of being backed his pre Lehman Brothers markets.
Tell us what you mean by that there to set speaks to where we go from here a little bit.
To some degree yeah I mean all these different measures essentially are at there best or most normal levels since about Lehman Brothers went down last September.
That what are you talking about treasury yields basically bumping up back at that level and that the overall volatility measures and yet in the -- there.
Credit spreads all these things that matter Goldman Sachs and Morgan Stanley's stock prices so we're back to a point.
Last fall when we work.
Before we worried about total system failure right.
And and financial system solvency.
And we're just trying to discount the results of a really bad reception yet so the point is that.
That complete -- you know that falling off the cliff trade is off the table that's point to me that's what.
The 40% -- off the lowest it's been it's the process of that being removed from the table.
OK so then we are in a position where we saw a lot of things to be concerned -- you mentioned treasury yields being back that level but the idea that they're going up.
Mortgage rates are also going up that's a lot of people concerned about the economy and -- the recovery there's a reason to be concerned I don't know exactly what that level of yield is that says okay.
It's good if it gets up to that point because it means we're no longer concerned about deflation and the -- safety trade.
But it's bad if it goes up higher than that so I think 4% on the ten year treasury might beef and a lot of people's minds that think.
And I do think that the other thing coming into the weekend and now with today's trading.
That that people have been talking about -- you had to significantly better than expected employment number on Friday that yet.
Left the market basically shrug -- shoulders yeah and interestingly and -- -- could play this either way.
Interestingly -- a lot of people doubting the numbers I mean it's very extraordinary when the the Bureau of Labor Statistics.
Has to come -- say actually this was the real number wasn't some mistaken.
Inaccurate number I I find it almost encouraging the people are so skeptical that you could have a better than expected number even know.
As bad a number as we've seen in twenty years -- in the last -- Well -- -- is not moving -- marketed treasury good news is not necessarily moving in my Q what do you think is the next big thing that pushes the market in one way or the other.
I think you're gonna probably have to see.
-- the as the quarter ends.
Few things always happen right one analyst always kind of true up their earnings forecast for the quarter and companies come out -- that's gonna happen next several weeks.
Men and really to me the market response to that activities would you care about it seems to -- earnings revisions got finally low enough earnings forecast Scott finally low enough.
And we had this left and then how that money managers play the into the quarters a lot of -- -- cynical talk out there that although what the market -- back a little bit but you have to show.
You know run.
Them into the into the quarter so that you show good numbers and -- who knows what happens after yet we'll still a trade through the summer because we've talked about this before the comps for earnings start to look pretty good towards the end of the year compared to last year.
All the little you know depend how the markets looking going into that.
Exactly and that's why also that you can be played both ways -- people have written off the second and third quarters in terms.
Your of your earnings growth you basically said OK tell me what's the fourth quarters and look like elderly which stock should trade him right.
Again this 40% Ron in the indexes has to me.
Got people to a position where maybe we've already fully you know value that come back.
And the reason for the mass confusion and I think kind of listless trading to as I could.
Character -- this market.
Three different way we were up 40% off the loan that's a huge move by any measure we're down 40% from the all time high and -- flat for the year.
Right or up huge bang we're down -- -- we did not.
All those things intro to depends on the day -- what kind of article you want to reference point.
Exactly effect and exactly exactly you know we think we should get for your -- -- you're ready to -- column you want to make the case for anything it is an individual had a lot of people playing their preconceived trades right the bears are saying this is nothing but -- In a bear market and the balls are saying we have an epic move.
Unlike any we've seen since 1980.
And -- things really telling us that the market really has to deal.
Anything we can see a bouncer pull back in the next nine months or twelve months or eighteen months it could still be -- part of the same exact cycle but.
And it's it's really tricky because I think basically you now have almost everybody on board the idea that the march low.
Was -- barring some kind of duke adequate -- I know that that X-Factor there's the X-Factor and what they're also is.
Is a lot of room between here and that -- hump so we've come up so much.
That you can lose it in almost a third of the market's value from this level and while we still held the law but what fun.
Went out we talked a little bit about finance yours and analysts.
There hasn't been anything coming really out about hedge funds and the big money that's still there may be aware where -- guys because it apparently they were the ones that according to some reports that really moving the markets hit those lows -- Snake oil -- a certain way as of last year at this time so where they now.
They are playing very defensively believe it or not -- by the evidence of the returns today are.
You know up a few percent on the year generally trailing the markets.
Badly lagged the markets and in April because it's as a group they kind of felt like well we -- -- be genuinely had here and so we don't really wanna buying into the rally yet.
So where they are is almost side.
To a large degree and obviously this changes every day and I'm sure -- -- -- more stock and they did a while back but they're not.
I don't think except on a minute to minute basis driving this this general -- -- -- missed the 20% plunge into the -- -- But they also missed its comeback so I think there's what -- mutually assured frustration.
Is that good though for -- that common investor out there that may be some of these hedge funds are sideline to bed.
I hope it's good I think it it kind of removes this -- this generalized fear that.
Day whoever they are the -- are they really don't like the guys in the suits and some undisclosed building somewhere we send name net -- really understands and -- they shut down the -- -- -- -- We have another one and they don't Wear these those guys address -- that's great genes and not -- I am very very -- -- No it it.
It's probably have a net positive that there's not this sense that again those people in -- room -- throwing around the puppet master on a minute to minute basis.
I honestly think that -- yeah obviously can't characterize what hedge -- in general we're doing.
But I think a lot of what people worry about where at least -- made uncomfortable by.
As they watch the market especially have these big swings.
Up until recently is it's really.
Computer driven kind of quantitative traders.
That are really at play here they borrow a bunch of money and they own a lot of stocks over here in the short a bunch over here and he moved very fast and milliseconds matter.
And that's the kind of stuff I think gunners you know your basic human -- -- -- you.
I think your basics and you have people trying to gain what the ETF I didn't have basic human and on the market it's not a market maker for our basic thing.
It's not -- -- basically about at all.
Mike -- toll from -- is with us by the way you're just joining us Paul Otellini the CEO of Intel's being -- on network on the practices or by this -- and part of her three days.
In a valley coverage three days -- -- covered him when she is done on the network she will continue the interview live here on the Internet.
-- foxbusiness.com live now speaking of technology that's been some run you mentioned flat for the year not -- -- technology.
The NASDAQ has been on a great run and some of the individual stocks within it.
Have even been on better runs -- Attack right now.
I think that it's been a great beneficiary of a lot of things everyone want it right it's.
Great balance sheets naturally you know you -- you know that you don't have debt and these are companies for the most part.
And you had growth what that's not just cyclical growth.
In other -- growth not just because the economy happened to be swung back.
But because you have some kind of an upgrade cycle you have a product cycle you have some tangible stuff you can actually hang out on.
And I do think that this they're beneficiaries of the general.
Kind of on clinching of that risk aversion trade right I mean they do move faster they have higher expectations.
And by the way tech was no longer extraordinarily expensive as it has been you know in in years past it's just another sector.
That's the interest it.
But some say -- that it's seven -- With the benefits we've seen -- being in technology really come from job kegs and technology companies being able to draw down their inventory and really adjust quickly during this time rather than actual organic growth that's coming from.
Blockbuster new products and new customers around the world so.
How do you -- the exact issue and that's another part of them being just companies right they're not magic -- like -- humans and it made up all another few real humid.
But I do think that that stocks trade as if the these companies are gonna have the capacity to grow better in the economy whether pans out or not I think that's what's driving and also.
The NASDAQ in particular is very heavily driven.
By a relative handful of huge stocks and those are the ones and almost qualifies kind of high quality.
You know blue chip type -- Is it just answer real quick this viewer weighing in here -- we have a guns and yet and saying that the -- loading -- -- mid and small cap stocks in anticipation of the market's rally in really a lot of the stocks that have been focused on in the media.
And by analysts and there have been these eight companies on the defensive plays in and of themselves beef because there can harm us exactly so what about that -- the strategy if you.
Your confident that we actually have our kind of off to the races.
That's the one -- the stuff that's gonna move fast putts and already has by the way about things right now sort of going to be absolutely -- it probably is if -- if it's up from here.
If it's like new highs in new highs and through the summer.
They'll still stay -- I think I don't think people would -- out of that -- as quickly they get shaken out badly you know if in fact this has been a head fake and pull back.
At the march -- I've seen some statistics that said.
Small caps were as extraordinarily.
Way below -- -- and basically just.
More than any other time in the past that they had a lot of ground to make up.
And the -- too is because so many stocks across the market got obliterated.
There -- that many more stocks -- qualify as small cap the price really -- like a happy hunting graphic look at stocks like General Motors.
Like that kind of stuff was was yet to the -- into the little the bottom -- and 500 stocks back at that point.
They were micro caps in some case yeah.
Now that's has some very good points carry -- some -- but the -- -- good point now.
Big chunk of the companies in the Dow one of our viewers also pointed out all started during tough economic times which also brings up this larger point about these technology companies.
Intel or speak to Paul Otellini admitted wanted to tell start probably in the in the value -- you -- a note to start off all -- stars -- general letting Microsoft definitely started your game pot that you're not al-Qaeda.
Yeah and then Microsoft started in the seven yes and you you do wonder about technology in terms of innovation this time around and maybe we'll start to see some of that.
Come forward what again no I you know I want I wonder what types of companies that'll be -- because talked about that I'm sure of the next few days but there.
Where do you think that's going in terms of innovation because just that a lot of this has been cost cutting but they're still got to be some renovation there.
Is -- and what's interesting to me is that I think people are a little too focused on.
The these sort of consumer end of the innovation of the ways they want the new iPhone brand in reality.
The next fortune is probably gonna may be made through whatever cloud computing or some.
Innovation for business.
That you know enables all the stuff we want to portability -- the you -- go anywhere type applications but the product itself.
Is not as a -- you walk around.
That's it that's it think about Cisco and -- this is obviously not from his starting a -- that Cisco being editor of the doubt kind of speaks that some -- that's.
That did it the -- on the strings behind Iraq.
That's now you know the the sort of hard stuff the hardware of the economy's in its Cisco and arms GM comes out of this you know.
You have to search too far for the for the historical event.
You they've had this -- conversation battling.
An Intel making 68 bank of Ireland -- reference there.
We've had this whole conversation homes for fifteen minutes talking that the markets and we haven't mentioned the banks and still we bring up the banks.
The of the general consensus has been -- on Fox News this morning here if there's still a lot of money to make by playing -- stocks if you really willing to get in there.
But we had a conversation as the market to the market really need these banks right now to trade these banks to make it go one way or the other.
It still does I don't know that it on a day to day -- matters as much -- that I think at some point a couple of weeks ago.
We've been in a period where it ninety's sixers 98% of the days.
If the banks -- -- the market is -- vice Versa right you have seen things kind of get a little bit loosened up in terms that relationship here but you know what I think is -- makes little people a bit uneasy is that.
With this rally in the bank stocks the S&P 500 is again 16%.
That's not too.
Far below the 22% of -- -- -- so again we.
They've come so far and recover a lot of this ground and people are focused on that the steep yield curve you know the -- -- your -- -- -- you know somewhere five plus percent.
And that's that's the formula for getting back healthy.
But it's not really a formula in my opinion -- war -- businesses.
Sustainability leaders say that it possesses is that -- gonna happen mean we keep going back to sustainability what's gonna happen in this market what -- become has it evolved.
Does it does it sustain itself the way that it is that the banks making the type of moves and strategies that you mention.
I think that they both can back off and not change the story that we're we're we're in a somewhat healthier position here.
What concerns me about -- about the banks and other financial as businesses is that if it.
Good example Barkley is not a US bank that are global bank based in UK is selling its iShares exchange traded fund business for a good number twelve -- raise capital.
I would have spoken with the folks -- please you know year year and a half ago.
And that was the basis that they were really staking a long term -- -- so they're having to sell what they can sell there that growth the year businesses and stuff that's desirable and are left with kind of -- more prosaic.
All we do is make loans written right although -- just -- old school real throwback stuff and -- also there's some people who think that you know the authorities the administration.
He's almost been trying to force the very large banks that have gotten bail out money to become these kind of quasi public utilities to serve the rest of the economy.
And tell us when you give you -- use raises the papers say today right rather then be sources of financial -- -- I was gonna ask you about I was just about to ask you about that the whole.
Slash government involvement question that hangs over them because you're right that's that's come up again today is that.
Not -- is -- going to be limits supposedly on compensation or write regulations that surrounded but.
On companies and banks that did not even take TARP money they'll be guidelines I don't know how they're gonna be enforced which seems to be an open question about.
You know what are these guidelines -- -- be if you didn't take TARP money since seems easy to to say that they did take government money but that's still hanging over.
The banks -- even more than people thought it was going to be.
Absolutely and you know I don't know that it's not unusual for congress let's say or even you know regulators to yeah I to have some -- terms and these -- best practices when it comes -- -- -- people.
Honestly I think it's fighting the last war one which always happens in the aftermath of these things it's not as if the banks are now in a rush.
To create these new formulas that overpay their executives from each conference and that's not the mode they're -- right now.
So it's really a matter of either fighting the last war getting ready for one that we have yet come to.
It is it did you think at the end of the day though did you think that they'll be able to function and move ahead and pay people reasonable salaries -- also -- reasonable based on.
You know based on the new realities which is how profitable they are I don't think that you're gonna want these boards of directors themselves are not even going to want to pay people for.
The one year huge profit through huge dress I caught lightning in the bottle on trading desk and you know going to be my fortune so.
It's gonna get changed.
Both -- night.
You know that kind of suasion of of government and by these companies themselves realizing that had a broken model and lately things have been bigger question McCain gets you right now but wait for taxpayer and -- -- -- those guys are going to hedge funds or overseas or wherever.
That he's managing -- -- and a face an -- -- -- -- -- That was so much of the lasted.
Hey Mike thanks a lot.
Coming and we always really appreciate it might cent toll for -- like we said we have so much coming out here -- -- -- gonna come talk media with us after his interview with Rupert Murdoch -- a little while.
With -- it is still ahead a live interview here fox this -- dot com live.
With Paul Otellini the Intel CEO and we'll also go to the apple developers conference will be continued.
For New York City -- the San Francisco now and -- famous muscular any center -- -- equally famous -- now joins us live from -- -- -- get the idea what's going on that apple.
What's happening this morning.
-- -- -- is the biggest death have been apple on the US and that will they new product.
That this show kicks off in a little -- a half an -- and it is a packed house today two big questions will -- -- of Pia.
And what will the new -- kinda look like as sustained jobs well.
It's anybody's guess as they say -- he would not being Philip -- is fit to keep up the keynote address.
-- by the buzz is that says CEO's seat belts and may make an appearance.
-- the six months on the -- equally.
As for the I -- what we do know is that will be a new operating system wheeled out we've doubled the story can look -- video and it is -- capabilities.
The possibility to listen to if in radio and -- wholesaler had downgraded I find.
It's been fine but everything and it's saying it may retail -- -- a hundred dollars and this of course is old buzz and speculation at -- kids over.
We'll nine more in about a half an -- back -- you real quick release any any chatter on the street people campaign plane went.
Upgrading Simon then he heads -- -- is that the as big event there Iraq -- watches every one friend developed his analyst.
And blog is inside the list goes on and and a big buzz is obviously the I -- -- I think it's it.
A little bit -- -- -- -- be calling it the high flying forward gain.
But because -- is obviously.
A lot of buzz going on about walking behind you live fine we'll bring and don't think it not to mention sales apple.
Just -- just by the by in 2007 in that this weekend neon sign related was -- Thanks -- 275000.
Units the following year thanks told a million units of five times.
But this isn't really -- product for apple.
-- -- Talk more about -- -- -- thanks so outlook for the coverage on the on the network once again presentation happens whether you.
It's much because I think it is an -- -- San Francisco thank you Jack in the Box -- pop up on saint who will it be right so I mean it is.
This time they think about the timing of of everything that's happened here over the last few days is that the -- we're talking about ways is -- it was a re talking to Clayton Morris -- -- on the from FOX & Friends are basically stocking this is morning earlier he had a good way of course.
And he came on that they showed us this morning but I was I was telling him that -- I should know there was a new iPhone coming back as soon as soon as I got one thing about a week -- and they started the speculation of what the new iPhone would win it would come out right what it would -- -- economy chain indicator of the war in it that -- by the anything it's old ball out yet and is gone.
-- -- -- -- to see that consumers continued to spend money and I'm curious that's really spending money on because for example we got this report from McDonald's this morning.
They -- that sales overall internationally were out but sales in the nineties disappoint analysts slope a little bit because.
They got fed feel that their coffee and McDonald's is going to be stronger so.
It was still up that.
Wasn't quite adept analyst wife still -- not spending money on coffee mcdonalds were still shopping on the dollar menu it seems like some of -- are still buying iPods.
-- what are you -- how is this is this an actual can you justify this type of expense.
If you need a new phone to go out and -- new iPhone.
It could you can you do it out and that you bought when and how much that cost you.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Yeah they said -- would you go out just updated would you go out and another.
A month and by anyone.
Now I mean not now I mean I just I just out so no -- that you -- that -- But the apple product -- I have not that it.
And then of course the mean -- from the very few people are gonna buy or commit to a device which is mostly but that's my twice that's my going right back out -- by anyone that I think Apple's gonna get it is -- Benefit from is the fact that the original.
Nut cases that lined up around three blocks and looking everywhere else a couple of years ago by their contracts are all coming up now so this is a perfect time.
For them to do with that this is certain segment of the population does have a Smartphone at all unlike you know you have three of them this -- I don't have regular cell -- they're looking to get into the market they say.
But this is pretty cool wanted to get here who -- that video this is going to be.
But I'm just curious about an -- again and not an apple endorsement all the people are buying them around the world -- -- it's the computers or -- iphones or otherwise.
So what point does it become sustain in a sustainable way at what point does become unsustainable when do we say -- apple salad and at a new product but we're over that.
I mean I'm just I'm -- it.
Though that's a good -- yet.
-- is a good questions to the apple and is in such a unique position in a lot of ways when they introduce this.
The new technology because they still are able to generate the buzz which they do with the iPod it's really been amazing to watch the progression of them to move to -- new device like this.
You know the the excitement such as it is it came from the Palm Pre over the weekend was literally nothing compared to what apple is able to generate just around an event like this -- is an update on their techno pets.
-- and just looking at it just comes commuter boards Scott from California says.
Is talking about apple of the deep management weighing on that -- says he's -- spending money on food not my right house.
Time is that spending money to find a new business that's interesting Tom -- -- interesting to see where consumers are spending money because it -- comes down to them.
We were just -- in California but we're going back out there that's right this is this is very cool.
Chemical that is very well both claiming in general very cool Coolidge is a very -- get standing by with us right now live -- -- -- hope that's appropriate to call mr.
Actually I'll tell -- it is appropriate.
For her baby Vegas you're like -- here's -- excited -- -- quick.
Actually on this having Liz and Paul Otellini Intel's CEO did an interview on the Fox Business Network and I didn't -- -- to see it because we're sitting here.
Talking -- you on fox this is dot com live but now she's joined by mr.
Otellini on the Internet.
And -- and continue their conversation there as well as we were talking.
I mean you -- funny how cruel and he can I tell you.
I would love to blame that on technical difficulties I was completely zoning out -- called me I have nothing outpouring and we know we -- get very relaxed out there a -- -- I California girl but it's great to come back up and here we are the Intel museum with the CEO of Intel all -- -- -- me.
An 88 billion dollar market cap for this company that is spending a lot of time just creating and what I find fascinating is struggling and he is spending money.
At a time in a recessionary environment where most people aren't zipping up the -- how much money you're putting -- -- -- development right now but billion dollars here.
And where's it going.
About 20% goes into silicon technology development every year to keep Moore's law alive and the other 80% doesn't products.
-- speaking of which we should talk specifically about the atom chip because a year ago you launched it now it is getting pick up in a lot of products out there.
You have of course netbooks that -- brought along that we can hope he's up to the camera once again but.
-- -- -- -- -- in my hand you've got one as well netbooks refs are suddenly taken off it seems like that's going to be the consumer.
Electronic region that that you want -- picture clause and is that how what it is.
UBS -- the hot product in recession for sure over twenty million units were shipped in the first four quarters of its existence that's pretty fast.
And I think it'll pick up to the the price points even more so this year elected double over the over the next four quarters.
The interesting thing about it though is that computers are now becoming Sochi you can put computing -- work.
So -- in products like this.
Going into into -- intelligent.
ATM machines and automotive.
Infrastructure to bring the Internet and -- to give you better information systems and -- support.
Heck I heard a story -- the -- Chinese are looking at the putting.
An atom processor every kilometer -- -- and -- thousand kilometers system high speed rail they're building has PCs are now cheaper.
To deploy than that does the old way of censors and cameras.
And -- -- I should remind people that don't know is not an energy gulping chip that it is much more energy efficient correct -- it was designed war.
Very good performance at very low power.
And allows -- to into small things you find -- that's what people want these days there's so much concern about green technology and we know the Obama administration this is.
Giving the big thumbs up as far as stimulus is concerned to say go ahead run with that but make sure its energy efficient.
Rick green is critical across the board not just some small things but also in Davis and -- senator -- you're going to visit Google tomorrow.
The biggest cost of Google isn't the hardware -- the electricity for the surfers yep for the servers and so and so.
Build buildings more energy efficient.
Chips to run the server farms.
It's saves them money and improves your performance.
And -- that trickles down starts in the servers because into the mainstream desktop 31 that would turn them often minor -- -- remotely lower the power.
Over the energy and now -- to handle -- This is a forty year old company brilliant scientist running all over the campus so we really feel so fortunate to come be in this museum watch what you guys do but.
You also have such a background in economics having -- -- in school.
What you see is is being done incorrectly to get this economy back on track what should we be doing.
Well I would I think there's some good things in I think in terms of the stimulus package like the move towards electronic medical records as we've been talking about that for a decade let's just do it.
Make it -- the whole cost of taking care of people when they're ill when he when they're healthy.
Lower -- bankrupt.
I wish though that we have we're spending things more quickly to really put -- -- the bulk of the stimulus spending.
The high point -- and play well.
Yeah I I'm.
Fairly confident will be out of the cycle by 2012.
I guess I -- -- -- I look at other countries and seen the spending to be much more in terms of infrastructure near term.
-- instantaneous stimulus -- get an instantaneous results.
Example China's 13% credit on all appliances which include computers.
We've seen the market for computers take off in China that helps the Chinese economy helps a local production there it helps vendors like us.
You wonder you wonder money spent and when he well when he won thirteen of working -- make a big difference.
It sounds like you're keeping here I am trying to is that really the place is -- this is the second largest country market in the world today for computers.
It will -- -- that the US is number one it will pass the US within the next few years.
We're gonna talk about Smartphones because this is a huge day for Smartphones were coming off a weekend where the Palm Pre -- just launch we've got Roger McNamee of Elevation Partners coming up on Fox Business Network.
In just a bit and and talking about a guy who has put so much money into that Smartphone it's getting great reviews it's sold out some stores.
But on a day when apple makes the big announcement about its phone.
It in my opinion it's a much better more competition is better for all of us out there but how -- you get in on that this us.
But I think the world changed when apple introduced the iPhone and Smartphones for a long time of the iPhone was more of a computer -- -- well.
And and the user basis is just so elegant and that to me.
Was was -- a gunshot went off in the industry everyone on the computing side.
On the handset side says this is the new target.
We're going to build really Smart really small computers and also do voice that fit your pocket that do a lot of things you -- -- in your life.
Intel's in this in this same camp -- -- -- the -- that went to these things so it started a whole new round of competition.
At the hardware side in the software side which it is always good for for the consumers and always good for the industry because competition is what makes us.
Competition to -- thing and of course you know better than anybody that this this can sometimes be.
Attack because of the big European Commission fine of one and a half billion dollars that was handed down against Intel saying.
You behaved in an anti competitive way I'm really talk about this because -- look at -- look at what's happening in the Europeans tend to regulate by saying.
That they want.
Up the fastest runner in the industry to slow down so the other guys can catch up vs what's best for the consumer.
You get by the same token mr.
-- -- also say.
Well what is going on at Intel where they feel that there is so much that that it is is smashing down -- -- Aren't you behaving in any unfair way against her competitors -- Absolutely not and we certainly haven't seen any evidence of that in terms of consumer being harmed driven competitor being harmed -- the competitor that make these complaints actually did very well.
Prop up the best in the corporate history during the time -- -- actually making those ones they gained share on Intel and Intel you know with a better product and we started getting your back on them.
I've seen this cycle now for 35 years.
Companies go back and forth in this industry the best technology.
Typically wins that -- typically have the best technology.
Do you expect that you might lose some of your employees some of your competitors do to fight to keep them in this atmosphere well it's it's a lot.
Less of an issue today than it was two years ago they're not a lot of jobs out there right now and then the attrition rates really dropped.
For us and for the industry -- but in general focusing on on on.
Keeping employees happy on training them on giving -- the job opportunities on paying them well.
Has been a high priority of my tenure CEO.
And I think I think we've got a fairly good -- sort of morale.
Right now and we went through a restructuring of the corporation -- 05 and 06 for other reasons and that then the business climate thank god we did.
We downsize the company we've got to focus and having not done that in those years before the recession we would be doing it.
In -- today's of the coupled with the employees we have to let go and 06 had a great time to get a job -- tough job to do the job market was still -- If we had to -- 120000 people out this year.
That would really be I think interest -- trap.
A lot don't you how many days of the year do you find yourself -- half half of the year.
You've got a big plant in Israel.
We know politically there's so much going on there but somebody was saying the other day -- tells Israeli plant churns out some of the smartest.
Products and chips ever what's -- like to do business in an area that's always under that political and -- pressure.
I think to some extent that tension.
Focuses the mind is Andy -- would say.
In Israel -- we've been in Israel for over thirty years.
I started -- with designs that are over the number one employer from protecting on which is their problems of their life here helped him.
And we have built.
You know many of our current products have come out of Israel -- sort of -- Wafer production there.
When he five years ago and now have one look very large events are there.
People work they worked really hard they're Smart industrious.
And even when there are rockets flying somehow figure out a way to the work done because they know that.
That's important to the company and to them and the economy and if if the economy.
Stalled everytime there was a political issue in a country they wouldn't have -- economy so that will learn how to work through it.
Well it's funny because -- you bring it all back here and what's happening a year ago Bear Stearns had.
Lehman Brothers was about to fail.
And Wall Street was on tender hooks and we came here to three days in the valley and all anybody was talking about -- ideas and creating and cloud computing.
And netbooks and Smartphones and -- my gosh the -- what do we do it it was ideas and commerce.
What is it about the genetics of Silicon Valley that keeps -- -- tuned to just looking forward vs backer to the sides.
Part of it is it is the products that we've built as a as a community.
You don't have a piece of technology that stands still oh -- we we invented the acts.
And use that X and change for the next twenty years it doesn't happen that way because someone else -- invent invent a better acts.
In banking and in many of the other industries in this country don't have that there's -- psychology.
And what works well here.
Is what is says that you you can do a better job isn't the only way to sell another product has to do build a better product than the other guys plus one.
Or even in your your -- last one -- Be watching you build the next one of them that's one Paul Otellini of Intel thank you so much for coming on our web based show we love to have names like -- and it's drilling for our viewers to hear more about your business thank you -- Jenna and -- again great ideas they're just thinking about coming up with ways to make our lives easier and fast.
There I know -- and it was great to hear -- it here on the Internet exclusively after you finished up with a network so thanks very much shot.
Do you attend historically are coming on great stuff we'll watch the covers three days in a valley as we in the valley as we continue with this -- out there.
All right moving right along today we told you earlier that we were gonna have our well our boss on to talk about his interview with the boss but -- works around here.
Neil Cavuto interviewed -- Rupert Murdoch on the Fox Business Network earlier on many of us watched it in and that's sure it's up on the web -- now you might get a chance to.
To watch it yourself -- Neill joins us on set to talk about -- -- more may -- but.
Uninteresting you -- you guys covered a lot of different subjects and obviously the state of the media industries are people going to be talking about what stood up well you know I he is accurately predicted.
I'm the severity of this downdraft -- about three years ago I remember he was saying you know we could have a real serious credit crisis on our hands.
And he was one of the few saying he would that he was worried about the the impact not only an advertising revenues for any media giants but.
On on the purchases period.
So it was a little ahead of the curve on -- -- -- like to get the lay of the land from someone travels all -- the world analysts think yeah -- passport looks like the Manhattan yellow -- -- right but.
Yeah 88 he does have.
-- fairly sanguine outlook on the world so.
You could step back and so what does he see that maybe others -- saying in.
Courses are boss these things -- no win situations of journalists that's why you have to do your -- -- to art but I the one I took away from -- is that the look it.
He still sees problems are not getting out of this any time soon and that that kinda.
Puts it down -- on those who were hoping for an immediate turnaround because abstract -- talked about -- -- towards the end of the interview how we determine newspapers in a minute but just generally as you brought it up about the economy 1011% unemployment.
-- three years to get out of it.
It's still mean that reminds us that they were pretty rough spot here at least he thinks we are the line -- left out of that is that I know something that probably should have followed up money has a view to middle of the spending is gonna create its own little -- down the road and be inflationary.
-- for media companies -- it's it's particularly onerous because.
When you're dealing -- an 11%.
You know it it it it it puts a curb on how much two corporations will.
-- fork over to do advertising.
So he feels that first hand but.
He is among the more dire when it comes to those forecasts that -- He does notice that his stock has rebounded from its lows right but it's still as he likes to remind me half that size yeah I guess when -- -- you know you always have to prepare for the worse than you know work from there and so you know I want it I know -- to -- answer this because.
When you're worth.
-- -- -- -- -- You know when that stock slides you know 507080%.
Whatever it is.
You're down a lot of -- cost -- intensity and out.
Any says he doesn't want then you know I I guess fine you know look at it but everyone around you and everyone alerts you use -- -- having -- good -- it's really good guy the gold closed the net changes.
Although this it is very interest and so.
Douglass thought about media little bit and you kind of in this in a unique position to talk about that in some ways because you have this dual role for people most people know you know here at the business network of being an executive position and also being right on the air so were all thinking about how the landscape is changing in terms of how.
Session we make money doing what we're doing whether it's in television -- newspapers and how everything is monetize and he talked a little bit about newspaper certainly and how they're going.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Now with sudden here you are in this this.
High tech world you know just on the Internet so you know we're monetizing you to death high hopes that -- and I I think that is what he speaks -- and one I think is very interesting as I told the -- my daughter who gets all of her information yeah pretty much all their view of the world.
From a hand held device the phone and I always reminders of nine -- he really only getting them that the bare basics.
Jesus that's all I need so one of the things that posed to mr.
-- and whether.
That has a tendency to simplify it's not dumb down.
Young people's view of the world and busier as well they're getting a lot of information rapid pace and and my daughter's a testament to that.
But I also too much younger boy -- you know six and seven.
Who aren't even doing that.
So my question going forward is I know we're shifting to these -- of technologies where you get all of this on a PC or hand held device or.
Totals you know eventually Dick -- -- -- -- -- but you can't fit the Pentagon papers and watch now and and I.
I know what he's saying but until we find a way to harness the convenience and use a very get a newspaper.
In a technology that that that young people.
I would extend.
Like your cells -- taken aspired to it and then.
If we don't know.
About the future of newspapers we just we you know it's interesting because now everybody's trying to -- and mr.
Murdoch talked about this support try to put newspapers obviously in digital form -- try to come up with how that'll look.
The -- -- -- you -- to you can read a lot of the Kindle you have so that's a little bit bigger you can read it.
-- an iPhone seeking Tennessee.
And of what kind of phone -- but you consensus see things on an iPhone a little bit better and you can read longer and -- definitely getting this column -- the sadly a lot of holes and and you and I look at but I.
I would never envisioned the day come where I could do that -- look at this technology.
And I can affect I've just gotten the latest incarnation which hasn't rides that you could I hold it all really did well a lot of eggs she got -- not only gauges as -- that.
But -- one of the things I've always felt about these devices.
Is they've got to be.
Easy to use.
They've got to be a touch screen they've -- it.
Men make pretty much the -- you get looking through paper or magazine or leafing through a book when they master that so that it becomes.
Ingrained in our DNA to use them.
For young people this.
And even you know for diners are like me it's agrees and getting that way because now thanks to Kindle device and there are many others -- under the commercial.
When you can put a lot of newspapers and magazines on a single device.
-- a lot of books on a single device.
Convenient little remote location and you get all your papers and do we make money doing it I mean cable or kind of -- -- short little -- I really -- of the cable we can charge for -- and we're we're we have it pretty good model in terms of -- -- companies and how they pay.
Cable networks but you know for print publications and even for us in the way we you know expanded mean can we make money doing it.
We you know talent always comes back to and I know it's a tired old line but content is king do you agree you know invariably does it matter the device of which that content comes that's.
Coming over small phone -- coming over.
A laptop where it's coming over Kindle device or whatever incarnation.
Fujitsu or Sony are coming up with now touch -- -- us.
You still gonna need something on there that is compelling.
And I always.
You know it's dead when.
Lou when the talking pictures came and it was considered to be the death of of of silent movie -- silent movies.
-- -- -- for a long time and became what was a burgeoning movie industry hence the VCR when it came -- it would be the depth of Hollywood.
People want to movies -- don't we know was a burgeoning development for for that.
We knew that the Internet was not the death of TV -- married very nicely.
With TV was doing so I think we sometimes -- the end of the world.
Prematurely and I think would.
-- product -- saying other executives who were it's going and spending heavily on these technologies is that.
We have the content yet we we have this what you wanna watch the movie you know Titanic.
On on a small device -- seems -- pointless to me or big screen but that's the future.
Now Jenna was over at Fox News Channel should -- report there it was -- W do you coming on that you might be around to sleep now know why I passed by and I didn't take any offense look good but thanks for stopping by another -- -- -- I it shows what this shows great.
Our view it is not at all one thing we've learned a lot during the show by the way and one of viewers -- -- A lot it's hard to orphanages and they like you like to YouTube copying of this sort of some sort they've been that that the -- is -- up.
You'll make Soledad I'm looking -- mean it's not letting it at all this is to go to thanks for writing.
All right thanks a -- all right guys appreciate.
You know hopefully next panic actually talked to you I don't think like -- hot -- anyhow and I Italian think you have people who a couple of behind.
And you know that's what our you know my mother diet.
In a little then it's -- yeah.
Long elaborate it's an Irish Italian rivalry when there's temporary time an attitude that can be run missionary -- -- -- -- -- -- -- All right it's a -- -- the interview with mr.
Murdoch on foxbusiness.com there on the Internet right.
All right we have a lot more silicon that we have -- back with this we'll get to -- footers that never boring and just the second to talk about oil.
And much more coming up on fox this is dot com.
Iraq -- -- today show.
-- yeah it was kind of cool knowledge of anyone but brick before that when you were gone that -- we need you and you look for it before that yes have him.
Speaking after he was done with Liz on the network to come on and give -- extra kind of web exclusive.
-- -- has gone so long to the president started speaking spoke for about seven minutes about jobs about the creation of 600000 jobs over the next 100 days or so distant perspective they'll remember 600000 Americans filed for first time unemployment every week as of 2009.
So it we have to keep some perspective that we talk about the job market the stock market.
Not so the money market as well -- -- I think he's standing by -- -- at favorite foxbusiness.com.
And interesting show let's take a look where -- oil trading right now I visited down most of the morning got it then that's -- so what does this -- right.
-- I have to tell you pretty flat pretty amazing when you look at what's going now with the other commodities -- because we have seen.
Major sell off in a lot of these athletes over we've seen a big selloff in the gold market in whom we're starting the feet.
The science of this shift I think.
In the commodity momentum that we've really built tough over the last couple of months.
And and we're not looking at the commodities of course we're really looking at is what's happening in the Fed fund futures bet.
What's happening in the treasury bond hit and that seems to be.
And creating the beginning of the sea change in May signal that -- get a pretty close to a top.
On the oil prices at least in the near term.
-- -- Because what we're seeing here is -- we're increasing the chances of a change in fed policy.
-- we're increasing the chances of an interest rate increase.
Possibly a lot sooner than a lot of commodity traders expected.
And if that happens -- -- that probably -- Means that we're gonna see a stronger dollar and with a stronger dollar that means weaker commodity prices up we're starting to -- the winds of change.
Right down here in the pass -- -- to be clear you're thinking -- his.
Either has been restored very very close to being read and it's tough to tell but that's -- that's your thought right now.
We're getting close -- my antenna are up you know I mean -- -- we spoke I was wildly -- you know because when I -- it's safe.
-- you don't look at the policies we've got going you know.
We've got quantitative easing going -- we've got you know bit the government to spend money like it's gone out of style record trade deficit budget deficit.
Through the -- All wildly.
Bullish for commodities.
But I think somebody in the administration.
Even Ben Bernanke are stepping back and say wait a second the markets are telling us we have probably.
I mean they looked at the you know the -- -- the yield curve they look at what's been happening and and I think they're starting to realize that they're gonna getting closer to the point.
That they're gonna have to reverse some of those policies that means you're gonna stop for any money that means we may see interest rates increase.
And in that we'll take away from some of the -- -- momentum.
That we have now once you get rid of that you know macro economic foolish act fundamentals.
-- -- they're looking at the supply and demand fundamentals and they obviously have been very very -- out you may get a situation where.
You -- we'll see you know oil prices make another spike up and they hit them hard to you know and then we'll start looking at the long term.
Yeah -- then we'll get to belong to pump millions upon it takes a while to get there.
-- -- today we've got to run they've got some with some of the stuff to cover on the -- again thanks for the perspective as always and thanks a lot you probably longer you can to fight regulars in -- I don't like that time -- I'm gonna take my get -- get ready dilemma.
On the water.
Is Phil Flynn aren't.
Good stuff fewer bad -- both tees were about twelve minutes or so -- from the next hour and that is that it's mostly the witching hour when it comes to put Oklahoma back.
Yes the iPhone three G yet at whatever they're calling just -- eat supposedly has yet we're supposed to get that after with the Palm Pre this weekend.
Roger Kay does a lot about the stuff and endpoint technologies and we're glad to have Roger by telephone to talk about apple talk about palm and all these developments first the ball.
Thanks for joining us Roger and tell us what do you expect specifically.
From apple today.
-- -- -- As well I think that there are two potential surprises one of them is.
There media appearances keep jobs -- and it would probably be brief but at least he might shelves that's something to whet the appetite that the crowd.
They're good jealousy that they might show the new phone hardware but I think it that people should probably lower expectations a little bit -- -- The hardware won't look that different it will look a little different because -- was always interested in showing in next generation.
Phones -- the people who.
Pony up early it could just sit back and -- -- -- to get other people can be -- stuff.
-- -- -- -- The art showing it's only just a brief showing that it really not showing it until July when they're -- be rolling it out more seriously so this.
Actual cartridges about software -- that -- -- about you or less for the ball which is very important to develop.
You know I feel like we haven't talked enough about that to be honest Roger because we've gotten wrapped up in those two previous things you mention -- being Steve Jobs -- -- -- shows up and -- being the actual.
Next version of the iPhone hardware but what what is -- What about the software because also be available to existing iPhone users write that what is it about the software it do you think is the most unique thing we're gonna hear today.
Well I think what happens is the software itself just get extended further and further to the developers are the primary audience -- that.
That's why the public is more focused on things like the personality -- he dropped the developers want to know what new functions and I called in your in your phone.
What you features can use that you've been able to be operating system level so that's what those guys are all waiting to hear about and that's a lot of ET all the about software interfaces and that's what those guys -- -- So they're very excited about it when -- try to explain it to just somebody else's welcome below that it could do more stuff and more developers get bored that it gets -- More applications and therefore more stuff for you to download that's the only way it really -- the public.
But he hit a quick question on that Roger about.
You know -- the phone -- -- look that different.
I I like technology but I'm not really technologically.
Savvy -- the thought about a new iPhone coming out with a lot of different applications.
I know they're there could be statement about population that doesn't necessarily neat those applications or wants them -- -- necessarily had to use them.
Do you think that population is like myself maybe is just.
Well we may not be the target audience but -- where we're in that -- sat there in theory that group out there somewhere.
Well look at that look at this social networking effect.
That is hoping to -- 35000 applications right now Elizabeth double that number eighty year.
Then how do you fight with union you got a 70000 applications right and it in history and social networking that's what Twitter God's.
When people start talking about the top ten things you -- well -- that's not going to be really go check it out and that's -- you learn what the -- that's -- It is funny that is a larger conversely we started to have that earlier about what.
You know about companies that have emerged during economic -- turn to kind of change the way we think about business and in some ways that Twitter phenomenon is that in that not -- a Twitter as a company but the idea what Twitter does in terms of how we share information all the time.
How much information we get how we decide what we're going to do with our own lives comes from sharing it with each other and it's it's a great point you think about it.
Most of the apps that I've gotten on my iPhone -- because somebody else has suggested it.
So that just you know I don't know that it's the word Twitter but the phenomenon that is Twitter.
Might be the big game changer and all this and -- -- time magazine piece was about in some ways is the idea of what they represent changes things.
Well I think that Twitter could confuse you -- you -- look at there's a bunch of random tweets by people I don't get that I don't really see how they connect to each other people aren't even really talking to each other.
If you look at it from the players point of view it seems kind of confusing but it can look at it from the systems point of view that this is -- Was a piece of Vietnamese they were all these tweets they -- an aggregate that's where you begin to get the.
The power of it.
Right well why not why not -- sending more visible though there is from Bob one question how you were saying earlier.
I really Baskin and Ryder forgive me for this family that's when it's a new price is accounted -- I'm Kerry and I like it and think why not.
Why -- decent thing a little bit more -- -- flashy or a little bit more a couple even just to signify that this is a different generation and and you changed to that -- -- a -- Avaya and but is that a taboo because you can easily see it's outdated later on or why would there a -- that decision blow.
Look look at apple for example that you all the design language carefully so you take something that works and you make something with a little -- -- -- idea.
A little further -- -- no illusion that yes they do slowly drive date.
But there's kind of a part and parcel everything belongs to the same design language.
The people really liked that they don't mind having yourself it's got a big -- after -- -- Her Brett you also allowed the people that you step to distinguish themselves and it keeps it gives apple a chance to keep branding this scene look and feel this seems dial even -- -- -- itself -- changing.
Yet exactly right you know I wanted to get your ever -- -- Roger Kay.
By the way from endpoint technologies says -- -- -- -- apple on the big announcement that is expected in the next hour about the the new hard with the new iPhone essentially.
-- software as Roger says that he for existing iPhone customers -- for the new.
-- fonts and whether or not Steve Jobs shows up but it happens with the spirit really fascinating backdrop.
Roger what happened over the weekend with pom what's your take on the pre which we talked about on this show on Friday and we had a demonstration we showed and everything else.
On the pre and how it competes with this -- with his newest of the -- right.
Well I think that the issue here is third down back in the old days -- -- were getting going IBM had political question was great operating system.
And they just think it's better than windows live look nobody does this better than that better -- really focused on the features.
A girl that.
And what they forgot what it really wasn't about this feature so even if the pre is really committed doing something.
It may need that I was doing some -- than the iPhone but with the iPhone has is already huge atmosphere of applications those 35000 things you can do with it.
And that's with a straight to the iPhone is -- -- -- cubs did.
Yes there was a lot of really demand -- stalked out that's fairly quickly there was a controlled launched a young ripping it up.
But -- nonetheless they have to build this tremendous applications universe for people to grab things from.
And now they got -- -- -- with a new iPhone moralists of whether they were equal enough with the existing iPhone pond stocked by the way is down about 10% today -- had a huge trees run.
Heading into that heading into that event so maybe a little bit -- selling on the news it's still.
Is there any thing out there -- there that beyond the pre beyond.
The iPhone that we should pay attention to send new technology different company rim what do you think.
Well actually right now there's a tremendous amount of per -- in the industry there's a tremendous mix and match going on where -- -- -- -- is use.
Putting a product in their in their -- well.
You know home court and this just keeps happening you know arm which -- -- designed -- cell phone chips used.
This evening get get bored sitting -- that class of device.
It's always Adam is just try to get down into phones.
And so everyone is gonna poaching and everyone else's territory so right now it's a tremendous mixing and -- -- -- of all the different technology.
Because did you talk about the android which is the whole mogul Bruton -- a -- -- -- universe that it hatches between all the Google services are available through the interface.
Of the android -- -- a phone to be very powerful thing you know Google groups and services location based services on your phone.
Coming from something like that -- a lot of these things are happening right now and -- not ultimately successful but some of them will.
You've talked about we've we've talked about a number times in this in this whole netbook craze or lack thereof and whether that catches -- you don't really need.
-- -- do you like I think it's great F five really is my computer for -- email and record and that's that and in question because what do we get enough Roger listen to classic for you do we get enough from our Smartphones.
Whether that whether that's whatever that phone is to take the place of what a netbook or laptop would be or do we need both for me -- to -- -- -- There's always a big question of what is a viable product between being witches is smaller to fit your pocket.
But and and the biggest large enough to to type on it you comfortably is -- actually a -- category that what do you think not totally clear except for netbooks sold the question is will look always assumed everything it could he get a really big politics everything.
How much screen real estate -- -- -- beauty clear picture they just hold it close your face you get all the spirit.
Exactly -- interest -- -- it will will keep debating that as we go now Roger all right Ted thanks a lot.
Appreciate it we'll see what comes out -- apple here coming up in just a few minutes or Roger Kay from and point.
Pit that -- -- left the show just have time to get to Adam Shapiro -- -- I would update on what's going on let Chrysler -- what what is going on.
We're waiting for -- get a -- and he -- and Ruth Gator Ginsburg.
Justice Ginsburg is safe she's gonna extend the delay on map of the Indiana pensioners.
If she extends the delay remember 4 PM is when it will expire the current -- that is preventing crisis from closing its deal with yet.
If justice Ginsburg extends the delay the Indiana pensioners and then approach the entire -- court.
For a writ of certiorari.
They want the whole case to be reviewed.
So we have roughly what is -- three hours and counting two -- three hours two minutes and.
35 seconds it.
4 o'clock I would look at act that you do -- sale that they did Matt that's is that plus.
So we're gonna get the ruling and then but this is all about timing but speaking of which.
In all seriousness going forward -- -- she could really throw a monkey wrench in this whole thing if she worded.
Take it up.
Love she was -- -- if -- grants the the extension and the question becomes how quickly with the full court agree if it did agree.
To hear the case doesn't mean that there's automatically hearing.
All they get if they get the delay is the ability to then improve approach the entire justices -- of the justices and say look we need for you to agree that we need to look at this entire thing.
So it's step a step -- step -- -- Dina trying to get to age and they're not even today yet.
Good enough for hours and fifth now when -- -- is it really is one minute and 352.
That -- our resident thanks Adam Shapiro in our newsroom today arm while.
Now that was a jam packed show if you want if you're not watching us -- -- -- -- -- since.
If you are watching us live right now and you -- that -- show -- A check -- the podcasts today but yeah you be your daddy and lots and that is planned at a computer we totally getting you can watch it.
You know that we need to -- Delfino never have these weird that -- that was great completely committed doubted my Italian but that would lighting up a bit about being Italian.
The -- but that's the line -- about anything you'd be fired on the spot I know.
-- Anyway so we'll see back here tomorrow hopefully will be half as good as we were today I can't speak for yourself by everybody -- day.
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