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Live it's Thursday 12 o'clock on East Coast nine on the west good morning to those -- up and Adam Tracy Byrnes Chris -- -- has given up a little bit today down 51 points.
After a week of gains -- I think it's to be expected.
-- -- some decent reports -- still getting these retail numbers about this to me doesn't surprise me a whole lot.
At Wal-Mart you know they came along marvell today and in I -- -- was talking about right when he came out to solve futures really didn't move won't win either let the weekly first time -- home.
From the first time employment done numbers -- -- -- employment number -- And that they actually were a little bit better than anticipated but still.
Nevada actually move the market more than Wal-Mart -- certainly -- business are not good 502000 jobs lost.
It's not good so.
On a citizen of this here -- which must talk about that and among other things but that was.
Yeah -- say -- it's it's better.
The move expected instilled that report still lot of good reports of 500 in 2000.
Claims that we're talking about the F that was for 5101000 satirical look at the bright -- at things.
There weren't as many as economists had predicted out there and we're still below the four week average for what we've seen so.
For the markets you know it whether or not a lot of people are translate it translating this directly to having a down day in the markets that six straight days of gains in the -- so.
Some explain that by the market taking a little bit of a breather but still.
-- jobless claims numbers still you know a little bit of the disappointments though the overall picture not too good in the continuing claims those that have been receiving.
That -- that jobless benefits for quite some time.
Our our fill up their five point 63 million so.
Overall the report a little bit better -- not as bad as the economists had forecast said.
But still showing -- still struggling jobs market that's the thing even the extended benefits still tightly all that stuff still -- big downer.
So I mean you could argue we could have been and a lot more you could have been down.
I guess you could argue that but to me this is any time gaining over 500000.
Is not gonna catch my eyes -- I don't -- whether -- 500 -- 510.
To me this number has to go from 510 to 440.
A huge drop off.
And remember thousand units and doesn't it again.
Right but still the trend is has been lower and it's still below the average that you know we -- what -- move this that you mentioned Wal-Mart and that -- -- obviously had something to do -- there was some of the things do we've had the Intel and -- announcement.
There agreeing to -- all those outstanding legal disputes anti trust.
Legal disputes that are going -- buddies now is this friend.
Yeah yeah and I just got ugly it was and other area.
Have a lot of -- and going on between the two of them right that they had agreed to it and all of this they issued a joint statement today conference calls going on by both companies in d.'s stock shot up 22 minute after was halted in early trading.
Basically in the joint statement they said while the relationship between the two companies has been difficult.
As Tracy mentioned in the past -- agreement and the legal disputes and enables the companies to focus.
All of our efforts on product innovation and development something certainly we can all agree that we hope these companies will move forward and one point tickets costing them one point 25 billion now still make peace right so Intel actually issued.
They readjusted their forecast for -- recorder.
And what do they say one point 25 billion dollars that for the cost us and that's it doesn't.
-- -- -- -- -- -- and he went from about five dollars and.
Fifteen cents a share to seven dollars in a matter of -- a remarkable stock and if you look back over the past year Indy shares had nearly tripled still all -- -- seven -- and change stock but still that the stock as I have I tell -- and again and to.
I feel like the -- makes me as skeptical person.
I don't -- it for a second.
I'm -- tell you this is coming back this is not dead hit -- five year agreement though.
The gonna sign a five year agreement is OK fine so it took to -- and -- by five and one yeah I don't believe this is dead.
I don't know -- I talk to people today at a very skeptical about this I'll what do you make of retail numbers do you have Wal-Mart they came out okay -- Cole attack she's pretty darn good committed 2% since there was nothing we think I think -- in the top line.
Unlike Wal-Mart is like anybody else -- -- Right that we're at what are we hearing from most of the retailers they're still skeptical about what we're gonna see during the holiday shopping season so while a lot of these stories.
Have laid off workers they started to manage their inventories better so that they don't have to put the 70% off signs in the windows.
Piece of information that they're all putting out there as we're still unsure how the holiday shopping season's gonna -- that's the big unknown right now.
And you have to wonder are they just trying to set the bar.
And that's Franciscan -- Brad McRae was seriously talk about -- they came in with those headlines yesterday saying they're very tentative cautious about the holiday season you gotta wonder if it's just.
It's -- -- people they don't wanna set anybody up for big -- -- they hedged their -- basically insane.
To have been an all these retailers have to worry about what -- Wal-Mart in that and that we is willing to go to as far as bringing down the prices you know Amazon having to compete with Wal-Mart.
Dropping the price of electronic books they're dropping the price of dvds now.
The ten dollar Tories they've made full field of ten dollar toys -- just ten toys last year for -- You're absolutely right -- the price worth going on its -- to compete with.
And then Wal-Mart now have -- also -- hate.
We're taking hits on being -- -- -- offer these products.
At these prices just to get people through the doors so.
You know it Ben working for -- so far but you know that's likely to cut their profit margins this year I could be squeezing suppliers on one -- to keep their prices really Lebanon and the flip side to cut their profit margins so you can only.
I keep seeing this you know he's you know -- from stone for so long.
Before eventually Wal-Mart have you gotta think they have come to Jesus moment where they say we cannot cut right UK airline by UQ what what do they do they -- the you know ten dollar toy on the front cover of there.
In certain Sunday newspaper and everybody -- -- says oh my god how can they possibly.
You know only be charging this but he gets -- in the door and they hope that you -- Maybe you got an outcry is you might I don't -- you wrap -- up under the tree and the kids think they let.
The groups and scored passed yet -- -- and -- -- wiser you're done welcome line.
Thanks for having me is that I can't -- and Nancy -- not everybody in the -- thing.
I have ten -- investigate.
They're lucky and they get individual president idea might what -- you make them share some.
Only one fishing Paul wondered what might have run you know and Indian all through.
Appreciate battle -- -- -- -- -- they'll they'd love actually loved it collides kids that they do we let alone and it -- England toy stores and target.
Wal-Mart whatever and ended the run of the play -- -- -- moms love gift cards because on a rainy day I don't know what to do.
Glad to get cut that's just and they go they've figured advocates and half hours trying to figured out of the gift that keeps -- -- thing appreciate -- sand drawn by the.
We've got a great -- -- we've got down with McDonald's gonna join us -- a little bit and talk about.
Government's role in banking very important obviously I guess forefront with financial regulation here this week.
I'm Robert Gray is gonna join us in the seventeenth annual BMO capital markets digital entertainment conference of the -- -- here in New York.
So I ain't gonna be over this stock picks Peter book Barr who's got the whole big picture on the economic U mass and are gonna -- Mac.
Be Flying -- Well that but yeah at all.
-- I am glad.
It -- Allen -- that.
Weeks at a secret that the -- flying on last night on air last night we were doing the Buddha because they're -- that's heard how investors are in the stock market of doing 360s in the Arab.
Knowing whether Bradley -- -- Jelena once we showed it -- for at the time three minutes I know.
-- that happens yeah.
That crash landing guy yeah.
Well every back to focus their practice focused straight out of the -- -- and that the American Enterprise Institute conference out -- watching and we have former Federal Reserve or FDIC officials talking about whether or not.
Can the government get out of the banking sector -- financial sector I have here with me Jay Brinkmann.
And today is the chief economist for the Mortgage Bankers Association so.
Tracing what it -- -- got to do with Dennis.
First -- we had I -- her bid to -- He's just before Alex -- -- and Bob I think -- you know Alex.
You know former Federal Home Loan Bank president of Chicago Bob -- advice is to be with the Federal Reserve at the -- Alex said he thinks up that thousand banks war.
Are insolvent in this country.
And Bob -- -- said it could take it decade for the government to get out to get out of the financial sector what do you make of that well.
I think the big question is this government wanna get out one of the things we have seen as we've put together a program through well.
Move Fannie and Freddie that model to a more private sector model.
And and introduce more competition into it.
Is the -- thank you present it what you.
They then they got the idea behind Babylon -- everybody -- implied backing but they look like the idea of influencing lending policy.
The government had government -- they like the idea of having some influence over lending programs.
-- refrain we often hear is -- -- received TARP money therefore you should do this this in this and that's.
I don't know mortgage banker why they might have gotten a lot more influence over Atlantic decisions.
Because they want to steer -- London toward certain.
Groups that want to make sure there's affordable lending that takes place without always looking at some of the risks that are associated with a part -- So what we're dealing with now tracing -- -- it's essentially what -- lovely gentleman is saying we have that.
Government distorted housing.
Sector that's getting getting -- government bail out but.
You know let's face it guys we have.
Virtually unprecedented housing and credit crack up that's really rare to see do you see any bright lights at the end of the tunnel right now when do you think this will be -- Well the key point is wondered when the drops come back.
And we're seeing some good signs first time unemployment claims continue to fall clearly don't want employment who went up -- -- -- -- last week.
Until we see some turn around that number you know we're looking at what eight million people hour additionally -- out of work.
Purses over a baby eighteen months ago right that's impacting house and people are not really gonna pay checks to be buying houses.
And putting a floor under prices until we start getting some -- want it.
And we know that the economy can recover and then house and see that employment laws to see -- so -- -- we've seen that and former recessions.
Rethink your Chris I wanna kick effective history said -- -- -- -- a question project go ahead.
Day and let me ask you this are we doing the right thing though with this housing market we now the first time homebuyers credit extended potentially we got another one coming out for people have been in home for five years or more.
Thirty year fixed street now it's both significantly below 5% -- we just creating another bubble are we starting all over again.
I don't know -- -- creating another bubble in housing because prices.
Are showing no real sign of of coming up.
What I think we're doing is his first programs on the -- the -- forward.
For example MBA -- weekly applications and gets released this morning show that the purchase applications numbers.
What the lowest since I since 2000.
So that really shows that were pulled a lot about the -- forward with this program until we end up paying for all -- program.
-- but I think trees is a great point is that big government stepping in so deeply into the housing market has created a bubble in and of itself -- you get more people.
Trying to buy homes that creates and they -- -- house prices go up right -- for a from a -- so -- on what I can -- title wrapped up not down in the past but the thing about why the.
Government stepped -- -- what would it did.
Was that people look at their wealth and a very much determines your willingness to spend their willingness to spend very much determines.
How quickly the economy comes actually think if we can do something.
To take care about part of their biology right can't do anything much about stock market but if you do something that would help at least temporarily put Florida home price.
Government -- the -- the government help create a bubble let's face it the housing bubble the government helped create winter break.
The government was participant I think Obama credit models and origination practices and also really drove up your they felt -- yet go.
Chris Adriatic we have a question go ahead yet you just real quickly.
Does this legislation or will it as proposed by dot and in the house and from the White House.
How will it affect all the mortgage banking industry moving forward if and if indeed it does become a bill and -- signed into law.
It's gonna make it much more difficult to make some loans -- make it more expensive.
Are we always run into what sort of risk when your trip over things go back and large we keep in mind that some of the of the bad actors out there -- long since gone out of business.
And some of the regulation I was and the companies that have been following the rules all along and are trying to put together good business -- and make good loans.
It's a good fear in this is how much it's gonna.
But -- you have to bring it back to the theme of the conference of -- get the government out.
The banking system final question Richard Breeden former SEC official says.
Markets not ministers what do you make of that degree with -- All I think I would put my faith and ultimately financial markets to recover 22 blues beat the policing force that.
The short markets made big mistakes in the type of loans -- government are that they would buy before.
That's not gonna happen again any time soon where humans government meddling now right -- perhaps went to marching trying to solve problems that -- just happens to become.
Let's -- will -- all right back to tracing Chris too much meddling live McDonnell AKA the flying that.
Jay Brinkmann thank you so much that's what I'm about.
I CNET -- careful out there.
She wishes she had that had only comeback vehicle -- and enjoy this and know -- -- gonna talk about the market right now down about 39 points we've been worse it was generally been better -- -- we'll be right.
Look back at foxbusiness.com.
Live Chris cutter Tracy -- Peter book bars here -- from -- -- back.
All -- make in this market today adding.
I expected down thirty points -- yesterday and the day before that was pretty darn good that we're actually able to hold those.
400 point gains actually turned a 500 point gains maybe just a little too lofty now.
Well see yeah are you getting.
You some sense of -- phobia getting too high Monday was a big day on the upside.
There's some negative divergence is beginning to show up in the market transportation index is not confirming the -- The Russell has lacked a little bit and you're you're at the point where people are actually -- in some of the rest taking.
Heading into Thanksgiving and a couple weeks hedge funds have done very well so there's a sense of.
After Monday's rally.
With the uncertainty of where we go from here we know money now is going to be easy for -- while -- -- -- from now last week we had for fed members confirming that again.
But the economic data still very -- So you have these two.
That he's become confusing people because and one had a Fed's printing enormous amount of money which is raising nominal prices in assets but on the other hand concerns about the economy so so -- -- we are -- kind of stagnant through the end of the year pretty much.
Now that earning seasons pretty much over you have a little -- and information and people are gonna focus again back on the economic data.
We knew we had these statistical improvement in the economy Q3 so -- a question whether it carried over.
-- Wal-Mart economic but in this revenue and -- admitted it's still going to be -- brutal holiday season in terms of competition and discounting.
And that's going to be real test because again it all comes down to the consumer.
All the problems we have comes down to the consumer the banking problems comes down -- this -- consumer everything comes down to the consumer and we'll get a test of how they're feeling.
Over the next month as they spend on holiday gifts.
Look at the dollar.
How has the dollars and this drastic decline in the past few months how is that not manifested itself into inflation Morton -- -- -- -- -- not worried about inflation.
But how can you continue to have a dollar decreasing in value and not have inflation pop up sooner rather than later well it has.
Showed up inflation in check and asset inflation.
We've had extraordinary run and all asset classes and Bernanke is forcing money -- asset class -- so it begins with asset inflation.
Only if that was in the CPI we have much different CPI readings.
The question is when -- that show up in consumer prices -- -- hit a record high oil is close to eighty gasoline prices are near when your -- it's beginning to show up corn down from 320 to 380.
The commodity prices are rising.
Statistically in -- -- he carrying it has nationally shown up yet but.
In the cost of goods -- that I'm seeing.
It's going up but it's manifested mostly initially an asset inflation which in and of itself distort prices because.
Yes inflation -- resulted in the south Haitian capital it's slow though it's a float like you barely noticed that things are going up and let this -- you know.
Last summer when gas spiked to four dollars and we felt like it happened instantaneously now if that depending at a time -- -- -- -- it's going right.
And more and inflation expectations are creeping up to if you look at the implied rate within five -- tips and tenure tempts those are creeping higher.
Gold is obviously a record highs so the writings on the wall for the Fed.
I think they're using their textbooks in determining how to run policy rather than looking at the real world and looking at how markets are reacting.
But vocal in the early eighties then raised interest rates dramatically to get kind of get a sad -- this inflationary period in the seventies.
Which work but -- plunges into recession in the early eighties but then Ronald Reagan.
Decreased taxes Randy spent the -- -- on on weapons and blood pumping the increased taxes when -- gonna have that decrease taxes this time around so has the Fed do it because they raise rates until the economy.
Well the Fed is meeting is making the biggest mistake in any suffer -- in central banker can make.
Because they have a dual mandate which is unusual relative to other central banks -- focuses only on inflation that has to -- inflation and maximizing employment by.
You can have a healthy economy unless you have price stability and hand in hand with price stability is a stable currency that's what gives you healthy economy.
So the Fed has.
Said we don't care less about a stable currency we don't care less about inflation fact we want inflation.
That's what -- -- zero and we are solely focused on generating employment.
And they somehow believe that keeping the cost of money at zero but that somehow was going to make things better when it's obviously that scenario.
That Greenspan followed that got us into the credit bubble to -- -- -- -- nuts every day you've been pretty bearish.
What's your on the US yes on the you have been bullish on inflation trade -- outside so what do you see for the US going forward I still see a muddling through.
I mean just what to do is look at a chart of the Japanese in the ninety's and see we're like this for ten years and that is going to be us ten years.
Ten years at least.
Because of the amount of leverage it all comes down -- debt that is the magic -- is debt.
We have too much of it and it takes a long time to extinguish that and the policies of the Fed are actually delaying the inevitable.
Pay down of that that is when you cut rates down to zero.
You are encouraging people to refinance and push out maturities further out rather than getting them to pay -- down.
So we know the US government is obviously exploited their -- but the private sector.
We keep pushing the can down the road by keeping rates artificially low it's one of the unintended consequences and that's what -- did they kept.
Throwing in these artificial fixes without dealing with the initial we need to pay -- -- it's painful.
In the short term but it's what is needed but we -- -- politicians running the country right now.
And they don't want to make the politically difficult steps of saying you need to extinguish that.
Not extend your maturity from 2011 to 2013 that doesn't get re -- Peter exactly.
Give up our equity act as a military -- thank you for being it has to have me it's here.
-- when you do with a little.
Including -- got to tell you at ten years flat line line now.
I know you want -- -- hasn't been fun in Japan has had some really great and in many European economies needed them really really slow all of them did on the ground long leave -- -- Switzerland is a little different I let me take a quote I look like your -- -- are talking about blondes.
Boards because -- -- -- the ranking -- right announced this ranking of the world's most powerful people.
I so let's -- -- From bottom up so we're gonna start at first you got.
The most powerful all actually Tiger Woods clearly since president and although he couldn't sell a -- on -- to -- his life.
-- Erica next he got the most powerful -- there Matt Drudge Drudge Report yeah I know I love it.
What must have a celebrity is still.
Tom I don't get this category -- On Andrews and well as Tiger Woods not a celebrity uses celebrity while he thought he meant to go in on the athletes and that is.
People need -- even happens is that businesses that movie -- and I'm not sure I entirely agree with Tom Cruise and his crazy I'm gonna jump on Oprah's couch and I instantly that was summer and still ahead -- kind of read -- ready next they got to most apple CEO doing yes.
Too late at that he -- Microsoft you agree disagree.
And I would probably I think that -- the guys at Google are probably -- how well funny you say.
Look -- will be -- on the web are.
-- -- -- -- Brin and page I would think that they would be an Agassi and is that just how much your titles okay bomber -- And we got the world's most powerful Fiat that Nancy -- say that ten -- -- Warren Buffett.
Condition surprise anybody unloading could drop 44 billion dollars on a dime like you did last week.
It's pretty -- they also -- listed the most powerful people president Barack Obama of course being number one.
The Pope was eleven.
The bothered me I was hoping he'd be a little higher but what bothered me was that of some of -- -- lot and came -- at 37.
Well lately it over almost yelling for the overall one -- most powerful people everywhere and -- -- -- he's number one.
He is still -- -- read about that Alan on a commercial break when I quit before.
Count them if I could not let this even asked who do you think but -- then -- -- most powerful people in all -- different doctors are or better yet in the world.
It could very well because -- we got over 42.
And 75 on the list right here Robert Ray.
And we got Charles Payne 42 and 75 respectively than the various Mary -- -- -- Hey welcome back to Forbes most powerful list.
Live Chris -- on the listening -- -- on that that's big signal receiving his big number for the end.
But -- have a great Simeon the list should he -- the seventy Daniel BMO capital markets digital entertainment conference.
Here in Manhattan and god love him for getting these -- of gigs and he's got Jim Kennedy CEO pandora with him hey Abbott without.
Hey Tracy -- it's Vietnam little rowdy and everyone's playing a lot of video game -- they're grab onto it it's lunchtime but.
Seriously we are here and -- -- talking about video -- but it's more than just the games in a funny games more than an old school con -- song that maybe Chris -- rivers rocking out to as well but.
You can get a -- -- you know you probably know them from your PC.
They're they've gone like everyone else they've gone mobile's right you know have -- the app right here on my iPhone you can check it out and -- -- -- in my super -- station.
And it -- -- to -- don't know them.
That -- that you would like -- using it at the -- music genome project and we'll get into that just a second to find other songs you like -- and -- on a -- night the lights it did indeed work.
And generally does -- Joseph Kennedy here that CEO pandora thanks so much for joining us here and we're talking a little bit about the business but first let's let's talk quickly.
About -- a couple of quick questions for you.
How does that work in a nutshell how does it know that I'm gonna like Nirvana I like super jock and secondly.
Why can -- only fast -- through a certain number of songs per hour I know it's a rights issue but I think people have to know I've been wanting to have for 45 years.
-- -- -- pandora uses the music genome project which is project we've had for the last ten years.
The most extensive analysis of music ever undertaken.
We literally have a team of thirty people who spend their day listening to all those tracks that you hear.
Analyzing according to this genes that that we've developed.
What's the harmony what's the read them what's the instrumentation etc.
we don't all of that in incredible detail.
About all those songs that enables us to figure out.
When you answer super -- We know what other bands are musically similar and are able to play them for -- And what about the rights issue might like you know -- fast forward if you don't like this on to the next song a certain number of times per hour.
We operate under -- federal statutory license for Internet radio.
And it has to be a radio like experience.
And the numbers -- is limited to six and our so that you can't fast forward and find just the song that you -- -- parents most is still maintain.
Some of the character of a radio experience in terms of being -- expecting to change the channel lifetime -- control a look at.
-- get that out a way 38 million users all in the US a lot of them coming on the iPhone two million per month your fastest expansion -- understand.
Obviously this has been huge for you guys and the next question is when do you take it on the road outside the US.
-- the good news is the -- -- the bad news is copyright and all that his country by country were very eager.
To move outside the US some of those laws -- music industry things move more slowly than we like.
But we very much have the vision -- over the coming years.
To make pandora truly international experience -- revenue is gonna top 45 million dollars I understand issue more than doubled last year.
How're you doing and I see a lot of ads on here you know that -- you click through.
Advertising in an economic downturn really bad recession not the best model how's it working out for you guys and it appears that it is working.
It if we have a great offering for advertisers and they've really embraced that despite the terrible conditions in the -- markets we offer great ad products that give.
Avatar is a chance to really engage with our listeners and we offer great targeting age gender zip -- of an out of -- says.
I want to target my dad's a eighteen of thirty for all males in the New York teammate.
We can give that to an advertiser and so.
Great -- products great targeting and great results of enables the -- and when you're gonna you're looking up at being profitable here this quarter for the first time ever.
Capital markets getting better have to ask can we look for an IP OD on the road for pandora.
And maybe someday I mean our ambition is to be a great lasting stand -- company.
What were in no hurry I think a lot of companies want to go IPO I think our ambition would be to someday be a great public company.
And we want to make sure we're ready before we never take that -- all right what's your favorite band.
All is there's so many the Counting Crows has brought maps we've been out.
-- -- -- -- -- Played him a lot back in the days and I was Vijay myself guys and breaking.
As I told -- Garrett at the pleasure of meeting him -- -- I made him famous in Prague but that's a different story.
Chris and -- Tracy that's it from here guys could tip many thanks so much for joining us from pandora back to you.
-- -- Yeah you did it up.
How could not know that.
I don't know -- tonight's C news tips Jersey girl DJ come and then.
That's -- a New Orleans.
Turns tables that is keynesian Robin thanks man rob hey hey Tracy by the way that we -- have DJ challenge every year that the new game so I'm gonna go pretty darn arrogant I'm still get nagging right.
I see that thanks Robert Robert -- who has been killed Kennedy from and so I just cannot see.
Not really was -- you and Robert -- like.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- A little choppy early job of the last hours so we just have not been able to find any traction here with movement.
Green now and and this is this surprises make some huge -- now of this big.
Exactly this is I don't my -- on the -- more so than anything right.
Fiscal fourth quarter profit doubled they got strong sales those little courage and single individual you know I love so -- heard.
Raise their outlook but.
Fourth quarter earnings projection fell short and you know that's the -- And therefore the stock is down and all numbers actually included only thing that matters what -- in next lubricant is so fickle.
Home shopping network believe it or not.
Third quarter earnings soared again on a year earlier charges that are related to the spin off of that IAC interactive's.
Deal -- that place -- -- up Barry Diller.
Sales -- down but they did cut costs and they did boost their bottom lines the stock was -- 8% earlier today.
-- did going to be hearing ticking up to 70s70s.
Hit 52 week tied now they have -- big auction and they auctioned one 134 point four million dollars worth of stuff.
In this economy and -- come out again that the voters are high and high -- is still -- contemporary stuff and one of the craziest things.
They got 43 point seven million for an Andy Warhol it was this this sheet of dollar bills -- member can see the yeah a -- again see this is this is the point though people they have on enough money to buy that it's a -- exemption doesn't matter they're slowly coming out of -- surpassed all singles the stock was up.
And we talked about Advanced Micro Devices earlier that they also hit a 52 week hi there -- S&P 500 leader Intel's gonna pay them.
One point 25 billion to settle the rivalry which.
Yeah I'm not saying -- -- sent a little longtime private antitrust.
Mudslinging in litigation you name and you're number one are you big mover was 3COM.
Com's is that CO MS is the ticker also 52 week high again is HP is going to admire it.
For two point seven billion HP wants to be the I'm the king of the world.
-- they not get away from that that come lot of ties PC -- right so they want out of -- -- one stop shop.
And that's three -- is an attempt to do so that he KM outside of -- DC one of our view is Sotheby's is that you jobs have Lance Armstrong bicycles -- for the got a pretty penny for those.
When it's actually -- a different bicycle I am correct in every stage of the tour this past year -- -- auctioning off all those bicycles some of them.
Had he jobs that would done by very famous artists and whatnot so I think I mean he's right about getting a good deal for all those by -- CNET accidental thing.
Charles Payne is here the house of Payne.
On the set once again good to see in the man did get the bigger what do you think about this market now down 56 -- -- -- -- -- navy today had yesterday and the day before and given some of those bad -- 500 points in the last six states.
Today we had a huge move on the market was looking I think it was looking for.
You know it's that this kind of an opportunity even to take some profits to be honest with -- this not to give we were up until that in that -- limits or number came out and just.
Another reminder that all the dots -- hard to connect it's hard to.
Okay would do a better -- wire inventories still building where's the demand for all of the stuff.
And every now and then -- were reminded that there's a little bit of a dubious back into the rally we give some back but.
You know it's not it's not frightening you know it into it to your point with the green -- -- -- you know.
I think people in this market have to have to be very -- we -- that stock and we took profits on -- I think last week very recently and you know I was that.
Because -- have a serves I was kind of happy pulled back because I got people out at a profit before -- fell apart but this the -- got to be very nimble and even though it's been moving straight out.
Child you're talking earlier about.
All the stuff that people are afraid.
Commercial real estate markets come -- damn them.
Unemployment probably go on higher the dollar sucks and the new name resulting in blue -- even now -- -- gold and -- and Goldman's overbought PE here's some of that -- -- consumed while we -- win this and in the -- community here in -- -- people are afraid of -- -- OK but still convinced this is simply talk about all the time can you make an argument that it's priced into this market it is going to should be no surprise.
For this should be no surprises and I think that's gonna happen is that the greatest fears that people have from will probably materialized but -- a great and the longer date.
You know you know I was like I'm saying when when Alan Greenspan had its famous irrational exuberance.
That was 1996.
So he was talking about the market being irrationally exuberant in -- went off for another four years being irrational exuberance so.
You never know how long something like this can happen but I think all of the fares are are rooted in fact in -- and not have a mark.
Our our our silly you know people should be absolutely terrified of inflation but you know there's no signs of it right now at some point may -- -- banks start to stop hoarding money.
You know all the stuff is in the system and one day it's gonna hit -- hit it's like an avalanche in the first is gonna feel good you know while you know -- get -- -- -- -- alone still kind of good initially you and that's what we're gonna really be supply side and I think.
Real quickly before in the year did the stocks you like on the day will the Fed to have enough time to get ahead of it in other words right now there's they don't care about -- the the dollar being weak.
They don't see inflation -- all they care about this flooding the market -- with liquidity.
In keeping interest rates at zero I don't have the confidence you know I think Ben Bernanke is making a big mistake on his public relations toward -- on sixty minutes and all of -- other stuff I think it's probably the nature of the job that you get too cocky.
Because Alan Greenspan kept rates too low for too long plus he kept when he started raising -- hourly rates by 25 basis points at a time.
That's going to be critical when -- spent sought to raise rates -- -- members of the feds say.
Listen we have to be as aggressive when we start raising them as we were going down.
I don't know I don't know of I don't have the faith that they -- able to switch and turn it around like that.
Pilots on a batch of checks Netgear Netgear is small business home neck playing home inequity -- if I can't put a -- Eight.
Yeah I like this a lot does that company have -- for a long time I think to get their act together they beat the street and then the last two quarters -- -- -- -- to be consistent by over 200%.
Stocks -- fifty to a guy's actually was trying to break out earlier today and I think this could be good for about 30% on the upside.
She got giants like Cisco Linksys all trying to compete in the space.
Yeah and cooling systems acquired by Cisco long time ago and yeah I I I honestly believe that -- is going to be acquired at some point.
You like GT global communications -- well yes this Internet software play that's the company also that seems like it's getting its act together.
They beat the street and each of the last four quarters technically breaks up to 23 think it has a pretty good shot -- thirty.
You know what I'll -- -- both of these stocks.
Is that the relatively high beta so they're not necessarily for the -- depart they can make wild swings and not widely traded I'm guessing -- -- probably not.
They tried reasonable volume and I think I don't think anyone you know if you buy thousands -- you barely get out.
We could they do.
Yeah yeah I mean this is have -- table on these for a long time and the coal stocks.
You know it's this if you think about this okay let's say we do go to a world of electric cars what do we get electricity from.
The popular -- bright it's we can't despite the fact that it was demonize the campaign and we always -- this negative stuff in fact I think some of the things coming out of the administration really fundamental price I mean coal prices go higher.
You know some -- restricts restrictions that they plan of putting on these coal miners in just gonna make it more expensive.
Yeah it's so there's not going to be good for main -- Do you -- the macroeconomic picture you know deferring sales reneging on sales their contracts and kind of slowing down stuff like that did.
Did -- you know you have a few bumps in the road because it is to a certain degree of proxy on the economy but let's not forget to that -- China's has in -- -- will -- the man as well.
That's sort of keeps the price going to in fact I'm not sure of it was messy but just a couple weeks ago one of the coal companies reported.
And -- metallurgical coal exports to China were -- ten times year over year old although we do they have a rotational appetite forward to that that's sort of mitigate the downside or.
The craziness of our economy and you mention an analyst.
Michael Cole not all coal.
Miners are created equal right and -- -- and there there is clean coal we hear about that all the time so when you when you -- -- -- into the coal states.
Obviously some are going to be better positioned for this new world that you speak about what we're a little bit more environmentally conscious -- I mean -- did the same title looked all set for the obviously someone with just a little bit higher and I -- -- Massey -- really been a really good performer.
I think they've got really good management.
You -- -- first thing he said he had to have its steel stomach for a cause they move this could be a lot of someone of a longer term planning and nice dividend.
Could be maybe the little bit longer term hold.
Absolutely in fact that I like to do in the morning because I do the charles' choice in the morning.
As I often we'll give a couple of trading ideas something that you can probably trade over -- 23 month period in something longer term that might even be worthy of your 401K.
-- times when you -- lately energy like oil elects -- services to play as well do you like to a global and Bucyrus and some others that are so -- -- -- -- mining industry and they've been phenomena just absolutely love them you know I'm not mean the one now just hoping they -- back but they they have been monsters absolutely not suggest.
You know that the mining equipment stuff is this is really on fire.
The -- -- myself Charles Payne as always found that stabbed outside a letter on everything Wall Street strategies of course right -- -- -- quick break Peter Barnes is gonna join us.
In a little bit.
Michelle I mean it started and it bears yep it's fat and can't be sure it's not winds and it'll make sure that -- -- Ministry isn't that.
The pressure mean line whatever is that in England -- -- go between -- so that -- -- then.
Asia -- if there's and Wednesday we'll -- back.
It's Monday in Australia.
Hey welcome back the content -- this dot com live it's 1240 and East Coast 940 on the West Coast markets down about 53 points.
Considering we've got some.
You know run jobless numbers this morning had.
Not so bad numbers -- coming in OK not great retail of course still.
But -- up preparing us for -- not so great holiday season.
But in preparation.
Tell us a clutch.
All right we'll call my -- this morning the Pontiac Silverdome in Pontiac Michigan for the Detroit Lions used to play.
Is going up for auction and no minimum bid so each one of us now this is actually a lovely picture of the silverdome.
I don't -- there in the spring when I was up there for the automobile companies going at of going into bankruptcy and by the late Pontiac itself.
The city proper as -- thirty.
Percent unemployment rate -- in the places that is really in in somewhat of disrepair.
-- 127 acre site.
But it's going up for auction they've tried to sell over the last couple years no one wants to buy it.
Mom and so if you know there's one guy's gonna raise I think 250000.
Hope because the body it and he -- treated like a kids' sports complex.
That's -- it's but it's -- -- -- thing.
-- you -- think it's gonna go cheaply.
But there is at minimum on one and a half million dollar up keep every year that's what -- next.
I don't unload this thing because he's sitting there and on eighteen -- and use that it.
So it's whoever buys it Lleyton and whatever they want a million and a half upkeep but.
Investors that access is -- in the lights on exactly keep the lights on -- politically if you -- -- together repairing the structure itself I mean it's not it's not new.
It was built in the seventies so.
You know if you -- there's the thought of me.
Album of Detroit isn't so it plays well but churches have bought Arenas the Compaq center in Houston at church -- -- -- it's also pockets.
-- -- -- -- But for the rockets myself and there's thought of me turning to a racetrack.
-- multi purpose business facility we have a golf courses and things like that -- indoor mall.
It's in Pontiac.
And it's in the middle -- it's near highways that's great it's in the middle of nowhere up there.
I think what Peter Barnes is not in the middle of nowhere is in Tokyo.
Right now he joins us right now and Peter the president had a little bit of a speech today -- he talked about.
A job format the White House next month but -- hop on a -- any straight out to Asia what's -- -- focus out there.
Well it's going to be jobs and the economy Chris because -- and one of the ways to create jobs is to create more exports.
And so all of these leaders are going to be talking as he meets with with leaders of of 20 countries.
When he comes to the APEC summit here in that Singapore just a couple of days -- -- visits Tokyo -- jobs and growth are on the agenda for everyone and had -- finance ministers meeting this morning the APEC ministers including Treasury Secretary Tim Geithner said.
The number one priority right now -- stimulus programs going keep spending that government money.
Do whatever it takes to ensure that the global economic recovery.
-- first of all what -- -- it.
It is for me it is.
Staff -- -- I I've got got the semi digital watch it and you have to hit a button it is.
Friday morning on -- all it's 2:44.
In the morning.
Hey it's Tokyo and -- yeah.
Course I can't hear now Peter look we got this whole notion that we're gonna spend stimulus well we have money.
They can't figure out -- -- spend it.
When they do you figure out how to spend it nine times -- -- and they spent improperly still have a why are we continuing to push this ball down the road.
Because there'd economic -- -- we've we've gotten states that 3.5 percent GDP growth of the third quarter.
Is still fragile most of that 3.5 percent was created by the stimulus money that's been spent so far.
And as you know there's several hundred billion dollars left to spend through the end of next year and so that there.
The details getting into the weeds on how it's being spent than some of the problems they're having with -- counting for jobs created jobs lost and and actually the programs and contracts and end up hiring that's being done with this stimulus money in up that's -- kind of an inside the beltway fight.
The big picture here for the president.
And for these leaders is to try to make sure that they keep constituents happy by doing everything that they can.
To create jobs we saw what happened last week.
And those elections for governor in New Jersey and Virginia that was -- -- Republicans winning those governorships that was a shot across about the Democrats in Washington including the president.
Like -- we appreciate it -- it's not on the Far East.
OK -- of -- gets -- more coffee now.
I thought -- it well done by he had Tokyo where it is Friday morning I stand corrected.
I thought that I thought there were behind this -- -- always happens is.
Greenwich meantime is in Europe and so you know in the markets even follow this trend.
We look at Europe and the Far East looks at us when it comes time so you know -- some markets down.
Writes wrong give me something here it's Friday.
Nights Thursday for us we're going to break pickle we -- -- backpack.
Hi welcome back to foxbusiness.com live don't forget to download that app for your -- -- you can watch us.
And Santa thing and that's that's a great play off your -- and how -- -- -- you that this is good stuff and speaking of traveling all over the place.
Davie brown show us senior editor of -- -- -- here in studio to tell us about what's gonna happen this holiday season.
Now we know these airlines -- broke.
But we also know that -- consumer is as well so what does this mean for the travel business going forward you know -- -- -- -- -- and that people are looking harder for bargains and they ever had before and the good news is that there are plenty of bargains to be had.
Airfares stabilized at the last few weeks for Thanksgiving in particular.
Average action domestic ticket is 361.
Dollars that's down about 5% from same time last year.
Another hand hotel rates.
-- down and continuing to fall so for people who are going to be looking for deals whether it's Thanksgiving Christmas even into 2010.
Hotels -- where the values are.
And -- with that said.
So much of what I think people like about your sights and why -- everybody -- industries -- so well this year is you can go to that site you can book an entire trip.
How much of the savings is that for people because I I could finish at the same airfare on delta dot com as I can flying Delta Airlines are -- as the iPad.
Package something together that's with a real savings is not -- It's true it actually on a five -- typical five medication that flight plus hotel average savings of 315 dollars when -- booked the flight hotel together.
The reason being -- want to protect their price integrity and to some degree so -- standalone rates are often.
-- higher than the -- that they'll play in a package when -- know the consumer can't see the total price that's particularly true of luxury hotels for a five star properties.
Much more likely to lower their rates -- -- -- you know can talk about the surcharges that are going to be snapped on people that travel around those.
Heavy travel days right around Thanksgiving it's going to be around Christmas.
Probably gonna extend into.
You know president's state Easter baskets -- all the way into spring break up next year -- around Thanksgiving surcharges on Sunday and Monday following Thanksgiving.
-- around Christmas is mind -- start at ten dollars.
-- to twenty dollars.
It's it's not clear why the airlines -- just simply.
Raise the fares those states and I really can't speak to.
-- why -- -- because this is just angering the consumer right people you know are -- -- getting nickel and -- at every point of their flight.
Whether it's the search harder and -- fees which continue to -- up.
That's -- and that and I think gonna continue to see 2010 just keep getting charged more -- action cents.
Other specific places you're looking at right now the specific deals.
On it that people can really take advantage of -- -- say you know what here's the trend this holiday season more people are going here the better deals on this particular.
Waves absolutely so particularly around Thanksgiving the warm weather destinations.
How the greatest decreases in hotel rates -- places like.
Cancun Mexico San Juan Puerto Rico.
San Diego tied down thirty per mile San Diego yes and I feel as -- -- -- Jacksonville Florida -- -- about 24%.
So if you I think about a vacation.
It's it's it's kind of you know a little bit unusual but if you could -- taking a vacation on Thanksgiving.
It's a great time to get away hotels that aren't in major cities like -- you're you know Al way.
There they're hurting for customers they really are allowing their rates and can be great time but now the traveling to street is expecting Thanksgiving travel to actually be damaged here -- but yet the plane to be packaged of just be less -- exactly exactly and -- capacity -- let's fewer flights.
And smaller aircraft.
I'm so although the ATA predicts that air travel down 4%.
This Thanksgiving I wouldn't expect to see too many empty seats on your -- I eat eat -- eating during the -- flights are flying at about 80% capacity.
And now -- Expect many many flights and 100% -- the reason this is a problem.
For people is because when -- he connecting flights and destinations.
If the first flight is delayed whether it's -- it's bad weather whenever maybe.
And then they miss that connecting flight.
There's just not that -- -- we'll see Phil family of four traveling together.
That's a big problem there my -- before available -- for them to get into it gets to their destination so.
If you plan traveling around holidays the primary but Thanksgiving that -- at Christmas.
Try to -- -- if you can't try -- at least reaction connection just to account -- is.
On the first play and an owner wants hang on here -- three hours we I live here right you got eatery that it's called defensive fine yeah I think that every possible thing Mexico -- And plant plant.
Did -- -- terrible planning a trip on generally terrible planning anything.
Obama -- I just get overwhelmed with everything I hear that is -- -- -- a goal to -- -- fly in there and let fly out what we know what hotels are good why not look at reviews.
Is that a big challenge for you that -- travel also to for varieties Expedia before we hear you you have to make it as simple.
A process for the viewer is that sort of where where you seen your growth and 81 -- your biggest challenges trying to continuing human.
Yeah I think it I think it can be overwhelming for people you know there are so many choices -- so many different ways to -- topple.
The travel business is fragmented you know and and it but the other times you want -- present people with as many options as -- -- -- so.
Cleaner designs and -- that that's helpful he -- but -- have to have -- -- now there's -- You know that people aren't happy that's the good news as as there have become options people become a lot more -- about signing up for tools that.
That ought to -- things like.
Like fare watcher per examples one.
Resent you get an out when the price they fight drops below a certain current and you can use -- got to -- all the time went back and worth researching.
-- I do wanna say.
That people spent so much time researching their flights -- -- -- twenty dollars on funny you know and and really that at the expense of what's going on.
The -- say it was really happened that more aware of an overall impact on the enjoyment of their vacations up.
Don't get so -- and the cost your flight that -- -- to the hotel because not only that would value list.
That's -- dictate the enjoyment of your vacation before we run to break.
Are -- good times to travel this holiday season my clearly saying Thanksgiving is better is January good or is that just awful January is great right after January 3 LB and in the because -- technique actually it and it is one of the slowest travel times of the year you can take a chat.
That first secondly -- January your client -- the meeting tells English to disperse the second week in December right after Thanksgiving.
And very slow travel period so you're going to get -- lower airfare.
At a rental car rates hit rock bottom hotel rates.
Everything under saddened because -- mark everybody you know the kids -- in the coming at school that I have to break that if you can get away.
First two weeks in December 1 two weeks in January fantastic time -- got tips.
Negativity and say thank you very much -- round so -- -- travelocity senior editor there are getting is that they -- what's going on.
During this holiday season for traveling actually went to very small fishing village in western Mexico -- of the first week of December.
I'm still angry I came back.
And honestly if you stayed there and sold fishing rulers.
Or something bamboo poles.
Some I don't like you guys I do entries they'll love you -- -- I beat him right now.
You know go.
He's going to be on for the season.
Was the fifth.
Welcome back to foxbusiness.com.
Live Chris cutter Tracy Byrnes if you remember from money.
The movie Wall Street blue star airlines was the the big airline that Gordon -- lost -- -- -- In we're actually joined right now by reconsidering his -- blue star jets.
Is there a connection then of course there is a and I am glad that it felt like that but like that there's a connection that.
We'll be used big fan and moving in when you started in an airline though we were on Wall Street we -- traders.
We made a natural progression into the private jet industry up give this is some brand recognition.
People knew the name.
And you know what.
It's great how was that -- natural progression you're a traitor and now you charter jets right what we were private jet fliers.
And what we did is we took the brokerage model.
Wall Street and move it to private jets so we introduced we were the first ones to have the super brokerage firm.
For private jets all different types of jets and you -- that share a jet exchange program and I've been to seems to me to be.
Right for our economy because we talked about how high end is still there Saxon -- -- doing very well and Sotheby's the options open.
There are still people that have money to spend but maybe not quite as much -- -- they feel -- guilty now this isn't a chance to fly a private jet but he had its share some of those cost.
Have some of those costs -- -- jet program is fabulous and meet people wanna be more -- within money right now that watching everything that the spending they wanna make sure that the getting value for what this bending.
And you know the share jet program is a semi private program.
That enables people to literally pay half price for wherever they go if they don't asked in the -- to LA they go down -- the Caribbean for the holidays they can literally save half.
Half the money so most planes are we sharing.
What we've been network of aircraft and we have that we have about 4000 aircraft blue star jets being the biggest broker in the country.
Piggy backs off of the volume that we do in the -- -- exchanges.
Just getting they'll see some of them are privately owned.
-- sure the corporately owned the privately owned thereof across the board it isn't like someone.
Renting a house meaning in the bedroom it is it is but you know listen.
There's a big trade down effect right now all these corporations that own aircraft that have fractions they're looking to get rid of their overhead there and looking to rent.
It's it's much less expensive -- do you -- and -- some some jets as well we don't know anything on and we just straight out brokers -- -- everything from helicopters all private jets.
Brand new G 550.
Boeing business jet 747.
Whatever the customer -- business known where it's really fantastic I gotta tell you.
But it's interesting because and that's some announced recently that said that it was a good business to be and from what -- that exact reasoning saying nobody -- -- -- these things anymore but people still.
Do need to use them even now because I finance.
I -- an aircraft is a depreciating asset -- right loses its value very very quickly and that you really don't need to because I can get you brand new G 550.
-- all right that you bring into hawker 800 XP I can be anything that you want and it's gonna be half price so what it cost me to get myself to iron out ally.
I mean I could do New York to LA all day long and -- golfing for 25000.
The share jet programs to be that twelfth five.
So its -- and we'll have to you have twelve to fifteen seats on that aircraft.
It's -- but not as costly as owning it right -- if someone has to be at a board meeting and they need to get other topics extra one side of the country to the other and actually could be.
Economically sound is very economic and he's saving a lot of time in in these days time is money you just can't show up in DC.
Well the security issues are it's easier to go through rule when you deal with smaller airports and things like that whether it's you dropped off you run right the year pointless -- it's much easier 1015 minutes prior to the flight you arrive.
-- in the -- -- no time now there's nothing here in New York query you can from Manhattan -- hop on a helicopter fly -- helicopter to an airport whether it's.
Peterborough whether it's candy whatever the -- idea you guys getting into that look we do helicopters all day long we -- with guns and hand his business you know we do we do everything -- do the Hamptons helicopters to the Hamptons.
The total props and Nantucket.
We'll do the brand new G 550 London the dual Europe all Asia we we really do all season and business is steady if -- growing.
Business is now since June on a big upswing.
You know it's really correlates to the markets and the markets picked up.
Sort of loosen the purse strings and business typically right now.
-- forget this is my busy season go to the holiday of Thanksgiving.
You have -- -- -- a lot of north south business a lot of Florida business right now lot of -- but Sun Valley.
LA New York so is constant so business is really pretty good right now would you go to find out about how to get -- -- yet.
You go to blue star jets dot com if you wanna share -- share jet exchange dot com beautiful great stuff for Thanksgiving audience should be back at -- as CEO of blue star jets stove get details this year and yet exchange program thanks for joining us today everybody had a good day.
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