Also in this playlist...
This transcript is automatically generated
-- what -- -- Fox Business stocks come pick to head to head up eyes might not -- the audience that hook up.
-- post Election Day city.
Those in need of voting districts got out and have their voice heard after all at least presuming voted for the people who won by -- yeah.
-- -- -- -- -- they did not -- an -- full force here in Sydney to vote for Thompson in Manhattan for there you were hurt you came out and you voted you made at a much closer race acting yet decided until.
Late last night so what you want -- -- the Jersey campaign to went late into the night it wasn't it wasn't sure a sure thing -- Even though he did have about a 5% lead most of the -- discussion for.
The day and another -- obviously but there's a lot of talk today as there.
How much ground if any the Republicans really gained in this whole thing I -- wasn't really important.
Yesterday take Virginia to take New Jersey get to keep you know certain made oral seats like in New York.
Believe they did lose -- upstate you -- though.
Yes they lost.
-- some ground but still you know you wonder how important it really -- -- I will -- a little momentum going forward.
I I think that your of Virginia is much more and Obama played in Jersey Jersey -- -- just all fed up and we're all paying out the Lazio I think Jersey was much more.
A result of Jon Corzine running -- in bankruptcy practically vs Virginia I know you really fired about that I'm happy today with the results.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- You know all the big promises -- nation over -- say -- whenever any politician says he's you know running on a change ticket.
-- it's an automatic it's yet pull -- off 100% of the time it happens 100% of time new ways to change.
Liz -- got -- -- is now.
Video games -- that way more important in this political garbage more fun and way more fun in red city California.
Electronics like how do you get these gigs -- that's what I wanna.
I have met John market talent and CEO while back when we return three days in the valley and I thought this isn't a deeper story we really need to take -- Hit it down -- and I hate to traipse around.
So yes we have a total all access your electronic arts and -- -- the makers of -- and keep a soccer which is absolutely huge globally.
Sam just forget -- they are one of the biggest the best globally and now hundreds of millions of units sold at sixty dollars a pop so this is definitely.
Pre holiday economy story you've got to -- definitely who's gonna -- money.
Will be sales pick up they have been down for the count big smackdown for the video game industry but one of their brand new games.
Don't even ask it is so weird and so -- in the shadows yet it's called.
Dragon Age origins it just got released and I'm sitting next to the guy who created it his name is doctor Greg.
That's -- and we are thrilled to have you here -- my pleasure I think I explained doctor part.
Medical doctor first you were geriatric and family medicine.
That's right yeah actually I thought about BioWare with two other medical doctor green peca is my partner -- -- -- -- -- medical -- and your general manager for the whole studio so it's.
Pretty exciting stuff we did we took a big transition from the medicine when you if you take that transition to video -- -- it was always our hobby we win we were young we put a lot of video games actually during medical school -- -- and they're proud partner -- and yet put.
They'll sit in the arcade games and in the play all these games -- actually we -- that we weren't we didn't concede that as a possible career we've come as a as a way to go.
Here's some kind of crazy man I mean I've seen these games and the stuff you guys come up with is so dark and strange in your slaying dragons this arch demon is that correct -- -- Okay.
Tell me about that is that the focus of the game the theme of -- and and how you come up with the ideas for.
Her -- -- it's a whole team you know that's that's not just me it's not illustrates this hole but a wonderful team tell the people who work of the years.
And and the way the way the game you really think I'd be behind Dragon Age -- -- -- they called a great Wharton.
And the world in which he exists is.
There's this thing called the -- that a -- 400 years comes up from underground these.
No evil creatures the dark spot coming my way such -- on the screen behind this it's the glory it's a bit it's a mature game so it's it's for adults.
But very very well written I think one of the things -- the -- This will be right actions published a second novel in drag racers -- number of more than in the characterize that BioWare games really high quality reading writing -- seeing movies.
Film actual golf is very very high ball in and so that's incredible story and great characters you actually take it's been through this through that through the story actually.
Yeah YouTube really spent a lot of time talk -- -- know them actually trying to trying to.
-- -- -- What is the Genesis of a super successful game because there are -- out there right now but how does it all started think that people look at some of these games in the six.
-- this guy get the idea and and where does it begin.
I didn't really eat it it's always a gamble in any game development is is a high risk venture in the sense that you could make something that's one of the best games the most highly rated.
But may not sell you have to both have become technical excellence.
And actually you know high entertainment value and even through making it more complicated you have to hit the public -- the right time when their interest in this in whatever it is here you're pitching you know I think we think.
If fantasies actually pretty -- the last couple years with with Peter that's one of the rings the Hobbits mr.
-- the corner.
It's it's about the hot thing but you know you can -- -- later hot and fencing and I'll be hot again it it you have to -- all these things and get right that's why it's it's a very challenging challenging venture.
In their competitors everywhere there's this World of Warcraft so how did you get people.
To get -- in their psyche that this is the game that they absolutely must play I.
Well lots of what we do a lot of opium -- what we actually built but we spend it's too -- do one thing you just a couple of opening the bill for the -- opening the c'mon how well we're building that's that's.
Honestly that's guys out of central casting Tracy and not on we compass that's actually describe it we literally.
During development bring the bring people -- -- we actually went and it is actually even for the -- -- my -- in the play it can't stand the test it actually let them blog about it left a lot to say I think this would be better if -- -- a bit that they'll tell us that but also missing if you wanna.
You know write about the game what you're experience playing and we love to do that -- a lot of stuff that we do a lot of lot of stuff that is yet to.
The ground up get get get fans -- -- -- building and it with a long history of making this kind of game is so that's another thing with the large.
Population of fans and get -- get excited about it to find success and -- -- all just sales or is -- something more quiet I mean the five wood says it has three areas that's obviously sales are important and and the more millions the better I mean that's just the nature of what do you expect them with us.
I don't know hopefully line but they'll multimillion sellers -- obviously and I think that we we built the game that can be that the reviews are great.
And so similarly as the fans really loving it like having what I think we really tried to use to build -- Branson during franchises.
So that's another another factor and finally you know we we actually buy -- horse fired -- -- -- are we want people to recognize that these -- can touch you emotionally.
And have an impact on people will center the lives on playing these games and have an incredible experience so if we hit those three things in the sales.
The that the commercial the critical feedback in the fan love that grade.
Addiction you know -- just got that weight worry you just talked about how how it can be very emotional.
-- -- tell a story had an -- for from your perspective because obviously you're able to straddle both he played a lot of video games but she made it through medical school and became a doctor.
You can have both in your life armaments is but told -- -- minute like everything else and and you can you can I've played games initially but the same time you know you have to.
We make sure you understand what's important in life sipping a family friends -- work school whatever it is it's it's and I think isn't sustainable content -- gaming addiction it.
I read an article from and fell from -- no one's.
Dances addiction special system.
Clearly he that -- proving games -- an addiction based on the fact that election no biochemical change which is the traditional perspective of addiction but.
You know people get really hooked on them that if it's it's sort of the very slight difference there -- what we really want you'll do is treat -- like it -- life.
That you you you make sure that you balancing it with everything.
And as we wrap up the mobile devices you know.
We've been looking at all of that and that seems to be the way of the future does this translate as well onto a small mobile device -- What's their reaction have a flash game -- just.
Up the -- a couple floors here club drag these -- -- flash I would actually.
Think about putting on like iPhone taking a mobile devices lot of things you can do it and mobile devices -- -- -- mean obviously the future's going to be.
You don't you take your game with you but actually about your game is -- exist on mobile devices that sit at a computer -- the same game but in different way.
You know you put a console a different way it all all in the same game world that's the future districts -- -- Greg is not going anywhere in fact we're gonna hop on over to Fox Business Network and we will be slaying the arch.
Demon I think second -- I'm going to slay the dragon you guys saudis are great -- for unemployment grey warden.
Yes graduate yes not a great -- and -- Martin and Greg best Jack over here and electronic arts and other Fox Business exclusive but.
Hop on over when the webcast is done and then check it out.
Thanks -- appreciate it great stuff with claim that is so cool well city California -- electronic arts.
Annual was really -- -- in that conversation and I guess the answer that -- was I wanted to know how secretive they are when they're making these games -- he said.
They bring in focus groups the play him in the blog a bottom.
When it when their reproduction so -- -- not really hiding a whole lot from Activision about what if there was real espionage going on.
Stealing ideas Activision knew he has this he got a -- by doing that you know doesn't sound like that's really what's going on.
Well I guess and then that's.
It's a great point actually because Heidi it but he still had to test it you still gotta get them what I don't know is out there to sit there in my longest brain brain wouldn't -- these and you play although.
The Blogosphere in Berlin tunes I do have to say -- as a parent because -- got to read review on the thing.
It does say partial nudity and sexual contact.
In a video game and my -- clue us.
What do you mean no video game -- you -- it's no longer space invaders in defend their -- to try and remember all the job.
Those are good okay my little Atari system where you -- a frog about a life yet people -- remember -- the line wasn't even like.
It was like zigzag could you couldn't get a smooth line Conrad video artists is here is senior at economist at RDQ you had a -- -- that contract sick a couple of we all had the title the what was the other one the -- legal vision.
-- now we are -- households yet television was once and I'll I'll go off that was absent on this.
It doesn't does doesn't it.
For the rich kids I don't have a forget about the games like what the other rich kids those who are making money -- if anybody right now -- couple 10160.
On the -- kind of stay in their little bit here on.
It strengthens all morning long home.
They -- women should we've had this thing yesterday when we got the Yemeni news should be -- a 160 yesterday instead of down.
It's really hard to read this market isn't.
But you know this is an important week for for data as well and today.
They were sort of mixed to get some better numbers on employment front earlier in the morning and then.
Later on we had a little bit more -- pull back in in one of the economic releases but I think people are sort of getting ready for the the event of the day which is the Fed meeting later on but you know broadly -- -- looking at the -- that things are are positive and and I'm not surprised equity market is.
But we're all kind of leave that -- that between five and 10% of and that's the general consensus do you agree with that and have we already had that or are you still looking for maybe a little bit more to the downside before -- -- -- Well you know it says it did to pull back we were looking for a pullback back in September and we did have it.
So you know we don't.
Try to short term time the market too much but.
You know wouldn't be surprised to see if it bit a bit of -- pullback given the run that we've had in the equity market but I think longer term.
Our opinion is that we're probably gonna get a -- a profit margins were probably gonna get some.
Nominal growth nominal revenue growth that results in pretty decent corporate profits and I think that leads to higher higher equity prices over the longer term.
-- -- your partner John riding have been very consistent about one thing and that there's of lack of policy you're you're afraid that because -- a lack of policy to get out.
To continue this at -- economy with -- the government involvement that's the and shaky part about.
Yes well you know it in the short term what we're seeing right now is it did anyone expect three and a half percent real GDP growth six months ago.
Probably not right so.
The short term data have come in stronger than expected we are getting some boost from areas like.
The manufacturing sector which is performing much better than most of us look for its related to inventories in cash for clunkers and that that our concern is for the longer term right that the missing piece of this puzzle -- labor market.
The most job creation come from small businesses and I think that's small businesses still have reasons to be concerned about.
Adding to their cost significantly he's really don't know where those cuts are going to be in and speaking as a small business owner we if we wanted to add to payrolls we don't know.
What sort of health mandate we're gonna have next year we don't know.
What sort of additional taxes we're gonna get particularly the state local level we we come across new ones it seems all the time.
And then we'll face a higher tax environment 2011 so the longer term is an area that we're more concerned about yeah I'm savage spending more policy does that mean the government -- to get the heck out.
But what we would -- you know if if we are gonna -- government policies that support growth we would like to see a broad based tax cut we're not gonna get that and and -- the policies that are going into place I'm not saying that the government needs to completely stepped back I think the -- that fiscal policy.
Can be supportive over the longer term but I think that needs to be in the form of -- broad based tax cut not governments.
And bullet task that related to hiring help is that that's on the that we thought there as well new -- -- taxpayers small businesses really need those tax breaks.
But the -- is gonna have to push them to hire me they're not just gonna do and I've learned how to do it with did you know patches batten down so what's gonna force him to change what you know I would like to see something that's that sort of just.
More simple and across the board just let businesses keep more of the money that they make and I think you'll find that they'll put that to work in terms of higher capital investment in higher investment in labor.
I'm just you know not expecting that in fact I think that we're gonna see things in the opposite direction we have that 2003 tax cuts expiring sun setting in 2011 so.
It's not a tax environment that I think is particularly.
Very -- one for for business.
And as far as the government getting not mean they still haven't been spending -- -- money so that thing -- you know in this economy in the going to be for at least a homer of the year we haven't heard.
Anything about their exit strategy.
Well in terms of the on the fiscal side the estimates are.
That more the spending actually comes next year than -- -- this and that and that's I think.
Important when we consider a lot of people are saying -- the three and a half percent GDP growth that we had was all related to the government stimulus spending is gonna go away in 2010.
And we're gonna drop back down I think that's unlikely.
I -- think there's a little bit of an exaggeration of the the impact that that fiscal side -- have a I definitely think that.
The stability in the financial system that was that was created by the Treasury Department Federal Reserve has been very helpful and is allowed us to have the type of growth that we've seen but.
I don't really see that the fiscal spending side as an area that's necessarily pleased to grow that significantly.
Konrad thank you very much sir good to see in my pleasure and -- Quite -- -- of course from -- the Audi -- economic -- -- content there and I just look at regents.
All day every day they sentimental -- along these guys are great he and his partner John writing.
It's -- you know once and -- caught your eye right now and one of the human.
I'd like to find -- look -- you're on you can talents canyon I -- well.
Literally here's a club I talked to any divorce attorney these days right now because of where we Iraq economically.
No -- as a filing -- that's what it's slowly coming back Graham.
Homes most homes are in the toilet with a divorce rate as a result -- the -- Less and less people are getting divorced now -- it's probably for financial reasons that they're deciding to.
-- it out and stay together but you.
It is very closely to get divorced and to split everything 5050 when there is no 5050 anymore I guess but but it's also.
Isn't money the reason why so many couples get divorced and human being isn't the huge part of their money squabbles and money problems -- in that closet -- -- argument -- -- yes yes absolutely but 54% of matrimonial her attorneys are out there now saying.
Divorce the divorce rate is down because of the economy -- this for a while now but that is a huge number.
How many of those people you think.
That would have gone to voice what did not get the -- because of the economy and up reconciling during that period and stadium for the long -- not many.
I'm I'm not I'm I'm not gonna this is a purely opinion -- questioned -- give me your opinion on it is no scientific fact they just want your opinion.
I'm gonna say none fairway and -- zero.
And yeah it's not a race it's.
-- -- Yeah Michael Rolodex what is this 1985.
-- got to a quick break FOMC rate decision coming up at 215 this afternoon.
The thing about that we come Martin's on that what's gonna.
-- the back foxbusiness.com.
Before we go to doctor Bob froehlich who -- -- my favorite people in the whole world I have to read comments from Jay who wrote to -- and said let's remember that.
The prime reason for divorce.
Is marriage fair enough today ferret out there and have that's what you -- -- you're absolutely sure -- -- getting married at 21 like pants right.
Yeah yeah I think is too young but that's -- a another show you.
Doctor Bob froehlich senior managing director Hartford Financial Services Group -- known you forever and you have -- now.
Pretty bush on this markets are our east.
And I'll tell you why because I think we're.
Who -- -- to -- the same crossroads -- that we work.
Last march and the same crossroads at last September only a question changed back then back in March and September was recovery no recovery.
Now we've answered that question clearly the economies recover.
And the market recover but now the issue is sustainability.
And I think people were betting on the wrong side of the sustainability because I think we have two things go and force one is.
The unbelievable bottom line focus and these companies have -- -- it hasn't been -- how they did it.
You know downsizing and firing people laying them off but make no mistake about it there's a reason why productivity -- six and a half percent basically.
Anyone has a job is doing the job to people know what can I got up it rhetoric so any -- but this sustainability has to come from the top -- That's the most exciting thing that I see right now -- even though this is I wouldn't call this.
A great earnings season but I would call it a very good earnings season if you're looking at the top line because we're seeing signs of the top line right.
The problem -- -- -- has some say catch 22 and a out of companies not they've squeeze it all out and -- -- as they can be having grown top line when people aren't spending and people aren't spending.
When the companies have already squeezed everything out and people don't have jobs and what what comes.
-- here here's how they do that they're gonna have to increase her inventory in almost a panic setting in that is in anyone's forecast right now right now the consensus.
-- all -- -- -- -- we're gonna have a slow gradual inventory rebuild.
Can't happen because of global economy's gonna grow -- 5%.
At 5% global economy you can't you can't use like the Japanese model just in time inventory you gotta have -- on the shelf so I think it's going to be.
The global demand that's going to force that inventory to happen so.
I think that's going to be one big move.
The other move this company set and.
In aggregate so much cash on the balance -- they're not gonna use it to hire people which to me means they probably spent and on technology or try to push productivity even more so I think that again that -- top line revenue growth number and the -- what this was not my -- but it feel you talked about it -- on the earlier segment.
All of the 787.
Billion dollar stimulus package only hundred billions been spent.
Billion that it's gonna happen in twenty had a let's just a coincidence that -- all for reelection next year and that that in May -- -- All works out like that so -- -- gonna be spent efficiently in your mind I I don't know reasonably efficient.
I -- I don't know that it's ever been spent has officially -- -- -- -- to -- back I.
I would look at here's -- I would like I would like the Chinese model the Chinese model was this -- spent every single penny on infrastructure we talked about doing that here but we didn't do that here now we just spent a lot of money making signs saying we're gonna spend landed perfect.
But the actual infrastructure I mean you get the best bang for your -- like think -- -- a better way to spend that but to me it comes back at the sustainability of our market is all -- top line revenue growth I think the global economy is growing I think we're gonna have inventory rebuild.
And I also would not discount the consumer as being totally -- right now I think it's a big mistake.
I think we may shop differently but I think people still shop -- -- you when times are tough you might squeeze the toothpaste a little more before you throw it away but if -- -- -- shopping well.
As the -- factor start -- -- -- you can bet you can only Wear the same socks for so long.
What do you expecting -- from the Fed today why.
I think -- I think we heard from the Fed yesterday and NF since that election results that -- -- They -- Democrat vs Republican that was a message to every incumbent did that this country's angry this countries concerned still think about this.
Unemployment -- going to be double digit.
So you're you're sitting in most powerful position in the world you got 535 members of congress get rate of go back to the home territories to improve to get re elected.
Double digit unemployment there is no way in the world the Fed can do with thing for another year they -- absolutely -- for a year interest rates steady but wait what language that's really what we're looking I -- think they tweak the language not I I think last night may have had a greater influence I have because right now.
You've got every incumbent sank all my gosh look look look at the landscape has changed if the Fed starts spinning -- a -- -- changed now that's going to be a year's worth a hint because they can't move rates until we get past the next elect I mean we're talking and -- the first move isn't going to be for a year from now.
Dow 101000 Dow 111000 that's great for really.
It directly affects a small percentage of the population -- affects everybody -- jobs Alina steele's comeback isn't that the beaches goes on every now.
No we're not where it they're not coming back that didn't maybe next year we'll start to see signs that look at businesses got -- First full businesses were forced to downsize and right sides and get things going.
And they the dynamics are -- in the favor of the employee your right now even with profitability coming back they're not gonna go on a hiring -- I think they're gonna take their time so -- -- I think we're gonna have to be used to.
The new normal to -- maybe the new normal is 8% unemployment I don't think we're gonna get back to 5% unemployment again you know I think we're gonna be a ten and a half before we start trending down and I think you'll take the next summer which is also why I don't believe the Fed can do anything.
When when unemployment hit friend is still picking up two -- the ten and a half there's no way in the world we can say we gotta slow things down.
I think your -- a good thing because why hire full time you can apartheid army could hire -- -- can you quickly explain your notion of a Y shaped recovery because you have this crazy letter compared everybody else.
That's because I'm tired arguing about -- that the alphabet I I think we've recovering I think the recover.
He's going up -- think this -- the bottom of the why is we're going up both in the market and in in the economy.
But not everyone gets to participate and that's what I'm saying it's going to veer off there's going to be clear winners in clear losers especially from an investment perspective.
I think the financial services industry is going to be a clear winner and I believe that because that the yield curve is gonna steepen the Fed can't move rates -- -- The short and stays there the long angles off because of the global economy I also think the -- the -- activities gonna continue to.
Play out a big way so financials -- I think technology would feel the thing about this we really haven't had a replacement cycle since Y two K.
Any silverware and the same amount we thick and I looked at me have a -- -- And I think that everybody is so great to see them so Vladimir -- from a surprisingly managing director Hartford Financial Services that -- -- thank you.
Hopefully next time -- -- -- and you'll come back and.
People do -- and then you know if there and video games don't wanna.
I guess he had spoke even not get any support us creating that right now is separate radio I'm not weightlessness -- lets loose -- -- is -- little we thought we.
Doesn't lose again when he's -- lives there was winning and who's losing today in your mind.
Believe it or not there's a fair amount up based on the fact that the market is -- a 118 points but I do have a loser it's Conway believe it or not.
Third quarter profit down 67%.
This is a freight transportation company.
And the reason I soft spot for Conway actually because -- -- less than truckload and global Seth segments missed.
Estimates that first story I ever wrote as a journalist was about be less than truckload industry I walk in the doors as a journalist I know nothing.
And they asked me to read about the civil thinks things have changed since then -- -- -- carbon footprint and I was reading about Con-way back -- -- But now OK some winners in General Motors actually switch gears they're gonna sell Opel to magna -- -- so -- stock is moving.
Fiercely actually because of that.
Also wellcare swung to third quarter profit and they also released -- the centers for Medicare and Medicaid.
Had them on disclosure sanctions they released all that it's over -- moving today bank of Ireland moving believe it or not -- Happier first half profit down 73% because of restructuring and impairment charges but they did say that their loan impairment.
Estimates going forward are gonna stay the same people are very happy here that they -- -- if that was gonna go up that was an increased -- -- -- -- -- -- horribly bad.
-- -- I think probably yes but not more horribly bad so that's something actually.
And Ambac is your big mover today swung to a third quarter profit and this actually.
Bothers me that -- was.
Of mark to market changes on their credit derivatives.
With it which insisting is that without the change in mark to market.
Last year these this cost them billions of dollars in losses and now this year because of the mark to market changes we saw to that besides.
And their credit derivatives are being priced at a much better rate because of -- -- Ambac having -- nice -- today thanks -- It counts caving and changing mark to market so that fodder from other -- So that you -- is that magna is up today because General Motors is not selling Opel or -- solved -- Magnum because they decided not to the Canadian come right now via all -- months of talk.
Now on sons and anything you know what.
We're gonna try and -- -- to take.
In this thing that I sit and then when I got to make sure enough and they change they switched courses they're not selling it is good for -- -- -- -- you know clearly did it sounds and I want -- junk.
-- -- -- -- And they had -- right of walks on contiguous Morrissey and the idea on Vauxhall and I was and that would it was so it's actually pilgrim and I think -- -- -- I'll only come back a lot more on the Fed decision coming up we're gonna talk about.
-- -- caught my I have -- that I'm gonna visit with Jeff Flock.
Just talk and autos and look -- Fondness dot com live continues -- -- burns up a hundred.
What's he points right now on the day better sharp stick in the united.
Also the all movies right now yesterday you Cleveland -- -- question.
-- -- Viacom give -- a surprise upside on the earnings today it was Time Warner beating on the earnings per share line meeting on revenue this morning in -- -- -- from Yahoo! movies.
Joins us right now.
Don't -- -- -- the conference call this morning Simon -- for the CEO for Time Warner said.
Body -- -- the publishing is a drag right now on earnings but he called the film division very under appreciated do you agree with him in that regard.
Definitely do I mean they've that come off another great summertime in that too.
That a make a global success -- for the latest Harry Potter movie to -- to hang over huge surprise with a hangover and money is still trickling in from those movies so.
Nothing wrong -- they had.
You know that the third quarter -- being a little quirky or you have -- more genre films and had a couple successes there you like a good date night movie came out time traveler's wife based on the popular book made over sixty million.
He also had in some film like the informant which -- Steven Soderberg movie made little over thirty million.
The kind of weren't sure what to do with the marketing wise but still you know when you got Matt Damon you're gonna make a little bit -- money so.
You know I think the future looks looks really you know steady very bright.
It seems like -- these sub field former media conglomerates and -- the started spinning off some of -- -- -- different pieces.
But it seems like they're relying more and more on film revenue will.
To give them their growth is this what you're seeing as well and he can we expect this to continue fourth quarter -- 2010.
Absolutely I mean the whole summer was once again record breaking -- three years in a row that.
You know they -- now eclipsed over four point two billion dollars for the the summertime the four months of summer time Warner Bros.
a huge part of that.
And and all the studios in there and seeing how to make little cut backs him duke is.
That was one of his big things he's like we're gonna we're gonna really in some of the the publicity and marketing expenses and some of the -- the other extraneous costs and and really make sure that we streamline.
The profit and profitability of theatrical releases.
You know there's still -- -- Time -- in particular still struggling with this whole big.
AOL and it's a noose around their neck and it's been since I remember when the deal happen with Steve -- -- they're standing on stage like he's the new hero.
And unfortunately turn out to be the biggest disaster ever movies though because.
Even -- stocks have held on tremendously during this whole thing and you gotta believe that.
But I'm not the hugest fan of some of the films out there and that's he's gonna call -- it girl because a lot of them are action flicks but.
It's still something you can do and not break the bank now I do is sneak in popcorn and I will be the first to admit it but you can still take your family can still go see something.
Without feeling like you're not going to be able to pay your electric bill.
And I got to believe that has something to do with why movies have held on why the movie theater stocks have held on through this whole thing.
That are in tough Financial Times you know movies have always stood out as like the one form of entertainment where people can escape.
They can do it affordably you know going to the ballpark super expensive to take your family you know go.
Jumping on an airplane to go travel somewhere -- you know sadly all that stuff is just.
Really did just -- really exorbitant to damage these days but I can still get away for two hours take the family and you know of course the cost of all your goodies and -- -- sneak an amendment.
Yeah it is kinda high but it's still.
The most affordable -- so you know and and -- a really great lineup coming out in this holiday season some bigger movies some like more.
You know mass -- movies than we've seen and in.
Kind of the last few years during holiday season you know a few more event movies like 2012 and an avatar the new James Cameron movie -- including and then the Sherlock Holmes actually from Warner Bros.
-- some blockbuster is what is the oh what do you think the impact will be.
-- with -- YouTube and -- that movie houses now trying to put some cots and more recent contents.
On -- YouTube and things like that is that going to be an immediate impact in how -- -- one do you think it'll be.
We know everyone everyone's getting lots of video -- they're learning how to all the -- learning how to maximize the use us really well you know Yahoo! movies were big.
Big partners -- -- you know we help them debut big exclusives gets people excited about the movie's early so yeah that's there is.
They're -- -- -- only learning the only just learning how to best use their assets and and especially how to use the online audience because.
And a lot of ways that's the most economical -- mean they can put stuff up there for free and they know people will come.
And watch and you know and they didn't have to -- media for that.
Can you talk about fell 3-D movement because I got to believe that's something they're using to keep.
People from downloading these movies for free or YouTube things like that you can't get a full experience of a 3-D film.
Unless you're in the theaters.
-- right -- kind of kind of is a bit of a defense against that but.
What it really is it's it's another means of making a little more cash at the at the box office.
And expanding the money summer movies -- funky rigid and his glasses it's more -- any.
That's right and say you know what in -- the margins on all on sort of the the increases at the box office you know for the 3-D IMAX movies now it's it's next to nothing you know because putting in those you know the special cameras and stuff.
You know just to show the movies you know it's like a one -- cost for the theater and you know there at the -- always trying to find their angle on trying to make a little more money so.
You know -- would the whole emergence of 3-D and IMAX and everything like.
Everyone kinda gets a little extra cuts so that makes you know everyone in the business of movies now.
That much happier than.
Yeah -- -- they're reintroducing.
Favorites like Toy Story.
And movies that -- you know the kids if you already -- it as three days that's a home run for everybody some everybody's making money on that.
Oh my god I mean yeah why not why not put the the -- the movies that were already winners and they talk about like you know everyone's doing remakes but.
-- why not just redo the movie so that you can throw the glasses on the whole new experience and you know those movies made piles of money back in the day -- Yeah Disney and in particular very much at the forefront as his DreamWorks and -- really really spearheading the three be near the new 3-D generation of movies.
I shall we appreciate -- we have Yahoo! wants to be digitally remastered all right -- that -- we can you know continue the other revenue stream I'm a man.
Thanks John if John John -- -- -- -- that -- -- expression.
Digitally remastered they say it's -- -- is -- digitally mastered so you gotta see what caught my -- last and I thought it wasn't digitally remastered Liz Taylor -- Is an -- masters that it is at the same thing.
What is so cool if the road runner with 3-D cameras -- the road runner connected -- will say this in his -- movie.
Yeah that would area in 3-D.
I saw when I saw it's raining spaghetti and meatballs and whether Al -- -- Edison company rather upon -- that I've been net he's -- The preview for that -- -- treaty with the glasses cool and all her looks really really cool a lot different from that that the reading movies.
That we saw it was black light when my son all -- it's time now to a look at Fox Business dot -- and yes interesting stories go happening there in you've got some enforce that that you really -- today.
But it's not -- Isn't life -- little slide show that you watch on our website which is really cool but it's about how this guy is making clothes out of trash.
Creative I guess is the well -- obvious you know body connected via -- effective seat in the environments you can get out there.
And watch how he's doing this and they have this lingo now for people who Wear these clothes.
It's attain a team shirts and things like that -- like pick Eric Holder and trash running he's creating his whole language to -- -- buzz.
-- is product and I what I love about is kind of little grassroots marketing.
He creeps up a little lingo you get people to certain little buzz about it.
People get curious and all of a sudden you have product that's out there that I think is a genius part about it I'm not entirely sure.
I'd Wear recycled clothes.
I know it seems anywhere that I mean with who -- society and I.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- He's talking about the top 175.
-- and it's not just the sea suite so a lot of top salespeople top traders are leaving as well -- actually joins us is what makes my job these -- is go to the -- right away and say.
The story really caught my ally what's what's the deal with this how much talent these companies like these big banks like Bank of America really lose.
You have to talk to these guys they tell me that it's a lot.
And I tracked down and protect that about a dozen of these guys and I spoke to about a half dozen and what they tell me is.
That the traders the analysts and brokers the Fed up they're tired of seeing their name in the news constantly they're tired here -- that.
Wall streeters are evil and admired here in that anybody who makes over.
Phil on a number 200000 dollars a year should pay it back shouldn't pay that should make that much money.
And so these guys said hey you know what I have a name on the street I have I have a reputation I can go somewhere else and and they did.
Not dare not leave in Wall Street that is basically walk around him in a different hat.
A better yet -- had different color right there that you know the -- around the little boutique firms they're doing the same thing they're probably making just as much money.
That is not associated with these big evil name.
Exactly and you got that's it's a good point you do have some these start -- boutiques that are coming about because these guys are leaving -- -- now I don't need Bank of America my own name I've got mile clients.
And you've got guys go into some of these smaller firms there were some.
Was -- places like that.
Where they can do exactly the same thing they can bring their name they can bring their clients.
But they don't read about the company on the front page and your time here or Wall Street Journal every every week.
And you know.
One of these guys said to me which -- thought was interest thing.
Last year I guess it was go back to January December January.
You had this sort.
Torch and pitchfork mentality of anybody who was.
Being paid a bonus on Wall Street and and you had I think it was in March this house bill passed -- they were gonna -- things that 90% rate or anybody you made over at 328.
Members of the house voted for that thing that's Republicans and Democrats.
So you work on Wall Street you're looking at that insane.
And I want to stick around at this place and no one guy said my salary is my -- -- -- you know they they they get a check every week but their means salaries that -- The guy said that simple what I can absorb -- suddenly I'm indicated 90% simply because I work for ones are.
If people say well these -- the guys are -- of the ground but it's really not when you look at some of these guys they're not gonna do it.
You know what it the end of the day -- I think you're gonna get these guys to go out start firms start offering very similar services cheaper.
And so right -- an -- undercut the big guys they want to bring their clients with them -- the end admitted that this actually can work out brilliantly.
For many you know of their clients of customers things like that because they're getting the same guy the same product.
Probably at a much cheaper -- -- with some crew.
It for us though because then -- the companies we need to do really well to pay back the taxpayer and the losing.
The business to these.
Smaller companies that that used to work for Bank of America used to work for city that's the thing it's so either one of these guys said it's counterproductive -- -- candidates trying to.
Try to maximize the return on these companies because we -- the taxpayers are the biggest investors and and here were saying to these guys well your top talent you have a name but we're not gonna pay yet we're in fact we're gonna we're gonna have Phil and I don't know -- -- you organized we're gonna say -- able.
And -- little bit fed up and you know as I said in the story it's it's a little bit difficult to garner support for sympathy for these guys but.
When you think about it we really should have some sympathy because it's our money.
Clear because it wasn't and it wasn't all of them that caused the problem right -- guilty by association good stuff down thanks spend Thanksgiving and Alan Cox business dot com.
-- -- if you love it's paid a lot of Hulu might have some competition looks like apple.
Could be throwing their hat into the ring we're gonna talk about them we -- -- Do you love you know if if if.
But back at the end -- you can always email us at the -- live at foxbusiness.com.
We're on Twitter.
Other -- not but we at -- at the end line we are on Twitter.
And don't forget to download that great app for your iPhone you can watch this anywhere you want and -- you were watching us yesterday in voting booths because people got out.
Imploded you went out on the voted thank you very much irregular and that's com Dan -- and joins us right now associate editor at Mac world -- again.
-- -- Surrounding.
The the surrounding apple on this this -- involves prescription subscription I should say nonprescription I need a prescription.
Some description TV -- is that right.
That's right well what we're hearing is that Apple's going around to the content providers of the networks and the companies to back them.
And it's pitching an idea for subscription service where consumers would pay around thirty dollars a month.
And be able to download their TV shows him live on the web that kind of thing.
-- -- -- -- my cable bill.
Well I mean that's that's a good question I think clearly that's what Apple's hoping for I think they've done great -- music in the past and -- TV they've they've been selling TV shows for a long time it.
-- really taken off quite the way that they hoped.
So I think that they'd like to challenge the cable companies and -- -- guys coming in like Hulu and Netflix try to get a piece that high.
Obviously they're gonna have to -- -- good list.
All -- TV networks cable networks because it's spread out so much right now.
Is that more of a pipe dream or do you think that's a reality that apple could get deals with.
All of these networks to be able to give everybody what they need to make -- thirty dollars worth their while.
It's a possibility I mean they've been dealing with them for a long time in order to sell their shows on line.
But I think the networks are going to be able cagey about this because they've seen what's happened -- the music industry when they -- so much controlled apple.
And they're worried that you know if they start.
Turning more stuff over to a subscription model.
It might cut into their ad revenues in my kinds of deals they get with cable providers like Comcast and that's really where they make most of their money these days so it's going to be a question for the networks -- whether or not worth their while this is -- Is all part of apple trying to take over the world because there is a little bit world domination undertone here with this right and they started tried once before with Mac TV and that's sort of fell flat.
They clearly are trying to work off the fact that they have always credit card users on iTunes now right so if you're gonna pay for music you model paper TV.
Again it's it's all part of this.
World domination -- your house has to be Mac.
You know from start to -- well I don't.
Don't think it's necessarily a world domination but certainly they've they've made their career out of producing great products the consumer consumers who is in the white.
And what you said they've got over a hundred million accounts on iTunes all the credit card numbers attached and that certainly seems like a great installed base for them.
Com and they've tried to move into the living room with the apple TV product and -- haven't had much success with it.
There's a lot of challenge -- that the existing sort of broadcast model of the cable -- extremely entrenched obviously so.
It's a hard sell to get people to switch over to a completely new way consuming television.
But I think apple would clearly love to have you know more media coming through their -- We talk about what's important to apple -- this obviously has to be.
-- weighing down the you know the -- -- if you will in terms of you know they've got netbook that we we're all you know really anticipating right now that they've got probably.
You know another four G phone coming out I'm sure relatively soon they love to do that the -- as -- -- -- By the 3GS they'll throw another whenever I imagine this is further down up down the important -- and it.
Well there juggling a lot of balls right now and it's hard to tell apple obviously -- things really close to the vast.
But I mean the sort of the rumors floating around -- suggesting -- we could see this as early as the beginning of next year but it's impossible to know they might hold off until especially if it takes a long time for them to make these deals with the content providers.
Which I think is going to be the longest part of this we're gonna have to wait and see when and how those sort of pan out and they're not missing anything until they're good read.
Is this something we're gonna see come holiday season of the anti -- this is like the new holiday gift to get.
I don't think we'll see in the holiday season that seemed a little bit too early in -- focusing very heavily on the the music products they just release the iPhone and Mac sales and that kind of stuff so I think those are really where the money is for the holidays.
But but looking into next year and beyond their certainly trying to expand their their control and expand there there interest and all these different medium.
When we got to see this new netbook well we're kind of anticipating that this is this the small computer this web based computer from.
Apple has received from a lot of other folks.
Well Apple's made no bones about saying that they they really don't feel like they can produce -- -- by some 500 -- is -- computer that's not crap and that's kind of what they view.
So I think they're gonna you know there's still seeing how this market shakes out.
They have a number of portable products which have been very popular laptop sales -- through the roof in this most recent quarter.
So I don't think they're in any rush and they're making a on a profit on the product that they you have so I don't think they necessarily -- -- impetus to have a a cut rate you know low margin product like that.
But I they are clearly working on on new sorts of things we hear a lot of rumors about tablets and -- and that kind of stuff so.
I wouldn't be surprised to see something like that from them the next -- years.
I think and we appreciate it good stuff is always -- delicate on the road thanks and Dan Martin from mom that will be associated entities that that -- on apple mightily this new TV product but it's coming but it it -- -- stuff is expensive now I know it is especially in -- and it.
Yeah I don't get that I don't get back as you know that -- a couple years you have to go -- by.
All over again this recession resilient it really users still lines.
Outside of eighteen team I.
I can iphones activated outside of the apple stores and I.
IPhone and the iPod -- that doesn't break the bank but you took 23 -- and for a laptop that you can get and just the netbooks.
But there's still it did they have a small market share but there inching their way higher that's why -- Windows 7.
The PC that might be home PC juggernaut that is the equipment the software everything hoping that Windows 7 -- -- -- -- now.
My whole world domination theory is that when you haven't a laptop and apple you know -- Mac.
Something comes out and it brainwashing you -- leaving you could only own these products to the rest of your life and in your mind that I balance with and I think you'll know for sure.
I X is coming -- accident.
A -- come being a race fan.
Toyota announced they were talking so much cars over the last couple days Toyota announced that they are going to exit the the woman -- won this -- they've been in now for eight years and they have yet to win a race.
So they say you know what -- don't -- it it's gonna be keen to see whether they decides that exit.
NASCAR as well we'll talk about there's a lot of money going into that right now is talking NASCAR about changing the way the cars look over the next couple years to more.
Truly match the -- you can buy but off the children so but but lately it's basically up Honda got out.
Very recently out of Formula One.
And some analysts think that might cost them as much as 225 million dollars the first year they were out because.
The -- took over one manufacturer's championship and Jenson Button -- -- you love that game.
He won the individual championship so it cost them a lot of Mike is a huge global sport not very big here in the states so Clinton racing for the ones you listed on the cause some PRI PR money you're talking about.
-- Randall swisher you know we talk about branding exactly that that it was so there's another car and not on that won the championship and was seen by millions of some what's going on fashion half upon how they don't have the money right now and -- -- that they are one of the highest spenders in Formula One and they haven't once -- -- -- -- -- the bang for -- box and again now.
-- -- he was still concentrating in.
The you closed -- NASCAR racing here in this country -- it is a casualty and these car manufacturers are spending less money on these sponsorships because they just cost so much money I tell you about.
People still go to NASCAR odds one they do few events that is still jam packed.
Can you should -- some time pocono raceway not very far from where you live.
Short little drive on -- Sunday morning and get out there and -- -- and watchers not to go draw you can't drive the car again heels don't work in zero gravity and they don't work when you're driving a stock salary.
Think it's class act up not ride out.
I mean I think -- break you have what it comes there.
Welcome back -- a couple 116 points on the Dow Jones Industrial Average right -- we seem to have found a little bit of a plateau here.
You need days so we'll see how that goes -- the -- that showed that about ten minutes left Jeff Flock joins us right now and Auburn Hills and Jeff interestingly enough place right.
I'm not Fox Business channel the fox -- network earlier look look kind of a strong did you.
You have a Sergio -- yeah I mean yeah.
We almost had him again here just one until watching what you see here is the stream of people these the folks -- attending this meeting some of the analysts some of journalists.
Other members of the Chrysler -- management team.
But you know -- tell -- a way that's what happens when you don't ever talk that's what.
And everybody wants to hear what you have to say and he was.
He was somewhat still stinks CN although.
He did address the meeting.
At the very beginning -- just looked at through this crowd -- spot continues to.
-- the crowd I'm looking to see if either the the chairman of the board -- Kidder or some of the other.
Board members are.
Visible but I don't see as we poke around here I would -- to be on the web because we can do this you know to where some worse by swears that it's.
Pat and -- -- you look Jeff let me ask you.
Are we expecting my statement to talk to -- -- analysts yesterday he's so you know I don't expect anything new to come out of this conversation.
Well here's what's new already.
Curiously enough -- a lot of people have been concerned about Chrysler burning threw -- some of the government money that it received.
Marchionne after telling a joke which I'll relate to -- to -- in a moment but.
Said that when they started operations at about four billion dollars cash on hand says currently at the end of September they had five point seven billion on hand so that's.
A piece of news that they've got some positive cash flow.
And he he said and this is a quote now.
We -- Chrysler have been incredibly cheap.
And if you know anything about -- he does look to to joke around a bit but is very plain spoken.
-- we walk outside your -- tell you one more thing.
That's where the people are smoking apparently right there.
This is something you don't typically get to see this -- the Chrysler corporate.
The campus it is the largest.
Essentially office building.
Outside of the Pentagon in the US and outside -- maybe you see let's start to rain a little bit the Chrysler product lineup of wanna show you one other thing.
And I'll give you that joked that he told the beginning.
A Marchionne said as he got up but the beginning of the meeting said that the -- you quoted Al Gore with this one so don't expect too much but he said.
I feel a bit like -- -- fifth husband.
I know what I'm supposed to do like just don't know what I can make it interesting.
Standing there and love that we're Spezza and that Jeff is just -- -- 400 -- expected to announce that some of these.
Brands miles are gonna -- I think -- and in fact this one probably is gonna go away this is the Chrysler PT cruiser which.
I we understood that that they were gonna kill -- he sort of brought it back I think they're actually gonna kill it dead.
What they're also gonna do is they're gonna revamped some of the things that fans they're gonna re fraction of their three.
We have gotten -- three vehicles are gonna refresh called yet the Dodge Avenger.
The journey and the act -- are all going to be refresh they're gonna come out with a new.
What they call CUV a compact utility vehicle.
And new C segment that is they compact segment compact car a new hatchback.
At a new.
And some of these will be in concert with Fiat is wide speculation this 500 here.
Which is so successful worldwide might be something that they would introduce into the US but it does seem instead of just bringing the Fiat over what they're gonna do was try to -- old.
And come up with something that sort of a velvet Fiat and.
-- -- -- A different to them I don't look at that PT cruiser and that thing rolls like a basketball so I wouldn't go anywhere near that -- probably Smart to get rid of that.
And by the sugar you eat what you need to write down all that march Johnny -- for today because I'm sure -- -- going to be more than you can say on air and then you got.
I don't know -- I -- be just what would we had -- on the business network that he was speaking Italian so god knows what he was slam but I asked Libby would speak English for a moment and he did and of course I think he speaks about Ford equivalent.
And so that's me dad dad.
They -- and they is some nights it's zip lock up -- I think I know people that have Chrysler's and they if god forbid they break down they cannot get parts.
Suppliers and anyone who -- -- -- it's very tough right now.
I -- throw it out to Richard.
Peterson director at credit markets analyst -- S&P speaking of top.
Where do we stand right now as far as you know at.
I mean basically big picture and seems to me things are we've had people here data tells -- looks -- I'm not seen it some months.
Well I think we're gonna talk a little bit about.
With the relationship between the World Series.
Well and you have but at I was hoping big picture before we got the sport but okay applying tough I think I -- -- -- -- -- -- -- out.
Right Richard -- I.
People pull for the Yankees or the Phillies are doing -- New York Mets fans don't like either one.
But hey this is more than just whether you like the Phillies Brandon of the Yankees brand this is about dollars and cents.
For the next year because of one team wins historically there's been a little to -- in somebody's.
Right that's definitely like the fact that what happened here -- S&P.
-- numbers going back since 1936.
Showing how the the as competed in the following year after -- -- the series and what it shows that from 36.
In the twenty times that the Yankees have won.
In the following year the average.
Total return the FP five month and a half -- -- percent.
In contrast in the three times that the -- Phillies have won the World Series.
I think for that -- time that won the World Series that -- return appointments -- percent.
In the following year.
I've read through all you're stacked in -- well.
What did would have that's another great job to have you -- analyst at -- down how big -- -- -- the market I don't know about that's I mean I.
About that I missed I made went on the wrong career path somewhere but let me ask you this do you actually think people should be -- market bets.
They found this kinda stuff.
Well I mean this is.
Little bit of fun -- there's a lot of -- -- -- -- round for the National League the American League if you're.
Hater you -- self in the fact that the last time the Yankees won.
The following year -- average -- with 10%.
But then if you're a big got opponent of that Red Sox -- -- fact that they have the single.
-- of performance following get when you in 2000.
In seven when the market dropped 37% -- into doubt.
And -- that's actually I thought that was pretty funny because most people like they didn't vehemently against the Red Sox if you're Yankee -- -- -- the advice for civilian -- This I thought the most interesting part about your study -- was.
At fox sports obviously they want seven days immediate that the longer this thing goes the more money in their pocket -- more entry in this series so.
They would like filly to win tonight and -- clueless and indecisive -- the big numbers that's not necessarily true though if you're in the market.
Yeah unfortunately that you're the best performance is with a five game series -- yards -- about 70%.
In the following year if you go to a seven game series at the Phillies win tonight we go to a seven game tomorrow -- turn on your head is 8% -- the -- the worst performance before gains week.
When the -- turn the -- here about 7%.
So we want this thing to be over tonight 15% tonight if not we're gonna lose it's -- all -- down 8% if it goes to set.
Games -- yeah.
Glad that these stats or even compile with -- -- -- I don't think Richard you've -- great -- out there and -- mentioned that he didn't -- basketball as well.
We don't do -- and I think.
At a football season basketball season cricket season looks at all.
I PM I kinda got in the penalty box must have something to do with the way the market rigid.
But the market.
Predicted is is that influencing.
UR decision that's going to be rooting for do you have one senior rooting for regardless of history it was the Wall Street.
Well again that you've got the the best performance thought on individual -- that occurred off following the 53.
Victory of the Yankees over the Brooklyn Dodgers when the 54.
S&P fell short term was over 52%.
-- it began with a number of observations.
You know -- thought favorable for yankees when you read some Richard used to collars and it is actually true colors are green.
-- -- -- -- -- Right thanks -- thanks.
Thanks good stuff and other I think you're equating a director of credit markets and risk for S&P I see your point is a great one out there and drag this out they're gonna -- seventeen legacy of ratings to block out in long.
That seventh game all of them the chance of the -- soaking in a way a law.
We love that Yankee haters would -- for it to and is now.
Filter by section