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Welcome to foxbusiness.com.
Live as you can see I'm Chris -- and as -- -- is not Tracy -- -- Sandra Smith next to me today.
Guess what else you can see.
You see us using our policy and one on this compared keynesian idea snapple a.
I don't know I don't that's gonna go because -- intent on computers are not going to go hey you know what example and it went out on the used to say though.
Afternoon -- it actually had nothing to do with me wanting an apple even though I'm glad that I got apple.
What I asked for an apple months ago and I and other ship comes in when days that you don't want.
I think I'd like an apple it's like it's.
You bring in the big bucks like he doesn't maybe people still -- doubled -- Apple Computer.
And all of a sudden here it is so luckily we share the same studio with Shepard Smith in the afternoon we get a first in ninety -- apple.
Some of put all kinds of nasty -- things here and -- The foxbusiness.com.
Live in addition every line that's Chris -- on their investment market there outbreak now 75 points -- is outstanding.
You know we got do.
Did we -- numbers on jobs this morning no.
I had read a lot of -- I don't know what to do with that number that's 430000.
Every single week -- again.
The day it's all about the big government jobs report tomorrow.
And the US markets were acting too big gains in overseas markets Japan and China had some pretty solid economic report that overnight.
Salute the stock markets over there rallied pretty big European markets were up so.
I'll work sort of following in their footsteps but again the markets that we humans for the report tomorrow but we're gonna -- some of our.
-- about that.
We are and I'm gonna ask our Hogan about that right now global equities director Jefferies & Company joins us -- -- I do wanna get -- the job stuff I wanna get to what else happening today with cars and everything also ISM.
We have factory data earlier today.
That done the highest we've seen in six years you'll what does that tell you is that just a continuation on the fact maybe the theme that.
If there's one thing that's really starting to get cooking in this economy it is manufacturing.
That it actually actually -- don't foresee Chris with about 15% of our economy people will take it and you know we can.
We could see a recovery are jobless recovery as well as we've got pockets of strength and one of the pockets -- -- we're certainly seeing his earlier fracturing that's turned back part of it has to do with.
Rebuild of inventory we had a inventory -- down during the all of last year we're trying to get back up the sort of normalized levels.
So manufacturers cranking out pretty quickly we also heard.
Whoever this is the -- we heard.
Pre announcements and all of them positive -- about Honeywell men how while they're doing applied materials -- while they're doing and then you know clearly I think it's.
You know a pretty good precursor -- earning season which will kick off this month now.
For the first quarter that we really saw -- very few if any.
-- with a negative side at least for household lamps are I think we're pretty -- -- -- -- as well.
Right so while some of the corporate profits are that we're seeing -- you know looking pretty gig here it's all gonna be about the jobs that data that comes out tomorrow.
Of what are your expectations there and which we be looking for.
-- our estimates -- I think he's 125000.
Jobs we can sit below consensus which is coming a little bit over the last couple days.
After the ADP number -- that that was released but.
Unfortunately a lot of Basra -- -- it's gonna happen within the markets close to the good news is we'll have three days and think about the man this is what through this thing about them.
If -- if that number that has to fall within a range.
So the market has a positive reaction that ranges.
-- of college plus fifty to plus a 150 I think everything north of that.
We'll start thinking you'll hear of monetary policy here comes the feds who have you -- sooner rather than later I think that's the wrong way to look at it but that's going to be the market's knee jerk reaction.
Comes in less than an addition of 50000 jobs.
Which you know is about half of all we expect this at this particular -- I'm way to say this economy is not moving along quickly enough so got a very tight range of unacceptable numbers and now we'll see what comes tomorrow I think that you know -- -- -- with the the range of estimates on this on this -- 82 economists that benefits out -- -- -- one point five arranges minus forty to plus 400 so.
Thankfully crapshoot -- you know the consent -- -- -- a 180.
I think anything between fifty -- -- could you be perfect.
It is going to be -- -- -- speaking of rages when we've been range bound.
With crude oil here for quite awhile and it looks like it might have even broken out a little bit earlier today at 85 dollars come back a little bit but what do you make of that action.
Well two things first of -- it's it's it's great delicate and if you're breaking up actually natural gas.
Got back about four dollars as well I think that city and it's very oil breaking up for two reasons the larger of the reasons unfortunate is less important -- -- -- If the -- because of the currency relationships he -- Hero stricken -- dollar pullback -- all that happened overnight.
And then all of these commodities are dollar denominated in and in -- and energy the energy complex runs.
But the other piece of it is you know the increase in the may have a global economic recovery that's much more important.
We can live with 85 dollar oil -- being driven by -- -- -- which means the economy's picking up on a global basis.
It's very difficult to look at this as anything but inflationary and attacks are consumers.
If it's only driven by that the weaker dollar so you have to have a balance there but it's it's pretty exciting in the in the complex the commodity -- not seen.
The equity complex behind it make the same move which is also -- -- you look at stocks to -- The 2010 if you believe this energy like you want to look at energy stocks and there's a lot of everyday activity going have that space right now as well.
They -- -- 10930.
In the Dow right now we're nearing that 111000 level you hear a lot of individual investors start to -- You know should I get in now so many people feel like they waited they missed the rally for this rally doesn't seem to be ending what do you suggest it.
For individual smaller retail investors to do right now -- -- environment as we approach 111000.
-- -- -- this first called you know retail investor.
Should at least take on the fact that they're not alone there's a lot of institutional investors that missed a lot of it moved out in the -- -- the waiting for a pullback.
Way to go back to the lows of a year ago in March.
There was a lot of nonbelievers every 10% move that we have to the upside you know where where potentially 30% -- the on the rally back up.
There's a lot of nonbelievers and in in the rally and you know that too far to -- that is still out there.
I would tie if you want to look at the fundamentals in this market I think one way to do that is look at what can ESP 500 earned in 2010.
And then what's a fair market -- Multiple put on that.
And and consensus estimates for the S&P 500 for 2010 when we started the year with about 72 -- 73 dollars.
That's moved up to 78 dollars as of this morning and my guess is it's going to be closer to 82 dollars.
By the time we -- a first quarter reporting season and if you just for a historic multiple of about sixteen times -- that.
DR price target fiesta 500 you know by the end of this year that -- -- the twelve the year thirteen -- -- -- plenty of upside from here.
It's not too late but you know I think there's going to be opportunities I think they're giving you don't have to rush in and and then take your -- forward here right now.
There company in the -- -- apple told CNN that in order to -- We're not deliberately pull back figured if you -- volatility there's going to be things that they create buying opportunities for US but especially as we come into the sell in May go away time friends of Soledad -- -- -- -- demand will.
Be more sovereign debt issues so you know be patient at present there's more upside potential with marketplace you just -- -- the dive in with both feet.
It's a look enough through this upcoming earnings season and -- that sell in May go away period what do you like right now mean are there any particular either segments.
Sectors -- board stocks equities within sectors that you kind of taken a look at.
Get through things are really positive we just mentioned energy -- about the commodity based equities.
In general -- yet.
-- energy complex.
-- were big fans and it's it's on the commodity like he certainly like the the basic material names.
Like the miners and and I would like -- -- -- industrials all has it I'll play on.
The commodity plan to remember we haven't seen much of a hint of inflation and tell.
You know this week when iron ore contracts to renegotiate -- -- quarterly basis and also see a 90% of an iron or.
Steel pricing it senator you're seeing more of that I think -- that that's issuers are we have to have a hint of inflation yet but I think we look at inflation.
Which is probably available -- doesn't intend -- the back of the year.
You wanna be of those and those articles that are gonna benefit from that.
Also technology -- probably our favorite sector right now for three -- -- -- look at technology because we need more technology.
You need that new Apple Computer that you have corporate America has a -- computers and a lot of time.
We need more that technologies to stay productive at a slow growth economy.
Technology company -- them on a percentage basis have the largest amount of cash on the balance sheets and there's a ton of them and activity is going to be going on this -- -- technology in general.
The third thing we'll look at the consumer of the consumers you know that.
A year ago -- consumer stocks review you do look at me like -- Hitler's a lot of people -- against Americans over the last six months that that's been wrong.
The consumers getting more discretionary so if you look at -- this -- just.
Store numbers -- you're here -- companies like Neiman Marcus and Lulu lemon and Abercrombie -- all doing much better than expected so.
The consumers actually you know gotten out of -- -- got back out and spend that.
Hey that's it's a great point because you know the American consumers that they've they've given up on waiting and sitting on the sidelines to go by what they've needed or wanted during -- recession and again not that but.
Art Hogan global equities director Jeffrey thanks for joining us this afternoon.
-- -- expert -- who are good stuff by the way just let everybody know Ford's sales of 43%.
In the arts and have a lot more on this throughout the rest the show earlier in the day GM of 20%.
So on it up that was -- to make apples to apples comparison sometimes you're talking about.
Bad February he did a better margin.
You know -- certainly get that would jobs but wouldn't talk but that some people in the number of the year award is huge because the expectations were for sales to be up 30% though.
I was a much bigger and expect that they continue to get it done -- all the cars by the way throughout the course of the day.
Here -- on our show and of course in the Fox Business Network.
-- -- -- -- -- -- -- Think -- -- caught my -- I might recognize confirming Eric head mr.
Ronald McDonald again -- could guy ate some consumer groups now feel that he's attracting the younger people to -- fatty foods.
And corporate accountability international organization that's trying to -- it.
Ronald McDonald from the McDonald campaigning day.
He's you know bringing kids the French Fries and burgers -- say they've got to get rid of them and they're actually paralleling this in this is the same consumer group by the way.
That got rid of Joseph the camel saying that it -- that -- Cartoon character camel on the cigarette -- was actually.
Kids yet -- -- they may be successful artist we'll see -- but I don't know what do you think do you think Ronald McDonald gets kids to say hey.
I want them.
-- and -- and ideally yeah but so long in mean did the king does the same thing right.
The media that you got the big claims that that the consumer -- claimed that the -- -- the product of a well orchestrated and shrewd marketing strategy.
By America's king of fast food that.
-- the -- one of the great marketers of all time -- re darn right it was a shrewd marketing strategy of course it was saying McDonald's isn't responsible for heart disease and is now your diet then animal welfare they understand your parents -- for governor and the those McDonald's -- down your -- it's their fault McDonald's when I was thinking I probably I would I would get up when I was a kid.
I would go to McDonald's every now and then as a free and that you know I wasn't lengths of the had to do law all the time of the fight cried and -- about going to McDonald's kids that -- -- how to prevent my backhand in my father's hand you know shut up.
And so I showed up.
I think particular responsibility.
-- not done yet but it did and I think.
Nine -- -- daybreak when we come back a lot more on cars I raised my chair no don't do them.
So they don't want cars what do you do grimace when and -- grimace as they get rid the world the Ronald McDonald.
Well that we'll be right back.
We're just still trying to relax cross over here about the Ronald McDonald stories that -- time and we've got year spokesperson from the institute of energy research.
Patrick Creighton is joining us obviously some huge -- reacting to it thanks for joining us Patrick this afternoon we have me.
But of course the big story is all about the White House announcing the offshore drilling and I'm reading through these notes here and you guys are calling this a huge leap backward while most of the country saying it -- get it if anything this is a little step forward.
While -- I have to say that you know at face value what the president said yesterday to the naked I would look like a step forward but when you drill down.
You look at what don't I said that -- There -- and we -- it when you when you look at what he was advocating yesterday.
In fact that then that mid Atlantic in -- south Atlantic coastlines were already open for exploration.
He announced the study there yesterday.
The big news out of yesterday's announcement which has gone unreported with the exception the wall street journal editorial today.
Was that he locked up and canceled and delayed indefinitely five lease sales in Alaska.
Governor it's shot she and Beaufort Sea that's north of -- lastly give your viewers a little bit of perspective.
Government numbers government -- -- believe that there's upwards of 77 billion barrels of oil up there.
That's more than the proven reserves of Russia that's three times -- proven reserves of this country.
Yet this president canceled those lease sales why did -- cancel us you know this goes back the political theater.
And giving senator Lindsey Graham -- South Carolina and John Kerry political cover to push climate changing cap and trade no more no less.
-- about I guess having my question that -- this had to come out that this was happening and as you mentioned just -- -- one day later in the Wall Street Journal.
Why would the president -- these up in Alaska -- -- why is he doing this when once again it seems like the great majority or at least that the.
The majority of the people in this country want to see offshore drilling we want to see it sooner rather than later.
Well Chris you've got some Smart viewers everybody remembers the summer 2008 when gas prices were up about four bucks.
Barrel oil straight about a 150 the American people are outraged the president in the Democrat controlled congress' time reacted they tore up the -- it tore up the moratorium.
And they put a plan in place it was going to begin to at least begin leasing process.
-- those offshore yacht plans yet when this president took over.
And secretary Salazar to Interior Department took control.
They've actually done more to harm domestic production then move forward and it's not just announcement yesterday -- the 36 and a half billion dollars that's included.
And tax increases and FY 2011 budget.
So this administration's smoke and mirrors its political theater it's giving John Kerry and Lindsey Graham cover to move.
Climate change in cap and trade legislation forward in the senate.
You say is it this is a big political move in lip service but I mean the president has upset a lot.
That the left wing folks.
I -- even in not making this announcement to what kind of political and business.
-- and that's all orchestrated come on you know if the environmentalists seem upset it makes look like the president did something.
I mean there there's a lot of -- these guys the white outs are good and they've got good communicators so they've got good image makers.
-- what -- so what about pat checked that the job creation that the White House talks about with this announcement can deny that.
Offshore energy exploration will create jobs.
Yet the president's policy put forward yesterday.
Was an officer energy it was.
-- -- rhetoric is what we'll call it but offshore energy exploration has the potential -- upwards of a million jobs.
Has -- great -- -- -- dollars in annual wages huge GDP by huge economic development.
Yet this president still has not put a plan forward that that would do any of that.
In your minds is anything gonna change on this policy until as you said we're back to four dollar.
But a five dollar a gallon gasoline is that what it's gonna take to really put the pressure well because let's face it all most people I think want to see offshore drilling.
It really isn't top of mind right now with more much of America because gasoline two dollars and seventy cents two dollars and eighty cents a -- -- your records I hope it doesn't get that I'd be a shame I mean we're the only country industrialized world that does not readily produce off our coasts.
Yet we we have no problem loaning the Brazilians ten billion dollars to develop their offshore resources.
-- you -- this this offshore energy policy in this country has been a shambles for the last thirty years it's not just this president President Bush for the first seven years that he was an office.
Banned offshore drilling.
It's just the problem that's been persistent in this government and we need to get beyond that we need to look at our offshore energy resources and assets.
And not a liability because their job creators economic development drivers and and frankly I think it'll drive a lot of money and uncle Sam's coffers at a time when he needs it.
Patrick thanks a -- we appreciate you -- -- -- -- Augusta Patrick -- spokesman for the -- sued for energy research joining us at a DC giving us certainly their take on things Phil Flynn joins us right now.
From the CMA VP of course but he FG best -- -- -- how Gloria.
I've -- and I love that there -- -- -- but what is going on.
That was enough oil right now 85 dollars became awfully fun a little bit -- you know it -- the other little I would get a break down here.
Have actually -- that's what I'm holiday today thanks.
-- I I.
I can't say we won't break out -- but I don't believe we have yet.
You know I still think we're locked in that hiring in the trading range you know fact I was just trying to get the contract I -- contract.
Yeah I mean we we always have a probable we try to determine what is to contract night.
Traditionally we do what's call the roll over chart it now that shows you know hey we're in a seventeen month high the highest since that big drop that we had back in 2008.
But if you look at the wall or do you look at the may contract ran 8481.
We had a high of 8522 we haven't -- even got to the -- I think the -- behind you -- like 8546.
Right in that area so you doubt it it would really bothers me -- -- when this happens.
You know on a holiday week in Ireland in advance guys are gone home early and I like -- that I really hate when it happened on holiday thought.
You have to admit the -- -- had everything going away this weekend you know whether it's a manufacturing numbers here.
Believe it or not the lousy job numbers in these socket -- craggy -- at all plays in the mountains the Eagles get.
Korea expelled planet -- you dining -- you know I.
-- -- know since I'm not down on the floor myself and I miss it love it but my big question what's the what is the trade ahead of the odd jobs report tomorrow considering that markets will be closing guys will be at home.
You know I think that's part of the reason -- -- in a move that we've seen today I think we see in a lot of them.
Position squaring going into that ended the quarter yesterday we GAAP.
You know that kind of thing and I think a lot of people are going to be covering -- stuff I think it's going to be a very light volume right.
And I'll tell you the guys.
I think felt confident that they want to take a position in this report.
After the eighty.
How the market mood it's kind of developing since that report you -- you go back to the last jobs report everybody was all excited you know.
Because of the snow entered the million jobs you know.
And the that we get the ADP report -- everybody's like holy -- maybe not but then.
You get this great manufacturing number -- now so -- -- the moon is very very next I don't think there is a definitive.
Viewpoint I think we're taking the path of least resistance.
You know for the stock market that's positive and commodities attire.
They -- what's though viewpoint down there in the pits on now the president's announcement yesterday about offshore -- it seems to be a lot of skepticism.
About it -- even today the article of the Wall Street Journal really throwing a water on GAAP.
-- now you know I I read the Wall Street aren't -- to happen here right here I mean listen I mean.
I think their first line is is the vast you know for what they said I suppose we should -- this announcement.
But it's really have smaller -- than they claim that -- I guess any step towards.
Offshore drilling is a positive step it's positive for this administration and in a weird way I -- I think it's that kind of courageous because they really are going to.
-- alienate part of their bags now some people say.
You know it's political smokescreen or whenever but when you start talking about off the coast the West Virginia if you start talking about parts of Alaska I think.
You start opening that you weren't moving in that direction.
It's gonna you know it's going to be a -- there's going to be pressure you know as we get closer to that we start seeing the jobs that are going to be created.
When we start seeing in the revenue that's going to be created for the states you don't tell a part of the -- you use some of that money over here you know when I'm fit and it's.
-- has you know some drills right now they could turn -- and start taking care that budget problem right now.
Hey you know -- I I don't have you had a chance to wander over into the corner of the soybeans or any of the green pets.
But I don't -- at -- event that there's been any reaction to the president's announcement yesterday urging.
The military to go green -- biofuels I remember checking immediately I didn't see your reaction yesterday.
I'm just wondering if there's any talking about you know bullish -- because of that sort of announcement.
I think one thing.
Absolutely it's definitely supportive and you know I hate I -- think it's a good thing that the way to give a tax break that the pilots with about government death.
Right but you know I think yesterday he was claiming intentions report -- that's the big.
-- anything that.
And everybody was really focused on that report yesterday indicate -- -- do -- every person over the lot higher.
Than people thought the -- having some pretty that's in line with expectations that but we have a lot more whining and and -- That we thought we would have had and that probably makes traders here a little bit nervous -- You know that's the night of may be global demand isn't as long as they thought it was now you add to the fact that.
In a Brazilian -- of common online right now it's going to be a tough go for those -- but I'll tell you what.
First you know hot streak in summer theater you know as well outside of Denver was going to be -- -- there.
I don't play Internet live from -- -- Chicago Board of Trade trading flyer PM.
Thanks guys that you -- -- I heard something caught your eye.
I did catch my nine it's actually been going on all week and is very depressing I don't know if you remember.
Reg Dunlop he was the protagonist if you will in the movie slap shot 1977.
-- by Paul Newman the late Paul Newman.
On the hockey scene.
That essentially that the cease the Johnstown she's -- hockey team in that movie they became a real hockey team.
In Johnstown Pennsylvania.
And they're gonna actually had to move south now than ever that was actually part of the theme of the movie reg -- actually invented this scenario where the -- we're gonna move down south he's trying to get a team to play well.
On the action moving to South Carolina that air hockey -- South Carolina is -- fine state bigger hockey -- -- in hockey he's going to South Carolina.
It's a travesty -- so that's that's troubling that -- just.
You know bull that was what was troubling you most learn about Ronald McDonald a couple of Ronald McDonald -- -- and haven't skating around for the Johnstown chiefs.
-- -- -- at but clearly not enough people are paying to see them.
They're moving down -- announcing that -- I'll watch it seemed it was the the jets before -- they actually folded in 77 the -- the movie came out that in 1988.
They came up with a new idea the Johnstown chiefs to mimic.
That scene that or you know the movie was based at and it's W of that movie you're missing slap shot I have and I contacted trying to have her I would likely to see it I think after all the movie is based very loosely -- a lot of different scenarios through scenarios within the hockey world for example -- will put the number one -- who played for Syracuse and a movie.
Was based on gold eagle -- look who is a true goon.
I believe had 25 fighting majors before Christmas in his rookie -- I've really started becoming a bigger hockey fan and all I grew up in our family pictures on the Blackhawks of course.
Got a bit -- I've gotten a couple ranger games over the past season.
And have a nephew playing hockey now and going to see a little kids play hockey is awesome his ten.
And they just barely can get around like defeat move look like a tiny little bit -- -- not competitive target that it bomb -- -- -- anyway to real quick on this to wrap it up and come up with a business spin on it you can't whereas the and yeah Nelson that this up what this is all about business I'm.
Small business moving leaving town I hit it in it in a part of this country has been very -- wasn't.
Doesn't bring into the small time all just it's operate in revenue for the -- -- the -- revenue for the owners Neil Smit it was a G into the raiders and they won the cup in 94 is -- majority owner.
The only way you make money on things like this Sandra is if you you you love the team in the you know you make money the only way you you actually enjoy it as an -- if you love the team and you want to do it for -- -- -- services.
-- professional sports franchises is a money losing business it just isn't good with the exception of very few handful of franchises out there you lose money.
Neil Smith was losing money so now is that a move the team to.
Greeneville South Carolina.
I think the rest of the show off that we at daybreak we come back -- thought well let's move in the market -- markets of 67 points I'm happy and book -- that film conference Smith we are up 67 points 68 on the day just keeps going higher and higher.
And -- -- tell you what is moving this market went so that's down from where we started the -- but that's a -- then don't don't be kill joy.
I'd say -- micron tech is up 6% on the day they announce earnings last night beating the street they got an analyst upgrade the big thing with these.
Tech companies like -- semiconductor companies microchip companies.
Humble margins in their -- up 10% sequentially so the market obviously -- that up 6%.
-- Borders Group.
They know they're up huge on the day big thing is they were able to actually had a fourth quarter prop up the 45%.
The -- -- -- in Italy to own cities and -- so.
A 45 for -- paying down debt there would pay out you know they got these private loans pan out.
That you put together a new credit facility -- same store sales down 14%.
Off from the borders -- -- also Walden books or somebody and a half percent still though they had a profit -- like that and -- are getting out of the really high priced debt up 50%.
There -- only a 69 and our market.
Hundreds -- -- -- and -- market -- -- and where are you -- I don't fear honeymoon.
Now I went last year well of course Ryan -- and the Ryan.
Irish airline in it's doing very well 7% on the day they're -- strong demand.
And able to charge higher fares.
For -- Easter holiday I guess it makes sense Irish Catholic I guess they travel a lot by air.
Over the Easter holidays -- so profit for the year ending.
March 31 by the way they say it's going to be around 418 million dollars.
That's a big leap right there.
The -- airline index entirely up about 2% on the day.
-- down five and a half percent on the day they're coming out with the Eagles strong jump -- earnings.
The number of shipments -- so the thought process and runs in the price per unit now maybe maybe they aren't -- -- -- maybe people are buying not just because obviously the apple thing isn't gonna take effect with Verizon and sprint until later on this given me people what they can.
Com they're buying more of the Motorola phones the Google phones whenever any other phone but other than the Blackberry you know.
Still true still true rim not a lot of people -- -- down five and a half percent and the Tracy -- special and it literally is a Tracy bird special -- -- she's she suggested I do it today.
SPU sky people fruit -- -- -- Chinese fruit juice company you know what.
They are kicking it and make it five point 8% up on the day they -- hit -- and it's not received by the way.
On the -- -- people love in China and all around the world to use it they not diffuse a concentrated he -- Jews -- -- that.
As to use a big player in that -- in there.
Birdies were -- 58 cents hurt.
Now when they had 32 cents last year revenues also 6% black that's experts say here today at fifty facts -- -- All right I think you've got to move on we're gonna that Peter Barnes now he is in Washington DC for us good afternoon Peter.
Sandra -- the rich pay for at all.
No back to you and I thank you for -- -- but the richer are gonna have to -- loyalty stale on the same path we're on right now -- way.
The -- and the Tax Policy -- did an academic exercise looking at what if congress or Washington did not cut any spending going forward.
And -- Middle class -- is the same did not raise taxes on the middle class which is one of president Obama's key campaign promises okay.
Do the rich would they be able to like you know.
Fork over enough money in taxes here to cut the deficit altogether.
Well this exercise is.
That didn't putt birdie that doesn't offer much hope -- -- those of those rich folks those or make over 200000 dollars a year.
Because the center figured out that for example.
If policy makers wanted to cut the deficit over the next ten years to 2% of GDP now remember -- about ten over 10% now but get down to 2%.
And they still allow the bush tax cuts to expire.
That dates they happen -- congress would have to raise the top marginal tax rate.
If it if you.
-- -- that's a little 91%.
Yet to help raise about 800 billion dollars to get a just that doesn't buy that that does not balance the budget.
That's just -- that that it -- The only time Obama didn't know the discouraging people to earn that extra dollar it's sort of like Yemeni pay 91 cents on that dollar I don't think I'm gonna do it.
On the top marginal rate that would be you know not be up that would be up there you know over 350000.
Still those are entrepreneurs.
Investors venture capitalists of those kind of people.
Who helped to start new companies new due to invest in new technology Biotech and things like that.
And and so.
Clearly could have some impact but you also have behavioral changes you know I think it will when we saw these kind of marginal tax rates back -- -- in the fifties and sixties.
You saw lots of tax evasion laugh at some loopholes -- them you know things that people that and so so the reality is is that.
The point of the exercise as.
This ain't gonna happen and so congress has to get serious about entitlements.
And it has to get serious about.
Tax increases and it's got and they're gonna hit everybody maybe a value added tax like they have in Europe.
We don't have the higher taxes will be affected in a -- -- -- amount of money that would be needed.
At the same time make it likely discourage folks I'm working hard.
A win win.
This is that this is the toughest policy question facing Washington going forward particularly.
Because you know the president's budget proposes.
Trillion dollar deficits as far as the guys I can see him and eventually as we -- and eventually as we've -- with Japan in Greece.
That's stuff catches up scaring Peter thanks thanks theater guys get a Barnes in DC it's very interesting -- ninety cents a disturbing.
Developments that sure it.
I think we had supper break we are and Jeff Flock is gonna join us on the -- -- -- go to the auto show once again it's all all cars this week.
And we're all gonna continue to talk about these manufactures given as their numbers very positive for the month of -- -- -- head of the New York got a shot at a site with the -- Welcome back foxbusiness.com.
Senator Smith and Chris -- etc.
getting some more numbers and right.
Yes definitely -- shut the march US sales up 9% to 19105 units but Chrysler numbers here this is going to be big.
Were hearing Chrysler its sales for the month of march were up 10% on the month the month Beijing but on a year over year basis down.
8% and Chris that's little worse than what the -- Our -- and yet it continues you know you get into the faith in Sergio much you know any continue to be tested and he's in his time is running out although he still has time.
To get this thing going out from what I thought -- -- -- Doesn't get to that three dollar and fifty cent 3.5 350 a gallon gas by this summer that may start to pay dividends for them because they got that small car that -- more fuel efficient.
I entered India ahead of that cheap this morning was very optimistic about the numbers out -- -- a little bit of a surprise that.
Let's get to the New York auto show didn't -- joining us -- up.
Hey guys -- -- Great day for auto numbers because yeah we can talk to pretty much all the auto makers about it at this hour I've got the head of the show.
Our Sean -- who's ahead of the greater New York automobile dealers association this is a great show.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- From nineteen different manufacturers so.
Things are really looking -- Yeah we've we've done a lot of the introductions many over here we were just talking about that.
I think those guys are just talking about Porsche and Chrysler sales obviously a Chrysler still.
Still tough on.
Priceless so little bit slow behind -- -- she -- Is supposedly coming out in the next a couple of months that should help them a -- product new products that's gonna happen so we're seeing good things from crisis coming about.
Having -- here is a great opportunity talk about the show itself.
And -- we walk well where should we want about them as well let's remember them this way in a while.
This show you put together in six days the Detroit show takes six weeks.
-- is a strong word but there.
Not only auto makers but the guys that -- TV networks that cover it.
It's a tough situation in -- the only show they have their worst -- Javits Center is a lot of shows -- javits and is probably the most successful convention center in the country and it is so we have twelve million tons of freight that are coming in.
With two million two tons just in lighting alone.
Put together in 67 days it's incredible what they can do and you do that for less money that cost them in Detroit.
I don't know quite how that is possible but well we sat down with -- and the personnel many years ago to talk about work rules we can actually put on.
Three steps on each day.
So -- going on single time instead of having to -- double time.
And again that do with the kinds of carpenters in the teams is that are here.
Really do a fabulous job they'd love the show that love the auto show because it's so exciting of -- -- may have some trouble with sales but.
Natalia they they get a lot of people looking at their exhibits here and as perhaps you can see if we spin around here maybe Bob takes a look these are the twins.
Maybe you -- Twin FiOS they show a white one and a gray won there that'll be coming soon for Fiat.
And how about keep keeps coming around may be speaking -- twins there you go.
Twin FiOS I don't think it actually comes with -- -- the -- the other two women that are out there that's a different you know not an option they offer right -- women where I'm sorry I was looking at the cars -- But this is -- to -- the Fiat five hundreds that were excited to see coming to the states this is really gonna change Chrysler around tremendously.
Your wife is watching Bob.
I don't always treats you know Jeff I was actually on the phone trying to find a Chrysler dealership to -- -- -- -- get that Fiat.
With the twins but then you just tell you it's rained on my parade -- -- -- that was not included but you know.
There's always tomorrow maybe -- thought including and a marketing package.
-- -- -- -- -- Did you have Marchionne may have big plans for its failure -- we could get you one of them is gonna have to pull a rabbit out of the hat and that may be a part of it thanks that -- -- that -- They you know that he just did dividend shot you know why -- that what -- -- -- cars now.
You know what I mean.
We're gonna find out right now we're.
In the Jayne O'Donnell she's up from the USA today talking about cars and -- OK so you don't get.
Twins with a year Fiat that that that is -- it isn't here yet but get incentives continue to drive sales in this country don't think.
Yes they certainly do and they're largely responsible for all the big games you're seeing this month led by Toyota of course.
But look that said.
Incentives hit at the bottom line of these thugs cart companies.
How how much is just taken a big -- get an he's a sustainable -- at the police back let's let the government is gonna -- at some point time.
You know close off the spigot.
Sure they they certainly will have to pull them back Toyota certainly needed them it as I believe you mention -- Toyota.
You know took a big hit last last month I think I don't think there's any more than in the United States is not aware of what Toyota's been going through lately.
So I mean they really needed to do something their sales were down 9% last month and they and they are expected to be up about 40% this month so.
And -- certainly worked for them and the other car companies needed to follow the stay competitive.
They know again there's been a lot of concern about whether or not -- can keep its ads that we just got the numbers a few moments ago and -- shells were up more than 40% the expectation was below that.
So hey maybe they're not losing their -- may -- in fact this is a major turnaround.
-- -- -- is certainly doing very well General Motors I was amazed to see I think Buick was up seventy something percent last month.
-- in March so.
It's it really is amazing to watch it's it's a fascinating time to be you be watching that the US auto industry and that the domestic -- therefore in this the foreign makers are doing really well to gladly Hyundai had their best month ever.
So things are really turning around it just it up upside down from month to month and obviously but -- had the luxury car market other sports car market that's not.
You know out of -- right now even though we're still -- -- economy Porsche sales up 9% so it seems like the higher end buyer is coming back as well.
Yes certainly -- -- that was very interesting I -- that -- it kind of goes a lot with you're seeing in regular retail the luxury stores are doing better.
-- -- -- -- certainly be a lot of pent up demand out there and people are.
You know they they were they were kind of burly man in February because of the weather and perhaps over the economic concerns -- people and at all -- income levels are really starting to spend again.
Do we see a step back because of that you think next month and maybe the following month because there is there was so much pent up demand.
It really made martz look like -- great month.
There might be that I guess a lot of that'll be decided by you know -- suggest how how much they pull back on the incentives and -- -- there's certainly gonna have to keep doing it for a couple of more months but they.
They certainly could maintain a lot of this momentum if they stick with them so are the worst of Toyota's brake problems behind them -- is gonna continue to be a story.
And I think if I guess they're brake problems are accelerating problems.
I think it's good -- and in the media has backed off a bit and in some of the fact that some of these incidents.
Have now appear to be that the driver rather than the car.
Has helped the company but it's going to be several of many many months and that it could be fifteen months according to the government before one study that.
That's -- work done that before the national academy of science study gets finished and NASA is working with the National Highway Traffic Safety Administration.
But that's gonna take till the end of the summer so it's it's not gonna go away any time soon but clearly consumers have decided that.
That a good deal is more important than any concerns about accelerating vehicles.
Jane and Sergio Marchionne showed up a couple days ago here at the New York auto show he said that -- going to be profitable by year end.
In you know -- from I don't know how they can do it needs to do you see that in your crystal ball can they do it -- us that between now.
And the next nine months -- have -- they get there.
They'd certainly I wouldn't want to make any predictions but they've certainly made some really great models to get a lot of attention.
In -- a model or two to really bring people into the show room perhaps perhaps some of these -- -- -- talking about.
Could could do the trick.
It's a real uphill battle they're really lagging behind all of the other automakers right now hey you know Jane I just found those numbers for you Chevrolet sales were up 41%.
In March right Buick sales up seven 66%.
-- -- -- sales were up 45%.
What do we make of these numbers.
Hey you know my colleagues have teased because I always used to like the right of the Buick but it was -- -- -- cool for anybody under a certain age but.
But it's really come around and it is the Lexus like -- -- if you know for anybody that still concerned about.
To whatever the problems art Toyota which are still you know not really determined beyond whether there's anything beyond the mechanical problems you and offers a great alternative and -- They've they've General Motors is they've taken advantage of that -- a -- advertisements and and and pointed a finger at -- I think it's been successful out of it you still have that stigma attached to would you.
Want to have a -- I think Tiger Woods help you local but now earlier and I think John pulling tiger out of it you know sort of now and they got to get but it got it.
Didn't recapture that younger marketing.
-- -- -- yet definitely and I actually I just did a book -- I recently and I think a lot of the younger buyers are really gonna start to embrace some of these domestic brands have.
They don't remember some of that some of them bad -- of the 1980s and and maybe they're going to be even more and more affected by some of the bad press that that.
That -- has been getting.
You -- speak at a younger drivers Jane I think.
By and large they are they do tend to be more environmentally conscious and things like that and -- our parents are are certainly have been -- -- do you see them buying.
The Nissan leaf for example -- sticker price comes in at 25000.
And they -- -- -- goes up from there but you got the volt.
Just on the horizon as well -- -- you see these initial models in these electric vehicles really being popular with the younger set with anybody for that matter.
I've certainly -- it's gonna be it's still going to be a tough sell but these they are the early adopters they like the challenge they're not they're they're more they're not -- risk averse as their parents are.
And they also see them as kind of you know badges of honor and -- name they give them -- the essence of the steam in the environmental community so I definitely think that young people.
The ones that can afford it at least you know maybe that took that the late twenties will be embracing these cars more quickly than older consumers I'm looking at.
Sales Hyundai sales hue -- cells were also up.
I think they -- bottom line is you know sales in general are picking up here especially in the month of march.
Incentives as you guys talked about playing a key but -- not a lot of this just a lot of folks just -- Buying a new car on hold for such a long time that they've been pent up and they're now getting out there.
Yet they really didn't know colleague and client and I did a story -- that last year and it.
At a certain point you have to buy a new -- -- -- just like you have to buy a new washing machine.
So there's certainly the people that have to do it and that just the people that we're waiting in saving.
And just you know can't do it don't want to wait any longer so there's that have to -- high and -- really just want to -- now because they're frustrated and sick of being inside -- Good solid -- Thank you can.
Start my pleasure.
Jayne O'Donnell USA today on everything going on with the cars.
-- and you had the numbers look like they're pretty good.
I've still looking at them one day but I wonder if they can just keep this up Hyundai sales up 15%.
They continue to rock and roll that is for sure and GM numbers are good and -- numbers are even better ridiculous for -- I -- take a break -- come back.
With about a new concept.
In ball ours hot flat and Shibani that the two are interrelated to money's worth -- -- at the NASDAQ.
Details -- it.
Welcome back everybody fifteen minutes past the noon hour eastern time I think we're gonna go get a check on what's moving over at the NASDAQ was Shibani Joshi had a big story that you're on today Shibani the iPad and the battery what about it yet the -- looking pretty guidance.
According to the reviewers who -- -- -- -- you.
Actually testing tests can't test drive if you will be iPad.
The iPad battery is -- it's quite long ten to twelve hours is what -- people like Walt Mossberg are out there.
Are staying insistently some certain positive let me give you some of the other admitted -- -- this -- this thing -- proof Bloomberg I -- a laptop killer.
And sensual I don't really get the global balance.
You know these ten guys think it's actually -- in glossy and -- -- and I.
I didn't get that -- and actually wasn't a -- until you mentioned that particular.
I've gotten some money -- -- it's a bit earlier in the day that really.
He's an active blogs out there that are reporting that apple boxes are showing up on people's doorsteps so -- -- so maybe they get.
They're actually spot is out there with binoculars.
Looking on people's doorsteps to see it.
-- apple boxes I don't.
I think they're pretty keep people out there that are getting boxes left on their doorstep with a 40800.
Just sitting on their doorstep ready for anybody -- deal with the Big Apple logo that's why got some attention people are kind of -- yet.
They paid for expedited shipping that probably happy that they're getting there I had earlier than everybody else but -- still believe it on the doorstep.
It's kind of a risky thing if you're -- It doctor than that this secret is to stay home and wait -- the during the week for that -- to show up.
On the just real quickly before we go read in today's struggling a little bit I read it -- is this feet.
Beginning all the migration away from the Blackberry do you think to the Smartphones because we have Google we have.
The Motorola Smartphones it seems like all the carriers now have been carrying Smartphone for a good six -- nine months.
Well you know I think it depends on the evolution of what happens -- Research in Motion in the Blackberry evening.
We all get blackberries issued network because that's been emailing device -- really nothing that surpasses it it you know hard.
He email on it the on -- Droid Motorola Droid it's still pretty -- -- email on the iPhone so.
What -- what most people out there are saying in every single in fact downgraded the company today is does that -- gaining eat only device only takes you still far.
The next phase in the next evolution -- that Blackberry needs to make is developing applications if it can be a multimedia.
Sort of personal device combined with an email device then.
It really has a good chance of standing it's holding ground against idea iPhone and those other devices so.
I mean it hasn't App Store I just how much damage people are using me and you have the -- -- loaded on your Blackberry.
-- -- -- move you don't think -- is Blackberry is sort of like -- You know it's work related and when -- -- -- -- work -- one -- anything -- work related to be separate from my personal life you know I consolidated as the new app for the iPhone.
That continue to lions -- you'll work wine.
And and a personal line is well they can direct all your work related calls if you know the numbers that they're coming from into a certain you know an inbox and things like that so I think a lot of can assure that -- You so much sexier -- -- -- yeah I pat this is work not just put this away when until the end you know.
Well and have figured I don't know what people have a work phone and a personal phone -- -- phone they should black -- And then personal phone being iphones Iowa and classes -- and.
-- -- -- -- that I had the old -- Blackberry with the wheel doesn't have the track ball hasn't been.
Yeah well you know what the and that's -- -- ten inches lie ahead.
But apparently it's it weighs as much as a Brit -- -- one or one department where it's from right when done that I -- see what happens is that put it -- there is you see it bluntly do you see this when I had an all my adults really believe he's honest.
Well not great and he's not what happened should the only -- I think but -- -- -- on one hand.
And don't have.
The day and then the other day put on the other half that -- -- get you know the book six back going you know since getting healthy and anybody else on the -- that your frugal.
Shifts its work all right pregnancy -- not my -- get that Blackberry after belt.
Worries that puts the Blackberry on their belt you have to thank you -- -- and I guess the Iowa I'm -- -- you're on her handbag on with my blood are hearing.
I thought about yes -- about a -- because that's prominent go after the show and needs to.
-- Monsanto is here co owner of exchange bar and grill is not your ordinary bar and grill you guys set prices based on demand explain this to.
-- Photos via ticket and but life is changing days on demand like.
If the demand -- -- -- -- -- their prices going now.
They -- the -- at the -- know that that.
A whole lot of sense because so singer burgers ten box.
And getting a whole lot of customers to demand down on the demands on you push the price of the twenty bucks -- alluding to our customers.
Nods that -- the demands.
-- that moment of the boat goes down the prices down and gold on and the media matters.
OK so the typical supply and demand when demand top dollar that -- -- ya got it up and going down yet.
So in other words Bud -- it's like the most expensive drink on your menu because everybody goes in and -- of -- life you have and the what would you beyond the typical -- mean what do people not recall that often mean you.
Usually you'd like on -- night after the has the stuff I actually had this column in the import vehicles Lou right now I think some of the moment you're you're well aside again right on me tonight -- thought today.
And whether they think the Bob Knight and the pleasure I've been going and I -- think -- like a fairly good income -- And don't I -- -- hate your finger at -- pay eight bucks for about life in two dollars -- so there are calculated loved it doesn't going up the bodies -- five cents is -- -- them -- like -- -- to -- -- -- did that it has yet -- -- the fact that tiger did you have people coming in from Davenport Iowa and they would say yeah let's get a -- spotlight.
Yeah bulldogs actually about New York is calling -- a stock exchange themed lounge or is that just doing enough -- it yes that's where it.
It's not -- yeah.
But not really because it's not that I'm not that really -- and I cannot say Baghdad live.
But -- like we have to could take as you know defeat them through the long.
Like how pathetic like this in the -- shock give a ticker tape an enterprise yes yes yes and they changed data -- and they -- He had ticker symbols for your got you yes yes that you must have IT experts like our floor manager Josh.
Going in the year a deficit facetiously buckle -- contact your bar.
Because -- real time -- doesn't get the as soon as your waitress or waiter puts it and go to the theater yes men and has an algorithm -- -- -- almost a surcharge for yes.
-- Israel and the prices and glove on the -- I mean it doesn't mean that's that's gonna go up you don't want to expand through another round of either way is let's -- the above -- mob like I told.
Going out lumping the other side -- what is going -- -- the people can -- as to opposed.
The bank building to.
People hearing a friend I'm thinking that this is a lot more work than -- to work and it definitely do you think this is really in a -- been -- yes.
-- had been so far how long have you been doing.
And in these outside -- far tonight's.
And then look -- idea any thought -- -- around you then there's nothing could go low income is up in -- itself -- And I know we've got to go but as a setup per item basis as you can come very serious per item not end and we knew we had two -- customers -- -- the price of everything.
Not everything is not -- goes up because of not -- them again I give them people of -- that they you know they can substitute is.
And it everything -- not come off they'll -- have alternative to.
Person seat that being the sole I would go in there and I would do with -- with my boys and like beer beer later maybe eight floodlights and Duval or something like that which is what I would want because then the price of mind that I found on there's go up I got to -- -- to -- -- it's an interesting concept and obviously we see more -- small business owners.
Do this kind of thing just to get people through their -- card -- it's.
Yes we will continue today right today yes and you're in Gramercy -- anticipated where we're at -- -- still 56 the total revenue if I was this that kind of laugh and I think the I'm very swanky look at is gonna be opening at 8 o'clock and it's exchange bar and -- dot com if you wanna check out the website if you come into New York check it -- pay a visit.
On to the folks down in -- great idea cannot get out of the president especially his only goes up and 25 -- -- even I can afford that yes that's good Blackberry all rights.
You got to get -- -- player for the press club in.
Thank you vagina and.
I -- showed -- -- I don't think we'll see -- --
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