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On the foxbusiness.com live I'm Tracy -- Chris cutter 12 o'clock on the East Coast -- on the west good morning to all of you joining us markets down about 22 points.
Hasn't really moved to a lack -- a lot since we started today we -- down like fifty something at one point.
Really felt we got -- new home sales numbers the new home sales numbers came out December down more than seven point six ransom point 6% -- what the market down.
We're back up when holding pattern now mean because we're like all that hearings today.
Yeah now no one likes that I mean there is nothing nothing good will from a market perspective can come come out of anything that happens in Washington -- honestly.
Now it's Tim Geithner.
And even Ben Bernanke if you think he should be back in the markets probably short term would liken that we think that's gonna happen tomorrow that's already -- -- yet the president in his address tonight.
It really honestly what good is going to come out of that from a market perspective I don't -- anything and that's why -- we've seen late in the day.
All over the last 45 sessions able to sell off late today they don't -- -- be long overnight forget about long Leo over the weekend.
Exact appropriate time and your point is good when I'm in the you know today with Geithner the whole notion is are we gonna get the smoking on are we gonna figure out what happened with AIG.
Which we won't but you know he's been being grilled about his connection to Goldman Sachs and was it all behind the scenes why did they negotiated deal with Goldman Sachs that was 100% on the dollar as opposed to maybe.
You know they said Bear Stearns got what pennies on the dollar in -- deal why did Goldman -- such a good deal in this.
Com it's it's gonna join us from Washington in a little bit this sort of summarize what has been said so far this started -- about two hours ago right around 10 o'clock.
He's hearing so it's ongoing also -- caterpillar giving us earnings.
You know you TSE caterpillar give earnings coupled industrials -- you -- exactly they're pretty good job caterpillar.
You know it looks -- -- probably went -- the worst.
A year of their entire lives to -- we -- you talk about.
-- construction heavy construction and mining equipment is that in in a global economy that was basically nonexistent.
To survive that they had some pretty good things to say about 2010 yet the market sells off on it with caterpillar being a part of the Dow.
Not helping things so not much to help even even apple coming up and we know when -- go to Shibani and his second but talking about apple.
That has been so talked about over the last week any you know build up has already happened yet and -- -- -- that's not even happening on an -- help.
And on the -- none happens I mean actually cat was when in my movers not lack of a lot helping move this market up at all.
And she Bonnie of course we talk more about how this Apple Stock is flat right -- -- body out there -- know -- cold.
We're waiting to hear about the -- the tablet announcement later what's the buzz out there what do you hearing how Steve Jobs and just charge.
Waiting to get in fact I'm actually gonna take a step -- -- it means you can actually see.
The crowd that is growing here where about an hour away from the event starting -- Steve Jobs.
Is expected to take this stay dry at 1 PM eastern time -- and instead they can you can see -- about a hundred journalists.
Media analysts and observers that are here -- the buzz is what is this company going to -- It is very much believe we're gonna see a tablet but what is it it'll look like what is he gonna feel like how much does it cost all the sordid tales is really what matters because the DT -- devil is in the this stock as you mentioned kind of flat you know the company reported.
Record quarterly profit record quarterly revenues on Monday and nice work not certainly indeed but what's really gonna matter is.
What this product looks like who who we think is -- -- -- based upon a price in the deet -- and of course.
Steve Jobs looks like because that's another thing that we're of course care about investors care about is well is he's ongoing leadership and nagged his role at the company.
-- I think you should Bonnie we appreciated that we're looking forward to it in about an hour's time the unveiling bank's money.
Thanks guys say -- -- Shibani Joshi out didn't you're the winning California you know what that means you're a boy and a good grass.
Love that name I thought dot birds and right now in Scottsdale Arizona VP -- senior financial advisor at wealth trust Arizona -- welcome to the show.
I think you Chris good morning Tracy thank you both for having me on it out.
I'm glad we have a lot more energy than this market right now we just can't seem to get any any legs right to be nothing seems to help us some of the earnings are pretty good.
Mixed bag of economic reports yet at the same time nothing seems to be able to move this market higher.
Right now you agree.
-- I absolutely agree I was just listening to your comments a moment ago.
You're right in the your comments about caterpillar apple.
Your earnings as -- is a loose dust into my notes on the earnings generally been pretty decent -- I think.
Earnings have basically beaten most analysts' expectations.
But nevertheless we still got a lot of -- a lot of fundamental issues with god.
Very high unemployment stolen -- likely to stay very high for an extended period of time so in that environment -- I think.
It's hard to see the market going a lot higher and it's certainly hard to see -- having strong GDP growth.
So where do we stand then we have a an investor or trader whoever's out there now that's very worried because they're so many unknowns I thought -- were unknowns before -- are more even though we know Ben Bernanke will probably be.
We still don't know what's gonna happen with banking regulation bank fees health care is -- still on the table cap and trade who -- -- the president's gonna say the state of the union so where do we go from here.
Only you know that's that's a question the world asking ourselves a wealth custom every day.
You know we we do feel that the recovery will continue although at a at an anemic level.
How we're still very heavily weighted in bonds we think that municipal bonds particularly are going to continue to do well win.
Build America bonds continuing to be a greater.
Proportion of the new issuance in the municipal bond world.
With rates unlikely to go higher anytime soon.
At least probably until the second half we think that bonds in general -- going to hold up pretty well.
-- -- -- -- Yeah I think -- we think that socks shoes.
May have a way is still bit of more ways to go but.
People should be cautious -- in I would say to anyone that has new money your award sitting in cash I had to be very very careful putting additional wanted to work in the stock market.
Now to judge are you concerned at all about the fact that the government could potentially lose control of interest rates at this point I mean.
You're investing in bonds you taking a little bit of an interest rate risk we don't know where rates are going at this point or how they're gonna manage them.
Well that's true I mean that's true certainly -- -- got nowhere to go but up.
We are we do we invest in in funds that have a very low duration so.
Relatively speaking have have -- we -- less less risky as answer rates go up.
But but he absolutely right but there's no indication I don't think anyone on the street is saying that rates are going to go up meaningfully in in the near term.
-- looked -- the -- is really caught.
I'm sorry go ahead.
I was just going to say the Fed is kind of caught between a rock and a hard place and they don't they really can't raise rates meaningfully.
In the face of a high unemployment be.
Housing market that that's still very weak and I don't see that happening -- I'm not trying to make a prediction on when that is going to happen but I don't see it happening.
At least in the immediate future.
I think that's part of what's keep making people so nervous they have no idea nobody nobody can make a prediction.
As the -- that's gonna happen what scares you -- -- -- wants right now are you looking and saying boy if this happens.
We've not -- sovereign default yeah -- The sovereign default sovereign default I mean it's it's certainly it's been talked about a lot in the news.
About you know the problems in Greece and maybe to a lesser extent stay in the Japan and Italy perhaps.
Japan Japan absolutely.
Bill Gross on his -- most recent commentary had a very interesting chart.
Where he had this ring of fire and in in the string of fiery -- you know them.
Western developed countries and then in in Japan was kind of far out on the right access and you almost approaching to Britain 200%.
Of of jet though of -- excuse me as a proportion to GDP.
So yes sovereign to -- absolutely scares us and that's something we're thinking about a lot.
Seven -- -- seems to scare of fair amount of the world because it's a big topic out at the Davos conference as well so.
With that now we have this big unknown is we have a global concern it's not just concerns here at home.
We have global concerns how are you positioning then -- clients' portfolios aside from fixed income are you in -- at all.
We are inequities and we certainly are we we have in a moderate portfolio -- about 30% and equities so that's between domestic and international.
-- in about 30% in alternatives and I know that that's sort of a nebulous word but that's as a as they've sent to you folks.
Non -- a private non traded reits.
Many futures -- in any of the component would be.
Absolute return strategies.
So we're trying to provide an asset classes that have relatively low correlation -- the broad indices.
-- we appreciate it thanks for joining us today we'll check back with the down the road.
Thanks for having me thank you thank downward trend VP NC financial advisor well trust.
Out in Arizona.
And you kind of you don't recognizes that stocks in general -- going to be very bumpy maybe you shying away from that little bit.
You know in terms of his investments or not.
I've got to tell you leasing your everyday we talk to these people I am confused.
I don't I would not know where to go well thankfully I had no money so it's not an if I was spending the last two hours listening to what's going -- -- -- I would probably be confused as well luckily you and I've been really busy working.
As has been said -- joins us right now to.
Summarize it all floors so we don't have to go back and read the transcript rich com or what has happened in the first two hours and I know that the ultimate goal I guess is for congress to find -- smoking gun having gotten any closer to that with regard to guide.
Pages of documents subpoenaed -- Democrat's -- say they've not found a smoking gun that would link Treasury Secretary Tim Geithner.
Telling AIG and not to tell anybody else about the counterparty payments.
That they were going to give got a hundred cents on the dollar for those CDO contracts that they had banks on Wall Street tens of billions of dollars in those payments.
I'm withholding that information to shareholders of the American public.
So the Treasury Secretary round and round we go this is continuing to be this.
-- that -- in on Capitol Hill where you've got folks in an election year you're looking at Wall Street it's recovered to some extent.
You've got companies like AIG that are still stuffed with tens of billions of taxpayer dollars.
And they want to understand -- wanna know why we're still on the hook for that and -- -- unemployment remains at about 10% we continue to lose jobs every month so congress is hitting hard.
On the basic and overall theme of okay what's up with all this money to Wall Street how -- it's not trickle down -- main -- You've got that you've got Treasury Secretary Hank Paulson the former Treasury Secretary he's testifying next.
In his opening remarks he'll -- he also had no knowledge like to Treasury Secretary right now Tim Geithner who will.
Was then the president of the New York -- -- revolving characters can make this somewhat confusing at some point but.
-- they also have a letter from the Fed Chairman Ben Bernanke who with a time.
Also says that he had no balance of the Big Three say they had no knowledge that government officials were telling AIG to withhold information.
About paying got a hundred cents of the dollar.
And that's who we -- Right now rich you're awesome thank you so much -- that -- and -- in DC filing this drama it's -- It's good company -- -- -- -- -- thank you but I let -- -- and -- it.
Kind of some of the lines I was watching the testimony before it became we started here representative John Mika said why shouldn't we ask for your resignation I mean just harsh stuff.
Representative Burton said it stretches.
Credibility for us to believe that you had no role on this and you didn't know anything about it when you're attorneys and the people you work where we're sending emails around -- place that people just shooting daggers at this guy and Geithner is used.
Bank there and you know we were talking about it on -- company nearly today about -- A lot of it is legal speak on his part and I don't blame them meaning they want to hang on what angry guy is gonna say whatever you can't get out of there alive and letting I don't believe he's been preparing for the little left to right and he's had it helped.
To help the parent -- know that about everything that is jobs who is certainly in jeopardy not -- her mom think nothing from this.
But -- certainly if you were talking about next fall and we've got to be a change in control congress maybe.
Then certainly ought to look at the economy if we're still in Russia particularly with jobs and a lot of people think we will will be close to 10% unemployment still.
You've got to think that somebody look at and say OK it's finally time for change.
Or he's gonna say no lastly he might in -- of them at stake -- a little about -- gay angle postal all of them I think they're just not the united -- -- quick break with the let's talk about card in this whole situation with Toyota today we gotta talk about later more often Shibani -- out of the address California.
That's -- America and so a lot -- so don't go and.
-- back to Fox Business -- like Casey thanks Chris cutter were about quarter after twelve here on the East Coast 915 on the west good morning to all of you about this -- -- data that point one points.
Someone asked where the good karma was -- It's come in no time back to -- -- patient with a syndication -- -- -- pull up on the website Israel now what should be president Obama's main focus during his first state of the union speech that of course taking place tonight.
Wall Street has been nervous we've seen it in the last couple of hours of trading last couple days selling off.
We have we managed to stay in positive territory on Monday yesterday no such luck we actually got into the red we've been in the red pretty much all day today it's that.
Last two hours three hours where the wind is a very.
I've been nobody wants to be long overnight a lot and why would you want to be long tonight -- -- hasn't been wrong I mean Long Island good for ease -- -- weeks now I -- pretty much since we've come back from the holidays no -- gonna jump back and find very very late even for a Friday like.
Worse than a Friday I know we're seeing what that buying it if there is any time when that market does pick up a little bit it's when we sell means the old halftime so there's no panic selling.
But there certainly is nobody out there that wants to buy right now and -- -- it has to do with the unknown and these new bank rules and what's gonna happen going forward mark Calabria director of financial regulation studies at the Cato Institute is with us right now hey mark welcome back.
-- you give us a rundown there's this bank fee proposal.
Basically they have to pay for the amount of risk they're going to take on.
Well that's that's loosely.
The -- description of it.
I mean it's being put forward as a way to recoup the losses -- and we paid under the TARP.
It's gonna be related to your uninsured liabilities and review our banks already pay pre the for deposit insurance about -- -- coverage this would be all your other debt.
-- -- to be assessed on -- amounts.
We're told that this will only be you know for about ten years to repay back the losses from the TARP.
So that seems to be what the initial push is in terms of the bank -- -- paying -- don't.
All of us can repay whose losses from the talk that the losses that you AIG Fannie -- Freddie in the auto companies last incur.
I think that's a fascinating part of it because it wasn't that long ago that secretary Geithner and others in the administration told us the TARP was profitable.
Overall the bank lending part of it has been profitable mean that's and I still think the program is a mistake.
But usually -- that the losses on the -- have been the auto companies they've been from AIG.
It's not clear there's some discussion of an administration that other insurance companies will pay -- that AIG might pay in.
But the administration's been pretty explicit that the auto companies are not -- to be expected to have to cover their losses.
Of course the losses from -- and Freddie will probably be.
45 times as large the total losses from the TARP and we're not even talk about operating -- Not only are we not talking about Brady and -- pay the money back the administration is not put forward -- plan even fix Freddie -- -- avoid the situation mapping and again.
So to some extent I think they were very much looking out the wrong culprits here they're not focusing on where the losses really work.
But why is pat why are we not talking about -- -- politics.
Did that brought it just goes on like in perpetuity and we keep funding -- thing.
To some extent I am indicate -- -- to get the -- administration some benefit of the doubt I think their perspective is.
That we need to do everything -- a country humanly possible to keep the housing market going -- to profit off.
I think that's a mistaken policy.
There's a -- a logic to it so I understand where they're coming from so.
I I think they're also miss you however.
You know -- -- holding your investor and Freddie -- you wanna know what your future Edison so I think that they're actually -- the housing market by not seen a path forward.
Nobody really knows what our mortgage finance systems -- look like in two years.
Because the administration just doesn't want to take any risk it doesn't wanna lay a plan out when I really think they need to because people need to start making that adjustment to making that plan.
But their rationale is one -- -- afford to disrupt the mortgage markets and there's also an extent to which I believe that the Treasury Department is concerned.
That afraid -- -- of losses were actually taken.
That somehow borrowing costs and treasury bills would go off because you know the Treasury Secretary both this one and several previous tractor -- Certainly secretary Paulson.
You know win over to China and said you you can buy this do you see dead it's as good as treasury you know you'll be made whole.
And now that you know we don't want imposing losses on that because then that concern would be are -- pay more for treasury.
I think that's probably overblown I do think that you know we should be making whoever bought who have invested being -- -- -- the wanna take the losses not the taxpayer.
Mark got I don't certainly believe in in you know taxing these banks limiting their size charging -- -- -- But I do think that there does need to be some more transparency.
And I do think that will -- something needs to be done to regulate further -- Avoid it then taking on as much risk as they did with some of these investors moving forward because greed always gets the better of us that history has proven that.
-- -- we have in place before I just didn't work right how do you do it now properly.
Well I would start with the observation that you know there there probably is no industry short nuclear power that's more regulated in the banking industry.
So it's certainly not a lack of regulations want to ask whether we have the right regulations and and place but we certainly don't have some free market and banking in this country.
What we need to look at is the incentives that we create for bankers.
And you really have to start from the assumption that bankers -- -- leverage every incentive they have to make -- Monday.
Money is they have been so what -- the -- you put in place right so if you put in seventh place like we have today where -- essentially free money we're Lou you've.
Because of the -- Federal Reserve policies.
-- can lead in that bar and essentially zero invest in treasuries.
Her like a 3% spread risk free why would they lead -- anybody in that environment they can make a ton of money taking no risk so.
So some extent we do need look at the incentives that Washington is created for banks to make bad decisions.
And that's true during the crisis.
You know Washington was at the forefront trying to tell everybody and everybody that home prices would only go up forever that homeownership was a great thing for everybody.
I'm very disappointed that Washington we have yet to have a real discussion in congress.
Over whether everybody should be homeowner can you know these basic policies of pushing homeownership.
All the time I think you've been misguided yeah you know I think you know we need -- ask whether there is when you know whether it's really worth -- in this much money in the housing market at all cost because.
Yes my house might be -- a bit more but I felt a lot towards a taxpayer.
He kept to only -- now because -- -- -- -- more than anything our investments in Fannie Freddie AIG autos are now not worth anything.
So where we goes on here do we bring back Glass-Steagall.
Do we do we break up the banks.
Like -- I think if that's you would not be of much help because Glass-Steagall you know which separated investment banking from commercial bank and I really don't think was behind the crisis if you look at Bear -- you look at -- they were standalone investment banks.
Even if you look at the commercial banks that did some investment banking Michael -- and -- -- They got in trouble because of their mortgage -- -- -- get in trouble because their investment banking so I've looked hard but I haven't found one example where somebody took insured.
Deposits from their commercial banking use it to gamble on Wall Street.
They're really starting to examples of that so bringing back Glass-Steagall or even if we had never repealed it would still be in the same place to.
Interesting too hard to me about what's coming out of the -- the rhetoric coming out of DC they're coming down on hedge funds are coming down proprietary trading up coming down on all the things that.
Really didn't lead to the browns in the first place where's the consumer lending -- why -- we coming down on that and all of -- you know.
The predatory lending issues I'm not seen enough really to fix that problem.
I agree you know.
I would be the first woman say that you know we don't really we don't -- -- do nothing our system is broken but what we're seeing come out of congress to come out administration.
Ignores all the pieces that are broken in his sort of doubles down all things that were making a mistake.
When my favorite examples of you look at the consumer finance protection agency that passed the house everybody is exempt from -- Wall Street exempt from it.
Not a deposit them Freddie -- a year -- from an FAJ is exempt from it.
You know the real orders and home builders who told you that your house would only go up in value forever they're exempt from it.
-- the people that are actually covered by the consumer finance agency -- people like -- catchers and payday lenders in.
You know whatever you one's feelings might be about check cashing payday lenders I think it's pretty safe to say that it caused the financial crisis.
An open question when we actually got to focus this reform on people who are actually did it.
You know for instance to go back the president's plan about breaking up investment and commercial banking what does that -- -- That helps like Goldman and JPMorgan who don't have commercial bank affiliates this actually reduces competition and investment banking.
One of the reasons that Goldman is just so insanely profitable right now because know who else is left standing yeah and they don't have a lot of competition.
And this actually lessens competition on -- it's a great thing for them.
There's not one thing that the administration has put -- that I can think of except for maybe the tax.
That Goldman and it -- JD Morgan other investments have anything to work.
About had actually -- for that and that's taxes of million -- hate them too hard anyways thanks Marc we appreciate it.
Thanks mark my pleasure mark way to director of financial regulation studies at the Cato Institute that's -- -- right there by the way.
He was we should note a member of senior professional member staff member of the US senate committee on banking housing and urban affairs for six years so he's right out there and he's a former.
He's was as Ph.D.
in economics and he's one of me as we go to break we're gonna continue this discussion on the other side viewpoint poll was very distinguished had a black out of -- salsa night screening job not even -- This has an 81%.
Bluntly all of the other choice no financial reform -- now zero.
Going to talk about goose -- -- about foxbusiness.com.
Live -- -- market down about 26.
Points right now.
Not terrible really it's been hanging out in this whole little trading zone pretty much since we opened this morning.
-- to go to Florida right now because it's warm because it's nine here.
Jim -- CEO of the free enterprise nation from Tampa is with best Ned did you have that -- biggest economic threats the United States I think we get like come up with a litany of them five it's probably being generous.
The one though that jumps out -- -- it's still security crisis and an all this talk of deficit.
Reduction in trying to stop spending we don't hear about.
The problem that is -- security Medicare and Medicaid we can't fund those.
Absolutely we have a debt that they only guessing that.
That the the official government -- is thirteen trillion dollars but.
When -- the policy makers and they in the think tanks look into it.
They say really if you start throwing and the unfunded liabilities for Medicare and social security and some other entitlement.
Our -- our debt or unfunded liability is really a 107 trillion dollars that's quite a big difference.
Jim when you talk about unionization.
To I'm very interested in this because look.
-- -- I personally believe that I know lots of people out there would like to strangle me for saying this.
It's not 190 wait you don't have sweat -- anymore in the need for unions is not as great as it used to -- and actually costing us a tremendous amount of money in the long run.
Yet it seems like.
The great majority of people out there around this country feel we don't need them that we still haven't in the administration wants and even grow.
Yet isn't just that they want them to grow there's nothing wrong conceptually what that what the union if people want to form one the problem that we have.
Is that the president exit issued executive orders a year ago.
Saying that if you're contractor and you wanna will apply for a construction contract of 25 million dollars or more from the federal government.
The government can require that you and all of your sub contractors be unionized.
That's true in states where there were virtually no unions they're saying.
If you don't -- we won't give you the contract and that is a use of taxpayer dollars that is that is completely misguided and we think.
We have to do everything we can't stop that.
Let's talk about this.
Ending -- because that is one thing we do keep hearing about we have to rein in the spending in order to cut down our deficit and save our kids and grandkids.
Is that gonna happen.
It has to happen you know the the thing that nobody will talk about except in my organization is the fact that the cost of government.
Is really the cost of the people that work in government.
Ten years ago the average federal government employees' compensation and benefits.
More than the average private sector -- and benefits today ten years later it's 100%.
Than the average private sector.
In the in the in the non federal area.
The compensation and benefits are 45%.
Then the average in the private sector the governments are taking money from the private sector and paying it to themselves and has got to come to a stop.
Jim we're gonna hit -- present in the State of the Union Address tonight we seemed to be heading down this populist road.
It didn't start last week but it's certainly gained a lot of steam and momentum last week.
Can this be turned around in your mind.
Will we be able to do it we'd be the American people will be by the next election what's gonna stop this.
It has to be the -- in -- that the problem is -- voters aren't informed because.
The federal government itself.
Hasn't had a and audited financial statement fourteen years or auditors are giving him qualified financial statements every year for the last fourteen years.
The government doesn't really even know how much it -- The tax payers have to get angry enough.
To require the government to disclose what the real -- is.
One they can see it then they can start voting for people who can take various elements of it and put it under control but the biggest thing -- have to do.
It's a cancer that they can't keep on spending one and a half trillion dollars a year more than they take in and expect that any of us can ever hope to be able to pay it back they just got its.
I'm in matches like basic bouncing -- -- but that it will do it at home I'm not really sure why this government doesn't do you know I asked our viewers what they thought the biggest threat to the economy was.
And a lot of them are saying entitlements.
That the entitlements have to stop two and maybe that's.
And maybe that's something that we should be hearing from our president.
I don't think we are gonna hear that from the president's own but yesterday.
You just had a Cato Institute person -- -- forming.
Chris Edwards at the Cato Institute just put a report out yesterday that.
We had finally passed the 2000 mark we now have 2000.
Different entitlement programs in the federal government.
We had a right the president the president have to.
Somebody have to say stop but it doesn't appear that it's going to be this administration.
Now -- especially not an election year it's not a popular thing to do not get an entitlement well I had nothing.
I mean even talk about well go ahead side.
-- I think that you were gonna get an entitlement I think the current approach of government is too.
Put everybody on the take so that everybody feels that somebody else will give them something and he's going to try.
To extend that to as many people as possible.
In their opinion that will entitle them to your vote and -- -- certainly hope we can educate you to do otherwise.
Yes this afternoon to thank you so much for joining us today thanks -- thank you very much -- is of course CEO of the free enterprise nation -- Very interesting we -- market that's moving somewhat lower right now down 31 points as you mentioned earlier we were down sixty points.
And that area earlier in the day we just sort of been traversing this range right now -- let's move in this month.
-- -- -- looked -- said Tracy becoming union vet my insight way to entitlements Chad good point.
I -- living down.
You talked about a little earlier but -- fourth quarter earnings fell by like two thirds.
They did topped analysts' forecasts but not seeing a rosy picture going forward as we talked about so that really bring in the Dow down.
Although again only down 32 points.
Gilead Sciences again this is on -- it's up and down today it's up fourth quarter profit rose 43%.
On strong sales of its HIV drug.
The company also benefited of course from royalties from Tamiflu we've heard about them yeah that's why aren't -- glad earlier in the -- now you know.
Berkshire Hathaway in the news because it is joining the S&P five country and taking over.
From Burlington northern which is interesting is he owns that.
So he's replace himself that is she kind of interest into the it's of these shares though they're out there people are buying them buying these huge.
But Jack -- BE RKD if you want a piece of the action now it's a little bit more for it's much more -- isn't much more -- at a time that.
-- mean how many times that it a I'm an attack Iraq they used to be elected Davis in -- -- in the -- on that.
Think 500 dollars yeah but it's always good that he thought it in the -- and a little later depending on your time you can really get -- Rockwell Automation we actually talk about this earlier hit 52 week high today fiscal first quarter earnings fell 35%.
Because a weak demand lower margins this is an industrial automation products maker but -- -- outlook they said sales came in better than expected she can't beat that with a -- You've been an issue that's that and that that and the -- -- this thing is don't get behind McClatchy blows my mind because.
People try to say newspapers aren't -- come and then.
His doorknob but nevertheless it if it -- be tied today.
But -- reversed its prior year loss in the fourth quarter because they have breakdowns in restructuring charges last year -- -- Many -- 1% though but the pace of the decline.
Is -- new policy it dying slowly -- aliens that.
And Brad and I if you add and edit or read any unit got it -- That they break me come back -- -- -- autos what's going on with Toyota.
It not good good for us -- GM.
-- I welcome that next.
Live -- anything you can say -- and I thought I was gonna say but anyway they sent out to -- he.
We met -- in my brain that the Berkshire are it was a one to fifty split so for every one share of Berkshire are you had now fifty.
Good stuff gets people in there.
We get a -- -- DC -- Peter Barnes covering the State of the Union Address this evening.
Peter what are we expecting to hear from the president and everyone on our everywhere watching our show right now wants to talk about job creation is -- -- -- that.
-- and I'm that's what.
The that's going to be the focus is -- -- that's the most people think and that's got to be number what a priority number one for him.
That's what it is that's what the congressional Democrats want going into the November midterm elections this year.
The voters of Massachusetts sent that signal loud and clear last week with the election of Scott Brown.
To the senate that upset victory here.
But I can tell you you know you've heard the phrase everything but the kitchen sink even -- that's what we're gonna get tonight OK so let me tell you based on conversations -- you know what some of the stuff that -- White House has talked about already plus what we're hearing off the hill.
The president on job creation.
We'll focus on job creation and deficit reduction will be the two big ones job creation economy and deficit reduction.
So on job creation -- will outline particularly for the small business community a lot of help there.
-- tax cuts are small businesses that hire more workers this idea of a tax credit jobs tax credit.
He will talk again about eliminating capital gains.
Four people who invest in certain small companies he will talk about trying to get bank lending going.
Two small businesses.
And -- he'll also talk specifically about it a job creations project.
-- we're hearing about a high speed rail project I believe in Florida.
You know billion dollars that he says will help to create jobs.
Other initiatives we'll hear about on the deficit side he -- -- he -- gonna again talk about this three year.
Freeze in the non security.
Spending about 70% of the budget.
They say we'll save a 250 billion over ten years he's gonna call for a bit bipartisan deficit reduction commission.
Which was voted down in the senate yesterday.
But he's gonna do it now by executive order.
He's also gonna -- call again for pay as you go budget rules to help get government spending under control and then it.
He'll also talk about and a bunch of other initiatives he's gonna actually proposed to increase spending in education and of course they'll talk about health care financial regulation reform.
Immigration reform he wants to get back in the game on that and obviously we'll hear a lot about foreign policy particularly the wars in Iraq and Afghanistan.
You know I want him -- -- I didn't look at people on the -- and say.
I took on too much -- first year and -- start from scratch.
Instead you eat meals laundry list that is like a mile long so you don't give enough he's just -- go and then they'll -- -- more run.
My shoulder and her.
-- he's going to be very is going to be he is going to be very aggressive and it's going to be confrontational I know that's going to be very populous is going to be populist you're gonna hear him you'll see the style will be.
Like his speech in Ohio on Friday which came four days after.
The Massachusetts election -- senate election.
He wanted to.
Make a statement in Florida and we heard -- kind of you know.
Populist populist populist so we're gonna hear that tonight not that that means he's going to get anything done.
This year because of that change the make -- of the senate but definitely wants to position himself in the party ahead of these critical midterm elections in November.
Nation is divided thank you Peter we appreciate it.
Hey guys Peter Barnes in DC getting a set for the stated he -- tonight by the way you can Bhutto.
And especially on the address tonight 8 o'clock right on the Fox Business Network doesn't -- right here what is right here where foxbusiness.com.
And you can check us out on the network tonight and Peter will be there.
You here as well around the clock on this thing is and Neil Cavuto voice anger and it'll start at 8 o'clock.
That's and he is the biggest thing all these things he's taking on that's fine to me it's the tone is the populous tone is -- us vs them.
Because you know -- -- pull this morning 88% of Democrats I believe still.
You know support the president 23%.
Of Republicans we are so divided as a nation right now we are not working together we're not getting any closer to working together.
We've got to find some way -- -- -- and find a middle ground and the president as a leader is not taking this in that direction.
He's now leading.
He's not -- given us in the I -- I believe in America.
-- David Lee Miller joins us right now from the news channel and David speaking of leading -- -- has been a leading Howard -- leading.
Automotive manufacturer now taking over for General Motors as the world's number along -- -- they have a problem right now I don't day.
-- -- Toyota is now the number one car manufacturer in the world.
Taking that position -- General Motors would take a look at the car dealership behind me here in midtown Manhattan.
We have some reflection issues but we'll see if we could zoom into the plate glass window.
Behind me is a red who Rolla.
But that car you're looking at right there.
Is not available for sale there you see I think perhaps a man blocking by the plate glass window wouldn't.
-- if you look at admire that -- but like so many people he cannot buy it.
That is one of the eight vehicles that Toyota has halted production and sale of because of a problem with the the gas pedal.
And it appears that this is a problem that Toyota is frantically working on but has not announced a solution for back -- you.
Did -- -- just quickly what's what's the feeling like inside there these salespeople they can't sell these cars are big diet.
Got a lot of men and women walking around looking dejected looking at the floor -- they're not talking with the media.
There is a sense of frustration.
On their part as you would very well expect there inside this building to sell cars and they've been -- -- -- a good number of them are simply not for sale but there is also to some degree a sense that Toyota.
Is handling this in a intelligent way.
And that this is going to be a short lived problem they have now I should add a dead applied.
Where they believe this bad component has been manufactured -- subcontractor in Elkhart Indiana we call that company they -- not talked with us.
But it appears they are making progress in identifying what the problem isn't working on a solution but right now -- -- of at least eight.
Vehicles remain halted including the Camry and the corolla two top sellers back to you.
Thank you David we appreciate it David Lee Miller from the dealership on getting us the latest on what's going on with this Toyota this sales stoppage now -- had two different recalls.
And this -- it's not react quick there that then fixing it hasn't been that quick they're two separate recalls and Howard -- stopping the sales.
Of the corolla and the Camry at 65000.
Vehicles in the month of December that's off 5% of the overall US -- moment of market right there.
That's a huge chunk of.
Of what we do on a day to day basis here in this country terms of selling cars a big a lot of Toyota dealership.
You can't sell you know what is it half of the cars you would sell on any given day and it's.
Once it's -- good with.
Your points there isn't that what actually last year they -- four million cars yeah this year and -- quote another 2.3 million weeks ago right now and the -- bigger problem though is.
-- logos all those cars one point seven million have the same problems both problems I should say.
He recently got one point seven million cars that are being the quote twice let's go to.
-- David Thomas right now is senior editor at cars dot com David I said this this morning back on Apollo thirteen and that's engineers.
Learn how to scrub oxygen by taking a box and wrapping and duck tape why can't.
Toyota get 500 engineers and figure out this problem in a day or two days and get this thing fixed.
I don't know hope that it the same kind of wait actually it this issue I think very few more that they actually have.
-- that work in the -- They just can't build enough but then I mean they you know in these are the most popular -- into the country that the froehlich Emery for the most part -- there just like that.
2.3 million -- that need to be fixed I think they're probably actually coming up with Howard taken it yet the correct arc out to all the people that need.
Were they trying to kind of stay ahead of this and they finally realize that they weren't weren't going to be able to do it.
Like I think they're working as as quickly as any manufactured this guy -- -- many vehicles.
And -- are at this particular.
Very specific issue is that involved.
They're a lot of people that are in eight years that they -- -- with acceleration.
That this isn't the entire story but it.
Or what we know now they are going about it in the right ways I mean.
All being bailed like this.
Halting production at assembly line that it is the most significant -- any -- -- can make battery call.
Okay it's about up -- one of the things we talked about earlier this down some big right now to us right.
But if it's handled properly they do the proper PR and what you're saying is they're doing the right thing right by holding -- holding reduction until they figure it out.
Could they come out looking okay at the end of the day.
But the look as good as they -- I think it don't look.
Pretty bad right in the right now.
Really back right then and people remember that end in 2000 board had a very serious business buyers and hires -- much damage -- -- for a long time.
I boarded this is -- around and selling a lot of vehicles an accident and up but right now they're a bit of being as as strong as they are right now.
They can they could call it hate it it as -- -- -- any company out there and especially with their past track record of of producing big cars.
Though you know I think they can amount that bind it isn't going to do.
You know make them you -- not -- -- to not be able don't cars anymore in the country.
David what -- they do -- in order to come out of it I mean.
Factory incentives and he's a really great deals they had -- a now.
Put this could easily what happens is its front page first day and then when they -- sits on the back page that sort of debate in newspaper analogy had -- make -- the fixes on the front page.
That I think -- -- this coming up with the total solution saying we're gonna take care every single person.
You know in in a complete way they can't just say well we're gonna hit it -- pardon -- be.
-- replace ones that are showing night though they have replaced every single you know one and that's really look at it and go overboard and they.
We are going to do the most -- and I'm as quickly as we can.
-- really make everyone happy in the eighth then.
And I will point out this dispute -- -- -- a very busy news day.
No I mean you have not only that the president -- night but -- coming out that you product now that would that they -- up a lot of Internet none right now.
At at this things go in it it could have been -- -- -- -- headline.
I mean that's a fair point although.
Many of us here are saying this is a bit with all the news going on this still is the biggest story of the day because -- it.
It up for a lot of people this is a -- they bring their kids to school and this is the car they drive to work and it's the -- supposed to feel safe and and last year we -- floor -- that we're getting trapped under the accelerator pedals that's pretty scary so let's say I am home right now my car.
Is not on the list of recalls although.
It seems odd that it would be just about everything seems to be on the list what do you do -- do I still feel safe to bring my car into a dealer to have it checked just to be sure.
Well that that they know -- that there are signs of problems.
I mean if you're driving a car and it.
He would just doesn't just pop up all the but you're not that it suddenly burst the way in an unintended acceleration but -- -- -- there is where that -- And they should notice -- Segregation and and that the pillar of -- press down on the acceleration.
If Telerate you'll notice there's been a rough.
All he is one word -- used.
He will -- the as the agent and when you release the -- the -- it won't snap back right away.
-- he should -- eat -- or there is that you know.
It -- that would lead to an -- That that is something that everyone should note they have -- ours I think people watching right now Billy how these are.
So that -- companies to pay attention to you and I think what prompted if people don't pay attention to -- -- As much as they should this -- a mandate they have to Jack when they kept on the night.
We should -- They have no bit -- have been no recalls on the -- thus far right.
Just to be accurate -- -- and let it -- were involved in the format but are not.
Because they're part they're coming from a -- -- -- David thank you so much for getting us up today -- that we appreciated thanks David thank you David Thomas senior editor at cars dot com the latest he's just such a bad thing because.
But if you're not talking about you go here where if you -- I'll -- you could say well it's always been a piece of -- we'll talk about -- -- -- cars that people expect to be I mean he's.
Best save our is number one card for the longest time this scarier part too -- then is now you closing -- that means -- more people unemployed.
At least for attending these temporary mean shutting down some planes -- -- -- the -- in Alabama and some other places six different.
Manufacturing facilities at least temporarily and you also salespeople are these dealerships right now somebody says -- -- -- I can't make can't sell at CU.
But there's a Honda dealership right across the street that you might want to take a look at that's really.
It's bad for the short term it's got to be for the but I mean you know -- like this decoy at the time -- these trucks that's how all these are some of their money makers and and now halted and on the sidelines got Atlantic.
Yeah they got -- you're right we need a PR -- great Toyota.
We got take a break a -- and give my two cents blitzkrieg.
-- -- -- -- Welcome back the boxes dot com live because.
I may have Tracy any -- and break -- being of all 100%.
Sicilian descent which is one reason why shouldn't they -- because that can always connect army.
On just mentioned blitzkrieg another Japanese carmaker and I told that I was chairman of you're talking about BMW.
War Volkswagen I'll be more appropriate so what happens when I try to get out of my box I'm back yes in my body was Anderson all -- I will introduce.
I thought about a quarter German and I can handle that type of an -- I -- -- -- you know -- rocked my club career around here.
Hello you all you got -- -- the -- -- today nowadays tough to find work off it is just it is so hard.
So any little bit of advice people can hand.
Before they start their search.
Is obviously going to be a big help.
It just from a general perspective what is different now than four or five years ago when unemployment the unemployment rate was 6%.
What is the biggest if.
Well just think there are fewer jobs companies are tightening up they are doing.
More work with fewer people.
So obviously that means fewer jobs are available now so what people really need to do is what I like to say is make your oddity a commodity.
So whatever is interesting different unique or special about you.
That is what you want to market as sort of your you know your shtick and.
Real quick how do you do that without going over the top because EO commented that it -- in interview with somebody.
I'm interviewing for a sales fell not because they hang on I gotta make a couple phone call us and yell at you cold call million of you had -- -- -- like that -- -- sets against white.
So what you really want to do is demonstrate your skills in that area so if your great salesperson.
Cold call the company that you would work for an.
Navigate past the gate -- find the decision maker and schedule an interview.
So that is really your opportunity to demonstrate your sales skills is before the -- right it's getting the interview and so once you've got that decision maker on the phone.
They're giving you objections.
You know now's your opportunity to overcoming the objection and still get the interview concerning a test you -- on that.
If it's still the way like you know when we got out of school it was the one page resume.
It just so that's still exists because I know sometimes people up 567 -- resonates who reads that yeah.
Well -- kissing you should say that I actually -- and the big proponent of something I call the accomplishments portfolio.
Now for some this might feel a little over the top but the point is you've got to do something that's really sort of out there over the top right now get people's attention and this is actually worked for me in my career so accomplishments portfolio is actually just that it's a portfolio that outlines.
Projects that you've done results you've created you know how -- impacted the bottom line of previous employer.
It's all about results and if you can prove results.
Then and an employer that's considering hiring it was going to be impressed by.
So you're you're okay with lengthy detailed information on paper as you were saying as the initial.
-- way to get people -- about.
Well it's it's a way to sort of make an impact.
You know especially for some like we're talking really about really demonstrating -- you are presented as a marketing professional for example what a great way to show that you know how to market something by marketing yourself.
And myself and I did this have my own career as senate accomplishments portfolio and -- FedEx box.
That reception is that they got it walked into the decision maker gave it to -- He had a stack of resonates on his on his -- he gets the -- he opened up he called me I mean immediately said.
He -- what is this might my secretary just can't mention but the -- box on my desk.
It says in various city accomplishments portfolio writes it's got a shock me yeah a little bit standout loom.
What do you not do.
I mean I'm sure there are plenty of news and obviously that you're you're a guy you don't go in and you shake hands that I get dead fish and -- -- the rule number one.
These he can't do the what is now more and more unacceptable what are what are managers looking at nowadays in -- boy that's that's at -- right.
-- -- about the handshake that very important and especially with the woman to man handshake.
Sometimes men have a tendency no offense.
Two incident like this you know like how hard to I think that -- know how it's getting there arm hand saying no matter who what the gender is of that person so handshake firm great.
I contact really important throughout the entire interview smile.
And one of the biggest.
Don'ts which -- will be interest -- -- kind of phrasing this.
You don't want to not ask questions.
At the end of the -- -- -- and that is you know that is often a test at the very end they can just what you think you're great.
And at the end that they think they have any questions for me you don't know -- -- but they're like -- -- -- that's not be very interested in -- -- -- just wrote in and said he went resonate specialist.
He -- resonated three different people making that with three different resonates I mean it's like anything out right.
How do you know then what's the right way to -- consuming what you're -- doesn't sound like it's changed all that much since we were out there -- good resume will shock you impress you -- get to the point be shot right so what's different.
Again I think I go back to results so if -- resume at the very top of the sounds a little strange is a marketing thing.
The very top of your resume why not have a quote from somebody that singing your praises you know -- testimonial about what a great job you've done -- right the top.
Then you have you know that contact information and all that and then before you get into your qualifications.
Your duties all of that kind of set.
Why not list all of the things that you've done that speak to the bottom line results if you're in sales.
And you were a hundred and persona as per -- -- quota but that right up front to forget the -- I graduated in what I could -- -- -- -- not stuff of real quick how we use technology to best Elvis because we're talking about the tablet today we've got all these things about Islam group.
Social media is phenomenal for finding jobs that are under the radar.
Using -- is fabulous -- -- dot com Twitter FaceBook you know all those.
Because what'll happen is as you are networking with other folks.
People who are employed are listening to some of those conversations that are going on within the company.
They may hear an executive -- -- and we really should think about hiring another salesperson.
That's not out there yet you know but now you're gonna find out because you have a relationship with the person that's inside that company.
The book is read you resonate create your accomplishments portfolio and land your dream job and you're sitting well thank you very much thank you good to see him.
I've that's a ball and coming up I have my dream job Chris Conner well -- -- placing bowling pins.
Hey look all that oh yeah I'd look for sure there was no way I eat what you would need to be your dream -- in this my accomplishment the citizens.
What about my bowling accomplishments president of the BP AA bowling proprietors association of America Jim.
I take my kids -- we love it.
And -- we love you bring your kids we'll get expect that at -- tonight you have this new bowling hall of fame tell us about it.
You know -- it's possibly the most potential greatest story in sports -- happened Monday November 25.
And only but because.
We're bringing together the -- at the use of -- bowling industry all under one -- and that's never been done on the sporting business.
So bowling is making a big come back then more I'm I am not the only one that goes -- and I know that's not the island if people they.
Iowa right -- there's so there's a world -- resurgence in bowling and and when you look at the fact that we're the largest.
I'll participate sport in the country and then you look at the fact that hostile -- is the fastest growing sport.
There is that resurgence into the car collegiate market as in our team USA is a professional -- Jimmy Taylor my -- an accomplishment that I picked at -- time.
It's a fraternity champion Justine pi kappa alpha Georgia Tech -- right we could roll some bulls.
Talk about unclear.
It is a real there's a real increasing kids bully is this.
Brunswick has the second midnight bowling -- -- turn -- all the lights and things like that it.
Is the industry really doing a good job change the perception of -- You know the the old adage was you know it was smoke -- male dominated.
Sport and it's not that way today actually only 60%.
Of our -- business is is 34 years they've been under and when you have that age group in the fact that.
You see that that it's youth oriented sport -- -- gravitate to it just not here domestically in the US but but the international scene as well.
He's very Fun League there's TV this -- there's music and the best thing.
Since sliced bread are the bumpers.
There's bumpers now -- announced you know this -- for the kids to luck this prevalent I don't because they weren't they can't.
It won't strikes like Allen himself challenge now is all the way down but we love it -- we get strikes because of the bumpers.
Yeah yeah -- the great thing about the bumper for the kids with which -- it's it's complete story.
Is the fact that you could be three years old or a 103 years old to compete in this sport.
And that's what the great thing about Bowen and -- is to America.
You know what when we see that we -- range of all walks of life.
And we can -- from all walks of life and and -- literally twelve months out of the year so that's a great thing for truly America's sport.
Jim part of this international bowling campus in Arlington is be futuristic.
Research and training center.
What are you are searching now what -- -- important.
-- well you know not only do our our team USA's.
Train there but this is -- facility that's opened up not only to our professional athletes but every amateur athlete all over the country and all over the world.
And we will test bowling balls -- test equipment.
We test the friction that the ball has on the -- so it's a very scientific -- It is very scientific community watch PDA and by the way -- they had their first female -- winner just last week I believe.
On a PDA to if you -- -- 88 they talk about oil patterns and how older lanes are you know are different from new lanes and things and it is a lot that goes into it.
Well you know it was this with that being said.
We compare that a lot to what we hear the PGA events on golf.
When I talk about those that readings of the green you know we have we have ratings on the lanes and you mentioned calico it.
And that just -- besides the fact that we we are -- sport that's that's equal for every participant male and female.
Didn't jump president it'd -- PAA.
In Dallas thank you so much for being an ass like you races and I say this I tell you we go we have a glass of hysterical and we really all do you play together and I -- the bumpers and I'm not seem to -- -- -- challenges so not a worry you that I.
I went down without bump up not expressed I was so that.
Yourself all right don't forget you can stay on foxbusiness.com.
Where we're streaming live coverage of Apple's announcement today from you heard a -- -- Californian of course your body -- is there all day long is the oldest -- they had a lot of folks.
How worried about us going off the -- in a couple seconds -- -- there is live pictures and we're gonna be there Autry -- -- polling.
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