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Hey welcome to foxbusiness.com.
Live -- -- -- -- got a 12 o'clock on the east 9 o'clock on the west good morning to all of you out there.
Markets of 73 points went up most of the day we were actually up a little bit higher before the president spoke I think grew up about ninety points.
Pulled back a little bit but the ISM number really is part of the reason why the markets up today was good manufacturing number.
We're Macon stock soared well.
Markets reacting to it it's better than it could have been -- and it was.
That's better than we've seen in a long time in the -- had some pretty strong months in a row now.
-- for the size and manufacturing number after really being any KG machine for the entire year 2009 so hopefully this is a trend that will continue -- -- sort of the first.
Of us some very important economic data that we get to speak.
Both -- the government and -- the private sector to get ADP jobs on Wednesday we get the weekly number on Thursday in the big non farm payroll report on Friday I think.
Especially as we get later in the week -- one's going to be looking forward to that but done.
He did mention the president speaking today outlining.
Is budget proposal if you will -- the congress three points eight trillion dollars at which will add one point six trillion dollars to the deficit.
Pomp and don't need that it's essentially in latter years it'll it'll -- a lot less but.
In fiscal 20111.
Point six million dollars.
Right -- -- fiscal 20101 point 601 point three in 2000 allow them but either way either way it's funny math.
It's funny either way it doesn't matter either way it doesn't exactly really that's what it is it doesn't mean it's and we're cutting out which bothers me the most our mission to the moon night -- Stand why that is rather he's so much I really lives and cook I'd love to go to the moon -- -- to go to -- -- -- to -- -- -- -- I'd love to go to Jupiter in Neptune in the cannot have a new planet now.
Not only to Pluto well we took little.
That's a big net minus one actually but the problem is.
We got a lot bigger fish to fry your honor thing going up there and collecting dirt and assume that but -- Essentially that what we've done in 41 years since we first Clinton and what do we got.
We've collected dirt samples.
Honestly what else have we done since -- first went out there.
The government really has two jobs as far as I'm concerned to keep me safe.
To explore the moon and now you not do it.
Really -- I do any.
That's -- the second of the two jobs space travel I'll make this thing you know big big picture stuff that I didn't that got a -- jobs mart PA.
Hit the Wall Street it's Manning -- business go way.
We have someone on Saturday say go away all right that's you should do as the government -- -- -- did you want.
You want to go to the moon I want to go into what yeah first of what do you think congress should just go to the moon in the lobby and there better if they were there.
Had a problem with the -- and they have to stand there in the land -- OK with that people are right now US equities that is -- military that Peter.
Did you -- space 1999 when you're the fifth set up.
-- I didn't want -- -- -- the sell -- all the time and money on the -- lost in -- example -- is as good again that he had 99 halves of the team members -- yes it's.
-- -- -- It's -- embattled star Galactica too I'm not really too concerned I don't affecting my life on a day to day basis either Peter is here to talk about what -- on a day to day basis though and on.
Yeah it had a beer o'clock but will it really did a bear Claudia -- got two and one on the individual in the sciences.
Is bearish that I ever going to be vulnerable are you talking about food from Columbia -- -- they're awesome you can eat them yeah they're they're like honey -- if you compare clock and a Paul Hanson.
You're bears so -- it yet.
Well I don't they I was bearish on the that credit bubble that included in the housing market so that ended.
So was -- much less reason to be bearish.
I think bullish for the past year on emerging markets and commodities and the reflation trade.
I -- less enthusiastic about US growth because of the still over indebted problem that we have.
-- I mean it well William were still there.
We can't think congress in the next night and liked him so we still have these guys interfering live now right well that the consumer and business have -- -- rational thing they've pared down their debt levels.
They've started acting responsibly.
But of course that has been offset by what has -- going on Washington -- -- And that clearly not may have actually new aspiration bound bound.
This budget right which means that between them and the Fed at some point.
Leaving zero interest rates they've created.
Speed bumps and possible roadblock to any recovery that we get.
So we can grow for a couple quarters because we build up inventory by.
Long term sustainable recovery that you typically get after really bad recessions is just not gonna happen and even the president today reiterated that tax rates.
On the upper income people are definitely going -- 2010 he didn't talk about capital gains -- dividends which is scheduled to go a lot.
But you have to believe the businesses are gonna assume that they they are going to go out and that will affect behavior that will affect.
Hiring purposes or hiring plans in addition to the Fed -- -- -- stimulus so.
The government has.
Pretty much stopped us from really growing as we should after recession.
You know you -- nation's GDP number five point 7% cannot last Friday.
All we know that that some math and that's why it's so big but what do you see going forward I -- DC 2%.
Every quarter for the rest of 2010 in 2000 -- -- we can continue to get the inventory bump in the in Q1 but the question of sustainability comes down to and demand -- -- and -- -- and the -- around the world so.
Unfortunately because of that number 70% still made up by the consumer.
You -- can grow as you should we need to expand our exports and and cap backs which hopefully will continue but it's not going to be enough to offset.
-- -- that I still expect to see in consumer spending and again once the inventory.
-- situation once.
At -- gas in terms of replenishing shelves and not only here but globally could -- a lot of good manufacturing numbers today around the world.
Well then it's it's it's -- back to square one but Manning dean becomes a lot more difficult citizen however would mean reversion recovery -- -- beginning the self sustaining one.
But it sounds like we're back to square one -- because if you have you know we're building up these inventories again because really that's always on the GDP number.
But if the consumers not -- -- -- -- buying this stuff yet so that happens right that's why it's just a short term break right now.
Until we can get.
Debt levels down.
Job creation income growth for the consumer commence start spending again but at the same time we need -- unique things the rest of the world wants.
We need to increase our -- -- because the consumer contribution to GDP.
Is going to be on the secular downtrend.
-- -- China exports a lot of stuff and we buy about 20% of their exports.
All the talk about then you know -- reversing there are taking do you want to the dollar would help.
On because -- the -- -- go up we'll be harder for them to export goods to the United States but at the same time.
I'm not sure that really helps us from manufacturing standpoint and you know it.
Are we going to be able to compete spit -- -- -- I get the point we can compete with them in terms of the probe of the cost to make something where we start making things again next.
-- -- -- also comes down to Washington in -- in lowering the cost of doing business here.
And making the United States an attractive place to do business to be able to compete with the Chinese to be able to compete with Indian.
Growing manufacturing other parts of the world in -- why the corporate tax rate was not discussed in this budget I'm not sure because that would help us to compete.
The answer to growing jobs in this country is excuse me is -- the cost of doing business here.
You do that you allow us to compete better against the rest of the world you get more demand for our products you can hire more people.
-- -- -- the reverse we are we have still have sarbanes -- out there which many say deters people coming from this to the states.
We now have these new rules that you have to report your potential carbon emissions like we're just making it all the more difficult.
To come here to go public here to do business here in the united -- and as you said our corporate tax rate is to second to Japan.
Right and and that's just again increase the difficulty in growing because we're not just growing amongst we're not trying to compete amongst ourselves.
We have to position.
Against everybody else and that doesn't seem to be any plan to do that what he's he was equity markets right now short term went down and I guess last month threw down 3% from the start of the year almost 4% on the S&P 500.
You sick continuing getting a full fledged 10% what we have a correction -- maybe not that fun well I actually think that that.
The after the run we had an 09 that pretty much the top is in her best teams are seen for 2010 again because a lot of the 09 tail winds.
Become 2010 had once again and as you get further into the year whether it's stimulus.
Fiscal and monetary stimulus are traversing.
-- other countries doing the same.
That is going to create again until headwinds and after the run we've had trading 1415 times a multiple why would -- want to pay more than that.
Knowing that again Fed's gonna have to start raising rates at some point Chinese take everyone's trying to take away the punch -- little bit -- surely can raise rates tomorrow -- 4%.
So that's gonna cap backward against.
-- consider -- -- punch -- but then what happens this market.
Guess it just all over again again again -- yet he said we're back to square one they sub prime mortgage backed securities in March.
Housing is gonna keep going down -- there's just -- you know bright spot.
In the future that's when you rely on all these short term stimulus packages and and and injections into the economy -- wears off.
And and you have to see how the economy.
Stands on its own two feet but they don't want.
Politically to let that happen but that's the only thing we we that's what we need to do and what -- -- to get more healthier sustain recovery.
Okay see a supply side economics and keynesian economics and right now and -- wouldn't in the keynesian model be thrilled you used -- the money -- -- and see if that weren't supposed to.
Letting the people -- continue to have the money let them throw -- it.
Is it gonna fail and -- what time does it -- on the -- -- -- the other way of thinking.
We'll keynesian economics is never proven to work so I'm not sure why the base a lot of spending on that because I don't know you can I've ever seen you can print your way.
And spend your way to prosperity just doesn't work but I guess we'll keep on trying until they realize we can't borrowing more money it fails -- You gonna say that's violent people far from the -- joining us as he -- and now and then gets history now it's just figure out what's going on here now and into the future.
I love them but it's not.
-- -- I'm exhausted all right we're gonna have more fundamental.
That they'll tell you know I don't know and then fifteen minutes -- -- talking and talking we apple.
But wouldn't talk about all kinds of good stuff serious cigars.
Than his cigars and flip flops.
And welcome and -- I welcome back foxbusiness.com.
Live Cotter and burns with you we just last week were introduced to.
On the apple I'd had I'm still waiting for my ice bag because like I said if you just -- -- -- around you gotta have some type of the satchel.
They'll go -- so at some point on the high bank is coming down the -- don't you think though.
The man purse in the you know whatever you want it got beyond something though it has the BI -- zones have man -- -- -- that's an instant sellers have -- in front of it no doubt that.
-- himself a man person in mind it's too cool to be in the end the threat and -- have been dazzled to can't Shapiro.
I was happy for president and founder of -- -- -- capitol and all right so apple just appears to deal winner because they just seem to do everything right -- whatever they touch turns to gold.
It's more it's not a story of apple being a winner and Kindle being a loser there there could be other winners here is well.
Shifting in the tech -- -- yeah they're definitely can be I really think that the iPad is really a story for 2011.
I think we're just building up that situation I think.
What's generally gonna happen here is is we have a few more enhancements coming out with their regular products that are really gonna carry him through 20101.
Of the biggest I think it's going to be the addition of the CDMA technology which -- -- -- -- -- go until it.
Verizon and half the United States that -- missing so.
Then a Verizon people are we are waiting for that created that's almost affecting sales of no formal roll on for some of these other phones and Verizon because they they are anticipating it being ready in 2010 they're holding off.
A lot of buy in new Smartphone not gonna buy a Motorola not combining those -- the Apple iPhone is coming to Verizon do you think -- this year.
Yeah I you know the contract supposedly rumored to come out to and in June that would be three years from the beginning of the iPhone so that makes no sense you have to remember too is is that the Smartphone.
Is 20% market -- today people are expecting that.
That area to grow up to 40% and three to five years.
Can you talk about the -- -- right -- -- on the GSM.
System didn't it's gonna move over to the CD NA which is code division multiple access that's -- okay.
But can you explain what's so important -- that to people.
You know basically that's a standard that allows -- to be transported very very quickly that is that is at -- in the GSM.
Yes it is better than the GSM in the three G methodology.
That's out today.
Now on forging the whole thing starts all over again -- today we're only talking about three today so that allows the data to come and much quicker.
Verizon's considered to have a more reliable network.
Now internationally to you have to remember where CDMA technology is around 50% here 52%.
In and actually it's only around 14%.
So it's not as big a deal.
In the fastest growing areas it's a big deal -- India and China CD and it's huge and a plus I would also managed a 14% yes think of yourself as having a great opportunity and to grow at 14% because you've got a lot of areas -- -- proceeding and they can take over right it has been better with three G.
That's what everyone's looking for right.
Yes that is true but you know when they win their phone companies and all these different countries kind of head down one direction they can't just shift the other structured -- -- -- -- takes a lot but.
Be -- the opportunities are where there is TDMA and they have a very very small market share and that's what kind of brings -- Qualcomm you know the stock kind of got killed last week and you know the average revenue per -- -- and it was quite loves that kind of affected them and their guidance was on a little bit weak but I expect that you're you you know it's -- -- pretty good buying opportunity here you know you have a pretty consistent grow -- over the years don't and it's one EP which tends to -- Real low in that status.
So then what you're saying is you think for 2010 apple still.
Making money off the the -- up their computers we're not gonna see -- this iPad and the iPhone we're not gonna see.
The iPad actually started the numbers until -- eleven.
Yeah you know may sell a million units the iPad makes on the -- and -- units on the this year but it's not going to be a big revenue generator for 2010.
2010 is the iPhone and the Mac the Mac sales have been amazing you know I think they would it is is that you don't people get an iPhone.
They say you know I mean I need a new laptop and my kids have an apple I think I'm gonna buy an apple look and I think that you're seeing that in the numbers -- I think what's really interesting is that they still only have seven point 5% of the PC market.
So now and that's crazy and get mad Max of 33% last quarter so they're still so much room in golf for them I mean I'm not -- that they gonna go and.
Yeah I went Mac.
After my kids went back out.
You know as one of those things and it was after getting an iPhone and just be -- really call it really works and it's really cities and you know I can even set up a printer to work in -- house and I couldn't do that with the -- So.
So you like Qualcomm.
In this particular space now quokka.
The world's largest wireless chipmaker and yet they don't even have really that entree into apple yet so to meet its -- as it sounds to me like this is.
Could be a huge potential for that -- already huge potential don't know if they'll be making the chips but they definitely will be -- -- -- royalties to CDMA it's pretty hard to avoid.
-- Qualcomm could not collecting royalty on that situation how does anybody not look at last week's selloff as an opportunity for the -- I mean because they're they're they're -- within arm's reach of apple you know it's almost like movies or whatever apple touches turns the -- whoever -- -- -- ago where you apple we don't know for sure that apple is gonna down the CDMA route.
And I think Verizon's another interest in play there you know when AT&T got the contract on the iPhone on the stock went up to double over the next six to twelve months.
You know Verizon's tends to be a very flat stock but it gets a 6% yield -- -- get paid 6% for hanging out.
And if this -- comes through you could see you know maybe 50% in the stock just -- that apple life.
Still very expensive contracts -- you know someone just wrote on the boards that they're not buying anything until the recession -- like.
When you start to go through your cell phone bill now which a lot of people are doing.
He gets hurts a lot of money for all these things and there's all these extra services is that gonna play into this for all our people just.
Don't question of the -- insane and I got to haven't I don't have a mechanic and mortgage payment.
Oh I think it definitely throws -- -- since the win that you know apple in and of itself is an expensive play but kind of the diametrically opposed.
Situation there is is -- Apple's really the only PCs last technology company.
That has a differentiator when it comes demographics they have a better demographic out there and that's the place that everybody wants eyeballs.
Let the demographic that kids it's kids but it's also higher income people when you -- on that.
When you -- on -- -- fell over holiday time like I was and everybody is whipping out their PDA in the united.
50% of them are iPhone yet so what's that telling him you know it's funny that that demographic is he is and -- -- and I got it.
Gondola -- yeah but.
-- -- Not so -- -- that you know it's adults it is now eligible it's it's almost like they've gotten they still have that.
The the artist if you will that is you know they've always used apple apple is he's an -- and these -- Now they're kind of bring you into the the guys like my dad you know -- -- -- -- -- fixing computers -- whole life now maybe he might even be considered -- maybe not yet but he might -- I considered going happily announced that conservative -- candidacy thank you very much -- -- president -- of Congo capital.
Hustle Qualcomm might be in the -- certainly looks like it might be if they go CDMA which I think there's no way they can't mean that we now hear about it for so long Verizon customers are waiting for its.
I've won him a -- customer opinion.
They get an iPhone yeah I will really again I mean I already have a Motorola enjoyed coming at some point in -- -- to move onto the I thought I would do that.
You know it's a funny is that I have a BlackBerry Curve and I'm -- -- be like the antiquated dinosaur on the block soon enough that's what I -- have an iPod mini.
-- you're that close and he looks like it looks like a ten pound baby.
Let's keep this conversation would apple go -- -- joins us director and lead analyst at Al itself.
-- we talked about the technical aspects of the iPad and who might benefit in that regard and we certainly I think one thing we had a really -- that much about over the last week.
Are the publishers and and how publishers might be able to benefit from the I've hot iPad as well and you're here to talk to Muslims livid about that.
I am but before a circus I'd say that this device is really.
Envisioned to be sitting on your you living room table that coffee table and not something you're carrying around -- gym bag silly of media personal.
Thanks so it's a -- like it it's almost like -- it.
It's really weird to put it to look at it I think that's one of the hardest things it's not and -- -- and got us -- -- -- thought it's not really something that you gonna carry around with you.
Also I guess it takes the place of having a laptop on your coffee table.
It does it does doesn't take the place of a laptop when you're using it for business uses and it's certainly it's not a communication tool.
Like a Smartphone -- mean that we view of some of the complaints about it were the lack of of communication video camera camera even phone capabilities but what it is is a personal.
Media device and in it takes the place of your living room -- the TV.
As well as the newspapers and the magazines in the books and that's what's exciting to publishers.
Publishers see an opportunity here to regain control.
Over the container that they lost to the open web.
And it's not all publishers but some publishers are saying we can come up with an -- like experience.
Get fit on this device and and bring back control through our subscription days.
The -- I think that's the point it's not taken the place of anything it's just it's a new category.
It's you know like it is.
One of our anchors here said it's like the fast food restaurants creating snacks.
It's just -- new reason for you to go out by something it's a new reason to go through the drive -- -- -- get a dollar snack.
It's a new reason to pick up and yet another apple product and it's a lot like cabinet -- -- up -- book on your table.
-- this beautiful book instead now you have that unified -- -- point that was interesting to me that if you're just out there to read books you still say the candles the best that.
I wouldn't I would and certainly part of the billions.
Suing the few years in this video earlier.
-- -- talking about.
And -- a million to a million have sales that million a million net sales is is.
About the same number that we've seen in Kindle already so this will have an impact on the book market but those that have already spent for that device -- Obviously those that are most interested in reading books on such a device they have the equipment they're not gonna need to go spend.
500 dollars for a new leader they have a Kindle they have a Sony Reader and they can just download those books there so it's not gonna push that mark beside.
Net book book publishing magazines and newspapers and a lot of us thought hey this may change may help the newspaper business.
All of those -- who really stands to benefit from the iPad isn't newspapers will be a lifeline.
Not for whole problem but possibly for a few so those newspapers that are delivering -- are really being consumed through headlines.
This device is gonna have a web browser on it.
User habits are pretty clearly established as far as using a browser going out scanning the headlines consuming just bits of news in that way.
It's not likely that it's gonna change any habits there.
Those newspapers and have a trusted brands the New York Times one of the first partners to be on stage and be up there the Wall Street Journal and other when they.
Have a trusted brand that can create this experience on this device.
And it's likely that they will be able to hold on soon subscription basis and bring that base back in.
And it you know we saw will be open web containers.
Of content we're -- busted into pieces this is a way for.
Strong publishers to recreate that container but the real winners here I think there are consumer magazines in Sports Illustrated has an example out there on the web.
It's a fantastic very compelling.
Demonstration of what's possible -- -- tablet computer.
And wide that experience.
To both print and -- on line you know a lot has been made about.
The loss of readers to the open web because of that content was free will the loss of -- was really about.
Readers having a better experience consuming content on the web than they did in the print magazine so I think.
If they can create a compelling experience in an apple product allows a platform for that that they have a real opportunity here.
Netted him to break -- can you quickly talk about why Amazon's a big loser here.
Well I was I was trying to establish control in an iTunes like fashion over the book industry they were out there with their device.
This puts a clear.
Strong competitor would iTunes in their back pocket facing down Amazon and so Amazon's gonna have to open up they're gonna have to move back to moving.
Books not devices.
-- thank you so much and yet.
Thank you -- that I had -- director and lead analyst with outsell giving -- the publisher's perspective.
On no winners in the I think your point about the magazines is really stinks for -- on magazines instead I think you know that's your life -- -- you you might be running I -- mean like did you get these big glossy pictures are beautiful pictures things like satin and then I get to dig deeper into.
An athlete in his I have a history.
Need to you don't have a Sports Illustrated even a Sports Illustrated books -- her coffee table as you mentioned you have the iPad and that's when you can use and you know you can look at Sports Illustrated Alex is a very expensive toys and us face it.
It is a -- You need a laptop or computer to do a lot of work on you need and I've flown to stay in touch with people.
You don't need this iPad I think that's a big difference if you're willing to pay 600 dollars for -- in this environment.
That's going to be good but it remains to see whether Apple's it was -- But it's not truly I mean really it's -- it's -- naked product at.
Whatever the list was for 9499 was the original went out with three G it's 600 and that's and I thing -- about it when you get what you want you really are close 2000 dollars on Charles -- is gonna tell you -- to make a thousand dollars today.
I think with a ten dollar price he -- really expensive to him.
He's gonna join us and we come back.
And cars and cuff links.
But welcome back we're up 82 points 83 points better than a sharp stick in the united and again be instead of the better than a sharp stick in the I think so it doesn't really say a whole lot that was -- my dad always used to say.
-- what is moving this market higher Tracy and poor dad.
And I was an image of your hot hot and you're likely to -- to rise tides are -- -- -- in the market what is it 83.
Dow at least up 83 point three now we -- -- a little bit -- but really have a dialogue a lot of moving one big loser got into seeing based on what we're just talk about is connect.
-- when he did have probably in the fourth quarter following a five point six billion dollar.
Breakdowns in prior years but.
Analysts said lack of guidance for 2010 to stoked concerns they just unsure.
They don't know where first -- going and we don't give guidance it's -- wasn't even bad -- I.
I'm not -- and then the -- knows what's happening.
Wasn't scientific down it's just -- about 1% when I left my desk -- was down 4% earlier they agreed to pay.
Johnson & Johnson big -- to end patent disputes.
Boston Scientific actually also paying.
Had a bunch of -- -- infringement.
Suits going on paying all of them off.
ExxonMobil even talking about Exxon Mobil's Mobil's stock up over 2% fourth quarter earnings actually down 23%.
But because I'm -- -- dork got -- pointed out.
In the fourth quarter they paid 21 billion in taxes off of ninety billion in revenue for the full fiscal year 200979.
Billion in total tax -- that includes income tax sales -- tax -- all the other.
Taxes that they pay along the way.
It's interesting to Chevron -- -- on Friday not such a great quarter Chevron being hurt -- looks like more than no Exxon was festive downstream yet operations so it -- except with a pretty good quarter considering they've missed a lot lately you know the last 345.
Quarters they've had a few misses -- -- so I'm beating this time around solid for Exxon.
Yeah but again earnings still down.
Percent 20% yet US still I just picked.
Mainly US steel Alcoa all up today because the institute for supply management number came in good.
That's in January manufacturing index it showed that the sector grew so stocks that -- -- any correlation to that index up.
US steel was about 5%.
And number one Charles -- is here he's in -- there ought to live -- his name just data it's a funky name.
Did he hit a 52 week high today is up 8% for firms raise their price targets on it.
Is the world's largest supplier of car airbags and seatbelts how about that they said fourth quarter earnings significantly beat expectations on Friday.
Charles I know you love these little Charles -- here and us I know you love these little like.
Expectations must have been nothing for that but the ironic straining -- -- guys that like are either benefiting or getting clobbered you know.
But Toyota we -- -- get clobbered because of it because they were involved in the making the accelerator.
The new -- get others like you know AutoZone.
Not doing so terrible.
AutoZone was a perfect recession play you know people.
Am not buying new cars have to keep two car I have on the road -- of themselves.
And I that was really knows there's -- -- in the arguments in the eyes and number one of the key components to that stood -- for me in the survey is that demand is up.
From auto makers and electronic components companies mentioned that as well so -- You know pretty pretty interest thing that.
Today I think you know this year obviously should be done better than last year in terms of just overall auto -- depending on who makes -- cells we don't know but.
This becoming like a -- -- live.
Airbags and seat belts that it's not going anywhere.
-- -- -- and what car how bad would the bottom line is -- sort of put that stuff and.
Absolutely and sometimes it's a play like that it's better to you have to figure who's gonna sell the most car sacrament you have nothing to -- the other thing about that is inventory levels and and are these automotive dealers -- -- manage their inventory better.
You know Chrysler got so much Phillips are forcing -- this until I got dealerships and they had this huge yeah all these cars.
On the can make all the cards Monty can't -- you.
Did you dealers can't sell is that I think I think everyone's getting smarter with that that is you know although that was the real deal for the fourth quarter GDP number you like -- -- just real quick before we need an indecisive like I would just.
Picture a lot of -- stocks and commodities in general as -- like -- tether ball you know.
Where it swings one way we -- oil last year perfectly 147 dollars a -- -- -- -- out of 33 what kind of tries to find equilibrium but it never can quite get there.
You try to get that with the medals today because.
They all got hammered so heavily over the last at least listening -- Matt Moran whether it is US -- -- any of them.
So so like they went way too far.
Forward too far back and now he's on a day like today something as simple as that -- number comes out and on a sudden they're -- -- up five and 6% across the board.
The big they have been hot they've got a couple things we're performing global recovery and -- dollar and also I think one of the stories from the size and number by the -- -- -- -- bringing Sox.
But I want to talk about those some parameters on a broader in this event.
The input prices.
They have -- prices of all the components on the on the size and number of had the biggest move out.
OK so use him -- material people who worried about.
That's let's call yellow flag but certainly does not the first yellow flag we've seen in the last few weeks.
Everything else is up two pretty good you know did the number itself the biggest number since August.
So I mean that's but that's manufacturing and that might be the silver lining from having.
A cheap dollar.
You know manufacturing and exports really seem to be coming back pretty nice.
-- -- continued export these products will have buying them here in the US.
She didn't have an end inventory from all over again -- I'll let you can you know export them and you know I think that's also more than ministries and that there be a little stronger and we talked earlier this morning on -- about the Japan.
You know how to they have a cash for clunkers bill that excludes US cars that -- blows my mind it really really because they -- You know and and China -- is just gonna ratchet up the -- this whole thing -- you know over the weekend.
You know when we proved that -- arms sales to Taiwan.
That means more more.
Unfair trade policies come from China.
How do we compete you know that if we have -- dollar do you know the -- -- being sent exports are gonna go up a 100% in five years.
The only way that can happen really I think it's from the cheap dollar policy that he has and that will be the only pro to me than you see from.
And the dollar cheap compared currencies other than anyone because they pegged as -- -- had as the president go to China and say look you.
Have to you know get away from that because they won't still disabled -- have -- want to find out but somehow they -- do that somehow they have to you know throw -- out there whatever you know then into your point the only thing that's helped the dollar recently in his Greece.
Portugal Italy and Ireland all the problems over there the -- down eight point 5% in the half percent since November.
Nicholas let's yet they have marked by default by.
You mentioned -- yellow flag on inflation we've seen a couple of and Joey in Atlanta just had a question Charles what about long term inflation -- is that yellow flag become a red flag and will the Fed be ahead of it.
I don't have confidence in Bernanke I really don't you know his comments that the Greenspan keeping rates so low for so long had nothing to do this crisis -- Steer me so much in fact.
If I was a senator of voting on his confirmation -- probably would have voted no for that reason I would say you know what he was flat footed when this whole thing started.
He made some really dumb comments.
Right before this happened that -- had no clue I think he did a lot of good on the job learning.
But that this is the part that bothers me in the end game I don't think we're prepared for -- so.
The red flags I think we'll start to -- -- I don't know when but you know they'll become the not a parent yet the CPI numbers problems are heating up.
Wages and -- was thing and nibble a we have menacing wage.
Increases because that that's really -- we look at what we're spending but we also -- the we have to have wage.
Hikes wage increase some -- -- just -- I mean this so productivity America -- -- people working longer hours at the same amount I feel on.
Tell us about it cardiovascular work this morning on par and how.
Basically it's been useless and how -- -- needs mysteries of the mind that this guy is that is it in right that it's just hasn't done disposed to do they're still toxic assets on the balance sheets.
He said that the government is propping up the housing market basically -- that that's gonna come tumbling down.
Lisa what would -- would what's the take away from the.
And numbers and he started talking about were frightening but you know he's thrown out some pretty frightening numbers in the past 23 trillion being total that we were one point.
Liable for if everything had gone wrong with the the -- bank.
-- I don't -- for the last quarter 25 criminal investigations you know so yes criminal investigations and these banks 77 active investigations right now.
This is all accounting fraud things like that -- -- the bank's mortgage fraud.
Their home affordable mortgage program.
75 billion set aside for this only fifteen million units I -- that number doesn't it's -- sounds pretty -- it's not.
So many of these people that have their mortgages.
You know redone.
Go back into the fault anyway so that we really want.
Fifty billion of this 75 billion.
The taxpayers we don't really want to but I think -- some really shocked that banks haven't been more aggressive animal or modifying these mortgages I mean Ellison what is a bank gonna do sitting on -- how to sentinel -- is the worst.
For a -- they would love nothing more than to do whatever they can't keep that customer paying that mortgage you know that yes they -- not what they're doing.
They're being very typical -- they're telling people to go home and actually dump off on their own mortgage payments and then come back testing -- telling people.
To beat delinquent.
And then maybe we can help you get -- -- thing is backwards they're really.
Not -- it's it makes absolutely no sense and then of course.
If they give I don't know where they are now with respect -- and forcing these guys to lower the principal.
Now I think that would be disaster I want the government -- in this I think.
If you don't base and then you know the -- and in the borrowers into working out I mean Barroso is to say to listen I'll walk away.
The housing and I've paid it was worth 300 grand now -- -- -- eighty you don't wanna help me out I'll walk away from -- you could.
But it with the others that you have and the more I don't like but now well I have absolutely no leverage that some of these people have that the banks -- -- -- with them yeah you know banks.
Send them -- -- out -- we got to -- but I know but then we start with a market completely undervalued properties and that you can have these auctions in it it's nothing gets better time than that may have to get worse before gets -- -- -- -- I agree with you you know I have the soft landing sometime we need to heartland -- with -- -- -- -- teaching hey listen always that are landing when I came with -- on this for me vote that.
Yeah that would excludes way to bring a better job -- -- -- minute strategies.
There -- -- that he was CNN morning.
It's -- quick -- Jeff Flock joins us on the other side to see them.
Do you welcome that foxbusiness.com.
Tracy Lawrence Chris -- markets at 87.
Points right now on the Dow.
Kind of hovering.
For most of the day thus far.
We got -- -- any attention to one of our fancy -- polls.
Here's a question will Toyota's recall influence your decision to buy one of the company's cars.
I think this is a great question an interest in an instant to see -- responses because my initial reaction.
Is yes but maybe not maybe they fix it -- it's not a PR nightmare who knows I think -- is yes only in the short term.
I think that I think it's a lot of -- and equality comes back.
Just flat got going on now Allan -- -- Illinois he has this whole Toyota.
Motors issue covered top to bottom -- -- got going on.
-- -- Down all of the developments today is we've got a number of them but you know took just -- what -- guys are just talking about there I've got someone you -- uniquely answer that Caroline -- singer.
Owns now the longest -- the oldest family owned dealership him.
Illinois is that correct yes.
And you still not only toyotas -- we're surrounded by here but you also -- GM's secret yes.
GM -- -- -- -- yes yes you got your basis covered so you can uniquely look at this.
And say you know make you make some on the GM side from losses on the Toyota side.
Do you think that way you know the other manufacturers are trying to get some -- -- stuff that but so far we haven't seen the move away from Toyota.
-- -- and you don't Wear business for how long.
We've done it for -- -- over fifteen years here.
So let's take down the developers to -- amateur bodies up to date we talked to Jim once this morning.
The fix is and -- By tomorrow as early as tomorrow or Wednesday you're going to get manuals and -- get training right.
Yes we're getting training as early as actually today we've been told that we're going in getting this.
This region -- that way to fix the cars and that will be getting the parts.
Probably Thursday or Friday of this week so that you could -- begin doing these repairs as early as Thursday or Friday that's -- yes.
And again they're on the the Camry is one -- might be good a lot of these you know it's important note to.
I mean we're surrounded by different Toyota vehicles here that's not affected that's the four runner over there -- -- the -- not the Prius is -- The Camry hybrids are not.
The we have other the Japanese that's ERS clear the red ones yes they Garza's -- any Japanese made vehicles and that it's just the ones made in the US in the once -- -- CTS made gas pedals -- -- -- the.
Gray went beyond that that's a camera and that is that yes the Camry is affected the vehicles made in the US -- -- -- CN is now.
So -- and you'd you'd like to make that point too because obviously it has an impact on sales and I will show you showed us earlier Caroline.
This is your appointment board today this -- people coming in just to talk to you about buying a car usually don't appoint a board is totally children.
Yes on Monday we usually have that appointment fortunately.
So go ahead guys if you'd like to chime in here we've got a great source here at the at this hour -- -- just what.
-- Caroline knows me I know the answer to this but a lot of people on our border asking about fleet sales because of your enterprise or -- or hurts you -- -- You wanna say is far away from this is possible just simply because it is going to be a liability down the road.
Well Lester I don't know that you are responsible for any kind of fleet sales.
In terms of hours.
We actually do wonderful fleet business at our at our Toyota store and so how has that been impacted.
For right now we you know that's been slowed up as well but we have -- one -- the actually the largest fleet dealers and I don't and I don't.
Expect that that's going to be heard as well in the long run this -- Toyota has responded very quickly they took their time.
They found out what the correct fixes so even though this is.
Going to maybe you know they are going to the -- Dealer's hand to find out what -- -- fixes in the long run I don't expect this will hurt street sales down the line and -- -- rental cars.
Alan you're service manager told me last hour.
If someone has says -- at Toyota -- that they don't feel comfortable driving you'll put them in a rental car at no charge yes that is what we will do in order to make our customers feel comfortable.
Interest I did not know that that's been widely reported but if for if you have one of the cars in question and you don't feel comfortable driving it for whatever reason they will.
At least here and I don't know if that's true nationwide but she will put them in a rental car at no charge -- They're doing their best.
Jeff we appreciate it great stuff Jeff -- -- -- -- Lincoln would.
Illinois crossing her Toyota north side of course that's that's a great place to get information right there at the ground floor speaking with some.
But that's a great way to handle it will -- in -- rental -- -- we can fix this.
The problem is though once it that rental -- didn't want to go back.
They get will put an end Brandon Toyota something else other than naral and Cameron made I don't want to and it's Toyota I don't know -- quite right this morning.
My timing really interested -- -- My mind that I.
-- is not only -- anti anyway so call.
It's hard to differentiate itself is coming out with a little mini team.
Side to data mini iPod which may have seen him since fallen down the mini cancel -- -- -- not like its -- -- -- Red -- can -- -- there's a little smaller -- skinny -- seven and a half.
There's seven and a half ounces.
Ninety calories so it's been touted a portion control.
-- your twelve ounces -- 140 calories.
The kicker is though it actually costs -- more money on a per ounce basis about 50% more.
To go out by a little mini can code that makes sense -- -- truly a bottle was going to be less than in 99 sat right.
That begs the question is it.
Doesn't make sense to do a mini the other isn't this -- that actually thinks think it that's because like.
And what's in the senate and one half ounces is not nothing seven and a half ounces little sip vs twelve assuming it like Chris rock and many do you suck up like -- -- sit.
-- -- Not just the cup -- it's -- dumb idea wall members didn't worse than that was Budweiser.
Number of Budweiser had a -- cans in many buds they weren't stated that they were short there -- little -- And yet they relive that weren't bad enough the problem is -- you're drinking Budweiser you know I get a six pack of Budweiser yeah you don't want me.
You want to call bullets all right -- the bigger the better I can I get 48 ounces of me and I -- -- that's what I want.
Right well I guess that's my question with a -- -- then why I don't drink cokes on the wrong girl fast but he did it caught my eye because.
I'm not get -- why would you do it why would you buy it but it might work for Diet Coke I think maybe better.
And then millions of what I do I don't really regular coach you don't care about missionary and -- I was and is safer diet you -- drink a gap.
And it won't matter to you what if your regular coaching career and you try to come back this might work well we will see.
That's interesting because diet if you drink Diet Coke for you presumably care more than if you drink regular Kovalev he drank regular -- you personally need more.
So -- you know works you know it would get some paperwork I give somebody on from -- from Taco Bell that we get somebody on cold cold -- about.
I -- clay a table called -- coming Lloyd Blankfein didn't.
Or is he not airport overnight in the -- Tell the times I should say it's based in the U case in a lawyer but Blankfein based on some information that they were getting out of -- -- -- yes that you don't.
Unidentified bankers in Dallas in a Lloyd Blankfein is set to make a hundred million dollars bonus for 2000 not a member Lloyd Blankfein made zero.
Bonus in 2008 and Goldman Sachs comes out and refutes this and says that it is speculative.
The board hasn't even decided yet at Goldman Sachs about their executive compensation from last year Goldman Sachs was quick to remind everybody that not only did.
Blankfein not get a bonus in 2008 but that Goldman's ratio of compensation benefits to net revenue last year was the lowest in its history as a public company.
I answer the question is how do you feel about him potentially getting.
A bonus that -- L -- first of all bonuses that big for anybody out different Lloyd Blankfein -- care -- pay that much for making a movie what defeated Tom Cruise whatever that's way too much money.
Point blank period nobody should get paid that kind of money but -- Goldman Sachs makes a lot of money and he's a top dog.
And -- -- -- the rules if you -- if you are free markets here you to have no problem with it looked like I'm making a lot of money.
You know because it's decided by the board who supposedly put in place by the shareholders to make those decisions -- us -- they voted on it that's correct you know like assisted -- -- need to change that corporate governance just imagine you.
Sit around have the conference room table saying all of favor of 100 million dollar bonus say I.
-- -- because you know what half a few that are putting their hands and -- night they just voted on their bonus.
-- -- -- -- -- -- -- -- -- -- -- Yeah I'll give you body needs money are you a hundred that's what people have a problem with is -- -- -- around the boardroom and they say August 15 -- 75 you think you do so well this year you get ten million that they -- on really hard to argue when the -- -- -- allies -- -- if they made their shareholders a lot of money in the last year so what do you -- I know you say well you took you took government money well.
The let's be honest be Lloyd Blankfein did what was asked of them.
Communities that you -- -- is -- you gotta take this money.
And Lloyd Blankfein say you know we really don't need it we'll take it anyways -- get hammered for nine months for taking it and we'll pay the government a ton interest.
-- also -- a ton of money in those winds before we finally get out of it.
And then what's really get hammered after the fact that I understand that at all.
You know and on the board said then you should oust the board if you -- I understand that I finished up but it but it becomes this little old do you know.
Fraternity or sorority would have you wanted to be -- it -- is I'm bored with okay.
As you said you prove my bonus of -- ever goes home happy and -- you know I get to buy my wife Ferrari.
-- be unhappy with any bonuses from AIG be unhappy with any bonuses from Freddie and -- city.
Let's Chrysler GM people that still have your government money but those banks that paid it back -- -- at that with a lot of interest.
For money that they held for less than a year that you should be too upset about that that's it went on and on.
But I think that do you think.
Send -- a million I -- Just one you know but even a million out -- a couple of hundred -- wanted to do with that they would even notice I've got -- don't yet know tuna products at a mile line.
For the next you know approximately.
I want you get nothing you.
You know they like it now welcome back to foxbusiness.com.
Live -- -- -- joins us right now he's -- stimulus cigars -- -- it was a small business owner and so's business went under.
Back in 2009.
And did you get any stimulus money got -- so what does he do when he starts a new business.
Make it and sell on cigars David welcome to the show I you know and.
Thank you thanks very much for -- -- doing very well but now listed above primarily out of disgust with that our government's policies entity handing out stimulus money that prompted you to start this new business.
Well you know of of course there is 787.
Billion dollars that we just spent.
And we like to look at famous cigars as more of a public service.
Cigars actually just went through -- 700% tax increase.
So when you -- -- my cigar you're truly stimulating the economy to help pay for these projects.
We know that there's 8500.
Pork projects in this stimulus package so we're helping to pay for.
Such projects like go we've all been there were riding her bike in the rain and we think god I wish I had some covered parking to put my bike under.
The government has been one million dollars god help us do that.
So again we're gonna help pay for those or the age old mystery.
How does diet and exercise affect obesity.
We've all wondered this and questioned -- for a long time and now governments can help us.
They are gonna spend 680000.
Dollars to answer this question for us so we really feel like we're gonna try and help things.
I -- distant people understand you -- your cigars each individually have all different kind of pork spending projects on the little labels so each cigar is different.
You get to learn about all the fabulous ways that we as a country are wasting.
Money -- -- to enjoy this fabulous but the same time is that how this business started Wear you out sit on your ports open as though do you think it.
I knew some about this and I'm -- -- -- now and remind people.
Of the total abuse of our system.
Well yes you mean you have when people get together they smoke a cigar politics always comes up and you'll find that with.
-- cigar smokers and so we just thought -- help but encouraged the conversation.
And correct each each cigar has a different pork project on it.
And then we also I decided to put which makes -- -- little different we put -- hundred dollar bill the bottom we thought it congress is having a lot of fun burning up for money.
We should try pass that onto the America's system so they can get that same sensation as well.
David you've -- you operate a couple of other companies and you certainly have an issue entrepreneurship so you know more than -- -- On this is that it's a neat little thing but it by the end of the day is -- to make a pretty quality cigar and people have to enjoy the cigar right.
Correct and we did make the decision not to make it a novelty gift wrap these are Dominican cigars.
From -- seed.
They have -- nine year old rapper on -- so they're actually a good cigar that you can actually smoke and enjoy.
What's been the reaction so far positive good sales.
It's been great.
Spend of course very controversial which they think helps drive the sales but.
We've had people from all over try and they wanna collect the band's they wanted to get a picture of the label.
They enjoy the cigar we've had responses from Dennis Prager Hugh Hewitt as well.
-- -- passed out in our offices and enjoyed them so it's this thing right.
Did I love the idea.
Apparently sent to box to Nancy Pelosi had a -- go.
What we did we decided that we didn't want to let Nancy get away this year without.
Remembering what she spent our money on so -- we sent her a box and I'm expecting a massive audit by the end of the yeah.
What's your website did -- before we let you go.
That stimulus cigars dot com now I'd be -- David -- Wii owners stimulus cigars thank you simply -- And it isn't isn't price point I mean it's a box set ten cigars to T shirts for a hundred bucks I think it's a decent price point David good luck -- it thanks David.
Thanks thanks for me on I did and -- I think it's easy golf.
And you know what I love the idea it's like it's a lot like you know you have those coasters when you have a drink a bit closer down -- heavily spunky sayings on them stealing.
It's conversely music like -- if it's a good cigar I'm not a cigar aficionado so I don't really know but if it -- cigar.
If people that know about cigars like it well you know go for.
You know -- -- stimulates conversation you fancy flip flops.
-- Phillips is here founder of -- -- Dot com I got us here and that's never really stimulating conversations even -- it -- now on.
Because I had no idea even existed flip -- certainly some great conversation and she's an appointment for you yes shoes for you right well let's is not that why don't.
Flip flops to needs its old school and ice were flip flops is a kid everybody did.
Had you take flip flops and -- -- so sudden turn in an award winning new product.
It's an innovative product and we'll see how work is so simple.
It's his first which flocked to take -- -- Fixed.
Picking -- strap on.
It shows us and within seconds you have a -- often I think -- -- -- Yeah padded its star mean and what's the response been it was a high school are projects it was not homily I treated the -- flip -- I -- -- at their house literally every single woman that walked by them love them so -- feminist and an actual it's what actually store.
But can flip -- started warming earth buttons and I realize the buttons wouldn't say putt right and that's breaking -- -- -- velcro is just very simple.
Chris is not a flip flop aficionado and but I do where forgive him for it.
We're also spring and summer long but an a but I -- say I and I had two young girls go home.
They 40000 different pairs of flip flops and -- it frustrates me to go out and buy multiple pairs of flip flops but exactly there's different colors and styles of an editing so now.
People buy one pair and then they go and by the -- -- the -- twelve dollars.
-- the whole nation for twelve -- certain.
And this -- to call off it took -- That has been don't -- love the fact that frost is completely fell flat on their faces it's great for you and those are -- well well I mean and everybody knows it live and let accessories this is an accessory.
So to speak of accessories you've you've actually gone on then and said you know what flip flops and isn't enough I'm gonna have some flats -- exactly I mean I know you guys that we heels all the time.
It's terribly got up on the flats when you walk into the walking around New York to do a lot of walking in the -- I'm -- -- black -- on the -- you can -- you've mastered it you can walk around in heels you can walk on ice in -- you can walk up Mount Everest.
Handles I haven't met the most women like the flats they did they did and -- -- out.
We have and actually every -- we do have a little bit of a twist to it felt that they're flat that once again.
Irritated look opponents take after snapped.
Sorry -- it's really day tomorrow actually -- And within seconds -- -- look.
OK so tell us did you roadblocks along the way -- -- you couldn't have just taken an art project from school and band made a business absolutely there there are always roadblocks.
But if you -- since.
He really -- -- your idea you can make it happen.
-- -- It's just tweaking along the way.
Then and now a U obviously wanna sell those through your web sites -- flops dot com but you've got I mean obviously you've.
You've got to be looking at retail locations to when you talk about roadblocks how many of those have you run into -- it's a Macy's or target or what.
Right direction 4000 have been cheeks nationwide and stores and we have -- on my side as well.
Without getting into the big boys and tried that like the Wal-Mart like -- you know we haven't yet but.
I I think that this product is great because.
The cuts which isn't coming back -- so there's that customer loyalty.
And that's why we finally do really well get starts because people initially -- issue and strapped as a gift and they keep on coming back to shellac.
-- after the beauty -- writes I could see it working in a boutique to tell us what's what's the plan going forward I mean is it too.
Make this national product is it to expand the product line yeah election what we're doing is we've come out there with our new ballet flats and we actually governing majority which -- knew it was -- -- new the -- with an excellent -- -- as well.
We've also launched a -- scarf flying which are wearing today we went right scarf and act like a slap.
So we're trying to really be -- break.
Now what about.
Sites like -- us when it -- How would you have you contacted -- would you wanna contact because I imagine it would squeeze here though is it wearing your margin to be like that when he -- example -- Pretty reasonable but but -- is a great tool and you have to obviously take everything into account when you're in the business absolutely -- and how did you go about finding manufactures for these things -- that to me and that's something we've heard along the way.
I got a great idea but I that I don't know how to manufacture actually that's -- that's been the biggest challenge really has been when I had this idea I was in high school.
And I started the company when I was in college and I actually tried to contact me actually in the United States and they wouldn't take me -- you know I was too much of a liability that.
So I really having an option I literally got on the plane with my mother flew to China and found -- manufacture.
Yeah I just -- -- when I was in college can't.
Place -- order -- 5000 issues he's.
8000 staff brought an end and started selling Christian -- is thinking about what he did not know.
-- asset we have to find a -- -- -- happy story gets shot.
Mosquitoes -- This is souring was an accomplishment you know back then -- that's -- I think that I think it says something though that you couldn't -- you couldn't manufacture this -- in states.
Was it that much cheaper to do in China as well.
Yes but also overtake you know in states that count and that -- -- I can't have a manufacturing facility and it -- it was just practical side you control how do you control then you know all of it -- product is being manufactured so far away do you -- you back and forth to China.
Absolutely yes -- eighteen and we go back and forth to China a lot we're actually building our own.
Hiring a team China with uncertainty.
We will have our own team on the ground -- time.
And that's very important you have to start somewhere but as he starts growing at its peak along the way.
An order to bring -- quality.
Product -- great price we are building their own team.
I got about ten seconds bank financing and tried recently get bank financing and he had a hard time easy -- -- -- -- -- hard time really -- on the -- refunding.
If -- creative.
And obviously we need to have loans and then get right at the efforts -- thanks go good -- did you meet Charles Payne and anyway and that's again any enemy yeah.
Yeah that's -- guys I don't.
Adorable my command my girls would eat that's -- good luck next week.
I think yeah Lindsay Phillips got to switch slots go to study did get it up switch flops dot com that -- -- I could create your own little flip flop I was playing on -- before the show.
Good to see it a mile welcome -- -- nine points -- it's the.
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