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From studio C at the fox news headquarters in New York City this is foxbusiness.com.
Live Michael Jackson's -- has kicked us out of our studio.
-- -- -- -- -- I thought.
It not -- actually at memorial is not studied the back end of that.
And what did talk about the how you feel.
About Michael Jackson and the coverage of the memorial is it too much is it not and that is it fitting.
I Jon Friedman's gonna drink a little later on to talk a little bit about that the whole media swarm around it I don't think it's enough -- and I think it'd have a much of effect on the markets today.
Well you know markets -- kind of -- -- -- we'll actually -- some talk about that.
Today as well it -- that we -- to this yesterday with what the oil price is going to do what.
The dollar is going to do all of this is really intertwined and obviously with what's happening.
In the stock market so laden.
You know what we get straight about Kathie Lee is director of currency research search at GFT four axis with us here in studio today welcome Kathy it's always good to have you.
A feeling -- -- -- -- in she witnessed that -- started the show before anyone outside.
The technical problems to complain but then hit the Twitter -- that was.
That was just you may -- -- with a Oklahoma isn't well isn't this isn't that black very probably with his Twitter followers into -- -- -- -- our stage manager really put this trying to tell -- that bit.
He can convert her to Twitter.
Where you can get -- -- hundred friends.
It would that pack autographed no pressure that we don't have anywhere in any of the page that people can check out yet we -- that we'll start their -- we could go icon.
And one of the -- don't have a background I guess right are so anyway -- thanks for coming.
Let's talk a little bit about the dollar which again has been this.
But I was trying to figured out yesterday we had this conversation but chickens and -- You know what which is that is that the dollars and oil is its stocks who who is leading us here global markets plus.
Well I think -- out the main focus.
In the market is really all about that's appetite.
Because that -- ahead of ourselves in terms of the stock market rally.
In times of weakness in the US dollar also in terms of the evening bubble that we had an oil prices still -- seeing -- you know reverse so.
Of this risk appetite flat is because.
This week was that a great life and times at any meaningful economic data -- -- that -- -- that Michael Jackson.
But and -- well that means that it's tied to reconsider whether they've become a story it's really spill and -- And because the do you have your concerns about the impact of oil and so what it.
People are trying to -- -- this recovery trades -- and consolidation that's me now what dollar positive than anything else.
That's why I was seeing a lot of consolidation -- me you know little -- that -- actually consolidate well it's because.
Because they had you know a lot about selling US dollars and buying of high yielding currencies.
Because people are taking on that's they where at -- rebounding and they were really.
Willing to take -- in the investment.
But because it consolidation -- an outlet to some fun there -- evaluating their positions and thinking about what happened earnings.
You know this week next week in the following week.
And it take taking up just two possessions because that.
They are and they do it it's one of the pieces of economic data -- citizen -- -- -- you're right that we did have was the service report yesterday.
And you know is really -- that -- that you put out saying it's one of the more important pieces in your view.
Of economic data service sector's big wet part of the economy obviously but you -- you look at that is been fairly -- -- for the US considering where we've been.
Lesson number it was -- pretty did you check out.
You almost went up that back to expansion you're not exactly getting -- but a lot of other countries that they had Eddie sits back time to get that.
And it isn't whites have a sector I haven't shown -- it's because services.
Catholic -- percent CUS economy.
So given the fact that service is expanding that obviously very positive.
But unfortunately and how they might get and not accept stock as we normally see it because typically people look at the service and -- as a leading indicator.
But not cocktails and up until now last week.
And -- it.
They know what surprised that that factor and why so the -- and we act too much to it and now it's late Friday.
That next piece that data we get G-8 meeting that's starting today that commitment -- to give us a little bit of excitement.
Yeah out of but when you look at the GA -- except it would it would be used to -- all the time -- all our currency is gonna move on these meetings well that they've.
Probably at depends on people Sam you know that doesn't mean they've lost their losses of but he -- -- -- some kind of a comment that maybe moves currencies one way or the other what would you be looking for comments on reserve currency and what -- What are the big you know issues that could come out of that that may affect the market you look at.
Well everyone's looking at whether the Gene -- talk about them is that crises has -- related flip flopping on -- comments Monday to say that there.
Worried about the dollar and next day -- -- at net dollar is still that ultimately is that currency.
So that's the key that everyone's looking at right now but I think ultimately nothing's going to come out and that's because times already equaled their comments that -- comments.
Actually most of -- -- focus on these G-8 eating it on the finance ministers' meetings about the latest incident it means they have so many issues discussed bigger fish to fry.
That's -- does that -- -- -- just not something that they would be talking about and focusing on.
So usually the finance ministers meetings usually 21 of volatility -- the currency market the leaders' meetings usually.
They're just kind of making.
But I -- -- to issues they may talk about what stimulus that's something that people have been floating around because Vice President Biden.
Keep up this weekend said that he had the stimulus package that they asked what was based a -- unemployment peaking at much lower rate -- that was more.
-- that mean we knew I mean obviously they were wrong that -- -- -- -- January that said that in just for it -- life since I was getting a lot of play in other words to I know and he's vice president.
But in the news -- use -- in the state obviously got -- wrong number I don't.
I agree that you know it's not like at all but a lot of networks are talking about whether that is in this package is needed him and I really think it's not -- -- you set.
Well but everyone from President Obama to Tim -- to Ben Bernanke have a that in fact that the unemployment rate is probably going to have percent to -- if not seeing any.
Well in the -- and actually told our.
On Major Garrett during an interview today in Moscow that it was still on the table and just to bring things back around to currency what are the reasons why we talk a lot about.
A senior us in relation to currency in their -- the reserve currency conversation as well as that.
There is no indication at least at this time that there's not going to be more dollars floating about assist him and said that's -- it's not gonna be turned off.
Then what is the indications for the markets moving -- to me what can we really take from that we look at the currency markets in the stimulus talk together.
Well at the stimulus topped the fat at.
Yeah it's not likely to come any time soon.
Should actually be a -- dollar positive because you think about it -- stimulus means and to get more money -- taxpayers paying but more.
A government initiatives and pitiful act the fact that we don't need it that Alec -- -- actually want posit the ballot that he can't cool for this you know reserve diversification talk without it now.
Think -- -- all this since Jeff brought it up this talk of a second stimulus.
Which seems to be mean there's so many people to -- on -- -- at least say well we can barely pay for the first one that the people complaining about the or worried about the deficits going forward and no solace -- about -- -- the time but the fact is the worries are here already for some people adding to that seems to be wow.
Really at this point I think and that I agree that it's enough it's not -- -- -- because what we see like funding so receptive I had some number that things are getting bad.
And the one of the concerns which is the big value -- is speaking to -- and another -- positive that the US economy it actually -- weakness in the US dollar.
Isn't witnessing this guy's -- to be -- thanks -- an -- The last -- companies evidence see evidence and that's this week next week and the following week went earnings are being released what I believe we'll see.
Without a lot of companies who would damage or who saw that earnings cut.
By the spent a dollar in the first quarter is actually -- to -- reporting a lot of positive effects of currency translations and the second quarter.
-- -- center for real organic growth is that I mean we're looking at companies say that his numbers compare here of the year quarter over quarter and one of the things we really haven't seen too much is.
Is actual growth in companies that Jessica got fighting -- currency exchange -- not actual growth but we don't know that the equity markets me based on surprises a lot of companies.
And -- it could be sent meaningful surprises because -- -- Google for example.
-- well in the first quarter that that was up 7% of that revenue was cut by -- currency translation.
The first quarter the Euro dollar.
Only fell 5% the pound the British -- only about 2%.
The second quarter the British pound rose as much as 15%.
You can match against the US dollar was present we can't see what is out for the big company like McDonald's or that means that he -- really see a huge positive.
Impact from the weakness of the dollar from the attorney Donald -- All the tech companies the Burger King -- a lot of -- companies that reported.
Adopt the child up for its quarterly her.
The all the talk and -- been talk for five years maybe even longer is that hey we could do we can put up with this weakness in the dollar we probably even -- a bit but I don't have the declined to -- it.
How do you see things playing out over the next step six months to a year is he continued dollar weakness sort of -- -- some sort of -- that.
A little bit stronger will be weaker but at the end of the day we stay right around where we are now it's what the what forty -- -- -- Europe.
I think you'll see is up that this that this month and next month we'll see more consolidation.
And I did a study on the volatility in the currency market during the summer months and -- not surprising.
In June and July but hopefully -- littlest thing tired yet and only begin to speak up next what's the latter part of August.
So I guess that's what consolidation my main street eight but.
You know what it biased towards dollar weakness right because we still have almost pop ups and that's our next -- -- dollar to the death sentence like that.
And get well I think that now as we see it the global economy -- that's also going to be you know initially dollar negative CPC since -- -- -- is dying native where is his strength in the currency markets.
-- still loving the commodity currencies actually really liked it -- -- comedians on New Zealand dollar Estelle has been printing.
Today that I am -- -- Economic data added benefit they skirted recession exactly and they actually reported a nice up increase and I answered it PMI numbers -- that this morning reported a huge stop and and manufacturing PMI number so a lot of countries are benefiting from -- companies in -- and -- them -- -- -- The up initial rally in commodity prices are benefiting those the next game from the US recovery -- -- and hoping that those are probably see this that's actual dollar.
We've talked so much in the last couple of days is because of the president's trip to Russia about emerging.
Economies in general -- in particular Brazil yesterday with the comments that about that.
A nation suffered gently putting on review for an upgrade there so.
What what's -- you're cutting your take on those economies.
Such as they're sort of -- Brazil Russia India China.
And whether Russia belongs in that conversation about brick countries or as we talked about earlier this morning is just a -- -- now.
He had and it definitely -- so -- they can't because.
-- has been really meant something they are -- And -- their growth is the group of the active growth have been down GDP was.
Really liked this story in some -- a one trick -- the end with huge rally gas and oil that's really what -- the economy and yet.
Things are looking better at an oil prices -- seventy now I don't think western -- too much of a pull -- well I think you know sixties -- in the bottom which is which he supported.
For Russia but a lot of the other brick nations particularly -- The Brazilian of the hour has also spent quite a bit and that all -- -- -- hole and -- content is.
As I think that the emerging nations -- that break and at all.
What will probably be lagging behind me -- developed nations -- that we covet big example of that because it's -- and making nation for the -- well.
But other emerging nations that make -- southeast Asia have really high speed -- May not a fan -- -- -- I think it means that their belief cyclical little sensitive to what's going on and lots of other countries is a very export dependent.
So what they -- not yet sensitive as I did you not insensitive to the currency fluctuations -- now results of that.
Like Vietnam or Indonesia -- looked like things are that.
Listening to good Kathy always good information we have the whole world looking happy and maybe gotten into the act on Twitter it.
Particularly if we start easy as as you come on our show he can Twitter about it -- and now -- -- your seat and that the great.
Then maybe it's just -- -- -- Yeah when.
All right -- What is it that you go to that really putting -- happy for voting -- I -- I don't know what else the airline that was my specialty a cheap shot.
I have and I can't -- -- -- that affect.
Thanks Cathy good -- secret jets is coming up on the Obama.
Trip to Abbas Cali dates to an economic issues are on the table there so we'll talk about this to continue this -- this stuff why -- For midtown Manhattan right down to DC or Richardson standing by with the latest on the president's trip overseas good afternoon -- -- -- again.
Good afternoon guys pentagon thank -- Sure that we're we're about happy that the lights are on the computers directly at -- studios -- Internet you can see ads from where you are now and what that might be better for all of us this that they go about Michael Jackson until.
Hadn't heard that have really apparently that's because you're so focused on what the president is doing overseas it is hint that they got over there now -- His day is officially done the final item on his agenda he was meeting -- with the Russian opposition leaders that meeting has wrapped up.
It now while he waits basically until tomorrow morning he takes off before Rome where we have Peter Barnes covering the G-8.
Peter Barnes and around topless yeah what you've witnesses upside to the big -- the -- -- -- this whole I want that passion of the economy talking about regulation of all things earlier today which I thought was that thing come about like Tuesday to see the Pope played in them right.
But it anyway so the president's trip to it suits him rush hit two days in.
And now it's it's kind of try to gauge what was accomplished at this point what the White House position on all that.
Not well in the White House position in any time they don't want a foreign trip they're always going to talk up the accomplishments the big thing is the continuing dialogue going on the national security front.
The dialogue and missile security.
But what really could look at as far as the economy is concerned is that the president went over there and told them that the really -- to get in emerging market going is to respect the rule of law.
Recent think -- study showing 300 billion dollars.
Lost two bribery and corruption last year.
And the president really just kind of pushing the Russian government to respect international law respect domestic -- in their countries and it.
At least US investors have an idea what they're getting into.
A when they move into emerging markets though -- the president saying that the Russian president is doing a fine job of of receiving that -- message pushing that message.
We -- I believe that added that suspect we will figure -- because.
We -- this is if you mention.
Carefully worded by the White House today that the president is encouraging.
This type of following.
Law international line otherwise but.
They haven't -- yeah it's necessarily and so you see a lot of big corporations big US corporations going in there.
But there's no sense of really knowing what that's gonna look like for example if if oil drops another twenty dollars or you see more instability in that region of the world what exactly doing business in Russia could look like.
Right and if you look at the business that we actually do with Russia our trade with Russia's 36 billion dollars last year that's less than we had with Belgian that's practically nothing for a country that the size of Russia a country that produces oil like Russia.
There is real concern from US investors investing in Russia that's a real issue.
And so how can first of all the Russians really show that they have safe markets that they have markets that -- that have been volatile in in recent history.
And of course -- it and it goes on internationally.
-- and domestically with governments paying bribes things of that nature.
There's some real concern.
Just a little bit about domestic politics while we have you here rich and displays and the president's trip because he did an interview as we know with our own.
Our friend of Major Garrett from Fox News Channel earlier today and among the things they talked about -- the ideas -- brought up earlier this show.
Of a second stimulus and presents you believe it on the table.
That's right he said -- unemployment at 10% he's taking nothing off the table just.
About 25 minutes ago the house majority leader Steny Hoyer.
Said that team is open to the idea -- -- second stimulus -- I think you're going to see most mainstream Democrats.
Just stay away from the idea of a second stimulus right now I think Americans are a little apprehensive.
About throwing that kind of money around again the 787.
Billion dollar bill.
Mean we really not even gotten 200 billion dollars of that out the door and most of what has been spent.
Has been for Medicaid help to states that one time Social Security payment so it's not really the infrastructure spending -- supposed to be out there the president says.
He expects that to kick up in the second half -- this year.
You know I think -- that you -- here is that it brings up the idea that it you know the stimulus -- you say.
It is taking awhile to get put into -- into effect and the idea that Americans would be supportive of the second stimulus now with unemployment -- -- 10%.
This speech doesn't a lot of ways to the questions that have been raised by the first stimulus plan.
Think it you know in other words I wonder they're not supportive -- it because they're just not supportive of of stimulus or.
They'd seen it don't like it as much they thought that would.
They could be they could be.
Getting program fatigue at this point and we're talking about health care we're talking about financial regulations were talking about cap and trade.
I think a lot of folks aren't quite sure what's coming down the road I think folks in congress aren't -- specifically.
How these issues are going to play out so I think folks are really apprehensive.
About maybe all this change at one time also -- to remember this would be the third stimulus program of this recession there was the 170 billion dollar tax cut.
That the President Bush and his administration to push through with Democrats in congress at the end of last year.
Then the seven and 87 billion dollar bill and that if we're looking get a third one that would be three in less than a year.
It would be you don't actually yeah I had -- I was gonna say one more before but rich guy have actually -- -- -- -- -- one other thing.
The little off subject what we've been talking about but to me it was interesting today and he covered the stuff all the -- -- -- -- can.
At least we -- -- to some degree.
Health care that -- Rahm Emanuel the president's chief of staff made some comments in the journal today that I think I got some people thinking a little bit saying it.
Hey you know this public option on health care we're not married to that necessarily -- -- exact words but that was the implication from his comments.
-- that look like the White House little log a lot of the statement out clarifying that with the president saying.
You know we're we're behind that the the public option -- getting pressure from his own party what's going on with health care Capitol Hill today.
Will much like what the president has laid out and especially -- -- the stimulus plan.
In health care the president has laid out sort of a guideline there and communications with democratic leadership.
But he's really leaving it up to folks in the senate to write this they -- -- for health care they only need fifty votes but they're still having a tough time.
Getting to that number and he's going to sign what ever the congress is going to pass he thinks the congress is in good hands with democratic leadership.
But you still have to get the moderate Democrats on board in some cases you have to get a handful of Republicans on board.
And that's really the work that's going on in the senate right now and they -- you get the sense from the White House that what ever it takes to get this done if the president is disappointed in this aspect of that aspect.
He wants Health Care Reform passed me.
Not necessarily going to fight over every detail of it.
Race did you have to wrote him though with Peter Barnes and see who's -- -- -- round.
Well I think I got West Palm Beach last OK correct that's true we do though I resigned air that street -- in the field and Florida.
Our rich thank you so much we're gonna stay down in DCD to get just a few minutes ago operate contender -- -- was sworn in officially.
It's funny as the junior senator from Minnesota it was this happened around 1215.
Eastern time so congratulations to him -- is now basically.
In the -- so we're gonna -- got in DC Matt Bennett is the co-founder of third way he's joining us.
I get from DC great to have you -- talk -- a little bit about what's going on.
And Russia here and it what exactly.
Now that the president have wrapped that.
-- the trip what exactly has been achieved to what's your big take away from this track.
Well I think there's a couple of things some specific and some general specifically he obviously was able to get.
A -- or at least diminish the treaty -- arms control which is.
View important Burnett cut both the US and Russian stockpiles by a third.
You got agreement from the Russians to allow American planes to over -- rushing to get to Afghanistan and those are important things.
But I think more importantly for the president was setting a tone.
Changing course from where.
The direction bush administration and going in the Russian relationship.
His -- relationship the Russians I think he -- it would do that pretty successfully.
You know it's interesting.
It because we had a guest on yesterday as a former advisor actually to Margaret Thatcher -- -- -- and and along the same -- John Bolton the former UN ambassadors made similar comments.
That the timing of this -- opposite aren't different side of the political spectrum from President Obama but the timing of giving back.
In their view.
To get to the Russians on other things like nuclear proliferation is not a good idea given what's happening in Iran and what -- that that you know that the president's giving in too much when he said that.
I think that's.
Ridiculous I don't think it is giving in at all -- we were able to achieve things that were on the American agenda.
It is in America's national security interest to copy of Russian arsenal.
And there's no need for the American arsenal be -- where was over 2000 nuclear warheads.
So I think -- would very much in the American interest and obviously it's an American interest to have American planes have access to Afghanistan through Russian -- this.
So what is so I don't understand percent -- what are we really worried about when it comes to -- there's so much different -- a political talk.
That as been swarming the media every concern today like we were the Cold War that Russia -- could eventually.
-- -- -- -- be watching Russia for.
Well that's a good question obviously they're still our ability -- nuclear weapons and have the capacity to blow us up and I don't think that's the real concern anymore.
Rather the concern is the -- Russia's becoming kind of but dictatorship.
And is bullying other states particularly those in Europe they're using they're natural resources like natural gas.
-- -- -- that they do in almost every winter and there are sliding into very dangerous.
Place where -- -- becoming.
A new czar I think that's the real concern and having a hostile.
Dictatorial nuclear armed rushes and.
For show might be a bit of the stretch but the idea that Clinton's that -- -- with a power bases in Russia.
How what's the US strategy to combat that from President Obama it seems to be kind of proceed -- Agassi has to do -- talking about Medvedev being his.
His his counterpart and what have you and and just kind of dealing with -- and having breakfast that as he did this morning but it it's a tough balance hasn't -- It's really tough and the Russians are making unity easier I -- prudent I think.
Aggressively went out did photo op with a bunch of bikers.
On the dated -- for the president the -- us.
Responding to Obama's rather tough language about pollutants emitted a foot in the Cold War past and only one from the present.
It's a very good question I think what Obama's trying to do is elevate Medvedev on the national stage -- think he.
He was treating him as his counterpart which technically he is.
And I think that it's gonna take some very delicate diplomacy and it's gonna require the involvement of American.
Business interests and American people to try -- -- -- -- forward in the 21 century and not let them slide backwards towards that are czarist past.
-- there's still that the question of timing about why now we need to build this relationship with Russia right now do we need to go over.
And then do this type of diplomacy.
And with all the focus on the united economy worldwide and not to concerns about the Russian economy because of added that fragility and it's -- -- the commodity market.
Why do you think now is the time and that the administration chose to do this and is -- the right time.
I think it is the right time what the president has got to be able to do a lot of things at once there's no question he's got a very.
Very full agenda both domestically in -- nationally.
But you're simply as president states cannot let the Russian relationship go for too long without some attention -- that this was the right time for -- do this.
He did get some practical.
Things out of this like the Afghanistan deal.
And I think he felt like.
We need to pay attention to Russian now we need to pay attention Russia throughout the Obama presidency so it doesn't -- and -- control.
-- it -- we talked about it as well.
That as an investment opportunity the last couple of days you know as a business network looking at inside of Russia and I mention this earlier it's almost been it's been so frustrating for investors to look at.
This nation emerging from -- Communist rule and seeing that the opportunities that should be there never materialized.
Do you see that opportunity kind of opening itself up or -- or just never gonna happen because these political factors were talking about.
And then and you know going back -- They -- you reference czarist situation in Russia whatever the case may be but just going backwards rather than forwards as as international investors.
I think that is.
Being key question because I don't think we're gonna end up and and a hot war with the -- and the real issue is whether Russia is a 21 century country and will remain one.
As your guest earlier talking about the endemic corruption over there if they cannot get control of that and if they cannot restore some some -- democracy.
It's going to be very difficult for western companies American companies do business over there.
And so aren't Matt thanks a lot for coming -- to talk more about that for -- our viewers investing in just a moment just rushing the other emerging economies met that thank you.
For coming out from DC -- found in the third way.
Investment that's emerging markets have any question about that get on the comment board of Bergen and be back with us and Marcus talk about where you can put your money in emerging markets just -- -- he really see what happens the end scenes here.
I think it you know Michael Casey QA and he's Dow Jones newswire reporter and you have to report the news and obviously made to look crazy back -- -- I tell everybody about it.
And they -- yeah -- the best facility to us from behind.
Think that I would.
And hit a lot lately that you talk about emerging markets and where the president on this.
Which we are gonna talk about of the next few minutes Michael senior writer for Dow Jones Newswires Bob Phillips from Indianapolis is also joining us now on foxbusiness.com.
Like that -- partner for spectrum.
Management group Bob good to see you what what we start with you Bob and the idea of of these emerging nations and I -- -- take Russian first as we just finished talking about it.
What are the investment opportunities right now in Russia or are there -- Well I think if -- looking -- Russia you you have to be very careful.
You don't really have the rule long your site -- property rights.
And I think as your prior guest.
-- -- not quite well.
Gruden and the government as a whole is becoming more to dictatorial and their stories in the papers.
Russia's strong arm tactics taking companies away from -- western.
Partners and hand.
Most resumes the Telecom company just the last few days.
So Russia you can be can be very careful -- also point out that Russia's stock market.
Is less than 1% of the world G I'm sorry -- capitalization of the hole.
So it's not the end all deal.
I have a question for Michael but Michael get his microphone fixed here I just gonna talk to any arrangement of -- if that's whether the questions about.
Emerging markets and their wrists overseas is the fact that they are not the United States and they did not have the same strip the law.
And welcome everybody Nat with their stage manager here we display -- and -- -- you -- -- you know I didn't I didn't give I mean striding out my within -- much done but I thought that it stop our conversation so.
At that -- that is part of the rest it whether ignited in China Russia Brazil or India or Vietnam or seeing a pre selected with the -- -- you're dealing with different laws and how does it.
How does it vary from place to place in and where is it more severe than others.
What will the lost -- Question.
Because what's most interesting about.
We've seen dot.
-- And I think that.
You know one of the agency aspects of the past eight years we've seen -- to speak.
Rally in the incident making -- as a separate asset costs.
Is that some countries.
Had really for the first time -- would instantly institutions need to maintain stability.
-- it was a classic example it sort of analyzed.
He has it and it doesn't -- the hot things necessary to maintain.
I mean -- at -- back to summer fun place.
As a result -- they're reaping the benefits of having their -- pool finance.
And and having this it's -- stability institution now it didn't.
Oh right what other countries I still depend on they'll find and so what partly because they haven't done well you know people it is it is.
-- Michael that you bring that out go back to Bob for the -- -- a larger -- -- -- it I think it was Exxon -- this morning as a definite large multinational corporation almost positive that's a mobile that's said.
They were looking for opportunities to invest in Russia.
But you know to Michael's point -- the laws that make it very difficult for foreign corporations to come yet.
Any side of that changing or -- we better off looking at other opportunities in emerging markets other than that Russia.
I would say given reason.
Actions -- elsewhere honestly.
I would look at.
The category -- a hole.
I think when you look at the emerging markets and you add up the total value of their stock markets.
And there -- less than 15% of the total world thought capitalization so.
They they move very rapidly based upon money flows as opposed as opposed -- fun -- like you're gonna recommend it did to take a basket.
You know ATF that follows emerging markets and buying into that if you believe this is the growth story what did it mean what's an example for investor watching it once did -- this kind of path.
Well I think NET apple like EM for example right and the -- I share.
Does agree offers opportunity or -- got some -- -- and mutual funds that.
Fallen index money markets and run up a lot that or is that -- -- I'm sorry I missed plus -- a lot of the markets and I'm sure and the ETF to follow them have run up a decent amount.
Here late 40s50s they -- some cases -- I would does that scare you offered up.
I think yet to be very careful I don't think emerging markets are necessarily buy and hold type investment.
If you go back to 1992.
-- -- all -- -- nineteen or 2009.
You -- about four round trips in the emerging markets where you may have invested a dollar.
And after a period of several years your dollar's worth -- dollar again after having increased ABT two and a half percent.
So it's a very volatile area because based on money flows so what I suggest.
Especially for individual investors.
If you would have money in that area beside the percentage of total portfolio you want to invest.
And then create a do -- portfolio 50% emerging markets in the index fund.
The other half being cash and be very aggressive each month and just rebalancing.
That that next you'll find over time you get 80% return and less than half the volatility.
Like an interesting part of your your article that you were recently about the emerging markets is you're talking about where the money it.
And in Asian equity funds you said that the Japan observed about 23 billion dollars in the second quarter of Latin American central.
And Eastern Europe absurd about 5000000000 and seven -- million respectively to still as far as money coming in and out it looks like Asian markets are far ahead.
-- -- -- -- -- -- I just I think it's being hated -- -- -- -- -- -- the growth story and if you think -- This is this has been developing story for some time India -- crisis itself back in the nineties would say.
With the fallout from the prior growth and so that they've gone through these crises that that sort of rebuild this being.
That aspect of it but of course it got the the end of the -- China and that's it just yet feeding into -- the satellite.
Of course Japan as well and so it's a very big populous -- it's it's it's a and it's it's got these big motives of growth the happiness I think that that's that's a key factor.
You know -- Bob brought up a moment it would be even if she was recommending some easy TSA got to be careful.
In these markets and any countries that you're not familiar with we've -- that.
It's imminent in the crisis years and that's a good example people going to as we used to say far flung places search for yield and markets and countries -- do nothing about getting hurt Ford in the long run and one of our viewers out just wrote in US markets fall nothing.
Scared enough about them all the news we have here -- gonna bother with something that's likely be.
Ten times worse he -- how should investors is watching wade this risk of saying well there really wanna invest in this country that I really don't know too much about.
Well again it's it's you you have to -- a little bit more resistant to him do you have to think about the politics and the deficit went up about the institutions practices see -- The uniform process is gone.
But the rewards can be great reward you with the rule with -- right to be good liquidity is a key factor as well of course there you wanna look at the size of the market how much was -- through -- clearly.
You don't want to look itself up the place you can't get out and heart.
It's you know it yes I think you require is a different type of rhesus.
-- -- -- be familiar with politics more.
So so Bob that you know I was looking at for example we hear different couple different discussions went being for example Brazil are still -- -- emerging market because.
The consumers are not over -- there's nine big housing crisis there.
And at the consumer Russell -- suspend or you have that -- and not being an interest in emerging market because at the port cities a lot of businesses are going to there are theories like anecdotal.
Bits and pieces about countries if you're not looking at -- ETF -- you could be as well and that the matter whichever way you're looking at it what is that the number one thing is that liquidity.
Like Michael was just mentioning that you wanna watch for and where you're putting your money or is there anything else that you you -- keep -- -- -- -- -- -- -- to understand some of the fundamentals of that country you wanna know where their trade balance stands.
How much they happened in reserve currencies.
To back up their own currency.
And keeping that was liquidity -- -- money flows.
And that pushes prices up and down.
For example Credit Suisse wrote -- report.
This past week that.
There's been about 10% of the value emerging markets has -- into those markets in the last fourteen weeks and that's a record.
And it's been fourteen straight weeks of money -- right so.
-- -- might benefit from the same thing they did it very similar over the money managers were putting their money -- -- at the same sort of trends.
Yes outside you know that the fundamentals are great is that going to be a very fast growing part of the world but the question always comes back to -- -- -- -- paying.
And once I got ways to measure that I would be careful investing there what the eclectic let me ask you this question if you weren't looking at the United States as an emerging market and you are looking at trade balance for example would you invest in the United States from the outside looking at.
It's not based.
On trade balance that you know that -- that Matt the advantage United States has is we are the world's reserve currency right we get away with things nobody else can.
Because of that that we give literally and Navarro -- a ton more money than anybody else can without our debt be downgraded and and everything else so.
Pretty good shot off -- -- really just subways right and if we were and if we were -- -- even Brazil Reitman think Michael if we were just hypothetically speaking.
A country that fast growing one like Brazil emerging nation with Argentina anything and we did and we behave the way we have managed our finances -- -- we have.
Wiped off the map with -- will lots of.
It is a pretty good example experience fact is is I think -- wealth sends an effective but just until very recently was living this.
You know it it it has an enormous so supplied natural resources.
A hundred years ago was the it was with the seventh richest country in the world.
But you know it's never be narrowed to to grapple properly with the -- -- minds of -- -- financial system for it consists of institutions.
Reliable policies and as a result has seen its its standing in the world just constantly fault -- had crisis after crisis.
And it absolutely.
In some respects what -- and -- has done.
It times isn't being.
That much worse than what did this happen in this country and so you have these countries unfortunately.
Being behind the people having to choose to catch up to speed to the rest of the world since the turn up in emerging market for governor Sanford that's.
Far right now.
I'm against it may be having that little bit of dollar in your pocket you have hopefully again it's actually think he -- the fact that our markets remains -- -- -- that's right the old greenback.
Again -- this -- -- that again I've Michael outline again.
Studio it was a -- thanks for joining us as well Bob Phillips thank you you know it's.
Our -- so that's that will what we're gonna talk commodities here.
We also we're gonna like you said at the top gonna talk about this Michael Jackson.
Issue and that Canada business prospect for the media organization's point of view of copper and today as it seems like everybody but -- -- But -- government that that we'll talk about that later commodities that its interest that this is foxbusiness.com.
-- -- talk a little bit back commodities now know -- better really talked about it with Sander was on our show yesterday back again the -- got element commodities alert -- -- -- that -- three might actually it's and it was out there on the floor and the Chicago mark actually you in this that he's not just talk she's doing.
-- -- I don't like that yeah.
Yeah so many on TV that are the other anyways indicated that -- anyway.
Since theater where you pick up this story because it's a little inside baseball bat that the FTC.
And what this actually means -- -- -- that's about.
I can make it very applicable to everybody is listening right now you drive a car here very much influenced by the price of crude you heat -- home.
-- in the northeast you're very influenced by the price of natural gas.
Well as it stands.
There's no limitations.
That I this CFTC.
On how much these big speculators or financial companies.
Can trading in those markets.
Says we talk about crude oil prices reaching record highs.
There's a lot of -- being put on those speculators in the market for why you last summer we're paying over four dollars a gallon at the -- For gasoline.
That is of a lot of blame right now on the fact that there's no limitations on -- trading the only limitations set for those guys.
Are set by the exchanges themselves.
For the news today is that -- -- if he's he the Commodity Futures Trading Commission.
Is going to be holding hearings Gary Gensler the chairman of -- -- is going to be holding public hearings to hear from all of us the consumers.
You hear from the businesses that need to use these commodities right and to hear from an a lot of the speculators and investors who might be angry at what's happened okay -- Well I've put both sides cited for me Sanjay if you can still flinch and come out of the moment just a little bit of foxbusiness.com history for those who watches every day.
Member of our friend bond guy on our viewers got into I don't care -- and our loyal fan bond guy right we love bond guy he's -- -- -- watch the everyday problems.
He got into a little fight with Phil Flynn overall the comment more about -- -- they -- do it again here and then what they'll come back out.
But the two of them are gone back and forth about speculators Rosa which is exactly what we're talking about today essentially -- I'll lay -- -- the -- Sandra and the arguments that are being made here just to get heated.
As we saw firsthand and then we'll talk about with them.
Very very easy way to put -- -- it and it includes both sides of the argument here.
Is that no one's really objecting.
To the financial companies being involved.
In these markets.
He argument here is that sometimes they take positions that are too large.
And these markets -- actually create an inefficiency.
In the market so for example if you're -- -- the world in your find greens to actually make your food stuffs.
You might be really angry when a hedge fund comes in and with a huge.
In the -- market.
And -- is the price -- the -- that you actually need to make that good but they're never even taking delivery on that court they're merely speculating in the market.
So it's not then nobody wants those financial institutions to be involved here -- perhaps just limiting the degree to which they are and.
Are -- -- Phil thanks all of us is he ready I think US sales of -- -- thanks and I think yeah.
-- -- safe they'll argue with the Chicago -- -- He wouldn't -- -- -- my witness I'll Wear it during a you have got the FD bathroom they are ready -- -- -- that the clintons have really -- -- tell -- about.
Great that a guy like.
Equipment that we got the government run in the oil company to adapt the government run of the car companies you know now they're going to be -- -- -- Monday Akamai.
God -- the ridiculous here.
-- now why do we think that federal governments get to do a better job.
Then the exchanges and setting speculation limits you know and it you know -- -- just yet we have meet people that aren't adequate level of guys played by -- that's not yet.
Wait at -- -- young and I think that I have habit up but yeah if I can jump and -- assure you wouldn't think that we've been looking at bill is and I'm looking -- over last year's -- is the evolution of dark pools with the that would essentially allows.
The large investment firms to trade huge blocks is stuck underneath the radar.
Normal trading a little bit it's though it's a way to keep that for the price protected at the stocks that is good at bats this so.
I'd SEC if imagine that they're gonna look at something like this -- even this very similar to that it just making sure that we're monitoring.
These huge massive blocks of stock or better trading.
I've between large firms that the average investor doesn't get the -- Why you know it's different with the futures that they get to see everything that's that's straight -- black trading I don't think is the -- I think that thing that has been criticized.
And the ET -- the long only funds -- -- you know supposedly encouraged people just to take long positions.
In the futures markets and hang onto that.
I have a message for everybody guess what when those.
ETF fund buyers buying into loyal or gasoline and use the futures market is ahead.
Something you have to sell the contract on the other side this is always a zero sum game for every right by -- there's going to be a dollar.
And for every seller there's a buyer -- Listen I.
Can tell you quite frankly that.
The effect on speculation.
In the energy prices.
It's been widely overstated by everybody had guys that supposedly know watching this market it because I think -- -- a distinct.
Of the fundamentals.
You know we -- -- that -- in oil prices got a 147 dollars a barrel last here.
You don't think that it was because we have the biggest.
Financial shot to the economic system since the Great Depression.
And people -- run into oil as a hedge against bank failures they're buying oil as a hedge against the falling dollar not knowing whether it could be worth anything.
They were by an oil.
Basically because there is a false assumption that this sort of credit crisis with the US problem and we continue to -- with that but if we.
Did not allow one speculator to buy you know contract what -- believe the prices would have gone.
All right conduct our viewers are gone not here on this though they have a lot of different up on how you go down chatted I think degrees of Phil nobody -- talks about the fact speculators drive down the -- also.
Dark -- question the -- a product that's a lot of people talking you know another way for big money to have an advantage of the retail trader according to Paul now bond guy has -- -- so you -- he did you credit.
Saying that there's more transparency and features the dark pools so he's giving -- -- on.
Bill but he also he says when there was no speculation limits in the stock market.
The result was the Great Depression making the case for limits on so called speculators -- guy is.
I don't see the correlation to be honest with -- -- you know listen -- oil prices.
You know are not like it's not I mean you know at the end of the day they're gonna go while they're gonna go down the reflection of economic growth that.
You know in and of themselves.
Oil prices aren't the economy grew up listening to the economy Andrew at Ohio just wrote that stopped got stopped the speculation for thirty days evaluate the effects like but the markets look like kind of like we -- -- short selling and then go from there.
You do that I mean you know it depends on what's gonna happen over the next thirty dad.
You know but I'll tell you this if you want to know what could happen to be the worst case scenario.
You know let's assume that we stop speculators.
From trading the market's first of all it -- to be a global stop.
They -- every dollar that doesn't get invested here it's gonna be invested in Dubai.
-- it's gonna be invested in China somebody out but let's give them the benefit the doubt let's say the entire world that no speculation.
In the global oil market.
What do you think the big players are gonna do now they can't use the futures market.
To hedge their risk if they can't buy oil contract.
What are the big money guys get a -- elements you're gonna -- better to -- They're now let's we -- speculation overseas -- for those arguments.
The body every drop a -- -- gonna hit their reward supply.
Take it off the market.
You now because that is -- to be com.
-- currency in and of itself you know.
The reason why we hang out.
The fallibility supplies willing to futures market in the transparency of right you know we take that away.
You know we conceived.
A crisis let's.
Go back to a year ago when the banks start -- the -- people were panicky.
They were buying oil let's say oil prices went up ten bucks round you know eighty bucks -- -- hundred bucks and they said no more speculation.
In the big.
Later Monday by a well they would -- the actual contracts.
The actual -- put it away and then people when they needed while they wouldn't be able.
Problems -- is kind of lighting up I'm having trouble keeping up with comments suggesting that a lot of times when that it will we get a on the subject defended it.
You -- in in one direction and everybody sort of agrees with -- each other but today there's a lot of back and forth like this what's it like on the floor fell out here that.
It up pretty much everybody down there as opposed to something like this because of the effect it would -- your business but if you could just you know it's come up in conversation -- -- they're not really.
It's not if they're they're opposed to not be -- -- -- it's gonna have on their business.
Big because in effect it could have on the global economy.
This is gonna hurt the average per cent.
Listen nobody likes that pay high prices.
Nobody likes to pay you know high gasoline prices but they're a necessary evil if we go back to a few years ago.
When global demand was on fire.
And you know China was consuming every drop of oil that we could possibly produce we didn't have enough refineries.
You know you know what we -- the price of gasoline at two dollars and -- what.
We went in and change our consumption habits we -- run out of supplies that's what the markets do.
Listen the markets are just the messenger that buyers in the -- you might not like what they're saying but there really are just reflecting the true.
Fundamentals of the moment -- at least the perception.
-- of the moment of supply and demand.
What about me you know -- your we should ask the speculator like you feel what do you think.
Where you think this out oil prices going.
We haven't had -- you know -- I was what do you what do you make of this -- had a funny.
You know I -- -- -- -- less than -- -- in the end we just scatter report from.
You know the Department of Energy they're raising their demand outlook going into the end of the year -- -- in their demand -- the price forecast going into next here.
-- from the big -- long term.
Oil prices are probably -- higher but he dismissed that that.
That we have seen you know kind of a seasonal top.
The month of July and -- how many times as well hit the high in the month of July.
Pulled back you know only to rally again August until the end of the year I think right now today I mean.
-- -- in this light volume there's hardly any trading that is slowly ease in this market down.
But it's the type of thing that -- -- up you know five dollars.
I really think that right now we're trending down a level that we're gonna test a sixty dollar a barrel area.
But it's it's a market that will turn on a -- and I think the first time we get a little bit of bullishness to think it spiked up.
Really quickly one thing that could do it as you know another stimulus package that's.
The -- bill how do you feel about my -- -- In debt that our poll question out of here say it it's you might have John treatments I want to get your opinion area.
It should be however he was that I -- it's too much coverage there's bigger news than it should be covered on entertainment outlets only what -- Now.
According to my nephew they're not covered him enough how.
Don't really care come on hey I remember Michael Jackson -- you know.
-- -- eighty -- days that's my Michael Jackson you know I kind of lost track of on the line here at -- without my my my nephew is.
Zelaya -- back to back then let me see probably -- -- probably around thirty dollars a barrel back in those days when it tiger you don't know if the Thai army and now back to my nephews porosity he'll never get over.
When he -- today and -- of the Bill Clinton got Wednesday.
Anything felt very youngest attacking these guys today I felt great -- Do you think we have.
Take care -- -- talk to you okay we are gonna get into the with a bit you know the basic question about Michael Jackson and it's one that tell all media organizations I guess go through to some extent -- -- how much should you cover something like this and it comes at a time when the media industry is obviously struggling with the with -- a lot of other things in the industry's been -- Hard right by and we'll -- terrible economy.
And what -- -- -- to pause for a second radio Monday Johnny without that there's a whole lot on the -- the head wind will be we'll be right back here.
-- answers questions.
Sitting on treatment here from want MarketWatch John angry happy during an immediate -- expect.
-- to call her and the Michael Jackson memorial.
Just not what what is your reactions the way that the -- and insofar as.
People want to Michael Jackson hit at a news Michael Jackson or Sarah Palin last week but Michael Jackson is the news -- -- -- in full detail I think people are doing.
A pretty fair job -- the sensationalism of course that is crazy life but I think people are trying really hard into the finances.
And the family and health issues which are important.
Yeah as -- look at us a shot the Staples Center where -- memorial be held and of course you know everybody be covered that included Fox News in depth here.
Today just a few minutes -- I want to talk about some of the issues of balance and you know how the story -- -- into -- and -- and you don't vs what's happening with Michael Jackson but -- -- -- To the chase a little bit right at the at the outset your job is that.
A lot of this is a business decision isn't it to some extent an immediate -- to talk that the beauty industry and maybe you whether you know what whatever period it's going through.
Michael Jackson and the facts bear this out there you know was huge in the ratings on the day that he died the ratings went up.
Big time all they -- all the cable networks.
You know and I really like and on the web especially CNN which is lower ratings usually but they spiked up above -- even.
Because you know people go there for breaking news for the fox ratings went up even MSNBC's ratings went up you know that the people want to -- time.
You know -- this is a story that you can't get enough of from any kind of aspect of his music his health.
His controversy his family Jackson 5 Michael mentioned before this is forty years he's been -- -- -- -- forty years so.
He's been around for a long time for anyone know all about the -- -- -- -- -- idea that has ever had the should what should we cover everybody -- the right to what should recover well -- -- as he -- -- -- breaking news that we've got to cover the news and you know recover what people watch -- what people interest and didn't want to see if nobody watched it over the weekend after he died on Thursday.
-- -- -- -- This is a story that has legs and legs and -- -- because Obama's Russia right now negotiate peace -- -- time.
And this -- the biggest story for the moment and Obama's trip to Russia because.
-- -- in the and it will all this important stuff to them.
He has that -- that that Twitter to get instant feedback about -- Michael Jackson the coverage -- -- -- a lot of very aggressive responses back saying Kaplan fox is covering and it's.
You know it but it wasn't even that got out there watching had you got it exactly right it's still.
What what happened in paerson they'll kind of where the story -- here because we've we've talked on the air before about saying this is similar to when princess di.
There was a memorial for her kids have the coverage you see in magazines and -- different bloggers in those days -- interesting so how does that change things.
It changed everything because people have an opinion every single person has an opinion which -- gonna count sooner or later.
About his health issues but the family about the money.
The money is brilliant instinctive because he's a very wealthy guy obviously almost 12100 million dollars in debt would be so we're saying so the money is huge alone but.
Health issues the drug issue is it's it's a freak show for the -- and want to follow here.
What do you think its story that would take its office what what would have to happen where we're every going from here to take -- the -- here.
Pivot to go before Wednesday as they have a resigned on Friday evening that was the biggest story of the moment but he got -- -- -- back from the Sarah Palin on site show.
We're taking it to go back to the point Bob.
You know ratings driven vs the journalistic standards or whatever you -- -- call it out what's that it is there a balance for news organizations right there and are they striking that balance in the same way it -- again this is news people forget that this is a very important.
Person people's lives is music.
-- is our society influence dancing all of that played a big part people's lives so you could hear the question about that and when you cover the news we -- ultimately fair -- when you do it right how does the coverage been.
At has it been too positive about somebody who's you know -- is is mixed at best and there's a lot of other issues Michael Jackson the allegations.
You know child molestation and all these other things has that got enough coverage.
In what actually look at Michael Jackson's legacy right after his death or hasn't been too much about.
You know going back to still listen to the old days were -- and ABC 123 I think has been pretty fair -- plus the man's gone.
What happened before it's also gone people want to focus now on but the call deposited his music in the digitally or should -- I think I have a vote obviously hits is that is a public figure cover his whole life.
I think we important thing -- to remember that the positive aspects of his life if people want to celebrate his life not not mourn his life they wanna celebrate his music.
Apparently -- -- media journalists you gonna do that it when there's -- this any different angles of the story is sure.
They're just athletes show -- I think people and cover all of you cover.
The the grisly details of the child molestation issues as well as the book the music fame and the money he -- create he made.
I think cover all that I think what people want to see is with a positive stuff but it's been there enough.
Get that sometimes -- you guys think as stated that it that you get this kind of like losing.
Emotion and sympathy that comes out over the media and it becomes -- That's where I think looking at a appeared ready.
Get a little over done at the same time -- was still the biggest probable time we have all taut thriller is number one -- that's a pretty important milestone for music as well.
I think you cover his whole life and death I think is important to -- unthinkable wanna know about no more about.
I got the money but how did he die of all the drugs in his system if there were -- and probably their work who was by his side who has been with the doctors and all of this.
What about his such children people one though but this is well and you can bring -- -- -- -- but the news values -- -- really strong here what if -- job so it could -- that's well of course I'm not -- But I did -- good job -- is trying really hard to be comprehensive it was struggling hard to be fair.
And I think again people want to -- that one another one though.
-- -- -- -- And what was left is like in this concerts -- think it was important to lose the concerts in London.
But it was killed him with a stress of constant because I think he took these drugs to calm down relax his concerts -- -- -- -- his -- what and then possibly why there's so much to get into there but.
I guess you leave here go watch the -- -- Two and you know that's your job.
You know shepherds that kicked us out of our studio so it could cover Michael Jackson -- know he had I didn't know he had pulled the building -- idea rate cut could have.
Thanks John thanks for pleasure Tucker Jon Friedman -- MarketWatch writes about the media as a senior columnist there all right so I'll -- Wrap it up from studio city the beautiful studious.
If you're -- your pages -- that they would be Friday it -- certain dates to spread today.
And technical problems that apple right -- -- -- by way that everything will be okay and -- -- Jackson memorial will be over time but I don't think of this.
I thought about.
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