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-- -- -- -- -- Got a smile on oh got to look shiny -- -- -- almost -- either way yes.
Sweating -- I'm sweating out the smartest down eighteen points.
Can pick out and we -- say.
Pretty much at the opening at FedEx wasn't in good news warned them across -- it's -- so.
Market came down meaning to good housing numbers again.
Well OK look the president spoke last night and we didn't go down -- you know features were you know hovering around flat all morning long and then.
The opening bell we didn't really take a dive.
-- bounced back a little bit not great housing data.
Not great numbers from FedEx -- so it's on the economy and we down twenty points.
-- Dat -- -- him down so that'll that'll apples and gaining another three gallons of these analysts this is apple can do know that like I said before.
This whole situation -- apple and the people not be able to get the local pre order the iPhone four on the eighteenth -- website and by the way they suspended pre ordering.
On that website because they can't handle the volume.
Although I I we work with somebody here Henry who works on the web team who couldn't get through on the AT&T site so we went to best spot.
Bloody huge shield from best -- I just threw out there went to best buy and went directly to best buy and and pre ordered his iPhone and I -- -- 124 we will get on the 25 he told me -- -- getting the -- -- get the iPhone four which -- the really cool but that I think that that part of it's all part of Apple's plan.
Does it -- get a diabolical plan.
To take over the world.
How is it to -- Robert and myself have no interest in the -- now.
Now what you don't have just give -- -- -- I haven't that Blackberry.
Let's -- that counts it's just a little bit of different things it's a bit but it's an EU Europe this technology -- thing.
Any -- Spain and we can talk about that with Sam.
We'll -- so Walter and his -- he's chief investment strategist Standard and Poor's.
Joins -- and yes and the did did appear like we had a whole lot to cheer about today.
I was thinking we'd be down especially in light of the fact that over the last year and a half anytime the president speaks directly to the American people seems like -- a little bit of a sell -- and we and that's got to be encouraging.
-- -- Chris yeah I agree with you I think basically.
Based on last week's market activity.
It seemed as if the market was trying to set itself up for a bit of a rally.
And that we're getting that we saw a nice move yesterday today you could almost say that.
It's a little bit of profit taking but I believe that as you were mentioning before that because the market really does want to hold up.
That at least over the near term Republican is -- a little bit of a -- counter trend rally from what we've experienced so far.
We got the homebuilders down today though.
On that the supplies down today -- on the housing news.
Mean that's got to play into this picture it's it's it's almost like they are pulling back this rally single handedly.
Well it certainly is because I think investors are saying to themselves we know that there are problems in Europe.
Concerns about Spain.
Following on to the concerns about Greece will that turn into another credit crisis.
But then they keep saying well thank goodness the US economy is doing well.
But that when you get data like we got today regarding the housing and also on top of some of the retail sales data that was a little bit disappointing last week.
Investors are sort of scratching their heads and wondering gee do we really have the staying power that we were hoping we did.
What do you think I mean do you think that we've we've hit the bottom of this correction now we.
We could have another leg up particularly with corporate earnings coming up in about four weeks.
I think that from an economic standpoint we are definitely in a half speed scenario.
Our belief is that the US economy will grow at 3.3 percent this year.
Which really is substantially less than a more normal 7% that you would see in the first year of a new economic expansion.
Corporate earnings are expected to be pretty strong we're looking for -- 44%.
Year over year increase four companies in the S&P 500 but that's mainly coming off of a fairly low base so I would tend to say that the jury is still out as to whether this correction.
Has fully run its course.
And as I've said before.
My belief is that that 15% decline line is the line in the sand and 82% of all correction since World War II turned around before that level.
But if we do slipped below that level meaning we lose more than -- 15%.
From the U recovery high -- that we saw in the latter part of April.
Then now the chances swapped to becoming greater for that for -- slipping into a new bear market.
Then you can't hasn't had this great rating systems he can help you screen there's got to figure out what's next so what's next what where do you see the break -- is it.
You know are there certain sectors in particular to.
Good question well I wrote an article on Monday.
Talking about ready to rally indicating that I thought in the near term anyway that the market was like the new experience at least to counter trend rally.
And I said so if you want to be participating in this I would say go to those groups that have been beaten up the most mean in the high beta -- that had been.
Pummeled because they're the ones that are likely to snap back but put fundamentals on your side select those companies.
Within those groups had been beaten up that have the highest -- stars rankings are for me to buy -- five needs a strong buy.
So look for those that have good fundamental.
Reasons to be owning them the rather than just buying anything that might go up.
You know Tracy mentioned Spain.
We have you know news on austerity measures in Spain.
And in France is well before the opening this morning -- -- what are you are you still keep it as close an eye on what's going on -- -- do you think we're.
Where do to have major fluctuations in our market based on what's going on there.
As we have seen over the last month when it's continue with that.
I think you have to keep the very watchful eye on Europe Europe represents 25%.
Of our exports.
And also 20% of our imports.
Europe is is you know -- fairly large contributor to the overall economy of the globe.
We only expect about a one point 2% increase in real GDP for Europe this year and even that number is under question.
Certainly that the biggest country is Germany it more than 20% of overall European GDP but France is close behind.
Spain is number five at about eight and a half percent of European GDP so.
Yes you do have to keep a watchful eye on Spain.
When you look at Portugal at one point 3% you look at Greece at one point nine.
They're a lot smaller so they have a much smaller impact on Europe as a whole but.
There could be concerns of most of the European growth is focused on supporting these countries rather than stimulating their own economies.
Seems you -- all about future regulation and how that's gonna affect affect this recovery you know we have the president talking to BP today what does that mean for our energy.
Policies going forward of course financial reforms on the table where does that leave this you know the market going forward.
Well -- Have a very bad short term memory so I've use the the letters in the word fear to remind me as to what are the concerns that investors have.
-- a financial reform legislation.
He for environmental impact of the oil spill.
A for the Asian tensions not only in the Korean Peninsula but also with a Chinese housing market and then are for that the recession prospects with a chance of a double dip.
Because of sovereign debt concerns.
I think certainly we are in the mid -- election cycle and so congress wants to put something through so that they can go back to their -- and say look reelect me because.
I've put health care up and pass something and also we did something with -- financial reform legislation.
So hopefully they won't make too quick -- decision.
But I also believe that because the clock is ticking that maybe it'll be a let a little bit less onerous than Wall Street worried about early on.
-- just coming across the wires -- to New York Times BP has agreed to put twenty billion dollars in escrow I don't know.
With the stipulations behind this whether it's open ended weather could be more than twenty billion down the road.
But what do you make of that and what do you make of BP here they are heading down the road to bankruptcy I know it's it's got to be a ways away because it is -- the sheer size of the company.
But this latest move now what do you think about BP.
I don't follow BP so I really can't talk specifically about the company.
Other than saying that you know it is what it wants to do what it can to make sure that.
It it puts us as much back to where we were prior to -- -- And I think that it sounds as if any way that they are working in a good faith effort.
We are still recommending several of the large integrating companies in particular.
Exxon and Chevron.
-- as one that does have a good a long term track record of increasing earnings and dividends and is paying a dividend in excess of 3%.
Santos took it to see you and I remember when you and your -- on our we have a father of anything one time symphonies we -- that happened but it pays well and you.
As well be coming weekend.
And I watch Fox Business due to birdie on this Friday he and I will be there again -- all the things that annual Father's Day couple get lucky -- I think the fans -- -- -- investments that this is standard imports thanks for being on us there my pleasure thing.
230 on Friday so then obviously.
And yet a bottomless and -- be -- -- -- -- then right right and sat down to ticket and I think actually they do this every year so it's pretty cool it's an annual thing.
Obama -- taken with -- -- I just mentioned about BP cocaine.
According to New York Times V twenty billion dollars in escrow which gets -- gonna join us on the other several get a little more detail.
On that so don't go if anything is who controls no no question.
That's we need to we'll get back.
Backpacks dot com live as Chris mentioned we just got some news on BP.
And what it's doing putting some twenty billion dollars in escrow fund we're gonna would -- to rich -- now at the White House who's been standing by covering all this race.
New York Times is reporting this what I mean you know anything else further about it how long who controls the money I think the big question.
Well this is why we source information in the White House is telling us there is no deal yet and doesn't.
Rule out that there is it twenty billion dollar fund and that they will -- will agreed with twenty billion dollar from the White House is telling us as of now.
BP and the White House have a -- -- deal on the sides of that fund or finished up the parameters on this and they also have to.
As you mentioned Tracy figure out who's going to run this if they do reach an agreement and that's why I believe my last count was about five attorneys -- it's.
Yeah that was my question because I was watching as they entered as they arrived earlier this morning and it wasn't just a -- word.
And and I had to respond very to me they had -- whole entourage with them -- wasn't a friendly let's sit down over beer kind of a thing like we had a year ago this was lawyers.
And everything in for -- short of the -- as it was.
The must have been a lot talked about.
Right and and it's also.
If it's gonna rain so it's not the best state for yourself going picnic table in the -- but.
But you know it's not only BP that's Bryant's attorneys the White House has its council there and and it's all about.
What legal authority the White House has to force BP to create such a find and really there -- number of folks who were saying.
The White House doesn't have the authority.
To force BP to create this -- it is something that.
BP in the White House are trying to agree on they're trying to reach a settlement we're BP would voluntarily put this money and and in the White House -- have to tread.
And dragged BP to court to force them yeah I think that.
The phrase of the White House -- used or officials and uses it there's a legal authority not yet defined.
It gives them the authority to force BP to set this stuff so when you're going to court -- that.
You're in trouble you want to do this voluntarily.
And now we have hearings again tomorrow don't we.
But at -- again CEO you know of BP with Stupak marquee Waxman I mean you know again is this going to be the same thing that we've seen in the past these guys asking these mundane questions.
Trying to figure out something they don't understand.
-- you know it's it's a one witness hearing.
You've got Tony Hayward first.
Public appearance before a congressional panel like this and and he's really been the face of this.
They'll most likely ask him about -- the comments he made -- in his life back heavy.
They don't eat eat -- you've got lawmakers who.
You know sometimes they come and they asked the same questions over and over again others want to make a name for himself that wanna make the evening news.
Most of these.
Hearings are are are really for show they get the information before hand when they subpoena the documents which is with a birdie done.
Ridge -- real quick that how long did the meeting last today -- -- he say anything upon exit.
Well I believe in let me check it still ongoing -- the White House so -- -- the west wing is right there.
And and there's probably about three or four dozen reporters and photographers waiting for BP to emerge from here and so you know what what were over there to China to make sure when they when they comment -- if they comment.
We've got a -- -- and -- -- at that stage I gonna pay a guy who -- So Isabel attractive it is about two hours now and counting with -- -- -- -- -- we originally thought this meeting was no I was thinking was good for whatever reason and he had just heard.
Wrong information nothing -- it was going to be short of the two hours and counting there at the white house with.
As you mentioned call on -- Stenberg Tony -- that's the chairman and the CEO.
Respectively and lots and lots of attorneys on both sides in this room.
Believe they would have he'd gotten out that's supply -- -- thanks again I.
I don't know if it's -- because if it's if it is to get the government waving excuse me but twenty billion dollars and not an open -- them out that's my point of fifty they go to BP and say -- twenty million dollars covers it will figure out how to spend it -- now I know they have litigation that could take that beyond but as far as the government wanting money to pay -- twenty billion dollars that's it it's not going to be thirty -- -- -- fifty.
Twenty billion dollars -- might say.
Okay I'll sign up -- -- -- million.
They let you would have because it's not one monies fungible so that you know my -- an end of the like -- security fund.
And it's gonna be done first of all there's that they don't know how to manage money Dan let's whether it would let's Louis at.
And he also know that after the twenty billion is wasted way didn't come.
Acting VP form but I also think about this as they come out of this today with outs.
That agreement and BP says no we're not putting twenty billion dollars in there in the public opinion is BP isn't playing ball -- -- -- lost ninety billion dollars a market cap.
Twenty billion dollars a market cap.
Could be right around the corner and certainly the income.
While -- spending a lot more money the income is coming down -- we talk about cash flow all the time on this thing.
You know I mean it's.
It's better if they come out of this without putting money -- the way I from a from a PR standpoint -- yet another hit but the.
I think that's why they do I still say and stick my guns.
Do what I love Marx style and then I have some way to get to a call mile high and it concerns what's the skirts a little bit later on in the show I love -- But not I would go back to DC I believe one -- Tate joins us he's vice president of banking and securities for the financial services roundtable and he's talking to us about.
This credit card interchange -- legislation that's currently on the table Brian -- -- to the show.
Hi good afternoon thank you for having by senator Durbin has.
An amendment here -- this credit card interchange -- That is confusing to me tell me a little bit about well first the balls are listening using a setback tell me about what the interchange -- legislation is all down.
Sure it's it's this is very timely right now the house and senate are going over the -- reform bill and I think the top of the conversation I think it's important to remember that.
Interchange fees played no role aren't really shouldn't be part of the -- reform bill.
And did not -- but it ought to the economic climate that we're currently experiencing.
Very at a very basic level interchange fees are the -- that.
Merchants pay to participate needle it used cards credit or debit.
And and they give consumers the choice to use whatever payment options they would like when they go into the -- make a purchase.
That's like Antonin consumer.
I get to feel that discounts think.
-- we'll be and if you're consumer.
You'll be impacted and in a couple of different ways the first way you'll be impacted as the amendment.
As it stands now -- and give merchants the ability to set minimum to maximum is for credit card use.
So if you like pink with your credit card and you like to make purchases.
You'll be severely impacted if you're like me you're coming home from school.
Or you're picking at your kids -- -- racing around town after work and you need to buy gallon and how can I know it's 250.
And the maximum at your local convenience store that you like to go to is that ten dollars for parties you're going to be impacted two things what happened -- either walk away from the purchase or.
You'll have to buy things in the store that you necessarily don't want.
On the other on the on the on the other -- you well the maximum part.
If you go to a big store.
And you wanna make purchase of the TV -- -- -- will impact you because they'll set a limit if the limit if the TV is a thousand dollars.
And a maximum 500 dollar seizure own car that you want to use.
You'll be prohibited from using a -- above that level and you'll be steered by distort two former card payment that will benefit them.
And probably will not be your preferred form of payment and consumers will be forced to use whatever card or payment method that that the store prefer.
Why don't we already have minimums in place because -- -- the -- a letter on the corner from me in the aren't I think it's.
Twelve dollars or fifteen dollars before I can use a credit cards and is that illegals already do that.
It's usually in contradiction at the -- appointees in contradiction to whatever agreement that -- -- with their particular financial institution.
But that's a very good point because what's gonna happen in the real world setting for this amendment is once it's implemented.
Is that you won't have anyone policing that stores so the medicine maximum as the -- written -- doesn't have any limits or ceilings and so that -- maximum theoretically could be applied from day to day store to store and quite honestly to change out our or from product to product.
And today except for that limitations.
On spending good for the consumer yes.
No I think this will have a disrupt consumers it will take away their choice.
Of payment if you wanna pay with their card or debit card or credit card cash it will disrupt pricing.
And I think at the end of the day it will penalize consumers and force consumers to carry cash at all times -- you never know.
Well what the minimum on threshold to use a card will be at any store in -- will undercut the convenience of using the -- in the first place.
Senator Durbin proposals well doesn't that also set price controls -- -- in the Fed essentially a but I believe he said quote reasonable proportional charges for energy king's legacy gives them the option to save what's reasonable what is it.
That's it that's a very good point -- and then -- -- language that says reasonable and proportional.
However that that lane which is undercut if you read further along in the amendment by language and further down in the same paragraph of belief.
-- -- on the same page that says.
The Fed can only consider the actual cost of one transaction from moving need to be.
That's a very limiting definition in terms of it doesn't take into account.
The -- -- transactions that merchants experience to -- transactions that merchants experience.
The increase in sales.
It it doesn't take into consideration fraud.
And I did it provides for no I guess about profit margin -- instead of 22 two networks or -- card issuers.
Yet you know I tell you this there's.
They just very things in this and that if they weren't obvious and I find this whole thing sneaky.
At the end of the day and -- and fair Brian appreciate you explaining all this to us.
There you're welcome thank you for having me on -- tape vice president thank you securities for the financial services roundtable.
Down in DC thanks again sir we appreciate it.
That's well up on what -- Chris you were talking about with this twenty billion dollar ray Hennessey the director of our campus and a note saying that.
It's been confirmed and met Ken Feinberg is going to manage the funds now Ken Feinberg as -- -- -- compensation -- He his job is to give out money appropriately in.
Supposedly was master of the 9/11 compensation fund some community put in charge of this weekend and handle the -- gone forward.
That's very interesting obviously TV on the fox does that work all day long both on our show and then.
After we are off the year at 1 o'clock in the in the website as well because we're gonna be updating this in terms of time frames.
In terms of whether it's open ended clothes and that obviously as we just thought with -- -- and still in the meeting.
That began at about 10:15 this morning and when they emerge.
We are there at the White House hoping to get some type of the comment from either Tony Hayward.
Or from call and respond -- or from somebody within the administration so we will keep you up to date right now we're at -- -- You say now now that we know who's running it now your point is the next thing you -- that needs to be address.
How long how quickly what happens when immigrants -- we will keep our eyes and ears on -- we'll let you know we take that break we'll be right back.
Live with that's -- well.
Sometimes I think that you know they always yelled at my microphone down a bit because I also want to -- -- pop eyed peas.
Too much Jason -- Chris -- we both for the -- of the of the stock market up is he waiting to see this you know let it.
-- all red except for this little tiny bit -- green which is where we are right now up three points.
On the days so well -- disagreement I it's a little bit of okay yeah you write this -- a little bit that I could even see with so little.
When you have four points it's little but hey it's green and that's where we are announce something is move this market awful -- this morning that we experienced about 1030.
In in depositary for entries gonna tell us what's movement.
A couple of big guns that shoot it down is Nokia and Nokia I am still that I feel -- it suggests.
I don't know what -- -- how you know me.
-- -- so many little regular cell phones overseas I know in Europe in Asia and Africa have you can't come -- and warned that -- going to be weaker because -- Competes in a high end phone market but that's right so what I don't know yet I don't know I just don't seem Stewart he's got it -- -- about 10%.
Is of course the US with shares that were -- him.
FedEx we alluded to it earlier they swung to a fourth quarter profit.
They -- net loss last quarter so this was good news revenue up 20%.
But they got they -- I welcome and -- they just gave very sketchy.
Basically the numbers came in slightly under Wall Street consensus and that doesn't that doesn't end well for the stuff they really -- They may be sandbag you living here in the B -- -- -- -- because -- we were expecting.
I think a dollar three for fiscal 2011.
And they said well we're gonna go from a dollar five all the way down to like 85 accidentally given us so we'll really wide range here moving forward this.
The consensus yep it was a dollar dollar and penny yet and they gave us twice and it -- and so that's that Wall Street thinks -- we -- Washington Washington's union yeah.
So -- stock down Neurocrine Biosciences.
Believe it or not.
This is your little bio -- of the -- An -- -- -- Abbott labs.
Will collaborate and develop a drug to treat endometriosis.
Near -- up 13% -- -- parent or kill the explore develop produce crude oil and natural gas.
Revenue came in at 69%.
How increase in first quarter -- it.
Earnings per share came in at four cents and again revenue rose 16% to a million dollars -- them there it's very lightly traded stock that we and a and number one is some -- -- sound man at essence yes is the name of the company.
Committee and is the health care products -- they need to I caught some and tactics which is that medical device maker.
For -- -- -- share.
-- and SM CS and he it to be cut so these little flat tax of course as always keep moving the -- be a lottery ticket.
But the fact I don't know about an interesting one because revenue came in really well right and then they got -- so you gotta believe that it little dew points.
And then -- dealership in more stuff that's always the key when you look at is that we should been more stuff and where we shipping and how -- of people -- -- ship that stuff.
Means or make it more stuff and buying more stuff to you know.
If you put two and two together and so is it pretty good quarter all at all.
Com that they get yet and yet they.
Maybe -- -- have -- official Agassi with a CEO CIO of Longview capital management ally Christians are great spectrum is Agassi bomb.
You guys not only have about a 150 million dollars and -- -- under management.
But you like to look at ETFs and tell me why you that's your theory.
Our primary driver and using ETS -- we like -- for for several reasons.
Primarily weren't all asset class manager.
ETFs these days it becomes so expensive we can literally go to any little corner of the world or any commodity or.
Or any sector and specialize in Biotech wherever it may be by identifying a basket of securities that the reason we like them.
Diversification transparency in tax efficiency.
But -- become expensive that the -- that you point to these various.
They have really pretty decent he's attached to them and so you're paying -- per -- basis if you treat these things.
-- -- You are if -- if you're actually a trader right were buying them -- to.
Benefit from the relative strength of that particular sector when you're looking at buying a basket of securities.
5060 -- hundred securities.
And then at an expense ratio analysis.
That's part of our process to picture will -- the cheaper well you know general timeframe you hold these -- -- really depend on on whether or not -- actually getting.
What we want to get out a particular particular investment.
Our average hold time could be between six and eighteen months.
Outside the specific -- CFC mentioned today I wanna talk about a couple things first of all the CS where.
The commodities like GLD.
The -- as -- as you well as another one for gold those have been hugely popular you know volumes are outrageous for those.
Are problematic in any way shape or form rather than holding the actual net -- Let's sell that holding the actual metal itself is always interesting and fun and we always we're gonna -- a gold bar.
Yeah -- images -- stopped at the grade I wanna come over half.
I think we're gonna put it to store I mean the new asthmatics the coins and all of those things we -- -- their own field in our portfolio.
And we like it because it's bullion back we don't have to worry about the can tango or backward nation issue.
And it also earns his second largest UTF the world.
Yeah I get to -- picks -- -- totally different that they could just yesterday legitimate Canada.
-- -- like the ice shares.
-- CIS Canada index how come.
We like it primarily because in the developed world these days.
Everybody's looking at -- photos being your default international exposure a lot of folks don't understand that 80% of because developed Europe.
And Japan I think they've got some austerity problems to deal -- general election there.
Didn't -- as well that too so from a Canadian perspective or or from a developed country perspective.
We like can live for a couple of major reasons first and foremost.
We're talking about an affluent high tech industrial society.
Of a trillion dollar class.
We've got a diversified economy.
Financial services basic materials and energy they happen to be the largest importer to the US.
Of energy supplies oil natural gas.
Uranium and electric power we need that.
It just doesn't just to follow up.
We're -- incident dodge the -- on facing every single time they sort of benefit -- all goes well but yet they sort of back off when things get all nasty but they're certainly not -- what we're feeling it today.
I think a lot of that goes back to their they've got a very conservative financial institutions system.
They've emerged from this with the banking system that's the envy of the world -- has to do with their Montero in fiscally conservative.
And they only lend people the money that don't need.
And they also riot when they win or lose hockey games it's strange guy and earth could he get it out all.
They didn't feel the World Cup team so what's the for the right chili -- in Chile actually did very well this morning in the World -- that's another ET if you like why -- We like Chile we really think Chile is.
The absolute best play emerging markets -- right now we like it for multiple reasons first and foremost we've got to go back to the same thing -- On the simple fact -- -- got a broadly diversified economy.
In addition -- that strong financial institutions.
And then their fiscal policy is very interesting because they actually.
Use a rule based counter cyclical.
Fiscal policy meaning that when times are good there's very visibly stashing money and they only allowed deficit spending is when times are bad.
And this is new right and he did that this whole economy that they've put together is something that's very -- because.
I'm sure a lot of people out there think in Chile are crucially needed dictatorship on the list of the state department of countries not to visit an afterthought.
Absolutely they're -- in the last ten years has been extremely significant and they are the envy of Latin America with the highest sovereign bond that Britain.
Let's quickly -- your last -- it's the powershares DWA emerging markets technical leaders at summit a lot of stuff.
It's a mouthful but they got the ticker symbol right PI -- who doesn't like hi how great mom when we look at that that's actually -- and an ETF that is an actively managed to -- -- there's a lot of talk about active vs passive.
This happens to be an actively -- ETF that is looking from.
-- relative strength basis at the strongest areas globally and then the strongest individual sectors.
So right now they're concentrated on places like Latin America.
Emerging Asia and Africa and the Middle East.
-- a little bit more than then back counterpart the -- but when sector picking and stock picking makes a difference.
You're -- -- get your money's worth in this particular -- Christian thank you so much good idea.
CEO and CIO of Longview capital management now we mentioned last night the president.
Speaking on BP.
Markets took a quietly to the folks in the Gulf Coast do the same -- Shapiro joins us right now from Pensacola was the reaction Adam.
Mixed you need a lot of action they don't want thought I mean take a look out there you -- that's -- off the story here.
They got out oil -- two miles wide forty miles long off Pensacola beach sand off for the gulf beaches of an Alabama.
The senator here George Lemieux's pretty angry they got 32 gamers like that off the coast of Florida you -- me -- its winning.
And what the business people we spoke to last -- -- is -- This is they feel as if their -- is going to be sacrificed.
To say Louisiana because all of the equipment is going over the marches in Louisiana.
That oil hasn't hit Pensacola beach nearly as bad as it hit some of the Alabama beaches.
But Louisiana marshes.
But they they don't understand the people here why is anyone waiting for it to get that -- not prevent it.
Well you see some effort to prevent it -- those gamers but not that uptight that's not nearly enough to also got that frank kid over here to the LF these other folks that.
This is that -- right over here it goes that way.
Get a little patrol boats looking for globs of oil and pristine.
And they call -- the layered approach overdid it command in mobile.
When they find -- then they throw all the resources that written but it's more of a reactive than proactive response so.
The business people here they also like the idea of setting up an independent authority to process the claims.
They get out of the hands of BP.
But they want to see that money quickly because we've been reporting for the last ten days.
Bookings on the Gulf Coast of hotels depending which beat Chad anywhere down from forty to 50% everyone's taking -- you don't even have oil here yet that the tar balls washing up -- Nothing like what you see what we shot in Alabama and as you get closer to Louisiana does the devastation there.
And climbing another but I see those two little girls in the ocean and I pulled them right out I'm sorry Adam Shapiro thank you so much are you content update like what you think about the -- that -- bell Atlantic waters are -- -- science being honest.
Thank policies could be -- You got.
Circle now and take a break and when we come back some and -- -- -- sending email until ma'am I'll still be you know you and you're not I can tell you right now she's not.
-- -- -- -- Actually you know I -- -- -- All hi I'm Chris because Tracy Byrnes.
-- dot com live from -- that break because I gotta send the Tracy tell us why it caught her -- today actually this morning -- was -- Doing this Christmas savers club out of my Zachary and I was a kid we had Christmas clubs and you gul I would go to my mother went public with you guys -- He -- something.
And you put money aside and come Christmas time you can use it well they're kind of doing the same thing now -- people are struggling.
The brilliant -- of this is though.
You can save up to 2500 dollars and they'll give you a bonus 3% -- that -- handwritten planning you can -- 75 bucks.
-- earned a -- stable long.
But of course -- to spend the money in the -- so it is keeping you in Toys 'R' Us even with that extra seven acknowledged I think it's a pretty genius idea to address the site that first I thought.
Why don't -- -- I because I.
I'm just -- account or.
Seemed a little believe you're not from my paycheck every week for Christmas because.
Clooney when you -- kid yeah there is in ice -- minus estimate that just think in savers Clark and myself but.
-- 3% here over the next seven months -- mean the average money market account -- countries that at -- at one point 1% -- -- -- six months.
So that's not so bad you know what that is.
That -- -- shot in the a yesterday.
I thought like that thank you for sharing that.
You're going to be there.
I don't have -- -- -- -- club is guarded by.
Let's keep in mind I have seven nieces and nephews with the 81 coming next week so yeah.
-- I better start putting some money away Toys 'R' Us -- -- is here with its managing director -- consensus advisors.
A great annual survey about which retailers.
Are in the best shape financially Doug welcome Michelle thank -- all -- Before we get to which ones are in the best shape with the criteria because obviously -- be a million ways of looking at.
I -- with a 150 companies are really looking across four components we looked -- healthy growth not just growth with healthy growth.
-- utilization how quickly turn inventories how quickly cap expenditures -- -- and profits.
Wrestled -- pricing power -- it was to maintain or hopefully increased margins but in this recession -- able to maintain margins which is important.
How to balance sheet strength which are capital structure -- -- -- -- you have.
Which -- market capitalizations how much flexibility do you have all larger publicly traded retailer.
It's it's across the board typically public -- few folks there publicly traded debt so we have access to their financial formations -- -- some private companies in there.
We go from.
Wal-Mart to do overs of the salaries so it's it's a full range market caps.
Now that's an interesting on your top ten was that.
Amazon again number one -- -- Many of these companies also excel in customer service.
I mean bad back -- I actually Verizon's source Bed, Bath & Beyond yes even -- these are all stores it.
A great job at customer service does that translate some.
Certainly wouldn't know there are pricing -- metric that's important so.
If you're the -- attractive customer keep them coming back to the loyal following means you don't -- -- discount to attract new folks coming in.
So strip pricing power what will reflect concern that some folks that I had to resort to discounting.
Certainly at the end of 2008 there a lot of companies were covered a lot of inventory on their hands and he just counting you significantly just to try and bring in traffic.
When I go back to the end of 2008 and I look at some of the companies on your top tens in the retailer's.
It's no secret city investors either because -- got names on there that have done very well and Theo -- thousand the world.
Bed, Bath & Beyond buckle as an -- -- investors -- of that.
What you do this this study we did is not masters.
-- specifically focused at investors in I mean we kind of looked -- longer term.
We would -- five years' worth of data typically.
But certainly there's a lot of information there certainly are some some correlation between this and and their stock.
Haven't got it there would be that you basically good solid fundamental -- of -- absolutely yeah he came out positive now why did Amazon -- -- He Amazon is you reboot every time we run we kind of wonderful gonna have a -- of the of the you know ten e-commerce companies at the top.
That's certainly was not the case as we found out this year is -- specifically.
E-commerce we chose our retailers and they're exposed to macroeconomic environment with everybody else.
Amazon is just a great retail and not just a great e-commerce retailer.
You they've got a wide selection inventory -- they've tripled in revenue since 2005.
Dave did measurements -- very well both.
Obviously through through logistics and technology.
But also through relations with the vendors -- they've got the size in the -- -- it to to really leverage those vendors.
And so so they're they're kind of reinventing retail.
You know another theme that we talk about often on the show all high end.
Of wealthy people are still spending the council of shopping and maybe they're coming back missing a lot in the jewelry space in this -- -- coach drops several places on your list would have.
Approach did drop a little bit let's keep in mind that they are still with topped him with a 150 companies so they're still in in in rarefied air of in the top ten so.
And equinox were surprised to see -- -- player in the -- and so it's a bit deduction that a conscious effort to to kind of reach out at a lower price point.
I would certainly with the party -- that they -- about.
I think that's -- -- -- new strategy for them but has worked well but they've -- they've managed to maintain their brand.
It's sort of like -- Ralph Lauren chaps you know that you can do that it is it's a balancing act -- the high wire act.
You can do it successfully.
Can really pay off you're able to expand the brand and as those customers move up.
They know the -- -- they're gonna I'm more.
They get it -- a teenager and they keep them absolutely.
-- on them one it -- and everybody starts up with.
It's -- go where -- always behind and it's expensive complex you know get -- fact that you're date it's up almost 49.
-- You know they're they're they're you know can encompass.
Fifth in the country by storm.
They they continued to to grow it and a stunning -- -- from 65% on average in revenue over the last five years they've got very limited.
They've got they've grown from your third -- -- -- 127 stores are riding a wave.
Of yoga and Pilates you know we'll see it's a narrow focus and you wonder if it's sustainable but certainly you know they they're riding it and -- -- -- some competition I see.
The gap out there who has has required a lot -- -- so so it's getting some attention from some folks are -- -- to -- some competition out there.
But they've got a good head start and and they're you know they're the right there in the top kind of -- 400.
400 million dollar company we've got to.
Wal-Mart 400 -- for -- 400 billion so it's a full range in the top ten.
Bomb both them and have for lululemon remember.
Before we had.
Oil spills and sovereign debt issues.
You have lululemon everyone's concerned about the fact that their clothes were not made 100% at a C -- And that whole hullabaloo they said there amid a sea weed out I thought it's only 28% -- -- -- seaweed.
Once the workload been seeing it anyways candidate that's there -- Doug good to see it thanks there's not a lot but we're gonna find out all the information about the the -- They can go to www.
Retailer health dot com editor for the full details on the restore.
Health rating and it comes out every year and it's -- -- information there.
-- -- except that thanks so much thank you thank you doesn't.
-- -- break -- break when we come back wolf will be gone by Robert Gray he's out and LA played video games he'd take a break from donkey -- for a second and join us.
If it's equipment that.
Gonna ask you come the fact that if it.
You can talk over it though lets you know sort of token Republican -- -- -- been thinking about my.
Neither son who makes fun of you the people on grossly wrong and whenever all riled up because mommy needs to get ready now to take his advice -- And it grabbed laughing it's really tell look let's thanks Arafat was graphic soccer.
Anyone else is gonna catch my I had daylight today 88 in -- the World -- there you see it right there now the Dutch have.
Have a tradition of wearing orange they're called clockwork going that's the -- -- the Dutch group of fans sometimes teams -- club we're going.
And the end ladies from Holland.
-- liked to Wear miniskirts well.
You have Anheuser-Busch.
Budweiser and any official beer of the World Cup so they're going to be unhappy if any other beer company tries to do any type of well underground.
-- guerrilla marketing if you will on site will apparently the beer company brewery.
Dutch brewery -- very.
Had several women show up in there you see this sign there in these orange miniskirts.
Through -- tiny tag who can even see that thing and they got upset and they actually arrested.
Two of these women four of violating some type of of of an -- if you want.
They're due to appear in court later on today facing possible charges.
I am ambush marketing is what they're calling it -- The women work for a company that works with Bavaria and they were all in cahoots and say look we're gonna win these mis hits and honestly the very honoring any other wanted to do and we can go and and -- gonna make a big.
They said they should remember that short shorts skirts -- -- we're gonna go look at what I thought Lance.
The problem is the -- he's -- -- soccer players are playing in the hooligans are in the stands as we get to deal with -- you don't wanna deal with them.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- But it points out I don't think you actually think that -- settlement CU and you're scared and much like when you go to a concert you'd think that.
Dubbed the Kagan can -- -- when you're in the third round you always believe that you know.
-- wasn't dealt -- -- and well maybe it was Tico Torres from Bon Jovi stands you know.
I hit and -- -- whenever and -- I -- -- -- that in Dallas still -- that it is joining us in Boston sealed swapped 380 Jeff.
Great how -- you Chris failure tracing.
-- We're -- really interested in your exchange in what you're doing basically there's no money exchanging except alarm packaging right -- -- our.
That's right and it's -- -- is a company that's focused on.
Enabling flops between because consumers today we focus on four categories so books CDs dvds and video games.
We have about 800000.
Users that are members of -- tree.
And what they do -- they they actually list items that they have in those categories and they they also list items that they would like.
Who want and then the -- treat trading system swapping system actually in that creates matches were trades.
Between these customers so that.
If -- are.
John Grisham lover and and you have this book you've read what you might wanna get you know a Bon Jovi CD when you connect to an end and someone else wants that thing that we actually create -- -- point.
Now -- have a lawn -- and I'm looking for a wagon wheel coffee table that it got to work for you guys just yet is it.
That's not a war effort just yet because we're we're focused not on these four categories right now but our aspirations are quite large -- -- we want to build.
The largest -- platform in the world.
And we will be expanding into a multitude of categories beyond these four we'll start we'll start that -- activity actually later this year and as we go into 2011.
But our aspirations are quite quite large we want to build the biggest platform for -- all over the world.
-- -- -- -- -- -- Well we actually have so a slight markup on the on the postage fees.
So so it's not like where we're passing all -- this thing all of this through for for free -- the transactions today operating.
And as we go forward.
In and build -- critical mass I think they'll be more value that will be able to bring to our customers.
To help them buy things that we know that they might want India at a discount and maybe we'll make some money off that.
And there are other ways that will expand our model as we continue to gain scale and in and our customer base.
How do you prevent fraud and how much of that have you seen -- since you guys started this.
Well it's it's it's something that we're very focused on this is a social commerce initiative so if you want to engage -- -- tree.
You are pretty much a a citizen of this digital world and and and you are basically participating as a member of a community.
And I think you know with the web over the last ten years communities have advanced with a great deal sophistication is self policing our community.
Whereas if -- if someone was to engage in -- -- and either deliver an item that wasn't at the quality level that.
They said that it was -- they didn't actually make the delivery well then they would be marked down war raided a negatively by that but they're swapping colleague.
And in social commerce I mean reputation is everything.
So we have we've we have we embrace the -- these standards that have been deployed by many communities like -- day.
And and frankly.
We see very very low fraud in this -- environment it's way below 1%.
But it -- very conscious of this because of course.
Quality of goods and quality community is very important -- how we grow the business.
I understand that.
It posted -- of Booker CD can be very minimal so it makes sense to me to swap out but if you start going -- things like.
Chris looking for a lawnmower.
For -- it's a -- a lawnmower and it's almost worth you know me going on deep -- -- on -- Well you know what you can go to Home Depot went in to drive to -- and we hope you do that but then when you wanna swap -- in the future we'd like -- -- -- and on our site.
And you know today we are engaged with four categories that make it very easy for you to -- But you know most of the swapping activity that goes on in the world is is local.
It doesn't require shipping.
And our aspirations to be the largest flat platform in the world will as we go forward.
In -- it would it will entail enabling more items to be shipped in different categories but it will also enable a local elements so that.
People can swap in their communities and swapping is is a very -- -- category I've been following this for quite a long time -- his.
Has spanned the ages I mean -- thousands of years old -- before currency there were people that we're swapping items.
If you look today there -- trillions of dollars of items being -- at the local level.
And we feel that because of where the economy is today.
Where people are interested in conservation.
Where the web has become sort -- social not we can bring a lot of value adding value sort of -- to local flopping that's occurring to think about it.
A book club in Boston.
1010 members of that book club.
They share books while with the web and the social connections available via the web -- -- ten person book club.
-- because of the friends of those friends become potentially -- hundred -- thousand across the US or perhaps across the globe so.
We think because of these trends that are occurring the time is now they're really -- a mass market opportunity for swapping companies but it's gonna on the future be a combination of items that can be shipped.
And items that could be other delivered a locally or or produced in the swat -- kind of scenario in a local market.
That's great stuff Jeff thank you so much for sharing that -- this.
Except we appreciate it thank you very much I get that it is sealed sloppy sloppy dot com -- -- that I've been an eBay user for years lol yeah I'd love eBay it's it's actually great and that -- check out this evening and it's got sloppy.
In video games to get a video games robber Greg joins us from Los Angeles he's out of the THQ has been in the news quite often.
Over the last couple weeks and well Robert has a special guest from CHU today.
Yeah that's right Chris thanks so much and we are here on the floor at Adrian M Brian spare us the CEO of -- thanks so much for joining us here.
And you know Brian what -- the things we talk a lot about is licensing.
Everyone loves to go to the movies and now that video games really look like movies themselves.
A lot of these titles Abbott a second life if you will as video game titles you guys are working with DreamWorks taught us about -- partnership there and and how you licensing.
The sort of stand out in a very crowded field well.
The -- craters like DreamWorks -- -- great world a storyline -- great storytellers.
And they create an environment he can play game itself.
What we've done with them is get away from just.
See the movie play the game and take their story in universe into a place that turns an eighty minute experience into a twenty to thirty our experience you know that's a big win.
It's about creating an event.
What I love about DreamWorks is -- great film great creative.
We -- a great video game -- -- toy line T shirts it's it's a retail and and commercial event.
That -- it provides the awareness that we couldn't do alone so it's a big part of the industry but you gotta be day and date you gotta do it right you got to deliver quality.
And and on that note you talk about is coming full circle -- not only are the games coming out of movies but now you've got a movie coming out of the game -- about that.
We have several things like that and it's all about again getting people immersed into a universe and we we caught trans media where it goes.
Either from movie to video game or now you -- going videogame to movie.
For example the writer for very very popular upcoming game homefront John -- -- you know.
Apocalypse Now red dawn.
You know he's involved.
You know we think that's a great premise.
We have another we announced saints -- coming -- major motion picture as well one -- we can't talk about today but the idea is when you create this media.
And consumer events you know everybody can win.
-- -- -- -- Playing a big role here you guys doing a lot of movie times and you -- titles.
But talk -- -- -- about how missed all day and the new technology is is at play when the teams hearing 3-D definitely and motion controllers were standing in front and -- and a right here.
Well yeah I'm a big fan of the new Nintendo 3-D S.
It is true 3-D what we think we can do that creatively.
Some of the old games which is Sargent -- best and you hand held that was announced yesterday for those here who don't know that the -- yes and we do any industry speak area so what's the new -- from Nintendo.
As you probably know the some of the other -- devices and biting into the market share both Nintendo and Sony.
This gives our consumers a reason to come back it is -- -- It's not demo Mario cart running on it.
And said this is that this is the real deal so we think that's gonna reinvigorate they handled market I can't help but hear you know we've been talking -- -- consumer.
-- than a dozen times.
What -- -- how concerned are you about the consumer right now but in this country and around the world.
What you know you've always been got to be concerned about the macroeconomic environment and it is -- around the world right now there's no question about that.
We're in the entertainment business and entertainment businesses tend to at least two as well as possible during those times people still want to be entertained.
So our job for the next several months continued to deliver great entertainment to consumers and again economies come ago we got to deliver great entertainment all the time.
When -- really come on very quickly is.
How fast the App Store from apple did the games are coming fast and furiously -- a little bit.
About your mobile strategy and and how these dollar bite sized games.
Are eating -- to the market share some of these sixty dollar console games have traditionally had been that sales drivers.
Well the interesting thing about the video game business now is there are so many platforms including the Apple iPhone and I iPad.
And were on those platforms -- consumers we've got to be very sensitive wherever consumers want to consume that.
-- we will be there to for example we have some great games on the iPhone and iPad we -- all over the Nintendo 3-D S.
You know the the -- we will go where our consumers say they wanna consume that content.
We've always been platform agnostic Gnostic.
It's about delivering a great entertainment experience wherever our consumers and that's certainly market has grown -- very rapidly.
I understand the margins are better there but.
When you you're talking about a a dollar vs sixty dollars you got to sell a lot more of them.
Do you think the volume can make up for that in terms of you know in the mobile sales vs the traditional packaged goods at -- welcome to the online world as we've seen -- other media for example the recording industry.
The model change from buying.
When I was growing album spot and it's not just about final.
But but now what you're people are consuming their music you know a dollar at a time that's where consumer wants so.
Our challenge is to make those gaming experiences at the right right that's going it reminds me that -- will -- business.
Get people to continue to put those quarters back in the machine.
That's -- experience we we need to deliver so low price points don't bother us we've got to keep -- keep that consumer engaged and frankly our industry knows how to do that.
And how do you stand out particularly when he took about the App Store now we're about hundreds of thousands.
Of applications there it's it's getting to be a little more crowded a lot of more independent people or are getting into the game.
How -- -- continue to make you TH -- -- stand out.
-- that's where we think we have a great competitive advantage right we have a lot of known and branded content.
So when we take one of our great games and put it on the iPhone.
You know people know what WW -- is they know what the UFC -- they know what saints row is so you know for us having that.
Branded content we -- have the ability to.
To launch it and projected across a number of platforms I think that's our competitive advantage Bryant failed C T it's -- thanks so much for your time and potter I know lay out there shouting wolverines when he mentioned red dawn.
Yeah Iowa was.
Appreciate that Robert Robert Ray we were -- to -- a little bit -- wouldn't let you go.
Thanks a lot Robertson and I -- by the way 83 in Los Angeles all day long he's looking at.
Hook up with the CEO of Sony computer senate that's cancer by a little later on in the -- well so a lot of great stuff.
That's that awesome videos like that -- -- that toy fair here in Manhattan every year -- this.
But yet so wolverines and making me think of -- even a minute movie red -- Patrick Swayze OK okay the Russians invade them.
Bomb I -- I got to come and dunk on that Donkey Kong and what was -- -- -- well.
When my technique called she's pregnant well we've had to go on that -- things.
-- across the lake and I.
Never me I'm still disappointed you know that you were in favor of the new pac man that does all these crazy things Pacman does one thing.
Did you did you did you did you did you detect except he's going to be like on some curling.
-- I don't you know -- I've got to wrap it up thanks for watching it when we're down fifteen points which is a little Louis and we were at the start of the day but all things considered to be down fifteen points.
Not so bad on the -- thanks for watching everybody we will see you from.
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