tv Wall Street Journal Rpt. CNBC April 8, 2012 7:30pm-8:00pm EDT
>> hi, erveds. welcome to the wall street journal report. i'm maria bart row ma. is it now time to take profits or is this the beginning of a run. a lot of people look at this and they are wondering, oh my god, is a computer going to take over for my doctor. how computers are going to be more like people with microsoft's craig. life, money and patience. why no one ever tolds us that. wall street journal report begins right now. announcer: this is america's number one financial news program. the wall street journal report. now, maria part romo.
>> here is a look at what's making news. it is the big number wall street has been waiting for. the sign of the strength or weakness for the economy. they released a jobs number in spite of the fact the market was closed for the holiday. the economy created 120,000 jobs for march, well below the forecast of 200,000. it's the smallest increase since october. unemployment was down to 8.2%, the lowest since january, 2009. that's down from last month's 8.3%, but the rate declined because more americans stopped looking for work. the markets kicked off the holiday on a high note, then fell when the minutes showed easing by the feds is less likely. u.s. autosales are going up. gm saw sales rise 12%.
ford was up 5%. chrysler saw sales up 34% and volkswagen climbed 35%, the best since 1973. yahoo! announced 2,000 job cuts by the end of the year. it will save them $375 million as 14% of the labor force is cut. have we seen the best of the markets and the economy in the first quarter of the year or is there room left for the bull to run? awe thor of the e-book, in gold we trust. the future of money in an age of uncertainty. thank you for being with us. i want to get to the gold, but let's talk about the week that was. the markets fell midweek after the feds walked away from the possibility of stimulus, the qe-3. what do you think about that?
do you think the fed will be there? the current stimulus in place expires. the twist expires in june. >> i think the fed has no outside saying what they are going to next. the economy is picking up. we don't know how strong it is picking up. i think it makes sense for the fed to wait. you have to remember, it's incredibly loose. so much money is being printed. interest rates are low and going to stay low for a couple years. really, i don't know what the fuss in the market is about. it's about watching the economy and seeing that the recovery has depth to it and watching what the fed does. what we know about this is it doesn't hesitate when they think the economy is going flip into recession qe-3 or qe-4. >> the rock bottom rates is the
reason the stock market had the best quarter since 1998. people are looking for yield. do you think there's still opportunity in the markets? how do you see what went on in the markets? the retail investor is on the sidelines. who is buying? a lot of investors stopped worrying so much about europe. the european central bank changed policy. it's down like the fed has been doing. it took off the table the catastrophics in the area with the european banking system. a lot of companies were sitting on discretionary spending, they were nervous. now, no one is worried about the european banking system collapsing. it's confidence coming back in. if you look at the underlying health in corporate america, it's good. the companies have balanced sheets and increasing productivity.
it's a strong story. the economy continues to recover, then the profit story is going to be great. >> let's talk commodities, oil prices, gas prices rising. do you think it's a roadblock? when will we see demand in the spike of prices? >> it's been the story for a long time. demand. it's a reflection of strong economic growth. by and large, it's a positive sign for the world economy. it's going strongly. we continue to see commodity prices rise. >> yeah, the demand is there. so oil prices -- and we are going into the summer driving season. >> if we see something happening in iran, israel attacking, that could throw the whole thing into a mess. that's the biggest disaster scenario. so far, we are talking it down for a couple weeks. >> you are talking the big economic questions of the day.
the deficit. the gridlock in washington, that has been so frustrating for people. the two sides came close to a deal for the deficit last year. do you think there's a possibility of them coming together? >> the situation is toxic. this is what we are talking about in gold we trust. basically, look at the gridlock in washington, the huge deficit here and in europe and say who is going to fix it? i don't believe the hype they were close to a deal last year. it was a lot of people saying they are trying with no intention of trying. the problems are so extreme they are only going to be solved by printing money. no one wants to take the political cost of raising taxes. >> let's talk international for a moment. you talk china's changing attitude toward the united states. what do you mean by that? >> i think china, up until, again, the financial crisis,
china looked at america as a role model. it's been really, it was putting a lot of spare money into american assets. now, china is doubting whether that's such a good model anymore. you are seeing a lot of effort to diversify into other assets including buying property and land and also switching to things like gold rather than holding u.s. treasuries. i think that kind of gravy train american had is no longer going to be there. there may be a financing crisis in terms of selling treasuries abroad. then again could cause problems in washington. >> china is the leading holder and buyer of our bonds. >> exactly. >> you are just back from india. >> mm-hmm. >> what can you tell us about the global economy.
people are saying china is slowing down. what did you find in india and what is your thought about the chinese slowdown? >> the chinese slowdown, i expect them to grow stronger than 7.5% people are talking about. it's making everyone slightly nervous. they understand 9% is the number they need to get. the political pressure is there, under control. in india, the government is in trouble. it's not affected. the underlying is strong. i'm optimistic with india and china. the mood is more down beat. >> great to talk to you. thank you so much. >> thank you. up next on the wall street journal report, personal technologies future from your remote to the doctors office. microsoft will be here to tell us what computers can do next.
welcome back. technology is enabling so much with health care. when it comes to your computer and what it knows, it may be learning faster than you are. i spoke with microsoft eesz manager, craig mundy about the rise of the machines. >> they are powerful and smart enough to have them interact with people in a more natural way. it's going to be a big trend. in the last year, we used that to allow people to talk to tell
televisions. they don't need the remote anymore. >> i want to talk about other applications. we know what's capable in the consumer market. we have seen a bit of that already. we haven't seen enough in terms of the health care industry, education, there are a lot of applications in health care, right? >> health care, we are spending quite a bit of time on. we started building two products. one was infrastructure. the other was a consumer recordkeeping system on the internet for people to have their own records. now, there's more devices hooking up to the consumer part. i think the sensing is a big player for people whether you get it from your phone or things that attract your steps. i got a new scale for christmas that sends your hydration levels and weight to your account. there's going to be a huge revolution of what we can learn about people in their daily
lives. >> you mentioned a story to me about someone getting sick. >> one thing you hear is big data. one of the real questions is it's easy to get the data, what do you learn from it. we sift through huge amounts of data. we studies a question that eluded people. why do people get readmitted so frequently after their stay? >> they are in the hospital -- >> they get discharged. >> they leave, then they are back in the hospital. >> there's never one reason. the question is why? we took ten years after data. fed it into the big machine. we said tell us the reasons why people come back. it found a lot of normal things and interactions between drugs people didn't know about. a case where if you went in for
a cardiac event. two doctors give you drugs. one was we found in one hospital if you stayed in room 209 you had a high probability of coming back. they had a cleaning problem with a bug hiding behind the vent. if you stayed long enough, you got sick. these are kind of things machines are happy to sit around and find. humans could never find it. a lot of people are wondering oh my god, is a computer going to take over for my doctor. >> i'm give my personal opinion. i don't think doctors ten or 20 years from now will be able to practice medicine without a computer. part of the reason is that you are going to see the arrival of genomics and all these things. they are all data intensive. no doctor, no matter how smart they are can interpret your genome with your metabolisms,
but a computer can do it all day long. in the future, a doctor, in the past wouldn't go anywhere without a stethoscope. in the future, they won't go anywhere without their computer. >> it will enable the doctor to be armed with more information. >> what they need is decision support tools, not digital recordkeepi recordkeeping. the record should be a by product of practicing medicine. what's required is a platform to allow the new applications that help doctors make better decisions. >> you have led so many innovations at microsoft. when you talk about connect and other devices. if you could name one or two things you believe will be the next big thing in technology, i don't know, let's say the next five years, what would that be? >> the next five years, i think
the challenge is to integrate across the separate ecosystems that emerge. we had the pc ecosystem, the enterprise data system, now we have seen the cars, the phones, televisions, game counsels. every one of them was separate. now, people have multiple of them in their life. it's driving them crazy. they want them to work together better. >> and to talk to each other. >> to talk to each other. the cloud has a nice property to use it as a point of synchronizization. you can start to use itd. one of the things i love that we just did with the kinect on x-box is hook it up to bing. it will search for your tv content. suddenly, you have taken an internet search technology, applied it to the library of
films and video, streamed it through the web and put it on a game counsel interface and talk to it. that is what will happen the next five years. there's an e coe system of ecosystems. >> thanks to craig. up next, lessons on life. investing and what kind of person you should marry. a financial adviser looking out for his grandchildren and more. you can find us on facebook look for wsjr with maria.
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do you ever wish someone told you the facts of living and living well? money, life and letters to my grandchildren. john spooner as $1 billion of other people's money under his management as well as four grandchildr grandchildren. your book is a series of letters to your grandchildren advising them about life and money. what led you to start this? >> i gave a speech abtd four years ago. they were business students, all foreign. it was supposed to be practical advice for what they would see when they got into real life. when i was done, a young woman from france said no one ever told us that. i thought boy, there's so much practical advice that young
people or all people can use. let's figure out how to translate it and use my olde ee grandchildren for it. it's a series of 58 letters in the space of a year. each letter teaches lessons including if you marry, what kind of person should you look for. my dad said marry funny. i said did you say marry money? he said no, funny. it's the most sustaining concept. >> i love that. what are the biggest fears of young people? student loan debt is nearly $1 trillion. we have a tough job market. what are you hearing from young people? >> scared. am i ever going to get a job? is there a place for me? boy, i whistled through my teen years and college. i can't believe it's crunch time. i see dozens of resumes, young people who want to come into the
money business or want to write. here is the first note. let's see your resume. most resumes are plain vanilla and boring. i say, here is what you should do in reworking your resume. what are you interested in? what are your hobbies? your interests are what's going to get you jobs. i had a young man, a friend in japan who had a job there, american. he could speak japanese. got married, wanted to get back to the state store. nobody would hire him. they said your exper tees is in japanese, why would we bring you here. his resume was vanilla. he was a black belt in karate, but didn't think it was relevant. i want to see something jump off the page. karate, to become a black belt
takes intensity. he put it on his resume and came back to new york. >> that's great advice. >> it's the unusual thing that gets you a job. >> you have 2,000 clintds. what are the questions they should ask of a money manager? >> if i were on my own, i would ask three questions. they are questions no one ever asks me in all the years i have been in business. one is what's your philosophy of investing money manager? if you can't give me your philosophy of investing in a couple paragraphs in english that are common sense, you are not the person for me. second question, is no one ever asks this. what have been your successes? what have been your biggest mistakes? what did you learn from the biggest bumps in the road? the tough times we have from the good times.
so, the third question is, and no one ever asks this, where do you put your own personal money? what do you invest in? >> it's a good one. >> i bet in most cases, with most advisers around america, they are going to choke on that question. it's iffy what they own for themselves. >> great ideas. so appreciate your time. thank you for joining us. john spooner "no one ever told us that" is the book. this coming week will have an impact on your money. twitter tweeting from a new address. nterest to you? well, in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. like the transatlantic cable that connected continents. and the panama canal that made our world a smaller place.
we supported the marshall plan that helped europe regain its strength. and pioneered the atm, so you can get cash when you want it. it's been our privilege to back ideas like these, and the leaders behind them. so why should our anniversary matter to you? because for 200 years, we've been helping people and their ideas move from ambition to achievement. and the next great idea could be yours. ♪ i have actually put in over my career. and it's 168,000 hours. so just think, if you had an 8-hour job, i'm like a man of 100 and something years old. i've worked very hard to support my family. and i finally reached that point where i'm going to retire. ♪ ♪
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for more on our show and our guests, check out wsjr.cnbc.com. follow us on twitter. now, the stories coming up in the week ahead that may impact your money this week. earning season kicks off. reports on the first quarter business of 2012 from alcoa, google, jp morgan chase and wells fargo. the help of the regional economy around the states. key inflation out. friday, the consumer price index tells us about inflation at the consumer level. can tweets drive detroit to better times ahead. as part of a downtown digital
incubator developed by dan gilbert, more than 40 firms are there to help. they say a handful of twitter employees will staff to start working with the auto motive brands. thank you for being with me. next week, where are the jobs. help wanted in the technology sector for jobs that may surprise you. keep it here where wall street meets main street. happy easter, happy holiday, see you next weekend.