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tv   Closing Bell  CNBC  September 30, 2014 3:00pm-5:01pm EDT

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biggest drop since late 2012. gasoline could and maybe should be coming to below $3 a gallon in a town near you. want to leave you with good news. here's more. mandy from australia cohosting "closing bell" next. would you like to respond to your co-host? >> neither young nor an upstart. >> i don't know about that. you are young, yes. we'll take this. >> all relative, bill. all relative. >> welcome to "closing bell." get this. we are going into the final hour of the entire third quarter hour of trading. >> it is. for the day, for the month and for the quarter. yeah. can you believe it? tomorrow is already october. i'm mandy drury filling in today. stabilizing a little bit here and stocks are struggling to stay in the green here today. a lot can change in the final
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hour. if you're a regular viewer, you would know that. we'll take you all the way to the close. >> middle of the range so far in today's trade so far. you heard the brain trust. pimco. you folks were having that last hour exclusively here on cnbc. did they convince investors to stop pulling their money out of pimco in the wake of that shocking sudden departure of bill gross last week? two money managers with skin in the game will tell us what they're doing now. that's coming up. a first on cnbc interview with nfl hall of fame joe namath announcing the creation of a neuro surgery center. plus we're getting the take on all that's been happening in the nfl, the controversy of ray rice and adrian peterson. you do not want to miss what he has to say. >> joe's not afraid to talk. >> absolutely. >> i'm sure he will have some thoughts and opinions about all those issues and certainly a lot
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of buzz as you can imagine here about that on the floor of the new york stock exchange. right now, let's talk markets. one hour to go in the month, the quarter as we said. getting to the closing bell exchange, with us today david lebowitz, chris constantinos, mark tepper, karen cavanaugh and rick sansantelli. karen, can you believe this is going to be october? and second consecutive positive quarter for the dow, the s&p and the nasdaq have seen seven consecutive positive quarters. how much longer, karen, do you think that can last? >> it could keep going as long as earnings keep going. and right now earnings don't look like they're stopping any time soon. i predict earnings growth higher in the third quarter. looking into 2015. earnings growth continues. investors are so focused on the geopolitical risk they're
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missing the train and they need to get on it. in fact, the biggest risk in the last couple of years is being not being in the market. people are lamenting when's going on. geopolitically and should be following the earnings and those earnings lead the way. i see better things ahead so i know there's volatility. investors should be going towards the volatility. not a bad thing. it's a good thing. >> let's talk about what this earnings season is going to bring and the narrative to hear. david, to what extent do you expect particularly multinationals to talk about the strong dollar as a head wind? >> you know, i think that you make a good point there and i would say that earnings are expected to continue growing. that being said, a stronger dollar will be a head wind for those large multinational corporations and might make sense for investors to look at the corporation that is are domestically focused and not as sensitive to a depreciating u.s. dollar. >> chris, we haven't mentioned hong kong yet. they're gathered there in protest of the election process in that country.
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they have set a deadline for the leaders of china to do something about it. that is going to be their tomorrow, their wednesday that happens today. what do you think happens there? we were talking so much yesterday about how important to the world economy. put this in perspective from your perspective on this. >> sure. yeah. never a dull day in my markets. you know, the first question investors have to ask themselves, is this likely to become the next tiananmen square, it's not likely to although it's fluid. hong kong and china mainland have a lot at stake making sure that doesn't happen. hong kong from their perspective has long been viewed as a business friendly community, a place that puts business and making money ahead of politics. and then from mainland china's perspective, a major campaign to convince the world they're open for business. liberalizing the debt and equity markets, trying to convince
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western investors they're serious about stopping corruption. i think both sides have a lot at stake here and we expect the resolution to be nonviolent and that would be a good thing for markets. >> you certainly hope that chinese leadership would have the logical sense in a very vulnerable position to not jeopardize things too much from that huge engine that's hong kong. but, mark, from an advisory point of view, what do you say to clients, people who say, you know, i'm a little bit worried about hong kong and going on in the middle east and ukraine? how much do you put geopolitics into the equation here? >> it's significant. we are minimizing exposure to any international asset classes, developed or emerging markets. you know, a lot of low-hanging fruit has been picked and more and more difficult for investors to really generate some alpha right now and we have to be more selective and what we're trying
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to do is favor defensive stocks over cyclical. and we're favoring large caps over small caps right now. so we really want to make sure that we are not necessarily underweighting ek tills thinking that the bull market has room to run and be selective and playing the good, solid defense right now. >> rick, we haven't mentioned the slide in oil this hour, although talking about it all day. the dollar hits a four-year high. brent and wti hit two-year lows right now. what are you talking about in that regard and how much -- how much more juice does the dollar have right now do you think? >> i think the dollar has a lot of juice because i think the yen and euro are out of juice and in terms of what we pay for energy, obviously, i look at that as a positive but, remember, not everybody's on the dollar. even though commodities are. so the japanese and the europeans above and beyond their
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slowing if not flat lining if not negative economic outlooks. now price in much more expensive energy as they do the conversion the other way. and i think when it comes to china and hong kong i want to weigh in. you know, the fact that we're advertising how many quarters have been positive, listen. the u.s. investing landscape is kevlar right now whether people want to admit it or not, g geopolitics take a heightened strategy or not. the proof is that nothing seems to be able to derail equities. i think for obvious reasons and i don't see those reasons training wheels changing any time soon significantly. >> we also just want to mention taking live pictures of hong kong. about 3:00 a.m. in the morning over there right now but nonetheless the protests are continuing and i think what's of significance, bill, the fact that tomorrow is october 1st. obviously they're already october 1st over there, the 65th
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anniversary of the founding of the people's republic of china. >> it is the umbrella protest. raining there much of the night and not dampened the spirits of the protesters there. chris, i mean, you feel this will end without violence of some kind but, you know, you have to admit the leadership in beijing has to walk a very tight rope because even though they've been able to shut off communication in china itself, so if people are only relying on social media and the internet for information about when's going on in hong kong there in china, they're not getting it but the rest of the world certainly seeing when's going on right now and very much a world issue. you know, how much longer does this go on, do you think? >> well, i think it could be potentially protracted because we are talking about they're fighting for electoral rights in 2017. i don't know that it's a quick fix. remember, two sides to this and it's also our belief that
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despite what you see on tv, the people, you know, the business class in hong kong doesn't necessarily agree with, you know, with the wide scale protests and polls recently i think in the beginning of september that suggest that the majority of people don't agree with occupy central. so, despite the big headlines and the live video feeds we are seeing, hong kong has to have the -- in order for this to spiral out of control, hong kong has to risk everything their business class stands for and that's a pretty big ask. to go back to points that some previous guests made, i want to take the other side of a couple of arguments. we see greater opportunity internationally than in the u.s. one valuation in our belief cheaper outside the u.s. and, two, oftentimes, you know, when you get the worst news, that's when you get the best potential for markets. we have a tactical catalyst in terms of central banks generally outside the u.s., this is europe, japan and increasingly
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even china being where the change in monetary policy is growing more accommodative than the states and we think that's the catalyst to trigger potentially over a few years international rally. it's greater than the u.s. >> all right. >> great discussion, everybody. thank you very much to everybody on our panel. we've got about 50 minutes to go until the bell rings. currently the dow is looking a little bit soggy down and been a positive quarter. >> it has been. >> not exactly the window dressing today you imagine on the last day of the quarter. whatever. the men now at the top of the pimco making the case here on cnbc exclusively last hour. "street signs." about why investors should stick with them. did they get it done? did they convince investors throughout? we'll ask two financial planners who have some money invested in pimco coming up. also ahead, bill, ebay surging after announcing plans to spin off its paypal unit. the pros tell us if that's a
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good idea for ebay over the long run and we want the know which company's stock would you rather own? this is the poll. paypal or ebay or maybe even both. you can stick around for the online poll coming up. make sure you join in. a short time ago while we were talking to our guests, we had a whirlwind of energy go by here a moment ago. broadway joe made his way on to the floor of the new york stock exchange. he's signing footballs and other artifacts and pictures and kissing traders, as well. >> you can hear the excitement of that crowd. >> we'll talk about the opening of his new neurological research center that bears his name very timely with the state of concussions and head injuries that were in the news lately in the nfl and a lot to talk about with joe namath this hour on "the closing bell." stay tuned. you want to be the best investor you can be. you want to cut through the noise of an overwhelming amount of analysis. [ all talking ]
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minus signs, not big ones, though, closing the third quarter today. the industrial average down 26. it was down 54 but it was also up 73 points at one time today so it's another volatile day here closing things out and you see all the major averages at this hour have minus signs here.
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meantime, investors pulling a reported $550 million out of pimco since the departure of bill gross last thursday. in the last hour, the top executives at pimco came on cnbc exclusively on your show on "stro "street signs" to make their case why people should stick with their firm. here's some of what they said. >> speak right now to the viewers and say, here's why pimco is still your best bet. >> i think the answer is very simple. we're focused on pimco's first principles. the first principles of investment process, delivering superior investment performance, and the highest standards of client service in the industry. and that's what pimco's about and that's where we're going. >> even though all of us have slightly different investment mandates, we're focused on performance and very confident group that we'll be able to continue to give the return this is our clibts expect.
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>> the question is, were they convincing? joining us now, rich coper and a member of the cnbc financial adviser council and david mendels. both advise clients on where to put their money. so there's the question, rich. after listening to that interview, are you advising clients to stay or leave pimco? >> right now, we are just staying the course. i think, you know, we are not taking a reactionary move. not trying to immediately get out of the fund. i think it is on a watch list. morningstar downgraded it today to a bronze level and make sure that the management continuity exists and we understand the flows that are outgoing and whether or not the liquidity is there within the fund but quite honestly, i don't think that one person has all the ins and outs of this fund or the company itself. i mean, it's such a breadth and depth of that organization to stay with the investing of the pimco total return fund and we
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have confidence in that team. >> okay. david, you're not so sure. you are taking a much more wait and see attitude in this regard, aren't you? >> i think, you know, panic is always overrated as an investment strategy so i'm not doing anything precipitous but, you know, look. bill gross is a smart guy but he's not the only smart guy there. morningstar bond manager of the year last year, so there's some clever people still there. waiting to see how everything unfolds. >> i have a note here that says you wouldn't be surprised if you were out of pimco by the end of october. why? >> i wouldn't be surprised but i'm certainly not saying that i'm committing to that. why wouldn't i be surprised? turmoil is never a good thing and investing with a fund manager, you are hiring a jockey and the jockeys change so there is some uncertainty there. i wouldn't be totally surprised if i was out. but i wouldn't be shocked if i was still in either. the jury's still out. i'm still looking.
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i think like rick. i'm waiting to see. >> sitting on the fence. sitting on the side of the fence waiting to see. rich, i'm sure you've had questions of the clients saying what about janus and should i maybe potentially move my funds there? what are you telling them? >> right now i'm not telling them to move there at all. the fund bill moved over to manage is 13 million compared to $220 billion and we don't know who the team is or what the investment thesis is going to be at that fund. i think right now what i've told them basically to stay, stay within the current investments. let's keep a wait and see approach. let's watch and understand how this co-cio or three of them that are managing this fund, how this transition's going to occur. i think sometimes you are stronger. pimco might find that just having bill gross as a face of this fund was really the problem. and a lot of retail investors don't think beyond that and
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realize that there's depth to this organization. there's 240-some investment professionals that help with the trading ideas and the risks that are imposed on the fund. >> but you have to admit, rich, he didn't go out on top. the total return fund is underperforming the peers and not had the best years making bad bets on the federal reserve of monetary policy. >> no doubt about it. that's absolutely, bill. that's something that you have to with any fund, you know, not meeting a benchmark, understand why and either, you know, have conviction in the investment team to stick with it or pull the trigger and get out of it. look. there's people that have thinking that rates were going to increase years ago and we have been hearing it over and over and they haven't so, you know, do you fault someone with years of experience for making a bad call or stick with them and look at the level of activity over decades of investing and say, you know, i still have conviction in this firm, this team, this management? that's kind of a way i view it
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at this point. >> so no one has a perfect track record. this is high profile. david, let's help you form late which way you want to go here. for example, some people have been saying in the past maybe the fund is too big. is it a potential to do a better job in a smaller form? >> there's no question that that is a -- being oversized is always an issue. but they seem to have managed it. last couple 0 of years have been bad and nothing works all the time and premature to figure out what happened. less a matter of sitting on the fence than really trying to understand before we make a move. i think rick an ri pretty much on the same page in that regard. >> you're not the only ones taking that wait and see attitude. everybody's watching. people at pimco know that. thank you. appreciate your thoughts today. >> thank you. >> thank you so much. >> you bet. heading toward the close, 40 minutes left in the trading session. the dow looks like it wants to turn positive. down just seven.
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we were up 73. down 54. so maybe we're going out here with a gain. who knows? >> indeed. wild swings today, bill. major averages racking up a month of wild swings thanks to various fed comments, events in hong kong, middle east, russia, you name it. find out what's worrying main street investors the most heading into the fourth quarter. that's coming up next. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.
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okay. what we have got is the dow turning positive. you have magic touch. you said it may still be positive. the color is green. the cos&p 500 may be positive by the end of the trading day which is ever approaching us. >> lots of movers, though. dom chu is watching them for us. what do you got? >> flat for the markets overall. here's the bigger moves of the day. look at ebay heading for the best day in more than two years. the giant announcing splitting off the paypal business into an independent publicly traded company in the second half of the year 2015. another name leading the way is cintas with earnings that beat estimates and offered a full-year 2014 profit forecast and shares surging today, as well. shares of transportation logistics and trucking company con-way taking a hit in the trade. the company said it was going to increase the pay for neutral drivers. it's facing the most driver
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shortfall it's ever seen. the energy sector overall hit very hard today. newfield exploration and chesapeake on the natural gas side of things and this as west texas intermediate oil, bill and mandy, takes a huge hit on the day's trade. >> thanks very much. my favorite interview of the quarter, how main street is viewing wall street markets right now. >> indeed. this being the last day of the month and the quarter, it is time for the retail investor roundtable with cami zaraki -- >> welcome both. >> real people. real people. cami, fourth quarter, what are you doing? what are you thinking? how will you invest? >> well, you know, i'm going to stay the course pretty much is what i'm planning on doing. i think that the stock market is still the best place to get the
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best return on your money over the long term so i plan to keep my money there. >> okay. so no sweaty palms in your investment club. you call yourself a thematic investment manager. where are you finding value right now? >> i really like financials. i think that financials, especially the banks, are very well capitalized and i think that going into the stress test process in the next few months i think banks will surprise with their results and i think if the fed to give them that approval to start increasing their payout ratios and increase the dividend and i think pop the stock in the next one to two years and very bullish on financials in this mrkt. >> you have a few financial top picks we put up for the viewers, as well. cami, you were saying you're staying the course for fourth quarter, right in what keeps you up at night? take a look at the flip side of all of that. what makes you worried?
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>> well, i have to tell you, i'm not all that worried an enthat's because i take a very fundamental approach to selecting the stocks that i have in my portfolio. as does my investment club so we're always looking to buy quality stocks that we think are trading at reasonable prices and then when we think the stocks are fully valued we start looking to rebalance and pull our, you know, pull our earnings out. >> what do you think the stock market's going to do when the fed starts to actually raise interest rates? have you thought about that? >> the interest rates are so low right at the moment that i think we have, you know, some room for interest rates to come up a little bit before they have any long-term effect, any long-term negative effect on the market. >> you have been listening to a number of cnbc commentators. >> thinking it out through for
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themselves, as well. as a matter of fact. >> joshua, same question to you. what keeps you up at snigt. >> i think there's economic slack. i agree with cami's point. interest rates we won't see a tick up until mid-2015 and a slow process. the fed has been pretty transparent but i think that the fundamentals are strong and i think the growth will pick up so i mean the biggest worry i have is the geopolitical tensions around the world but the market has shown a lot of resilience and i think it's continued to continue higher. >> never enough time but we appreciate your thoughts and we wish you well with your investments. thank you both. >> thank you. >> thank you. >> appreciate it. >> love those interviews. what do you got, art? he's watching the interview there. yes, up, down? 30 minutes in the session. we're down five points right now. football legend joe namath
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is here on the floor of the nyse, smoozing right now. >> taking pictures and kissing the women. >> once he's finished kissing the women and men by the looks of it, joining us launching a neurological research center in florida. very, very relevant for football players and all those head injuries that have been in the news. also going to weigh in on the domestic abuse scandal rocking the nfl and does he think -- starting for the jets? stay tuned for all of that. also, when we come back, the pros weigh in on ebay spinning off the paypal unit. which stock you'd rather own once the split occurs, don't go anywhere. more applause, more joe namath coming up.
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ebay making a splash after announcing a spinoff of paypal into a separate publicly traded company next year. david farver talked about what this means for ebay. >> one of the most important new opportunities it gives e bay is control over its destiny to take its own strong cash flow, its
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own strong operating margin and reinvest back in their own growth and i think will lead to more focus, will lead to greater strategic agility and moving more quickly. >> well, big vote of confidence. ebay surging on the news. up 8% now. at $56.9 7. we want to know if you would rather ebay or the paypal shares when they're split off next year. cast your ballot right now on cn we'll be showing you the polling as we conduct our interview and the opinion on that from david garrity and ross gerber. welcome to you. carl icahn is pounding the table for this strategy. do you like the idea of splitting them off in. >> i was in favor of it coming about for the first time and clearly paypal is higher growth
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business and ebay's marketplace business showing decelerating growth and as he just mentioned you have 80% penetration of ebay accounts so clearly if it was going to grow, it had to be seen as an independent company. also, given the announcement of apple of apple pay coming out and then also with the war chest now that alibaba has, one could expect that there's greater competitive pressure, better to break up the parts if there's an opportunity to basically sell one of them. >> certainly alluded to that emergence of the tlets of apple pay and alibaba. the question to you, ross, is, you know, what we're basically posing to the viewers and listeners, as well. that is, come the middle of next year would you want to own the shares of ebay or paypal or neither or both? >> i would argue you want both. it's a good opportunity to buy ebay now and get the spinoff. i can argue on the ebay side, if they make smart moves, smart
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acquisitions of can expand their marketplace they can do very well and they have competitive pressures. on the paypal side, i love mobile payments and waiting for years and paypal can be a player there if they can get ahead of the curve and management is behind and they need to catch up. if paypal does the right things i think ultimately they have a brighter future than ebay and ebay could make move this is's attractive, as well. this is a better separate company than put together as one. >> to david, implying that there could be -- maybe i misread what you said but, you know, with alibaba coming online here, they have a huge war chest, could they go after paypal at some point? would you think that would make sense for jack ma to look at paypal at this point, ross? >> absolutely. depending on the structure of the ownership after the spinoff, if i'm alibaba, i would look at
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ebay or paypal and considering the success of ali-pay and how important to separate that from the alibaba shareholders, i would think it's smart for them to buy ebay. >> do you agree, david? which would you rather have? >> in terms of looking at the two, i'll take paypal. as well as also having alibaba coming in more on the e-commerce activities outside of china. you know, relative to the comment about ali-pay earlier, the reason it was spun off in china supposedly because of the government's concern of foreign ownership of a financial institution. >> right. >> obviously, yahoo! shareholders, i would use the word ripped off by jack ma and ali-pay taken away. concerned about alibaba coming in. >> don't you think apple pay will just destroy paypal? that's the biggest risk to
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paypal. it will revolutionize everything. let me tell you. i was at a fair and all the different vendors were using square. that's the way people are -- the small business owner is involved with transactions so if paypal bought a square, it makes sense. if they don't do anything, they're dead in the water with apple pay coming out. >> it's the best set of consumer demographics in terms of customer set and that's why bringing rival elements of retailers and other credit companies together from the standpoint of paypal, they have the dominant franchise in terms of developed markets and should be some type of acquisition. whether it's a square or another payment provider, still remains to be seen and the end of the day right now, the look for growth as an investor, paypal is the way to go. >> split up and made for interesting discussions and watching the space. you know who's happy? carl icahn said happy of spinoff. >> we closed the polls.
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58% of you watching would buy paypal. 42% would buy ebay. i think ebay has made a good investment and bought 12 years ago for $1.5 billion and presumably making more than that next year. >> one hopes. >> thank you for joining us. okay. about 22 minutes before the closing bell. let's take a look at numbers here. the dow is positive. i think also the s&p -- looking at the board here. just sitting on the flat line there but the nasdaq composite is currently sitting flat with an upside bias, as well. really, flat i think is the word. >> best word for it. a word that -- a word that art used to described the close. concussions plaguing all levels of nfl football. hall of famer joe namath trying to do something about that. broadway joe will join us, talk about his new efforts with a neurological research center that bears his name and talk
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about the nfl's domestic abuse scandal, the state of his team, the jets. quarterback controversy that they have going on right now. a lot to talk about with joe namath coming up after this. $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. ♪ i have a cold. i took nyquil but i'm still stuffed up. nyquil cold and flu liquid gels don't unstuff your nose. really? alka-seltzer plus night rushes relief to eight symptoms of a full blown cold including your stuffy nose. (breath of relief) oh, what a relief it is. thanks. anytime.
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is it really necessary to do an introduction of joe namath? anybody who doesn't know who joe namath is? >> probably not but we'll do it anyway. >> a legend in the nfl. hall of famer. this is the reason that joe is here today, taking on the fight of the debilitative effects of brain issues, an issue plaguing the nfl and the players that not only playing it today but in the past. >> you're absolutely right, bill. the joe namath neurological research center in jupiter, florida, opens today and today here is joe namath, the man himself, the legend himself. i believe, sir, you're committing $10 million of your own money towards this. >> thank you. i wish i had $10 million myself. but we are reaching out for help to find some folks that understand and have a heart to help. what i've experienced with traumatic brain injury and simply put it equals cell damage
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to the brain and brain cell damage leads to awful consequences down the road, symptoms to lead to dementia, et cetera. the treatment i received at jupiter medal center, pure oxygen did, in fact, reverse my brain cell damage. >> we're -- >> this is what we know. it can reverse, take the cell that is are damaged and bring them back to good health. >> you're looking to raise the $10 million. >> my bad. i saw committing $10 million. you're raising. good for you. that's right. >> did you see him flinch mentioning that? is it my imagination or are there more injuries now or talking about it more? >> we are talking about it more. of course, i think there are more injuries now because the game is more popular than ever. >> more intensity? are they playing with more intensity than you did? >> bigger, faster, stronger. going back to the futilistic art, the fighters, head trauma. >> do they need to change the
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equipment? they're changing the rules, right? >> nfl is working -- >> confusing the guys and can't hit the quarterback in certain areas and certain times. new rules, new penalties and do they need to change equipment much more? >> specifically, our head and the brain trauma, that doesn't have to be a sportsman to get it. you get it in automobile accident, kid falls off a bicycle or warriors come back from overseas with brain trauma, cell damage to the brain. this is for everybody. trying to get ten years down the road where we can eliminate some of the progressive brain deterioration because of the trauma. we know we can regenerate the cells. you're looking at the guys -- >> an example. >> amazing. >> scans before, during and after and the cog if i nif tests. >> we have to ask you about the scandals that have been surrounding the nfl recently, ray rice and much focus on domestic abuse. what are your thoughts on this? >> how's roger goodell doing with this do you think?
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>> is he the right steward right now? >> i'm hoping. i believe in him. the nfl trying the do the right thing. what i know and you may know, too, this is not a turn your head, look the other way kind of issue. too many people and every walk of society, none of my business. even though you know your next door's neighbor misbehaving of an abuse to a spouse or child or whatever. everybody needs to get on board in our country around the world coming to dealing with this kind of abuse. not just the nfl. but it's come to light more now because of when's happened with the immediate why. >> do you think the commissioner handled it correctly? >> i don't have knowledge. i have confidence in commissioner goodell. >> one of the thing this is's happened as a result, joe, is there's this sense that the nfl is such a big business that they're not encouraging the players to have fun anymore. you can't do the big celebrations in the end zone
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anymore. they have the other things that they want the players to toe the line. do you think that broadway joe namath would be welcome in the nfl today or encouraged? >> absolutely. >> the life style you led in the 1960s and '70s. >> one of the things about the sport we realize going through it, it teaches respect, teaches discipline. you've got to establish that discipline and maintain it. whenever we try to get away from some of it, you say the anti antics -- excuse me. let's move on. acting like you've been there before. >> tom landry, as well. >> that's right. >> you know what i'm talking about. it is not just what happens on the field but it's the off the field. which you were legendary for so i'm saying, would a guy like you who enjoyed life as much as you did be welcomed in the nfl today? >> welcomed yes. i don't know if i could handle off the field stuff, you see. that's another thing. but i'm going to tell you, the percentage of nfl players or athletes in general in a
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professional level, the small percentage that file up, hey, it's dwarfed by the guy that is are righteous, trying to do well. when we file up, we see it. and in this case, it's good because it's bringing to the forefront the abuse issues we need to correct in society in general. >> let's talk a little bit about the blackout rule. i believe the fcc eliminated that today. good for that or not? >> i never was -- from the heidi game on. >> remember? >> back in '68 when they took us off the air. i'm not familiar with the blackout rule. >> jets, they got a quarterback controversy right now. smith, vick. who would you be playing right now? >> smith no doubt about it. >> still the guy? >> he's a young man. who they invested in. second year. he needs the experience. if there's one player in that locker room that could look in the mirror and say i haven't made any mistakes yet, i haven't
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missed a block, a penalty. it's obvious what a quarterback overthrows, throws in it a bad spot and all. but example last week against detroit, decker catching the ball a couple of times and the best receiver, if he catches them like he is supposed to, the drive keeps going. you see? it's a team game. like life itself is a team effort? you know? >> it is, indeed. >> helping with the brain injuries, traumatic injury. we need to all pitch in with the abuse. eliminate spousal abuse, abusing children and we all start owning up, not just the nfl. >> yeah. for sure. any organized sport to worry about that. great to meet you, really a. thrill an i know everybody around on the floor here on the new york stock exchange happy to have the rock star joe namath. >> very excited. >> nice to meet you. >> seriously, good luck with the center in jupiter, florida, as well. >> wonderful. >> thank you, bill.
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>> joe namath raising the $10 million for the center in florida. we have got just over ten minutes until the closing bell. goodness me, it's been a wild of a day, right? we were up and then down and then flat lining at this stage the dow up by 11 points. the s&p is down by 1. so still in last ten minutes, really anything could happen. >> coming up, remember arthur andersen? put out of business for accounting fraud. remember that? well, it's back. sort of. a tax firm made up of former arthur andersen partners is doing business as andersen tax and the ceo explains what they're thinking resurrecting the arthur andersen name still to come. (vo) watching. waiting. for that moment, where right place meets right time.
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is your network ready?" we almost had joe namath back here joining us. >> so keen to get back in, wasn't he? >> let's talk about the markets. end of the quarter here. jill kanif and tim rudaro with
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us here. so we close out another positive quarter for all the major averages. seventh in a row for the s&p and the nasdaq. how much longer can this last, do you think? >> it's a little bit rough and it's been a very volatile few weeks but we expect that the market can continue to grind higher but a lot of volatility and investors have to be careful and do homework to find the right investments. >> indeed. what we have seen recently is commodities slammed by the strong u.s. dollar, right, tim? do you think like we're in for more commodity weakness in the fourth quarter, as well? >> i do. i think this is the end of the commodity dream. i think we tried to create an asset class out of commodities and i don't think it's real and people are frustrated. >> you're getting out as opposed to finding bargains? >> stocks of commodity companies are bargains but commodities themselves are in the. >> do you agree, jill? >> we believe that everything will cycle and times to be in
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commodities and edge we tend to be contrarian and look for the types of dips we have been having to enter into one of the positions. >> you will buy what he's going to sell you then? >> maybe. >> in f the dollar keeps going. hang on a second. we have a developing story at the moment here. who are we going to? comedian tracy morgan is firing back at walmart. dom? >> that's right. walmart earlier claiming that much or if not all of the injuries sustained of tracy morgan and friends were because of the use or lack thereof of safety belts, the lack of use of safety belts. tracy morgan is now responding to that walmart statement saying that, quote, after i heard what walmart said in court, i felt i had to speak out. i can't believe walmart is blaming me for an accident that they caused. my friends and i were doing nothing wrong. i want to thank my fans for sticking with me during this difficult time. i love you all. i'm fighting hard every day to get back.
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so, again, tracy morgan firing back at the walmart statement claiming that much of the injuries if not all due to the lack of seat belt use and tracy morgan saying he can't believe walmart is blaming him for an accident they caused saying they did nothing wrong. a developing story here. tracy morgan firing back at walmart. back over to you guys. >> all right. thank you, dom, very much. we're out of time. thank you both for joining us. >> thank you. sorry breaking news. live news is when's happening. >> we're coming back though for the closing countdown for this day. >> after the bell, the very latest on the historic protests in hong kong. a live view by the way, guys. very early in the morning there but very important day. we'll talk about what is happening there, why it matters to now on these shores, as well. you are watching cnbc, first in business worldwide. the competiw requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better
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bob. >> believe it or not. we were up on the quarter but this was really the worst quarter for the s&p since going back to the fourth quarter of 2012. negative in 2012. fourth quarter of 2012. so really almost the worst quarter in two quarters. still, it's a deceleration and the russell, down 7% this quarter. very rare to get that kind of spread up 1%, down 7% between the small caps and large caps. >> wonder if it continues in the fourth quarter. >> all kinds of issues of higher interest rates affecting small caps. traditional happens and so i guess not unusual. nonetheless, the size of the outperformance is quite noticeable. >> very quickly, when's been huge this past quarter? m&a. does that send warning signs or good? >> fantastic. particularly the global m&as. all involved in big deals here.
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the other big story i think is the decline in oil we have been seeing. >> oh yeah. just beginning there again. thank you, bob. see you later. mandy, see you tomorrow. >> see you tomorrow. >> stay tuned now, hour two with scott, kayla and carol. we'll see you tomorrow. all right, bill, thanks so much. we're back at post9, scott with kayla and contributor carol roth. here's how we're finishing the day on wall street. take a look at what the dow jones industrial average did on this day, down 25 points. a modest move across the board and, kayla, stocks are positive for the quarter. stocks are positive pretty nicely for the year. everything now centers on what happens next. >> yeah. and that's going to be the big question, scott. but you are seeing moving today on the technical basis. we have really weak data this morning. chicago pmi weaker than expected. consumer confidence is weaker than expected and housing data has really been not that great
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for the last couple of months but you were seeing a lot of people taking profits and also buying some names they wanted to be holding going into the next quarter and got a little bit of a whipsaw action today. >> people will talk about earnings, confirm and expand the rally or wreck it altogether. >> the interesting thing of earnings, scott, you will see a lot of the same and not necessarily going to get any big moves on the top line but you'll have the bottom line, probably be because the numbers have come down, financially engineering and buyback and end of the day we have this backstop which is the fed and on a global basis all of the central banking action and starting to see anything that looks like a pullback, we do get that backstop and ends up being for very short period of time not dramatic and while we have that in place i just don't see that changing. >> unless you have this infighting at the fed which, you know, kayla, people started to talk about. you know, we had another fed president on cnbc yesterday and
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you're going to hear more and more and there appears to be really a fight within that room over how soon to raise interest rates. >> that being said, we have two hawks to leave the fed in a voting capacity next year. the fed can't get anymore dovish than it looks to become next year. even though there's a debate over the fed raising interest rates and when it could happen, it does seem like they're holding on to the language. >> they're always historically behind the curve. i don't see why all of a sudden when you have a dove who's the lead person at the fed that you're all of a sudden going to have a shift in that. i think they're playing catch up and look towards the few cher for the history of this. >> fourth quarter every year but four since 2,000 is positive. september's been kind of rocky. october sort of flat. and then a pickup generally into the end of the year, a santa claus rally. the fed's the wild card in all of that. getting more hawkish talk out of
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the central bank, that could wreck how we're having this conversation. >> i agree. i think it's not just here in the united states but it's also on a global basis. you know, paying attention to what the fed's doing and looking at when's happening in europe, look at china, japan, you know, we have a feeding frenzy that's not going away any time soon so i think that we have to weigh what's going on here versus what's going on over there. look at the whole picture and you know my opinion in the long term that's not a good thing. i would like to go back to fundamentals and not fed-mentals. >> let's look at the quarter that was with dominic chu for the month and the third quarter for us. how did we do, dom, from a historical perspective? >> we are approaching a seasonally strong time for stocks as many investors expect things to maybe calm down or get that santa claus rally. take a look at what happened, where's the action been in the third quarter?
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maybe that trend stays your friend and goes into the fourth quarter, as well. health care and technology stocks did pretty well in the course of the past quarter. you can see there up by about 4% to 5%. on the lagging side, utilities and energy stocks. sensitivity to the economy, you want to call it there, you can see both down pretty big here. on the industry front, drilling down deeper, bio technology, the large cap ones did really well this quarter up about 16%, 17%. you can see one etf that tracks it is up about 6% in this quarter, as well. also take a look at specialty retailers, hasbro, mattel in opposite directions. a focus for investors in the all-important shopping season and of course we can't forget about a very eventful time for ipos. we heard about alibaba. came to market in the third quarter. take a look at the best performing ipos brought to market this past quarter. you see rewalk robotics, el
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pollo and mobileeye. and we'll finish it off with a stock of an investor that's a darling for right now and that's gopro shares. it is above 90. closing today at $93.70. the shares a little bit of weakness perhaps of today and stale very strong chart on the ipo side, especially for gopro. back over to you. >> thanks so much. i think another thing to keep eye on, small caps. did not do well in the quarter. you know? i've said it a million times. other people said it a thousand times. if not more. they lead on the way up traditionally and lead on the way down. you spoke about technicals at the top of the show. you have technical breaks for the small caps and the mid caps worth keeping an eye on. >> yeah. and certainly, it's leading a lot of investors to be buying domestic large cap stocks, especially when you see the small caps performing as they have. they do tend to start moving to
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the downside before the broader market does so certainly an index i know a lot of technicians are watching to see what sort of leaning indicator it can provide for the markets. >> you saw the russell. this is the russell 1. the russell 2000 nasty, carol, since july. >> absolutely. i think that's a good question about the foundation of the market. if you lock at the number of stocks that have not done well versus the number that have done well, you have few big guys and small guys that haven't. you have a small amount leading the market up and that's concerning. >> that being said, scott, russell valued at 20 times forward earnings. that's a richer multiple than the market coming into this year so there was a little bit of room for pullback, maybe more so even -- >> but to be fair, russell, small caps, high growth names and you would expect for hem to have a larger multiple and be ahead of the market. i don't know that that's necessarily the issue. i think it may be more underlying fundamentals of those businesses. >> earnings sort of give
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positive sentiment back to the market whether as a group they recover and people step in and buy anything including small caps. >> right. >> charles nedder with us, founder of charles nedder research for the calls. welcome back. >> nice to see you. >> guys like you live and die by making big calls on market. how do you see things shaking out between now and the end of the year? >> the price target on the s&p 2020. we hit 2014. that's the first thing. second thing is cycles top and bottom and totally out of the market. i dare to predict for the next many years you will not see the s&p more than 5% higher than that and major thing coming down, i'm talking about future, major collapse comes down starting in 2018 to 2020. and in 2020, the new bull market will start. >> yeah. i mean, look.
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if you go -- i said guys like you live and die making calls or big, you know, somewhat hyper bollic calls on the market and afforded nine lives because not all of the calls over the years as you well know and don't always come to fruition. >> excuse me. i challenge you guys always for the last ten years. come and show me one call that was incorrect. >> okay. in 2010 and 2011, i have in front of me, and i'm going off the notes i have here. you predicted the dow to fall to 5,000 in 2013. did that happen? >> i didn't say 2013. >> did that happen? >> wait until 2020. you'll see the dow at 5,000. >> you say by 2017, 2018, dow 5,000. that remains to be seen. >> i disagree with you. i'm going to look it up. i have it on my website when i'm on cnbc. another thing, in 2006, when the dow jones 10,000 i was sitting with becky quick. she says, what do you think? 2006, i said the dow going from
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10,000 to 14,000,300 and the december 27, 2007. looking at the performance when you invited many e in december 27, 2007, the dow at 14,300. >> charles, this is carol roth. i want to ask you a question of what's underlying the thoughts of the years ahead. do you think we're paying the price for all of the central bank intervention? is that driving your look into the future? >> could you please say it one more time? >> in terms of your prediction saying for 2018 or 2020, what do you think is driving that? do you think it's the fed and the central bank intervention? >> i think the big problem is deflation and saying every year. europe is already close to deflation. japan is still in deflation. china has a very low inflation. if the dollar continues to rise in the united states, we get deflation over here so the big problem is deflation. and i don't think the investors are ready for it for the moment. >> charles, how do you think deflation will actually manifest itself? because right now the most
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recent quarter we saw the dollar surge more than 9%. that's the biggest move for the dollar since the third quarter of 2008 when, of course, it was the financial crisis that was front and center and just beginning at that moment. so, do you think that because we're getting such a strong dollar that that is a precursor to deflation as you see it? >> we have to take a look and i don't know if you can agree with me but looking at the numbers biggest part of the world is already in deflation. here still so-so. but like i said, if the dollar continues to be strong, we get the deflation exported by the europeans and big trouble over here, especially because we owe so much money. now, deflation and inflation of about 0% was the norm between 1800 and 1970. so we had bull markets over there. only difference is now we owe so much man and deflation, you have a big problem of paying back. >> charles, i just got to know.
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i'm curious if you talk about the longer term calls about there's going to be a deflationary market and the market going down that much, what are you advising clients to do besides just all to cash but play it in the medium to longer term call you're trying to make? >> good thing is because we don't manage money and can be honest and neutral and we don't have to be bias and be sellers and sometime there is's no way to make money and you have to be careful which is now so the best thing is to be in cash. we're waiting soon we expect a low in gold and think we'll go back to gold but for the rest, i mean, the euro is bad. we don't trust the bond market. where should we invest? >> charles, did you think that we would be at 17,000 by this point this year? >> like i said, the target was 2020 on the s&p. i don't know what that means on the dow. around 17,000. >> yep. all right. well, look. if what i read is wrong, i'll be
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the first one to apl apologize to you. we'll check it out and see what happens for sure. all right? >> very honest. >> all right. charles nenner, thank you for joining us. carl icahn getting his way once again. ebay and paypal are splitting. something he's been pushing for. shares surging on the news s. this proof in the end activist investors are usually right? that's next. here's the head scratcher of the day. why on earth is the arthur andersen name resurrected more than a dekid after the brand destroyed by the role in the enron scandal? coming up, hear from the man leading that comeback. plus, our good friend kevin o'leary is here. do recessions end the dream of motherhood for many women? that's a new study suggests. details to come. relief. a cure. today,
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notch in the belt of activist investors, is it a positive for all investors or just those the loudest and largest? joining us is julia larosh and kevin o'leary. you've covered icahn's adventures. what do you think is different about this one maybe than the past attempts? >> right. we can say it may not have happened without icahn. they talked about ebay spinning out paypal for years now but icahn forced it to happen or pay attention to it and never had a compelling argument to keep paypal and ebay as one company in the first place. >> how much credit should he get here? i talked the people today. some suggesting he was vital obviously in getting this done. others suggesting that he simply kicked down an open door. >> no, i'm going to give carl credit and also going to give the entire activist class of
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investor lot of credit because what they tend to do is scrape the patina off a stock. they're not politically motivated. they don't care of leadership. they think of them as hired serfs an they want value for themselves and their direction is unified and focused so giving them a lot of credit. i'll note here that ebay spent millions of dollars fighting carl as an activist wasted shareholder's money and now they whack their ceo which was the outcome he always wanted. i like this outcome and what i really like, i see alibaba buying ebay putting it out of its misery. i love it. >> i see a similar thing but my big question here while you give credit to the activist, i give a failing mark to the board of directors. they're supposed to be the fiduciaries for the investors. seems like everybody but they knew it was a good idea.
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why do we need the activists? boards should be making the decisions if they're truly fiduciaries for the shareholders. >> kevin? >> most boards are cronies to the ceo that hired them in the first place and only now that an activist puts a wedge in between them and accountability on them. in the case of the ebay board, not just the ceo to be whacked, you could argue that the millions spent fighting icahn, whack the board members, too. clean the whole house. and this is only months later. this is not years later. months later. they should be accountable for the millions of dollars they spent in print ads fighting off icahn's idea and showing the fruit of the results. >> but, kevin, you would be criticizing the company if the company did not deliberately look at the proposal, do the fiduciary research and come, yes, a similar conclusion. if it decided right when carl icahn brought the proposal, we are folding and criticize the company for just going along with it without doing its own
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research. am i right? >> not a 24-month decision. it was months and months and months and while looking at the merit of the proposal, they could have seen it months earlier and then over and spent the millions, they see the light of day? eureka. we have discovered the path of least resistance? this stinks. come on. it's obvious what happened. >> not the first one to have this idea. this is floated out for a really long time. >> julia, the criticism of activists of wall street circles is short term-ism. trying to get a quick buck for them. share a shareholder's benefit at the end of the day but not much else. what is your idea? >> activists provide a vital voice for shareholders who wouldn't have the capacity or ability to advocate for a change of management. i think there's a positive and a win for activism. >> as you know, kayla, the activists criticized often in
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certain places are in stocks far lot longer than people give them credit for. >> they are. on the other side of the argument, too, scott, you have carl icahn buying into ebay and when they announce something or the company announced something, they suggest the stock goes up. they make millions on paper instantaneously. others do, too. that's where part of the criticism comes from. >> they're the investors they are and are the credibility they come with, when it's known that an icahn, lobe, whoever else you want to pick, takes a position it's going to go up. >> but they're not always right. just one look at jcpenney and just because the activist thinks of a certain strategy doesn't mean it's always right and some of the tactics frankly and this is my own opinion, the things i personally think bill ackman has done at herbalife has gone too far. >> this appears to be chapter 1 for creating value for
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shareholders. he wants some sort of m&a. he says the payments industry which paypal is an important part must be consolidated sooner these consolidations take place, the better. he credits that with the introduction of apple pay. talking to bank executives today they say no bank could do this with regulatory issues and maybe visa, maybe mastercard could. would you like to see that? >> all, i know that this payment business is going to have margins crushed very quickly, scales going to matter. paypal has a huge installed base and now free from ebay. you could argue without debating it that activist investors are the cure for weak indecisive management and ineffective boards. nothing wrong with this. and you saw the stock of ebay go up. it's all good, kayla. what's wrong with this outcome? >> that's, kevin, what if carl
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icahn speaking to us would say, yet more evidence that activism has worked. he's told us the very same thing. >> it works. >> i don't disagree in certain situations, sure. >> to kevin's point about who gets taken out first? ebay or paypal. >> i don't think alibaba can buy ebay and will be certain issues with the foreign buyer coming in. they call it sifius. the process by which they evaluate foreign buyers. i think paypal is taken out definitely first. >> there's an opportunity here. maybe it takes a year or so but alibaba would be looking for a footprint. we have made them famous in america in the last 90 days. it is a behemoth now and needs a foothold in europe and in eur e america. they could snap up ebay in two seconds and fight the regulatory fight and the process.
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shareholders applaud it and seeing that reflected in the move of the stock today. i'm not the only guy talking about the alibaba ebay combination. everybody's thinking what a delicious idea that is. >> i'm not telling you they wouldn't want to, kevin. i'm just saying that the hurdle would be very high. >> always a -- >> hurdles are there to be crossed. have some vision, kayla. have some vision. >> all right. i can see. we'll see. our thanks to julia for being here and kevin, as always, for joining us remotely. no end in sight in the protiss in hong kong but are they making any inroads with chinese officials on voting reforms? is this hurting china's economy or will it? we'll speak with someone doing a ton of business over there and that's next. it will soon be against the law in california to use plastic bags. anywhere. really. it's new law. we'll tell you about it and then kevin will tell us what he thinks.
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so, here are your choices: take the bus. or get liberty mutual insurance. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. see car insurance in a whole new light. call liberty mutual insurance. tensions in hong kong roiling markets here and abroad as thousands of prodemocracy protesters gather in the streets. >> dominic chu joins us with why hong kong is so important. >> so what's -- why it's important for hong kong, it is a
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trade and an economic power house for just a small area of land owned by china. so take a look at what we're talking about. it is considered by many as the third most important financial hub around the world. following new york and following london. because there are about 213,000 people in hong kong that work in just the banking and insurance business alone. that's a lot of people. if you take a look at the economic impact, just when it comes to banking and insurance, that particular industry is responsible for $43 billion worth of economic activity in hong kong. so a powerhouse on the financial side. if things flare up there, it could ripple out to other parts of the world. on the trade side of things, this is important, too. a major trade hub, especially for container shipping. just to give you an example here. last year, estimated $977 billion worth of trade was trafficked through the port of hong kong. that's a huge amount. nearly a trillion dollars. if the trade routes are
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disrupted, maybe that's a real issue and obvious reason talking about china, which owns hong kong, we are talking about the second biggest economy in the world. second only to the united states. china's got a $9.2 trillion gross domestic product so economic and political policy decisions coming out of there with regard to hong kong could have huge ripple effects around the world so again that's the reason why everybody cares. scott, kayla, about what happens in hong kong. the numbers are massive with regard to the possible impact. back over to you. >> perfect perspective for us to have going into the next segment and the next guest doing business in china for 25 years, among other ventures, founded hydropower corporation. >> chairman and ceo, john kune. john, welcome. >> thank you. >> what goes through your mind watching the pictures and development there is? >> i think the biggest ushs is a
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political one and that is that everyone has expected china to pave the way for -- i'm sorry. hong kong to pave the way for china's slow democracy. this activity makes that rather difficult to foresee. >> that's what this is about, right? mainland's fear of democracy spreading. if you give in to the students protesting in hong kong then millions, tens, hundreds of millions of people perhaps are going to demand the same thing. >> it's about the mainland and also about taiwan. the biggest diplomatic goal that any president of china can accomplish today is to somehow do what everybody on the mainland wants which is to bring taiwan back into the fold. taiwan's a democracy. they've been promised democratic treatment. china was -- hong kong was held up as a democratic example for
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all of those groups to follow. i think president xi is painted himself into a corn we are this problem. >> of course, none of us can know how this round of protests will eventually end but given that you have been doing business in that region for two and a half decades you lived through 1997, lived through the protests of the '80s. how do you compare and contrast these? >> well, i think first of all you have to start with president xi himself. he set himself up to be kind of a straw man. different than the earlier heads of the country. i think, also, the economic bloom is off the rose in china and i think that it's going to be tougher for the economy to generate the double digit returns they've had like in the past. >> when you look at china who's obviously now putting their foot
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down and saying we're not going to move in a direction that looks like free markets, is that a catalyst for more money to leave china and perhaps end up in the u.s.? is this a boon for the united states market? >> i think china, the net investment going into china has been trending down over the years. and i think that's going to continue especially with something like this. >> don't you think, sir, that this in a sense for people like you, people like us, investors who look at china a certain way, this is a wake-up call, that, you know, at every opportunity that they have there, whether it's in olympic games or another major world event or any event on a world stage to act as though they're embracing more democratic reforms but this tells the real story, does it not? >> i think this is the real story. i don't think china's anywhere near -- mainland china is anywhere near to koo accommodate what the umbrella revolution
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wants. >> you are willing to do business there? >> actually, our fund, china hand fund is winding down and our second fund will probably be in the philippines instead. >> interesting. good to have you on the show. thanks for coming in. >> thank you. >> chairman and ceo of kuhne's brothers. arthur andersen name is tied to the collapse of enron and some partners apparently think that the taint is washed away and reviving the brand. will clients flock to the brand? the firm's ceo joins us next. you heard about the baby boom but what about the baby bust? a new study says women living through a recession will never have children and the impact that has on the economy may surprise you. this story coming up later on "the closing bell." the competitw requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different -
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talk about making a name for yourself. more than a decade after its collapse, arthur andersen is back under a different persona. a san francisco based tax firm of wtas has purchased the rights to the arthur andersen name and renamed itself andersen tax. >> the big question, of course, is why. with us in an exclusive interview is ceo of andersen tax
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and a former partner at ar they are andersen. why did you decide to do that? >> original group came from andersen. as we started expanding outside the u.s., because we needed client solutions, we were -- we couldn't use our name because there were some trademark restrictions so looking at alternatives since most of us had come to andersen to begin with and representing our culture, that was a logical step for us. >> but you really feel like enough time has passed to bury any sort of stigma that was associated with arthur andersen previously? >> we don't have an audit practice and unusual that major tax or accounting firms don't have an audit practice but we feel that the regulatory environment shifted and should shift further, that a tax-only solution is a much better answer. in addition to that, as we did very thoughtfully looked at market surveys, because,
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obviously, we had the same concerns, the response we had both in the market surveys and since the announcement is overwhelming. i was mentioning earlier today i had four times in the first couple of days and the computer froze up because i had so many inbound e-mails from colleagues all over the world, existing clients and former clients, that when i would unfreeze the e-mail, i'd have 25 more e-mails so it's been astonishing. >> i would like to hear what kevin thinks about this. do you want to chime in on whether this is a good idea or a bad mark? >> mark, let me say it brings warmth to my heart. i'm a former client and the dais of the learning company we did 35 acquisitions with you. our partner of mel berg and helps us in the regulatory approval process and saddened to see the firm decline and i bet that you're doing this for a pragmatic marketing reason and tell me if i'm wrong. nobody's ever heard of your firm
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before on a national basis. i look at how much bdo is spending to get a national brand. the andersen name must have hundreds of millions of dollars of of brand value to a guy like me and spend money on tax and audit services. isn't that the real reason you're doing this, to save money on the marketing side? >> well, first of all, kevin, i'm going to call you after the show to get you to be a client again. but no. it's really the culture. our core values of stewardship where we have expanded internationally in the last 15 months, we now have 10 locations outside the u.s. and europe. since the announcement from former colleagues and independent firms, i've been contacted by over 40 firms outside the u.s. that want to join our organization. there was a culture and we operated as one firm. so we were financially aligned on a global basis. these are huge points of differentiation when you look at our competition.
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>> i just -- >> i think that this is a brilliant branding move because i think for most of the people who are in the business community, who are your target clients, a lot of us feel like the people who worked at arthur andersen got the short end of the stick. we felt that this coming down was really something that shouldn't have happened. the actions of a few people. from my perspective, from brand recognition, i applaud the move and think it's brilliant. >> we had 85,000 people lost their jobs with the mistakes of a few. and we don't look at this as a branding issue. we're hopeful it has a positive impact but just as kevin expressed some sensitivities, many of my partners had sensitivities discussing the process and there was some risk associated with it but we think it's going to work out great. >> going forward, you can't add an audit function, could you? >> we could but we're not going to. >> mark, i see that as a problem. why would i want to have tax services and when i need it with the audit services?
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why don't you go full monty? why mess around? go for it, big guy. >> because we think that it's important that the tax service that is are rendered are independent and objective. and we don't even think that the appearance of a conflict of interest is something that would be appropriate. and if you see what's happening outside the u.s., the netherlands passed legislation that's starting in 2016 is going to require audit firm rotation and starting next year, you cannot provide tax services to an audit client. the eu passing similar legislation related to audit firm rotation. we think the ability to be an independent standalone solution with equivalent tax competence is a big advantage for us and a point of differentiation in the market price and the response we have gotten. >> mark, we have to leave it there. thanks so much for coming in. >> thank you. all right. they're bagging plastic in
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california. >> well, plastic bags at least. governor jerry brown signing a law today for a plastic bag ban. plastic manufacturers are plotting a referendum to overturn it. the fight is coming up. and no oh boib. that recession hit us harder than we may have expected. many women will never have a baby. really? stick around for that.
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fixodent. and forget it. welcome back. new and disturbing breaking nulls on the ebola virus. dominic chu has more. dom? >> so the cdc, centers for disease control, confirming the first ebola case diagnosed in the united states, again, the cdc confirms the first ebola case diagnosed in the united states. they do not go into detail about where the occurrence happened. they do say, however, that they'll hold a briefing, a call, a briefing at 5:30 p.m. eastern time to address all of these concerns, the cdc will host a media briefing on confirming the first ebola case diagnosed in the united states to take place at 5:30 p.m. eastern time. so again, as we watch for these headlines and the developing story here, the place that you're going to see some of the headlines manifest themselves in the financial markets are in
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some of these drug makers that handle ebola experimental treatments. take a look at shares of tekmira. spiking by 11% on the heels of these headlines that the cdc has confirmed the first ebola case diagnosed in the united states. this is a developing story that the details are fluid. we'll bring you more details as they become available to us. but again, kayla, scott, we'll be waiting for the 5:30 p.m. eastern time briefing on this ebola case from the cdc and more details as become available. >> thanks. this is happening as the other americans who had been diagnosed have come into good health or at least better health and many african countries like nigeria that had seen recent outbreaks said that it's under control. so certainly a surprising and disturbing develop, dom. of course, we'll get any new
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details from him as soon as we have those. >> kevin, this is a human story, obviously. not so much a market related one. excuse me as i turn my phone off. the markets in general thus far have been able to brush aside or look the other way sort to speak when it comes to this story out of africa, mostly. i wonder how it changes the psyche of investors knowing the first case in the united states has been diagnosed. >> i think in the back of investors' minds this was inevitable with the amount of global travel that occurs but on the upside cdc is probably the best organization on earth to isolate this and act upon it and luckily we have good outcomes of others that have actually caught ebola and have survived it so i think it's a balance. nobody wants to see a major outbreak anywhere. but if we're going to be containing it and have the infrastructure to do it, luckily the cdc in terms of the way i view it as basically a citizen,
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watching out for it, couldn't get any better. i'm hoping to hear more from them and what they plan to do but these drugs have had good outcomes so hopefully, i always look at a story like this, every story has market reaction. you said yourself stocks up 11% and others down as much based on the concern. >> that being said, kevin, there's been reticence on behalf of travelers to travel to the regions or connect in some of these regions or even travel through the u.s. cities that have been holding some of these patients, even under quarantine so you have to wonder if there is an affect on the airlines or on some of the travel industries in terms of whether this would actually keep people from going anywhere. >> you know, kayla, i think about black swan events and maybe this is sort of one in the could be that in terms of market because so far war and political disturbance is isolated as we have seen has not had a major
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effect. oil down as much as it did given the conflict in the middle east and gold dead tells you a remarkable time. these are major political disruptions and isolated. something like this, ebola, a major contagion could be a black swan event and hoping that's not the case, obviously. but that is in the back of my mind as an investor. >> yeah. i think god forbid it happens, i don't think it's case one or 20 but all of a sudden if you get case 100 or 1,000, god forbid, spreads from there and moving quickly that's when this could become that black swan that kevin is talking about. >> dom chu, 40 or so minutes away from the news conference as you said from cdc and others. as we learn a number, the cdc saying 1.4 million, that's the worst-case scenario for ebola cases in western africa by the end of january. no telling if they have
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projected out in any sense as to what possibly they could think any outbreak of numbers would be here in the united states once one case was discovered. >> scott, again, to put that shocking number, that 1.4 million in perspective, remember that some of the context around that if nothing was done about it, meaning nothing, if it was held constant and no new developments that that would be possibly the number. with this particular instance here, it's of certain value here that we know that it's on u.s. shores and we have a head start on this thing. but the first case diagnosed here is key. of course, it will be now about whether or not there is this sense among the people who are working towards these ebola treatments may, again, spark some renewed concerns about whether or not there are drugs being brought to market quickly enough because of this. again, this is one instance and wait an see what the cdc says. i'm sure meg and myself
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monitoring that phone call very closely at 5:30 eastern time, guys. >> thanks so much. when we come back, california dreaming or a nightmare for some. >> with plastic bags plaguing the pacificocean, california set to become the first state to ban plastic at shopping outlets. the story and the reactions next. and tomorrow tune into "closing bell" when william lauder joins us. we're back after this. act i. scene 3. open port twenty-two-oh-one-seven on the firewall for customer db access. install version two-point-three of db connector and ensure verbose flag is set in case of problems. (clapping sound) isn't the cloud supposed to make business easier? get the one that can connect to the systems that you already have. today there's a new way to work. and it's made with ibm.
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don't expect the supermarket cashier to say paper or plastic, at least when checking out in california. >> this afternoon california became the first state to ban single use plastic bags. >> that's right. josh lipton is in san jose with the details and i hope a paper bag. >> well, scott, soon if you are shopping for groceries here in california, when you better have reusable bags or just get really good at carrying around food with your hands. that's because california's governor jerry brown just signed into a law a bill that bans single use plastic shopping bags. brown saying in a statement the bill is a step in the right direction. it reduces the torrent of plastic polluting our beaches,
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parks, and even the vast ocean itself. we're the first to ban these bags, and we won't be the last. the legislation prohibits grocery stores and pharmacies from distributing plastic bags after july 2015 and enacts the same ban for convenience stores and liquor stores the following year. grosserses will be allowed to charge a dime for paper or reusable bags. the environmentalists might be pleased with the news but not everybody is so happy. the american progressive bag alliance which represents companies that make plastic bags says this ban threatens some 30,000 jobs. the group wants to appeal the law and says it is gathering signatures to put the ban to a referendum in november. scott, back to you. >> josh, thanks. carol, did you know there was an american progressive bag alliance. >> i tried to join and they wouldn't let me. >> you live in california, don't you? >> no, i live in chicago but it's almost the same state. listen, here is the issue here. with all of the things that are
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going on in california, really, this is what the government is focusing on? and really what's the definition of a single use plastic bag anyway? i use them for packing material, they're great when you get out of the shower, they keep the moisture on your feet. you can reuse them. >> that's not something i think many other people do. >> maybe it's an educational issue instead of a legislative issue. >> kevin, what say you? >> you know, i look at it this way. you know how i feel about government regulations, and i asked jerry brown this question, tell me how this creates one more job in california. tell me why you would spend one minute of energy on this when this whole claim that it's environmentally friendly is also a myth. paper costs 40% more in energy to make. everybody forgets you have to make the craft paper. 80% more solids. why do i know this? because i am an environmentalist. so this is a myth that they're actually helping the environment. this is horrific. 40% of the landfills in
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california are full of paper. so this idea is obviously very populist for mr. brown, but i want him to answer me this question. i say this on behalf of every american looking at our 6% unemployment rate. tell me why this creates a single job in california. >> all right. i figured you'd have a strong opinion. we'll leave it there. we're going to take a quick break. we'll come back with the very latest on that first diagnosed case of ebola here in the united states. also look forward to what the last quarter of the year can hold for stocks. we're back after this. [ male announcer ] eligible for medicare? that's a good thing,
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welcome back. in case you're just tuning in, the cdc has says the first days of ebola diagnosed in the united states has been made. there will be a news conference with the cdc and other medical officials at the bottom of the hour at 5:30 p.m. eastern time. so we'll learn more about those developments a little bit later on. back here with the gang before we say good-bye. first day of a new quarter, kayla, starts tomorrow. maybe there will be some impact from the news and any more developments that we get and any more information we get overnight. >> and the start to the fourth quarter will be a busy one. you have the ecb meeting on thursday. many analysts expected to roll out any more details about its private qe program and then you have the jobs number on friday. of course, many expect the fed to stay its course but there's a
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lot on the table as we start the fourth quarter. >> yeah. pretty good quarter. not such a great quarter i should say for stocks. pretty good year thus far but we'll see what happens between now and the end of theier. we'll see you tomorrow. "fast money" up at the nasdaq starts right now. live from the nasdaq market site in new york city's time scare, this is "fast money." our traders are steve grasso, brian kelly, karen finerman and guy adami. the breaking news on ebola. the first days in the united states. meg has the latest back at headquarters. >> this news just coming. the cdc confirming the first ebola case in the united states. we're still getting details about it. there's expected to be a press conference at 5:30. we'll bring you more details. we also have news, cnbc has been confirmed with the texas governor's office that the governor of texas is aware of the first ebola case there in texas. so that is currently what we know. the first


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