tv Power Lunch CNBC April 15, 2015 1:00pm-3:01pm EDT
into this earnings. >> bank of america. mike made the case that he could make no credible case to own the stock. did they give you any reason to own it today? >> not enough judge. you wanted to hear something more about the brokerage side of that business. it wasn't there. >> thank you, guys. thank you, josh. >> you're welcome. thank you in the back as well. >> power begins now. >> halftime is over. power lunch and the second half of the trading day starts right now. >> thank you very much. along with mappedy drury, we start the hour with two important questions and some scary video. >> yes. question number one, does google have a giant problem in europe? they are accused of violating antitrust laws. >> what happens if fast food companies are forced to raise worker pay? what happens to the menus? the cost of the food? most importantly the stocks. >> we begin with a stunning
moment in the european central bank news conference. have a listen and watch. the news conference was in frankfurt at 8:30 a.m. new york time. it was short after after he began speaking and he was interrupted boy the female protester who screamed and threw glitter on him. >> screamed and threw glitter on him. it took a few seconds before security was able to subdue the glitter-wielding disruptor. how does this even happen? joining us now is steve leesman in germany. welcome and good to have you. steve and annette, both of you have been in these press conferences before. what is security like? does it make sense to you that someone like this could break in and breakthrough this way? >> it's going to be seen as a clear lapse of security
protocol. what we heard is we started off reading the statement we have gotten the last couple of hours we watched the video. the statement from these, the initial findings suggests the activist registereda aids journalist and does not represent like all visitors she went through an identity check, meddle detector and x-ray which does not solve the problem. they did not check with the news organizations whether or not she had the credentials at the door. it seems to be a clear lapse. >> what are has been the lapse to what happened earlier today and two, what steve points to as a clear lapse of security. >> it's a clear lapse of security and let me bring you a little bit of a wider picture and how journalists are getting into that building they have to have a press card. here in germany and other countries, it's easy to get a
press card if you have a criminal energy. you will get one for sure and for now, the ecb is accepting them. they don't do background checks. especially to say you have a press card and an id you get into the building no matter who you are and where you are working for and which you are working for. that's the general sense here. they are saying they are not going to change that. >> this is a difference with the federal reserve as far as i know. i don't believe they let anybody in at the federal reserve press conferences and the building. they recognize certain ones and it has been ongoing within the fed and the rise of these online media organizations and who they should let in and they opened it up. a press card is not enough. >> and the protester was shouting and he had a t-shirt with a k inside as well. i believe you were sitting right behind the protester as this was happening.
>> actually she was sitting in row one and i was in row three literally on the same row. she was not really -- it was not noticeable that she was a protester before she was wearing a jacket. you couldn't see the t-shirt and she was just wearing a normal ordinary handbag she left in the room. security came back later to collect her handbag. this person was not suspicious. i have to agree there needs to be background checks on people who are getting so close to the likes of them. they are saying that she has been x-rayed and prevented to bring weapons inside the building. you don't really know how creative these people can get and smuggling things into a building these this.
>> we will check your pockets every time you come on. >> and pat you down for glitter. it was the second protest against them in a month. >> this was not the first time they used unusual objects. this was the first time they used glitter or confetti. bill gates was attending a meeting when he was hit with a cream pie as he entered the building. they later said it was just a prank. >> in 2011 murdoch narrowly avoided getting a pie to the vase when he was testifying. quick action by his then wife ensured the pie missed its mark. >> george w. bush was speaking at a press confwlens an iraqi journalist hurled his shoes at the stage. the president displaying quick reflexes and dodging the flying footwear not once but twice. >> changing topics fat food workers staging a strike in 200
cities demanding better pay. zack roth is in new york. what are you seeing there? they call it the largest ever mobilization demanding higher pay. they come in with momentum and wal-mart t.j. maxx and even mcdonald's which has been the main target of the campaign announced wage increases. they call the mcdonald's increase which was only $1 an hour and only 10% of the mcdonald's workers, they call it a pr stunt. they won't settle for anything less than $15 an hour. they have seen cities and states around the country have raised the minimum wage as an issue in the presidential campaign where you have hillary clinton talking about the deck is stacked in favor of those at the top. they feel like they have the wind at their backs right now. >> thank you very much for the report live from new york. over to you.
>> thank you very much. will these protests affect the business of fast food restaurants such as mcdonald's? let's bring in peter on the phone. a senior restaurant analyst at the group. thank you for joining us. as we look at the video and it is as we pointed out a global phenomenon. do you see these kinds of protests ending up raising the cost of fast food businesses, the corporate owned or franchisee and what would it do to the stocks of the companies? >> thanks for having me on. i think overtime mcdonald's is raising wages. we saw the 10% increase for their workers, the corporate workers. however i tell you they can't force the franchisees to raise wages and can't force them to raise menu prices. seeing the wages go up across the board, i don't know that we
will get the $15 any time soon. i don't know that there is much corporate can do to really push franchisees. it is suggested that they raise wages and they can't force them to do it. they make up 90% of the system here in the u.s. >> this is not just the effect nor are the targets aimed at mcdonald's. other fast food companies and wendy's among them. burger king and others would be part of the aim here. is this a jeopardizing factor for the stocks? if i own one of these like sonic or duncan or mcdonald's as we see there. should i rethink the investment? no, i think if wages are rising and wal-mart and t.j. maxx raises wages, wages are going to
rise and they are going to have to pay and create inflation. the cost of the big mac or the whopper will go up with it. in the interim, you may see that. overtime, the only real solution is to raise prices for the consumer. that's what you will see. following the restaurant biz. >> california's water crisis is raising concerns about whether the four-year drought will have an impact about the economy. the drought will not likely have an impact on the state's economy or budget.
they say a persistence drought warned that might be the new normal and is a long-term risk to california's economy if it slows home construction or it leads to higher food prices. agriculture makes up only 2% of the state's economy and it grew even as food prunkz shrank back in the 1970s. >> mandy, thank you very much. china's red hot stock market up 25% so far this year. but is this bull run coming to an end. we have worrying new data on shina's economy. can you trust the numbers? is it worse than investors think? former secretary goldman sachs ceo hank paulson will weigh in. i am blocking it. an amazing video of a chinese high-rise 57 stories up built in 19 days. we'll be right back.
[ male announcer ] legalzoom has helped start over 1 million businesses. if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom. my feet felt so heavy at the end of the day. they used to get really tired. until i started gellin'. i got dr. scholl's massaging gel insoles. when they're in my shoes my feet and legs feel less tired. it's like walking on a wave dr. scholl's massaging gel insoles, i'm a believer! if you're running a business legalzoom has your back. over the last 10 years we've helped one million business owners get started. visit legalzoom today for the legal help you need to start and run your business.
shares going down negatively. back over to you. >> thanks and we will see you. am the ceo of angie's list is stepping down. news is being broad by rival, nokia. they will expand the telecom equipment business. cowen research beginning research on starbucks and chipotle. not a huge impact on the stock. they both barely moved. >> new fears of a slow down in china. the economy growing at the slowest pace since the 2008 financial crisis. stimulus failing to find traction and retail despite all of this china's stock market up at record highs. 26% higher. just so far this year. the former secretary hank paulson on "squawk box" raised a red flag. >> i'm not surprised by the
growth rate. the growth rate is not really what i look at. i look at the source of the growth. china has had great economic success as we all know. taken hundreds of millions of people out of poverty and second largest economy in the world. this is a country that has a growth model that is running out of steam. >> while the former treasury secretary is questioning china's boom cnbc is reporting on an amazing construction feat in beijing. they built a 57-story building in only 19 days. >> they say rome wasn't built in a day. maybe it would have been if this chinese builder had anything to do with it. the sustainable building is bragging they constructed this high-rise at a rate of floors a
day. 57 stories in 19 days. why? fast construction this manager said is better for china's environment. >> translator: our method consumes less energy and is ecofriendly. where as traditional buildings generate a lot of pollution. >> construction projects everywhere here create a lot of dust. the government declared a war on pollution so real estate companies like broad believe that environmentally friendly buildings are the way of the future. the tower's parts are constructed first inside a factory. these prefabricated sections are numbered, bolted trucked to the site and pieced together like a massive jigsaw puzzle. a real life lego land. the result is a building offering office space for 4,000 people. 800 apartments ready for home buyers here to move in right away. speed is one thing, but is the
skyscraper safe? the techniques are lab tested the company said and certified. >>. >> translator: this building is definitely safe even if there is an earthquake or too many people in it it won't collapse. >> good news for those who might want to live in the developer's next complex. a 202 floor tower that they plan to build in roughly the same number of days. beijing. >> 202 floors in 57 days. my goodness. it's tax day. my goodness. one of the biggest issues this tax season revolves around obamacare. unexpected tax bills for many filers. we will explain. plus -- >> up next power pitch giving fans access to the ultimate tweet life. >> the goal is to make luxury suites available to fans and businesses. >> will this founder hit a home
run or strike out? >> we play about what the nature of each transaction is. >> how do you protect your positioning? >> stay tuned to find out. you can call me shallow... but, i have a wandering eye. i mean, come on. national gives me the control to choose any car in the aisle i want. i could choose you... or i could choose her if i like her more. and i do. oh, the silent treatment. real mature. so you wanna get out of here? go national. go like a pro.
man: you run a business. could be any kind of business. and every day you've got important decisions to make, like hiring. where are you gonna find those essential people you need? with ziprecruiter, it's simple. we post your job to over 100 job boards with just a single click, so you can reach millions of qualified candidates. then we'll give you the tools to help you manage, screen and rank your applicants all so you can find the right one. try zip recruiter for free today.
they are up over 10%. some of the big drilling companies offshore having a nice day. back over to you. >> nice day indeed. time now for this week's power pitch with baseball season under way. one entrepreneur said he is offering a ticket to the coveted luxury suites. we gave him 60 seconds to pitch it. >> i'm the founder and the goal is in the luxury suites. in the elevated experience. billions of dollars or less on the table every year is completely empty for thousands of effects. you can sell individual seats or even your full suite for those effects that would otherwise go unused. for businesses and fans looking to get access to et suites they provide the most transparent
inventory and make a complex reservation simple and easy. eight months after launch we helped thousands of fans in a wide array of businesses. games, concerts and events. we are excited about the growth and ready to make suite hopping the best way to attend live events. >> i like that. welcome to "today's" power pitch. you just saw the pitch. let's meet the panel. the board member of the new york angels focuses on on the intersection of consumer. nat burgess, a firm that advised hundreds of software companies in more than a billion dollars worth of mergers in acquisitions. and from the bay area collaborative funds and investing in consumer market places. the firm raised more than $40 million. great to see you all once again. you are in the hot seat sir.
>> i understand that you don't find it exclusive to sellers. how do you find it competitive? >> we have a running start and have been in the industry for 15 years. we have solidified relationships while they are not exclusive on paper, we are the preferred vendor for a handful of teams right now. >> nat? >> the venues could shut you down and the scalpers with the higher values and they have the future. >> after the financial melt down the rates have not supported the inventory. they have sold the tickets to the ticket brokers and needing help to be sold and we are the channel for them. >> is it mostly a small business or are they owning it on a per
diem basis? >> we are doing 50 brands and tours for them across the country. we have local and small and medium sized businesses that wouldn't be able to afford a suite and birthday and bachelorette parties on a per game or a per seat basis. we have seat hunters that will let you pick up four seats in the suite for a game. >> some sellers have contracts that prevent them from reselling. how do you get around that issue to expand your inventory. that are are they need the suites and they are not reliant on the ownerships selling their suites. we have the teams and the ticket brokers, but they are selling the suites listed on the exchanges as well. >> how many? >> i'm curious about the market place dynamics. can you explain the nature of each transaction? >> we haven't built out the back
end for sellers to manage listings. they will be out here in 45 to 60 days. a seller would list seats and decide how much they want to charge. the buyer sees a price that is 20% greater and keeping a 2o% fee in the middle and including shipping, our services of helping you plan or the katering is included in the price as well. >> we heard what he had to say and we heard if the panel is in or out. >> i love the concept of unused suites. people want the efficiency and transparency, but they are involved transactions where you have to think about planning and catering and staffing. until they get to a point where it's more of a commodity, for the time being, i'm out. >> nat? >> i love the exchange model and the valuation and socials trading at 10 times revenue and
travel at eight, but the challenge is you are waiting for the rules to change in your favor. if they do you have a huge home run and if they don't, you have nothing. i'm not a gambler and i'm out. >> i'm most interested in how they get inventory. this is a hyper local relationships driven business on the supply side. if they can figure that out, they can have an interesting business. until they do i'm out. >> good advice there. what's your reaction. >> i know the market about as well as anybody else. i will take it with a grain of salt. >> best of luck to you. also to those on our panel and that is today's power pitch. >> we all heart what the panel said. are you in our out? you can tweet us using #power pitch.
visit power lunch.cnbc.com. >> while the stock markets soared to record highs, they are up a whopping 2%. where are the opportunities here in the good old usa. three growth stocks to buy and one got an upgrade here. happy tax day, everybody. obamacare is leaving many with an unexpected tax bill this tax season. we'll be right back. it recognizes pedestrians and alerts you. warns you about incoming cross-traffic. cameras and radar detect dangers you don't. and it can even stop by itself. so in this crash test, one thing's missing: a crash. the 2015 e-class. see your authorized dealer for exceptional offers through mercedes-benz financial services.
>> hello, everyone. i'm sue herera. senate finance committee oren hatch hopes to reach an agreement by the end of the day on a bipartisan bill to stream line the passage of those in congress. thousands of rugs have been displaced as wildfires rage in siberia. they blame unseasonably dry hot weather. about 1,500 husky brand bike hooks are being recalled because they can detach posing an injury risk to bystanders.
the hooks were sold at home depot stores nationwide. take a look at this. a skydiver had the fright of his life when his parachute mall functioned. his helmet camera fell off and captured a 5,000 foot plunge to the ground. he thankfully was uninjured and the camera was undamaged. that's your news update this hour. back to you. >> i can can't imagine watching that. amazing. >> thank you very much, sue. >> let's get out to dominic for a market flash. >> shares are up about 12% as the company boosts estimates for the full year ending this month. recent sales signalled demand and they are now returning to normal levels. smith and resz on up almost 54% and larger rival gunmaker up
about 10% on the news from smith and wesson as well. >> thank you very much. gold prices are closing right now. let's take a look at what the precious metal is up to. it's up by about $9 at 1201. they had weaker than expected economic data. let's go to the other metals there. silver copper palladium and platinum moving higher. >> stocks near the highs of the day as you will see in a moment. bob is keeping an eye on the trading action. >> we are at the highs of the day. i know the volume is lower and everybody is complaining about it. the lowest levels of the year. wake up everybody. we are in the middle of a slow melt down and we are at highs.
mid-cap at a historic high. the s&p, we are seven points away from a closing high less than 0.4%. we are there and nobody seems to be talking about it. how about the earnings? everybody has been worried to death about the earnings and we lowered expectations and nothing is happening. bank of america is light on revenues. it's not doing anything. they talked about slower trading, but earnings were in line. delta airlines talked about the strong dollar as they knew they would. it's up 2% anded welling in the transport. in other words, earnings are coming in roughly in line with expectations and the market is strugging off. we have big overbought territory. what's going on overseas? take a look. double-digit gains of 26% year to date. germany up 24%. spain is up and even brazil is up with the s & p up only 2%.
if you look at oil, that is poised to slow down and we had big gains. some up 10 or 12% on the year. we are ready for the poise in the oil sector and maybe the rest will catch up with them. >> thank you very much. cisco shares are making a move today. they talked about digital disruption on "squawk box." >> every country, every city every company, every home every car, everything you wear will be digital. it will be connected together. from a country perspective, it determines the growth and the job creation and the health care systems. every company will be a technology company. the speed will be brutal. probably 40% of global enterprises won't exist years from now. even within the high tech sector, probably half the major players in high tech won't exist this a meaningful way in ten years. >> wow.
let's see how the other stocks are faring today. facing that diagnosis. bertha coombs is live at the nasdaq. >> i would argue everything is already digital. many respects we don't see it. today we have got the nasdaq back and intel leading the way. when was the last time intel was the biggest gainer on the nasdaq. revenues is cautious and it's better when they are raising the price target and that's having a nice lift for the chips among the best performers. they are moving to the highs and they talked and they have done it again. they have been melting over the course of this week. you are getting that with names with the outlook for earnings. the energy names moving up higher and go pro getting an up
great. i call that the sporty spiz up great. my son has a go pro. >> thanks a lot for that. the foreign market is it time to be cautious? here with me and from the mute null asset management. great to have you with us. they tell us we are at historic highs or there abouts. what we call a baby bear. not like dooms day, but none the less at historic highs, do you think it's wise to be cautious from here on? >> there is a need to be
cautious at this point. we have all this quantitative easing. we will see it before the end of 2015. >> we will end lower than what we are now? >> we expect around 1950 which we got down 5%. we see that being a reasonable valuation. >> would you classify yourself as a baby bear as well? >> i don't think i classify as a baby bear but the opportunity here and i agree with the caution kind of concept, but the reality or one of the opportunities is to think about maybe things are a bit more high quality type of company, things that can actually perform
regardless of the circumstances going on. as we touch highs and worry about these things and risks we are talking about earlier, those companies that produce no matter what the circumstances that have that quality underpinning are the kinds of things we look at and the kind of things we could turn towards now that we had the runs we had. >> give us three examples. >> we have one good example is a company like a basic blocking and tackling and mid-cap names makes needles ask syringes and 70% market share and an all weather performer. they do well no matter what is going on. as health care increases in terms of consumption, that will be a nice play. another one i like a lot is prax air. the industrial gas producer and they make all the gasses that manufacture processors. they are insulated from some of the slow downs we sometimes see because of how broadly
diversified they are from an industry perspective. a good position to have. i think the last one i mentioned is nike. one of the things that is important is even with everything going on in emerging marks, they have been doing terrific business in the use. double-digit growth and we think that combined with what still is an attractive opportunity ought to be a nice position for that company going forward even though they have done well in the market place. >> we have to live leave it there. i know david, even though you are cautious, you like housing. we are talking about renting and how it is getting more expensive. thank you so much. you can go to power lunch.cnbc.com to see how david is playing comments from the european central bank president. that is power lunch.cnbc.com. >> bond market with rick santelli tracking the action now. rick? >> tyler, it seems as though the
foreign exchange markets dictate everything whether how commodities move and they synthesize the data and trying to handicap what the banks will do. they are down the most and it's a bit of steepening going on. real tight range. interday booms and you are right. 10 1/2 base points and a new low on yields. look at the difference between the two. 177 and the widest in over a quarter of a century. next is euro versus dollar. that is a picture of volatility. back to you. >> thank you very much. urine eastern union accuses google of cheating competitors and launched another antitrust investigation into the android mobile parading system. microsoft went through nearly two decades. will google face microsoft's fate? josh lip is live in san francisco with the details; josh. >> tyler, regulators in europe
remember have been investigating google for years. they were not surprised by today's news. google did quickly shoot back saying it strongly disagreed with the eu and makes its case in the coming weeks. google faces a range of challenges to the business. take a look at the stock. it has gone nowhere over the past 12 months. they worry about ad dollars and moving towards social networks such as facebook. one, there is the potential of a $6 billion fine. google does a $70 billion cash pile. it wouldn't be a serious amount. the broader is whether regulators force google to dramatically change the business practices. one question is how could it impact the stock? some have drawn compare sosons
to microsoft and over that time they did under perform the market. for google the stock impact may be muted. >> the irony is this overhang comes in when the stock is mature. it doesn't have an impact with the valuation. if this happened years ago, it would have. >> analysts say a final eu decision whether that is a fine or change in business practice could occur by the end of the year. back to you. >> thank you very much josh lipton. baby food maker beach nut is recalling 1,950 pounds of one of the food products. you won't believe why. everything you need to know coming up next. also toyota is heading south of the border for a $1 billion expansion. phil has details on it; phil. >> it has been three years since they thought it was time to build another plant somewhere in the world.
they are doing it in mexico. why and what does it mean for the rest of the north american production? that story when power lunch returns. ♪ at mfs, we believe in the power of active management. every day, our teams collaborate around the world to actively uncover, discuss and debate investment opportunities. which leads to better decisions for our clients. it's a uniquely collaborative approach you won't find anywhere else. put our global active management expertise to work for you. mfs. there is no expertise without collaboration. there's nothing more romantic than a spontaneous moment. so why pause to take a pill? and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night.
tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. why pause the moment? ask your doctor about cialis for daily use. for a free 30-tablet trial go to cialis.com man: you run a business. could be any kind of business. and every day you've got important decisions to make, like hiring. where are you gonna find those essential people you need? with ziprecruiter, it's simple. we post your job to over 100 job boards with just a single click, so you can reach millions of qualified candidates. then we'll give you the tools to help you manage, screen and rank your applicants all so you can find the right one.
try zip recruiter for free today. >> you can see all up by over 1%. >> thank you very much. have you ever seen a city just disappear? that is pretty much what happened when a sandstorm swallowed this city in northern china. it happened yesterday when strong winds kicked up sand and dust. visibility fell to zero.
imagine breathing that in. >> beach nut recalling 1,950 pounds of one of the products. it is one of my favorites. the classic stage two sweet potato and chicken in glass jars. there you see it after a consumer reported an oral injury caused by a small piece of glass. there you see it. >> beach nut is really just the latest in a slew of recalls this year. here are the three caused by contamination like metal and plastic. just last friday cargo meat recalled more than 8,200 pounds of ground beef and the culprit is 7 inch long blue string found in the machinery used to package the beef. then to four weeks ago kraft foods pulled 6.5 million boxes of mac and cheese after they found pieces of metal in the boxes. back in mid-january, folks, j
and g foods, a massachusetts company recalled nearly 34,000 pounds of ground beef from six different states. they supply wegman's store brand ground beef with flexible plastic pieces in the meat. >> thank goodness they were flexible. toyota building a $1 billion plant in mexico. why now? the always flexible phil le bow has the answers from chicago. >> for makes sense for toyota to be going down to mexico. in mexico city at the presidential palace, the ceo of toyota north america shaking hands with the president of mexico along with other executives who were there wrapping up negotiations for a new plant in mexico. it will be in central mexico and build about 200,000 corollas a year. they will take that production from canada and moving it to mexico and converting it to the
canadian plant. this plant is scheduled to open in 2019 and we talked about this at length over the last couple of years. look at the production in terms of the auto industry out of mexico relative to the u.s. and canada. it is about 19% last year. the north american auto production and they are behind mex doe in kerms of auto production. this year it will be up to 21%. the question is for toyota the last to move into mexico how much does this bump up mexican production this year? in the next couple years. annual production this year 3.3 million. the lower labor costs attracting all of the major auto makers and keep in mind mexico has not only nafta, but major trade agreements with a host of countries, including brazil. it makes it a perfect spot for auto makers to set up a plan for exports and that's what toyota
will be doing am take a look at shares of toyota versus nissan. nissan is the largest foreign auto maker in mexico. you see they pretty much traded in tandem until october or november. up 30%. tyler, this is not going to be the last auto plant we see set up in mexico. this is a big move. not only toyota doing this but everybody is moving new production down to mexico. back to you. >> watch the space. thank you very much. a little girl's big message to her dad in space with a little help from korean auto maker, hyundai. a great story and incredible video. next on power lunch. in small business you have to work hard, know your numbers, and stay focused. i was determined to create new york city's first self-serve frozen yogurt franchise. and now you have 42 locations. the more i put into my business the more i get out of it. like 5x your rewards when you make select business purchases
with your ink plus card from chase. and with ink, i choose how to redeem my points for things like cash or travel. how's the fro-yo? just peachy...literally. ink from chase. so you can. hey, girl. is it crazy that your soccer trophy is talking to you right now? it kinda is. it's as crazy as you not rolling over your old 401k. cue the horns... just harness the confidence it took you to win me and call td ameritrade's rollover consultants. they'll help with the hassle by guiding you through the whole process step by step. and they'll even call your old provider. it's easy. even she could do it. whatever, janet. for all the confidence you need td ameritrade. you got this. being a keen observer of the world has gotten you far but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier.
capital to 1% of the shares. that's along with activists and real estate with tyler. back over to you. >> this is one out of the world moment. a girl wanted to send a message to her dad on the space station. hyundai helped her out as part of the ax d campaign. they used 11 cars and the del mar dry lake in nevada to create a steph loves you. that is really, really cool. a steph loves you message in the sand. he was able to see it from the space station, taking pictures of the message and the largest tire track image created since i cut donuts back in 1982 from a parking lot of an econolodge in new orleans. that's another story. according to guinness world roars, they benefitted getting more than 8 million views. that is really cool.
>> i am getting spine tingles. that's a really cool thing. >> let's take a look. they have cheating rivals yet again and launched another investigation into the mobile operating system. investors don't seem to be worried. they could face a fine of up to $1.5 billion. they will create 200,000 cars a year and fast food workers walking off the job in restaurants in more than 200 cities to demand higher pay and the right to unionize. >> the top democrat in the senate said he would ban football, but not boxing. we will let him explain when we come back in two minutes. he had a boxing issue like an exercise band a few weeks ago and it hit him hard. we will be back in two. u, my friend, recognize when a trend has reached critical mass.
cockpit thing. several streets were temporarily closed and a pilot trying to deliver a campaign reform message to congress. that's really not the way to do it. it's tax day and perhaps the sharpest pain is hitting the people getting slammed with the obamacare noncompliance tax. for those folks even if they sign up for a plan the pain may be just beginning. that is the topic. a story that sharon has been looking into as well. >> that's right. you performed health insurance on market places last year and you need to include a form with your return that shows the tax credit paid in advance.
hundreds of thousands of tax filers and 800,000 filers received a form or may not have gotten one at all. you can amend your return and there is no rush on that. if you haven't filed a return file an extension by midnight tonight. if you can't get the return completed by today because of the issues here's the bad news. here's one of the tax issues that they may face because of the affordable care act and more next year. about half of taxpayers had to pay a portion of that back since they under estimated the income when they signed up if are experience. on average, they said effective taxpayers had to pay back $530 reducing the average refund of $3100 to $22,570. some tax preparers say more will
face that because there will be more people signing up for health care coverages from exchanges. they are more optimistic, but said it's going to take people calculating their income accurately to make it work. >> that's going to do it for the first hour of power. >> let's toss it over to brian. >> all right, steve. >> growth was moderate to slight and steady rather than modest. the reason is you see three factors affecting the economies. blame it on the strong dollar and weather and just for brian's sake here, he loves doing this. we did it for him. here's the official count. the dollar is 19 times. on the dollar, they had chemical
exports and manufacturer and there was some in four stricts. a falloff in canadian shoppers in new york. that's an interesting development and manufacturing profits overseas were down sig thif cantly. i want to get to the effects of oil in multiple districts. here's the impact of lower oil prices. as diverse as it is they had a company making the oil business and it did help lower oil prices. down in four districts, this was interesting. production was strong. it lowered prices in chicago as well. moving on to a couple of other quick calculations of the economy. businesses service were reported rising especially high tech. weather in there and retail was boosted after improving weather.
real estate was stead tow improving. i wanted to show you the economy. contacts across the system foreign formally reported they were optimistic and many expect a greater than normal upswing this spring. interesting to think about. in addition, saving the best for last. they do it equally beautiful. oil because i did my own word count. mentioned 46 times and this one 50 times. it appears that oil is well on the radar and came off a little bit. let me get it straight. is the federal reserve blaming weather and canada and canadians? >> yes, i believe the canadians are entirely at fault. >> canadian shoppers in new
york? >> i lived in buffalo and those canadian shoppers would go either way. this person said us they would not be doing the kind of shopping they expected relative to prices in europe. >> all in all? >> it reflects the economy we have been tracking. it's a lot of interesting dynamics that could be reversing and the comment really jumps off the price. i want to call right now and ask what she thinks. >> it's not a call in show but i will say your cell on the air. >> do that. that would be helpful. >> the sen-year yield. not a big market reaction. >> not a big reaction. where we see the reaction is not to the beige book but the price of oil which is the real stand
out. we are seeing the oil and that is the strongest sector in the markets today. what i thought was interesting is sewerism in atlanta is that relined. >> how? >> that's what steve leesman said. >> very specifically that people were driving to -- by the way, the atlanta district. >> the chattahoochee river? >> in florida. >> i'm glad you asked that. i should have clarified. people are driving more. >> to disneyland. >> that's the first time you said that to me. >> that are is good news for disney. good news for disney and the parent company of comcast. we owned the universal team park. >> you are are thinking of that stuff creekly, they need to think about both sides of the
coin. we have energy suppliers and disneyworld in florida. that's how the economy is. >> it's a wealth transfer. >> and there is a geographic and an industry aspect and a stock aspect to it. you are trying to figure out the winners and the losers. people who say it's all losers will be losers themselves. >> now big news out of the second biggest economy. china with the slowest quarterly growth rate in two years. listen to what hank paulson had to say on "squawk box" this morning. >> i'm not surprised by the growth rate. the growth rate is not really what i look at. i look at the source of the growth. china had great economic success
as we know and taken hundreds of millions of people out of 54 efforty. this is a company with a model that is running out of steam. >> let's bring in the professor at nyu and the author of what the u.s. can learn from china. someone more bearish on china, uc irvine and director of the netflix documentary death by china. america wouldn't mind having a problem where we declined to 7%. do you feel like hank paul is off base and the economy and the economic growth is sustainable? i would agree that the model they had relied on is no longer sustainable and china made many attempts to communicate desire to get away from the old normal
to a new normal that will be less reliant on export growth and less on infrastructure particularly the real estate market and transition that economy to a service economy. that has a larger consumption component as well. when you look at the numbers, it's clear that it is happening. did you manned from the west has basically shrunk their desire to have chinese imports. china also imported a lot of energy, but since oil came down that has also spread throughout the economy. >> i hear you and they want to go to a service economy, but to move, you have to have people
that you can sell goods and services to. because we see these coming from shanghai and beijing. we forget that the average income in china is about $5,000 u.s. a year. can you build a service economy on that? >> you can, but it takes time. people living in the tier one cities their per capita income is much higher than $5,000 a year. where it takes it down are the rural people that is still half the population. they are extremely poor and you have this average of 5,000. the middle class in china defined by the larger cities they are about 350 million people. the service economy can certainly gain legs because there is a lot of low hanging in
china in services and marketing and health care. there is a number of areas where they could use more people in the service economy. >> so peter, it's a wide ranging interview. hank paulson, a very smart and successful guy who speaks in a round about way. as i was listening on the radio, something he said immediately caught my ear and made me a little bit nervous. listen to this hank paulson quote on where he said municipal and regional quote is largely coming from in china. >> they are too reliant on exports and they are too reliant on municipal debt to fund infrastructure. government investment and infrastructure. when they need revenues, they don't have access to a lot of sources and they take farmers's land and sell it. >> peter, listen to what he
said. unless they take farmers's land and sell it unless they confiscate land and sell it i understand it's communist and state land and whatever but to me that sounds a little bit -- i don't want to call it a ponzi scheme, but you run out of land to sell and who are you selling it to? >> let's cut to the chase and name the model that seem reluctant to do. what you have got is a mercantilist export model from china coupled with a kind of canesian on steroids stimulus that occurs at the municipal level by building infrastructure that requires steel and land from farmers. that basically is the model. let's talk about whether that model is going to persist overtime and give us prosperity or poverty. i say poverty. the problem here basically is on the america tile is expert
driven and two biggest customers are europe and the u.s. the u.s. clearly is the stronger of the two and we seem to be slowing back down. europe basically has long-term structural problems and trying to deal with the short-term cyclical qe. i will let rick go crazy on that. >> let me jump in for a second. is the biggest problem china has as an export-driven economy the stronger dollar? i understand they are attached in a window. it's not going crazo exchange rates. is it something about that? >> no the at all. the problem is simply that the two erntities that provided the 10% growth year after year are too weak to sustain that. you have to remember we were hitting 3.5% growth year in and year out from the end of world war ii until the time that china
joined the world trade organization in 2001. since that time we got into this new normal of 1.5 or 2%. that kant going to cut it and europe at a 0% growth rate. the problem is structural. export-driven china. we two consumers. we go through the quick checklist here. you basically got rising wageses and labor issues and horrific pollution and water shortages and they are beginning to constrict supply. a stock market and real estate bubble and got what hank paulson mentioned which is the municipal governments running out of control and stimulating all sorts of growth and the biggest dhing is kind of like the elephant in the room is this rising chinese militarism and my biggest fear is ping doing a putin having a moment with either japan or vietnam and the
philippine in the south china sea. people watch the show because they want to know where to put your money. put it it in europe in the short-term because of qe and put it in japan, but not china. >> that's your opinion and we have to go but i will say this. the fx side is the number one performing international etf over the last month. i know it's 1 month, but it's up 18% so far. we will have another debate i'm sure another day, but thank you very much. the bull and the bear case on china melissa? >> this is a big concern for a lot of analysts. we are joined by analyst john oh. they are making a come back yesterday. we are talking about gdp, the slowest in six years. whether you look at china's stock market or hong kong what wins out? does either impact who goes and
how much they gamble? >> i think what we have seen over the last 18 to 24 months has been a situation where the anti-corruption and the restructuring and a combination of a couple other measures we have seen is weighed down on china across the board. they have done through a period where you have a transformation with the vip and the business is just no longer what it used to be. china understands that. i think one thing we learned of late, this is a government that is not tone deaf to what's happening chlg they understand that the success of these measures that they put in have taken a hit. where i am starting to feel there is a change here with a continuous easing going forward. that's a good thing. >> from an investor standpoint and we know about the smoking gun going into place and the potential visitors that have been proposed the unknown thing
is what the chinese government will do. you are saying that that unknown in your view is more likely to be on the side of some sort of easing. >> what we need to be looking towards is the wealth effect and the potential for the people in china to be more positive. people who feel it is on diching and shopping and retail and entertainment. is that okay? we have a cooling measure that is happening if china for a couple of years now. that i don't think is necessarily going away. we believe that is here to stay. if the wealth effect is going to pick up they will benefit. >> the bottom line is in your universe, you have eight stocks or so. all are outperformed which is a neutral rating. the one buy is galaxy. >> we believe they are a company that investors to to focus on
because they are opening a property on may 27th. when we build a supply they are adding 1300 bedrooms. that's a qualitative catalyst and i think the sentiment uplift could be positive. they are no better and it would deteriorate for the next quarter or two. is 2016 a better year? absolutely. >> got to leave it there. thank you. >> all right, melissa and john. here is your power menu. a man who knows something about menus. out with a new book. his take on running a restaurant right now and the nationwide fast food protest. we debated it. are activist investors good for your money? 340 companies ahead. and getting up and close and personal with that. a monster tornado. details behind this video when
sides. bob barrington on the stock angle and the restaurant start up with too many restaurants to list here. it would take the interview, we will get to them this a second. first to you. what if any angle is there here in these protests for those of us who may own a restaurant stock? >> good question. the risk clearly is these restaurant companies need workers to staff the restaurants. as some of the larger retailers and mcdonald's have upped the ante or bid to get restaurants or workers into the restaurants, i think the rest of the industry has to figure out a way to ultimately find enough opportunity to drive workers in. if you don't have that you will lose customers. >> that's an important part of business. a good customer experience.
at the same time from the restaurant standpoint did you a back of the envelope analysis on the labor cost what they are aiming to do is more than double the federal minimum wage. if you were to double the line item in your model, what does it do to margins? >> it takes them down mighty far. >> what's mighty far? >> if the labor costs run 30 sends on the dollar and the marge mall piece is 15%, you double that 15 and it goes to 45%. then ultimately you take the margins down so you are losing money. the important thing is these companies have to figure out how can they cover that cost through higher prices or the menu mix and at the same time trying to manage the workforce so that they don't lose workers to
someone else. they keep them staffed. it's a tough proposition for the restaurants. >> bob, thank you very much. see you soon. let's bring in the star of restaurant start up and coowner of many restaurants including more b and b burger and beer. your take on the protests. it may not affect them but what about b and bburger and beer and those restaurants thaw own? >> just in general, hospitality and the people are the most fundamental thing in how we run restaurants. there is a cultural thing that is happening and everything is evolving. proteins are more expensive and labor is more expensive. restaurants will have to evolve. on the high end and the low end, mkt and fast foot chains will have to have an evolution not only in the production but how they pay their people and what that experience becomes for the customer. the customer is going to have to absorb the cost in the increases
as they do in the food cost. that's inevitable. >> how much could you pass through. if you advise a restaurant owner now and let's say the $15 does pass and it doubles and it's different for waiters. let's do this. could you sa i to somebody you will have to raise your menu prices by 20 or 30%, but don't worry, the customer will accept it? >> that's a delicate thing. we are like cougs and we absorb a lot of cost all the time. whether it's the increase in the cost of prodean and meat, not all of that increased into increased menu. these margins are low in the industry across the board. we are on a level playing field. everyone has to abide by the law of what we have to pay people. it's a level playing field and it's interesting to see who goes first or second or how much the
customer is willing to absorb and which are willing to absorb the costs themselves. it's a cat and mouse game. it will will be interesting to see how it goes down. >> how many of your employees get paid minimum wage? how would an increase of $15 affect you? >> it would be a huge huge thing. in our business 30% of every dollar is labor. 30% is cost of food and goods sold. margins range in the 5 to 15% if you are really good. if you had an increase in labor of 10 to 20%, it could take 30% off the bottom line very, very quickly. it will affect margins. there is also the tip credit issue with issue with waiters who work for tips. that issue is complicated. pressure in wages across the board is something that we are feeling. at the end of the day, just as our food has to be sustainable,
our workers do as well. they have to be able to make a living and waux walk away from their jobs fulfilled and live their lives in a city like new york and las vegas. it has to work for everybody. >> let's end on a lighter note and one topic that is not going away. i have a bone to pick with you, but it has no bones. you and your sister have healthy pasta and sexy and skinny. you lost a lot of weight and you run marathons. pasta is a big part of your diet. i had a giant bowl. it's right here. right here baby. >> go out and buy the baby and it will teach you thou make and consume that pasta. hundreds of res pies of under 500 calories apiece. i shrank the calorie counts. it's about how you boil it and cook it and add fat. a smarter way.
even a guy like you could benefit by cutting 1,000 calories a week. you should put it to use. >> i'm going to. even a guy like you. >> even a guy like you. >> he was being nice to you. >> you are apparently fit and trim looking guy, but you are eating a lot of pasta. maybe you should cut the calories. >> i didn't realize you were that smooth. michele bachmann every day on the show. >> thank you. >> still to come wall street. they are doing one thing to signal a buying opportunity. plus, the top democrat in the senate said ban america's favorite sport, but not ban boxing. what? that full story when power lunch returns. 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. at mfs, we believe in the power of active management. our teams collaborate around the world, which leads to better decisions for our clients. put our global active management expertise to work for you. mfs. there is no expertise without collaboration. don't just visit new york. visit tripadvisor new york. with millions of reviews and the best
[ male announcer ] legalzoom has helped start over 1 million businesses. if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom. >> here's your cnbc nows update at this hour. capitol police are investigating a gyrocopter that landed on the grassy area on the west lawn a short while ago. the pilot has been detained by
police and a lockdown at the capitol ensued and has been lifted. former new england tight end aaron hernandez has been formally sentenced to in prison without parole. this after being found guilty on all changes in the death of 27-year-old o don lloyd in june of 2013. >> standard and poor's was ccc plus saying it expects the kpebt to be unsustainable. a senior pressury official told dow jones that jack lew will press the minster to engage in bail out talks. an apple ipad that belonged to pope franzis fetched $30,500 at auction with the proceeds going to a house for the poor. the winning bid was placed by telephone, but declined to disclose the buyer's identity or
>> i want to talk to you about the volatility moved up over 4% with the upside and the downside. still people in the market place saying they are not convinced it is for real. they are talking about the fundamentals saying that i they think the rebalancing is happening, but it is taking longer than most folks execed the. the technicals point to the upside and we are bucking the trend here too and some people saying this is the bottom. what do you think? >> it has been a heck of a run. the s&p was oil-related and the oih, etf and the top for
performing over that time. you hope it's not a short-term feline. stunning footage coming into the newsroom. an oil refinery. this video was posted with reports to show isis fighters launching on the largest refinery on saturday. mind them, fire rages out of control near the oil storage containers. militants broke through the perimeter on monday and driven back by security forces and air strikes. >> analysts are tripping over themselves to see who can lower earnings estimates faster than the other. could this be a buying
opportunity? cutting estimates sounds negative, but are they supposed to buy when things look the bleakest? >> that's true, but you want to look at the ones where that cut or earnings get priced in beforehand. we saw it happen with intel. they came out and reported negative earnings on a preannouncement and when they came out and gave a little bit of decent guidance they have seen a nice bounce. that will be harder for the other stocks at the high. i'm looking at those stocks and groups at the energy sector that they got sliced in half. both the stocks and the earnings are bouncing back and we are seeing a nice bounce back in the regional bank stocks. they will have to be a little bit more pico where you buy it. >> we are only about 1% off of the highs off the s&p 500.
is there a reason to buy into earnings season? why do that when so many companies got caught flood footed. they didn't get the fx head wind correct. they under estimated that. is there a reason to buy? >> woe don't think you have to chase in front, but we think this will be okay. we think expectations are low enough right now and companies are probably not going to lower guidance a lot more and last week you had lower numbers and stocks went up. a lot of risk has been taken out and we would not jump in in front of it. we do like a 9 to 11 and we buy into the seller and huh a fairly decent bump in the last few weeks. we wouldn't chase this. >> i want to jump in because one of the stocks you brought for
us and they have activists investors are good for stocks. qualcomm is being gone after with the hedge fund. does that change the way you view the stock? do you like it when they get involved or do you care? >> they are good activists and not so good. >> we think it's a good activist and we think the fact that they taken the stake is a significant thing. we have been scratching our head and the stock has been trading lower. we have $19 of cash per share and a cost structure that is bloated. we are not sure about them splitting up the business but they have room to do a lot better. they will be a significant positive influence. we have a catalyst to do a lot better. >> a lot done in a short time. we have to cut it off. see you soon. more reaction to yesterday's shall we call it in fashion
discussion. are they doing good for shareholders? mostly we will discuss. >> >>. >> they don't know how to profit from them. >> the 50250 people to call in right now with the shipping and handling, we will accepted you a copy. versus what we would have made if you just bought it. they make the best returns and you have to learn how to trade options and our book will show you how to do it for free. it shows you how to use options to make more money for the investment and to profit. and today you can get it for free. only while supplies last. >> call 1-800-95
. both higher on the segds. why are we taking a look at this. we will be joining us exclusively and catch the interviews here at 1:00 p.m. eastern time. >> a new report shows the number of companies targeted by activist investors soared. according to the latest annual review, the number of companies targeted by hedge funds and others looking to make changes surged from 136 years ago to 344 last year. a triple. but is that a positive? josh black is editor of activism monthly. he joins us now from london where it is late. we appreciate you sticking around. we had a debate and a fight and in all your reporting and tracking and tracing, are activist investors overall a met positive for the stocks they targeted?
>> you take the u.s. stock and it has increased by the s&p. we have the activist investors have increased the value of stocks for all shareholders. >> what's amazing for the review, i'm glad that somebody in the world is putting this stuff together. no way i could do it. why do you think we have seen a tripling in just years? >> there is a number of things behind the and a lot of people jumped on the bandwagon. it shows the number of activists has gone up by a similar proportion. the running of the campaigns and surely the runs of the big
activists have generated behind this. there is also a lot of popularity with investors for the angle they bring and adviser to companies as they put it to me. you have to have an economic angle and you have to put a corporate governance angle away to get your shareholders. >> what is the biggest change you have seen in doing this report josh? has it been what the activists or the so-called activists want? has it been the length of time you are involved? what has it been? >> the tactics have changed. they changed year on year and that may continue. in 2013 we had a year that was characterized by activists pushing for dividends and buy backs and opposing m&a and they were angry about the prices being activated. they were focusing more on the
businesses and the costs and the strategies for growth and also pushing for those deals to happen. you know the big examples is for instance the prime example of an activist pushing for a dole to go through the year before it was opposing the bioof doubt. >> josh, we are going to leave it there and it's a great report. a big one. we appreciate you staying late from london. thank you very much. >> thank you. >> coming up investment advice for your portfolio from a five-star manager. a shocking number of players end up bankrupt a few years after they start playing. how does it happen. power lunch will be right back. blap # and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction
so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. why pause the moment? ask your doctor about cialis for daily use. for a free 30-tablet trial go to cialis.com when a rewards card is designed to sync with your life it gets talked about... ♪ ♪ ♪
>> let's get investment advice from a guy who buys and sells stocks for a living and is good at it. the balanced golden rainbow fund and probably the best named out there. he overseas more than $4 billion in assets and welcome to the program. i mean that with love and affection. let's talk about dillards. it's one of your picks. a forgotten retailer as far as
the stock market has gone. why did you like it? >> it's got certainlies. the strong dollar makes imports that dill arts gets to be cheap and they in turn sell it here in the united states and profits and earnings have been rising nicely. not particularly loved on wall street, but they love it at the company who has been buying back shares and it meets the criteria. something is relatively cheap that has good earnings growth and is in a rising pattern and hit a 52-week high. >> i didn't know you were going to say that but i love you for saying that. all we have been hearing is the stronger dollar is bad, you are the 50 person who i heard say it's good. cooper tire. tell us why you like it. >> well we see this as the year of the oil. that encourages people to drive. if you get a lot of miles,
obviously people need tires which is what they do. the cost that they have to produce the actual goods goes down. they have been growing nicely. it seems leak a good fit with the economy rolling along okay. it should be pretty good for cooper tire. >> barry, why do you still like republic airways? i believe the airline trade is last year's trade. that's when all the airlines went up. the sector overall is down year to date at this point. >> yes. what we see with republic it's a small stock. one of the things we're seeing a transition in the overall stock market is becoming a stock picker's market than a stock market. small is going to be beautiful, we think, as we go forward. republic, if you've flown the express jets which we probably all have from united to u.s. air to delta, this is the company that's going the fee for service for them. and their earnings have been growing nicely good cost
controls, they got out of frontier so they can focus more on their core, what they do. i think it's a hidden gem, very cheap stock that it could pick up when we see a rebound in that sector. >> barry james, golden rainbow balanced fund i think i flipped the syntax on that one. our viewers know. it's been up on the screen in a graphic. we appreciate you coming on cooper tire, dillards and republic jet. thank you. coming up startling numbers on just how many nfl players end up broke and how soon after retirement it generally happens. and why is harry reid talking about banning the nfl? all will be explained in a rare no-holds-barred interview with the retiring senator. stick around.
♪ help join a continent with nearly 3 million rugged square miles with a single broadband connection. when emerson takes up the challenge it's never been done before simply becomes consider it solved. emerson. [ female announcer ] who are we? we are the thinkers. the job jugglers. the up all-nighters. and the ones
who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours.
be sure to check out a new series of interviews on cnbc.dom. john horowitz we call them speak easies. the latest one is in a restaurant with senator harry reid. it turned out to be more interesting than you might have thought. >> i was a very good boxer. i had a really good overhand right. i could box with just about everybody. i fought for two years. gave me confidence. that's why i did it. i'm glad i quit. boxing is a very very difficult
sport. and as a young man, i'm not too sure all those blows to the head did me much good. >> what do you make of the calls that have circulated last couple decades to ban boxing because it's too brutal? >> we went through that before. i would ban football before i'd ban boxing. i think it's much more dangerous than boxing. at least boxing you know what you have going into it. >> the entire speak easy enter view is available at powerlunch.cnbc.com. reed pulls no punches talking about his political opponents. a new study finds 16% of all nfl players have filed for bankruptcy and soon after their left the league. "sports illustrated" puts that figure even higher. with 78% of all players broke within two years of retirement. terrell owens, by the way, once worth $80 million, ending up nearly penniless. dan marino warren sapp bernie kosar, a systemic problem to say
the least. former linebacker for the bears turned professional investor we all know shawn najarian. you know a lot of nfl players. >> yes, sir. >> you're also a finance guy. why do they have such a hard time managing their money? >> i don't think they have a harder time than anybody else. anybody who gets a windfall lucky enough to get that windfall, whether it's a lottery winner, 90% of them go through all the money in five years. whether it's somebody in entertainment who flashes up on the screen they're bright looks like this is going to be the next big thing as far as box office and then they're gone they're also bankrupt. i mean so i'd question the "sports illustrated" number at 78% but the nfl if it's somewhere between that 16% number, one in six or 78%, it's lower than the average. >> your point is well taken.
we have had lottery winners win $100 million or more go bankrupt. is it not that they're athletes but rather that anybody at a young age who comes into a lot of money very quickly is probably going to be in trouble? >> i think the statistic i first heard from the "new york times" about four years ago was 83% of nfl athletes not only go broke but they also get divorced. and that's one of the things that led me to put together called p.l.a.n. preparing for football after life now. it deals with your finances, dealing with a plan for after football and dealing with a lot of off the field entities. when you look at it those numbers don't shock me. the culmination of leaving football, sometimes when you come in like he said you get a windfall of money. you don't always have that structure or guidance originally
to go in and have a plan of how you'll handle it. when you're coming from sometimes struggling backgrounds you get to that point where it's like, okay now i've got this and i spent it. there's no one to tell you no. that's one of the things we've done a great job at saying hey, what's going on let's look at this working with their financial advisers. we like to tell players they're the ceo and we're on their board of directors. that's our take on it. >> sounds like a great program. john, your take in terms of whether you think the nfl should be doing more? a few years back the nfl had been embroiled in a controversy because they had a list of advisers they were giving out to players and they were not actual financial advisers. some of them got caught up with advisers who were shady. >> who were they if they weren't financial advisers? >> i agree with you, the nfl could be should be doing more same thing with all of the pro sports leagues, hockey basketball, baseball take it through all of them. but i think that the gentlemen,
the agents' points are well taken. if you sat down with any smart person and said this is how much you'll have in 10 years, 20 years, 30 years down the road if you put this much away without doing crazy math i think you could impress upon them that they can hold on to the wealth and be happier and richer. >> is part of the problem people grossly overestimate their ability to remain in the league for a longer period of time? >> i think the players know their time frame. i think the nfl, i want to defend them for a second. i think they do do a good job of educating these players. they have a lot of programs. just like the gentleman stated earlier in the show when you're looking at any person who's wealthy, whether they're an entertainer, whether they're a stockbroker, you know every individual is an individual. so i don't think you can make a judgment on them just being athletes per se. i think it's just based on whoever you build around your team to give you support. that will tell you a lot on how
your success is going to be. hopefully they get a good team around them. >> good work derrick. thank you. thank you, dr. j. >> thank you. i'll see you on "fast" tonight. >> thank you very much, "closing bell" begins right now. welcome to "closing bell" on this tax day. a happy reminder. >> don't remind me. it was going well. >> buzz kill. i'm bill griffith at the new york stock exchange. >> i'm michelle caruso-cabrera in for kelly evans. the nasdaq threatening to close above that 5,000 mark. it's only done so twice since the dotcom bubble burst 15 years ago. we'll take you to the close, see if we can get it done one more time. right now 5,018. that's pretty good. >> speaking of which, here's