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tv   Sunday Morning Futures With Maria Bartiromo  FOX News  April 20, 2014 7:00am-8:01am PDT

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pennsylvania honoring his brother dustin who is in the army. >> and this is max who is ten mons old. and baby justice was born today in kentucky. >> the after the show show, christine is going to join us for that. >> happy easter. >> good morning. could this be a record setting year? this is sunday morning futures. nearly 14 million cars recalled just this past year alone after your tax dollars bailed out america's big automakers, we will look at what's being done to be sure your family is safe. >> who's watching the watcher? we will talk to a congressman pushing for transparency inside that very federal agency.
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>> and changing by the moment, what it means for the business climate here in the u.s. and abroad as we look ahead on sunday morning futures. >> good morning, everyone. your ignition shutting off because your key chain is too heavy? spiders in ventilation? these are just two of the reasons that vehicles have been recalled. he recently questioned the ceo on the ignition switch problem. good to have you on the program. >> happy easter to you and your viewers. >> is this a gm issue specially or is there more to this given so many recalls this year? >> there seems to be a lot of recalls but there always are. the issue is special to gm and their culture is new culture old
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culture that seemed to go for the lowest price. >> plenty more to talk about. we want to get the nuts and bold s. >> why are so many new cars making u-turns back to the dealer? more than 30 million in 2004. but still the numbers are shocking. an estimated 14 million or so vehicles so far this year. experts explain a variety of problems from fancy complex computer software. nothing as properly welding a front seat. here are gm nearing 6 million,
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toyota nearing 3 million, infinity, honda chrysler fiat, ford, 42,000 mazda had the fewest at 42,000. it is the scandal that weighs heavily on the industry. knowing for a decade about those faulty switches that can shut off power to air bags. the auto icon did not issue a recall until this february. some predict it could possibly lead to possible criminal charge s if you want to check your car you go on the manufacturer's website or the government's,cy
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bet you have never done that or ever really thought about it unless you have received a letter of recall from your dealer. >> i don't think we have shown th that. congressman you have been questioning the ceo at gm. are you happy with their responses? tell me what you have learned so far. >> i'm not pleased with their responses but there were not meaty responses, we're learning more from the documents than from her testimony. >> the documents are showing that gm knew their ignition switch was faulty and non-compliant two different
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models of ignitions. interestingly, the one they rejected is now the one they're putting in to replace the faulty one. >> that, of course, the more expensive one. they did not want to pay up. >> yes. >> they were trying to save money. >> let me ask you because part of the time that they were talking about, the company was in bankruptcy protection. we all know that the government bailed out gm after the 2008 crisis. will they be able to use bankruptcy protection given they were in bankruptcy after these events and troubles?
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i'm learning that this is the new gm, this isn't the old gm. the new gm means post bankruptcy and they don't want to recognize liabilities from before they filed the bankruptcy in 2009. and so now i understand now i understand the testimony in more clarity since they clarified they aren't going to recognize. i wish they would change their decision on it. >> wouldn't that unleash terrible pr assault on the company? >> it will create more lawsuits. traditional rank ruptcy laws therefore it should be wiped
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out. the reality is there is many exceptions to that and hiding liabilities is one of those. >> what are you looking to come out of this? what is your goal in terms of the liability for gm. >> if it comes out that gm knew of this defect and made decisions that it was not cost effective, because some of our early doum reviews is showing in 2004 they knew there was a defect yet they said that it wasn't a business model that worked to change it out. that shows me there might be a light here.
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i want gm to survive this. i think they will hurt this reputation. >> do you think gm survives this? >> i think they will survive this but if they try to escape responsibility or non-compliant or defective, i will use the word defective. >> people watching at home, what should they be thinking given this high number of recalls?
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>> they should look to see if they have any recalls. but just go the website. if there's a recall, contact the dealership and take your car in. >> that is the highway association website. >> the federal reserve could soon be tight ping the screws on the big bank. as we look ahead on sunday morning. if you have moderate to severe rheumatoid arthritis, like me,
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>> yellen is considering tougher rules for big banks. it could limit the money available for business. he joins us right now to talk about it. we kaep hearing janet yellen. >> they say the same thing that higher capital levels is making them not lend as much.
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>> first of all i think the committee could say, what is the sweet spot. we want to make sure that our banks are strong enough to weather that storm. what's important for us is to make sure that when these rules come out, make sure it's not a one size fits all. also have that same standard applied to mid sized and smaller community banks. >> we know that the federal reserve has the stress test where they are coming out with stressful economic situations
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but at this point do you think there will be more rules for banks to carry? >> i think so. listen, you look at the downside of more capital. there is also a downside when they don't have enough capital. i think what we're going to do is look at the details because that's where the level lies. >> let me move on to trag. >> that is basically asking for
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more transparency for the government looking at data. i don't know that any of our viewers understand what really goes on in terms of credit card company giving data that is consumer data. why don't you walk us through it? >> there is an agency created in dodd frank. they are collecting all credit card data on most americans and they are keeping it not for six months, a year, and if you look at the nsa you can learn about how often you are doing it. our question, marie, is why do
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you need all of this credit card information. you can take a small sample of a whole and getting a representation of a whole. what is the purpose of this? why are you taking it all? this new agency we want to keep pushing them. what the purpose is. and i have a bill that says listen you're not protecting us. ask them. get your permission. most americans don't know this is happening. >> this is not the only thing.
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>> most of us would agree with the mission of the bureau. most are funded through congress. this agency is funded through the fed. that gives us very little oversight. but also there is only one director of the agency instead of a commission. so you don't get a wide range of views. that will bring more accountability to congress. but to be clear, the mission is structure and it's power. >> not to mention a culture which is -- has been questioned. >> we will be watching your
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efforts. >> thanks. >> we will see you soon. >> the situation in ukraine seems to be getting worse by the day.
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>> the deteriorating situation could have a big impact on business. richard is with me, he's the
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president with the council on foreign relations and the author of foreign policy begins at home which was just released on paper back. will you walk us through what's happening in ukraine now? europe is more vulnerable than the u.s. >> right now and up to now the impact on business has been modest. it's a place of inextraordinarily limited. what the russians are doing is trying to sell all sorts of mischief in ukraine and they can try to manipulate the trajectory and trying to get it too close to europe. >> there are troops right around
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eastern ukraine. >> i would be surprised if you had an over invasion. mr. putin had tremendous influence. >> last week at the end of the week he did a town hall with an audience and there were questioners coming on the big screen. one of the questioners was edward snowden. he is there asking about government listening in on people's secrets and putin's answering him. what is that all about? >> in short answer eyes. i don't know how to say knit russian but sure.
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this was p ump tin having a little fun. he obviously enjoys it and it's his way of saying i've got tools that can hurt you and take the sanctions. we can inflict greater pain on russia. but given how integrated russia is in the international financial system it will come back to boom rang on us and europeans which is why they are far more reluctant than are we. >> where does this leave us? we know that europe is volatile. we know that this could boom rang back to us. >> can't is too strong. so on that level it's nothing. i think the europeans might
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agree with some of that. we can begin a proo sess of weaning europeans from such a heavy reliance. signal the market have have an impact. there are some short term thing in addition to natural gas we can do things to make nato stronger throughout the region. we can go up to public opinion in russia. >> you look at the amown of capital it's kwiz sill can't. there is very little oil left. you see it with markets and
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currencies, they are vulnerable. we don't need to fight fire with fire the principle is economic. rb r. >> it feels like he doesn't scare. does he not care? he will care. it will take a second or third time mr. putin doesn't care about ukraine more than himself and his ability to run russia.
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asia and the emerging markets exploding and now the cruise line industry wants in. frequent heartburn? the choice is yours. chalky. not chalky. temporary. 24 hour. lots of tablets. one pill. you decide. prevacid. ♪ 24 hour ♪ happiness is a drive-over mower deck. [ male announcer ] that's how we run, and nothing runs like a deere. ♪
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compassion calling on people to pay attention to the needy close to home. newly released crypts show questions three times. now back to sunday morning futures and more with maria. >> it is easter weekend and that is when families turn their thoughts to summer vacations. cruises are as popular as ever. good to have you on the program. >> good to be here. >> is this the kind of moment on a calendar when you would expect increased bookings.
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>> the busiest time is getting out of the holidays, get out of january and february and people want to have that next thing to look forward to booked. >> particularly this year. >> yes. the bill sailing time is summer vacation, families, and winter holidays. >> how do the bookings look to you. are people taking cruise vacations? >> in terms of the guidance that we have given prior, we expect revenue yield increases this year as we head 2010 forward and we have been able to fill the ships, sure. >> one of your big projects is this newest ship going china. why did you create this opportunity going to china? what's so big about china right now? >> this is a strategic opportunity for the company. we have two ships calling out of
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shanghai. we really felt there is a next step available to us. we can participate in that sector right now by bringing our newest and most state of the art cruise ships to shanghai. >> why is the chinese customer emerging as such an important customer? >> i think they have the same hunger to see the world. it is only in the last ten years or so that they have had the permission to do it. >> this is important. >> our thing is that there is
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wealth and inkcome building up particularly in the coastal communi communities of china. there is enough income and wealth development there to fuel our growth. so we're not too fussed. last year the italian ship, are people still nervous about taking a cruise? >> the industry has had an opportunity to prove its resilience over and over. the people who repeat cruise with us know that we take great care in everything that we do.
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that they will find out what experienced cruisers already know. >> and that's a marketing issue but kpabt folks at home considering a cruise? they want to make sure that it's a great vacation? all of those things we check the box. we show you views that you have never seen before on a cruise ship, sky diving, rock climbing walls, circus equipment and mamma mia as a full broadway musical production. when we can really tell our story we get people excited.
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and now i want to check in with howie. >> we're going to talk about the media and rape. raising the question is the -- when your source is a fugitive from jus sis. >> snowden asked putin a question. >> we will see you at the top of the hour. >> i'm sure that it was just a coincidence. what a piece of political theater that was. could it be bigger than face book? we're looking ahead on sunday morning futures. sked people a simple question:
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>> more first quarter earnings are barrelling in. companies like apple and facebook. we also have initial public offering expanded soon. and that will very well have a lot of impact on wall street. and he is a fox news cryptor. a gleebl provider. good to see you guys. the earnings have been coming out fast and furious.
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how would you characterize the earnings so far? this is an economy that is not growing terribly fast at the moment. we're seeing tightness in growth. i think we're seeing a tern amount of that. >> one time items like weather. we're expecting revenue up. let's talk about initial public offerings. they are being priced below expectations. is that a warning sign that the ipo market is weakening and the demand for new stock is not there? >> after a very strong run of the number of deals and of
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returns in 2013 and all the way through march we saw tremendous interest in ipo, and then the overall markets, we have been in the period of recalibration, evaluations in the market. and all the companies are coming, pricing at the low end or below their ranges, this is a good thing. the ipo market is not in a bubble. we're very happy to see that because i think the investors are the ones that matter the most. >> everyone is talking about the big chinese company comes to market. why are we so concerned about
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this? >> i don't think there is anyone who follows any stock that is not interested in this company and what we will learn when they disclose information which we hear will be next week. this is going be a whale of an ipo. we understand that it may possibly be valued at something like $150 billion or more. that will mean that in time, almost every portfolio and index will hole this company. sit a way to play the internet, china and a fast growing company. >> i know we will get all the information next week but what do we know about the
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gundmentals? we think it's very easy to forget and get there over the next couple of years, sit a very profitable company. >> sounds like you think they will do well. >> we don't have to worry about anything but a price to ternings multiple. >> it seems that in an environment where we bump along the bottom. >> people are not going to bid on things that are vague. >> i think there have been a lot of investments where people wanted the growth. >> and next week we have all of
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these companies to set the stage in terms of bha the technology sector looks like. >> i think we're steady. we're at a 2.5 to 3% growth. it's not magical. i think we are prepared for unemployment. >> we will take a short break. is the industry doing enough to clean that up? if you've got copd like me... ...hey breathing's hard. know the feeling? copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment
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>> we are back with our panel. let's talk a minute for us on t robert. we spoke earlier to the congressman, terry lee, about gm surviving this. what's your take? is it going to be an expensive survival? >> i think if you look at the evidence of past recalls with companies like toyota, companies tend to rebound pretty quickly. the evidence is the company is not even doing too badly at the moment. in terms of sales. it doesn't look as if it's suffering too severely in terms of the current company. what we have to bear in mind here, this is something that happened by and large quite a long time ago. these are mistakes that were made quite a long time ago. this is an unusual recall. well are linking them to some of the other things that are happening.
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i think this is a separate issue, an issue from the past. and i get the feeling that probably people understand that to a large extent. >> it did happen a long time ago. and then the company declared bankruptcy. ed, i think it's interesting that now the company is trying to use bankruptcy protection as a way to shield itself from all these lawsuits. >> i don't think it works long term. the critical thing is, as people are starting to buy cars again, the economy is better, there's a psychological impact. i think to a certain extent they'll suffer for it. i don't dispute in any shape or form your expertise. i think psychologically there are other alternatives. people are worried about the bankruptcy, how good is gm, how good are their cars. they lost something from all this change. if you have to buy another car, maybe they will look at something else. >> you think they are losing market share. >> i think so. >> how has she handled, mary barra, this? >> it's a difficult job for ceo. you're getting presented with
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detailed questions about what happened in the past. she didn't feel able to come out and give a complete explanation of what had happened. so it's difficult for her. it's painful for her. there are signs that the public went a little bit off gm immediately after the hearings. but i think by and large, given the difficulty circumstances she was presented with, i think mary barra has done a reasonable job. what we have to bear in mind here is the way to fix this, to stop this problem from happening is get a time machine, go back and make the prebankruptcy gm not such a bad company. this was a bad company that almost by its own admission was making terrible cars at the time. it turns out there were faults in some of those cars that people didn't spot, they don't seem to have treated them as a safety issue at the time. they seemed to have treated them as a quality issue they could sort out, maybe couldn't. and this has all come back to haunt the present day company. i think it is a different company from the company that made those mistakes.
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>> that is certainly what mary barra has been saying. >> she's done as an effective job as she can. it's hard to go up from congress and get the daylights beat out of you. i think once again, i worry about the psychological effect, did they make the greatest cars in the world before? probably not. are they going to make great cars in future? i hope so. if i'm a consumer and want to buy, i may look elsewhere. >> we'll see if we learn about that victims fund next week. next week on that alibaba deal, people are wondering why it's so successful and such a big deal. you mentioned it a moment ago because they do so much business. is this like the amazon.com and ebay of china? >> we would roll is up into the amazon.com, ebay, google and facebook. it represents many of these different sectors of the different tall economy. >> you show 70% transactions? >> 70% to 80% of all e-commerce transactions in china are
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handled by alibaba. >> that's extraordinary given the fact that china is an enormous country and the population is the reason everybody wants a piece of that economy. >> it is extraordinary. this company is listing here in the u.s. and will also be trying to tap business here in the u.s. market. so this company has plans to be a global e-commerce company. >> the critical question is, obviously there are companies who do the same thing here worldwide. are they going to fight back, get pushed aside? that's going to be the big test. that will have a different kind of scrutiny. it has had a monopoly in china. obviously it will not be a monopoly company any more. >> not in the u.s. >> i covered a lot of the shipping ipos a few years ago. everybody was ordering more ships on the grounds that they were going to win market share from everybody else. >> yes. >> it turned out that you had far more ships ordered than there could be market share. not everybody could be a winner.
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i do wonder if the trouble with some of the ipos, you're going on future promises, future -- expectations. not everybody's expectations can come true. it's the nature of the business, it seems to me. >> i would point out, that may be an appropriate comment for many smaller internet companies. in this case, given the size of this company, it's a success to date, this is one that might be the exception at that point rather than the rule. >> still ahead, what to watch. the one thing to watch in the week ahead, next on "sunday morning futures."
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welcome back. we're looking ahead. what's the one big thing to watch next week? robert smith? >> u.p. it's a company that had a
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terrible christmas, not keeping up with the volume of e-commerce. >> we'll know when they report earnings. >> u.p.s. reports earnings on thursday. >> kathleen? >> i'll be looking for the alibaba ipo filing. >> you'll see when they're going to go public? >> yes. >> that will help financial services. ed rowlands? >> i'm watching the sangs that are coming out quickly on russia and what kind of a backlash there is on that front and whether the eu takes in the ukraine. >> you think sanctions will be deeper? >> i think they'll be much deeper. >> my one thing for next week, apple. apple is reporting earnings on wednesday. depending on who those numbers show will impact software, hardware, the pc sector. it will have an impact beyond just apple. happy easter, everybody. that will do it for "sunday morning futures." i want to thank my panel for being with me. i'm maria bartiromo. "mediabuzz" with howard kurtz begins right now. have a great easter.
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on the buzz meeter this sunday, the finger pointing is getting ugly. conservative commentators accusing barack obama and eric holder of exploiting race to their advantage. >> but to those two men, race has been a shield and a sword that they've used effectively to defend themselves and to attack others. >> and today the right wing media is proving the point, one side accuses the attorney general of, quote, playing the race card. fox news accused him of playing the victim and whining about how he's treated. >> are the media

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