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tv   Power Lunch  CNBC  December 10, 2012 1:00pm-2:00pm EST

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than i thought it would be. the resiliency, i think is telling you something. >> that's because the underlying economy is improving. now you get china. if europe can stabilize, i think we can go much higher. >> how many days, if you add headline that monty was thinking about, going out and bursceloni was thinking about coming back. follow me on twitter. and "power lunch" begins right now. >> halftime is over. "power lunch" and second half of the trading day starts right now. >> and here we are. welcome to "power lunch." as you can see, we are beth here on the floor of the new york stock exchange. and stocks are higher as fiscal cliff song and dance continues in washington. mr. boehner says he is waiting for a proposal from this gentleman, the president. president obama. and the president is set to speak about the cliff and the a
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economy later today. >> i thought i was supposed to come here today. you thought you were supposed to come here today. so we are both here. not really, folks. a lot of talk today is about what investors should do if we go over the cliff. what should we do if there is a debt deal before year-end or shortly thereafter. we have smart strategies and individual stock picks for you this hour. >> that's right. well also take a look at another side of google that you very rarely hear about. the internet giant stashing billions in tax shelters to avoid paying taxes. is that fair play or outrageous corporate behavior? especially in this climate. well talk about that. but first, markets are generally higher. dow jones industrial average up 29 points on the day. nasdaq is up 7. and s&p 500 up about 1 1/2. >> they've been that way about the last ten days or two weeks or so. 21 days until america goes over the cliff or not.
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president obama meeting with the house speaker boehner in a closed door session over the weekend. yesterday in fact. trying to hammer out a deal. we hope you watch the redskins win over the ravens there in the last minute. president set to speak later at an auto plant in michigan about his planes it raise taxes on the rich. our chief political correspondent live at the white house with the latest. hi, john. >> hi, tyler. it is glammy and overcast in washington today but everybody is looking for bright signs about the fiscal cliff. we have a bright side yesterday when john boehner came here to the white house. house speaker to talk to president obama. first individual one on one meeting since the election and that meeting and some other signals that have been sent publicly by both parties have caused some noted skeptics of us getting a fiscal cliff deal. >> i think the atmospherics are getting so much better.
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we've gotten out after ka bookie theater and gone to dancing the tango with those two guys. any time you start to tango, you have a chance. >> chances of getting it done now are better. i think that's what's key. >> part of that tango is republicans cracking on tax rates. that's what president obama will be talking about in michigan today. keeping the public pressure on. but the part for the administrator point of view, tyler, is what do they live john boehner so he can bring his troops along, entitlement, spending cuts, to tell their members we got a good deal. >> john, i find it curious to find that president spent as much time as he has on the road trying to drum up support for this deal. we just had an election all about this. why does not white house figure that these kinds of appearances are helpful when both sides positions are pretty well locked in already? >> because this president and this white house have concluded
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that public pressure is what will make republicans bargain with him and deal on his terms. after the private grand bargain negotiations in the summer of 2011, they concluded they weren't simply going to do it behind closed doors with republicans. president went out and campaigned. he hammered republicans beginning in the fall of 2011. he won the election and he was trying to keep the pressure on to get them to bargain. >> all right, john har wood, thank you very much. >> let's stay in washington but capitol hill now, keeping a close eye on the negotiations, among the key congressional leaders. what the update, amman? >> well, there is total radio silence about the meeting between boehner and obama at the choice yesterday. we are told to expect that boehner will brief top republican leadership colleagues about whatever they discussed at some point today so the leadership will be in the loop and we ceil if we get leaks of that about whatever was talked
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about. but the speaker's office put out a statement a little while ago that didn't state all this much, simply staying they continue to wait for the president to issue his own version, a new proposal, they say they have within op the table. the president rejected it and they would like to see something public from the president now. clearly, all of the negotiations really important here are going on behind the scenes at the white house between the speaker and president of the united states. and to jorge posada's point, senator bob corker was on our air earlier today and he laid out sort of what the political challenges here for republicans. take a listen. >> it sure seems to me that we're negotiating about something that makes it appear that all we are trying to do is protect the rich. er with not at all focused on entitlement changes which is the only thing that will save our country. >> so when the speaker now briefs his republican leadership colleagues about whatever was in that meeting yesterday, the trick for him is going to be to present it in a way that he gets there and continues to have support. there is mumbling and grumbling
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about a particular challenge to speaker boehner about republican colleagues early in the new year. that is something the speaker would like to avoid. he has it find a way to get a deal and keep his job at the same time. all of that is tricky can be tyler. >> thank you very much. let's go to the exclusive patented trade mark cliff-o-meter. are we closer to a deal? no deal. we call it right now, right in the middle. that is closer to a deal than it was late last week. basically a 50/50 likelihood. >> we will take anything, todd. >> i guess so. >> ceo of destination wealth management and cnbc contributor. always good to see you, michael. >> good to see you. >> you believe we will get the ultimate issue. how do you work with that backdrop? >> you need to invest on the i sumgs, in my view, that there is some sort of deal but don't go all in.
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you have to hedge your bets. people's net worth are at stake. >> absolutely. >> so you invest in cash oriented assets. yes, dividend stocks, even though they get hit because of tax increases. maybe buy gold. you look at companies that have tail wind. companies like costco for example with an economic tail wind. in other words, we all have less money so maybe we are shop awning a discounted basis. and a company like qualcomm. capitalize on what is happening with tablets and smart phones. >> what is your assumption about where capital gains tax rates will end up in 2013 and dividend tax rates and what are you doing between now and year end to take advantage of that presumed gap? >> our assumption is capital gains rates will go up. they probably will go up 5%. >> to 20%? >> correct. here is what happened is the market sold off dividend stocks on the assumption that will happen. so you sell off dividend stocks
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then you buy what? ten-year treasuries at 1.5%. buy money market at .01 percent? >> right. it doesn't make sense. >> what you have to do is position your strategy, not just for what is happening on the short term from the cliff standpoint but you look from a global basis what is happening. china is starting it recover. >> are you going to back the 15% rate or not? >> depends on the client. really depends on situation. for people with large capital gains, i think they should take the capital gains rates now. >> is that what is going on in apple? >> that probably is what is going on in apple. i mean, apple is still -- excuse me, a negative sentiment on apple because it has began up so fast, so high. i do think you will continue to see some capital gain taking. but you know what will happen? i think that is overwhelmed if there's a cliff deal. even if it is a partial cliff deal and we move the goalpost nine months, i think the selling will be overwhelmed.
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>> you said to hedge your bets. that's you how put on the hedge. how would you do it? >> make sure you have a percentage of portfolio in gold. asset that does well and in all likelihood, when there is a fear in the marketplace, i think that's where you hedge your bets. in addition to more equity as you buy in advance of a fiscal cliff deal. >> michael, thanks. see you a little later. >> be sure to tune in tomorrow for cnbc's special fiscal cliff coverage live from washington, mission critical, rise above d.c. jim cramer, brian sullivan, mar maria and they will talk about how they will stand and how they will do their part it rise above partisan politics and reach a deal. >> one of the big debates involves housing. including what could happen to the mortgage interest deduction in their state if we do good
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over the cliff? our real estate correspondent, diana, here with exclusive data. diane? >> that right, tyler. talk to anyone in the real estate business and they say getting rid of or shrinking the mortgage rate reduction, specifically by raising home prizes, we wanted to look at who get the most and where. we are doing that with an exclusive calculation run by cnbc by lending tree. who gets the most category? taking into account mortgage size and income. borrows in hawaii and washington, d.c. get the greatest benefit. from 3 to 5%. california hard hit, losing that reduction could hurt a lot. talking about hard hit, take a look at arizona, nevada and florida. does that really affect home buying when the bulk of buyers
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in those states are investors who don't use mortgages? the answer, probably not. now i want it highlight new york and new jersey. they are on the high end of what you get from the tax benefit. and they desperately need buyers. two states have huge foreclosure backlogs. they need brisk buy flg order to eat up that distress. we want to keep that in perspective. people say taking away this deduction will raise home prices and drop purchasing power. but we have to remember that the interest deduction is used by 27% of borrowers. what is interesting is that older americans are getting hit with it more because they usually would move out of their large homes by now and they today stay in place because they weren't able to sell during the housing crash. guys? >> diana, does it soften the blow if they am amoreties out?
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>> when we talk about this mortgage interest deduction, it is about a buyer getting in there. whether first time bite buyer or move up buyer, saying, the reason i want to do this is for the kick back, the deduction. you take that away, guess what? that puts you back on the fen and not buying a home. whether you do it slowly, it is not that big of a deduction for a lot of buyers. only those who itemize any way, and only a third of taxpayers. it is more after part of the confidence and p what people think they get when they buy aless. >> diana, thank you very much. >> if you haven't finished christmas shopping and you want to send that gift in time for christmas, you might want to send it today. fedex is ready. the busiest day of the year for the package deliverer. >> that right, a record breaking day at fedex. as the shipping company fills in for santa claus. by i have details but you have to stay tuned to power lunch to get them. >> hey, follow us on twitter.
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price that getting wacked after deutsche bank cut two hold and lowered from 710 to 800 believing a cold war is brewing
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aamong the on-line travel sites. they are down to $32.70. >> the busiest day of the year for fedex. the company forecasting it'll make this some 19 million deliveries today. fedex currently trading as you will see in a moment up 83 sent at $90.19. courtney reagan live in the bronx. courtney? >> that's right. we are about seven hours in this record-breaking day. we see fedex trucks after making later morning deliveries. it is going to see its biggest day in company history. at least according to fedex ceo fred smith with some 19 million packages working its way through the fedex system up 11%, year over year, with those on-line sales breaking record after record. at least for the foreseeable future it looks as if this trend is going to continue. the more consumers are clicking, the more fedex is shipping.
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now there is still about a week left to go in order to ship your packages, to make delivery in time for christmas. however, fedex does count today as its busiest day of the year because it looks at total packages in the system. that means many of the purchases made on cyber monday are being delivered. dropped off on door steps but also purchases made today on green monday are also counted in that $19 million number. ups counts its busiest day as december 20th because they look at total packages delivered. and that's pretty much their last day to get those packages shipped to you without the expedited shipping fees. it is a very busy day. if you are expecting something, you might want to check on your doorstep. it is hard to imagine if you are left out of $19 million packages expected to be delivered today. tyler? >> they are very good. they rarely, rarely mess up on that stuff. say one more time, what does fedex say is the last day they
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will guarantee prechristmas delivery if i ordered? >> it all depends. depends how much you are willing to pay there, tyler, with the expedited fees. you've got about a week left to make those shipping purchases getting there in time for christmas. after that, you're going to look at some expedited fees at least at some level depending on where package is coming from and where it is going to. unfortunately not a totally clean formula in that way. >> thanks very much. sue? >> thanks. today is the deadline for those interested in buying into the host es hostes it name. serious investors must submit formal commitments in order to become eligible buyers. kay la joins us with who may have the inside track with the iconic brands. >> just how popular are hostess snacks? not only have 160 parties reached out to buy them but some queries are from everyday near cans who don't want to see the iconic cakes die.
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this letter from don sheridan of a boston suburb. he says he is on welfare but he says even he could be the one to turn it around. average joes want in including 26-year-old twins from sarasota florida and a crowd funding effort on they are likely to be bought by wonder. they are sold off one by one by wu7bder bread bb wb that didn't mean it tnt take to ding-dong going to saturday night live. >> the twinkie is the only one with with the delicious creamy filling. >> they always say i fall back on the chocolateness but this is snack profiling man. snack profiling. >> bids are due today so it could be a week before it f it
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comes clear if the ding-dong has a new home. >> snack profiling. okay. what about some of the labor issues, kayla? are they likely to be resolved with the new buyer? is that chapter of the story largely over or not? >> that chapter is largely over, sue, because once you agree to liquidate, that is relevant. a group like wal-mart or if any of the bidders does end up taking brands here, it could be likely that some plants get to stay open to make those brands. that's the hope hooer ththat soe jobs get to stay in tact. >> ty, over to you. >> the fiscal cliff negotiations are getting very little attention. we will drill down on the estate tax levy later in the hour.
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time to analyze monday. goldman and sacks cutting the cme group to neutral, to neutral
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from neutral to sell. i'll get it right here. the firm expects 2013 will be a tougher year for cme. let's look at shares. there is basic lay flat line on those shares at 5426. >> exciting moves. i agree with this call. i think the entire space, even drive ters will be a part of trading. even after 208 and the aig fiasco. i think they will roll that into the company and the price earnings ratio is pretty high. so i agree with that. >> you agree with that call. moving to apple. and eye will get this right the first time jeffries with a rating, expecting the first q1 with acceleration. let's look at the stock, there you see it down $4.
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>> i disagree that stock should have ever been priced at 900 target in the first place. i think 800 is a better price target. i agree with what will happen in q1 and q4. blow out numbers,rly with what is happening in china. even if you good out to 2014 like they describe, long-term, they said this about google at $300, i still think apple is a buy. >> you think it is on its way eventually to somewhere around 800. >> yes. in a couple years. i think it'll be 700 nextier. >> let's move to j.p. morgan. even with news of the retailer moving to select sale events, the firm asking whether a hybrid model to salvage sales is a positive or whether changes are too little too late. shares of the retailer trading higher by about a quarter there at 1842. do we like it or not? >> i say sell. we've had massive strategy
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shifts. really, tyler, just in the last 60 days. you need to know what the strategic vision is. there is a one price no discount sort of strategy. i think you destroyed in many ways consumer relationships with the jp penny brand. hello target. hello wal-mart. i wouldn't play this stock unless you have a big turn around story. >> stay away from jcp. thank you. see you later this hour. >> thanks, guyes. when we come back on "power lunch", should the estate tax be abolished? robert frank has details on that one. then are you looking to buy a luxury car? if you are, phil with why you will never find a better time. you're watching "power lunch "on cnbc. 'tis the season to discr
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all right, you heard michael recommend goal earlier in our show. gold and other metal prices, copy trading at a high.
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hi, sharon. >> prices up around $9. around 17.15 an ounce is where we expect gold prices to close. traders are waiting for something to happen, hoping that chairman bernanke will make a commentary and there will be some decision for this market one way after another. it has been in a holding pattern. [ inaudible ] >> sharon, i'm going to interrupt you because we vring trouble with your microphone. apologies for that technical issue. let's talk to mary thompson here who joins us on the floor of the nyse. moderated advance. are we still held hostage to washington, mary? >> that's the story, sue. not only are they waiting for word on progress or talks on the fiscal cliff. also they are waiting to see whether or not federal chairman ben bernanke makes any comments
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about that. when he concludes at the conclusion of the two-day fed meeting occurring on tuesday and wednesday. again, dow industrials for the third day in a row looks like it is held to double digit range. today's range is about 56 points. let's look at a couple of dow movers. mcdonald's from the better than expected saim stores sells. weakness we are seeing in home depot along with other details sales numberes. but we continue to see strength in tech. dow and hewlitt packard with a possible break up of that firm. since november about the middle of november, when they hit a 52-week low, all of this despite weakness in apple, this group continues to perform very, very well. energy stocks higher earlier, drifting lower, that has the dow's lead from the highs of the session. lastly we want to note that
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dovert corporation, took the stock down a couple of points. >> no t.o. the nasdaq now, everybody is talking about apple once again down here, but there is a lot more happening at the nasdaq than just apple today. >> absolutely. but let's lead with apple. jeffries hitting the take. could see decelerating growth, negative, margin leverage. elsewhere in tech, we are seeing green across the screen. hp, rising speculation that carl icon is interested in the company. that stock is outperforming today. lastly, the tablet wars heating up. barnes & noble named as part of barons top ten favorite stocks for 2013. the nook reader unit is holding its own against amazon and apple
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and these developments are not reflected in shares of bks. that's why you can see barnes & noble trading around 6%. sue? >> seema, thanks. rick san tellry is tracking action at the 162 on ten-year. what are they watching today, ricky? >> once treasuries opened today, we did see that rates were lower into our time zone. as you pointed out, we are virtually unchanged to really stress how side ways much of our action on a closing basis has been. look at the chart about 4 months to early august. we spent day in the high 150s, we haven't closed there unlike boone. see a similar time reference chart but they are at 4 plus month yields tp makes sense considering questionable politics going on. for example, italy. though there is a question of politics going on here, i guess. if we look at other issues, the
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euro currency has been up a little bit today. there are questions about the dollar index with the fed meeting. if you look at corporate barclays and both continues to super well behaved. not only are we looking for tax avoidance, we being businesses and corporations, but individuals looking for better yields than 1.614 i see on the current ten-year. tyler, back to you. >> rick, thank you very much. one aspect of the fiscal cliff debate that hasn't been hardly noticed is the estate tax. how much gets taxed when the move is moved from one generation it the next? >> death and taxes may be certain, but the death tax as its called is in limbo. the reason, well, the fiscal cliff. the current rate is 35%.
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only those estates worth 5 million or more have to file. if we go off the cliff the rate shoots up to 55%. anyone worth an estate worth $1 million or more has it file. that will catch tens of thousands of tax payers in the net of the estate tax. republicans want it abolished or current rates to be made permanent. obama wants 45% rate and 3.5 million cut off. that mid way between today's rates and old rate. the problem is that even some democrats are siding with republicans saying they want it keep current rates. all the sides here tyler remain very far apart. wealthy families need 20 rewrite their wills and charity plans. for the country, there are hundreds of billions of dollars at stake. under old rates, they raise $532 billion by 2021. obama plan raised around $270
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billion, about half. gop raises about $161 billion. the fight over taxing the rich, especially in the estate tax, is far from over. back to you, tyler. >> not the first time the estate tax has come up in these kinds of negotiations. in 2010, the estate tax was zero for that year. the people who passed way in that year had nothing subject to tax. let's talk about the guy who might eventually be interested in the estate tax. we just learned the identity of the second big powerball winner from a wealthy neighborhood in phoenix. his name is matthew good. it is good to be good. he is taking his winnings he says in a um lp sum. $196 bill million today to avoid higher tachs that might come with the fiscal cliff. smart move, robert? >> i think he is a cnbc viewer. he is taking the advice we gave a few weeks back. take the lump sum, pay a letter
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tax. he hired a financial planner and we are told web he put that money in bank to give himself time to develop a financial plan and not go crazy and spend it. i think he has been watching us and taking our advice. >> all right, robert. thank you very much. should the inheritance tax be abolished? 61% say yes. the money should go to the recipient and not the gov. 5% say no. the government needs money right now. 34% say leave it at the current level. and of course, this is money probably already taxed. that's why it is such a hot topic. >> that is why it is such a hot topic. absolutely. >> let's talk about facebook. the stock continues it rise. julia boorstin is here with the reason why. and pot smoking in a chris letter plant getting a lot of buzz on twitter this morning. phil, tell us about that. >> this is one of the stories where people are saying, are you kidding me?
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investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. you looking to buy a luxury car, you may not find a better time than right now. mercedes benz and bmw rolling out some pretty good deals. phil? >> yeah, carl, i talked to a couple of dealers who said, you play these companies off each other and you will get a good deal. they are battling, not only mercedes and bmw, but lexus. they are battling for the number one in the u.s. mercedes leads by about 1800 vehicles. bmw has no payments for up to five months. those are the kinds of things we used to see from domestic auto makers six wsh seven years ago. bmw sales up 45% last month. mercedes knows bmw is coming on
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strong. they last led in sales in 1999. that's why they are latching deals bmw had out there. they need strong sales offsetting weakness in europe. what kind of sales are we looking at? greater than $4,000. increases you sigh at the bottom of the screen there, that's compared to last month. so expect november's deals to be even richer in december. finally, taking a look at bmw, mer say t mercedes, no comparison here. bmp pulled away with nice gains. 18% gain, tyler. if you play these guys off each other within, you will get a very rich deal. >> i may have to get out there and start looking. chrysler rehiring union workers it fired after very public embarrassing incident. why the turn around? >> a local television statement had videotape of these workers on a break looking like they
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were smoking pot, drinking. this is a very public story in detroit. people were outraged saying, look, there is the problem with you with the union workers. they violate terms. they went to mediator and the mediator said, can you prove they were smoebing pot? ? no. can you prove they were drinking alcohol? no. so the mediator said you have to rehire them. chrysler is not happy. they put out a statement saying, yes, he had to rehire the employees. while the company does not agree with the ultimate decision of the arbitrator, we respect the grievance process as outlined in the collective bargaining agreement and our relationship with the uaw. these workers are going back on the job. but this is the kind of thing in detroit people look at and say, give me a break. these guys were caught doing something on camera that was clearly maybe not legally could be proven to be wrong, but clearly it upset a lot of people and it appeared to be wrong. >> and not just under detroit, i would think. a lot of people, if they saw that video around the country. was this video shot by a local
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news crew? >> yeah. >> so law enforcement never got involved? >> right. it was one of those, they are across the street. look what happens at the jeep plant. that's why it is such a high profile story. >> wow. phil, thank you. to facebook now. stock continuing to build on its recent rally. up to $27.94. the social media giant making an unfriendly move to hold on toity traffic. facebook about 45% in the last month. we just told you the trading level. so julia, what this means for users and investors alike, hi, julia. >> hi, sue. instagram and twitter are breaking up. facebook which owns instagram is not letting people upload photos to twitter. it is driving people back it instagram owned by facebook where they can post ads and make money. as facebook focus shifts from
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acquisition of users, the wall garden approach will become necessary. i think it'll work for them. apple ios is a good example of a wall-guarded approach. facebook is cracking down on game developers with two new policies to prevent them from luring traffic away and lending to the social graph from gains outside facebook. this comes on the heels of facebook changing its contract with zanga. now facebook aims be integrated across the web. in order to make it needs to make sure to keep as much traffic as possible within its own platform and that's what these moves are all about. sue, if facebook does this well, users will not notice the difference and facebook will be able to make more money. >> let's switch gears a little bit julia. groupon, shares hit hard
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recently. but friday they soared on rumors involving google. right now, groupon is giving back a lot of that gain. down almost 8 1/4%. what is going on? >> well, google might be interested in buying groupon. we are seeing gains given back today because a report came out from evercorps, an analyst, saying that he saw no basis to these reports and sees no reason why google would want to buy groupon. so looks like stocks are coming back to earth. there are concerns about its fundamental business model as it tries to expand beyond the deal a day business, that's its core business. >> julia, thank you very much. google stashing billions in off-shore accounts to save a few bucks in taxes and what the deal with jc penney? are they having deals or not? we will discuss it more when we
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welcome back to "power h."on johnson&johnson getting
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expanded approval for the fda for the use of its drugs to treat men with late stage prostate cancer prior to recovering from chemo -- receiving chemotherapy, that is tp the stock has a price target of $80. trading right now at $70. >> thank you. joining us, kayla, john. google avoiding billions in income taxes using the double irish dutch sandwich strategy. smart move or a corporate tax dodge? kayla, you go first. >> it is one thing to keep the cash you make abroad in receptacles abroad. i know pfizer does that and inger sol rand and even cisco even does that. the pretax prove it to bermuda, i think that's a little bit shady. that could be invested here for sure. >> we have been hearing these
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complaints lately. starbucks has been brought up before parliament in the uk to answer questions about why they are not keeping their tax money at home. the reason is, the tax rates are too high on corporate profit. bring them down and the taxes will stay at home and you won't have it problem at all. >> yeah, i think the real underlying problem is the bad state of the u.s. tax code that forces people it take advantage of things that are legal if not necessarily patriotic. >> these companies are following the rules. nobody is accusing them even of breaking rules. >> it is not illegal. >> we have to expect them to do exactly that. >> fix the underlie be problem and you fix this. then they might actually good to work under this country. >> we should say thank you for doing that. >> jc penney throwing in the towel on no coupons policy. 20% off on friends and family discount over the weekend. has ron johnson finally come
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around? or too little too late john karner? >> i was a buyer into the story line. when i saw bill akman give his presentation on how jc penney would turn things around with no more coupons, i bought the idea. so the the fact that he is backing down now, made me questioned kwe his lehis leadership. >> i would like to see an about face from johnson. he said no coupons. if he is changing his strategy, i would like him to come out and apologies. it is like lipstick on a pig. in any e-mail this morning, they today farm this house to something bigger than my friends and family. >> he was brought into a no
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coupon strategy. get rid of them if it doesn't work. >> let's move on to "the new york times," regarding that bloomberg ear company might make a bid for the financial times. or digital property like linkedin. the mayor will move on the political stage in a couple of years. maybe wen't to run something really big. not that he's not now. >>ty, i can actually say this is not out of the realm of possibility. this is something i could see happening p. after he is mayor, he needs a pet project. this is hugely prestigious. it is not really a money-maker. so i think it goes best to someone without share holders to answer to. clearly bloomberg would not be that issue. i think there will be a bidding war. i think a lot of moguls want their hands on this. >> i agree with you a hundred percent with the ift. linkedin is a ridiculous idea.
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bloomberg makes a lot of money, i think this is a pipe dream. it is on the line of a disaster of aol and time warner getting together. don't do it, bloomberg. stick with your glory feeling and go for the ft instead. >> i don't think bloomberg needs to get his resume out there on linkedin. i think he will be fine. thanks, guys? >> the government wants to save money, but what about consumers? should they be forced to put money into retirement? most people do but some don't, should they be forced to? [ male announcer ] 'tis the season to discover the kid in all of us. enjoy free shipping and great values
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i think that's why the mark set stuck right now. we were up about 30 point. we lot of a little p. we are up 17 now. s&p 500 is up a half point. in terms of the nasdaq, we are up just about 7 point. steve grasso is with us. what does the market want it hear from the president at 2:00? >> they want to hear a deal is close to booeb beieing done. fund managers don't want to take a leg and step into the abyss of the fiscal cliff. >> absolutely. we heard a short term patch is not going to avoid us from another drown grade. if you are a fund manager, do you punt in december? i think not. you wait. >> does downgrade matter? >> you did see the collapse in the market because the market always is a good lead time for
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you. so leading indicator. . the best leading indicator is the s&p 500 so we have seen just sitting here in no man's land. >> it is as flat as my ekg. >> god for bid. >> yeah. >> normally, might well be a big topic. >> did you say anything? >> put it this way. what could they do? i think they are tied as well as the market. they are almost like a fund manager right now. waiting for the economy to sort of take the lead. there's only so much they can do. how much further can they do anything at this point? so i don't think we are looking to the fed. i think we are looking to closure, some sense where small business owners, can get back to work. hire, figure out how much these employees are going to cost them. and figure out how to get the economy going. that's what it will take, right? >> how are you trading this market? what you are putting money into? >> it has to go into individual stock stories. i played it with winn.
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i played it with costco. i looking at yahoo! now. it has to hold this level. yahoo! is around $19.20. it has to hold that 19.15 mark. then it becomes truly buyable. if yahoo! holds, 19.50, hate it get stock specific on you. >> no, that's what he want. >> you would be willing to put in your first buy -- >> would you buy app snell. >> no, at 665 i was right at not buying apple, saying it was coming in. so i i thought it would be get 600, 580, it did. i would not have bought it on 505 not caught that spike up until about 540. >> what are your thoughts on gains, certainly 15% raise -- >> it is hard it talk an investor out of not locking in when you know what rate are right now. you see it with small


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