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tv   Power Lunch  CNBC  December 12, 2012 1:00pm-2:00pm EST

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see your doctor, and for a 30-day free trial, go to axiron.com. final trades, kick us off. >> i love the way that the gas is trading. i like emn. >> i'm going contrary here. xrt. >> long yum. >> fxi, china on the long side. >> that does it for us. catch the documentary tonight, behind closed doors at mariott, start at okay. "halftime" is over. second half of the trading day starts now. >> absolutely. spend the night in a hotel with scott walker tonight at 9:00. ats he froo free. fed leaving interest rates the same but that's not the news. there is a new bond buying program and making an historic move keeping interest rates down
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low so long as unemployment rates stays above 6.5%. tying the rate it an economic trigger. an date. fed chief bernanke gearing up in about an hour's time. apple moving into your living room. yes, sir. tech tightian reportedly closer to testing several tv set designs. will it be the game-changer that so many have been waiting on? and you heard it here on cnbc. j.p. morgan's jamie dimon. taking about the fiscal cliff. do they expect a deal? their take on what happens if we do go over. my partner sue at the new york stock exchange. my partner sue with big interviewes this hour. >> that's right, ty. i spent the afternoon at blackrock's trading room and i got their outlooks for 2013. you will see it first here on cnbc. here are investment take aways. fixed income.
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they feel there is danger in what many people consider a safe play. commodities, they have a long view there in many of those sectors. equities is kind of a global shorg an board, if you will. but they like the u.s. best. and in currencies, blackrock is all about being a dollar bull. so where specifically are they putting all that money to work in light of fiscal cliff? take a listen to what bla blackrock's robert casid 0 to me. he manages the firm's $3.7 trillion in assets. >> does this mean we good over the fiscal cliff. >> it is a very high likelihood it does or 11:59 on december 31st with a lot of hoopla. but tax rate are going to go up. there is a going to be a conclusion to this. even if it waits until the last minute. even if it is in january, what it is going to mean is slow growth. it may mean that we lose the entire first quarter because everybody is still worrying and talking about the issue.
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and here we go, clients again, investing in a time when they need to be invested. >> he also thinks if we go over the cliff it might trig ear recession. what about the fed? as you know, it announced those big moves today. tying any move in rates to the unemployment rate. are we in a bond double? we will hear from blackrock's chief investment officers of fundamentals fixed income reader told me later. >> ty, over to you. >> thank you very much. to the fed now, policy makers leaving interest rates unchanged and announcing a new bond program and making an historic move to economic targets. bernanke gearing up now for his big news conference about the economy, about an hour from now. and our steve leesman is one of the lucky few who gets a question and he joins us now from washington. this is really something that not a lot of people expected, steve. >> i think that's right, tyler. and it is absolutely historic. fed for the first time putting economic targets around its funds rate projections and first
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of all, the other news was that it did end -- it said it would end to replace that so that brings the monthly purchases of long-term assets to $85 billion. i want to show you some math. the current level of the math call it 2.8 trillion. add a trillion to that, you will be at 3.8 trillion if we do go at this pace for a full year here. the precrisis level is $800 billion. i want it put it another way, tyler. increase the balance sheet from '09 to '12 by a trillion dollars. we will do that in one year. aggressive policy from the fed. unaggressive as tyler mentioned the idea of using economic targets for funds rate. we know they were talking about it. we know there was support. we didn't think the federal reserve had unanimity enough to do this. only jeff lacker from richmond fed gave incentive this time around.
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there is a bit of confusion as i head this statement. there's two different things going on. one is asset purchases. other is funds rate target. there are two different litness tests for now long they go on. federal reserve says it'll keep going if the labor market doesn't show signs of improvement. we have to ask bernanke how well this works together adds a whole, to really explain what is going on here. >> what is the implication steve, of that economic trigger on the fed's funds rate. for investors holding fixed income assets. as you move down towards the 6.5% magic point. what happens in the markets? >> well, i mean, you a sense e sensitively, the market will anticipate either an ending of of the program as we near it or even potential asset sales if we do get a rise in inflation towards 2.5%. i would like to point out, tyler, that 6.5% average number is exactly the number that was
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given to us by our -- in our cnbc survey yesterday. they hadn't talked about it at 7% but 48 respondent's came in which is pretty interesting. i will also say tyler that key here is going to be to listen to what the fed chairman says because even though we have numbers now, there is still a lot of language going on in there. >> a rel lightning bolt off of constitution avenue there, steve. thank you very much. sue? >> guys, markets are still digesting this because it was unexpected that tying it to the unemployment rate. we've add modest advance in the dow jones average. they are trying to parts the language in the statement. dow jones industrial average of 63 points. s&p 500 is up about 10 and nasdaq is up just about 9. kenny is with me. also with us this week, is the ceo of destination wealth management. michael, you and i were upstairs doing computer work when this came out 37 you were as
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surprised as i was as they were going to peg this to the unemployment rate. >> steve said that i think for investors, what is absolutely critical is exactly what tyler brought up. there are investment consequences with specific numbers. as you slope towards those numbers, i believe you're going to see assets sell off. it will impact investment strategy. not when we get to 6.5%. when we get to 6.99%. that's when the move will happen and people need to be aware, investors need to be aware of what action when that happens. >> especially with the amount of money in fixed income. >> right. sale of the fixed income into the equity asset. what you could wo expect has we move towards that goal is that the market would be -- eks wit ma market would start to heat up. >> feds have been trying to get the investor to take on more risk. >> and they have been successful in getting the investor to take
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on more risk. there's been no change another than the continued talk of the stimulus. >> when you nad what is happening with higher tax rates it makes it a very, very muddled picture for investors. one that investors need to sort through. tax rates are going higher and if cap gains rate is still discounted relative to ordinary income, maybe 20% rather than 15%, higher but less than ordinary incan come -- >> right. >> the whole map is being arranged with this fed information towards going towards -- >> we talked about that yesterday to rob at blackrock and here is what he had to say. >> can you see double-digit returns by buying large cap, good companies, that have cash and are going to buy back stock and raise their dividends. that's one really good area. >> that's that's what you said, kenny. global companies with strong balance sheets as he just said,
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steady cash flow, growing dividends, also global energy and emerging markets. they are very bullish on domestic plays in brazil specifically and china. rob telling me he thinks latin-america is on fire. north asian cyclical stocks. mexican banks and industrials. then they move on to discounted exporters on europe's periphery. you have to be careful there. but if you want it add risk to your portfolio, that's where they are going. and small self help united kingdom company. >> a very eclectic mix. >> i was at world economic forum, the winter world economic forum in china. >> right. >> that's all anything anybody was talking about. what they were talking about is businesses building product for internal consumption. that's where the growth will come from. >> that's why when the trade figurers came out in china, people weren't concerned about it. they were more concerned about their own internal growth.
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>> and that policy makes that shift to a more balanced policy. >> well watch this market closely with you guys. thank you so very much, ty, over to you. >> fed chief bernanke set to give his conference about 2:00 eastern time. and how would you grade the fed when it comes to the economy? go to finance.yahoo.com. let's see how the fed action is playing out in the bond market. and why don't we ask you, rick san telly? you grade bond auctions. why don't you grade the fed on its economic policies? >> d, i give it a d. and i'm in a good mood today. keep up with me, i want it look the at entire curve. so today at 2:00, snooze during the fed meeting and that makes sense. especially considering it takes a couple hundred thousand jobs a month for years and years. unless you stop counting the
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unemployed. 5 is more vile but still a snore. here is what it gets interesting. 10s and 30s. up 4. 30s at 283, they are up 6. but the real action continues to be in the currencies. if you look at the euro, it is holding up remarkably well as everybody competes on the quantitative easing side. yen had a rambunctious upside thinking it was all coming. if you open the chart, fresh highs on the dollar versus the yen going back to march. back it march. sue, back to you. >> boy, glad you're in a good mood. who knows what would happen if you weren't. ceo jamie dimon speaking out on cnbc. coinstar soaring.
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welcome back to market flash. >> shares up just over 5%. one of the best performers in the s&p 500.
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the company expect to double sales and earnings by 2015. that puts sales at $5 billion, 10% above its ear earlier target for revenue. the company expect to hit earnings of 4 bucks a share for 2013 which would put it in line with estimates. sue, back to you. thanks, mary, very much. >> we are watching ten-year note yield at 1.694%. especially in light that fed placed targets around moves to change their monetary policy and their stands. so as part of my big interview with blackrock's chief officer, rick reader, i asked him whether he thinks we are in a bond bubble. >> it creates bubbles is too much supply relative his demand. i think is the exact opposite. we have too much demand relative to supply. >> however, he does say that there's danger in safety. that's part of our first conversation on cnbc with blackrock's 2013 outlook and how
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they play their $3.7 trillion in assets. full interview in the next half hour, you won't want to miss it. still a stalemate over the fiscal cliff on capitol hill. house speaker baner making comments earlier. meanwhile, a new poll out today on the cliff, economy and our leaders in washington. john harwood live at the wlous with more on that, john, over to you. >> reporter: sue, we will have full details tonight after 6:30 p.m. but for now, we've got one early release question which the results will not come as a surprise to anybody on our network because the desire by the public for law makers in washington to make a deal is very strong. when we ask people, do you want both sides to compromise on their positions, even if that means cuts in social security and higher taxes, or do you want them to stick to their position, 65% of the american people say they want both parties to
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compromise only 28% say stick to your positions. that is very consistent with the desire on wall street. and it is on main street as well, to get something done. and as you mentioned, sue, there has not been much external signs of a deal. though we did have an exchange of offers and that at least is something. >> indeed, john, it is. thank you very much. john harwood live at the white house. ty? >> sue, joining us now to discuss the fiscal cliff tug-of-war is a democrat from new york state, senior house of the financial services committee, representative meeks, good to have you with us. let's turn to entitlement spending. that is of high importance in solving the fiscal cliff negotiations and in a longer term way bringing the country to a sustainable fiscal course. what specific changes to medicare or medicaid would you be willing to imbraes today right new that would slow the growth in our medical spenting?
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>> i'm not going to debate the specifics on television. i think that what the president is doing, is clear that he has indicated that we have to raise the tax rate. the tax rates, bush tax cuts, was temporary in nature. >> that's not what i asked. i asked what specific would you be willing to do to address what is clearly the number one thing that is going to blow the hole in not only the economy but federal spending, federal budget over the next generation. >> what we have to do is negotiate. everything should be on the table. i think the president indicated that everything would be on the table. the president indicated he is ready to talk about entitlements, et cetera. the other side said we can cannot raise tax hikes at all. we have to make sure that everything is on the table. if everything is not on the table, that makes it difficult. both sides have to be something to the table. there has to be pain for everybody.
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just to go on one side or the other, the president says you have to have everything on the table. but you have to have the other side saying, everything is on the table. >> would you be willing to put on the table changes such as medicare, possibility that wealthy fortunate people like i would pay more for medicare premiums or third that you would be willing to investigate some ways of reducing the high percentage of expenditures that go into end of life care in medicare. any of those tickle you? >> i believe that we've got to get a grip on our budget. i think that we can't continue to be in deficit spending, we have to figure out how to redo it and redo it right. i think what happens is there are individuals that i represent that i'm not going to be happy and there should be individuals who i don't represent who others represent should not be happy. and therefore we should get to where we need to go. but it's got to be where it is fair. it is about a matter of fairness. that's what i'm looking for as president and the speaker are negotiating. i'm looking for a deal that comes out to be fair.
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i think that's what the poll is all about. that what american people are asking about. they are asking about a fair deal and so once i can see that, then i can either vote one way or the other. but it has to be fair on both sides. >> thank you for being with us and good luck to you. >> gentlemen, some of wall streets biggest names are at deal books opportunities for tomorrow a conference in new york city and so is our kayla. >> hi, sue. a slate of heavy hitters throughout the morning. and the day is only half way over. well tell you what they said about the fiscal cliff and innovation coming up after the break. try running four.ning a restaurant is hard,
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haj way brought back 1.2 billion from the stock of an estate from an unnamed investor. this is one day after buffet advocated for a higher tax when the wealthier die. though 120% of book value from 110%, let's look at berkshiurke haj way shares. they are up $4100, sue. in this trading session. >> a perfect stocking suffer, i think for you, ty. thank you very much. inaugural deal book opportunity for tomorrow held in new york city today and cnbc had exclusive access to the like of
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jamie dimon, blake and mark andresen. hi, kayla. >> hi, sue. we have takes on the morning spesh especially with the all important fiscal cliff. he says he didn't mind when there is gridlock. when the government does something it usually ends up in gridlock anyway. but jiamie dimon says the government has do much. >> we have moral authority around the world. let's just do it. the table is set very well right now. corporations, middle market companies, small business in good shape. 5 million more people working than four years ago. housing turned the corner. let's just keep it going. >> we heard from ceo of gold man sacks saying if this were a business man manner there would be no tripping of the fiscal cliff at the end of the year but
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also made interesting comments about goldman sacks reputation. here is how he categorized it. >> we started from scratch. no one knew who we were or what we did. and shame on us in hindsight we let other people define us and nobody knew what we attributed to the economy and jobs growth creation. we were slow off the mark because we hadn't really developed that sense. >> for goldman sachs, the president is definitely soliciting advice from dimon and blake. well continue to keep an ear out throughout the day. back to you. >> lots of fascinating conversations this morning and throughout this afternoon. thank you, kayla. if you would like it watch more of the deal book conference, go to cnbc.com where we are streaming that coverage live. >> reports say apple may be closer to its own television, so
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would you buy one if it were available to you? plus, more on sue's interview with fixed income cio, rick reader. that and more when we continue on power lunch after this. [ male announcer ] 'tis the season to discover the kid in all of us. enjoy free shipping and great values on your holiday shopping from l.l. bean. [ male announcer ] this is joe woods' first day of work.
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welcome back to "power lunch." this time we are looking at shares of research in motion. right now the maker of the blackberry trading at seven month high. this ahead of its earnings which will be released next week. next month's release of two new blackberries as well as a new operating system. sue, back to you. >> i need a new blackberry. hope they come out with a good one. thank you very much. gold prices are closing right now. a lot of people trying to hedge bets ahead of the news conference. how does it look at close? >> we are seeing jockeying for position. we did see about half hour ago, gold prices at highs this session around 1725 an ounce. giving up some gains, looks like it'll close the floor session right around 17, 18, up about 9 bucks or so on the day. so far. but again, there's a lot coming here in the next hour. and that could have a further direction for the gold price. over all what the fed is doing,
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this new bond-buying program, traders should say should be very bullish and they were expecting traders on the floor to see a greater upside momentum. for now we will see what happen eats 2:00 and the focus is on the copper market. copper prices have a nice little pop today. er with looking at reevaluating where the ranges might be. china looking ahead to what car sales data and home buying data will show. there could be further pricing in copper. traders watching copper closely as well, sue. >> all right, sharon, thank you very much. i'm here with bob and michael once again. bob, we will start with you. up 75 point on the dow jones. we still have the fed news conference to go, though. >> yeah, here is what is important. there is a tug-of-war going on between the stock market and book market. stocks love stimulus. infinite for stimulus. stim lut infinity. if you look at major sectors.
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big global gloej areas. industrials, materials, all of your energy stocks. all are kind of moving to the upside today. here is the problem. the bond mark set scared to death of the inflation implications of what the fed is doing today. so if you look at bond yields you will see a big move up in bond yields. if you look at the dollar, the dollar weakened because of course, stimulus means of course cheaper dollar over all. there is a real tug-of-war going on between the stock and bond market. >> we were talking earlier that bond market sees there is a finish line. once we have numbers pegged, they say, rates aren't going to be low forever. if the bond market sees unemployment at 6% or 6.99%, you have seen sell off today. >> when do we get to 2.5% inflation, that's a squishy number. 6.5% he employment, when are projections at 2.5. >> to michael's point though, you don't want it wait until you get to 6.5%.
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if you have been in this bond market with all those other people that have been in this bond market for a long time, you don't want to be the last guy out of door, you want to be the first guy out of door. >> he is selling off today. >> after two years of people predicted. >> well, i've been predicting for two years. is it the first prick? maybe. but it is inevitable. if you see this much free money floating in the system, inflation has to go up, a rubber band that will eventually let loose. >> a little gold but not dramatic. >> let's talk night trading. guys behind us at night trading post behind us may know the fate of who gets night trading by the end of the day. tell us what is happening. >> not entirely clear. i reported earlier, there is a board meeting on monday. two competing bids from get co. i expect there will be additional improvement in the bids at the last minute. i don't think there will be additional people bidding on it at this point. makes a lot of sense.
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you have the fastest, baddest on the street. both are highly respected. have you knight. they've got the biggest block of retail volume that's out there. you combine those two, you've got a market leader in trading. it makes the logic of this deal, it makes a lot of sense to me. >> thanks, guyes with. appreciate it very much. let's get trading action now from nasdaq with bertha coombs has one of the biggest over there. >> of course, apple moving back into positive territory. spent much of the morning in negative territory. we will see if it can make it two days in a row putting together gains. meantime, lot of movement when it comes to video screening. red box division, dvd rental company, teaming up with verizon to do a streaming service but take a look. netflix is the best performer. you would think the news would be bad for netflix especially after moodies cutity rating. but the stock today, best in the nasdaq 100 after j.j. morgan
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stanley said they are rise raising their target because they think the deal with disney will lead it other key content deals. garmin starts today in the s&p 500 but it is among the biggest losers, as is facebook which starts today in the nasdaq 100. back to you, sue. >> thank, bertha, we appreciate it. when we come back, talking with black box rick reader. we will talk to him about the bond bubble when we come back. americans believe they should be in charge of their own future.
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in today's yahoo! poll, we asked, fed chairman bernanke is rating. how would you grade the fed?
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64% say f, the fed needs to stop all easing and let the economy reset. wow. new york attorney general announced a push for more disclosure today by proposing new regulations that would force nonprofit groups to disclose more of their political activities. here to explain further is the new york attorney general himself, eric snyderman. welcome back to "power lunch," mr. attorney general. good to have you with us. >> good to be here, tyler. understanding who exactly is effected here and how. these are 501 par c-4 groups. who are they?
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>> 501 c 4 groups aren't like c 1 where they have more restrictive activity. they can be lobby or other things that intersect between public policy and politics. they are not supposed to engage in campaign activity, however, other than to really a very sort of dimin muss extent. >> what are names that i might recognize, mr. snyderman? >> 25014, in new york i regulate the chair knits new york state. we have thousands of charities. including c 4s, from the rifle association to planned parenthood but we have discovered a new phenomenon of c4s set up to launder money and conceal folks spending money on political ads and mostly, attack ads. and the last election, the election that just finished, we haven't finished counting all of
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the numbers yet but we expect over $500 million was laundered through 501c4s that went into political activity. in new york, we have local elections next year, including mayor. and state elections. my regulation added to other regulations for offices for charities which requires any c4 spending money on campaigns to disclose expenditures and donors paying for that activity. >> specifically to report the percentage of expenditures going to state and local election nearing and if they spend $10,000 or more to disclose itemize schedule of expenses and contributions if they are trying to affect state and local elections. this is subject to review and public comment and so on and so forth. but who is confused here. i mean, if i know that my money is going to one of these 501 krs
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/* 1c4, why would i be doing this. >> since water gate there is a consensus that if you spend money on political activity you have to disclose who you are. we don't want anonymous people buying elections or influencing elections and that's our national policy, that's the policy of new york state. the problem is folks are abusing the nonprofit form because nonprofits are allowed to keep their donors private. they are abusing nonprofit form by pretending to be social welfare organizations. if you want to spend money, can do it through a pac. voters know who is supporting a candidate. other people know, it might be solicited for contributions,
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what this is really about. if you get solicited by the, you know, committee for ethics in new york politics, sounds good. and if you don't know what the expenditures are for and who else is involved you might end up giving to a group you don't want to support. >> i'm not an attorney and i don't try to play one on tv, but this rule making would seem to me to collide with the citizens united ruling of the supreme court of a couple of years ago. do you anticipate that there will be some kind of constitutional provision that could arise on the new rule that you proposed. >> absolutely not. in the citizens united decision, one of the things that justice kennedy focused on is if you are allowing spending it is important to have full disclosure of who is doing the spending. to avoid the corruption or existence of corruption.
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er with losing donors and exposures when people launder money. our regulation will stop that in new york state and local elections and we think it is a step that has to be taken given the increasing use of charities for these purposes. . >> eric snyderman, thank you, as always, for joining us on "power lunch" sue? >> more now own the cnbc interview on blackrock's interview and how they are playing their $3.7 trillion in assets next year. i sat down with blackrock's chief investment officer, criri reider to get his view on the bond market. >> you think the u.s. will lead the world in the prospect of a bond market. you think the financial institution delevered. the housing market and rel estate, 80% of banks, balance sheets, that is improving. that makes you feel good about growth. >> talk to me about fed.
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>> sure. >> mr. bernanke has said that he can't solve all of the problems. he has done what he can do. monetary policy loose, and interest rates will remain low for some time. what do you want to hear now from mr. bernanke? >> you know, i think he has been pretty adamant and rightfully so. there's always been monetary policy to fiscal policy, and that's how you created change when you wanted to move the economy. this, you about it the last if you years, it is un latry rally monetary policy. we like to see fiscal help and there are things that can happen from fiscal policy initiatives. in terms of money that is trapped overseas that can come back. small business lending programs. tax credits. you think about it, there are so many things that can take place if he got some help. i think what we will learn in 2013 that's different than the prior years is i think we are reaching the limits and i kwb quite frankly, think we will learn about more qe and we are seeing we are reaching limit now of what qe can do.
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>> the bond market is the favorite invest many of a lot of our viewers certainly. and many people who have piled into the bond market for the return of their principle rather than the return on their principle. >> how do you feel about that? are we in bubble formation in the bond market? >> i don't think we are in a bond bubble. i can't figure what analogy to inverse of a bubble is. the reason i think that's right is you think about a delevering world. who world is delevering. what that means is less fixed income. simultaneously, aging population living longer. so you have what creates bubbles, too much supply relative to demand. i think it is the exact opposite. i think we have too much demand relative to supply. >> what keeps you up at night in what worries you about what we see? >> i think pry nearry one is gosh, we are investing in yield levels that are historic. we don't think about where we got to in 2012. these are levels that haven't
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been great times to invest. the fixed income is low income. >> right. >> long duration. so what is happening is fixed income is evolving to where there is a riskier component to it and at some point, that is going to create danger and fixed income. we aren't worried about rate but we think about it quite a bit. >> bullish perhaps is not the right word but you feel better about india. >> yeah. >> why? >> if you went back six months ago, you had three challenges that were really staring you in the face. growth paradigm, inflation paradigm and political dynamics. >> and social unrest. >> and social unrest, so four. now it sim proving. there is some political movement that makes sense. we feel better about it today versus six months guy. india has challenges for sure. >> china managed to engineer things so far, anyway. >> yes. >> because that's the driver for
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the rest of the world to a great extent. >> yeah. i think china is -- i think it'll surprise you. we have said this for a number of years. you are seek all of the data released today. you have leadership change. stimulus coming in the system and fixed investment that is certainly in descent shape stimulated by the central government. i think that chienal surprise you. create high 7s, maybe 8% growth. we're not certain on how durable that growth is. china is not the story for the next six months o 0r year. >> so in terms of fixed income, some of blackrock's key picks in the fixed income arena, global high yield and u.s. munis, if you want income. also willing to do into spanish and italian bonds. commercial mortgage backed security it's collateralized
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loan obligations. they said they can grow from 2 million to 2 trillion in the next decade. with blackrock's outjout look and how they play the 3.7 trillion in assets next year, coming up tomorrow, blackrock president rob capido on how to avoid going over the fiscal cliff. >> this is not that complicateed. kun spend more than you take in. cut spending and raise taxes and come to a conclusion as to whether it's going to be. >> how to play 2013 the block rock way, she tried to say. that's coming up tomorrow, ty. >> all right, sue. apple a step closer to making apple tv a reality. is it a game-changer? netflix facing a challenger in the movie streaming business. what it means for that company now. but when i was in an accident... i was worried the health care system spoke a language all its own with unitedhealthcare, i got help that fit my life.
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of power. we have another market flash for you. this time, hess, up 3.9%, another discovery in a deep water coast off the coast of ghana in africa. this is the fifth discovery it made in that's block.
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shares respond together news up 3.9%. tyler, back to you. >> mary, thank you. bob is with us on cnbc.com's net editor john carnie is with us. and 23 other states in a right to work bill, requiring workers to pay union dues. is this anti-union or pro business? how do you call it? >> i think it is an anti-union move. it will help businesses as well. a lot of people think it is a libertarian thing. it gets in the way of people's freedom of contract for employers to be able to say, i will only employ union workers. i can don't think these laws are a good idea. >> i'm very torn about this, john. i think requiring someone to pay fees to a union as condition of employment, that strikes me as wrong. on the other hand, my grandmother is with the internation international garment workers for three years. i think she would say, allowing people to piggyback on the gains made because you want to get
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out, i would v a problem with that too. i'm torn about this and i don't mean to sound wishy washi. >> i'm with you, bob. two, two, two mints in one. i think it is both anti-union and pro business. they are saying we are losing competitively to states like texas, north caroline why and virginia and others in the fights for workers. think i we all saw this coming. apple working with employers in asia to test a television set design. it s it a game-changer? would you run out and by one if apple comes out with a tv? >> i would. but apple needs a new product. and cook said so when he talked to brilian williams, saying, when i look at the tv, i feel like i'm going back 30 years. if that's not a tell, i don't know what is. but can they crack the broadcasting contracts? what will they offer in apple tv that no one else offers? >> what do you want apple to do that your current lg, or samsung
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doesn't. >> i will tell you what i want tommy thompson v to do, what my 3-year-old daughter does, she will swipe. she walks up to the tv to swipe. she only walks cnbctv, though. so i think it doesn't need technology revolution for tv to work. imagine how much more apple will be than every other television. to make that, people to make that extra investment, it has to be radically different. i haven't heard anything that indicates that. >> i would like to be able to talk to my television and tell it to do something for me. like monday night football. but boy, if it does that, voice recognition better be better than the one in my car, where i say navigation and it says, did you say, chicken teriyaki. it doesn't work. there are new details about a streaming service, red box instant, releasing in beta. unlimited streaming, 8 bucks.
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you get that plus four physical dvd rentals. is this, bob, a netflix killer? >> i don't know. you know, have you noticed other specific streaming on demand businesses don't seem to be igniting the world? hulu is doing okay but not fabulous. there are deals on certain studio releases that they've had. i guess the question is, is it a killer? no. and how much demand is there for all these other can competing services? >> i think it is a big challenge. this service isn't that big where i live. but my friends who live in the midwest, they love red box. i think this is a really, really big challenge for netflix and we will have a lot of fighting in this space going forward. >> thank you very much. let's go down to sue. >> guys, most people assume that sold out at hotel means there's no room left. but as scott walker reports for a new cnbc documentary, that may not be true for everyone.
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>> sell-outs happen. 10 to 15% of the time, there's no room to be had. or is there? >> what happens if you're sold out? and i'm a platinum member. and i come walking through the door and i say, i need a room. >> a lot of times hotels will save a couple rooms, hoping for just last minute plat nums. because we don't ever want to turn a platinum away for any reason. >> and they will tell other people they are sold out? >> oh, yeah. >> if i called up, they would say, sorry sr r sir, there are no other rooms available. >> there are secrets about hotel availability, pricing and much more. tune in to behind closed doors at mariott. tonight, 9:00 p.m. eastern and pacific time with scott. >> cnbc has live coverage right after a quick break. you won't take my life.
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why? because of that. the podium waiting for ben bernanke to make his announcement. steve is inside that room and we will have live coverage of that event for you sccoming up as "street signs" comes up at 2. ceo of destination wealth management, i know you will be waiting to see how the fed chief elab rates on the process of coming to these particular targets. >> yeah, it will be fascinating as reported already. we have historic targets. something very specific that people have been screaming for. when is unwinding going to happen? he set the targets now. we will see what the language is. >> very quickly. what three stocks do you think would be a good play given the environment we're in. >> three quick names. first of all, master card. master card will continue to

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