tv Power Lunch CNBC March 1, 2013 1:00pm-2:00pm EST
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xl group. >> steve? >> verizon. still think it's solid. >> have a great weekend. "power" starts right now. >> this is a special edition of "power lunch." one tough week. it's been a rough seven days for many of the biggest names in business. and the biggest names in washington. >> he has got to go. >> jc penney's ron johnson fighting for his ceo ship and courtroom battle against macy's. the prize, martha stewart? >> you don't like it, you're fired. >> will he be next to hear -- >> you're fired. >> then bill ackman. vanity fair going after him. and his drive outside of the office. oh, and washington. >> a shame our republican colleagues have decided to protect special interest. >> how much more money do we want to steal from the american people. >> the uncertainty is already having an affect. companies are preparing layoff notices. >> a special edition of "power
lunch," one tough week, begins right now. >> and welcome. i'm scott wapner in for sue and tyler today. this is a "power lunch" like you've never seen before. and it's going to be a great hour. it all happens with a backdrop of the dramatic market were were watching. we were down a hundred point but solid economic data brought the bulls back from their slumber. we have record territory and we will be on it for the hour. macro and micro on the date. take a look at dow jones industrials. 14,101. remember, the number you need to watch, 14,164. that's a new all-time closing high for the dow. s&p, nasdaq, positive as well. gold and crude oil going in the opposite direction. on my board today, cnbc's kate kelly. she covers high finance. wall street insiders and high rolling world of hedge funds. kay la covers wall street and big deals. robert frank covers big money,
big power, and yes, big spending too. also today, henry blodget, he is with business insider, but he is moonlighting here on "power lunch" today. welcome to all of you. you is a you it in the open, theme of the hour, one tough week. there you see them on the wall. we're talking ackman, mason, johnson and washington, just for starters. we start with groupon's founder and ceo, andrew mason. fired. no question about it. the stock's been a stinker. down 75% in a year. but up, 8% today now that he is out. henry, i'll go to you first. he has left the building. >> with a graceful letter, took full responsibility. said hey, i'm just resigning for family reasons. no, just kidding, i was fired. he should have been fired. it was time. but i think people are very too quick to jump on him and say he did a terrible job. groupon is still an amazing success story. although they have a huge challenge in front of them.
>> this reminds me of carol bart saying she was fired from yahoo!. >> an e-mail. >> opening up in an uncanny way. mason shot himself in the foot with being way too over the top. posing fob vanity fair with a cat on his head. giving kara swisher the silent treatment at a conference. they were morphing from one thing to another, daily deals it e-commerce. now picking a fight with amazon. it is too much for people. 75% drop terrible. >> but there aren't enough ak centric entrepreneurs who can admit they are not good ceos. a very rare breed with start a company, run it for a long time. he said, look, i started this company but i'm not so great at running it, so see you around. by the way, he has 20 tore 30 million in the bank, 200,000 shares. he is good to go.
>> the board ousting andrew mason, last year, but decided to keep him in place. i asked, who do you think would take his place? and i was told, there are few people seasoned in silicon valley, or in chicago, who could wo take the reins there. >> this is a global turn around in 40 countries. just a complete mess. so totally different story. >> as one person put it to me -- >> and a tax rate because they expanded that quickly. >> it is as when the company started, andrew mason was 2 years old, woke up 14 years old. massive growth in an industry that collapsed around him. a lot of debt and casualties in this industry. we may see further consolidation between groupon and living social for example. but i think blame is due to the board. why do they not make up their mind? they sacked him one day after earnings report.
>> moving on. jc penney ceo ron johnson is the second business leader who had a rough week. cramer put him on the wall of shame. take he takes center stage in the jc penney martha stewart trial. courtney reagan is outside the courthouse, courtney? >> some of the pest testimony resolved around what jc penney hoped to offer for full board approval with martha stewart om knee media in 2011. in an e-mail, she says i understand these quotes are indications only. offer price were $7. annual royalty to martha, 2% sales. restricted jcp stock for martha, 150 million. one board seat need to exit existing macy's contract. the response, the 2% royalty should be worth $20 million plus per year.
nar can earn 500 million if things go well and i don't think anyone else could provide this to her. mace mason says, she is very interested. the ball is in her court now to talk it macy's about a break in a tight, exclusive agreement they have with her. this will be difficult as they see jcp as their primary competitor. they are no longer friends and you saw them walk by going it lunch. >> henry, you think the market's been tough on andrew mason? >> they've crushed ron johnson over the past year. >> and completely deservedly so. the only thing a bigger mess than this lawsuit and trial is jcp itself. same store sales down a third. that doesn't happen it companies not going out of business. we are talking about it being a transformation. right new a transformation in the way a building demolition is a transformation. it is complete destruction. >> come on. if you watch the webcast,
johnson gets out in front of everybody and says, i was wrong bp we have worked through issues way here when we came aboard and i'm telling you this thing will work. new store concept looks good. that will work. we have worked through other overhangs and shouldn't we at some point give this guy a chance? has he had enough time? >> i don't know what jc penney is. and the consumer product world, it is a bar bell. you have the folks at the top willing to spend luxury and quality and low price and some wealthy people shop in the low price area too. but if you are not wal-mart, target and you are not in the saks fifth avenue, then where are you? i don't know what audience they are sterve. what customer. >> thank goodness they hired a new manager who can came from
coke. >> is his name joe fresh? >> i'm not sure. >> there are high hopes for joe fresh can coming out of canada as well, right? >> this is wall street journal. latest financial results show jcp struggling for its life. dropping 12.3 billion in the months since ron johnson took over. that's dreadful. to henry's pint point, i don't think can you look over that. >> can anyone turn it around? can anyone turn it around? >> the trouble for people trading this stock is unless what the company announced but the fact that now iti its debt got downgraded. few people are comfortable trafficking in that space. what will happen, what are their capital options here and could they be tipped over at any moment? >> we know the hedge fund titan bill ackman is still behind ron johnson and still in his corner. he is the focus, however, of a not so flattering piece in
vanity fair. that's coming up. i have a little read through here. you are looking at a graphic of dan loeb and i bet you have an interesting opinion of this art can el. i think it is fair it say, somewhat unflattering picture of bill ackman. >> i think it depend on how you look at it. bill ackman will be a hundred percent behind ron johnson until the moment the press release comes out saying he is fired and replaced him with someone else. >> kind of like behind andrew mason. >> and what comes out in the vanity fair article? the guy has balls of steel and the guy is gambling huge and two huge bets are going against him very publicly. >> two lines, bill ackman has never been a frayed to bet the farm that he is right. he has an uncanny way of making bold brash announcement and for pissing people off. >> you have been in the thick of this because you moderated the fight between him and icahn, among other things.
>> he used the media, social media, television, conferences, four-hour presentation to draw attention to his ideas. therefore he is treated like a pinata when he is wrong or showes a moment of weakness. that article had very strong language against him and very favorable language for dan loeb. dan loeb who is long herbalife, though he may change his position even where you were in mid february -- >> i think that's accurate. >> so dan loeb may benefit from the position where he is a serious athlete and he has done a triathlon and ironman. here is bill ackman struggling for air. >> the crux of at least the early part of the article is the bike trip, loeb and ackman and ackman hasn't been on a bike in a long time but he gets up there -- >> well also a try athlete -- >> but it is like they are building loeb up and ackman is this straw man everybody is making fun of.
i think that's the mentality of the hedge fund right know. >> shocking, a henl fund billionaire is arrogant, filled with ego, overconfident and takes big bets. that describes pretty much everyone -- >> right. >> he had some spectacular wins too. >> but he had huge failures too. they go down the list. it is easy to pick the target. target, borders, j c.j jcp, gol. >> it is beautiful to see these guys taking the opposite side of each other. oh, those evil hedge funds. we don't know what they are doing. it is faceless. now one directly against the other. it is wonderful to watch and i hope educational to people. we have two smart people taking the opposite side of the trade. >> i think this is cultural transformation going on in the hedge fund world. behind the scenes. let the strategy or hedge fund itself speak for itself. don't be bill ackman.
don't be carl icahn. i think there are more similarities between the two that differences. >> one thing that is clear is that the hedge fund business has neve more public than it is right now in terms of these guys being out there, talking about their positions. willing to fight with otheres who are on the other side. in a very public way. henry said it best before the show. lead, follow, or just get out of the way. hey congress, that's the question for you right now. we are going to have a representative from california. doesn't matter if he is democrat or republican as far as we're concerned. today, he represents congress. his answers, there he is, are coming up next. but before the break, let's back and check out the dow. big swing to the upside as dow marchs ever closer to its all time closing high, 14,164. the number to watch. we'll be back.
welcome back. twitter sphere lighting pup. hey, seema. >> hey, scott. i'm at the social media desk. seems like americans are so bored with the word sequester that they are tweeting movie lines that sum up how they feel about the sequester 0r poke fun at the topic. here are a couple of our favorites. dawn saying, borrowing a line
from apollo 13, tweeting, houston, we have a sequester. and tim tweeting, you want the truth? you can't handle the truth. and john, dogs and cats living together. mass hysteria. with the covers of each movie used in the tweets. bottom line, people are bored and they want it move on from the sequester. >> yes, they certainly do. seema, thanks so much. one tough week for congress as two senate bills to avert massive spending cuts fail along party lines. john boehner and other congressional leaders meeting with the president at the white house earlier today to try to reach a deal before the cuts kick in with a washington crisis seemingly every few months now. has congress become irrelevant? democrat is a first term congressman from california joining us now. congressman, nice to see you, welcome. >> scott, i'm glad to be on. thank you. >> certainly the stock market
would vote that you guys are irrelevant. you are marching to new 45highs and you can't make a deal. >> we were all elected to try to work together and we are try doing that as a freshman class. if leadership could come together and dot same thing, i think we've got something. >> so we talked about a irrelevant before. to americans, our government is in fact in the way. lee iacocca had the saying, lead, follow or get out of the way. you guys are in the way. there's a new crisis every month or two and you are now representing us, america. not some little constituency that voted for you. so given that, why is it so hard to compromise? why does america have to deal with this every two months? >> you know what, i think that things at the leadership level have gotten real partisan. at grass roots levels and members -- you will see this orange pin i'm wearing called
problem solvers. we got elected to solve problems and work together. there is 23 of us dem krts and 17 republicans. we want it fix problems and do the work of the country. and that is what we are elected to do, support the country and move forward. >> why doesn't that happen? >> i was elected to solve problems and we've got to move past this. i think it is politics getting in the way. >> well, no kidding. why can't you guys just do it, right? are you willing to deal with entitlements. the president says he is, are you? >> a couple weeks ago, we supported the amendment, which only 75 of us voted for, which is taking simpson-bowles as a starting point. that puts everything on the table. it is big enough and long enough. only 71 members in congress had courage it actually go out there and say, okay, let's use that as a starting point. >> and few you are of those are actually in washington right now. i think we have a graphic of the actual o congressional calendar
for this year. i think many people would be surprise node of the normal business days only about 50% of those in any given year, you guys are actually in session. we thank you for being in washington, but why hasn't anyone said, no one leaves until this is done? >> i'm all in favor of that. i said that on the house floor. what they should do is lock us in a room until they get it done. that was my quote on the floor this week. >> when john boehner clearly walked away and used colorful language about how people needed to get moving. in a way the most honest thing he had done in a while thp there wasn't much compromise coming out of that caucus certainly and to just say we're throwing our hands up in the air was about the most straight forward thing i've seen. would you agree. >> yeah. if he is speaking for his caucus, i don't know that he has control of his caucus. the problem is, this is bad for the confidence of america. it makes us look bad to the rest of the world.
you're correct, markets are recovering. housing is coming back. and yet, you know, this dysfunction, this uncertainty gets in the way. >> congressman -- excuse me, real quick. if we were down 400 point today, would we be getting a deal? >> you know what, that isn't the way we should be coming to the table. >> that's the sad reality of how washington has worked lately. >> but that's the problem, isn't it? that's what frustrates the american public. that's why so many of us got elected in the last election cycle. they want to see us work together and come up with a long term plan and again, that's why -- we think the president made a mistake by not taking simpson-bowles recommendations. there are things in there that i don't like and i would approach differently. but at least it is big enough to start addressing the debt and deficit. long enough to get us back on trajectory so we don't leave our kids and grand kids with a mountain of debt. let's take that as a starting
point if we can't agree on anything. >> so if you are supposed to working together, then why have many ef them gone home? >> lock us in the room and tell us to get it done. i ran on no budget, no pay. we passed no budget, no pay here in this kcongress. why should we get paid if we can't pass a budget. >> thank you for joining us? >> thank you. glad to be on. >> scott, check out open table making a new 52-week high. provider of on-line reservations, did announce the introduction after facebook app that lets people share their favorite restaurant and see where your facebook friends have dined out. open table up some 19% this year. scott, back to you. >> josh, thank you so much. goldman sachs, swanky dinner is back. our guys have a lot to say about it, next. revolutionizing an industry can be a tough act to follow,
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runs. this this is the cco-founder of paypal. the pink's average daily value at risk last year is $86 million down 24 frers 2011. and the lowest level since 2005. shares are up 45% for a seven-year period. goldman sachs is taking risk with a public profile. new york magazine reports for the first time since 2006, goldman partner dinner is back and in early february, the bank held the black tie gala in manhattan for top 450 executives blues guestes with a gourmet dinner followed by a jazz performance. is this type of risk the bank should be taking? kate, to the actual risk first, your take. >> scott, i wouldn't put too much stock into the bar numberes. it is an interesting metric and certainly something that any risk manager or overall manager
would look at. it is just one of many metrics a bank looks at where they are exposed. and the size definitely matters. what kind of positions they have on their books matter. it is quite possible that during period they were on the side lines along with other investors. they didn't see investments that they like. not necessarily that they add concerted decision to have risks. i do think the last years are years of transition for goldman sachs which is adapting to dodd-frank. you have been reporting on vulker -- >> and it sold out of trading position. so i think their actual positions, there are a lot fewer of them than there were in 200 as well. >> they are risk taking businesses from the investing and lending from the client flow businesses. they are just dialling back in general and risk with it. but at the same time, i think there are many reasons why you may see vargo down besides
strategic decision. >> henry, the extravagant dinner, 450 guests, wine, dine. what's the optics? does it matter? >> i haven't been to pier 39. is that it. >> 36. >> 36. we aren't talking to some castle in the middle of france. they are allowed to have a party. they are allowed to have quiet years. goldman sachs is in the business of winning and making money and they are great at that. >> they haven't always been great at the o 079ics of how they do it. >> this is like a glorified warehouse. they put lipstick on this pig. no doubt it was nice inside but it is a warehouse on the lower side of manhattan. we just showed a picture if you missed it. it looks unspectacular at best. >> i can't get too excited about this either. goldman sachs is funny. you go and they are wearing ironman tie mex watches. now they may have tons of money in real estate but they are not
terribly showy compared to their peers? >> well, somebody is probably getting in a little bit of a huff. >> or back at their home. >> yes. what is the street saying, kayla? >> quick to go down, slower to come back up, but not far from the ultra high levels, scott. obviously something is working. we will tell you more about that. >> i like forward to that. that next. impressive? a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ if you don't have something important to say? ♪
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let's get some trading action now. bob pisani is on the floor of the new york stock exchange. bob? >> we seem desperate to get to the highs. 14,164. that's the magic number. we need to close above that to hit the historic high. that is back on october 9, 2007. sectors moving, nice move in financials today. next week we get the bank stress test results. this is the yearly one. after that we will find out if they can raise dividends. wells fargo has a descent dividend. there is some hope out there, but maybe regions of sun trust may help the dividend. that's helps the stocks sequester. what see quester? healthcare stocks are doing well today.
here are hospitals that might be effected. humana and hmo, most major stocks people are concerned with, not getting lit that hard. finally on the sebtors airlines and builders are strong here o scott and steel, coal and oil service to the down side. back to you. >> bob pi ssani, thanks to you. >> engineering and construction company getting hammered today. fourth quarter earnings missed. company talking about mild economic global recovery. stock down about 20% in the past year. scott, back to you. >> josh lipton, gold prices closing right now. that's why we go to jackie deangelis, jackie? >> gold closing down more than 5 bucks in the section today. a rough run for the precious metal. we have seen five consecutive losing months. that's the most in 16 years. we have a little buying this morning but couldn't maintain the momentum. rest of the complex lower as
well. particularly copper prices losing weak data out of europe and china. we do want it point out that silver is a the only thing that caught a bid after bid today. rick? >> if you look at a dave ten, yes, down three on the day. but we are down 11 basis point on the week. open up the chart on the year to date. closing last year to 176 yield. here is what is interesting. look at the same chart for a boom. even more of a correction going and what is noteworthy there is they were down 16 basis point on the week. closing around 141 yield. if we look at british pound, most looked at chart of the day on the intraday you can see we close at 15160. not only yesterday but last friday. opening the chart up back it june of 2010, we haven't settled under 150 since june of 2010. scott? all years. >> a level we will certainly watch. rick santelli, thanks to you. a roller coaster week for
the markets, as you know. today with the dow at one point do down 110 points. we bring back in our cast here. kate, data next week is big. jobs report next week is big. europe will be in the headlines, you know it is. banks stress tests are coming. there is a lot of head wind. >> i think in terms of sequestration, and broader congressional dysfunction for longer, the europe at three, four, five-year story and showing no signs of kwek resolution. people are used to congress not doing its job and continue to melt in europe and they are just trading ahead. if you look at the fact that equities have continued to rally despite all this and a lot of people are saying, a lot of professional investors, a once in a lifetime opportunity in terms of equities, get the heck out, i think people are cycling through commodities.
and in doing your homework on spots and picking your spots and getting your boat floated as well by the broad-base rally. >> cash yields nothing. bonds are incredibly dangerous and stocks at long bull market here. profit margins are at an all-time high every other time that happened. they have violently corrected the mean. they don't float down over 20 years. they collapse. as they do, you will crash. >> with the record in october 2007 we went from 14,164 to 6,000 in a matter of 15 months. not to say that will happen this time but i think people understand sequestration is a man-made disaster. nothing to preclude disasters from being made. >> look at america. two great wealth creation machinees. the stock market which helps the affluent and wealthy and the housing market which helps the rest of america. the great thing about this rally is it is being accompanied and driven in part, which is huge. >> crazy market to keep up with
over the six trading days. if you count last friday, two worst back to back trading days, followed by the worst back to back. that shows you volatility. >> groupon ceo andrew mason is fired. you won't believe his severance package though. and robert is all over it. robert? >> if you think the letter is weird, look at the severance. not even enough to buy the proverbial gold watch. but we won't feel sorry for him. >> we'll have that next.
>> he only gets salary for six months. $756.72, a year. so his severance, $378.36. i guess we call that a led rather than golden parachute. just over a year ago, he was a billion air. at least on paper. after the ipo november 2011 shares were worth more than $1.3 billion. he of course was celebrated as the latest tech billionaire. then came the long and painful slide. today his shares are worth around $200 million. 85% drop in wealth. he lost more than $1 billion in paper wealth. we shouldn't feel sorry for him. he cashed out for $28 million in stocks before the ipo but this should give him help sort of more time playing battle toads which he mentioned in his retirement letter. >> kayla, he says straight up. i'm accountable. in the same line of i want to spend more time with my family,
ju kidding. i was fired today. if you don't know why, you haven't been paying attention. >> you could see this was in the works. could you see it coming from a mile away. julia boorstin sat down with mason in september. this is a strategy they thought was too far afield from a company that couldn't get its act together even when it did one thing, which was do daily deals. he said the company was doing well inspite of his leadership. take a listen. >> you stayed out of the shot light lately. what about your leadership style is that s that part of your problem with wall street? >> it is hard it say. i think wall street can rest assured, i have built a wonderful executive team around me of ex members of amazon, of google, of sales force, cisco. really a world class management team. and i think we all come together to be the right mix for groupon. >> so no doubt that's why the stock is up on this announcement but maybe not up as much as a lot may have thought.
25% loss after that earnings. disaster. >> right. >> now hasn't come up by that much. they just don't know where they are going. >> we spent a lot of time quoting from the letter. no doubt andrew mason's good-bye letter was one of the more eccentric ones we have ever seen. let's go to seema for the twitter reaction. >> in the letter, mason says he is looking for a good fat camp to lose his groupon 40. twitter had fun with this one. straight to the tweets. joe says, if mason needs to look far good fat camp, he clearly doesn't subscribe to groupon. 25% of the offers are fitness or oriented. >> cue the reality show producers. >> and andrew mason tweets, okay, i'm good on the fat camp recommendations. you may stop. thank you. >> seema, that wasn't you, kate with that tweet, wasn't it in.
>> no, that was another kate. i looked at that myself. more mason. he is not getting paid well. i love that story, robert. but you have to look at leadership from someone like him. i think investors say enough with the goof ball, silicon valley ceos. if you look at stocks. groupon being the worst, down 75% since the ipo. but even zynga or facebook, and i'm not putting zuckerberg in the same category as mason. >> early on, especially after ipo failure, there are same questions asked about zuckerberg, whether there needed to be an adult in the room with him. >> but you are seeing massive double-digit drops. and henry, what do you make of it? there is a demand for a more mature membership -- >> give him huge credit. if this were any normal american ceo, they would walk away with $100 million severance just to walk out the door.
>> you know that's right. >> in addition to the stock. wouldn't be their fault. they would never be on twitter. >> maybe this was overlooked though. >> it would be spending more time -- preserving the face. it is incredibly refeshing. in my opinion, groupon grew faster than any company in history. they made the mistake of buying this bag of horrible international properties from a group in germany that built them quickly and they fell apart. it is an incredibly challenging situation. i think any ceo would have been fired. i don't think anybody would colorado have taken them through this period. amazon went through this. yahoo! went through this. so many hyper growth companies went through the period. and unless you own the whole company like jeff bazos, you often get fired. >> easy to ridicule. at the end of the day, a man who started a business, made himself tremendously rich. not as rich as he was on pap ear few day guys, but you have to give him props. >> he is only 32.
we will see what he does next. >> yeah, a lot of these guys have next acts. >> several more acts. >> the economy has the need to get up to speed. how do you drive. >> car shopping. tweet me with suggestions. >> are you really car shopping? >> i am. i have a deadline of the end of the month. >> we will let kayla know what she should buy. we will let you know at the end of the break. bad week to be a ceo.
we're not just talking about groupon's andrew mason. we are talking about others as well. we ask the question, what on earth is going on in the sea sweep and we talk to the ceo of a start-up wp k. . they still want it make their mark in 100 years time from now. and if you want it save the world, work on wall street. really? did you hear that right? ? we have a guest on the show who makes the case. all those things coming up at the top of the hour. scotty, back over to you. >> mandy, thanks so much. now to josh lipton with a market flash. >> surging higher today, better than expected quarterly sales. cloud-based services keep selling well. street reacting, at least six firms raising price targets. stock trading at an all-time high. back to you. >> thank you very much. two key drivers of the american economy. housing and the auto sector. extremely low home inventory.
on the auto front, phil lebeau, reporting 15 million vehicles after consumer reports when released its top models and brands. not a single american car made the top ten. wow! kayla? ? >> maybe i should get a nonu.s. car. kate thinks i should get a coup. something small. >> something more fun to drive. you don't have kids. baggage is an issue. you can park on the street. >> are you saying i have a lot of baggage? >> well, when you travel, you know. i was raised by my parents it buy u.s., that was a big enl ethic in my household. but we have saab. >> what happened? >> i guess the quality wasn't there. price point wasn't there. so we went another route. >> i thought housing recovered. i thought we bottomed and we are
on the up and up. >> if you look at the prices from the crisis, still down 2%. if the have the memory of what your home was work at the peak, you can't come to grips of selling for ma much lower. i think that's why -- >> and you read headlines, saying, prices are going up. >> but it isn't a relative increase where they were. >> what about the beat cover? >> the other thing that distorts the market is it is wealthy investors and institutional investors buying property. that distorts the market. you get more of a buy and hold mentality and not real buyers. real families moving into own homes or selling homes. i think that's going to lock up a lot of inventory and the shadow inventory is just not appearing? >> say this ten times in a row. banker bonus backlash and are billionaires making their money illegally?
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a graphic that gives you the essential imimpact, this wice t size of wall street. this cou could impact more people. this is lighter regulation and perhaps better pay. a lot of u.s. companies sent folks over there because it is such a growing market and european and global hub but also because of those elements. some people in switzerland found it was boring and more cumbersome to travel around and went back it london. once again, there is a threat to the city of lon don't and its ability to retain talent. it could be a big deal. >> i want it read it quote from the london mayor who said, this is possible -- >> always outspoken mayor boris -- >> i wish he was our mayor. >> so he says since they tried to fix the price of groceries
across the roam man empire -- a we all remember that, right? look, list city is crucial to london and british economy. if you put this in, it will kill the goose that laid the golden egg and. >> and this is set by the european union but it will also cost the states higher tex revenue. bonuses are taxed at 50% or higher. that's a whole lot of tax revenue lost for country currently under austerity plans. just to play devil's advocate -- >> this whole thing is so ridiculous. first of all, so -- >> okay were boris. >> no, his comment is perfectly valid. so just raise the salaries. do it that way. >> a worse impact than giving up bonuses -- >> gives them flexibility -- >> here is the problem.
there is a popular outrage by high fat cat bonuses. something needs to be done about that. >> bankers make a preposterous amount of money. because we allow banks to take so much risk. you want a bend on that? give them capital. you know who else makes money? nonprofit hospitals. millions of dollars to do things we think are good while they are set sitting there cashing in. >> so are you fan of the risk element -- >> we should definitely raise -- >> you can talk bazel over a martini or whatever your choice is. but we want to stay on topic of rich people. why are there so many billionaires in the world? maybe because so many make their money illegally? robert? >> now in the business of counting billion irs. we have bloomberg, foeshes. now there are 1453 billionaires
in the world or maybe 4,000. it says that for every one billionaire they count, there are two others that make their money illegally in the world. this just shows me that counting billionaires is just a guessing game. especially given the gray economy for billionaires. >> finally in the news this week, cheryl sandburg and marissa mayer. sandburg ear new book is a manifesto for working mothers and family time. mayer, now completely, is telecommuting good or bad? >> i'm torn. for one thing, in terms of yahoo! they employed about 14,000 people. i think only 500 work at home. this is a symbolic gesture than a pack for their bulk of their head count. i think there is a lot of abuse when it comes to working at home. i think people mess around a lot and do other things. at the same time, there can be lots of time sucked at the office as well as commute. >> in my hometown of atlanta,
ibm sold its corporate headquarters and said, you have to work at home. if you need an office, good to dallas or charlotte. obviously, there is a split line here. >> hoops, diplomacy or silliness? dennis rodman hanging out with north crkorean leader kim jong-? yeah, exactly. ary. it feels like it can escape gravity. ♪ the 2013 c-class coupe. ♪ starting at $37,800. ♪ but we can still help you see your big picture. with the fidelity guided portfolio summary,
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