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tv   Fast Money Halftime Report  CNBC  December 11, 2013 12:00pm-1:01pm EST

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bunk. >> i think he would like to sort of turn his image around by suggesting he had something to do with it, and as far as irving and i know, and everyone on our team, he's done nothing to assist us in these efforts. >> this fifth anniversary, madoff has gone silent. we haven't heard from him since october. but he's got some time. >> incredible story, scott. thanks for that. back to hq and checking in with wapner and the "halftime." >> all right, guys, thanks so much. here's what we're following today. chairman of the board. u.s. olympian shaun white on what it will take to win gold again in sochi as he faces his biggest challenge yet. gold rules. the man who says the precious metal is still in a bull market. he'll tell you why and where it goes from here. but we do begin with the great performance, chase, and why your best bet may be to stick with what's working, whether it's the airlines, the autos, and they continue to lead the markets. just like they've done all year
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long. are they still the best place for your money in the race to the finish and beyond? let's play the action. pete, to you, with that question. >> well, certainly, i think some of the names do have plenty of upside, scott. i don't think it's just to that area or those specific names. i still think there are areas, technology, for instance. i still love the tech play. i know we have a pullback today. we're seeing some of the pullback in some of the big-name chips that we've been talking about, very bullish on. micron, intel. qualcomm is actually fighting the tape very nicely. when you look across chips, energy, i still think those are areas that certainly can provide upside, not just into the end of the year, but into the first part of next year. >> simon, if you look at the top s&p industries through the first three quarters of the year, okay? you've got biotechs, auto components, as i mentioned, airlines, and internet retail. the likes of amazon. quarter-to-date, they've all done well. biotechs have dropped off a little bit. are those the areas, the areas within the s&p 500, we need to be focused on?
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>> yeah, a big part of this is the hedge funds, people chasing performance. what's been working for the first three quarters is going to work into the last quarter. so i think you will continue people piling into the names of that work, like the yelp, pandoras, amazons that continue to do well. and those are the type of names to hold onto. the ones that have been laggard, stay away from. that's where the beta has been. i think the next 12 days or so, they'll continue to go higher. >> and beyond. >> and beyond. >> dr. j, biotechs, first three quarters, up 6%. no slouch by any stretch of the imagination. some of the components within the biotech industry that have done well, as the sector has done well, we know about celgene and gilead and biogen and amgen, and lexion. which names will lead? >> i like gilead a lot. i was talking to a by
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bio-pharma, and he believes the hep-c market is laying out there for ldig to take advantage of. they got positive news out of that recently. i think that continues to work for them, judge. and i wouldn't bet against carl icahn or anybody else in biogenetic, bgib, and i know daummy made a great pick. >> how about, mike murphy, internet retail up 41% year to date, and the gains have really rolled into the fourth quarterment you have internet retail up 21%, the names within the space. we know amazon. expedia, netflix, the performance speaks for itself, best performing s&p stock year-to-date, tripadvisor. >> the whole space works, so if you're in amazon, trading near $400, there's nothing out there telling you to sell it, take some off the table. that continues to work. however, if you're looking to get a new position, i would not be advising anyone to go out
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there and say, hey, i missed amazon, going from 250 to 400, i have to jump in on it now. there are a lot of names where you'll get an opportunity on 5% to 10% pullbacks to jump in. although the entire space will work, i would not run out and be buying these things at their 52-week highs or near their 52-week highs, especially when the volume in this market has really come in quite a bit lately. >> what do we think about auto components? general motors of the world, ford, toyota, everybody else, getting all sorts of play. but if you look at the auto parts components, up 43% through the first three quarters of the year, by the way, up another 11% in this quarter. we're talking the warners, the delphis, johnson controls, is that the place to be into 2014? >> it's definitely a place to be. i would much rather be in a john sewn controls than a ford or gm for that matter the i've been long ford for a good part of the year. now, gm is a better place to be than ford. i would rather be in jci than both of them. johnson controls has a strong
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setup into 2014. i think you'll see a lot of margin expansion. a lot of pent-up demand. and i think that's one of the top sectors to be in for the first half of next year. >> scott, the one name, goodyear tire. that continues to work, because it's part of the whole story you're talking about in the autos. >> from trades that have worked to one that certainly has not, and that's gold. it will go down as the year's worst. but our next guest is sticking by the much-maligned metal. rick rule is chairman of sprot u.s. holdings, and live in san diego. welcome back. good to have you on. >> thank you very much for having me again. >> worst trade of the year. why are you standing by your man? >> i think that one's pretty simple. i think the fundamentals are pretty good. if you're a momentum trader, you don't want to be anywhere near it. a fundamental investor, the fact it's down, the utility stays good, makes it a better buy than it's ever been. >> we talk a lot yesterday about the notion of the end of the crisis, or the crisis trade, is now over. if you look at some of the
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developments that have taken place, stock market, we're at record high, the d.c. dysfunction, at least for the moment, appears to have subsided. we have a budget deal now. the government is out of general motors. europe has stabilized. china hasn't completely fallen out of bed. where's the fear trade? what's going to drive gold going forward? >> i don't think we have a fear trade, because i think there's a lot of misplaced confidence in a lot of factors. the idea that washington is suddenly functional, i think is fictional. the second thing is, i don't think we're any closer to solving the structural issues with regard to the u.s. or the western economies than we've ever been. i think the big thinkers of the world, the yeltsins, the obamas, the yellens, the bernankes, have convinced us that liquidity is a substitute for solvency, but i don't suspect it is. if you had $1 million mortgage, $60,000 income, if you had $10,000 in your pocket, you'd be liquid, okay today, but you wouldn't be solvent. the confidence in the economy is a function of the fact that the
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liquidity in the economy has driven markets, but rekwidty is not -- repeat not -- a substitute for solvency. >> mr. rule, a quick question regarding tax loss selling. when you have a commodity like this one that's slid, and we're talking about gold, of course, right now, i know you're in other precious metals as well, but as far as gold, wouldn't you think that over the next week to ten days you'll see a zenith or capitulation trade where people dump this one to match it up against gains they've taken elsewhere in the market? >> absolutely. i think what the market needs to turn around this capitulation selling. the bottom of the last four bear markets has been marked by absolute capitulation selling. i think that's something we need. i think past is prolog. if you look at the secular -- the cyclical decline, pardon me, we saw in 1975, in that great 1970 cyclical bull market in gold, is pretty much analogous to what we're experiencing now. and your comments are spot on as a trader. i think you need to see a
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capitulation washout in gold before it and the rest of the commodity sector turns. >> so you're saying, then, you do not see gold rallying in 2014, at least in the first half of the year? >> that isn't what i said at all. i said that in response to t the -- to the gentleman's suggestion you need to see tax-loss selling and capitulation selling, the answer to that is yes. i think the gold market after that will be event-driven. it will be confidence-driven. the confidence that i see in things like the u.s. 10-year treasury, which jim grant described as return-free risk, is the type of thing that will kick the gold market off in 2014 and 2015. >> your top commodity play into next year, let's say beyond gold, is what? >> certainly in the precious metals space, it would be platinum and palladium, which have all of the precious metal at beaut attributes, but the su demand crunch. and i'm atracked to the uranium
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space, where the price of the metal is half of what to produce, and my pick of the decade is water, very underappreciated resource. >> great to have you on, rick, thank you so much for sharing your views with us today. >> thank you for the opportunity. >> rick rule from sprott, u.s. holdings. anything you want to say? >> it's interesting, the second gentlemen we've had on that likes water. we had the chap on yesterday, likes penta, basically water consumption is doubling in china, it's a good theme going into 2014. >> guys, what about pete, the palladium, platinum play? >> those might have some interest. but if you're going directly towards gold, which everybody loves to talk about, i don't see that, judge. i look at gold right now, and it's been in a storm that should have atracked tracted folks toward gold, and it didn't, and going into 2014, as the economy improves and people gain more confidence, i don't see gold being a factor going to the upside. >> all right. champion snowboarder sean white is gearing up to qualify for a new olympic event that could feel familiar to investors.
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riders navigate obstacles like boxes while tearing down a mountain. the flying tomato himself joins us live later on "the half," and blackstone is set to price the largest hotel ipo today with hilton worldwide, which we should be checking into the stock. and visa and mastercard getting a big boost today. >> you're not pretending anymore. you're plastic. cold, shiny, hard plastic. >> all right. we have a "mean girls" worthy battle. visa versus mastercard. that and more straight ahead. [ bagpipes and drums playing over ] [ music transitions to rock ] make it happen with the all-new fidelity active trader pro.
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welcome back. time now for the "trader blitz." four trades on four stocks making news. first up is groupon, shares upgraded to outperform from market perform. saying they're taking more share in local commerce. pete, talk to me about a stock up 2% today. >> stlabsolutely, scott. a note out from mark devin, from morgan stanley, who has a theme on the stock. he has talked about many of the different names in this sort of a category, and right on pandora. i think he's right on groupon, as well. yesterday, over 60,000 options traded, 57,000 calls going for the december, 10s and 11s calls, and a huge growth. a lot coming from the mobile side. he said 15 by 2015, and i think
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he's right. i'm in the options now. >> costco reporting earnings below estimates, hurt by weaker foreign currencies. murph, the stock is flat on the day, working its way back that way. >> absolutely. the earnings kind of came in inline like we expected, but like we discussed yesterday, costco was fully priced up in the mid-120s, so here around 120, i wouldn't be a buyer of the stock. the stock was fine. but still, not enough to support a stock up in the mid-120s, a buyer in the low 100s. >> big runs this year for rental car stocks, avis and hertz, up 86% and 52% respectively. simon baker, what do you do with these names? most of the money off the table? >> you keep on riding these bad boys. they continue to go -- it's very similar to what's going on in the airline industry. completely got pricing player and three major players. i like hertz, avis, i like the rental business, avis has the geography speaking, they've done
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wet, and they had the fleet integration, so i think hold onto the group, they're going higher in 2014. >> home depot hosting its annual conference today. they're providing 2014 sales outlook growth of 5% and slightly above the street estimates. dr. j, the stock is up nearly 1%. >> they set aggressive goals for themselves, judge, especially since they're going to meet those goals a year earlier. than expected. they're also buying back an awful lot of stock. investors do have a lot to like with home depot. the performance has been phenomenal. we talked about it all year. lowe's, as well. i think home depot continues to work higher and the fact that they're going to make this profit and expand that a year earlier than expected, well, that's very -- that's like icing on the cake. >> all right. well, hilton worldwide expecting to price today after the bell, creating the largest ever ipo for a hotel company. our own simon hobbs is joining us for more as he covers that beat. simon, good to see you from the new york stock exchange. >> thank you, sir. thank you, sir. yeah, david faber is reporting
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they'll price at $20 a share, so that's toward the top of the range. it would value the equity at $22.5 billion. this is a fascinating story, scott, as you know, in so many ways, not least the fact that there are 24 banks and brokerages involved in the process. that is, in part, payback, fee payback for the fact they kept hilton running. don't forget that block stone took it private at the height of the market, paid investors over 30% premium to take it private. and subsequently to that, of course, the whole industry crashed in 2008. you know, the hotels were having to shift inventory on the online travel agencies at bargain prices. it was a disaster for the whole industry during that period. and other players, of course, didn't make it through in the same way as hilton has. hilton has done extremely well. one of the reasons they did so well is because the banks kept lending and they were of the view they would make more money by keeping hilton going, letting it do what ceo had to do, expanding internationally rather
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than slamming it into bankruptcy. >> and the strategy, simon, is, as i learned from doing the marriott documentary for us, is really on that same model, right? it's the management model, owning very few hotel, cutting down your risk, upping your margins and things like that. >> well, you say that, because it's interesting, because hilton isn't quite like that, as things stand at the moment. the asset-like model is uniformly what marriott pioneered, as you mentioned. hilton is still making a quarter of its revenue, if not a third, through hotels it owns or leases. a lot of the hotels, and it will say probably tomorrow when we interview them tomorrow, hopefully, it will say look, longer term we can have asset disposals, return cash to shareholders, but for the moment, the notably eight big juggernauts are tied as collateral on the loans that they have. so that is a process that may happen further down the line. i just want to show you, if i may, a chart, because the timing is everything here, scott. i want to show you a chart of where we are in the cycle. these are consumer cyclicals.
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it is a cyclical business. and of that, you have to wonder why blackstone is coming to the market now. what mcquarry is saying, you might have, they're suggesting, maybe three more years, possibly seven years of rising revenue per available room, and that's why blackstone ipo's now. it doesn't sell out. it keeps the 76% stake tomorrow, but it will have to offload in ways and it needs that cycle to stay up there for several years in order to do that, and you'll see a lot of other private equity players coming to the market. the big question is, four seasons and bill gates, of course, back to you. >> simon, good stuff. thank you so much. >> thank you. >> simon hobbs from the new york stock exchange. let's trade this, whether it's h.o.t., marriott -- >> h.o.t. is my favorite. >> are you guys going to be buyers off it? >> yes, yes, absolutely. >> yes. >> i'm with john, h.o.t. is my favorite. you can see it reflected in the stock price, as well, scott. i want in on this ipo if i can get in, i'm in. if i have to buy in the post
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market, i will. >> another name is windham worldwide. the rev per, the revenue per available room, was up. even though the stock has a great run, i think it has more upside. >> yeah, the p.m. now, as you speak, the road show, simon has a meeting with them, but i think definitely, out of other operators, it's well priced and going higher, and what simon was saying, in terms of the cycli l cyclicality of it, it's going higher. >> and given a big play on interest rates, scott, anybody that has this much real estate is, i think this is a very possible big move into 2014, because all of the refinancing that's gone on, and any of the bonds they want to issue, because i don't expect rates to run away from them, and they've done almost all of the refi already. >> from hilton hotels to the retail sector, our resident swami pete najarian noticed something that caused him to get bearish. >> what i want to say about
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hilton, several years ago, they got bought out, the july 4th weekend. so it shows you how long it's been go okayen. sears holding, not a positive. they're coming after the january 39 puts, over 20,000 have traded, big block, the biggest, 1.55, but a name where lambert, the hedge fund is struggling, sears holding, unfortunately, continues this downward push, scott. somebody expects it to go even further. >> and we know lambert had those requests for their cash back, judge, the redemptions, and that could be part of what's driving this bet, that going forward it will see more pressure. >> we are at session lows right now, i want to point that out for certain, with materials and health care stocks leading lower. coming up, the flying tomato, shaun white joins us live from colorado where he is competing toer a spot in the olympics. to an extreme new event. first, our million-dollar home series is back, and the competition is moving to main street where the cnbc team is competing to find the best deals
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welcome back to the "halftime." shares of news leader are spiking the session highs in a down market, that's after it gave a strategic update at the ubs global media conference. the company executives say they are comfortable with the higher end of the fourth quarter earnings per share estimate of 63 to 67 cents per share. so, scott, those shares bucking the trend in this overall market. back over to you. >> a nice move there, dom. thank you so much. the popular " million dollar home" competition is back, and all day, we're showing you what a million bucks can buy on main street. so we sent seven cnbc reporters to seven very different real estate markets to check out a million-dollar home with a main street address. so here's how it works. two $1 million homes go head to head, only one moves forward, and to make it more interesting, we've asked the reporters not to reveal their locations.
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we'll do that after we go get a look. last round, mammoth manor beat out the colonial, and now it takes on the rocky residence, and touring the homes are diana olick and josh lipton. >> this greek revival mansion is a history buff's dream, built around 1850, it houses nearly two centuries of stories. sitting on 2.3 acres and facing main street, in addition to the manor house, you also get five outbuildings. >> this victorian sitting on 3,000-square-foot lot with beautiful mountain views, an his tore charmer built in 1881 and located in a sophisticated city boasting world-class skiing. >> of the 7,000 square feet, i wouldn't lie, the kitchen is your renovation, but with ample space and imagination, it's a chance to blend the old with the new using this original bread oven as your centerpiece.
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>> inside, the floor plan consists of 912 renovated square feet. the kichden is distinguished by crown moldings, recessed lighting, a painted wood ceiling and parquet floor. >> upstairs are 11 potential bedrooms perfect for a very large family or b&b, and this is where your stories start. up in the attic, they used to hide slaves traveling north on the underground railroad. >> there is one bedroom and one bathroom. the master bedroom features antique oakwood fors and snowy mountain views. >> the real selling point is the grand main level with its nearly 13-foot ceilings and stencils that match the stained glass. and should you get lost, ring for the service, all for the asking price of $960,000. >> the living room has a nine-foot ceiling and oversized windows. the house also offers flexible zoning, so it can be used as a
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residence, a business, or both. the asking price, $1.050 million. >> we know the mammoth manor is in delaware, and let's guess the destination of the rocky residence. >> idaho. >> steamboat springs, colorado. >> oh. >> vail. >> tahoe, california, nevada. >> i was going to say tahoe, too. >> wow. you're all so close, but so far. aspen. >> ah. >> aspen. we thought that was our giveaway, everybody is going to get that one right on the nose. >> surprised you can get a house for a million bucks in aspen. >> that was a trick question. >> dolly, thanks. >> we like tricks. >> we'll see you throughout the day. >> what do you think? which house do you like better? >> the greek revival much better. but i like the location in the rockies. >> you wouldn't fit in the other within. >> no, that's true. >> 900 square-foot house, right? that's over $1,000 a square foot. one bath. it means you have to wait in line. and it's on main street, which
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means that as a residence -- >> headache. >> -- yeah, a headache, noisy as anything, right? and as a commercial space, which it can be used as, there's no parking. so i'm not sure who the buyer is for this, and that's why it's on the market almost a year. >> yeah. >> oh, wow. >> unfortunately, for our new person, josh, we have a loser, and diana olick wins again, which everybody keeps writing me, it's rigged. it's not rigged. she picks great houses and presents really, really well. >> josh gets better trips. >> yeah. [ laughter ] >> all right. the " million dollar" mammoth manor wins round three. tweet using # milliondollarhome, and later, dolly will crane the top main street home near the closing bell. >> nothing is rigged. nothing is rigged. let's talk crude oil. it is sliding after hitting the highest level since october. for more, let's go to "futures now" host jackie deangelis. >> and here's what's strange
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about crude today. the 1030 inventory report showed a bigger reduction, which should be bullish for crude, but oil fell a bit further on this news. anthony, you're at the nymx. what's weighing crude down today? >> jackie, that's why we're here to explain these things. number one, that 10 million draw is a reflection of tax implications. by that, i mean if you're a refiner or storage facility, you will be taxed on what you have in storage at the end of the year. so they move it around. number two is that the houston ship channel was closed last week, so now that's open, so oil is moving from curbing back down to houston, and refiners now are done with the turnaround phase, so they're taking the crude oil and making it into product, and that's why you saw the build in product. but i think crude oil is a sell. >> thank you for breaking it down. rich, want to get your point of view. what is the chart telling you about crude's next move? >> jackie, today's close paraunt m -- paramount. above $99 a barrel, we run up a
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little bit, but resistance. i would use those points to sell. certainly the bears want to see a close below the trend line, which i gave you on the chart. and the 96.73, 200-day moving average, using this 98 1/2 area to sell up to 100 bucks, i'm be bearish. >> for everything moving, check out our site, futuresnow.cnbc.kochl. >> jackie, thank you. is tt trade of the future? >> plastics. >> all right. maybe not the future, but at least today, visa and mastercard, both up today with mastercard hitting an all-time high. the traders debate which one is a better buy, next. in an industry with a 30% first-year failure rate, my next guest just opened their 13th restaurant. the co-owners of restaurant group alta marea are here to
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welcome back. we're looking at the biggest one-day drop in the market since november 7th. for each of the major averages, which now or near session lows. the weakness in materials, health care, and industrials. so certainly more red on the board than green on this day. well, it is the battle now for your plastic. mastercard versus visa. mastercard touching an all-time high after announcing a 10-for-1 stock split. is the bargain in visa? let's debate it. doc, make your visa case first. >> all right. they have 38% of the market, judge. so i like visa. i don't dislike mastercard, but i like visa because of the strong market share, and the fact that in emerging markets i think their brand is bigger globally. emerging markets, they charge
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about 85 -- or they pay about 85% by cash. united states, we use about 50% cash versus credit. you start converting those emerging markets folks into plastic users, judge, that's huge, as well as the prepaid market, which they say is going to go over $2 trillion in 2018. i think those are all reasons to own visa. >> okay. and i don't disagree with that. now, visa's a great company. mastercard, i believe, is a better trade. where will you allocate money today? the news that came out of mastercard last night makes it the better place to be. the 10-for-1 stock split, raising the dividend by 83%, and most importantly, the differentiating factor, they have announced they're willing to buy back 4.6% of the float. that to me is going to be the reason why mastercard moves quite a bit better. mastercard and visa have moved inline since the ipo. the reason is, when it goes from 800 down to 80, a lot of retail money coming into the stock, and i think it will outperform.
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>> we'll see. it will remain to be seen. i think the brand value of visa's brand is bigger than mastercard, but it'll play out over the next several weeks and months. >> and mastercard has catching up. visa has a larger portion of the market, but i think mastercard can take some of that as they expand into the other markets. >> pete, who made the more compelling argument? >> murph won't be happy with me, because he thinks i'm going with jon, and i many a. visa holds the debit market. that's a growth area. when you talk international, that's where they'll see the growth. how about this, murph? when visa announces a split, which at some point they will, we all know it will happen, what's going to happen to that stock? you're already getting the results from mastercard today. i think visa, those results actually give that more put. >> i'll be selling my mastercard at 100 to buy visa on that news. >> that will be interesting. >> tell us who you think won. tweet us @cnbcfastmoney, use #v or #ma, and we'll give you the
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results at the end of the show. let's go to dominic. >> the mining equipment giant reporting earnings below street estimates and gave a downbeat forecast as it struggles to cut costs and deals with oversupply of kmod i commodities, so no jo joy, if you will, back over to you. >> all right, dom, thank you so much. well, from stocks to steaks and spaghetti, that's where the next two guests make their livings. michael white is one of this country's most celebrated chefs and also co-owner of altamarea, and ahmass fact haand what's one latest ones you open? >> restaurant marine, madison avenue. >> another one in new york, which will expand your -- >> to number seven in new york city. >> so new york is still
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vibrant -- a vibrant and growing market? >> oh, things are well now. i mean, it definitely, you know, the waters we went through in '09 and '10 and '11, we are obviously -- everybody is reaping the rewards of how business is going now. >> but, also, i should tell you that our client base always enjoy the kind of food michael prepares, even in the tough markets. i mean, i have bought an island or, you know, a new jet around holiday, but they still went to our restaurants during this tough period. >> you're the sole investor in the business, which seems to be unique to me in the way that these things generally operate. there are a bunch of different investors putting some money. it's all yours. why does that work for this group? >> it works well, because it gives us control and we can listen to the client, and move very quickly when there's an issue, which you can't do when multiple investors. normally, there are 20, 30 investors, and a lot of board meetings. we think we can control the outcome and the client wins.
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>> how do you guys weigh, you know, scale versus overextension of your solves? -- yourselves? you want to calfize on the brand, michael, you built. but at the same time you don't want to stretch yourself too thin. >> it's about our people. it's about the young people and the chefs in the kitchen, in the front of the house. we obviously couldn't be growing at the rate we are if we didn't invest in people. and the ability to do that. obviously, not all restauranteurs get to do that. but we're in a position right now where we're a growing company, and the people that we have in the camp want to keep going, and are eagerly awaiting the new restaurants that we open. >> what's the most important thing, ahmass, you've taken from banking to dealing with -- >> this is a business where people leave at will and very transient. putting in proper reward systems, getting the real estate piece right, because it has a long tail to it. at the same time, focusing on the client. i think a lot of times in this business you don't listen to the
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client, there's more product push than demand pull. so i think these three things are important. and measurement is a very metrics-based analytics-based business, and you have to measure yourself the whole time. >> what's the most important market to you outside of the united states? and what can you tell us about what you see from an economic standpoint where you are? >> well, would he have opened a place in istanbul. we've opened a place in hong kong. we have a place in london. so what's happening around the world is the hospitality business is growing -- hotels, restaurants, et cetera. and the demographic of having much deeper middle classes around the world is resulting in a huge demand for not only brands that are coming out of europe and the united states, but also the food that we prepare. for us, frankly, it's a bit of europe, but it's also, in asia, certainly, istanbul, turkey, we think are very good markets with density and high disposable income individuals. >> since you're here today, i'd love to talk to you about wall
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street a little bit, and the market. we're obviously sitting at a record high in the stock market, and over the last couple of days, we've been talking about this end of the crisis trade, that a number of developments have happened, whether it's related to the government, seemingly getting along for the moment, stocks sitting at highs, exiting the general motors trade, and things like that. it's been five years since the crisis. you personally have had some time to reflect on that period and what it's all meant. there are some who, frankly, point the finger at you for some of the issues that took place at merrill lynch. i read where you yourself said, i have a lot of regrets and things i wish we would have done. can you expand on that, how you view what happened in that period and what sort of personal responsibility you may feel? >> well, look, i think this was a very difficult period for many firms, many individuals. at the end of the day, i'm gratified that the businesses that are with bank of america, that were very important, that i
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was a part of building and with other colleagues, the international business, is doing very well for them, the wealth management business. and, also, that a lot of the individuals that i care about and that i've known are doing very well in many other parts of the industry. so ultimately, i think, you know, it worked itself out. of course, it was a regretful period. we all have things we would have done differently. but at this point in time, i'm gratified to see that, you know, the ceo of ubs and deutsche bank and morgan stanley and others that are in the market are doing very well. >> well, when you make a statement like, "i have a lot of regrets, there are things i wish we would have done differently," what exactly do you mean? less risk in the area that so many banks made mistakes in? risking mortgage bonds and things like that in. >> well, certainly with more information, i might have known, or others, you would have made different decisions better for the shareholder and the clients ultimately. and obviously, hindsight is 20/20. these businesses, a lot of people don't appreciate, have thousands of people in audit,
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hundreds of people in risk, hundreds of people in compliance, and so forth, and still things ultimately happened. but i think it was a massive dislocation that affected many firms in the aggregate. >> and as we learned yesterday, as we talk about volcker and things like that, sandy wile has been on cnbc and has said, we should break up the banks. what's your view on where the banking industry should go here forward? >> well, first of all, on the volcker rule, we're comfortable in the food and beverage business. >> not doing too much prop trading with lobster, calamari. >> no, holding back on the c calamari prop trading. >> look, i think the financial businesses are so client-centric, and they dominate the majority of the businesses in terms of market making, in terms of, you know, hedging and all of the things in support of the client, that i don't think is going to have a material impact ultimately. you know, i think you'll probably see it in the valuations of the financial stocks. >> michael, i don't know if people realize how important
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wall street has been to your business -- you go into any of your businesses in new york city, and, you know, you'll certainly run into some of the titans of the industry. >> i'm a cnbc devotee, and i couldn't go to the table every morning, hey, so-and-so, how was your day, if they had a bad quarter or just down in washington, or something like that. it's something we're very fortunate to have all of the people of wall street, as well as all the companies in new york city and around the world that come and eat in our restaurants. it's great. face fantastic. >> we've been lucky to retain the top people in our company. >> one of the things i want to say, myself being the chef, it allows me having a black belt today, with ahmass and the team at headquarters, to be able to focus and work with my team in the restaurant, in the kitchen, hospitality, all of these things. there's a lot of great chefs out there. but i'm very fortunate, and
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altamarea is fortunate that ahmass is down at hq making sure things are all set. >> you have a lot of fans in this building, including the one reading this story. >> a butterfly a couple of nights ago. >> thanks for being here. >> thank you. >> ahmass fakahany and bill white. and a handful of tech stocks you need to watch. and as you gear up for a new trading year, we have heavy hitters like dinein, cooperman, and many more revealing the 2014 playbooks in every major sector. that's coming up all next week. you definitely cannot afford to miss that. much more straight ahead on "the half." my mantra? family first.
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but with less energy, moodiness, and a low sex drive, i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron. the only underarm low t treatment that can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs.
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common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting and increase in psa. ask your doctor about axiron. the united states population is going to grow by over 90 ovemillion people,ears and almost all that growth is going to be in cities. what's the healthiest and best way for them to grow so that they really become cauldrons of prosperity and cities of opportunity? what we have found is that if that family is moved into safe, clean affordable housing, places that have access to great school systems, access to jobs and multiple transportation modes then the neighborhood begins to thrive and then really really take off. the oxygen of community redevelopment is financing. and all this rebuilding that happened could not have happened without organizations like citi. citi has formed a partnership with our company so that we can take all the lessons from the revitalization of urban america to other cities.
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so we are now working in chicago and in washington, dc and newark. it's amazing how important safe, affordable housing is to the future of our society. hey, everybody. coming up on "power lunch" at the top of the hour, budget deal in d.c. the fed preparing to pull back on the so-called quantitative easing. but stocks are taking a hit. you need to position your portfolio now. and mastercard soaring on news of a 10-for-1 stock split. we've got five other high-priced companies that may -- may -- split their stock. are they worth taking a look at? and "time" names pope francis the person of the year. the pontiff vocal about the impact of globalization and the gap between the rich and the poor. capitalism, economics, and the church. we'll tackle 'em all. meantime, back to you, scott. >> ty, thank you so much. the countdown so sochi is
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under way with 57 days to go. our next guest has been called the frying -- the flying tomato for his flying snowboarding skills. he will make the third winter olympic appearance in february this weekend, competing in the dew championship tour. shaun white is live from breckinridge, colorado. yes, shaun, the flying tomato. apologize for misspeaking. >> yeah. oh, good. >> you going to make it three in a row in sochi? >> hopefully. what's interesting is this time around the sport of snowboarding has grown in the olympics. we have two disciplines -- one is halfpipe, which would be, yeah, threepeat, and the first-time-ever for slope style, a series of jumps in one run. >> i'm looking at the -- >> so going for both. >> -- at the front page of "usa today" sports, i don't know if you've seen it -- >> mm-hmm. >> japanese team could challenge white. >> i haven't. >> there it is. how good is this kid? >> say what? scott? [ laughter ] come on, scott.
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>> you worried about imhhim? >> how long we been doing this? [ laughter ] no, i mean, i'm obviously always looking at my competitors to see what they're up to. but, i don't know, that's the best part about it. you run faster when someone's someone is chasing you. nice to know there is somebody to push me to the place that i need to go. but i wouldn't say worried. i'm aware. >> all right. >> he's good. >> i hear you. you're a good sport. >> yeah, yeah. >> slope style. >> you follow me? >> slope style. >> yeah. >> this new sport, talk to me about it. how exciting is that going to be for viewers? >> yeah. well it's not new in the sport of snowboarding. it's just a new discipline in the olympics. it's great. i mean it's nice that the sport of snowboarding is growing and the fact that also's a lot of athletes that do this discipline and don't get the recognition that olympics can give and so -- and i'm one of them.
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i've been competing in both for quite some time now. it's nice. i was always jealous of the swimmers and the summer olympics because they had like 12 races. i'm like i hope you win one of those. we only had our one event for freestyle snowboarding and now we get two chances at it. i'm excited. >> you've been able to sort of transform yourself from just being, you know, just an athlete to a pretty good spokesman as well. you work with a number of companies. how often are you approached? how often you turning people down? what do you still want to do when it comes to endorsements? >> yeah, quite often i'm approached with is different scenarios and options and i don't know. i think for me, it was more quality over quantity from the start. i mean, i have deep relationshipst with the companies i work with. you know, i've been with burton snowboard since i was about 7 years old. with target stores for probably
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11, 12 years. i mean these relationships run very deep and they're more integrated now to where i have a clothing line with target. i have signature sunglasses with oakley eyewear. instead of looking for more, it's kind of like looking into the group of sponsors i have and building those relationships bigger. but around the olympics is always, you know, the scenario to do some interesting i guess one off deals. but i don't know. it's a good question. i mean, the things that i've been doing lately is more, you know, more on the back-end sort of things, percentage and ownership in companies. that's a magz for me being a competitor to now owner and companies. >> let me get one more thought from you. when i saw burton was one of your partners, yesterday we were talking about the fact that lululemon has hired the former ceo of burton, and i was fig
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deshgs. >> -- figured -- >> really? >> what kind of leader is he? >> have you seen the pants i snowboard in? i have. >> they're pretty tight. not a lot of insulation there, guys. >> you know him, though. >> you certainly know him, right? >> yeah. well, i know what you're referring to. i mean all i can speak to is that the fact that burton's always pushing, you know, they're creative, their design and marketing and strategies and i know nike is a company that i think the two burton and nike have always kind of like swapped employees and always kind of been doing a bit of, you know, head hunting within each other. but yeah, i don't know, it's cool to see that a company like burton is really pushing the envelope and, you know, something like this could happen. >> right. >> yeah. >> you're good on your feet, you're good on the board, a good sport as well.
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thanks for coming on. >> thanks for having me. >> all right. >> see you guys. >> good luck in sochi. one sean and others compete in the dew championship tour. on nbc sports of course. you stand behind what you say. around here you don't make excuses. you make commitments. and when you can't live up to them, you own up, and make it right. some people think the kind of accountability that thrives on so many streets in this country has gone missing in the places where it's needed most. but i know you'll still find it when you know where to look. anncr vo: introducing the schwab accountability guarantee. if you're not happy with one of our participating investment advisory services, we'll refund your program fee from the previous quarter. while, it's no guarantee against loss and other fees and expenses may still apply, we stand by our word.
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time for final trades. mr. murphy won our debate as the mastercard bull, that's why you're kicking it off. >> buy mu. >> pete. >> yahoo! >> ironwood. >> buy intel. >> have a great rest of the day. see you tomorrow. power starts now. >> "halftime" is over. "power lunch" and the second half of the trading day start right now. >> all right. big doings in washington. they're benching rg3 but that's not what we're talking about. congress striking a budget deal and laying the path for the fed now to begin pulling back on its easy money policy. investors getting a little jittery. what you need to do right now today to protect your money and make it grow. "time" magazine naming pope francis the person of the year. the pontiff very vocal recently about changing the global economy, speaking about income inequality. we

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