tv Power Lunch CNBC December 23, 2013 1:00pm-2:01pm EST
it continues. >> stef, what do you think here? we had this nice pop after the fed now what? >> volume will taper off but we work higher. >> i think it's going it to be happy holidays and people will finish out strongly this year. >> we will toast to a great year in the market and toast to all of you, of course. have great holiday. >> cheers. >> "power lunch" starts now. >> "halftime" is over, "power lunch" and the second half of the trading day starts right now. >> i am telling you those final trades get a lot better when you've got some bourbon behind them. when it comes to credit card security is this really the best we can do? 40 million cards swiped. how is europe better at this then we are? what would it cost to make shopping safe? do retailers an banks believe they're better off with a crisis every now and then rather than spending in the money to fix the problem. a new slate of record highs in the markets, ladies and gentlemen. the dow and s&p and nasdaq -- the dow and s&p all-time highs,
the nasdaq a 13-year record. here's where we stand right now. what does great 2013 spell for 2014? there you see the industrials up nearly 82 points. the s&p up 10 and nasdaq up 38. so what the heck? that's what we're calling it with the ten-year near 3%. rates rising in china. how can we hit record after record? it usually doesn't work that way. this time, maybe as the saying goes it will be different. sue is out, joined by michele at the new york stock exchange. >> hey there, tyler. the dow up today, you said it a second ago. take a look at the returns for the year so far. 25%. the spy, the etf that tracks the s&p 500, if you put $100,000 at the start of the year you would be up by roughly $28,000. the triple qs track the nasdaq 100 up 33% year to date.
bob pisani is here on the floor. >> if you put $100,000 in the s&p at the start of the year i would be impressed and hang out with you for a while. last week with the big rally it would cut into the santa claus rally. it starts tomorrow. good for 2% return on the s&p or dow. that has so far not happened. we just keep moving forward and not just new high on the s&p and dow, the dow transports has joined them confirming the historic highs if you believe in dow theory. >> that's important. >> transports at a historic high as well. great sector moves today. home builders are up. there was a big story, page 2 of the journal about a sturdy predictable housing market for 2013. semiconductors are up. good news on the apple china mobile deal. memory hand set chip makers will be doing better. micron down because of a downgrade, up big. some of the other names on the upside. finally i want to know commodities are doing well today. not so much the commodity stocks but commodity funds are doing
all right. top reminder, just turned negative but the xo p, the oil exploration companies doing better. >> how much of this is end of the year people have to mail out this is what's in the portfolio you've invested with me and looks like you're not invest vested enough, you don't look like a good asset manager on behalf of people because the market has been up so much. >> a little bit of window dressing that goes on all the time in the stocks but the bottom line is, the overall market has been strong all throughout the year. we never had any pause at all. there was that may concern, of course, that was on bernanke, as we move down about 4, 5% but that was it. the whole year we've seen steady inflows into the market. the first time five years we've seen steady inflows. >> marking another milestone in our recovery. >> that's important. i don't know about the great rotati rotation, i think started in the second half of the year. out of stocks and into bonds but you can see it clearly. >> tyler? >> thank you. bob thank you as well. final countdown is on. there are now just two shopping
days left before christmas. that means i have to start my shopping. just kidding. the target debacle, credit card debacle, stealing the show. like the grinch that stole christmas. julia boorstin at the mall in l.a. where she's talking to target customers and kayla tausche reporting on the bank's reaction to the security breach. we start with julia in woodland hills, california. julia? >> well, tyler, the shoppers we've talked to here are really a mixed bag. some target regulars say they're staying far away from the store but most of the folks we've talked to say they are cautiously going into target and taking advantage of those discounts. >> the problem is if you're not watching your statements carefully, then you could be in big trouble. >> i have a credit monitoring service that alerts me. so i feel safe. >> personally i try to use cash whenever possible. >> kind of avoiding target right now. >> now america's research group
says target has not been dramatically affected but retail consultantsy cust mer growth partners say weekend transactions at target slipped 3 to 4% from last year. analysts dana tellsy says walmart will ben fit while target works to lure its customers back in and tellsy notes after security breach like this, the most important thing a retailer can do is offer incentives and promotions to rerecruit their. >> macy's up big about 18%, dillards 19%, sachs flat. has borrow and matel up, and for the big boxers in the last three months, best buy up 3%, walmart up 2%, target down 3%. the big credit card breach probably did not help the stock
there of target. you see how it's doing. now to kayla. the banks starting to respond to this breach but it doesn't seem that lots of people are feeling particularly happy about their response. what's going on some. >> i don't know if you would feel particularly happy if you're one of the 40 million customers that got a notice about this but the banks found out about the breach the same time the public did. that data had been stripped from the magnetic stripes of cards they issued. the foremost advice to customers, get that card replaced. industry blog reported today that account data retrieved in the target hack are being sold on the black market for between 20 and $100 a pop. it's a pain but the sooner one of those cards is replaced the less likely a customer's account information can be used. some banks are putting limits on what those accounts can spend. chase customers can't withdraw more than $250 cash or spend more than $1,000 a day. that caps the amount of bank could have to reimburse a
customer if that liability falls in the financial institutions. right now it's unclear whether banks or target which has assumed responsibility for the breach would be on the hook. past incidents have been costly. a 2007 cyber attack on tj max cost that company $256 million. target is facing lawsuits too but one certain cost the banks are footing new card fees and wages for all the branch employees working overtime on this holiday week. >> to replace cards. >> replace cards. >> let me ask you, do you know whether -- if i have a chase card and get it replaced is that limit on my use then lifted? >> goes away altogether. the limit is on the previous card with the old account information because that's the one that's at risk. that's what these hackers have in their hands at this point and if you get a new card, they don't have any of that new information. >> thanks very much. kayla tausche reporting. michele, down to you. >> seems cyber criminals are getting more brazen so how do we
protect our data and make consumers feel safe again? thoughts from jon herring co-founder and ceo of lookout the world leader in mobile security. and harry love is cto at bit nine, an end point and service security provider. thanks for joining us. harry, let me start with you. we see these stories that indicate that somehow our data when it comes to our credit cards is much safer in europe than it is here. is that perception correct and why? >> well, in europe they have instituted microchips in the cards so it becomes difficult for criminals to manufacture fake cards. so in that regard, they are more protected. but institutions in europe and the united states, in fact, worldwide, are just as vulnerable. >> jon, you agree with that? is there anything else that happens in europe we should be doing here? >> absolutely. it's just a frame of reference when you think about it we're using magnetic strip technology which is tantamount to what a cassettes script has. in europe we have a signature
generating a unique key on every transaction. a different approach that makes it difficult for the criminals to transact. >> why are we still using magnetic strips here? i'm guessing it's cost. >> a lot to do with cost and legacy. a lot of legacy investments and we're in an analog world when it comes to transactions. we need to move to the digital world where cyber security is thought of from the get go. in europe they've taken a forward thinking approach. >> to what degree did they leap frog us? we've been using credit cards far longer here in the united states. took longer for europe to catch up. is it purely legacy or made a choice in the united states they would rather deal with the braechls on occasion rather than upgrading the facilities across the country? >> i think in the past certainly there was a cost risk assessment that was made at the time. i think that's changing now. i think we're going to see more of that change. europe did leap frog us in terms of the technology that they're using to do on-line and to do
physical transactions with credit cards. >> if we wanted to, harry, to upgrade all of these so we could get to a better point, how much would it cost do you think and b, would it prevent the situation like we've seen with target? >> it certainly could reduce the risk of certain types of attacks, reduce the risk of cards being physically manufactured. you could use if you could steal information credit card information for on-line transactions where the unique transactions generated don't come into play. really the problem isn't the cost it's who's going to bear the cost. there hasn't become agreement on that in the united states. should it be the credit card processing facilities, the venders, should it be the banks? the cost itself if it was dispersed would be relatively less. >> jon, ceo of lookout, thanks very much. harry is ceo at bit fine. tyler, always comes down to money. >> absolutely does. money every time. >> another day, another story on mortgage rates an the rate at
which they will move. diana olick reporting from washington. diana? >> tyler, in the news came in the form of an oddly timed e-mail sent by mel watt late friday night to a handful of reporters. watt has been confirmed as the new head of the fhfa which oversees fannie mae and freddie mac but will not be sworn in until january 6th. yet, he announced that he would, when sworn in, delay the new fee hikes that were announced two weeks ago by the current fhfa acting director that would make loans to borrowers with that kind of middle range credit more expensive. now watt said in a statement that he's delaying those fee hikes because he wants to evaluate the rationale, the costs and the availability of credit. why did he choose to announce this now? because he says of the prospect that some lenders could actually start pricing in those fee hikes already. well that's not a prospect, that's a fact.
a swoekman told me friday afternoon before the watt announcement that chase was indeed pricing in the fee hikes because of the risk that a loan made today might not be sold or backed by fannie or freddie until april when the fee hikes go into effect. keep following. citi also put out this pricing sheet on friday saying it would adjust its pricing structure for loans it buys starting february 28th. what happens now? that same chase spokesperson told me this morning we will not put in the fees that don't exist. they will come out where they were put in. so for these lenders to try to keep up with what's going on with fannie and freddie and what their regulator die decides it ain't easy. more on-line at realty track.cnbc.com. >> what are fannie and freddie going to be, that's for another day. so after years of negotiations, take a look at apple today. higher by more than 3% after the tech giant struck a major deal with china's biggest cell phone
company. shares of apple are up just 6% this year, far below the market average. but a big move today. josh lipton in san jose with more on what this means for apple and i phone sales. the stock acting like it means a lot more sales. >> yeah. well no, listen apple bulls like what they hear. the company looking to show to boost its market share in china. china mobile serves over 760 million customers, it has added 50 million customers just this year. put that another way, that's more than double the entire american population. no information on what iphone will cost with a china mobile contract. but if apple prices phones in the mid end range, say $300 it could take share from rivals like sam sung and local players like zte. according to kanalis apple had 6% of the smartphone market in china. piper jaffray says the deal would mean another 17 million more iphones sold in 2014.
morgan stanley says the deal could add $10 billion to apple's top line. tyler, back to you. >> thank you very much. let's go to jackie deangelis for a quick market flash. >> good afternoon. michael kors biggest loser on the s&p 500 today on a day when we're seeing a lot of green, particularly with some of the retailers, kors down 5% after web bush made comments on inventory issues premarket saying promotions and markdowns are indicating a slower than expected season for the company. the stock trading at $80.45 a show. >> snow and ice the midwest getting hit hard. power out for hundreds of thousands but will it hit the shopping season and what's the forecast like for shoppers and travelers from now until wednesday? find out next as we report here from "power lunch" where it's about 62 degrees in inglewood cliffs. mine was earned orbiting the moon in 1971. afghanistan in 2009.
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it was downright hot in the eastern part of the country yesterday, but snow and ice hit much of the middle west. power still out for hundreds of thousands of people in parts of michigan where the ice is coating homes and roads and trees and power lines. you can see some of the damage that it might cause. and merry christmas from oklahoma city. look at that. sheets of ice falling from a covering above this mall in that city. not going to be helped with somebody doing last-minute shog.
everybody did take cover. nobody was hurt. what is the forecast nationally from now through christmas? here's the weather channel's maria la rosa. >> reporter: the weather is going to make the last-minute shopping rush here today a bit difficult in the northeast. you still have the heavy rainfall. i-95 corridor, ice, a big concern through new england. the good news is by later this evening certainly through tonight you have dryer weather. buffalo, pittsburgh, boston, going to be easier to get to the malls. same deal for the southeast and mid-atlant mid-atlantic. atlanta and charlotte drying out by tonight. tomorrow morning will mington towards jacksonville you will get a chance to dry out. all getting pushed by the cold air. this is going to be a shopping issue for after christmas sales on thursday for a lot of places and we start in the midwest, you're going to feel it in chicago. white christmas but dry for all the sales on thursday. 19 degrees your high. that's it. and new york city, looking good too. today is definitely the messy day but much drier tuesday,
wednesday, thursday, going to be nice along fifth avenue. back to you. >> thanks so much. i'm not kidding, get your kleenex ready for this one. true meaning of christmas, a father serving in afghanistan coming home to his family in alabama for the holidays. he surprised his little girl at school. emma barnes asked santa for just one thing, for her dad to come home. and take a look, this mom in indiana got a surprise from santa as well. kim harris is a teacher in le grange her son serving in afghanistan without her knowing her son ethan came home early. the staff at school had him dress up as santa. kim went to tell santa her wish and she got it. how charming is that. >> that is really nice. >> merry christmas. >> did you have your kleenex ready to go. >> i was ready to go. we give lots of gifts and wonderful packages, but long after you don't remember what was in those packages, those folks will always remember those moments. michele. merry christmas. >> merry christmas to you,
tyler. >> all right. the auto sector in high gear in 2013. the s&p auto index up almost 29% led by gm, ford and toyota. predictions for 2014 next. and they have changed the way americans fly from ireland. what it's like to fly on ryan air where almost everything you do costs you. we'll take you through it all from the booking process to the gate to see what airlines in the u.s. may be trying to charge us for next. taking a page out of ryan air. ♪ you know, ronny... folks who save hundreds of dollars by switching to geico sure are happy. and how happy are they jimmy? i'd say happier than a bodybuilder directing traffic.
. all this week we're looking at ways you can make money in the new year. phil lebeau gave us his predictions on what we can expect in 2014. how did phil do in 2013? he said auto sales would surge past 15 million in 2013. he was right, where phil was right and wrong. auto sales will come in just below 16 million. phil said gm shares would be above the ipo price. phil was right, gm rose above the ipo price of $33 and stands around $41. lincoln and cadillac says phil would be stuck in neutral. half right and half wrong. lincoln remains in stuck in neutral but cadly lack sales up 20%. two out of three pretty good.
half credit on that. see what phil says lies ahead next year. >> 2014 will be the year the battle over entry-level luxury cars heats up. the mercedes-benz cla class is so hot it's putting pressure on mercedes rivals. audi will answer with the a 3 coming out in march and you can bet that bmw, lexus and cadillac will make sure their entry-level models are priced competitively. in 2014 automakers and auto dealers will throw a little more cash on the hood in order to make sure sales stay strong. why? there will be 66 brand new or completely redesigned models rolling into show rooms next year. that's a record number. and in order to make sure the other 234 existing models still sell, the auto dealers will have to throw a little more cash to sweeten the deals. all eyes on the tesla model x. the company's first crossover utility vehicle which comes out
late next year. as for the model s, sales are expected to grow in 2014 especially overseas. for the company's stock who knows if it will stay red hot next year. one thing is for sure, with ceo elon musk taking a cross country trip in teslas, the model s will be a hot topic for much of 2014. phil lebeau, cnbc business news, chicago. >> make sure to tune in throughout the week for more predictions and on the web at predictions.cnbc.com. spend a little more time on cars and for more on what to watch in the auto sector bring in standard & poor's auto analyst ephraim levy and ed hellwig. we put you together the firm of levy and helwig. ed, start with you, you heard what phil thinks the trends will be. what do you see the trends being in 2014? >> i would agree that entry level luxury segment is going to be very hot.
a lot of new entrants, the one he talked about from mercedes-benz is doing well, but i see the pick-up truck segment continuing its momentum. you will have a new truck from ford, new f-150 as well as some mid-sized trucks from fwm thgm will have incre mental sales that it hasn't had in the past few years. >> one of the things i noticed, ed, how loan terms are being extended and extended to get the monthly price down. so what used to be the three-year loan or the three-year lease becomes the four, the five-year lease. is that likely to continue, ed? >> i think that will continue. we've been seeing lease terms especially extending out and it just gets people into more car than they can normally afford and that's something that the automakers know that is always a good sales tactic and they've got a lot of cars coming off lease from a few years ago so
that will increase the used prices. >> ephraim, your turn now, do you see sales running roughly as strong as they did in 2013 and who are the market share winners in your view? >> well, i do see higher sales in 2014. i see 16.1 million light vehicle sales, which is about 3.3% growth rate. that's slowing from the 8% increase we see for this year. and behind that i think it's a lot of positive fundamentals, the average vehicle over 11 years old right now so people are going to be coming into the dealership for fresh vehicles and there's a lot of new styling, new offerings, a lot of new technology and greater fuel efficiency and the affordability you mentioned easy to finance a car, i think that's going to help sales go higher. as far as the competition and market share, i think it's going to be a big battle with no super winners but very competitive. >> all right. i want you to give me three stocks you love for 2014 and one that may be spent in your view?
>> well, we have two stars that are -- two companies that are five-star that's our strong buy opinion, johnson controls and automotive manufacturer that has a controls business for managing buildings, heating and ventilation and air conditioning, as well as a battery business, and we have auto nation as a strong buy and that company is an auto retailer, largest one of the company. in terms of the companies that we have a sell on, we have one and that's superior innedstrys. and that's a parts supplier having some difficulties. >> thank you very much. ed, thank you as well. happy holidays and a happy new year to both of you. michele? >> so tyler, as americans travel for christmas and new year's many may be surprised to see all the new extra fees that airlines are trying to get you to pay. it is perhaps a trend that started with ireland's ryan air. love it or hate it the new way to fly. we're taking flight with cnbc's tom mckenzie, taking us through the booking process for ryan air, the booking process that
has changed the industry. >> reporter: so what's it like to travel ryan air? first stop, booking tickets. so this is ryan air's all new revamped website. the thing that jumps out is the price tag, 1499. that's about $22 just for a one-way ticket. we're going to go to dublin, clicking on it here and put in our details. >> buy it high and sell it cheap. nobody piles it higher or sells it cheaper. >> reporter: if you're not careful the final price can quickly add up. if you forget to print out your boarding pass at home, ryan air will kindly do it for you for a 70 pound fee. this is enough to give many passengers the cold sweat. if your luggage doesn't fit perfectly into here, just that's another fee for ryan air. the airline charges for everything from reserve seating and priority boarding to checked in bags. 20% of revenues come from
ancillary sales like food and drink, with staff driven hard to meet targets. there's a risque ryan air cabin crew calendar. profits from these go to charity. for some, ryan air's price is all that parties. >> i thought it was a braisingly cheap airline. it was all right. >> reporter: others feel cheated by the add-ons. >> it's a nightmare. what i have to say about ryan air is not repeatable on camera. >> reporter: they admit rival airline easy jet has beaten it on cust mer care. the company betting on a friendly image to lure back passengers. >> ryan air has been friendly and cuddly and accessible, just slightly misunderstood. >> reporter: the question whether the new flight path will see it through the turbulence or set it up for a bumpy landing. for cnbc, i'm tom mckenzie. >> ryan air is misunderstand stood. 70 pounds for printing your
boarding pass. sharon epperson tracking the action at the nymex. >> we're looking at some fan preholiday trading today, but gold prices are closing below the $1200 an ounce level and we are looking at gold prices that are extending losses after the biggest weekly loss gold has suffered in a month, this coming after wednesday decision by the federal reserve to taper its bond buying program by $10 billion. it's been a weak year for gold prices down 28% year to date and this has caused society general saying gold has lost its safe haven status for 2013. back to you. >> to the bond market. rick santelli tracking the action at the cme as we get closer to the 3%. rickster. >> ever closer but not crossing it, but trade isn't aggressive but still sticky rates two-day treasury elevated spending most of our time above 290. year to date chart ended last year at 175, a far cry from 292 yield.
five-year since may check it out, highest yield close here since the 13th of september and remember loma was 65 basis points, finished last year at 72, here we hover at 168. intraday of the dollar/yen. flirting with the 104 handle, a fresh 62 month high. >> thank you very much. jackie deangelis has another market flash for us. >> hi, tyler. a look at utar up 26% on receiving approval for its blood pressure drug after that drug received two previous rejections. a number of analysts raising their price targets on this company today. the ceo saying that the company is grateful for the fda approval and helps with its mission to work on these therapies. the stock trading at $111 a share. >> thanks. the dow and s&p as you probably know, climbing higher, new records. but what about the stocks that left those indexes this year? dominic chu is on the case. hi. >> hey, tyler. several big names were forced to
exit the dow and s&p this year. and you're about to enter the land of misfit stocks. see how they faired coming up on "power lunch." keep it right here. >> my economic wish for 2014 is that the housing market has a sustainable recovery, even as government stimulus slowly moves away from the economy and housing market. there's a saying around here, 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. it's been that way since the day you met.
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welcome back to "power lunch." i'm eamon javers in washington where the white house has just announced ed ahead of today's deadline president barack obama over the weekend signed up for obama care via the d.c. health care exchange. the white house said the president is like 85% of americans and gets his health care coverage provided by his employer, in the case of all presidents the military. his signing up is largely symbolic but the white house said the president selected the bronze package in his adventures on the obama care website over the weekend. >> all right. hope it wept well for him. thank you. >> listen to some music folks. ♪ >> the dance of the sugar plum
fairy, the nut cracker. christmas is almost here. instead of the land of the misfit toys cnbc focuses on the land of the mis fit stocks. dominic chu here to take us on a tour. >> not only the voice but the music gotten me in the mood. if you a watched "rudolph the red nosed reindeer" you know about the misfit toys. stocks that have been cast out of their indexes companies like jc penney, the department store cast out of the s&p on december 2nd. the stock is down 17% since being kicked out. how does jc penney get off the island of misfit stocks. it has to show traffic and sales have improved for this holiday season and then get to people really consistently going back, over and over again. that's a big thing. then, of course, jc penney away, bank of america kicked out of the dow on september 20th. exiled to the island of misfit stocks. shares up about 8% since then and investors will be looking to
see how it can and all the other big banks really start to ramp up the growth, get over the regulatory hurdles and find new sales and revenue streams. then hewlett-packard, the tech giant cast out of the dow same day of b of a. those shares are up 32% since getting the boot on to the island of misfit stocks and they've nearly doubled in 2013 alone. ceo meg whitman needs to show hp can grow again, may or may not involve the presence of 3d printing as part of its business mix. if hp was in the dow it would be the single best performing stocks this year. overall, hp, the island of misfit stocks but one to consider as you head into 2014. >> it happens every time, dom, it seems. when they shake up the dow jones industrial average. thanks. another day, another record high. what the heck? we got the yield on the ten-year note near 3%. interest rates rising in china. looks like they're having a credit squeeze all over again. how can the market keep moving
higher? kenny polcari, what the heck? those two things terrified the market this summer. we had hundreds of drops because of those things. >> i think there's going to be a come back to reality once we get through the holiday season. i think there are volumes really nonexistent, a lot of people that have taken time off and you've got the automated systems, taking it, the momentum guys push it higher. you can't be too judgmental when not enough volume for people to take advantage of. i think whether it's right before the new year or after new year this comeback to reality where the markets start to once again look at those issues that you pointed out. >> not moving on nothing. i made a list here. rising dividends, rising buybacks, modest economic expansion that we're seeing so far, mid single digit earnings. >> the spirit of my original question was, you have interest rates going up it looks like, closer to 3% on the ten year and thens this point where it looked like china's banking system was going to blow up. best ever. we're getting the same indications now and everybody is
like la, la, la. everything is fine. >> rates aren't moving up that much. it's not aggressive. >> in china it is. >> yes. it's not a 4%. we're not going in that direction. >> ten year. >> we are moving very slowly right now. yes, i agree, the big unknown for stocks next year is qe and it interest rates. we don't know what's going to happen with them. i asked traders for two years what would happen if qe2 and 3 did not exist where would the dow be, the typical answer 1,000 to 2,000 points lower. that's a typical trader answer. >> i would agree. >> now we know that's a big headwind. can the market overcome that? >> we're going to find out. merry christmas and happy new year. >> and to you. >> sheila dharmarajan on the nasdaq. she has the latest. >> the nasdaq has been a perennial outperformer this year and continuing that streak today up about a percent the for both the nasdaq 100 and the composite hitting a fresh 13-year high. today's gains has all to do with apple. that stock up over 3% on the deal with china mobile, really
lifting up the entire index. remember it is one of the most heavily weighted stocks here. facebook, another stock closely watched. a lot of concerns after that big secondary share but today it is hitting an all-time high. clearly no concerns there. tyler? >> sheila, thank you very much. a mcdonald's giving away some very odd advice to its employees. we'll give you the juicy details on that one next. plus, it was supposed to be a celebration of a major deal, but it ended in tragedy. robert frank has the details. robert? >> a helicopter carrying a chinese billionaire his son and famous wine maker went down in bordeaux. the billionaire's $40 million vineyard deal and how his wife averted tragedy at the last second. that's coming up after the break. to help secure retirements and protect financial futures. to help communities recover and rebuild. for companies going from garage to global. on the ground, in the air, even into space. we repaid every dollar america lent us.
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the tweet heard around the world and which has everybody talking and tweeting lots of things top of the show. make sure you tune in to "street signs." back to you on "power lunch." >> all right. thank you very much. just hours after agreeing to a major real estate deal, a chinese billionaire and a french winemaker are now feared dead. our wealth editor robert frank here with the details. robert? >> police are still searching for that chinese billionaire and a french winemaker after their helicopter went down in the bordeaux region of france. the ill been air lam kok, his 12-year-old son and winemaker james gregoire all in the helicopter when it crashed in the icy river. the three were taking flight to celebrate gregoire's $40 million vineyard called chateau de la riviere one of the most famous in bordeaux and the largest in a string of vineyard deal by chinese buyers. lam is based in hong kong. he and his wife owned the brilliant group which started in teas and expanded into hotels
and tourism. the body of the son was recovered and police looking for the other victims. lam's flight was supposed to be on the flight -- lam's wife was supposed to be on the flight but backed out at the last minute. >> still searching for the buyer and seller. $40 million fairly large but not macivesive. >> it was one of the most prestigious in france. the chinese have been buying vineyards like crazy. held a press conference to celebrate this. the chopper crashed in the risk sore they have to search the river. is. >> all right. robert, thank you very much. >> thank you. >> for that story. let's move on to our power rundown. switch gears here a little bit. michele and bob are hanging out at post nine. i wish i were down there with you. let's talk about this one which is certainly raises the eyebrows of curiosity, post on mcdonald's employees resource bashing fast food. take a look at the post. fast food tips. there you go. the image on the left looks like
the product mcdonald's sells with the caption unhealthy choice. the top product on the right i guess says healthy choice. so what do we think of that? this is very curious that they would take on their own products. >> clearly, tyler, they outsource this product to somebody else, right? what's amazing is this has happened now, several things that have happened with mcdonald's employees research website that have been totally [ inaudible ] with the needs of their employees. i can't believe they're still hiring this company to do it. it's unbelievable to me. >> bob? >> somebody once said that one of the things that you get when you have been with some company for a long time and is intimate knowledge of its less appealing aspects an perhaps the employees are reflecting that to a certain extent. i don't know. look, everybody has the right to say what they want. i certainly think it's a little weird, though, that they allowed this kind of thing to be put into public way like that. >> yeah. let's move on to topic two and that is shockingly, shockingly,
airplane leg room is shrinking. we've just discovered this. airplanes keep trying to maximize capacity on planes with new seat designs and do this by minimizing the pitch which is the space between the rows. spirit airlines installed prereclined seats in 2010 cutting the pitch down to 28 inches, the smallest in the industry, expanded the capacity on an air bus by doing so from 150 to 178 passengers. i hate this, i hate this, i hate this, bob. >> yeah. it's interesting, they've reduced the seat site by 10% and people are 20% bigger than they were 5 or 10 years ago. i'll tell you what bothers me the reclining under your knees a lot. if there's one thing i can suggest is, reduce the amount it reclines, i understand they go back, three, three and a half inches, stop it at two inches and then maybe some way they can take those pockets that are below the things that go down, the tray tables, and put them
above them to give a little more leg room. trying to figure out a way without screaming at the people in front of me. >> michele. >> it's gotten cheaper and cheaper to fly because of deregulation and i know we all hate it and it stinks when squeezed in there like a sardine, but flying is keep for a reason. >> let's move to pantene's anti-sexism shampoo commercial arrived in the u.s. it's a minute long and features a man and woman doing the same thing in a professional setting like running a meeting or giving a speech all the while different words associated with each gender are displayed on the screen. a man leading a meeting is a boss, a woman is bossy. outrage in the twitter sphere over the weekend. what do you think of this? michele, why don't you go first? >> i went to a woman's college and we had all these conversations about how women were perceived differently from men even if they do the same kind of thing. i think it's true. you got to live with it if
you're a woman and you fight the fight every day. i'm not sure the ad sells that much more shampoo. >> i don't think so either. a word i don't quite remember but i think there is a double standard and i have felt for years that there are and i completely agree with michele and think it's great to the extent they raise awareness of it. i don't get how it sells shampoo but agree with the idea. >> i hadn't seen this ad until watching it right now? it's great. >> labels hold you back. >> outrage in the twitter sphere over the weekend, a communications director with interactive corp lost her job after tweeting this inappropriate comment. iac issued an apology and let the woman go. here what is she said. justin sacco going to africa hope i don't get aids. just kidding. i'm white. and this person was in communications, michele? >> where do you begin? >> yeah. >> i mean, it's just -- it's shocking that somebody could be so dumb considering the industry
she's in. it's unbelievable. >> yeah. >> i value -- look i value snarkiness and ir reverence. i like to think i'm like that. this was just plain shockingly stupid. i notice on her profile she says troublemaker on the side. when i first saw it i said somebody must have hacked into her account. she can't be that dumb to say something so insensitive. yet apparently she's made other remarks. >> you hit on something, bob, when you said snarky. twitter does give the ability like that quick little snarky comment that maybe you might say to your neighbor, now you broadcast it to everyone else. we see this over and over again. people get dinged because of it. >> really shameful stuff. thanks very much. we appreciate it. >> three of the winners on wall street this hour plus love of cup cakes disdain for the cube. >> coming up, escaping the cube. two sisters go against their family's wishes. >> they were not pleased with us when they found out we wanted to start a bakery.
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it. today following two sisters like everyone else love cupcakes. now it's also their business. >> we had a very frank conversation with each other and said are we going to do this or spend the rest of our life wondering what if? >> hi, i'm katherine. >> i'm sophie, sisters and founders of georgetown cupcake. >> my background was in fashion. >> and mine in adventure capital. i was on the invensment time on highland investors. we still ended up talking about this dream. >> we had this passion for baking too afraid to act on it. >> when happy where you are and have a stable and secure position to give that up for something very, very uncertain and unknown is very frightening. >> we ended up having to max out
all of our personal credit cards and use up our life savings which is not a conventional way to start a business. >> when we decided to start georgetown cup cake we wanted to use our grandmother's recipes because we had this great base she used to for her cakes and make our cupcakes gourmet, the best ingredients and bake from scratch every day. >> our first day we opened we didn't think anybody would show up. we had done no marketing, no advertising. >> other than a small poster that we printed at a local kincos shop and put it in the window a day before we opened and we had this line on valentine's day and you know we sold out of the cup cakes early in the afternoon, had to shut down, rebake, reopen, and it was like a whirl wind day. our mother came to help out for the opening weekend but she ended up staying forever. >> in hindsight, i think it's the best move they ever made. >> i would say from day one i was sort of the night and weekend guy. i would come home after work and i would help them with whatever they needed. >> but the silver lining we
thought is that we get to spend all our time together as a family. we used to work crazy hours at our other jobs and we never saw each other until the weekends but now we work these crazy hours but at least we're together. >> if i can frost all day every day that would be my dream. >> if you asked us when we started did we plan on having six locations and ship nationwide? no. we thought it would be two of us, read some magazines, drink some coffee, be a quiet bakery. we are hands on at all of our stores and manage these kind of things. it's what makes georgetown a success. >> i want to frost every day too. georgetown cupcakes has shops in d.c., maryland, boston, new york, and los angeles. and plans be to open in atlanta next summer. plus, tyler, they also have delivery anywhere in the united states. all right. three of the biggest whippers in today's -- winners in today's trading coming up.
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three winners darden restaurants higher by 3 buck, pulte group and tesoro is surging 4% today. tyler, back to you. >> thank you very much. i'll be off tomorrow. so to everybody, happy holidays and especially to you, michele, happy holidays to you. >> you too, tyler. >> "street signs" begins right now. ♪ ♪ i don't want a lot for christmas ♪ >> hello and welcome to "street signs." we're taking a massive bite into the china market, but is it biting off more than it can chew? the average joe is being burnt by a cup of joe. with stuffing stocks with stocks. ideas before this reindeer has flown and the tweet heard around the world and by the way, let's hold the airing of grievances