Skip to main content

tv   Power Lunch  CNBC  December 30, 2013 1:00pm-2:01pm EST

1:00 pm
>> this one works. >> josh brown. >> fcx, going 50. >> simon >> tiffany. new year's day is biggest day for engagements. >> "power lunch" begins right now. >> russia is under attack. dramatic individual offyesterday's attack north of the olympic city of sochi at a train station. you see that blast? see it through the window. 17 were killed. another 14 were killed in a bus bombing today in that same city. will sochi be safe for the winter olympics. the opening ceremony is 40 days away. how why scripted is enscripted. h >> new irs rules may lead to the death of great american automatic gratuity at resrants coast to coast. is that good or bad for was?
1:01 pm
>> i'm michelle caruso-cabrera. we'll get downtown in a minute. hi, simon. for the second straight day an attack on volgograd. today's attack killed 14 people. investigators believe a male suicide bomber is to blame. muslim terrorists in chechnya said they would do their best to disrupt the olympics. today's attack comes from yesterday where you can see the explosion at the main train station. in this case investigators believe it was a female suicide bomber. 17 russians were killed in that attack. the shrapnel appears to match making authorities believe two attacks were coordinated. russia's stock market taking the
1:02 pm
attack in stride, no real movement there. the ruble fell 7.3% against the dollar. a list of etfs that track russia. you can see how they are faring. is it possible to secure a city like sochi? general, thanks so much for joining us today. what can russia do to make sochi safe? >> well, i think by all accounts made a huge effort secure the $50 billion games. a couple thousand athletes. but they are right in the middle of the north caucuses. more than hundred ethnic groups. russians have been fighting brutal reoppressive wars there since the 1990s. it would be very tough. i would assess 100% certainty there will be attempts to attack the games but the actual site of
1:03 pm
the games will be tightly wrapped up. >> if you're advising a group of russian special force what do you tell them to be on extra guard for? >> the least important aspect of this whole security apparatus. they will be controlling the forests, seal off the actual olympic areas. the problem will be the borders, and the people who attend the games themselves. were there bombs planted in the construction site a month ago set with timers to go off? those are the kind of concerns that keep the russians up at night and i think we ought to also remember -- look, the russian bin laden, a terrorist is there. he's turned what used to be a nationalist fight against the russians into a muslim jihad. so it's a very tense and difficult and dangerous situation for the games.
1:04 pm
>> does that make the 2014 games more dangerous with putin getting behind assad? >> assad is a shi'ite minority. there are 11,000 foreign terrorists fighting in syria. by and large extremists, sunni muslim jihadists. so i think russia has become a target more so than anyone imaginable and now we got this terrorist on youtube calling for the satanic games to be disrupted the. the bottom line i think the russians will do a superb job of security at the games. their problem will be transportation hubs coming in like volgograd and they just seized a huge cache of weapons which included ground to ware missile, surface to air missiles. this will be a tough row 7th of
1:05 pm
february through the 21st of february they have to watch their step. >> thank you, general. >> another big story overseas, someone in attention attacking the residence of the german ambassador today. police say the gunman opened fire on the residence with two high powered assault rivals. 60 shots were fired. several of the bullets made knit to home to. the german ambassador was home at the time of the early morning attack but nobody was injured. anti-german sentiment runs high in greece. germany is the biggest contributor of the greek bailout fund and a country that imposes the most conditions. >> let's get back to nashmarket. the index, as it shuts down for the year is japan. the nikkei soaring 57% so far year-to-date as you can see. the two main etfs attract the
1:06 pm
japanese markets are the dxj and ewj. neither of them came close to the 57% number scored by the nikkei itself. bob pisani joins me here. that's presumably because the nikkei is a local conference cy currency terms. >> it allows that pure play. compared to other markets, philippines were flat this year. korea was flat. china was down 7%. that's remarkable that out performance given now exported oriented japan is. interest rates are what matters. still below 3% on the 10 year and helping interest rates sensitive groups helping. emerging markets, housing stocks have had an incredible run in the last six or seven session. consumer staples slightly to the down side.
1:07 pm
gaming stocks are up. we had numbers on the las vegas strip revenue up 23%. those stocks are doing better today. social media, people are wondering what's happening. if you followed social media, these stocks have exploded. twitter was prisd at 27. went up to 75. take a look how they look for the year on social media. don't worry about what's happening in the last two days. perhaps a little profit taking. this only happened in the last two days. >> let's talk about the market in general. thank you very much, bob. the dow searching 25%. s&p 29%. what are the chance the market can match those returns next year in 2014. here's what thomas lee with jpmorgan said earlier on "squawk box". >> we looked at some classic bull markets which this is track
1:08 pm
closely in the sixth year. there are maybe a third of the time you actually match the gains of the fifth year. so i think there's a one in three chance we're up 30%. >> a one in three chance up 30%. 2014 could be another bullish year like that. how should new vest right now? let's bring in michael falson head of retirement. let me kick off with you michael, do you think we could get those returns next year? >> i won't second guess my colleague. we're in the business preparing for every eventuality. we may see something less or even dips in the market. i think what we're trying to prepare our clients and distribution partners for is maybe a moderation of the returns we've seen in the past few years but with higher volatility. >> your job is to market the retirement products to other organizations, to the fidelities
1:09 pm
of the world. you can see what is coming in and out, what the floss are. what can you tell us? >> we see for the past 18 months, little bit more in certain segments money, investors moving back into equities. broadly diversified. we see the rapid growth in defined contribution space of target funds which is fantastic for most investors. we see those floss continuing to build. >> there was an article in the journal a couple of days ago that suggested of all the money people took out in the six years they now only returned one three, 13%. >> it's a shift from taking money out to putting it back in. the other thing we've seen is an uptick in the national savings rate. we see more people putting away more money in terms of national savings and that can only mean good things. >> let me bring you in here. what's the most important thing to say to an audience in this country about emerging markets. are they either the place to
1:10 pm
invest or the place that falls out of bed because what the fed is doing and that want rebounds badly on us here. what's the biggest dynamic, do you think? >> 2014, we think, will be a banner year for emerging market especially for emerging market consumer stock. in the past two years the economies that have done very well. china still has 7% to 7.5% growth rate. india has slowed down but still a 5% growth rate. the consumer related stocks had had very good returns. and we think that it is just the beginning of the story, 2014 we are going to carry on with this forward and so we are actually very bullish and optimistic on the emerging market returns going forward for 2014 and '15. >> i understand it's a long term demographic argument and solid and may that's for the next five years the emergence of the middle class.
1:11 pm
in the meantime if liquidity does become a problem because the fed will draw some stimulus and argue we'll have to withdraw it more rapidly will the emerging markets fall out of bed overall >> it's an excellent question. think of it this way. the tapering scale when it was built on speck laying in the summer that's when countries like india, turkey, all their currencies got decimated. when tapering actually occurred when bernanke reduce it, indian rupee and all others held steady. tapering is a thing of the past. also looking back we don't think there will be dramatic tapering. maybe $85 billion off of qe3 will be reversed out. we won't get a hike in interest rates. going forward what we think is emerging markets will react, the response will be to what economies are doing not related
1:12 pm
to the tapering. >> good to see you. have a great holiday. michael, few. be well. let's get a market flashback at headquarters. >> simon, shares of cooper tire was down but now we're seeing a huge intraday reversal. cooper tire stock up by almost 4%. >> target wasn't the only big retailer to get hit by hackers seeing credit card numbers. when we come back the game changers on future technology designed from tickets all from criminals online trying to steal our credit cards and money. sheila's 400 club. >> that's right. we know the market rally this year has been big and broad bp what about extreme? we're looking at stocks in 2013 that had the biggest pops and
1:13 pm
what they can power on in 2014. more power lurch in two minutes. keep it right here on cnbc opinion natural gas. ♪ more than ever before, america's electricity is generated by it. exxonmobil uses advanced visualization and drilling technologies to produce natural gas... powering our lives... while reducing emissions by up to 60%. energy lives here. ♪
1:14 pm
1:15 pm
at a company that's bringing media and technology together. next is every second of nbcuniversal's coverage 0f the 2014 olympic winter games. it's connecting over one million low-income americans to broadband internet at home. it's a place named one america's most veteran friendly employers. next is information and entertainment in ways you never thought possible. welcome to what's next. comcastnbcuniversal. . wall street and big investors are big on clubs, golf clubs, country clubs, tennis clubs, ski clubs but what about the 400% club? sheila is reporting on a very exclusive set of stocks that really shined in 2013. she joins us live from the nasdaq. over to you. >> we have been screening the russell 1000 for these extreme
1:16 pm
names and found six stocks with market caps of over a billion dollars that made the very elite 400 club. solar was a big theme. sunpower was up. canadian solar was up 750% as investors rewarded the company from making the transformation took a power plant. big picture analysts tell me 2013 was a banner year for solar stocks. they cot costs. 2014 could be more challenging. now biotech was another theme. acadia pharmaceuticals and the spike was thanks to a winning kidney drug the market potential of is under valued so we could see more room to gore this big winner. finally a tech in telecom. telecom you naf nexstar broadcasting. did a lot of creative acquisitions. the tech name that rounds out
1:17 pm
the list is himax. it was under the radar until two words entered the picture and that was google glass. they worked with google to produce the glass. when it comes to 2014 for this stock all about whether google glass can become mainstream. big question there but nonetheless a whug winner in 2013. >> 484% question there. thanks so much. as the holiday retail winners become clearer analysts are making their list, checking it twice and then going to make buy calls. maybe sell calls. winners from november and december often outperform in january. right? >> they do. consumer discretionary stocks are the single best performing stocks in the s&p 500 this year. so we took a look at the etf, the xly. it's up since this holiday season shopping started 1%. not too shabby. it's a good return.
1:18 pm
healthy return. on average, januarys that follow this are up nearly 4%. you could see some positive momentum carry through. here's the interesting part. some individual names that stand out. take a look at this because over on this side here you have fossil the accessories and watch maker on average over the past three januarys up 11%. then take a look at this. best buy up 13% over the past three years. and then another one, cabela, up 14%. best one, sears holdings up 16% a month on average for january at least. >> a couple of these have been huge losers at one point in the past. >> sears has been a down side performers. a lot of these tend to bounce back. these are only the past three years. if you go back ten years the financial crisis and everything else. look at these big names, some
1:19 pm
retail outstanding performers in the month of january if things follow the pattern of the last three years. >> simon, hey -- >> one retailer not on the top of the buy list these days is target. shares falling about 5% in the last two months. the big concern, of course remains blow back from the theft of the details of millions much credit and debit cards. stacy is cnbc's retail analyst and james lynn is director of technology strategy. welcome to you both. stacy, let me kick off with you. how does target management redeem itself now with customers in a highly competitive market? >> yeah. you know, it's a tough one. it came at the worst possible time the weekend before christmas and they didn't handle it perfectly. they came out a little late with thaking disclosure. they gave a 10% discount but that's probably not enough and the most important thing is their target red cards which is their credit card or own debit
1:20 pm
card has 20% penetration. if the consumer is really truly nervous about target's security, think about how that impacts the business but i think, you know, price, price, price win when is you're trying to make up for a mishap. >> the problem with that if you run a discount for everybody it doesn't actually target in particular the people that have been harmed, stacy and that's a much better use of funds if you can do that. >> i think there are ways of even going after your target red card consumer which is the 20% penetration and say hey you're our most important consumer you spend more than anybody else in our store so here's what we're going to do for you to make you feel more comfortable and make sure you don't walk away from us and go somewhere else. simon, that's a good point. >> james what about the technology? first they said they hadn't got the pin numbers stolen but they are stolen but well encrypted.
1:21 pm
>> it's a very difficult thing to do. that doesn't mean we shouldn't be concerned. the style of encryption being used is far from best practice in modern standards but if you look at the standards in the u.s. it's forecast to still be robust for approximately another 30 years. this information should be safe given that the key was held by the third-party rather than target themselves. but i would probably be changing my pin anyway just in case there's precedence for this going on. >> let me push that point. in the uk, in europe they certainly make a lot more noise about safety systems and there's chip and pin. if you're in a restaurant your credit card never leaves you, you plug it into the mobile device and put your pin number in. is europe safer than this country in term of the
1:22 pm
technology they are elm employing? >> yes. these chip and pin cards are a benefit. interestingly, however, there's of course much more modern technology available even that could be deployed in europe. we have to accept that the major drive with electronic payment systems is less about security and more about convenience and making it easy fe jfor people t buy. in reality we'll see a significant amount of time before these types of cards or the equivalence that's available. >> stacy, how do the better security systems enter this country. is the retailer going to push that? does the credit card manufacturer push that? is there potentially a competitive advantage in here by actually touting your security systems above other retailers? >> yeah. i mean the problem is if you look at the major credit card companies, amex, mastercard,
1:23 pm
discover they will protect you if you have a credit card. if you have a retailer's private label card that's link toured debit card that's when you're in real trouble. if someone gets a hold of that the retailer is not going hip out to the full extent. so i think what retailers can do is potentially say that they will protect you to the fullest extent and really as james was just saying until the chip and pin becomes yubiquitous in the united states -- >> time for wine. >> with target the latest doe get hacked the "power lunch" series game changers now looks at consumer protection in the coming years. >> a visual guardian which is one of the five and five we
1:24 pm
predict will come is a different way of preserving your privacy. it can in real-time observe all activities relate toured credit rating and do this on a real-time basis because it is your personal digital defender. the technology would primarily exist on one of your device, preferably one that's private. one you have absolute control over. and you can choose to basically decide what you will share, what you won't share. it will be a software application running on a relatively powerful but nonetheless private device that might be on hour bill device as one level of defense. there might be a gateway at your home or look at the contents flowing in and out of your home. the opportunity is internet scale. basically, you would have to look at the scale of what people are currently doing today in the privacy space in the software space that defends your personal attribute, the various anti-virus efforts. these things are immense scale
1:25 pm
because they are internet scale. stocks have been absolutely tear this year. where are next year's opportunities? next on the program, five stocks to buy for 2014. and we're live with jane wells in l.a. with the end of the automatic tip, jane? >> simon, you know when you go to a restaurant they have that big fat tip automatically slapped on the bill if you have a large group. could be going away. but why? will you still be as generous when "power lunch" returns? bny mellon combines investment management & investment servicing,
1:26 pm
giving us unique insights which help us attract the industry's brightest minds who create powerful strategies for a country's investments which are used to build new schools to build more bright minds. invested in the world. bny mellon. humans -- we are beautifully imperfect creatures, living in an imperfect world. that's why liberty mutual insurance has your back, offering exclusive products like optional better car replacement, where, if your car is totaled, we give you the money to buy one a model year newer. call...
1:27 pm
and ask an insurance expert about all our benefits today, like our 24/7 support and service, because at liberty mutual insurance, we believe our customers do their best out there in the world, so we do everything we can to be there for them when they need us. plus, you could save hundreds when you switch -- up to $423. call... today. liberty mutual insurance. responsibility. what's your policy? so i got the windows nokia tablet. it's, well, impressive. it's got the brightest hd screen, super-fast 4g lte, so my son can play games and movies almost anywhere, and it's got office for school stuff. but the best part? i got the lumia 928 for my daughter for free, with the best low-light smartphone camera this side of the north pole. dad for the win. mm! mm! mm! ♪ honestly, i want to see you be brave ♪
1:28 pm
with a big party eight or more restaurant usually tacks on an automatic 20% gratuity charge. due to new fruls the irs many restaurants may be doing away with that automatic tip. jean wells will explain why and how it impacts you. >> when you're forced to pay a tip is it really a tip? the irs says no. after warning 18 months ago change was coming, starting wednesday a gratuity to large parties will cause serious paper work. forced tips which restaurants charge parties eight or more are really service charges and should be counted as wages so employers have to go through the paper work and figure it out. chains like darden restaurants are phasing out the practice of
1:29 pm
automatically adding the tips. will instead provide suggestions on the bill if groups want to add 15, 18, 20%. restaurants widow not stop the practice could find themselves paying a lot more for things like worker's comp because these tips raise salaries. with the fluctuated hourly rate employers have to figure out what is the overtime rate. what is time and a half. >> it will affect the individual's base hourly rate for purposes of calculating overtime. this is the big hidden trap for employers as a result of this change. at some point later on it will be two, three, maybe four years down the road there will be enough unpaid overtime as a result of this change to go ahead and create a very, a very large class action against the unwith itting restaurant employer. >> of course. so in most cases if you book a restaurant now for 20 people or
1:30 pm
eight or whatever you can figure out who and how much to pay as a tip on your own, simon. >> jane, it's always great to see you. jane wells live in l.a. let's get over to chicago and the bond markets. rick santelli tracking the action. >> you know, there isn't a lot of active trade going on in treasuries. mostly a passive trade actually for the last severreceivseveral. look at the intraday of fives, tens and 30s, each maturity is down equal three basis points. the reason i bring that up? most of this year has been about steepening. in the last five or six weeks a big reversal escalated in the last two weeks. is that the reversal of big positions or something yet to come in 2014? we'll be paying very close attention. a lot of people think today's buying pushing rates down is a
1:31 pm
bit of a response to the somewhat lethargic test of the highest yield close to july of 2011. the dollar index nothing different but one big important difference is that we're close within a quarter of a cent of unchanged on the year. back to you. >> let's check out where we are on gold. gold is basically clinging to $1,200 an ounce. this has been a bad year. clearly down 28%. heading for the first annual loss in 13 years. of course this what you're looking at here is the biggest annual loss in more than three decades. michele? >> losing its luster. that's the cliche we lose. >> mega year for stocks. s&p 500 up about 30%. hitting record highs. so where do you make money in 2014? five stocks to buy from the man, the myth, the legend, michael farr.
1:32 pm
plus cnbc's million dollar homes. supersized edirks two homes worth at least 25 million homes. we'll take you inside and show you which home gives you the biggest bang for your buck. ss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. the energy in one gallon of gas is also enough to keep your smartphone running for how long? 30 days? 300 days? 3,000 days? the answer is...
1:33 pm
3,000 days. because of gasoline's high energy density, your car doesn't have to carry as much fuel compared to other energy sources. take the energy quiz. energy lives here.
1:34 pm
it took a lot of juggling to keep it all together.k.. for some low-income families, having broadband internet is a faraway dream. so we created internet essentials, america's largest low-cost internet adoption program. having the internet at home means she has to go no further than the kitchen table to do her homework. now, more than one million americans have been connected at home. it makes it so much better to do homework, when you're at home. welcome to what's next. comcastnbcuniversal.
1:35 pm
cnbc's popular million dollar home competition is gaik. this time we raised the stakes and showing you properties worth $25 million. we have six mega homes in different markets across the country. here's how it works. two mansions go head-to-head. only one gets to move forward based on whether or not it's the best buy. to make it more interesting we won't tell the locations or the price. we'll reveal that after we take a "first look". in the last rounds florida's island time beat new york city's sophisticated. in number three miami area goes head-to-head with ocean opulence. >> this tri-level beach front mansion has 10 bedrooms, 10
1:36 pm
bathrooms, and more than 21,000 square feet of living space including a chef's kitchen. located on more than 1.5 acres this waterfront mega home also includes an elevator, infinity pool and movie theater. >> this gated mega mansion is located on more than 6.6 acres and has 13 bedrooms, 14 bathrooms and three pools all with breathtaking ocean views. no detail is left untouched everything in the grand pool house is covered in sea shells, even the 11 sha 1 chandeliers. >> we know island time is located in coral gables, florida. that's in miami. ocean opulence, up the road in palm beach?
1:37 pm
>> could be. that was everybody's first case. it turns out it's in malibu, california. it's a stunning, stunning house. i was there recently and when you're there you just never ever forget it. both houses are so great. these are tough choices now. it was easier before. >> tell us about the prices. >> so the coral gables, the first one, which already won a few rounds that's a $25 million ask. well worth close to that price. the miami market is hot, sizzling. so it's really a good value, 21,000 plus square feet. on the water. next to a marina. park your yacht and run away. it's perfect. malibu is on almost 8 acres. >> much bigger. >> much bigger. it has a guest house, an office, three different pools including
1:38 pm
a huge indoor pool. and just amazing property -- >> you pay a lot more for it? how much? >> 54 million. >> very, very hot malibu market. lots of foreigners like miami rushing to the west coast. there's a lot of demand for these kind of properties. >> what's the difference? >> to me more of a supply and demand difference. in malibu there aren't a lot of huge compounds. if you want a party house, a compound house, you know, leonardo dicaprio just sold. nice house. not so wonderful for $17 million. this is $54 million and house an army. so, you know, i have to tell you if it's a supply and demand question it really becomes what do you think? >> right. gotcha. who do you think is the winner between two?
1:39 pm
>> what do you think? >> i would go with the miami property. >> i knew you would say miami. >> because i'm cuban. >> quick swim. i have to tell you. i think from a supply and demand standpoint and most other standpoints, retaining value, et cetera, et cetera, it's go to be malibu. malibu is the show stopper for decades. it's going to be i guarantee you a mega billionaire will buy it. >> california's ocean opulence wins round number three. let us know if you agree. use #milliondollarhome. later she will top the crowning home during close bel"closing b. >> i too have decorated my home with sea shells. >> what would you look to buy for 2014? here with his top five stocks to
1:40 pm
buy, for the new year is c in connection contributor michael farr president of farr miller and washington. welcome to the program. let's run down your top picks. you chose cbs, slumber j, full come, united technologies and accenture. >> cvs, a terrific company. we have 30 million people uninsured whack sees to prescription plans now. question have the growing older part of the demographic, people over 65 continue to increase as a portion of the population by about 13%. over the next 20 years. the stock is trading at 16 times earnings. growing earnings at about 13.5%. they pay 1.5% or better as a dividend while you wait. so as a domestic stock i think,
1:41 pm
it's hard to find a cheap, cheap stock right now, there's value in cvs and particularly the growing sales. >> be your next pick, has the roughly same p, and same dividend. schlumberger. >> a company that hasn't had a lot of pricing power. they've struggled with it. it will improve a global international company. again 15 times earnings, increasing in growing earnings at a 16% rate for the next few years our analysts think with 1.4% dividend. you grow those earnings at 16%, you really got a strong powerful company. >> we're running out of time here and do i want to fit them all in. qualcomm. >> qualcomm have the chip side for smartphones and tablets and
1:42 pm
licensing side with all their patents. 3 g and 4g and $17 a share and 2% dividend at 14 times earnings looks attractive to me. >> utx and acn. >> utx terrific company. one of the best i've owned. earnings per share growth. huge free cash flow. accen turn re, terrific company, exposure to three trends. outsourcing, regulation and the cloud computing. they have no debt on the balance sheet at 2.25% dividend, little bit slower growth. five out of my ten i buy all of these myself, going buy them in the morning, at the close on 12-31. i'll let you know how i did next year. >> if you had to pick just one which would you pick, michael? >> very hard.
1:43 pm
united technology wos be tuld b one. i can't bet against 15 years of that track record. it really is remarkable company with fabulous management. >> good to see you, sir. thank you for joining us. cnbc contributor michael farr with his five picks for 2014. >> comes around tomorrow night. a new super tax for the super rich. you got to hear this. plus online date cigarette more mobile than ever. why josh lipton can't get off that phone it sticks to him like glue. the inbox is always full. josh will sit it down to explain the new big business of mobile dating. [ male announcer ] this december, experience the gift of exacting precision and some of the best offers of the year at the lexus december to remember sales event. this is the pursuit of perfection.
1:44 pm
♪ ♪ ♪ [ tires screech ] chewley's finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. get the most extensive charting wherever you are with the mobile trader app from td ameritrade.
1:45 pm
[ male announcer ] this december, experience the gift of unsurpassed craftsmanship and some of the best offers of the year at the lexus december to remember sales event. this is the pursuit of perfection.
1:46 pm
>> michele, listen. >> i don't know any about those profiles. a lot of people look for love online and the match making market is actually worth north of $2 billion. that's according to ibis world. a lot of singles this new year's eve.
1:47 pm
looking for love online. going to date sights like, eharmony. 11% of internet users say they have used an online dating site. but smartphone apps are the latest entries. zoosk has 25 million active users. top 20 app. the president of zoosk tells us mobile is become a bigger part of his business as members message each other throughout the day on their smartphones. >> so you can chat fluidly with other people. there's no friction. you don't have to wait for someone else to get back home to get to your message they can whip out their mobile phone and get back to you right away. >> now that's not to say that online dating is perfect, of course. according to the pew research center half of online daters say
1:48 pm
people misrepresent hd themselves in their profiles but analysts say this market is poisd for strong growth with revenues from the mobile dating market expected to double in the next five years to $500 million. most americans still find their new year's eve date and partners off line but a lot of times all you seem to need now is a smile and a smartphone. back to you. >> i think it's the greatest collection of pictures that are at least ten years old. >> that's right. a lot of people upset by the misrepresentation pep said he was 6'2", shows up not so much. >> separately the shoe company, crocs ceo will retire in april. shares are up 21% on the day. michele, back to you. >> a new super tax hitting the
1:49 pm
super rich plus the tao of the nsa. stocks hitting record highs in 2013 and why this rally and ceos behind it may be hurting capitalism. see what my palsy monday says in the power rundown next. [ male announcer ] here's a question for you: where does the united states get most of its energy? is it africa? the middle east? canada?
1:50 pm
or the u.s.? the answer is... the u.s. ♪ most of america's energy comes from right here at home. take the energy quiz. energy lives here. the ocean gets warmer. take the energy quiz. the peruvian anchovy harvest suffers. it raises the price of fishmeal, cattle feed and beef. bny mellon turns insights like these into powerful investment strategies. for a university endowment. it funds a marine biologist... who studies the peruvian anchovy. invested in the world. bny mellon.
1:51 pm
1:52 pm
all right. it is power rundown time. the story, the first story we're going over, simon, in france they are approving a super tax on companies paying salaries over $1.3 million a year. you have to contribute a 50% income tax on the share of wages over that amount if you're the employer. the taxes could bring the rate as high as 75% on anything you make over 1 million euros. >> the thing to realize here is that the anger over inequality is driving change. even here in new york on wednesday bill de blasio will be new rated as the new mayor. he won on a landslide in part because he spoke of this city as
1:53 pm
being a tale of two cities. with that will come change. >> you'll being shocked to hear, simon. i disagree. when you know the details of this story there's a lot of talk but no action. this was supposed to be originally on individual. not a single individual will pay this. instead it's the company -- >> it was judged illegal. >> ultimately they were looking for a work around because they had complaints from soccer players, people who wanted to leave the country and they realized they would end up losing money if wealthy people threat country. they made something symbolic. if you're an employer you get maxed out at 5%. you won't pay the full tax. >> okay. let's try topic two. let me ask you about the op-ed i posted on will the s&p rally hurt capitalism. it calls out the current generation of ceos who are more interested in boosting their
1:54 pm
stock prices than taking on the risk they are supposed to, failing to invest in jobs and growth, failing to put $1.8 trillion of cash to productive worth but spending half a trillion dollars this year to buy back their own stock artificially boosting the rally another major reason why wealth inequality will rise substantially again in 2013. did you read it? >> i did. you have an error here in causality. ceos are being risk adverse, you could be right about that. but we have a whole world of stocks to invest in. shareholders can say i'm not going invest in that company because i don't think it's doing the right thing with its capital. >> which is why those ceos that are investing for growth,
1:55 pm
facebook, tesla -- >> that's why it's working. >> when we're not generating enough jobs in the economy and the wealth inequality is not working it's not working. >> the cause for that is something different. we need a whole show to discuss. >> nsa hacking tactics have been revealed by the german magazine. it's reported american spies in a division known as tailored access operations known as tao are intercepting computer deliveries and bugging the devices. >> you know secretly i was quite pleased. the james bond in me was desperately trying to get out. but actually the bigger problem is whether this agency is in volume terms out of control and i don't know the answer to that. i do know that snowden told us stuff we didn't know.
1:56 pm
>> you're right on that. one of the key things that has come out they can get into microsoft's crash errors, when your computer crashes and you send that message to microsoft. they can see those and exploit computers. >> i suspect the rest of the world inaccurately already believe that microsoft world with the u.s. intelligence services anyway. that's their assumption. may be wrong but they would have thought that. >> so, you were my james bond, simon. >> i'll let you see the sea shells on the inside of my apartment. >> three big winners in today's trading, that's next.
1:57 pm
1:58 pm
that it's given me time toabout reflect on some of life'seen biggest questions. like, if you could save hundreds on car insurance by making one simple call, why wouldn't you make that call? see, the only thing i can think of is that you can't get any... bars. ah, that's better. it's a beautiful view. i wonder if i can see mt. rushmore from here. geico. fifteen minutes could save you fifteen percent or more on car insurance.
1:59 pm
this is where we stand on markets at the moment. relatively flat. market is exhausted with the price action has taken the s&p 500 up 29% so far this year. very much a holiday mood here on the pen ultimate day for trading. disney, nii holdings and series are doing well today. >> i'm exhausted, simon. aren't you? >> quite invigorating to work with you.
2:00 pm
you left field me each time. as the years have gone own i learn to enjoy that. >> a pleasure always simon. so good to be with you. >> that's all for this "power lunch" on this penultimate day of trading. >> stay tuned on cnbc next, "street signs". hello, everybody and welcome to "street signs". it is all quiet out there on the wall street front as we close out a historic year. but will high rates put these gains under fire? flying with $1,000 high club, we weed out the potential numbers. chinese flood gate opens a flow. how does the u.s. invest and fish in these waters and this year, the latest, the greatest and grossest of 2013's food.


info Stream Only

Uploaded by TV Archive on