tv Power Lunch CNBC December 29, 2017 1:00pm-3:00pm EST
mind the growth is there, the debate we have had on this desk, if it's the next netflix, it's going to have a very volatile year but a good year >> all right i think pete's gone. is pete here yeah, pete is not here so we won't get his trade. but we wish him a happy new year and happy new year to all you folks watching "the halftime report." kevin o'leary, thank you for joining us "power lunch" starts right now all right. melissa, thank you very much you'll be back with us in a few moments. welcome everybody to "power lunch. i'm tyler mathisen and here is what is on the menu for the final trading year for the blowout year of the markets. so, can we keep up the pace next year or a payday slow down ahead? and it is in the mail, the president going after the post office and amazon in a new tweet saying the tech giant is making the post office dumber and poorer you're right and game on, investors have been betting big on casino
stocks this year some are up more than 90%. will investors ride the rally on into 2018? we've got your gaming playbook "power lunch" begins right now. right now we are lower today across the board, albeit slightly telecom is leading and ralph lauren, dollar general and target are among the top perform earns. goldman sachs is seeing current quarter earnings reduced by $5 billion due to the new tax law on the verge of ending as the best performing down stock with a 90% gain, crude is holding above $60 a barrel and could end the year above that
mark for the first time since 2013 now, with only three hours left in the trading year, the down track for roughly a 25% gain, that is around $5,000 points in one year the new york stock exchange is here with more facts and figures on a great year for stocks hello. >> hello the big question is, will the news continue into 2018? there was a lot of it. the s&p rose 20%, the best return since 2013 when it rose 32%, just about a perfect market everywhere the s&p as i mentioned, 20%. best since 2013. global markets rose, vietnam, india, brazil, hong kong, double-digit gains double-digit gains in much of your everything came together the u.s. economy grew modestly low volatility, low interest rates. and, of course, the expectation of tax cuts. that did come at the end of the year the big winner for the year,
semiconductors rode the wave of smart appliances as well as home builders riding low interest rates, limited supply and more young people going out on their own. commodity stocks like copper manufacturers were also strong as the global economy improved, as was aerospace and defense oil stocks, even though it moved to $60 at the end of the year, investors were burned by the huge drop of oil in 2015 and 2016 and mostly stayed away from the oil game the issue for 2018, will global growth continue? and what about earnings? they will get a boost next year thanks to tax cuts, but what happens after that the final issue is inflation it's been relatively contained because wage growth had been modest with the economy heating up, that may change. if inflation picks up, the federal rate reserves rates aggressively and that could be a problem for the future rally guys, happy new year. >> happy new year. the dow getting most of the attention, but the nasdaq did even better this year, up 29%.
bertha coombs will never been overshadow bid the dow or the nasdaq hi, bertha >> well, when you consider that apple is the mega caps stock, tyler, that's a big weight within the dow and nasdaq. really, this has been a banner career for the nasdaq because of tech the xlk, which is that index, that tracks them, and shy of the record close earlier this month, but up for the ninth straight year and as bob was mentioning, really, this has been powered by the outperformance of the chip sector the philadelphia semiconductor index this year finally taking out its 2,000 historic close and it is interesting, there are a number of names from that era leading the charge this year as they reach new historic highs themselves memory chip maker micron technology was up nearly 90% for 2017 chip equipment makers, lam research, up 70% and the small caps in bioticks
were the relative laggers this year that's where we saw the biggest gains on nasdaq. madrigal pharma was up 89% followed by sangamo therapeutics and others up 400% and it's been an amazing year here at the nasdaq, guys haven't seen numbers like these in well over 15 years for the sector here. back to you. >> bertha, thank you very much we're going to check in with president trump who is down at one of his golf clubs where he's play in a so-called scramble with members of the u.s. coast guard the president is an avid golfer and a pretty good one that's a live picture as he's either concluding the round or just -- yeah, he's just concluding it. he golfed with coast guard members today there.
let's see if he has comments here the scramble format, you played a best ball out of the foursome. and the president an accomplished golfer, brought people over to show severalof the plaques on the wall at mar-a-lago last night, apparently, including reporters in the grill room where president trump had been, apparently the club champion there several times in the past so that is how the president's spent the last trading day he made a little noise this morning. >> on twitter? >> can you imagine that he tweeted today? >> wild guess. >> what a wild guess where he was critical, apparently, of the post office for what, in his view, would undercharge, among others, amazon, while amazon is making billions of dollars. and jeff bezos' net worth increases by $34 billion this year the post office losing billions of dollars and so forth. so continuing his --
>> he was also tweeting about the very cold weather on the east coast saying that perhaps global warming would be welcome >> that ruffled a lot of feathers >> yes anyway, we are going to come back to the press and the generic comments when we talk more about the markets, following br ining bere have barry james, president of james adviser funds. how much longer can then current market run going in this current economic cycle >> the market the displaying mid-cycle characteristics. it has a lot of youthful characteristics. so i would say, i know it's nine years old and know we are at all-time highs and have a lot of highs. but on the other hand, age is
not a limiting factor. just look at me, i feel youthful myself so anyway, now the market is going to do what the market is going to do, but it is going to be responsive to business conditions it will be responsive to profits and earnings and the things that have happened this year have given it new life the regulatory relief, the tax reform, global growth. i mean, there's a lot of things coming together, synchronizing is the term coming to me now and they really could be in place for years into the future. in fact, i'm much more excited about, i know 2018 is going to be a special year because of the tax, luring tax and the money that will flow through america from repatriotization. but the kind of changes we are making, you see this in the surveys of ceos and small business owners, they are excited. there's animal spirits they are ready to invest in america. and i think that can be nothing but good news for main street
america as well as wall street >> your own view in terms of both the stage of the cycle and the economy and the markets? >> sorry, go on. >> i think the economy will be fine and in 2018, a lot of positive indicators there, the tax cuts will help, regulatory changes will help as well. on the stock side, everybody's singing the same song. and that's, don't worry, be happy. and i think i'm the only person in the united states worried about the market i think it is very high risk right now. you have very, very high, in terms of evaluations, price to sale ratios have never been this high you have quantitative tightening as opposed to easing you have, what we have seen, almost all-time highs in terms of bullishness in fact, the 1987, i was actually around for that so we have all these things going along. and you have the tax cuts that are now passed the good news is over. so there is a pretty high
probability of a 15% or higher setback in the market, probably in the first or second quarter and we have taken steps to actually lower equity level, become a little more conservative, and probably again the only ones in the united states to do that. >> i want to tell you, i like you for several reasons. one, you're from the south two, you are roughly my generation and three, john, you are an investor who believes in building your portfolio out of low expense etfs and index funds. and specifically you set as the 50% core of your portfolio broad total market index funds and then you add others around it one sleeve is aggressive, another sleeve is more defensive. all in low cost index-type products explain your reasoning >> well, thank you, tyler, i appreciate that. now, our reasoning is 50% index is, you said, you and i have
been around a long time. and one thing you know in this business, you're going to be wrong. you're going to be wrong often and the idea of the 50% index is to make sure half your portfolio goes with the markets and the markets as we know generally rise over time aggressively, he works out very well things we all believe, you mentioned the xlk earlier, the technology one, that's in our aggressive sleeve. look around you, technology is growing in our lives every day you want to benefit from the companies who are doing that on the other hand, defense, as our other guest said, we could have a 10% to 15% decline in the market any day, any time and obviously, you want to be able to ride through that comfortably. you want things that are non-correlated. >> you have some goals, you have some rights in there so that is good. >> exactly non-correlated assets that are defensive in nature. >> right >> hey, barry, when did you
start taking your exposure to equities down? and how long do you plan to stick with that if the market goes high her? >> well, the market has a lot of momentum behind it right now 75% or more stocks there behind the 200-day moving average so that keeps the stock moving higher you have earnings coming off the recession lows. >> why not take your exposure down, barry. that could be a painful place to be to explain to your clients, i'm stepping back from the markets when there's so much momentum in them right now >> right the thing is, it's too late to sell when the markets are already down we are historically, after 45 years in business, we're almost always early and that has been a good thing we protect the capital for our clients. we think that is the most important thing you can do you always want to take the least amount of risk that achieves your goal you don't want to take any more. while we just started an etf that is a responsible informsment fund, they, as a
rule, are weighted to the largest stocks and right now, those are the tech stock that is have run and run and run. there's a lot of risk there. there's a lot of money in the etfs we saw all the money going into the s&p 500 index. that was a reason it collapsed in 1987. and there was no recession half the time, you don't even have a recession and the market falls 15% or more. so we just see the hallmarks of topping market we don't know the day, but we believe it's prudent to get the umbrella ready and have it, have it out for when the rain does come >> we'll leave it there, gents thank you, john and barry. happy new year weekly counts are out and seema moody is here with the latest numbers. >> the latest rig counts for the second week in a row are unchanged. however, for 2017 as a whole, the number of oil rigs in service rose by 42% to a total
of 747 oil pretty much holding steady after the reports, still above the crucial $60 level. and a fun fact for you, oil has not ended a year above $60 since 2013 we'll see if we can do that this year back to you. >> thank you, seema moody. the president's tax reform law, will it give the economy a boost? will the infrastructure bill get through congress what is in store for the economy in 2018? and the brutal snap hitting most of the country is not letting up we'll have more as "power lunch" continues.
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part of the big sell on the president's tax cut is it will help create manufacturing in america. new factories, new jobs. but according to the next guest, low taxes don't necessarily lead to economic booms, at least in the near term. greg epp is a commentator at "the wall street journal." welcome back to "power lunch." a lot of people are pointing to the idea, pointing to the fact, not the idea, the fact that businesses will be able to write off instantly the full cost of new plant and equipment, productivity enhancement equipment that sometimes may cost jobs, but may indeed add them why wouldn't that create an economic boom or at least a boomlet? >> well, there's probably three different waysthis tax cut could affect the economy in the
short-term the first is the demand side effect people have more money in their pockets and go out and spend that that could give you a near-term boost. and indeed, that is what forecasters are doing upgrading the 2018 forecast by half a percentage point another factor is exactly the one you just mentioned, the capital expense provision that will, in effect, incentivize a boom and spending on equipment in fact, we have seen that already begin, given that particular provision was retroactive to september now, the third is the trickiest. this is the idea that with more investment, people will be more productive they will have more capacity in the economy and raise it as a long-term growth rate. that's where the economists seem to be skeptical because there's not a lot of historical effort for the economy's long-term growth rates to raise. i've been thinking one way we are not fully appreciating the tax cut is that when you combine the lower taxes on businesses, the accelerated write-off of
capital equipment and the policy that the fed continues to give us, those are perfect economic conditions for a stock market boom kind of like the dot-com boom we had at the end of the '90s that brought about productivity that's the sleeper benefit waiting for us >> but the stock market is one thing, the economy is different. they don't always sync up. and quite often, they don't. what does history tell us about the increment to growth that has followed major tax can you wants in the past? >> history tells us you don't get early growth t you don't end up with a higher productivity growth rate after that i don't think we should throw it in the bath water yet just because some tax cuts didn't have pronounced impacts so that
no tax cuts ever will. and at the margin, i think that especially the tax cut on business profits and acceleration of capital expensing will, at the margin, have positive impacts. you are still dealing with serious head winds and aging workforce, but combine that again, tyler, with all the technologies out there, whether robotics or artificial intelligence, waiting to be adopted. it could be a good combination. >> it almost sounds like economists might have underestimated the impact. that the upside is really that the risk is to the upside when it comes to the results of this tax law. i mean, you said it yourself, the thing that doesn't, isn't captured in models is the fact that you have the sort of perfect storm growing in terms of low interest rates, et cetera >> i think that is really the hard part to capture the way the business cycle interferes with the productivity nobody saw the late '90s boom coming enter '97 and '98, unemployment
was below 5% a lot of people said the economy had a lot of running room. people were worried about the next recession but the fed looked at the conditions and said, inflation is low, look at the oil prices very low let's not kill this boom with the higher interest rates. alan greenspan, gutsy call on productivity and it was this kind of wonderful petri disk for the dot-com boom we did have the nasdaq burst in 2000 and a recession in 2001 but before it ended, two very good years i don't think that is an impossible scenario now. >> greg, i don't want to swallow optimism, but to what extent do you think the surprise of growth this year in the u.s. was driven to the upside of the global growth when you pair that with a weaker u.s. dollar that exports were up? the tax reform itself, of course, with the repatriotation could reverse that quite significantly? >> well, i think most of upside
surprise this year has been a global phenomenon. as you note, the dollar was actually weakening through to the fourth quarter, which was evidence it was the rest of the world pulling the u.s. along as opposed to the u.s. pulling the rest of the world along. it suggests the time used for monetary easing policy in japan to finally get some traction and boost those economies. and a lot of studies of crises have told us it takes seven or eight years. i will say another factor to keep in mind is the price of oil. we are used to high oil prices being bad for the u.s., but because of the importance of shale, it has been on the margin positive for business investment and growth and the crash in oil in 2014 and 2015 was a major negative for the u.s. manufacturing sector. and the fact that it has recovered, seema was just telling us how the rig count was up 42% in 2017 that's your manufacturing renaissance right there. those are factors not to forget
that are out there but in the last few months, i do anticipate the tax cut is beginning to have a real effect on the stock market. and through the wealth effect alone, that should help growth. >> greg, have a great new year see you again. >> thank you. >> take the rest of the year off, greg, it's okay. >> so generous, tyler. still to come, president trump tweeting about the money-losing post office today but he was really taking a shot at another amazon individual we'll explain the details on that plus, we won't be able to tell you how cold it is in chicago unless we go to a reporter we made stand outside we'll do that next on "power lunch.
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we're the webber family and we are usaa members for life. usaa, get your insurance quote today. cold continuing to freeze a large part of the country. and it's another frigid day in chicago, about 14 egrees that's where nbc news' ron mott is standing by ron? >> reporter: hey, there. good day to you. it is 14 degrees starting to snow again we just had a family of five come by and the mom said, it's cold, what can you do? so that's kind of the mood here in chicago i think people are ready for this cold snap to be out of here usually you get them one or two days, but this has lasted all week we are expecting a warm-up by wednesday of next week so another three to four more days to suffer take a look at the region, cold temperatures out there look at glascoe, it is minus 6
and duluth is 6 below as well. they had to close bridges due to freezing rain. they have seen all sorts of wrecks today things are heating up so that the freezing services are starting to thaw out but this is the weather gripping much of the nation if we can tell you about the weekend, a lot of you folks have plans for new year's eve well, if you plan on being outside, please wear layers. look at the windchills, the morning lows going into the holiday weekend. 25 below tomorrow morning in fargo, north dakota. chicago, we are expecting 1 bone-chilling degree what can you do other than to grin and bear it that's the prevailing attitude here in the windy city back to you. >> on sunday night in times square, they expect it to be 11 degrees. >> i wonder how big the crowds
will be. >> there's no place i would rather not be. >> no matter what the -- >> i don't care if it is 70 degrees, i don't want to be there on new year's eve. is the post office subsidizing amazon's free shipping president trump says it is we'll take a closer look and one big thing in 2018 could make it fft diiculfor stocks to continue to rally. we'll tell you what it could be when "power lunch" continues after this (siren wailing) (barry murrey) when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. we call that the golden hour.
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i'm contessa brewer. here's the cnbc news update at this hour. libyan officials announced they will begin to repair a damaged pipeline that was blown up earlier this week. and north american crude spiked to above $60 a barrel crude is up 3% this week shares of tivo are spiking on the word that potential offers were made to buy the dvd maker. we reached out to tivo for a comment on the report. u.s. natural gas production rising1.4% to a record 94 billion cubic feet in october according to new numbers by the eia. the price of gas has surged 11%
this week as record cold grips parts of the u.s and new year's celebrations are already kicking off around the world. in brazil, thousands of balloons were released in sao paolo as part of a tradition in 1992. authorities are making a point stressing that these balloons are all biodegradable. and beautiful to boot. that's your cnbc update. back to you. >> contessa brewer answering all the questions. now we'll look at the markets for the day. the nasdaq is down by 14 coca-cola, ge is a winner for today. apple and verizon are the laggers. and hilton, marriott international and wyndham are at life-time highs. we'll get back to the new york stock exchange bob is there with more
>> reporter: this is on the floor of the new york stock exchange it goes back to the 1860s. things have gotten more somber during the 1930s, but one thing never changed. here's the annual singing of "wait until the sun shines nellie ♪ ♪ wail til the sun shines nelli as the clouds go drifting by ♪ ♪ we will be happy nellie don't you cry ♪ ♪ how long they will wonder sweethearts you and i ♪ ♪ wait til the sun shines nelli by and by ♪ [ applause ] >> speaking of institutions,
arthur, 63 years beginning in 2018, and you were doing this back then. how much has changed >> i was doing it in squadling clothes. but one thing that hasn't changed is the hope and good cheer of all these people here for everyone out there to have a very happy new year. >> and people come as far away as florida a lot of the retired members, a lot of the grandchildren of the retired members are here, you can't see a lot of them, but they are in the back and around the side it is quite a traditional and wonderful to see the young people here as well. everybody, have a healthy, happy and safe 2018. thank you, all, for joining us happy new year happy new year to everyone. >> a map happy new year to you. >> i didn't hear bob singing, did you hear bob singing >> i didn't hear his solo. >> he should do the a cappella version. >> that was like "pitch perfect 6. >> we know 2018, 2017 has been a
strong year. will 2018 will one as well let's take a look at the earnings expectations with hope greenberg and ron insana good afternoon to you both i'll start with you in terms of your expectations for earnings optimistic or not, earnings themselves should continue to grow, but relative to expectations. >> well, that's a key question with respect to this year's relatively strong numbers, the one or two headwinds that exist next year for profits are going against what have been good numbers in 2017. so the comparables will be more difficult. but you do have some tail winds coming through with respect to tax reform greg was talking about the weaker dollar, global growth, all those are tail winds the head winds are strong comparison, possibly some other wrinkles that may emerge along the way. and the federal reserve might be one of them if it decides to raise interest rates rapidly next year. >> where do you stand in terms of what is already priced, things like tax reform, given it
to yourself with such a strong quarter. >> we are not looking at the macros individually, we look at the individual companies but you take this into consideration, listening to what ron said, i could add that there is confusion with the trade -- the president's approach to trade and what that may or may not do and as it affects inflation, but when looking at it, we're looking at where companies are going to trip up we may see more earnings misses, especially if investors are willing to look through what could be a pop because of tax benefits and really go back and start looking at earnings quality. because we continue to believe, you know, with this market doing what it has been doing, it's sort of rocked people into complacency about the quality of how companies are getting the earnings and you need to start looking at revenue growth, that you are always looking at, but then you want to look at how the numbers are being made that's a great year for us, because we think it will be tough for them to make it the way they have been making it without being noticed.
>> so you think next year is an active year short-sellers can come back to outperform, wratrar than ride the tide everybody else is riding >> yes, that's a great point i look back at this past year and we have quite a few names that have really imploded. and it shows that you always have to be on your toes. because that is always going to be the case. but yes, this year we have a potentially greater opportunity. the trick, of course, is always the case, is finding those and finding those ahead of time. >> i think that is a great point. because there are so many instances this year and in quarters past, the companies, the earnings beat wasn't high quality because they had a benefit of a lower tax rate. the question, is do we start looking through this and what happens beyond 2018 and 2019 when the comparisons are harder then you're really looking at apples to apples, was there growth in the underlying business >> not only that, but we are doing it against increasing earnings estimates by analysts so instead of lowering the
numbers, typically helpful to stock prices over the last few years, they are raising their numbers because of tax reform. but it does raise the margin of error relative to what we have seen the last few years. >> do we get global tail winds or head winds? this year has been the former. >> it is hard to tell. you do have monetary tightening coming in the u.s., in europe, in england and in great britain and a variety of place where is japan could start to tighten given the inflation numbers ticking up you nay not have the interest rate tail winds that you had, but the other question is, commodity prices are just up, at florida keys the near-term, the global economy looks pretty g d good. >> quickly, in the u.s., which are those you are looking for? >> wilfred, we don't look at sectors but we look at companies. and i can tell you right now, you know, i -- >> so name one. >> well, no, because this past
year, this past year consumer packaged goods was very good for people like us we started looking at companies, even the past year or two, looking at companies like kellogg and brands like that going forward, there's going to be spillover in the cpg space. you can look out, one of the things we think about, is you see in the software and services, some of the companies have grown and grown and grown will they continue to grow or do we have the all in effect for some of the companies. so there are a variety of things to look at you can't pinpoint any because it doesn't quite work that way as much as i know you would like me to say it does. >> thank you, happy new year >> thank you president trump tweeting today about the post office. why is the united states post office, which is using many billions of dollars a year, charging amazon and others so little to deliver their packages, making amazon richer and the post office dumber and
poorer should be charging much more morgan brennan has more on that story, question mark. >> question mark, just as peak shipping season is wrapping up yes, the postal service probably should be charging more for package delivery starting next year, rates will, in fact, be going up again the usps makes money on package deliveries, but the margins are comparing to the first-class business in decline for years. amazon relies on the last mile to home. by some estimates, two-thirds of its packages, amazon handles the transportation and sorting for many of the packages and then hands them off to the usps for final delivery, via parcel select service this makes sense the usps already goes to every address, so it is a little less expensive option for amazon. and also at times fedex and ups, which also use the agency for some of their deliveries, which brings us back to rates. regulators dictate what the usps
charges. critics say they are artificially low and they avoid on the hill in the past. the e-commerce deliveries by the usps, which is not funded by taxpayer money, are being subsidized by the universal service obligation this makes the usps maintain a set of requirements under congressional eating to ensure that all of its users receive a certain level of service as a reasonable price so, what now unless congress passes legislation, there had been some legislation kicking around this year none of that is going to change. meantime, packages are how the postal service is looking to reinvent itself right now. and many analysts know without the usps, even with using usps and other carriers, without the postal service, amazon would not be able to keep pace with its own volume growth. who has the leverage here? >> right >> it's a great question >> you're saying essentially
that amazon needs usps for the last mile. >> they very much need each other. one of the theories kicking around the transportation world all year is perhaps amazon is building out its transportation and logistics network. not so much to take on ups and fedex and become competitors with them, but to expand its own capacity for the time when the postal service maybe could peak and can't handle any more packages, especially given the fact it is in financial straits right now. >> did i hear you say that the taxpayer doesn't subsidize the u.s. postal service? >> no. they do not pay for direct taxpayer funding. >> who makes up for the losses that the usps earns? or doesn't earn every year >> well, that's exactly why there's been such a debate about reforming and fixing the postal service right now up they have been racking up tens of billions in losses. a lot of it is tied to the obligatory funding for retiree
benefits but if you exclude that, the fact that they have been doubling down on packages, they have been able to grow those revenues, grow those volumes and even though the profits are not as strong as is more traditional businesses, their numbers aren't quite as bad as they look when you see the headline numbers. >> i don't think it should be privatized. >> this has been a conversation since i got into the business in the 1980s. everybody is talking about privatizing the postal service the question is, what would a private company do with a large customer base like amazon if it was giving this much bulk activity, would they lower the price to goal them volume discounts? or raise the price because demand is so high? that's a business question only answered by a private company, not a private entity. >> i think everyone gets volume discounts, even though we don't get the numbers. >> if it was a private company, everybody single person won't get service because the private companies won't go the extra mile. >> and you go back to the universal service required of the post office by statute there's a statutory issue here that requires, especially people who don't have means instead of
using fedex, ups or shipping in another manner, they can still send a letter for 35cents and packages are relatively cheap. >> 35 cents? >> well, that shows how long ago you have sent a letter. >> you can buy a forever stamp, right? >> yeah. that's a big deal. >> i find the u.s. postal service is nothing short of a miracle that they can reach every single address any day of the year that could be one that you don't mess it. thank you. to the bull market, rick santelli is tracking the action. rick >> it looks like i'm not going to win the bet we won't close unchanged on tens we are currently at 2.41 we are down two on the day, and you can see the intraday of tens we lost some ground. remember, futures markets are closed cash market has 14 minutes to go if you look at the three-day, we
lost too much ground to make up with regard to the unchanged 2.44, close where had we finished off the 30th of december one year ago. if you look at the year to date of tens minus twos, that's one of the biggest years for a yield curve. we basically started out at the highs of 125 we are finishing close to the lows down 72 basis points this year if you think of what the fed has been doing, it's somewhat fixed. if you look at what is going in regards to boonunds, don't u percentages on yields. finally, three-day dollar index, down a whisker under 10% in a year where the fed raised rates three times. melissa lee, back to you happy new year. >> hold on, rick, i'm going to jump in quick here are there any songs sung at the cme at the end of the year
you don't have a choir to help you, so you may have to ad-lib if there is one. >> i tell you what, we have great green screen footage of the buy era. but people are still here, they just got a nice chance to leave early, except for the equity markets. the new york stock exchange, they keep everything on the floor because the original contracts are written on the s&p and dow futures. >> thank you very much happy new year to you from the "power lunch" team companies continue to gobble each other up in the restaurant business that's ahead next on "power lunch.
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from last year and as landry's ceo told us, we could see consolidation due to tax cuts. >> where it really helps is with m&a. it is easier to sell a company now. because if your basis is low in a company, you can truly sell it now. where before, to pay 35%, you know, i have not sold assets because i didn't want to pay 35% in taxes and so if you just go from there, 35% to 21%, you'll sell some assets now. >> we'll bring in nick and the restaurant analyst great to have you with us. will this help m&a >> i do think it will help it will help evaluations as well so how is it going for 2018, some of the evaluations have to come back down i think some of the targets will be tracked again i think the fundamentals will start to be reflected once the results are announced. so we'll have the first kind of
bump up that has helped everyone out across the board >> so the tax rate goes down, what is the typical tax rate in your coverage universe >> well, it's been 35% to 40%. . >> there is credit to account for and state and federal taxes. it is going come down across the board being the 20% or 27% rate. >> so there is that benefit and there is the benefit potentially of consumers having more money in their pockets i am just wondering when you sort of cross those two things together and take a look at the over lap, who benefits it the most of the potential factors? >> in terms of consumers, i think of doubling the deductions, you have to look at the lower income consumers, that's where i have most of my
performing ratings that's one of the primary reasons. and in terms of consolidations, who's the target and acquire well, the eye choacquire is goie private equities the space where you got to look is the fast casualty that's where it is most attractive and the most sellers would be are these restaurants that you are taking a look at targets, private equity, i am just wondering how the provision that limits the amount of interests that you can take and deduct for debt and how that'll impact lbos >> a lot of these companies have little debt or no debt if you are talking about the fast category, we are talking about the largest company that came for ipo and deadline is really big and gross targets there is really no reason for these guys to be public anymore. on a case by case, they'll go private in 2018 to 2019.
a lot of them don't have that. i don't think it is going to be too much of an issue your top pick is a candidate for being taken out of gi. >> that's right. >> they with well over a billion dollars. along of a lot of fast casual of pi ipo. a lot of these companies don't have any business being companies anymore. >> nick, thanks, happy new year. >> thank you, happy new year >> it has been several months. but, surely more people are accepting bitcoin now, right we'll find out about that. 2017 was a good year for casino stocks should you bet on them again to go higher next year? "power lunch" will be right back zar: one of our investors was in his late 50s
right in the heart of the financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor. well, thomas, you've got prediabetes. but with more exercise and a change in diet, it can be reversed. but i've tried exercising, and it just makes me hungry
here is con ses ta's play book government restrictions are relaxed and mgm will premier new properties additionally, the world's largest bridge will open conn t connecting macao to hong kong. second, the januapan is the wil card, the country is debating in opening casinos in the market. and third, las vegas gaming revenues will strengthen caesars enters 2018 fresh off bankruptcies and the local market is boom town and the big local companies will look towards non gaming company to fuel the growths or gaps led by increase competition wide. keep an eye here on convention business and athletics
down road, the raiders and football, sin city will quickly become sports city >> and also keep a close eye here on sports gaming with the supreme court if it decides with new jersey to allow sports gambling, watch for more than a dozen of other states that'll follow the big game changer. >> contessa, thank you very much a few hours left to prepare your taxes and save on them. people are lining up we'll get a live report when the second hour of "power lunch" kicks off right after this ere'ss out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.
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i am melissa lee, here is what's on the menu the confusion of the new tax just getting started will this year's market winners continue to dominate you will get satisfaction from this house, the rolling stone, key richards new york city duplex is up for sale "power lunch" starts right now >> oh, if those walls could talk in keith richards's apartment. this is the last hour of "power lunch" for 2017.
welcome everybody, tyler mathisen here. lets take a look at the market with two hours left in trading of the year. stocks in the red right now but not by much, less than a percent. for the year, the dow was up 25% and s&p 500 a 20%. your sector leader today are consumer staples and industrials and lacquers are telecom and tech check out the crypto currency. >> why did you pick keith richards over mcjagger >> john, his house is for sale in new york city >> is that right >> joining "power lunch" today
an well, on january the 1st of the most changes of the tax year ylan mui is following in washington, residents are lining up to pathos taxes we'll start with you >> it also means new headaches for companies and workers. now, businesses don't know how much they'll need withhold in order to comply with the new law. more than millions of workers may have to update their w force or fill out new forms later this year to reflect the fact that personal exemptions will be going away its members are starting to panic over what may happen here. now, the irs did try to calm everybody issuing a statement saying anticipating providing more information on withholdings sometimes in january and it will
encourage businesses to put in effect in february now there is another south standing questions as well bonuses and commissions and stocks, how will those be taxed next year? under the new law, that could jump to 28%. the irs will have to weigh in on that as well after the 1986 tax law, the irs eas eased penalties. zb guys, no word yet on whether or not the irs will do it again >> it is really to go deep or audit or any of that, they have been decimated over the past couple of years. >> what they are telling me it is all hands on deck and focusing on this problem of the resources they have. >> ylan, m mui in washington governor signed executive orders to let residents prepaid
their property taxes, capping a deduction at $20,000 a year. eric chemin is live, how much are you able to prepay or deduct is something of a subject of a debate >> that's right, the last prepayers are strategictrickline before the year ends they don't match up necessarily. we talked to the mayor of the hobo hokem here is what he had to say about that >> over 3,500 jerez departmenree
come into prepaid their taxes. that resulted in $10 million of tax submissions in just a few days alone >> here in hobokem, they are accessing however much money you want to pay or whether to asases or not it is different from yesterday we were in west chester county, it is a different policy here and we talked to the mayor of why they are being proactive for citizens against the wishes of national politics. here is what he said about that. >> it is economic warfare and we need do everything we can to stop that evivisiveness.
there is a lot of confusionconfn one really knows how much of a deduction they'll get. that's what's happening the last couple of hours of the final business day of the year >> back to you guys. >> how is the crowd there compared to the crowd at west chester? looks like the crowd is sparsed and well imagimanaged. >> it is been one line and people are getting in and out quicker. yesterday, there were two lines, one to go get your bill and another line to pay it they extended the hours the last two days so it has not been as crazy today but all day long people have been coming in and out. yesterday took them a longer process. eric chemi andrew cuomo attacked the new law.
>> there is no state in the united states of america that pays into the federal government more and gets back less than new york state we sent in $48 billion more than we get back. we subsidize every other state >> is he right joining us is sarah fagan and jerry bernstein to vice president biden, minorineither u are lawyers but i will ask the question, governor comuomo sayse will challenge of the law. could there be some ground to challenge the law or makes some trouble for republicans? >> thank you for pointing out that i am not a lawyer i don't see illegal ground here.
i did talk to a few lawyers about this and no one quite understand what that ground would be you may not like the idea b but -- >> what's the end game, not being able to have any grounds on which to stand, what's the point? >> well, the point is a poi-- i cannot imagine it is getting more popular based on a bunch of people standing in line. that's going get worse as this bill becomes more of a challenge and melissa, you made a great point funding for the irs is down 18% in real terms and employment is down 14% in 2010 they're trying to implement a big monster here and that's going to be a tough sale for republicans.
i think governor cuomo is really trying to tackle onto that dynamic. >> does governor cuomo have a point of make here a state that has a higher gdp is going to end up subsidizing those that does not. >> your arithmetic is perfect, but i bet you that most people don't know that big blue states like new york and california are contributors and net contributors to other states in the country. the blue states tend to contribute to the next one that's arithmetic and i think it is a point worth making. >> so the laws is very clear and the constitution is very clear the federal government has the power to tax and set up the tax scheme that we now currently live on including the new one. there is no i don't think any constitutional basis for this. for governor cuomo, this is
politics and people in new york are mad. republicans in new york are really angry he's standing up fighting for his people what a better way to do it than to challenge president trump, a member of the opposite party i think this is all politics >> and a new york resident, right? >> certainly >> the last time i checked he did not spend many days here this past year >> he maybe a florida residents. >> that's a great question >> he's probably a florida reside resident >> let me ask you this, we heard there cuomo yesterday saying this was a declaration of war by the red states and the blue states do you see it being driven to stick it to the blue states or the blue states merely convenient collateral damage affected by the policy that low tax representatives and senators are always griped about? >> yeah, i think it is really
the ladder the reality is to get this tax bill done, and how do get through the senate, reconciliation rules, there is only a certain amount of deficit spending that could exist in those structures this was one of the least painful places to go >> depends where you live. >> depebends where you live >> i will say there is some risks in this for republicans if you take this to california or other place where many people may not get a tax cut because of the high cost of taxation and high cost of living there, i think democrats are targeting ten congressional seats. if you are looking of the 2018 midterms, you have a bunch of republicans who are
dissolutions >> let me get your -- take it anyway you want. the fundamental argument here from the people where property taxes and state income taxes are low, they say, well, lets just pick one, iowa, for example, that $100,000 earner in iowa is paying more federal income tax than the hundred thousand dollars earners in new jersey and new york state and that's unfair >> i am not sure they should be paying more federal income tax >> because they cannot deduct the federal or income tax. >> the idea that deductions are much larger in the blue state, oc of course, why we have the dis discussion but, it is a rare disagreement
with the wise sarah fagan, i think this is an attack for blue state. if you are voted for hillary, we'll try to whack you in the tax code it is not just the pay for this is been on the republican's agenda on the antitax and the idea behind this is, if we can whack and get rid of the state and local deductions, these states are going to have a hard time, these blue states maintaining their higher than average state and local tax revenue. >> here is a concept for you >> let me just finish. >> and the reason they're going do that is because it will be harder for these states to sustain a larger government, more social welfare spending and educational spending than it would be otherwise this is part in partial, it is a long-term target >> it is a good agenda and that,
you made my point, gerald, here is a concept, lower taxes and have less government then you don't have a big of a problem as we are sitting here talking about. >> sarah and gerald, we'll have to leave it there. happy new year as well >> here is what's coming up for "power lunch." could you live on bitcoin alone? and how the price of the crypto currency made it easier to spend. >> the bge tndigstres in travels. coming up when "power lunch" returns. freaks some manners! good luck out there, captain! thanks! but i don't need luck, i have skills... i don't have my keys. (on intercom) all hands. we are looking for the captain's keys again. they are on a silver carabiner. oh, this is bad. as long as people misplace their keys, you can count on geico saving folks money.
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2017, what fuelled this massive record breaking rally. bob pisani is joining us now >> we have big themes and a lot of things went right we have a synchronized global economic expansion and moving towards record earnings towards the end of the year and low volatilely and low rates and low inflation and we had tax cuts tharks did happen at the end of the year we had a couple of wardripeinnes we got home builders and hiring
demands. electric vehicles and expansions of smart phones. and aerospace and defense on the building boom and airplanes around the world i give you the market some credit they did not buy into the whole rally. never really rally after a couple of attempts and a lot of traders lost money on that trade here how about exchange traded fund almost $500 billion. $3.5 trillion. the money keeps going in there, what's important here is, the big trend and money is going out on mutual fund and into exchange trader's fund. money is coming out of act of management and into plain. most importantly of all, in general, money is coming out of
funds that are higher costs and into funds that are lower costs. you can buy into an average mutual funds that owns the s&p 500 for under ten basis points that's less than a dollar per thousand you can buy the s&p 500 for nine basis points or seven basis points the investors is the big winner and the people that are out there in the particular business, they are getting squeezed all in. for the moment, it is the investors that are doing well. >> guys, back to you when it comes to your money, 2018, do you continue to bet on the out performer of 2017 or is it time to go in and snap up some of the tortoises. >> lets start with the 50,000 foot view what kind of year do you expect
in 2018? >> looking at what form the rally of 2018, still low interest rates and evaluations that are not terribly stretched. as we are looking out of 2018, unless any of those pillars supporting the mark, 2018 is shaping up to be a decent year we rather look at what's around and being descriptive of what's happening. as long as earning and the economy continues and rates are remaining low than economic price can move higher. let me spin that thought a little built to you and ask you how you think the market is different than they have been in 2017 >> great question, tyler
the decline is 3%. the bear did not have the opportunity to go out and scare people the last 30 years, we never had a period of like we had in 2017. so volatility will come up next year and bigger draw down. i believe you will have more volatility it is going to create more fear. it will unnerve investors. >> in times of looking at 2017 returns, impressive double digits and depending which teams you are looking at and international returns, does that put the gain in perspective in the u.s. and makes you wonder of the fundamental reasons. it describes the fundamental
reasons. it is a global rally emerging markets and frontier markets and developed international markets and that's probably a reflection of the improving global economy i don't think it is coincidence that we have seen over the synchronizing over decades we are seeing strong equity prices globally as a result. if you look across the globe, low interest rates and confidence is starting to pick up there is dare i say animal spirits starting to feel in the markets and investors. it led to price momentum and probably goes well for 2018. now, i agree with the prior comment that volatility certainly seem like a no brainer that it could spike but a little bit of fear in the market maybe a good thing having a few doses and a couple of draw down of 2018 to shake it out is not bad for the market.
>> andrew, where do i invest for 2018 >> copper and 3.5 years high that goes well of the globalize growth >> what's your best sector in the united states next year? >> well, i think look, if the market is following a consistent pattern. we are starting to see yield on the short end going up and which means a yield curve is starting to flatten the market continues to anticipate accelerations and those environment, values start to do better verses growth growth does not do poorly but values start to pick up. i think you want to look at those value sectors. the area that gets hurt and it already started that it is really the defensive dividends and oriented areas of consumer staples and things like that that pays big dividends.
those starts to do poorly. that systematic of moving into a last move of the bull market where euphoria picks up and people don't want to pay for dividends anymore. i think value will out perform growth, i am not convinced that growth will do poorly. i do think the fangs might have what a good year this year but may take a breather. >> andrew, stay warm out there in chicago and jason, happy new year to you as well. >> what had a really good year this year? bitcoin, 1400%, so far a few hours left will 2018 bring more gains she just tried again and the question is, did she reall really -- did she live rlleay well this time "power lunch" will be right back
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play book of 2018. >> reporter: with cryptocurrency capturing the attention at wall stre street, here is what to watch for if they go mainstream in 2018 more options to in crest in the cryptocurrency economy system. second, expect bitcoin rise to be challenged by alternative coins. bitcoin rapid rise given birth to over 1300 digital currencies. as bitcoin gets more expensive, traders looking for competitors for opportunities. >> it lives on chains and offering different functionalty. third, get ready for more regulations, the dscc is tasking
to find bad actors and funding terrorist activities more incidents in the coming year >> regulation can add more to the space. plenty of etf is planning to go live in 2018 it is said to be under reviewed by the scc and the proshare of etfs >> seema, you tried to live on bitcoin. >> what about now? >> one of the major differences is that most people have heard of bitcoin but very few people know what it is. >> check out some of the sound clips we got >> i don't know enough about it yet. >> i have seen it on snap chat but i don't know what it is. >> i heard about it and i don't know anything about it >> it seems like fake money
exchange some how. >> bitcoin is a club >> i did manage some folks o owning bitcoin i can only find six restaurants in manhattan that accepts it if you want to book a flight in expedia. >> you went out to queens? >> you do what you got to do >> going to the outer bureaus. >> six restaurants take it is quite impressive this quickly. >> i bet it took quite a while to accept that >> that because they are all debit cards, right >> there is this autodebit
cards. >> there are other ways to use bitcoin. >> you can convert it to a card. again, you have the transactions fee which is $50 >> it is been a lot more >> i wish it was more back then. >> well, don't we all. >> the stock market that's done well this year will the rally continue or put a commodity crush be on the way?
i am contessa brewer, south korea is holding a hong kong flag ship and its crew for violating u.n. sanctions by transferring oil to a north korean vessels the white house reportedly will be allowed to leave south korea after authorities are finished with the investigation president trump is using the cold weather forecast to knock global warning in the east could be a little coldest neeest new year's eve i
country. >> bundle up scientific says cold weather is not evidence against global warming. two teens at vanvancouver. you see a group of students trying it out for the first time >> 83% of americans spent less than $200 with 49 pearce a people plan to in in 2018 a hoet t home >> the thank yoank you. >> many commodities saw a straw end in to the year where are the best places for your money joining us now is danice
garthman good luck to the welcome back today. >> we are playing in the sun bowl and i am wearing my jersey for many things they have deny boeing >> bitcoin is now about 14,000, how much of that are you going to buy thenext year, dennis? >> i am not buying none of it next year. i am a believer in the computer technolo technology behind it >> which comes first, bitcoin 5,000,000. i don't think there is any questions about that shall i be betting pond that using my own money, no, i shall not. your favor pick is
>> if i had to pick one, we are producing, we are planting quite a bit and the cold weather that's developing in the midwest. >> if i had to only bet on one commodity, let me bet on wheats. >> what about gas and isloil. >> you got this cold weather that's putting natural gases up. they may continue but a crude oil, anything of 60 or $61 is ex trum extremely possible it is difficult for me to be bull issue you will get another run of upside down of natural gas don't be surprise if we trade five cents some of the over night deliveries, they're crazy.
>> pick a plaquer. >> if you had to pick a medal. what would it be >> i would probably pick gold and to avoid platinum, there is no demand for it given the fact that diesel fuels is going out that means we'll have a greater demand if you are going to avoid one, avoid platinum >> when we consider yield differential between the u.s., is irt tit time for wells fargo rebalanced thisser yahonext yea. >> but, i can make the case i b given coming out of europe and europe continues to rally.
i think the euro is trying to move higher and short of the japanese yen leaving dallas itself alone the other dollar, canada and new zealand and they are strong. >> thank you for having me on this year. >> oh, our pleasure. >> have a happy new year dennis. >> happy new year's to yours >> $11 mliilon shelters. >> the rock and roll legend, is coming up on power
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cam biened into o come binded into one you have three different private terrace to taking if view both north, south and east and west this wall slides open to reveal the rock n' roller secret lounge area >> another for her and a modern master bath with a steam shower. head upstairs to find the music legend family rooms encolluincl this one of a tribute to rock n' roll >> the price tag to lia total rk star is just under $11 million >> wow >> there we go >> i thought it would be more than that. >> i thought it is going to be a lot more, too. >> i hope they throw in the art,
i like the arts. >> that's right. >> the closets were empty. no clothes in that closet. >> i know. >> apple's offering a formal apolo apology for slowing down older models of iphones. >> josh lipton is in san francisco. >> reporter: tim cook's company did write an official letter to its customers saying we know some of you feel that apple have let you down we apologize there is a lot of misredundancyimisredundancunde d misunderstanding of the issue. we would never do anything to intentionally shorten the life of any apple products or degrade user's experience to drive customers's upgrades >> our goal has been making
products lasting long. it is not just the letters, starting next month, those with an iphone 6 or later will be able to replaes the battery of $29. the company will introduce an ios update that gives us yahooers visibilities. iphone older o declined battery and throttled. when questioned whether iphone fans were replaced their battery, rather than buying a new iphone >> the time between upgrades have been getting a little bit longer it is gone from 2.5 to three years. we'll see a contraction in that of this year of the iphone 10. that's a bigger risk that particularly painful impact on apple stock as people extended >> most iphone fans will not simply replace the battery for
$29. he still thinks they'll go out and buy newer models >> back to you >> the company admits they were slowing the operations of the phone because the battery were going to slow downey way and this would prolong those batteries, is that right >> right, tyler. the company pointed out this lithium ion battery declined they did acknowledge and introduce this tweet this feature of ios last year so if you have the phone with the older declining battery at peek time it will get throttled the point of that is to stop it shutting down. >> while they're trying to get you new phones, the letter that apple is making the case is
trying to extend the usefulness. >> sometimes it shuts off, right? >> if you are having shut down problems, it maybe other issues as well. at least with batteries, this is the fix that they cameup with. >> i would be very mad though, lets say this happened and i didn't know about the updates and i upgradedmy phone because of it because i did not know eck replace the battery and extend the life of my phone >> whi don't know if the law gos away >> i read the same report. i wouldlove toll see some survey work about this what's interesting about this is a high-tech research firm, ben and his team do a lot of survey works and what they foind when
th iphone customers, they found satisfaction rates i am interested how surfaces work and what defines now and rather going off twitter and using your experience to get hard data on it. >> josh, thank you >> if you adodonts update the software when you that you to. >> if you don't, it slows down a lot. >> you know by the way, pete richards, of just this year's pay, tim cook. >> he has a little bit of spare >> he gets satisfaction. >> we got the top trend of 2018, that's straight ahead. stick with us, you are on "power lunch.
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$2.2 trillion annually, with nearly 2.7% of the nation's gdp attributed to travel and tourism. 15.8 million jobs supported. and the year ahead looks even stronger here with a look at the big trends of 2018 is lola ceo paul english. welcome to "power lunch. >> surely, thanks for having me. >> let's talk, first of all, about the travel as opposed edo the hotel industry do you think airlines will continue their run of late or start to face threats in a more meaningful way like the domestic travel like uber and lyft have threatened in terms of car trouble? >> well, i think the big battle on the domestic airline front just from the low-cost carriers against a network carriers and one thing we've seen this year is the increase of the basic economy fare, which a lot of leisure travelers are picking simply because you can fly a major airline for a pretty low rate the frequent business travelers don't like these fares because there's a lot of restrictions that come with them. >> how important is that business traveler to the airlines and what changes need
to be made to keep their customer >> it's hugely important the business travel segment, they spend more on hotels and flights, they travel more than the leisure traveler, in the u.s. the leisure traveler tra l travels twice a year it's a really important segment. the business traveler, you know, we're focused on people who trac travel a lot at lola there are techniques and things they know about just from traveling so much and a couple things they look for is, one, sites that do personalization because they want to make sure that they're finding hotels, really the perfect hotels for them if you go to an online travel agency right now z a vacation traveler, what you're looking at in the results, hotels that pay them the most amount of money, not the best hotels for you. there's a bunch of other things like that that frequent travelers know about in terms of how to maximize their points, how to make sure there's a human available to help them when something goes wrong. >> in terms of the rest of the business traveler in terms of what they're looking for, you
mentioned points hotel industry, people still looking for the traditional hotels, the big brand names that they might be accumulating points for, is there more of a boutique and uniqueness that they're searching for now? >> well, i think the most interesting thing happening in lodging space is just the continued growth of airbnb and airbnb now we're seeing is used for business travelers, not just vacation travelers, but within the hotel industry, we're certainly looking at really amazing boutique hotels opening the last fur years and hopefully that trend will continue people are traveling on the road every week they want their points because if you're on the road every week for business, you want to make sure you're getting enough hotel loyalty points when you take your family on vacation, you can stay at a hotel for free. >> you know what i want, paul? i want somebody to take care of everything for me when i'm traveling. somebody to make my dinner reservations, know this is a cool restaurant to go to if i'm touring with the family, i want them to lay out on
itinerary for me of fun things to do. how can i get that >> yeah, yoiu know, if you look at business travel in the old days, everyone had an executive assistant or secretary for the department who did a lot of that work for them. increasingly today, those jobs don't exist. >> right. >> what people are looking for is a travel concierge. wouchb t one of the things we offer at lola, chat with a human, text chat, e-mail or phone, 24/7. particularly important if something goes wrong in your trip, a flight gets ccanceled, hotel fills up, it's great to have a lhuman on the other end o the phone to track that stuff for you. >> cool. thanks for joining us today. >> thanks a lot. lswz ceo bill english >> thank you very much >> all righty. "check please" is next let's get started. show of hands. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees?
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>> reinventions. >> reinventions. you know what i'm saying "hello dolly" and "wicked" has been around a long time. >> getting a big reboot coming up. >> what do you call them again >> revivals. >> revivals. >> you know you're old when you saw the original and it comes out -- sweeney todd. >> there's a new "lion king" movie coming as well. >> really? >> it finds a new audience all the time there's always a young generation. >> i fehear the soundtrack of "lion king" and cry every time one where he sings to his father, it kills me. >> i agree my "check please," i feel like i always talk about a british sport. >> you do. >> this is more a political story. a former world soccer player of the year, george weah, is the new liberian president won overnight. he got massive 61% -- 62% of the vote he played for clubs like monaco, chelsea. it was ac milan that he really made his name out of the late 1990s. george weah. as i said, he was the former
world player of the year turned president of liberia so that's -- >> the white house actually c congratulated liberia on the results of this election. >> been great having you here. >> my pleasure. >> arsenal is your team i'm told. >> they are. >> they're doing okay, not great. >> we won last night but that was rare recently. >> all right have a great new year's. good to be with you. >> happy new year. thanks for watching. "closing bell" is next