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tv   Countdown to the Closing Bell  FOX Business  December 10, 2013 3:00pm-4:01pm EST

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been outside, you know that a big winter storm is here. but that storm did not stop regulators today from turning the so-called volcker rule into a reality. and it is supposed to put a freeze on riskier outsized bets by big financial institutions. just moments ago, volcker himself praised the rule. we're going to tell you what the rule is, what it left out and how financial stocks are reacting during this last hour of trading. also another relic from the financial crisis, general motors getting a new chief executive. it is a first for detroit. mary berra is the first woman to run a major auto company, just one day after the u.s. treasury announced it had sold its last shares of gm stock, ending its partial own ownership since the 2009 bailout. this stock up about 93% over the
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last two years. there you go. and speaking of a historic first, will the newly-approved volcker rule hurt the large banks, or will it propel them forward? let's go to nicole petallides on the floor of the new york stock exchange to see how financials are reacting. we knew that the rule was coming. banks expecting it, but still, the question now is now what for these big names. >> reporter: now what. that's absolutely right. and we're seeing dow component today goldman sachs, for example, hitting a new 52-week high. we watched jpmorgan at one point today, also a leader on the dow jones industrials, you can see goldman and jpmorgan continue to hold on to the gains, up to $170 and change. citigroup,back of america pull -- bank of america pulling back, but bank of america, for example, said they prepared for the volcker rule, and that's exactly what this is about on wall street. wall street doesn't like surprises. wall street wants to know what
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to expect much like when you get the fed calls, when the federal market committee meets, right before that you see the uncertainty. that's the wildcard. so at this point now they are well aware of the fact that the proprietary trading may be squeeze squeezed if the rule makes it illegal money to make speculative bets. so it basically is tougher restrictions on these big banks overall. morgan stanley up 1 .5% right now, the banking index is just fractionally to the downside. the dow jones industrial average just slightly lower, down about 30 points, so that's not even two-tenths of 1%. so it shows you that while this has been a big rule and it was unanimously approved by the fdic and the federal reserve board, the sec approved it by a vote of 3-2, that's worth noting as well. but overall, it's done, it's what they expected to a certain extent, and that's why you're seeing these banks just hovering
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around that unchanged line and not really reacting too dramatically at this time. cheryl: still, the sector had a great year, 2012 a greet year for the financial sector, so no disappointments there. nicole, thank you very much. we'll see you in just a little bit. another big story we're following today that, of course, is general motors, the stock slight i have lower after the automaker announced mary berra will be the first female ceo of a a major auto company. here to tell us what this means for the future of gm, jeff flock. i know you spoke with him about all of this, jeff, what was his reaction, and how is he feeling about the transition? >> reporter: he's been pushing mary for a long time. he really likes her. she's a real change agent from within the company, somebody that has come up through the ranks at gm. she was running hr when he took over: he gave her a whole new portfolio and i'll tell you a little bit about her, first of
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all. just some fun facts that maybe you haven't heard about her yet. she is married, she has two sons -- a son and a daughter, they're both in their teens, i think 15 and 16 if i'm not mistaken. as i said, 51. her father was a pontiac tool and dye maker. she started herself as an electrical engineer at gm, so she's an engineer. she's a car gal. in fact, i just listened to what dan akerson had to say about her to troops today. he called her a car gal. she's also a stanford mba, so she's also a smart gal as well. look at the rest of the management team of gm. some of them are people that were in line for this job and didn't get it. but first of all, a guy who is highly respected in the new non-executive chairman of gm is a guy named, they call him tim, his name is theodore, he's the former chairman and ceo of cummins engine. he was named one of the top five ceos of the past decade along with the likes of steve jobs and jeff beltway sos.
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dan aman is the new president of gm. this is a job that didn't exist before. he has been the chief financial officer for the company, former investment banker with morgan stanley, and mark royce who was also in line, he has now got mary barra's new job which is to develop product that he loves. who's on the occupants? really only one -- on the outs? that's only one person, close confidant of jeff ackerson's. and i would add today the stock has not even taken a burp, cheryl. as you pointed out, down just a little bit. but this is in some ways earth-shattering news, and wall street does not mind at all even though this is coming sooner than anyone thought because of dan akerson's wife's illness. she has cancer, and he's going to devote his time to that. he was probably going to step down, he said, second half of this coming year. now he's gone as of january
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15th. cheryl: but certainly i know, jeff, you did speak with him, and the timing of this announcement not related to treasury's sale of their stake in general motors, because the timing was just kind of spot on. but just a coincidence? >> reporter: well, you know, i think he learned about his wife's cancer, and i think he did want to get past the sale. i mean, he really -- that really puts a bow on his whole term as ceo, so that kind of works out well. you could tell today, and next hour we'll have some tape of him at his employee meeting today, and you'll see the gravity in his voice. you know, his wife's illness is a huge deal for him. very strong family guy. and so we'll see that next hour. cheryl: all right. we'll see you next hour for "after the bell," david asman will be here with me. jeff of flock be, thank you very much. stocks taking a small dive today as the impending taper of the fed's bond-buying program draws closer. traders standing by at the new york stock exchange, the cme group and the nymex. teddy weisberg standing by on
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the floor of the new york stock exchange. teddy, what we seem to be seeing is a change in language for many of the analysts, investors saying basically the taper is a good thing. are you in that camp that the taper, we're ready for it, a good thing? >> you mean bad is good and good is bad. well, you know, perhaps it's a good thing because we've been talking about it for almost 18 months, and, you know, l until it happens, quite frankly, i won't believe the timing of it. but i think at this point perhaps it's just been factored into the market. you know, it's kind of like kicking a dead horse. and i'm not sure if it's a good or a bad thing. i would simply say that the prospect of tapering or higher interest rates because the u.s. economy is doing better not for some mechanical reason or political reason would be a good thing. i mean, short term it might hurt the market, but long term it's good for companies and,
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therefore, good for stocks. >> a lot of talk about the volcker rule, we're going to get to that later in the show, but the impact on the financial sector, are we past, in your opinion, worries about the financial sector and the big wangs, or is it hard to gauge the impact of the rule on people like goldman sachs and morgan stanley? >> i think it's very hard to gauge it now, but i would simply say this, i've been doing this a long time, i've seen a lot of changes. we lived with glass-steigel, perhaps they shouldn't have taken it away, but they did. it's basically a way to put some handcuffs on the banks in terms of their risk exposure. but the fact is, the banks are smarter than you and i. they'll figure it out, and they will make a lot of money. cheryl: companies will change how they're banking and investing as well. ira epstein at the cme, what are you watching today? >> i'm interesting how the dollar's breaking. foreign currencies rallying, and the stock market staying
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basically stable. i think we're seeing a pre-reaction already to the fomc meeting, and my guess is the market's comfortable and nothing's going to come out other than talking about tapering, but not necessarily enacting it. we may even get a rotation even after the fomc to kick stocks back to the upside. right now just rotations, but very mild. dollar down, interesting. and gold and silver came alive today. they're getting a real nice pop. cheryl: nice to see you. jeffrey grossman over at the nymex, i was looking at the oil contract earlier sitting above $98. the activity we've had in that contract over the last week or so has been really the jump that we have not seen for weeks. does this continue? we going above 100? what's going on? >> everybody wants to talk about 100. i'm not there yet. i will say this, though, when we broke out last week, that was above the 95.60 area, the market switched over to a market that has been able to be bought on
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dips on a continual basis for the last half a dozen sessions here. the market is certainly looking healthy. in fact, the only thing that tempers my judgment and wants to say that i don't know if we're going to see 100 without any new information coming in, the gas and the heating oil relative to crude oil has shown a little weakness in the last few days. those crack values, which had blown out, have really calmed down a bit and now have come in a bit. so, again, we're going to have to wait for tonight's numbers in the api and tomorrow's eia numbers to at least give us an idea of overall direction. cheryl: i think the nor'easter coming this weekend is going of to have a little bit of effect. have you seen the forecast? i'm sure you have. that's going to be the clincher, i'm sure, for that contract. guys, thank you very much. good to see all of you for the floor show. closing bell, just 50 minutes away right now, here we go on this tuesday. north america enjoying a boom in oil and gas production. so how should you, the investor, ride the wave? coming up next, we have a fox
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business exclusive with the ceo whose company is rapidly growing player in the domestic energy business as well as, get this, the wireless industry. and the federal reserve and other regulators throw their weight behind the volcker rule, but how much impact will the new regulation really have on wall street? will they hurt profitability? stay with us, we're going to cover that coming up. ♪ ♪ so i can reach ally bank 24/7, but there are no branches? 24/7. i'm sorry, i'm just really reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water.
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♪ ♪ cheryl: the u.s. economy is rebounding helped by explosive growth in the energy and wireless industries. behind this growth is a massive grid of pipelines and wire lines across and that is the business of jose -- [inaudible] his company's stock has surged more than 260%. yes, i said that, 260% over the past five years, and he is with me now in a fox business exclusive. very interesting, these sectors that you operate in. let's start with telecom. there's been explosive growth in telecom, especially to rural areas. that has been a big thing that the president has pushed through. are we there yet? have we reached the furthest part of the rural areas, or do
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you think there's still more to grow? >> i think we've made great strides, but we still have a long way to go. as a company, we specialize in wireless deployment, so we build a lot of the networks for the wireless carriers. it's a very exciting field because if you've seen the changes that have happened with handheld technologies and what you can do with your devices, we're kind of the company that builds the infrastructure and the backbone to make that work. obviously, when you think about rural markets, it's a lot easier to get rural markets up and running via wireless, so i think we've made great inroads. cheryl: okay. so the rural area's till strong for you, what about the energy sector? because there has been a bit of a, i guess, a change of direction whether it's wind, solar, nat gas, coal production, what do you see happening in that sector, and is that the most important sector for you right now with energy? >> we build wind farms, solar farms, our biggest business today is we build oil and gas
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pipelines, but we're seeing an energy boom in america. we're seeing a country that is using its own natural resources, and i think we're finally at a place where our own natural resources can fuel our growth in our future. our biggest business is we build oil and gas pipelines from those shales, from those production plays to homes and businesses. so we ultimately get that -- cheryl: but are you concerned about, for example,keystone pipeline, are you concerned about the regulatory environment? there's a lot of concerns about fracking technology in the company. does that worry you as the ceo of a company that that is your main business right now? >> i think it's a very active market, and keystone specifically is very important i think not just for the u.s., but our relationships with canada, it's very important to the canadian market. we think it's an important project, a project the president should approve. but, obviously, there's environmental risks and concerns, and i think they need to be taken seriously and
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addressed. cheryl: the president's also calling for more domestic, more must money to be put into ports, railways, things like that. how much work is out there for you if you're a player in this space right now? >> well, it's a huge opportunity and one that if you think about states and municipalities, they've really struggled through the down turn, they don't have a lot of money to invest in local infrastructure projects. i think we need to double down on that, that's where the growth comes from. that's where we get great middle class jobs that we can build on. i think infrastructure development is incredibly important. cheryl: jose, you were one of the starts of undercover boss and honored, i'm sure, to be featured on that show. what did you learn from something like that. did it surprise you as a ceo, your experience on the show and what you found with the employees that did not know you were their boss? >> you know, the big takeaway i had was every individual i worked with, their most important issue was understanding how what they did
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every day affected the success of the company. and it was different than mm expectation, but ultimately how as a company do we communicate the self-worth of every individual? what do they do, how does it matter each and every day? and i think communicating that as a business is incredibly important to keep up morale at the company. cheryl: again, i'm sure it was a fascinating journey. you're in new york, you've been speaking at the conference here in new york. big theme coming out of the conference? >> you know, i think people are excited about 2014 especially as it relates to infrastructure. i think the market's really turning, and we're excited about the next few years. cheryl: the market turning for energy production hopefully for you. >> yes. [laughter] cheryl: astounding stock performance and excited to see where the company goes next. jose, thank you very much for being here. >> thank you for having me. cheryl: closing bell going to ring, 41 minutes to go. goldman sachs in the crosshairs, should investors be concerned about the impact of the volcker rule? charlie gasparino's got exclusive new details on that
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exact story in just a moment. and you might be wondering how all this wintry weather, so much fun, right? has been disrupting travel across the country. another belt of snow hitting the mid atlantic region and the northeast today. as we go to break, the latest numbers on flight cancellations so far for this week. get ready, folks, look at that. ♪ ♪ every day we're working to be an even better company -
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♪ ♪ cheryl: the power mover of the hour, starbucks. take a look at the stock right now, it's actually trending to the downside, it's down as you can see on your screen almost 3%. this is one of the biggest s&p losers today suffering its steepest one-day loss in more than a year. here's what's going on. itt research putting out a report today, analyst steve west saying that after two very strong quarters, their data suggests the chain's momentum may have slowed this quarter. remember, starbucks, you know, just recently said they might consider franchising out in europe, so the company is looking for new opportunities. they are moving to get into the tea market, but the analyst
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report today saying you need to watch out for this stock, there might be some pressure there. well, now that the final details of the volcker rule have emerged and all five be federal regulators have voted to implett it, which firm's employees are complaining about smaller bonuses? charlie gasparino is here with the exclusive details. i bet you've gotten a lot of e-mails. >> well, you know, what we're hearing from and we want to be careful about because we don't want to blame this purely on regulations, although the ban on proprietary trading, the restrictions on even, you know, making markets and trading off of customer orders, the one firm that gets hit the hardest seems to be goldman sachs, the premier trading firm, and what we're hearing anecdotally at least is that goldman is getting, is cutting back on its bonuses. it is not paying the people in the middle. now, here's what we're also hearing, that a lot of people are blaming that on some sort of a reengineering inside goldman.
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lloyd blankfein would say there's no reengineering in goldman, we are doing everything the same way, but i can tell you particularly the you listen to a very good analyst over at sanford bernstein, brad will say that there is a massive undertaking at goldman sachs to sort of adapt -- more than sort of, adapt their business model to the new regulations. and that means smaller bonuses across the board. the people in the middle generally that used to get bonuses that were decent get i screwed the most because you want to pay your producer. so that's what's going on inside goldman sachs right now. you know, covering goldman is like reporting on china pre-opening up to the west back in the '60s and the '70s. used to be china watchers -- cheryl: they're secretive. they are. >> even as a public company, it's a very secretive firm. they don't really level with analysts very well. you know, if lloyd blankfein's going to do interview, he'll do puff piece, softball interviews.
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they don't liking being asked te tough questions. but talking to people anecdotally, there is something going on here where the firm is adapting to these rules, and the impact right now is being felt in the middle of the firm where people are complaining about not being paid. and if they could, they will be leaving the firm. you know, this may last a couple weeks, or it may last -- excuse me, a couple years, or it may last for, you know, ten years. i can't tell you. i do know this, there's a lot of talk about whether goldman can -- they need some of the restrictions of dodd-frank, the volcker rule by giving up its status as a bank holding company. remember, it's considered a bank. cheryl: under the fdic, yeah, financial crisis. >> i still think that is a very difficult thing to do. i think, you know, even if it was no longer a bank holding company, goldman has a small bank, and what the federal government did post-financial crisis, put goldman in with
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banks so they have access -- i really think the capital requirements that would allow them to do prop trading would be so onerous that it wouldn't make a difference. cheryl: it doesn't make sense for them to actually give up the bank title. >> i think their cost of capital would go up dramatically, not only would they lose access to the bank -- to the fed window that investors who lend them money, their creditors would demand more for capital because they wouldn't have that backstop, and not only that, i think the capital requirements are too onerous. that's where we are right now. it's an interesting time to see goldman sachs. this is clearly -- listen, the stock is up today, okay? maybe investors on first glance like this. they think goldman's going to figure out ways around it. i would say this is a stock you have to be careful about. cheryl: smartest guys in the room. >> allegedly. [laughter] cheryl: charlie, thank you very much. closing bell going to ring, 33 minutes to go right now. as wall street braces for the impact of what's happening with the volcker rule, we're going to get some reaction from our panel. they're going to tell us what they think the likely scenarios
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♪ cheryl: twitter is flying to new highs after the company unveiled new ways to monetize the business. good news. the social media stocks have fallen. let's go to nicole petallides and the floor of the new york stock exchange for more. >> reporter: we are standing
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at the post where twitter trades. this is where the big ipo was in early november. let me show you right now. right now at 5231, 5258 was the height of the day. hit an all-time high today, which is a big deal because on november 7th this was a $26 ipo. it actually moved up about $50 then sold off below $40. everyone started to get worried. taking a look as of the other social media stocks such as facebook and linkedin, most of those seem to have seen some up arrows including groupon. there have been new rules where a new feature, tailored audiences designed to help advertisers find messages for potential customers on the twitter network. and that ultimately is good news for twitter and as a result investors. you're seeing it move to new highs. cheryl: thank you very much.
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well, after three years in the making, three years, regulators today approved the final draft of the volker rule. it is part of the dodd-frank perform a net preventing another financial crisis. naturally there are two very different points of view. reformers say the rule will make the financial system safer and protect bank deposits. critics say that proprietary trading did not cause a financial crisis and believe new rules could actually hurt the broader economy. so right here let's bring in our panel to weigh in on this school of business professor and economics to the chair and heads director of financial research. first to you. the final version came in, but you are pretty negative on it. >> that's right. it is and not very good solution to a non problem. proprietary trading did not cause the financial crisis of 2008. it was fundamentally bad investments in mortgage-related securities with not enough
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capital by very large financial institutions that were also short funded so hat the short term liability holders when they got nervous could run. cheryl: i have heard this five times today carried less still could not have saved it. >> absolutely not. not a chance. cheryl: the rule bans prop trading. there are two definitions. market-making buying, selling securities to fill client needs to keep markets liquid and entering trades to reduce the risk of lawsuits and other assets held by the bank. these are not very concise definitions. give me your take. will banks find loopholes in this? lawyers are pretty smart. >> they are pretty smart. there has been a lot of leeway. know about this since 2010 demand the implementation is until mid 2015. the banks are slowly working on this. it is a little problematic, plan
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inventory. so the extent that the volker rule actually makes client trading more restrictive it disallows them from providing capital to these client trades. if you restrict client trading you are restricting plan flow and potentially making markets -- cheryl: define the client, a u.s. company, i'm thinking to myself, i'm going to a japanese, european bank. is that kind of your prediction? >> and regulatory arbitrage to the extent that you restrict u.s. banks from client trading. there could be flow of trading volume to asian and european banks as a byproduct of what could happen. cheryl: that has been the concern all along. it is going to actually limit access to credit. the cost will go higher and it will hurt the overall liquidity in the banking system. is that still a fair concern? >> the address is not getting to grow in the streets of america, but at the same time this is not a good rule.
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it makes these activities either more expensive or just impossible. and it drives them by their offshore coming into the shadows somewhere, you know, it is just not a sensible way to proceed. regulators did not have a lot of choice because this is what the legislation in 2010 said they needed to do, but it took them three years, a lot of uncertainty. it's very difficult to figure out what is really hedging, what is really market making. cheryl: you're saying that the jury is out. timeline, do you think. not that -- just on with charlie gasparino saying goldman, we don't really know what they're doing behind closed doors. >> they will figure it out to make modifications. it is not a good thing for them. it is going to make their operations more costly, but it is not going to drive them to the wall. cheryl: obviously with the big banks you have concerns that
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there will be issues for the bigger banks, but there are some winners in maybe. >> i think the stay straight venues to my system and nasdaq, cme, as you make client trading more restrictive they will push it on to the technology venues, i.e. the put through exchange menus. nasdaq is a big bond trading system. if you can't trade derivatives and bonds in the over-the-counter market it will push them on to the exchanges themselves. you will see market share gains, and largely the new york stock exchange menu of gains in share, and the nasdaq will do well. cheryl: a very interesting take. a broader question. you know, overall the you think that the government at the end of the day encouraged all the rest that we had back in 2008, the same government that is now writing this regulation and approving this? >> i think the story of encouragement, yes, we have general policy of encouraging housing and housing finance, for
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sure, but i think the specifics of the crisis of 2008 really took government regulators by surprise. i think in late 2007 they suddenly realized a mile, my gosh, there are very large, trillion dollar asset finance substitutions. they are very thinly capitalized and very heavily invested. in they are short funded, so they're easy to run on. this was, i think, a surprise. cheryl: market-making -- market-making is a legitimate business. i understand that prop trading has become this evil word in new york especially, but at the end of the day does a black rock benefit from this? >> over time if they find a way to internalize plant treading they could because essentially some of the client treading been used by goldman and morgan stanley become more restrictive. i cannot wait added to the market. maybe i will try and transact directly. so it could be a byproduct of more restrictive trading, less
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capital. the big institutions of the world start trading amongst themselves. cheryl: and we will know the economic effect of this the middle of next year. thank you very much. thank you. great to have you. wonderful discussion. appreciate your being here. it may be cold outside, but you could have a chance to warm up tonight. the victorious secret fashion show will air tonight on cbs. 10:00 p.m. eastern time. it will feature your favorite victoria's secret angels including lilly aldridge, country on a limb as well as musical acts fallout boy into a sweat. we are also going to get a look at a $10 million diamond encrusted brought which will be on display, and a pair of 3-d printed angel wings. cvs is upping star ratings bump, expecting as many as 15 million viewers. last year over 10 million people tune in for the annual show, and it was one of the top 19 television for women to be
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between 18 and 34. michele has aired each year since 2001 and cost upwards of $12 million to produce. we will see. closing bell will ring. nineteen minutes. stocks slipping a bit. ninety-one during how to protect your portfolio from any market turbulence. coming up next we will talk to a money manager who says you should be thinking of the box. we will explore what that means. remember the scandal over the to sheer yoga pants at luminous? neither is a huge shakeup. we will tell you who is n and who is out in just a moment. tñ
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♪ cheryl: well, just months after the scandal over to syria go pence, the company is announcing a huge shakeups. jo ling kent has our report. this has been somewhat of a saga. what is the latest? >> reporter: a downward slide. with the old and then with the new. today after a tough year for the of the apparel maker, stepping down as chairman of the board effective june 2014. he will continue to hold a seat on the board and will be replaced by michael casey. this is seen as an attempt to move on to a new after the misplaced comments responding to complaints about the famous dance. tell the reporter that some women's bodies just don't work. they don't work for women's bodies. also announcing a new ceo. he replaces kristine day in january. she announced in june she would depart when a replacement was found. president of shoe company and
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former ceo of burton snowboards, regarded by analysts to be a promising figure to turn around the broken image. this is badly needed despite the fact that wilson attempted to apologize in a short video after public outcry after what was described as basically fat shaming and if investors are hoping noon leaders would take some of the weight off of the stock, they were right, but only momentarily. now the stock is down almost 2%. cheryl: when i say sauger, it is because initially there were reports of manufacturing issues overseas. then you have these comments from him. also you had a second report, recently in the last three or four weeks about it being a problem. it seems to me it is the manufacturing, maybe not -- >> and i think that with new leaders coming in they will have to reassess and look at exactly what their strategy is, sourcing these materials, especially
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given that many women and men pay so much money just to get there hands on his brand. cheryl: biggest fine ever had with the tv producer. i sit with it. >> i'm on the fence. cheryl: they're great. jo ling kent up in the newsroom. thank you very much. fourteen years in tv, that was the big five with the producer. with all of the taper talk in fiscal uncertainty, where should you be investing your money? our next guest has over 11 billion in assets under advisement and says it may not be where you think. we are talking about the emerging markets and other overlooked areas of the economy the baby missing out on. let's bring in conversion of advisers ceo. want to start out with the emerging markets because year 2012, 2011, there was some pressure. seems like their is a bullish tone for these investments, more so than u.s.-based.
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>> sure. we do a lot of work on valuation and momentum. evaluation is certainly in place because they are very, very cheap. emerging markets usually traded 15 times earnings. and then the momentum peas, they just started the up trend. when you combine those to our shows a you end up with an average return of or 15%. we have cheap assets that are just turning the up trend. cheryl: let's get more pacific. where would an undervalued emerging-market b? >> probably the most of the value right now is brazil. china and india are very attractive, but brazil is the most undervalued. it is the one that people are staying away from the most. that is really where the opportunity is. a lot of chatter about sub-saharan africa as well. >> those are some of the frontier markets. those have a lot of room to move . we prefer is stay with kind of a
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bigger emerging markets, india, china, brazil. cheryl: and you're right. it is more of a risky opportunity. you are looking for a market pullback. is that taper baster do you think that maybe a run-up we have had, which has been incredible, double digits for 2013, maybe this story is kind of falling short? >> well, i think the markets clearly are long overdue for a pullback. although i don't think we will see it in the next month or so. you still have the fed pumping 85 billion a month in the market. december is one of the strongest months in the market during the year. when the market is up more than 10% to the end of october, december finishes posit a super some of the time. january is also strong. of the coup will see it in the next couple of months, but the market is getting a little overextended which is why i suggest your viewers look outside t, emerging markets, international stocks, commodities because those areas
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that have not really moved as much as the u.s. market. cheryl: let's get specific because utley of our viewers are watching their looking for ideas . the vanguard etf, you are recommending etf, a nice way to spread the risk in target a group called other energy or in the emerging market. what is your favorite? >> if i had to pick one up with stay with the emerging markets. e.w. know is a nice etf to participate, but there are others that focus on baskets of emerging-market stocks which is where i would encourage your viewers to look. cheryl: i want to hear about your best and worst calls for 2013. where did your score and ready to lose? this is the moment of truth. >> sure. the best pick was probably u.s. small-cap stocks. there were up 36 plus%. the worst fate would have been broad based commodities which were probably down about seven
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or 8%. i would encourage your viewers not to chase returns and go after those two asset classes are not likely to be the best and worst performers. it might be the opposite. commodities of the best in small cap is not. cheryl: i was just going to ask, what do you think about the small caps base for 2014? because large camps has had a heck of a run for this year. expecting that there could be some opportunity. >> i think small caps still have room to run. we do a lot of work on a valuation momentum they have bus started the downtrend. if they're getting closer to the end of the run. not that they could not run for much longer, but small-cap is probably the most expensive part of the market right now. cheryl: really quick to want to ask you, energy sector. 2014. >> we really like the natural resource base. has done well faugh.
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there is still a lot of room left to move. the natural resource base is definitely an area you want to look at it. cheryl: some great ideas for our viewers. i kind of hope you're right that emerging markets take off next year. it would be nice to see those returns. fingers crossed. convergent wealth advisers ceo. i'd. closing bell in six minutes. that means six minutes to david asman. coming up in the next hour, david will talk to children of the cftc. always so animated and great to talk about regulatory issues. guess what, you will be talking about the volker rule. all be right back. stay with fox business. [ male announcer ] what if a small company
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cheryl: okay we're just now two minutes away from the closing bell. want to take a look at some sectors moving today. in the s&p 500 the sectors actually moving to the upside, materials, consumer discretionary doing well. that is it. if you look at consumer staples, utility that is group is down as well as telecom. kind of a sector day. we're ending the day into negative but obviously we had such a nice day last friday. yesterday we actually eked out, david asman, eked out a little bit of a gain. it has been back and forth. the market is very solid today. not big moves. david: it is surprising and shows you the strength of this bull market that even financials which you would be thought would be crushed today with what is happening with the volcker rule and all the extra expenses that will impose, nevertheless
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financials are doing well. let's go to nicole petallides on the floor of the new york stock exchange. the vix is up and up over 14 or at least it was, let's see, still up over 14 but there is no sense of panic here, is there? >> no and you know what is interesting about the vix? i sense traders are anticipating that fed will cut back bond buying. whether it is by 10 billion or 20. but the volcker rule today didn't stop those financials. david: it did not. >> goldman sachs at new highs. jpmorgan holding on to gains, right. cheryl: we're boosting a lot of energy stocks. >> we saw oil move in higher and took the energy stocks up along with it. names like northern oil and gas to name a few. david: gold way up too. internet stocks, facebook, netflix, yelp. they're all up, why? >> they're all looking great and twitter hit a new high. the whole group did well.
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twitter with a new tool that allows for precise ad targeting. [closing bell ringing] david: they're cheering on wall street regardless. it is in middle of some bull market. charlie rose and some other folks pushing the button. cheryl: nasdaq, david. technology chairman ceo will be joining us. david: he is. so is the ceo of toll brothers. we'll hear what is the latest from the stock market. what i'm looking forward to, he is from the cftc he will talk specifically, been quite critical of the way the volcker rule has been rolled out but voted for it as member of the cftc as one of the commissioners. cheryl: always great to talk to bart. we have a lot of great guests coming up in the next hour. but we want to bring you the front page headlines. general motors promoted mary barra as first woman ceo of the automaker. dan akerson is leaving to take care of unfortunately his sick wife. david: regulators

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