Well bring you the latest on where things stand on that. And america loves apple again. Huge sales of the this weekend of the iphone 5s and the 5c. How did wall street get this one so wrong . The stock is up more than 4 since the september unveil of that product and up 8 in just the past week. Sue, meanwhile, is at the nyse and lets check in with here. Good to see you. Noticeably Stronger Security today because of the breaking news we start with from kenya. The kenyan army is attacking terrorists inside that nairobi mall. It has been three days since the initial attack on the crowded westgate shopping center. That mall right now is on fire. Eyewitnesses say it caught fire as the army tried to storm the building to kill or capture the remaining terrorists. The government says 62 people were killed in that attack by al shabaab, a group with ties to al qaeda. This is going to be video of what it looked like inside that mall saturday when the terrorists began that horrific rampage killing people store by store. You obviously just heard the gunfire at close range in the background. Still unclear how many hostages. The sti today because the u. N. Is meeting, the president going to be making a speech in the city, even the situation. Attacking what they call in the par lens a soft target. It is terrifying and your word horrifying. Back home, there is the countdown to the shutdown. There you see it, seven days, ten hours, 57 minutes 32 seconds the economys fate at stake, seven days to go. Will Congress Reach a deal to prevent a Government Shutdown . Our chief washington correspondent john harwood live at the white house. It doesnt sound like either side has softened one bit in their positions. Maybe we shouldnt expect it with seven days to go. No softening publicly and there are no real negotiations going on, but were in a little pause in the min new wet that plays out between the house and senate. The house passed their bill extending government funding on friday with a provision that would defund obama care. They know thats not going to become law. Now the senate has it and they have got to go through the procedural hurdles that the senate requires to accept the bill for debate and then accept it for a final vote. Both of those are subject to filibuster and ted cruz said hes going to do everything he can to try to drag it out. The if both of those are filibustered the motion to go to the bill and pass the bill, extend all the way with the maximum amount of time the senate would be voting next sunday to pass a government extension. It would land back at the house late sunday or monday, and so one week from today, the house would then have a decision if all goes according to what everyone expects, on whether or not Speaker Boehner will put on the floor and then the house will pass an extension of government funding to avoid a shutdown without the obama care provisions. As an aide to the speaker told me a couple minutes ago we have to wait for the senate to run out the string. John harwood, thank you very much from the north lawn at this hour. Defunding obama care is, as john pointed out, one of the central topics in the budget battle. What do average americans think about that prospect . Our senior economics reporter Steve Liesman here with the exclusive results of our cnbc all America Survey. What does america say . They say no to defunding, tyler. Our cnbc all America Survey, 800 around the country finds opposition to the defunding the new Health Care Law becomes very strong opposition if it means a Government Shutdown or debt default. Here are the numbers. First if you want to defund it, 44 say no, 38 say yes. Watch what happens when we ask people do you mean defund it even if theres a Government Shutdown, just 19 are left of that 38, whereas 15 go away and say not if it means the Government Shutdown. 18 a pretty High Percentage are unsure for major Public Policy question. Now what were going to do is show you what happens when we fold in those people that say dont do it if it means a Government Shutdown. The opposition grows quite a bit. 60 to 20, three to one right there. Three to one right there. 359s to 19 with 22 unsure. Now lets go back up to the top line and ask on the general question defund health care. Men kind of split. Women much more definitive. 47 to 33 no, do not defund health care. Do not defund the health care rule. Move on and show you the different political groups here. If youre a gop person that supports the tea party, 68 say defund, 65 say of the tea party moving to the independents, 40 and theres all adults there at 38 . We showed you that figure earlier. Whats interesting about this graphic the gop folks who are nontea Party Supporters are much closer to the democrats than they are to other people on the lefthand side of your screen who are gop tea Party Supporters right there. The regular gop all gop, is 51 . How about the difference between those nontea Party Supporters versus tea party, theyre closer to the democrats right there. One other thing i want to show you here is how that falloff happens there. You can see right here. 45 of tea Party Supporters say defund it even if it means shutdown. Go to the right and look at the democrats. You can see many, many more say dont shut it down, dont defund obama care. Thats what that shows you right there. So well have more of the exclusive results from our all America Survey thursday morning on squawk box. We gave you this early because of the news on friday. Lets talk about all the fed chatter out there. Mr. Dudley speaking. You have news on governor lockheart. President lockhart from atlanta says its hard to see hitting conditions for the october taper for a taper in the october meeting. The economy is unlikely to change much by that next fomc meeting that is next month, tyler. He worries about the impact of government budget battle on the economy and says the taper in september was a close call. Not to taper. October the next meeting. When is the one after that . December. Thats the last one of the year . Thats the last one of the year. Do it by then probably bernankes last meeting as well. Probably bernankes last meeting. Thank you very much. Sue, down to you. All right. Guys, do you hate to be being told to told off your cell phone, ipad, ereader, new rules nor devices on planes and phil lebeau is in chicago with the details. Hey, phil. Well probably get these new rules the proposal at least by the end of this month. The faa has an Advisory Panel looking at this issue for a number of months and theyre close to making some recommendations. Essentially what theyre doing is reviewing what the rules are in terms of use of electronics on planes, particularly takeoffs and landings. Thats the area where theres most of the problems and basically going to call for a relaxation on the restrictions. So what will be allowed most likely and what will still be banned when youre on the airplane in terms of electronics. Most likely whats going to be allowed, listening to ipads, ereaders, watching downloaded videos and podcasts. Thats probably going to be okay. In the future, if youre thinking about sending an email or a text or using wifi, taking off or landing thats likely to still be banned. The faa expects to maintain the ban on inflight calls from cell phone. Theres been discussion for some time, should Airlines Allow this . The faa will step in and say youre not going to be able to do that. The airlines are concerned about devices interfering with plane instruments. The bottom line is this, tyler and sue, we will see a relaxation here but youre still going to have some restrictions in terms of personal electronics, mainly i comes down to whether or not theres a signal out of that device. Thats what the airlines remain concerned about. Right. You know what, its progress. At least we willble able to use a few things. Profit estimates for the industry are being cut. Why . International air transport Association Says its likely going to see an 8 decrease in Global Airline profits this year. Two reasons, some weakness had in parts of asia, not china, but other parts of asia and slower demand for freight traffic. And thats been a bugaboo for the Aviation Industry for several years. It sure has. Phil, thanks so much. Appreciate it. Ty, up to you. All right. Apple a big stock to watch today. The tech giant knocking it out of the park with its weekend sales figures for its new iphones. Almost doubling estimates. Apple raising its revenue forecast. There you see the shares up almost 19 a share or 4 at 486. 33. Josh lipton in san jose with the numbers hi. Hey, tyler, apple announcing record sales, 9 million of its new devices accompanied by 200 million downloads of the ios 7 platform, its operating software, all good enough for apple to give us guidance. Investors can expect total Company Revenue for the fourth fiscal quarter to reach the highend of previously established guidance. 34 to 37 billion Gross Margins also near the high end to 36 to 37 . Two differences for this launch to keep in mind. One apple selling two devices, the 5s and 5c and china, the first time one of the launch countries. Many analysts surprised by these results. They were looking more for 5 to 6 million units. Rbc covers apple, two reasons he says, nobody thought the 5c would sell that well, not too different from the 5 or so the street thought. As for the 5s, there were real supply constraints here. No preorders. Analysts thought that would limit sales. The bottom line, they say, worries about the declining revenue and eps next year. They are off the table. Now the question, he says, just how much can they grow the bottom and the top. Apples broader strategy focusing on profitability rather than market share. Seems to be working at least for now. Tyler, back to you. Interesting story. Josh lipton, thank you. To dominic chu for a market flash. Some of the component suppliers for apple moving higher on the sales success of the apple 5c and 5c. Serious logic, skyworks all to the plus side. Back over to you. Do a littlep analyzing this and that. Jj burns is here. Welcome. Hes president and ceo of jj burns. How did you figure that out . President of jj burns and company and your name is jj burns. Thats thinking. You guys made me too popular here. Lets take a look at apple. You know, we have a downgrade on the stock, downgrading shares of apple to hold from buy. They cite valuation stating forecasts are still within guidance so where do you stand on apple on the back of those numbers that josh was describing . I do agree with them. We own apple and we would be certainly buyers of pullbacks but keep in mind that apple has a lot more penetration into the market. Theres less than 50 of the world that actually has smart foensz or handsets in general. Only like a 15 penetration apple has had. If youre a mobile carrier, you want to keep your apple stock on the shelves. The reason is, is because the apple type of product has a very sticky method of getting to its customers. On top of all that you got 11 times forward earnings multiple going forward. Youre not paying for much growth at all. Buying on a pullback here is likely a good investment. You do not quarrel with the downgrade to hold from buy . I dont. I dont. Apple has made quite a bit run here. I would not be selling my shares. I might not look to add to more of them. Unless theres a pullback . Exactly. Blackberry the other stock to watch in the handset market. Maybe even in technology. Sending out a warning to the world last week, Second Quarter earnings not looking so good. The company says its going to post about a billion dollar loss. That would not be good. It is planning to cut 40 of its work force and concentrate on the Enterprise Market saying byebye to consumers. Analysts upgrading the stock. Credit suisse raising its call to a hold. It cant rule out a takeout. The stock down nearly 20 on the news from last week. Jj where do you stand on this one . This is pretty much in a des pile from our perspective. The thing about blackberry youve got a large Shareholder Base but no one in corporate world is looking to add blackberries to the corporate marketing in technology. Thats number one. Number two, youve got more employees that are being let go and thirdly, analysts are now jumping on board with blackberry to determine the sum of its parts. Would it pay for us to sell some of its parts or could we take it private, et cetera. That might be a reason why Credit Suisse might be upgrading it. It could take a little bounce up. There you see 822. One wonders in a breakup, a takeout, what would it go for . Sure. Who knows, 10, maybe more, who knows. Not a place to speculate right now. Not for the longterm investors, the average guy watching our show. Well have you back in a little bit. Sounds good. Sue, down to you. We have other big tech stories were watching today as well. Microsoft unveiling a new surface tablet. Plus, believe it or not the nasdaq up 25 this year and then internet stocks have really surged. Should investors buy or bail . Then the ipo fever hitting the markets. Were on track for the busiest september since the year 2000. Cnbc reporters are all over these big stories. Well begin with seema in new york with microsofts latest tablet. Hi, seema. Microsoft targeting the consumer at home and business professional with the surface 2 tablets. The surface 2 which you can see here as well as the surface pro 2. First, access to Microsoft Office suit. Second the ability to run two applications at the same tomb. You can watch a lecture online and take notes with the companys integrated dual screen. Third is the accessory, the insertable keyboard that has access, that also acts as a battery cover. This is microsofts attempt to stay competitive in the tablet market which is dominated by apple and samsung, although with access to 200 gigs of Cloud Storage and fast micro Processor Microsoft is saying this is not just a tablet, its a mini laptop. Back to you. Thank you so much. Back out now to josh. The internet stocks have soared recently. Should investors buy or bail . Its been a great 2013 for internet stocks. Look at some of these moves. Facebook up 70 . Priceline has soared 60 . Yahoo has surged 50 . Now analysts chalk up the moves in part to q1, q2 results which were mostly positive. So which internet stocks are still buys . The team at specific crest did a deep dive, among their favorites, amazon, they say upside drivers include the growing mobile and digital ecosystem, faster delivery times. Ebay, they argue ecommerce shares continue to gain and priceline which they call the best position travel company. They talk about its focus on international and hotels. Stocks where they see risk, though, they would include facebook, yes a great q2, but they think valuation with will limit upsides and comps tougher in the second half and in 2014. Back to you. Thank you so much. To sheilas at the nasdaq with a look at whats been driving this ipo optimism. Hey there, sue. The ipo market is hot hot hot. In fact, year to date we have seen 140 Companies List their Companies Going public. That, in fact, beats all of 2012. Were on track to do about 200 ipos this year which would put us back to the 2007 predownturn level. Really big action in the public markets. For the why . Nick from Renaissance Capital says its a one, two, three punch. The market momentum and rally and companies and investors want to take advantage of it. The average ipo this year has returned 38 so beating the overall market. Investors want a piece of that action. Finally the jobs act out there. Helping it make it easier for companies to file. Here at the nasdaq we actually have 11 ipos that will price this week. Tyler, all eyes are on this one Company Called pattern energy. If you can believe it its one of the First Wind Energy companies to go public. So perhaps a new wave of ipos coming. Sheila, thanks very much. About a week away from the end of the Third Quarter and fears are growing about the health of bank earnings. Kayla toush has been looking at the numbers and can tell us more. Kayla. Tyler, analysts arent going to wait until the end of the quarter to start sounding the alarm. It becomes clear trading volumes plummeted and unsalvageable. July and august greater nothan normal activity. Spreads on existing bonds fell two and yields rising. Equity trading not hit as hard as expected to be down as well. Jpmorgan analysts say revenues will be down 10 as a result. Atlantic equities says it could be down as much as 20 and today it lowered its estimates for Goldman Sachs, Morgan Stanley and citigroup. They made a similar cut to Morgan Stanleys full year estimate last week. Analysts had been bracing for weakness at the banks where executives warned revenues will be far lower than last year at jpmorgan and wells fargo, lower by around 30 . Thats because Mortgage Origination has been grinding to a halt. Tyler, this onetwo punch for the banks, its not going to be pretty for bank earnings. A lot of investors are trying to get ahead of this and were seeing selling. Trading and mortgages. Exactly. Sue, down to you. Ty, the kenyan hostage crisis continuing a third day. Armed militants holding those hostages in nairobi. About 60 people have been killed and the militants are said belong to an Al Qaeda Linked group. Nbcs ron allen live in nairobi and has the latest on the standoff and joins us now. Ron, over to you. Good afternoon, sue. Yes, the kenyan government for the past hour or so has been claiming they have the situation under control and they are in control of all the floors in the mall, they say. However, theres been no evidence, no lease of hostages, not seen what has happened with the gunmen. All weve seen throughout the day is episodes of gunfire and explosions that have changed the dynamic of this entire situation. There is still a cloud of smoke above the mall thats been there since this morning when several explosions, four or five or six in succession, went off here with a thunderous force. That was followed by hails of gunfire going back and forth of different directions. Apparently the hostage takers, the gunmen, are hold up in some part of the mall. Its unclear exactly how many are still there. The government indicated as many as 10 to 15. How many hostages are still there. What their condition is. We believe there were as many as ten who were still there as of this morning. Throughout the day, its just been a lot of back and forth between the government and the militants. The al shabaab fighters who claim responsibility blaming the other side and saying they, not the other side, have the upper hand. For the last couple hours or so it has been relatively calm here. Weve seen more evidence of troops moving into the area. Its dark now so its hard to see down in that direction too far. The mall is about 300 yards in that direction and were protected by a couple of a number of other buildings which is why weve been able to view whats been going on from this position. The kenyan government has said that they were determined to end this standoff. They said that yesterday. They werent successful. Its unclear if theyve been able to end it tonight. Back to you. All right. Ron allen, reporting from nairobi for us. Lets go to Steve Liesman with more headlines on fed speak. Steve . Thank you, tyler. Dallas fed president Richard Fisher saying the fed has hurt its credibility with its decision last week saying he, quote, disagreed with the decision of the committee and argued against it and doing nothing at the meeting increased uncertainty about the future. And called the credibility of the feds communication into question. Fisher, of course, a longtime opponent of the feds policy. Does not have a vote or did not have a vote, doesnt have a vote this year. But clearly would have voted against the decision on this past wednesday, tyler. The surprise decision not to taper. Back to you. Steve liesman, thank you. Its the new frontier for real estate. Diane olick whats going on . Its crowd funding, tyler. Some say its bringing democracy back to our neighbors. Others say its the new wild west. Well tell you why coming up next on power lunch. announcer at scottrade, our clients trade and invest exactly how they want. With scottrades online banking, i get one view of my bank and brokerage accounts with one login. To easily move my money when i need to. Plus, when i call my local scottrade office, i can talk to someone who knows how i trade. Because i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Awarded fivestars from smartmoney magazine. Welcome back to power lunch. Blackberry shares are again halted for news pending. The shares did finish before the halt down well call it about 5. 5 . Again, bbry, blackberry shares halted. No news yet but we know its a news pending situation. Tyler, well bring you more details as they become available to us here. Back over to you. All right. Thank you very much. Keep an eye on it for us. The countdown to christmas is on. 92 days ten hours, 34 minutes, 53 seconds. Walmart announcing it is hiring 55,000 Seasonal Workers for the holidays. Worlds largest retailer transitioning tens of thousands to fulltime position. Its an important season for walmart. The company has missed wall street estimates in recent quarters because its core lower Income Customers in the u. S. Have been battling high gas prices, uncertainty over jobs and stagnant or falling incomes. Walmart shares up 40 cents right now, half a percent at 76. 23, up about 11 so far this year. Sue . Ty, starting today, for the first time, private Companies Including hedge funds and private equity, can solicit Investment Funds from accredited investors or those with a net worth over 1 million. That will mean ads everywhere. Even right here on cnbc. And for real estate, it could open up a new wild west for crowd funding development. Cnbcs real estate reporter diana olick is live in washington with more on the story. Hi, diana. Hi, sue. Its already happening here in d. C. s eighth street corridor northeast. Its a transitional neighborhood which still has a ways to go. Areas like this are not exactly popular among large investors, small local investors, though, know the potential but theyve been largely cut out until today, while crowd funding real estate is about to get easier. Public will help you build your real estate. Reporter ben miller has been crowd funding commercial real estate through a tricky exemption in the law. His company fund rise, brings small local investors to projects like this soontobe d. C. Restaurant and market. It was limited to locals, but starting today, he can market to investors anywhere. Over time, you realize the public is an incredible asset, democratize investment not only in real estate you not only get capital but a social power that wasnt possible before. Reporter while fund rises investors have paid as little as 1,000 for a share in the building and revenue, the rules allow National Marketing only to wealthy investors, but that restriction is set to disappear soon too. Youre going to see ways to refinance the money, sell the property, get distributions from cash flow. I mean you become like a landlord, like playing monopoly. Reporter it may be like monopoly but investors are playing risk. Its risky because there are possibilities of scams. Reporter critics argue as restrictions disappear and Real Estate Investing becomes as easy as clicking on a book on amazon, some people might not get what they paid for. Theres no guarantee that someone cant raise money and never actually see anything any construction take place. Reporter fund rise is not the only player in the game so far. We also know of prodigy which is working on a development in downtown manhattan. Also realty mogul and several others as the regulations come off, more are going to get right back in with ef a goat men plenty weve got plenty more of this online. Thanks so much. Its out with the old, in with the new. Nike, Goldman Sachs and visa added to the exclusive dow 30 club. All three suffering losses today with Goldman Sachs leading the way down 2 1 3 . How do you play the new dow members . Well talk about that when we come back. [ female announcer ] its time for the annual shareholders meeting. Therell be the usual presentations on research. And development. Some new members of the team will be introduced. The chairman emeritus will distribute his usual wisdom. And you . Well, youre the chief life officer. You just need the right professional to help you take charge. [ male announcer ] 1. 21 gigawatts. Today, thats easy. Ge is revolutionizing power. Supercharging turbines with advanced hardware and innovative software. Using data predictively to help power entire cities. So the turbines of today. Will power us all. Into the future. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Im sharon epperson. Trades coming in the gold. Were looking at gold prices ending down about 5, around 1327 an ounce. We are off the lows of the session and traders have been watching a lot of the fed talk very carefully to see which way its going to go with the taper. Back to you. Thank you very much, sharon. To dominic chu who knows more about why blackberry was holding. We know now because they bettered a letter of intent, agreement with fairfax financial holdings. This company oenwns about 10 o the stock here. A possible deal involving fairfax financial, a huge shareholder. With blackberry itself. Details coming out a possible deal size could be in the range of 4. 7 billion. These headlines are coming fast and furious. What we know, fairfax financial, a large shareholder in blackberry, into an agreement, a letter of intent, agreement with blackberry, on what could be a possible takeover here. The size could be about 4. 7 billion. Tyler, again a breaking news situation. Well bring you more details as we know them here. For right now thats why blackberry shares were halted. Back over to you. Thank you very much. 9 a share, jj burns, on blackberry is the tentative offer price here. Alex trippen our producer says they have six weeks to do Due Diligence on this company. Is the Company Worth that . Well, it depends on who the suter is going to be and how they will leverage the company. Where they can leverage the company is in the 72, 73 million subscribers still on blackberry. Depending on where the fit is inside the company you can leverage 70 million subscribers plus. You probably got all that equipment and all the other useful capital that they have and if you take that and break up the sum of the parts they probably can sell some of that off and net more than 9 a share. Also a fair amount of intellectual property rights, patents and other things that probably have a value there. Sue some. Jj, they do have the right blackberry has the right to shop during this Due Diligence period. Is there a company out there that you think blackberry would be a decent fit with . You know, the funny part about it, sue, we were talking at the break, why would microsoft take on 76 million subscribers they have and find way to leverage that. They did it with nokias handset business. Scoop up more of the subscribers and take it out that way. I doubt microsoft will do that, but somebody like that can they have the cash. An awful lot of cash. They sure have the cash. The purchase price, 4 billion, 4. 9 billion, i believe i just heard someone say, 4. 9 billion is sort of a rounding error in their cash pile basically. Its really not much of a cash deal at all. To josh lipton following the numbers on blackberry and may be able to fill us in a little more. Josh . Yeah. Tyler, watchings these headlines like you dpguys, the stock was down 5 , 6 on solid volume on. Th we know the drop in market cap and market share the company has suffered. At its height 80 billion, not only about 3 . When we talk about the future of blackberry this was one of those options. The question becomes where do you see value if in the company. Some would say it could be in the messaging service, the patent portfolio. But now these headlines dropping, a consortium willing to step forward and take it private. At 4. 7 billion, and so that will tell you that the patents are probably not worth the 5 billion that some people had offered there. This is a kind of situation that individual investor wants to steer clear of. This is not something some bottom fishing guy in his ira or selfdirected 401 k plan can say can we grab a quarter or half. An average investor should stay away from. I assume that stock is still halted. Do we know that . Whether it is or isnt . Can someone tell me . I believe it is. Looks like it is. So who knows when it will come back online there. What would you expect, based on what the outlines of this deal are, jj, would you expect the stock to trade higher or lower . Theyve put a 9 share price on it. Ill make a guess. Like anybody else. I bet it will open up, take a tick up higher. But i wouldnt be surprised over the next four to six weeks, that blackberry has Something Else going on in place. They did hire advisors to take a look at the breakup value of the company. This really is reminiscent of nor tell networks. Its very reminiscent of that. Coincidentally theyre both canadian companies. Sue . Im sorry. Thats okay. Before we take a look at the bond market we should note that apparently the plan the parties are going to negotiate. They hope to execute a definitive deal by november 4th. So well see whether or not there are other suitors out of there. Dom, you have Something Else . Again, some reports about who will be providing the financing for the deal. Possibly bank of america, Merrill Lynch and bank of montreal. A Canadian Bank involved there. Learning more details again as they kind of flow forward here. Bmo and bank of america, Merrill Lynch, possibly looking to provide financing for this transaction by that consortium that involves fairfax financial. Once the stock starts to trade well bring it to you. A check of Interest Rates with the fed speak thats been out this morning, we have seen the yield moving. Right now we have the tenyear note, the yield is 2. 71 p. The yield on the 30 year, 2. 4 . Weve had several fed officials talking this morning including bill dudley talking to Steve Liesman a little earlier. Ty, were keeping track of the yield curve for everybody today. Back to you. All right. The fed keeping the foot on the pedal when it comes to quantitative easing but the debt ceiling debate, of course, looming just over the horizon. The emerging markets still a good place to park some of your money. Where the investing giant black rock is seeing opportunities. Thats next. And ty, we also have a starting time we believe for blackberry trading. Theyre saying probably 2 00 p. M. Eastern time. Thats when they plan to reopen blackberry. The stock when it was halted down 5 2 3 . Now the news theyre in a deal with fairfax financial. Back in a moment. Thank you orville and wilbur. Amelia. Neil and buzz for teaching us that you cant create the future. By clinging to the past. And with that youre history. Instead of looking behind. Delta is looking beyond. 80 thousand of us investing billions. In everything from the best experiences below. To the finest comforts above. Were not simply saluting history. Were making it. See who does good work and compare costs. It doesnt usually work that way with health care. But with unitedhealthcare, i get information on quality rated doctors, Treatment Options and estimates for how much ill pay. That helps me, and my guys, make better decisions. I dont like guesses with my business, and definitely not with our health. Innovations that work for you. Thats health in numbers. Unitedhealthcare. Theyre the days to take care of business. When possibilities become reality. With centurylink as your trusted partner, our visionary Cloud Infrastructure and Global Broadband network free you to focus on what matters. With Custom Communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. Every day of the week. Centurylink® your link to whats next. Emerging markets account for 60 to 65 of the worlds growth over the next two decades an 51 of global gdp. No wonder investor interest remains high. Navigating it is tricky. Insight to play it from jeff re chen, head of black rock, with nearly 4 trillion in assets. Welcome to power lunch. Its a pleasure to have you here, jeffery. Thanks very much. Lets talk first of all about what areas of the emerging markets you like at this point. I know it has a lot of inherent volatility but youre finding micro opportunities in a macro obsessed world . Yes. I think if you at broad scope you can think about emerging market as a high volatility asset class. But underlying it depending on which country, depending on which sector you look at theres still blenty of opportunities. What were seeing is certainly that for companies that have much more global exposure, you know, exporters, Technology Sectors which we do find opportunities there, especially given the current volatility. Domestically we find quite a bit of opportunities in places where in the utility sectors. They are a bit boring, but at the same time they have strong Pricing Power and stable cash flow over time. I was going to say, borg can be good, boring can be good at certain times. Especially in this current market volatility. Taiwan i think has a very good gearing on the global economy. Look at a company like marita industries, one of the Largest Global manufacturers, it has a lot of exposure out of taiwan but being impacted because its a large emerging equity stock. When you dig deeper looking at earning profile you realize its actually a pretty good global exposure happened to be trading in taiwan. You like capitol hihile as w . Its been a place in the emerging market overall. The fundamentals of the economy are quite strong and there are quite interesting companies, you know, one company in there which is electric utility Company Called anasis that has very stable cash flow over time and when you look at the profile of the company it doesnt look and feel like a volatile emerging company. Well have you back soon. Thank you for joining us. An offer for blackberry, it is 4. 7 billion. 9 a share. Stock halted. 823 the last tick. Back to talk about blackberry after this. I love having a free checked bag with my united mileageplus explorer card. Ive saved 75 in checked bag fees. [ delavane ] priority boarding is really important to us. You can just get on the plane and relax. [ julian ] having a card that doesnt charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u. S. When i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim. From td ameritrade. Fidelity did that with assets above 5 million and contributions they accumulated in their retirement plans of 2 million at least and found common trends. First of all, these millionaires have a diversified Financial Plan and they stick to it. That includes contributing the most to their 401 k and their iras every year. The other thing they do the overwhelming majority focus on longterm growth not the gains and losses in any one year and then they also have a financial adviser. Most millionaires accumulate their wealth because they didnt spend it. Thats who our clients are. Given the fact that theyre able to plan, think longer term and live within their means and thats the most important thing, theyre able to accumulate more wealth over time. Older millionaires may have a different way they work with financial advisors. When you look at the older millin airs sticking with the older strategy. Gen x and gen y are looking at derivatives, foreign currency. Find out more checking out cnbc. Com. Back to you guys. Thanks very much. Were going to take a quick break and come back and talk a little bit more about this deal that is on the table now to buy blackberry from fairfax financial. Big shareholder. The stock is halted. The offer for 9 a share. Blackberry will resume trading at or around 2 00 p. M. Well be back and talk blackberry after this. With us jj burns back with us. John carney is with us. John, weigh in on this if you would. I still carry a blackberry. I still use my blackberry. They have streamlined so they are only doing corporate cust had mers right now. Theyre not selling to consumers. I think this is this going to work . It takes away a big risk that was holding back their business. A lot of people were worried whether blackberry had any future which meant that i. T. Departments across Corporate America were being hesitant to invest in it. By going private, they assure that they have a longer term future or i think thats the plan here, which makes Corporate America more confident theyre not going to waste money by upgrading to the new blackberry systems. Theres a good logic here where they get off that selffulfilling train, worries about the Company Might actually come true because everybodys worried about it. Now people can rest assured. Prefer blackberries versus smartphones because of security issues. Absolutely. The security issues, but you have but the competitors, particularly apples iphone, have gotten a lot more secure. They addressed that. And there was just this issue of is it worth investing in the next generation of blackberries if were not sure where the company is going to be one year, two years, three years from now. Going private should take away some of that risk. And allow them to invest in a longer term. Fairfax financial has been a belong believer in this company and they have the where with all to keep the company going. The company was burning through cash at a pretty rapid rate and this will hopefully supply them with more capital to be able to assure that they have a longterm future which should let the corporate buyers back in and say, okay, we have confidence that we can reinvest in the next generation. Jj, i wonder whether you see anything unusual in the fact that the company halted on friday, warned, said they were going to pull out of the consumer marketplace. The stock at that point was trading at above 10 a share. It went down to 8. And now comes the offer at 9. I think what were seeing here is the conversion of a company that really wanted to be consumer based company that made some seriously wrong errors in the wake of apple coming on board. Lost a billion dollars on the z 10 development and has written down over a billion dollars in losses. I think whats happening, and again just off the cuff here, tyler, is that were seeing a blackberry thats going to be more of a lowcost provider to govern mental benefit type of corporate of that type of world in government, where they can control it, they can take their z 10s maybe off the shelf, dust them off and say we got 50 cents on the dollar here, we can get these out to our people in the government. I think thats where the company is likely going to go. Were going to take a break and then talk about whether or not this is going to be a viable deal for blackberry. Were back in two. Unh [ male announcer ] you can choose to blend in. Or you can choose to blend out. The allnew 2014 lexus is. 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What do you think, dom . Whats interesting here is when we talk about a take under, the 9 per share bid is interesting because this stock on the 19th, the day before it dropped that bomb about 4500 job cuts and about Everything Else about their revenue guidance, before that it was a 10. 52 stock. Basically fairfax financial has made a bid for this company thats in essence a 14 to 15 discount from where it was before that announcement came out. The other question is, this company is going private. A company thats been in secular decline for some time now. It smells like what dell what happened with dell, with michael dell, looking to take over the company that he founded for a certain price. Again, going private at a level you have to wonder if other shareholders might be curious about what this company is worth on the open markets, right . Dom, on the cuff of that it smells like nor tell, interestingly that theyre both canadian companies. Lets take a look inside a Fairfield Holdings. What else does Fairfield Holdings have . Maybe they take a piece of the company, break off a piece and combine it. Jj, we have to drop it right there. Slip in another break. Well be right back. We got the ball rolling. In cities across the country, cocacola joined with communities and local leaders to roll out a summer filled with activity. From atlanta to l. A. , people all over found that getting moving can be fun. In fact, it can be a day at the beach all in all, we inspired three Million People to rediscover the joy of being active. Now, lets keep it going all year long and make a difference. Together. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Peace of mind is important when so we provide it services you bucan rely on. With centurylink as your trusted it partner, youll experience reliable uptime for the network and services you depend on. Multilayered Security Solutions keep your information safe, and secure. And responsive dedicated support meets your needs, and eases your mind. Centurylink. Your link to whats next. A bid for blackberry, 4. 7 billion from fairfax financial. The stock should begin trading in about two minutes time. It was halted for that news pending and we want to thank our panel, dom, john and jj burns. Thank you all very much for joining us. Ty, well hand it over to street signs about a minute early so they can kind of walk us through the opening of that stock. This is really an epic corporate fall. A company that in 2008 could do no wrong for the past few years, seemingly can do no right. Thanks for watching us on power lunch. Street signs begins right now. Thank you. We are expecting blackberry shares to resume trading here in just about one minutes time. 8. 23. Halted about an hour ago for news that fellow Canadian Company and largest shareholder of blackberry fairfax financial offered to buy the company for 9 a share in stock. This, of course, is subject to Due Diligence, looking at the book. Everything they have to do. A deal could still be scuttled. However, mandy, we have an offer, 9, above where the stock was trading right now, which has raised some eyebrows. And i believe 9 is where it was below friday morning before the big news about the massive layoffs, 4,500 people came out. That came out at about 3 00 p. M. Just as we were closing up street signs. Were currently sitting at 8. 23 waiting for the shares to resume trade. This is a story that is fluid, sort of captivated not only canada where blackberry is based but america because of the rapidity of the decline of blackberrys business. One accounting for more than half of all cell phones. Quite a lot of volatility, but we can see sitting at the 9 handle. Listen, folks, heres the deal. If the stock trades markedly above 9 a share you can assume somebody believes somebody else will come in and trump fairfax financials bid. Its at 9. 08. The market is saying we dont think another bidder is going to come in and buy blackberry. Jim cramer is with us. Herb greenberg with is, josh lipton out west, bringing people in, its going to be a fluid hour. Apple news, poor microsoft by the way, launching the new surface today and you have the apple st