You see. S p couldnt gain here, down eight points. David looking at the negative numbers, imagine what they would be if the fed did not do the money printing. A lot worse than it was today. Could have been worse. Facebook, when the market is in the red, facebook in the green, today is not an exception. Today, a big bump, over 2 bump. Tomorrow, of course, is the third lock up, another 156 million shares of facebook coming online, previous times when thats happened, we saw the stock jump as it did today. Liz right. Everybody expected it to fall, it didnt. Were watching that. When apple falls on iphone estimate cuts, so do the component suppliers, the socalled halo effectings. Sigh works, logic, the biggest losers here, biggest victims, but broadcom taking a hit, their products inside apple as well. David not all the solar stocks doing well. These, in fact, taking a big hit with the exception of solar limit, up almost 5 , but other solar stocks deeply in the red, again, those things are fickle from daytoday. You may have a big up or down. So is the Federal Reserve with its massive spending do more harm than good . Wells fargo chief Economist Says the fed has to back away a little bit and let rates rise. How much and why coming up. Liz cows p cousins, and entrepreneurs, the men behind tesla pushing ahead on a solar ipo at a time when people said put it off, cancel it. We get the answers as to why they went ahead with it and if they can stand without tax credit. David adobe numbers, dont move, but, first what drove the markets today with todays data download. All major indexes closing lower as gridlock in dc continuing. Crossed the line 30 times in 70 minutes of trading, and thats when it fell into the red for the rest of the day. Health care, energy, and Technology Led todays decline as all ten s p sectors posted a loss. Retail sales rising in november as demand for automobiles rebounded and shoppers hit the stores in the holiday season. A report says sales road. 3 last month reversing the previous months decrease. On the other hand, theres a retail analyst saying there is bad news mixed in with the good. The number of americans piling new applications for Unemployment Benefits falling the fourth week in a row, dropping 29,000 to a seasonally adjusted 343,000. The prior week was revised up by 237 2 as often happens with these numbers. Liz . Liz interesting day of trade, mark in the pits of the cme, and ryan says its time to implement a barbell strategy. Hell explain how he envisionings that, and chris telling us why hes leaving u. S. Equities and putting his money to work overseas, but where . Starting with mark at the cme. We were careen, and the mouthpieces in washington spoke and it fell. Something else at work here 1234 you know, i think its a lot of things. I think, you know, is qe ad good thing for the marked . The fed came in strong, but i dont think thats cause for the market. We were testing that level, kind of, i think, a hard tactical barrier. We need a catalyst to breakthrough it. John boehner says something negative david mark, i have to interrupt. We have the numbers from adobe. Bringing it to you first. Adam going through the numbers. What are they, adam . Investors happy beating what was expected of revenue on 1. 5 billion. Inviers wonder how they went to charge in the cloud going to impact and looks they are doing well. Back to you. By the way, we have the after hour numbers for you, and as you can see, says zero. Theres a lot of traders who want to trade afterhours, but trades halted. As soon as they are lifted, well tell you, Mark Sebastian with adobe, interesting they hold shares on good news, mark. You know, when they know the news is the type of thing that drives the stock, they dont want anyone front running it. I think that revenue number was really positive for adobe. Im guessing when it opens, well beat that market exception. This could be a good sign. David Company Expects to add 125,000 members to the Creative Cloud subscription, the new Subscription Service adding 94 million in revenue, going through the numbers, we get an idea, liz, of where the good numbers coming from. Liz the earnings per share interesting, equally as important, mark, when you can control costs, thats a positive. Yeah. Controlling costs, beating revenues, growing that subscriber base, i mean, find me something negative in what you told me, and the answer is theres nothing, and o i think were going to see a real nice green number next to adobe once it reopens. Liz apple tried to kill it, not happening. The market panel, david. David brian, and chris from river front investment. Gentlemen, and, brian, starting with you first because the stock market looks attractive right now based on our previous understanding of what forward earnings are, but we have no idea what the earnings are like in 2013, do we . Well, a consensus has a view on it. Their concern is not so much earnings as the revenue side. One thing learned in 2012 is the stock market can go up, a lot, a 15 gain on the back of reasonable earnings growth, and even in the face of slow gdp growth. Liz smart people might say well, slow gdp growth in the u. S. , look elsewhere, we bring in chris, a pretty fascinating reversal for you, not necessarily a reversal, but a change. You were bullish in the u. S. Saying im going to europe and other areas. Why . Well, maybe its controversial when you look at the headlines in europe and asia and elsewhere in the world, but our thesis is predicated primarily on what we call price matters, which is essentially evaluations so when you look at the u. S. Markets, and in our opinion, u. S. Markets are still relatively attractively valued because they are, on our models, 20 below Long Term Return trend sot force of reversion works in your favor, but if you look at efa, its further below the long term trend, 35 40 below the long term trend, and history coral lates to strong adjusted returns over the next decade. You know, thats the long term view op places like europe and asia. The shorter term view is that our tool set for tactical moves is dont fight the fed or the trend, be aware of the crowded extremes, and like in the u. S. Where the fed is on a risk market side, thats true in the ecb, a huge change. The change in the ecb leadership and the embracing of american style qe is a big reason why we went from starting 2012 very underweight europe to overright europe. Dont fight the feds or the trend. Even on a day like today, its fascinating in a down day that europe is beating the u. S. Beware of the funded extremes, investors across the glop positioned, most underwait places in asia. Makes us bullish. David one sector not fighting the fed are the financial sectors benefiting nicely from the money printing. They got a lot of heat, of course, from regulations en, ect. , but so well capitalized the the momentment do you think because they are capitalized and set to grow, that they are a buy at these prices . Well, excise i agree with. The data, many, many Financial Firms back to where they were before the financial crisis, i dont know about the earnings part. The earnings outlook for a lot of major firms still is not really great. Financials wind up being the best performing sector of the year so far, but not brave enough yet. Chris, tas nateed with the trend fascinated with the trend, but what sectors, and europe is controversial, but which parts . Theres southern and northern. Sure. Thats a great question so right now our biggest overweight is in germany, and reason being is all of europe is cheap in different degrees, but germany, when you set Monetary Policy for the weak link, clearly the southern half of euro, the strong get stronger, and i dont think anyone would disagree that economically speaking germanys in the strongest position of anyone in the eurozone. Also, you know, through my background as a bottoms up analyst, for many years, when i look bottoms up at the german index, what i find are terrific companies that compete globally. Thats not everywhere in europe, but germany has a lot. The auto sector, chemicals, health care sector, and financials in germany, not so much Deutsche Bank, but World Class Companies and world class management teams gives me confidence germany is positioned to do well even within europe. David chris, we got to run, but quickly, is apple a screaming buy at the prices . I think it is. Obviously, im in the minority recently, but i think investors depends if youre a trader, who knows whats going to happen between now and year end, but if youre an investor, interimmediate, longer term view, love evaluation of apple and the argument innovation is dead will be unfounded. David chris and brian, thank you, gentlemen. Well come back to mark when the s p futures close. Liz investors taking a shine in a big way in solar city, about blinding. The stock rallied, double digits, up 47 up on the first day of trading after a rocky road. They delayed the ipo and chopped the offering price. What got investors excited . Really finally fairly priced . A lot of ipos get greedy. We sit down with the chairman, the ceo and cofounder. David talking about facebook . Liz not really. David battle over the cliff on capitol hill continues, boehner set to meet with president obama within an hour. We are there on capitol hill with the latest developments. 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For fast, long lasting relief, use doctor recommended gaviscon®. Only gaviscon® for a protective barrier that helps block stomach acid from splashing up relieving the pain quickly. Try fast, long lasting gaviscon®. David cme futures closing, back to the cme group, and mark, ending the day, recovered, but that continue afterhours . No, gave away a couple points after the bell. Closed down another two points. You know, not so much good news, not the low of the day. We didnt get ugly after the bell. Thats what would have scared me. Something interesting to Pay Attention to is that over the last ten and twenty days, realize volatility in the s p fell through the floor as we wait for these as we have been waiting for the fiscal cliff negotiations to happen. Ten day falls 5 . Thats incredibly low. Just be warned. If something really big comes out, we are going to take off one way or the other like a rocket ship. We are like a jack in the box right now. We are on pens and needles. David wound up, but can go up or down depending what happens. Within the hour, well hear more from john boehner and the president who will be meeting. We are onsite there and let you know what happens. Thank you, mark, good to see you. Liz thank you, mark. Adobe halted following a positive Fourth Quarter earnings release. Nicole, gauge where it goes when it trades. Liz, this is going to be a great one to watch today after hours, tomorrow in trading. They came out with numbers, blow through the headlines, and its great overall. Earnings per share, 61 cents beating the estimates of 57 cents. Revenue, 1. 15 billion, and that also exceeds analysts estimates. The fiscal year 2012, this is record revenue for adobe. Not only see quarterly profit rise, but what is the ceo saying . He talked about subscriptions, adding 10,000 subscriptions a week in the last quarter. Know what the ceo said . That was higher than they had expected on all fronts, liz and dave. This is looking like a stellar quarter. Sure we will get more and more head lines, but as you noticed, stock halted, but so far, so good. Liz folks, a classic case of a company being so fleet of foot when they were under attack. Steve jobs at apple decided not to choose adobe flash, went with html, and adobe flipped the Business Model and winning today. Interesting. Thanks, nicole. David another day of trading of words on capitol hill about coming to some kind of resolution on the fiscal crisis. Liz House Speaker boehner meeting with the president , but talking tough earlier today on the need for spending cuts. His next stop in stop . The white house, 5 p. M. Eastern. There is movement, and the speaker will be moving to the white house for the first time in awhile on these talks. The president and speaker have been speaking sporadically on the phone, but they have, according to aids, been in significant progress in the discussions they had. For democrats, republicans need to get serious on taxes. They have not done so yet. They have to be open to raising rates on families making more than 50,000 a year. For the speaker, he wants the white house to get serious on spending. Here we are, at the 11th hour, and the president is still not serious about dealing with this issue right here. Its this issue. Spending. Let me just say that while im personally fond of john boehner, his record of predicting what happens if certain economic policies were instituted is dismal. Specifically talking about 2001 and 2003, the bush tax cults passing congress, the white house says, look, that policy didnt work back then. Its not going to work if you continue that again, still, looking to continue 98 of the bush tax rates. Back to you. David watching closely. As soon as the president and john boehner meet, well take you there and get as much information as we can. Rich is the fly on the wall. Rich gets an ear inside the room. Thank you, rich. Good to see you. Thanks. Liz investors betting on clean Energy Sending shares soaring 50 in the public debut. The inside scoop. The chairman, yes, runs tesla, and the ceo and cofounder, they are cousins, david. Boy, they are big on entrepreneurial spirit. They are coming up next. Plus, the Holiday Shopping season in high gear. Up next, an analyst who is worried about Holiday Shopping, even with last months pop. Telling us why, pointing us to winners and losers for your stock portfolio. Look, if you have copd like me, you know it can be hard to breathe, and how that feels. Copd includes chronic bronchitis and emphysema. Spiriva helps control my copd symptoms by keeping my airways open for 24 hours. Pl, it reduces copd flareups. Spiriva the only oncedaily inhaled copd maintenance treatment that does both. Spiriva handihaler tiotropium bromide inhalation powder does not replace fastacting inhalers for sudden symptoms. 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The impact the solar sector had and the challenges the solar sector had, specially in manufacturing, that stays with us the next two months, so its important to educate them of who we are and then have them grow with us over time. Yeah, and if i could add to that, we did debate heavily whether we should stay private or go public, and at various times we thought one way or the other. The final deciding factor was calls to Institutional Investors that we trust Like Fidelity and ask them whats their opinion, and they recommended go public now rather than the future. Basest based on that recommendation, we moved forward. Liz work in your favor eventually that you underpromised and over delivered . Oh, absolutely. If we meet our growth targets, and the Investment Community starts building the confidence and knowing that this is not a traditional manufacturing, they will see this is a new energy company, one that creates electricity, dont have a legty infrastructure, no transmission and distribution, created where its needed, and its cheaper. Its essentially a districted energy company. You install the panels, lease them to the homeowners. Homeowners dont want to think about it or deal with it. You handle all of that, and fold in the tax credits, but could you stand on your own two feet without the credits . Absolutely. The most part of the u. S. , theres two types of incentives, federal incentives and state incentives. The state incentives have almost disappeared, but, yet, we keep up with the cost reductions to keep up with that state incentives declining. The federal incentive goes from 30 to 10 like every other fossil fuels out there in 20 17. If we reduce our costs by 5. 5 per year, well have a significant Sustainable Business center to what we planned before the expiration. Liz youre the chairman and his cousin, his bigger cousin. Yeah. Liz will you sit there handling him, saying, come on, keep the costs down. Leonard and pete do such a great job running solar city, really, what i do is show up at the board meetings to hear the good news. He does more than that. So liz youve been had an idea or two liz the process with tesla, you know what the challenges are here and some promises cant be delivered, others surprised. You know theres big issues ahead on the landscape. Yeah, i think this is definitely not an easy thing, tremendous amount of work, and as what i said, we have to improve costs at 5 a year in order to stay ahead of the reduction. Liz when will you be profitable by the way . Our goal is to be positive next year. Liz we walked through the tesla motor plant up in Northern California back in september, looks Energy Intensive to me. It is, yes. Liz why dont you have solar city providing the electricity . The reason we dont have sew lore power right now is that tesla is not yet a good enough credit. [laughter] i know that sounds ridiculous. I think at some point next year, im confident well have that in tesla. Liz two employees doing Something Like this today, the fiscal cliff, you know, maybe thats the reason there was not as much interest. Do you see like that or perhaps why you had to cup the price cup, 15 range to 8. I personally thing its overblown. I dont think its the reason why we had to take the reduction in the price. Its purely just before the fact that everybodys been built so badly with anything associated with solar, and it is liz solyndra all the other problems. General manufacturing publicly traded companies. Every time they made the bet, and theyve lost, the last three years, and then you go to them again saying this time its a different bet. No, this is the right bet. They want to make sure its the right bet. Liz the fiscal cliff, did it play into why solar city cut its price . I think it was a minor factor. I think the larger factor is that is that investors looking at the ipo, the last ipos invested in, are all underwater. The bankers said the only company thats trading above the ipo price is tesla so its tough when somebody has heard a story where thats perhaps now compelling the first ten times, and now that the 11 company says this time, for sure, its going to work, and, like, even though the fundmentals are really strong i mean, nobody could refute the business fundamentals. They really the people the push back we got was irrational like, oh, its solar. Solars bad. The fundamentals are strong. Solars bad. Im like, uh, that doesnt make sense. 300 Customer Growth rate. Yeah. We could have a mint and say we mint money. [laughter] solars back. Wait a second. Liz 47 jump in the stock today. Looks like they priced it well enough that it did get the big pop. David, glad i didnt wear green. Oh, my gosh. David would have been too much. It is extraordinary how much people learn based on the mistakes facebook made. People are not overpricing their ipos anymore. They did exactly the right thing in the way they priced the sock, and, again, these guys dont make solar panels. The guys who went bad in the field are panel makers, but these guys install solar panels, a totally different Business Model. Liz charging less than what you would have paid with your, of course, utility. David retail sales rose last month, but productions chief equity strategist says theres nothing positive about the report. What does this mean for the Holiday Shopping season and for the Retail Stocks . Holiday winners and lossers you do not want to miss next. 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[ santa ] ho, ho, ho [ male announcer ] lease a 2013 e350 for 579 a month at your local mercedesbenz dealer. Liz breaking news after being halted adobe is trading and moving. It huyer on they beat revenues. They came in record revenues. They beat on top and bottom line here. That number was very embraced by traders. Were not seeing a huge jump, david. David it is something. The stock was down but up afterhours. Time to look at todays market drivers. Stocks ended in the red but off session lows. It was all downhill as investor uncertainty over a deal on the nations fiscal crisis and continued concerns what the fed is doing continued. All 10 s p sectors ended lower, led by health care. Lots of act ship in the commodity pits today. Gold falling more than 21 an ounce and settling below 1700. The big loser was silver. Prices sank more than 4 to 32. 36 an ounce. This is the lowest settle in silver in over a month. U. S. Producer prices falling more than expected last month as the cost of energy tumbled, the most in more than three years. The Labor Department reporting that its Producer Price index slipped for the second month in a row in november, down 0. 8 . Liz . Liz november retail sales data came out today. Okay, showed a rise of. 3 in october, well take it but one analyst says there is nothing positive in this report. Should investors still be shopping for Retail Stocks . David we have a Retail Equities analyst and nbt and touchstone for what is happening in the sector. He is more right than not. Npr very often does not get it right but they were saying, great news for the Retail Sector in november. Sales were up. You say it is exactly the opposite. Overall tone should have been down. Obviously these numbers are basically irrelevant. They told you everything we knew from the mobile data payment data early in the month, black friday. I would like to see the numbers okay in consumer land beat expectations. The fact it didnt is quite telling. Confirming in the stock action. David dont be fooled by the green aries . Jump outside the numbers to see what is going on. Lets do that and look at things like applyness and electronics. Electronics seem to be holiday gift season. Plus appliances a cycle is coming to an end. Im hanging on to nye dryer by a thread at this point. I dont want to buy a new one. At some point you have to. Would we see positive signs there . Whirlpool, for example, had a great quarter. Housing play. Best buy is price matching. Seeing more with them than amazon. It is driving sales. Tech and appliances where interesting things. Full price goods seem to move in the bigger ticket areas. You seen a lot of retailers not win. Radioshack competitive on price lose. Walmart told us shoppers are changing patterns how they shop with a couple weeks left before the season of the something is going on out there. David talk about highpriced items. Tiffany in particular. Tiffany you say is really under the gun right now. Not for what you usually think the big Diamond Rings and everything but for sales of items under 500. Thats where they really get markup, right . On those sales, sales of less than 500 theyre really slipping. They came out week and a half ago, very bad guidance. What is not working . Aspirational consumer buys things, 3 to 500 put something on the credit card they cant really afford. That consumer is not working. Sachs is outpacing nordstrom and tiffany. They need to be doing okay. Liz would you buy those stocks, the nordstroms of the world . Where do i get most value right now, not buying too high and seeing a little bit of improvement here in the stock price . I actually made the call that numbers we saw couple weeks ago for black friday was the peak. That was ultimate point of climax or enthusiasm. Youre out of the sector, looking industrial stocks 2013 or trading in names like best buy, believe it or not. Liz you dont even like Abercrombie Fitch . I dont want anywhere near it, i think towards the end of the month, look at market consumers are making tough decision as fiscal cliff reaches main street. Liz the holidays are over, im done buying . Best buy, dare i say it jcpenney is having getter news, wait for better reasons in january is what about the credit card companies, American Express . American press are a sachs tiein. I would like sachs or American Express. You look at some of the other credit cards like visa, not doing so hot. David American Express is okay. Dont confuse tiffany with high, when you say high end you think tiffany. Tiffany, run far away. David thank you very much. Excellent stuff. Well the markets may look weaker without it but the feds bond buy something Risky Business and it could be creating huge distortions in the market that could end up smacking down your investments. Coming up next one of the most respected market analysts in the business, john silvia, chief economist at wells fargo, with his concerns about the risk the fed is taking with your money. You dont want to miss this. [ male announcer ] how could a luminous protein in jellyfish, impact Life Expectancy inhe u. S. , real estate in hong kong, and the optics industry in germany . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 75 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Quest a ospectus or summary prospectus with investment informaon, risks, fees and expenses to read and consider carefully before investing. With investment informaon, risks, fees and expenses music is a universal language. But when i was in an accident. I was worried the Health Care System spoke a language all its own with unitedhealthcare, i got help that fit my life. Information on my phone. Connecti to doctors who get where im from. And tools to estimate what my care may cost. So i never msed a beat. Were more than 78,000 people looking out for more than 70 million americans. Thats health in numbers. Unitedhealthcare. Im adam shapiro with your fox business brief. It was a down day for markets with all 10 s p 500 sectors moving down for the first time in a month. Blame the stalled negotiations over the fiscal cliff which grew more heated with political leaders on both sides ramping up the rhetoric but president obama and House Speaker john boehner are going to meet at white house in just a few minutes. Late today the president accepted United Nations ambassador susan rices decision to remove her name from consideration for secretary of state. Fox news reports that senator john kerry is being talked up in the administration as likely nominee pour that position. Home repossessions hit a ninemonth high in november even as foreclosure filings fell to the lowest level in six years. Courting to realtytrac number of homes in the process fell to the lowest level in six years. That is the latest from fox business network, giving you the power to prosper david well the wall street journal poll of economists found a majority of those polled oppose the feds continuation of money printing and bonn buying like was announced yesterday. One of the most influential of these voices, john silvia, managing director and chief economist for wells fargo in yesterdays wall street journal mr. Sylvia said the feds bond buying is quote, distorting market prices and creating problems in the future. The fed needs to back away and let Interest Rates rise just a bit. Here is explain the risk we face from the feds action is john silvia. Thank you. David be really specific here. What market prices are being distorted by the feds actions . Well, david, there are two sets of prices. One is the treasury price itself. The fed is big buyer of treasurys and continuing that Program Means that for a lot of investors, instead of the perception that treasurys are riskfree there is real perception here that treasuries are very sensitive to Interest Rate changes and slightly higher inflation. The fed said they will tolerate perhaps a slightly higher inflation numbers, perhaps up to 2 1 2 . At 2 1 2 inflation, most of treasury yield curve is underwater. Any small increase in treasury rates of 10, 20, or 20 five basis points means total return is already negative. David let me stop you right there, john. Two ahead. David the fed is now buying 70 of all the new treasurys being eschewed. How could that not be distorting . How could it not be distorting . Again you have a huge buyer in the marketplace really is setting prices. Now youre subject to the problems of slightly higher inflation raising Interest Rates at the long end of the curve, and again the total return in nominal value is already negative. I think thats a huge problem. The second problem, david, is distorting all the other Interest Rates that are based on the treasury market. So you have a lot of the pond bond market, Corporate Bond market. Municipal bond market being priced off treasurys. Once again are you really getting value for the investment you have in lets say a Bond Mutual Fund given those prices are arbitrarily based upon a much lower treasury market . David john what about the stock market itself . What about equities . Liz macdonald has been reporting that Deutsche Bank came out with a study saying the stock market itself is being overvalued, is being distorted not just by what the fed is doing by what all Central Banks are doing around the world . Is there a distortion effect on equity markets as well . Yeah, the problem, david, most analysts will use something what we call a dividend discount model, some model where you look at future earnings of corporations and discount that to the present. Well, how do you discount that . We use a market interest to the extent that the fed is influencing those rates again you get this real question of valuation. You cant just take the numbers per se. You have to go deeper into the equity market to say what is the true al view of this Company Independent of what i might think of discounting those earning in the present. David talk about what the fed is really doing here. Sure. David what is most significant what happened yesterday, and we knew it was coming, rather than trading shortterm for longterm treasurys which is what it did before, they are actually buying new treasurys. Theyre just printing money, 45 billion a month, to buy new treasurys. This is pure monetizaton of the debt. Somebody called it an open bar for the fiscal drunks in washington. Do you agree . Yeah. Operation twist was simply, lets sell shortterm securities. David right. Lets buy longterm securities. The size of the feds Balance Sheet had not changed. With this operation, size of the federal bans sheet will continue to rise over time and essentially the fed is buying a lot of treasurys, increasing its Balance Sheet, essentially increasing what i would call as an economist, the monetary base. Therefore allowing the money supply to increase more into the future as institutions, particularly banks, tend to use those reserves. David enabling those fre freespending drunks inside the beltway. Final question, john, how do you back out of this . That is really the key he question because at some point even ben bernanke suggested this will not go on forever. There will be a time where they back out of this 4 trillion of portfolio that they will have built up over the next year. How do they back out . Well, for most investors what they have to be concerned with, what happens on the day the fed says, hey were going to exit the market, well start selling 40 billion or 45 billion of treasurys each month . Well, everybody is on the wrong side of the boat. Everybody is long treasurys. Now youre going to sell the treasurys. Everybody has to rush to the other side of the boat and we see, again, a real risk that Interest Rates will rise very quickly when the fed makes that announcement. It will be a very difficult situation to quote, exit with the huge Balance Sheet like that from the fed where theyre the dominant supplier now. David not just the fed. Central banks all over the world. Thats right. David a very dangerous experiment were right in the middle of now. Books will be written about this. Lets hope it ends up well. John silvia, wells fargo managing director and chief economist, john, thanks so much. Appreciate it. Thank you, david. Liz he will be prominently mentioned in those books. David i think he will. Liz there is growing division between big businesses and Small Businesses when it comes to personal tax hikes. Next off to d. C. For a look who is actually saying they should go up and why and we can save you 10 on ground shipping over the ups store. Look this isnt my first christmas. These deals all seem great at the me. But later. [ shirt ] merry christmas, everybody not so much. Ho ho ho this isnt that kind of deal. [ male announcer ] break from the holiday stress. Save oground shipping at fedex office. Liz the battle nside the beltway over individual tax rates is beginning to trigger a big business versus small busy business tax war. David whole david and goliath thing going on. Peter barnes from the beltway with more. Peter. David, liz, thats right. You can bet this will be a topic of discussion when Speaker Boehner and president obama meet in the next hour. We want to let you know Speaker Boehner left the capitol and on his way to the white house right now. In this debate, in one corner ceos of some of americas biggest corporations that pay Corporate Tax rates and the other . Entrepreneurs who pay their business taxes at individual rates because they have some type of passthrough entity like a partnership. Ceos are lobbying for tax reform that would lower corporate rates. Meantime the president wants to raise personal rates on higher income families which would hit some Small Business owners. Small Business Advocates were shocked this week when the Business Roundtable endorsed raising personal rates as one way to help avoid the fiscal cliff. The roundtable reversed its opposition to that citing its fear of falling off the cliff. Its letter was signed by 168 ceos. The National Federation of independent business which represents 350,000 Small Companies went ballistic. Taking from peter to pay paul. Youre ignoring one huge segment of the economy, the small, to Midsize Business sethment which is about 37 of netbusiness income, employees over half the private sector workforce saying the corporate side is more more important. But the roundtable is also demanding spending cuts including in entitlements as part of any fiscal deal. It is also telling Small Business owners, basically what is good for corporate is good for you. It says the typical big Multinational Company buys from 6,000 small vendors. The roundtable says that falling off the cliff will harm all businesses, everybody and that to reach a compromise, quote, we will all need to give a little. David and liz. Liz battling against. Now theyre fighting each other. What a surprise. Thank you very much. David battle of the lobbyists. Peter barnes, thank you. Forbes magazine, that i love, is out with its top earning women in music. Who do you think took the number one spot this year, taylor swift, lady gaga . Well be back and tell you