Supercharge earnings for the company. All that and more coming up next. Here we are heading to the close. A market in mixed territory right now. The dow slightly lower. The stocks we are. Julie hyman keeping an eye on them. About the big stocks out with earnings. Expandinggins it also lets the earnings estimates and those shares have been higher. We have been watching Morgan Stanley reporting an increase in trading revenue, specifically in fixedincome trading. And its equities training revenue also better than competitors. On the flip side, we have google. We talked a little bit about it yesterday in the close. Of migration, still a lot eyeballs looking at ads, which is good for google. But it is a smaller screen. Cant fit as many ads on their. We will check in with you in just a bit. Lets move onto our big story, the strike that is shaking china to its very core. The largest sneaker manufacturer is in his fourth day of crippling protests. Potentially disrupting supply for Companies Like nike, pauma, adidas you can see them all on that chart. China is the largest manufacturer overall. You have labor costs that will go up and the factories will likely wind up moving offshore to other markets like vietnam. Following the china labour domino effect, we a have an expert in chinas labor sector. I will start with you on the magnitude of the situation. To keep this in spurts in perspective, how could you could you characterize this as the beginning of a major Labor Movement in china . We have been seeing this for years in china. What we are seeing is a new generation of Migrant Workers were younger, more skilled, spend less time in the countryside, and are increasingly in conditions where there are less workers. So did so people. Are demanding more, they want more. Ok, i want retirement benefits, get paid more for our. Paid more per hour. You have micro factors pushing this in a certain direction. You have a china slowing down. And the peoples covenant has been stick with us and dont cause problems and. We will deliver stronger growth. You have a strong you have a slower economy. A situation where chinas economy happens to be maturing. So people are expecting more. Demanding more. We have seen this throughout history. Think about here in the u. S. , new england factories, the mesh they initially moved to the south and eventually offshore. Factories are looking for the cheapest labor. As an economy grows, people start to get more demanding. That is exactly right. You so what happened when manufacturing left the united states. They went to china. And they will go somewhere else. This is part of the cycle of things. Lets talk about what it will mean. If these jobs move offshore, where will they go . We saw the manufacturer in taiwan that has moved over 20 of its capacity to southeast asia. Vietnam is among the top. So vietnam vietnam is a small country comparatively obviously to china. How can all this manufacturing capacity be absorbed around the world if it is not in china . You are talking about going to other places. Some of it will come back to the united states. Some will go to robots. You have productivity gains moving things along here. There is a lot of places it could go. Thissuming they are in transition and that manufacturing is not necessarily going to be the same kind of powerhouse it will still be a big part of the economy, per her but perhaps not as much as it is right now in the years ahead. What does it mean overall for chinas growth . China will slow down, but if they do it right, it will be a slower and healthy of growth. Youre talking an economy led by retail, services, highmargin activities and this is good for china in the long run. Good for us in the long run . Good for china is good for us. You mentioned some of these jobs may come back to the united states. Lets talk about some who are over there right now. How are they in the interim affected by all of this . If your nike and you have a breakdown in your capacity, that is not good for your supply chain. So what does it mean for us . People need to understand china better. They have been conditioned to expect 8 growth forever, stimulus to fillin in the gaps, ready for the party to step in and end problems. Theompanies are moving on business model, they will be in real trouble going forward. Do you think this is an issue for all American Companies manufacturing over there right now . You spent a lot of time in china. You did a Letter Research over there. What would your advice before American Companies that are manufacturing over there right now . Align their goals with beijings goal is to make sure they are supporting for the government is looking to move in the future. Which is where . Beijing is increasingly focused on social welfare. There is a crisis where the party is accountable to the public. 40,000 workers striking, coming at a critical time, head of the world cup, one can anticipate that sneaker sales would be pretty active ahead of the world cup. If Companies Need to be aligning themselves with the Chinese Government but not sure where the Chinese Government is good to go, are they seeking other sources of manufacturing . Some might. The question here is what are you his companys turn to do on the ground in china . If they are joined to make money, they have to look at what china is going through in the next several years, which is a slowdown. It is not going to be the same for every company. They will have to look at this from a different view. Coming up next, i will be joined exclusively by the chairman and ceo of honeywell dave cody. We will be talking about his companys earnings beat. Outlook,todays global talks attempting to end the conflict in ukraine. So far, we havent seen a stellar earnings season. Bank sent tackle falling short. Banks and tech all falling short. But ibm boosted the low end of its earnings forecast for the rest of the year. You might say this Earnings Report was turbocharged. Here is the man behind it all for more on this story. Honeywells chairman and ceo, some good numbers, dave. Its good to have you here. I like that intro. Turbocharged, there is some meaning behind it. Tell me what is going on behind the european auto rebound that is upping you guys and how you had such a successful quarter. Turbocharged industries is something that i like anyway. Think about the the six engine to perform like a v8 engine uses about a quarter less fuel to provide the same horsepower. So its a good idea and it started in europe. 60 of european autos have turbochargers where the u. S. Has an percent. So the thing that has 10 . So the thing that was hurting is that it was going down. It was just enough to offset the decline. What we started to see this quarter is that decline in the Auto Industry stop. You see doing better in europe. We have a nice take up was now offsetdont have to the decline. What is driving that confidence right now . Our performance generally. As you know, we laid out a new fiveyear plan last month. We said for five years we would generate doubledigit earnings increases. It is not the easiest environment to be doing that in. But we have a have done a lot of seed planting. Whether it is technology, geography, processes, we try to not just make this quarter but do the seed planting for the future and we see the benefits of that wild still doing some more seed planting. You had a fiveyear plan originally. You delivered on it. Now you have a new fiveyear plan. You are talking about putting 30 billion to 33 billion to work over the next five years. Where is that money going to go . We are a good cash generator, which is a good position to be in. That wasnt always the case. The First Priority is to have highquality earnings. Our Free Cash Flow conversion is about 125 in this decade. So it is a big number. That means over the next five years, we have 30 billion to 35 billion to find something to do with other than just let it build on the balance sheet. We talked about a 50 50 split at this point. 50 would go to increasing dividends. We said we would increase our dividend payout ratio, grow dividends faster than earnings. And then we do repurchases. It, but if the right time hits, then to expand it. The other 50 is investment in the businesses, including m a. We have developed a really good reputation to be good at acquisition. Very different from where we started. You go back 10 years ago, the advice i got from investors was give us the money. We dont trust you with it. Just give it to us. What we have done with 80 or 90 acquisitions, we are now being asked to please do more. You guys are doing are good at this. What are you looking to acquire . You made the point that it is not easy to invest in an environment that is very uncertain, especially when there is so much uncertainty in washington. As you look out over the next five years, given that you are willing to put money to work in m a right now, it is like you are feeling better about the each are. I might say it a little differently. I am still cautiously optimistic, probably the best way to phrase it. I dont see anything that says that things are going to tank unless there is some global, catastrophic event, which can happen, as you know. Barring that come i think we are in this steady slow growth environment. Boom amonge a big but slow growth. Just think about this cautiously and think about your money. So we will be thoughtful about how we do it. I worry like tell about overpaying. Right now you worry about that . Always. Up 30 last year, just turned positive on the snp for this year. I always worry about it. Sometimes there is a tendency to think that this is our strategy and we have to pay to execute our strategy. And i always look at it the other way around, that is the recipe for overpaying. Youre trying to have a strategy that will return for your shareholders. What is it that you look for . As you put some of this money to work, what kinds of companies, what sectors in particular honeywell is a pretty Diverse Company what is it that you want to grow . I like all the businesses that i am in now. Because of the portfolio revamping that we have done, including 80 acquisitions, we have done this positions. We managed to get out of stuff that i could not differentiate with technology. We look at new places to go. We look at a good position in a great industry. Can i differentiate with Dependable Technology . If you are in this business, there are things you can defined as adjacencies. Here, you lose a lot of money. Here, you make a lot of money. Being able to recognize between those two makes the difference. So we have gas detection, barcode scanning, personal Protection Equipment because those are all things that we looked at and are very keen to the model we have. David cody, youre sticking with me. Dont go anywhere, we will talk with you about president obamas budget and whether it goes far enough to address our nations issues. You are looking at live pictures right now of we have the White House Briefing room . President obama is expected to speak and we will be carrying that for you momentarily. I will be right back with dave cote. It is time for todays global outlook. Ended theseks have are the first apps after Vladimir Putin says he hopes he will not have to send troops into ukraine. Now it is a crucial time for ukraine. Concernedinue to be about the activities of these paramilitary troops in eastern ukraine. We are concerned with the deployment of Russian Troops on the ukrainian border. And we think that during the the next two days will be crucial in implementing all this agreement that we reached today. Geneva,ng me now from what are the next steps for jputin . What is expected . The talks just ended about two hours ago. Surprise surprise, we got effectively a twopart deal. Part one, the ukrainians and the russians have agreed that all the militia in ukraine must disarm. When we say militia, that is the not so often talked about programs cheney and talked about proukrainian militia ousting the then president viktor unicode which. Prorussian militia you have seen on your tv occupying these buildings in the southeast of the country over the last few days. Of the militia in the southeast, they have to vacate. Is this deal in geneva comes two hours after president clinton was giving where hevised address also told the russian people that, by the way, this contested part of eastern ukraine, well, it was part of the russian empire up until the 1920s and was arbitrarily given to ukraine anyway. That has led to a little bit of skepticism. I caught up with the Ukrainian Foreign minister. President putin is trying to rewrite the borders. The border that existed, recognized internationally after the second world war. And after the dissolution of the soviet union. Russia and ukraine did recognize each others borders. Putin hosted a televised callin show last night. Take a look at this one. Simplyou believe that increasing the effectiveness of intelligence or Law Enforcement justify we just heard from mr. Snowden. Basically, sounding like a bit of a mouthpiece for the russian government. Yeah, i have to say it was a bit random. It was a very long televised press conference or call in show that the resident holds every year that the president holds every year. I have to say, some would say that is a bit of cedar because these callin shows are usually orchestrated by the kremlin. So president putin would have known that he would be asked a question by mr. Snowden and it is a convenient question because the russian president said, of course, no, we dont monitor our citizens, their phone calls, their emails, like the united states. We dont have the money and we have control, unlike the united states, the russian president said, over our security service. I am back here with the ceo of honeywell, david cote. There is concern right now about a potential trade were brewing between russia, europe, u. S. Is that something that is on your radar . Oh, sure. None of these are Good Development so far. All the stuff having to do with russia, crimea, ukraine, how europe reacts, how the u. S. Reacts, because the u. S. Has to do something. You cannot just let this happen. Like thisomething starts, you hope it stays small. But once it starts, you cant we have invoked some sanctions but not that many in the scheme of things. Should we be taking a bigger stand . I like to think that cooler heads will prevail over time. I am not a state department strategist so i will never be an expert on how to do this. I dont think the west can let Something Like this stand otherwise everybody starts to worry about so where does it end . Where does it stop . They could keep going. Those are legitimate concerns. Be right back. The cbo approves. Earlier today, the Congressional Budget Office announced the president s fiscal 2015 but it will boost revenue by 1. 4 joined dollars and deficit by more than 1 trillion. Now it is up to congress. Has been a notable voice. Director ofaken on the Federal Reserve of new york. Lets take lets talk about the president s budget. Is this a step in the right direction . Asif you are saying, as long we get some debt reduction, its a good thing, then you would say it is fine. It still doesnt address the fundamental issue that we have. Over the next 20 years they always want to look at a 10year basis. This is a 20 to 30your problem. The baby boomers are retiring. We will drive medicaid and medicare spending through the roof. No matter how much we control inflation, its going to happen. That is the thing that needs to be discussed and that this demographic Freight Train has been known about for decades. It is not a new development. And nobody is talking about that needs to get sorted out. I have always looked up the price for doing that would be a revenue increase. I get that. So taxes should go up . My guess is that . Revenue revenue increase sound so polite. I think i got drawn into the Washington State myself. At the end of the day, i see that as part of the deal. You have to get people to agree on Something Like this. There is a lot of entitlement reform that has to happen and the price they are going to ask for is a tax increase on the rest of us. That is the deal that needs to happen. Until it does, this thing is still a huge issue. A trillion helps, but you look out a decade and it is a 15 trillion problem. At anyway, if you look of the cbo estimates, you dont assume any recessions. That is a problem. You as a ceo of a company, you have to model in what if. Right. If you look at the next 20 years, there is two, maybe three recessions that will happen in that time. They dont count any of that, just nice steady growth. It doesnt always happen that way. Ability toout our stay competitive, according to the u. S. Department of agriculture, theyve grown from 23 of world gdp back in 1992 actually 34 . Today, they are projected to go to 47 by 2030. With this in mind, it seems to me that it is critical we engage with all these countries so that everyone is growing together. Do you think free trade is enough of a priority right now . I would say it is a semipriority. I think there is an increasing recognition of its significance. The statistics you cite are ones i use a lot because there is a fundamental shift that is occurring out there and we still act a lot like we did during the cold war. We look at it that way. We might have another cold war thing going on. [laughter] it brings up an important issue. There are a lot of people who are worried that we could be seeing signs of a potential trade were coming between europe and russia. If europe were to, say, inflict further sanctions on russia. You do a lot of business in europe. We are talking about growing the World Economy and the world pie. How much of a problem potentially is russia and what we are seeing unfold right now . It certainly is not a Good Development. How bad it is is going to depend on our both sides reasonable in terms of how they think about things and how do they resolve this. Youre right, a trade war would be very difficult. Russia provides more Natural Resources than anything else. So they need europe than they need the u. S. By the same token, europe needs their gas and oil. You dont want it to get to that point. In the meantime, getting back to your highgrowth region point, we need to make sure we are developing relationships with all those highgrowth regions to reduce trade barriers. In general, the barriers are less restrictive coming here than going to those countries. China is one example. Yeah. Its true for most highgrowth regions. Given that will represent half gdp, we need to be in there and we need to be forging these kinds of relationships today. Other countries are doing it. We need to be doing this, too. We appreciate you coming here today. Coming up next, Royal Caribbean looks east. Find out why its moving one of its newest ships to china. Adam goldstein is joining me after this break. And more on walmarts announcement that it is heading into the Money Transfer business. What it means for the industry and its rival. Royal caribbeans newest ship will make china its home. Willuantum of the seas dock in shanghai starting in may 2015. The ship will debut later this year and features include the north star cap so that will take guests 300 feet into the air. And you can skydive at sea. By adam goldstein, the president and ceo of Royal Caribbean cruises. Thanks for being here. Nice to be on the show. How important is the asian market . Really strategically significant in a way that 10 years ago we could have had no idea. This concept that we would bring one of our very newest stateoftheart ships to shanghai would have been beyond our imagination 10 years ago. Weve seen such tremendous growth overseas in the asian economy. I imagine that has a lot to do with it. How would you say this customer is different . As you try to create products that they want, is it different at all then what you would do in the u. S. . There are some differences, but we start with the similarities. The Chinese Consumer has the same appetite to see the world. They have suddenly found the ability, the permission from the government, and the wealth and income to realize their aspirations. We are playing a part in that. The emergence of the chinese outbound traveler to see the world is the biggest phenomenon in world travel right now. We have to offer them chinese comfort food to mix in with forgive me, adam, we have to go to the president to a speaking now. On behalf of the American People, our deepest condolences to the republic of korea and the families of all those who have seen their loved ones lost when a ferry sank within the last couple of days. Obviously, information is still coming in. We know that many of the victims of this terrible tragedy were students. Andamerican Navy Personnel rains have already been on the scene helping the search and rescue and marines have already been on the scene to help with searchandrescue. Inth korea is unwavering good times and in bad and that is something that i will underscore during my visit to seoul next week. I would also like to say a few words about how the Affordable Care act is now covering more people at less cost than most would have predicted just a few months ago. The first open Enrollment Period under this law ended to stay little over two weeks ago. In, we nowa comes know that the number of americans who signed up for private insurance in the marketplace has grown to 8 Million People. 8 Million People. Of people who enrolled through the federal marketplace are under the age of 35. All told, independent experts now estimate that millions of americans who were uninsured have gained coverage this year with millions more to come next year and the year after. Signs that theen Affordable Care act is bringing Economic Security to more americans. Before this law added new transparency and competition to the market, consumers saw double digit increases to their premiums. We also know that since the law took effect, Health Care Spending has risen more slowly than at any time in the past 50 years. In the decade before the Affordable Care act, insurance rates rose almost 8 a year. Last year, a group half that. Medicare costs per person have nearly stopped growing. The left of the Medicare Trust fund has been extended by 10 years and the independent Congressional Budget Office plans premiums in the marketplace to be 15 lower than originally predicted. Those savings add up to more money that families canst bend can spend in businesses, more businesses can spend in hiring workers. The cbo says that the Affordable Care act will be cheaper than a richly predicted. Lower cost of coverage projections will lower our costs by half 1 million half 1 billion. The share of americans with insurance is up. The growth of healthcare costs is down. Hundreds of millions of americans who have insurance now have new benefits and freedom fromrom lifetime caps on your care. No american with a preexisting condition like asthma or cancer can be denied coverage. No woman can be charged more just for being a woman. Those days are over. And this thing is working. Ive said before this law wont solve all the problems in our health care system. We know weve got more work to do. But now we know for a fact that repealing the Affordable Care act would increase the deficit, raise premiums for millions of americans, and take insurance for millions more. Takeaway insurance for millions more. I find it strange that the republican position on this law is still stuck in the same place that it has always been. They still cant bring themselves to admit that the Affordable Care act is working. They said nobody would sign up. They were wrong about that. They said it would be unaffordable for the country. They were wrong about that. They were wrong in trying to keep repealing a law that is working when they have no alternative answer for millions of americans with preexisting conditions who would be tonight coverage again, for every woman would be charged more for just being a woman again. I know every american isnt going to agree with this law. But i think we can agree that it is well past time to move on as a country and refocus our energy on the issues that the American People are most concerned about and that continues to be the economy. These fruitless repeal efforts come at a cost. The 50 or so votes that republicans have taken to repeal this law could have been votes on infrastructure are innovation or making it easier for middleclass families to send their kids to college. Or 50 votes to raise the minimum wage or restore Unemployment Insurance that they let expire for folks working hard to find a new job. Debatent is the repeal is and should be over. The Affordable Care act is working and i know the amerco people dont want us spending the next two and a half years refighting the political battle of the last five years. Rebuildd this year to our economy, to rebuild our middle class, and to restore our promise of opportunity, not just for a few but for all. And as president , that is what i intend to keep going as long as i am in this office. With that, i will take some questions. Lets see who we got. Kathleen hennessey of the l. A. Times. It sounds like there has been some development in the ukraine talks in geneva. I was wondering if you could describe the level of confidence in what this agreement is and how you can be sure that russia will follow through given some of the remarks from jpuputin. I dont think we can be sure of anything at this point. There is a prospect that diplomacy will deescalate the our goal,d do what is which is to let the ukrainians make their own decision. There were representatives of the Ukrainian Government, that you, as well as the united states. It was a lengthy, vigorous conversation. My understanding is the ukrainian Prime Minister gave a detailed and thorough presentation about the reforms that they intend to introduce, including reforms that provide for ukrainians who lived in eastern and southern they will be fully represented, that their rights will be protected, that russian speakers and russian natives in have the full protection of the law. And my understanding, based on that thereeard, is is an acknowledgment within the meeting that the Ukrainian Government in kiev had gone out of its way to address a range of concerns that may have existed in southern and eastern ukraine. There was a promising Public Statement that indicated the need to disarm all irregular groupsand militias and that had been occupying buildings. There was an offer of amnesty to those who would willingly lay down their arms, evacuate those buildings so that law and order could be restored in eastern and southern ukraine. The russians signed onto that statement. And the question now becomes will in fact they use the influence that they have exerted in a disruptive way to restore some order so that ukrainians can carry out an election, move forward with the decentralization reforms that they proposed, stabilize their and start getting back on the path of growth and democracy. And that their sovereignty will be respected. We are not going to know whether or not there is follow through on these statements for several days. So today i spoke with chancellor merkel. Later on in the day, i will be speaking with cameron. We will be consulting with our european allies. Over the last week, we have put in place additional consequences that we can impose on the russians if we do not see actual improvement of the situation on the ground. And we are coordinating now with our european allies. My hope is that we actually do see followthrough over the next several days. But i dont think, given past performance, that we can count on that and we have to be prepared to potentially respond to what continues to be efforts of interference by the russians in eastern and southern ukraine. If in fact we do see then that will obviously be a positive. In the meantime, we will make sure that we continue to healthier cranium government, working with the imf and others to stabilize their economy and start reforming it. We are going to continue to work with our nato allies to make sure that they are assured that we will meet our article 5 obligations and that they are secure. Before, i think i had an interview with major yesterday in which i mentioned this whole exercise by the russians is not good for russia either. Of articlesmber today indicate in which an economy that was already stuck in the mud is further deteriorating because of these actions. And in my conversations with president putin, i have emphasized the same thing. We have no desire to see further deterioration in the russian economy. On the other hand, we will continue to uphold the basic principle of sovereignty and territorial integrity for all countries. There is a way for ukraine to be independent, to be sovereign, and to have positive relationships with both the west and the east, with both its european neighbors and its russian neighbors. And that is our primary concern. La opinion. House majority leader kantor explained that you havent learned to work with them and he is angry that you are attacking his view on the lack of movement on innovation or farm. So i am on immigration reform. Right now, you have hunger strikers across the street demanding that knowledge meant of the need. I had a very pleasant conversation with mr. Cantor yesterday. I did. [laughter] as are always kind of survive surprise between the mismatch of press releases and the conversation. What i said to him privately is something that i have said publicly, which is there is bipartisan support for comprehensive immigration reform. It will strengthen our economy. It would help with our security. Relief told provide families who many of whom have lived here for years and who have children and family members who are u. S. Citizens. And the congress should act. Right now, what is holding us back is House Republican leadership not willing to go ahead and let the process move forward. So it was a pretty from the conversation. A pretty friendly conversation. Ase, i press rele although we had heard a lot of talk about the House Republicans doing something, nothing had happened yet. And suggesting that we need some urgency here. I still feel the same way. I know there are republicans in the house as there are republicans in the senate who know that the us is the right thing to do. I also know it is hard politics for republicans because there are some in their base who are very opposed to this. But what i also know is that there are families all across the country who are experiencing great hardship and pain because this is not getting resolved. I also know that there are businesses around the country that could be growing even our deficits could that weg down faster, would have more customers in our shops if we get this thing resolved. We know what the right thing to do is. It is a matter of political will. It is not any longer a matter of policy. And i am going to continue to encourage them to get this done. As far as our actions, jeh our new head of department of homeland security, has been talking to everybody. Law enforcement, immigrant to do aroups, thoroughgoing review of our approach towards enforcement. That inre doing consultation with the democrats and republicans and with any interested party. I do think that the system we have right now is broken. I am not alone in that opinion. The only way to truly fix it is through congressional action. We have already tried to take as many administrative steps as we could. We are going to review it one more time to see if there is more we can do to make it more consistent with common sense and more consistent with i think the attitudes of the American People, which is we shouldnt be in the business this is fairly of tearing families apart otherwise are lawabiding. I wont get into timing right now because mr. Johnson is going to do that review. Tamara keith. Regarding the Affordable Care act yeah, lets talk about that. [laughter] i think everyone agrees that it has flaws. But democrats have been reluctant to reopen the conversation and republicans have been more than happy to reopen the conversation but in a different way. Is hereyou say, that it to say and people have signed up, in this environment, is it possible to do the kind of corrections that the Business Community and many others would like to see, small, technical corrections . Butt is absolutely possible it will require a change in attitude by the republicans. Said from the outset that, on any large piece of legislation like this, there are going to be things that need to be improved, need to be tweaked. I think i said that the day i signed the bill. I dont think there has been any hesitation on our part to consider ideas that would actually improve the legislation. Is, if youge we have have certain members in the Republican Party whose view is making it work at her is a better is ark concession to me, it is hard to get anything done. I recognize that their party is going through the stages of grief, right . Anger and denial and all that stuff. We are not at acceptance yet. But at some point, my assumption is that there will be an interest to figure out how do we make this work in the best way possible. People signedion up through the exchanges. That doesnt include the 3 million young people who are able to stay on their parents plan. It doesnt include the 3 Million People who benefited from expansions of medicaid. So if my math is correct, that is 14 million. You have another 5 Million People who signed up outside of the marketplace the part of the same insurance pool. So we have a sizable part of the for theulation now first time in many cases in a position to enjoy the Financial Security of Health Insurance. And i am meeting them on the road. , a youngoman yesterday woman, maybe 34, with her mom and her dad. Shes got two small kids and selfemployed husband and was diagnosed with cancer. This isnt an abstraction to her. She is saving her home. She is saving her business. She is saving her parents home potentially because shes got Health Insurance which she just could not afford. Becomes, if inw fact this is working for a lot of april but there are still for a lot of people, but there are still improvements to make, why are we still in conversation about repealing the whole thing and why are we having folks say that any efforts to improve why are we having a conversation about repealing the whole thing and why are we having folks say that any efforts to improve it are somehow handing obama a victory . This is not about me. My hope is that we start moving beyond that. My suspicion is that probably will not happen until after november. , aseems as though businesses primary agenda item. Know, theat i American People would much rather see us talk about jobs, would much rather see us talk about high college costs. They would much rather see us talk about how we boost wages and boost incomes. Individualove their bottom lines. Spend thecans want to next months or year talking which provides millions of people Health Insurance. Instead of going to talk about jobs. The Economic Situation across the country, that is the prerogative. If not, we will be working for people across the country. This does frustrate me. States that have chosen not to expand medicaid for no other , youn than political spite have 5 Million People who could be having Health Insurance right now. To the states. Zero costs to the states. Than ideological reasons, they have proved by did that should they have chosen not to provide Health Insurance for their citizens. That is wrong. Those people should build to get Health Insurance like everybody else. Given all that you are saying about the Affordable Care act. Do you think it is time for democrats to start campaigning loudly and possibly on the benefits of obamacare . The military option remains on the table even as the u. S. Talks go on. Is the military option on the table with russia . Would this be through legal aid to the ukraine . I have been clear that military options are not on the table in the ukraine. This is not a situation that would be amenable to a clear military solution. We have to create an environment forcesh the regular , that the seizing of buildings cease, that a national by ukrainians, not by russians, not by americans, or anywhere else will stop they thatforward with reforms meet the interests of the various groups within ukraine. They move forward with elections. They start getting their economic house in order. That is what will solve the problem. So, obviously, russia right now still has its forces amassed along the ukrainian russian border, as a gesture of intimidation. , not ours alone , but brought portions of the international community, the aim isthat russias in the disruptions we have seen. There is an opportunity for russia to take a different approach. We are encouraging them to do so. In the meantime, we will prepare additional responses should russia fail to take a different course. We have 40 had an impact on our that is well. We have already had an impact on their economy that is welldocumented. We are not interested in hurting ordinary russians just for the sake of it. Our strong preference for mr. Putin to follow through on what is a glimmer of hope coming out of these geneva talks but we will not count on it until we see it. With respect to the Affordable Care act, my point is that we have been having a political fight about this for five years. We need to move on to something else. I think the democrats should forcefully defend and be proud of the fact that millions of people like the woman i just described who i saw on helpingania were because of something we did. I dont think that we should apologize for it or be defensive about it. There is a good story to tell. What the other side is doing and what they are offering would strip away protections from those families and from people who had Health Insurance before the law passed. They never knew if the Insurance Company could drop them if they actually needed it. Women are getting charge more just because they were a woman. Im still puzzled why they have their sole agenda item when it comes to our politics. It is curious. But what i intend to talk about is what the American People are interested in hearing, our plans for putting people back to work. Our plans for making sure our economy continues steadily. Our plans to make sure that we are training people for the jobs that are out there right now and making better use of our Community Colleges and linking them up with his nieces and how we can will continue to bring manufacturing back the way we have over the last several years and how we are going to put more money in the pockets of ordinary republicansat if want to spend all of their time talking about repealing a law that is working, that is their business, i think what democrats should do is not be defensive, but we need to move on and focus on the things that are really important to the American People right now. Reason they talk about is that there are people that object to the law and there are significant opponents of the law. What makes you think a significant majority of the American People will accept this law or are we destined to see state care as a 5050 red blue state argument. I think youre mixing up two things. You said there are people who see problems with the law. That is not 50 of the American People. There may have been folks that have been affected in ways that they were not happy about by the law. Number a far smaller than the millions of people who have signed up. That does not mean we should not be concerned about it. That is an area where i have said that we should be open to other ways that we can make it better. That is objective facts and real problems out there. Side is the general feeling of the law. This is attached to partisanship in the country generally. My view is that the longer we see the law benefiting millions of people, the more we see accusations that the law is hurting millions of people being. Debunked a the more the average american sees that is not affecting them in an adverse way, then it becomes less of a political football, which is where i wanted to be. This should not be a political football. Be something we take for granted, that in this country, you should be able to get Affordable Health care, regardless of how wealthy you are. Now, the larger issue about whether we can move past the polarization and the bitter political with democrats and republicansof which are just one small part, that is going to take more time. Of opinion lack lack of trying on my part. It did not used to be a partisan issue. There is no reason this has to be political. There is no ideological disagreement on this. People like to see an infrastructure built across united states, lets get it done. How did this become a political football . It is hard to say. Tot of us were not around pay real close attention to those debates, they are pretty distant now in the past. Apparently it took several years before people realized that medicare actually works and is lifting a lot of seniors out of despair and poverty. Been through this cycle before, it happens each and every time we make some strides in terms of strengthening our commitments to expand theand we social insurance programs. There is a lot of fear mongering and a lot of lyrical argument and debate and a lot of ccusations that were flung back and forth about socialized medicine and the end of freedom. It turns out that it is working for a lot of folks and we still live in a free market society. The constitution is intact. Then we move on. I dont know how long it will take. In the meantime, how about lets focus on things the American People care about . All right . Thank you, everybody. Listening toeen president obama speaking from the White House Briefing room. You heard him say that 8 Million People have signed up for health care. 35 are under the age of 35. He heard him speak on a wide range of issues. Ukraine is front and center on everyones agenda right now. We did hear him say that military options are not on the table. This take a quick look at the market right now. We saw the s p have its biggest gain, its best week since the month of july. The dow jones closing slightly in the red. Now are peter cook and megan hughes. Let me start first with ukraine because that certainly is something that is front and center on everyones mind. Military options are not on the table. Is he trying to diffuse the situation . A very you heard was skeptical president obama. He said there was a quiver of hope that the talks in geneva which lasted longer than anyone expected might actually produce some concrete results in terms of the escalating this. Up tossians have to live the commitment that they made in geneva. The president reaffirmed basically what he said previously that legal aid is not on the way to ukrainians will have is a dose of skepticism and the president doesnt think that a and will do what his foreign minister said the russians were preparing to do at those talks and that is to deescalate. I want to go back over to megan to talk about the headline then he came out with. 8 Million People have signed up. The thought was that people might be signing up but they may not necessarily be the Young Healthy people that are needed to help diverse affiant the pool. 35 are under the age of 35. It was a big win for the white house and they have been saying all along that this Younger Group of people would wait until the last minute and in fact they did. March 1, that number was 31 . They saw a bump up in the final days. The obama admin straight and extending the deadline for those people that were trying to sign up. Now, they have gotten over this threshold. Of perspectivet on him making this news public, he first spoke with insurance ceos. Certainly, likely in the hopes that premiums for next year reflect those numbers. We did hear a political undertone to this as well. He was basically making the healthcare. Gov is here to stay and republicans need to let it go. This might accommodate issue come midterms. Republicans have not let go of it. He got an email from congressman fred upton while the president was speaking respond to these numbers, basically saying they are based largely on the fact that it forced americans to pine government mandated coverage under the threat of penalties. They want hard evidence how many of these people were uninsured before signing up on the exchanges. The president said millions more but they did not have that hard number. Onthis was good news today the health care front for the president. The idea that democrats in tight races will actually run on a, that is not actually on obamacare, that is not likely. We will be back on street smart. Newest shipibbeans will be making china its new home. It will be docking in shanghai starting in may of 2015. For more, im joined by adam goldstein, the president and coo of Royal Caribbean cruises. We have been talking about the importance of this market for your business. What is the potential here and how is the chinese customer different from u. S. Customers . This is very significant, the chinese are emerging as a wave of outbound travelers. We want to satisfy their travel needs. They want to consume western experiences but i would say in a chinese way. We are interested for them ages to do have a question mary experiences. Enjoyld love for them to comedians and other entertainers but they will have to be speaking in chinese language, english speaking. We know they want to shop. Shop everywhere. They are interested in gaming as well. What has struck us as the passion they have for shopping. Lets talk about the industry overall. We saw the ferry accident, of course. These are different from a cruise ship but it does bring some safety concerns to mind about the vulnerabilities of being on the open water. We saw a big problem with carnival cruises. Of theyou deal with some safety issues . How do you navigate that and how youru ensure people that cruise line is safe . We have responsibility both as a company and in industry. We can take care of our customers and all foreseeable situation. The route all of the ranks in the company. Women toe our men and handle whatever might come up. Our experiences cruisers get this. The challenge we have is any anxiety, the first time cruisers might have to get over the hump. Of it is not just concerns about an accident, it might be orcerns say about a virus some other outbreak on a cruise ship. We have seen those issues. The viruses everywhere all the time. It is the second most common illness after the cold. Six percent have this virus every year. Of cruisetage customers reporting this is less than 1 10 of one percent. Carnival has had issues with this and that is what gets publicized and it is a hurdle for you to overcome. We as a company, the Industry Association has probably work more together in the last two years on all of these issues than in the previous 40 put together. We have to do continued improvement, assured the public that we have fun, exciting, and safe vacations. What do you think is the most exciting element of being on a cruise if you were talking to someone who had never been on a cruise before . How would you pitch them on it . That is a very good question. It is still a challenge. You dont get service and value like this anywhere. You dont get to see multiple ports in multiple countries. Skydiving,et to try get to see mamma mia in the theater in any other environment. What we deliver to you is incredibly satisfying, experienced cruisers know it. Firsttimeal cruisers dont know it yet and we will keep working to attract them. Adam goldstein, the president and ceo of Royal Caribbean international. More than one in four households under banked. The retailer announced they will start offering Money Transfer services at all of its u. S. Stores at prices lower than that of its competitors. We have some the details on this. So, they are getting into the banking business. They sort of nibbled at this. They have some banking cards and some Financial Services. They do not want to be a bank, they have explored the banking charter in the past. This is the latest step. It will be transfers to and from the 4000 stores that are in the u. S. You can transfer up to 50 for four dollars and . 50. If you compare that to competitors. There are money gram locations. They will undercut the money gram that is in the walmart. If you send 50 boxes ive just mentioned through these services, it will cost you 4. 50. Western union, which is also well known, is . 50 more than that. Effect it ise anticipated to have . If you look at Western Union today, if you look at money gram, money gram is plunging because it has these in Walmart Stores already. There is obviously a big concern about what effect it will have on competitors. I did talk to one analyst today it was not that concerned. He said he does not think that money gram will come out and cut prices as a result of this and can keep up the of its other services. Piper flip side, we have jeffrey cutting its price target. Definitely, the investors are selling. We talk about bitcoin almost on a daily basis and the Money Transfer business overall is changing, as technology changes. In terms of the potential market for walmart, how is that being seen . You mentioned the stats on the unbanked. Who might someone have a bank account but uses alternative Financial Services like these Money Transfer companies. Western union says that eight percent is u. S. To u. S. Transfers. There is a great market for international transfers. Percent of the revenue which was 443 million. You are not talking about money gram or the other competitors. It is a pretty big opportunity. I would say so. In new jersey, do you want to buy a tesla . The direct sales stores are banned in new jersey. Starting this week, you can no longer buy a tesla from one of the stores in new jersey. This is the fifth state to ban direct tesla sales saying that it infringes on the auto franchise laws. You can still buy one in new york. What is the store experience like . People go to a dealership when theyre shopping for a new car. If you want a tesla, you head to the mall. To our tesla showroom. The store in west chester sits between two retailers. The view of some of these stores is that many people intentionally have sought us out and scheduled a test drive before coming in and did their research. We also have those that are shopping at nordstroms that are not as familiar with tesla. Of course, the real reason that tesla set up shop at your local mall is that it would be prohibitively expensive to build a National Chain and dealerships. Just lot at a dealership, you can take a test drive before you commit. The testers are kept down in the parking garage. You get to drive them on the open road. That is insane. It is like a spaceship. There is no sound. I am impressed with the pickup. You could waste this mustang right now. Back to the store to configure my dream tesla. You mentioned you wanted to max out your model s. We have a button for that. With all the bells and whistles, my car costs north of 130,000. It is a little bit out of my budget. The get a raise, i will be back. It takes us about 23 months to cut mys the car. Must customize and a scar and then you go to a Service Center and pick it up. Not here at the Westchester Mall . No, here we will tell you how to take care of it, how to clean it. If you hate going to the mall, you can always do this online. You can even use paypal to pay for it. Tesla has seen opposition from some states, most recently new jersey band the sales. Joining me to talk about this is the National Auto Dealers Association Vice President of public affairs. Why do you see dealerships, middlemen, effectively, being important in this process . Of all, if youre ever going to retail cars, you will incur the costs of retailing cars. Whether that is signage, whether that is staff, whether that is Health Care Benefits for employees. Be incurred by either a dealer or a factory regardless. Not anyre are middlemen. Why dont you let them be incurred either factory . Why do we have to have a law not allowing those companies to sell directly to consumers . Well, ultimately, the states set the laws for the buying and selling of automobiles. To aisnt just going website and buying a pair of shoes. Were talking about a major durable good, probably the second most expensive thing someone will ever buy. This requires licensing to operate, financing to drive off of the lot, has hazardous materials. The best way for them to set up the buying and selling of these vehicles is to do it through dealers. Having multiple dealers at the same grant allows competition from different dealers. This drives prices. What about me as a consumer being able to choose what car i want to buy and when i want to buy it. This is as opposed to having some law on the books that says i have to go to the local dealership. If youre worried about competition, what you dont want is a system where the factory owns the retailing. They will be able to set prices and a certain market. Radius, therele are five separate for dealers, all of which compete. Consumers have a choice. I dont have to buy a ford. They could go buy something else. At the factory, you would be trying to offer the most competitive pricing. Maybe you would be able to offer a lower highs because you would not have the overhead of that dealer in the way. Not within the brand. If the factory owned the store, they could set it at any price. States have determined that the Franchise System is the best system. You end up with separate independently owned businesses that are competing for customers within the same brand. It also puts dealers on the side of consumers in warranty and recall issues. All a manufacturer sees our costs in performing the warranty work. The dealers are getting paid by the manufacturers to do that work. It is an interesting point that i would only point you to general motors. Keep in mind it was 10 years that they had these problems and people actually died as a result of these faulty emissions and we did not hear one single word from the dealers. There were 4000 dealers right now performing that work and is a good deal for them because the customer etc. Getting the recall work are dealing with local. Usinesses your point is that the dealers are playing a vital role in terms of protecting peoples safety. I would argue they could have protected People Safety and gm for 10 years. Where were they then . Now its too late. They are doing the work of the recall because safety is the number one priority of those dealerships for their customers. Gm from as to buy my local gm store and in the same mall like you just saw, then i would simply then go straight to gm and have them do the changes. If you are telling me there is value added because they will protect people and keep them safe, i would say, 10 years, we did not hear from those dealers. Laws. States of the they have warranty and recall accountability. It provides a local economic benefit. They are bedrock of the local economy. 15 of the tax revenue comes from dealerships that funds all kinds of services. This is an added cost to consumers. They will be retailing the cost. If youre going to be retailing and state legislatures, all of the local officials have determined that this is the best system. You are adding all of these extra layereds which only adds to the costs. What are you talking about . Im talking about the middleman. If you have cars on the lot and people who are selling the cars and you have all of the signage and things that are required to incur those costs. There is no middleman cost. They are retailing the cars the same way as a supermarket would retail anything. I dont know about that. I think there is a big difference. Unfortunately we will have to leave it there. Coming up next, i will be back. We will have the roundup for you. A lot of stories to cover in todays news. Story is tracking the of mondays open. Christina, you have the honors. Kicking it off with apple because they want to help you name that tune. They are planning to unveil a Music Discovery feature in an update of the software. It will let users identify a song and an artist. Integrated into mobile software meaning consumers dont have to separately download it. Of course, apple would be doing this because song downloads are going down and it is taking a big hit potentially down the line. They want to be a force in music. With shazam. Ing this was a big hit. This will be downloaded through itunes. The music on itunes . Shazam depends on clicks. There is an advantage for apple to get the data in advance. What do they like before they know what it is . You aresically taking data, you are applying to the arts. He will not solve that. Cannot do it better than spotify . Lets talk about the air bnp. The Freelancers Union says it was overwhelmed by inquiries about how to account for air bnp income. Sublet iny the same craigslist might have gone unnoticed. Its not for a 10 billion valuation. A relatively High Percentage are freelancers who thought of this as income. They can use this as a source of income. That is a big problem. It is curious that this is trying to legitimize itself. They are trying to get the taxes. Americans have the easter bunny. That is what americans will be celebrating. Now a russian businessman wants to the easter turkey. They are trying to get them to eat a distinctly north American Food that Many Russians were unfamiliar with. They sell bag turkeys stamped. To the this goes back idea that russia actually imports a lot of its meat. He will shoot 2. 8 million birds. The benefit of having a staterun bank. The banks thought this was a dumb idea. Staterun bank said, here is a billion rubles. We like the idea of having better Food Supplies here. The decline of the ruble has hit his business pretty hard. He has to get the feed right. Be announced in email that the launch of a new website called protect my antenna. Org. Ill contain court briefs this will affect going and watching television on aereo. It is cnet stealing content and networks asn by stealing content. Why we came the fees when steal the signal. About money. L finally, we have some congratulations that were in order. The former first started Hillary Clinton said that she was really excited, surprise prize to welcome her first grandchild. They were at an appearance together. She did not say how pregnant she was. The clintons are getting a grandkid. Thanks. Britney, cindy, and beyonce. Theyre taking a trip down memory lane to bring you the most iconic pepsi commercials. Stop ai is looking to slide in soda sales. Maybe they should just look back to some of their iconic commercials. Here are some of their most iconic ads. Up on monday, everyone, we have a big special on the of street smart weeds. We will talk about all aspects of the marijuana business, just exactly what is happening on the and inin colorado, washington. And the indications for the economy. I will see you then. On 56 past the hour. Lets get you caught up on where stocks ended the session. This ended the short holiday week. Gains todaysaw after a little changed session earlier. It seems like some of the earnings winners won out by the end of the session. We had janet yellen reinforcing the Central Banks commitment to support the economy. Herell see a rally intentionally. I am joined by the chief market strategy. When you look at this week and this sort of pumping market we have seen recently, is there any cause to think that we are through it or will we see that has of choppiness that characterized the past few weeks . We will see that choppiness. The fed is still in charge. And month they came out made their hawkish statement that we would see the Interest Rate rise. This week, they were very clear. Put back in yellen play. What we saw today in the bond market is a real telling tale. Two pieces of minor economic data. Significant selloff in the bottom market. What i attribute that to his yellens statement. As will be data dependent. We think that we know that each individual data point is subject to a lot of error. Different statements with the word whether. We know it can be driven by a lot of different things. I think we will see some choppiness. People will keep on making what you think is an error probably looking at those data points. Look at where the vix has gone, we have seen it come back down. That would seem to support further rally even if it would be a choppy one. Right, last time i was on with you we spoke about the vix. In the rally and we may have just started the eighth. The market moved down 4. 2 and the vix moved from the 12 panel down to 17. The one before that was 5. 4 when we moved to the for handle. Down hard and fast. As he spoke about last time, every time he gets down to the 12 handle. We may yet see a pullback. Im still lish. It seems like a range. It falls down to that certain level. We stocks selloff and then rally back up. It has been the back and forth that is characterized the market. We have had a crack in the facade of the bull market. We have had a few market lower highs and lower lows. We do have them somewhat minor. We have a different picture the moment we get under 1800. Thank you so much, we appreciate it. Forhis is taking stock thursday, april 17, 2014. Im Mark Crumpton in today for pimm fox. Todays theme is deals. A meeting in geneva produced a ukraine accord, a move to deescalate the conflict. In just a moment, a former u. S. Ambassador to ukraine will tell me what this means going forward. Ons, i will speak to a ceo bill ackman, who just completed a deal of his own. And we will talk to the executive who makes
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