Transcripts For CNBC On The Money With Maria Bartiromo 20130

CNBC On The Money With Maria Bartiromo January 28, 2013

She loves to go shop shes all out of control she cant stop designer clothes, jewels, hair shes throwing money everywhere my head is spinning head is spinning oh, oh, oh, oh shes a princess shes a princess shes a princess shes a princess modernday princess in perhaps the most unique super bowl matchup ever, brother against brother. Add to that, the pending retirement of ray lewis has set the stage for emotion and drama in new orleans at super bowl xlvii. And we are officially under way with super bowl coverage for new orleans, with the niners and the baltimore ravens. Welcome in to super bowl live, delivered by papa johns, for the next three hours. I have super bowl champions to my left, darren sharper, and heath evans. The 49ers at last check are in the air. They are about 20 minutes away from landing in new orleans. When they do land where does that put them, over arkansas . Roughly arkansas. We should get a flight map up there. Were not known for geography. When they get to louisiana, theyll be landing in new orleans. Well take you the niners press conferences as they get the hotel. Well show you the niners walking down the jetway down to the tarmac. Well bring you everything from the 49ers arrival as he head on to new orleans. They beat the two seed, they beat the one seed to get to new orleans. Here they are, the San Francisco 49ers, looking for their sixth super bowl. And they packed up early today, in santa clara, california, headed to the airport to san jose to get on that plane and to fly down to new orleans for the tenth super bowl that that city will host. Tied with miami now for the most alltime. There they are, guys, getting up there on the jetway. Nice. And flying away. You know whos already there, albert greer, who covered the 49ers all week. He has beaten them to Louis Armstrong airport. It is beautiful, clear, a nice night for flying, i would assume. When they get there, what are the niners going to do . Well, andrew, like you said, the niners will arrive here at Louis Armstrong international airport. You hear less about europes going to blow up tomorrow. So youre not seeing over enthusia enthusiasm, but its certainly better than a year ago. Yeah u its definitely commerce. Their theme here is resilient dynamoism. I actually think growth will be moderate with not necessarily a lot of volatility around that. That it might be better, it might be worse. See, im hearing a lot of positives about the u. S. Economy, if washington can get its act together, but europe is still a big issue. What do you think about europe right now . Have we made progress . And whats to come . Well, i think theres some big, long term things they need to do in europe over the next 57 years. Theyve done some structural forms. Theyve raised their pension ages. Theyve done labor market reforms. Nothing has happened in the united states. Absolutely nothing. And i think their reasons for optimism from the shale, which, by the way, thats an area where people are excited to talk about that. And, you know, theres some optimism coming from the easy money, i suppose, still. But i think in the united states, you know, if we get to the consensus, which seems to be 3 at the end of the year, i think that would be good. Let me ask you about the economy. Relative to what ees going on washington. We voted that the house extended to see a debt ceili ining for a months. How does this play out . Forever. I mean, thats the short answer. Forever. They dont agree. So were seeing an overlay of this, you know, one side the republicans, the other side the democrats. And i must say, postelection, president obama has become more election. Its wider. And they dont agree about military spending. They dont agree about what taxation should be, on and on and on. Gun control. They dont agree. And on the other hand, you know, we have this sort of slow economy that makes it more difficult to cut a deal. And i should add to that a constitutional crisis, in a way, because this whole debt ceiling has been a weapon that the house of representatives has used to gain power. Its not just the republicans versus the democrats. Its the house versus the president. Meanwhile, these markets are on fire. Another good week for the market. The s p 500 hitting a new fiveyear high. What is driving stocks . And do you think its sustainable for the year . Some of the risk has been pulled out of the of the market. So the most recent is three months. Some of the ris ks. And maybe just that the election isnt determined. Maybe some are happy. Some are, some arent. But its solved. Markets dont like uncertainty. So even though it wasnt very likely the European Union would fall apart, even though it wasnt very likely the u. S. Would fall on its debt, i think that lifted markts a lot. Meanwhile, new appointments in the obama administration. Timmy geithner, the last day was on friday. I want to ask you about his successor. Hes certainly served during a tumultuous time. If im going to give him one grade, im going to give him an a. Are there things he could have done better . Yes. Do i want to relive the financial crisis and try out my theory . No. I thil nk he has to give credit the economy is moving back on its feet. Were still huge on employment, we still dont have a clear path to fast growth. Its very much unfinished business. Jack lew, whats your tame . I dont know him, maria. Its hard for me to have any personal judgment. I have to say i was surprised by it. As a complete outsider, i dont know. Theres a little bit that president obama doesnt know what to do and not so much to give him new direction. Pleasure having you on the program. Thank you so much. Up next, were on the money. How would you feel about taking an 11 million pay cut. I think its appropriate. The board had a very tough decision to make. My conversation with jamie dimon, about his Housing Market and the u. S. Economy. And is the world big enough for two oprahs . Im talking with chinas oprah. Take a look at how the stock market ended the week. [ male announcer ] to hold a patent that has changed the modern world. Would define you as an innovator. To hold more than one patent of this caliber. Would define you as a true leader. To hold over 80,000. Well, that would make you. The creators of the 2013 mercedesbenz eclass. Quite possibly the most advanced luxury sedan ever. See your authorized mercedesbenz dealer for exceptional offers through mercedesbenz financial services. To the best vacation spot on earth. all the gulf it doesnt matter which of our great states folks visit. Mississippi, alabama, louisiana or florida, theyre gonna love it. Shaul, your alabama hospitality is incredible. Thanks, karen. Love your mississippi outdoors. I vote for your florida beaches, dawn. Bill, this louisiana seafood is delicious. Were having such a great year on the gulf, weve decided to put aside our rivalry. Now is the perfect time to visit anyone of our states. The beaches and waters couldnt be more beautiful. Take a boat ride, go fishing or just lay in the sun. Weve got coastline to explore and wildlife to photograph. And theres world class dining with our world famous seafood. So for a great vacation this year, come to the gulf. Its all fabulous but i give florida the edge. Right after mississippi. You mean alabama. Say louisiana or theres no dessert. This invitation is brought to you by bp and all of us who call the gulf home. Make no mistake about it, jamie dimon says what he means and means what he says. I spoke with the chairman of j. P. Morgan chase. News last week that you took a pay cut as a result of the lond london whale trading loss. First, i didnt take it. I was given one. You were given a pay cut. Which i think is appropriate. The board had a very tough decision to make. We had a record year and a bad. We had one terrible mistake in the year. Look, weve fixed the problem from the financial risk for the most part. Weve disclosed both a Company Report and a completely independent board report, independent outside advisors, et cetera. The regulars will u of course, have their views to do. So it will be more on going things from that. But weve mostly got the problem behind. Weve cleaned up c. I. O. Weve changed procedures to make sure we manage the company properly. So what kind of changes might we expect Going Forward . Restructuring how the govern nans is done . Last year, i think 1. 8 trillion of capital or credit for consumers or businesses. We had a problem. Weve fully acknowledged it. Its the same bank that went through 07, 08, 09, 2010, 2011. For the most part, did fine. Whenever a Company Makes a mistake, you should analyze it and try to be better for it. So most of the mistake was the. C. I. O. Let me ask you about the u. S. We saw that mortgage originations were huge for you in the quarter. Youve been talking a lot about the last couple of years of housing showing true improvement and having bottomed. Where are you in that . What are you expecting in the next couple years . Housing is totally bottomed. You saw today that homes for sales come so far down that theyre in short supply. Theyre all leading indicators. Its cheaper to buy than to rent. Alltime affordability. Prices are low and Mortgage Rates are 3. 5 . Its not going to be an absence for our economy. I really think at this point, the economy will drive housing. What are you expecting elsewhere in terms of regulatory environment. Were all wondering how doddfrank plays out, were all wondering how the vocal rule plays out. What if it materializes and forces a separation from proprietary trading . Thats not the vocal rule. Proply terietary trading no one is doing proprietary trading. I always remind the public we have the best Capital Mortgage in the whole world. Im not opposed to the intent of the volcker rule. We have the best markets in the world. So marketmaking, we serve 20,000 customers. We give them great prices. They come to us because we give them a good price. Just like walmart gives you a good price. And we do a lot of it, you know. Thats a good thing. It keeps the cost of issuance cheap for retirees, pensions. In terms of the Federal Reserve, how do you offset this difficulty in terms of making money in such a lowrate environment. I keep on hearing that the banks are a benefit and subsidized. Youre more right. It hurts us more than helps us. So weve told the world it squeezes our net income by about 500 million dlarsz a year. There will be a reverse side to that. Were investing in the business as if it were a normal environment. Its like if you were running a pizza shop and the cost of mozzarella was higher, you wouldnt stop selling pizzas. You know, we try to be long term there and think it through. What policies will create jobs . Thats what were all trying to figure out. How do you create jobs. If we had done the grand bargain, it doesnt have to be exactly the one that anyone wants it. That showed that america can make decisions. It set a more effective tax system. It reduced taxes Going Forward. And i think we could have had a booming environment. I may be wrong. Thats my own personal belief. If we had a grand bargain, america will take off. I think its very important for america to get strong. The rest of the world needs us to. Europe still has its issues. I think its important that america kind of took the lead here. What does your gut tell you about all of this money moving into stocks recently . Do you think this is sustainable . Yeah, if the economy grows, its sustainable. You know, its not just america, its european, japanese and chinese companies. But youre still buying them at fairly good prices. And your alternatives arent really that good. So, yes, im comfortable owning stocks right now. My thanks to jamie di plrksz on. The state of business, the state of investors and the state of europe all part of the conversation here this week from citi ceo to a billionaire philanthropist. Heres what they had to say. Our strategy is really focused around a few of the big secular things that are going on in the world. Globalization, urbanization, dijtization. If you think about globalization and you look at whats going on in the economy, most of the growth is coming from the developing countries. The market, as you pointed, they were comforted. Investors had Something Like a 15 increase in their 401 ks last year. The net wealth investors to participate and theres obviously a rotation from bonds to equities. Theres a general sense of almost euphoria that the crisis is over. I think that is somewhat premature because the fundamental, internal inconsistencies in the system have not been addressed. Up next, we are on the money and so is yang lang. The woman many people call chinese oprah. Her reach, her media empire and how her generation is reinventing china. And you can find us on Facebook Maria barcheromo. My next guest is referred to as the chinese oprah. Yang lan is the host of several National Television shows in china such as yang lan oneonone and her village. Lan, its nice to have you on the program. Maria, thank you for having me. Youre welcome. Tell me about your experience . Everyones trying to figure out whats going on in the country. How has your week been . Well, it has been terrific. Im meeting so many people and updated by information on so many different fronts. And, of course, china is a hot topic. Actually, this is, i think, the most important and critical period of time. In chinese history. We do look forward to our new generation of state leaders can move this country forward to be more open, democratic and giving people more choices and opportunities. But, now, you do read mixed messages over time. So sometimes im confused myself. Do you think that we will see a moreopen china . They were telling me about wabo, which is the equivalent of twitter. Thats a social media. Yes, in china. Is that making a difference . Definitely, i think technology is providing the largest public arena for chinas people to give them a voice. So i think, you know, when people are talking about where china will go, i think theres only one sensible orientation, which is to be more open and democratic. Now you have how many followers on weibo . Id have 35 million. I tried to make some good changes. You made a couple comments about social media allowing to let off steam . Definitely. Definitely. Also, they are contributing to the social and economic progress of the country by corruption and by debating on Public Policies from traffic to housing to education to medical services. And, also, its great fun and entertainmented. You see people very creative and especially young people. I always enjoy reading their comments and things like that. That is fantastic. Youre a selfmade entrepreneur. So impressive. Several television shows, a growing media empire, hence the oprah comparison. Its a compliment. I have a lot of admiration for her for what she has done to empower women. I have a lot of admiration. So tell us about your show in china. Who is your audience . I have two major shows. Oneonone is a more indent interview show with movers and shakers around the world. Its been on air 13 years and ive interviewed more than 600 leaders around the world including many u. S. President s and secretary of states. Another show, her village is more like oprahs show plus the view because i have two other younger women who are providing different perspectives onto certain issues that women care for. And we have celebrities, as well. As gras routes women telling their stories. Are there professional opportunities . Are they growing for women in china . Oh, absolutely. In china, about 48 of the work force are women. More than half of college attenders and graduate School Students are women. About 30 of business School Students are women. And 30 of entrepreneurs are women. So Chinese Women are becoming a very critical voice in the society. And whats your take on china today in terms of whether its slowing down, this transition from an exportled economy to a consumer economy . Is that on track . Well, i think people have different ideas and expectations about this pace of transition. But theres no issue that everyone believed that we have to go through this structural change of economic prublgtivety. To be more environmentally friendly, to be more sustainable, to be more valueadded is definitely the way to go. And i think to make people spend more and save less is to provide them with a more complete social and in medical welfare so that people feel safe to spend the money there. Sure. Its still a big saver of community. Yang spsz lan, good to have you on the program. Thank you. Up next, a look at the news this week that will have an impact on the money. And then the art of coming together to solve the worlds problems. The scenes of davos offered tranquility on the mountain. [ male announcer ] this is bob, a regular guy with an irregular heartbeat. The usual, bob . Not today. [ male announcer ] bob has afib Atrial Fibrillation not caused by a heart valve problem, a condition that puts him at greater risk for a stroke. [ gps ] turn left. I dont think so. [ male announcer ] for years, bob took warfarin, and made a monthly trip to the clinic to get his blood tested. But not anymore. 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