Only video of the first bombing run of that new f35 fighter jet. The planes are designed to replace the f16s as the backbone of american air power. Stew is out today. Were joined by Kayla Tausche. Kayla . Thanks, tyler. We start with a story that impacts anyone who flies. That phrase please turn off your Electronic Devices we hear every single time before takeoff, that may soon be a thing of the past. Soon. Not quite yet. Shares of goinggo up big. They dont give you wifi below 10,000 feet which is what this rule changes, but the idea is maybe they will. Phil lebeau is in chicago reporting on the faas new policy. A long time coming, phil, but fun to see that it finally happened. You know, kayla, you fly a lot like i do. I think were both tired of the stare that we get from the Flight Attendant when we dont turn off our kindle or whatever we might have on at the time. Thats going to be changing. Here are the new rules from the faa. And essentially this does affect the takeoffs and the landing below 10,000 feet. What will be allowed . Ereaders, ipods, game devices, basically anything thats not sending out a signal but is still electronic. What is still banned . Anything with cell service. So you wont be able to text or tweet or send an email. And you still cannot make phone calls in a plane. Regardless of whether its 10,000 feet or above. The faa says airlines should change their policies by the end of the year. Well talk more about some who are doing it even sooner than that. If a Flight Attendant, however, still asks to you turn off your device, you must comply. Heres the head of the faa explaining the new changes. Most commercial airplanes can tolerate radio interference from portable Electronic Devices. Its safe to read downloaded materials like ebooks and calendars and also to play games. Now, we talked about the airlines who might be moving quickly to change their procedures. Both delta and jetblue say that they have filed plans with the faa to move as quickly as possible. In the case of delta, they possibly could do it as soon as tomorrow to change their policies in terms of what you can do or not do with your Electronic Devices on board. Tyler, the bottom line is this. For years weve all done it, and weve all seen people do it, that you had your device on. The Flight Attendant says turn it off. You roll your eyes and you say yeah, okay. Now the faa is saying in almost all cases, you can keep them on. Ive never rolled my eyes. Never, never, never. I promise you, phil. Another big story this hour, the federal deficit hitting a fiveyear low. Steve liesman is here to explain what it means for you and the economy more broadly. First to eamon javers in washington to explain how we got here. Hi, tyler. The Obama Administration sees this one as a big win this week. Remember that fiscal cliff deal that we had at the end of last years crisis in washington . What they did was, they raised taxes, and they cut spending through the sequester. And thats had a fairly predictable result. Its been good for the deficit. Take a look at this chart, and youll see the deficit as a percent of gdp has gone down dramatically since 2009 when it was 9. 2 . 2013, just 4. 1 . 79 of the decrease the government says it due to tax receipts. Record tax receipts in 2013, up 325 billion from 2012. Thats up 13 . So the tax man is getting his cut of this improving economy and also as a result of those tax increases. That has led to this lowering of the u. S. Deficit. Thats something the Obama Administration says is a good thing. They feel like, you know, its not getting enough attention here in all of this hullabaloo here in washington. A quick followup question if i might that Kayla Tausche raised. And that is all of the money that the federal government has collected in settlements, fines and so forth with, for example, Financial ServicesCompany Companies in the hundreds of billions of dollars over the past four or five does that count here . It does. It goes to the treasury, but remember, a lot of those settlements are settlements to particular funds. So a lot of that is going to a mortgage fund, for example, which is going to help homeowners and other things. So some of it wont show up on the treasurys book. But you know, when youre dealing in trillions, a couple of billion is not necessarily enough to move the needle necessarily. All right. Eamon javers, thanks very much. What does it mean for the economy and beyond . You look at those numbers and you see deficit as percent of gdp, 9 in 2009, the middle of the recession. 4. 1 now. Is this very helpful for the u. S. Economy . It is potentially very helpful. Were moving in the right way. I want to do dueling charts with eamon. My charts are so much prettier than eamons. He gave you the numbers. Im giving you the bars. And what you see there graphically is theres the 10 of gdp, the negative deficit there in 2009. And now were more than half lower than we were before, 4 . Where we need to be, tyler, is 2 . At 2 of gdp, the deficit stops growing as a percent of gdp. Thats where we need to be. And thats a point that 17 trillion clock you see all the time, it will stop then and then the burden of debt. Heres the problem. A lot of this has to do with revenue increases we had, a little bit more growth, higher taxes. Spending cuts. What were going to need to do is deal with longerterm entitlement problems. Thats a problem three to five years out. Now the news is good. You can see that the market is not overly concerned with the level of the deficit. However, when it gets two, three years down the road and we start to have this struggle the other way again, then the market gets concerned. And thats driven by entitlements by people like me of a certain elegant age getting to that retirement age. I would also like to point out i never left my cell phone on taxiing down the runway. Never. I know you have not ever. Steve liesman, thank you very much. Kayla, down to you. Thank you, tyler. Well, its been a volatile week for facebook. Earlier this week forced to research saying the company, quote, creates less Business Value than any other Digital Marketing opportunity. And i quote, dont dedicate a paid ad budget for facebook. Facebook called that sentiment all illogical. Facebooks ceo admitted teens are using facebook less. Investors still like it, the stock up about 5 today though it gave back some of its gains from the aftermarket yesterday and up about 85 just in the last six months. Nice run if youre a holder, tyler. Cfos facebook shall we start over . Lets rewind. That was a gaffe, by the way. Facebooks cfo is not alone in making a controversial Conference Call statement. Mary thompson here now on Conference Call controversies. Oh, these controversies, you know the Conference Calls typically are pretty mundane events, but once in a while an offthecuff can have an impact. About teen users last night. Our best announcement on Youth Engagement in the u. S. Reveals that usage of facebook among u. S. Teens overall was stable from q2 to q3, but we did see a decrease in daily users specifically among younger teens. Whoa, the stock taking a hit on those comments in the afterhours session yesterday. Though it has come back in todays trade. Now, keep in mind, tone in critical on these calls. So investors took ebay cfos bob swan at his word. At the same time, the u. S. Economy softened critically and we have a cautious outlook for the Holiday Season. A misperception claimed ceo john donahoo. He blame it had on a cold. Swan referenced concerns about the Holiday Season twice on the call, saying later. So all of that and the anxiety we see when we pick up the newspaper every day makes us fairly cautious about how we look at the Holiday Season and its impact on our outlook for q4. Lastly, what ceo would want to derail a rally in their stock . Evidently netflix. When i read a story about it being the highest appreciating stock in the s p, it worries me because that was the exact headline that we used to see in 2003. And, you know, you can definitely we have a sense of momentum investors driving the stock price more than we might normally. Well, hastings words taking some of the air out of the stock. Maybe pleasing hastings but certainly not some of netflixs investors. Thats hard to say. I dont think it is. I think you just say netflix. Netflix apostrophe. Sure. Thank you. Remember in august when aols Ceo Tim Armstrong fired patch creative director abel lens on the spot for having his camera out . It was captured. Im going to be very specific about this is patch from an experience abel, put that camera down right now. Abel, youre fired. Out. Hmm. Sounded like donald trump. A week later he apologized with an internal email. Kayla . Tyler, hindsight is always 20 20. Some executives find that out the hard way. Time warner might be looking back at its fight with cbs. You see the stock, twc, up about 3 . Thats trading at a 52week high bolstered by merger speculation. The company is now getting a clearer picture of how many subscribers left during that torturous fight with cbs earlier this year. Julia boorstins in l. A. With that story. Over for you, julia. Well, kayla, Time Warner Cable lost over 300,000 tv subscribers last quarter, almost double the losses wall street expected. It also cut its revenue forecast. Now, largely to blame is its 32day blackout of cbs channels in major markets which not only drove subscriber losses but also higher marketing expenses and 15 million in subscriber credits. Analyst Craig Moffett says the defeat by cbs is bad news for all Cable Companies programming negotiations. Writing, quote, every cable operator now goes to the table knowing that cbs not only won the war, but left Time Warner Cable badly damaged even for having fought the fight. If you thought the scales were tipped in programmers favor before, now you know that it is worse than you imagined. Now, Time Warner Cables incoming ceo rob marcus said on the Earnings Call this morning that the fight was worth it to secure a better deal than where the negotiations started, but the impact of this negotiation with cbs will bleed into the fourth quarter. Kayla . All right. Thanks so much, julia. For now well send it over to dominic chu at headquarters for a market flash. Take a look at jos. A. Bank. They want to propose buying mens wearhouse. Mens wearhouse said no. Bank says it will consider raising if mens wearhouse lets it do due diligence. Its up to the board to engage in goodfaith discussions. Both stocks are down on the news. So maybe the deal isnt well suited for investors, tyler, over to you. Thank you very much. Ho ho ho, 55 days till christmas. After a lackluster Third Quarter for many retailers, the pressure is on now for a knockout Holiday Season. Courtney reagan has target targo for an exclusive interview. Thank you very much, tyler. Let me bring in john mulligan, targets cfo from minneapolis. Thanks for joining us. I understand you had your Community Meeting yesterday. A number of analysts saying that some of your earnings estimates and projections for target canada are feeling a little too optimistic. Whats your reaction to that . Well, first, thanks for having me, courtney. You know, i think when you think about canada and what were doing there, you have to step back and really understand where were really at in the total process here. We spent two years spending 15 million remodeling stores, hiring 20,000 team members and training them, building a supply chain, building a technology, and now were at a point where on average weve had stores open for about four months. And in any undertaking of that magnitude, theres going to be some hiccups. And weve had some of those in our supply chain. Weve seen that. Sales have started a little softer than our expectations. But as we invest, we invest for the long term, and were building a longterm business. When we think about sales five years from now and getting to 6 billion and 80 cents, all of our modeling still indicates that well be able to attain that as we look at the trade areas and the demographics of those trade areas were very accurate in predicting sales in the fifth year. And in the first year sometimes we start softer. Sometimes we start stronger. But they have a these things have a way of working themselves out as we move forward and address some of the operational issues weve had had. I understand, of course, to hit any projection you need customers coming to the stores and buying. What ung do you think the mood the consumer is going into this very important Holiday Season . Well, i think its been a tough year for consumers overall. They started the year with the payroll tax increase. And lower and middleincome consumers bore the brunt of that. They were already stressed. You know, as the economy has improved slowly over time. But its been a choppy recovery for sure. And we see fits and starts with consumers, particularly at the low end. So the payroll tax had an increase on that. Our leaders in washington have done their best to create more uncertainty. Uncertainty is never good for consumers. They like certainty and like to have a vision of where were going. And so all of that together has made consumers a little says bit more theyve pulled back a little bit. But we remain very optimistic about the fourth quarter. Thats our time of year for retailers. Thats when we get excited about things. We have a great message to bring. We invest billions of dollars in ensuring our prices are right. We have a price match guarantee. Were going to be more overt in our messaging about getting ai great deal on great products in the fourth quarter, and we think it will be great. John, i want to come back to washington and its impact on your business after this quick question. Gas prices i paid 3. 01 for a gas today. Are lower gas prices going to help you this season . Well, first, thats a great price on gas. I wish we had that here. But more importantly, you know, lower fuel prices are always better for us. Weve studied this a long time, and its hard to find a direct correlation. But lower fuel prices ultimately mean more spending money for consumers. And so that cant help but be a benefit to us. You obviously watch the accounts very closely. I want to ask you about the Affordable Care act and what, if anything, you expect it to do to your Companys Health care plans that you offer to your fulltime employees and what, if anything, or how or in any way will it affect what you do, if anything, for your parttime employees, specifically would you consider reducing a parttimers hours so that youre no longer required to cover them . Well, you know, the good thing is, we have a little bit more time here. I think in the fourth quarter, we want our team members focused on providing outstanding guest service. So weve had a practice of reenrolling for benefits after the first quarter. So our Team Continues to evaluate the environment and whats going on, with the environment as it relates to health care and well make more decisions on that as we go forward. But as it relates to parttime teamer, this year we heard loudly from our Team Last Year that they want more hours. Weve been focused as we look at holiday staffing plans about providing more hours to our team if they want them. And we continue were going to still hire 70,000 team members this Holiday Season to help us with the great sales we expect to do. But our First Priority is providing all the hours that our team members want. John, you mentioned Consumer Spending, which you mentioned Consumer Spending which has been fragile. It could take another hit this friday when the food stamp benefit expires. Some analysts say that could take as much as 16 billion of spending out of the economy and hurt target, walmart, other retailers that fend on some dep. How are you prepared and what sort of impact do you think it will have . Theres clearly an impact there. Our role our the food offering for us plays a little bit different role than it does at some of the other pureplay groeshers and perhaps walmart. Food for us is a frequency business, more of a fillin business and less of your friday, saturday stockup trip. So the food business, as a percent of our portfolio, just plays a smaller role. Critically important to drive frequency but not as critical when it comes to our aggregate sales. John mulligan, cfo of target, thanks for being with us on power lunch. Courtney reagan, thanks for your reporting and bringing john along in that. Power lunch is just getting started. Next up, were talking about the b word, bubble. Where are they now and how can you clear out before they pop . And two big stories out of two big parts of the brick. Michelle on brazil, seema mody on india. Kayla, india loves gold, but there are signs demand could be slowing just before a key holiday, and that impact could be felt across the world. And from brazil, a batista goes but. If he couldnt make it, can you . Whats in your ear . Oooo a quarter check for more well, i guess i can double check. My watch [ male announcer ] it pays to double check, with state farm. Her busy saturday begins with back pain, when. Hey pam, you should take advil. Why . You can take four advil for all day relief. So i should give up my two aleve for more pills with advil . Youre joking right . For my back pain, i want my aleve. Welcome back to power lunch. Check out shares of harbin international. It reported profits and sales helped along by demand for higherend audio from higherend carmakers like ferrari and daimler, the makers of mercedesbenz.