Transcripts For CNBC Worldwide Exchange 20141226 : vimarsana

Transcripts For CNBC Worldwide Exchange 20141226

Big day for soccer. Its also a regular working day here in the u. S. Sony the interview opened up as planned. It was released online and at 331 theaters in the u. S. , mostly independent theaters. Sony has said it will release ticket sales later today, but there have been no reports of problems at any of the theaters or with online distribution. North korea is accused of launching a massive hack attack against sony to stop distribution of the movie that features the killing of their leader kim jungun. We thought this might not happen at all. Welcome to our neighborhood. We live around here. Weve been here before. Well, the movie seemed to go off okay. No problems have popped up for sony as of yet. Elsewhere, sonys online play station store and microsofts site suffered disruptions on thursday in a possible cyber attack. Both Companies Say theyre aware some users were having trouble signing on. An obscure group called lizard square posted online that it was responsible for the trouble with those video games. They were open in business in japan and china today. The nikkei, up today about 10 yeartodate, up by about 0. 5 here and just flat for most of the day. One easy way to play the japan trade here in the u. S. Is through the msci figure ewj. Not as strong, down a little bit more than 5 so far for the year. And the shanghai market was, you can see here, as well, up nearly 3 today. Its also up about 45 so far in 2014. The ishares china tracks chinas biggest 25 stocks. Its up around 35 this year. So lets get a check off how the u. S. Shares will open today. Futures are showing some signs of life. The nasdaq up about 68 points and we look to build on those preholiday gains. We have four full days of trading left in 2014. The s p 500 settled at their record price 51 times this year. Its up more than 12. 5 so far in 2014. The s p also hasnt had four straight down days all year long and that is a record in and of itself. Today, the dow will open and yeartodate the dow is up 8. 7 . Procter gamble, visa, disney, cisco systems, home depot and travelers are all at multi year highs. Here with us to talk more about the markets are carter wurth and ken cayman. And we want you, our viewers, to chime in today. Where will we go in the First Quarter of 2015 . Will they rise or will those market fall . Go to krn r cnbc. Com boat. Thank you so much for joining us here on this early edition. I want to talk about how the markets are steadying up. The santa claus rally looked like it was going to start the day after christmas and looks like it can continue. But there are some reasons why some traders are more pessimistic about what was happening. Ken, maybe well start with you. What is the outlook as people start to look towards 2015 after a nice run of stocks over the last couple of years . Its hard not to think you might have taken some from next year into this year. But i think as we look at next year, especially in the beginning of the year, i think were going to see potentially a choppy period for markets as people start focusing in on the backside of this story. The sectors in the market do not do well when oil goes down. The fact that labor markets increased a lot on the back of, you know, the energy markets, also. So i think were going to get through some of that in the beginning of the year and take a rest from this huge run weve had of late. One of the big drags on the market overall has been these the falling prices. It drives costs down for consumers and sectors out there. But the energy market, can we consider that drog to be even more pronounced in 2015 . Our lunch is that its largely played out. The real question, at least by our work, is that is the bull market intact . On the headlines, its been a good year. If you take s p or whatever indetective you might refer to, the dow jones, like the russell 2,000, all the s p and so forth. The broadest measure of equities. Its up about 14 on the year, about but the average stock is up only four and the medium stock is actually down. Its not really as much of a bull market as it would appear because all of these market cap weighted industries are being driven by super cap names. So we think a lot of the stall that has gone on after a big bull advance last year, because 13 was the big year. This has been a turning year. And we think we get more turn in 15. Now, when you look at the charts, one of the things you look for is whether or not these patternes have repeated themselves in history. So as you look towards 2015, can you say you are seeing signs the bull run is in for a bit of pause . Are we do for a correction . We had like four down days. By all accounts, that down draft, a 5 selloff coming into the last week and a half, these are the vibrations that start when you have a consistent ball thats now quite mature. So lets talk about this. If we look at whats happening in 2014 to carry over into 2015, there have to be some place thats outperform the market. One of the things thats been nice is that certain places fundamentally have outperformed others. As we look towards 2015, where do you think the outperformance comes from for the u. S. Stock market . I think you have to look at financials. If we start seeing Interest Rates normalize, whatever that means in the future, that financials have some pricing power. I think youre going to look at technology doing very well. I think also the consumer type things. I think the huge dividend is the second half of the story. No one is running out because they saved 50 last week, but at least theyre not getting a cumulative effect of people not saying my budget for energy, gas and home heating has been reduced. Plus the input costs of so much manufacturing is energy. So i think these are stories that are going to lump some real positive events into the end of the year. I think we could see a choppy period in the beginning of the year. Carter, where would you stay away from in 2015 . The least attractive here would be industrials, one. And Consumer Staples. We think the strong dollar hurts that situation a lot. We think the valuations are stretched. We dont think theres a lot of opportunity here. Guys, based on the 82 of people say that stocks will stocks rise in the First Quarter of 2015 . 82 say no and 18 say yes. So four out of five people think the markets are due for a pullback. Guys, thank you so much. Now, last year, it was a shipping mess. You can blame the weather all you want. Blame retail and online shipping strategies, everything. This year, it looks like things went a bit more smoothly. Having springlike weather in most of the nation didnt hurt things. Tisch is in dubai right now. Satish, how did you i mean, if you look at u. P. S. And fedex this year, youve got to say that they did better than the same time last year, correct . By a huge margin. The service in the last couple of days of delivery during this week was at 99 many 6. No Service Industry operates at that level. I think all of their employees must have felt great to provide a Merry Christmas for everyone looking to have that experience. Now, fedex and u. P. S. Had some seasonal hires this time around. How much can we expect at least the logistical issues to be resolved because of the seaso l al hires and do they carry that same efficiency into the First Quarter of 2015 . The additional hires, 50,000 at fedex, 90,000 at u. P. S. , and when you consider they have total of 300,000 employees at u. P. S. , thats a part of the employees. That obviously added a lot of cost to them. But it goes a long way to managing the volume increased that they have which could be up to 30 , 40 increase. And i think going into the First Quarter, a lot of the employees are not going to be part of it. One is going to drop down to volume for both of them. However, not having the problems that sort of comes at this time and then have to be corrected afterward, they wont have to deal with that which is a huge relief for every employee at these companies that theyll be able to operate at the normal level. Really quickly here, as you look towards the metrics that investors will be watching in the coming months, what are the most important things to watch for out of fedex and u. P. S. As we go into earnings season next time around . I think what they need to look for is did they achieve the volume levels that they were staffed for . They added all these people and technology in mays to handle a certain volume level. If the retailers, because the weather was much nicer, limited some other people from online, but ended up goss going to the store, then they may have had more people than the volume that was needed for and as a result it could be impact on the earnings. However, what i can tell from you my years of working with industry is when you have a service problem, in addition to customer dissatisfaction, the cost of recovery is much greater. You will see a better result from the same quarter as last year. These companies are such a Large Consumer of oil. And the decline in the oil price is such a flavor of stocks, they should look at the transport as beneficiaries of that. That oil price is going to drop out in a lot of industries. Our thanks, satish jin did he l of the Sj Consulting group. Now, moving on here to whats going to happen, when we come back here, weve got a buy who i would imagine really got what he wanted this time, at least for christmas. See who bought this 70 million mansion so high up in Beverly Hills that you can see right down on the lights of l. A. Were going to give you the name, show you how he made his money and take you inside this house. Its really some amazing stuff here. And a hot topic in the last several weeks here, should Police Officers wear body cameras . In one city not too far from l. A. , theyre already wearing those body cams. See the sights and sounds of Police Officers see up close next on Worldwide Exchange. Technology has enabled a lot of this stuff to happen that whenever inspiration hits you, youll be able to find a market somewhere for it. But on the minus side, when are we all going to sleep . Were awake right now. Through the magic of television, im back here at our cnbc headquarters. Los angeles has announced it will kwequip 7,000 police offics with body cameras. Our own jane wells reports now on one Police Department not far from los angeles where the officers are already armed with body cameras. Youre about to see sights and sounds from the war on crime that youve never seen before. For the last three years in realto, before ferguson, before new york, before cleveland, these Police Officers have been wearing body cameras. This is what my camera is seeing live right now. The chief thought cameras might build community trust. The whole experiment wasnt figuring out whether the camera was the right camera. It was really more to evaluate the impact that the cameras would have on law enforcement. The chief used grant money to pay for assistance from t. A. S. E. R. There was almost an 80 drop in complaints and a 60 drop in use of force. Sergeant josh lindsay helped roll out the program, which consists of a camera, a battery pack you tap to turn the system on and a Smartphone App that lets you see your shot in realtime and add information. After each shift, all videos are downloaded and occur rated automatically using t. A. S. R. Software. Has it modified your behavior . Absolutely. But the sarmt says the camera has affected the behavior of the public. The couple of people have mentioned it to and i say, just so you know, im recording everything. That even though they might have been a little angry at the time or whatever, it seems like its calmed them down just a little bit and theyve gained a little bit of compliance from them. I asked this man pulled over for speeding what he thought about being videotaped. Now on both sides of the party, we know that theres video evidence. Its no more of a he said she said. Its more of a now theres proof, you know . Hey, douglas, step out out and see your kaeps hands where i can see them. The chief says some video clips have exonerated some officers, but led to disciplinary against one. The cams only work if you turn them on. Can you delete . No. Not at all . Not at all. Chief ferrar eventually hopes to see video streaming in realtime to dispatch or supervisors. However, its clear cameras dont always stop misconduct. And rialto says this sa tool, not a solution. If you have a problem with your community, a camera is not going to fix it. It could be abdomen interesting theme in the coming months here in the u. S. 2014 saw a rise in spec mansions. One l. A. Home received a lot of attention if it was going up and just found a pretty famous buyer in the Business World willing to pay top dollar for that real estate. Here is cnbcs editor rob frank with more. Marcus pearson is the ultimate bachelor, 35 years old, a bachelor and now he has the ultimate bachelor pad to match. He just bought this home in Beverly Homes for 70 million. Its 23,000 square feet with eight bedrooms and 12 baths. It has a massive lounge with a wall of glass that looks out on an infinity pool and a view of l. A. And the ocean. There is a hydraulic lift that can bring your you bughati into the living room. It hats three bars, two for drinks and one for candy with 200000,000 worth of confection. From the art and the furniture to the cavala table settings at 3,700 each. All of it is included. So persons can move right in. Now, just think of the parties you could throw in a mansion like that. Now, as we hit the end of 2014, most of the reporters here are predicting whats ahead in 2015. At the same time, were looking back at what we said would happen in 2014. Im a man that is not afraid to say i was wrong, so ill give you my scorecard for the year that was and show you where i think were going next year in the world of sports business. Plus, gwenths new digs from the business to the stage, its a candid interview when Worldwide Exchange comes right back after the commercial break. Of db connector and ensure verbose flag is set in case of problems. clapping sound isnt the cloud supposed to make business easier . Get the one that can connect to the systems that you already have. Today theres a new way to work. And its made with ibm. This week, were looking ahead to the new year. I took a look at the sports world. But first, lets see how he faired with my pick for 2015. Keep in mind, im a man that clearly knows when to admit that i was wrong. Last year, i said those monster Major League Baseball contracts were a thing of the past. Strike one for me. John Carlos Stanton signed a monster 13year b 325 million deal this offseason. Now, i also predicted that the nfl would embrace next Generation Media technologies up. I was right here with the league introducing that nfl now product this time around. Finally, i said 2014 would be a ticking point in Major League Soccer here in the United States. Well call it half right. Mls tv ratings rose, but they still cant come anywhere near with competing against the major leagues here in the United States. Well see how they do next year without star landon donovan. Now here with my predictions for 2515. So listen up and lets get the game started. From arod to Donald Sterling to ray rice, scandal plagued the sports world in 2014. Here are three bold predictions for 2015. The nfl crosses the pond. After sellout crowds for three games at whimbly stadium in 2014, the National Football league will announce the first ever International Franchise in london. And weir not talking about nfl europe part two. With more than 8 million casual nfl fans in the uk, there is demand. Student athletes cash in. As ncaa revenues grow, so will student athletes. In 2015, the ncaa will continue to loosen rules to allow College Athletes the opportunity to get paid. And not just scholarships, but also a cut of the money they help bring in to each school. This could away game changer. Two words, triple crown. The year, 1978. The horse, affirm. The last one to win the most coveted distinction in horse racing. 12 horses since then have had a shot, but all fell short at the Belmont Stakes and its torturous mile and a half track. In 2015, the triple crown drought ends. All right. So theyre pretty bold predictions. They may not come true but hey, im going out on a limb there. Gwenyth is an entrepreneur taking on the likes of Martha Stewart with an online site and investing in a chain of blow dry bars. Cnbc sat down with her for an exclusive interview. What does it mean for you two to be partnered . You know, i think that my strengths are in anything aesthetic. So the look of the salon, trends, social media, and i also im also very interested in the Business Aspect and ive learned a lot from ari. Its been a fascinating experience. Why the blow dry bar business in general . How big do you think the business could be overall . For me, its an Amazing Service as a customer. The idea that you can go in and get a 20 or 30minute blow dry and be out the door and ready for your whole die of meetings and parties, i think its amazing. Im in the midst of having strategic discussions with several large well known retailers that are allowing us to put stores inside their stores in order to generate the traffic this they need as a result of online shopping. You just hired a new ceo away from Martha Stewart. Is thislty of talk about you being the next generation Martha Stewart . Well, i dont think of ourselves as that. I think this is a very modern lifestyle brand and its not autonomous or collective of women. And i think its really about, you know, we sort of call it contextual commerce part. Theres a lifestyle part and a customer start and weve weaved them together. And, you know, obviously, martha

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