Transcripts For FBC Markets Now 20130820 : vimarsana.com

FBC Markets Now August 20, 2013

All that and more coming up on this hour of markets now. Dagen we stretch for reasons to talk about tom brady, is that it, or just run a video of a chick in her underwear . Connell thats more the case. Dagen 40 million plus is a lot of coin. Connell great country. Dagen h and m, ousted others to get the deal, and tom brady is not the breadwinner. Connell capitalism at work. Dagen stacks losing five days in a row. We are watching the stock markets closely. So is lauren. I am, dagen. It was a day where the dow industrials slipped to 14992, now comfortably above the level, but its a shaky session. Ibm trading lowest in 13 months, something we are watching, and you cant ignore jcpenney today. Traded up, down, and heres the news. Profit, revenue in the previous quarter miss the expectations, samestore sales down in the double best of my knowledges, but but jcpenney said its looking promising and theres 1. 5 billion in liquidity. Depends what to focus on, but jcpenney has a green arrow. Back to you. Connell the twitter cofounder, ceo, head of square these days, has a relationship with Larry Summers, leading contender for the next fed chairman. Summers is on the board at square and when asked about the possibility of the appointment for summers, this is what dorsey had to say. I think Larry Summers is a great board member and i trust his guidance for our company, but, yeah, thats between larry and the federal government. Connell all right. I dont know if thats an endorsement, but joining us, director of research, and this has been the debate all summer, Larry Summers or janet yellen and who is better for markets, what do you think . Well, it would have been c, ben bernanke. It should have been like coach k coming back for the third term. Thats the right decision. Theres a chance, a small chance, but between janet and summers, summers is the safer choice, the known quantity, and, right now, its a turbulent time in the bond market, and they want safety. Connell well talk about that in a moment. Youre right with the money coming out of bond funds, a big story here in the last day or two, and the move upward that weve seen in Interest Rates. Why do you like ben bernanke so much . Theres other guests saying just the opposite that, you know, its part of the problem, rates too long, too long, all those arguments. Why are you a ben bernanke . Summers would continue policies; right . Well, right now is an extremely tensive time in the market. They could be 250 or 4 . One move one way or the other is difficult. Ben bernanke showed himself in the Great Depression doing a wonderful job. Could have had a calamity, and he was a big part of how we got through that. Connell the 30year now, but the 10year 283, could be 250 or 4 . Which is likely . Heading higher. You have been nice enough to have me on the show, and i tell them to sell all their bonds. I think a lot of that has happened, but bonds are over priced. Were more likely to go over three than much lower. I think the u. S. Economys getting stronger and tapering is going to start, and were going to end up where we should have been, in the midthrees. Connell whras the effect on the economy and target which we have not talked about yet with the 10year over 3 if thats what we see . Yeah, unfortunately, i feel confident about which way Interest Rates go, but its an uncertainty how it affects the market. Nobody really knows. Were in uncharted territories here, and the stock answer is true. If rates go up while earnings are going up and while the economys better, the stock markets going to be fine. If connell is that your prediction or you yeah, we are bullish on the u. S. Economy. Connell okay. We think energy, auto, and housing are going to produce good, high paying jobs to bring unemployment down. We think europe has bottomed, is going to get better, so we are relatively bullish on the u. S. Economy, and so we think the stock market can work while bonds continue to go down, but my level of confidence is not that high on that statement. Connell all right. Thanks for starting us off today, charlie, appreciate it. Dagen thanks, charlie. More on the bond discussion. Look at the numbers, time to make money or avoid losses with charles payne. Investors yankedded nearly 20 billion from bond mutual funds and Exchange Traded funds so far in august, the fourth largest monthly withdrawal on record according to trim tabs. You had heavy losses. 16 loss in the tlt, that Exchange Traded fund, since early may, and, of course, all of that selling is pushing longer term rates to twoyear highs. Connell carls charles with answers or suggestions on whats next and how to handle it all. Whats interesting with charlie, i kind of agree with him with respect to the bonds, yields over 3 , but i dont buy the u. S. Economic argument. What we might be seeing here is a more reversion to the main. Remember, when the world melted, everyone went into u. S. Treasuries. It was defactor safe haven for the entire planet. We are seeing that unwinding trade more than the u. S. Economy. Again, i dont disagree with the energy, auto, housing aspect of the u. S. Economy, but the broad economy, i dont know its so great that the bond market should be taking off. You had an unprecedented run in treasuries and bonds with Interest Rates falling, really, since the early 8 s, and once the selling starts and the losses start piling up, good luck stopping that vicious cycle. Im saying youre talking reversion to the saying Interest Rates could be higher, not based on economic fundamentals or inflation, but just because people dont stop selling. Thats right about risk and right about momentum because what investors have done over the last 30year period is chase performance, you know, whether it was the stock market, housing, baseball cards, whatever it was, theres a tendency to chase performance. Dagen yield now. The market benefits from that and the notion that, hey, its safe to hang out, but, yeah, once that snowball starts to become a boulder, be careful. Although, we have not we dont know what they will do with the money yet, you know. Its mostly moving to the sidelines. Some in the target, but theres a one to three ratio, savings instruments against equities. Dagen when i say chasing yield because treasuries yielded so little, they went to extremes to get yield from emerging market debt and the like. Connell well come back, important stuff, thank you, sir. I have a jag, i want to know what model caught on fire. Connell keep it here. Dagen jaguar is keeping a close eye on the investigation that caused dick van dykes car to be engulfed in flames. He is okay. Connell while hes here, you want to hear about giselle shaking her moneymaker to the tune of 42 million a year. Thats good; right . Dagen is that really the best video . What about strutting on the cat walk . Connell a money network, money story, way ahead in leading dels in income. Dagen hold judgment on arod. Ken rosenthal, our favorite sport reporter with fox sports, says theres more to know about the upcoming legal battle, and ken is here to tell you all about it. The oil market, barclays coming up on egypt, the impact, and if prices will go lower. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim. From td ameritrade. All on thinkorswim. A quarter million tweeters is beare tweeting. And 900 Million Dollars are changing hands online. Thats why hp built a new kind of server. One thats 80 smaller. Uses 89 less energy. And costs 77 less. Its called hp moonshot. And its giving the internet the room it needs to grow. This is gonna be big. Hp moonshot. Its time to build a better enterprise. Together. This man is about to be the millionth customer. Would you mind if i go ahead of you . Instead we had someone go ahead of him and win fiy thousand dollars. Congratulations you are our one millionth customer. Nobody likes to miss out. Thats why ally treats all their customers the same. Whether youre the first or the millionth. If your bank doesnt think youre special anymore, you need an ally. Ally bank. Your money needs an ally. Connell breaking news on the situation in e gipped as we try to figure out whats going on there. A pentagon spokesman told fox news that aid, u. S. Military aid to egypt, is not cut, not being cut secretly. This was after senator leahys office said the white house was temporarily cutting off aid to the country. Dagen with saudi arabia promising to cut any aid thats cut potentially, would any move by us make a bit of difference . A senior fellow at the council on foreign relations, but, isabel, a reputation of the report that were quietly cutting aid, should we cut at all, at this point . Cut all the aid . Dagen yes, to egypt. The only leverage we have is military aid. I dont know that it makes a difference at this point cutting off aid is too little too late at this stage. The egyptians have clearly made their bed. They are in bed with the saudis who are calling the shots right now, and as you see from the release of mubarak yesterday, this is something the saudis wanted all along. The harsh crackdown, something saudi arabia, i think, is all for, gung ho, and at this point, i dont know that cutting aid makes a difference in cairo. Might make us feel better as we watch in dismay whats going on in egypt, so in that sense its a strong rebuke of the government, but in terms of cutting, halting the economic aid, but keeping the military aid, i dont understand that. Connell well, it does seem difficult or confusing because its almost a definition of whats going on in egypt. We have not heard the Obama Administration come out and describe this, at least publicly as a coo. He did, the president , or members of the administration, then, i guess, by definition, if theres a coo in the country, you cut off the aid. You could do that behind the scenes and not call it that. It seems like theres something going on we dont know the details yet of. Well, i think, you know, i think the administrations trying to, you know, split hairs here and try to have the cake and eat it too, and its not working, clearly, the Egyptian Government is not listening to the United States, its very clearly listens to its more influential gulf allies right now, and our leverage is very limited, but, you know, do we also stand by and watch the military government take egypt down, what i think is a dangerous path at this point. Theres an idea that they can crush the Muslim Brotherhood and restore stability. Thats not a recipe for long term staibt. Dagen whats the end game for us . Well, the end game, i think we share an end game with the egyptian people that we want to have a stable egypt. How do you get there . From our perspective, from the United States perspectivings you cant go back to the days of authoritarian stability. I think tahir square in 2011 shows the days are gone. Whats next . Theres a scenario where the saudis regret what they bought. Egypt, as a country, has 90 million people, poor, and, yes, they stepph five billion in the immediate aid, kuwait gave four, uae three, and thats more than we have given. Connell thank you very much. Appreciate it, thank you. Dagen its not quite egypt, but bad things are happening at barntion and barnes noble. Great transition. Shares are tanking. Dropping the bid, and lauren is watching it all. Hi, da. Owning 30 of barnes noble shares dropping his bid for the retailer to buy the stores, that is. As you see, the stock is down 16 . The nook business, those sales in the quarter down 20 , still, barnes noble is looking to release at least one new nook in time for the holiday season. Barnes noble reported a quarterly loss of 87 million, and revenue fell 8. 5 , but there were positive which is sales of the hunger games, and 50 shades of gray. Back to you. Connell the company is responding to the fire that engulfed the car that belonged to mr. Van dyke on the l. A. Freeway. Heres the statement, we are aware that there was a fire incident in a jaguar xj in which he was driving, no injuries reported. We have new information at this time as to the details of the incident, but will certainly look into the matter further. Now, we have video, curtesy of tmz witness to the fire, went to the car, helped van dyke, 87 years old, by the way, helped him out of the car and it was engulfed in smoke. It just started making a noise, and i thought i had a flat at first, and then it started smoking, and then it burned to a wries p, but there was a fireman, a nurse, and cop who was just passing by. Wow. Somebodys looking after me. God is looking straight down on you. Connell thats right, man, nurse coming by there, look at that, no medical treatment, by the way, hes already. I guess thats good news; right . Dagen nothing attracts attention like a car bursting into flames, not just on the freeway, but National Attention whether the car is safe or not. Connell not what jaguar is looking for. Dagen no. Especially with a celebrity driving it. Barely dressed, but the breadwinner in the family, gieslle wears the pants. Bradys better half is the highest paid model for the 7th Straight Year raking in 42 million last year winning high profile jobs, spokes model jobs with h and m, chanel and the like, and thats how she made more than the second highest paid model, karr, with 7 million last year. Brady brought in an estimated 38 million last year in salary bonus and endorsement deals according to forbes, she makes more money. Connell thats a good twoincome household. Dagen i talked to her behind the scenes when she was with victorias secret. She looks good in person. Other models look like horses horse face connell didnt need to go that direction. Dagen she looks great, beautiful hair, great skin, and a great figure. Connell could have stopped at she looks good. Before you pass judgment on the big money case surrounding arod, more you need to know, and youll find out from Ken Rosenthal coming up from fox sports. Dagen i could have made an obscene gesture with my hands, at least i didnt do that. K07b connell just keep reading. Dagen debate of tax reform if you need cold water to put the fire out, maybe thats it. Rich has it. Connell what does giselel think of tax reform . Join us at projectluna. Com its now 23 minutes past the hour. This is your fox news minute. A military judge in maryland has started deliberating on the sentence for Bradley Manning for disclosing classified information through the welcomes, wikileaks. He faces a prison term as long as 90 years, prosecutors asked for 60 years and defense lawyers say it shouldnt be more than 25. The colonel will announce the sentence tomorrow morning. The best selling author has died at the age of 87. Now, according to the website, the author of more than 45 books, suffered a stroke last month. His best sellers included get short question, out of sight, and many became successful movies so they may sound familiar to you. Meet the latest addition to the white house. The family now has a second dog, sonny. See him right there. The obamas have adopted another water dog, and now bo has a friend to play with at the white house. Thats your fox business minute, back to you. Connell that is cute. They are so lucky they didnt get a puppy. Sonnys a year old. Connell exactly right. Another turn in the scandal, whatever you call it, saga could be a better word. The attorneys for the suspended third baseman, suspendedtobe, still appealing, they are expected to file a lawsuit against the team doctor for the practice misdiagnosing the injury. We have Ken Rosenthal with us from fox sports, senior Major League Baseball writer. Good to see you. I dont know, malpractice is the argument, some said its a distraction, but arods now attorney basically saying the president of the yankees told the doctor he never wanted him on the field. Crazy stuff. It is wild stuff for sure. I will say this. This is not new. Also, this is separate from Everything Else with the suspension. The different dispute. When the hip surgery announced in december, i heard at that time from a source that he had been to the emergency room in the playoffs, that he was on painkillers in the playoffs, and crank yes then and now say the left hip was not an issue in the playoffs, and thats the heart of the dispute. He says, hey, theres an mri showing a hole in the left hip, and yankees say, well, your problem was the right hip, didnt talk about the left hip, its a he of he saidhe said, and where it goes, hard to say. Connell to the extent if it is true he could have been doing steroids the entire career, but if they really did that, basically, youre talking black sox scandal, putting a play out out there to make him fail. Thats hard to believe, and the idea yankees would purposely lose to make the player look bad, possible they were negligent . Thats possible, but, again, these are pretty highly thought of doctors here. Chris is well. That was a, quote, passing comment. Didnt mean they messed up the surgery or took that. I have a hard time believing, a, he suggests that seriously, and, b, the doctor looks at it that way. Connell what do you think is next here . Anything in the reporting . Our head spins every day with the story, new allegations and stories coming out every day. Of course, it has to go to settlement or appeal. Thats the suspension. If a settlement, thats for less than 211 games, and if theres an appeal, its not heard until november, december, maybe beyond that. We wont have a result. Connell rest of the season no matter what . Unless they settle before the end. I have a hard time believing that happens. Con cop the other players are not happy he plays through this. Not happy, but its part of the union that agreed to the rules. Connell contactually right, another discussion for another day. Thanks for coming in today, ken. Appreciate it. Thanks. Dagen that was great. Making tax reform a reality. Rich edson talks with two lawmakers in the middle of the battle, and rising number of tax on smart phones and why its happening now. [ male announcer ] these days, a Small Business can save by sharing. Like carpools. Polly wants to know if we can pick her up. Yeah, we can make room. Yeah. [ male announcer ]. Office space. Yes, were loving this communal seating. Its great. [ male announcer ] the best thing to share . A data plan. At t

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