Transcripts For FBC Markets Now 20131017 : vimarsana.com

FBC Markets Now October 17, 2013

Adam verizon. Pretty good road there. I read one analyst who said the new connection is good, but not as good as it could be. The mac that was kind of surprising. I agree with you. It sounded like a positive number when i first read it. Adam there was another positive there with verizon as well. 50 of their wireless base is now smart phones. Smartphones are taking over. Adam i am sitting next to a woman who just got her 5s. Lori i have not even told my husband yet. I think you just busted me but i was entitled to an upgrade, though. Shares of ibm are plunging to a two year low. Ibm chief Financial Officer says the company will be dealing with the impact of the china slowdown for another couple quarters. Adam president obama says no shutdown caused completely unnecessary damage to the u. S. Economy. Peter barnes is live for us outside the white house where we go next. Peter we got a little bit of a preview of the future budget and debt ceiling battle to come. The president thinking democrats and Reasonable Republicans, that was the term that he used, in a statement this morning to welcome the reopen of the government. Take a listen. There has been a lot of discussion lately of the politics of this shutdown. Lets be clear. There are no winners here. These last few weeks have conflicted completely, unnecessary damage on our economy. Peter the president also laid out his agenda for the rest of that year. He wants to try to reach a deal on a responsible budget. That was phrase. He wants to finish work on a farm bill. We saw a photo op of democratic and Republican Leaders of the house and Senate Budget leaders who have they got together to try to get started on these negotiations. They talked about Common Ground. Adam all right, per barnes. This is on a delta website. The website, apparently got is down. That will be trouble for a lot of business travelers today. Lori a lot of government workers are back online today. It brings some relief temporary relief. Nothing but a bandaid, at last. If you look at the two big issues, obamacare and levels of Government Spending, neither one of them was settled in this agreement that they reached. The issues, the problems have not been solved. It will come back the middle of january. They will be talking about a new continuing resolution or some kind of new budgetary device to keep funding the government. That will happen at the very time that a lot of these sequestration cuts are supposed to take affect. Lori the shutdown, according to s p analyst, costs 24 billion. Youth that will inspire lawmakers . We will do it again in january. A lot of them are bowing it will not happen again. On the other hand, it is not as if they have a lot of Common Ground right now. Sometimes, they do not make it. They miss it. I am not saying that there will be another shutdown or anything, but we just do not have any solutions on horizon right now. Lori even the president set that there were no winners. You bring up the important issue of obamacare. I am curious how that will be interpreted among the republican party. They have a new strategy. Their new strategy is to aggressively overseas obamacare and you will see hearings in the house. Also, they will try to, i think, take advantage or get political advantage to what ever problem plagued obamacare in the weeks and months ahead. A lot of them believe it will be a rolling disaster. They simply cannot force their will with control of the house of representatives. Republicans goal is try to extend those sequestration cuts forever. If not due back, trade some of those caught in exchange for longterm entitlement reforms some of those reforms president obama has actually endorsed. Getting people to sign off on those is a different matter. My guess is we will see some changes in the structure. Democrats will get a little more of the Discretionary Spending that they are looking for i think we will see at least tweaking with the sequestration structure when it all comes around again in january. Lori thank you for your time. Thank you. Good to be here. Lori we know he is a credible guy. Glad he came back. The government is back in business. Try telling that to the markets. Maybe you can put that money you make to work buying it in one of these neighborhoods. Adam not guilty. The reaction from mark cubans attorney. It is an interview you will only see right here on fox business. Stick with innovation. Stick with power. Stick with technology. Get the flexcare platinum. New from philips sonicare. Adam a breaking news story. The delta website is down. It will waive the 25 charge for phone bookings during the outage. Still no word on the cause or how long it will cast. The it department is aware of the issue and is working to fix it. Lori lets make some money with charles eames. Stocks down, old rising. Charles does have a couple big words. Ibm have their own problems. The bias in the market iteratively to the upside. The russell 2000 has been a monster. We do not talk about it a whole lot. You can make so much money in a short period of time. Adam earnings per share beat 2. 88. Charles the bigger banks will more or less trade sideways. Citigroup was up today. I am not a fan of citigroup. This earnings season will be unforgiving. Adam we will get economic reports again. Lori a lot of analysts are talking. This whole shutdown is shaving six tabs off of gdp this quarter. Sixteen it will be interesting. I think wall street will give it a free pass. Adam charles payne, give very much. We want to check markets with Nicole Petallides. Nicole we are looking at a mixed market. We are looking at some analyst calls. Solar city is up 6. 5 . Then there is 3d systems. A vibrating there from piper jaffrays. The stock is up over 110 over the last year. They both sound like great quality. Adam thank you. Lori forbes releasing its list of most expensive zip codes. Belvedere, california is number four. The zip code for the Upper East Side here in manhattan takes the third spot. Number one, the most expensive home listed right now in the Silicon Valley is third 3 million. The cheapest house is a two bedroom bungalow, 1. 2 billion price tag. Adam mark cuban getting out alive and stronger. We have an exclusive interview. Eight the violin that was played to call customers on the titanic. This is a fascinating story. You will want to hear about it. That is coming up. [ male announcer ] imagine this cute blob is metamucil. And this park is the inside of your body. See, the special psyllium fir in metamucil actually gels to trap some carbs to help maintain healthy blood sugar levels. Metamucil. 3 amazing benefits in 1 super fiber. Lori delta, we are understand has a problem with its website. Jo ling kent has the very latest. I called the delta main phone number they are well aware of the issue. They sounded pretty frustrated. They do not know how long this outage will last. If you do need to book a flight, you can call them and they will waive the fee that they usually charge if you do not vote on the website. Right now, delta. Com is down. No reason for it. Lori thank you. Adam we want to talk about the big victory for mark cuban. Nine years ago this happened. Stephen is the defense counsel. He joins us now from dallas. Welcome. Thank you for joining us. It is an important case for all kinds of investors. It was thrown out in 2009. That is a question left best for the sec. We said that this case was not worth the paper that it was printed on. We pointed it out at every level from the beginning. They would not listen to us i think it has to do with a lot with mark cubans celebrity status. It took, as you pointed out, it took the jury three and a half hours to come back and give the right result that the sec could not do in six years. Adam this concept of private information or nonpublic information. In this case, that hinged on whether or not others may have known about the plan to dilute shares. That information was already out. The company had approached others. They did not do their homework. They did not look at the fact that there was a 9100 spike in trading. They paid in Expert Witness 200,000 give or take to research it. Then, they did not use it in the court. There was no explanation for it. Adam were they going solely on the timing of market cubans trade . No dow on the celebrity status target. They did not look at the trading that took place on june 28, days before the press release. If they had, they would have came to the same conclusion that a three year old would have. Something strange had happened in the market and the market had already absorbed the information. It was their witnesses out of the investigation that said they had not done anything to keep the information confidential. I do not know how much easier it gets. Mark cuban did not get away with anything. Mark cuban did not do anything wrong. Adam the ability to fight the sec. The 2 million fine he could have paid is far more less than what it has cost him to defend his reputation. What are the lessons for the sec . The sec is under no obligations to turnover what is called in scope with tory evidence in its investigations or trials. If it was a criminal case, they would have been required to. That has got to change. There is no reason whatsoever a regulator who is bringing an action claiming some on the fraud at the market can hold back information that tends to show the innocence of another. Adam will mr. Cuban, will you be leading the charge to change that . If i am honored to get the call, i will be happy to do it. Adam what about mr. Cuban . I am sure he will. Adam congratulations on your big three. All the best to you, sir. Adam thank you, adam. Lori what are you a lawyer or something . You have that subject down pat. What exactly did Congress Pass . Digging through. Adam delaying the inevitable. We have the investment size for now picked. [ male announcer ] once, there was a man who found a magic seashell. It told him what was happening on the tradg floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their Trading Platform. [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with think or swim from td ameritrade. Get live squawks right in your Trading Platform sometimes they just drop in. Always obvious. 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Lori get you uptodate on the markets. It has been 15 minutes since we last checked in on the floor of the New York Stock Exchange. Nicole petallides, nicole, stocks are cutting their losses here. They are indeed. What is interesting about these markets, you see the dow is to the downside, that is because of ibm, unitedhealth and Goldman Sachs for the dow but the s p 500 has a gain. That is a better gauge of todays market, up onethird of 1 . Jason weisberg seaport securities thinks the market is poised to run higher, because of low Interest Rates almost zero where else will you put your money . He thinks the rest of the year should be good. The vix, fear index is down again today, down 8 . Back to you. Lori thanks, nicole. Adam Congress Comes together to pass a last minute stopgap spending bill to keep running not without appropriating 3 billion in questionable spending. Rich edson, with the details. What are they up to . A little extra spending with this. It doesnt have to do with extending current government appropriations and continuing more space under the debt ceiling. Look at other proposals in this made it through, now law. Forest firefighting funding for 600,000. Colorado flood relief for 450 million, and a death benefit to the widow of senator frank lautenberg. When you die in office, tradition, congressional Life Insurance policy they pay extra years salary. This is continuing the condition, however lautenberg last count was worth somewhere between 57 and off Million Dollars. One other thing is the olmstead locks and dam system. Something under Construction Since the 1980s. It had plenty of cost overruns. The appropriation was increased or authorization was increased in here. Some people are looking at location of this. Senate minority leader mitch mcconnell, this is kentucky kick back. Those are those in mcconnells office point to two other senators put it in. The other senators acknowledged they put this in. The Senate Majority leader says its a good spending of money and defended the extra spending. This is not an earmark. Saves the money, the taxpayers lots of money. Enables the corporation of engineers to continue a project corps of engineers. Had we not done this, socalled anomaly, the corps of engineers would have to spend before the last day of december 80 million to stop the project. One senate aide says there were actually additional spending items in here but a number of senators objected to them. So they took them out. Back to you. Adam rich edson, pork is pork, as my people would say, not kosher. Thank you very much. Lori talk about the bond market. We saw a spike in shortterm yields with all of the concerns about the Government Shutdown and as we inch close toward debt deadline obviously we got a deal late last night. This is look at onemonth treasury yield. It is already retreating to preshutdown levels signaling calm but with the fight simply postponed until january, how should you invest in Treasurys Orme overall . Lets bring that question to mike schumacher, head of global rates for ubs mike, wonderful to have you join us this afternoon. What is your advice for treasury investors or fixed income investors . There is so much on the plate right now. We saw short term volatility in the treasury market and discussion about the fed and when it will commence the taper, correct. Thanks, lori for having me. When you think about the fed, the fed meets next week. Some people think the fed will not even consider tapering. We look for the fed to start tapering in january. That is relevant. Because the enormous buyer Treasury Bonds more than market impact, think about duration terms injected by treasurys last self years. Eventually that is going to fade. We think not quite yet. Treasury bills are essentially zero. One month bill might yield 2 basis points, Something Like that. Yesterday it yielded Something Like 40 or 50. It came crashing in. That makes sense. That is a good sign. It is hard to get excited about buying treasurys near term. Lori is that because rates are still vulnerable, because we havent had key economic reports . We still have the fed and were in earnings season too. Nobody has a firm grasp much what this economy looks like. All the analysts are out downgrading outlook for growth because of shutdown. I think that is fair. Some of might have colleagues are pilling their hair out with no data but look back at the fed. The fed will be main driver of the market, at least the bond market the next few months. It stepped aside briefly when the sir h circus in washington unfold. Fed will be back in the front roy. People look at the fed saying what will ben bernanke do . How is janet yellen thinking . That will drive treasurys and we think that i will be the case for the next six months. Our view at least is yields are bit too low. We think they will go up somewhat, not too crazy, 20, 30, 40 points in treasurys. 10year today is yield is maybe 2. 65. Last month the yield touched 3 . To say it cant go up a little bit is crazy. Lori youre not predicting a great rotation out of bond into stocks as many were looking for like a couple months ago like a big blowup in the bond market . Were coming off a significant rally, really the best in a generation. Thats right. Eer not predicting a huge backup in bond. A little bit but not too much. If you look at yields they are back before qe2 started before qe3 started. If you look at Ben Bernankes famous beach in jackson hole in 2010, i shouldnt know the data point. But i do. It was 2. 64. Today it is 2. 56. Of the Mortgage Rates are the same. High quality bond market gone past qe and said, what is next, fed, show us the next act. Lori if youre looking for paper for protection where do you go as we wrap up here, mike . If youre looking for very safe paper in the relatively short term, go out to threeyear, maybe fouryear treasuries. They look comparatively attractive. Not as much risk as 10year. For Bond Investors in general we like the idea of high yield. We still think that makes some sense if you take somewhat longterm view. Over a month or two who knows but over couple years it looks pretty good. Lori love to have you back. Mike schumacher, thank you very much. Thank you very much. Adam the shrinking staff. Lori fox Business Correspondent charlie gasparino, as former employees question lazard capitals survival. Im jo ling kent with your fox business brief. A defense lawyer for exemployee of convicted ponzischemer i had

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