Transcripts For FBC Markets Now 20131230 : vimarsana.com

FBC Markets Now December 30, 2013

Will that cash go the people he wronged . All that and so much more coming up on this hour of markets now. Merry christmas, happy new year, everybody. Top of the hour, lets check out these markets. We do have some slight gains this morning. Lauren simonetti is at the New York Stock Exchange looking at all of it. Hey, lauren. Hi, dagen. Well, the dow is trying to stay in the green today, up about four points, the nasdaq and s p 500 are down. I was taking a look, its unbelievable that for all three major averages this year, theres been only two months where the major averages have been down, june and august. Pretty unbelievable when you think about it like that. Lets take a look at coke shares, number two in the dow right now. There was an article in barrons over the weekend citing a couple of things that should pique investor interest in the new year, a revival in earnings, steady dividend growth, a growing global middle class. And if you consider the fact that the Broader Market and the dow both up 26 plus percent this year, coke shares only up about 12 . So theyve underperformed and might have some room to grow in 2014. Dagen, back to you. Dagen thank you so much, lauren. The white house over the weekend announcing that the obamacare, the national web site, that signups had spiked passing the one million mark. But enrollment in Health Care Exchanges overall including the states still could be below the obama administrations own targets for 2013. Joining us now for a look at 2014 and, well, everything, Fox News Contributor, jehmu greene. Good to see you. What do you make of the number . Well, you know, its like the song, the sun will come out tomorrow, bet your bottom dollar, and it did for obamacare. Clearly, the rollout, the first few weeks of the web site was abysmal. But this is what was supposed to happen all along. There was never any doubt i, i think, in anyones mind that there were millions of americans who were desperate for Health Insurance. And they do what we all do in paying taxes or buying Christmas Presents, they waited until the last minute, and there has been this surge. These are just the numbers from the federal exchange. I think when we get those numbers from the state exchanges, were going to be even closer to that goal. The hiccup at the beginning means were not going to reach those initial numbers that were targeted, but we still have time. This is about getting more accessibility and affordability into this market. Dagen but you admit that a couple, some critical things that we dont yet know about the difference between the younger and older, are there enough young people signing up for these, on these Health Exchanges for this Health Insurance, because it is critical to making this financially feasible in the grand scheme of things. And even howard dean cautioned about this, that the administrations had trouble signing up younger people. And then once these people who have signed up, when they go to their doctor in the new year, what do they get . Has their enrollment fully gone through even if they sent the check in . Well, i am one of those people who waited until the last 48 hours or so to sign up on the new york exchange, so i will be interested to see what happens dagen was it fairly it was so easy. It was not easy when i first went on in october which then made me procrastinate. Dagen anecdotally, i heard he same thing. Thats the state exchange. It was really easy the day before christmas for we to finish up. But i think what were going to say the now the white house, they took five or six weeks to fix it and i think its surprising to people how far along they came, now that they can shift their attention to the recruitment and to really promoting it, i thinkkwe will see those numbers of young people increase. One of the issues were already seeing is that not as many latinos are signing up on the Health Care Exchanges, and when you look at the latino population, they are actually much younger than the general population. Its really important that the white house communicate, recruit, focus on promoting this earth to the latino this effort to the latino community, and that will help bring those numbers up. Dagen dont you think that the president needs to be more engaged, even appear to be more engaged in the new year in terms of because one of the problems at least from a political standpoint and just, like, the perspective of the nation was that this thing went so badly initially, where was he didnt have any answers about didnt you know what was going on, he didnt seem like he was leading the charge on his centerpiece initiative. Do you think that will change in the new year in terms of his leadership . More than just appearance. Uch it has to be hands on engagement, and i think thats exactly what we have seen coming from the president after the web site failed so potently, that he has taken a much more handson approach to this. And, again, its not going to just be about being focused on fixing it or making adjustments, its now what can he do, what can mrs. Obama do and other Leaders Within the administration to really bo out and promote this go out and promote this to the communities that need Health Insurance the most. I think his handson participation is going to be about being what he, doing what he does best which is actually showing the benefits of it. Already today there are millions of americans who now have access to Health Insurance, more affordable Health Insurance, seniors are paying less for their prescription coverage because of the Affordable Care act, but a lot of what were talking about is a faulty web site. The corner has turned, but now we have to dagen we have to see the type of care people get, whether they have access that they want. I mean, this is something that will play out over years, and we will see you in the new year. Happy new year. Happy new year. Ill tell you how my first doctor visit goes. Dagen exactly. Thank you so much. Again, well see you in 2014. The Federal Reserve finally pulling back on that bondbuying program. More is likely on the way, but the question is, can the economy handle the higher borrowing costs that will surely follow . Peter barnes is live for us from washington, d. C. With more. Reporter hey, dagen, thats right. And one former fed Economist Says thats the story in 2014. There will be a tugofwar between the markets and the fed over the economy and Interest Rates as the fed continues to taper its billions in monthly qe bond purchases. The rate on the tenyear treasury has already rebounded to about 3 , its highest level in two years in anticipation of continued tapering in 2014 and a better economy. But the rising yields could threaten the economic recovery, especially the recovery in the housing market. Former fed economist joe gag nonsays that the fed will tolerate some rise in rates because of Stronger Economic growth, but he says the fed will do whatever it takes to keep rates from rising too fast including putting the taper on hold for several policy meetings next year if necessary to show the markets it means business. The real key thing is going to be this tugofwar, i think, between the market and the fed. And its all going to be about what do the Economic Data say, is the market trying to get ahead of the data, does the fed have to pull it back. And its going to be that complex interplay that will be the story repeatedly over the coming 12 months. Reporter still, barring any major increase in Interest Rates, he expects the fed to finish tapering by the end of next year. He expects the new fed membership and leadership with janet yellen as chairman to keep current policy plans for 2014 on track. Dagen . Dagen thank you so much, peter. Peter barnes down in washington. And also joining us from washington, d. C. Is alice rivlin, former director of the office of management and budget, former vice chair of the Federal Reserve among all of the things shes done so far in her life. Alice, great to see you this day. Good to be here. Dagen broadly speaking, how high an Interest Rate say on the tenyear treasury do you think that the economy can handle and we as a nation can handle given our level of indebtedness . Oh, i think theres no magic number, certainly. It can go up a bit. That may be partly a reaction to the taper. But more importantly, its a reaction to the actual strengthening of the economy, and thats good. So i dont think theres a magic number. Im not really worried that this very modest tapering is going to interfere with the recovery. Dagen well, with the bond buying thats still going on and Richard Fisher who will be a Voting Member in the new year said here on fox business that he was pushing for a 20 billion monthly pullback in the bondbuying program. But do you think that what are the bubbles that are developing . Are you worried about stresses that are coming forth because of this bondbuying Program Still at 75 billion a month . Is well, thats sort of the other side of the coin, no. I think that the potential for bubbles in some kind of assets wasto start the taper, and they did. But they started it very modestly, and they will see how it goes. But presumably, keep the modest taper going for the rest of the year. Im not one who sees bubbles on the horizon everywhere. We really need a p general strengthening in the economy, and theres some evidence this were getting it. Manufacturing is doing better and looks like christmas wasnt all that bad, and so theres hope that weve got some momentum in this economy that can carry us into a better 2014. Dagen do you think, though, that the Federal Reserve has been and is still making it easy for lawmakers and those elected officials in washington to be fiscally irresponsible . Do you think that we will not get our own as a nation financial house in order until all of that stimulus by the central bank is gone . No, i dont think that. I think the fed is doing approximately the right thing at the moment, and its a good thing that we got the budget deal, because with it creates some because with it creates some certainty for the next, most of the next two years that were not going to have another government shutdown, and were not going to fight about the near term budget appropriations. We still have a longterm problem, but its not as bad as it was. Back when i was serving on simpsonbowles, for instance. Now with the moderation in Health Care Cost increases, it doesnt really look so scary. Weve got time to deal with the longer run. Dagen do you think that that will be lasting, though, that ongoing moderation in Health Care Costs . Many people think that it wont. Well, some people think that it wont, but ive been looking at a lot of the things that are going on in the Health Care Industry both private and public, and we are, i think, moving away from feeforservice medicine and toward more valuebased system, as they say, and thats likely to make the increases slower. Dagen alice, it was great to see you. Have a very happy new year. Well see you very soon, early in 2014, i hope. Alice rivlin. Same to you. Dagen the New York Times casting doubt on alqaedas involvement in the deadly 2012 benghazi attack. Others call that report completely false. Googles trying to make your car even smarter, and well tell you who the special person is that gets to push the button to start the countdown in times square tomorrow night. And take a look at the oil market. Oil to was trading back above 100 a barrel. Lets take a look at gold because golds had its worst year in more than three decades. Whoops. Dagen yeah, weve still got the poinsettias out, what about it . Merry christmas. I dont care if its two days before the new year. [laughter] speaking of poinsettias, three stocks seeing red. Lauren simonetti has all that for you at the New York Stock Exchange. Reporter yeah, its been an ugly two days for twitter, down 13 friday on a downgrade and down again today. Look at that, 5. 5 , so twitter certainly losing some steam. You can see that cooper tire and rubber is down as well, its ending its merger deal, 2. 2 billion, by the way, with apollo tires. Of thats a loser. That companys also down 10 this year when most everything is up. And then finally, myriad genetics, this is down very sharply in todays action. The agency that administers medicaid benefits said it was slash rates for a genetic test that predicts womens risk of Breast Cancer on january 1. Dagen, back to you. Dagen move over, ryan seacrest, a Supreme Court justice is going to be ringing in the new year. Justice Sonia Sotomayor will start the countdown at 3 1 59 p. M 11 59 eastern time tomorrow night. Sotomayor, of course, is a new york native, and shell be the first Supreme Court justice to start the countdown. One person will be missing from this years celebration, mayor michael bloomberg. He will miss the celebration for the first time in 11 years, and were sure hes celebrating somewhere with a glass of water and nothing else. Apple and google working to develop smart dashboards, technology combining apps, navigation and music all in one using their operating systems. Audi and google are collaborating on a smart dash device using androids operating system which will be unveiled at the Consumer Electronics show in will Las Vegas Next week. They already produce smart dashboards using the same ios operating system found in its ipads and iphones, and lets take a look at shares of both of those companies today, lower. And the real wolf of wall street looking to cash in. Being the focus of a movie not enough, now he wants to do reality tv. We have the details ahead. And if youve been procrastinating about buying a car, we will tell you the best day of the year to do it. Get ready for it. Here are a look at some world currencies, how theyre holding up against the dollar today. Welcome back. How is everything . Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make thahappen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Dagen whos here . Charles payne. Hes going to make you some money and why conservatives this is something youve been talking about all year yeah. Dagen why you believe some conservative republicans missed out on this rally. Well, i know that they have. In fact, you know, i was doing a radio show out of orange county, kf be i, the largest Radio Station in the country, and a lot of conservatives will call in and say im going to sell all my stocks, this is march, april 2009, and go into gold. What we rekindled me thinking about this because you and connell and i had a great conversation, the post has an article about david tenner, hedge fund manager, he should make about 3 billion this year, and the main reason is because hes a democrat. So he doesnt hate the fed. He doesnt hate president obama. He doesnt hate redistribution. And even though the word hate is a strong word dagen or he wouldnt invest based on his political persuasion potentially. With right. And for me, the idea is you can be against these policies, but you can still say do i want to be an owner of a Great Company . Dagen right. You and i agree on this. Youre more of a mutual fund person, im more individual stocks, but people have to be wise enough to understand the ownership. When we Start Talking about the 1 got richer, they got richer by way of anyone watching this show can get richer. And so i think theres a lot to this. Dagen but i own stocks indirectly through mutual oh, sure. Absolutely. Dagen im an owner. So were both believing in the idea of owning. You go to a great store, you use a great service, why not be part owner of that . Dagen youre putting right. You are basically helping put people to work. By the way, im still really excited about this global thing, . Were going to set a record on exports this year, 2 trillion. We set a record in car exports, arms exports, Refined Petroleum exports, gold exports, thats just to name a few. I think thats going to continue to be a main driver. So be wary of all these policies, be wary of politics in general. Believe me, try not to be hateful to the point where you end up hurting yourself. Dagen and if you own all treasuries, you just loan money to the federal government. [laughter] doesnt that make you feel good . There you go. You kind of hurt your own cause. Dagen dont go anywhere. After a wild weekend in the nfl, the playoffs are now set. Nick foals and the philadelphia eagles, yeah, baby, becoming the final team to clinch a spot in the postseason. Topping the only reason i said, yeah, baby, is because they beat the dallas cowboys, 2422 last night. Who else is this . Some incredible games yesterday in the nfc, the eagles will host the new Orleans Saints on saturday, the San Francisco 49ers will head into the frozen tundra at Lambeau Field to visit the Green Bay Packers on sunday. That packers bears game, another awesome, awesome showdown. The Seattle Seahawks and Carolina Panthers earning the first round byes there.

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