Transcripts For FBC Markets Now 20140128 : vimarsana.com

FBC Markets Now January 28, 2014

Everybody. We will have bob shiller coming up in a minute to talk about home prices. Nicole petallides is at the New York Stock Exchange to start us off. Nicole apple right now is down seven and a quarter percent. Some of the commentary that i am hearing is even when youve read about it, oh, well they did not meet the lofty expectations. The dow is 91 points. Turning things around here on wall street. Connell home prices falling. Overall, prices have risen 14 over the past 12 months. What should the take away be from this mornings report . This was a strong year. We had record low Mortgage Rates at the beginning of the year. Now they are up substantially. Now we are talking about the taper. We cannot expect this to continue. Not at this pace. You talk about Mortgage Rates and Interest Rates generally going higher. You use the word taper. What is your expectation . Is this the start of Something Big . Give us a little bit of an outlook going forward. If you look at seasonally adjusted, they are still up close to 1 . It is not just based on recent slippage. There seems to be some weakening. We do not see it in our numbers. The home prices will go up. Just not at this blistering pace. Connell okay. Fair enough. Still gains in prices going into the spring and summer and fall. Just a slower pace. What type of housing market, is there an adjective or something that you would use to describe it in terms of what the rest of the year look like . You can look at the curb at the cme. Home prices, this is a relevant statistic, a little over 20 in the next five years. That is only like 5 a year. If we hit target, Something Like 2 a year. 3 a year home price increase. That sounds reasonable to me. It is nothing to get excited about. Connell right. Or to get overly worried about. Boring is good sometimes. Let me talk to you about tonight a little bit. The president s state of the union feared we have been told that income equality will be a big focus. Part of the speculation is increased access to credit and the government coming in and helping people. You mentioned rising Interest Rates. Is there a Government Role that you see increasing in the market . As you know, i have written several books on what the government should do. I believe in markets. Free markets. The government has a role. It already regulates markets. The biggest thing that the government should do going forward, in terms of housing, is encourage the private sector to divide better products. This crisis was caused by declining home prices, putting household underwater. Their homes are worth less than they owe on their mortgage. They leverage, a diversified. We need to get back to freemarket common sense. Connell what are you talking about specifically . This crisis. Lets create a plan in advance. Everyone looks at it with both eyes open. It is not an afterthefact government intervention. Lets make a plan so it does not happen again. Doddfrank recognized this. They asked hard for a study of what they called shared appreciation or gauges. I called todd the other day and they still do not have it. Connell thanks a lot. Dagen rate to see you, bob. Lets go back to the weather. Winter weather hitting the deep south. Bringing severe cold temperatures. Connell how are the conditions where you are, jonathan . They have certainly changed over the last 12 hours. We are just below freezing. We are experiencing right now a mixture of rain and sleet. It is expected to turn into snow this afternoon with a good chance of icing on growth and ridges. They do have plenty of trucks on standby. They do not have the vast supplies of heavy equipment and materials that you may find in communities in the upper midwest to deal with the winter storms. You are likely to see some secondary roads or bridges inevitably freezing. That is what officials are urging people that do not absolutely have to be out in the elements to stay at home to be safe. Dagen what are the additional impacts on the region . We are talking about a huge region. Going from communities in texas all the way to the carolinas. Already reports of roads icing in austin texas. The Johnson Space center in houston is closed today with the exception of a view critical operations such as Mission Control. They are telling nonessential employees to stay at home so they are not out on the potentially icy roads. Individuals are going to local Grocery Stores. They had to restock their shelves with bread and milk three times already this morning. I love this weather. I go to baltimore to visit my kids. I am enjoying this weather. The weather is having an impact on air travel as well. Delta airlines have canceled more than 1800 flights today. Connell jonathan, thanks. Dagen is whether system reaches into southern virginia. They are staying inside. Not going on the road. The first crosscountry trip now in the books for tesla. Connell we will talk about that coming up. This sick cruise ship making its way back to port. Dagen more on tonights state of the Union Address. Charles payne joins us to talk about what the minimum wage means for Companies Like burger king. Sometimes they just drop in. Always obvious. Cme group can help you navigat risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Dagen breaking news on apple. Lets go to nicole. Nicole karl icahn is putting his money once again with the backing of apple. He added 500 million worth of shares. Now, today, saying you know what, i just had another 5 million worth of shares. He is waiting for them to obviously expand the purchase program. He is saying that the buying seems to be going neck and neck with the buyback program. Back in apple here. Connell thank you. The ticket search engine, 20 of super bowl seats are still available. The game is sunday. The cheap seats have come down nearly 50 . The lowest is 1150. This could be the cheapest super bowl to go to since 2002. The weather is one thing. People have to travel and pay for the hotel and everything else. Dagen at the hotels are ridiculously expensive. Dagen if you want to come to new york, come when it is not a super bowl. The trip took six days. Consumed just over 1600kilowatt hours. Separately, tesla says it will be sending two of its own teams on a reverse trip from l. A. To new york. Driving a direct route from new york to los angeles can take as little as 60 hours. Me, about 45. Connell i was just wondering how fast you drive. Dagen in terms of luxury. Driving a nice vehicle. Connell ben bernanke may want to ride out into the sunset at this time. Dagen more than 606 passengers causing a Royal Caribbean cruise to head home early. We will talk about what this means for the industry. 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Thailands government announcing it will go ahead with a parliamentary election. Folks singer and songwriter seger has died. He was also an advocate. He was 94 years old. Those are your headlines on the Fox Business Network. I am lauren green. Dagen it is time to make some money with mr. Charles payne. Addressing the minimum wage. Connell charles is here with a strike of sorts. What the president should be focusing on. Charles by the way, you can cherry pick where you want to pick it from. After you go through the first time, it was about a quarter. Here is the reality. 1. 6 Million People are on minimum wage. About 2 million make less. Less than 5 of the working population. The companies that pay out this i did a study with burger king, for instance. Burger king on the September Quarter for companyowned stores , 27 on payroll and benefits, 90 on brand occupancy and another 5 on depreciation. That does not leave a lot. Then there is another even greater reality through all of this. We look at these corporations and they are making so much money. You want to see what they did around the world. Samestore sales were down. The Company Closed 13 stores. The middle east and africa are up. Asiapacific open 39 stores. Sales were up 3. 7 . Connell i know the social part of it, are you here to sell these stocks . Charles i think it would have a negative impact. It is driving a wedge in america. It is absolutely crazy. From a practical point of view, it makes no sense. Connell thank you, charles. Back to the bone chilling cold. It has hammered the midwest for the last few days. Dagen maria is in our Weather Center with hopefully some good news. You are looking like you will be seeing relatively chilly temperatures and below average. Along the gulf coast, you will have a quick warmup. Before we see that, today you are dealing with snow, sleet and even freezing rain. We are already seeing reports of roadways having a glaze of ice on them. Conditions can be very treacherous for any driving. We do have a ice storm warnings where we are talking significant ice accumulations. It will not be gone until tomorrow morning. Eastern north carolina, that is where you are looking at more of the significant snowfall accumulations. Take a look at saturday. Atlanta in the 60s. It will feel amazing. Connell thank you. Cheryl thanks, maria. Royal caribbean cruise ship heading home early. Over 606 passengers on board. How do you decide which accrues to go on. Connell we only have good news on the show today. A page from history revisited. A plague may be making a comeback. Stay tuned to find out more about that. Dagen how about rats . We need some rats videos. [ male announcer ] once, there was a man who found a magic seashell. It told him what was happening onthe 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. 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 that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Connell still coming up on markets now, were that chinese president will take the lead. Google taking its next step to bring google glass. This could have your Insurance Company footing some of the bill. The flag that could jump off the pages of history. Dagen lets go back to the stock market. Nicole petallides is there. Nicole lets take a look at how comcast is faring. Jumping over 1 right now. 1. 7 . Of 0. 94. 53. 44. The largest u. S. Cable provider. By the way, quarterly subscribers sometimes more than six years. They continue to build upon that. Great news for comcast. Connell these concerns about the emerging markets and the stability of the markets. They could take center stage. The asian president is personally stepping in. Connell could this be a warning sign . Should we be concerned about a move like that in china . We need growth out of china. Connell it has been in the conversation. Investor confidence polls show people are pretty confident. Is it because it has not reached them yet . Good question. It has had a real boost over the last month. It shows what actual Institutional Investors are doing. This is a real not to fed policy. They are also seeing u. S. Growth coming on track. That is why we sought u. S. Investor growth shoot up. Dagen why the selloff here . The u. S. Investor, that is not what we are tracking. We are tracking big institutions. Pensions. Real money. They will be thinking of allocating their portfolio. Connell can you draw this much of a conclusion, maybe the confidence that they are showing would lead us to believe this is a healthy correction. We talked about this a little bit yesterday. The ugly word is, of course, contagion. We will watch what unfolds in emerging markets in the next couple weeks. Any surprises out of china, that is what we will be waiting for. Dagen why could it not be a global mispricing of assets. Basically, everything is overvalued, therefore we could see an unwinding of some sort of ll asset classes. There has to be reallocations. Where the reallocation goes, if it goes away, we will see markets go down. We are probably seeing more out of bonds and into equities. It would really be a question on whether or not we see equity markets go down. Connell do you think we will know in the next month or so . I think emerging markets central bankers have been wondering for a long time how the Global Economy will react to tapering. The question will just be, do we see a lot of news that spooks more of the retail sector. Does that start to take hold. Do we start to see institutions pulling back on those broader concerns. What we do not want to see is surprising Central Banks policy or anything bad out of china. Dagen bundle of. Thank you for the lead in. Not as bad as chicago. Continuing to be ground zero. Connell the actual air temperature is four below zero. The windchill is 22 below. Jeff flock is not need to be told about that. Jeff i have one of these little handheld weather meters. We are talking plus 20 degrees windchill right now. I try to dress a little less intensely today. You look at chicago. It is just one of the places that are in deep windchill today. The cold is now into the south. If we take a look at the latest radar now, you see this winter storm that is coming across the south and the east. Freezing rain, snow, all sorts of precipitation. All of these buildings you see surrounding this downtown chicago, heated with natural gas. We had a 43 month high at the end of last week. We continue to get cold in chicago. We have a windchill advisory until 9 00 oclock tomorrow morning. Minus two. It is a little warmer in my hand. Dagen there is nobody in the street except for you, my friends. Connell jeff, thank you. Dagen thank you, jeff. Dagen jeff flock. Connell a rapidly spreading stomach bug. The ship, it is hightailing it back home. Dagen a lot more of these outbreaks happen every year then you would like to think. Connell i would not like to think about it at all. Dagen yahoo reports after the bell today. Connell google glass. Aiming for the masses. Jo ling kent will have the details on that. My dad has aor afib. Brillation, he has the most common kind. Its not caused by a heart valve problem. Dad, it says your afib puts you at 5 times greater risk of stroke. Thats why i take my warfarin every day. But it looks like maybe we should ask your doctor about pradaxa. In a clinical trial, pradaxa® Dabigatran Etexilate mesylate . Was proven superior to warfarin at reducing the risk of stroke. And unlike warfarin, with no regular blood tests or dietary restrictions. Hey thanks for calling my doctor. Sure. Pradaxa is not for people with artificial heart valves. Dont stop taking pradaxa without talking to your doctor. Stopping increases your risk of stroke. Ask your doctor if you need to stop pradaxa before surgery or a medical or dental procedure. Pradaxa can cause serious, sometimes fatal, bleeding. Dont take pradaxa if you have abnormal bleeding or have had a heart valve replaced. Seek immediate medical care for unexpected signs of bleeding, like unusual bruising. Pradaxa may increase your bleeding risk if youre 75 or older, have a bleeding condition or stomach ulcer, take aspirin, nsaids, or blood thinners. Or if you have kidney problems, especially if you take certain medicines. Tell your doctors about all medicines you take. Pradaxa side effects include indigestion, stomach pain, upset, or burning. If you or someone you love has afib not caused by a heart valve problem. Ask your doctor about reducing the risk of stroke with pradaxa. I am lori rothman with your fox business. January number p expectations and was the strongest reading and five months. Consumers feeling more upbeat about the

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