Transcripts For FBC Varney Company 20121205 : vimarsana.com

FBC Varney Company December 5, 2012

Soon, this is a call, publicly, for an obama bailout. So, who is next . California, illinois, good question. Raise tax rates on the rich or no deal. Yeah, the line has been drawn again. President obama says america is poised to take off, but only if the republicans agree to tax the rich directly. He will only accept higher tax rates. How will Speaker Boehner respond to that . He speaks within the hour. And how about this, top anchors at a news network visit the white house for a cozy chat with the president. Tell us, mr. President , how can we sell your tax the rich policy . Citigroup, 11,000 jobs gone. Varney company about to begin. Having you shipy gifts couldnt be easier. Well, having a ton of locations doesnt hurt. And a santa to boot [ chuckles ] right, baby. Oh, sir. That is a customer. Oh. Sorry about that. [ me announcer ] break from e holiday stress fedex office. Well begin with sad news. Dame elizabeth mother of News Corporation chairman and chief executive Rupert Murdoch died at age 103. News Point Company fox. Now sad news. And hes raised tax rates and he was elected based on his tax the rich policy. He says that america is poised to take off and if it doesnt, its the republicans fault. Listen. You have the u. S. Chamber of commerce hardly an arm of my administration or the democratic party. I think, said the other day, we cant be going through another debt crisis, a debt ceiling crisis like we did in 2011. That has to be dealt with. So, i think businesses are going to be ready to hire. Were seeing pretty strong Consumer Confidence despite weaknesses in europe and even in asia. I think america is poised to take off. Stuart well, the republicans are set to respond today when Speaker Boehner goes in front of the cameras. Will he show signs of retreat or any sign of compromise . Remember, the president wants higher tax rates. Will john boehner try to move the line that the president has drawn . We will have it for you live here on Varney Company starting around ten oclock eastern. Then we have darden restaurants, the parent of olive garden, red lobster. It says its businesses could be hurt by bad publicity. Darden said it might cut hours for some workers in order to avoid having to provide Health Insurance for them under obamacare. And a rift in the liberal media because of that. It might be a stretch in my opinion and maybe a stretch people saying theyll stop going to restaurants because of it. And a debate on that. Darden, obamacare later in the hour. And breaking news from citigroup, too, its cutting 11,000 jobs, it calls it part of its repositioning. It says it will save a billion dollars a year and the stock is going to be up at the opening bell. Hope for the best, but plan for the worst. Thats what companies are doing. More than 200 of them are getting ready for the expected dividend tax like next year by paying dividends now. Well talk about it, call it the tax dodge. Talk about it after the opening bell next. [ male announcer ] this is steve. He loves risk. But whether hes climbing everest, scuba diving the Great Barrier reef with sharks, or jumping into the marke he goes with people he trusts, which is why he trades with a company that doesnt nickel and dime him with hidden fees. So he can worry about other things, like what the market is doing and being ready, no matter what happens, which isnt rocket science. Its just common sense, from td ameritrade. [ engine revs ] [ male announcer ] the mercedesbenz winter event is back, with the perfect vehicle thats just right for you, no matter which list youre on. [ santa ] ho, ho, ho [ male announcer ] lease a 2013 c250 for 349 a month at your local mercedesbenz dealer. At your local music is a universal langue. But when i was in an accident. I was worried the Health Care System spoke a language all i own with unitedhealthcare, i got help that fit my life. Information on my phone. Connection to doctors who get where im from. D tools to estimate what my care may cost. So i never missed a beat. Were more than 78,000 people looking out for more than 70 million ericans. Thats health in numbebers. Unitedhealthcare. All right. Weve got the adp report on private sector employment. Only 118,000 jobs created in november. Thats in the the private sector, okay . However, clearly that was affected by the big storm, sa y sandy. Should have been much higher and will have been much higher when the full effects are wiped away. No impact on the stock market that i could see. The dow industrials are going to probably open right around that 1 13,12950. The opening trend is down, but not much in the opening seconds. Now down 2 points. Not much movement. However, ive got to tell you about facebook, following very, very closely. Facebook is going to join the nasdaq 100 index. It will join one week from today. Nicole, youre on the floor, normally that pushes the stock price way up and yes, its up today. Yes, im going to say that well take it with a grain of salt no. A couple of things to note. Going into the nasdaq 100, going into facebook and infosys leaving the nasdaq and going to n ych nyse. And they listed at the exchange, one of the perks, too, its nonfinancial firms and a big one, facebook is 30 billion. Another thing to note here, its usually the s p 500, stuart, that will really give shares a boost because the traders really mimic the s p 500. But google didnt get in until at least two years of trading. Well see on facebook. Stuart if i run a fund that mimics the nasdaq 100 ive got to buy facebook because its part of the nasdaq 100 ive got to buy it and mutual fund people will have to do that. But still a jump. 38, 40 cents, thats it . But a recent run recently anyway. Its up 50 since early november. Youre right. When you mimic the fund. More people are going to buy the s p 500. When they get there and then well talk. 50 for a company like facebook. And the dow stills are up 16 early going. The stock price of netflix, made a deal with disney, exclusive rights to run its movies. First, the analysts say the deal is maybe too expensive. 300 Million Dollars a year and thats big bucks there, the stock is down a little and by the way, doesnt start until 2016. Remember, please, netflix stock up 25 this year, and look how netflix has done just the past couple of days and its a nice spike as of yesterday afternoon when the news was announced, okay. I want to show you the share price of best buy as well. This morning, it announced, it, too, is moving up the dividend by three days and paying it on new years eve. And the point is theyre paying it this calendar year. And the stock is up just a little bit, and im surprised at that. I thought it would be up more than a. By the way, there are now 200 major corporations that have had an early dividend payout. And a possible tax increase next year, may be coming, of course, 200 plus companies have already paid or are going to pay the dividend this year. So, lets bring in doug schoen, still a democrat. Former advisor to president clinton and i see this as a tax revolt and i see this as hipocracy. This is rich ceos, rich Board Members saying, we dont want to pay the tax the rich tax next year, were going to pay it to ourselves this year, doug, hipocracy. I see it as by businessmen basing an unpalatable and untenable fiscal condition in washington where both parties, particularly the democrats are failing to come up with reasonable tax reform. Stuart but youve got a smile on your base because now im right. Jim singel, founder of costco pays himself 7 a share and borrows the money to do it hes a huge obama supporter. Well, now thats a different kettle of fish, stuart. Borrowing money that they dont have in their kitty to pay a dividend to reduce tax, thats tax manipulation. Stuart which a tax which he favors and went to the Democratic Convention and argued for. I cant efend him, his company or his actions, but i can tell you, stuart, this is a reason why our political system is letting down ordinary people because it does allow the wealthy empowered take advantage of a system because the elites are not solving our problems. Stuart well, the elite never solve our problems, you know that. Sometimes they do. No, no, no, what youre saying its a back door argument for tax the rich. Its actually a back door argument for reducing taxes, limiting deductions and having a rational tax reform policy in the context of entitlement reform. That was romneys plan. Lower tax rates, cut some deductions and what are you doing. Bowles simpson, a democrat. He did the deal with the Newt Gingrich and bill clinton. You c. Stuart stop smiling. Every democrat sitting right there has said the same thing. Remember bill clinton. He raised tax rates and it sent off a boom. You dont agree with that . I do agree with it, but he also reformed welfare. He was also willing to rein in modestly entitlements and do things on a comprehensive basis, it worked and paid huge dividends. Stuart ive got 30 seconds. Yes. Stuart are we going to get a fiscal cliff avoid dan deal . We may get some form of a deal. We are not going to get a real deal. I think the economy is going to be hurt and i think both sides, especially the president deserve blame. Stuart who will get the blame . The republicans clearly are going to get the blame and hurting themselves. Stuart but we may go into a much Slower Economy and hurts the president. Bad news for the president and even worse news for the the American People. Stuart i agree with that. All right, doug, not bad the at all. Still a democrat. Stuart is that a tag line to every interview . It may well be. Doug, thanks very much indeed. The so the president has made it very, very clear, drawn a line, no fiscal cliff deal without higher tax rates for the highest earningers, tax rates have got to go up. Question, what will Speaker Boehner have to say about that . His reaction will be new at ten this morning. Mark stein is going to be here as well and hell join us to explore that and more. We have an oil and mining deal to tell, but. Freeport mcmoran and copper and gold will have exploration and two separate deals for 9 billion in cash and stock. Im not quite sure what all of that means. Just tell me the stock price, nicole. It means big moves for these two stocks here. Freeport mcmoran is now down over 15 , but when you look at plains exploration and production, a big mover to the upside and thats up 23. Stuart im trying to get this. Freeport mcmoran, theyre the ones that are doing the buying and plains exploration are the people who are being bought. So the people who are being bought go up because theyre paying a high price and the people who are paying the money out are going down. Have i got that roughly right . Thats right. And thats why you see mcmoran exploration as well and im trying to work this out and complicate itself. All i want to see if the stock price moves. Its a big one. By the way, the dow industrials just hit 13,000, a gain of 50 points as we speak. 13,002. To be precise. And coming up this wednesday morning, bob costas admits he made a mistake addressing gun control during half time show of the sunday night football game. He says he should have done it when he had more time to flesh out his point of view. Well, well be discussing that one. President obama says a deal will not happen without higher tax rates on the rich. Kirsten powers, who i think has shifted to the right just a little recently, Kirsten Powers will be with us and defend the president s position. The city of huron, south dakota wants to ban eating while driving. All rise, the judge will have something to say about that. What can you legislate. What can you regulate in terms of behavior when youre driving. No eating . We want to hear from you email us at varney foxbusiness. Com. And seven early movies. Tibco so and pandora, bad news, down it goes. Citi cutting 11,000 jobs and going to save a billion bucks a year. Up a buck 30 on that one. Seismic equipment supplier named mitchum, posted whats described as a surprise loss. Down 17 . And a defense contractor, posted higher profits. Better than expected. Maker of tommy bahama and Lilly Pulitzer brands. And disappointing, down you go, 12 down there and then facebook, joining nasdaq 100 one week from today. Its down 13, but its at 27 now. Work hard, all your life and build up an estate and leave it to your kids, and like to. The government takes, and attorneys say what to do to avoid it. First, Christmas Music from mark stein, i dont know why my picture is up there. Thats mark stein and hes singing, not me. Male announcer ] at scottrade, you wont just find us online youll also find us in person, with dedicated support teams at over 500 brancs nationwide. So when you call or visit, you can ask for a name you know. Because personal service startwith a real person. [ rodger ] at scottrade, seven dollar trades are just the start. Our support teams are nearby, ready to help. Its no wonder so many investors are saying. [ all ] im with scottrade. Detroit, were told, is on the verge of bankruptcy, but one member of the city council thinks the president should step in and lend a hand, otherwise known as a bailout. Yeah, lets call it what it is, a bailout, a call for a bailout from the obama team. City Council Member joan watson said yesterday, we voted for you and now give us a quid pro quo, why not . Roll the tape. And our team in an overwhelmingly supported the reelection of this president and ought to be quid pro quo and ought to exercise leadership on that. Stuart we voted for you, now, pay up. Nearly 75 of wayne county voters went for obama in november. Obvious question, will california, illinois, who voted big time for the president , will they join the bailout line next . Dont know, good question. Check the big board, were up 50 points. The dow industrials standing there at 13,000. Check the price of oil, we are down a fraction today. 88 a barrel. Now, attention all estate planners, your clients think the death tax going to be particularly vicious starting january the 1st. I want to know what are people doing now to keep their money in the family . Joining the company is Estate Planning attorney, did i get that right, the estate family attorney. Yes. Stuart youre an estate family attorney. We put something on the screen there, 55 . Yes. Stuart we think thats going to be the top tax on estates next year, we dont know that. We dont know anything about whats actually going to happen. Stuart do you know the thresh is it 3 million, 1 million . What is it. If no one does anything, the cliff so to speak, a Million Dollars is the threshold of exclusion and the exclusion from a 55 tax rate. Stuart hold on a second. If we go over the cliff. If you have an estate valued at more than a Million Dollars and you pass away, everything over a million is taxed at 55 . Thats correct. 55 . Thats correct. Stuart if ive got an estate of 2 Million Dollars and i pass away, my estate is taxed 550,000 comes out of it . Thats why its a cliff. Due and payable right now. Splats on the ground at that rate. Stuart what are you doing to plan for this . Nobody believes thats going to last more than a minute. If it was, the devastation would be across the board and quite frankly, it would hurt the middle people the worst. You know, it gets back to the whole question of, theres a huge difference between a millionaire and a billionaire. A person who has an estate of 2 Million Dollars is totally vulnerable to whats going on in congress right now. But theyre not watching the news, not paying that much attention because they dont feel the impacts. You know, the theory what are you telling your clients. They come to you, ive got 10 Million Dollars, help me out. It depends who they are and their family circumstances, including their age, their spouses age, their childrens anal. Their childrens life circumstance because remember, youre talking about tax planning is right now tax guessing. Stuart yeah, i know. And you cant be uessing are you telling them watch out, watch out because its possible that anything over a million will youll lose 55 of it . Are you telling them that. I tell them my personal opinion its not going to happen. My personal opinion its not going to be a million 55. Thats my personal opinion. Okay. I think that people who jump the gun. Whats your opinion. Whats it going to be . Whats it going to be . My sense was, the last time we had this discussion for the 2010 law, remember. Stuart i remember. I said 3. 5, that made sense from economists, made sense from the irs doing analysis on tax returns. Thats what made sense. He they came out with 5 million so i was wrong and it was an an illogical numbers and there could be illogical numbers applied again. Is it true you cannot put off forever the estate tax . You can delay it. Taxes are deferral. You quick the can down the road and you hope you have a better tax situation or you have spent your money, for instance. People who are 40 cant do the same planning as people who are 70. Stuart hold on a second, i pass away and i pass away lets say 10 million to my children. And i do it, and ive been planning for it. And theres know tax when i pass away. The whole 10 million goes to the kids, but eventually, they have to pay taxes. Thats right. This is when do they pay tax on it . When . They will pay tax on things when he they sell them. When they die, when they try to move things around and to me, its basically a card game that youre playing out for a long period. Which is why practitioners who are planning are kind of guessing that. Im going to give you a commercial, if i come to you, you can make sure that i, if ive got 10 million will pass the entire 10 million onto the kids. You can do that for me. I cant do that. What i can do is help you navigate between the decisions are that tax driven and i dont want the navigation. You need that these are longterm decisions for your family. Now what makes a difference between family decisions one effects the people you love. I want to pass along my estate intact to my heirs. And you cant help me . I could help you, but with some parameters of not knowing what im actually flipublishingr you. Janet, it was a pleasure. Thank y. And time for the gold report, please. Lets do it. And your price of gold this morning is 1,698 precisely just under 1700 and the

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