Transcripts For FBC Varney Company 20140304 : vimarsana.com

FBC Varney Company March 4, 2014

The local there appears to be no imminent threat of a shooting war in ukraine. That is why the market is going straight up. Look at that. All in green. Now take a look at the s p 500. That is record territory. The new intraday high was 1869. Now we have hit 1874 the i say this market just wants to go up. The lack of a shooting war in ukraine is a good excuse. The industrial names are leading this. The risk on trade is coming back. Stuart it is not our beloved Technology Stocks . Technology stocks . Sandra has been in big momentum player but it is not the leader in this rally today, but i know i will tee up charles when i say this, the fed has not gone out of our business yet so how do you know if this rally can sustain itself . Charles i dont care. You talked people out of this we know what the fed is doing. Janet yellen tells us they tapered twice, they announced on december 17th, we are up here is the bottom line. You hit the nail on the head with industrials, we are rebuilding america, we hired 48,000 construction workers still we dont have enough construction workers. When pending home sales came out we didnt have enough inventory, but the great news, yesterday overshadowed a stronger than expected manufacturing number, in command spending. Stuart two types of trading going on. The bigtime traders who trade by computer and they look what the fed is saying, every minutiae of the fed that is a whole group of traders. The others are people who look at individual stocks and by the companies they like. Charles we should call those investors. Stuart to the g wishes story of the day. There are reports that facebook is in talks to buy tyson aerospace, the makers of solar power drone that can fly for five years without needing to land. Facebook wants to use these to cover parts of the world that dont have Internet Access starting with africa. Amazing what you can do with a company like amazon, massive cash flow and all kinds of things you are interested in. Nice to be talking about the drone story and Companies Making investments and not the drone delivering pizza or beer to your doorstep. We are talking about a global picture, practical use and also by the way, speaking to charless rally nice to see these companies putting this cash they have been sitting on to work. That is a very bullish sign. Stuart facebook reminds me of amazon, lots of money, lots of areas to get into. Drones, facebook, remember when we had j. C. Penney on deathwatch back in september . Standard and poors raised its output, it believes the companys performance has begun to stabilize. Charles payne is and was a believer, you stuck by opec. 8 47 you are still in and, not selling, you are not going to tell you not taking profits, not tell you are going to stay. Look at another of his picks. The scratch proof glass for smart phones, Goldman Sachs says to buy it, they will be watching charles because he likes it too. Charles 100 after we had it. Stuart you are pretty gold. I want to relate to you a loser, radio shack. Remember this ad from the super bowl making fun of radio shacks outdated image. Lets look at that image, radio shack is closing 1100 Stores Across the country. Nicole petallides, that holiday sales to blame. What do you think . Should we put this thing on deathwatch . Sandra radio shack changed their business model. Yesterday you went in fur all kinds of gadgets and remote controlled toys and then they tried to reinvent themselves as some sort of mobile telecom score. I went in to buy a game consoles and nobody could help me because they were trying to sell a phone to somebody. Meantime the stock has tanked, it is down 15 today because they had a total Fourth Quarter and this, having to close stores, a 1100 stores, that is 20 of their stores. We will see what the outlook is that it is a tough day for their shareholders to watch it fall again. Stuart market doesnt think you adjust cutting costs. They are thinking about survival. Thanks very much. The dow industrials now up 200 points. Why is that . Developments in ukraine. Vladimir putin pulling some troops back to their bases in crimea. That may remove temporarily the threats of a shooting war in ukraine. Here is what president obama had to say before Vladimir Putin made that move. The strong condemnation it has received around the world indicates the degree to which russia is on the wrong side of history. Stuart president obama wants to impose economic sanctions that Vladimir Putin says would be mutually hurtful. Stuart joining the republican congressman adam you support the president s sanctions plan. Why would that be . A couple things. Hopefully things are settling down in the ukraine but this is a long game, long hall strategy. To the extent we could impose energy sanctions on russia, understandable and effect because they rely so much but i would go one more step and say by 2020 we are expected to be the worlds leading producer of energy and theres talk about exporting natural gas, we need to make it clear we need to start planning for the long game and we will have natural gas with allies that reliance on russian gas to be accountable. Stuart it is all about energy, isnt it . A lot of europe is supplied with natural gas, a lot of that comes through ukraine and from russia. Therefore, there is a limit to a and forbid its natural gas to get into europe. The europeans will never look at that. Stuart we have to take into account the effect this will have on their economy, doing things that will affect their allies may not be beneficial but if the president came out today, he wont but if he came out today and said we are an Energy Powerhouse we are committing that in ten years we have great contract with our allies that would scare the russians. Vladimir putin does things with long hall and he knows is only play in building up the soviet union is through energy. Stuart he said get out and fractal the cows come home across the United States of america, build that pipeline, drill on federal land, get the energy that is ours. I agree with you, congressman, that could have a material impact. You will say forcefully and say it right now. Thanks for being with us to a day, we appreciate it. Busy day. Secretary of state john kerry heads to the capital of ukraine, kiev. Listen to what he said last year about the gop concerns about russia. He has blurted out a preposterous notion that russia is our number one political geopolitical foe. Sarah palin said she could see russia from alaska. Mitt romney talks like he only sees russia by watching rocky 4. Stuart that was that the democrat convention. They laughed when now secretary of state said that. We are joined by colonel bill cowan. Great to have you with us. This statement that putin has ordered Russian Troops who are in crimea back to barracks. It seems the stock market is hanging its hat on that. The withdrawal of troops may lessen the danger of a shooting war. Teammate be withdrawing some troops. He wont withdraw all of them but the good news is he appears to achieve the strategic victory, major strategic victory with no shots being fired so Vladimir Putin comes out winner on this and he will withdraw some troops if he feels it necessary, feels no threat but the ukrainian military, he is still a winner no matter what he does. Stuart what should president obama do now . You are a military guy. I am not suggesting the president ial order an Aircraft Carrier to the black sea but what you think about using strong hard force, our power . What should the president do . We have no options for hard power. Our military is tired, beat up, the equipment is beat up but we have a Strong Military force and i dont see anything wrong with putting a naval presence in the black sea just to remind everybody in the region that the u. S. Is still a military power. We might consider giving some assistance to the ukrainian military, the ukrainians work with us innings in afghanistan. A lot of combat experience, race relationships with ukrainian military, lets go public and say we will provide them material and training and put u. S. Troops inside ukraine to train with them. Lets establish the fact the we do have a military and although we dont want to do it and dont intend to use it we have it and we can use it if we have to because no question about it Vladimir Putin is not going to stop with crimea or a little bit of eastern ukraine. You wants a lot more and whatever time it takes to achieve it which includes other places like belarus and lithuania. Stuart i you ok with being provocative like that . Put an American Naval presence in the black sea, and get some military advice or weaponry to the ukrainians that would be a serious escalation from our side. You are ok with that . It depends on how we do and what we do with them but military provocation has been set forward by Vladimir Putin. We dont want to engage them militarily so we could clean them out quickly. We at least need to say we are here, still somebody to be reckoned with. If circumstances take us there. So i do think of modest naval presence and some support to the military on the ground would be helpful. Stuart the president our troops who remain in afghanistan are supplied in part from Central Asian republics, not sure which one. They have a lot of material and transportation and supplies from there. Very easy for Vladimir Putin to break that connection. Absolutely would. My son is serving in afghanistan on his fifth tour. A lot of things russia can do to tweak as a little bit. I dont think Vladimir Putin is afraid to do anything and i think the terror about where will the u. S. Stands in the globe is where china liens on this incident in crimea. Of china sides with russia that tells us how the rest of the world views us. If they side with us we have some backing by somebody that matters. Stuart wait until china takes a look at that vast, empty, resources rich area known as siberia. Colonel bill cowan. Great pleasure to have you with us. Wonderful to be with you. Stuart we have a rally, 190 points from a Dow Jones Industrial average and seat emanual, brother of rahm emanuel has a message for you. Prepared to kiss your Insurance Company good bye. More on this next. Stuart secretary of state john kerry is about to speak. He is in kiev, the capital of ukraine, about to speak. We will bring you what he has to say when he says it. I have the Dow Jones Industrial average up 205 points. That is a rally and a half. I wonder if john kerry will say anything that moved the market up or down. Obviously that is why we are watching. It is a crucial moment in the ukraine crisis and it will be added to by john kerry moments from now. Where is the price of gold . It is down 13 this morning. We follow tesla very closely. Yesterday one of our market watchers on this program said now is the time to shore tesla, bet that the thing is going to go go down for a couple weeks. Stock is up today after jpmorgan raised its target price to 1. 64. Raised its target price to 1. 64. Is now 2. 55. What am i missing . Charles wall street analysts, it is almost a joke. Stuart wait a minute. Does he mean to as low will come all the way from 2. 65 to 1. 64 . Charles it was a 65 target still, i think. Stuart maybe i missed worded. He did not raise his price. Charles the target might have been lower. The target was lower than that. Stuart the inference from the analyst was this is going down. This stock is expensive right now. Stuart i will give him that. Before john kerry speaks, i want to move on to obamacare. Zeke emanual is securing the end of Health Insurance as we know it thanks to obamacare. This is the quote from an odd that in the new republic and i am quoting directly, Insurance Companies as they are now will be going away. Indeed they are already evolving. Insurance companies will continue to provide services to employers can compete against each other all right. Here is the story. Right now you have got patients that you and i in the middle is the Insurance Company and you have doctors and hospitals, the Insurance Companies are the middle guys. Bets in lookalike is with us, authority on obamacare and i need you to explain this. Hold on, i have got to repeat this. You have patients, you and i, in the middle, Insurance Companies and here you have doctors. Ziti manual says this middle bunch are going away. Is the right . There is at trend in that direction even without obamacare. Accountable care organizations, hospitals and doctors who band together and make a business and accept a flat rate to take care of each patient. Even go to big business and say we will host cell health care to everybody. Stuart we got to hold the viewers interest. Can have them go off because they dont understand. The Insurance Company gradually goes away and i the patient will be dealing with doctors and hospitals as a group and they are charging me a flat fee to cover them for year after year . This is why theres a lot of push back from doctors and patients. These Accountable Care organizations have a conflict of interest with the patient like the Insurance Company does. Every time the doctor prescribe something for a patient that comes out of the doctors dont pocket at the end of the year. Like the hmos of the 1990s the American Public rejected. Stuart would you get the cost down . They do skimp on care. That is how they make money but they also promise better quality and studies dont show that. The second problem is standardization. That is the word you see in zekes article, they will standardize the practice of medicine. Science is moving in the opposite direction and it would deny patients the benefit of that. Line of three women with breast cancer, each with a different genetic mutation. You standardize their kerri is a death sentence for one of them. Stuart if you get these Accountable Care organizations the price, the patient, the consumer will probably go down. He admits in the article of you want to Second Opinion dont expect it of an a c 0. I cut this out because i couldnt believe it. They will be restricted to the physicians in the system. We should know many people pick kaiser or group health and get all of their care from the integrated systems and they dont seem to worry they dont get highest quality care. Maybe they dont worry but most patients would wary especially if they have cancer. Stuart another one. Report about another delay coming su in time for the midterm elections. Healthinsurance, allow you to keep your plan even if it doesnt comply with obamacare. This health law is great. They have to keep delaying it. Stuart it is not for sure. We heard about it last night, havent seen it in blackandwhite. Healthcare is dictated by the president not by our elected representative torres in congress. People with preexisting conditions are very relieved, those are the people you see in the ads a guy wont be able to keep my doctor or my medication entities obamacare plans, they are relieved. And frankly it will be impossible for them to reinforce this mandate, this tax penalty of people who dont have insurance when they delay their definition of insurance. Obamacare looks like it is crumbling. Stuart got it. Betsy mccoy, thank you very much indeed. Two stories we are following. A great big stockmarket rally, really cool. We are up 212 as we speak. Theres less risk of a shooting war in ukraine. And john kerry has arrived in the ukraine capital of kiev is about to hold a news conferences, and answer some questions and i will bring that. Fox news radio is on the phone with us right now. Where are you . In the crimea . Yes. Stuart what we have over here as i am sure you are aware is a strong stock market rally primarily because we hear that Vladimir Putin has ordered russian soldiers in the crimea to get back into their barracks. You are there. What i use seeing . I am thinking president Vladimir Putin didnt order troops in crimea to their barracks, he ordered troops around the Ukrainian Border that word doing naval exercises and military exercises, 150,000 of them back to their barracks. The barracks are not that far from the Ukrainian Border. Also Russian Troops that have been in the past five or six days are not going anywhere. They have encircled several military installments including a barracks down the street, the head of the ukraine navy has surrendered. You will be tried for treason. Stuart i want to add something. Would it be true to say if you remove Russian Troops from the actual border, if you remove the troops from the border you do in fact lesson the risk that someone will fire a shot in either direction and there will be a shooting war between ukrainian guys and russian guys. That is a pullback in the risk factor . Absolutely. The problem is when you have hundreds if not thousands of russianspeaking troops in crimea that have taken over military installations, that is something to take note of as well but there is a pullback from the Ukrainian Border. I have heard explosions off and on that no one can seem to figure out where they are coming from so that is Something Else to consider. Stuart is there food available in the stores . Are there people on the street . What is going on . Absolutely. People have resigned themselves that Russian Troops are here. They are not going anywhere at least according to Vladimir Putin because he says they are here to pr

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